Oil & Energy
Offer Incentives To Boost Oil, Gas Production, Academy Tells FG
The Nigerian Academy of Engineering (NAEng) has urged the Federal Government to offer incentives to oil and gas producers to increase their production levels.
The measure, if pursued, would guarantee added production which can translate to more forex earnings with attendant positive impacts on the nation’s economy.
The NAEng President, Prof. Azikiwe Onwualu, made the call at a news conference, organised by the NAEng in Abuja, at the Weekend.
“In connection to offering the economic incentives to producers, NAEng also recommends that steps be taken to conclude the approval or otherwise of the acquisition of assets.
“These are assets of exiting International Oil Companies (IOCs) by indigenous entities who have negotiated with them.
“Further delay may discourage investment by the new owners and by others who may be interested in bringing in capital’’, he said.
Onwualu stated that with respect to downstream sector, the Academy recommended that government should consider divesting at least 51 per cent of its equity in the refineries, oil marketing and distribution facilities.
He said this would provide capital from private sector for the upgrade of the refineries and also introduce independent governance for efficient operation, adding that it would also lead to more sustainable high capacity utilisation of the refineries for the good of the nation.
The President said this would further result in foreign exchange savings as reliably operating refineries would provide products for local consumption and export.
“We commend the directives recently given by President Bola Tinubu on Oil and Gas companies tax incentives, exemption, remission order 2024, Reduction of petroleum sector contracting costs and timelines, 2024 and Local content compliance requirement.
“They are likely to attract interest from both foreign and local investors which will ultimately have a significant impact on the growth of the oil and gas industry and result in major foreign exchange earnings increase for Nigeria.
“When properly and fully implemented, these directives should have a positive impact in the short to medium time frame.
“They are also expected to restore the vibrancy in our oil and gas industry, leading to increased activity levels in the industry’’, he said.
Onwualu further urged the government to consider directives on rapid improvement of gas reserve base so that more of the often-quoted gas volumes would be certified and become bankable.
According to him, concerted efforts should also be directed at the exploration for more gas deposits and the appraisal of existing funds as gas rather than oil was the internationally preferred source of energy.
The President said increased activities in the natural gas sub-sector would undoubtedly fast track the growth of the midstream segment of the petroleum industry and result in high gas utilisation and commercialisation.
“The NAEng believes that the fastest way to achieve economic development of Nigeria is to consciously develop and apply engineering and technological innovations.
“This is towards providing sustainable solutions to problems in different sectors of the economy in a systematic and coordinated manner.
“The NAEng remains committed to assisting the Nigerian Government to achieve rapid national growth by tackling problems that are amenable to engineering solutions”, Onwualu said.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor