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Offer Incentives To Boost Oil, Gas Production, Academy Tells FG

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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.

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Oil & Energy

FG, MEMAN Chart Ways To Safe Petroleum Products Delivery

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The Federal Government and key Petroleum Products marketers have proposed new measures to help curb rising cases of road accidents involving petrol tankers.
This followed recent incidents of road accidents resulting in cremation of hundreds of lives and causing extensive damage to properties.
Speaking at the Discourse organised by Mejor Energy Marketers Association of Nigeria (MEMAN) in Lagos, Thursday, with the theme “Improving Safe Transportation of Petroleum Products”, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, noted with dismay the number of casualties the country recorded recently due to tanker accidents.
Lokpobiri stressed the need for an  enhanced training for tanker drivers, installation of detection leak devices  as well as other safety systems that can assist drivers.
He called on Marketers and Federal Road Safety Commission (FRSC) to strengthen collaboration with stakeholders, especially in the training of tanker drivers.
On his part, the Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo, reaffirmed government’s commitment to providing enabling environment to ensure safety of petroleum products transportation.
Ekpo, who was represented by Engr. Abel, said consideration should be given to more safety means of transporting products like the pipelines and railway line.
He stressed the need for better training for drivers and implementation of safety regulations within the industry.
Earlier, Chairman, MEMAN, Huub Stokman, said the Association has elaborate training manual for members truck drivers.
Stokman insisted that more training programmes and consistent adherence to safety measures would help to curb road accidents involving tanker drivers.
Also speaking, the National President, Nigerian Association of Raod Transport Owners (NARTO), Yusuf Lawal Othman, called for support.

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Oil & Energy

Benue To Pioneer Gas Production From Coal – NGEP 

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The Chairman, National Gas Expansion Programme (NGEP), Prof. Mohammed Ibrahim, has said that the production of coal bed methane, an unconventional form of natural gas extracted from coal, is set to begin in Benue State.
Prof. Ibrahim staed this while addressing newsmen at the end of a joint meeting of the National and State gas expansion committees with Benue State Governor, Hyacinth Alia.
He said the Federal Government is committed to expanding gas availability in Nigeria for domestic use and mobility.
Ibrahim added that extracting gas from unconventional coal sources rather than traditional hydrocarbon reserves is a way to boost gas availability.
“Essentially there are four areas of implementation that the committee has identified. One is to pioneer the production of gas from what you call coal bed methane, which means that Benue is going to pioneer in the country the production of gas not from conventional hydrocarbon, but from non-conventional coal just so that the nation will have an alternative source to gas availability”, he said.
Also speaking, the Chairman, Benue State Gas Expansion Programme, Dr. Emmanuel Chenge, said the gas expansion initiative would contribute to the economic transformation of Benue State.
“The good news is that Benue is set to join the league of gas-producing states and if we are conversant with what being a member of the gas-producing state is, it shows that Benue State will start getting derivatives from that sector of the economy”, Dr Chenge stated.
The National Gas Expansion Programme (NGEP) was established to boost the exploration and utilisation of gas in Nigeria and make Nigeria a gas-based industrial nation by increasing the use of gas for transportation, cooking, and industrialization.

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Oil & Energy

NNPC Debunks Explosion Claim In Warri Refinery

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The Nigeria National Petroleum Company Limited (NNPCL) has said there was no explosion at the newly refurbished Warri Refining and Petrochemical Company (WRPC).
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, made this known in a statement issued on Friday night.
Soneye said reports claiming that there was an explosion at the Warri refinery were false and should be ignored and disregarded by the public.
According to him, the refinery was undergoing routine maintenance.
His statement read, “NNPC Ltd. wishes to clarify that there was no explosion at the Warri Refining and Petrochemical Company (WRPC). Any reports suggesting otherwise are completely false.
“On January 25, 2025, operations at WRPC Area 1 were intentionally curtailed to carry out necessary intervention works on select equipment, including field instruments that were impacting sustainable and steady operations.
“These intervention works are essential to ensure the production of on-specification finished and intermediate products, particularly Automotive Gas Oil (AGO) and Kerosene (Kero).
“The routine maintenance is progressing as planned, and Area 1 will be back in operation within the next few days.
“Despite ongoing interventions, over the past 11 days, AGO loading has been maintained at an average of eight trucks per day, with a sufficient supply available to sustain ongoing truck load-out operations”.
Soneye added that the NNPCL was committed to ensuring an uninterrupted supply of petroleum products from the refinery.
He said the company “appreciates the patience and cooperation of all stakeholders as it completes these essential maintenance activities”.

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