Oil & Energy

NNPC Eyes $60bn Investment To Boost Gas, Refining Capacity … Targets 500,000bpd By 2030

Published

4 months ago

August 1, 2025

The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced plans to attract a minimum of $60 billion in new investments to boost gas development and expand the nation’s refining capacity by an additional 500,000 barrels per day by the year 2030.

Group Chief Executive Officer, NNPCL, Bashir Bayo Ojulari, stated this while receiving the leadership of the Nigeria Extractive Industries Transparency Initiative (NEITI) on a courtesy visit, in Abuja.

Ojulari explained that the company was mandated to raise crude oil production to three million barrels per day by 2030, grow gas output to 20 billion cubic feet per day, and add 500,000 barrels per day of refining capacity.

According to him, the NNPC is central to the overall gas development for Nigeria, with the Ajaokuta-Kaduna-Kano (AKK) pipeline as the major game changer that will impact the economy significantly.

Ojulari explained that the NNPC gas and new business team is already engaging customers and off-takers to put in place the necessary structures that would drive growth beyond pipeline infrastructure.

According to him, the focus is not only on the Ajaokuta-Kaduna-Kano gas pipeline, but also on enabling businesses to thrive through power generation, industrial parks, and compressed natural gas (CNG) expansion projects that would spring up from the initiative.

He added that the company is also working on further expansion of the Escravos–Lagos Pipeline System (ELPS), which currently supplies the western corridor and supports industrialization around Lekki and other parts of the Southwest adding that plans are underway to extend the West African Gas Pipeline (WAGP) further north, stretching across Africa to Morocco.

Highlighting future opportunities, Ojulari said the company is pursuing strategic partnerships to accelerate growth in the sector.

“In terms of our own aspirations, you saw the mandate we got from the president around when we were appointed, around growing oil production to three million barrels per day by 2030, growing gas production to a minimum of 20 billion cubic feet per day by again, 2020.

“Our aspiration is to pitch that target on the gas. You’ve also noticed the refinery capacity where we are required to have additional refining capacity of 500,000 barrels per day by 2030. And to achieve that, we are required to bring in additional investment of minimum of $60 billion”, he explained.

According to him, NNPCL was also considering the expansion of the West African Gas Pipeline to Morocco, alongside new industrial parks, gas-to-power schemes and compressed natural gas projects to maximise value.

He explained that the company will continue with its reforms to ensure development in the energy sector despite resistance, stressing that transparency and accountability remain at the heart of its operations.

He said the company had already embarked on internal reforms to improve reporting standards and strengthen compliance mechanisms.

“You have my commitment to increase and deepen transparency and accountability. In terms of our full compliance with the NEITI principles and the EITI global standards, you have my full commitment. We will provide all the data required for the 2024 and 2025 audits in the most efficient manner.

“We are now restructuring and resourcing the compliance department to be able to do things more sustainably. I want to hold him personally accountable for compliance in this respect.

“We know that major transformations cannot be achieved without resistance. We are determined to pursue this transformation. There will be bumpy rides, but we are not deterred because this journey is about Nigeria”, he added.

In his remarks, the Executive Secretary of NEITI, Orji Ogbonnaya Orji, urged the leadership of NNPCL to restore and sustain critical disclosures that earned the company global recognition as a reform leader.

As Nigeria’s flagship national oil company, Orji said NNPC must stand as a model of transparency, accountability, efficiency, and civic engagement saying “individuals may come and go, but NNPC Limited must endure as a global energy giant”.

Orji noted that recent reforms and investments had increased indigenous ownership of Nigeria’s oil and gas sector, stressing that transparency was vital to sustain such gains.

Noting that NNPC had previously set the pace by publishing audited financial statements, monthly operations and production reports, annual statistical bulletins, and FAAC statements, Orji warned that some of these disclosures had become irregular, delayed, or discontinued, creating gaps in public data.

“We respectfully urge NNPC Limited to restore and sustain all discontinued disclosures on its platforms”, he said.

Oil & Energy

TotalEnergies, Conoil Sign Deal To Boost Oil Production

Published

2 weeks ago

November 24, 2025

The Tide

TotalEnergies has signed agreements with Conoil Producing Limited under which to acquire from Conoil a 50 per cent interest in Oil Processing Licence (OPL) 257, a deep-water offshore oil block in Nigeria.

The deal entails Conoil also acquiring a 40 per cent participating interest held by TotalEnergies in Oil Minining Lease (OML) 136, both located offshore Nigeria.

Upon completion of this transaction, TotalEnergies’ interest in OPL257 would be increased from 40 per cent to 90 per cent, while Conoil will retain a 10% interest in this block.

Covering an area of around 370 square kilometres, OPL 257 is located 150 kilometers offshore from the coast of Nigeria. “This block is adjacent to PPL 261, where TotalEnergies (24%) and its partners discovered in 2005 the Egina South field, which extends into OPL257.

Senior Vice-President Africa, Exploration & Production at TotalEnergies, Mike Sangster, said “An appraisal well of Egina South is planned to be drilled in 2026 on OPL257 side, and the field is expected to be developed as a tie-back to the Egina FPSO, located approximately 30 km away.

“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO.

“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria”.

Oil & Energy

“COP30: FG, Brazil Partner On Carbon Emissions Reduction

Published

2 weeks ago

November 24, 2025

The Tide

The Federal Government and Brazil have deepened collaboration on climate action, focusing on sustainable agriculture, renewable energy, and the reduction of black carbon emissions.

The partnership is anchored in South-South cooperation through the Brazil-Nigeria Strategic Dialogue Mechanism, which facilitates the exchange of ideas, technology, and policy alignment within the global climate framework, particularly the Paris Agreement.

The Executive Secretary, Amazon Interstates Consortium, Marcello Brito, made the disclosure during an interview with newsmen, in Abuja, on the sidelines of the 2025 COP30 United Nations Climate Change Conference, held in Belem, Brazil.

Brito emphasized that both nations are committed to global efforts aimed at curbing black carbon emissions, a critical component of climate mitigation strategies.

“Nigeria and Brazil are collaborating on climate change remedies primarily through the Green Imperative Project (GIP) for sustainable agriculture, and by working together on renewable energy transition and climate finance mobilisation,” Brito said.

“These efforts are part of a broader strategic partnership aimed at fostering sustainable development and inclusive growth between the two Global South nations,” Brito added.

TheTide gathered that President Bola Ahmed Tinubu announced an ambitious plan to mobilize up to $3 billion annually in climate finance, through its National Carbon Market Framework and Climate Change Fund, positioning itself as a leader in nature-positive investment across the Global South.

Represented by the Vice President, Senator Kashim Shettima, Tinubu made the announcement during a high-level thematic session of the conference titled ‘Climate and Nature: Forests and Oceans’

Tinubu stressed that Nigeria’s climate strategy is rooted in restoring balance between nature, development, and economic resilience.

Hosted in the heart of the Amazon, on November 10—21, the 30th COP30 conference brought together the international community to discuss key climate issues, focusing on implementing the Paris Agreement, reviewing nationally determined contributions (NDCs), and advancing goals for energy transition, climate finance, forest conservation, and adaptation.

Oil & Energy

DisCo Debts, Major Barrier To New Grid Projects In Nigeria ……. Stakeholders

Published

2 weeks ago

November 24, 2025

The Tide

Energy industry leaders and lenders have raised concerns that the high-risk legacy debts of Distribution Companies (DisCos) and unclear regulatory frameworks are significant barriers to the financing and development of new grid-connected power projects in Nigeria.

The consensus among financiers and power sector executives is that addressing legacy DisCo debt, improving contractual transparency, and streamlining regulatory frameworks are critical to unlocking private investment in Nigeria’s power infrastructure.

Speaking in the context of new grid-connected power plants, during panel sessions at the just concluded Lagos Chamber of Commerce and Industry (LCCI) Power Conference, Senior Vice President at Stanbic IBTC Infrastructure Fund, Jumoke Ayo-Famisa, explained the cautious approach lenders take when evaluating embedded or grid-scale power projects.

Ayo-Famisa who emphasized the critical importance of clarity around off-takers and contract structures said “If someone approaches us today with an embedded power project, the first question is always: Who is the off-taker? Who are you signing the contract with?” . “In Lagos State, for example, there is Eko Electricity and Excel Distribution Company Limited. Knowing this is important,” she said.

She highlighted the nuances in contract types, whether the developer is responsible just for generation or for the full chain, including distribution and collection.

“Collection is very important because you would be wondering, ‘is the cash going to be commingled with whatever is happening at the major DISCO level, is it ring-fenced, what is the cash flow waterfall,” she stated.

Ayo-Famisa pointed out that the major stumbling block remains the “high leverage in the books of the legacy DisCos.” Incoming project financiers want to be confident that their cash flows won’t be exposed to the financial risks of these indebted entities. This makes clarity on contractual relationships and cash flow mechanisms a top priority.

Noting that tariff clarity also remains a challenge, Ayo-Famisa said “Some states have come out to clearly say that there is no subsidy; some are saying they are exploring solutions for the lower income segments. So, the clarity would be on who is responsible for the tariff, is this sponsored?, Can they change tariffs?, In terms of if their cost rises, they can pass it on, or they have to wait for the regulator.

“Unlike, what you find in the willing seller-willing buyer, where they negotiate and agree on their prices. Now they are going into grid, there is Band A, Band B, if my power goes into, say, Ikeja Electric, or I have a contract with them, “am I commingled with whatever is happening across their multiple bands?”

Also speaking, Group Managing Director and CEO of West Power & Gas Limited, Wola Joseph Condotti, stressed the dual-edged nature of decentralization in the power sector.

“Of course, decentralization brings us closer to the people as the jurisdiction is now clear. You also know that your tariff would be reflective of the type of people living in that environment. You cannot take the Lagos tariff to Zamfara, and this is what has been happening before now in the power sector. So, decentralization brings about a more customized solution to issues you find on the ground.

“Some of the issues I see are those that bother on capacity. It was a centrally run system that had 11 DISCOs. Of the 11 DISCOs, I think there are 3 or 4 of us today that are surviving or alive, if I may put it that way. If you go to electricity generation companies, they are doing much better,” she said.

Condotti highlighted regulatory overlaps as another complication, especially when power generation or distribution crosses state lines.

She said, “Investors would definitely have a problem. Say if you have a plant in Ogun State supplying power to another state, say Lagos State; you are automatically regulated by NERC. But the truth is that the state regulator of Ogun State and Lagos State wants you to comply with certain regulatory standards.”

With the growing demand for reliable electricity and an urgent need for infrastructure expansion, the ability to navigate these complex financial and regulatory landscapes would determine the pace at which new grid-connected power projects can be developed.