Oil & Energy

Indigenous Operators Produce 30% Of National Crude Output ……. NUPRC ….As Commissioned Otakikpo Export Terminal Boasts 750,000 Barrels Storage Capacity

Published

2 months ago

October 13, 2025

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commended the efforts and activities of indigenous operators saying they now produce more than 30 per cent of Nigeria’s national crude output.

The commendation followed the commissioning of the Otakikpo Crude Oil Export Terminal, an indigenous brainchild capable of boosting the nation’s production by over 200,000 barrels per day, and further enhancing the country’s position in global oil markets.

Chief Executive Officer, NUPRC, Gbenga Komolafe, asserted that terminals like Otakikpo exemplify Nigerian companies’ capability to build and operate sophisticated, world-class oil infrastructure.

Komolafe who reflected on how previous major terminals, constructed from the 1960s through 1970s, were developed by multinational oil firms such as Shell, Chevron, BP, and Agip, said the Otakikpo terminal marks the origin of milestone in the history of Nigeria’s petroleum industry.

Highlighting the terminal’s strategic importance, Komolafe noted its alignment with Nigeria’s near-term crude oil production target of 1.8 million barrels per day, ensuring efficient evacuation capacity to support national output growth.

The new export hub, he said, lessens the risk of security issues and pipeline disruptions by diversifying export points beyond the traditional terminals in Rivers State with it’s impact extending beyond export volumes and unlocking over 40 stranded oil fields in the region, with estimated reserves exceeding three billion barrels.

Moreso is that the indigenous terminal boasts a storage capacity of 750,000 barrels—expandable to three million barrels—and a pumping capacity of up to 360,000 barrels per day.

Komolafe described the terminal as “historic on two levels,” emphasising its critical role in expanding Nigeria’s export infrastructure at a time when existing facilities such as the Bonny and Forcados terminals are congested and operating close to capacity.

He explained that Otakikpo significantly reduces dependence on these overburdened terminals, cutting costs and eliminating delays, which enhances the efficiency and security of Nigeria’s crude exports.

Also speaking, the Chairman and Chief Executive Officer (CEO), Green Energy International Limited (GEIL), the indigenous company behind Otakikpo, Prof. Anthony Adegbulugbe, described the project as a symbol of Nigerian ingenuity and technical expertise.

Adegbulugbe said the terminal, completed ahead of schedule in less than two years and entirely by Nigerian talent, is a testament to the country’s growing capabilities in upstream oil and gas development.

He credited the project’s success to progressive policies under the Renewed Hope Agenda of President Bola Ahmed Tinubu, and reforms instituted by the Petroleum Industry Act (PIA).

The GEIL boss also lauded support from the Ministry of State for Petroleum, led by Dr. Heineken Lokpobiri, and regulatory bodies, including NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), whose transparency and clarity helped drove the timely completion of the facility.

Expressing gratitude to the financial community and fellow Exploration and Production (E&P) operators, Adegbulugbe emphasised that the commissioning of Otakikpo is just the beginning of a broader transformation of the energy sector.

He urged industry stakeholders, government, and investors to capitalise on this momentum and fully realise Nigeria’s vast energy potential for national development.

Adegbulugbe further dedicated the terminal’s success to the engineers, workers, visionaries, and the Nigerian people whose collective efforts have inaugurated a new era of indigenous excellence in the country’s upstream oil and gas industry, affirming Nigeria’s readiness to lead and deliver globally competitive energy projects, defining its energy future with local capacity and innovation.

The Otakikpo Terminal, commissioned in Rivers State by President Bola Ahmed Tinubu on Wednesday, October 8, 2025, is not only a landmark achievement that would transform the country’s upstream oil and gas sector but a game-changer for crude export capacity and a bold demonstration of Nigeria’s evolving energy landscape, where indigenous operators are taking centre stage in securing the nation’s oil and gas future.

By: Lady Godknows Ogbulu

Oil & Energy

TotalEnergies, Conoil Sign Deal To Boost Oil Production

Published

1 week 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

1 week 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

1 week 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.