Nation
Senate Seeks Reduction In Crude Oil Production Cost
President of the Senate, Dr Ahmad Lawan, has advocated for a reduction in the cost of crude oil production by International Oil Companies (IOC’s) operating in Nigeria.
Lawan made the call, yesterday, in Abuja, while receiving a delegation of Oil Producers Trade Section (OPTS) in Abuja.
He said that the Petroleum Industry Bill (PIB) at the National Assembly would make provisions for reduction in the cost of crude oil production.
“The cost of production in Nigeria is a major concern in the oil industry, my colleagues in the committees that are oil and gas-related know better.
“But from the little I understand, while Saudi Arabia may spend $5 to produce a barrel, we are spending about $30 to produce same in some cases.
“The time has come for us to ensure that the cost of production is beaten down to a more meaningful and profitable production cost.
“We must do everything possible together to ensure that the host communities benefit from wherever they are supposed to benefit from.
”Not only the host community development fund, but in the Niger Delta Development Commission (NDDC) and other areas of government intervention, the Amnesty Programme and Ministry of Niger Delta Affairs.
“How do the host communities benefit, because we need to stabilise those areas so that we have cheaper production costs,” he said.
Lawan, while emphasising the importance of the PIB towards advancing Nigeria’s economy, assured that the Senate would accommodate the interest of international investors in the bill.
He, however, decried low inflow of business investors in Nigeria, attributing it to absence of a legal framework which the PIB sought to address.
“In the last 20 years, investments coming into Nigeria and this industry have been so dismal, and so small compared to the size of what we have elsewhere, maybe due to lack of a legal framework – the PIB.
“So, we are very conscious of ensuring a balance and equilibrium between our interest as a people and a country, that we should have all the benefits accruing from your operations.
“We need to help you by creating that kind of environment where you’re able to argue and get the investments flow into Nigeria, instead of elsewhere. Let me also add, that at the end of the day, this is going to be a balanced legislation.
“For us as a country, we will not do anything that would jeopardise the chances of our oil industry competing favourably with other climes.
“So, I want to assure you that we would look into those issues of concern to you, and we would do exactly what we think will be in the best interest of Nigeria and also in the interest of the OPTS,” Lawan said.
Earlier, leader of the delegation, Mr Mike Sangster of Total Nigeria, said the visit was to engage the National Assembly on areas to modify in the PIB to ensure its success when signed into law.
“On behalf of all of the industry and my colleagues, I want to say that we duly support the government’s effort to drive through the Petroleum Industry Bill.
“We think it is really important that there’s an updated framework for the industry.
“In our view, we are looking for something that will contribute to Nigeria, which will bring investment to the country and growth to the economy, and obviously jobs to the Nigerian people.
“We are looking for something that will protect our existing investments, and also unlock opportunities, so, we can further grow our businesses and production.
“We need to find ways jointly to try and reduce what we see as the cost premium of operating in Nigeria, so, we are looking at ways where the PIB can help there,” he said.
Nation
HYPREP Marks 15 Years Of UNEP Report, Highlights Major Cleanup Milestones
The Hydrocarbon Pollution Remediation Project (HYPREP) has commemorated the 15th anniversary of the release of the United Nations Environment Programme (UNEP) Environmental Assessment Report on Ogoniland, reaffirming its commitment to restoring the environment and improving the livelihoods of affected communities.
In a statement signed by the Project Coordinator, Prof Nenibarini Zabbey, to commemorate the anniversary, HYPREP described the anniversary as a significant milestone in Nigeria’s environmental restoration efforts, noting that the project has made remarkable progress in implementing the recommendations of the landmark UNEP report released on August 4, 2011.
The UNEP report had revealed extensive oil pollution across Ogoniland, severe environmental degradation, and serious public health risks resulting from decades of petroleum operations. It also recommended an initial $1 billion fund to commence the cleanup of the affected communities.
According to HYPREP, the Federal Government formally launched the Ogoni clean-up in 2016, while the Project Coordination Office was established in 2017 to drive the implementation of UNEP’s recommendations.
Zabbey said the current administration has continued to prioritise the project under the Renewed Hope Agenda.
Providing an update on the cleanup, the Project Coordinator disclosed that 30 of the 65 contaminated sites identified by UNEP have been fully remediated, while work is ongoing at several medium- and high-risk locations. It also stated that more than 1.5 million mangrove seedlings have been planted as part of what it described as the world’s largest restoration of oil-degraded mangroves, with over 1,000 hectares of shoreline already rehabilitated.
Zabbey further revealed that 49 Ogoni communities have been connected to potable water schemes through multiple water projects and booster stations aimed at providing safe drinking water across the region.
In the health sector, he said the 100-bed Ogoni Specialist Hospital in Kpite and the 43-bed Cottage Hospital in Buan are nearing completion, adding that several existing health facilities have been upgraded with modern medical equipment, while five ambulances have been donated to improve emergency healthcare services. The Project Coordinator also disclosed that a three-year human health biomonitoring study is being conducted in collaboration with the World Health Organization’s International Agency for Research on Cancer (IARC).
On economic empowerment, Zabbey stated that the Project has created more than 8,000 direct jobs and trained thousands of Ogoni youths and women in various vocational and technical skills, including software development, cybersecurity, aviation, commercial diving, seafaring, mechatronics, and creative arts. The project also reported awarding scholarships to more than 1,000 students, providing grants to small businesses, and supporting persons living with special needs through skills acquisition programmes.
The statement further highlighted ongoing legacy projects, including the Ogoni Power Project and the Centre of Excellence for Environmental Restoration, which it said is about 96 per cent complete. HYPREP also welcomed the recent designation of the Ogoni Wetland as a Ramsar Site of International Importance and pledged to continue promoting biodiversity conservation and sustainable management of the ecosystem.
Marking the anniversary, Zabbey said the progress achieved over the past 15 years demonstrates the collective commitment of government, development partners, stakeholders, and local communities to restoring Ogoniland. He called for renewed collaboration to sustain the cleanup effort, promote environmental sustainability, and support the long-term development of the region. 3
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