Oil & Energy

NNPC Weekly Activities Highlight Energy Security

Published

5 years ago

June 28, 2021

The weekly activities of the Nigerian National Petroleum Corporation (NNPC) started on a cheering note as the Federal Government assured the Corporation of maximum security as it returns to the Chad Basin for exploratory activities.
President Muhammadu Buhari gave the assurance during his recent visit to Borno State, following the improvement of security in the area.
The president tasked the NNPC to expedite action towards the delivery of 50 megawatts power plant in the state to ensure the prompt restoration of electricity to Maiduguri and its environs.
Still on a cheering note, the House of Representatives Committee on Upstream commended the National Petroleum Investment Management Services (NAPIMS), a corporate Service Unit of the NNPC for efficient management of the nation’s Joint Venture Operating Agreements with the International Oil Companies in Nigeria.
Rep Musa Adar, Chairman of the Committee, who gave the commendation during a recent oversight visit by the committee in Lagos noted that NAPIMS had demonstrated capacity and efficiency in the management of the nation’s hydrocarbon resources.
Speaking earlier, Group General Manager, NAPIMS, Mr Bala Wunti, urged the National Assembly to pass the Petroleum Industry Bill (PIB) to create a competitive oil and gas industry for the country.
Also in the week under review, NNPC struck a partnership deal with the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), and the Nigeria Security and Civil Defence Corps (NSCDC).
The deal with was struck with other relevant downstream and upstream stakeholders in the petroleum industry was to curb smuggling and crude oil theft which had negatively impacted the nation’s economy.
The Group Managing Director of the NNPC, Malam Mele Kyari, said the move was at the instance of President Muhammadu Buhari who had ordered a stop to crude oil theft and illicit truck-out of petroleum products to other countries.
Kyari said the president had urged the Corporation of every stakeholder to ensure that the daily national petroleum products consumption which shot up to 102million litres in May was brought down to realistic levels of around 60million litres.
“We will all agree that smuggling is not a business that should be condoned because even for deregulated petroleum products it brings extra cost burden on this country both in terms of safety and security of supply and in securing of foreign exchange.
“It even constitutes more burden to this country when the product involved is a regulated product like Premium Motor Spirit (PMS).
“We all know that our daily consumption is not up to 60million litres. We all know that, and that is why we have to pull it down. We will pull it down by every means necessary,” Kyari said.
He said NNPC would commence Advanced Cargo Declaration in line with global best practices to tackle the menace.
EFCC Chairman, Abdulrasheed Bawa, said the Commission would work with NNPC to ensure perpetrators of the act were brought to justice.
The Major Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), assured NNPC of total support towards the fight.
The Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) and all the other stakeholders also pledged their support to fight smuggling.
The NNPC Gas and Power Investment Company (NGPIC), a wholly owned subsidiary of the NNPC, launched an initiative tagged “Hazard Hunt Awareness” aimed at curbing harmful incidents in and around the workplace.
NGPIC is a subsidiary of the NNPC with the responsibility to promote domestic gas utilisation and maximise value from investments across the LNG and power value chains as well as the gas-based industries.
The event which was held at the NNPC Towers Abuja saw the Chief Operating Officer, Gas and Power, Yusuf Usman, saying that the initiative was in line with NNPC Top Management’s drive towards becoming a company of global excellence.
“Safety is an aspect that we in the oil and gas industry should pay serious attention to for sustainable operations.
“The Hazard Hunt Initiative which we are launching today, is an awareness programme to help us to promptly identify unsafe acts and conditions so that we can curtail incidences and accidents in our operations,” Usman said.
Earlier in his remarks, the Managing Director of NGPIC, Mr Salihu Jamari, who was represented by the General Manager, Commercial, Mr Justin Ezeala, said that the initiative was a result of research and consultations with stakeholders.
Jamari stated that the programme would assist the NGPIC Management to deliver on its key performance indicators (KPIs) for 2021, pointing out that a company that operates safely would always have motivated staff strength driven towards profitability.
On his part, the General Manager, Group Safety, Health, Environment and Quality (GHSEQ), Mr Hussaini Ali, tasked every staff to be involved in identifying potential hazards and flagging them for prompt action in the interest of the organisation.
Still in the week under review, the NNPC through its Advanced Leadership Programme (ALP) class 095 donated a block of renovated three (3) classrooms, two (2) staff rooms and a borehole to Chachi community, in Tafa Local Government area of Niger state.
The donation was part of the Corporate Social Responsibility project of ALP Class 095.
The General Manager, Talent Management Department, Fatima Yakubu, represented by Mr John Ogbe, commended class 095 for supporting the community’s educational and water needs and encouraged members of the community to take proper care of the facilities for their good.
President of the class, Mr Ogunlolu Olumuyiwa, said Class 095 CSR focused on the renovation of the classrooms and staff rooms because of the dire need to encourage education in the country.
Olumuyiwa added that the borehole would also meet the water need of the community.
The Chairman of the CSR committee of the class, Mr Okeme Aliu, noted that the project was in consonance with the strategic directions of NNPC in ensuring CSR in its host communities.
The Dagachin Chachi, Alhaji Musa Abubakar, spoke in Hausa, and expressed gratitude to the NNPC and the class for supporting the growth and development of the community.
The NNPC also in the week explained the importance of Oil Mining Lease (OML) 118 which was discovered in 1996.
The Corporation while signing a partnership deal for another 20 years said the OML 118 covered approximately 60 sq km in an average water depth of 1,000 metres.
The deal was between NNPC and its Production Sharing Contract (PSC) partners including Shell Nigeria Exploration and Production Company (SNEPCo), and Total Exploration and Production Nigeria Limited (TEPNG).
Others were Esso Exploration and Production Nigeria Limited (EEPNL) and the Nigerian Agip Exploration (NAE).
The five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
NNPC GMD Kyari said over 10 billion dollars of investment would be unlocked as a result of the agreements which signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC).
He disclosed that the deal would yield over 780 million dollars in immediate revenues to the Federal Government while it would also free the parties from over 9 billion dollars in contingent liabilities.
“This is an indication of a renewed confidence between NNPC and her partners; between the Government and the investing communities which include NNPC.
“It produces value for all of us by providing a clear line of sight for investment in the Bonga bloc of around 10 billion dollars.
“Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business,” Kyari said.
NNPC partners applauded the Corporation for the unprecedented progress in the oil and gas industry that necessitated the deal.
On the global scene, Oil prices rose after industry data showed United States crude inventories fell more than expected, reinforcing views of a tightening supply-demand balance with road and air travel picking up in Europe and North America.
Brent crude futures jumped 42 cents or 0.6 per cent to 75.23 dollars per barrel, after giving up 9 cents.
United States West Texas Intermediate (WTI) crude futures jumped 33 cents or 0.5 per cent to 73.18 dollars per barrel, after falling 60 cents.
The American Petroleum Institute industry group reported crude stocks fell by 7.2 million barrels for the week ended June 18, according to two market sources.
Meanwhile, the Market Intelligence Department of NNPC’s London Office reported that Officials from several Organisations of the Petroleum Exporting Countries (OPEC)-plus countries are holding informal consultations.
The consultations include discussing the possibility of a further increase in the alliance’s oil production.
OPEC-plus is due to hold its next ministerial meeting on July 1 and scenarios prepared for the meeting by the OPEC secretariat pointed to growing demand for oil in the second half of this year.
That could support the case for a further gradual increase in the alliance’s production ceilings, the delegates said.
Oil Prices Back at Pre-Pandemic Levels as Brent crude oil futures have rallied since last fall and touched 75 dollars per barrel amid expectations that demand would continue to recover in the second half of this year.

Oil & Energy

‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’

Published

1 month ago

September 21, 2026

The Tide

An Energy Expert, Dr Joseph Obele, has called on the Federal Government and the management of the Nigerian National Petroleum Company Limited (NNPCL) to urgently restart the government – owned refineries insisting that it would help in curbing the rising cost of petroleum products.

He insisted that bringing back the moribund public refineries would further serve as a direct response to the plight of Nigerians as far as petroleum products is concerned.

Obele, who is also the Public Relations Officer (PRO) of the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) and Lecturer at the Ignatius Ajuru University of Education, Port Harcourt, while reacting to the cost of petrol said the immediate and practical approach to addressing the current increase in petroleum prices is to restore production at the government-owned refineries and maximise every available refining capacity in the country.

“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries”, he said.

Obele insisted that restoring functional government-owned refining capacity would increase domestic supply, reduce dependence on imported refined petroleum products and contribute to greater stability in the downstream petroleum market.

He urged the federal government to maximise all available refining capacity while continuing to encourage responsible private-sector Investment and healthy competition within the downstream petroleum industry.

Obele expressed concern over the continued rise in crude oil prices amid the ongoing tensions involving the United States and Iran and concerns around the Strait of Hormuz, warning that sustained supply risks could continue to put pressure on global petroleum prices.

He noted that Brent crude closed at about $105.83 per barrel on 16 September 2026, while WTI closed at about $102.43 per barrel.

The impact, the expert said, is already being felt in the Nigerian downstream market, with Premium Motor Spirit (PMS) reportedly selling in the range of ?1,400–?1,500 per litre in some locations, while Automotive Gas Oil (AGO) is selling above ?2,000 per litre.

“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries”, Obele said.

According to him, restoring functional government-owned refining capacity will increase domestic supply, reduce dependence on imported refined petroleum products and contribute to greater stability in the downstream petroleum market..

He warned that a prolonged increase in petroleum prices would have a wider economic impact, particularly on transportation, food, medical services and other essential commodities.

“The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians”, he stated.

Obele noted that the prolonged dormancy of government-owned refineries has had serious economic and employment implications across the petroleum value chain, affecting workers, contractors, marketers, transporters, businesses and other dependants of the sector.

According to him, a functional Port Harcourt and Warri Refinery would stimulate activities across the petroleum value chain, support employment and restore confidence among industry stakeholders.

In his words, ‘the Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians”

He further noted that the Port Harcourt Refinery had previously recorded production activities arguing that the focus should now be on resolving operational challenges and returning the facility to sustainable production.

“The time to restart the Port Harcourt Refinery is now. Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available. Every viable refinery should be optimally utilised in the national interest”

Obele emphasised that the objective should not be to undermine private-sector refineries but to ensure that all viable refining assets—government and private—contribute to national energy security, adequate supply and a competitive downstream petroleum market.

Lady Godknows Ogbulu

Oil & Energy

The Race To Cut Methane Emissions Is Exposing A Global Divide

Published

1 month ago

September 21, 2026

The Tide

Several countries worldwide have been working to reduce methane leaks, with some states making significantly more progress than others. The establishment of the Global Methane Pledge in 2021 at the COP26 climate summit has helped accelerate cleanup efforts; however, many countries are still falling behind on their methane-cutting pledges. Now, one of the world’s biggest methane polluters – Turkmenistan – is aiming to plug its mega leaks, which would help reduce global methane emissions and could encourage other countries to do the same.

The United States and the European Union led the Global Methane Pledge, which has since been signed by 159 countries that together contribute around 45 per cent of global human-caused methane emissions. The pledge aims to reduce methane emissions by at least 30 per cent below 2020 levels by 2030.

Many governments had already made ambitious pledges to reduce carbon emissions, but some had not previously sought to cut methane emissions, which heat the planet up to 80 times more than carbon dioxide over two decades. Methane has contributed around 30 per cent of the increase in global temperatures since the Industrial Revolution, and fossil fuels contribute around one-third of the methane emissions from human activity. Record production of oil, gas, and coal, combined with limited mitigation efforts, has kept emissions above 120 million tonnes (Mt) annually, according to the International Energy Agency (IEA).

The IEA’s annual Global Methane Tracker shows how much methane is emitted each year and tracks progress and failures. In 2024, abandoned wells and mines accounted for roughly 8 Mt of methane emissions, demonstrating the severity of leaving them unplugged. It is extremely hard to track methane emissions as they are widely underreported. Some parts of the world have little or no measurement-based data on methane emissions.

Therefore, the IEA has to rely on data from scientific studies, measurement campaigns, and large emissions events detected by satellites to estimate emissions each year. Some regions of the world, such as Europe, report their methane emissions far more accurately than other parts. The IEA estimated that global energy-related methane emissions are about 80 per cent higher than those reported by countries to the UN Framework Convention on Climate Change.

Some countries contribute heavily to the world’s methane emissions, particularly oil-rich countries that have not effectively decommissioned fossil fuel operations for decades, including Turkmenistan, the United States, Russia, Iran, and Venezuela. A 2023 Guardian assessment revealed that Turkmenistan was the worst country for methane mega-leaks. Some of Turkmenistan’s “super-emitters” leaked tonnes of methane every hour, from a single valve or pipeline, which is more than the emissions from an entire coal-fired power station. The assessment showed that the methane emissions alone from Turkmenistan’s two main fossil fuel fields contributed more to global heating in 2022 than the United Kingdom’s entire carbon emissions. The findings have led to significant public backlash and put pressure on the government to address the problem.

This year, Turkmenistan approved a massive clean-up project, as the country started plugging its mega-leaks. Turkmenistan has halted eight leaks by repairing corroded pipes, faulty wells, and failing flares, according to data from the United Nations. However, significant work is needed to reduce the country’s methane emissions. The UN Methane Alert and Response System (MARS) has delivered 192 alerts of methane plumes to Turkmenistan over the last year. According to the system, Turkmenistan had nine of the world’s top 50 worst methane leaks of the last six months.

Turkmenistan has improved its reporting systems in recent years and responded to around 20 per cent of the alerts with on-the-ground information about the leaks and potential plans to fix them. By comparison, the United States was sent 138 alerts and did not respond to any. The worst detected methane leak came from Mexico’s offshore oil and gas operations and measured a huge 37 tonnes per hour, equivalent to the emissions of over 7 million SUVs. Although Mexico responded to all 23 MARS alerts, it has yet to fix the leak.

Meghan Demeter, the programme manager of MARS, stated, “These mitigation cases are a proof point of what can be done with satellite data, especially in situations like Turkmenistan, where there are a lot of detections… This is a breakthrough in terms of having real documented mitigation action. But it is not yet a breakthrough in the overall magnitude of emissions. Eight cases is an incredible first step, but there are also a lot more sources in Turkmenistan that need to be addressed. We are in pretty constant communication, and the response rate is growing month by month. We’re seeing steady progress.”

UN tracking has also encouraged other countries in the region to plug leaks, with Kazakhstan, another former Soviet republic with ageing oil and gas infrastructure, stopping eight leaks following alerts. To date, Mexico, Brazil, and Argentina have 100 per cent response rates to MARS alerts, while Libya and Azerbaijan have high response rates. Meanwhile, the United States, Iran, Russia, and China failed to respond to any alerts.

By Felicity Bradstock for Oilprice.com 16

Oil & Energy

Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid

Published

2 months ago

September 7, 2026

The Tide

The Delta State Government has intensified efforts to boost electricity generation and supply in the state with plans to add 120 megawatts (MW) to the national grid through a partnership with Supply Power.

The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.

Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.

He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.

According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates

The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.

Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.

He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.

He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.

Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics

He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.

The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.

He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.

On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans

He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.

The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.

He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.

Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.