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2024 oil bid round are for individuals with proven financial capacity, technical competence – Minister

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2024 oil bid round are for individuals with proven financial capacity, technical competence – Minister

. As NUPRC pledges to conduct fair, transparent bids

As part of effort to drive investment and boost the nations economic fortunes, the Minister of State for Petroleum Resources (Oil), Sen Heineken Lokpobiri, says the 17 oil blocs put forward for sale under the 2024 licensing bid round are not for politicians, but investors with financial capacity and technical competence.

Lokpobiri disclosed this during a conference organised by the Petroleum Technology Association of Nigeria (PETAN), at the ongoing 2024 Offshore Technology Conference (OTC), in Houston, Texas U.S

The conference has the theme “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective).

He said in the past the award of oil blocs culminated to the non-development of over 90 per cent of marginal fields.

This, he said, denied the Federal Government of reaping the intended benefits because such awards were not based on technical and financial considerations.

“We have noticed a lot of idle blocs and little or no investment done on them in the last three years of acquiring them.

“I can tell you for fact that over 90 per cent of owners of these oil blocs are seeking for renewal without commencing or investing on them.

“In this regard, we are saying no more to that, and hence, those seeking for blocs must be financially and technically capable to turn it around and not mere portfolio investors.

“These set of investors are those we consider as men and not boys in the industry.

“The blocs are not for politicians. So, we are downplaying that kind of investors in this new bid rounds.

“However, we have taken away the 200 million signature bonus tied to blocs ownership.

“What we have tried to achieve is to tie such to operations and investment which will encourage investors and drive investment speedily on a field.

“I have worked closely with the NUPRC to ensure that we achieve a seamless transition and bid round sales this year,” Lokpobiri said.

Similarly, the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, (NUPRC), Mr Gbenga Komolafe, said the recent Presidential Executive Orders issued in March were aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector.

Komolafe said that it would culminate in further increasing the nation’s oil and gas reserves, currently standing at 37.5 billion barrels of crude oil and condensate reserves and 209.26 trillion cubic feet of natural gas reserves.

“The exercise, which was initially announced on the 29th of April 2024, is a significant leap in our strategic hydrocarbons development initiative.

“This round introduces twelve meticulously selected blocs across diverse geological spectra — from the fertile onshore basins to the promising continental shelves and the untapped depths of our deep offshore territories.

“Each bloc has been chosen for its potential to bolster our national reserves and stimulate economic vitality.

“Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.

“In keeping with the provisions of the PIA and regulations made under the Act, the Commission has issued a licensing round guideline and published a licensing round plan for the twelve blocs.

“Namely PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271).

“In addition to these blocs, the seven deep offshore blocs from the 2022 Mini-Bid Round Exercise which cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m shall also be concluded along with this Licensing round.

“To ensure the seamlessness of the licensing round exercise, the NUPRC, in collaboration with our national data repository and multi-client partners.

“Guarantees access to comprehensive and high-quality geological data, facilitating informed decision-making and strategic investments,” he said.

He said that the blocs on offer have extensive 2D and 3D seismic data coverage, including multi-beam and analogue data.

“Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders.

“The availability of advanced seismic datasets and analytical tools via our dedicated portals exemplifies our commitment to excellence and technological advancement.

“Distinguished investors and industry captains and stakeholders, the licencing round is indeed expected to be a huge success for Nigeria and is a big step toward growing the nation’s oil and gas reserves through aggressive exploration and development efforts.

“Boosting production, expanding opportunities for gas utilisation and end-to- end development across the value chain, strengthening energy security and economy.

“Providing occasion to gainfully engage the pool of competent companies in the oil and gas sector with multiplier effect in employment opportunities.

“Enabling transfer of technology, valorising petroleum assets in the Nigerian territory and attracting investments.

“In addition, the licencing round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).

“On the global scale, the licensing round will no doubt be beneficial to all stakeholders and will in the long run contribute to long-term global energy sufficiency.

“Interestingly, the licensing round process was formulated in cognisance of global energy sustainability goals,” he added.

NUPRC has begun a road walk in Houston, for oil bidders and will be in Miami florida next week

Energy

Nigeria’s Adekeye emerges Chairperson, APPO Training Directors

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Nigeria’s Folashade Adekeye has emerged as the Chairperson, Forum of the Directors of Oil & Gas Training & Vocational Education Institutes of the African Petroleum Producers Organization (APPO).

Adekeye, who is the Director, NNPC Academy, took over from the former chairperson, Mr. Abdelkader Guenone, the Managing Director of the Algerian Petroleum Institute (API), during the second meeting of the Forum, in Abuja, at the weekend.

Adekeye, who heads the NNPC’s oil and gas training arm, brings into the role over 30 years of experience, and is expected to work with her colleagues from APPO Member Countries in order to foster more collaboration towards addressing the challenges of competences, skill gaps, infrastructure, and poor funding in the organization’s training institutions.

Earlier in his keynote address at the opening ceremony of the meeting, the Group Chief Executive Officer of NNPC Ltd., Mele Kyari, represented by Inuwa Danladi, Executive Vice President (Business Services), emphasized the importance of a standardized educational and training approach to meet the changing demands of the oil and gas industry.

Also in his keynote address, APPO’s Secretary General, Dr. Omar Farouk Ibrahim, charged the Member Countries to work towards further enhancing collaborative efforts to establish Oil & Gas Centres of Excellence across the African continent.

Dr. Ibrahim, also from Nigeria, said having good knowledge of the Forum’s challenges would enable APPO Member Countries to make recommendations and provide solutions in areas such as Oil & Gas project funding, technology adoption, and the formation of Africa Energy Bank.

He concluded that such collaboration by all member countries will guarantee Africa’s energy accessibility, affordability and sustainability, which overall, will strengthen her economies and bring prosperity to its citizens.

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FG may fund installation of CNG pumps as marketers lament high cost

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The Federal Government may consider assisting independent fuel marketers with funding to install Compressed Natural Gas sales pumps at filling stations across the country, newsmen has learnt.

This followed the lamentation of the Independent Petroleum Marketers Association of Nigeria that its members were unable to finance the installation of CNG sales pumps at their filling stations in line with the presidential directive promoting the CNG initiative.

The marketers said the cost of installing CNG pumps was prohibitive for its members, adding that the high-interest rate charged by banks also made borrowing money for the project an unattractive option.

President Tinubu had announced an end to the fuel subsidy era during his inauguration on May 29, 2023, a move that triggered a hike in the cost of the product.

The President, however, promised to roll out measures, including CNG-powered mass transit buses and tricycles, to cushion the impacts of the subsidy removal. After almost one year in office, that initiative is set to come to life.

According to presidential aide, Bayo Onanuga, the Federal Government planned to launch its compressed natural gas initiative in May ahead of President Bola Tinubu’s first anniversary.

“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year,” he said in a statement.

“A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company, LUOJIA, in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and are expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024,” he added.

Onanuga said the Federal Government was targeting the purchase of 5,500 CNG vehicles (buses and tricycles), 100 electric buses and over 20,000 CNG conversion kits, in addition to spurring the development of CNG refilling stations and electric charging stations.

“With necessary tax and duty waivers approved by President Tinubu in December 2023, the Presidential CNG Initiative committee is partnering with the private sector to deliver the promise of the initiative. The private sector has responded with over $50m in actual investments in refuelling stations, conversion centres, and mother stations,” he said.

Also, the FG, through the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, had issued a directive mandating oil marketing companies to instal CNG pumps in filling stations across the country.

Ahmed, who described the push by the Federal Government to encourage the use of CNG as an alternative to petrol as a revolution, said the government was determined to reduce the burden of petrol on the economy. As such, the government said intending retail licensees would now be required to establish CNG points in their filling stations before getting final government approval.

He said, “We want to reduce the burden of the importation and consumption of PMS. We explored the possibility of converting the energy requirement of retail outlets and depots by the stakeholders here going into solar, but there is a high entry cost. We have discussed that, and it is going to be in phases. By doing so, we will reduce the demand for diesel in terms of powering our generators by utilising solar options. Once we are done with consultations, we will require that CNG add-ons be put in petrol stations and for new applications, one of the requirements will be that you must have a CNG add-on in the petrol station.”

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ANOH gas project can provide electricity for five million homes — Seplat Energy

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The board chairman of Seplat Energy, Udoma Udoma has announced that the newly inaugurated Seplat Energy ANOH Gas Processing Plant can generate electricity for 5 million Nigerians.

Udoma stated this at the commissioning ceremony of the plant, held in Ohaji, Imo State, by President Bola Tinubu.

Built by the ANOH Gas Processing Plant Company (AGPC), the plant is a joint venture equally owned by Seplat Energy and the Nigerian Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The plant achieved mechanical completion in December 2023, recording no Lost Time Incidents (LTIs) over 12 million man-hours.

With a Phase One processing capacity of 300 million standard cubic feet per day, the ANOH plant is set to deliver dry gas, condensate, and LPG to both domestic and international markets.

Tinubu praised Seplat Energy and its partners for their efforts, stating, “Today is a great day of achievement demonstrating teamwork, commitment, and dedication to duty. I congratulate you for all you have done for the country and for fulfilling this in only 11 months.

“The ANOH gas project strongly aligns with Seplat Energy’s mission of leading Nigeria’s energy transition with accessible, affordable, and reliable energy that drives social and economic prosperity.

“As a testament of our pledge to Nigeria, in partnership with the NNPC Ltd, we have delivered this project that will support the current administration’s drive for industrialization and growth of the economy through low-cost reliable power.

“To put this into context, if all of the gas from this plant went into the power sector, it would produce enough electricity to transform the lives of over 5 million people. Given that Nigeria’s population is growing at a rate of over 5 million per annum, we need one of these plants a year every year just to meet the demand of our new arrivals.

“We appreciate the unwavering support of our partner NNPCL, the cordial relationship with our host communities, Imo state government and the support of all stakeholders that are too many to mention,” Udoma added.

CEO of Seplat Energy, Roger Brown, remarked, “Seplat Energy is pleased with the progressive reforms by President Bola Ahmed Tinubu and his administration. In March 2024, the President signed executive orders to enhance investments in greenfield gas development and midstream capital projects.

“Also, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently improved gas prices under the DSO, to trigger further investments to the domestic gas sector – our ANOH gas plant will benefit from these reforms and incentives. No doubt, the ANOH’s gas will further reduce Nigeria’s carbon intensity and increase energy supplied to the Nigerian domestic market.”

The commissioning ceremony was attended by Seplat Energy’s board members, management and staff, government officials, institutional partners, traditional rulers, and industry players, among others.

Group CEO of NNPC, Mele Kyari, commented on the collaborative efforts, stating, “The ANOH Gas Processing Plant being commissioned by NNPCL and our partner is in line with Nigeria’s decade of gas agenda and particularly consistent with the administration’s efforts to boost gas supply in the domestic market.”

Imo State Governor, Hope Uzodinma, represented by Deputy Governor Chinyere Ekomaru, congratulated Seplat Energy on the timely completion of the project and expressed optimism about the opportunities it brings to the state.

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, added, “With a capacity of 600 million standard cubic feet per day, the ANOH Gas Processing Plant is a shining example of advancement. This plant will greatly advance the availability of domestic gas which will boost power generation and hasten industrialisation.”

The ANOH Gas Processing Plant, which is situated in Ohaji, Imo State, is poised to emerge as one of Nigeria’s most important gas initiatives. It would speed up the switch from diesel generators to cleaner, more affordable fuels like natural gas for power generation and enable higher gas production.

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