Energy
Seplat-ExxonMobil Deal: NNPC workers union backs Buhari’s ministerial assent withdrawal
The Group Executive Council, GEC, of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, branch at the Nigerian National Petroleum Company, NNPC, Limited, has applauded President Muhammadu Buhari for withholding the Ministerial consent for the sale of Mobil Oil Producing Nigeria Unlimited asset to Seplat Energy Plc.
The GEC Chairman, Emea Okorie and Secretary, Peter Asemota, in a joint statement said, “This decision is indeed timely, necessary, and commendable as it places national interest over and above other interests.
“This Asset is the nation’s most prolific asset and the lowest cost Joint Venture, JV, with an excellent community reputation and peaceful operations.
“It is the collective decision and resolution of GEC of NNPC PENGASSAN that the management of NNPC Limited should go ahead, in the best interest of the nation, to exercise her inalienable Right of First Refusal (RFR) to acquire the 40% assets of MPNU and every other Joint Ventures (JV) in Nigeria as this will position NNPC for better productivity, efficiency and maximum return on investment in the oil and gas industry.”
The Group also lauded the vigilant and watchdog role played by the nation’s oil and gas regulator, the Nigerian Upstream Regulatory Commission, NUPRC, ably led by Engineer Gbenga Komolafe for ensuring transparency, fairness, adherence to process and due diligence in the entire acquisition process.
It stated that this has protected the nation from unforeseen and imminent losses that would have occurred as a result.
The GEC of NNPC PENGASSAN equally commended the leadership of NNPC Limited under Dr Mele Kolo Kyari for the overwhelming innovations, wisdom and creativity brought to bear in the management of the nation’s Hydro-Carbon.
According to the statement, “His selfless decision to drive the passage of the Petroleum Industry Act (PIA), which has positioned NNPC Limited as a commercially-driven energy company that will compete with other National Oil Companies (NOCs) to meet the expectations of its shareholders and stakeholders.
“As an Association that has constructively collaborated with the Management as progressive partners, we are always willing to support you to drive your vision.”
The GEC of PENGASSAN listed some of the ongoing laudable projects embarked on by NNPC Limited to include: Rehabilitation of Port Harcourt and Warri Refineries, Petrochemical Company, Partnership programmes with host communities like Ogidigbe Industrial complex and Maiduguri 50MW power plants, Resolution of the 30-year old trade conflict and renewal of five productive OML, Construction of the E-OWEP gas pipeline to increase gas supply to our National gas hubs; and Construction of the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline.”
The GEC expressed its belief that “all these projects will lead to maximum utilisation of the nation’s hydrocarbon resources, guarantee steady power supply impact positively on the nation’s manufacturing sector, and provide job opportunities in the Hydro-Carbon industry for Nigerians, especially in these critical times.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the Shell Petroleum Development Company of Nigeria Limited (SPDC) assets being considered for divestments have an estimated reserve of 4.96 billion barrels of oil.
The Commission Chief Executive of NUPRC, Mr Gbenga Komolafe disclosed this on Monday in Abuja at the NUPRC-SPDC due diligence divestment workshop.
Komolafe said at the workshop that the assets have reserves of 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of non-associated gas.
The workshop was aimed at discussing the proposed divestment of the participating interests held by SPDC in the SPDC JV Assets, through a sale by the shareholders of all the issued shares of SPDC to Renaissance Africa Energy Company Limited.
The SPDC JV assets are currently operated by the SPDC on behalf of its Joint Venture (JV) partners namely Nigeria National Petroleum Company Limited (NNPC Ltd.), Total Upstream Nigeria Limited, Nigeria Agip Oil Company and SPDC.
“To date, the assets have achieved a cumulative production of 5.35 billion barrels of crude oil, 165. 57 million barrels of condensate, 9.51 trillion cubic feet of associated gas and 3.75 trillion cubic feet of non-associated gas.
“These contribute to the achievement of Nigeria’s crude and condensate output.
“The assets being considered have an estimated total reserve of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of non-associated gas.
“This makes a significant contribution to the nation’s hydrocarbon resources.
“Additionally, these assets hold P3 reserves estimated at 2.85 billion barrels of oil, 850.85 million barrels of condensate, 11.3 trillion cubic feet of associated gas and 12.26 trillion cubic feet of Non-Associated Gas,” he said.
Komolafe said the due diligence meeting would enable the commission to identify a successor who would not only possess the requisite financial resources but also demonstrate the technical expertise to responsibly manage these assets throughout their lifecycle.
He further said that the commission would ensure that the inherent environmental and end-of-life liabilities such as decommissioning liabilities were accurately identified and assigned to the party best equipped to bear the associated risks.
This, he said would necessitate a comprehensive understanding of regulatory requirements, industry best practices and the unique challenges inherent in oil and gas operations.
“To this end, we have implemented robust measures to streamline regulatory procedures and eliminate unnecessary barriers to investment.
“Let me emphasise that the NUPRC wholeheartedly welcomes investment in the Nigerian upstream petroleum sector.
“We recognise the critical role investment plays in driving innovation, creating employment opportunities and ultimately fueling economic prosperity for our nation and its people.
“Therefore, we are always eager to welcome local and international investors who choose to invest in the Nigerian upstream petroleum sector,” he said.
He added that the commission was fully committed to facilitating and supporting investment initiatives that align with national development goals.
Komolafe urged SPDC and Renaissance to engage proactively, adhere to regulatory requirements and work collaboratively with the NUPRC to ensure the successful conclusion of the Shell Divestment.
“As regulators, we will ensure that this evaluation is conducted with precision and impartiality, with a focus on transparency and accountability,” he said.
He lauded President Bola Tinubu for his support and commitment towards ensuring a purposeful leadership that would attract investment and development of the country’s oil and gas sector.
The News Agency of Nigeria (NAN) reports that the NUPRC has developed a Divestment Framework consisting of seven cardinal pillars to guide the assessment of applications for Ministerial consent to the SPDC divestments and other similar divestments
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has developed a divestment framework to guide the assessment of applications for ministerial consent to the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) divestment.
The NUPRC said the framework with seven cardinal pillars would also guide other similar divestments in the country.
The commission’s Chief Executive, NUPRC, Mr Gbenga Komolafe, said this at the NUPRC-Shell Petroleum Development Company of Nigeria Ltd. divestment workshop on Monday in Abuja.
The due diligence workshop aimed at discussing the proposed divestment of the participating interests in the SPDC JV Assets, through a sale by its shareholders of all the issued shares of the SPDC to Renaissance Africa Energy Company Ltd.
The SPDC JV assets are currently operated by the SPDC on behalf of its Joint Venture (JV) partners, namely, Nigerian National Petroleum Company Limited (NNPC Ltd.), Total Upstream Nigeria Limited, Nigeria Agip Oil Company and SPDC.
SPDC JV OMLs were originally awarded as Oil Exploration Licence -1(OEL-1) on Jan. 1, 1949, covering the whole of southern Nigeria and Cameroon.
Ultimately, the assets were converted to OMLs in April 1962 and subsequently renewed in 2014 and 2018 for 20 years.
Komolafe listed the cardinal pillars to include technical capacity, financial, legal, decommissioning and abandonment (D&A), host community trust /environmental remediation fund, industrial relations and labour issues and data repatriation.
On technical capacity, he said the successor entity must demonstrate verifiable capacity to operate the asset vigorously, while the NUPRC shall assess the prospective successor’s financial viability to undertake a defined programme and fulfil required obligations on the assets.
On the legal framework, he said the acquiring entity must be ‘fit and proper’ persons in the eyes of the law.
He added that clear evidence of resolutions of legacy debts and legal encumbrances must be established.
“Applicable decommissioning and abandonment costs must be diligently assessed and ensure settlement of outstanding obligations. Commission will ensure that potential exposure of the Nigerian government to decommissioning liabilities is averted.
“The commission shall assess the status of Host Community Trust Fund obligations and ensure the robustness of the successor entity’s adherence to decarbonisation plans and sound Environmental Social & Governance principles.
“The commission shall implement a robust assessment mechanism to avert undesirable labour union issues and disharmony arising from the divestment process.
“Concerned parties shall endorse a “Certificate of Settlement” to validate alignments reached on all labour issues (staff welfare, benefits, entitlements as well as disengagement, redundancies and retirement, among others).
“The aim is to ensure the nation averts socioeconomic disruptions arising from failure to resolve labour issues that might result because of post-divestment,” he said.
On data repatriation, the CCE emphasised that the commission would ensure that all data mined during the operating life of the asset were repatriated to the National Data Repository in line with extant regulations.
Komolafe, however, emphasised that the NUPRC would remain committed to free entry, free exit business principle aimed at encouraging investors in the sector.
Mr Wessel de Haas, General Manager, SPDC Assets and Deputy Managing Director, reiterated the significant contribution the company had made and expected to make in the future, toward Nigeria’s economic growth.
He anticipated a favourable outcome from the workshop with expectation of a due diligence process to finalise the divestment.
The Abuja Electricity Distribution Company (AEDC), has attributed the power outage currently being experienced in parts of Abuja to technical fault on some of its feeders
The company’s management in a statement on Monday in Abuja listed the feeders affected as L36, H23, H33 and 8.
“This is to inform residents in parts of Abuja that the power outage currently being experienced is due to technical fault on feeders L36, H23, H33 and 8 respectively.
“Locations affected: are feeder L36-Entire Idu industrial, CITEC Estate, Efab Global, Babaginda Estate, Nizamaye Hospital and its environs.
“FH 23-Airport, River Park, Shoprite, NIPCO, Dunamis Church, NIGCOMSAT and its environs,’’ it said.
The company said that Feeder FH33 was also affected and this comprises Apo Mechanic Village, Waru Village and its environs
The company also said that Feeder 8 which has Jabi, Parts of Utako, Life Camp, Kado, Efab, Zango Daura, and Mbora Estates and its environs was also affected.
According to AEDC, its technical team is working tirelessly to rectify the fault and restore power supply as quickly as possible and regrets any inconvenience caused.
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