Energy
NNPC Ltd, PETAN to collaborate to reduce cost of production
The Nigerian National Petroleum Company (NNPC) Limited and the Petroleum Technology Association of Nigeria (PETAN) are exploring a collaboration to reduce the cost of oil and gas production in Nigeria.
Speaking at a meeting with Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari at the NNPC towers.
The PETAN Chairman, Engr. Wole Ogunsanya has said that PETAN will demystify the cost of oil and gas production in Nigeria.
Realising that all hands must be on deck with the Presidential mandate to revamp the economy through increased oil production, Engr. Ogunsanya pledged PETAN’s all-encompassing overreaching capacity which its members have garnered for decades on the local content journey to ramp up oil and gas production for the country at reduced cost.
“Our cost of production compared to many countries is too high and at PETAN, we feel that we have the responsibility to bridge the gap of cost production and cost of sales through collaboration with the government, the regulators and the NNPC Limited.”
“In the next few years,” he added, “nearly 70 percent of onshore assets will be owned by Nigerians and PETAN has the strategy to maximise the footprints from these assets through a well articulated model that will allow us to master full in country value chain of Exploration, Production, Midstream and Downstream. The Model Project will start small within 5,000 -10,000 Bopd using our cost-saving technologies, know-how whilst saving cost and then upscale to support NNPCL and other Onshore Asset owners.”
Addressing his guests virtually, the GCEO of the NNPC, Mr. Mele Kyari, regretted his inability to physically receive the PETAN team but expressed delight that PETAN remains a dependable partner in the industry despite the critical changes that its undergoing especially in respect to ramping up production.
“We have a very determined President who makes procurement easier now, fiscal systems have been improved tremendously, as well as midstream and Upstream development all of which create a lot of opportunities which we need to collaborate to deliver.”
Whilst thanking the team for strengthening ties, he added, “On OTC, we will continue to work with you so that our participation becomes robust and meaningful and to get value, opportunities and investments back in-country”.
Executive Vice President, Upstream, NNPC Limited, Mrs Oritsemeyiwa Eyesan, who physically received the PETAN team on behalf of the GCEO, equally noted that it was gratifying to hear the aspirations of PETAN, which aligns with the Federal Government’s and by extension the NNPC’s.
“From our humble beginnings, we thought that the industry would morph into something much larger, but today, we are starting new beginnings with a good number of divestments that are about to be concluded, presenting opportunities in the industry and are to be run by Nigerians for Nigerians necessitating a stronger synergy between the new operators and PETAN as technical oilfield services providers.
“The Executive Order in itself as an enabler, has tried to address the issue of the contracting cycle, which poses a major challenge because it slows down development and increases cost of production. It’s time to work together to improve systems and processes to encourage Nigerians who have the capacity to do business in Nigeria. In area of domestic gas, we are concerned about utilizing the huge opportunities in unlocking the benefits and charge PETAN to collaborate with us in a focused and collaborative approach to fix the power equation in Nigeria which we believe will make everything else fall into place and make countries like Dubai to look like child’s play compared to Nigeria.
“As the GCEO has said, NNPC is committed to continue to work with PETAN and the new dispensation will ensure that we incorporate you in all that we do. On OTC, we also want to charge PETAN to ensure, as the GCEO has said, that value is gotten from the interactions which should be made broader even beyond the African sub-region, which we highly commend PETAN for galvanizing – most of who look up to Nigeria as the giant of Africa – to attract investments from technology giants to add value in-country.”The newly elected executives of the Petroleum Technology Association of Nigeria, who have renewed advocacy around helping Nigeria and Nigerians recover from recurrent losses on oil production levels and revenues are offering their services and expertise as experienced professionals in any capacity across the value chain of the oil and gas industry.
“PETAN deems it an honour to be engaging with the highest level of the oil and gas management in Nigeria and well aware of the mandate of the President to revive the economy, stand willing and ready to deepen collaboration with the NNPC to increase oil and gas production for the common good,” Engr. Ogunsanya noted.
He pointed out that the oil and gas industry which has “been helping our country stay afloat should not be left to buckle under present varying challenges.”
“It was here in NNPC that the policy on local content was first made; how Nigerians would extend the value chain of oil and gas from discovery, exploration, midstream and downstream and retained in-country.
“In 2010, the passing of the Nigerian Content Act which established the NCDMB and catalyzed Nigerians such as PETAN members working at the time in IOCs to come home and begin to develop capacities in the industry.”
Commending the NNPC for its leading role in laying the foundation for local content practice in Nigeria, he charged for deepened partnerships on projects across the board, saying, “We have the equipment, the services and the capacities across the value chain – finding the well, well testing, bringing the oil and gas to the surface, early production facility services, we have the capacity for EPCI, oil and gas processing, and so forth to bridge any gap on assets management.
“On OTC, we are partnering the NUPRC to develop a road show model on attracting potential bidders for deep water assets and we also have an African Collaboration session as part of our OTC programme to chart pathways on this as well.”
The meeting highlight was the presentation of the PETAN Excellence Award to the GCEO, Mallam Kyari in recognition of his leadership and immense contributions to the frontier basin exploration initiative by the PETAN Chairman, followed by group photographs. The PETAN delegation was made up of the PETAN Chairman, Engr. Wole Ogunsanya FNSE; Mr. Stanley Egege, MD, Ce-Stalong Limited; Dr. Iyala Felix, GGM, Solewant Group; Mr. Daere Akobo, MD, PE Energy Limited; Mr. Valentine Obidi, Executive Vice Chairman, Emval Limited; Mr. Chika Ikenga, MD, Eunisell Limited; Engr. Okey Ukaegbu, MD, Catobi and PETAN’s Assistant Secretary; Mr. Akin Osuntoki, CEO, Richardson Oil and Gas and PETAN’s Financial Secretary; Dr. Ibilola Amao, Principal Consultant, Lonadek Global Services Limited and PETAN’s Ex-officio; Engr. Kachi Ekezie, Kapital Energy; Engr. Kevin Nwanze, Executive Secretary, PETAN, and Zainab Alimi-Ajibola, PETAN’s Media Assistant/Abuja Liaison Officer.
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.
Nigeria’s newly constructed Dangote refinery, Lagos is seeking to purchase millions of barrels of US crude oil over the next year as it ramps up processing rates, Bloomberg reported on Thursday.
According to the report, the plant has issued a term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July.
“The plant, built by Africa’s richest man, Aliko Dangote, issued a so-called term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21,” the report stated.
Recall that the 650,000 barrels per day Dangote Petroleum Refinery is taking advantage of cheaper oil imports from the United States for as much as a third of its feedstock as it starts production.
An earlier report by Bloomberg on April 18 stated that the plant has been shipping products in weeks while readying two units to enable gasoline (petrol) output that will deliver a long-promised transformation of the fuel market both in Nigeria and the region. It attributed this to analysts.
“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” said Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at the consultancy firm, Wood Mackenzie.
The process for nationwide deployment of Compressed Natural Gas (CNG) vehicles has commenced. Not less than 530 buses are to be deployed by the end of the month in six pioneering states.
These are Oyo, Lagos, Kwara, Kogi, Kaduna, Nasarawa, and the Federal Capital Territory (FCT) Abuja.
Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI) Michael Oluwagbemi stated this yesterday.
It was during the event signaling the commencement of 15-day-long activities ahead of the rollout.
He said the distribution is on a demand-led basis. He added that efforts would be accelerated at the conversion of diesel and petrol-fuel engines across the country.
According to Oluwagbemi, President Tinubu has directed the PCNGI to ensure the conversion of at least 10 per cent of the total number of vehicles in the country in the first year of the rollout of the initiative.
Today, the team will inspect the Jets and Mikano Factory along with representatives of the Ministry of Labour and workers unions.
Southsouth and Southeast stakeholders engagement will be held tomorrow in Port Harcourt, the Rivers State capital.
Affiliate conversion and refuelling at the Femadec Site as well as an inspection tour of the Total Energies support station are planned.
Another six-day inspection tour of the Kojo Factory at the Enugu-Onitsha Site will begin on May 24 to receive the first set of assembled tricycles, buses, cylinders and kits ahead of the official launch.
The Luojia Assembly Plant for CNG tricycles on the Lagos-Ibadan Expressway will be inaugurated on May 30.
“These programmes are a fulfilment of President Bola Ahmed Tinubu’s promise to drive Nigeria’s energy transition in the transportation sector leveraging CNG and enabling economic growth,” Oluwagbemi stated.
He noted the President’s political will to ensure the full utilisation of natural gas which hitherto was being flared.
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