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Mainland Oil boosts fuel supply, slashes price

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Mainland Oil and Gas Company Limited, said it has accelerated  petrol retail services at its over 54 stations across the country.

The company has also slashed the prices of the product at its retail outlets, even at a time most other marketers have taken advantage of the prevailing supply crisis in the market to make huge profits.

Managing Director of the company, Dr Chris Igwe, stated that the company has remained steadfast to regulatory compliance on pricing in line with its commitment to partnering the Nigerian National Petroleum Company (NNPC) Limited in taming price distortions in the domestic energy market.

He said the domestic fuel market requires disciplined players who must stick to existing regulations on sustainable supply, reliable services and stable prices.

He explained that Mainland Oil values its unwavering reputation in disciplined and responsible operations above temporary jump in margins.

The company said it sells a liter of petrol at the range between N195 in Southwest zone and Abuja; N200 in North Central zone; N205 in South South zone; N210 in North West and South East zones; and N220 in the North East zone.

Fuel supplies to the domestic market are sustained with the assistance of the NNPC Limited which has the statutory mandate for domestic energy security. However, partnership with key market players remains critical to addressing supply imbalances.

Mainland forms part of the team of major marketers that keep prices in the steady price range. The company’s retail outlets normally host long queues of desperate motorists scrambling to buy fuel at government’s subsidized rates.

To cut the time spent by customers at Mainland Oil’s retail stations across the country, Dr Igwe stated that the management of the company has directed all its station managers to stretch service hours across the night to ease the pressure in the market and allow night travellers access to fuel.

Igwe acknowledged the expenditure concerns expressed by most marketers over long hour of services, saying that the cost of fuelling uptime at numerous filling stations at a time of high cost of diesel is huge.

High cost diesel, he explained, is required for powering generators and fuelling distribution trucks that wheel supplies to different locations across the country.

He however explains that the cost of running services for long hours and the sacrifice of maintaining price discipline remains the contribution every marketer should make to ensure that the economy of the country does not suffer energy shock.

Igwe declared that the prevailing fuel situation in the country is desperate and therefore requires atypical responses in terms of measures that might not be cost efficient.

He made it clear that the situation calls on players in the domestic fuel market to make sacrifices in appreciation to the NNPC Limited and in consideration of the Nigerian society.

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Energy

NNPC Ltd, PETAN to collaborate to reduce cost of production

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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.

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Energy

Price of 5kg cooking gas increased by 42.97% in one year — NBS

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The average retail price to refill a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) rose by 42.97 percent, from N4,610.48 in March 2023 to N6,591.62 in March 2024, according to the National Bureau of Statistics (NBS).

Comparatively, the price saw a monthly increase of 7.10 percent from N6,154.50 in February 2024.

A state-level analysis shows that Kano had the highest average price at N7,609.00, followed by Ogun with N7,363.64, and Akwa Ibom at N7,162.50.

In contrast, the lowest price was in Adamawa where the price was N5,312.50, with Taraba and Zamfara following at N5,375.00 and N5,550.00, respectively.

Regionally, the South-South had the highest average price at N7,003.08, followed by the South-West where it sold at N6,723.22, and the North-East which had the lowest at N6,221.30.

Additionally, the average price to refill a 12.5kg cylinder of LPG increased by 5.77% month-on-month from N15,060.38 in February 2024 to N15,929.04 in March 2024, and by 55.22 percent year-on-year from N10,262.56 in March 2023.

State-level data indicate Sokoto as having the highest average price at N17,833.33, followed by Osun at N17,588.46, and Anambra at N17,417.65. The lowest prices were recorded in Katsina (N12,400.00), Kebbi (N13,137.50), and Bauchi (N14,484.25).

By zone, the South-South again recorded the highest average price at N16,859.85, with the South-East close behind at N16,734.87, while the North-East recorded the lowest at N14,943.48.

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NNPC Ltd, First E&P commence 20,000bpd local production at OML 85

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The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset, also known as Madu Field.

Production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.

According to a statement from Olufemi Soneye, Chief Corporate Communications Officer NNPC Ltd, Abuja, the achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of an enabling environment for existing and prospective investors.

Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Mr. Mele Kyari, described the commencement of oil production at the Madu Field as a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

Kyari, who commended stakeholders for their support, also explained that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.

It would be recalled that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd./First E&P JV in 2018.

Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000 bbls.

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