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Nigeria’s oil and gas capital expenditure drops to $6bn from $27bn – NUPRC

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The Nigerian Government revealed that the total annual upstream capital expenditure in Nigeria’s oil and gas industry decreased from 27 billion dollars in 2014 to less than six/ billion dollars in 2022.

This was disclosed by Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Mr Gbenga Komolafe at the World Petroleum Congress (WPC) in Calgary, Canada.

The Oil chief, represented by the Executive Commissioner, Mr. Kelechi Ofoegbu, said this represents a 74 per cent decrease in its capital expenditure (CAPEX), blaming the decline in CAPEX on several factors, and urged that regulatory uncertainty/ significantly impacted investment in Nigeria’s oil and gas industry in a presentation titled “Nigeria and Canada: Collaborating to Decarbonise Nigeria’s Oil and Gas Sector.”

Komolafe revealed that years preceding the enactment of the Petroleum Industry Act (PIA) affected investment in the industry, including the factors are de-funding of fossil fuel development globally.

The statement revealed by the FG stated that he said most International Oil Companies (IOCs) deprioritised Nigeria in their portfolios which led to the redirection of CAPEX to other countries.

This under-investment impacted negatively on the country’s rig count. On average, Nigeria had seventeen (17) active oil rigs in 2019 representing one of the highest counts in the African continent as of then.

“The average rig count declined to eleven in 2020, seven in 2021, 10 in 2022, but recently grew to as high as 31 by August 2023, a positive signal of new investments trickling into the country.

“The relatively high crude oil prices may have also attributed to the increase in activities in the petroleum upstream sector.

“We also see this as a reflection of investors’ acceptance of the PIA and its effective implementation by the regulator.

“The projected outlook over the next few year’s looks promising, and as the regulator in the oil and gas upstream sector.

He added that FG plans to leverage this opportunity by doing all that is necessary to attract more investments and revamp the Nigerian upstream sector.

He added that the Petroleum Industry Act has repositioned the Nigerian petroleum sector by creating efficient and effective governing institutions, with clear and separate roles for the industry, and also for enabling transparency, accountability, and fostering a business environment conducive to petroleum operations.

He said since the PIA was brought into law, the Commission developed 24 priority regulations that would create a predictable regulatory environment for operators and other stakeholders, adding, ‘‘With Nigeria’s huge gas reserves of 208.83 TCF and a potential for an increase to about 220 TCF within the next ten (10) years, Nigeria has adopted natural gas as our transition fuel in our stride at developing cleaner fuels and staying on track with our net zero emission commitment of 2050.

“Unfolding event has equally shown that natural gas is our destination fuel, with a projection that gas will form a significant part of the energy mix for Nigeria by the year 2030 and beyond.

“In recognition of this, the Government has designed the Decade of Gas program to ensure that gas plays a role in lifting us from the challenges that confront us to drive industrial development.”

Energy

NDDC, Shell complete construction of Ogbia-Nembe road

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The Niger Delta Development Commission (NDDC) and the Shell Petroleum Development Company (SPDC) have completed the construction of the 25.7-kilometre Ogbia-Nembe Road in Bayelsa State.

The road project is slated to be commissioned on Saturday, May 25, 2024.

Speaking during a joint inspection of the project by officials of the two organisations, the NDDC Managing Director, Dr Samuel Ogbuku, described the multi-billion-naira project as a legacy and flag-ship of intervention in the Niger Delta region.

Ogbuku said that the “star project,” with seven bridges, 53 culverts and 4 spurs, linking 14 communities, was a good example of what could be achieved through collaboration of development agencies.

He declared, “The Ogbia-Nembe road as a model in partnership, with emphasis on quality job delivery. We have redefined our standards to globally acceptable best practice and we will henceforth compel our contractors to abide by them.”

The NDDC boss said that the NDDC would be banking on multinational corporations such as Shell, Chevron, and others to collaborate with the Commission in executing legacy projects, noting, “The oil giants have what it takes to provide funding, technical assistance, and expertise in environmental management, community development and corporate social responsibility.”

“The SPDC has shown that in addition to its statutory obligation to contribute to the funding of the NDDC, it is also necessary to work with the Commission on specific impactful projects. I am sure that other International Oil Companies, IOCs, will feel challenged to toe the line of Shell to provide quality infrastructure for the people of the Niger Delta.”

Ogbuku said that NDDC was already in discussion with Chevron on forging a partnership for the construction of the Warri-Omadino-Escravos Road, in Warri North Local Government Area of Delta State.

He observed that the project, when completed, would link Warri to Escravos which is the hub of oil and gas activities in Warri, which was very important to the economy of Delta State and Nigeria at large.

The SPDC Corporate Relations Manager, West, Chief Ucheoma Amechi, said that as a company that attaches importance to quality job delivery in the execution of development projects, Shell was satisfied with what has been achieved at the Ogbia-Nembe Road. He gave kudos to the NDDC for doing a good job in the execution of the signature project.

The NDDC Director, Environmental Protection and Control, Engr Onuoha Obeka noted that the road, which cut through swampy terrain, encountered many challenges.

He observed, “We are happy that in spite of the challenges, the project connecting about 14 communities in the Ogbia-Nembe axis of Bayelsa State, has been completed. These communities were hitherto, not accessible by road. This is the first connection between them and the upland and it will boost the socio-economic fortunes of the people.”

Obeka said that the project was an opportunity for the NDDC engineering crew to improve their skills.

He noted, “The challenges we met here were unique, building a road in the mangrove swamp. You will notice that both sides of the road are filled with water. The road was actually built on a sand embankment of 2.5 million cubic metres of sand.”

He explained: “The road traverses the communities of Opume, Emekalakala, Akipelai, Sabatoru, Obiama, Etiama, Igbeta-Ewoama, Agbakabiriyai, Ekese, Iwokiri, Otatubo, Basambiri and Nembe, the project comprises seven bridges and 53 culverts. It also comprises a main alignment of 19.7 kilometres, Opume spur of 1.45 kilometres, Emakalakala spur of 2.685 kilometres, Akipelai spur of 850 metres and Ogbolomabiri spur of 1.05 kilometres.

The Area Manager for SETRACO, Engr. Joseph Cosme, assured the joint inspection team that the Commission had completed all the minor repairs on the road in preparation for the commissioning ceremony.

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NSE awards NCDMB Executive Secretary Fellowship of engineering society

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Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, was a recipient of the Nigerian Society of Engineers (NSE) Fellowship award last week.

Ogbe was inducted into the Fellowship performed by the President/Chair-in-Council of the NSE, Engr. Margaret Aina Oguntala at a ceremony in Abuja.

In her remarks at the occasion, the President of NSE congratulated the 63 new inductees and urged them to uphold the values of their new position in their field of engineering.

She highlighted that engineers have been at the forefront of driving progress and development across various sectors of the economy, notably in the oil and gas industry.

She particularly lauded the Executive Secretary of NCDMB for his excellent leadership and expertise through the strategic development of local content and in-country value retention, which is a testament to his brilliance in the field of engineering.

She also applauded the strategic partnership between the NSE, the NCDMB and other stakeholders in the oil and gas industry. Similarly, the chairman Board of Fellows/College of Fellows, Engr. Kamila Maliki, FNSE, commended the new inductees for their resilience, dedication, and contribution to the field of engineering.

He added that it was not a small feat to be chosen for the investiture due to the rigorous and thorough nature of the selection process.

The Executive Secretary later was joined by the Managing Director of Setraco Nigeria Limited, Engr. Ziad Mouannes and Senator Patrick Ndubueze for the unveiling of the very first edition of the 2024 NSE Quarterly Magazine.

Some senior officials of the Board who accompanied the Executive Secretary to the event included the Director, Monitoring and Evaluation, Mr. Abdulmalik Halilu, Director, Project Certification and Authorization, Engr. Abayomi Bamidele, and the General Manager, Corporate Communications and Zonal Coordination, Mr. Esueme Dan Kikile, Esq.

Before he was appointed the Executive Secretary of NCDMB, Engr. Ogbe had nearly 30 years top-level career in the field of engineering in the employment of Chevron Nigeria Limited (CNL), before retiring voluntarily to set up his private firm.

His last position at Chevron Nigeria was Construction Services Group Superintendent, and he oversaw 200 personnel, including Nigerian nationals and expatriates. Other notable positions he held at the company included Offshore Projects Manager, Construction Manager (Lagos & Escravos -Warri), Construction Engineer (San Ramon) in California, United States of America.

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Oando Foundation to embark on fourth phase of ‘Clean Our World Project’

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…Reaches 47,000+ beneficiaries

Oando Foundation has commenced the fourth phase of its Clean Our World project (COW IV) in Lagos reaching 54 public primary schools in 25 communities.

This milestone marks a significant step forward in the Foundation’s ongoing commitment to environmental education, sustainability, and community development.

Building on the success of the previous phases, COW phase IV focuses on standardised lesson delivery through wide-scale capacity building for teachers, deployment of environmental educational materials, and various in-school climate action activities, laying the foundation for a cleaner, greener future. With active government participation, this cycle of the project ensures uniform, consistent, and high-quality delivery of environmental education in schools across Lagos State.

“Environmental education plays a crucial role in equipping students with the knowledge, skills, and attitudes necessary to address complex environmental challenges. As we confront these challenges, investing in environmental education becomes imperative for building resilient communities and securing a sustainable future for all.

“We are excited to commence the implementation of Clean Our World Phase IV, which will empower teachers, engage students, and foster a culture of environmental stewardship and citizenship,” said Head of Oando Foundation, Mrs. Adekanla Adegoke.

Since its inception, the Clean Our World project has evolved and expanded, reaching more communities and schools. In collaboration with Sumitomo Chemical, a leading Japanese chemical company, Oando Foundation has enlightened various schools and communities in Lagos State about environmental education and sustainable waste management practices such as recycling.

From reaching seven schools in three communities in COW phase 1, twelve schools in five communities during the second phase, and twenty-four schools in ten communities for the third phase, the project has demonstrated its effectiveness in promoting environmental education, sanitation, and recycling.

Through robust government participation and strategic partnerships, Oando Foundation through the COW phase IV has ensured sustainable impact and created a legacy of environmental awareness and action. Lagos State Universal Basis Education Board (LASUBEB) provided technical support and coordination, ensuring the project’s alignment with local educational priorities and policies. GreenHub Africa Foundation also served as a trusted co-implementing partner, contributing to the successful implementation of COW IV.

In furtherance of its commitment to promoting environmental education and sustainable action for pupils in target schools and their host communities, Oando Foundation is expanding the reach of Clean Our World project to other communities in Nigeria such as Plateau state.

This expansion will impact over 6,000 direct beneficiaries in 20 public primary schools through targeted activities such as establishment of green clubs, training of teachers and education managers, deployment of the environmental education syllabus as well as engaging students in gardening, upcycling and recycling activities.

The Foundation continues to lead advocacy efforts and policy level engagements with key stakeholders for standardisation and inclusion of environmental education lessons in public primary schools across the country.

Oando Foundation is an independent charity established in 2011 to support the Nigerian government in achieving its Universal Basic Education goal. Through the Adopt-A-School Initiative, the Foundation has garnered over a decade long experience and accomplishments, supporting basic education access and quality across 88 adopted schools in Nigeria through an integrated whole-school improvement approach.

The Foundation’s new strategy – LEARNOVATE prioritises innovation and investments in foundational learning quality across target schools, especially around foundational literacy, and numeracy skills mastery (Learning), green skills development (Planet), and sector thought leadership (advocacy).

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