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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.

Energy

Shell signs agreement to build gas pipelines in Oyo State

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Shell Nigeria Gas, SNG, and the Oyo State Government have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

A statement released on Friday by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, disclosed that SNG will build and operate the gas distribution network, which will serve customers across Oyo State for 20 years.

According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.

Speaking at the signing ceremony, the Oyo State Governor Seyi Makinde, described the project as a catalyst for development in the state.

The Managing Director of SNG, Ralph Gbobo, noted that the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”.

He explained that the project would boost Oyo State’s internal revenue and create Job opportunities for indigenes.“

“The Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman, Shell Companies in Nigeria, Osagie Okunbor, remarked that the event pointed to the value of partnership as “Shell continues to power progress” in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

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Nigeria ripe for nuclear power to boost electricity generation – NAEC 

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The Nigeria Atomic Energy Commission (NAEC) in collaboration with Centre for Energy Research and Training (CERT), Ahmadu Bello University (ABU), Zaria would deploy nuclear science and technology to strengthen electric power generation in Nigeria.

Prof. Yusuf-Aminu Ahmed, Chairman NAEC disclosed this during the 20th Anniversary Symposium of the Nigeria’s first Nuclear Research Reactor-1 (NNR-1) in Zaria on Thursday.

Ahmed said the experience developed over the years on nuclear power at the centre makes Nigeria ripe and ready to go into the next level of power generation through the nuclear reactor.

“We have used the reactor for research and development over the years and now we are going to use the reactor for the purpose of generating electricity.

“President Bola Tinubu has already given the commission a mandate to see how it contributes in the clean energy sphere of Nigeria and the nuclear energy programme of Nigeria would participate,’’ Ahmed said.

He explained that the time for the project would not be open for the public; however, Ahmed added that international partners and vendors were working closely with the commission over the project.

He also said that intergovernmental agreements were signed with some of the vendors on the nuclear power in Nigeria and very soon President Tinubu would make an announcement on the issue.

Earlier, Sen. George Akume, Secretary to the Government of the Federation said the 20 years of safe operation of the nuclear research reactor was an indication that Nigeria has joined the campaign for safe application of nuclear energy.

Akume, represented by his Special Assistant on Technical Issues, Prof. Bolaji Babatunde, added that since the centre had safely operated the nuclear research reactor for 20 years, it can also obtain a nuclear reactor for electricity generation.

According to him, the process of having a reactor that would generate electricity is similar to operating a nuclear research reactor.

“President Tinubu has re-echoed the need for having nuclear energy into the sources of electric power generation in Nigeria and Nigerians should look forward to this power.

“Electricity generated through nuclear energy is clean and safe except for human errors or natural causes such as the one that happened in Hiroshima,’’ he said.

Earlier, Prof. Sunday Jonah, Director of the center said the event was to celebrate 20 years of safe operation, maintenance and utilisation of the first Nuclear Research Reactor code named NNR-1.

However, in spite of the numerous gains at the centre over the years, the Director lamented over a plot by NAEC to wrestle the centre from the university through the proposed NAEC Bill 2022.

He explained that such a move would negate the dreams of the founding fathers that established the centre in universities because of the culture of research and development being promoted at designated universities.

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Alake unveils gender strategy for mining, steel sector

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The Minister of Solid Minerals Development, Dr Dele Alake, has unveiled a document for Women in Mining in Nigeria (WIMIN) strategy document.

Speaking at the event, he described the strategy as a significant mile stone in the sector.

He said that the move was a demonstration of the commitment of the Ministry of Solid Minerals Development (MSMD)‘ and Ministry of Steel Development in fostering diversity.

He said that the strategy is aimed at promoting gender equality and women‘s empowerment, adding that its focused on driving productivity for the nations‘ sustainable development.

“It also focuses on improving the opportunities for women to benefit from both sectors sustainably in policy, regulatory, operational, and commercial (large scale, medium scale, small scale, and artisanal levels), and value and supply chain roles.

“This strategy is not just a document but a call to action and a blueprint for all stakeholders to create a more inclusive and gender-balanced mining and steel sector.

“It provides a guideline and framework to guide both ministries, their agencies, and stakeholders to integrate gender equality and women’s empowerment priorities in their policies, programmes, and initiatives,” he said.

He acknowledged the indispensable contributions of women to the success and sustainability of the mining sector, saying that their talents, expertise, and perspectives are critical to the success and growth of the industry.

According to him, Nigeria is not immune from the biases perpetuated against women in these two sectors.

In addressing the situation, he said that the Federal Government has prioritised gender equity and female participation in its “Roadmap for the Growth and Development of the Nigerian Mining Industry.”

He said as part of the efforts of MSMD and Ministry of Steel Development to implement the roadmap, the Mineral Sector Support for Economic Diversification (MinDiver) engaged a consultancy to develop the gender strategy.

He said that to achieve the objectives of the strategy, its institutional capacity would be strengthened for effective gender mainstreaming.

He added that that women’s participation in leadership and governance roles within the mining sector and communities would be increased.

“Promoting women’s economic empowerment and rights and eliminating all barriers (structural and systemic) that hinder women’s meaningful participation, access and control over mining resources and benefits,” he said.

The Minister added that they were committed to building partnerships across a wide range of stakeholders in achieving the vision of the strategy.

He said that the WIMIN strategy was firmly rooted in the principles of equality, diversity, and empowerment, and  a call to action for stakeholders mobilisation toward a more inclusive and gender-balanced industry.

Earlier in her remarks, the National President of WIMIN, Dr Janet Adeyemi, described the launch of the strategy as an opportunity to galvanise support and implement actions to address the entrenched gender disparities within the mining and steel sectors.

Represented by the National Secretary, Mrs Emily Ofodile, she said that women within these industries continue to encounter multifaceted barriers that hinder their full participation and advancement.

On her part, the Permanent Secretary of MSMD, Dr Mary Ogbe, urged, women to be change agents at all levels, and urged all organisations to have gender focal persons to help in coordinating all related matters.

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