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NNPCL rejects call for legalisation of Artisanal refineries

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The Nigerian National Petroleum Company (NNPC) Limited has rejected suggestions from stakeholders to legalise artisanal refining of crude oil in the Niger Delta.

Artisanal oil refining is small-scale crude oil processing or subsistent distillation of petroleum that is often outside the boundaries of state law.

There had been calls by stakeholders in the oil industry for the government to legalize artisanal refineries in the Niger Delta, just the same way the government legalised artisanal gold mining in the North, under the PAGMI scheme.

Speaking during an interview aired on Nigerian Television Authority (NTA) on Monday, the Group Chief Executive Officer (GCEO), NNPCL, Mele Kyari, said modular refineries should be encouraged instead of illegal refining,

The NNPC boss said Nigeria loses 700,000 bpd to crude oil theft and production shut-ins.

“That’s why there are licences given out for modular refineries, and they can produce up to 1,000 barrels to 20,000 barrels per day (bpd). Refining is a science of its own. The cooking pots you are seeing are not refineries in any sense.

“There’s simply no way you can convert these cooking pots to legal refineries. It’s not possible. But modular refineries can be constructed and the NNPCL has a framework for supporting those who want to do modular refineries.

“It works two ways — one is the direct stealing of the oil and then being processed at the illegal refineries and also taken out from the pipelines.

“What happens is that whenever you have such massive infractions, we shut down our facilities, and therefore, this is opportunity loss.

“The production that could have come on the table and that is why we are currently on the average of 1.4 million barrels of oil.

“We had the capacity to do 2.1 million. You can technically say that you have lost about 700,000 barrels of oil per day of production. But it doesn’t mean 700,000 bpd are stolen.

“What in reality happens is that when those stealing take place, we probably lose up to 200,000 bpd of direct losses to thieves.

“And beyond this, once you have this infraction getting to a level we cannot manage, in some instances, some of the pipeline losses get up to 80 percent to 90 percent loss at one point,” he said.

He added that the country would have no option than to shut down the facilities.

Energy

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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Energy

Tree4Life Project: NEPL/Seplat JV, Edo sign reforestation agreement

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The NNPC Exploration and Production Ltd/Seplat Energy Joint Venture and the Edo State Government have signed an agreement that will see the state government allocate 6,000 hectares of land from its protected forest reserves to enable a large-scale tree planting initiative by Seplat Energy Plc.

This is in furtherance to the Seplat Tree4Life Initiative and the Edo State Government’s identification of the need to increase forest cover and carbon sequestration efforts within the region.

Seplat Energy has been selected as the partner to implement this reforestation project, which aims to plant millions of indigenous trees on the allocated land over the next five (5) years. This project represents a significant investment in environmental conservation and sustainable development for the state.

Speaking at the agreement signing ceremony, which happened in Edo State Government House, the Managing Director, Seplat West Limited, Seplat Energy, Ayodele Olatunde, said the partnership will contribute in the global efforts around mitigating the effects of climate change, whilst providing economic, social, health and other environmental benefits to the region.

“This will stir more advocacy as far as climate change is concerned and put the Edo State Government with the Seplat JV on the map as change agents. The partnership is well aligned with our Tree4Life Initiative and has the capacity to boost our economy and the environment; advance our soil health and drive carbon capture; preserve our ecosystem; enhance biodiversity; create jobs; conserve our forests; and promote physical and mental wellbeing of our people,” Olatunde said.

The Commissioner for Environment & Sustainability, Edo State, Joshua Omokhodion, said the synergy between Edo State and the Seplat JV is a huge attempt at mitigating the impacts of climate change in Nigeria.

“Beyond the economics of this move, the science of it is very important to us because it is an attempt to deliberately create an ambience that will be conducive for humans and other creatures here.”

The Director, External Affairs & Social Performance, Seplat Energy, Chioma Afe, in her address, thanked the Edo State Government for partnering with the NEPL/Seplat JV on this sustainable journey of reforestation.

She said, “This will drive forward our shared goals of environmental conservation and sustainable land use.”

“These 6,000 hectares of land being allocated today, we believe, will provide a major boost to efforts at increasing tree cover and also to sequester carbon in our region. We believe also that this will not only tackle climate change, but will promote the local economy as well as local wildlife. The agreement demonstrates the NEPL/Seplat JV strong commitment to supporting impactful environmental projects,” Afe explained.

The Managing Director, NEPL, Nicolas Foucart, represented by Mr. Uzoma Ezulu, DM Operations Management Seplat, NEPL, said the partnership between the state government and NEPL/Seplat JV is a laudable response to the global warming crisis.

“The world is turning around for the worst; human activities in the name of development have done more harm than good to the environment. The Tree4Life project, therefore, is a conservative effort for all of us,” he said. Teasoo Consulting Limited was also among the facilitators of the agreement signing ceremony,” Nicolas said.

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Energy

Fuel queues will end soon — Reps assure Nigerians

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The House of Representatives, has reassured that the long queues at filling stations in the country, will soon fizzle out soon.

Chairman, Petroleum Downstream, Rep. Ikenga Ugochinyere, said this at a joint news conference in Abuja on Wednesday.

“We hereby express our concerns over the temporary presence of fuel queues in petrol stations across the country.

“However, we are convinced that this is temporary based on our investigation, and in a couple of days, we shall get over it,” he said.

Flanked by Rep. Henry Okojie, the Chairman, Petroleum Midstream, Ugochinyere said that investigations had revealed that the scarcity was artificial.

“We have discovered that there is availability of petrol products. We have it on good authority that we have in our storage facilities at least, about 1.5 billion liters of petrol,” he said.

He said that 1.5 billion litres can last for 30 days.

“We have gotten assurances from the regulators in the distribution value chain that these bottlenecks have been cleared. In the course of this public holiday, more grounds will be covered.

“From our findings, the issues that necessitated the disruptions that led to the appearance of fuel queues in petrol stations have been cleared.

“They said that it would take a few more days for things to return to normalcy, while calling on Nigerians not to panic over this development.

“We have gotten assurances from the regulators and the unions that these challenges will be cleared in a few days,” he said.

Ugochinyere added, “It will require more time, like two to three days, for products to be distributed to all stations nationwide.

“As a committee that is charged with downstream and midstream oversight, we have been monitoring this development.”

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