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Opec’s restriction still Nigeria’s greatest obstacle towards achieving 2.2 million barrels in 2023—NNPC boss

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Nigeria could attain 2.2 million barrels crude oil production level in 2023, but for the Organisation of Petroleum Exporting Countries (OPEC) oil production quota restriction, the group chief executive officer of the Nigerian National Petroleum Company, Mele Kyari, has said.

Mele Kyari who spoke at the virtual Global UAE Energy Forum said despite all odds, the country aims to produce 1.8 million bpd this year.

He said that Nigeria struggled to achieve its OPEC quota in 2022, stressing that the country had a “different challenge” from the rest of the world, as security issues undermined production.

“For us, we see a trajectory of restoring production, including condensates within the year definitely. And we believe that we can hit our target of 2.2 million barrels per day, although now our OPEC target is 1.8 million barrels per day. We know that it’s practical to do 2.2 million barrels per day.

“We took definite steps to increase production and this is paying off. Around July, our net crude oil excluding condensate came down to around 1 million bpd. That has been restored,” Kyari said.

According to him, the government has also taken very practical steps around pipeline security. In August 2022, a high-ranking federal government delegation struck a deal with a former militant-turned security contractor, Government Ekpemupolo, also known as Tompolo, to crack down on oil theft.

“It’s practical to hit 2.2 million bpd in 2023, this is practical. It’s a moving target,” Kyari said, adding, “There are a number of projects that I have clear line of sight that can come on board in 2023.”

Also speaking on the controversial petrol subsidy regime in the country, Kyari explained that the NNPC’s relationship with the government as of today is strictly on a commercial basis.

“NNPC has become a completely private company today. Yes, owned by the government, but it’s operating like every other company today, like Shell, Chevron and any other company you can think of in our country.

“And therefore, our relationship with government today in terms of supply of fuel is on a commercial basis. There’s a service-level agreement between us and the government to supply fuel and sell it at a price that the policy decision has asked us to do.

“So, it’s not a problem for us at all as a corporate entity. It’s a value for us and we are delivering products to the country. We have the sufficient cash flow to support this and there’s a relationship between us and the government. We don’t see any challenge delivering any product into our country,” the GCEO reassured.

Kyari reiterated that work was underway to return the country’s four existing refineries to a point where they can help meet local demand, while the new Dangote Refinery is due to start up mid-year.

He stated that when these facilities come on stream, Nigeria’s national capacity would be around 1.1 million bpd.

“When we do this, we will exceed our national demand, so there will be a reversal of flow, with Nigeria becoming an exporter of products,” the NNPC boss predicted.

In December, a Bloomberg survey pegged Nigeria’s daily oil production 1.35 million bpd, while the industry regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) data revealed a 1.235 million bpd volume, excluding condensates.

But when condensates outside OPEC’s calculation are added, the figure released by the NUPRC in its latest crude oil and condensate production data for December 2022, rocketed to 1.413 million bpd.

Insecurity and lack of investment have been the bane of Nigeria’s oil production. But the government now getting serious with tackling insecurity, the obvious result was the increase the December production

Although still significantly lower than the roughly 1.8 million bpd OPEC allocation to Nigeria, it showed that crude oil production increased from 1.18 million bpd in November.

The output will be the highest production level since March 2022 when the country’s production averaged 1.237 million bpd.

Nigeria has been unable to meet its OPEC production quota for over a year, thereby hobbling the country’s main source of foreign exchange and putting immense pressure on the local currency, the naira, against the American dollar.

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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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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