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FG Tasks Oil Experts on Solutions to Local Industry Challenges

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The Federal Government has tasked oil and gas experts to proffer permanent solutions to challenges ranging from low productivity, oil theft, pipeline vandalism and gas flaring in the local oil industry.

Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), made the call on Monday in Abuja, at the opening of the third Biennial International Conference on Hydrocarbon Science and Technology (ICHST 2023).

The conference, organised by the Petroleum Training Institute (PTI) and hosted by the Petroleum Technology Development Fund (PTDF), aimed at resuscitating the observable decline in the nation’s oil production and embracing innovative research as practiced by the developed nations.

Lokpobiri said Nigeria had played major roles in the global oil industry and Africa in particular, hence the need to sustain its position.

“Nigeria has been a big player in the oil and gas industry both in Africa and globally. For us to sustain our place globally, we need to tackle challenges and key into what is trending globally.

“My expectations at the end of this conference is for us to come up with home grown solutions to address our problems in the petroleum industry.

“Nigeria have so many problems in the industry, I believe that the conference would come up with solutions to address those challenges and also produce document that will be implementable, ” he said.

Also speaking, Dr Henry Adimula  Principal/Chief Executive, PTI, said the conference underscored the need to shape the destiny of Nigeria’s oil/gas industry.

Adimula added that the essence of the conference was to explore, dissect, and contribute to a future teeming with possibilities.

He acknowledged the pioneering research conducted by the PTI which had substantially influenced the discussions.

“PTI’s development of economic models for gas investment, spanning the upstream, midstream, and downstream sectors, and creation of Modified Unit Technical Cost Model for oil and gas investment, ensures precise determination of the cost to produce a standard cubic foot of gas.

“These achievements underscore PTI’s dedication to innovative and environmentally responsible hydrocarbon resource utilisation,” he said.

Adimula said its collaborative research with the Nigerian National Petroleum Corporation Research and Development Division had resulted in steps towards efficient storage system for Compressed Natural Gas (CNG) in powered tricycles.

According to him, this pioneering initiative marks a substantial stride towards sustainable energy solutions and cleaner transportation methods.

He said its strides in research and innovation also yielded results especially in securing a patent for the ‘Method of Improving the Rheological Properties of Potassium-Based Bentonite Clay’ under Nigerian Patent No NG/P/2020/200 as duly registered with the Nigerian Patents and Designs Registry.

These innovations, he said, reflected its steadfast dedication to

sustainable and eco-friendly practices, serving as a testament to our unwavering

commitment to pioneering research and development.

Mr Ahmed Aminu,  the Executive Secretary PTDF, represented by Mrs Ifeoma Nwokike, General Manager Projects, in his address said the oil/gas sector, especially in Nigeria, was at an intersection of complex challenges and unprecedented opportunities.

According to Aminu, the industry grapples with a myriad of issues, from technological hurdles, research limitations, and the dwindling landscape of investments and finance.

The situation, he said underscored  the importance of bolstering research funding and technological development to boost the sector.

“The imminent commencement of the Dangote Oil Refinery, the completion of pivotal pipeline infrastructure like the AKK, and the production initiatives at Komani oil field in Northern Nigeria, present a hopeful panorama of opportunities that can reinvigorate the industry,” he said.

In his keynote address, Dr Omar Ibrahim, the Secretary-General, African Petroleum Producers’ Organisation (APPO), identified the biggest victims of a speedy energy transition as the developing countries, especially those from Africa.

Ibrahim said the organisation had played major role in the sector by identifying three imminent challenges namely technology, expertise and markets.

“To create this future, the APPO Ministerial Council approved the recommendations of the APPO Long Term Strategy Committee to take three practical steps to address the imminent challenges,” he said.

The theme of the conference is:  ‘The Future of the Oil and Gas Industry: Opportunities, Challenges and Development’. (NAN)

Energy and Power

Oil, Electricity Workers’ Unions Mobilise for Planned Strike

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The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to comply with the directive of the two labour centres to begin an indefinite nationwide strike on Monday.

Its General Secretary, Mr Afolabi Olawale, in a statement on Saturday, said the union was committed to ensuring total compliance with the directive.

Recall that the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) declared an indefinite nationwide strike to begin on Monday, to express their grievances over the proposed new minimum wage.

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In a joint statement signed by NLC President, Mr Joe Ajaero and TUC President, Mr Festus Osifo, the centres declared the strike over the tripartite committee’s inability to agree on a new minimum wage and the hike in electricity tariff.

Afolabi said the union was concerned and disturbed with the insensitive attitude of the federal government “to the very critical issue of negotiating a new minimum wage for Nigerian workers”.

“This is in view of the various socio- economic policies of this administration that have impoverished the working people of this country.

“Leaders of our great union at all levels, from the units, zones and branches, should immediately put all processes in place to ensure total compliance with this directive.”

Also, the National Union of Electricity Employees (NUEE) said it was mobilising its members to embark on the strike following the directive of NLC and TUC.

The Acting. General Secretary, Mr Dominic Igwebike, gave the directive to the members in a statement.

Igwebike said that along with the reasons of inconclusive negotiations on the minimum wage and electricity tariff hike, apartheid categorisation of Nigeria electricity consumers into bands was another, to embark on the strike.

“Given the above, all national, state, and chapter executives are requested to start the mobilisation of our members in total compliance with this directive to ensure the government does the right thing as stated above.

“The withdrawal of services becomes effective on Sunday 2nd June by 12.00 midnight, “ the union leader said. (NAN)

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Oil Theft: Navy Impound Three barges, Arrest Seven Suspects in Bayelsa

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The Nigerian Navy has impounded three barges laden with suspected stolen crude oil and refined Automotive Gas Oil (AGO) ,arresting seven, at Tunu Community Creek, in Ekeremor Local Government Area of Bayelsa.

The Commander, Nigerian Navy Ship (NNS) SOROH, Commodore Nanmar Lakan told the News Agency of Nigeria (NAN) on Saturday that his command received an intelligence report on the illegal activities going on in the area and swung into action.

NAN reports that the seven suspects who were found on board the barges who claimed to be security working under Tunu leadership are kept under custody pending when the investigation is concluded.

According to Lakan, Shell Petroleum Development Company (SPDC) has complained of the loss of 25 percent of their daily production in the area to oil thieves.

He said he swung into action by sending his men on both air and water surveillance in the area and their efforts paid off as the barges were impounded by his officers and men.

According to the Commander, two of the barges have the capacities of containing 637,000 litres of the products each while the third can contain 700,000 litres of the products.

Lakan added that investigation is ongoing to ascertain the owners of the barges and where the products were meant to be discharged.

He warned those who indulge in such illegal activities of oil theft to desist from such illegitimate business, as the Nigerian Navy will not allow them to find peace. (NAN)

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Business News

Tinubu Inaugurates Critical Gas Projects, Reassures Energy Sector Investors

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By Matthew Dadiya, Abuja

President Bola Tinubu has reassured investors in the energy sector of his administration’s resolve to further enhance the business environment and ensure investment convenience.

The President spoke Wednesday at the inauguration of three milestone projects, including the expanded AHL Gas Processing Plant; the ANOH Gas Processing Plant, and the 23.

3km ANOH – Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline.

In a speech during the virtual inauguration of the projects at the State House, Tinubu also assured citizens that his administration is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas-fueled prosperity in the country.

 

The President, according to a statement by Special Adviser on Media and Publicity, Ajuri Ngelale, noted that the projects were fully in line with the Decade of Gas Initiative and his administration’s vision to grow value from the nation’s abundant gas assets, while concurrently eliminating gas flaring and accelerating industrialization. 

“This event is highly significant to our country as it demonstrates the administration’s concerted efforts to accelerate the development of critical gas infrastructure geared at significantly enhancing the supply of energy to boost industrial growth and create employment opportunities.

“It is pleasing that when these projects become fully operational, approximately 500MMscf of gas in aggregate will be supplied to the domestic market from these two gas processing plants, which represents over 25% incremental growth in gas supply. 

“In practical terms, this is more gas to the power sector, gas-based industries, and other critical segments of the economy. I, therefore, commend the strategic vision of the NNPC Limited and its partners, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc, for this laudable and value-adding projects,” President Tinubu said.

The President said his government remains determined in its bid to leverage the nation’s vast gas capacity to drive economic growth. 

“Aside from the presidential CNG initiative which is aimed at moving the good people of Nigeria away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Directives.

“The theme of this inauguration – ‘From Gas to Prosperity; Renewed Hope’, must be adopted by all gas-sector participants and would-be investors as a clarion call to ramp up efforts to accelerate investment and developments of projects in the gas sector on a win-win basis.

“I would once again commend the efforts of NNPC Ltd, alongside SEEPCO and Seplat Energy, on this business partnership initiative, and congratulate you all on the successful implementation of the three projects,” the President said.

President Tinubu also reiterated his government’s resolve to continue to provide support in deepening domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.

“Today, I have the singular honour to inaugurate the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3Km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects in line with my administration’s resolve to provide energy for Nigerians, and to use our vast natural gas resources to transform Nigeria,” the President stated.

May 15, 2024

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