Oil & Gas
FG Tasks Oil Experts on Solutions to Local Industry Challenges
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)
Business News
Tinubu Inaugurates Critical Gas Projects, Reassures Energy Sector Investors
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
Oil & Gas
Why we are Recording Increased Oil Production – Edun
The Federal Government says improved security in the Niger-Delta is responsible for the increased crude oil production to 1.65 million barrels per day as against the 1.25 million bpd previously recorded.
Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated this in Abuja at a Podcast hosted by Bruit Costaud in collaboration with Ballard Partners of U.
S.A.Reports says the immediate past Minister of Information and Culture, Alhaji Lai Mohammed is the Managing Partner of Bruit Costard, a lobbyist and public relations firm and an affiliate of Ballard Partners.
According to Edun, the quickest way to get revenue for critical infrastructure is to shore up oil revenue.
“This is quickest way of giving the government the needed revenue to address our urgent needs.
“The government doesn’t have enough revenue for critical infrastructure and social services which are crucial to Nigerians now.
“The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day.
“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary,’’ Edun said.
Edun added that non-oil revenue as well as revenues from taxation were also critical to government.
“If you know about Mr President’s antecedent, the first thing he did in Lagos as governor was to get hold of the revenue.
“What he did was to deploy digitisation. He used the latest technology to block the leakages and to improve the efficiency of monitoring and collection.
This is exactly the same thing we are doing at the federal level now.
“The revenue of the Federal government has been totally revamped.
“There has been application of technology to ensure what is due to the federal government, particularly from its various revenue-earning arms, agencies, companies, and enterprises is not taken,’’ he said.
The minister said that plans were ongoing to give incentives to small, medium and larger businesses. (NAN)
Oil & Gas
Dangote Petroleum Refinery Begins Production of Diesel, Aviation Fuel – Official
Dangote Petroleum Refinery has commenced production of diesel and aviation fuel.
Mr Anthony Chiejina, Group Head, Corporate Communications, Dangote Group, confirmed this in a statement to newsmen in Lagos.
Chiejina quoted the President of Dangote Group, Alhaji Aliko Dangote, to have elatedly thanked President Bola Ahmed Tinubu for his support, encouragement and thoughtful advice towards the actualisation of this project.
Dangote also thanked the Nigerian National Petroleum Company Ltd.
, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerians for their support and belief in the historic project.According to him, “We thank President Tinubu for his support and for making our dream come true.
“This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to details.
“His intervention at various stages cleared all impediments, thereby accelerating the actualisation of the project.
“We also thank the NNPCL, NUPRC and NMDPRA for their support.
“These organisations have been our dependable partners in this historic journey.
“We also thank Nigerians for their belief and support in this project,” he said.
Dangote said: “We have started the production of diesel and aviation fuel, and the products will be in the market before the end of the month.
“This is a big day for Nigeria. We are delighted to have reached this significant milestone.
“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
“This is a game changer for our country, and I am very fulfilled with the actualisation of this project.
“The refinery has so far received six million barrels of crude oil at its two SPMs located 25 kilometres from the shore.
“The first crude delivery was done on Dec. 12, 2023, and the 6th cargo was delivered on Jan. 8, 2024,” he added.
He said that the refinery can load 2,900 trucks a day at its truck-loading gantries.
He added that the products from the refinery will conform to Euro V specifications.
Dangote boss said that the refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms. State-of-the-art technology.
“I must extend our sincere appreciation to our Bankers and financiers, both local and offshore, who demonstrated a great deal of patience, in seeing us through many difficult times.
“In the same vein, we thank the Government of Lagos State, under the leadership of Babajide Sanwo-Olu, who has been incredibly proactive in ensuring that the many challenges we encountered in the course of executing this project were quickly resolved.
“I thank him immensely.
“I also sincerely thank our host communities and their traditional leaders for their sustained patience, forbearance, and admirable willingness to work with us to find amicable and win-win resolutions to the many issues we have had to deal with as the construction of this huge facility progressed.
“Our staff have also contributed so immensely to the success of this project. I thank them profusely,” Dangote added.(NAN)