NEWS
FG to Divest 26 Oil Blocks of 8.211m Barrels Reserves
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says
the International Oil Companies (IOCs) have proposed 26 oil blocks to be divested to indigenous companies with 8.211 million barrels of oil reserves..
The NUPRC said it had also engaged two leading global oil and gas decommissioning consultants to carry out due diligence on the proposed 26 oil blocks to be divested.
The Commission’s Chief Executive, NUPRC, Mr Gbenga Komolafe said this at the Industry Dialogue on IOCs Divestment of Oil and Gas Assets in Abuja on Friday.
Reports says that NUPRC organised the workshop to guide and consider due diligence and interrogation on compliance with the laws and processes that governed the proposed divestment of oil and gas assets.
Seplat is acquiring Mobil Oil Producing Nigeria Unlimited (MPNU), Oando is acquiring Nigeria Agip Oil Company (NAOC), Chappal Energies is acquiring Equinor, while Renaissance is acquiring Shell Petroleum Development Company (SPDC).
In his remarks, he said the blocks had an estimated total reserve of 8.211million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas.
This, he said was a significant contribution to the nation’s hydrocarbon resources.
“Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of Non-Associated Gas.
“It is worth noting that a substantial part of the P3 reserves is located in or near producing assets. This means that a competent successor can easily mature them to 2P reserves.
“Additionally, the current average production from these blocks is 346,290 barrels per day (bpod) (NAOC-28,018 bopd, MPNU-159,378 bopd, EQUINOR-36,155 bopd and SPDC-122,739 bopd).
“But the technical production potential is much higher – standing at 643,054 barrels (NAOC-147,481 bopd, MPNU-244,268 bopd, EQUINOR-39,203 and SPDC-212,102 bopd).
“These blocks have the potential to significantly boost our national production, which will benefit all stakeholders,” he said.
He listed the names of the leading global oil and gas decommissioning consultants
to include S&P Global Commodity Insights (SPGCI), and Boston Consulting Group (BCG).
Komolafe said that the consultants would also work with the Commission as independent consultants in defining all end-of-field life and abandonment legacy liabilities in compliance with divestment guidelines.
“They will also manage the operational risk across the entire asset portfolio, create a workflow for estimating total onshore decommissioning CAPEX liabilities.
“They will determine the host community’s obligations based on three per cent OPEX stipulated in the Petroleum Industry Act (PIA), benchmark best practices on asset sales, and provide case study reports that draw lessons based on best practices, ” he said.
He sald that the Commission’s regulatory goal was to ensure that parties in the divestment process conform to the approved divestment guidelines.
Speaking on an overview of the divestments, Mr Enorense Amadasu, the Executive Commissioner, Development & Production, NUPRC, listed the divestments framework, two options for divestments and objectives.
The Commission’s Secretary and Legal Adviser, Mrs Olayemi Anyanechi described Option A as a grant of ministerial consent to the divestments on the condition that entities would retain liabilities.
According to her, this is until the commission’s investigation is concluded and liabilities are allocated to the proper party.
“The divesting companies will be required to issue an undertaking to retain the liabilities until confirmation of the release by the commission of all or part of the retained liabilities.
In Option B,, she said ministerial consent would not be granted until the commission had identified or assigned all liabilities to the capable parties.
“The divesting entities will be required to issue a waiver, waiving their rights to deemed consent as provider in section 95 (7) (B) of the PIA,” she said.
The Chairman, Oil Producers Trade Section (OPTS), Osagie Okunbor and the Independent Petroleum Producers Group (IPPG), Chairman, Abdulrazaq Isa lauded NUPRC for being transparent and clear options proposed in the divestments process.
Representatives of other parties, including the Equinor, Seplat, Agip among others also lauded the commission on its efforts and clarity and promised to bring feedback to the commission. (NAN)
The Emir of Daura, Alhaji Faruk Umar- Faruk, says National Youths Service Corps (NYSC) members do not suffer anything in his domain, as they lack nothing.
The emir made the statement when he received the NYSC Coordinator in the state, Alhaji Ibrahim Sa’idu, on a courtesy visit on Thursday in Daura.
According to the emir, NYSC is the only programme left for all Nigerians that ensure unity, from government to communities and individuals.
Umar-Faruk called on all Nigerians to see the NYSC members as, ”Children of necessity, orphans who has no family, Children that also need assistance, protection, guidance and comfort.
“NYSC members should not be seen as vulnerable for exploitation and molestation, they should be provided with shelter, food and everything that will make them comfortable in any place they found themselves
“Corps members don’t suffer anything in my domain, they lack nothing, because I always do my best to ensure they are well accommodated.
”He advised other communities in the country to do the same for the development and sustenance of the scheme, stressing that NYSC has done so much for the unity and integration of Nigeria after the civil war.
Earlier, Sa’idu told the emir that he was in his palace being one of the critical stakeholders to report that he has resumed office as the new NYSC coordinator in the state, and also to request for his blessings.
The coordinator assured the emir that the scheme would continue to collaborate with the Emirate Council towards the development of the country and the nation’s unity.
The highlight of the visit was the presentation of the NYSC Katsina State End of Service Year Publication to the Emir. (NAN)
The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) says some delays in Host Community Development Trust (HCDT) Fund creation and implementation are caused by community members and litigations.
The HOSTCOM said pending issues by host communities in choosing members and chairman of the Board of Trustees (BoT) delayed the implementation of the HCDT funds.
Dr Benjamin Tamaranebi, National President, HOSTCOM, disclosed this to newsmen on Thursday in Abuja while making clarifications on recent claims on the Host Community Project Funding in Akwa Ibom.
Report says that HCDTs are responsible for managing and distributing oil company funds to the host communities, ensuring that resources are used effectively for community development projects.
Host communities in Akwa Ibom had expressed frustration over the delayed release of funds by oil companies to HCDT which it said hindered the implementation of projects outlined in their respective development plans.
Community representatives from HCDTs in Ibeno, Eket, Mbo, Esit Eket, Uruan and Ikot Abasi LGAs claimed that the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) failed to enforce statutory sanctions on oil companies that delay funds.
Tamaranebi, who condemned the recent publication regarding alleged delays in funding development projects in host communities in the state, urged the public to disregard it as it was unfounded.
“We must state clearly that some of the delays of HCDTs creation are caused by community members and litigations over who wants to be a member and chairman of the Board of Trustees which has nothing to do with NUPRC.
“So, we advise communities to conduct themselves properly for the benefit of the HCDT funds,” he said.
He recalled that the NUPRC initiated the HCDTs Forum to meet with community representatives through its HCDT trustees to address broader issues and grievances ensuring continuous dialogue between host communities and the operators.
The national president said the forum had promoted transparency and accountability ensuring that community voices were heard at a higher level.
Tamaranebi said there was registration of reputable 34 asset/fund manager to invest 20 per cent of the three per cent Operating Expenses or Expenditure (OPEX) on behalf of the trusts.
“Some of the trusts are already benefiting from the dividend of this investments.
“These achievements underscore the commitment of the NUPRC and Settlors to the sustainable development of host communities.
“We encourage all stakeholders, including community members and operators, to maintain open lines of communication with the HOSTCOM or NUPRC,” he said.
On concerns regarding funding or implementation of projects, he urged parties to engage with HOSTCOM directly for resolution rather than resorting to public statements that may misinform or escalate tensions.
He added that HOSTCOM was actively monitoring the situation in Akwa Ibom and other states to continue to advocate for the rights and developmental needs of local communities.(NAN)
The Nigerian Army has stressed the importance of responsible social media usage in contributing to national security and development.
Maj. Gen. Sanusi Dahiru, Deputy Director-General of the Nigerian Army Heritage and Future Centre, made this remark at the 37th Nigerian Army Social Media Seminar in Calabar on Thursday.
Dahiru, who was the Special Guest of Honour said the seminar, noted that social media could shape the security environment but could also be misused to spread harmful content.
He encouraged Nigerians to support the army and promote community engagement.
On his part, Maj. Gen. Nosakhare Ugbo, Chief of Civil Military Affairs, emphasised responsible online behaviour to enhance national security.
He warned against spreading unverified information and urged Nigerians to be mindful of those sowing discord.
Dr Erasmus Ekpang, Cross River’s Commissioner for Information, acknowledged social media’s impact on society but also highlighted its negative tendencies, such as cyberbullying and depression.
He advocated for the military’s involvement in social media to address security challenges.
(NAN)
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