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Oil & Gas

NNPC warns against violation of pipeline Right-of-Way



The Nigerian National Petroleum Corporation (NNPC) has raised the red flag on the violation of its pipeline right-of-way by some individuals and communities along the corridor of the system 2E pipeline network.

The Corporation gave the warning in a statement by Mr Ndu Ughamadu, Group General Manager, Group Public Affairs division, in Abuja on Sunday.

The Nigeria News Agency reports that system 2E oil pipelines stretches from Port Harcourt-Aba-Enugu-to Makurdi.

Ughamadu said the infringement on the statutorily guaranteed 25-metre setback for the infrastructure was detrimental to the free flow of petroleum products and harmful to dwellers of illegal structures and shanties.

He said this was due to the combustible nature of hydrocarbon.

Ughamadu noted the inseparable link between the cases of oil pipeline right-of-way-encroachment and incessant pipeline vandalism and oil theft with attendant negative effect on the economy.

According to him, the creation of the minimum 25-metre buffer for the pipeline is designed to allow for maintenance, repairs and replacements of pipelines as need may arise.

He explained that the buffer also ensures that those living close to the lines were shielded in the cases of leakage, rupture or explosion.

Ughamadu added that as first step towards eventual removal of such structures by the team of Army Engineering Corps, its downstream subsidiary, Nigerian Pipeline and Storage Company (NPSC), embarked on extensive consultation and enlightenment exercise.

He said the excerise would be targeted at violators in affected communities, adding that the safety and wellbeing of the people remained paramount.

Ughamadu said that based on penetrating reconnaissance executed by the Army engineers stretching from Ogale-Eleme community in PH-Aba axis to Otade community in EnuguMakurdi leg, structures in violation of the pipeline safety corridor have been identified.

He said those areas had also been clearly marked and notice of imminent removal served on affected occupants.

He stated that the position is intolerable with clear cases of individuals channeling products into private homes.

Oil & Gas

Yuletide: DPR promises to ensure consumers’ satisfaction




Umuahia, Dec. 5, 2019  The Department of Petroleum Resources (DPR) has promised to make efforts aimed at ensuring that its consumers have adequate supply of petroleum products during the upcoming Yuletide.

The DPR operations controller in Abia , Mr Austin Iheji, said this in an interview with the Nigeria News Agency in Umuahia on Thursday.

Iheji said that the DPR was embarking on an inspection of petrol stations in the state in a bid to give consumers value for their money.

He said that the DPR would ensure accurate dispensing of petroleum products to the public during the festive season.

He said that the DPR had begun to inspect the filling stations in the state’s major cities of Umuahia and Aba, starting from Tuesday.

He said that some of the stations inspected by his team had been sealed for under-performance.

He said that more filling stations were sealed in  Aba because of  under-dispensing, lack of operating licence, poor safety standards and absence of security gadgets.

He assured the public that the DPR would do everything within its constitutional powers to curb sharp practices in the sector.

“What we have done is not borne out of hatred for the affected stations.

“It is a sincere desire to curtail cheating, ensure safety standards and give consumers real value for their money during the Yuletide.

“The stations visited are being randomly selected; so we urge anyone with useful information to supply such to us and help us serve Nigerians better “, he said.

Iheji, however, commended petroleum marketers in the state for what he described as a  good level of compliance by them.

He said that the stations that were sealed would be unsealed as soon as they had corrected the anomalies for which they were found wanting.


Edited & Vetted By: Kamal Tayo Oropo/Peter Dada

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Stakeholders seek streamlined regulatory environment for oil, as sector to attract more investment



Oil and Gas industry stakeholders on Wednesday called for a streamlined regulatory environment to attract investment and make the sector competitive.

The stakeholders made the submission at the ongoing Practical Nigerian Content Conference and Exhibitions holding in Yenagoa.

The theme of the conference is “Leveraging Local Expertise for Market Growth and Expansion”.

During a panel discussion on “Facilitating a commercially viable business environment through inter agency collaboration” the speakers noted that a one-stop shop model for regulatory agencies was desirable.

Mr Simbi Wabote, the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), said the board had taken steps to reduce bureaucracy that prolonged the contracting cycle in the oil and gas sector.

He said that NCDMB had simplified most of its approval processes by automating them to ensure seamless and swift issuance of regulatory clearance to operators.

He said the board recently automated the approval processes for approval of expatriate quotas to guide the Ministry of Interior for the issuance of expatiate quota.

Sen.  Teslim Folarin, Chairman Senate Committee on Nigerian Content, said that following the success recorded by NCDMB, the legislature was planning to extend the Nigerian Content Law to other sectors of the economy.

The sectors envisaged to be covered by the new law include power, ICT, construction , telecoms amongst other sectors.

He said that the Senate planned to repeal the Nigerian Oil and Gas Industry Content Act 2010 and re-enact the Act to include modifications that would  make the new legislation to apply to other sectors.

AMr Victor Okoronkwo, Managing Director, Aiteo Eastern Exploration,  who spoke for the Oil Producers Trade Section of Lagos Chamber of Commerce, noted that the group was yearning for improvement on Nigeria’s ease of doing business.

He said  multiple  taxes and overlapping responsibilities by government agencies were  adversely affecting the profit margins of oil firms, a development that discouraged the inflow of investment capital.

According to him, the sector remains open to dialogue with government to make the Nigerian oil and gas sector competitive to attract more investment.

Edited & Vetted By: Chukwudi Ekezie

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Oil & Gas

We are 97% ready for FID on Train 7-NLNG



Train 7


Yenagoa,  Dec.4, 2019 Nigerian Liquefied Natural Gas (NLNG) says it is 97 per cent ready to take Final Investment Decision (FID) on its capacity expansion project, the Train 7 project.

Mr. Tony Attah,, the Managing Director/Chief Executive Officer, Nigeria LNG Limited0,

disclosed this at the ongoing 9thPractical Nigerian Content in Yenagoa.

He said that the Train 7 project was expected to expand NLNG’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

” t peak construction, the Train 7 project is targeted to provide direct, indirect and induced employment of about 40, 000 jobs from the Nigerian Content Development and Monitoring Board (NCDMB), perspective, if looked holistically over the next six year window,” he said.

He warned that Nigeria risked losing its market share in the international gas market as well as dwindling gas export if it failed to make new investments in gas development.

“In LNG exports and market share by market, Qatar leads the chart with 78.7 Metric Tonnes, MT,  24.9 per cent, followed by Australia with 68.6MT,  21.7 per cent, while, Nigeria sits at 5th, with 20.5MT and 6.5 per cent.

“If we do not take new FID investments in Trains, Nigeria may continue to drop from 5th to 10th position by 2025.

“We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.

“Our vision is to be a global LNG company helping to build a better Nigeria. We have four shareholders, government with 49 per cent of the company with NNPC as it representative, Shell 25.6, Total 15 per cent and Eni 10.4 per cent.

“This year we celebrate our 30th anniversary, and 20 years of safe and reliable operation in the Niger Delta.

“We believe that gas will continue to be a strong part of the energy mix in Nigeria.

“Today we have 11 billion dollars asset base. We have six LNG trains with 22mtpa capacity. We have 23 ships going round the world,” he added.

He said added that the company had delivered over 4700 LNG cargoes across the world and  reduced gas flaring by 65 per cent lay down to less than 20 per cent.

“Nigeria is now number seven in terms of gas flaring across the world. Russia remains number one, even the U.S. is at number four on the list.

“We are the highest tax payer in Nigeria with eight billion dollars tax. The company is 100 per cent Nigerian management and 95 per cent Nigerian staff.

“The next big deal for capacity building for Nigeria through NCDMB is the NLNG Train 7,” he said.

Edited & Vetted By: Chukwudi Ekezie

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Oil & Gas

Dangote Refinery good example of local content- Wabote



The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDM), Mr Simbi Wabote, says the 650,000 barrels per day Dangote Refinery project is an actualisation of Local Content development in Nigeria.

Wabote made this known while fielding questions from newsmen at the ongoing 9th Practical Nigerian Content Forum in Yenagoa on Wednesday.

The private refinery owned by the Dangote Group is under construction in Lekki Free Trade Zone, Nigeria.

When completed, it will have a capacity to process about 650,000 barrels per day of crude oil.

He said that project was the only way to drive local content, especially by establishing  it in the country.

“Dangote might as well have taken the refinery elsewhere but deciding to execute the project in Nigeria is a plus.

“Secondly, at the peak of the construction of the refinery, about 65, 000 workers are on site, and the majority of those workers in terms of ratio that are providing various services are Nigerians.

“Also, there is a lot of sub-contracts that have been awarded, contracts within the project site, the majority of those contracts are executed by Nigerian companies.

“To a very large extent, that is an example of believing in your country and trying to do things to enhance the development of your country,” he said.

Wabote commended the company’s plan to integrate young Nigerian graduates to manage the refinery, noting that the younger ones remained the future for the industry.

“Those of us at the industry, at 60 we will all retire and then these engineers will take over from us.

Commenting on failure of proper management of the country’s refineries,  he said that the state of the current four refineries should not  be likened to Dangote Refinery.

According to him, Dangote Refinery is a private investment that will do everything possible to run and maintain the refinery effectively.

“The other four refineries are government-run, and most times government is not in the position to run businesses effectively because of so many factors.

” Private investors will do a lot better than when you have the government run it.

“This is why they have pushed for privatisation of refineries. An example of private individual handling an asset is the case of Hilton Hotel in Abuja which has been privatised.

“Currently, you can see the profitability and what has been achieved thus far because it is being run privately.

“Dangote Refinery is purely private initiative and he will put everything well to ensure it is run successfully,” Wabote said.

Edited & Vetted By: Chukwudi Ekezie

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Oil & Gas

Oil Theft: We have lost 4m barrels in 2019 says Aiteo



Aiteo Eastern Exploration and Production, operators of OML 29, says the activities of oil thieves have assumed alarming proportions, leading to loss of about four million barrels of crude in 2019.

Mr Victor Okoronkwo, Managing Director of the oil firm spoke on the sidelines of the ongoing Practical Nigerian Content Exhibition and Conference with the theme, “Leveraging Local Expertise for Market Growth and Expansion’’.

Okoronkwo regretted that attacks by oil thieves on the 117 kilometer Nembe Creek Trunk Line, (NCTL) has adversely affected crude export from the oilfields in Bayelsa which had been shut for two months in 2019.

He regretted that despite the enormous investment in technology and security on the assets, the sabotage was yet to abate, adding that the development required a decisive action by all stakeholders.

He noted that the losses in oil output caused by oil theft were responsible for revenue shortfalls expected by the three tiers of government.

“One of the biggest challenges we face in our operations is the security of our pipelines and oil facilities.

“Our pipelines and flow-lines are constantly vandalized by unscrupulous elements tagged ‘crude oil thieves’ attempting to cause economic sabotage to our company and the people of this great country.

“Despite our efforts in raising NCTL uptime from 60 per cent to over 80 per cent since acquisition, we have recorded more shutdown days in operations due to third party infractions for over two months this year, compared to previous years.

“This has resulted in loss of revenue and deferments estimated at about 4 million barrels so far this year.

“Also worrying is the amount of crude loss recorded even when the pipeline is operational, usually in the range of 25 to 35 per cent.

“More worrisome is that even when the perpetrators of these acts are caught and handed over to security agencies, we are yet to witness any convictions,” Okoronkwo lamented.

He noted that the interruptions cut across the industry, as NCTL also served four other oil companies namely Eroton, Newcross, Belema Oil and Shell, who took turns to export their crude output from the export line.


Edited & Vetted By: Ifeyinwa Okonkwo/Maureen Atuonwu

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Oil & Gas

Multiple taxes hinder growth of local firms in oil, gas sector — Stakeholders




Eboh/Nathan Nwakamma

Yenagoa, Dec. 3, 2017 Some stakeholders have called on the Federal Government to ensure reduction of  taxes on companies in the oil and gas sector to indigenous companies to grow.

The stakeholders spoke on Tuesday at the ongoing 9th Practical Nigerian Content Forum with the theme,   “Leveraging Local Expertise for Market Growth and Expansion”, and holding in Yenagoa.

Mr wale Olafisan, the Group Managing Director of Amni International Petroleum Development Company  said numerous taxes in the industry adversely affected the  development of indigenous companies.

Represented by Mr Tijani Adewale, a Director in the company, Olafisan identified the taxes as Value Added Tax, Nigeria Content Development and Monitoring Board, tax, NDDC tax, among others.

“We need to support the indigenous companies and encourage them to contribute to the growth and development of the country,” he said.

He called on government to ensure good governance in the sector to enable it to compete globally.

He said that world’s future was on gas and that it was necessary that Nigeria adopted good policies to rive gas development.

“Government must look at gas production critically and prioritise its development.

“We have huge deposits of gas in the country and must take its development very seriously.

“We must support indigenous companies, especially those that want to be involved in the upstream sector,” he added.

Mr Victor Okoronkwo, the Managing Director, Aiteo Exploration and Production Limited,  said that ensuring local content would help the growth of the sector.

He said that indigenous companies, such as Aiteo, had so many challenges affecting their  development.

According to him, apart from taxes, constant attacks on its facilities remain a big challenge.

“We witness constant vandalism,  thereby interrupting our operations and in turn an economic sabotage.

” In 2019, we have rerecorded substantial shutdown, we have a cumulative of two months shutdown and it has negative impact on the revenue of the company and the economy,’’ Okoronkwo said.

He added that the company recorded crude loss of  25 per cent to 35 per cent “between what is injected to the facility and what is received at the terminal”.

He said the company had lost four million barrels of crude through damage on pipelines and other facilities during the year.

Edited & Vetted By: Chukwudi Ekezie

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