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OML 65: NNPC seals $875.75m financing deal with CPDC



The Nigerian National Petroleum Corporation (NNPC) says it has signed a 875.75 million dollar funding and technical services agreement and alternative financing deal for the Nigerian Petroleum Development Company(NPDC) operated Oil Mining Lease (OML) 65.

The Corporation in a statement by its spokesman Mr Ndu Ughamadu in Abuja on Sunday, said it signed the deal with CMES-OMS Petroleum Development Company (CPDC).

The Chief Financial Officer of the NNPC, Mr Umar Ajiya,who signed for corporation explained that the package entailed comprehensive financing solution that addresses the complex issues involved in growing NPDC’s production.
He added it would help minimise its cost of capital, and maximize its value preservation.

On CPDC’s right to provide technical services, he listed the field of consideration in this regard to include: drilling and completion services; building capacity and technology transfer; generating employment opportunities for youths.
This, he added that it would have an attendant positive multiplier effect on the nation’s economy, among other considerations.
He noted that the deal would also struck a balance between risk and reward which gave investors a rate of return that was commensurate with funding a brownfield project which had significant exploration risk.

Ajiya noted that the expectation was that the collaboration between the NPDC and CPDC would translate in real terms to the efficient execution of the scope of activities for the optimal development of the OML 65 asset within cost and schedule, whilst maximizing value to all the stakeholders.

He said it was projected that the collaboration would enhance operational and financial performance strictly guided by the pre-agreed Key Performance Indicators (KPIs) which remains critical for determining incentive payment due to CPDC.
Ajiya further disclosed that the project, which scope cuts across exploration, development, production and provision of facilities with incremental first oil targeted for fourth quarter 2020, was estimated to have potential reserves of 800 million barrels of oil equivalent (mmboe).

“It will also help an ultimate recoverable reserve of 244 mmboe and cumulative production of 44mmboe from the Abura Main and Abura SE fields,” he said.
He explained that over the project’s life, it was expected to generate over 6.35 billion dollars in taxes and royalties to the Federation to support government’s medium to long term economic development agenda.

He described the contractor financing model as an innovative approach by NPDC to funding its operations in response to the challenging economic environment, saying the approach would fast-track the development of NPDCs under-developed assets.

He informed that the project was expected to ramp up production at OML 65 from 900barrels per day to 60, 000 barrels per day with average production over field life at 40,000 barrels per day.

Edith Ikeeboh: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]

Oil & Gas

NOSDRA is investigating cause of fire at OML 95 says D-G



The National Oil Spills Detection and Response Agency (NOSDRA) on Monday said that the ongoing fire at Ororo oilfield at Oil Mining Lease (OML) 95 is being investigated.


Mr Musa Idris, Director-General of NOSDRA, in a telephone interview with News Agency of Nigeria confirmed that the fire outbreak started at the weekend.


He said that a Joint Investigative Visit (JIV) to ascertain the cause of the inferno had been convened.


“The well head of Ororo OML 95, operated by Guarantee Petroleum Co Limited, caught fire on Saturday.


“The company has engaged Haliburton and Chevron Nigeria Limited to assist it in extinguishing the fire.


“It will certainly take at least six weeks in the earliest to accomplish that.


“Chevron itself battled a similar fire outbreak on well head last year and  it took it eight weeks to extinguish the fire through an indirect well.


“Joint Investigation will, however, be carried out because of the emergency nature,” Idris said.


The NOSDRA D-G  stated that no life was lost in the incident as all crew were evacuated early.


The oilfield is located at the shallow offshore off the shoreline of  Ondo near Ojumole.


The oil asset was operated by Chevron Nigeria Limited but acquired by  Guarantee Petroleum Co. Limited, an indegenous firm, following the divestment by Chevron from OML 95.

Edited By: Donald Ugwu (NAN)

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Oil & Gas

Bayelsa Govt to seek review of revocation of OML 46 oilfields licence



The Bayelsa Government will seek the review of the revocation of its Oil Mining Licences (OML) for 46 oilfields by the Department of Petroleum Resources (DPR).

Mr Daniel Alabra, Acting Chief Press Secretary to Gov. Duoye Diri, made this known in an interview with the Nigeria News Agency on Saturday.

He said that the state government was already studying the revocation order with the intention of seeking a review.

NAN reports that the OML 46 asset held by Bayelsa government located within onshore swamps in Bayelsa was won in 2013 through a bidding process conducted by the DPR.

Meanwhile, the DPR on April 6, announced the revocation of 11 of the 13 marginal fields licenses it issued to indigenous oil firms to build capacity and promote Nigerians’ participation in the oil sector.

Alabra further stated that the state was concerned about the revocation and would take steps to reverse it.

The governor’s spokesman said that the DPR’s decision revoking the licences was most erroneous because the asset had been developed to the point of test production.

“The governor is already being briefed on the matter, he is taking a holistic view in order to arrive at an informed decision.

“The Bayelsa government holds 40 per cent equity in the oil block along with other investors who operate the field, the state does not run the oil business on a day to day basis,” he said.

The chief press secretary expressed the Diri-led administration’s commitment to ensure the development of the oil fields.

“We are hopeful that oil price will rebound, Bayelsa will retain its interests in Atala fields, this investment is well thought out and not misplaced.

“As a government, we are adopting an economic strategy that will shield the state from the shock of low oil prices,” he said. 

Edited By: Azubuike Okeh/Sadiya Hamza



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Oil & Gas

NPDC empowers OML 65, NOGA host communities with 7 transformers, 300 freezers in Delta



The Nigerian Petroleum Development Company (NPDC), a subsidiary of NNPC, on Thursday empowered OML 65 and NOGA assets host communities with seven 500KVA and 300 KVA step down transformers in Delta.

Other items donated to the host communities are 300 solar powered deep freezers and 3,000 school chairs and desks.

The Managing Director of NPDC, Mansur Sambo, represented by the Deputy Manager, Community Relations Department (CRD), Noble Imabibo, presented the items to members of the communities.

Sambo said NPDC presented the items to OML 65 and NOGA communities to boost their economy as well as ameliorate the untold hardship facing the people of the communities.

He said the items would be shared among the seven communities in the Non Oil and Gas Asset (NOGA) and OML 65 assets host communities equally.

“The items will no doubt improve the presence of social amenities and life of the people.

“It is therefore pertinent to utilise the kind gesture to better your life and that of your families.

“NPDC is a friend to the communities where its operates, we are partners in progress and we share a common bond towards sustaining the existing mutual relationship.

“We shall continue to leverage on the peaceful coexistence and improve on our corporate social responsibilities to bring about development in our host communities,” he said.

According to Sambo, l advise you to eschew all forms of violence, radicalism and other actions capable of creating societal unrest.

Mr Misan Ogbegbe, President General of one of the benefitting communities, Okorofiangbe community in Warri South, thanked NPDC on behalf of the host communities for the gesture.

Ogbegbe urged NPDC to do more and called on other corporate organisations to take seriously their corporate social responsibilities to host communities.

Edited By: Janefrances Oraka/Donald Ugwu

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PSU to provide technical support for implementation of SOMl-PforR



North Central and North East of Savings One Million Lives For Results (SOML-PforR) says the Programme Support Unit (PSU) was aimed at providing technical support for the implementation of the programme.

The Coordinator of SOML-PforR, Dr Dogara Okara, told the Nigeria News Agency on Wednesday in Owerri

that PSU was strengthening the performance programme through technical assistance and support for states to develop and implement a system of performance management.

Okara said that states were also expected to build management capacity for various healthcare programmes.

According to him,  PSU ensures that states appoint lead  programme managers with commensurate capacity to be accountable for the performance management process.

He noted that the PSU also supported states by providing the necessary technical expertise to analyse weaknesses in primary healthcare service delivery.

“This includes availability of financial resources and development of appropriate action plans,’’ he added.

Okara said that the PSU worked closely to strengthen ongoing support, tools and capacity building to state leads and other state leaders.

He said  that such steps would help to analyse weaknesses in Primary Health Centres (PHCs’) performances and also develop and implement corrective measures.

“The PSU ensures that its performance management officers are actively involved. At least, twice a year, high level review meetings are held to discuss, analyse and agree on action plans.”

“We are deploying full-time consultants to provide technical support for all states. The decision to deploy such will be taken in consultation with the programme manager,” he said.

Okara said that the PSU also supported states to formulate plans to earn initial investments.

According to him, the PSU  develops plans to strengthen supportive supervision and introduce innovations and provide expertise to all states to analyse data to inform the design of their plans.

He added that the PSU reviewed draft versions of the plans and provided feedback to improve them.

He disclosed that the PSU also supported the Federal Ministry of Health (FMoH) on performance management by strengthening the capacity of FMoH staff working on programmes related to SOML-PforR

“Carrying out training needs assessment, examining how FMOH staff are currently tracking performance, devising training programmes and following up support programmes ,” he said.

He added  said that the PSU assisted FMOH with expenditure analysis. Okara noted that PSU would also support the achievements of some of disbursement linked indicators.

Edited By: Cecilia Odey/Ijeoma Popoola

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SOMLPforR: Perm Sec. urges collaborative efforts to strengthen South East healthcare



Dr Nnenna Chikezie, Permanent Secretary and Executive Secretary, Abia State Planning Commission, has called for collaborative efforts to strengthen the South East states health care system.

She said that the region’s health system could be strengthened by taking advantage of the Saving One Million Lives For Results (SOML-PforR) programme.

Chikezie made the call in an interview with Nigeria News Agency , on Wednesday in Owerri, Imo state.

She spoke on the sideline of a Peer Review Meeting of SOML-PforR, for South East Zone and Benue State, organised by APIN Public Health Initiatives, Programme Support Unit.

She said that strengthening the health system through the SOML-PforR would ensure that people of the region have access to quality healthcare services, which was critical to achieving the Universal Health Coverage (UHC).

“The South East zone should embark on concerted efforts to strengthen its health systems to improve immunisation coverage, newborn and child health programmes at the Primary HealthCare level,” she said.

The permanent secretary said that adopting a good health system model required subsidising State health insurance scheme to cover vulnerable and poor segments of the people of the region.

“There must be robust health care financial service, reforms in healthcare system, efficiency in the usage of funds and partnerships for more resources for health care,” she added.

She noted that SOML-PforR programme had continued to be the trailblazer in strengthening healthcare system in the country through the grassroots involvement.

She assured that gains from the programme would significantly improve the Health indices in the country.

Chikezie said that immunisation coverage was one of the SOML-PforR indicators used to monitor progress toward the reduction of child morbidity and mortality.

She called on all stakeholders in the health sector from the zone to be on the same page.

She advised that the most important thing they could do to collaborate was to get the region to work together on the same goals.

“We have to set our expectations, use technical tools, be open about everything and

hold effective team meetings.

“Collaboration is mutually beneficial for the South East zone as well as our healthcare system because when we work together, interact and share ideas, we will see and understand how we work, think, negotiate and operate.

“This will speed up solutions because collaboration speeds things up,’’ she said .

Edited By: Cecilia Odey/Felix Ajide

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SOML-PforR will strengthen community participation, quality healthcare delivery in Abia – Coordinator



Dr Suzzy Nwachukwu, Abia  Coordinator, Saving One Million Lives For Results (SOML-PforR), says the programme will strengthen community participation and boost quality of healthcare services delivery in the state.

Nwachukwu told Nigeria News Agency on Tuesday in Owerri that looking at the successes of  SOML-PforR strategy in Abia,  there was need to further strengthen community participation and ownership through community engagement like “Town hall meetings”.

She spoke on the sideline of a Peer Review Meeting of SOML-PforR for the South East and Benue, organised by APIN Public Health Initiatives, Programme, Support Unit.

According to her, Greater emphasis will be on strengthening the Abia Health System for quality health service delivery by building health workers capacity in clinical competence.

“It will also be to ensure the availability of basic medical equipment, availability of essential drugs and commodities, strengthening leadership and governance at state Ministry of Health level, ” she said.

She explained that the Abia state SOML-PforR had developed a work plan as well as a 2020 Annual Workplan with the programme officers.

Nwachukwu said the plan reflects support from all programmes, State Health Insurance Agency and State Primary Healthcare Development Agency, and with a Technical Assistant from APIN.

She said that the Abia state SOML-PforR best practice was bridging the gap between the PHCs/Health workers and the community by engaging traditional rulers, religious leaders, ward development committee (WDCs), women and youth groups through advocacy and town hall meetings.

The state coordinator said that in return there was an increased in community ownership and participation in PHC activities.

She noted that the engagement had also enhanced the outcome of the SOML-PforR household outreaches and health facility in-reaches.

Also, Nwachukwu said that non-disbursement of funds to the state from the 2018 assessment posed a great challenge.

“We were not deterred as we procured some of the commodities that were needed to implement our 2019 activities on credit.

“As health workers, we were motivated to implement our planned activities, despite the paucity of funds, ” she said.

The coordinator, however, called on the Federal Government to promptly disburse funds within a defined timeline, saying that this would enable the states to plan and promptly implement planned activities to enhance quality healthcare delivery.

Nwachukwu added that it would also enable the state to achieve the overall goals of SOML-PforR, which were to increase the utilisation and quality of high impact reproductive, child health and nutrition interventions.

Edited By: Vivian Ihechu/Felix Ajide

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SOML-PforR: FG to provide incentives to state govts. based on achievements



Federal Ministry of Health (FMoH) will continue to provide incentives to state governments

based on achievements and results


health outcomes” to drive institutional processes needed to achieve more results.

The Minister of Health, Dr Osagie Ehanire, said this at a Peer Review Meeting of Saving One Million Lives Programme For

Results (SOML-PforR) for South East Zone and Benue, organised by APIN Public Health Initiatives, Programme Support Unit on Tuesday in Owerri.

Nigeria News Agency reports that the meeting was organised for state health commissioners and state-level stakeholders

from Anambra, Enugu, Imo, Abia, Ebonyi and Benue.

The meeting

is to evaluate the activities of SOML-PforR in the states.

Ehanire, who was represented by Dr Ibrahim Kana, the National Programme Manager, SOML-PforR, said “the programme seeks to catalyse

change in the way health business is done by focusing on results and governance.”

The minister added that

the ‎ programme focused on six pillars; including improving Maternal, Newborn and Child Health (MNCH), improving routine

immunisation coverage and achieving polio eradication.

Others are the elimination of mother-to-child transmission of HIV, scaling up access to essential medicines and commodities, malaria control

and improving child nutrition.

He said that “the programme represents a bold attempt to improve maternal and child health outcomes so that they are more in keeping with the country’s level of wealth.”

He noted that the programme was also intended to make the health sector to contribute to the economic and social development of Nigeria.

 “This would bring about a re-orientation of service delivery to results, rather than just inputs,” he said.

The minister enjoined the commissioners to live up to their responsibilities and make every effort at ensuring the success of the programme.

He said that the peer review provides an opportunity to review progress, deliberate and identify ways to address challenges and improve performance.

NAN recalls that SOML_PforR programme is an initiative of the Federal Government with support from the World Bank aimed

at increasing access to health facilities for mothers, newborns and children, among others.

Edited By: Hadiza Mohammed-Aliyu

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Aiteo’s OML 29 suit: Court declines application to stay hearing



A Federal High Court sitting in Yenagoa on Friday declined to halt proceedings in the ongoing litigation by Nembe Communities, hosts to Oil Mining Lease (OML 29) over the adverse impact of oil exploration on them.

The Nembe communities in Bayelsa had filed a suit against Aiteo Exploration and Production Limited, but another firm Aiteo Eastern Exploration and Exploration Company approached the court to be joined as the holder of OML 29 lease.

Justice Abimbola Awogboro, had joined Aiteo Eastern Exploration Limited and other adjourning communities in the suit, but declined an application to strike out Aiteo Exploration and Production Company from the suit.

Aiteo Exploration and Exploration subsequently headed to the court of Appeal in Port Harcourt and applied to the Federal High Court to stay proceedings pending the determination of the appeal.

Earlier, Lead Counsel to the Nembe communities, Mr Iniruo Wills, told the court that they had filed a counter affidavit opposing the application for stay of execution saying that the application was a delay tactics to waste the time of the court.

He urged the court to consider the plight of the law abiding people of Nembe who had taken the peaceful route in seeking legal redress rather than resorting to self help.

Mr Andrew Oru, Counsel to Aiteo Exploration, urged the court to grant its application for stay but other parties who were joined as co-plantiffs opposed the application on the grounds that they were yet to be served.

The OML, was supposed to be renewed on June 30, 2019

The court had on June 24, 2019 declined an application to halt the renewal of Oil Mining Lease (OML) 29 pending, the determination of a suit by Nembe communities in Bayelsa.

The OML 29 host communities are seeking an environmental audit of the impact of the oil field on the host communities, and the implementation of the social obligations of the host communities by the operator of the oil block amongst others.

The presiding judge in a response to Oru maintained that the applications being argued was yet to be formally brought before her.

She therefore adjourned the case until May 12 for ruling on pending applications on the case.

The lease expired on June 30, 2020 while the operator of the oilfields had commenced renewal formalities with the payment of 82 million dollars to the Department of Petroleum Resources

The plaintiffs are Ikaonaworio Eferebo-Igoma, Iyerite Chiefson Awululu-Atubu, Ayebaesin Edoghotu-Omoh, Markson Amaegbe-Orutari, B.C. Benwari-Yousuo and Doibo Evans representing OML 29 host communities.

The defendants are the Attorney-General of the Federation, Minister of Petroleum Resources, Federal Ministry of Environment and Shell Petroleum Development Company of Nigeria.

Others are: Aiteo Exploration and Production Ltd, Attorney-General of Bayelsa and The Deeds Registrar, Bayelsa Ministry of Lands.

Shell Petroleum Development Company in 2015 divested its equity in OML 29 and transferred its interest in the oil block, including the 97 kilometer Nembe Creek Trunk Line for 1.7 billion dollars to Aiteo.

However, the host community, said the divestment was done “without resolving the untold negative impact of their operations on the people”

Edited By: Remi Koleoso/Sadiya Hamza


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Oil & Gas

DPR hands over OML 98 to NPDC



The Department of Petroleum Resources (DPR)  has officially handed over the Oil Mining Licence  (OML) 98 to the Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Speaking at the hand-over on Friday in Abuja, Mr Sarki Auwalu, DRP Director and Chief Executive Officer, said that the licence was revoked from its operators Pan Ocean oil corporation over non remittance of royalties.

OML 98 is the only asset belonging to a Joint Venture (JV) between NNPC and Pan Ocean Oil. OML 98 is located in the onshore Niger Delta.

The acreage was originally awarded to Pan Ocean in 1971 as OPL 71 and was converted into OML 98 in 1975. Production from the JV started in 1976

OML 98 is an asset that is prolific.

The 2P reserve is about 43 million barrels with 20 million barrels of condensates, with over 383 billion SCF of gas.

These assets is supposed to work.

“There is an obligation for each and every company that they need to pay to government; and the first line charge is royalty. If a company is not paying royalty, it means the company is not performing.

“So government is invoke its own right to revoke the asset and give it to somebody that would pay that royalty to the Nigerian people; because royalty is what Nigerians really take out of the business.

“All the investors they would come, we would give them opportunities by giving them the assets; they would put in their money and they would give certain royalties, concession rentals and other revenue to government.

”That is really what government takes from the asset, the resource; whether it is oil, condensates or gas.The reason for the revocation is failure to meet obligations of that asset to government,’’  he said

He said that five other licences that were revoked alongside OML 98 were revoked for the same reason adding that government was looking at for the best people to transfer the assets to for maximum utilisation and benefits.

“Why, because, we want the assets to work and we want Nigerian people  to benefit from the resources they were blessed with ,so, the fate of the others will be similar to this  and government is looking at the best way to operate the assets  for  Nigerians to benefits.’’ he added

He said that NPDC got the asset for its proven confidence in operations over the years.

“This is a company that 15 years ago they could not show  to drill up to 10,000 barrels but now, our NPDC can produced over 150 million  barrel per day .

“It shows that now, Nigeria has come of age, we have company of our own, 100 per cent Nigerians, operate by Nigerians and work for Nigeria and we are ready to transport skills.

“NPDC have fantastic  good skills, there is no white man working in NPDC, drilling, production 100 per cent Nigeria, we are proud of them and we need to support them. This is our own made in Nigeria, by Nigeria and for Nigeria,’’ he said.

According to him, that is why government thought it wise handing over the OML 98 to them as it is our own company to make sure that Nigeria works.

He noted that the handing over of the assets to NPDC means that Nigeria oil and gas sector  had grown adding that the policy idea was to ensure that Nigeria take charge of its resources.

Auwalu urged the company to be responsible and ensure that it operated with ultimate transparency and develop the asset for the benefit of Nigeria.

He noted that government would not spare any body found wanting

Ferdnard Bariwer, General Manager Exploration and Development Division, NPDC said that the company would look at the asset and sort the best things to do to move forward.

“I strongly believe that we are doing more studies already, other activities; we will look at the OMLs and see the quick wins to start producing as soon as possible to meet the expectation of the nation.

“I assure you, I have been in NPDC since 1987 and I know the capability that we have , I assure you the government and everybody that NPDC is capable of handling the OML,’’ he said

He said that currently the company was producing about 200,000 barrel and working hard to move to between 300 and 500 barrel per day.

“Before the year will run, you will hear from us how much we are producing,’’ he said.

Bariwe represented the Managing Director of NPDC, Mansur Sambo.

 Also, Mr  Olajide Ishola, Chief Operation Officer Pan Ocean Oil Corporation said that the asset was  given to Pan Ocean 1973  and production  started in 1976.

“So, we have operated the asset for 43 years, we are a responsible company , however, as thing went the way it went, this revocation is really not new as its been done since March last year.

“ Today, is not a sad day, because since March last year that the revocation has been done, a lot of things has been left in limbo.

”This meeting of today sets the tone for the handover and the future of the asset, and also for those things left in limbo, like what do we do to the staff; the oil that has been produced, that was warehoused and not sold, not shared and all t he rest.

“I want to reiterate that as Pan Ocean, we will cooperate with NPDC and all relevant stakeholders to ensure that the directive is carried out for the benefit of Nigerians,’’ he said

Commenting on the Legacy debts, he said it would d be worked on and sorted by the NPDC as the new operator.

“We would work along and cooperate with them to ensure it is done properly,’’ he added.

Edited By: Sadiya Hamza

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General news

NPDC donates 150 tricycles to OML40 host communities in Delta



NPDC donates 150 tricycles to OML40 host communities in Delta


Warri, Nov. 20, 1019The Nigerian Petroleum Development Company (NPDC, a subsidiary of NNPC, on Wednesday donated 150 tricycles (Keke) to OML 40 host communities in Delta.

Mr Mansur Sambo, the Managing Director of NPDC said during the presentation in NPDC Warri field office that the initiative was in partnership with Elcrest JV.

Mansur who was represented by Mr Noble Imabibo, the Acting Manager, Community Relations, said the tricycles were donated to the people of (OML 40) to boost the economy of the host communities.

“The initiative is to ameliorate the untold hardship ravaging the people of the communities.

“It is also geared towards curbing youth restiveness and idleness in the society as it always known that an idle hand is the devils workshop.

“It is therefore pertinent to utilise this kind gesture to the best of your ability to better your lots and those of your families

“l advise you to eschew all forms of violence, radicalism and other action capable of creating societal unrest.

“NPDC is a friend to the communities where it operates, we are partners in progress and we share common bond towards sustaining the existing mutual relationship,” he said.

“Sambo said, “We shall continue to leverage on this peace and improve on our corporate social responsibility (CSR) to bring about development in our host communities.”

According to him, the tricycles would be shared equitably among the communities.

In her remarks, the Manager, Community Relations and Security, Elcrest JV, Mrs Frances Omanruaye, thanked the community leaders for maintaining peace in their various communities.

Omanruaye said “we want to say thank you all because we have achieved the level of peace we needed to do our job.

“I know that there are huge expectations from us, but this is just a token to show our appreciation.

“We pray that this peace will be sustained so that we can touch more lives.

“We are still drilling and producing, we crave for more cooperation and understanding from you, Your cooperation will enable us to do more.’’

Mr Obogun Aziboro, the secretary of Tsekelewu community thanked NPDC/Elcrest JV for the gesture.

Aziboro said the gesture would reduce youth restiveness adding that it would also enhance the mutual relationship between NPDC/Elcrest JV and its host communities.

Mr Jeffrey Wilkie, the secretary of Tebu community said “we are happy that these tricycles will empower our jobless youth.

“We appreciate your efforts at reducing poverty in our communities.

“If all cooperate organisations in the state are doing things like this, the rate of unemployment would have reduced,” Wilkie said.

Mr Justice Akuyoma, the secretary of Ebrohimi community, however, urged the management of NPDC to always consult with the communities to know their needs and areas of priority.

Edited by Donald Ugwu (NAN)

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Oil & Gas

14 companies bid for OML 119 redevelopment financing- NNPC



The Nigerian National Petroleum Corporation (NNPC) says it has publicly opened bids from 14 companies for the financing and redevelopment of Oil Mining Lease (OML) 119.

The Corporation disclosed this in a statement issued by its Acting spokesman, Mr Samson Makorji, in Abuja, on Friday.

OML 119 is operated by the Upstream subsidiary of the corporation, the Nigerian Petroleum Development Company Limited (NPDC).

The Group managing Director, Mele Kyari speaking at the public opening of bids for the Funding and Technical Services Entity (FTSE) said OML 119 was one of the corporation’s critical projects.

He said that it also aligns wholly with the Federal Government’s aspirations of boosting crude oil and gas production, growing reserves, and monetising the nation’s enormous gas resources.

The GMD noted that the selection process for the potential FTSE was transparent and in strict compliance with extant laws and overriding national interest.

He added that it was also in tandem with the Economic Recovery and Growth Plan (ERGP) and the TAPE agenda of the NNPC.

In his remarks, the Group General Manager, Supply Chain Management, Mr. Abdulhamid Aliyu, assured the companies that the selection process would remain transparent and fair.

OML 119 is a twin offshore block made up of Okono and Okpoho Fields located approximately 50 kilometers offshore south-eastern Niger Delta.

Edited by Felix Ajide


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Niger Delta

OML-25 Host Communities pleading for school in 2019, saddens me — President Buhari



President Muhammadu Buhari says he felt touched and sad to know that OML-25 Host Communities are pleading to have primary schools in 2019 after 40 years of oil exploration.

Buhari expressed his displeasure during the official reopening of the OML-25 Flow Station in Belema, Akuku-Toru Local Government Area (LGA) of Rivers on Thursday.

Represented by his Senior Special Assistant on Niger Delta Affairs, Sen. Ita Enang, he assured the people of the host communities that the narrative would change.

“We have been to the host communities, and I want to assure you that we have seen your situation by ourselves.

“I felt touched when in the address by your leaders, they are asking for a school in 2019 after 40 years of producing oil for Nigeria.

“I am also saddened to hear that while producing 44,000 barrels of oil per day for the past 40 years through Shell Petroleum Development Company (SPDC), that you’re now asking for a hospital.

“I want to assure you that we will not just provide schools, we will provide complete community life for all the host Communities of OML-25,” he said.

According to Buhari, the Federal Government will work with the state that is receiving the 13 per cent Derivation, Niger Delta Development Commission (NDDC) and find out what they have particularly done for the communities.

“We will work with the Presidential Amnesty Office and the Ministry of Niger Delta Affairs; we will redirect the budget, so that the oil revenue will take care of the people.

“I felt a lot when I scooped the water that you drink about 30 minutes ago, and the oil from the water is still on my palms with which I fetched the water.

“On behalf of Nigeria, I apologise to you, this situation in this country under President Buhari and Ministers of Petroleum Resources and Niger Delta Affairs will definitely change for the better for all of us,” he added.

The president commended Mr Tein Jack-Rich, President and Founder of Belemaoil Producing for showing deep interest to impact on the host communities.

“Every community should look for, and treasure their indigenes who care about their interest.

“I thank you for bringing peace to these communities in effecting the reopening of OML-25 and reconciling the government, NNPC, and SPDC with the host communities for the betterment of Nigeria.”

Buhari told the people of OML-25 host communities that he had seen their challenges and would take it to the National Assembly.

“We are here at the right time because the 2020 Budget was submitted to the National Assembly two days ago.

“We will take it to them to see what is provided for you, and redirect the budget to capture the interest of oil producing communities like you that are facing same challenge,” he said.

The Nigeria News Agency reports that women from OML-25 host communities shutdown the flow station due to total neglect of the communities.

The host communities of OML-25 in Akuku-Toru LGA are Belema, Offoin-ama and Ngeje. (NAN)


(Editing by Peter Ejiofor)

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OML 29 suit: 2 Bayelsa communities seek to join



Two more communities on Friday applied to be joined in the ongoing litigation by Nembe Communities, hosts to Oil Mining Lease (OML 29) over the adverse impact of oil exploration on them..

The OML, was supposed to be renewed on June 30.

A Federal High Court sitting in Yenagoa had on June 24 declined an application to halt the renewal of Oil Mining Lease (OML) 29 pending, the determination of a suit by Nembe communities in Bayelsa.

The OML 29 host communities are seeking an environmental audit of the impact of the oil field on the host communities, and the implementation of the social obligations of the host communities by the operator of the oil block amongst others.

At the resumed hearing on Friday, Counsel to the parties seeking to join the suit. Mr D.O. Abba urged the court to grant the pending application which was supported by a 24 paragraph affidavit.

Justice Awogboro Abimbola,  who heard four pending applications to be joined in the suit from Bayelsa communities on Sept 27, resolved to consolidate all the applications for joinders and rule on them.

Abimbola adjourned the case until Oct. 19 for ruling on the pending applications to be joined.

The lease expired on June 30, while the operator of the oilfields had commenced renewal formalities with the payment of 82 million dollars to the Department of Petroleum Resources

The plaintiffs are Ikaonaworio Eferebo-Igoma, Iyerite Chiefson Awululu-Atubu, Ayebaesin Edoghotu-Omoh, Markson Amaegbe-Orutari, B.C. Benwari-Yousuo and Doibo Evans representing OML 29 host communities.

The defendants are the Attorney-General of the Federation, Minister of Petroleum Resources, Federal Ministry of Environment and Shell Petroleum Development Company of Nigeria.

Others are Aiteo Exploration and Production Ltd, Attorney-General of Bayelsa and The Deeds Registrar, Bayelsa Ministry of Lands.

Nigeria News Agency reports that Shell Petroleum Development Company in 2015 divested its equity in OML 29 and transferred its interest in the oil block, including NCTL for 1.7 billion dollars to Aiteo.

However, the host community, said the divestment was done “without resolving the untold negative impact of their operations on the people” (NAN)



edited by Sadiya Hamza

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Niger Delta

OML-25: Agitations in Niger Delta, it’s time to change strategy -Petroleum Minister



Chief Timipre Sylva, Minister of State for Petroleum Resources, has called for a change of strategy from agitations in the Niger Delta to maximise the interventions in the region.

Sylva made the call on Saturday during a visit to OML-25 Flow Station at Belema Community, Akuku-Toru Local Government Area of Rivers.

He said that the people of Niger Delta had fought enough and now need to allow peace in the region for development to take place.

“I know that as a people we have fought; and today we will all agree that the Federal Government have head our cries.

“A lot of interventions have come to the Niger Delta because of the agitations, yet we have not seen the benefits percolating down totally.

“But at least there is a start, and that is why we must take cognisance of it and change strategy to benefit maximally from the interventions,” he said.

According to Sylva, it is time for the Niger Delta people to look inwards and see what strategy to adopt in other to get the benefits of the fight that we have not harnessed.

“Because of the agitations, the Federal Government approved 13% Derivation for oil producing states, and Rivers is benefiting from that.

“The Fderal Government also because of the agitations established the Niger Delta Development Commission (NDDC), Federal Amnesty Programme and Ministry of Niger Delta.

“But the problem is, have we benefited from any of these? The answer is no because we are still fighting instead of taking,” he said.

The minister said that non-Niger Delta people were coming to the region to take advantage of the interventions of the Federal Government.

“That’s is why we must transit from the mode of fighting to take advantage of the interventions and also create peace to allow investors come into the region.

“It is only when we have peace that investors can come in and create job that will engage our youths,” he added.

Mr Mele Kyari, Group Managing Director (GMD), Nigerian National Petroleum Development Corporation (NNPC), said that the federal delegation was at the platform because the host communities had lost peace.

Kyari said that the Federal Government in search of peace in Belema, Offoin-ama and Ngeje communities decided to bring SPDC and BelemaOil to a round table to end agitation.

“Yes, we have all lost money since the facility was shutdown but our main target us to achieve peace in this community.

“We are happy that when we sat with BelemaOil and SPDC, and told them that we need to end the fight for the communities to have peace.

“We are not looking for money, we are looking for peace in the host communities; so, we agreed to involve BelemaOil in the activities of OML-25,” he said.

Kyari disclosed that NNPC and SPDC had all agreed to involve BelemaOil in the operation of the facility and benefits to community would be managed by them.

He took responsibility for whatever injustice the communities had faced and stated that the agreement reached would be published and operations would begin at the facility.

The Nigeria News Agency reports that women of OML-25 host communities shutdown operations at the flow station two years ago over failure of SPDC to carry it’s Corporate Social Responsibility.


(Editing by Peter Ejiofor)

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Oil & Gas

Peace in Kula community, best for OML 25- NNPC



The Nigerian National Petroleum Corporation (NNPC), says the existing peace in Kula community in Rivers is the best to ensure smooth operation of Oil Mining Lease (OML) 25 flow station.


The Group Managing Director (GMD)  of NNPC, Malam Mele Kyari, said this on at the reopening of the OML 25 flow station and commissioning of water plan in Kula community in Rivers.


Nigeria News Agency reports that the project is a Joint venture project between the NNPC AND Belema oil.


He said country lost about 1.7 billion dollars to the closure of the OML 25 flow station for two years.


“There was shutdown of the Belema flow station due to absolute breakdown of law and order in this community two years ago, and there was loss of over 35,000 barrels of oil production per day per day.


“In monetary terms, that is worth about 1.7 billion dollars which could have been put to use for the benefit of the community and the rest of the federation.


“What we have done is to engage the community and its leadership, to ensure that dispute between it and Shell is brought to a closure, as a result of which there will be more community engagements.’’


“They have agreed to vacate the facility and allow petroleum operation to continue in this facility,” he said.


Kyari said that immediate priority of government and NNPC was to ensure peace to help other things to fall in place in the community.


“We know that ultimately when peace comes, oil production will come back and we can see the return of about 35,000 barrels of oil production per day.”


The GMD said that for the oil production to resume, there would be a re-entry process and validation of the state of damages done on the facility over time.


He assured that within the shortest time, Shell would come up with a plan.


According to him, community engagement is the solution to resolving dispute with oil producing communities.


“We have found a solution, and this would enable people to go back to their work, offer social service and all that is needed will come back.


The Minister of State for Petroleum Resources, Mr Timipre Sylva, said the relationship with the community had come to stay.


“We need unity in Ijaw land today, and it is time for us to change strategy on our engagements to bring investment to our communities.


“If we cannot make our communities peaceful, investors will not come. It is our responsibility to bring peace to our communities for investment to come because investors are willing to come.”


Kyari advised communities and leaders in the Niger Delta to resolve issues affecting them and oil production.


He noted that through peaceful engagements, oil producing communities in the Niger Delta could earn more revenue from oil and gas investment opportunities.


According to him, there would be more developments as against the constant cases of hostility, disruption of oil production and underdevelopment.


Edited by Deji Abdulwahab/Dada Ahmed

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Niger Delta

Re-opening of OML-25: SPDC, BelemaOil commend FG



The Shell Petroleum Development Company (SPDC) and the Belemaoil Producing Limited, have lauded the Federal Government for a peaceful resolution for operations to commence at OML-25.

Mr Osagie Okunbor, Managing Director of SPDC Nigeria stated this at Belema, Akuku-Toru Local Government Area of Rivers, during a joint visit to OML-25 host communities with a Federal Government delegation.

Okunbor said SPDC was happy to be back to the facility for operations to commence after two long years of discussions.

“A lot of credit to the Minister of State for Petroleum Resources, Mr Timipre Sylva and the Group Managing Director of the Nigerian National Corporation (NNPC), Mr Mele Kyari for bringing SPDC and Belemaoil together.

“SPDC is in support of what the Minister of Petroleum Resources and the NNPC GMD have said to bring peace to the host communities.

“It is absolutely important for peace to return because in the absence of peace, we will be where we are and nothing will be achieved,” he said.

According to Okunbor, no party is benefiting from the peace that is not found because even Belemaoil, a unit partner is not benefiting.

“So, it was in that spirit that we decided that it was important to sit together and find a way out of the impasse.

“I am very grateful to God that we have found that meeting point for us to work together with Belemaoil and the host communities,” he said.

The SPDC MD said that they had impressed it on Belemaoil to treat everybody well no matter what must have transpired in the course of the challenge.

“The President of Belemaoil should ensure that all sections of the host communities are carried along, and he gave us that commitment.

“So, it is very important that we don’t keep generating more and more crisis because at the end, we are all one for one purpose,” he added.

Mr Tein Jack-Rich, President of Belemaoil commended the federal government for achieving a far reaching reconciliation among the stakeholders of OML-25.

Jack-Rich pledged to carry everybody along no matter the position the parties took.

“Belemaoil will not treat anyone unduly because we need peace to develop the area and put an end to agitations,” he said.

reports that women from Belema, Offoin-ama and Ngeje communities in Akuku-Toru LGA, hosting OML-25 shutdown the facility over SPDC’s failure to develop the area.


Edited by Maureen Atuonwu


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Oil & Gas

NNPC signs agreement with NAOC on 4 OMLs



The Nigerian National Petroleum Corporation (NNPC) has signed a novation agreement with Nigerian Agip Oil Company (NAOC) on Oil Mining lease (OML) 60,61,62 and 63.

Nigerian Agip Oil Company (NAOC) Limited operates in the Niger Delta, under a joint venture arrangement with NNPC (60 per cent), NAOC (20 per cent), and Oando (20 per cent),

The Group Managing Director of the NNPC Malam Mele Kyari said at the signing agreement in Abuja, on Wednesday that the agreement will strengthen relationship with its partners.

A novation agreement transfers the contractual obligations of one party to a third party or replaces a contractual obligation with another one. All parties involved in this type of contract must consent to the changes.

He said that by the agreement the NNPC had transferred its stake to its subsidiary, the Nigeria Petroleum Development Company, its subsidiary to operate with its partners.

“The federation divested its interests in the NAOC/NNPC joint venture and that means we transfer those interests to Nigerian Petroleum Development Company (NPDC).

“The meaning of that is to grow NPDC to become a medium size upstream company that the federation and the NNPC will be proud of,’’ he said.

He added that Part of the requirement for the agreement was to have the divestment authorized by the Minister of Petroleum Resources adding that a novation agreement was needed to do so.

He said that the corporation had issues of lack of assurance that it could not deliver on its responsibilities to its partners.

He noted that the signing of agreement was a clear sign to convince the partners that NPDC would deliver to its responsibility.

He assured that the corporation would continue to support efforts that would help to grow the sector.

“Today, we have given them all the comfort and condition precedent for them to be convinced that NPDC will deliver.

“That is why our partners, NAOC and OANDO have agreed to sign novation agreement which will open a new chapter of business for NPDC and our partners,’’ he added.

This, he noted would expand the frontier of reserves and production for our country and the companies.

Nigeria News Agencyn reports that Kyari signed for the NNPC, Fiorillo Lorenzo Manging Director of NAOC signed for NAOC while Mofe Boyo Deputy Group Chief Executive, Oando signed for OANDO

Responding, the managing Director of NAOC, Mr Fiorillo Lorenzo said that the agreement was a welcome development and assured that his company would keep to the terms.

“For us, it is a very important roadmap being together to find a solution and a common ground to operate.

“This is for NAE and Agip, good development and we will continue to support the ambition and strategy”, he said.

also reports that the Corporation signed ABO head of terms agreement with Nigeria Agip Exploration limited

ABO is an oil field hosting the Oil block OML 125 which produces about 32,000 barrels a day.


Edited by Saidu Adamu/Sadiya Hamza

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Niger Delta

Belema Oil President assures OML-25 communities of effective Corporate Social Responsibility



Mr Tein Jack-Rich, Founder and President, Belema Oil Producing Ltd., has assured OML-25 host communities of effective Corporate Social Responsibility (CSR) when operation resumes on the oil facility.

Jack-Rich gave the assurance on Thursday in Kula, Akuku-Toru Local Government Area of Rivers, when he visited traditional rulers, leaders and women of OML-25 host communities.

It will be recalled that operations on the OML-25 facility was shutdown about two years ago following dispute between the host communities and shell.

He said the Federal Government was more interested in the unity and social well-being of the people of Belema, Offoin-ama and Ngeje communities.

“So, I am here to let you know that peace has been restored between Shell, Belema Oil and you, the host communities.

“The NNPC facilitated the reconciliation, and now SPDC retains the Operatorship Licence, while Belema Oil will provide operations and maintenance contracts.

“I have assured the NNPC that no matter the interest before now, everybody will be carried along, once we start operations because we are all one,” he said.

According to Jack-Rich, there will be no excuse not to develop the area because the Federal Government facilitated the reconciliation in recognition of the cries and lamentations of the host communities.

“The Federal Government led by President Muhammadu Buhari loves Kula Kingdom, and your social well-being is very dear to the president.

“So, we shall work with you the host communities to ensure that your developmental needs are considered first as we stick together.

“The essence of the struggle is to develop the communities, develop our human resources and create the needed empowerment that will advance our desire for a better life,”  he added.

The Belema Oil president thanked the Minister of State for Petroleum Resources, Chief Timipre Sylva and Mr Mele Kyari, Group Managing Director of NNPC for fast-tracking the reconciliation process.

In his remark, King Bourdillon Ekine-Oko, the traditional ruler of Belema Community, thanked the Federal Government for resolving the issue.

“Today is the greatest day of my life, I am very happy because we shall not see darkness again,” he said.

The traditional ruler commended Jack-Rich for his passion to develop the host communities and prayed God to guide him.

(Edited by Azubuike Okeh/Peter Ejiofor)

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OML 25: SPDC, Belema oil resolve dispute, resume operations in 10 days



The Nigerian National Petroleum Corporation (NNPC) with its joint venture partners, Shell Production Development Company (SPDC) and Belema OIL, have resolved the dispute on the OIL operations of Mining Lease (OML) 25.

The feuding group at the signing of the dispute closure agreement in Abuja, on Tuesday agreed that operations at the oil well would take off in the next 10 days.

The Minister of State for Petroleum Resources, Chief Timipre Silva, while signing the agreement, thanked all the parties stressing that the step signified the beginning of a new chapter in the industry.

Silva said that the aim of the ministry was to ensure an oil industry that worked and operated in harmony and in unity.

“When I came into the office, the issue was one of the problems that came on the table; there were so many letters from communities complaining about the problem.

“I just decided to invite Shell to hear its own part of the story but fortunately, the Group Managing Director of NNPC, Mele Kyari, had intervened in the matter.

“So, I have the honour now to thank him for this great intervention.

“And also thank Shell and Belema for cooperating to ensure that there is closure to this matter that has bedeviled the industry for so long,” he said.

He said that one of the aims of the Petroleum Industry was to ensure zero loss in the industry and production got to destination.

According to him, zero loss is not loses from pipelines but lost to the country, especially with assets that can produce but for some reasons bug down by leakage issues.

He said that the biggest beneficiaries of the agreement were not the companies but the communities, especially those in Belema who had been suffering since the beginning of the dispute.

The minister commended the NNPC, Shell and the Belema Oil for agreeing to resolve the dispute.

Earlier, Kyari said that the development was a big achievement for the corporation.

The NNPC boss said that the dispute around the OML 25 had been on for over two years, adding that  the end result was that communities lacked peace with the disruption of property and social lives in the area.

“For us, the most important aspect of the dispute resolution is that, at least, the communities will have their peace restored.

“At the back of it, you are aware that there is a complete stoppage of petroleum operations around the OML 25 and adjoining blocks.

“What this means is shut down of production of over 35,000 barely of oil every day in the last two years and that is enormous economic loss for all stakeholders, Nigeria and the communities.

“This is why we engaged all stakeholders and we are happy to announce today that the closure has been obtained.


“It means that the communities will have their peace back and also commence operations with the OML 25.

“That means that there is prosperity for the community and also some returns to shareholders of Belema Oil, NNPC and Nigeria at large,” he said.

Kyari commended the Belema Oil for its role and assured full engagement of the communities, adding that all the parties would be taken care of.

The NNPC boss also said that all opportunities found would be shared equitably for overall peace and development of the country.

He commended the minister of petroleum for his support and assured that the operations would soon commence in the area.

Also, the Managing Director of Shell, Osagie Okunbor said that the dispute had been for two years but “we are happy that we concluded on resolving the dispute.

“I want to convey my deep appreciation to the GMD of NNPC for the intervention to bring this issue to a closure.

“When dispute of this nature happens, every one suffers, especially the immediate family, recipient community not to talk of investors like ourselves.

“We have been in discussion with communities and Belema Oil and sometimes under the auspices of government.

“We are very pleased that we have finally brought this to a conclusion, to work on some agreements with communities to achieve speedy return to operations on that facility,” he said.

He said that to meet the plight of the host communities, Shell had paid in the Joint MOU account, over N300 million to restart community efforts it had not done because of some issues.

Okunbor said that under the joint MOU framework,  monies would be paid into communities’ accounts to execute projects to ensure that employment opportunities get to the people.

He noted that SPDC  remained the operator of the OML 25 but assured commitment to ensure that all parties would derive from the benefits.

The President and Founder, Belema OIL, Mr Jack Rich-Tein, also said the agreement signaled that stakeholders shared common interest and value of lifting the country high and strengthening relationships.

“What has been resolved is that, we have agreed to work together, SPDC and Belema Oil.

“Belema Oil is now going to be able to create a lot of employment opportunities for the communities under operations and maintenance part of the operations.

“SPDC remains the operators because they still have the licence, the communities will be happy because we will employ them and they will be able to work with SPDC.

“The key thing there is getting back to work and creating jobs for the local communities, everybody will be happy.”

He said that Belema OIL with 7.7 per cent asset would provide the operation maintenance and employ the community members through that platform.

The founder said that Belema OIL would work with shell to ensure that the development needs of the people were met.

“We have agreed that less than 10 days from today, we will visit the communities and appeal to them and then, we go to work,” he said.

The Nigeria News Agency reports that operation in OML 25 stopped since in 2017 when the host communities sent SPDC away from operating in the facility over issues of unemployment and underdevelopment among others.

Edited by Isaac Aregbesola/Dada Ahmed

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Ocean Marine delivers on effective securing, retrofitting OML 40



Ocean Marine Solutions (OMS) Ltd has restated its commitment toward effective securing and retrofitting of Oil Mining Lease 40 (OML 40) facility from Opuama to Otumara.

OMS is a leading asset company saddled with the responsibility of protecting the country’s resources from graft and illegal activities.

The company’s media consultant, Mr Omoruyi Akpata, said on Wednesday in Lagos that the company could proudly say it had delivered on this new challenge on the securing of OML 40.

Akpata said the company would continue to do its best to engage communities in dialogue and provide continuous enlightenment to the communities.

He said this would curb those perpetuating such act in the communities to stop the nefarious acts of vandalisation, infractions crude oil theft and illegal refineries.

According to him, this is not beneficial to the health and environment of the communities.

Akpata said that in the last nine years, when it comes to challenges, OMS could be counted on to conduct maritime security operations.

He said that among the mandates of OMS were then, to repair all identified valve insertion points, provide 24 hours security and surveillance watch, provide timely emergency response to address incidences of vandalism.

It was also to excavate segments that required sectional replacements and radiograph.

“Recent data gathered shows that Nigeria losses about 20 billion dollars annually to crude oil theft which is an estimated 55,210 barrels of oil per day or 1,656,281 barrels of oil stolen by oil thieves in 2011 alone.

According to him, it is to stem this hemorrhage and horrendous activities that OMS is called upon.

Akpata, however, said that a special documentary would start running on national televisions from Sept. 11, tagged “ Safeguarding the Lifeblood of a Nation’’.

(Edited by Cecilia Odey/Peter Ejiofor)

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