Connect with us

News

Eurafric Debunks DPR’s Claims On Okrika Marginal Field

Published

on

Eurafric Energy Limited has debunked claims by the Federal Government on the revocation of the Dawes Island marginal field and the decision to re-award it to Petralon 54.
The marginal field is owned by a Joint Venture, involving Eurafric, Tako and Petralon.
Addressing the House of Representatives Committee on Public Petitions, Director, Department of Petroleum Resources, Sarki Auwulu, had presented some reasons, including the alleged inactiveness for 17 years.
However, in his submission, Managing Director, Eurafic Energy, Onoriode Odjegba, faulted DPR’s claim that the field was inactive for 17 years.
Odjegba, who attributed it to the restiveness in the Niger Delta, which denied the company access to the field, stated; “Two Force Majeure, FM events of about 10 years cumulatively, severely affected field development activities from license award to date.
“The first FM event which spanned seven years from 2004 to sometime in 2011, was occasioned by militancy within the field area.
“At the height of this, Shell Petroleum Development Company also declared FM; evacuating 235 non-essential personnel from two oil fields, cutting oil production by 30,000 barrels per day.
“Similarly, our technical partner, PA Resources of Sweden declared FM as well and exited the country. This situation persisted until the government of President Umaru Musa Yar’Adua commenced the Presidential Amnesty Programme which restored normalcy to the region.
“This fact was corroborated by the DPR in the Dawes Island Marginal field extension letter of March 28, 2011, when it stated, ‘Our records show that you have carried out some activities but not attained production.
“This is in recognition of the fact that there was a spate of restiveness that pervaded the Niger Delta region in the past few years which almost paralysed exploration and production activities in the region.
“The second FM, which occurred between January and June, 2018, involved the seizure of our shuttle vessel, the MT Breakthrough by the Nigerian Navy and subsequently, EFCC.
“This hampered our ability to evacuate produced crude oil and truncated our first extended well test. The ripple effect, however, prevailed till mid-2019 when the DPR gave approval for re-execution of the extended well test.”
He also said, “Although the DPR collectively held Eurafric, Tako and Petralon liable for delay in developing the field, Eurafric wondered why the agency said Petralon has the capacity to make the field viable.”
Expressing its commitment to the development of the field, the managing director, who noted that substantial investments were made over the years, said, “In appreciation of such expenses, his predecessor (Auwulu), made an exemption for fields on stream or showing significant progress towards production during the licence extension of 2015.
“At that time, the DPR utilised a Quantitative Evaluation Criteria and Scoring Chart for assessing performance wherein Fields which scored 70 points and above-termed Fields on stream or showing significant progress towards production, was given a clean bill and granted licence approval.”
He also, said, “Following the restoration of calm in the Niger Delta, Eurafric, together with its partners (Petralon and Tako E&P) successfully executed subsurface studies, mobilised to site and drilled a well.
“As a key part of the process leading to a submission of a Field Development Plan, FDP, Eurafric and partners applied for and received from DPR a permit to execute an Extended Well Test, EWT. Only after the EWT can an FDP be submitted. The licences were revoked just as the EWT was concluded.”
Eurafric described the claim that it had no financial or material investment in the asset as unfounded and grossly misleading, noting that it has funded 75 per cent of all expenses on the field to date.
However, the lawmakers reversed the award of the field to Petralon 54 Limited, stressing that DPR’s action was not fair to all parties.
The committee explained that since the DPR had admitted the JV relationship between Eurafric, Tako, and Petralon, the three parties should benefit from any re-award of the licence.
DPR had revoked 11 marginal field operators’ licences for non-performance, including Dawes Island marginal field in Oil Prospecting Lease, OPL 2006, Rivers State, in April, 2020.
Reacting, Eurafric had filed a motion on notice challenging the revocation and applied for an interim injunction restraining the action.
In its June, 2020 ruling, the Federal High Court in Lagos restrained the Federal Ministry of Petroleum Resources from accepting bids for eight marginal oilfields, including that of Dawes Island pending determination of the case.
But DPR had awarded the field to Petralon 54 Limited and its partners during the recent marginal oilfield bid round, a development which made Eurafric drag it before the House of Representatives Committee.
It would be recalled that the DPR had in April, 2021, also revoked four Oil Mining Licences (OML), belonging to Addax Petroleum due mainly to the alleged non-development, before President Muhammadu Buhari ordered it to return them to Addax.

Continue Reading

News

Tinubu Orders Security Chiefs To Restore Peace In Plateau, Benue, Borno

Published

on

President Bola Tinubu has ordered a security outreach to the hotbeds of recent killings in Plateau, Benue and Borno States, to restore peace to areas wracked by mass killings and bomb attacks.
National Security Adviser, Nuhu Ribadu, disclosed this to State House correspondents after a four-hour security briefing with the President at the Aso Rock Villa, Abuja on Wednesday.
“We listened and we took instructions from him. We got new directives…to go meet with the political authorities there,” Ribadu told reporters, adding that Tinubu directed them to engage state-level authorities in the worst-hit regions.
Director-General, National Intelligence Agency, Mohammed Mohammed; Chief Defence Intelligence of the Nigerian Army, Gen. Emmanuel Undianeye; Director-General, Department of State Services, Oluwatosin Ajayi and Chief of Staff to the President, Femi Gbajabiamila, appeared for the briefing.
The Tide’s source reports that in Plateau State, inter-communal violence between predominantly Christian farmers and nomadic herders spiralled into gory slaughter when gunmen stormed Zikke village in Bassa Local Government early on April 14, killing at least 51 people and razing homes in a single night.
In Benue, at least 56 people were killed in Logo and Gbagir after twin assaults blamed on armed herders.
Meanwhile, in Borno State, eight passengers perished and scores were injured when an improvised explosive device ripped through a bus on the Damboa–Maiduguri highway on April 12.
Ribadu explained that after an extensive briefing, intelligence chiefs received fresh instructions to restore peace, security and stability across Nigeria.
“In particular, Tinubu had ordered immediate outreach to the political authorities in Plateau, Benue and Borno States, and the defence team had gone round those States to carry out his directives and report back.
“We gave him an update on what has been the case and what is going on, and even when he was out there, before coming back, he was constantly in touch. He was giving directives. He was following developments, and we, in charge of the security, got the opportunity today to come and brief him properly for hours. And it was exhaustive.
“We listened and we took instructions from him. We got new directives. The fact is, Mr. President is insisting and working so hard to ensure that we have peace, security and stability in our country. We gave him an update on what is going on, and we also assured him that work is ongoing and continues.
“We also carried out his instructions. We went round, the chiefs were all out where we had these incidents of insecurity in Plateau State, Benue State, even Borno, these particular three states, and we gave him feedback, because he directed us to go meet with the political authorities there,” the NSA explained.
Ribadu described Tinubu as “worried and concerned,” and said he directed that all security arms be deployed around the clock.
The government, he added, believes these steps have already produced measurable improvements, even if the situation is not yet 100 per cent safe and secure.
“He’s so worried and concerned, he insisted that enough is enough, and we are working and to ensure that we restore peace and security and all of us are there. The armed forces are there, the Civil Police, intelligence communities, they are there.
“They are working there 24 hours, and we feel that we have done enough to believe that we are on the right course, and we’ll be able to be on top of things,” Ribadu stated.
The NSA emphasised that combating insecurity was not solely a Federal Government responsibility.
He stated, “The issue of insecurity often is not just for the government. It involves the subunits. They are the ones who are directly with the people, especially if some of the challenges are more or less bordering on community problems.
“Not entirely everything is that, but of course it also plays a significant role. You need to work with the communities, the local governments, and the governors, especially the governors.
“The President will continue to direct that. We should be doing that, and that’s what we are able to. We are very happy and very satisfied with the instructions and directives given by Mr. President this evening.”
In Borno State, the NSA noted that while violence had surged in recent months, the insurgents refused to accept defeat.
He warned that most recent casualties there resulted from improvised explosive devices—”cowardly” IED attacks targeting civilians—and from opportunistic raids that follow any lull in fighting.
“We are getting the cooperation of the leadership at the state level, and everybody. It’s not 100 per cent…but we are going there.
“When you are having peace and you are beginning to get used to it, if one bad incident happens, you forget the periods that you enjoyed peacefully,” he added.
He paid tribute to the “many who do not sleep, who walk throughout, who do not go for any break or holiday”—the soldiers, police and intelligence officers whose sacrifices have created the fragile calm Nigerians now experience.
“They will continue to be there,” he said, adding, “Things have changed in this country…we are on the right track and we will not relent. We will not sit down; we will not stop until we are able to achieve results.”

Continue Reading

News

FG Laments Low Patronage Of Made-In-Nigeria Products

Published

on

A Federal Government agency – the National Agency for Science and Engineering Infrastructure, has decried the low patronage of Nigerian-made products by Nigerians.
The agency identified some challenges leading to the low patronage of the local products as affordability and public perception, among others.
Speaking during a stakeholders meeting organised by the agency in Akure, Ondo State capital, yesterday, the Deputy Director of Engineering at NASENI, Mr Joseph Alasoluyi, said Nigerians preferred buying foreign goods compared to local goods.
Alasoluyi, however disclosed that the agency had trained over 50 participants in the production of hand-made products, in a bid to ensure Nigeria-made products are patronised.
He explained that NASENI was set up to promote science, technology, and engineering as a foundation for Nigeria’s development and currently operates 12 institutes nationwide to achieve its objectives.
According to him, the aim of President Bola Tinubu, who is also the overall chairman of NASENI, was to ensure high production and patronage of “our local products thereby creating employment opportunities for many.”
He said, “The idea of this programme is to interface to ensure we produce products using our indigenous technology. This is what NASENI is out for, to ensure that homegrown technologies are encouraged.
“We are out there to ensure we integrate efforts to ensure that local technology is used to develop products within the resources we have.
“ The NASENI’s ‘3 Cs’ – Creation, Collaboration, and Commercialisation – that define NASENI’s strategic mandate: Creating innovations through research, Collaborating with partners to develop and refine products, and Commercialising these solutions to benefit the economy.
“Our achievements include the development of solar irrigation systems, CNG conversion centres, building machines capable of producing up to 1,000 blocks per hour, 10-inch tablets, locally made laptops, and electric tricycles (Keke Napep) set for market launch.”
In his remarks, the Deputy Vice Chancellor of the Federal University of Technology, Akure, Prof. Samuel Oluyamo, blamed the Federal Government for not properly funding research in the varsities, also noting that many research outputs were left halfway due to lack of funding and weak linkages between research institutions and industry.
Oluyamo also queried the Federal Government’s commitment to funding research and development, saying many academic innovations remained on the shelve due to a lack of support for commercialisation and poor infrastructure.
“Until we upscale research into mass production, technological growth will remain elusive. The government is not funding research in the universities enough. Thank God for TETfund that is trying in this regime. The major interest in beefing up research in universities and research institutions is really not there,” he said.

Continue Reading

News

Nigeria Seeks Return To JP Morgan Bond Index

Published

on

The Director-General of the Debt Management Office, Patience Oniha, has said that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index and renew investors’ confidence.
Oniha disclosed this on Wednesday at a Nigerian Investors’ Forum on the sidelines of the World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
The DMO boss explained that Nigeria has enjoyed favourable credit assessment among rating agencies in recent times on the back of the sweeping reforms initiated by the Central Bank of Nigeria.
Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings of seven Nigerian banks and two bank holding companies to ‘B’ from ‘B-‘, noting that the outlooks are Stable.
The affected issuers are Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Limited, Guaranty Trust Holding Company Plc, First HoldCo Plc, First Bank of Nigeria Ltd, Fidelity Bank Plc and Bank of Industry Limited.
The upgrades of the Long-Term IDRs of the banks followed the recent sovereign upgrade and reflect Fitch’s view that Nigeria’s sovereign credit profile has become less of a constraint on the issuers’ standalone creditworthiness, the rating agency said.
Fitch also upgraded Nigeria’s Long-Term IDRs to ‘B’ from ‘B-‘ on 11 April, a decision that reflected increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
Nigeria was removed from the JP Morgan index in 2015 ostensibly due to its deviation from orthodox monetary policies and influence of capital control in its management of foreign exchange.
Principally due to reduction in oil revenues at the time, Nigeria introduced currency restrictions to defend the naira after it failed to halt a dangerous slide with burning of dollar reserves. The bank had earlier warned Nigeria to restore liquidity to its currency market in a way that allowed foreign investors tracking the index to conduct transactions with minimal hurdles.
“Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.
Nigeria was listed in JP Morgan’s emerging government bond index in October 2012, after the Central Bank removed a requirement that foreign investors hold government bonds for a minimum of one year before exiting.
The JP Morgan Government Bond Index reflects investor confidence and opens doors to billions of investment flows, making Nigeria’s proposed re-entry a positive signal to the market and investors.
Oniha explained that talks with JP Morgan were ongoing and had gained momentum in recent times due to the stability created by the FX market reforms.
“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” the DMO DG said.

Continue Reading

Trending