Business
NNPC Secures $2bn Discounts On Re-Negotiated Contracts
The Nigerian National Petroleum Corporation (NNPC), says it has secured $2 billion dollars discount from re-negotiated upstream contracts being executed by its various service providers in the last one year.
The Group Managing Director of the corporation, Dr Maikanti Baru, made this known in a message to mark one year of his headship of the organisation.
In a statement by NNPC Group General Manager, Mr Ndu Ughamadu, Group Public Affairs Division, Baru said that the discount was got in the quest to continually drive down the high cost of production in the oil industry.
He said that the corporation had successfully reduced cost of producing a barrel of crude from 27 dollars per barrel to 22 dollars per barrel.
He said that in the upstream segment of the sector, cost reduction and efficiency were key features that the corporation would focus attention on.
Baru said that there had been significant increase in crude oil reserves and production, averaging national daily production of 1.83 million barrels of oil and condensate.
He disclosed that currently, “the year-to-date 2017 average production hovers around 1.88 million barrels’’.
He said that with improvement in security and resumption of production on Forcados Oil Terminal (FOT) and Qua Iboe Terminal pipelines, average national production was expected to increase.
According to him, it will surpass 2017 target of 2.2 million barrels of oil and condensate per day.
“In October last year, the Owowo Field, located close to the producing ExxonMobil-operated Usan Field was found, and the Field’s location could allow for early production through a tie-back to the Usan Floating Production Storage and Offloading.
“The Field added current estimated reserves of one billion barrels to the national crude oil reserves.
“The corporation has grown the production of the Nigerian Petroleum Development Company (NPDC), NNPC’s flagship Upstream Company, from 15,000 barrels of oil per day to the current peak-operated volume of 210,000 barrels per day in June, 2017.
“The ownership of Oil Mining Licence, OML13, has been restored to NPDC following a presidential intervention, with first oil from the well expected before the end of the year.
“The confidence of the NNPC Joint Venture (JV) partners to pursue new projects has been rekindled following the repayment agreements for JV cash call arrears.
“The arrears were negotiated and executed for outstanding up to end 2015 by all the International Oil Company Partners,” Baru said.
He also said that gas supply to power plants and industries in the country had significantly increased.
Baru listed NNPC’s accomplishments during the period as completion of repairs of vandalized 20″ Escravos-Lagos Pipeline System ‘A’ in August, 2016 which ramped up Chevron Escravos Gas plant supply from nil to 259 million standard cubic feet per day (mmscfd).
Another, according to him, is the completion of repairs of the vandalized Chevron offshore gas pipeline in February, 2017 which took the company’s gas supply to 430mmscfd.
He said that others were completion of repairs on vandalized 48″ FOT export gas pipeline in June, 2017 and inauguration of NPDC’s Utorogu NAG2 and Oredo EPF 2 gas plants.
The GMD explained that the FOT export pipeline had reactivated shutdown gas plants, including Oredo Gas Plant, Sapele Gas Plant, Ovade Gas Plant, Oben and NGC Gas Compressors.
He said that the concomitant effect of the attainments was a significant growth in domestic gas supply in the last few months.
He added that during the period, domestic gas supply increased from average of 700mmscf in July, 2016 to an average of 1,220mmscfd currently, with about 75 per cent of the volume supplied to thermal power plants.
“A lot of Generation Companies, as a result, are rejecting gas due to the inability of Transmission Company of Nigeria to wheel-out the power generated”, Baru said.
He also said that since he resumed office, resources had been deployed to the Benue Trough, with exploration efforts commencing there in earnest.
“Seismic data acquisition is ongoing in the frontier region using the services of Integrated Data Services limited (IDSL) and her partners to pursue government’s aspiration to grow the reserves base of the country.
“Drilling activities are expected to commence in Benue Trough in the fourth quarter of this year.
“We are working with the security agencies for an early return to the Chad Basin.
“Drilling activities will be a priority on resumption while continuing with seismic data acquisition with improved parameters,” he projected.
In the downstream sector, Baru explained that NNPC had stabilized the market with sufficient products availability across the country through modest local refining efforts as well as Direct Supply Direct Purchase (DSDP) scheme.
According to him, the scheme has saved the nation about N40 billion in 2017.
“We have also commenced the resuscitation of our products transportation pipelines network, thus enabling us to move products to depots at faster rate and cheaper distribution costs to consumers.
“The Aba, Mosimi, Atlas-Cove and Kano depots have all been re-commissioned and are currently receiving products, thereby enhancing products availability across the country,” he said.
Baru said that under him, NNPC had improved capacity utilization of the refineries with the projection that they would attain supply of 50 per cent of non-gasoline white products, including diesel and kerosene, to the nation.
“After more than seven years of dormancy, the Asphalt Blowing Unit of the Kaduna Refining and Petrochemical Company (KRPC) was resuscitated to meet road construction needs in the country.
“Efforts are ongoing to secure third party financing to revamp the refineries to their full operational capacities,” he said.
He commended the corporation’s staff and industry’s in-house unions – Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for their support.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.