GRBusiness
Stakeholders warn, FG could ignite fresh crisis in Ogoni
The Federal Government could ignite a crisis, if its planned resumption of oil exploration in Ogoniland goes ahead without the resolution of key issues.
The warning by stakeholders in the Niger Delta is coming on the heels of last weekend’s meeting between the leadership of the Movement for the Survival of the Ogoni People (MOSOP) and the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu. The meeting had sought to find solutions to the crisis in Ogoniland.
Shell Petroleum Development Company (SPDC) was forced to stop exploration and leave Ogoniland in 1993, following an upheaval that caused the death of several Ogoni persons.The President of the Ijaw Youth Council (IYC), Eric Omare, told The Guardian that the meeting proves the Federal Government cares nothing about the tragic experiences the Ogoni people have gone through, including the murder of Ken Saro- Wiwa and other prominent Ogoni activists.
“Government has not learnt anything. What this means is that it values oil more than the Ogoni people and their lives. They are yet to clean the environment and they are talking about the resumption of oil production. I don’t think they will have an environment conducive to oil exploration in Ogoni,” said Omare.
South-South Zonal Director, Civil Liberty Organisation, Steven Obodoekwe, said since government and the oil companies have not shown commitment to cleaning up the devastated Ogoni environment, their desperation to resume oil production therefore amounts to callousness and “fresh corporate terrorism.”
The ideal thing would have been for the government to ensure the environment is completely restored before contemplating renewed exploration in the area, stressed Obodoekwe.A Shell spokesman, who pleaded anonymity, told The Guardian that though the company’s lease for Oil Mining Leases (OML11) has been renewed, it does not cover the over 30 Ogoni oilfields.
He explained that contrary to the allegation that Shell wants to return to Ogoni through the backdoor, the company which was forced out of Ogoni in 1993 following an uprising does not intend to resume oil production. Shell’s leases for OML 11 was expected to expire by June 2019.
There has been growing tension in Ogoni since the National Petroleum Investment Management Services (NAPIMS) wrote to Shell last year that it had given preliminary approval to a RoboMichael Limited which had expressed interest in obtaining licensing rights of Ogoni oilfields. It was learnt that Shell had already given its approval to RoboMichael.
The endorsement of RoboMichael Limited by NAPIMS and Supreme Council of Ogoni Traditional Rulers respectively had caused MOSOP and other groups to allege that RoboMichael was Shell’s proxy, an allegation which the oil major has denied.
Amnesty International’s Business and Human Rights Researcher, Mark Dummett, regretted failure by the government and Shell to implement recommendations by the United Nations Environment Programme (UNEP).
“Following its groundbreaking survey of 2011, UNEP clearly laid out the path by which the environment of Ogoniland could be made free of the contamination that has devastated it for so long.
The government has created the Hydrocarbon Pollution Remediation Project (HYPREP) to organise the cleanup, but little has so far been achieved, and there is no transparency over its plans,” Amnesty’s Rights researcher Dummett said.
MOSOP had told Kachikwu it was not opposed to discussions on the resumption of oil production, but that the consent of the people must first be obtained.It stated “unequivocally” that the contentious issue involves three main parties – the Federal Government, the oil industry led by Shell, and the Ogoni people. “Any attempt to deal with any aspect of the issue must necessarily involve the three principal actors, as stakeholders in a joint project of finding a lasting solution to the Ogoni crisis,” it said.
MOSOP, therefore, warned it would “resist the present attempt by the Federal Government and Shell Petroleum Development Company of Nigeria to arbitrarily award the Ogoni fields in Oil Mining Lease (OML) 11 without consultation with the Ogoni community.”
The President of the movement, Legborsi Pyagbara, stressed that besides the environmental damage that attended Shell’s operations, Ogoni people are distressed about their lack of participation in the value chain of the oil industry, including employment; the absence of well-defined Community Benefit Sharing Agreements (CBAs); and a sustainable development process that recognises the rights of the people to Free, Prior and Informed Consent (FPIC), in accordance with global best practices.
Pyagbara described attempts in the last few years to use money to “buy support” from the people as “condemnable” and “reprehensible”. Such move, he said, is “against the spirit of transparency and accountability required in the extractive sector.”
He cautioned: “Societies the world over have met this challenge through deliberate and clear actions, and the Federal Government should urgently look in this direction. For, if the Nigerian government fails to protect the Ogoni people, it certainly cannot protect itself. History is replete with the ruins of societies that were built on the sort of injustices that have pervaded Ogoniland over the years.”
The MOSOP President urged the government to set up a better framework of engagement under which the parties involved would have a level-playing field for discussions on the future of oil production in Ogoniland.
According to him, Nigeria will be judged, not by its false claims about developments in Ogoniland, but by how it actually protects the weak, the vulnerable and those whose lives have been imperiled by reckless oil exploration of multinationals.
“Pyagbara disclosed that the Ogoni people, at the behest of MOSOP, have set up a strategic committee representing the various interests in Ogoni, headed by Prof. Ben Naanen, an economic historian and resource governance expert.
“This will develop a template to harmonise existing positions and guide the people in engagements with the Federal Government and the oil industry. Once the people adopt the template, Ogoniland will be ready for engagement and consultation on oil exploration, he said.
Meanwhile, youths in the Niger Delta have been urged to create an enabling business environment to attract investors to the region. SPDC’s General Manager, External Relations and Social Investment, Mr. Igo Weli, disclosed this while delivering a public lecture organised by the Rivers State University’s Centre of Excellence in Marine Engineering and Offshore Technology.
Speaking on the theme, ‘An enabling Business Environment – Implication for Future Careers in Oil and Gas Industry’, Weli noted that unlike in past years, many companies have left the region due to its unfriendly business atmosphere.He stressed the need for proper conflict management to reverse the situation.
.Guardian.ng
…OML 13 Asset Eyes 80,000 bpd by End of 2025
In a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.
It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain.
During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.
He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.
Energy
NNPC Ltd Set to Supply 100mmscf/d Gas to Dangote Refinery
…10-year Deal to Boost Local Production, Revamp Industrial Growth, reports Ikenna Oluka
The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
This development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The agreement represents a milestone for both NNPC Ltd and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country.
Women in Maritime Africa (WIMAfrica), in a significant step forward for female representation in the Maritime field, held a strategic meeting with SIFAX Group at the SIFAX headquarters on November 12th, 2023.
The two organizations aim to foster mentorship, sponsorship, and skills development programs that will empower women to pursue and excel in maritime careers, where female representation remains below 1%. Key figures from WIMAfrica, including Continental Vice President Mrs. Carolyn Ufere and Nigeria’s President Mrs. Rollens Macfoy, emphasized the need for corporate partnerships to expand access to training and professional networks for women. SIFAX’s Coordinating Director, Mrs. Wunmi Eniola-Jegede, expressed the Group’s commitment to gender inclusivity and highlighted the presence of women in leadership roles across its various sectors.
In closing, WIMAfrica extended an invitation for SIFAX Group to support its upcoming conference in Lagos, themed “New Economy and Moving Forward for the Next Generation,” which seeks to inspire young women to explore maritime career paths like engineering and marine security. The collaboration between WIMAfrica and SIFAX Group marks a crucial move toward an inclusive future in Africa’s maritime industry.
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