News
Despite operational problems, NNPC Ltd’s state of emergency on crude oil production yields 1.61mbpd in July 2024
By Kayode Sanni-Arewa
The declaration of a state of emergency by the Nigerian National Petroleum Company Limited [NNPC Ltd] on crude oil production has yielded a positive outcome with the increase recorded in daily production from 1.25 million barrels per day [mbpd] in June to 1.61mbpd as of July 23, 2024.
Group Chief Executive Officer of NNPC Ltd, Mr Mele Kyari had declared the state of emergency at the end of June/early July in a speech at the 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja.
Mr Kyari said the move was directed towards increasing Nigeria’s crude oil production and growing its reserves.
According to him “We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation.”
He had explained that a detailed analysis of assets showed that Nigeria could conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remained the inability of players to act in a timely manner.
“War will help NNPC Ltd and its partners to speedily clear all identified obstacles to effective and efficient production such as delays in procurement processes, which have become a challenge in the industry,” he said.
And about a month after, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has just announced the increase in the daily crude oil production in the country from 1.25 million barrels per day (mbpd) in June to 1.61 mbpd as of July 23rd.
The increment in output, according to the Commission, was in spite of significant operational challenges especially affecting terminals at Bonny, Brass, and Forcados, prompting the Commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.
The announcement by the NUPRC has generated positive sentiments in the oil sector of the national economy with its potential for more revenue accretion to the federal government’s coffers.
Chief Executive Officer of the Commission, Engineer Gbenga Komolafe dropped the piece of good news at the House of Representatives’ Special Committee’s Two-Day Public/Investigative Hearing on Oil Theft/Losses in Abuja at the weekend.
An elated Komolafe said that Nigeria remained Africa’s largest producer of crude oil, boasting proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day (mbpd).
According to him: “Nigeria is facing significant challenges, especially affecting terminals at Bonny, Brass, and Forcados. This has prompted the Commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.
“The NUPRC has introduced several innovative measures to enhance transparency and accountability.”
He listed other innovations towards accountability to include the Advanced Cargo Declaration (ACD) Regulation that ensures no crude oil is exported without proper accounting and that assigns a unique identification number (UIN) to each cargo; the Upstream Metering Regulation, which mandates reliable metering systems to account for all hydrocarbon production and exports; and, real-time cargo tracking and digital documentation to improve visibility and efficiency in cargo operations.
He explained that with a mandate to oversee the exploration, development, production, and lifting operations of crude oil and natural gas, “the NUPRC regulates both the technical and commercial aspects of operations in the nation’s Upstream Petroleum Sector, ensuring optimal tax revenue generation, royalty collection, and cost benchmarking.
“Other areas of major focus for the Commission include ensuring business continuity and production sustainability at low costs, accurate measurement and timely payment of royalties, uninterrupted crude oil and natural gas supply to the domestic market, and maintaining safety, health, and environmental standards.
“The Petroleum Industry Act 2021 grants the Commission several statutory mandates in the areas of calibration and certification of metering systems and equipment, publication of reports and statistics on upstream operations, regulatory oversight and issuance of quality and quantity certificates for exports, and determination of fiscal prices for crude oil and condensate.”
Komolafe stated that the strategies of the Commission aimed to optimise production, enhance regulatory oversight, and ensure accurate measurement and accounting.
He further said that the Commission had prioritised improving rig availability and reducing non-productive time through unlocking heavy crude oil reserves via industry workshops.
“These initiatives also support new Petroleum Prospecting License (PPL) awardees to achieve their first Oil, among other initiatives,” he explained.
He reaffirmed NUPRC’s commitment to continued engagements with stakeholders to optimise Nigeria’s Oil production and maintain its leadership position in Africa’s energy sector.Despite operational challenges, NNPC Ltd’s state of emergency on crude oil production yields 1.61mbpd in July 2024
The declaration of a state of emergency by the Nigerian National Petroleum Company Limited [NNPC Ltd] on crude oil production has yielded a positive outcome with the increase recorded in daily production from 1.25 million barrels per day [mbpd] in June to 1.61mbpd as of July 23, 2024.
Group Chief Executive Officer of NNPC Ltd, Mr Mele Kyari had declared the state of emergency at the end of June/early July in a speech at the 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja.
Mr Kyari said the move was directed towards increasing Nigeria’s crude oil production and growing its reserves.
According to him “We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation.”
He had explained that a detailed analysis of assets showed that Nigeria could conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remained the inability of players to act in a timely manner.
“War will help NNPC Ltd and its partners to speedily clear all identified obstacles to effective and efficient production such as delays in procurement processes, which have become a challenge in the industry,” he said.
And about a month after, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has just announced the increase in the daily crude oil production in the country from 1.25 million barrels per day (mbpd) in June to 1.61 mbpd as of July 23rd.
The increment in output, according to the Commission, was in spite of significant operational challenges especially affecting terminals at Bonny, Brass, and Forcados, prompting the Commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.
The announcement by the NUPRC has generated positive sentiments in the oil sector of the national economy with its potential for more revenue accretion to the federal government’s coffers.
Chief Executive Officer of the Commission, Engineer Gbenga Komolafe dropped the piece of good news at the House of Representatives’ Special Committee’s Two-Day Public/Investigative Hearing on Oil Theft/Losses in Abuja at the weekend.
An elated Komolafe said that Nigeria remained Africa’s largest producer of crude oil, boasting proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day (mbpd).
According to him: “Nigeria is facing significant challenges, especially affecting terminals at Bonny, Brass, and Forcados. This has prompted the Commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.
“The NUPRC has introduced several innovative measures to enhance transparency and accountability.”
He listed other innovations towards accountability to include the Advanced Cargo Declaration (ACD) Regulation that ensures no crude oil is exported without proper accounting and that assigns a unique identification number (UIN) to each cargo; the Upstream Metering Regulation, which mandates reliable metering systems to account for all hydrocarbon production and exports; and, real-time cargo tracking and digital documentation to improve visibility and efficiency in cargo operations.
He explained that with a mandate to oversee the exploration, development, production, and lifting operations of crude oil and natural gas, “the NUPRC regulates both the technical and commercial aspects of operations in the nation’s Upstream Petroleum Sector, ensuring optimal tax revenue generation, royalty collection, and cost benchmarking.
“Other areas of major focus for the Commission include ensuring business continuity and production sustainability at low costs, accurate measurement and timely payment of royalties, uninterrupted crude oil and natural gas supply to the domestic market, and maintaining safety, health, and environmental standards.
“The Petroleum Industry Act 2021 grants the Commission several statutory mandates in the areas of calibration and certification of metering systems and equipment, publication of reports and statistics on upstream operations, regulatory oversight and issuance of quality and quantity certificates for exports, and determination of fiscal prices for crude oil and condensate.”
Komolafe stated that the strategies of the Commission aimed to optimise production, enhance regulatory oversight, and ensure accurate measurement and accounting.
He further said that the Commission had prioritised improving rig availability and reducing non-productive time through unlocking heavy crude oil reserves via industry workshops.
“These initiatives also support new Petroleum Prospecting License (PPL) awardees to achieve their first Oil, among other initiatives,” he explained.
He reaffirmed NUPRC’s commitment to continued engagements with stakeholders to optimise Nigeria’s Oil production and maintain its leadership position in Africa’s energy sector.
News
Rupture In PDP Governors’ Forum deepens
By Ojomah Austin.
The evolving fall-out, which comes barely days to the contentious National Executive Committee (NEC) of PDP, followed a back and forth between the Federal Capital Territory (FCT) Minister, Nyesom Wike and the Governors forum, who declared support for Rivers State governor, Siminalayi Fubara to be made leader of the party in the state.
After a meeting with some members of the party’s National Working Committee (NWC) in Bauchi on Wednesday, Governor Mohammed, said “According to our party’s constitution, any leadership vacancy should be filled by someone from the region where it originated,” stressing that Damagum would be replaced soon considering that he hails from North East and not the North Central.
Same day, Makinde, during the groundbreaking of the upgrading of Ladoke Akintola Airport, Ibadan, to an international airport, which was attended by another set of NWC members, led by Damagum, said he would support whatever decision the Damagum-led NWC would take to reposition the party.
Damagum, who is considered a close ally of Nyesom Wike, the Federal Capital Territory (FCT) Minister, was appointed acting national chairman after the removal of Iyorchia Ayu in June 2023.
Meanwhile, the Board of Trustees (BoT) of the PDP led by Senator Adolph Wabara, met with members of the National Assembly caucus in Abuja.
The close door meeting comes barely hours after the BoT met with Wike in Abuja.
While Wabara refused to comment on the essence of the meeting with the lawmakers, it was noticed that most of the lawmakers didn’t honour the invitation.
News
Tears As Man Takes Own Life Over Tinubu’s Govt Hardship
By Mario Deepromoter
Sad development in Marika village, Kiyawa Local Government, Jigawa, where a 40-year-old man, Jibrin Adamu, committed suicide by hanging himself.
According to eyewitnesses, Adamu’s lifeless body was discovered in a classroom at Miftahul Khairat Islamiyya and Primary School Gurdiba on Thursday.
Police spokesperson DSP Lawan Shiisu Adam confirmed the incident, stating that preliminary investigations revealed Adamu had struggled with mental health issues.
“Police received a report on Thursday that at about 1830hrs, a tragic incident was reported at the Command headquarters that one Jibrin Adamu ‘m’ age 40yrs of Jigawar Maroka village, Kiyawa LGA has committed suicide by hanging himself over the ceiling at Islamiyya school,” the Police spokesperson told Daily Post.
The Jigawa State Commissioner of Police, CP AT Abdullahi, has instructed officers to conduct a thorough investigation into the incident.
News
Just in: Dangote Petrol Now Available at N765.99 Per Litre
By Mario Deepromoter
11plc, Total Energies, AA Rano, and other marketers have begun lifting Dangote Petrol through Nigerian National Company (NNPC) Trading Limited for N765.99 to retail outlets nationwide.
Findings showed some petroleum marketers who were able to complete their payment process on the NNPC trading payment portal commenced the lifting of petrol earlier this week under the existing agreement between marketers and the refinery.
Tunji Oyebanji, managing director, 11Plc confirmed to BusinessDay on Thursday evening that some marketers have started lifting the products at N765.99 from Dangote Refinery through NNPC who remain the sole off-taker of product.
“We were among the first marketers to complete the payment on the NNPC portal. We have no direct arrangement with the refinery,” Oyebanji said.
It was gathered that NNPC Retail, 11plc, Total Energies, A.A Rano are among the marketers that have picked up products from the refinery.
He added, “We don’t know the contractual financial arrangement between NNPC and the refinery but what I can confirm is we are buying at N765.99 from NNPC to lift Dangote petrol”.
Efforts to get the Independent Petroleum Marketers Association of Nigeria (IPMAN) to confirm if its members have picked up products at the Dangote Refinery proved abortive at the time of writing this report.
See also Nigeria’s Petrol Landing Cost Revealed
Adedapo Segun, executive vice-president, downstream at NNPC said marketers cannot purchase petrol directly from the refinery because the product is still sold at a subsidised rate.
“That is the same thing happening with Dangote. I said earlier that Dangote is a company and it is going to sell at market price,” he told Journalists.
According to Segun, “The market value of PMS is still higher than what N766 or N765 or N799 that NNPC is selling.
“The situation has not changed there. So, NNPC’s off-taking is only because the others would not buy at the price Dangote will be willing to sell, which is reasonable.
“As soon as the price allows for it, you will see the marketers go to Dangote and buy.”
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