The Minister of State for Petroleum Resources, Chief Timpre Sylva, has tasked the Nigerian Liquefied Natural Gas Limited (NLNG) to play a pivotal role in the domestic gas expansion project.
Sylva, who made this known during the inauguration of the NLNG Corporate headquarters in Port Harcourt, Rivers State, stated that the Federal Government, Rivers State and host Communities would benefit from the development.
Group Managing Director of NNPC, Malam Mele Kyari, represented by the Chief Financial Officer, Umar Ajiya, in a goodwill message, said that the event was a demonstration of commitment to excellence.
He said the Corporation was prepared to partner with other stakeholders to expand the NLNG business from Train 7, 8,9 and 10.
Also speaking, the Managing Director of the NLNG, Engr. Tony Attah, described the ceremony as an actualisation of commitment to Rivers State and to Nigerians as a successful business model that is poised to delivering value.
Also in the week, the NNPC and its Production Sharing Contract (PSC) partners – Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) signed agreements to renew Oil Mining Lease (OML) 118 for another 20 years.
The five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
NNPC boss said that over 10billion dollars of investment would be unlocked as a result of the agreements.
Kyari said the agreement also signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC) and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria.
He disclosed that the deal would yield over 780 million dollars in immediate revenues to the Federal Government while it would also free the parties from over 9 billion dollars in contingent liabilities.
“Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business,” Kyari said.
He thanked President Muhammadu Buhari, the Minister of State for Petroleum Resources, Chief Timpre Sylva, and the NNPC Board of Directors for enabling the Corporation to achieve this laudable landmark.
The Chief Operating Officer, Upstream, Mr Adokiye Tombomieye, also spoke on the agreements, noting that it would benefit the country in many ways.
The Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Mr Bala Wunti and the Group General Manager, Corporate Planning and Strategy of the Corporation, Mrs Oritsemeyiwa Eyesan, who were all part of the resolution of the protracted dispute said the negotiations with the Partner contractors would further boost the nation’s production outlook.
Also speaking at the event, the Country Chair of Shell Companies in Nigeria, Mr Osagie Osunbor, said the OML 118 renewal agreement would remain a watershed in the history of deep-water investments in Nigeria, assuring that the giant stride would further bolster investor confidence in the country.
Speaking in a similar vein, the Managing Director of SNEPCo, Mr Bayo Ojulari, noted that the agreements marked the end of a 12-year dispute that had marred business relationship and affected trust and investment.
“Today, we have signed agreements that define the future of deep-water for Nigeria. This is the first deep-water block that was developed in Nigeria and it is also the first one that we are resolving all the disputes that will lay the foundation for the resolution of other PSCs,” Ojulari said.
On their parts, the Managing Directors of Total, Mike Sangster, Exxonmobil, Richard Laing and NAOC, Roberto Danielle, all applauded Kyari, for the steps taken in resolving the disputes.
Still in the week under review, Malam Mele Kyari expressed the readiness of the Corporation to partner with other stakeholders to attract more investors into the upstream, midstream and downstream sectors of the petroleum industry.
Kyari stated this at a virtual goodwill message at the Nigerian Oil and Gas Opportunity Fair (NOGOF) 2021 themed ‘Leveraging Opportunities & Synergies for Post Pandemic Recovery of the Nigerian Oil & Gas Industry’.
He said the NNPC was prepared to create enabling environment for potential investors in order to increase value creation and a guaranteed fair share of Return on Investment (RoI).
The NNPC GMD disclosed that investment opportunities abound in the area of exploration of frontier basins, the development of upstream gas fields, rehabilitation of NNPC existing refineries as well as the construction of Greenfield condensate refineries.
He expressed readiness to partner investors willing to strengthen healthcare service availability and telecommunication infrastructure.
Kyari commended the Nigerian Content Development and Monitoring Board (NCDMB) for organising NOGOF, saying that the fair would provide investors the opportunities to invest wisely in the nation’s Oil and Gas Industry.
The week was also a memorable one for the less privileged as the NNPC donated foodstuffs and other items to Hope for Survival and Eliyatama and Dawa orphanages in Maitama, Abuja, in continuation of its Corporate Social Responsibility (CSR).
The Team Lead, Disbursement Committee, Mrs Alti Alhassan, who was represented by Sufian Lawal, said at the hand-over ceremony at the orphanages that the initiative was to identify with the less privileged in the society.
Alhassan said it was in line with the Corporation’s pay off line of touching lives in many positive ways. She said the donation was direct contribution of the management and staff of the Corporation towards charity, noting that NNPC was a responsible organisation that strives to touch the lives of Nigerians.
“Recall the launch of the CS Compendium in June 2019 and the sale of special copies of the Compendium Booklets which enabled the CS Directorate raised funds for charity.
“In line with the purpose of the fundraising, we are here to deliver items to another of the seven approved beneficiary organisations,” she stated.
Responding to the gesture, the officials of the orphanages, Kefas Thaddeus and Aliyu Umar appreciated the NNPC Management for reaching out to the needy, adding that the kind gesture would complement government’s efforts to ensure that the needs of the children are met.
The outreach aimed at donating proceeds from the sales of the Corporate Services Compendium to charity saw the donation of groceries, clothes, books and writing materials, cooking utensils, and first aid drugs worth over N1.6million to the school for the blind and seven orphanages in various parts of Abuja.
Meanwhile, NNPC has announced N39.85billion trading surplus for the month of February representing a massive 314.24 per cent leap from the ₦9.62billion surplus it recorded in January.
Dr Kennie Obateru, the Group General Manager, Group Public Affairs Division of the Corporation, said this in a statement on the February edition of the NNPC Monthly Financial and Operations Report (MFOR).
Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.
According to the report, in February NNPC Group operating revenue as compared to January, increased by 35.64 per cent or N152.07billion to stand at N578.79billion.
Similarly, expenditure for the month increased by 29.21 per cent or N121.83billion to stand at N538.94billion. The expenditure for the month as a proportion of revenue was 0.93 per cent as against 0.98 per cent the previous month.
The significant increase in trading surplus is attributed mainly to reconciled accounts by the Corporation’s downstream subsidiary, the Petroleum Products Marketing Company (PPMC), using the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template.
Other factors that boosted the trading surplus figure, according to the Corporation, included the performance of Duke Oil, Nigerian Gas Company (NGC) and Nigerian Gas Marketing Company (NGMC) which recorded robust gains as a result of increased debt collection and cost optimisation measures.
Conversely, during the period under review, 54 pipeline points were vandalised representing 50 per cent increase from the 27 points recorded in January.
The Warri Area accounted for 50 per cent and Mosimi Area accounted for 39 per cent of the vandalised points while Kaduna and Port Harcourt Areas accounted for seven per cent and four per cent respectively.
NNPC continued to work in collaboration with the local communities and other stakeholders to eliminate the menace of pipeline vandalism.
In the period under review, the Corporation supplied a total of 1.41billion litres of Premium Motor Spirit (petrol) translating to 50.52m litres/day.
In terms of natural gas offtake, commercialisation and utilisation, out of the 206.05Billion Cubic Feet (BCF) produced in February, a total of 133.06BCF was commercialized consisting of 40.15 BCF and 92.91 BCF for the domestic and export market respectively.
This translates to a total supply of 1,433.75Million Standard Cubic Feet Per Day (mmscfd) of gas to the domestic market and 3,318.25mmscfd of gas supplied to the export market for the month.
This implies that 64.48 per cent of the average daily gas produced was commercialised while the balance of 35.52 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 7.67 per cent for the month under review (i.e. 565.52mmscfd) compared with average gas flare rate of 7.12 per cent (i.e. 529.20mmscfd) for the period of February 2020 to February 2021.
The February NNPC Monthly Financial and Operations Report is the 67th in the series. It is published in keeping with the Corporation’s commitment to transparency and accountability.
At the international scene, Oil was steady during the week as trading moved in a narrow range, supported by optimism about improving U.S. fuel demand and a weak dollar, but with the prospect of a return of Iranian oil to markets putting pressure on prices.
Brent rose 13 cents, or 0.2 per cent, to 68.78 dollars per barrel, and U.S. West Texas Intermediate (WTI) crude was down 5 cents, or 0.1 per cent, at 66.02 dollars per barrel.
The northern hemisphere’s summer driving season and a lifting of coronavirus curbs have pushed up the demand.
As a result, U.S. crude oil and fuel inventories fell last week, according to two market sources, citing American Petroleum Institute figures.
Crude stocks fell by 439,000 barrels in the week ended May 21. Gasoline inventories fell by 2 million barrels and distillate stocks fell by 5.1 million barrels, the data showed, according to the sources
Meanwhile, the Market Intelligence Department of NNPC’s London Office reported that the oil prices were steady as traders awaited reports on the ongoing talks between the U.S. and Iran.
A strengthening in U.S. benchmark West Texas Intermediate (WTI), meanwhile, has narrowed its differential with Brent, and if the trend continues, could price U.S. oil exports out of some foreign markets.
Oil prices have posted gains in the past three sessions, bolstered by improving demand outlooks as well as fears that the U.S.-Iran talks in Vienna might collapse and the expected resultant surge in Iranian oil production would not occur.
