Energy
Dangote, Regulators Face-Off: Oil Producing Communities Group Threatens To Seal Oil Pipeline Facilities
The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), has threatened to renew agitation for greater autonomy and control of their natural resources, if the Nigerian National Petroleum Corporation Limited (NNPC Ltd) and the International Oil Companies (IOCs) fail to sell and supply crude oil to Dangote Refinery and other local refineries.
It was gathered that this was borne out of the group’s to ensure that Nigeria is energy-secure and becomes self-sufficient in local production of Premium Motor Spirit (PMS) and diesel.
HOSTCOM, comprising all the states producing oil and gas in Nigeria, over the weekend, lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products.
According to them, this persistent issue, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who are intent on maintaining the status quo of exporting crude oil while importing refined petroleum products.
HOSTCOM warned that it will not hesitate to publicly name these identified cabals if necessary.
READ ALSO: BREAKING: Peterside Faults Narrative On Crude Resale By Dangote
Biztellers reports that the National President of HOSTCOM, Dr. Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta region, toured the Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex.
Notable traditional rulers included the Chairman of the Niger Delta Monarchs Forum, HRM Frank Okorakpo; Deputy Chairman of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria (TROMPCON), HRM Obafemi Ogaro; and Egbesuwei Gbanraun X Agadagba Pere, HRM (Capt) Frank Okiakpe, among others
The National President, Dr. Tamaramiebi said, “Our visit today to the largest and magnificent 650,000 bpd private Refinery in Africa (Dangote Refinery) has opened our eyes to several ills, particularly to the monumental corruption going on in Nigeria’s oil and gas industry.
“It is obvious why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars spent on the so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria oil sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues.”
While emphasising on the need for Nigeria to refine its crude locally, HOSTCOM urged the Federal Government to back the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to end the nation’s persistent reliance on imported petrol, diesel, and other refined products.
He also called for nationwide support for Dangote Petroleum Refinery and other modular refineries to eliminate the need for imported refined products. It expressed gratitude to the National Assembly and Nigerians but warned against any sabotage that could hinder the country’s progress towards self-sufficiency in refined products.
“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We at HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria,” stated the group.
HOSTCOM, which emphasised that every Nigerian’s aspiration is for the country to refine its own crude oil for the benefit of its people, warned that any individual who opposes this national desire will face the wrath of the masses.
The group also lampooned the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over his recent statement that the government would not halt the importation of refined petroleum products.
HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.
“We unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he as the CEO of NMDPRA is responsible for issuing import licences to his cronies outside the government to continue to import sub-standard refined petroleum products into the country. This is not surprising given that he has served on the boards of some downstream companies in the past. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict,” the group added.
The group praised the President of Dangote Industries Limited, Aliko Dangote for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavour has significantly contributed to the country’s economic growth and development. It emphasised that the refinery is crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products.
The group urged President Tinubu to support the project, highlighting that it will enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities, among other positive effects.
“We call on President Bola Tinubu to support and sustain this refinery which is in his own state. He must do away with the cabals holding the oil sector to ransom,” it added.
The group further asserted that the President must not tolerate the economic sabotage being carried out by the IOCs operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.
“We call on Mr. President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021 particularly section 109(4)(b) which states that “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,” it added.
It also pointed out that, despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. The group warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.
The Vice President (Oil & Gas) at Dangote Industries Limited, Devakumar Edwin, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.
Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He said that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.
Energy
Dangote Partnership: MRS Urges Nigerians To Insist On N935/Litre Petrol Price Nationwide
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.
The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.
Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.
ALSO READ: Dangote Slashes PMS Price To N899.50k
It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM”
Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”
A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
Energy
FDI: Shell To Invest Billions Of Dollars On Nigeria’s Bonga North Oil Field
As a direct implication of the Federal Government’s Foreign Direct Investment drive, the Royal Dutch Shell has completed the final investment decision on the deep offshore Bonga North project in Nigeria.
Biztellers reports that the Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.
Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, said, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio”.
ALSO READ: OGUNCCIMA Commends Dangote Refinery’s Impact
It was gathered that the Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The company is optimistic that the project will sustain oil and gas production at the Bonga facility.
The Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
In addition, the Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Energy
Chevron Nigeria Bags ‘Energy Company Of The Year For Environmental Sustainability And CSR
Chevron Nigeria Limited (CNL), has received an award as “Energy company of the year (2024)” for its Environmental Sustainability and Corporate Responsibility accomplishments.
The award presented by the Nigerian News Direct newspaper, on Friday December 6, 2024, and was received by Manager Communications, Chevron Nigeria and Mid-Africa Business Unit, Victor Anyaegbudike, at a colourful event at the Grand Ballroom of the Oriental Hotel, Lagos.
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The organizers of the award noted that Chevron has implemented the “Protecting People and the Environment” policy, which aims at preventing injuries, illnesses, and environmental incidents. They also referenced that the company has achieved 97% gas flaring reduction in its operations in Nigeria, while implementing waste management and environmental conservation programs.
According to the media organization, Chevron Nigeria has also invested millions of dollars in community development programs, supporting education, health and economic development initiatives that have benefited thousands of people, while ensuring diversity, inclusion, and employee engagement in its business operations.
Receiving the award from the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, Anyaegbudike thanked the organizers for the honour, and reiterated Chevron’s commitment to continue to develop, affordable, reliable and ever-cleaner energy that enables human progress around the world.