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FG Dangles Oil Blocs Carrot Before Spanish Investors

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FULL TEXT: President Buhari Delivers Last New Year Message To Nigerians

The Nigerian government has moved to entice some Spanish investors with the opportunities in the2022 deep offshore mini-bid round.

Minister of State for Petroleum Resources, Timipre Sylva, dangled the carrot in Abuja on Thursday, at a meeting with the Minister of Foreign Affairs of Spain, Jose Albares.

Albares led a large delegation of key investors from Spain to the meeting, where Sylva also expressed the desire for Spain to support Nigeria with security in the oil and gas sector.

The meeting also had senior officials of the Federal Ministry of Petroleum Resources, as well as chief executives of the Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority, in attendance.
The NUPRC had on Wednesday announced the commencement of the 2022 deep offshore mini-bid round, as it promised that the bid process would be competitive and transparent.

Sylva said, “As a country, we need all the investments we require. The oil and gas sector is at the core of our economy, and coming to the country with all these array of investors, it is a major investment opportunity for Nigeria.

“For the (Spanish) minister to come with these array of potential investors, then I’m sure that we have (the) potential of having a lot of investments coming into Nigeria from now.

“The NUPRC has already pitched, they are already in the process of having a bid round.

“And with these number of potential investors on the table, who are people that they (NUPRC) ordinarily would have to meet in their country. Usually, before any bid round, you will have a road show.”

Sylva noted that there was a clamour from some sources to move so quickly to renewables, but stated that as a country, Nigeria felt that it was going to move on the transition train with the instrumentality of gas.

“The rest of the world have also come to see that there is a need for us to tarry a while with gas. So it is mutual on the part of both countries for us to develop the gas resources that we have,” he stated.

On Security, he expressed a strong desire that Spain would be supporting Nigeria with technology to protect to oil and gas sector.

Sylva said, “We have also had discussions on strong support that we would require from them in the area of security. The biggest problem today in the oil and gas sector is security and, of course, Spain is in position to also support us in this area.

“So, in the areas of investment and technology we are going to be looking up to Spain. And Spain looks up to us for further supply of gas. We are also developing a pipeline to Morocco and I believe that it is going to settle this issue of gas supply from Nigeria to Europe.”

On his part, Albares pointed out that Nigeria was Spain’s first supplier in petroleum and gas combined, adding that his country was the second trade partner of Nigeria.

Albares said, “I want to commend the reliability and stability of Nigeria as our supplier. You are a trustful partner. I want to thank the minister who has informed me of the evolution and opportunities of this sector here in Nigeria.

“Nigeria has proven once again that it is a friend and trustworthy partner in this very complex setting – the energy market in the world. Now we have worked out some aspects to develop this bilateral relationship on energy and also in all the aspects that I have been dealing with today here in Abuja.”

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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