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FG To Maximize Local Content Opportunities In Midstream/Downstream Sectors

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FG To Maximize Local Content Opportunities In Midstream/Downstream Sectors

Lucky MOMOH

ABUJA-THE Federal Government has expressed firm determination to fully catalyze investments in the midstream and downstream sectors of the petroleum sector, with a view to creating employment for teeming youths and maximizing local content opportunities.

The Minister of State for Petroleum Resources, Chief Timipre Sylva gave assurance recently when he declared open the Nigerian Content Midstream and Downstream Oil and Gas Summit organized by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

He stated that the Nigerian Oil and Gas industry is currently in the phase of exploring the vast opportunities and potentials associated with the midstream and downstream sectors and commended the NCDMB for intervening to foster dynamism in the sectors through the summit.

He acknowledged that the midstream and downstream sectors did not receive the deserved focus in the past but hinted that the situation was set to change because the recently enacted Petroleum Industry Act (PIA) contains fiscal incentives to attract investment in gas development, distribution, penetration, and utilization and provides exceptional care for host communities. He charged industry stakeholders to take determined steps to unlock natural gas and domestic production potentials and use the opportunities in the gas ecosystem to drag millions of Nigerians out of energy poverty.

In his welcome address, the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote affirmed that the Board is keen to maximize Local Content opportunities in the midstream and downstream sectors because they offer the greatest number of employment opportunities as well as longevity of jobs in contrast to the upstream sector of the oil industry.

“This provides means to absorb outputs of our Human Capacity Development programs in the form of job opportunities,” he added.

He also stated that the entry barrier for businesses to partake in the midstream and downstream sectors of the industry is relatively lower compared to the upstream sector and there are vast business opportunities in the midstream to downstream sectors, ranging from processing, transportation, storage, and distribution that could be started on small scale and later scaled up to bigger enterprises thereby growing in-country capacities and capabilities.

According to Wabote, the profit margin is also attractive in the midstream and downstream, especially in the LPG distribution value chain and this serves as an incentive to attract a wider number of players.

He emphasized the need to maximize the potentials of the midstream and downstream sectors to ensure energy security and national pride, adding that the direct social impact of a productive and efficient midstream and downstream sector of the oil and gas industry also needs to be maximized.

The Executive Secretary further explained that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act established NCDMB as the regulator of Nigerian Content in the entire spectrum of the Nigerian oil and gas industry. He added that the Board’s regulatory role is not to stifle the industry but to provide enabling, and inclusive, business environment for businesses to thrive with the active participation of critical stakeholders.

Giving a rundown of the Board’s achievements in the midstream and downstream sectors, the Executive Secretary listed the partnership with Waltersmith, which resulted in the delivery of the 5,000barrels per day modular refinery in Imo State, the 2,500barrels per day Duport Modular Refinery located in Edo State, which is due for commissioning this year as well as the 2,000barrels per day Atlantic Refinery and the 12,000barrels/day Azikel Hydro-skimming Refinery both in Bayelsa state, which are under construction.

Other achievements of the Board include the partnership with the NNPC to construct a 50,000liters petroleum products terminal in Brass, the partnership with Bunorr Integrated Energy Ltd for the establishment of 48,000 liters/day Base Oil Production Facility in Port Harcourt, Rivers State, which is due for commissioning this year and the ongoing construction of the Eraskon Lube Oil factory in Gbarain, Bayelsa State

Dwelling on the LPG value chain, the Executive Secretary stated that the Board had gone into partnership with some investors to develop some projects. Some of them included the partnership with NEDO Gas Processing Company in Kwale, Delta State for the establishment of 80MMscfd of Gas Processing Plant and a 300MMscfd Kwale Gas Gathering hub, partnership with Triansel Gas Limited in Koko, Delta State for the establishment of 5,000MT LPG Storage and Loading Terminal Facility and partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass.

Others are the partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 northern states and partnership with Southfield Petroleum for the establishment of 200 MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG, which is about 10 percent of current LPG demand nationwide.

Other investments include the partnership with MOB Integrated Services for the construction of the 500MT Inland LPG terminal which is currently in operation at Dikko, Niger State as well as the partnership with Amal Technologies to set up a plant in Abuja to produce Smart Gas/Smoke Detector Alarm devices.

 

Energy

NNPC Ltd, Partner Unlock 12,000bpd Production From Awoba Unit Field

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Keen on optimising production from the nation’s hydrocarbon assets to boost revenues and meet her OPEC production quota, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd., have restarted production from the Awoba field which last contributed production to the Bonny Terminal in 2021 and was finally shut down in February 2022 due to evacuation issues and crude oil theft.

This was contained in a statement put out on the state oil company’s X handle on Tuesday from Abuja, under the signature of its Chief Corporate Communications Officer, Olufemi O. Soneye.

He asserted that since the restart of the Awoba field by NNPC Ltd and it partners on April 13, 2024; production from the field has averaged 8,000 barrels per day and is expected to plateau at 12,000 per day at full ramp up within 30 days.

Awoba is also expected to significantly boost gas supply to the power sector and other gas-based industries, Soneye added.

Biztellers reports that the Awoba Unit which straddles OMLs 18 and 24 is located in the mangrove swamp south of Port Harcourt, Rivers State. Both OML 18 and OML 24 assets are under the management of the NNPC Upstream Investment Management Services (NUIMS).

Recall that the NNPC Ltd. has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production. Besides the recent start of production at the Madu Field by the NNPC Ltd/First E&P JV, the company has achieved the restart of production at OMLs 29 and OML 18 in late 2023 which have steadily contributed an average of 60,000bpd to the nation’s production output since their restart.

The Group Chief Executive Officer of NNPC Ltd., Mallam Mele Kyari, ascribed the achievement to the President Bola Ahmed Tinubu administration’s success in providing enabling operating environment for businesses to thrive.

He expressed appreciation to all stakeholders (staff, operators, host communities, government security agencies, and private security contractors) who played a pivotal role in achieving the feat.

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Energy

NNPC Ltd, First E&P Achieve 20,000bpd Production At OML 85

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The Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset also known as Madu Field.

Biztellers reports that production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.

The achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of enabling environment for existing and prospective investors.

According to the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, the commencement of oil production at the Madu Field is a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

He commended stakeholders for their support, and opined that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.

Recall that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd/First E&P JV in 2018.

Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000bbls.

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Energy

Chevron Counters False Recruitment Information

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Chevron Reports 8-Year High Earnings

Chevron Nigeria Limited (CNL) has denounced stories being peddled around that it is recruiting.

General Manager, Policy, Government & Public Affairs, CNL, E. O. Brikinn, denounced the stories in a statement made available to Biztellers, in which he cautioned that the company will not respond to enquiries about “fraudulent advertisements and job offers”.

It reads, “Chevron Nigeria Limited (“CNL”), operator of the Nigerian National Petroleum Company Limited (“NNPCL”) and CNL Joint Venture, is aware of the circulation of false recruitment information in some media and online channels in the name of CNL and Chevron Corporation, purportedly advertising job positions in CNL.

“Additionally, fraudulent job offers have reportedly been sent through emails, text messages and phone calls by individuals purporting to be staff or representatives of CNL and Chevron Corporation.

“Members of the public are hereby notified that CNL does not solicit job applications or initiate recruitment processes through emails, posters, handbills, text messages, social media, or phone calls.

“Job seekers are advised to always check the company’s website at: http:/www.careers.chevron.com, and the national newspapers for job advertisements from CNL.

“CNL does not and will not require applicants to make any payment towards processing any job application. Job offers requesting candidates to pay money, at any point during the recruitment process, are not from CNL. CNL advises that anyone who receives these fraudulent communications should report them to the appropriate law enforcement agencies.

“CNL hereby dissociates itself from all false job adverts and offers published in any online media platform, web site, email, poster, handbill or any other medium.

“CNL will not respond to enquiries about fraudulent advertisements and job offers.”

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