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Flouting Presidential Directive Threatens 2.5mbpd Target – PETAN

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There are strong indications that key government regulatory agencies mandated to implement President Bola Ahmed Tinubu’s directive on the Reduction of Petroleum Sector Contracting Costs and Timelines are failing to comply.

Their failure raises concerns that Nigeria’s ambition of producing 2.5 million barrels-per-day for 2026 may be in danger.

ALSO READ: Oando’s Unaudited Profit Plunges 82% to N27.8bn Despite Production Surge in 2025

Issued on February 28, 2024, the Presidential Directive was designed to boost investment and operational efficiency in the oil and gas sector by slashing contracting cycles from as long as 36 months to a maximum of six months.

The Directive seeks to eliminate bureaucratic bottlenecks, reduce project costs, attract investment, and align Nigeria’s petroleum industry with global best practices.

However, two years after its issuance, the Petroleum Technology Association of Nigeria (PETAN) has raised the alarm that little or nothing has changed between 2024 and now.

PETAN President, Wole Ogunsanya, made the disclosure in his remarks at the Nigerian International Energy Summit (NIES) 2026, which began yesterday under the theme “Energy for Peace and Prosperity: Securing Our Shared Future.”

He criticised the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Company Limited (NNPC Ltd), the Nigerian Upstream Investment Management Services (NUIMS) — a subsidiary of the NNPC Ltd — and other regulators for persistent delays in oil and gas contracting processes, despite the Presidential Directive mandating the conclusion of tenders within six months.

According to Ogunsanya, some tenders submitted by PETAN members shortly after the Directive was signed in 2024 were yet to be approved as of 2026.

In his opinion, the implication of the delays is the growing likelihood that Nigeria may miss its 2.5 million barrels-per-day oil production target set for 2026.

“The media here today should quote me. Completion of tenders within six months is not happening. I want this message taken to the President so that he knows that the Directive is not fully in force,” he said.

For its part, the NCDMB has consistently reiterated that it has reduced its touchpoints from nine to five for open and selective tenders, and to four for single-source contracts.

Ogunsanya disclosed that PETAN is currently monitoring ongoing tenders, stressing that several projects scheduled to commence in 2026 and 2027 remain stalled due to prolonged contracting cycles.

Highlighting findings from a PETAN study, he said the current pace of contract awards falls significantly short of the presidential benchmark of completing tenders within six months, noting that most contracts are structured for five years, with a possible two-year renewal.

He added that execution gaps persist despite a significant increase in contracting activities—including expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations — since the fourth quarter of 2024.

Ogunsanya identified prolonged internal approvals, delayed Final Investment Decisions (FIDs), slow commercial negotiations, extended regulatory and compliance procedures, and funding and financial close challenges as major bottlenecks undermining project delivery.

The PETAN president therefore called on the Presidency to intensify monitoring of the contracting process to ensure that awards and project execution align with presidential timelines, warning that continued delays could erode investor confidence and slow sector growth.

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Energy

OPEC+ Retains Output at 30.9mbpd

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Nigeria’s crude oil production averaged 1.238m bpd in June – OPEC

In a confirmation of expectations that more policy adjustments will not occur until 2027, OPEC+ oil-producing countries have voted to keep December production targets steady.

The OPEC+ alliance, yesterday, agreed in principle to keep its combined December oil output targets unchanged at 30.9 million barrels per day (bpd), with Saudi Arabia’s individual target held at 10.5 million bpd.

The resolution was passed at a virtual meeting attended by seven core OPEC+ members- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

This is as the group continues to struggle with export disruptions from the Middle East crisis, while Gulf members have been boosting exports that have been disrupted for months by the conflict, most are still pumping well below their targets.

OPEC+ comprises the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia. Only the seven members — plus the United Arab Emirates (UAE) until it quit OPEC in May — have been involved in monthly output decisions in recent years.

READ ALSO: Gas Infrastructure Fund Sets Terms for Indigenous Access to Funding

All members of the 21-country group are due to meet on November 29, when it will decide 2027 quotas.

“Today’s decision was the easy one,” said Jorge Leon, an analyst at Rystad. “The much more important test comes at the November 29 ministerial meeting, when OPEC+ will decide its 2027 production framework.”

Oil prices jumped more than two per cent on Friday, with Brent crude settling at almost $118 a barrel, the highest since April, as traders braced for a potential escalation in the Iran war after the US midterm elections.

“OPEC+ faces an extremely difficult call for 2027,” Leon added. “The group has to plan around huge uncertainty over the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of the surplus that could emerge once disrupted barrels return.”

The seven members have been boosting output targets for much of 2026 and in September completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. At earlier meetings, they kept the targets steady for October and November.

OPEC+ still has one more layer ⁠of production cuts of about two million bpd covering most members through the end of 2026.

The group needs to complete a review of members’ production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas ⁠and shape plans to unwind those cuts, sources have said.

The Iran war has disrupted projects to expand capacity across the Middle East, throwing estimates of future production potential into uncertainty, Reuters reported in October. As a result, the review is now expected to be completed by mid-November.

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Energy

U.S. to Tweak LNG Safety Rules for Foreign Markets

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With a view to accelerating infrastructure development and reducing operating costs, the U.S. Department of Transportation is contemplating a new set of safety regulations for liquefied natural gas facilities.

This is coming as American exporters prepare for another major expansion in global natural gas markets.

It was gathered that the proposal, issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), would modernize federal LNG safety requirements by incorporating standards developed by the National Fire Protection Association.

READ ALSO: Investors Embrace DPRP IPO Globally, 120 Countries, 54 African Nations

The changes are to address facility location, engineering, construction, operations, and maintenance, with greater flexibility to adopt newer technologies.

Transportation Secretary, Sean Duffy estimates that the updated framework could save LNG operators approximately $100 million annually while maintaining safety protections. The projected savings are an agency estimate, and the proposal has not yet become a final regulation.

The initiative comes as the United States strengthens its position as the world’s largest LNG exporter. American export capacity is expected to increase by approximately 100 million metric tons annually by the end of the decade, supported by projects already under development and additional planned investments.

Global LNG demand has also become more sensitive to geopolitical disruptions. Interruptions to Middle Eastern gas shipments associated with the conflict involving Iran have encouraged international buyers to evaluate alternative suppliers and diversify long-term procurement arrangements.

U.S. LNG developers have responded with additional investment commitments. Projects representing more than 50 million metric tons of annual capacity have reached final investment decisions since the beginning of 2025.

Major exporters, including Cheniere Energy and Venture Global, are pursuing additional development opportunities as federal policy places greater emphasis on expanding domestic energy infrastructure.

However, regulatory modernization does not eliminate the financial or operational challenges associated with LNG construction.

Developers must still secure the Federal Energy Regulatory Commission (FERC) approvals, complete environmental reviews, arrange financing, and address potential legal challenges. Pipeline connections, specialized equipment availability, construction costs, and long-term customer contracts also influence project schedules.

Delfin LNG, which is developing a floating export facility, illustrates the importance of infrastructure safety approvals. Its associated pipeline has not received publicly confirmed PHMSA clearance to resume operations following an explosion earlier this year.

Separately, FERC has proposed a streamlined authorization framework for certain modifications and expansions at existing LNG facilities, including activities that could qualify for automatic approval or shortened review periods.

For energy investors, the combined regulatory initiatives could improve development visibility and reduce some costs, although their financial impact will depend on final requirements and individual project circumstances.

Additional LNG export capacity could support demand for U.S. natural gas production, particularly from major producing regions connected to Gulf Coast terminals.

Midstream operators, engineering companies, compression equipment manufacturers, and construction contractors could also benefit from continued infrastructure investment.

At the same time, greater export demand may increase domestic natural gas price sensitivity to international markets, creating different implications for producers, utilities, and industrial consumers.

Investors will be monitoring the final PHMSA regulations, FERC permitting developments, LNG project financing decisions, and the pace at which proposed export capacity enters commercial service.

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Energy

NALPGAM Preaches Innovation, Safety to LPG Operators

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GAS: New Temile/Hyundai LPG Vessel to bring down high cost of cooking gas in Nigeria-NCDMB

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.

The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.

The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.

Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.

“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.

READ ALSO: Tinubu Promises to Boost Local Production with NNPC Refineries

A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.

Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.

They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.

Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.

“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.

The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.

Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.

Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.

The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.

Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.

The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.

According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.

Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.

“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.

The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.

The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.

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