Energy
FOI: ‘Disclose How Much Oil Nigeria Produces, Exports Daily,’ SERAP To NNPC
The Socio-Economic Rights and Accountability Project (SERAP) has urged the Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC) Limited, Mele Kolo Kyari, to “promptly publish details of barrels of oil Nigeria produces and exports every day and the total amounts of revenues generated from oil since the removal of subsidy on petrol in May 2023.”
This was disclosed this in a statement issued by Deputy Director, SERAP, Kolawole Oluwadare.
SERAP urged him “to disclose how much of the revenues generated from oil have been remitted to the public treasury since the removal of subsidy on petrol.”
SERAP also urged him “to disclose details of payment of N11 trillion as subsidy, and to clarify allegations that the NNPCL has failed to remit revenues generated from oil to the public treasury since the removal of subsidy on petrol.”
Recall that former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, had last week alleged that “the NNPCL is failing to remit enough foreign exchange into the treasury despite the removal of fuel subsidy,” asking: “Where is the money?”.
In the letter dated 9 December 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organisation stated, “There is a legitimate public interest in disclosing the information sought.”
SERAP said, “Opacity in the amounts of barrels of oil the country produces and exports daily, the revenues generated and remitted to the public treasury would have negative impacts on the fundamental interests of the citizens and the public interest.
“Transparency would ensure that the revenues are not diverted into private pockets, and increase public trust that the money would be used to benefit Nigerians.”
The letter, read in part, “The public interest in publishing the information sought outweighs any considerations to withhold the information.
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel the NNPCL to comply with our requests in the public interest.
“SERAP is seriously concerned that years of allegations of corruption and mismanagement in the oil sector and entrenched impunity of perpetrators have undermined public trust and confidence in the NNPCL.
“Ensuring transparency and accountability in the operations of the NNPCL would improve the enjoyment by Nigerians of their right to natural wealth and resources.
“SERAP is concerned that despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money primarily because of widespread grand corruption, and the culture of impunity of perpetrators.
“Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.
“SERAP notes that Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions and officials to abolish all corrupt practices and abuse of power.
“Section 16(2) of the Nigerian Constitution further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’
“Section 13 of the Nigerian Constitution 1999 imposes clear responsibility on the NNPCL to conform to, observe and apply the provisions of Chapter 2 of the constitution.
“Nigeria has made legally binding commitments under the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to ensure transparency and accountability in the management of public resources.
“Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the NNPCL to ensure proper management of public affairs and public funds. These commitments ought to be fully upheld and respected.
“Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure, and a presumption that all information is accessible subject only to a narrow system of exceptions.
“By Section 1 (1) of the Freedom of Information (FoI) Act 2011, SERAP is entitled as of right to request for or gain access to information, including information on the details of barrels of oil Nigeria produces and exports every day and the total amounts of revenues generated and remitted to the public treasury.
“The information requested for as indicated above, apart from not being exempted from disclosure under the FoI Act, bothers on an issue of national interest, public concern, interest of human rights, social justice, good governance, transparency and accountability.
“The Freedom of Information Act, Section 39 of the Nigerian Constitution, and article 9 of the African Charter on Human and Peoples’ Rights guarantee to everyone the right to information, including the details of barrels of oil Nigeria produces and exports every day and the total amounts of revenues generated from oil and remitted to the public treasury.
“By the combined reading of the provisions of the Nigerian Constitution, the Freedom of Information Act and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on the NNPCL to widely publish the details sought.
“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities.
“According to our information, the NNPCL has failed to disclose the amounts of barrels of oil the country produces and exports.
“The NNPCL has also reportedly failed to publish details of revenues generated from the production and exportation of oil and the amounts of revenues remitted to the public treasury as required by Nigerian laws.
“According to the former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, ‘It is only the NNPCL that can give the figures about how much oil we produce daily, how much we sell, and where the money is going. We are no longer paying subsidies so where are the dollars? Where is the money?’
“The NNPCL has a legal responsibility to promote transparency and accountability in barrels of oil the country produces and exports every day, and to ensure that the revenues generated from such production and exportation are dully remitted to the public treasury.
“The NNPLC also has a legal responsibility to disclose details of payment of N11 trillion subsidy.”
Shell Nigeria Exploration and Production Company Ltd (SNEPCo) rode on new wells, optimized reservoir and optimal facility management to produce more oil at Bonga in 2023 than the previous one, a review of operations has shown.
Biztellers reports that Nigeria’s first deep-water development produced some 138,000 barrels of oil per day (boepd) in 2023 compared to around 101,000 in 2022.
The improvement, Biztellers gathered, was driven by drilling of new wells, optimising reservoir and facility management and excellent asset management, inter alia.
Managing Director, SNEPCo, Elohor Aiboni, said, “Bonga continues to justify the investments and hard work that led to its discovery.
“The uptick in production is the result of commitment by staff, continuous improvements in production processes and maintenance and the support of the Nigerian National Petroleum Company Ltd (NNPC) and our co-venture partners – TotalEnergies Nigeria Limited, Nigerian Agip Exploration and Esso Exploration and Production Nigeria Limited.
“Working together, we will continue to power lives and deliver value to all stakeholders.”
Recall that Bonga began production in November 2005 through the 225,000-barrels-per-day capacity Bonga FPSO, anchored 120 kilometres offshore. The FPSO exported the 1 billionth barrel of oil last year.
The operations have resulted in remittance of taxes and royalties to the Government of Nigeria to finance development, development of indigenous contactors and service providers, and a wide-ranging social investment portfolio which has improved lives across the country.
The Nigerian Content Development and Monitoring Board (NCDMB) has reassured industry stakeholders that oil and gas service companies that have established capacities in the country will continue to enjoy patronage.
The Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe made this commitment on Friday in Port Harcourt, Rivers State when he led officials of the Board and Shell Petroleum Development Company of Nigeria (SPDC) to visit companies that deliver pipe coating and related services.
The team visited Brightwaters Energy Limited, formerly known as Willbros Nigeria Ltd, Solewant Nigeria Limited and Pipe Coaters Nigeria, managed by Tenaris Nigeria Ltd.
According to the ES, the visits were to assess the companies’ facilities and determine how the Board can galvanize the industry to patronise them.
He underscored the importance of getting first-hand information on in-country capabilities before making key decisions on oil and gas projects. He insisted that operating companies must support and patronise local oil and gas service companies in compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Ogbe emphasized that activities in the Nigerian oil and gas industry must be used to create employment opportunities for the nation’s teeming youths and help to resuscitate the economy, in line with the aspirations of President Ahmed Bola Tinubu.
The Chief Executive Officer of Brightwaters Energy Limited, Scott Gregory thanked the ES for leading the visit while highlighting that Brightwaters carried out Nigeria’s first pipe coating in 1962.
He recalled that the facility had 3,000 employees some years back, executing various spheres of oil and gas projects. He conveyed the management’s aspiration to return the
firm to those high-performance levels and sought the Board’s support to win oil and gas projects that would resuscitate the sprawling facility.
“We feel that we can be a positive contributor to Nigeria through the capacities that we have. We want to bring real, true value to the table,” he added.
He admitted that the coating facility had suffered downtime, but assured that the plant would be up and running within 60 days of the award of a new contract.
The Chairman of Tenaris Nigeria, Dr. Ernest Nwapa welcomed the NCDMB’s team to PCNL’s facilities.
He commended the efforts made by the agency to push local content in the industry, attributing it to the good culture that had been established at the Board over the years.
Nwapa, who was the pioneer Executive Secretary of the NCDMB expressed delight that some of the oil and gas projects that had been pending for nearly ten years were now being developed and expressed hope that existing local capacities would be maximized in the execution of those projects.
The team was taken around the company’s facilities and shown the various equipment of PCNL in readiness for the award of new contracts.
Nwapa pledged the commitment of the company to meet the expectations of clients as well as allow them to participate in the supervision of the work in their factory.
The PCNL facility covers an area of 160,000 m2 in the Onne Free Trade Zone. The company offers Anticorrosion, CWC, Thermal Insulation, Internal and Bends Coating plants as well as Double Jointing and Anode Installation Facilities.
At Solewant Group, an EPCI and Pipe Coating Company, the NCDMB delegation was shown round the company’s facilities as well as the new investments, such as the 5mega watts generators, procured to guarantee power supply to the facility.
Accompanying Engr. Ogbe on the facility visits were the Director Projects Certification and Authorization Division (PCAD), Engr. Abayomi Bamidele, General Manager PCAD, Engr. Maurice Iwhiwhu, Special Technical Assistant (STA) to the Executive Secretary, Engr. Mofe Megbele, Deputy Manager, Corporate Communications, Mr. Obinna Ezeobi, and other staff members of the Board.
The SPDC team was led by the General Manager, Nigerian Content Development, Mr.Lanre Olawuyi.
The NNPC Exploration and Production Limited (NNPC E&P Ltd), NNPC Ltd’s flagship upstream subsidiary, and Natural Oilfield Services Ltd (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), has announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom State, Nigeria.
Biztellers reports that the production commenced on the 6th of May 2024 with 6,000 barrels of oil with expectations to be ramped up to 40,000 barrels per day by May 27th, 2024.
The first oil flow from OML 13 is a historic milestone in the partnership between NNPC E&P Ltd and NOSL, highlighting their dedication to driving growth and development in Nigeria’s oil and gas sector, which remains a vital component of the nation’s economy.
The achievement does not only signify the culmination of rigorous planning and execution by the teams involved, but also represents a new era of economic empowerment and development opportunities for the host communities.
Furthermore, for Nigeria, the first oil from OML 13 holds some significance as it contributes to the country’s efforts to increase its oil production capacity, which is crucial for meeting domestic energy needs and driving economic growth.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
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