Energy
Minister Visits Waltersmith Refinery, Threatens Action Against Unproductive Marginal Field Licences
The Federal Government of Nigeria (FGN) has reiterated that licences for marginal fields risk revocation if beneficiaries fail to keep to the terms of the agreement on the development and operation of such assets.
The Nigerian Content Development and Monitoring Board (NCDMB), took to its verified handle on X to disclose this in a statement posted on Thursday.
According to the statement, the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, laid emphasis on this on Tuesday during a facility tour of Waltersmith Petroman Oil Limited, Ibigwe, Ohaji-Egbema Local Government Area, Imo State.
According to the Minister, the FGN was determined to act decisively “to improve domestic refining capacity”.
He added that the feedstock from the marginal fields was required to augment existing sources of crude oil supply to functional processing plants.
He said, “The quickest way to fix our energy challenge in the country should be through modular refineries, while we await the total rehabilitation of the big refineries.”
The 5,000-barrel per-stream-day Waltersmith Petroman, which has been a stable source of diesel, kerosene, naphta, and high fuel oil to the domestic market since its commissioning in 2020, was for the Minister proof of how beneficial such smaller processing plants could be.
“People who have similar licences for modular refineries should take a cue from Waltersmith,” he declared, adding, “Other people who have marginal fields should also take a cue from Waltersmith.”
To drive his point home, Senator Lokpobiri said, “If you have a marginal field, an allocation, it is a paper given to you, it doesn’t add value to you or to Nigeria, unless you take it to the next level by making the requisite investment and then adding the value that is expected.
“What I am seeing is that out of the numerous marginal fields that were allocated, only Waltersmith and a few of them have been successfully driven.”
He pointed out that he had sounded a warning at the recent Nigeria Economic Summit Group (NESG) event in Abuja that marginal field allocations without the requisite investments stand the risk of being canceled.
On the imperative of such a line of action, he said, “It is important that we make this point so that we can retrieve some of those fields to the basket,” so as to reallocate such assets to those able and prepared to develop and exploit them to the benefit of the industry and Nigeria.
He revealed that he had obtained presidential approval to conduct a fresh round of bidding, which would take place soon, promising that “marginal fields would [henceforth] be prioritised in terms of their location to those who have modular refineries, so that they will be able to produce.”
Commending the remarkable success story of Waltersmith, whose management has announced plans for further expansion, he said, “I can assure you that this Government will do whatever we can to support you so that you can continue to grow.”
He had similar words of praise for the NCDMB, whose direct involvement through equity participation, greatly facilitated the take-off and operations of the Refinery.
On his part, the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote, said the decision of the Board to participate as an equity holder in Waltersmith was informed by its sense of mission and the impressive organisational arrangement within the company.
According to him, NCDMB had no hesitation to partner with Waltersmith, “given the very clear corporate governance that is required and exists within the company,” adding that “part of our mandate is to enhance development and we see ourselves as catalysts for the industrialisation of Nigeria.
“At NCDMB, we are proud of what we have achieved at Waltersmith.”
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.
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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.”
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.
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.
ALSO READ: Stakeholders Hail NCDMB As Local Content Level Hits 56%
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.
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