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Minister Visits Waltersmith Refinery, Threatens Action Against Unproductive Marginal Field Licences

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Engr Simbi Kesiye Wabote: Five Years of Impact at NCDMB

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.”

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Energy

Smart Filling Stations: NNPC Ltd Assuages Job-loss Worries

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Public concerns that the introduction of smart and self-service filling stations would lead to job losses in the downstream petroleum sector have been dismissed by the Nigerian National Petroleum Company Limited (NNPC Ltd).

According to the state oil major, the deployment of automated stations was part of efforts to improve efficiency and customer experience. It added that the technology would create new opportunities rather than simply eliminate existing jobs.

The NNPC Ltd also disclosed plans to transform about 900 of its existing retail outlets across the country into modern energy hubs, as it adapts its retail business to changing consumer needs and developments in the downstream sector.

READ ALSO: FHC Hands 10 Years Sentence to Nine Oil Thieves in Akwa Ibom

The disclosures were made in Abuja, during the commissioning of a 24-hour smart, self-service filling station at the headquarters of the Nigeria Immigration Service (NIS).

The Executive Director, Retail Operations and Mobility, NNPC Retail Limited, Shettima Kukawa, said the new model was designed to provide customers with faster, more convenient and technology-driven services.

Kukawa added that the transformation of the company’s retail outlets was not about simply replacing workers with machines, but about creating a modern retail environment capable of providing more services to customers.

He explained that the smart station allows motorists to purchase fuel through the NNPC fuel app, fund their digital wallets and dispense the exact quantity of fuel they have paid for using a self-service code.

The station has a storage capacity of 180,000 litres of Premium Motor Spirit (PMS) and 45,000 litres of Automotive Gas Oil (AGO), with 16 PMS pumps and two AGO pumps.

It also has a six-point electric vehicle (EV) charging facility and is primarily powered by a solar system with more than 200kWh capacity.

Managing Director, NNPC Retail Limited, Hubb Stokman, said the downstream industry was undergoing significant changes following fuel deregulation and the commencement of operations at the Dangote Refinery.

Stokman said consumers were also demanding more services at filling stations, pointing out that the traditional fuel-only model was no longer sufficient to meet their expectations.

“Today shows that the downstream industry is changing after the fuel deregulation and also the start-up of the Dangote Refinery. Our industry is rapidly changing, and I think that more than ever, we need to meet the needs of the Nigerian consumer and their wishes.

“They want to see more services, like a fast food restaurant, convenience shop, maybe a coffee shop, banks. They would like to have a lounge or car wash. All these things that you will see here,” he said.

Also speaking, the Executive Vice President, Downstream, NNPC Limited, Dr Mumuni Dagazau, said the company was moving beyond the traditional concept of a filling station by integrating technology and alternative energy solutions into its retail network.

He said the development represented the type of modern retail infrastructure that should be replicated across the country, stressing that Nigerians deserved improved quality and service.

“Our objective at NNPC is not simply to provide fuel, it is to provide reliable energy solutions and a better retail experience supported by technology and innovation.

“We deserve these sort of stations throughout this country. We need to move away from where we have been and deliver this sort of quality and the service to our people in the community,” Dagazau said.

On his part, the Comptroller-General of Nigeria Immigration Service, Kemi Nandap, commended NNPC Limited for integrating EV charging with conventional fuelling.

Represented by Saidu Daura, the Deputy Comptroller-General, Nandap said the development aligned with global trends in energy transition, climate action and smart mobility, describing it as a practical step towards a cleaner, more sustainable and technology-driven economy.

She said the shift to technologies such as electric mobility could create opportunities for investment, employment, skills transfer and industrial growth.

“Today’s commissioning goes beyond the opening of a service station. It is a statement of confidence in Nigeria’s future and a contribution to building a resilient, green, and technologically advanced nation,” she said.

Nandap called for stronger collaboration between government institutions, the private sector and other stakeholders to promote sustainable development and national progress.

The station operates round-the-clock and includes automated services designed to reduce waiting time and give motorists greater control over their transactions.

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Energy

Isa Chairs World Energy Council Nigeria

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Abdulrazaq Isa, co-founder of Waltersmith Petroman Oil Limited, has emerged as the chairman of the governing board of the Nigerian Member Committee of the World Energy Council (WEC).

The Board, inaugurated in Abuja on 7 August, is made up of nine members with a diversity of backgrounds, drawn from policy, academia, energy institutions and private enterprise.

READ ALSO: Africa’s Biggest IPO: Dangote Promises Strong Returns, Generational Wealth for Investors

The Board membership consists, Dr Ainojie Alex Irune, 45-year-old, Managing Director of Oando Energy Resources and an Executive Director of Oando PLC. Bala Wunti, formerly Chief HSE Officer at NNPC Limited, serves as the committee’s chief executive, alongside Professor Wumi Iledare, Dr Mustapha Abdullahi, Mrs Aisha Farida Katagum, Dr Emmanuel Okon, Dr Victor Ekpenyong and Dr Imamuddeen Talba.

Irune’s inclusion is notable not primarily as an indication of generational change, but rather as a reflection of the extensive industry transformation evident within his comparatively early career. In many respects, his professional trajectory exemplifies the broader developments that have characterised the Nigerian energy industry over the past decade.

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Energy

Saudi Pipeline Disruption Pushes Nigeria’s Crude Beyond $115/barrel

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The attack on Saudi Arabia’s key crude oil pipeline, which led to closure and the disruption of a crucial route for avoiding the Strait of Hormuz during the US-Iran war, have pressured the global market into higher prices.

Consequently, the Nigerian oil and other major oil contracts moved northward and Brent gained as high as 3.7% to more than USD 108 a barrel.

Bonny Light traded above $115 per barrel over the weekend on macro energy strength/grand-dated Brent proxies. Light, sweet Nigerian grades maintain a healthy-to-positive quality premium over heavy/sour peers amid continued European and Mediterranean refinery appetite for low-sulfur yield.

READ ALSO: DPRP IPO: Dangote Rings Opening Bell at NGX

However, regional freight and prevailing prompt liquidity fluctuations impose a ceiling. Price metrics remain highly sensitive to macro geopolitical risk cues (Middle East supply concerns lift benchmark Brent into the $107/bbls territory).

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