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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

Dangote Refinery Recalls Redeployed Engineers

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On a conditional pardon after internal disciplinary measures linked to operational disruptions the Dangote Petroleum Refinery and Petrochemicals (DPRP) has recalled the engineers previously redeployed across its business units.

In an internal communication to staff, the company said the decision followed an extensive review process and numerous appeals from respected individuals, stakeholders, and the engineers. The refinery noted that while earlier actions were taken to protect operations and uphold organisational standards, it has now opted to offer a second opportunity to the staff.

Under the directive, according to a memo signed by the Group Vice President, Oil & Gas, Devakumar Edwin, all affected personnel will be invited for a meeting and subsequently reassigned to resume duties at the refinery.

It was gathered that the recall also covers those who did not take up earlier redeployment options offered by the company.

Management emphasised that the move reflects both a commitment to fairness and a belief in second chances, while reiterating that discipline, professionalism and adherence to corporate values remain non-negotiable.

“This decision was not an easy one. It reflects not only our belief in second chances but also serves as a clear reminder that loyalty, professionalism and adherence to organisational standards are non‑negotiable,” it said. “Effective immediately, all engineers previously redeployed to other business units, will be invited for a meeting and, subsequently, will be provided with an opportunity to render their services at our Petroleum Refinery. This would include those who did not avail the opportunity provided earlier for redeployment”.

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The company, however, issued a firm warning that any recurrence of misconduct would attract immediate and decisive sanctions, underscoring its zero-tolerance stance on actions capable of undermining operations.

The Dangote Refinery added that it expects the returning engineers to demonstrate renewed dedication as it continues efforts to strengthen operational efficiency and maintain its position as a key player in Nigeria’s oil and gas sector.

“We welcome our colleagues back, with the expectation of renewed dedication, and we look forward to working together to strengthen our operations and deliver excellence in the oil and gas sector,” it added.

Recall that the Dangote Group, in October 2025, redeployed some refinery engineers to other companies within the Group as part of measures to stabilise operations at the time.

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UAE Jolts Global Oil Market, Quits OPEC, OPEC+

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The United Arab Emirates (UAE) has withdrawn from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance.

The move marks a significant shift in global oil politics even as tensions in the Middle East continue unabated.

The decision, which will take effect from May 1, 2026, was disclosed in a statement issued on Tuesday by the UAE Ministry of Energy and Infrastructure, following what it described as a comprehensive review of its production strategy and future energy outlook.

Announcing the move, the ministry said the exit reflects the country’s evolving energy priorities and long-term economic vision.

The statement read, “The United Arab Emirates today announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+), effective 1 May 2026. This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.”

The UAE, one of OPEC’s key producers, noted that the decision was anchored on national interest and its desire to respond more flexibly to changing market realities.

“The decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the ministry added.

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The announcement comes against the backdrop of escalating geopolitical tensions in the region, particularly the ongoing Iran conflict, which has disrupted oil supply routes and heightened uncertainty in global energy markets.

Of particular concern is the Strait of Hormuz, a critical oil transit corridor through which a significant portion of the world’s crude supply passes. Recent threats and attacks linked to the crisis have raised fears of supply disruptions and price volatility.

The UAE acknowledged these short-term disruptions but maintained that long-term demand fundamentals remain strong.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the statement noted.

The move effectively ends nearly six decades of the UAE’s involvement in OPEC, which it joined in 1967 through Abu Dhabi, years before the formation of the federation in 1971.

Despite the exit, the UAE expressed appreciation for the organisation and its allies.

“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” the ministry stated.

“However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets.”

The UAE stressed that its withdrawal does not signal a retreat from global energy cooperation but rather a shift towards greater flexibility in managing its oil output.

It pledged to continue supplying the market in a responsible and measured manner.

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the statement said.

The country also highlighted its competitive advantage in producing lower-carbon crude, positioning itself as a key supplier in an evolving global energy mix.

“The UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction,” it added.

The exit could weaken OPEC’s cohesion and complicate efforts to manage global oil supply, especially at a time when geopolitical risks are already straining the system.

The alliance, which includes major non-OPEC producers such as Russia, has been central to stabilising oil prices since its formation in 2016.

However, rising tensions in the Middle East, coupled with shifting national priorities among member states, are increasingly testing the group’s unity.

The UAE said it would continue investing across the energy value chain, including oil, gas, renewables, and low-carbon technologies, as part of a broader diversification strategy.

“It will continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions, to support resilience and long-term energy system transformation,” the ministry stated.

The development comes at a critical time for the global economy, with energy markets already under pressure from geopolitical conflicts, supply chain disruptions, and the ongoing transition to cleaner energy sources.

For oil-dependent economies such as Nigeria, the implications are significant, as changes within OPEC and OPEC+ often influence crude prices, government revenues, and foreign exchange earnings, the developments present a mixed outlook, with potential revenue gains from higher crude prices but increased costs for refined petroleum products and broader economic instability.

The UAE’s decision could signal a broader shift in how major producers approach cooperation in an increasingly complex energy landscape.

As the Middle East crisis continues to unfold, attention will now turn to how OPEC responds to the exit, and whether the alliance can maintain unity in the face of mounting geopolitical and economic pressures.

The Organisation of the Petroleum Exporting Countries is one of the world’s most influential energy alliances, created in 1960 by five founding members, Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, during a meeting in Baghdad.

The group was established to coordinate petroleum policies among oil-producing countries, stabilise international oil markets, secure fair prices for producers, and ensure a steady supply of crude to consuming nations.

Over the decades, OPEC grew into a major force in the global economy, with its decisions on oil production often influencing crude prices worldwide. By increasing or cutting output quotas, the group can affect supply levels, making it a central player in determining global energy costs.

Its current members include major producers such as Saudi Arabia, the United Arab Emirates, Nigeria, Algeria, Libya, and Iraq.

While, OPEC+ is an expanded alliance formed in 2016 to include OPEC members and major non-OPEC oil-producing countries.

The “plus” refers to 10 additional producers led by Russia, alongside countries such as Kazakhstan, Mexico, and Oman.
The alliance was created after the 2014–2016 oil price crash, when crude prices plunged due to oversupply and weak demand.

Their monthly meetings are closely watched by governments, investors, refiners, and energy traders because any decision to raise or cut output can immediately influence international crude benchmarks such as Brent crude and West Texas Intermediate.

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Energy

NDPHC, NCDMB Partner on 10MW Power Supply to Odukpani Park

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The Niger Delta Power Holding Company Limited (NDPHC) has advanced plans to provide dedicated electricity supply to the Nigerian Oil and Gas Park in Odukpani, Cross River State, through a strategic partnership with the Nigerian Content Development and Monitoring Board (NCDMB).

The collaboration, which began with the submission of an Expression of Interest by the customer in 2025, has now progressed to a major engagement held on 25 February 2026, marking a critical step toward project execution and delivery.

Under the arrangement, as stated in a statement signed by NDPHC’s Head of Corporate Communications and External Relations, Emmanuel Ojor, NDPHC will supply 10 megawatts (MW) of electricity from its Calabar Generation Company Limited.

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The dedicated power provision is expected to ensure a stable, reliable, and sustainable energy supply for industrial operations within the park, addressing one of the key constraints to manufacturing and processing activities in Nigeria.

The Nigerian Oil and Gas Park in Odukpani is conceived as a strategic industrial hub aimed at supporting downstream oil and gas operators.

The facility is expected to facilitate the production, processing, and distribution of refined petroleum products and gas-based materials, while also promoting local manufacturing of equipment and components used in the sector.

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