Energy
Nigeria at 63 – Chevron Nigeria’s Partnership with Nigeria for socio-economic development
As Nigeria celebrates her 63rd independence anniversary, Chevron companies in Nigeria are proud of our partnership and contribution to the social and economic development of the country. In its six decades of operation in Nigeria, Chevron Nigeria has continued to make significant investments in the country that have helped generate socio-economic development in several communities across Nigeria.
The Chairman and Managing Director, Chevron Nigeria and Mid-Africa Business unit, Rick Kennedy explains the business perspective of Chevron Nigeria thus: “At Chevron Nigeria, we strive to build lasting relationships to help enable human progress now and into the future. Chevron has a long commitment to Nigeria. We have been making significant investments in Nigeria for over 60 years, contributing to the growth and development of the country.”
According to Rick, “Chevron Nigeria has been successful in leading and investing in some major initiatives in the Nigerian oil and gas industry. These include the development of the Deep Water Agbami project which has produced over 1 billion barrels of oil, the development of the Escravos Gas Processing (EGP) facility to enable the reduction of flares and be the largest supplier of on-spec domestic gas in Nigeria, and the development of the Escravos Gas-to-Liquids (EGTL) facility to reduce gas flaring and produce high quality diesel. Also, in partnership with the Economic Community of West African State (ECOWAS), Chevron Nigeria led the development of the ~700km West African Gas Pipeline (WAGP) project through which Nigeria supplies gas to Benin, Togo, and Ghana, helping to boost economic development in the region.”
Chevron Nigeria has had a long history of commitment to Nigerian Content development. Chevron companies in Nigeria had developed and imbibed the Local/Nigerian Content development philosophy well before the enactment of the Nigeran Oil and Gas Industry Content Development Act (“NOGICD Act”) in April 2010. Chevron has helped in building the capacities of several Nigerian businesses by providing training, contracts, and procurement opportunities to Nigerians on all projects in our operations. For the last 10 years, one of the Chevron Nigeria companies, Chevron Nigeria Limited (“CNL”)has spent an estimated annual average of $1 billion on Nigerian suppliers and service providers. CNL’s Chairman/Managing emphasizes that “Chevron does all this, not because it is compelled to, but because it is the right thing to do.”
Esimaje Brikinn, Chevron Nigeria’s General Manager, Policy, Government and Public Affairs, highlighted Chevron Nigeria’s focus on helping to engender the development of communities in the Niger Delta through the erstwhile Global Memorandum of Understanding (GMoU), a community-driven, participatory partnership model for community engagement pioneered by Chevron Nigeria in 2005.
“Through the GMoU, we provided funds to execute hundreds of projects in the communities where we operate in the Niger Delta region. This has led to social investment projects benefitting over 600 communities in the Niger Delta area. We will be leveraging our experience with the GMoU in the implementation of the Host Community Development Trust (HCDT) provisions of the Petroleum Industry Act (PIA)”, he stated. “In 2010, Chevron established the Partnership Initiatives in the Niger Delta (PIND), a non-profit organization working with partners to complement the GMoU, build peace and address the macro socio-economic issues in the Niger Delta region. Chevron has invested over $100 million in PIND and leveraged a corresponding amount from investors and partners. PIND’s programmes have continued to create socio-economic impact in the Niger Delta region through the twin pillars of economic development and peace building, leading to increased productivity and incomes, jobs, and reduced conflict,” Esimaje said.
Chevron Nigeria’s social investment footprint extends beyond its areas of operation. Among other health initiatives, Chevron Nigeria built and donated a DNA Molecular laboratory to the University of Lagos Teaching Hospital, and the facility is very significant to medical research in Nigeria. In the heat of the coronavirus (“COVID-19”) pandemic, Chevron Nigeria donated a Polymerase Chain Reaction (PCR) laboratory to Warri Central Hospital to support the Delta State government in the fight against the COVID-19 pandemic, in addition to other industry-collaborations. Chevron Nigeria has also implemented health initiatives such as the Roll Back Malaria programmes, Prevention of Mother to-Child transmission of HIV/AIDS and awareness programmes on River blindness, etc.
In its Deep offshore operations, Chevron Nigeria has continued to implement projects and programmes in the areas of health, education, and economic development across Nigeria. For instance, Star Deepwater Petroleum Company Limited (a Chevron company) and its parties in the Agbami field – Famfa Oil Limited, Nigerian National Petroleum Corporation (NNPC), Equinor Nigeria Energy Company Limited, and Prime 127 Nigeria Limited – have been investing in fighting Tuberculosis (TB) with the construction and equipment of chest clinics in Nigeria to support the treatment and care of tuberculosis patients in Nigeria. Currently 28 such chest clinics fully equipped with standard X-Ray machines, male and female wards, treatment rooms, laboratories and Gene Xpert Machines have been completed across the country to support Nigerian health system. The Agbami parties have also donated nine (9) mother-and-child health care centers and one medical diagnostics laboratory in some States in Nigeria. Some of the donated chest clinics and mother and childcare centers became useful for COVID-19 response in some states during the heat of the pandemic.
Chevron Nigeria continues to support development of education in the Niger Delta region and across the country through development of education infrastructure, capacity building and scholarships. The scholarships include: the Nigerian National Petroleum Company Limited/Chevron Nigeria Limited Joint Venture’s national university scholarship and the community scholarship program which caters for students in both secondary and tertiary institutions from communities in Chevron Nigeria’s areas of operations. Additionally, Chevron Nigeria awards scholarships to visually impaired students to enhance their access to quality education. Over 23,000 people have benefitted from the company’s scholarship programs which include scholarship for community postgraduates’ scholars in Nigeria and foreign universities.
Since inception of the Agbami Medical and Engineering Professional Scholarship programme in 2009, over 16,500 students from all the states of Nigeria have benefitted from the scholarship, out of which 715 students have graduated with first class degrees. Chevron Nigeria and its Deepwater parties have continued to invest in education infrastructure. The parties have executed 39 Science laboratory complexes and 25 conventional and hybrid libraries across the country. Also, Chevron and its partners take a wide-ranging activity to encourage students to develop interest in key subjects of Science, Technology, Engineering, and Mathematics (STEM) and, ultimately pursue STEM courses and career.
Chevron Corporation has also sponsored certain global health and environmental-related initiatives that have an impact in Nigeria. These efforts include the contribution to Global Fund against HIV/AIDS, malaria, and TB which has benefitted Nigeria in the areas of providing access to lifesaving antiretroviral therapy for people living with HIV, provision of long-lasting insecticide-treated mosquito nets and detection of tuberculosis cases. Also, as part of its efforts in environmental conservation, Chevron Nigeria with the support of Chevron Corporation, built and donated the Lekki Conservation Centre (LCC) to the Nigerian Conservation Foundation (NCF) in 1992. The 78-hectare facility has become a center of excellence in environmental research and education, reserved as a sanctuary for the rich flora and fauna of the Lekki Peninsula, Lagos. CNL also sponsors the Junior Tennis tournament, the National Arts competition, and other activities by various organizations.
Chevron Nigeria is optimistic about the future of the oil and gas business in Nigeria. As the Chairman/Managing Director emphasized: “Chevron takes a long-term view of Nigeria. The company has been making significant investments in the country for 60 years and it believes that with the right policies, laws and regulations, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits for all.”
Energy
NNPC Ltd Moots 70 Smart Stations
The Nigerian National Petroleum Company Limited (NNPC Ltd) would be deploying between 50 and 70 smart, self-service filling stations across the country within the next six months.
The Executive Vice President, Downstream, NNPC Limited, Mumuni Dagazau, made the disclosure on Thursday in Abuja while speaking at the commissioning of a technology-driven service station with an electric vehicle charging facility.
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The initiative, he added, is part of a broader plan to transform its conventional retail outlets into modern energy and mobility hubs offering petrol, electric vehicle charging, liquefied petroleum gas, compressed natural gas and other services.
It was gathered that a model of the mega station is located along Bill Clinton Drive, Airport Road, Abuja.
Dagazau noted that the newly commissioned station was the first of several smart outlets to be introduced nationwide, adding that the concept was aimed at moving beyond traditional petrol retailing to provide customers with multiple energy and mobility services at a single location.
He said, “This is the first of many smart stations that we are going to have around the country. What the whole concept is, we are trying to turn from a filling station to an energy hub, and we are rolling out a lot of stations. I think even in Abuja, for this type of station, we have about four or five. We have another two that we’re launching out in Kano. This sort of smart stations that we’re doing.
“We are hoping to roll out a significant number, probably about 50 to 70 of these types of stations within the next six months. So this is what you’ll be seeing going forward from NNPC.
“So what you see here is that we are using all sorts of energy available to us, including EV, electric energy. We are going to be using gas; we are going to be using petrol. So it’s a centre where you can come, and we are going to be calling it our energy hub.”
The new model will allow customers to dispense petrol themselves, including at night, through a digital payment system, although attendants will remain at the stations to assist customers.
Dagazau dismissed concerns that the introduction of self-service pumps would result in job losses, arguing that the expanded services would require more workers to operate and support the technology.
“Well, you saw all of the pumps have attendants. So I really don’t know what they’re talking about when it comes to jobs. What NNPC does is create jobs. What this does is create a job.
“You have an energy hub today. If you look at the average filling station and you look at the energy hub, you’ll find more people in the energy hub than you would find in the filling stations, right? So what we are doing is creating jobs for that. Somebody has to support the integration.
“Somebody has to support the automation. The EVs, we have to be here to support people. So nothing really changes for us. What we’re doing is just what the delivery to the customer is. The guarantee, the comfort of the customer, that’s really what we’re after. That’s what the smart delivery is all about.”
On his part, the Executive Director, Retail Operations and Mobility, NNPC Limited, Shettima Baba-Kukawa, said the Abuja station had a storage capacity of 180,000 litres of Premium Motor Spirit (PMS) and 45,000 litres of Automotive Gas Oil (AGO).
The facility has 16 PMS pumps, two AGO pumps and six electric vehicle charging points installed in partnership with African Motor Works. It is powered entirely by solar energy through a system with a capacity of more than 200 kilowatts.
Baba-Kukawa said the outlet would also feature a quick-service restaurant, coffee shop, automated car wash, modern service bay and LPG dispensing facilities, while CNG and a vehicle conversion centre were also planned.
He said, “The station is going to run 24 hours. And it is fully self-service. So for customers who want to trust themselves and dispense themselves, they can actually do that. Transactions are done on their phone app and concluded by dispensing the exact amount of fuel they purchased into their tanks.”
Despite the digital system, he said customers unable to use the application would not be excluded, as staff would be available to assist them.
Dagazau also disclosed that the NNPC Ltd had begun plans to modernise its existing stations, stressing that the company was responding to changing customer expectations.
He said, “We’re going to modernise our station. That’s the word that we’re going to say.
“You don’t want to be going into the same station every day, every day, every day. You are demanding, so our modernisation is a demand from what the customer wants. The customer deserves a better quality of service, and we are delivering that quality of service.”
He said the company hoped that most of its stations would eventually adopt the new model, although the pace would depend on customer demand and the investment required.
Similarly, the Managing Director, NNPC Retail, Huub Stokman, said the transformation was necessary as the downstream petroleum market evolved following deregulation and the commencement of operations at the Dangote Refinery.
He said consumers were increasingly demanding quality products, competitive prices, faster services, digital payments and alternative energy options such as EV charging and CNG.
“Above all, especially the younger generation, they want us to deliver it sustainably, hence the fact that you also see that this station is completely solar-powered,” Stokman said.
In a goodwill message at the commissioning, the Comptroller-General, Nigeria Immigration Service, KN Nandap, commended the NNPC Ltd for combining conventional fuel retailing with electric vehicle charging and other modern services.
Nandap said the facility reflected Nigeria’s growing adoption of technology, cleaner energy and smart mobility, adding that such investments could create opportunities for employment, skills development and industrial growth.
The development comes as Nigeria’s downstream sector undergoes significant changes, with deregulation, increased domestic refining capacity and the emergence of alternative fuels reshaping how petroleum products are sold and consumed.
The NNPC Ltd said its smart-station programme was intended to position its retail network for the changing market by combining conventional fuel sales with cleaner energy, digital services and other consumer-focused offerings.
Energy
WAEP Targets 24-Month Production Surge, Gas Monetisation to Unlock 1.6bn Barrels
The Dangote Group’s upstream subsidiary, West Africa Exploration and Production Company (WAEP) is stepping up efforts to unlock more than 1.6 billion barrels of oil in place across its Nigerian assets, while targeting sustained production and gas monetisation within the next 24 months.
The company’s Managing Director and Chief Executive Officer, Olajumoke Cecilia Ajayi, said WAEP had adopted a phased strategy to revive production from its brownfield assets, generate early cash flow and reinvest the proceeds in wider field redevelopment.
Speaking at the AOW Energy Conference in Accra, Ghana, during a session titled “The Future of the African Operator: Building the IOCs of Tomorrow,” Ajayi said the company’s Oil Mining Leases 71 and 72, previously operated by Shell, represented a substantial resource opportunity, with more than 1.6 billion barrels of oil in place and about 1.9 trillion cubic feet of gas, based on discoveries to date.
The session, which also featured Olumide Ogunfowora, Adegbola Adesina, Temitope Edun and Uduakobong Equere, examined how African owned exploration and production companies can develop the technical, financial and institutional capacity required to compete at scale and take a larger role in the continent’s upstream industry. Ajayi, who is also President of the Nigerian Association of Petroleum Explorationists (NAPE), later moderated a separate session, “The Nigerian Upstream Opportunity: Unpacking Nigeria’s Basins.”
For WAEP, she said, the immediate priority is to extract value from existing production opportunities while building the foundation for long term redevelopment. “The first thing is to look at the low hanging fruit, the short term oil gains, generate cash flow from that, put it back into the assets and start redevelopment. And that’s exactly what is happening currently,” Ajayi said.
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The strategy is already moving into the execution phase as Ajayi noted that WAEP had signed contracts for three jack up rigs, with drilling expected to begin in December as the company seeks to increase production and unlock additional value from the OML 71 and OML 72 portfolio. “We will be drilling to ramp up production and also bring out the value in the asset,” she said. The drilling campaign is being supported by six field development plan studies currently under way, which Ajayi said would provide the basis for a series of “back to back developments” across the portfolio.
The combination of near term production opportunities, development drilling and field planning is expected to create a pipeline of activity beyond the initial drilling campaign. A potentially significant element of WAEP’s strategy is its relationship with Dangote Petroleum Refinery and Petrochemicals, which Ajayi identified as a potential domestic market for the company’s crude.
“One of the shareholders, one of the partners on this asset, is the owner of the largest refinery in Africa, Dangote Petroleum Refinery and Petrochemicals. So the oil would definitely be needed by the refinery,” she said.
The relationship could strengthen the link between Nigerian upstream production and domestic refining at a time when the country is seeking to retain more value from its crude within the domestic energy system.
Ajayi said WAEP was also working towards establishing a dedicated terminal to support crude evacuation as production increases. The proposed terminal could potentially serve not only WAEP but other producers seeking to aggregate and evacuate crude, creating an additional commercial opportunity around the company’s infrastructure.
Ajayi said the evolution of African independent operators would ultimately depend on their ability to transform asset ownership into sustained production and value creation. For companies taking over mature or brownfield assets from international oil companies, she said, the challenge extends beyond reserves and licences to include technical expertise, capital deployment, operational discipline and the ability to sustain production.
That capability, she said, was central to WAEP’s strategy. “We need to put round pegs in round holes. We need to put the right skill and competence in the different units,” Ajayi said. She said the company had been deliberate about strengthening its technical and organisational capabilities as it prepares for the next phase of development.
Within the next 24 months, she expects the company to have significantly ramped up production while putting gas monetisation infrastructure and arrangements in place. “Between now and the next 24 months, gas monetisation would have been in place. We would have ramped up production consistently,” she said. “Not produce today, tomorrow you are down. Consistent, sustained production.”
Energy
Why Fuel Prices Remain Volatile — NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has identified crude oil sourcing, single-source domestic refining, logistics and transportation costs among factors driving volatility in fuel pump prices.
Head of Public Affairs, NMDPRA, Mr George Ene-Ita, made this known in an interview with the News Agency of Nigeria in Abuja on Sunday.
Ene-Ita described the issues surrounding continuous fuel price increases as knotty, adding that fuel prices had been completely deregulated and were, therefore, subject to market volatility.
He said the sourcing of crude oil as feedstock and the time lag between crude procurement and arrival at refineries were factored into product pricing.
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According to him, marine and inland taxes associated with the movement and supply of petroleum products were also factored into the pricing.
“This issue is knotty in the sense that there are various factors involved.
“Pump price of petrol has been completely deregulated. And if this is the case, it also means that all volatilities associated with supply have to be factored in.
“These factors include single-source domestic refining, sourcing of crude oil as feedstock, time lag between when crude is sourced offshore and when it eventually arrives at the refinery.
“They also include time lag between when PMS cargoes are ordered and when they eventually arrive our ports for subsequent inland distribution and supply in the case of imported fuel.
“There are also transportation and landing costs, as well as marine and inland taxes.
“Perhaps when the domestic refining ecosystem becomes more robust, competitive and sustainable, the issues regarding pricing will become clearer and more beneficial to consumers,” he said.
Ene-Ita said refinery pricing templates and ex-depot prices were not regulated under the current framework.
He, however, said NMDPRA was collaborating with stakeholders and agencies such as the Federal Competition and Consumer Protection Commission to ensure price equilibrium and parity at the last mile.
NAN reports that the current market price for Brent crude oil is $96.28 per barrel, driven by the ongoing geopolitical conflict and tensions in the Middle East.
The pump price of fuel currently ranges between N1,299 and N1,350 in the FCT, following an upward adjustment in the gantry (ex-depot) price by the Dangote Refinery, which ranges between N1,265 and N1,290 per litre.
Motorists and consumers have expressed concern over the continued rise in fuel pump prices, saying it has worsened hardship, inflation and the high cost of living.
Reacting to this, the Independent Petroleum Marketers Association of Nigeria urged the Federal Government to intervene in crude oil pricing for domestic refining to moderate fuel prices and ease pressure on consumers.
IPMAN President, Maigandi Garima, told NAN that the current international crude oil market posed challenges to domestic petrol pricing because refiners had to procure crude at prevailing market prices.
Garima said higher crude oil prices translated into higher production costs for refiners, who would subsequently pass the additional cost to the market.
He called for government intervention to reduce the cost of crude supplied to domestic refineries during periods of international market volatility.
According to him, such intervention should not be interpreted as a return to fuel subsidy, but as a temporary measure to support domestic refining and reduce pressure on consumers.
“What we are saying is that if Nigerians can make this huge investment, we should support them. Government can intervene by reducing the cost of crude oil to the refinery.
“When the refinery refines the product at a lower cost, it can also reduce the price for Nigerians, and this will help the economy,” he said.
Garima also called for a more predictable crude oil pricing arrangement for domestic refineries, saying frequent fluctuations made it difficult to sustain stable fuel prices.
He urged the government and relevant stakeholders to explore mechanisms that would provide a more stable crude supply and pricing framework for domestic refining.
He said such an arrangement would enable domestic refineries to plan better and potentially provide more stable prices for petroleum products.
Courtesy – NAN





