Business
NNPC Ltd: $3.4bn Saved Through Contract Restructuring
The Nigerian National Petroleum Company Limited (NNPC Ltd) claimed that it saved $3.4 billion through contract restructuring and optimisation between April 2025 and July 2026.
Group Chief Executive Officer, Bayo Ojulari, made the assertion in Abuja at the opening of the 25th Nigeria Oil & Gas (NOG) Energy Week, while highlighting the impact of ongoing reforms aimed at improving operational efficiency, reducing costs, strengthening partnerships, and enhancing value delivery to the federation.
Ojulari also stated that the national oil company had maintained full compliance with its joint venture cash call obligations.
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According to the scorecard presented by the NNPC Ltd, the $3.4 billion cost savings were realised through contract restructuring and optimisation initiatives across the company’s operations.
The reforms also contributed to an increase in government revenue, with the NNPC Ltd reporting a government take of N19.5 trillion, representing a 21.8 per cent year-on-year increase.
Besides, a major highlight of the report was NNPC’s 100 percent compliance with its joint venture cash call obligations across all its joint ventures from Financial Year 2025 to June 2026.
However, the company’s partners recorded a blended compliance rate of just 61 percent.
Of the 27 joint venture partners, only six were fully current with their obligations, while 13 recorded partial compliance with an average payment rate of 72 percent, and eight remained in significant default, paying an average of only 14 percent, prompting Joint Operating Agreement remedies.
The NNPC Ltd said it remained committed to sustaining its cash call obligations to support Nigeria’s target of achieving two million barrels of oil production per day.
Operationally, the company reported a six percent increase in crude oil production year-on-year and an 8.1 percent rise in gas production over the same period, reflecting improvements in upstream operations.
Ojulari also highlighted several strategic partnerships concluded since the last Nigeria Oil and Gas Conference, including a long term gas supply agreement with Nigeria LNG, progress on deepwater investments valued at over $20 billion, refinery related partnerships, industrial gas projects, and new gas supply arrangements.
Looking ahead, the company identified seven priority projects expected to drive production and gas infrastructure growth through 2027.
These, it said, included the UTM Floating LNG project, the OB3 East West Connector, the AKK gas pipeline, refinery technical enhancement projects, the Zabazaba deepwater development, the Owowo field, and the BSWAP project.
The state oil major added that the combination of cost optimisation, stronger operational performance, improved infrastructure reliability, and strategic partnerships would reinforce Nigeria’s energy security, boost government revenues, and support sustainable growth in oil and gas production.
Ojulari said the national oil company achieved 98 percent recovery across five crude export terminals between April 2025 and May 2026, up from one per cent at Bonny in June 2022.
He put current output at 1.71mbpd, the highest in five years, with the NNPC Exploration and Production Limited (NEPL) hitting a record 365,000 bpd.
Gas production, he said, reached 7.5 billion standard cubic feet per day (bscf/d) following the River Niger crossing on the Ajaokuta-Kaduna-Kano (AKK) Pipeline and inauguration of the ANOH Gas Plant.
Ojulari added that the NNPC Ltd had “zero tolerance for partners who are not able to fund their Cash-call” and had begun invoking default clauses.
He stressed collaboration over control, saying, “We have rid ourselves of any pseudo-regulation. We are not the super-regulator. Let them regulate. We want to work.”
Business
Dangote Blames Marketers, IOCs for Lamu Refinery Protests
Nigerian billionaire and President of the Dangote Group, Aliko Dangote, has blamed local marketers and international oil companies for fuelling protests over land earmarked for his proposed $16bn oil refinery in Lamu, Kenya.
Dangote and the President of Kenya, William Ruto, performed the groundbreaking ceremony for the refinery in Lamu on Wednesday. This comes even as a court halted construction activities due to a land dispute.
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Dangote made the allegation while speaking to the BBC’s Focus on Africa programme, amid protests by some residents over compensation for land acquired for the refinery project.
The refinery is expected to have a processing capacity of 700,000 barrels per day when completed in 2030. Dangote disputed claims that the company had taken more land than it required, saying it only used the portion allocated to it by the Kenyan Government.
“They said some people are demonstrating; demonstrating about what? Have you ever seen people demonstrating against themselves in terms of development?” he asked.
Africa’s richest man dismissed the protests as “games played by local marketers and international players”, insisting the refinery would go ahead and would be ready by 2030 as planned.
The groundbreaking was also attended by the leaders of Uganda, Ethiopia, Togo and Benin. Dangote has offered regional governments a combined 30 per cent stake in the refinery, according to Reuters.
The billionaire insisted that the protests would not stop the refinery project, which he described as his largest proposed investment outside Nigeria.
The project is expected to become the largest refinery in East Africa and Kenya’s biggest infrastructure project since independence, surpassing the $5.1bn Standard Gauge Railway.
Dangote said the refinery would demonstrate that the success recorded with his 700,000bpd refinery in Nigeria could be replicated elsewhere on the continent.
“Lekki proved that it can be done, Lamu must prove that it can be repeated,” he said.
However, the Save Lamu campaign group has raised concerns about the environmental impact of the project on the local community. The co-founder of the group, Walid Ali, told the BBC that residents wanted to see the findings of the environmental impact assessment and the proposed mitigation measures.
A group of 133 Lamu residents had approached the Kenyan High Court in a bid to stop construction work. Following the legal action, activities including excavation and construction on the disputed land have been restricted pending the next court hearing, scheduled for October 14.
Dangote said the refinery would create about 60,000 jobs at the peak of construction, with local communities expected to benefit from the project.
The refinery will also include a 1,000-megawatt power plant designed to supply Dangote’s operations and other industries expected to establish businesses in the area.
Courtesy – The PUNCH
Business
Nigeria @ 66: Chevron Reaffirms Commitment to Partnership with Nigeria
As Nigeria marks its 66th Independence Anniversary, Chevron companies in Nigeria reaffirm their confidence in the country and their long-standing commitment to partnership, investment and responsible energy development.
For more than six decades, Chevron has contributed to Nigeria’s growth through oil and gas production, deepwater investment, gas development, local content, human capacity development and strategic community partnerships.
Chevron is a leading oil and gas producer and investor in Nigeria, with operations across the Niger Delta and interests in major deepwater assets. Jim Swartz, Chairman and Managing Director of Chevron Companies in Nigeria, said the company takes a long-term view of Nigeria, with continued focus on operational excellence, efficiency, innovation and investment across its portfolio. He noted that Chevron remains committed to building enduring relationships that enable human progress today and in the future.
To support sustained growth, Chevron is expanding and optimising its assets through exploration, infill drilling and production enhancement. The company supports the Petroleum Industry Act 2021 and the Federal Government’s efforts to strengthen the industry’s regulatory framework and investment climate.
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Since the PIA, Chevron has renewed and converted key joint-venture and deepwater leases; recorded discoveries at Meji NW-1, Delta South AA and Awodi-07; entered PPLs 2000 and 2001 through farm-in agreements; acquired deepwater block PPL 2010; and renewed Oil Prospecting Licence 215.
Chevron is also participating in strategic deepwater opportunities, including the announced Bonga Southwest/Aparo and Owowo/Usan developments. Completion of seismic acquisition across several deepwater leases is supporting future exploration, while planned infill drilling at the Agbami and non-operated Usan hubs is intended to mitigate natural production decline and sustain output.
Gas development remains another important pillar of Chevron’s contribution. Investments in the Escravos Gas Plant and Escravos Gas-to-Liquids facility have supported gas utilisation, reduced routine flaring and enabled production of high-quality products such as naphtha and refined diesel. Chevron also led the development of the approximately 700-kilometre West African Gas Pipeline, through which Nigeria supplies gas to Benin, Togo and Ghana, supporting regional economic growth and energy security.
Local content and human capacity development are central to Chevron’s operations. Nigerians account for more than 90 per cent of its in-country workforce. The company established its Local Content Policy in 1999, well before enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010, and continues to collaborate with the Nigerian Content Development and Monitoring Board while creating contract opportunities for Nigerian companies and contractors.
Beyond its operations, Chevron and its partners invest in health, education and environmental conservation. In health, the Agbami parties have constructed and equipped more than 28 chest clinics, donated nine mother-and-child healthcare centres and provided a medical diagnostics laboratory. These facilities strengthen tuberculosis treatment, maternal and child care, diagnostics and emergency response. Chevron Corporation has also supported global programmes addressing HIV/AIDS, malaria and tuberculosis, with benefits extending to Nigeria.
Chevron’s education programmes have benefited more than 23,000 people through scholarships, infrastructure and capacity building. Since 2009, the Agbami Medical and Engineering Professional Scholarship has supported more than 16,500 students nationwide, including 715 first-class graduates.
Chevron Nigeria and its deepwater partners have also delivered 39 science laboratory complexes and 25 conventional and hybrid libraries, while encouraging students to pursue science, technology, engineering and mathematics.
In environmental conservation, Chevron supported the establishment of the 78-hectare Lekki Conservation Centre and donated it to the Nigerian Conservation Foundation in 1992; today, it supports research, education and biodiversity protection.
As Nigeria celebrates 66 years of independence, Chevron’s message is clear: the company sees Nigeria as a long-term strategic partner and remains committed to investing in energy development, Nigerian capability and sustainable national progress. Through disciplined investment, collaboration and responsible operations, Chevron intends to continue contributing to Nigeria’s energy security, economic growth and shared prosperity.
Business
Nigeria Must Cut Farm-to-Market Losses to Bring Down Food Prices – Tinubu
President Bola Ahmed Tinubu has said Nigeria must reduce losses between farms and markets as part of efforts to bring down food prices and ease the cost of living.
Tinubu made this known in his Independence Day address to Nigerians on Thursday, as the country marked its 66th anniversary.
The President said reducing the cost of producing and transporting food would be critical to making essential goods more affordable for Nigerians.
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According to him, the government is expanding mechanised irrigation and dry-season farming while improving access to seeds, fertiliser, storage and transportation.
He said the government was also building and completing roads, railways and ports to improve the movement of agricultural produce and connect farms and factories to markets.
Tinubu explained that when farmers produce at lower costs and fewer crops are lost before reaching the market, the savings can ultimately be reflected in the prices paid by consumers.
“Our logic is simple. When a farmer produces more cheaply, when fewer crops are lost between the farm and the market, when a manufacturer spends less on electricity, when a truck reaches its destination faster, and when the business environment fosters fair competition, all those savings will ultimately find their way into the price of goods in the market,” he said.
The President said the measures form part of his administration’s broader plan to lower the cost of living and move the country towards what he described as an era of shared prosperity.





