Energy
NNPC Shares Updates On Oil Exploration In Northern Nigeria
. . . Pledges Support For FG’s Ambition In Frontier Regions
The Nigerian National Petroleum Company Limited (NNPC Ltd) has provided updates on its crude oil exploration activities in the Northern part of the country, reiterating its commitment to achieving the Federal Government’s aspirations in the frontier basins.
“The company has been actively drilling in basins in and around Northern Nigeria, as a result of the need to increase oil exploration in the country’s frontier basins”.
This was contained in a publication authored by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, who noted that “this is a strategic engagement that NNPC Ltd will not compromise on.”
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Soneye pointed out that the NNPC Ltd was intensifying patriotic efforts, making significant progress, and advancing considerable prospects to make do its promises to Nigerians.
Soneye, added that the discovery and exploration of crude oil in the north will not only appear as a dream pursued, but as an economic reality to boost oil production as well as deepen the strength and efficiency of the petroleum industry value chain in Nigeria.
He said: “NNPC Ltd, in compliance with the Petroleum Industry Act, PIA, is leaving no stone unturned to continue oil drilling projects in the North after decades of exploration in other basins.
“With crude oil reserves of more than 37 billion barrels and the 6th largest world producer, the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the north eastern part of the country will only accentuate the prosperity and growth of Nigeria in the comity of nations.
“It is therefore untrue for naysayers or sceptics to claim that NNPC has halted the search for oil in Nigeria’s inland basins. On the contrary, NNPC Ltd is intensifying its patriotic efforts, making significant progress, and advancing considerable prospects to make do its promises no matter whose ox is gored.”
While stating that the NNPC Ltd would not suspend its inland basins oil and gas exploration activities, as some have suggested, he quipped that “Instead, the company is intensifying efforts to expedite the process and ensure the efficient exploitation of hydrocarbon resources in these areas, thereby contributing to national energy security
The NNPC Ltd has assured that contrary to insinuations in some quarters, oil exploration in the northern of the country is on course.
Soneye made this clarification in a recent publication noting that the company in compliance with the PIA 2021, is leaving no stone unturned to continue oil drilling projects in the North after decades of exploration in the South.
He emphasized that the company is currently active in the inland basins of Nigeria with some drilling projects including Wadi-2 Appraisal/Exploratory Well in OPL 732 and Ebenyi-1 Exploration Well in OPL 826.
According to him, the Wadi-2 Appraisal/Exploratory Well in OPL 732 in Borno State, within the Chad Basin, was spudded on November 4, 2023, and drilled to a total depth of 12,050 feet.
He noted that the drilling phase concluded on June 29, 2024 and the preliminary results from the geological evaluation of the well objectives led to post-drilling well testing, which began on July 4, 2024, and is ongoing.
“This testing aims to further evaluate the target reservoirs for the occurrence of a commercial accumulation of hydrocarbons and to obtain data for future field development,” he stated.
On Ebenyi-1 Exploration Well in OPL 826, which is situated in Nasarawa State within the Middle Benue Trough, drilling began on July 17, 2023.
“The 17½” hole section was drilled and cased to a depth of 3,449 feet. The drilling operations faced challenges due to issues with the hole and equipment breakdowns. The turnkey contractor is finalizing plans to replace the drilling equipment with newer models to continue drilling operations to the planned total depth of 14,250 feet”, Soneye stated.
On the Kolmani River where in 2019 1 billion barrels of oil reserves and 500 billion cubic feet of gas was discovered, Soneye said the defunct Frontier Exploration Services (FES) of NNPC Ltd drilled three wells—Kolmani River-2, Kolmani River-3, and Kolmani River-4—in the Upper Benue Trough (northeast Nigeria) on its and its partners behalf.
He said the drilling campaign confirmed the presence of commercial hydrocarbon deposits in the Kolmani field of OPLs 809 and 810.
He noted that the rig that drilled the wells was subsequently moved to start the Nasarawa project, with the goal of replicating the success achieved in the Kolmani field.
“In collaboration with co-venturers, we are working towards the next phase of field development. The post-exploration planning takes time to meet regulatory requirements before the development phase can commence. Significant infrastructure projects are currently underway to facilitate the movement of heavy-duty equipment for the next project phase in the area.
“NNPC Ltd has not and will not suspend its inland basins oil and gas exploration activities, as some have suggested. Instead, the company is intensifying efforts to expedite the process and ensure the efficient exploitation of hydrocarbon resources in these areas, thereby contributing to national energy security”, Soneye stated.
The NNPC Ltd. spokesman said the current leadership of the company is committed to addressing every gap within its purview including infrastructural issues associated with the oil and gas industry such as gas shortages for power supply, pipeline protection and maintaining the uninterrupted provision of petroleum products across the country.
“For clarity, the NNPC Ltd, under the chairmanship of Chief Pius Akinyelure and managerial leadership of Mele Kyari, is well-positioned to capture the economic opportunities associated with developing and selling hydrocarbons in a resource rich country like Nigeria. These benefits are to be equitably distributed across society and create wealth for human capital development and capacity building.
“It is to further achieve this sufficiency that, under Kyari’s leadership, NNPC Ltd is fully aligned with the federal government’s ambition to accelerate economic growth and diversify the economy for the benefit of all Nigerians.
“This is being achieved through timely, credible, clear, and consistent policies. Since taking charge in July 2019, he has driven significant organizational renewal and greatly improved NNPC’s performance and long-term viability. The board and Kyari have been the driving force behind ambitious business growth and have instilled a new commercial mindset throughout the company’s entire value chain”, Soneye said.
He said Kyari’s leadership style has revitalized NNPC Ltd. workforce even as the company continues to attract the interest of business partners, customers, suppliers, and shareholders noting that since its transition to a commercial entity under the Petroleum Industry Act (PIA) 2021, and in line with the Company & Allied Matters Act (CAMA) provisions, NNPC Ltd. has consistently delivered value despite its unique operational challenges
Soneye said in addition to thus, the company hsd maintained steady growth.
“For the first time in 43 years, NNPC declared a profit. From a loss of N803 billion in 2018, the company reduced this to just N1.7 billion in 2019. Remarkably, in 2020, NNPC posted its first-ever profit of N287 billion, which grew to N674.1 billion in 2021, and by the end of 2022, it had soared to N2.548 trillion.
“In our 2023 Audited Financial Statement, AFS, we declared a net profit of N3.297 trillion for the fiscal year, indicating an increase of 28 percent (over N700 billion) compared to the N2.548 trillion recorded in 2022. The N3.297 trillion profit declared for 2023 is very symbolic as it is the highest ever to be recorded since inception, 46 years ago.
“In terms of asset growth, we have moved from N13,300 billion in 2019 to N15,836 billion in 2020; N16,262 billion in 2021; N58,652 billion in 2022; and N246,816 billion, in 2023,” the NNPC spokesman said.
He added that NNPC Ltd. will continue exploration in the north so that it can sustain this type of excellent financial performance and gains for its investors and Nigerians at large noting that “the more strategic explorations we make, the better for all of us.”
Reuters said Shell could cut hundreds of oil and gas exploration and development jobs in order to reduce costs, with Houston being especially impacted.
Shell, the major oil and energy company with its U.S. headquarters in Houston, may soon announce it is cutting 20 percent of its upstream workforce, according to a new report.
The Houston-based oil and gas giant is planning to reduce its oil and gas exploration staff by 20 percent, according to Reuters.
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Restructuring of the company’s “exploration and wells development and subsurface units” will see hundreds of job cuts around the world, and will be felt in particular in its offices in Houston, The Hague, and to a lesser degree in Britain, the sources told Reuters.
Shell did not respond to Chron’s request for comment on the impending layoffs. The energy giant is Houston’s second-largest energy employer, employing an estimated 9,000 people in the area, according to Houston Business Journal research.
The workforce cuts are not confirmed, and must still be discussed with employee representatives, the news agency said.
Shell’s new CEO, Wael Sawan, is on a cost-saving drive to improve the company’s performance. “Shell aims to create more value with less emissions by focusing on performance, discipline and simplification across the business. That includes delivering structural operating cost reductions of $2-3 billion by the end of 2025,” Shell said in a statement sent to Reuters.
In recent years, the business has also divested in a number of industries, including refineries and renewables. Earlier this week, Shell sold a pipeline and terminal system near the Houston Ship Channel that it had previously integrated into the Deer Park Refinery to a Houston-based business. Previously, Shell sold its interest in the Deer Park Refinery to Petroleos Mexicanos, or Pemex, for $596 million in 2022.
In 2022, Shell also sold its refinery in Mobile, Alabama, to Vertex Energy Inc. of Houston.
Decades after helping establish Houston’s reputation as the Energy Capital of the World, oil and gas giant Shell is shifting its focus.
The company recently published its Energy Transition Strategy 2024 report and announced it will be getting rid of about 1,000 gas stations over the next two years and funneling resources to expanding services for electric vehicles (EVs).
The company also set a goal of cutting down customers’ carbon emissions, which rose to 569 million tonnes in 2021, by 25-30 percent by 2030. “Our target to become a net-zero emissions energy business by 2050 remains at the heart of our strategy,” the report stated.
Courtesy – Chron
The Nigerian National Petroleum Company Limited (NNPC Ltd) has supplied 30 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals Company.
The Executive Vice President of NNPCL Downstream, Adedapo Segun, made the disclosure on Thursday while speaking on Arise Television.
He revealed that there were plans to supply an additional 17 million barrels soon.
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Specifically, Segun revealed that the NNPC Ltd would supply 6.3 million barrels in September and an additional 11.3 million barrels in October.
He said, “We have supplied about 30 million barrels to Dangote so far — 6.3 million this month, and we will supply 11.3 million in October.”
He explained that the supplies were part of the Federal Government’s decision to sell crude to local refineries.
Segun pointed out that the 6.3 million barrels will be delivered in seven cargoes.
He expressed concern that the current pump price was not reflective of the market realities.
“The pump price today is not reflective of the market. The NNPC Ltd is the sole importer of Premium Motor Spirit (PMS) in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” he said.
He opined that market forces should drive fuel prices instead of one business entity fixing prices.
He clarified that the NNPC Ltd’s role as the sole importer of petrol was not a deliberate decision but rather a response to market conditions.
“Let me put it into proper perspective. The NNPC is not a regulator. We didn’t choose to be the sole importer. We don’t determine who participates in the market. We stepped in when others reduced their participation. It is not about us wanting to be monopolists,” Segun stated.
In addition, he explained that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.
“Market conditions need to be ideal, and there needs to be FX liquidity,” he added.
He highlighted that the NNPC Ltd has been working closely with private refineries, including Dangote Refinery, to ensure a steady supply of crude oil for processing.
. . . Assures On Steady Supply, End Of Polypropylene Importation By Oct
The good news about the rollout of premium motor spirit (PMS) also known as petrol by the Dangote Petroleum Refinery and Petrochemicals is that Nigerians will enjoy steady supply and gain a clear understanding of the country’s actual fuel consumption.
The President of the Dangote Group, Aliko Dangote, offered the assurances at the refinery in Ibeju-Lekki, Lagos, while confirming the rollout of petrol, from the world’s largest single-train refinery with a capacity of 650,000 barrels per day.
On the achievement of starting PMS production 28 years after Nigeria’s four refineries ceased domestic refining, Dangote, emphasised that this development would boost the industrial and manufacturing sectors.
He highlighted that the refinery would significantly reduce fuel imports, saving foreign exchange, and contributing to stabilising the naira, lowering inflation, and reducing the cost of living.
Dangote, accompanied by Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, and Group Commercial Operations Director at DIL, Hajiya Fatima Aliko-Dangote, described this milestone as a transformative moment for Nigeria, ending years of fuel imports.
He expressed gratitude to Nigerians for their support and praised President Bola Ahmed Tinubu for fostering an environment that made the successful launch of the 650,000 barrels per day refinery possible.
He stated, “Today is a momentous occasion because Nigeria has not produced petrol, or gasoline, for many years. As I stand here, I want to extend my gratitude to the people of Nigeria and to President Bola Ahmed Tinubu’s administration for creating the environment that has enabled us to achieve this monumental task. This development will provide energy for our nation’s growth, development, and prosperity.”
He continued, “I want to personally thank Mr. President for introducing the concept of ‘Naira for Crude’ and ‘Naira for Products.’ This initiative will bring much-needed stability to the Naira by reducing the demand for dollars in the market by 40%, which will help stabilise the exchange rate.
“But that’s not all. It will also address issues like ‘round-tripping,’ where fuel is documented but doesn’t actually enter Nigeria. With this new refinery, we will have a clear view of true consumption. We’ll be able to track every loaded truck and, as much as possible, monitor loaded ships. This will allow us to precisely determine consumption patterns, though that’s a topic for another discussion.
“Today, we are here to celebrate and give thanks to God Almighty for bringing us to this point where we can produce gasoline. Many doubted we would achieve this, but we have delivered.
“We owe a debt of gratitude to the President and his government. Without their support, we wouldn’t be where we are today. I believe this refinery will transform not only Nigeria but also the entire Sub-Saharan Africa. Our capacity will not only meet Nigeria’s needs but also serve the demands of the broader region.”
Dangote remarked, “This petrol might be a bit cleaner compared to what we had before. It’s of the highest quality, ensuring that your vehicle’s engine will last longer. The quality of this fuel can match any premium standard worldwide, including those in Europe and America. No one can surpass us in terms of quality. Today is truly a celebration for us Nigerians.
“We are committed to ensuring that starting in October, there will be no need to import polypropylene. Our petrochemical plant will be fully capable of meeting all local demands.”
While assuring that the refinery will guarantee the availability of petrol in Nigeria, Dangote clarified that the nation’s oil company, the Nigerian National Petroleum Corporation Limited, NNPCL, is responsible for controlling petrol pump prices.
He described this development as a significant turnaround for the country, ending years of not producing a single litre of petrol domestically.
Dangote emphasised that while he can ensure a steady supply of fuel from the refinery, the NNPC Ltd will manage pricing.
“Pricing is controlled by NNPC. For now, we focus on ensuring that the products are available — that’s what I can guarantee,” Dangote said.
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