Connect with us

Energy

NNPC Shares Updates  On Oil Exploration In Northern Nigeria

Published

on

. . . 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.”

ALSO READ: BREAKING: NNPC Ltd Clears Air On OVH Acquisition

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.”

Energy

Nigeria’s Q1 Gas Production Increases to 687bscf, Flaring Drops 8%

Published

on

Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s gas production rose by about 3 percent in the first quarter of 2026, while gas flaring declined by over 8 percent year-on-year.

An analysis of the commission’s gas production status reports for the first three months of 2025 and 2026 revealed that total gas output increased from 667.27 Billion Standard Cubic Feet (BSCF) in Q1 2025 to 687.09 billion scf in Q1 2026.

The increase of approximately 19.81 billion standard cubic feet represented a year-on-year growth of about 2.97 percent, highlighting continued slow but steady expansion in Nigeria’s gas sector amid the federal government’s push to deepen gas utilisation and monetisation.

In addition, the NUPRC figures had it that January 2026 gas production stood at 233.96 billion scf, compared to 236.32 billion scf in January 2025.

However, production rebounded strongly in the subsequent months, with February 2026 output rising to 212.62 billion scf from 199.68 billion scf in February 2025.

In the same vein, March 2026 production climbed to 240.51 billion scf, compared to 231.28 billion scf recorded in March 2025, making it the highest monthly production level in the period under review.

ALSO READ:

At the same time, the data showed marked improvement in gas flare management. Total gas flared in Q1 2025 stood at 50.95 billion scf, compared to 46.83 billion scf in Q1 2026. The reduction of about 4.12 billion scf translated to a decline of roughly 8.1 percent year-on-year.

Similarly, average flare intensity improved significantly during the period. The average gas flare rate dropped from about 7.65 percent in Q1 2025 to approximately 6.81 percent in Q1 2026, indicating that a larger proportion of produced gas was captured for productive use rather than burnt off.

In the same vein, monthly flare rates for Q1 2025 were 7.92 percent in January, 7.94 per cent in February and 7.08 percent in March. For Q1 2026, the flare rates declined to 7.34 percent in January, 6.62 percent in February and 6.48 percent in March.

The data also revealed a significant shift in the structure of Nigeria’s gas production. Associated gas production, which is gas produced alongside crude oil, declined during the review period.

Total associated gas output fell from 370.28 billion standard cubic feet in Q1 2025 to 332.82 billion standard cubic feet in Q1 2026. In contrast, non-associated gas production recorded substantial growth.

Non-associated gas output increased from 296.99 billion standard cubic feet in Q1 2025 to 354.17 billion standard cubic feet in Q1 2026, suggesting increased contribution from standalone gas projects and dedicated gas developments, rather than reliance on oil-linked gas production.

Also, export gas sales recorded one of the strongest improvements during the quarter. The NUPRC data showed that export gas sales rose from 223.99 billion standard cubic feet in Q1 2025 to 292.87 billion standard cubic feet in Q1 2026.

This represented an increase of about 68.89 billion standard cubic feet or approximately 30.75 percent year-on-year. Findings show that the increase was likely driven by stronger Liquefied Natural Gas (LNG) export performance and improved international demand for Nigerian gas supplies.

However, domestic gas sales weakened slightly during the same period. Domestic sales declined from 186.98 billion standard cubic feet in Q1 2025 to 171.15 billion standard cubic feet in Q1 2026, representing a drop of roughly 8.5 percent.

This raised concerns regarding the adequacy of gas supply to Nigeria’s domestic market, especially for power generation and industrial use. Despite the decline in domestic sales, gas utilisation efficiency improved marginally due to lower flare volumes.

The improved flare metrics suggested that operators were more efficient in capturing and commercialising produced gas. According to the data, total utilised gas stood at 639.91 billion scf in Q1 2025 and 639.68 billion scf in Q1 2026, indicating relatively stable utilisation volumes despite higher production.

With proven gas reserves estimated at about 215.19 trillion cubic feet (TCF), Nigeria has in recent years increasingly prioritised natural gas as a transition fuel capable of supporting domestic energy needs, industrial growth, petrochemical expansion and export earnings.

The federal government has also intensified efforts to reduce routine gas flaring through stricter regulatory enforcement and commercialisation initiatives targeted at flare gas recovery, especially through the Nigerian Gas Flare Commercialisation Programme (NGFCP).

Continue Reading

Energy

Renewed US-Iran Tensions Drag Oil Price Northwards

Published

on

After the United States carried out what it described as defensive strikes in southern Iran, which put fresh question marks over the fragile ceasefire and ongoing peace talks between Washington and Tehran, oil prices spiralled on Tuesday.

The world is taken aback because the strikes came in the midst of hopes that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

Consequently, from about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 percent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

ALSO READ: VDM in Trouble as Presidency Seeks Legal Action Over Alleged Fake Tinubu Audio

Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

Continue Reading

Energy

At 92% Completion, NLNG Train 7 Nears Pre-commissioning Phase

Published

on

The seventh gas liquefaction train of the Nigeria Liquefied Natural Gas (NLNG) Limited is on the verge of completion, having reached 92 percent of project stages.

The plant which aligns with existing trains at the company’s gas processing complex in Bonny Island, Rivers State, will propel Nigeria’s LNG production capacity with additional 8.0 million tons per annum (mtpa) from current 22 mtpa to 30 mpta upon completion.

Managing Director and Chief Executive Officer, NLNG, Adeleye Falade, made the revelation at a forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

According to him, the $7.0 billion project driven by Saipem, Chiyoda, Daewoo continues to enjoy broad support from the presidency and industry regulators.

In a presentation delivered on his behalf at the event, Falade stated that the project has so far consumed a significant 120 million man hours out of the target 200 million man hours of mostly indigenous labour.

He also declared that the company has enhanced all safety measures on the construction site after recording two lost time on injury (LTI) incidents. He assured that the project contractors are prioritizing workplace safety as the project drives to pre-commissioning stages.

Mr Falade, whose presentation was delivered by Train 7 Project Manager, Ali Uwais, also noted that the Train 7 project has helped galvanize local investment in steel fabrication and galvanizing capabilities, pointing at the 4000 tons of steel already deployed in the project.

He also pointed to the spur effect in the domestic cable manufacturing industry, stating that all cables used in the project are manufactured in Nigeria. He, however, added that additional interventions are required to close quality gaps in the local manufacturing industry.

ALSO READ: S&P Credits Dangote Refinery, Key Reforms over Nigeria’s Economic Revival

In noting the urgent need for in-country standard accountabilities, Mr Falade challenged agencies and regulators in the manufacturing industry to rise to the plate of ensuring international competitiveness on product quality.’

In counting some of the interventions driven by the company to close capacity and capability gaps in the domestic industry, he noted that the NLNG is relentless in establishing centers of excellence in tertiary institutions in the country with the purpose of addressing human capacity deficits.

The Train 7 project alone, he pointed out, has facilitated the training of 13,000 Nigerians, bolstered community focused participation initiatives, and facilitated rapid infrastructure development in the host Bonny Island.

Mr Falade told the industry audience at the event that the real value of the Train 7 project must transcend site activities to capture capacity, facilities and infrastructure developed for the project.

He called on other players in the industry to contribute to building capacity, standards and quality that compete globally, adding that Train 7 proves that Nigeria can grow and develop to global standards.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x