Energy
NNPCL, Partners Ink 20-year 1.29bscf/d Feedgas Supply Deals
Some upstream gas suppliers and the Nigerian National Petroleum Company Limited (NNPCL) have inked long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG), which will involve delivery of 1.29 billion standard cubic feet per day (bscf/d) of feed gas.
This emerged as the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, mouthed that President Bola Tinubu remains committed to ensuring that oil companies that once exited the country are compelled to return, given the recent incentives provided in the sector by the government.
The 20-year agreements, with extension options between the NNPC and GSAs, were signed in Abuja, by the NLNG and Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; NNPC Gas Marketing Limited; NNPC E&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
According to a statement from the state oil major, the agreements are aimed at bridging the prolonged shortfall in upstream gas availability, and marks a major boost for Nigeria’s energy transition agenda and the federal government’s gas reforms aimed at strengthening the nation’s economic prosperity and energy security.
At the signing ceremony, the Group Chief Executive Officer of NNPCL, Bayo Ojulari, commended NLNG’s shareholders and the government for their long-term commitment to value delivery despite the challenges faced over the years.
He described the agreements as a giant step towards value creation and sustainable gas supply. “These GSAs have opened up opportunities for the growth of our industry both for local and international development. They’re hinged on collaboration, synergies and opportunities. We need to leverage economies of scale, share risk and opportunities for us to attain Mr. President’s Decade of Gas vision,” he said.
Ojulari lauded the enabling environment and private sector support fostered by Tinubu.
“It is important to commend the President’s tremendous effort that has enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business,” he added.
The GCEO reaffirmed NNPC’s readiness to accelerate the realisation of the Presidential Executive Orders for the industry, pledging to work with partners to unlock opportunities for collective prosperity, in line with the national gas development targets for incremental production.
On his part, NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a game-changer for Nigeria’s gas industry, and noted that they will enhance local gas production capacity, improve supply reliability, and advance the nation’s energy security, industrialisation aspirations, and economic growth.
“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila noted.
According to him, the new GSAs reinforce Nigeria’s role in the global energy market while strengthening feed gas supply to the Bonny Island plant and supporting the company’s expansion drive.
The Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV), with NNPC Ltd holding 49 percent, Shell Gas 25.6 percent, TotalEnergies 15 percent, and Eni International 10.4 percent.
The third-party gas suppliers, in a separate statement pointed out that the move is strategic to strengthen feedgas supply to its existing trains on Bonny Island and support the company’s expansion drive.
It said the new GSAs represent a significant boost to feedgas availability, enhancing NLNG’s capacity to meet its commercial commitments while laying the groundwork for expansion.
“This development is aligned with the Federal Government’s Decade of Gas initiative, which places natural gas at the centre of Nigeria’s industrialisation and energy transition agenda,” it added.
Meanwhile, Lokpobiri, mooted that Tinubu is ensuring that oil companies which once exited the country are compelled to return, given recent incentives provided in the sector by the government.
To this end, the minister noted that Nigeria is strengthening its position as a top global investment destination, welcoming international partners back to its oil and gas industry with competitive incentives and a renewed commitment to collaboration.
A statement in Abuja by the minister’s Special Adviser on Media and Communication, Nneamaka Okafor, said Lokpobiri made the remarks while receiving a delegation from Vaalco Energy, an American independent oil and gas exploration and development company.
In recent years, Nigeria has introduced a range of incentives in the oil sector aimed at attracting investment, boosting production, and stabilising revenues. Central to this is the Petroleum Industry Act (PIA) of 2021, which overhauled the fiscal and regulatory framework.
The law provides for more competitive royalty and tax regimes, especially for deep offshore and frontier acreages, where exploration costs are high as well as ensure that investors are offered production allowances, reduced hydrocarbon tax rates, and flexible royalty structures tied to price and terrain.
Beyond fiscal reforms, the government has also promoted gas development through incentives such as tax holidays, zero customs duties on equipment, and capital allowances for companies investing in domestic gas supply and infrastructure.
According to the statement, the American firm has also already expressed interest in re-entering Nigeria through the acquisition of Svenska’s PSC interest in Oil Mining Lease (OML) 145.
“The Government of President Bola Ahmed Tinubu is particularly interested in creating a better environment for companies that were once here but left for various reasons to return. We are prepared to offer incentives comparable to the best available globally.
“It is gratifying for us as a nation when those who have worked here become ambassadors, speaking of how friendly and conducive Nigeria is for business. We are glad to welcome you back,” Lokpobiri, who commended Vaalco’s renewed interest in Nigeria, was quoted as saying.
ALSO READ: Okpebholo Restores Water to Edo Central Communities
Lokpobiri assured that Nigeria’s oil sector policies now provide clarity, fiscal stability, and investor-friendly frameworks that encourage long-term partnerships.
“Your renewed presence will help us ramp up production and achieve our national energy objectives. Together, we can build a future of shared growth and prosperity,” he stressed.
In his remarks, Vaalco Energy’s Managing Director, Pieter Van der Groen, said the company still sees Nigeria as a key investment hub, explaining that as a listed company in the US, the firm already has access to funding.
“We are here to seek regulatory guidance for acquiring Svenska’s interest in OML 145, but more importantly, to return to Nigeria and invest in a stronger way. As a New York Stock Exchange-listed company, we have access to funding to develop the assets we acquire. We are not here to sit on them; we are here to produce,” the MD stated
Two commercial vessels have successfully passed through the Strait of Hormuz despite ongoing tensions in the Gulf, as Iran submitted its response to a United States proposal aimed at ending the war and reopening peace talks.
Iranian state media reported on Sunday that Tehran’s response was transmitted through Pakistan, which has been mediating between both sides.
According to Iranian state television, the response focused on ending hostilities “on all fronts”, particularly in Lebanon, and guaranteeing the safety of maritime traffic through the strategic waterway. The report, however, did not specify when or how the strait would fully reopen to international shipping.
The development came after Washington proposed halting the fighting before broader negotiations on contentious issues, including Iran’s nuclear programme. Reuters reports that there was no immediate reaction from the United States government.
The Strait of Hormuz, which previously handled about one-fifth of global oil supplies, has remained one of the most volatile flashpoints in the conflict, with Tehran restricting non-Iranian vessels from transiting the route.
Despite the tension, it was reported that the QatarEnergy-operated liquefied natural gas carrier, Al Kharaitiyat, safely crossed the strait and headed for Pakistan’s Port Qasim, according to shipping analytics firm Kpler.
ALSO READ: On Tinubu’s Directive, NNPC Ltd, NUPRC Remit N322bn, $116.9m to FAAC
The vessel became the first Qatari LNG carrier to transit the strait since the outbreak of the US-Israeli war with Iran on February 28.
Sources familiar with the arrangement said Iran approved the shipment to help ease Pakistan’s worsening electricity shortages caused by disrupted gas imports and to build confidence with both Qatar and Pakistan, which have been involved in mediation efforts.
Also on Sunday, Iran’s semi-official Tasnim news agency reported that a Panama-flagged bulk carrier bound for Brazil passed through the strait using a designated route approved by Iranian armed forces after an earlier failed attempt on May 4.
The passage of the vessels came amid continuing regional security threats.
Meanwhile, as tensions persist around the strategic waterway, Britain announced that it was deploying HMS Dragon, one of the Royal Navy’s six Type 45 destroyers, to the Middle East ahead of a possible multinational mission to protect shipping in the Strait of Hormuz.
According to the UK Ministry of Defence, the warship would “pre-position” in the region for a “potential role” in a future “strictly defensive and independent” operation.
BBC reports that British Prime Minister Keir Starmer, who is championing the proposed mission alongside French President Emmanuel Macron, said the operation would only proceed after active fighting in the region ends.
The deployment comes after months of disruption in the strait, which Iran has been controlling in retaliation for attacks by the US and Israel.
HMS Dragon, designed for anti-aircraft and anti-missile warfare, recently operated in the eastern Mediterranean, where it was tasked with protecting British air bases in Cyprus following a drone attack near RAF Akrotiri in March.
The UK Ministry of Defence said the latest deployment formed “part of prudent planning” and would allow the warship to contribute immediately to any future multinational maritime security mission.
The ministry added that the mission “provides the UK Armed Forces with additional options for the defensive multinational Hormuz mission”.
Last month, representatives from 51 countries reportedly met to discuss securing commercial shipping through the strait, with Britain and France leading discussions on a coordinated response.
Meanwhile, US President Donald Trump is facing growing pressure to end the conflict ahead of a planned visit to China this week, amid mounting fears that the war could deepen the global energy crisis and further destabilise the world economy.
Qatari Prime Minister Mohammed bin Abdulrahman al-Thani reportedly told Iranian Foreign Minister Abbas Araqchi that using the Strait of Hormuz as a “pressure tool” would worsen the crisis.
According to Qatar’s foreign ministry, the prime minister stressed during a telephone conversation that “freedom of navigation should not be compromised.” Over the weekend, oil prices hovered around $100 per barrel, according to reports by Oilprice.com.
As ongoing geopolitical tensions in the Middle East, driven by the US-Israel conflict with Iran, have removed an estimated 10 million barrels of oil per day from the global market, Africa, with Nigeria at the forefront, is emerging as the most viable region to help bridge the widening supply gap.
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, stated this while speaking during the Africa Energy Forum at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, United States.
Eyesan declared that Africa has become the new focal point of global energy discussions owing to its 125 billion barrels and 625 trillion cubic feet of natural gas reserves, respectively, representing 10 per cent of global reserves.
She noted that the sudden shortfall has shifted global attention to under-explored regions and that the only continent that promises to fill the supply gap is Africa.
“Today, we believe that about 10 million barrels have been taken off the market in a situation where you had a slight oversupply at one time. With 10 million off the market, there’s a huge deficit. The question on everybody’s lips is where this deficit will come from. Or rather, who will fill the gap?
“Let’s x-ray the North Sea. The North Sea was prolific in the past but is declining. North America, same story. And if you layer Asia on that, it’s all decline. However, the only continent that is showing promise today is no other than Africa”, she said.
Citing discoveries and huge oil and gas reserves across the continent, she pointed to Ghana, Mozambique, Tanzania, Senegal, and Namibia as examples.
ALSO READ: Pricing Issues See Domestic Refiners Reject $3.13bn Crude Oil
However, with such abundant reserves in Africa, she said the challenge was how to convert those opportunities into value.
For Nigeria, the NUPRC boss said the answer has been regulatory reform credited to the Petroleum Industry Act (PIA), enacted in 2021, which she noted was triggering a rebirth in the upstream, midstream, and downstream oil and gas sector.
“Nigeria has experienced a rebirth since 2021 and the rebirth was instrumental to the change and the opportunities that Nigeria has today.
“The PIA has provided fiscal clarity, regulatory efficiency, contract certainty, and transparency across the upstream, midstream, and downstream segments.
“The only way Africa, sitting on huge resources, can bridge that gap successfully is if we have the right regulatory systems to support the business terrain. And Nigeria is not alone in that march,” the NUPRC boss said.
In Nigeria, Eyesan said the results are already evident in investment trends compared to ten years before the PIA, when there was a steep decline in investment in the Nigerian oil and gas industry.
According to her, “About 15 years before the PIA, we were comfortably spending $15 billion annually on the upstream business. This declined to less than $7 billion at some point. Today, we see an upswing.”
She told the global audience in the room that several multi-billion-dollar Final Investment Decisions (FIDs) have been secured or are on the verge of being committed, including the Shell Bonga Project, the Ubeita Non-Associated Gas Project, the HI Gas Project, and the Zabazaba-Etan Field, which was expected to unlock $10.38 billion.
“These are huge projects and a signal that the tide has turned”, Eyesan stated.
In 2024 alone, she said the NUPRC approved 48 Field Development Plans (FDPs), describing that as a major index of progress in the oil and gas industry.
She said the industry has witnessed the enablements from the PIA and that opportunities were just waiting to be unlocked.
She reiterated that the ongoing licensing round, where 50 blocks are offered, and 300 companies are competing, would be concluded by the third quarter of 2026.
Eyesan also announced that another bid round would commence before the end of the 2025 bid round, saying that this was an indication that the opportunities were immense.
To support bidders, Eyesan said NUPRC was enhancing its National Data Repository with large-scale 2D and 3D seismic data acquisition through multi-client partnerships.
She expressed confidence that bidders who finally acquire the assets will work them and bring them to market in the shortest possible time.
To enable this, she explained that the data repository was also being upgraded for advanced analytics, as they seek to embrace artificial intelligence to quicken the process.
Underscoring the importance of capital investment in optimising Africa’s huge untapped oil and gas resources, Eyesan framed the continent’s energy challenge as one of infrastructure and capital rather than resources.
She recalled that Africa took the brunt during the start of the conversation on energy transition due to a lack of investment and infrastructure.
She urged investors to come and invest in the African oil and gas industry, assuring them of a quick return on their investments.
She added that Nigeria’s experience under the PIA demonstrates what was possible, saying: “The PIA has enabled a turnaround in the oil and gas industry. The opportunities are immense. The regulatory environment is there.”
Nigeria’s local refiners could not take up an estimated $3.13bn worth of crude oil offered to them in Q1 2026.
This was gleaned from data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which indicates that while crude producers made significant volumes available under the Domestic Crude Supply Obligation (DCSO), refiners were unable to take delivery of a large portion due to persistent commercial and structural challenges.
The latest data showed a significant mismatch between crude availability and actual refinery offtake, despite regulatory efforts to deepen domestic refining. The figures indicate that producers collectively made available 68.7 million barrels of crude between January and March, far above allocated requirements, yet refiners struggled to convert the offers into actual deliveries.
This translates to a weak conversion rate of about 36–46 per cent, underscoring persistent structural and commercial bottlenecks in the domestic crude supply chain.
Findings showed that the total gap between crude offered and actual refinery offtake stood at 40.3 million barrels in the three-month period, with the shortfall valued at about $3.13bn using conservative average prices.
Figures released by the NUPRC indicated that while 61.9 million barrels were allocated to domestic refiners during the period, oil producers collectively offered 68.7 million barrels.
ALSO READ: NUPRC, NLNG Deepen Collaboration to Raise Gas Production
However, actual deliveries lagged significantly, with refiners lifting just 28.5 million barrels, indicating that crude producers supplied local refineries with less than half of the volumes allocated under the country’s domestic crude supply rules.
The development underscores a persistent gap between crude availability and actual refinery intake, raising fresh concerns over feedstock adequacy for Nigeria’s refining ambitions.
In the press statement earlier issued by the commission, the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, said the data reflected ongoing efforts to enforce the DCSO in line with the Petroleum Industry Act (PIA).
The statement read, “The Nigerian Upstream Petroleum Regulatory Commission has released the statistics on the enforcement of the Domestic Crude Supply Obligation in accordance with the provisions of the Petroleum Industry Act.
“A summary of the monthly allocation shows that 61.9 million barrels of crude oil were allocated to domestic refineries during the quarter, while producers collectively offered a higher volume of 68.7 million barrels. However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter 2026.”
A breakdown of the value of rejected crude revealed that in January, producers offered 25.3 million barrels, but refiners lifted only 9.2 million barrels, leaving a shortfall of 16.1 million barrels valued at approximately $1.09bn.
In February, out of the 19.8 million barrels offered, refiners took 9.1 million barrels, resulting in a gap of 10.7 million barrels worth about $749m. Similarly, in March, refiners lifted 10.1 million barrels from the 23.6 million barrels offered, leaving 13.5 million barrels unutilised, with an estimated value of $1.28bn.
The data underscores a persistent disconnect between crude supply and refinery demand, despite regulatory efforts to prioritise local refining under the Petroleum Industry Act, 2021.
2027 Showdown Begins as Atiku, Obi, Amaechi, Makinde Unite Against Tinubu
$100,000 Science Prize: NLNG Raises Bar for AI Innovation
Tinubu Moves to Grant Visa-Free Entry for Rwanda
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months
BREAKING: Nollywood Star Alex Ekubo Reportedly Dies at 40 After Health Battle
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
https://shorturl.fm/azWvs
e605ym
Hello! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog article or vice-versa? My blog addresses a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you are interested feel free to shoot me an e-mail. I look forward to hearing from you! Excellent blog by the way!
I am continuously searching online for posts that can assist me. Thanks!
Together with everything which appears to be building inside this specific subject matter, all your viewpoints are actually fairly exciting. Having said that, I am sorry, but I can not subscribe to your entire suggestion, all be it exhilarating none the less. It would seem to us that your remarks are actually not entirely validated and in fact you are your self not really totally convinced of the point. In any case I did take pleasure in reading through it.
Very interesting info !Perfect just what I was looking for!
Thank you so much for giving everyone remarkably spectacular chance to discover important secrets from this website. It really is very brilliant and packed with a good time for me and my office acquaintances to search your blog really 3 times weekly to read the new items you have got. And indeed, I am just usually fulfilled for the striking methods served by you. Some 1 tips in this article are really the most efficient I’ve had.
After I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get 4 emails with the identical comment. Is there any means you possibly can take away me from that service? Thanks!
Very nice layout and wonderful subject material, practically nothing else we need : D.
Thanks for some other informative web site. The place else could I get that type of info written in such a perfect way? I’ve a mission that I am simply now operating on, and I’ve been on the glance out for such info.
It’s perfect time to make a few plans for the long run and it’s time to be happy. I’ve read this publish and if I could I desire to suggest you some interesting issues or suggestions. Maybe you could write subsequent articles relating to this article. I want to learn even more things approximately it!
Thank you for sharing excellent informations. Your web site is so cool. I’m impressed by the details that you?¦ve on this web site. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the information I already searched all over the place and simply could not come across. What a great web site.
You should take part in a contest for one of the best blogs on the web. I will recommend this site!
I am very happy to read this. This is the kind of manual that needs to be given and not the random misinformation that’s at the other blogs. Appreciate your sharing this best doc.
Thank you for every other informative website. Where else may just I get that kind of information written in such an ideal manner? I have a challenge that I am just now running on, and I have been at the look out for such info.