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NUPRC Shifts Focus to Dormant Oil Licences

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The era of oil companies holding on to prospecting licences without developing the assets is over.

Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, made the declaration, adding that the regulator is now strictly enforcing the “drill-or-drop” provision contained in the Petroleum Industry Act (PIA), compelling operators to either commence exploration activities or relinquish idle oil blocks.

She made this known while receiving a delegation from the Petroleum Directorate of Sierra Leone at the Commission’s headquarters in Abuja.

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According to her, the enforcement of Section 94 of the PIA has fundamentally changed the landscape of Nigeria’s upstream sector by eliminating the long-standing practice where operators held licences for decades without developing the assets.

She explained that the new regime has begun to attract more serious investors into Nigeria’s upstream sector, particularly in the on-going 2025 licencing round, which is expected to boost the country’s petroleum reserves and unlock new exploration opportunities.

“The PIA has opened opportunities for both small and big players because there is now a drill-or-drop provision in the Act. In the past, we had operators who held licences for as long as 20 years and sat on those assets without doing anything. That era is now over,” Eyesan said.

She noted that the enforcement of the provision has expanded the pool of available assets and strengthened the Commission’s capacity to organise more frequent bid rounds, with the possibility of conducting annual licencing rounds going forward.

Eyesan also expressed satisfaction with the level of interest shown by investors in the 2025 licencing round, describing the number of applicants that participated in the pre-qualification stage as impressive.

She explained that the licensing round offers 50 oil blocks but the guidelines restrict each company, whether bidding independently or as part of a consortium, to a maximum of two blocks, a measure designed to encourage wider participation and promote fairness in the allocation process.

Earlier, the Director-General of the Petroleum Directorate of Sierra Leone, Foday Mansaray, said the delegation came to Nigeria to understudy the country’s petroleum regulatory framework and draw lessons that could help strengthen Sierra Leone’s hydrocarbon sector.

Energy

MT Asharami Ghana Delivers 5,000MT LPG Cargo to Ghana

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As part of efforts to position Ghana as a strategic hub for regional energy trade, MT Asharami Ghana, a 40,000-cubic-metre Liquefied Petroleum Gas (LPG) carrier has delivered 5,000 metric tonnes of LPG in its maiden voyage to Ghana, thus boosting efforts to strengthen energy security, and LPG supply reliability.

Purpose-built to serve Ghana and neighbouring markets, MT Asharami Ghana forms part of Sahara Group’s integrated LPG infrastructure strategy across Africa.

Welcoming the vessel, Hon. Dr. John Abdulai Jinapor, Minister for Energy and Green Transition, described the arrival of MT Asharami Ghana as a major boost to Ghana’s clean energy ambitions.

“The arrival of MT Asharami Ghana represents a significant step forward in our quest to expand access to cleaner energy solutions for Ghanaians. As we work towards increasing LPG adoption across the country, investments like this are essential to strengthening supply reliability and achieving our clean cooking objectives.”

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The Minister said Ghana’s ambition of increasing LPG utilisation and improving energy security can only be achieved through strong partnerships between government and responsible private-sector investors.

“We commend Sahara Group for standing shoulder-to-shoulder with Ghana over the years in supporting our aspirations for energy security, economic growth and sustainable development. The success of our energy transition journey depends on credible and committed partners.”

According to Wale Ajibade, Executive Director, Sahara Group, the vessel represents far more than an investment in maritime infrastructure.

Ajibade noted that Ghana’s target of increasing LPG adoption in 50 per cent of households by 2030, up from about 30 per cent today, makes investments in supply infrastructure increasingly important.

“At Sahara, we see MT Asharami Ghana as a symbol of confidence in Ghana’s future and the country’s growing role in regional energy trade. It reflects our unwavering belief in Ghana’s immense potential and our determination to work alongside stakeholders to deliver sustainable energy solutions that improve lives, create opportunities and drive inclusive growth.”

He added that the vessel is part of a broader, integrated infrastructure strategy combining shipping, storage, and downstream distribution to strengthen Ghana’s LPG value chain.

Yaa Serwaa Alifo, Managing Director, Asharami Ghana, described the vessel’s arrival as the culmination of a vision and a bold statement of the company’s commitment to Ghana’s energy future.

“What we are celebrating here is the culmination of a vision and a bold statement of our commitment to Ghana’s energy future. Asharami Ghana will help ensure that homes, businesses and families across Ghana have reliable access to cleaner cooking fuel,” she said.

Alifo acknowledged the support of the Government of Ghana, the Ministry of Energy and Green Transition, the National Petroleum Authority, Sahara Group’s leadership, and all stakeholders whose collaboration helped bring the project to fruition.

As demand for LPG continues to grow across the sub-region, investments in marine infrastructure such as MT Asharami Ghana will become increasingly important in ensuring security of supply, operational efficiency, and sustainable economic growth.

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Energy

NNPC Flaunts $800m Ima FID, as Affirmation of Upstream Viability

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The $800 million Final Investment Decision (FID) on the Ima Gas Project (IGP) has been described as a landmark development that affirms the growing viability of Nigeria’s upstream gas sector.

The Nigerian National Petroleum Company Limited (NNPC Ltd) flaunted the project, located offshore in OMLs 112 and 117 and developed by AMNI International in partnership with TotalEnergies, noting that it will produce about 300 million standard cubic feet of gas per day at peak.

It added that the output will supply critical feedgas to the Nigeria LNG Limited in support of its Train 7 expansion, which will increase capacity at the Bonny Island plant from 22 million tons per annum to 30 Mtpa.

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This was detailed in a statement in which the state oil major stressed that the FID was enabled by the presidential directives of 2024, which provided fiscal incentives for non-associated gas, streamlined contracting and lowered development costs.

Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari described it as “a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms” that have created competitive terms and a predictable investment environment.

The NNPC Ltd also commended the collaboration between AMNI, TotalEnergies and the Nigerian financial sector, saying the model of indigenous operator, international partner and domestic capital is a template for future developments.

“NNPC reaffirms its commitment to work with government, regulators and industry partners to sustain investment momentum and deploy Nigeria’s gas resources for industrialisation, job creation and long-term prosperity,” the statement added.

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Energy

N4bn Compensation Dispute Threatens Ikot Abasi Power Project

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Nearly 20 years after the Federal Government awarded the contract for the 330kV Ikot Abasi Transmission Line, the Niger Delta Power Holding Company Limited (NDPHC) has turned to the Akwa Ibom State Government to break a N4 billion compensation deadlock threatening the completion of the strategic power project.

The transmission project, awarded in 2006 under the National Integrated Power Projects (NIPP), has remained stalled primarily over unresolved community and wayleave compensation issues.

But, to ensure the completion of the project, NDPHC Managing Director/Chief Executive Officer, Jennifer Adighije, is now seeking the intervention of Akwa Ibom State Governor, Pastor Umo Eno, to clear the outstanding issues and enable the contractor, Anit Energy, to return to site.

Adighije made the appeal during a courtesy visit to the Governor in Uyo, Akwa Ibom State.

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She disclosed that the latest valuation of the outstanding wayleave obligations was slightly below N4 billion.

The NDPHC boss said the prolonged delay was particularly concerning because the contractor had reportedly completed about 90 per cent of the engineering, procurement and construction procurement for the project.

She added that substantial project materials, including conductors and tower members worth millions of dollars, had already been deployed along the project corridor between Adiasim and Ikot Ekpene, but were still lying across communities as the impasse persists.

“We are therefore pleading for your kind intervention as a shareholder and board member of the company,” Adighije told the governor.

According to her, resolving the outstanding community issues would allow the contractor to remobilise to site and bring the long-delayed project to completion.

NDPHC is now targeting May 29, 2027, for commissioning of the transmission line, subject to the successful resolution of the outstanding compensation and community challenges.

Adighije said NDPHC was keen to support the state’s development ambitions through its role as a major interventionist agency in Nigeria’s electricity sector.

“We want to be part of your ARISE Agenda,” she said, referring to the governor’s development programme.

She also welcomed the establishment of the Akwa Ibom State Electricity Regulatory Commission, saying NDPHC had commenced discussions with the commission on the development of appropriate electricity-market frameworks for the state.

According to her, officials of the commission had visited NDPHC and requested information on the company’s projects in Akwa Ibom, while a joint working group was being established to examine how the assets could be better utilised and electricity access extended to underserved communities.

Also speaking, NDPHC Executive Director, Strategy and Commercial, Mr. Patrick Obahiagbon, commended the Governor’s administration for its development initiatives across the state.

Responding, Governor Eno welcomed the NDPHC initiative and pledged to take the Ikot Abasi project before the State Executive Council for consideration. The governor said the state government would examine the outstanding issues and determine how it could intervene to facilitate the completion of the project.

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