Chevron Nigeria Limited (CNL), in collaboration with Nigerian National Petroleum Company Limited’s subsidiary – NNPC Gas Infrastructure Company Limited (NGIC), has concluded a Network Entry Agreement (NEA) for the system entry point into the Escravos–Lagos Pipeline System.

It was gathered that the NEA establishes the contractual framework required under the Nigerian Gas Transportation Network Code to govern gas delivery operations and associated interfacing / information exchange between CNL’s Escravos Gas Plant and NGIC.

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According to Jim Swartz, Chairman and Managing Director, CNL, the agreement underscores the NNPCL/CNL Joint Venture’s commitment to safe and reliable gas delivery while supporting Nigeria’s broader gas development.

“By strengthening the interface between CNL’s Escravos Gas Plant and NGIC’s transportation network, we are helping to enhance energy security, infrastructure efficiency and long-term value creation for Nigeria,” he said.

On his part, Olusoga Oduselu, Chief Corporate Affairs Officer, CNL, stated that the development of Nigeria’s uniform NEA framework places Nigeria among the league of countries whose central gas pipeline transporters operate under a standardized framework governing gas injection and offtake.

“By establishing this common gas injection and offtake framework, the NEA reinforces the critical gatekeeping role of the gas Network Operator, NGIC, and delivery facility operators — like CNL, as operator of the NNPCL/CNL Joint Venture— in ensuring that incoming gas does not compromise the safety, integrity, or efficiency of the national gas network,” he noted.

Independent petroleum marketers on Monday pushed for the restoration of importation rights and projected that the pump price of Premium Motor Spirit, popularly called petrol, could fall below N800 per litre as the Federal Government intensified efforts to force down the cost of petrol.

The development came as the Federal Government met with major operators in the downstream petroleum sector, including representatives of the Dangote Petroleum Refinery, over what it described as the disconnect between falling global crude oil prices and the relatively high pump prices of petrol in the domestic market.

The stakeholders’ meeting on cost-reflective pricing of PMS, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, brought together the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major operators in the sector.

Also in attendance were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, officials of the NMDPRA, and delegates from the Dangote refinery.

The petrol prices have remained a major source of hardship for households and businesses in Nigeria, with pump prices surging following the spike in global crude oil prices triggered by tensions in the Middle East, particularly between Iran and the United States.

Although crude prices have moderated after diplomatic efforts eased the tensions, the reduction has yet to be fully reflected in domestic petrol prices, prompting the Federal Government to convene a stakeholders’ meeting aimed at driving a fair reduction in pump prices.

The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to permit independent marketers to import petroleum products directly, saying greater competition would ultimately reduce prices.

Maigandi also called for support for local refineries, particularly the Dangote Petroleum Refinery, while stressing the need to allow marketers to import products whenever necessary.

“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said.

The IPMAN president assured Nigerians that independent marketers were prepared to slash petrol prices significantly and projected that pump prices could fall below N800 per litre under the right market conditions.

“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.

Miagandi added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery.

“I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”

The renewed push for importation comes amid an intense pricing battle in the downstream sector following the commencement of large-scale production at the Dangote refinery and the deregulation of the petrol market.

Speaking to journalists after a closed-door session with the stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government remained concerned that current petrol prices were not reflective of prevailing crude oil prices in the international market.

According to him, the government had engaged marketers in frank discussions aimed at ensuring that the reduction in global crude prices translates into lower pump prices for Nigerians.

Lokpobiri said, “The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS.

“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high.

“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry.”

The minister said the government had communicated the concerns of consumers to operators and directed them to return with practical measures that would lead to lower petrol prices.

“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market.

“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he stated.

On when Nigerians should expect a reduction in petrol prices, Lokpobiri said discussions were still ongoing and declined to give a deadline. “As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.

Before the closed-door meeting, Lokpobiri warned petroleum marketers against using profits from previously acquired expensive fuel inventories as justification for maintaining high petrol prices, insisting that the benefits of lower replacement costs must be passed on to consumers.

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The government said the continued disconnect between falling international crude oil prices and domestic petrol prices had become a source of concern, warning petroleum marketers against sustaining high pump prices of Premium Motor Spirit despite declining global crude prices and insisting that Nigerians should enjoy the benefits of lower replacement costs in a deregulated market.

He insisted that temporary gains realised from inventories purchased when crude oil prices were higher should not become the basis for sustaining elevated pump prices after global oil prices had declined.

“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management.

“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he stated.

According to the minister, as marketers replenish their stocks at lower costs, reductions in procurement expenses should be reflected promptly in ex-depot and retail petrol prices in line with the principles of a competitive and efficient deregulated market.

The minister added that the Federal Government remained committed to protecting consumers in the post-subsidy era, stressing that deregulation was not designed to create opportunities for excessive pricing or market distortions but to deepen competition, improve efficiency, and deliver value to Nigerians.

He further warned that sustaining high energy costs beyond what prevailing market conditions justify could worsen inflationary pressures and undermine the gains recorded in moderating the country’s inflation rate.

The minister urged petroleum marketers and operators to immediately transmit the benefits of falling global crude oil prices to Nigerian consumers, warning that deregulation should not be exploited to sustain high petrol prices and generate windfall gains.

His comments come amid growing public concerns over the slow pace of reductions in petrol prices despite the sharp moderation in crude oil prices in recent months.

According to the minister, international crude prices traded between $61 and $65 per barrel in January before surging above $118 per barrel in April following heightened geopolitical tensions in the Middle East. However, prices have since declined to around $71 per barrel after the easing of the tensions.

He noted that while the earlier rise in crude prices exerted upward pressure on petrol prices, the subsequent decline had not been reflected proportionately in domestic pump prices.

“Ordinarily, such movements in crude oil prices should be reflected in the pricing of refined petroleum products. While the initial increase in crude prices understandably exerted upward pressure on PMS prices, the subsequent moderation in crude oil prices has not translated into a commensurate reduction in pump prices across the domestic market.

“This disconnect has understandably raised concerns. PMS peaked at about N1,596 per litre in May and currently sells at around N1,296 per litre. While there has been some reduction, the adjustment has not been commensurate with the decline in underlying market conditions,” the minister said.

He also called for the speedy operationalisation of the National Strategic Stock, describing it as a critical instrument for safeguarding national energy security and moderating future price shocks.

“The National Strategic Stock will strengthen national energy security, reduce exposure to supply disruptions, and moderate price volatility. There is urgency in ensuring that this mechanism becomes fully operational,” he said.

Nigeria’s petrol market has witnessed sharp fluctuations in prices over the past year, with pump prices peaking at over N1,500 per litre in some parts of the country following spikes in global crude oil prices and exchange rate volatility.

However, the recent decline in international oil prices and improved domestic refining capacity have increased pressure on marketers to cut prices, with many consumers expecting further reductions in the coming weeks.

The outcome of the government’s engagement with operators could determine the next phase of competition in the downstream sector and whether Nigerians will eventually see petrol prices fall to the N800 per litre level projected by marketers.

Earlier in his opening remarks, the Authority Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was convened at the directive of the minister to address the growing concerns surrounding petrol pricing and ensure that Nigerians benefit from improvements in global market conditions.

Umar recalled that a similar engagement with operators in the domestic gas sector had recently resulted in a noticeable reduction in liquefied petroleum gas prices, expressing optimism that the same collaborative approach could deliver results in the petrol market.

“Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit. Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks.

“It is exactly this kind of tangible success that inspired today’s gathering. When regulators and industry operators sit at the same table, we do not just debate challenges; we engineer solutions,” he said.

The NMDPRA boss acknowledged that global crude prices had moderated significantly in recent weeks but lamented that the domestic retail market had yet to adjust accordingly.

“As a responsible regulatory authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices.

“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value, and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive. We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” Umar added.

He stressed that the objective of the meeting was not to dictate prices but to collaborate with industry stakeholders on practical solutions that would keep businesses viable while protecting consumers.

Courtesy The Punch

In a move showing sustained activity in her upstream petroleum sector despite a moderation in permit volumes compared to the previous quarter, the Nigerian government issued 7,942 oil and gas industry service permits and 49 upstream monitoring licences in Q1, 2026.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made the disclosure in its Upstream Service Industry Newsletter for the first quarter of 2026.

According to the report, a total of 7,942 permits were issued under the Oil and Gas Industry Service Permit (OGISP), scheme between January and March 2026, while 49 upstream monitoring and regulation licences were granted during the same period.

The commission noted that permit volumes declined 22.3 per cent compared to the fourth quarter of 2025 but attributed the moderation to normal regulatory cycles rather than a slowdown in industry activity.

“A total of 7,942 permits were issued under the OGISP in Q1 2026. This represents a 22.3 per cent decline compared to Q4 2025. Major and specialised permit categories accounted for over 90 per cent of total permits issued,” the report stated.

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The report further stated that the licences covered rig inspections and certifications, hydraulic workover certifications, and vessel licences, among others.

A breakdown of the licensing activities showed that February recorded the highest level of activity, accounting for 24 licences, or about 49 percent of the total licences issued during the quarter. Rig-related licences represented approximately 69 percent of all approvals granted within the period.

The report further revealed that major and specialised permit categories accounted for more than 90 percent of all permits issued under the OGISP framework during the quarter.

The Commission asserted that the upstream service sector maintained stable performance during the period, supported by sustained licensing activities, permit processing, and ongoing regulatory reforms aimed at improving transparency and operational efficiency in the industry.

The NUPRC said key policy reforms, licensing advancements, and strategic collaborations undertaken during the quarter helped strengthen investor confidence and support operational activities across the upstream oil and gas value chain.

The report also highlighted continued progress in the sector, including the signing of a new 11,700-square-kilometre 3D seismic survey agreement and record gas output achieved by key operators during the quarter.

According to NUPRC data, Nigeria’s active rig count rose to 73 in March 2026 as operators sustained drilling activities and expanded exploration and production programmes.

The report showed that the number of active rigs stood at 72 in January and February before rising to 73 in March, reflecting continued investment in upstream oil and gas operations.

Providing an overview of the quarter, the commission stated that the upstream service sector remained resilient despite broader industry challenges. N1.23bn was generated from oil and gas industry service permits.

“Q1 2026 reflected stable upstream service sector performance, supported by consistent rig activity, sustained licensing (49 UMR licences), and strong OGISP revenue generation of N1.23bn,” the report stated.

According to the regulator, land operations remained the dominant segment of Nigeria’s drilling activities during the quarter.

The report noted that land-based rigs remained steady at 52 throughout the three-month period, accounting for the largest share of total drilling activity.

Offshore operations increased modestly from 11 rigs in January and February to 12 rigs in March, while swamp operations remained unchanged at nine rigs during the period.

Explaining the trend, the commission said, “The data shows that Nigeria maintained stable rig activity from January to February, with total rigs increasing slightly from 72 to 73 in March.

“Land operations accounted for the highest number of rigs, as it remained stable in Q1 with 52 rigs and drove the overall increase. Offshore rigs remained steady at 11 January and February and increased to 12 in March, while swamp rigs were constant at 9 throughout the period.”

The regulator said the performance demonstrated continued operational stability across Nigeria’s upstream sector.

“Overall, the trend reflects stable drilling operations, with marginal growth concentrated in land-based activities,” the report added.

More significantly, the commission revealed that drilling activity increased substantially compared with the corresponding period of last year.

“Q1 2026 showed an increase (22.6 per cent) in total rig count compared to Q1 2025, indicating strong growth in upstream activity,” the report stated.

The increase suggests that operators are intensifying development activities amid ongoing reforms introduced under the Petroleum Industry Act and efforts by the regulator to attract investment into the sector.

The latest figures suggest that Nigeria’s upstream industry maintained positive momentum in the first quarter of 2026, with increased drilling activity, sustained licensing and ongoing exploration programmes providing fresh signals of investor confidence in the country’s oil and gas sector.