Energy
Quality Petroleum Education will solve challenges of Energy Transition, create boom in Gas Sector- Wabote
Lucky MOMOH
WARRI-THERE is an urgent need for the Federal Government and other stakeholders of the oil and gas industry to intensify efforts in the promotion of quality petroleum education and development of competent manpower who would help Nigeria meet the challenges of the ongoing energy transition and expected boom in the gas sector.
This was the key recommendation by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote in the convocation lecture he delivered on Friday at the Federal University of Petroleum Resources (FUPRE) Effurun, Delta State, titled “Defining the Value of Local Content in Petroleum Education.”
He canvassed that as western nations shift their attention from oil and gas and focus on the provision of funding, manufacturing of equipment, and development of supply chain to support their renewable energy sources, it is imperative that Nigeria and other hydrocarbon-rich countries develop the requisite capacity and capability to produce and utilize their fossil fuel resources.
According to him, the ongoing debate and the deadlines being set in respect of energy transition underscored the need to develop home-grown skill sets to develop and manage the nation’s natural resources. He stressed that “the narrative around energy transition has further revealed the need to ensure that there is a direct link between our petroleum education and the development and utilization of our hydrocarbon resources, so we are able to deal with any outcome of the transition.”
Commenting on the recent enactment of the Petroleum Industry Act 2021 and the Decade of Gas initiative, Wabote pointed out that those developments would not only engender investments and utilization of the nation’s estimated 600 trillion cubic feet of gas reserves but also lead to a boom in the gas sector, which would benefit discerning institutions, investors, operators, and service providers.
He added that “these scenarios require a robust petroleum education sector to ensure that our in-country skill sets are available and sufficient to support the exploration, development, production, and processing of hydrocarbon resources.”
The Executive Secretary charged educational institutions in Nigeria to prepare for the opportunities and challenges of energy transition and gas revolution by preparing robust curriculum in petroleum education with the mindset of enabling Nigerians develop and utilize our hydrocarbon resources using our home-grown technology. The institutions should put require greater focus on development of top-notch graduates to enable the development of Nigerian hydrocarbon resources – especially gas, he canvassed.
This he further explained, “will ensure that we are not forced out from the development of hydrocarbon resources due to lack of technical capability as was the case with coal development in Enugu.”
He maintained that FUPRE is an institution devoted to petroleum education and should be at the forefront of preparing our manpower needs for any outcome or impact of Energy Transition.
He agreed on the need to add renewables to the global energy mix to ensure energy security, but criticized attempts by the western world to demonize or de-marketing other energy sources as well as extracting commitments and setting unrealistic deadlines for countries to abandon fossil fuels.
He advised all nations to jealously guard their locally available sources of energy and ensure they remain in their energy mix for the benefit of their people.
He also highlighted two implications that have emerged from the rush to move the world away from fossil fuels and they include Divestment, whereby western countries shift funding away from the development of hydrocarbons towards renewable energy and Energy Shortage, which is the decline in the supply of hydrocarbons due to lack of investments and the fast pace of the shift to renewable energies.
He posited that Divestment has resulted in the emergence of indigenous companies playing major roles in exploration and production activities “such that companies like AITEO, FIRST E&P, EROTON, and others have acquired assets and are now responsible for producing about 15% of Nigeria’s oil and more than 60% of domestic gas.”
He however regretted that the divestment of the international oil companies and their reluctance to make further investments in oil and gas have resulted in the repatriation of capital out of Nigeria. “This stifles the nation’s economy of the much-needed foreign exchange with funds used as loans to acquire oil and gas assets instead of being used to develop new production assets,” he rued.
Amid a slight increase in gas production, Nigeria’s oil output experienced a substantial rise in November 2024.
Gas production saw a 2.9% month-on-month (MoM) increase, reaching 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October.
However, on a year-on-year (YoY) basis, the growth was minimal, with a mere 0.02% increase in output for the first 11 months of 2024, compared to the same period in 2023.
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The latest gas report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also revealed a 1.6% increase in domestic gas consumption.
A total of 606,658 MSCF was consumed locally, compared to 596,861 MSCF during the same period in 2023. Gas exports, meanwhile, rose by 6.9%, reaching 829,156 MSCF, up from 775,547 MSCF in the corresponding period of 2023.
This growth in exports continues to play a vital role in bolstering Nigeria’s foreign exchange earnings.
Despite these positive figures, sources close to the Ministry of Petroleum Resources (Gas) noted that oil remains the dominant force in Nigeria’s energy sector, with gas taking a secondary role.
On the other hand, the NUPRC’s oil production report revealed a remarkable surge.
Nigeria’s oil output, including condensates, rose by 13.3% year-on-year in November 2024, reaching 1.7 million barrels per day (bpd), up from 1.5 million bpd in November 2023. Month-on-month, oil production also increased by 10%, from 1.5 million bpd in October 2024.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), discussed the broader structural dynamics within Nigeria’s economy, highlighting the dominance of the non-oil sector.
In his 2025 Outlook, Dr. Yusuf noted that the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, while the oil sector accounted for just 5.57%.
“However, the economy is characterized by a paradox of the oil sector contributing an estimated 90% of foreign exchange earnings, while the non-oil sector accounts for about 10%,” Dr. Yusuf said.
“This is a structural shortcoming in our economy which needs to be addressed, as sectors that contribute hugely to GDP have no corresponding contribution to foreign exchange earnings.”
He further emphasized the need to address the challenges faced by the non-oil sector, which include issues related to productivity, infrastructure, funding, and regulatory constraints.
“The policy implication is that more should be done to fix the challenges of productivity and competitiveness of the non-oil sector of the economy,” Dr. Yusuf added
The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has become operational.
This is coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the disclosure during a tour of the facility on Monday.
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A video posted by Channels TV on Monday showed Kyari addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
Before the tour commenced, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
According to him, although the repairs on the facility are not yet 100 per cent complete, operations have commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
Located in Ekpan, Uwvie, and Ubeji, Warri, the petrochemical plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black.
Commissioned in 1978 and managed by NNPC Ltd, the WRPC was built to supply markets in the southern and southwestern regions of Nigeria.
The mechanical completion of the facility was initially scheduled for the first quarter of 2024, according to the Spokesperson of the NNPC Ltd, Olufemi Soneye.
“Warri should be done by Q1 (first quarter) 2024,” Soneye stated.
The WRPC is one of Nigeria’s four refineries. Others include the old and new Port Harcourt Refining Company in Rivers State and the Kaduna Refining and Petrochemical Company in Kaduna State.
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.
The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.
Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.
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It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM”
Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”
A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
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