News Room
Nigeria has always been known for her oil exploration ventures which can be dated to as far back as 1903, when The Nigeria Bitumen Corporation conducted exploratory work in the country. Despite the various oil exploration activities, many citizens believe that the Nation is yet to truly experience the direct economic benefits and sadly the oil ‘business’ is slowly depreciating. Since Nigeria is the leading crude oil producer in Africa, it can only be concluded that the production is being affected by sporadic supply disruption.
Fortunately, crude oil is not the only resource which Nigeria has in abundance. Enter, Gas.
In our previous article, we mentioned that Nigeria’s gas reserves recently increased to about 206 trillion cubic feet and 600 trillion cubic feet, proven and unproven respectively. As the Nigerian gas industry expands, more natural gas reserves are being discovered and extracted, this depletes our proven gas reserve. However, it can be done productively by processing into the three gas types (LNG, CNG, LPG) rather than being flared into the atmosphere. Liquified Petroleum Gas (LPG) is produced during oil refining.
In 2015, Nigeria was the second largest producer and largest exporter of LPG in Africa but continues to have one of the lowest LPG utilization in Sub-Saharan Africa. The gas market is estimated to be at 1 million MT with the potential to reach 5 million MT, but of the 200 million population, there less than 15% LPG adoption resulting in a consumption per capita of 2.2kg in 2014. When compared to neighboring countries like Cameroon, Senegal and Ghana with consumption per capita of 3.8, 6.9 and 9.5 respectively, it is obvious that this is a low number.
Some will argue that all of this points to Nigeria being more of a gas nation that is yet to explore its potentials when you consider that its gas reserve represents 3% of the total world reserve.
This means that Nigeria is yet to embrace the usage of gas which is clearly abundant, cleaner and more cost effective. To change this narrative, the Federal Government of Nigeria declared 2020 as the “year of gas” and beginning of a “decade of gas” (through to 2030) to increase and deepen the use of gas in Nigeria for domestic, transport, industrial use and power generation. This has brought about the federal gas programs Nigerian Gas Expansion Program (NGEP) and the National LPG Expansion Plan and the Petroleum industry Act.
As the economic and commercial nerve center of the country, as well as being the fifth largest economy in Africa, Lagos state through IOGC is working closely with these bodies representing the state in transitioning into a gas-powered economy. IOGC is contributing to the gas for domestic value chain by becoming an aggregator, supplier and retailer of LPG across the five divisions of Lagos state, also making gas available, accessible and affordable.
Recently it was announced that Nigeria’s gas reserves increased to about 206 trillion cubic feet and 600 trillion cubic feet, proven and unproven respectively. In this short article, we will examine what these mean and what their effects are on the country.
Unproven reserves are natural occurring gas reserves that are assumed, have not been confirmed, and are not readily accessible. Due to regulatory or economic factors, unproven reserves are described as less recoverable because perhaps the necessary technology does not exist or it might be economically expensive to recover.
Unproven reserves can be further classified into two – probable reserves and possible reserves. It is determined by estimating future economic conditions and technological development. Probable reserves are those unproven reserves of which an analysis of geological and engineering data suggests have a confidence level of approximately >50% chance of being successfully recovered. While possible reserves are those with a 10-50% chance of successful recovery. The effect of possible future improvements in economic conditions and technological developments can be expressed by allocating appropriate quantities of reserves to the probable and possible classifications.
As the Nigerian gas industry expands, more natural gas reserves are being discovered and extracted. This depletes our proven gas reserve; however, it can be done productively by processing into the three gas types (LNG, CNG, LPG) rather than being flared into the atmosphere.
In our next article, we will talk about the future of Nigeria as an oil nation or a gas nation.
Charcoal and firewood have been generally accepted as cheaper fuel options for cooking. In this clime, some people even believe that cooking with charcoal or firewood adds a peculiar flavor to food, an example of which is the ‘party Jollof rice’. Unfortunately, the implications of cooking with these solid fuels have dire consequences on both human health and the environment.
According to the WHO, approximately 7 million premature deaths around the world every year are caused by air pollution and of that number, more than 60% corresponds to pollution in residential environments. This means that at least 4.3 million people die from burning solid fuels with inefficient ventilation and this is the main source of indoor pollution across the globe. In Nigeria, about 98,000 women die every year due to the continuous use of firewood to prepare meals. A person who cooks breakfast, lunch, and dinner with firewood, will have an equivalent health outcome as somebody who smoked between three and 20 packets of cigarettes.
Most of these deaths occur due to heart disease, stroke, chronic obstructive pulmonary disease, and lung cancer precipitated by long-term use of these dirty fuels. Also, a significant number of acute respiratory diseases also occur in children who are exposed to such environments.
Asides from being injurious to the health, charcoal or firewood for cooking takes longer, taking up productive time and this makes it an inefficient method of cooking. For instance, a cup of rice that averagely takes 17mins to cook using a gas burner will end up taking about 25min to get done using a charcoal burner.
Currently, Lagos State with a population of over 20 million people has less than 25% of its households using LPG for cooking – an abysmal figure for a developing megacity, as a high margin of the population still relies on dirty fuels such as kerosene, firewood, and charcoal. At IOGC we are aligning with the Lagos State Government cleaner energy initiative to improve gas for domestic utilization from the current 16% to 80% by 2023 by addressing the four key challenges hindering LPG adoption: Accessibility, Availability, Affordability, and Awareness.
References
The current crisis between Russia and Ukraine is set to have a debilitating effect on the nation’s oil and gas industry with analysts predicting that should the tension not doused, oil price could hit $150 per barrel.
The implication of rising oil prices, according to industry observers, will lead to an increase in the already N3 trillion budget of fuel subsidy in 2022 while many oil and gas projects that depend largely on iron and steel imports from Ukraine and Russia may suffer delays.
Measures forcing Russia to supply less crude or natural gas would have “substantial implications” on oil prices and Nigeria’s economy, said Sue Trinh of Manulife Investment Management.
Already, the invasion of Ukraine by Russia has distorted global financial and energy markets causing oil prices to soar above $100 per barrel, the highest since 2014.
Nigeria’s receipt from oil accounts for about 90 percent of its earnings, hence a distortion in the global oil market affects the country.
Last week, amid heightened tensions between the two countries, the international oil benchmark, Brent crude, rose to $103.43 per barrel.
Brent crude, against which Nigeria’s oil is priced, hit a fresh eight-year high of $103.43 per barrel, last Thursday as Russian forces made their way into Ukraine in a show of force not seen in Europe since World War II in a multi-pronged attack.
The $103.43 per barrel oil price, traded above $40, a figure which is higher than the Federal Government’s oil benchmark price of $62 per barrel for the 2022 budget and oil production of 1.88 million barrels per day.
Regrettably, most of the gains recorded during a higher oil price regime are frittered away through refined fuel importation as Nigeria imports 100 percent of its petroleum products needs due to the dysfunctional state of its four refineries located in Port Harcourt, Warri, and Kaduna. Crude oil prices were on the rise on Thursday morning as Russia engaged in a “special military operation” in Ukraine. The price of Brent crude oil is now well over $105 per barrel for the first time since July 2014.
According to the United Nations COMTRADE, Nigeria’s imports from Ukraine was $156 million in 2020 as Ukraine’s major exports to Nigeria were iron and steel at $125million, sugars and sugar confectionery at $8.1million, and pharmaceutical products at $7.6million.
On the other hand, mutual diplomatic relations have been in existence between Russia and Nigeria since the 1960s. In September 2021, the Russian government said its trade volume with Nigeria stood at $600million because Russia is also an oil-producing nation.
Following the battle between both countries, a publication by MMS Plus said there are reports of merchant shipping vessels in the region damaged by shelling and projectiles. At least, three vessels have been affected by gunfire in the Black Sea area off the coast of Odessa and Yuzhny. Commercial vessels have been asked not to enter the Sea of Azov as access is denied by Russian military forces. Two Russian commercial cargo ships were hit by Ukrainian missiles in the Sea of Azov.
Multiple international container lines such as MSC, Maersk, and CMA CGM have released operational updates announcing suspensions of vessel calls to Ukraine until further notice.
The Republic of Marshall Islands (RMI) has issued a Ship Security Advisory admonishing commercial vessels to avoid any transit or operation within the EEZ of Ukraine or Russia within the Black Sea.
“Access to the Sea of Azov through the Kerch Strait is currently blocked by Russian forces. All Ukrainian ports have been closed by the Ukrainian military. If a vessel is located at a Ukrainian port, plans to depart should be arranged as soon as safely possible. Access to the northwest Black Sea, north of 45° 21′ is restricted by the Russian Navy.”
“Vessels must ensure the automatic identification system (AIS) is always transmitting (except when the master believes that continuing to operate AIS might compromise the safety or security of the ship or when a security incident is imminent), consistent with provisions of the International Convention for the Safety of Life at Sea (SOLAS) and monitor VHF Channel 16. Any vessels challenged by Russian military vessels should comply fully with instructions. Armed security personnel are not to be embarked while operating in the Black Sea,” it said.
It further included a report of a Marshall Islands-registered bulk carrier suffering significant damage to the deck and bridge area whilst drifting approximately 50 nautical miles (nm) south of Odessa. Pending further investigation, the damage is initially thought to be caused by a projectile.
Commenting on the development, Partner, Bloomfield Law Practice, Dr. Ayodele Oni, said global oil prices could rise as high as $150 a barrel if the tension between Russia and Ukraine worsens, and this will have huge economic implications for Nigeria, Africa’s biggest oil-producing country as we should generate much more income from our oil than the benchmark in the budget.
‘‘We are already surpassing the budgetary figures. The problem is whether the importation of finished products could erode the additional profitability as the cost of bringing in finished products like PMS too would rise.
With the likely increase in the prices of refined petroleum products, subsidy and cost of subsidy may also increase- a negative implication for Nigeria,’’.
Oni pointed out that the crisis could equally signal delay cost overruns for the Nigerian Liquefied Natural Gas(NLNG) Train 7 as the country imports most of its iron and steel from Ukraine.
Former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr.Muda Yusuf, observed that a lot of Nigeria’s steel products come from Ukraine and Russia, saying the war is going to affect our trade with these nations.
‘‘More importantly, this crisis has led to an increase in crude oil price. Nigeria should be smiling at this increase but the nation isn’t refining locally, so our import bill on petroleum imports will increase. The nation’s bill for fuel subsidy will also increase. If this war prolongs, the problems will lead to fiscal deficits and eventually lead to more borrowing as the debt profile will increase. We can also expect inflation because the increase in energy price, aviation fuel, diesel, and Premium Motor Spirit (PMS) will be higher.”
Nigeria can always buy oil and steel from other nations but Russia is a major oil producer in the world. Oil is a global commodity and any disruption affects the world,’’.
Carbon Footprint Explained
Carbon footprint is one of the most talked-about term in the world today. Unfortunately, there are significantly more people who don’t understand the use and context of this term and how it applies to them individually than those who do. In this article, we will explain the concept of carbon footprint in a simple-to-understand way.
A person’s carbon footprint is the total amount of carbon dioxide released into the atmosphere as a result of his/her/their activities. It also includes the emission of other greenhouse gases such as methane, chlorofluorocarbons, etc. It can be generated directly through activities that require the burning of fossil fuels such as driving, cooking, operating machinery, burning refuse, etc. and this is easily understandable. However, a large proportion of our carbon footprint is generated indirectly and is dependent on a person’s habits, location, and personal choices.
Let’s examine a case study. Ayo wakes up in the morning and prepares for work. He heads to his office in his car. He arrives at his office, switches on the air conditioner in his office and makes a cup of coffee for himself. Because Ayo knows he’ll be spending most of his day in his air-conditioned office, he includes a cardigan in his outfit. On Ayo’s way back home, he makes a stop at his usual spot for some grilled fish and drinks.
In reality, Ayo has spent his day generating a carbon footprint. Ironing his cloth for work, powering the AC in his office and boiling water for his coffee. All these processes make use of electricity that is generated from a thermal power station or a generating set that burns petrol/diesel which emits carbon gases. The cloth Ayo is wearing cannot be produced without access to its raw material. To have access to these raw materials– pine, wood chip, bamboo pith- a lot of trees would have been cut down (deforestation), which leads to the release of less oxygen and more carbon dioxide, not to mention the industrial process through which the raw materials will go through to become a nice piece of clothing. As Ayo is enjoying his evening and having a nice time with his grilled fish and drinks, the grilling of the fish releases direct carbon gases into the atmosphere, and Ayo takes his beer from a single-use Styrofoam cup, which means that every time he takes a cup of beer an entire industrial manufacturing process that emits carbon pollutants has to have taken place.
This is a piece of information that doesn’t really mean much to Ayo because all he wants is to enjoy his lifestyle and satisfy his cravings. This goes to show that many of us are completely unaware of how our daily activities impact the environment and contribute to our carbon footprint, yet we are not completely innocent.
What is the way forward?
We need to become conscious about reducing our carbon footprint by cutting back on our contribution to carbon pollution. It can be as simple as car-pooling, reducing the number of vehicles generating these gases, switching to sustainable or cleaner energy (like Autogas or electric vehicles), using less energy-intensive devices, changing our choices (e.g., furniture) and habits to reflect environmental friendliness e.g., keeping a garden or planting trees. Lastly, more recycling will reduce the amount of waste sent to landfills, as well as the greenhouse gas emissions that result from the processing of raw materials.
Our next article will focus on what will happen if we don’t commit to reducing our carbon footprint. Don’t forget to engage, like and share.
Timipre Sylva, Minister of State for Petroleum Resources, has lauded Nigerian women’s determination to partner with the government in the implementation of the National Gas Expansion Programme, under the aegis of the Nigeria Women for Gas and Green Initiative, and declared the Ministry’s endorsement and commitment to NW4GGi’s Gas-to-Home project.
Sylva, who was represented by the Senior Technical Assistant to the Minister, Brenda Atag, said that with a firm commitment to make at least a 30% significant impact in President Buhari’s 2060 Net-zero commitment and the FGN’s carbon emission reduction agenda and actions by 2030 as active climate action partners, she spoke in Abuja during the Clean and Green Nigeria campaign organized by the Nigeria Women for Gas and Green Initiative.
“As a government, we are dedicated to ensuring that LPG is available in every household in Nigeria,” he stated. We no longer want to see women in our nation using firewood. Our trees should be protected and preserved, and our ladies should be protected from avoidable respiratory illnesses. More real trading should be observed among our ladies.
“We cannot accomplish this without first and foremost enabling our women to accept and utilize gas, which has the potential to make a significant contribution to the clean energy movement and speed Nigeria’s transition to sustainable energy, as outlined in SDG objective 7.”
“We have established a mandate to assist organizations in deploying LPG, and we have begun doing so with access to CBN intervention funds, which provide SMEs with opportunities to develop micro businesses through Micro Distribution Centers that will be deployed in communities environs to bring LPG closer to homes for use, promoting clean and affordable energy.”
Sharon Ikeazor, Minister of State for the Environment, who was represented by Dr. Bukar Hassan, Director General of the National Great Green Wall Agency, acknowledged the ministry’s endorsement and support for the Nigeria Women for Gas and Green Initiative’s activities, particularly its tree-planting campaign and projects.
The event’s Chief Host and Launcher, Dr. Ramatu Tijjani Aliyu, Minister of State for the Federal Capital Territory, launched the Clean and Green Nigeria campaign logo, the #1 Woman, 1 Tree and the #1 Child, 1 Tree campaigns, as well as the Gas-to-Home initiatives. She advocated for harsher punishments for people who cut down trees without replanting them.
She pledged the Federal Capital Territory’s support for the Nigeria Women for Gas and Green Initiative’s Autogas Conversion Support program, as well as an appeal to include female auto mechanics in every Autogas Conversion training program organized by the NW4GGi’s technical arm to expedite the federal government’s Fuel-to-Gas transition program.
In her welcome address, the National Coordinator of the Nigeria Women for Gas and Green Initiative, Engineer Joyce Daser Adams, enjoined all to identify and champion the course on climate action to establish a meaningful movement to tackle climate change in other to leave the earth much better and safer for the next generation.
The event drew over 800 women from 36 states and the Federal Capital Territory.
04/02/2022
Earlier this year, a group of students from Kith and Kin Educational Schools reached out to us at IBILE Oil and Gas Corporation (IOGC) about an innovative project they were working on as a team – a domestic gas leak detecting device. On Thursday 27th January, the team visited our head office alongside their mentors/teachers and met with the leadership of IOGC, showcasing and successfully demonstrating the use of the device. The session was an enlightening one and ended with the MD/CEO Ms. Doyin Akinyanju committing IOGC to the development of the project and mentoring of these young scientists in both technical and entrepreneurial skills.
The young inventors also paid a visit to our 40MT LPG plant located at Ebute-Ikorodu, serving up to 20,000 households in the immediate environs. During this tour, they were taken through the facility, learning about equipment and the operations of the facility, from supply to dispensing of the LPG, particularly focusing on the safety and maintenance mechanisms.
At IOGC, we are committed to pivoting Lagos State towards a cleaner energy mix deployed in the safest way, using the safest techniques. We believe in innovative ideas and are thrilled to be working with these brilliant young minds, to mentor and guide them as much as we can. It is elevating to see a younger generation embrace gas as the fuel for Nigeria’s immediate future.
IOGC will continue to work with this team to help them achieve the completion of this project and to see it embraced by the public.
Vice President Yemi Osinbajo on Thursday said Nigeria has made it a priority to provide clean, sustainable and reliable energy access to her citizens, in line with President Muhammadu Buhari’s announcement at COP26 in Glasgow for Nigeria’s commitment to net-zero emissions by 2060.
“Providing clean, sustainable and reliable energy access is tied to almost all Nigeria’s development goals. We have proven that transforming our energy system is a national priority through our Economic Sustainability Plan, and most recently with our President, President Muhammadu Buhari’s announcement at COP26 in Glasgow for Nigeria’s commitment to net-zero emissions by 2060,” he said.
The Nigeria Integrated Energy Planning Tool was developed by the Federal Government in collaboration with Sustainable Energy for All (SEforALL), a United Nations initiative, with support from The Rockefeller Foundation.
“Providing clean, sustainable and reliable energy access is tied to almost all Nigeria’s development goals. We have proven that transforming our energy system is a national priority through our Economic Sustainability Plan, and most recently with our President, President Muhammadu Buhari’s announcement at COP26 in Glasgow for Nigeria’s commitment to net-zero emissions by 2060,” he said.
The Nigeria Integrated Energy Planning Tool was developed by the Federal Government in collaboration with Sustainable Energy for All (SEforALL), a United Nations initiative, with support from The Rockefeller Foundation.
“The transition plan focuses on full electrification of the economy by 2060, including over 250 gigawatts of installed capacity, and a massive build-out of renewable energy capacity. This requires a phased approach with credible milestones and targets and includes a solar-driven capacity increase on an unprecedented scale, which amounts to about 5 gigawatts per year through 2060.”
According to him, the transition to clean cooking will also require a phased approach.
“First, a transition to LPG-based cooking, and over time, a longer-term transition to electricity-based cooking as networks improve.”
On the cost implications of reaching net-zero emissions by 2060, Prof Osinbajo mentioned that “our net-zero 2060 pathway also requires around USD 10 billion per year of funding over the next 40 years across the country’s economy, and most of this will be for the power sector.
“The data and evidence that the Energy Transition Plan was based on were instrumental in helping us understand the true scale of effort and resources that would be required.
“Just yesterday the Energy Transition Plan was considered by the Federal Executive Council, while approving it, the President directed that the lead Ministry, the Ministry of Environment engages with all MDAs and stakeholders to develop a robust implementation plan.”
Prof Osinbajo, while expatiating on the usefulness of the tool, said the “robust and dynamic data on the Nigeria Integrated Energy Planning Tool that we are proud to be launching today is an important component of that effort as it begins to translate the Energy Transition Plan roadmap into concrete electrification, clean cooking, and productive use projects.
“It will help determine clear strategies for prioritization of regions and technology interventions towards making informed decisions that support our energy access by 2030 goals in a comprehensive manner which further supports and complements our net-zero by 2060 ambitions.
“This new geospatial tool not only has updated data on our populations’ electricity needs, including on productive use but also incorporates clean cooking data to guide implementation of clean cooking solutions.”
On Nigeria achieving universal access to energy by 2030, the VP stated that “the analysis has shown us we would need an estimated 19.3 million new electricity connections across the country.
“In addition, we would need over 11 million grid densification connections owing to population growth in settlements that currently have access to electricity.”
Prof Osinbajo added that “the tool also helps us decide the least-cost approach to achieving these targets, which consists of 5.4 million grid connections, 8.9 million mini-grid connections, and 5 million solar-home system connections at a cost of USD 25.8 billion.”
Noting that the Integrated Energy Planning tool would be essential in government achieving its stated goals, the Vice President gave a commitment in ensuring “that our various levels and arms of government promote it and use it as broadly as possible.”
In terms of financing, Prof Osinbajo called on the “international community to support Nigeria’s transition efforts through realistic and much-needed climate finance commitments.
“While we put forward a comprehensive emissions reduction pathway with near-term and long-term actions and milestones, our ask is for a fair exchange in terms of commitments from development partners.”
The energy planning tool is powered by extensive geospatial modelling and layers of data, and for the first time covers electrification, clean cooking, and productive use. The interactive platform will provide actionable intelligence for the Government and private sector stakeholders to deliver the least-cost access to electricity and clean cooking in Nigeria.
Also in attendance at the global launch were the Deputy Secretary-General of the United Nations, Ms Amina J. Mohammed; Mrs Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All; Minister for Power, Abubakar Aliyu; Minister of State for Power, Godwin Agba, Minister of State for Environment, Sharon Ikeazor; Mr Ahmad Salihijo, the Managing Director of the Rural Electrification Agency; Riccardo Puliti, Vice President for Infrastructure at World Bank; President of Rockefeller Foundation, Dr Rajiv Shah; and other development partners.
– Gatekeepers News
According to Bloomberg, Dangote Group Chairman Aliko Dangote stated that the refinery’s mechanical work is complete, and that “ideally before the end of the third quarter we should be on the market.”
During a press conference at the plant site in Lagos, Southwest Nigeria, the business mogul announced this. The factory would begin with a processing capacity of 540,000 barrels per day, according to him. “It’s possible that full production may commence by the end of the year or the beginning of 2023,” he said.
The Dangote Petroleum Refinery is a multibillion-dollar project that would generate a market for Nigerian crude worth $11 billion per year. The facility’s construction cost is projected to be $19 billion, and it has a capacity of 650,000 barrels per day.
When completed, it will be Africa’s largest oil refinery and one of the world’s largest single-train complexes.
It has been highlighted by the Centre for the Promotion of Private Enterprise (CPPE), an economic advocacy group, as one of the main predicted growth factors that would benefit Nigeria’s downstream industry in 2022.
The African Petroleum Producers Organisation (APPO) has said that its formation will result in a 36 percent reduction in petroleum imports into Africa.
The Federal Government has concluded plans to commence as soon as possible a nationwide sensitization campaign on Liquefied Petroleum Gas (LPG) adoption and expansion in the country.
According to NAN, this was made known by the Special Assistant to the Vice President on LPG and Programme Manager National LPG Expansion Implementation Plan, Dayo Adeshina, during an interview on Wednesday in Bauchi.
Adeshina explained that the objective of the exercise was to increase and expand access to the adoption of (LPG) known as cooking gas among Nigerians, adding that the first phase of the exercise was expected to begin in 12 out of the 36 states of the federation.
He pointed out that the federal government wants to achieve full compliance with the adoption of the commodity.
He said, “We had since begun the programme in some of the 12 pilot states.’’
Adeshina said the 12 pilot states were Bauchi, Lagos, Ebonyi, Gombe, Katsina, Sokoto and Enugu. Others are Bayelsa, Delta, FCT Abuja, Ogun and Niger states, stressing we would soon commence the programme.
Going further, he revealed that all the 36 states were expected to be covered within 3 years at the rate of 12 states per year, noting that government will engage investors and marketers for effective implementation.
He said conventional media, social media, traditional rulers and community leaders would be fully engaged in the campaign to achieve wider and more effective coverage.
What you should know
The Federal Government had earlier disclosed its plans to inject 10 million cylinders of the Petroleum Liquefied Gas into circulation nationwide to increase access to the commodity.
The distribution of these cylinders, which is to help deepen cooking gas utilization across the country, would be done through registered marketers.
The government is also trying to increase LPG usage in agriculture, transportation and manufacturing adding that this will enable the country to reduce CO2 emission by about 20% and create millions of jobs for Nigerians.
ONIKAN PRIMARY HEALTH CENTER ENDORSES IBILE MAX 2050 AS LUBRICANT FOR ITS FLEET VEHICLES AND AMBULANCES.
Onikan Health Centre, one of the Lagos State Government public health facilities officially announced IBILE Oil and Gas Corporation (IOGC)’s IBILE MAX 2050 engine oil as its preferred lubricant for ambulances and fleet vehicles. This happened on Thursday 19th of August 2021, when the two parties both agreed on terms for the deal to make IBILE MAX 2050 the official lubricant of the health outfit. Initially, there was a discussion at hand before the partnership was officially unveiled.
In a bid to cub break-down of vehicles in the cause of emergency duties, the health Centre decided to make an engine oil with zero record of deficit their top notch to have more effective and excellent services.
This partnership is the first its kind, with IOGC making plans to rapidly sign on more health outfits across the five divisions of Lagos State.
A driver from the Centre gave his own verdict about the authenticity of the oil, noting that; “The first time I used this IBILE MAX 2050 engine Oil, has been the very moment I have vouched never to stop using it, because it has made my driving experience easier for me and other drivers could attest to it”.
An auto mechanic from the company also gave his own testimony, that “IBILE MAX 2050, was introduced to him by one of the company’s drivers and that he could confidently recommend the oil to his customers”.
Ambulances being emergency vehicles need quality and reliable engine oil/lubricant for effective and smooth operation of the health facility and the lubricant which must be used in that regard should be one that meets all requirement for vehicles working under the Nigerian weather, said IOGC management.
Having signed a contract with Onikan Health Care Centre, the management of IBILE Oil and Gas Corporation (IOGC), gave praises to the consistency in quality health delivery to the entire public by the health facility, promising not to decline from the pace at which the company gives excellence.
NNPC Floats New Subsidiary to Oversee Refineries, inaugurates board, plans 250,000 bpd facility.
The Nigerian National Petroleum Corporation (NNPC) on Saturday 21st of August 2021 inaugurated the board of Greenfield Refinery Limited (NGRL), a subsidiary of NNPC, to oversee the establishment and operation of new refineries. Group Managing Director of the corporation, Mallam Mele Kyari, while swearing in the new board members in Abuja, charged them to explore all options to bring an end to the current challenge of petroleum products importation.
A statement by the Group General Manager, Group Public Affairs Division, Mr. Garba Muhammad, quoted Kyari, who is also Chairman of the NGRL board, as having challenged members of the board to focus on profitability in order to remain afloat and avoid liquidation.
Mr kyari stated that as a business this was a big opportunity for them and the company’s balance sheet must also change positively. He said with the Petroleum Industry Act (PIA), there is no excuse to continue to post negative going forward. He urged the board and management team of the new company to set up a proper structure with the required skills, technology and finance to drive the company’s operations, adding that he is optimistic that the company would be able to achieve its mandate. Kyari said, the company must grow and can only do well if the productions can be processed, whether liquid or gas and montising the process is equally as important. He added that this was a new chapter and they are committed to makingit work. The NNPC helmsman stated that all the corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy and security for the country.
In his remarks, Alternate Chairman of the board and Group Executive Director, Refinery and Petrochemicals, Mr. Mustapha Yakubu, declared that the operations of the company would be guided by the principles of cost effectiveness in line with the new Act, noting that profitability would be the key focus.
The Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Mr. Bege Talson, also disclosed that the division was working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000 barrels per stream day.
PIA: FG, labour negotiate to minimise effects of subsidy removal – PPPRA.
Following the enactment of the Petroleum Industry Act (PIA), the Petroleum Products Pricing Regulatory Agency (PPPRA), Executive Secretary, Abdulkadir Saidu said the ongoing Federal Government’s negotiation with Labour on subsidy removal, will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses.
He said in a statement at Abuja that the PIA signals the implementation of full deregulation of the downstream sector. He further emphasized that it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.
The head of PPPRA, Mr Saidu, has hinted that the current market price will remain as it is until the completion of talks with the trade unions in order to minimise the impact of a market-based pricing policy on the masses. The agency commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu mentioned that the PIA, which provides legal, governance, regulatory and fiscal framework for the petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.
He noted that delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy and that the implementation of the PIA will foster greater investment to the sector.
The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will clearly outline the roles of industry operators and regulators.
HERE ARE 5 TIPS FOR KEEPING YOUR ENGINE OIL IN GOOD CONDITION.
- Check your engine oil level at every fuel fill
Vehicles are more fuel efficient than ever and sometimes it can be 1,000kms or more between fill-ups.
Vehicle manufacturers have different criteria for normal oil consumption, ranging from 1 litre per 1,000 to 2,500kms.
If you don’t check your oil level between oil changes, you could be running dangerously low on oil, or even causing damage unknowingly.
- Check the visual condition of the oil
New engine oil is a golden honey brown colour and a properly maintained engine will keep the oil brown until near its oil change interval.
Once the oil starts to get almost or fully black, your engine is telling you it’s time to change the oil.
On diesel engines however, the oil may appear black almost instantly. This is due to the increased carbon content created by the combustion temperature compared to a petrol engine.
It may be difficult to determine the condition of the oil just by looking at it, so if it smells like diesel fuel or looks dilated, it may be time for an oil change.
- Check the smell and feel of the oil
Engine oil in need of changing smells overpoweringly burnt when you sniff it on the dipstick.
It can also feel slightly abrasive when you rub it between your fingers. If it smells burnt or feels gritty, plan to change the engine oil sooner rather than later.
- Know your maintenance interval
Some engines require oil changes every 5,000kms, while others may require it less frequently at 10,000 or even up to 20,000kms between changes.
Other vehicles feature oil life monitors to tell you when the vehicle needs an oil change. Know what your car requires and book ahead for its service.
- Be aware of the right grade and viscosity of oil for your car
Does your engine need synthetic oil, semi-synthetic, or will conventional oil suffice?
Make enquiries about it from our personnel at IOGC, Use the proper grade of oil for your engine to get the longest life and best performance from your engine.
NIGERIA’S NNPC POSTS ₦43.57BN TRADING SURPLUS FOR APRIL
The Nigerian National Petroleum Corporation (NNPC) on Sunday declared a trading surplus of ₦43.57 billion in April 2021 representing a 23.64% increase over the ₦35.24bn surplus it recorded in the previous month of March 2021.
Spokesman of NNPC, Dr Kennie Obateru said the figure came from the April 2021 edition of its Monthly Financial and Operations Report (MFOR).
Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.
According to the report, the NNPC Group operating revenue in April 2021, as compared to March 2021, increased by 17.73% or N80.67bn to stand at N535.61bn.
Similarly, expenditure for the month increased by 17.24% or N72.34bn to stand at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as last month.
The report attributed the rise in trading surplus to the activities of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.
The positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).
In the Downstream, to ensure uninterrupted supply and effective distribution of fuel across the country, a total of 1.67 billion litres of Premium Motor Spirit (PMS) translating to 55.79mn liters/day were supplied in the month under review.
The report also showed a 34.29% reduction in the number of pipeline points vandalized from 70% in the previous month of March 2021 to 46% in April 2021. While Port Harcourt area accounted for 54%, Mosimi area accounted for 46% of the vandalized points.
In the Gas sector, a total of 209.27billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72 million standard cubic feet per day (mscfd).
For the period of April 2020 to April 2021, a total of 2,902.52 bcf of gas was produced, representing an average daily production of 7,369.76mscfd during the period.
Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07%, 19.95% and 17.98% respectively to the total national gas production.
In terms of natural Gas off-take, commercialization and utilization, out of the 206.40 bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.
This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94 mscfd of gas supplied to the export market for the month.
This implies that 61.45% of the average daily gas produced was commercialized while the balance of 38.55% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74% for the month under review (i.e. 670.19 mscfd) compared with average gas flare rate of 7.42% (i.e. 542.22 mscfd) for the period of April 2020 to April 2021.
A total of 795 mscfd was delivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.
NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series. It is published in line the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders and the Nigerian public.
BUHARI SIGNS PETROLEUM INDUSTRY BILL INTO LAW
The President has signed the Petroleum Industry Bill 2021 into law.
Special Adviser to the President on Media and Publicity, Femi Adesina, made this known in a statement on Monday 16 August 2021.
The presidential spokesman said his principal signed the controversial bill into law while working from quarantine. “Working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday, August 13, the President assented to the Bill Monday, August 16, in his determination to fulfill his constitutional duty.
The ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation would have been fulfilled. The Petroleum Industry Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.
“The Senate had passed the Bill on July 15, 2021, while the House of Representatives did same on July 16, thus ending a long wait since early 2000s, and notching another high for the Buhari administration”, Adesina said.
The recently assented PIB had been heavily criticized by stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and other groups in the South-South, South-West and South-East describing its provisions as “unjust, satanic and provocative”.
It was earlier reported that Southern governors last month in Lagos rejected the proposed allocation of at least 30 per cent of the profit generated by the proposed Nigerian National Petroleum Company Limited for the exploration of oil in ‘frontier basins’ as identified by Section 9 of the PIB.
The 17 governors, in a communiqué signed by the Governor of Ondo State, Oluwarotimi Akeredolu, at end of their July meeting in Lagos, said, “The Forum rejects the proposed 3% and support the 5% share of the oil revenue to the host community as recommended by the House of Representatives.
The forum also rejects the proposed 30% share of profit for the exploration of oil and gas in the basins.
“The forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited. The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority since all tiers of Government have stakes in that vehicle.”
The frontier basins include Chad Basin, Gongola Basin, Sokoto Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.
Currently, crude oil is obtained from eight states in the Niger Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers States.
SOURCE: THE PUNCH NEWS
WHAT YOU NEED TO KNOW ABOUT NIGERIA’S NEW PETROLEUM INDUSTRY BILL
President Muhammadu Buhari has sent a new PIB to the bicameral National Assembly, where the Senate, along with the House of Representatives, must sign off on it before it can become law. The bill passed its first reading in the Senate on October 1.
What changes under the new bill?
The new bill could offer a radical departure from past norms. The bill plans for the selling of shares in a reformed NNPC, the replacement of regulatory bodies, and the reduction and streamlining of royalties.
The legislation suggests the NNPC should become “a commercially oriented and profit-driven national petroleum company” independent of government and audited annually, although no dates are yet given for a share sale. The PIB could also boost the amount of money companies pay to local communities and for environmental cleanups, introduce new dispute-resolution mechanisms between government and oil companies, and set up a midstream government infrastructure fund.
“It would play a key role in addressing inefficiencies, from slow approval for oil projects to budget shortfalls that hinder the ability to pursue public-private partnerships. What’s more, the bill would create a supportive environment for both International oil company (IOCs) and indigenous petroleum companies, help protect the environment and the interests of host communities, support economic diversification in Nigeria, and critically important, promote transparency in Nigeria’s administration of petroleum resources,” writes NJ Ayuk, Executive Chairman of the African Energy Chamber.
Given the PIB’s tangled history, the passage of the bill would represent a remarkable political victory for the current administration and send a message to international investors. Furthermore, the plunge in global oil prices brought about by the Covid-19 pandemic, which has seen crude trading at less than $40 a barrel and triggered a 60% slump in Nigerian government revenues, may give renewed impetus to reform efforts.
Yet the complexity of the legislation remains a problem. The latest PIB comprises one version separated into four chapters, unlike previous failed versions in which the bill itself was separated. The Senate house speaker has resolved to pass the bill as quickly as possible but emphasized that it would not “sacrifice thoroughness at the altar of speed” – comments which may raise eyebrows among long-term industry observers.
OIL MAJORS, OTHERS, RAISE CONCERNS AS NATIONAL ASSEMBLY BEGINS HEARING ON PIB, PETROLEUM INDUSTRY BILL.
Some major oil-producing companies and other players in the industry have raised concerns over some provisions of the Petroleum Industry Bill (PIB), 2020. This was at the first day of the public hearing, a necessary stage of the consideration and passage of the bill.
The legislation, which was transmitted to the National Assembly last year after it had suffered setbacks for about 20 years, proposes the scrapping of the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Product Pricing Regulatory Agency (PPPRA). It also proposed the creation of the Nigerian National Petroleum Company Limited – after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.
The PIB also seeks to establish the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
At the hearing organized by the Joint Committee on Petroleum Upstream, Downstream and Gas, was the Oil Producing Trade Section (OPTS) who expressed dissatisfaction with some provisions of the bill.
The chairman of OPTS, Mike Sangster, made his presentations on behalf of Total, Chevron, Exxon Mobil and Shell companies.
Major concerns
Top of their concerns was Deepwater developments, which he said have contributed significantly to maintaining Nigeria’s oil production levels by offsetting the decline in the Joint Venture production.
Mr. Sangster complained that the PIB shows that the Deepwater provisions do not provide a favorable environment for future investments and for the launching of new project.
To ensure investors are encouraged to finance Deepwater projects, ‘the PIB should grant Deepwater oil projects a full royalty relief during the first five years of production or a graduated royalty scheme as detailed in their submission’, he said. He also proposed that PIB should remove Hydrocarbon Tax considering that companies will still be subject to CIT.
The group said the bill does not address the key challenges facing gas development in Nigeria, such as inadequate midstream infrastructure, regulated gas pricing, huge and long outstanding debts, etc., thereby potentially jeopardizing the realization of the government’s aspirations for domestic gas sector. It therefore suggested that PIB “provide a clear path for transitioning to free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply and allow pre-existing contracts and agreements to run their course”.
The PIB, Mr. Sangster continued, “does not clearly preserve the terms of existing investments”.
“OPTS recognizes the government’s right to change laws. However, to maintain Nigeria’s reputation amongst investors, it is important for the PIB to explicitly preserve base businesses and rights for existing Joint Venture licenses and leases and Production Sharing Contracts, which form the basis for future growth.
“Operators should be allowed to retain the entirety of their lease areas and new terms should apply only to new contracts, licenses and leases,” he added.
For a section of the bill which proposes that companies operating consolidated upstream and midstream assets separate and incorporate their midstream assets as distinct legal entities, he said “an imposed segregation along upstream and midstream for existing assets could jeopardize the integrity of past investments for assets that were technically and commercially designed to operate on an integrated basis”.
The OPTS said the PIB should include a savings provision to allow post-conversion continuity of activities undertaken by a single legal entity, instead of being segregated as independent companies.
“Where assets are required to be segregated, a provision for the specific exemption of associated taxes should be considered such as Capital Transfer Tax, Capital Gains Tax.
“PIB should consider harmonizing the taxes into a single tax system and allow for consolidated filing and tax reporting and also seek to harmonize tax practices and ensure capital allowances and allowable deductions are consistent with existing tax legislations, Companies Income Tax Act (CITA).”
Other concerns
The Women in Energy Network were also present to state their concerns. The group, among others, noted the absence of gender participation in the bill.
They cited Sections 3, 14, 15, 18, 22, 26, 37, 41 and 71, among others as they asked the lawmakers to change words like ‘he’, ‘his’ and ‘him’ to ‘they’, ‘their’, and ‘them’.
Funmi Ogbue, who made the presentation, said women have a role to play not just in technical aspects but in ensuring good governance.
This is even as she proposed that 35 per cent of the board be made up of women and the members should consist of women from the host communities (with the right qualifications).
She said the provision that oil companies should contribute 2.5 per cent of their operating cost to the host community development trust fund is exorbitant in view of other taxes they are presently paying.
“WIEN believes that 2.5 per cent is too expensive. WIEN posits that a total of not more than 1 per cent consistent with other statutory provisions like the Nigerian Local Content Act 2010 replace the current figure captured in the PIB.
“And the PIB include alternative sources of energies such as renewables.”
Meanwhile, in his opening remarks, the Senate President, Ahmad Lawan, explained that the National Assembly’s determination to pass the Bill is driven by the need to “overhaul a system that has refused to operate optimally in line with global standards, resulting into loss of continental competitiveness, transparency, accountability, good governance and economy loss for the petroleum industry and the country”.
NO INCREASE IN FUEL PRICE YET – NNPC
The Nigerian National Petroleum Corporation (NNPC) against the backdrop of the new guiding price for Petroleum Motor Spirit (PMS) released by the Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no increase in its ex-depot price for the month of March.
This was even as it stated that the question of if the Federal Government is now paying subsidy on the commodity, was a matter of simple “logic and arithmetic.”
The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru made the clarification. According to him, despite the increase in oil price at the international market, its ex-depot price remains unchanged since February.
The group GM said regardless of the PPPRA’s guiding price template, the NNPC remains the current sole importer of fuel in the country. we are not going to increase, so irrespective of what the PPPRA has said, that is still our position” he said.
DPR REAPRAISES FIVE PSCS FOR GAS DEVELOPMENT
The Department of Petroleum Resources (DPR) has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country. Sarki Auwalu, the Chief Executive Officer, revealed this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday, the 8th of March, 2021.
The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”
He said DPR had considered and reviewed five terms for gas development in PSC and the terms included duration, cost of gas, tax gas, royalty and profit gas.
“These five terms, we believe when considered, will definitely make it robust and enable the provisions that were made in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns,” said Auwalu.
He explained that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.
According to him, others were signed in 1993 with oil majors, and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.
1029MW OF ELECTRICITY STRANDED DUE TO GAS SHORTAGE, UNPAID INVOICES
Eight of the power plants on the national grid suffered gas constraints on Wednesday the 3rd of March 2021, amid concerns by gas producers over unpaid invoices in the Nigerian electricity supply industry.
A total of 1,029.80 megawatts of generation capacity was idle as of 6am on Wednesday because of gas constraints.
The nation’s total unutilized electricity generation capacity stood at 2,119.8MW as of 6am on Monday, with low load demand by the distribution companies and water management stalling the generation of 1,090MW.
The power plants affected by gas constraints included Omotosho I, Olorunsogo I, Omoku, Afam VI, and Geregu II (NIPP). Others were Omotosho II (NIPP), Gbarain NIPP and Trans-Amadi, according to data obtained from the Nigerian Electricity System Operator.
Total power generation in the country stood at 4,775.8MW as of 6am on Wednesday, compared to 4,751.8MW on Tuesday.
The Oil Producers Trade Section, comprising international and local operators in the Nigerian oil and gas industry, has decried the unpaid gas invoices in the power sector.
In its presentation at the international conference of the Nigeria Gas Association, the OPTS said, “We must of a necessity repay all outstanding gas invoice arrears. Some companies are being owed as far back as 2015-2016. This is not sustainable; we must be able to get assurance that when we produce the gas, we will get paid for it. So, we must of a necessity quickly settle all outstanding debts, and make sure that we establish bankable credit support that will make the gas business to grow so that investors can develop more gas resources.
PIA: FG, labour negotiate to minimise effects of subsidy removal – PPPRA.
Following the enactment of the Petroleum Industry Act (PIA), the Petroleum Products Pricing Regulatory Agency (PPPRA), Executive Secretary, Abdulkadir Saidu said the ongoing Federal Government’s negotiation with Labour on subsidy removal, will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses.
He said in a statement at Abuja that the PIA signals the implementation of full deregulation of the downstream sector. He further emphasized that it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.
The head of PPPRA, Mr Saidu, has hinted that the current market price will remain as it is until the completion of talks with the trade unions in order to minimise the impact of a market-based pricing policy on the masses. The agency commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu mentioned that the PIA, which provides legal, governance, regulatory and fiscal framework for the petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.
He noted that delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy and that the implementation of the PIA will foster greater investment to the sector.
The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will clearly outline the roles of industry operators and regulators.
HERE ARE 5 TIPS FOR KEEPING YOUR ENGINE OIL IN GOOD CONDITION.
- Check your engine oil level at every fuel fill
Vehicles are more fuel efficient than ever and sometimes it can be 1,000kms or more between fill-ups.
Vehicle manufacturers have different criteria for normal oil consumption, ranging from 1 litre per 1,000 to 2,500kms.
If you don’t check your oil level between oil changes, you could be running dangerously low on oil, or even causing damage unknowingly.
- Check the visual condition of the oil
New engine oil is a golden honey brown colour and a properly maintained engine will keep the oil brown until near its oil change interval.
Once the oil starts to get almost or fully black, your engine is telling you it’s time to change the oil.
On diesel engines however, the oil may appear black almost instantly. This is due to the increased carbon content created by the combustion temperature compared to a petrol engine.
It may be difficult to determine the condition of the oil just by looking at it, so if it smells like diesel fuel or looks dilated, it may be time for an oil change.
- Check the smell and feel of the oil
Engine oil in need of changing smells overpoweringly burnt when you sniff it on the dipstick.
It can also feel slightly abrasive when you rub it between your fingers. If it smells burnt or feels gritty, plan to change the engine oil sooner rather than later.
- Know your maintenance interval
Some engines require oil changes every 5,000kms, while others may require it less frequently at 10,000 or even up to 20,000kms between changes.
Other vehicles feature oil life monitors to tell you when the vehicle needs an oil change. Know what your car requires and book ahead for its service.
- Be aware of the right grade and viscosity of oil for your car
Does your engine need synthetic oil, semi-synthetic, or will conventional oil suffice?
Make enquiries about it from our personnel at IOGC, Use the proper grade of oil for your engine to get the longest life and best performance from your engine.
NIGERIA’S NNPC POSTS ₦43.57BN TRADING SURPLUS FOR APRIL
The Nigerian National Petroleum Corporation (NNPC) on Sunday declared a trading surplus of ₦43.57 billion in April 2021 representing a 23.64% increase over the ₦35.24bn surplus it recorded in the previous month of March 2021.
Spokesman of NNPC, Dr Kennie Obateru said the figure came from the April 2021 edition of its Monthly Financial and Operations Report (MFOR).
Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.
According to the report, the NNPC Group operating revenue in April 2021, as compared to March 2021, increased by 17.73% or N80.67bn to stand at N535.61bn.
Similarly, expenditure for the month increased by 17.24% or N72.34bn to stand at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as last month.
The report attributed the rise in trading surplus to the activities of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.
The positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).
In the Downstream, to ensure uninterrupted supply and effective distribution of fuel across the country, a total of 1.67 billion litres of Premium Motor Spirit (PMS) translating to 55.79mn liters/day were supplied in the month under review.
The report also showed a 34.29% reduction in the number of pipeline points vandalized from 70% in the previous month of March 2021 to 46% in April 2021. While Port Harcourt area accounted for 54%, Mosimi area accounted for 46% of the vandalized points.
In the Gas sector, a total of 209.27billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72 million standard cubic feet per day (mscfd).
For the period of April 2020 to April 2021, a total of 2,902.52 bcf of gas was produced, representing an average daily production of 7,369.76mscfd during the period.
Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07%, 19.95% and 17.98% respectively to the total national gas production.
In terms of natural Gas off-take, commercialization and utilization, out of the 206.40 bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.
This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94 mscfd of gas supplied to the export market for the month.
This implies that 61.45% of the average daily gas produced was commercialized while the balance of 38.55% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74% for the month under review (i.e. 670.19 mscfd) compared with average gas flare rate of 7.42% (i.e. 542.22 mscfd) for the period of April 2020 to April 2021.
A total of 795 mscfd was delivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.
NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series. It is published in line the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders and the Nigerian public.
BUHARI SIGNS PETROLEUM INDUSTRY BILL INTO LAW
The President has signed the Petroleum Industry Bill 2021 into law.
Special Adviser to the President on Media and Publicity, Femi Adesina, made this known in a statement on Monday 16 August 2021.
The presidential spokesman said his principal signed the controversial bill into law while working from quarantine. “Working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday, August 13, the President assented to the Bill Monday, August 16, in his determination to fulfill his constitutional duty.
The ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation would have been fulfilled. The Petroleum Industry Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.
“The Senate had passed the Bill on July 15, 2021, while the House of Representatives did same on July 16, thus ending a long wait since early 2000s, and notching another high for the Buhari administration”, Adesina said.
The recently assented PIB had been heavily criticized by stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and other groups in the South-South, South-West and South-East describing its provisions as “unjust, satanic and provocative”.
It was earlier reported that Southern governors last month in Lagos rejected the proposed allocation of at least 30 per cent of the profit generated by the proposed Nigerian National Petroleum Company Limited for the exploration of oil in ‘frontier basins’ as identified by Section 9 of the PIB.
The 17 governors, in a communiqué signed by the Governor of Ondo State, Oluwarotimi Akeredolu, at end of their July meeting in Lagos, said, “The Forum rejects the proposed 3% and support the 5% share of the oil revenue to the host community as recommended by the House of Representatives.
The forum also rejects the proposed 30% share of profit for the exploration of oil and gas in the basins.
“The forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited. The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority since all tiers of Government have stakes in that vehicle.”
The frontier basins include Chad Basin, Gongola Basin, Sokoto Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.
Currently, crude oil is obtained from eight states in the Niger Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers States.
SOURCE: THE PUNCH NEWS
WHAT YOU NEED TO KNOW ABOUT NIGERIA’S NEW PETROLEUM INDUSTRY BILL
President Muhammadu Buhari has sent a new PIB to the bicameral National Assembly, where the Senate, along with the House of Representatives, must sign off on it before it can become law. The bill passed its first reading in the Senate on October 1.
What changes under the new bill?
The new bill could offer a radical departure from past norms. The bill plans for the selling of shares in a reformed NNPC, the replacement of regulatory bodies, and the reduction and streamlining of royalties.
The legislation suggests the NNPC should become “a commercially oriented and profit-driven national petroleum company” independent of government and audited annually, although no dates are yet given for a share sale. The PIB could also boost the amount of money companies pay to local communities and for environmental cleanups, introduce new dispute-resolution mechanisms between government and oil companies, and set up a midstream government infrastructure fund.
“It would play a key role in addressing inefficiencies, from slow approval for oil projects to budget shortfalls that hinder the ability to pursue public-private partnerships. What’s more, the bill would create a supportive environment for both International oil company (IOCs) and indigenous petroleum companies, help protect the environment and the interests of host communities, support economic diversification in Nigeria, and critically important, promote transparency in Nigeria’s administration of petroleum resources,” writes NJ Ayuk, Executive Chairman of the African Energy Chamber.
Given the PIB’s tangled history, the passage of the bill would represent a remarkable political victory for the current administration and send a message to international investors. Furthermore, the plunge in global oil prices brought about by the Covid-19 pandemic, which has seen crude trading at less than $40 a barrel and triggered a 60% slump in Nigerian government revenues, may give renewed impetus to reform efforts.
Yet the complexity of the legislation remains a problem. The latest PIB comprises one version separated into four chapters, unlike previous failed versions in which the bill itself was separated. The Senate house speaker has resolved to pass the bill as quickly as possible but emphasized that it would not “sacrifice thoroughness at the altar of speed” – comments which may raise eyebrows among long-term industry observers.
OIL MAJORS, OTHERS, RAISE CONCERNS AS NATIONAL ASSEMBLY BEGINS HEARING ON PIB, PETROLEUM INDUSTRY BILL.
Some major oil-producing companies and other players in the industry have raised concerns over some provisions of the Petroleum Industry Bill (PIB), 2020. This was at the first day of the public hearing, a necessary stage of the consideration and passage of the bill.
The legislation, which was transmitted to the National Assembly last year after it had suffered setbacks for about 20 years, proposes the scrapping of the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Product Pricing Regulatory Agency (PPPRA). It also proposed the creation of the Nigerian National Petroleum Company Limited – after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.
The PIB also seeks to establish the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
At the hearing organized by the Joint Committee on Petroleum Upstream, Downstream and Gas, was the Oil Producing Trade Section (OPTS) who expressed dissatisfaction with some provisions of the bill.
The chairman of OPTS, Mike Sangster, made his presentations on behalf of Total, Chevron, Exxon Mobil and Shell companies.
Major concerns
Top of their concerns was Deepwater developments, which he said have contributed significantly to maintaining Nigeria’s oil production levels by offsetting the decline in the Joint Venture production.
Mr. Sangster complained that the PIB shows that the Deepwater provisions do not provide a favorable environment for future investments and for the launching of new project.
To ensure investors are encouraged to finance Deepwater projects, ‘the PIB should grant Deepwater oil projects a full royalty relief during the first five years of production or a graduated royalty scheme as detailed in their submission’, he said. He also proposed that PIB should remove Hydrocarbon Tax considering that companies will still be subject to CIT.
The group said the bill does not address the key challenges facing gas development in Nigeria, such as inadequate midstream infrastructure, regulated gas pricing, huge and long outstanding debts, etc., thereby potentially jeopardizing the realization of the government’s aspirations for domestic gas sector. It therefore suggested that PIB “provide a clear path for transitioning to free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply and allow pre-existing contracts and agreements to run their course”.
The PIB, Mr. Sangster continued, “does not clearly preserve the terms of existing investments”.
“OPTS recognizes the government’s right to change laws. However, to maintain Nigeria’s reputation amongst investors, it is important for the PIB to explicitly preserve base businesses and rights for existing Joint Venture licenses and leases and Production Sharing Contracts, which form the basis for future growth.
“Operators should be allowed to retain the entirety of their lease areas and new terms should apply only to new contracts, licenses and leases,” he added.
For a section of the bill which proposes that companies operating consolidated upstream and midstream assets separate and incorporate their midstream assets as distinct legal entities, he said “an imposed segregation along upstream and midstream for existing assets could jeopardize the integrity of past investments for assets that were technically and commercially designed to operate on an integrated basis”.
The OPTS said the PIB should include a savings provision to allow post-conversion continuity of activities undertaken by a single legal entity, instead of being segregated as independent companies.
“Where assets are required to be segregated, a provision for the specific exemption of associated taxes should be considered such as Capital Transfer Tax, Capital Gains Tax.
“PIB should consider harmonizing the taxes into a single tax system and allow for consolidated filing and tax reporting and also seek to harmonize tax practices and ensure capital allowances and allowable deductions are consistent with existing tax legislations, Companies Income Tax Act (CITA).”
Other concerns
The Women in Energy Network were also present to state their concerns. The group, among others, noted the absence of gender participation in the bill.
They cited Sections 3, 14, 15, 18, 22, 26, 37, 41 and 71, among others as they asked the lawmakers to change words like ‘he’, ‘his’ and ‘him’ to ‘they’, ‘their’, and ‘them’.
Funmi Ogbue, who made the presentation, said women have a role to play not just in technical aspects but in ensuring good governance.
This is even as she proposed that 35 per cent of the board be made up of women and the members should consist of women from the host communities (with the right qualifications).
She said the provision that oil companies should contribute 2.5 per cent of their operating cost to the host community development trust fund is exorbitant in view of other taxes they are presently paying.
“WIEN believes that 2.5 per cent is too expensive. WIEN posits that a total of not more than 1 per cent consistent with other statutory provisions like the Nigerian Local Content Act 2010 replace the current figure captured in the PIB.
“And the PIB include alternative sources of energies such as renewables.”
Meanwhile, in his opening remarks, the Senate President, Ahmad Lawan, explained that the National Assembly’s determination to pass the Bill is driven by the need to “overhaul a system that has refused to operate optimally in line with global standards, resulting into loss of continental competitiveness, transparency, accountability, good governance and economy loss for the petroleum industry and the country”.
NO INCREASE IN FUEL PRICE YET – NNPC
The Nigerian National Petroleum Corporation (NNPC) against the backdrop of the new guiding price for Petroleum Motor Spirit (PMS) released by the Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no increase in its ex-depot price for the month of March.
This was even as it stated that the question of if the Federal Government is now paying subsidy on the commodity, was a matter of simple “logic and arithmetic.”
The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru made the clarification. According to him, despite the increase in oil price at the international market, its ex-depot price remains unchanged since February.
The group GM said regardless of the PPPRA’s guiding price template, the NNPC remains the current sole importer of fuel in the country. we are not going to increase, so irrespective of what the PPPRA has said, that is still our position” he said.
DPR REAPRAISES FIVE PSCS FOR GAS DEVELOPMENT
The Department of Petroleum Resources (DPR) has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country. Sarki Auwalu, the Chief Executive Officer, revealed this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday, the 8th of March, 2021.
The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”
He said DPR had considered and reviewed five terms for gas development in PSC and the terms included duration, cost of gas, tax gas, royalty and profit gas.
“These five terms, we believe when considered, will definitely make it robust and enable the provisions that were made in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns,” said Auwalu.
He explained that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.
According to him, others were signed in 1993 with oil majors, and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.
1029MW OF ELECTRICITY STRANDED DUE TO GAS SHORTAGE, UNPAID INVOICES
Eight of the power plants on the national grid suffered gas constraints on Wednesday the 3rd of March 2021, amid concerns by gas producers over unpaid invoices in the Nigerian electricity supply industry.
A total of 1,029.80 megawatts of generation capacity was idle as of 6am on Wednesday because of gas constraints.
The nation’s total unutilized electricity generation capacity stood at 2,119.8MW as of 6am on Monday, with low load demand by the distribution companies and water management stalling the generation of 1,090MW.
The power plants affected by gas constraints included Omotosho I, Olorunsogo I, Omoku, Afam VI, and Geregu II (NIPP). Others were Omotosho II (NIPP), Gbarain NIPP and Trans-Amadi, according to data obtained from the Nigerian Electricity System Operator.
Total power generation in the country stood at 4,775.8MW as of 6am on Wednesday, compared to 4,751.8MW on Tuesday.
The Oil Producers Trade Section, comprising international and local operators in the Nigerian oil and gas industry, has decried the unpaid gas invoices in the power sector.
In its presentation at the international conference of the Nigeria Gas Association, the OPTS said, “We must of a necessity repay all outstanding gas invoice arrears. Some companies are being owed as far back as 2015-2016. This is not sustainable; we must be able to get assurance that when we produce the gas, we will get paid for it. So, we must of a necessity quickly settle all outstanding debts, and make sure that we establish bankable credit support that will make the gas business to grow so that investors can develop more gas resources.