L-R: Government Relations Advisor, Heritage Energy Operational Services Limited (HEOSL),  Mr. Babajide Ololajulo; General Manager,  Government, Joint Ventures and External Relations,  Mr. Adesola Adebawo; Chief Executive Officer, HEOS, Mr. Ado Oseragbaje; Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote; Director Monitoring and Evaluation, Mr. Akintunde Adelana; Director Legal Services, Mr. Mohammed Umar and Director Planning, Research and Statistics, Mr. Abdulmalik Halilu after the visit of HEOS to the Board’s liaison office in Abuja.

The management of Heritage Energy Operational Services Limited (HEOSL) and other indigenous oil and gas companies have been advised to adopt strict corporate governance guidelines in their operations if they want their firms to grow sustainably. The companies were equally encouraged to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and to consult regularly with the Nigerian Content Development and Monitoring Board (NCDMB).

The Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote handed out these pieces of advice on when the Chief Executive Officer of HEOSL, Mr. Ado Oseragbaje, and other key officials of the firm visited him at the Board’s liaison office in Abuja.

He identified the lack of corporate governance as the biggest drawback of most indigenous oil and gas companies and deplored the situation where owners and directors of indigenous operating oil and gas firms serve as contractors to their company, thereby contravening corporate governance procedures and delivering poor services.

The prevalent negative practice, he warned, could negatively affect the divestments of assets by some international oil and gas entities to indigenous firms.

The Executive Secretary commended the management of Heritage Energy Operational Services Limited for turning around the fortunes of their company and advised that they employ competent hands to manage sensitive positions, while also instituting corporate governance guidelines.

Speaking further, Wabote underscored the need for oil companies to always comply with the provisions of the NOGICD Act, including the remittance of one percent of the value of contracts to the Nigerian Content Development Fund (NCDF) as mandated by section 104 of the NOGICD Act.

He reiterated that NCDMB serves as an enabler of business, emphasising that the agency’s regulatory decisions are always taken from a pragmatic point of view. He encouraged oil and gas companies to approach the Board regularly for discussions, even when they have challenges with complying with the NOGICD Act. He assured that “when you hold quarterly meetings with the key teams of the Board, we will support and guide you and there will not be any hitches.”

In his remarks, the CEO of Heritage Energy Operational Services Limited (HEOSL) explained that the visit was initiated so they could brief the Board on the steps the company had taken to address some of the Nigerian Content noncompliance and other regulatory issues that had flouted in the past.

Some of the steps the company has undertaken include executing the Nigerian Content noncompliance remediation programme and the launch of Nigerian Content Research and Development projects at Akwa Ibom State University and Nnamdi Azikiwe University, Awka, Anambra State.

He remarked that HEOSL is the operator of the OML 30 Joint Venture between NNPC Exploration and Production Limited and Shoreline Natural Resources Limited Joint Venture (NEPL/SNRL JV). He announced that the joint venture partners had approved a drilling campaign on the asset, the first time such an activity would be carried out since Shell Petroleum Development Company (SPDC) divested the asset. He said: “We will be drilling four wells and the project could go on for 4 years and would include a lot of projects, such as facility expansion, water treatment, among other activities.”

He also announced that the company was almost paying off its indebtedness to the to NCDF and thanked the Board for being lenient over the firm’s past infractions while supporting it to improve its performance and compliance.

Executive Secretary presented with an award in appreciation for delivering a goodwill message at the 41st Annual International Conference and Exhibition

The Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has warned that Nigeria might resort to importing crude oil for its upcoming and existing refineries if concerted efforts are not made to increase the current low production numbers.

He gave the warning in his goodwill message at the 41st Annual Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

The NCDMB ES bemoaned Nigeria’s low production of crude oil and gas despite the abundant reserves and challenged members of the Nigerian Association of Petroleum Explorationists (NAPE) and other industry stakeholders to initiate efforts to reverse the situation.

He emphasised that the nation’s 37 billion barrels of oil reserves needed close attention bearing in mind the various efforts at revamping the refineries and commissioning of greenfield refineries.

According to him, “it will be a sad outcome if we stop the importation of refined petroleum products only to replace it with the importation of crude oil for use in our local refineries.”

He praised the important role of petroleum explorationists in the energy mix, especially in discovering, evaluating, and establishing the reliability and sustainability of the size of oil and gas reserves.

Dwelling on gas, the Executive Secretary hinted that Nigeria has about 208 trillion cubic feet (TCF) of proven gas reserves and about 600TCF unproven reserves. He subsequently charged petroleum explorationists to apply their skills and technology toward confirming the recoverable volumes from these unproven reserves and developing the proven reserves.

He hinted that the focus on gas is important because gas is no longer Nigeria’s transition fuel but the destination fuel.

He assured that NCDMB is committed to providing all the necessary support to realise the gas business agenda of President Bola Tinubu.

Commenting on the conference’s theme which is “Repositioning the oil and gas industry for future energy dynamics,” the NCDMB boss noted that the world stands at a key point where adequate consideration must be made to address the Energy Trilemma, which is, achieving an appropriate balance between energy security, sustainability, and affordability.

He added that the oil and gas industry has been a key pillar of global energy as it has powered and continues to power industrial and economic developments across the world.

He indicated that repositioning the Nigerian oil and gas industry for national development required collaboration and partnerships with key players and agencies across the upstream, midstream and downstream sectors and its entire value chain.

He added that the Nigerian Oil and Gas Content Development Act (2010) provided the compass to enable the development and growth of local capacities and capabilities in the Nigerian oil and gas industry.

Waboted commended the Federal Government’s determination to sustain the gains realized in the oil and gas industry and the eagerness to consolidate them rather than reverse the gains of Nigerian Content.

He conveyed the Board’s readiness to support various oil and gas initiatives that would ensure patronage of local investments, boost investors’ confidence, and create jobs to sustain the relative peace in the oil and gas sector.

Following a peace deal brokered by the Nigerian National Petroleum Company Limited (NNPCL) between the Management of Total Energies, operator of the NNPC/Total JV, the Petroleum and Natural Gas Senior Staff Association, (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the unions have agreed to suspend on-going industrial action leading to immediate restoration of 275, 000 barrels of oil per day production.

In a communique issued at the end of a marathon negotiation session chaired by Mrs. Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPCL, all parties committed to resolving all the issues within an agreed framework.

The communique was signed by Total Energies MD/CEO, Mr. Matthieu Bouyer, PENGASSAN President, Comrade Festus Osifo and NUPENG   President, Comrade Williams Akporeha.

It was witnessed by NNPC Limited, EVP Upstream, Mrs. Oritsemeyiwa Eyesan, and Mr. Bala Wunti, Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, (NUIMS).

Also in attendance was Mr. Victor Bandele, Deputy Managing Director, Total Energies.

Our attention has been drawn to a Thisday newspaper report on 12th November 2023 titled “Gas Supply Constraints May Worsen in Nigeria, Europe as NLNG Embarks on Plant Maintenance by February 2024.”

The report alluded to an alleged total shutdown of Nigeria LNG Limited’s (NLNG’s) six-train plant over a proposed maintenance operation scheduled for February or March 2024.

NLNG categorically states that this report is false. The Company’s commitment to the safe and uninterrupted functioning of its plant underscores the significance of routine turnaround maintenance, referred to technically as a “Shutdown.”

Contrary to the report’s assertions, a routine turnaround maintenance, while temporarily taking a specific train or unit offline for maintenance purposes, does not entail a complete shutdown of the entire plant. The meticulous planning and execution of this essential activity allows for the seamless transfer of production loads to unaffected trains, resulting in minimal impact on overall production. The “shutdown” alluded to in the report is a routine turnaround maintenance and is part of NLNG’s production calendar.

NLNG takes exception to the disconcerting lack of factual accuracy in the report, highlighting the evident absence of discretion. The company emphasises its track record of global achievements during turnaround maintenance, consistently setting high standards in safety and project management to ensure the continued operational efficiency of its assets.

A classic example of NLNG’s achievements is the deployment of the Add-On Gate Valve (AOGV) technology in 2022 which involved the replacement of a critical valve while the plant remained online and active. NLNG plant was the first in Africa to implement this technology and its 36” line was the largest pipe size across the globe that the AOGV has ever been deployed on. It is this kind of engineering excellence and unparalleled maintenance execution discipline that NLNG is known for.

The report was not fact-based and was deprived of any balance, in contradiction to the ethics of responsible journalism, as no spokesperson of the Company was reached for comments.

In light of these discrepancies, NLNG urges for accuracy in conveying the nuanced details of the energy industry.

L-R: Mr. Andy Odeh, NLNG General Manager External Relations and Sustainable Development; NLNG GM, Human Resources, Mrs. Erinle Bamitale; Engineer Simbi Wabote, Executive Secretary NCDMB; Dr. Philip Mshelbila, MD/CEO NLNG; Mr. Nnamdi Anowi, NLNG GM, Production at the Nigerian Content Stakeholders Retreat in Bonny recently.

Nigeria LNG Limited (NLNG) last weekend hosted the Nigerian Content Stakeholders Retreat at its plant complex in Bonny, in demonstration of its unwavering commitment to the advancement of local content in Nigeria.

The three-day event provided a platform for the cohesion of NLNG’s vision of being a globally competitive LNG company helping to build a better Nigeria, and the goal of the Nigerian Content Development and Monitoring Board (NCDMB) as the umpire for Nigerian Content Development.

Delivering the keynote address at the Nigerian Content and Award Ceremony, the Executive Secretary of the NCMDB, Engr Simbi Wabote expressed concern over the challenges of inadequate gas supply to the NLNG Plant and promised to support the company along the lines of approving third party gas injectors and sanctioning new deepwater gas projects. He added that “most of the marginal operators have also found gas but part of their challenge is where to send the gas.”

Engr Wabote lauded the NLNG for its remarkable success at promoting Nigerian Content, recalling that at the inception, the company’s Management level had 90 per cent expatriates and 10 per cent Nigerians.”

”However, the table has now turned the other way, with the entire Management now consisting of Nigerians” he added.

Earlier, in his welcome remarks, the NLNG Managing Director and Chief Executive Officer, Dr Philip Mshebila, said the retreat and award ceremony was designed to reaffirm NLNG’s commitment to upholding local content development as a catalyst for the economic advancement of the nation, adding that through NLNG’s Nigerian Content policy, the company has consistently championed the development of  indigenous and national economic potentials while fostering a self-sufficient and competitive workforce for sustainable development.

According to Dr. Mshelbila, NLNG recognises its pivotal role in shaping the trajectory of local content development in Nigeria and restated that the company’s commitment to Nigerian Content development aligns with its profound belief in Nigeria’s boundless potentials which can be unleashed by nurturing and harnessing local talents, Nigerian companies and associated resources, that will in turn help build a stronger, more prosperous nation. This includes technology transfer, given the high-tech plant and operations of the NLNG Plant in Bonny Island.

The NLNG boss stated that while the company appreciates the outstanding contributions of major foreign partners, “we insist on capacity development and knowledge transfer to encourage Nigerian companies to get more involved in the technical processes. We want to see more partnerships with local manufacturers, more empowerment for competitive edge, more import substitution with locally manufactured spares and parts”.

Since commencement of operations in 1990, NLNG has maintained unwavering commitment to local content development through significant investment in skills development programmes that empower Nigerian workers and companies with the knowledge and expertise required to drive economic activities in the nation’s Oil and Gas sector and associated industries.

The company provides comprehensive trainings, and scholarships to cultivate local talent, while also actively engaging local vendors, to promote the growth of Nigerian businesses and bolster local economies. NLNG maintains a strong preference for sourcing goods and services locally, whenever practicable.

The company has also achieved 100% Nigerianization of its management team and over 95% Nigerian workforce that are its greatest asset, a feat it achieved through strategic local and international trainings to grow professionals of global standards.

At the award ceremony which featured outstanding local vendors who are NLNG’s business partners, the company commended NCDMB for maintaining transparent and fair regulatory frameworks which are crucial for promoting responsible business practices and growth, adding that strengthening security measures to protect critical infrastructure and operating environment will further bolster Nigeria’s private sector growth and the nation economic gains.

Highpoint of the award night was the recognition of NLNG partner companies for outstanding performance in their partnership with NLNG. Notable among them are EVOMEC Global Services Limited, Coleman Cables and Wires, A.O Brownson Enterprises, Alfred Temile LPG Tanker and Saipem Contracting Nigeria Limited.