L-R: NNPC Limited’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan; Chief Financial Officer, Mr. Umar Ajiya; Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye; CEO Golar LNG Limited, Karl Fredrik Staubo (CEO) and two other officials from Golar LNG, during the signing ceremony of the Project Development Agreement (PDA) between the NNPC Limited and Golar LNG Limited for the deployment of a Floating Liquefied Natural Gas (LNG) offshore Niger Delta, Nigeria on Monday.

In furtherance of its commitment to monetise Nigeria’s vast natural gas resources, the NNPC Limited has executed a Project Development Agreement (PDA) with Golar LNG for the deployment of a Floating Liquefied Natural Gas (LNG) offshore Niger Delta, Nigeria.

The signing ceremony, which took place on Monday, June 10, 2024, was attended from the NNPC Limited side by the Chief Financial Officer, Umar Ajiya; Executive Vice President, Gas Power & New Energy, Olalekan Ogunleye and Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan while the Golar LNG team was led by – Karl Fredrik Staubo (CEO).

The PDA is another major milestone achievement towards ensuring gas commercialisation through deployment of an FLNG Facility in Nigeria, which is in line with Mr. President Bola Ahmed Tinubu’s resolve to rapidly commercialise Nigeria’s gas assets for the economic prosperity of the Nation.

The agreement aims to monetise vast proven gas reserves from shallow water resources offshore Nigeria. The PDA also outlines the monetisation plan that will utilize approximately 400-500mmscf/d and produce LNG, LPG and Condensate.

The Partners, NNPC Limited and Golar LNG have both expressed their commitment to achieve Final Investment Decision (FID) before end of Q4, 2024 and first gas by 2027.

Golar LNG Limited is a renowned independent owner and operator of LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels.

The Nigerian National Petroleum Company Limited (NNPC) notes with dismay a report in a section of the media alleging that it inflated subsidy claims by N3.3 trillion, and wishes to state that:

1. NNPC Ltd conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government. All previous subsidy claims by the Company are verifiable as relevant records and documents have been sent to relevant authorities and agencies.
2. NNPC Ltd is neither aware of any audit of its subsidy claims nor probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses.
3. NNPC Ltd will resist any attempt to drag the Company into the apparent politics of fuel subsidy as it currently operates on commercial basis and on the express provisions of the Petroleum Industry Act (PIA).
4. It is on record that in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd has on several occasions, independently invited external auditors to review its books.
5. NNPC Ltd calls on media practitioners and media houses to exercise restraint and verify information before publication in keeping with the ethics of the noble profession of journalism to avoid misleading the public.

The NNPC Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), has announced a 137 per cent increase in operating profits for the year 2023.

This was disclosed by the Chairman of the company’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, Mr. Adedapo Segun, at the company’s 34th Annual General Meeting (AGM) held in Lagos.

The Board Chairman explained that NETCO recorded a 101 percent revenue increase in the year 2023, reflecting a turnaround in operating results, which rose by 137 per cent reversing the previous year’s deficit.

He also noted that there was a 145 percent surge in the company’s gross profit compared to the previous year.

Also speaking at the AGM, the Managing Director of NETCO, Dr. Tonye Alagba, said the company is focused on growing its business portfolio in 2024 and beyond.

“To achieve this, the company is working strategically to expand its service offerings within the oil and gas industry in 2024, invest in the development of human and other resources, reduce direct and overhead resources and minimise risks”, Alagba stated.

The NETCO helmsman further stated that the company aims to increase its market share by at least five per cent through participation in mainstream EPC projects, stressing that the company will bid for a minimum of 32 Tenders with a target of securing at least 15 contracts.

He listed other targets to include: a 21-day invoicing cycle; a minimum of 85 percent debt collection efficiency; a minimum customer satisfaction rate of 71 percent; acquisition of critical assets such as fabrication yards and offshore logistics support base; and development of exclusive collaborations with key technical partners like KBR and Petrofac, amongst others.

NETCO is a subsidiary of NNPC Limited with the mandate of delivering qualitative, integrated and cost-effective Engineering, Procurement & Construction Management (EPCM) services for Nigeria’s Oil & Gas Industry and beyond.

Key officials of the Uganda National Oil Company (UNOC) on Monday began a working visit to the Nigerian Content Development and Monitoring Board (NCDMB), stating that they were here to learn and that their country stands to gain substantially from Nigeria’s experience in local content development.

Welcoming the four-member UNOC delegation at a meeting at the Nigerian Content Tower, Corporate Headquarters of the NCDMB, Swali, Yenagoa, the Director, Monitoring and Evaluation, Alhaji Abdulmalik Halilu, said the visit would open up new vistas for mutually beneficial collaboration in oil and gas operations between Nigeria and Uganda.

Citing statistics indicative of the resource base of African countries in hydrocarbons, he noted that “the picture looks very good and what we need to do is to work together on how to foster structured partnership.”

According to him, African oil-producing countries cannot achieve enough when they operate in silos, adding that there is a need to approach local content with a pan-African orientation. In that connection, he advanced the idea of a “local content value proposition for Africa, stating that African oil and gas producers would be able to deepen regional integration through value chain optimisation.

Halilu highlighted industry-related challenges that have to be dealt with, noting that there is a need for appropriate technologies to be developed for value addition in oil and gas operations through research and development. Equally noteworthy is the very significant investment required in marine vessels, particularly for Nigeria as the country moves to deep offshore.

“We have to create a financing model to enable African countries to own the required assets,” he told the visiting officials.

Describing the anticipated interactions between the UNOC officials and their NCDMB counterparts during the five-day visit as knowledge exchange, he expressed the hope that there would be exchange programmes between training institutes of both countries, stating that the two organisations have the support of their political leaderships.

In her response, Mrs. Jessica Kyeyune, National Content Specialist of UNOC, thanked the NCDMB Management for the warm reception and hospitality and the wide scope of engagements planned for her team to facilitate adequate exposure to critical aspects of local content implementation and enforcement.

She said her country is a new entrant into oil and gas operations and that they needed to tap from the knowledge of Nigeria’s industry regulator on local content to guide them in the management of the industry back home. “We appreciate what you’ve shared with us, and we look forward to collaboration,” she added.

Mrs. Kyeyuna revealed that there are many projects in the oil and gas sector in Uganda with opportunities and that strategic partnerships as suggested by Alhaji Halilu was imperative.

Presentations by key personnel of NCDMB covered every vital aspect of the Board’s operations. Topics included “Overview of the Structure and Operations of NCDMB,” “Local Content Leading Practice, Supplier Development and Joint Venture Partnerships,” “Incentive Structure for Staff Retention and Expatriates,” “NCDMB Financing Model,” “An Overview of PCAD [Project Certification and Authentication Division],” “Monitoring and Evaluation Operation Framework,” and “Community Content Guidelines.”

A tour of NCDMB’s Nigeria Oil and Gas Park Scheme (NOPaPS) at Emeyal-1, Ogbia Local Government Area, was conducted on Monday to acquaint the visiting officials with an aspect of the Board’s strategy to minimise capital flight by ensuring that equipment, spare parts and tools used in the oil and gas industry are produced locally in Nigeria.

Resource persons were Olubisi Okunola, Manager, Strategy Development and Transformation; Ene Ette, General Manager, Planning, Research and Statistics; Timbiri Augustine, Acting General Manager, Capacity Building; Silas Ajimijaiye, General Manager; Elvis Ogede, Senior Supervisor, PCAD; Collins Obiora Ifeka, Manager, Upstream, Monitoring and Evaluation Department, and Obinna Ezeobi. Coordinator of the event was Tassala Tersugh, General Manager, Midstream, Monitoring and Evaluation Department.

The UNOC, which comprises Mrs. Jessica Kyeyune, Catherine Behangana Tumusima (Chief Human Resources Officer), Edith Tusubira (Human Resources Business Partner), and Ochaki Brian Kabalega (National Content Officer), continues its engagements with NCDMB on Tuesday with a visit to companies and project sites in Port Harcourt, Rivers State, that have benefitted from the Board’s strategic intervention programme.

Uganda launched its drilling of development and production wells at the Kingfisher Development Area in the country’s western region on January 24, 2023. Its first oil output, slated for 2025, is from the Kingfisher oil field, operated by China National Offshore Oil Corporation.

Nigeria LNG Limited (NLNG) has noted recent media reports regarding a meeting by the Senate and House of Representatives’ Joint Committee on Gas, which examined contracts for the Company’s Train 7 project.

These reports suggested that a company representative, Mr. Godson Dienye, made remarks concerning the alleged non-disclosure of project contract details.

NLNG wishes to clarify that statements attributed to Mr. Dienye are false and misleading. Mr. Godson Dienye attended the proceeding, but he was not questioned and did not make a statement during the session.

NLNG values its relationship with the National Assembly and consistently operates in compliance with Nigerian laws, including in matters related to the Train 7 project.

As a responsible corporate citizen, NLNG is committed to Nigeria’s development through its contributions to the national revenue, local capacity building, and sustainable development, aligned with its vision of being “a globally competitive LNG company helping to build a better Nigeria.”

NLNG is co-operating and continuously engages with the joint committee to ensure a shared understanding among all stakeholders, aimed at resolving the issues under consideration.

Nedogas Development Company Limited (NDCL), a Joint Venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company, has in collaboration with the NNPC Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, successfully completed the construction and technical commissioning of a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger-Delta, Nigeria.

The formal commissioning ceremony of the facility will be performed by the Honorable Minister of State for Petroleum Resources (Gas), Rt. Honorable Ekperikpe Ekpo on June 6, 2024.

The Minister will be supported by the Governor of Delta State, Rt. Hon. Sheriff Francis Orohwedor Oborevwori and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe.

The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick access to market.

The KGG hub, which has been tied-in to the NGIC-owned and operated 48-inch OB-3 gas trunk line, is now fully commissioned with gas injection capacity totaling approximately 50 MMscfd comprising of 20 MMscfd from the Nedogas Plant located 3km away in Energia’s Ebendo field and another 30 MMscfd coming from the Matsogo field operated by Chorus Energy Limited. Injected gas volumes are gradually and steadily being ramped up.

This project represents a significant milestone in Nigeria’s decade of gas initiative as well as a major achievement in the quest to provide gas into the OB3 trunk line and monetize natural gas resources from the OML 56 producer cluster.

With the successful injection of gas from the Energia/Oando JV and the Chorus operated Ebendo and Matsogo fields respectively into the OB3, the KGG Facility is now poised to receive additional gas from nearby fields including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas, all aimed at positioning KGG as a fully-fledged gas-gathering facility and hub with single point injection of up to 300 MMscfd of gas into the OB3 via the KGG tie-in.

The plan is to expand the capacity of the KGG facility to 600 MMscfd in the second phase. In addition to the gas delivery obligations of the facility, the KGG will also be supplying the Delta State Economic Zone (DSEZ) from an integrated supply node within the manifold at the hub.

NDCL is a 100% Nigerian company with a proven interest in innovating and deploying cleaner energy solutions for Nigeria’s growth and economic development.

NCDMB’s equity investment in NDCL is one of the strategic projects geared towards actualising the Federal Government’s aspirations in key areas of the oil and gas industry. Most of NCDMB’s third-party investments are targeted at actualising the Federal Government Decade of Gas programme. The investments are in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act.

Prior to now, NDCL’s precursor, Xenergi Limited, developed a novel approach to providing cleaner energy sources which resulted in the birth of Nigeria’s first inland Integrated Power, Propane and LPG Modular Plant in partnership with Energia-Oando JV, located in Ebendo in Delta State, Nigeria. The Nedogas Natural Gas Fractionation Plant, produces high-quality LPG and propane and with the capacity to process over 25 MMSCFD of associated natural gas. The capacity of the plant is currently being expanded to 60 MMSCFD.

The Executive Secretary NCDMB enthused that the success story of NEDOGAS at Kwale, Delta State could be replicated in other oil- and gas-producing communities to minimise gas flaring. He declared the Board’s readiness to continue collaborating with the company. “Their model should be extended to other parts of the country where gas flaring is continuing. They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.”

The Managing Director of NDCL, Mr. Debo Fagbami explained that with the completion of the first phase of the KGG Facility, the proof-of-concept to readily monetize gas has now been established to the extent of eradicating the pain of seeing an invaluable resource being wasted. Rather than just being concerned about ending gas flaring – he sees opportunities to harness the potential of the flare sites from these oilfields which will ultimately convert a “wasting” resource into an economic asset used to generate cleaner energy.

With an estimated 180 billion cubic feet of proven Natural gas reserves, Nigeria has the ninth largest concentration in the world, but sadly enough, the country continues to flare significant quantities of Associated gas which has relegated the health and environmental well-being of Nigerians to the background for over 60 years. Natural gas remains a relatively clean fossil fuel and represents a viable transition to renewable energy which plays a pivotal role in powering the growth of developing economies like Nigeria. The KGG facility is set to create hundreds of direct and indirect jobs for indigenes of the host and nearby communities.

The Nigerian Content Development and Monitoring Board (NCDMB) plans to introduce some changes that will enhance the Nigerian Content Intervention (NCI) Fund and increase the fund’s impact and efficiency.

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omotsola Ogbe hinted at the changes at the quarterly engagement forum held with the Bank of Industry (BOI), custodians of the fund on Monday in Lagos.

Commenting on the performance of the Fund, the Executive Secretary confirmed that the NCI Fund has since its inception played a crucial role in transforming the Nigerian oil and gas industry. He stated that by providing essential financial support, the fund has empowered numerous Nigerian companies and fostered local capacity development and promoted sustainable growth.

He indicated that the NCI Fund has been instrumental in driving and deepening local content development within the Nigerian oil and gas industry and its linkage sectors. The Fund has also supported numerous projects, building capacities along the local value chain and fostering growth among Nigerian companies, he added.

Speaking further, Ogbe informed that the Board was pursuing continuous improvement and innovation. He said: “We will be proposing several strategic changes that will further enhance the impact and efficiency of the NCI Fund.”

The Nigerian Content Intervention Fund (NCI Fund) is a portion of the Nigerian Content Development Fund (NCDF), which was set up by section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. The NCDF is contributed by 1% percent deduction from every contract awarded in the upstream sector of the Nigerian oil and gas industry.

The NCDMB had deposited US$300 million with the BOI, which had loaned out US$330 million to 70 qualified oil and gas companies. The additional $30 million accrued from interests from the loans, according to records provided to the Board.

The NCI Fund is the most successful fund scheme in the country, considering the faithful repairment by the beneficiaries and the growth of the fund. The Bank of Industry carries out quarterly project monitoring on the loan beneficiaries, while the NCDMB holds an annual monitoring review on the fund scheme and beneficiaries.