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FG to divest 26 oil blocks of 8.211m barrels reserves

FG charges Lagos dredgers, miners on land degradation

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says the International Oil Companies (IOCs) have proposed 26 oil blocks to be divested to indigenous companies with 8.211 million barrels of oil reserves.

The NUPRC said it had also engaged two leading global oil and gas decommissioning consultants to carry out due diligence on the proposed 26 oil blocks to be divested.

The Commission’s Chief Executive, NUPRC, Mr Gbenga Komolafe said this at the Industry Dialogue on IOCs Divestment of Oil and Gas Assets in Abuja on Friday.

NUPRC organised the workshop to guide and consider due diligence and interrogation on compliance with the laws and processes that governed the proposed divestment of oil and gas assets.

Seplat is acquiring Mobil Oil Producing Nigeria Unlimited (MPNU), Oando is acquiring Nigeria Agip Oil Company (NAOC), Chappal Energies is acquiring Equinor, while Renaissance is acquiring Shell Petroleum Development Company (SPDC).

In his remarks, he said the blocks had an estimated total reserve of 8.211million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas.

This, he said was a significant contribution to the nation’s hydrocarbon resources.

“Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of Non-Associated Gas.

“It is worth noting that a substantial part of the P3 reserves is located in or near producing assets. This means that a competent successor can easily mature them to 2P reserves.

“Additionally, the current average production from these blocks is 346,290 barrels per day (bpod) (NAOC-28,018 bopd, MPNU-159,378 bopd, EQUINOR-36,155 bopd and SPDC-122,739 bopd).

“But the technical production potential is much higher – standing at 643,054 barrels (NAOC-147,481 bopd, MPNU-244,268 bopd, EQUINOR-39,203 and SPDC-212,102 bopd).

“These blocks have the potential to significantly boost our national production, which will benefit all stakeholders,” he said.

He listed the names of the leading global oil and gas decommissioning consultants to include S&P Global Commodity Insights (SPGCI), and Boston Consulting Group (BCG).

Komolafe said that the consultants would also work with the Commission as independent consultants in defining all end-of-field life and abandonment legacy liabilities in compliance with divestment guidelines.

“They will also manage the operational risk across the entire asset portfolio, create a workflow for estimating total onshore decommissioning CAPEX liabilities.

“They will determine the host community’s obligations based on three per cent OPEX stipulated in the Petroleum Industry Act (PIA), benchmark best practices on asset sales, and provide case study reports that draw lessons based on best practices, ” he said.

He sald that the Commission’s regulatory goal was to ensure that parties in the divestment process conform to the approved divestment guidelines.

Speaking on an overview of the divestments, Mr Enorense Amadasu, the Executive Commissioner, Development & Production, NUPRC, listed the divestments framework, two options for divestments and objectives.

The Commission’s Secretary and Legal Adviser, Mrs Olayemi Anyanechi described Option A as a grant of ministerial consent to the divestments on the condition that entities would retain liabilities.

According to her, this is until the commission’s investigation is concluded and liabilities are allocated to the proper party.

“The divesting companies will be required to issue an undertaking to retain the liabilities until confirmation of the release by the commission of all or part of the retained liabilities.

In Option B,, she said ministerial consent would not be granted until the commission had identified or assigned all liabilities to the capable parties.

“The divesting entities will be required to issue a waiver, waiving their rights to deemed consent as provider in section 95 (7) (B) of the PIA,” she said.

The Chairman, Oil Producers Trade Section (OPTS), Osagie Okunbor and the Independent Petroleum Producers Group (IPPG), Chairman, Abdulrazaq Isa lauded NUPRC for being transparent and clear options proposed in the divestments process.

Representatives of other parties, including the Equinor, Seplat, Agip among others also lauded the commission on its efforts and clarity and promised to bring feedback to the commission.

News

I am not distracted by Rivers crises- Wike

The Minister of the Federal Capital Territory, Nyesom Wike, says he is not distracted by the ongoing crisis in Rivers State but rather he is focused on his duties as a minister.

Wike stated this while inspecting projects to be inaugurated in the nation’s capital on Friday, May 17.

The former Governor of Rivers State and his successor, Governor Siminalayi Fubara, have been at loggerheads since October 2023, when some lawmakers in the state began impeachment proceedings against the governor.

While addressing journalists during the inspection tour in Abuja, Wike stated that if he had been distracted, some of the projects that he noted were ready to be inaugurated would not be possible.

“I am not distracted. If I’m distracted, you won’t see this performance here. I focus on my work. I am the Minister of the FCT, and the works are going on. So, why would I be distracted? I don’t even think about it all,” he said

News

NiMET predicts 3-day of haze, thunderstorm from Saturday

The Nigerian Meteorological Agency, NiMet, has predicted dust haze and thunderstorms from Saturday to Monday across the country.

NiMet’s weather outlook released on Friday in Abuja forecasts dust haze on Saturday over parts of Borno, Yobe, Jigawa and the northern part of Adamawa.

It envisaged prospects of isolated thunderstorms over parts of Bauchi, Kaduna and Taraba during the morning hours.

Later in the day, it said localised thunderstorms are anticipated over parts of Kaduna and Taraba while the remaining parts of the North are expected to be in sunny skies.

NiMet said cloudy skies with intervals of sunshine are expected over the North Central region during the morning hours with chances of isolated thunderstorms over parts of Niger, Nasarawa, Plateau, the Federal Capital Territory and Kwara States during the afternoon and evening periods.

According to the agency, cloudy skies with intervals of sunshine are anticipated over the southern States with chances of thunderstorms over parts of Imo, Enugu, Ebonyi, Abia, Anambra, Bayelsa, Akwa Ibom, Cross River and Rivers during the morning periods.

It anticipated thunderstorms over parts of Enugu, Edo, Ebonyi, Imo, Ekiti, Osun, Oyo, Ogun, Ondo, Anambra, Cross River, Akwa Ibom, Rivers, Lagos and Bayelsa states later in the day.

The agency added that sunny skies with patches of cloud are envisaged over the northern region on Sunday with chances of isolated thunderstorms over parts of Taraba State in the morning.

Later in the day, isolated thunderstorms are anticipated over parts of Bauchi, Gombe, Zamfara, Kaduna, Adamawa and Taraba States.

The North Central region should be cloudy with chances of isolated thunderstorms over parts of Kogi, the Federal Capital Territory and Niger states during the afternoon/evening hours.

The southern region should be mostly cloudy with prospects of isolated thunderstorms over parts of Ogun, Ondo, Oyo, Akwa Ibom and Cross River States during the morning hours.

NiMet predicted isolated thunderstorms over parts of Ogun, Ondo, Osun, Lagos, Akwa Ibom, Cross River, Rivers, Delta, Bayelsa, Rivers and Lagos states later in the day.

The agency envisaged a sunny atmosphere on Monday with patches of cloud over the northern region with prospects of isolated thunderstorms over parts of Jigawa, Bauchi and Gombe states during the morning
hours.

As the day progresses, it said isolated thunderstorms are envisaged over parts of Kaduna, Adamawa Borno, Zamfara and Taraba States.

The North Central region should be cloudy with prospects of isolated thunderstorms over parts of Kogi, Benue, the Federal Capital Territory, Plateau and Kwara during the afternoon and evening hours.

MiMet forecast a cloudy atmosphere with chances of isolated thunderstorms over parts of Imo, Abia, Enugu, Edo, Ekiti, Delta, Lagos, Bayelsa, Rivers, Cross River and Akwa Ibom during the afternoon and evening hours.

It urged the public to take adequate precautions as strong winds could precede the rains in areas where thunderstorms were likely to occur.

The agency advised Airline operators to get updated weather reports and forecasts from NiMet for effective planning in their operations.

News

Lagos Govt shuts church, six establishments for noise pollution

The Lagos State Environmental Protection Agency (LASEPA) has shut a church and six other establishments for noise pollution in Surulere and Orile lganmu areas of the State.

LASEPA, in a statement on its X handle said it conducted a comprehensive enforcement operation aimed at curbing noise pollution and other environmental violations in the Surulere and Orile lganmu areas of Lagos State.

It said despite repeated warnings and abatement notices issued in the past, numerous establishments, persisted in contravening LASEPA’s directives.

The body added that consequently, these non-compliant establishments had been temporarily shut down to ensure strict compliance with environmental regulations.

The tweet read: “Today, the Lagos State Environmental Protection Agency (LASEPA) conducted a comprehensive enforcement operation aimed at curbing noise pollution and other environmental violations in the Surulere and Orile lganmu areas of Lagos State.

“Despite repeated warnings and abatement notices issued in the past, numerous establishments, persisted in contravening LASEPA’s directives. Consequently, these non-compliant establishments have been temporarily shut down to ensure strict compliance with environmental regulations.

“Among the affected establishments include Red Pepper Bites Limited, Lacibo Restaurant & Lounge, Lakeem Suites, Krusty Butter Bakery & Pastries, Addie, Revelated Christian Ministry, and Don Nelson Resort & Suites.”