Oil and Gas
Sustainable Local Content Practice Reduced the Cost of Oil and Gas Projects – Wabote
Executive Secretary, Nigeria Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, said that adequate evidence had proven that sustainable Local Content practice reduced the cost of oil and gas projects in addition to creating job opportunities and economic prosperity. adsbygoogle || []).push({});
Wabote disclosed this in a statement signed by its Corporate Communications and issued to newsmen on Saturday 29th August, 2020 in Lagos.
He also disclosed that it saved $2 billion on Engineering Procurement and Construction (EPC) contract for Nigeria LNG Train 7 Project through the Nigerian Oil and Gas Industry Content Development (NOGICD) Act implementation.
He spoke at a workshop held for the judiciary via zoom which drew over 117 participants, including Justices of the Supreme Court, Appeal Court, National Industrial Court, Federal High Court and external solicitors.
He gave example with the LNG Train 7 EPC bid, where Saipem Contracting Nigeria and its consortium, won the contract with lower bid, leveraging on 50 years commitment to local content and investments in Nigeria.
”In the concluded LNG Train 7 project contract awarded, the difference in price between Saipem that had established itself in Nigeria and the second lowest bidder coming from outside the country was $2 billion.
“That’s a huge sum of money that this country would have lost if not for the drive for the development of local content.
“The other consortium had no footprint in the country and it proposed to put extra $2 billion on the back of the project to develop local capacity to execute the project.
“This is evidence of cost savings associated with the development of local content,” he said.
Wabote noted that developing local content and building capacity would always entail some costs at the beginning.
According to him, such costs ultimately gets reduced overtime and creates jobs and stability in the polity.
He also clarified that the focus of Nigerian Content implementation was not Nigerianisation, rather it encouraged domiciliation of capacities and promotion of foreign direct investments and home grown investments.
The executive secretary said the NOGICD Act would always protect investments in the country, adding that companies that built capacities were given first right of refusal in industry projects.
“The law is a protective instrument for businesses. There are cable manufacturers in Lagos.
“If there is any opportunity to supply cables to oil and gas companies in Nigeria, those companies have the right of first refusal,” he said.
Also, the Chief Justice of Nigeria, Justice Tanko Muhammad, described the implementation of local content policies across the globe as an apparatus through which citizens of oil rich countries derive value from crude oil resources.
Muhammad that was represented by Justice Olukayode Ariwoola thanked NCDMB for enhancing the judiciary capacity to dispense justice from an informed and contemporary position, particularly as it related to Local Content development and oil and gas operations.
Source: NAN
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Oil and Gas
Nigeria’s Oil Production Reaches 1.53m bpd in January, Meets OPEC Quota
By AbdulRahman Obaje
For the first time since it was set for the 2024 period, Nigeria has met the Organisation of Petroleum Exporting Countries (OPEC) production quota of 1.5 million bpd.
According to OPEC’s monthly oil market report, Nigeria’s crude oil production reached an average of 1.
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The report explained that the country’s production increased by 3.6% from December’s output of 1.48 million bpd. This development solidifies Nigeria’s position as Africa’s largest oil producer, surpassing Algeria, which produced 907,000 bpd in January.
Vangaurd reports that the quota, initially set in November 2023, was extended to 2026 due to Nigeria’s struggles to meet the target in 2024. However, the recent increase in production indicates a positive turnaround.
OPEC gathers oil production data from two sources: direct communication with Nigerian officials and secondary sources such as energy intelligence platforms. While direct figures confirm that Nigeria met its quota, secondary sources report a slight decline of 2% in January to 1.49 million bpd from 1.52 million bpd in December.
The report also highlights that Nigeria’s oil production is expected to rise further as the Dangote Refinery nears full capacity. Once fully operational, the refinery will process 650,000 barrels of crude daily, potentially stabilising petroleum supply and lowering fuel prices.
“…the oil sector remains central to the economy, and the Dangote Refinery reaching full production capacity should help stabilize the petroleum product supply and possibly lower petrol prices,” OPEC said.
On February 10, Edwin Devakumar, Vice-President of Dangote Industries Limited, stated that the refinery is expected to reach full operations within 30 days. Meanwhile, Minister of State for Petroleum Resources (Oil).
Heineken Lokpobiri reaffirmed the federal government’s plan to increase crude oil production to three million barrels per day by 2025.
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Oil and Gas
Dangote Crashes Ex-depot Petrol Price to N890 Per Litre
By Our Reporter
The Dangote Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890, effective from Saturday, February 1, 2025.
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The Group Chief Branding and Communications Officer, Dangote Petroleum Refinery, Mr Anthony Chiejina, said this in a statement on Saturday.
Chiejina said that the price adjustment was in response to favourable developments in the global energy sector and a significant decline in international crude oil prices.
The News Agency of Nigeria (NAN) quoted Chiejina as saying that this latest move followed a similar decision made on Jan. 19 when a modest price increase was implemented due to rising crude oil costs.
Chiejina said with recent global market trends indicating a decline, Dangote Refinery had once again adjusted its pricing structure, providing relief to Nigerians.
The statement also noted that the price reduction would significantly lower the cost of petrol across the country, generating a positive ripple effect throughout the broader economy.
“Dangote Petroleum Refinery firmly believes that this reduction from N950 to N890 will result in a meaningful decrease in the cost of petrol nationwide,” he said.
He said the reduction would drive down the prices of goods and services as well as the overall cost of living, with a positive ripple effect on various sectors of the economy.
The refinery called on marketers across the country to ensure that the benefits of the reduced price were passed on to Nigerians.
Dangote refinery reiterated its support for the economic revival spearheaded by President Bola Tinubu.
According to the refinery, the Tinubu administration is focused on making Nigeria self-sufficient in refined petroleum products and positioning the country as a leading oil export hub.
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Oil and Gas
NNPC’s 5 Mini LNG Plants: Governor Ododo Leads Kogi State into Era of Gas-Driven Prosperity
By Abah Benjamin Eneojoh
The Executive Governor of Kogi State, Alhaji Ahmed Usman Ododo, reinforced his administration’s commitment to collaborating with the Federal Government on its policies and programs during the groundbreaking ceremony of NNPC’s 5 Mini LNG plants in Ajaokuta on Thursday, January 30, 2025.
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This groundbreaking ceremony held in Ajaokuta, Kogi State, the Nigerian National Petroleum Company (NNPC) officially launched its ambitious project to establish 5 mini Liquefied Natural Gas (LNG) plants.
The project is expected to transform Nigeria’s energy landscape
Governor Ododo expressed his profound gratitude to President Bola Tinubu for the numerous benefits accruing to Kogi State through the Federal Government’s initiatives. He acknowledged the president’s commitment to transforming Nigeria and appreciated the various initiatives that have positively impacted Kogi State.
Gov Ododo in his words, ” the economic and social benefits of this project cannot be overstated. The establishment of these energy plants will create significant job opportunities, stimulate Local businesses and improve critical infrastructure in our communities” he said.
Governor Ododo’s administration has consistently demonstrated its commitment to collaborating with the Federal Government. For instance, the state government has been working closely with the Federal Ministry of Aviation and Aerospace Development to establish an international airport in Zariagi, which will serve as a hub for economic activities in the region.
Also speaking, the Minister of Steel Development, Hon Shuaibu Abubakar Audu during his presentation, commended His Excellency president Bola Ahmed Tinubu for establishing the 5 mini NNPC Liquefied Natural Gas (LNG) in Ajakuta, Kogi State.
He noted that if the project is completed, it would massively lead to the creation of jobs which will contribute to the GDP of Kogi State.
He called for collaboration and peaceful coexistence with the host communities for enhanced productivity.
The 5 mini Gas Plants include: PRIME LNG, INGML/GASNEXUS LNG, LNG ARETE, HIGHLAND LNG and BUA LNG
As Governor Ododo continues to champion the cause of collaboration and development in Kogi State, the people of the state can expect to see more initiatives and projects that will drive economic growth, improve living standards, and position the state as a key player in the national development agenda.
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