Business

Oil Exploration to Commence in North East, Lagos Soon – Buhari

Published

10 years ago

March 21, 2016

By Shola AKINGBOYE

President Muhammadu Buhari has disclosed that his administration has plans to extend oil and gas exploration into new fields in the Lake Chad Basin in the North East and in the coastal states, like Lagos, where oil has been discovered in commercial quantity.
Represented by Vice President Yemi Osinbajo, at the flag-off of the 6th African Petroleum Congress and Exhibition (CAPE VI) in Abuja, Buhari disclosed that, as part of strategies to reposition the Nigerian oil and gas industry, his government had commenced the process of implementing carefully conceived initiatives which would see the country hitting a production target of 2.8 million barrels per day (bpd) of crude oil.
The measures, he explained, would come in the form of reduction in production costs and increased efficiency in oil exploration so as to achieve a 30 per cent increase in daily production.
While noting that the event comes just before the 33rd Ordinary Session of the Council of Ministers of African Petroleum Producers Association (APPA), which also held concurrently, the president noted that CAPE VI provides a unique opportunity for Africa to look beyond the exploitation of oil and chart a new course in the use of other natural resources to upscale national revenues.
He speaks: “Current volatility in the oil sector allows lessons to be learnt, synergies to be built and new approaches to be adopted to enable Africa expand its economy, infrastructure, manpower base, maintain domestic and regional peace and protect the environment.”
He added that the use of gas in Africa’s future energy mix has become imperative, and that if Africa must meet her future energy needs, the issue of the development of a robust gas infrastructure must be jointly addressed.
While inviting all APPA member countries to enter into natural gas business with Nigeria, which currently has the 7th largest gas deposit in the world, the president asserted that it was unacceptable statistic for Nigeria to be responsible for 23 billion cubic meters of the 40 billion cubic meters of gas flared annually in Africa, even as he declared his resolve to partner with the legislature to ensure the signing of the United Nations Agreement of ‘Zero Routine Flaring by 2030.’
He said, “In Nigeria, gas flaring amounts to about 23 billion cubic meters per annum in over 100 flare sites, constituting over 13 per cent of global gas flaring. Nigeria is a member of the World Bank Global Gas Flaring Reduction (GCFR) Partnership and with the support of our legislature; we will sign the United Nations Agreement of Zero Routine Flaring by 2030, although our national target is 2020.”
Buhari, however, stressed that in processing Africa’s hydrocarbon resource, environmental issues must be accorded huge priority.
He explained that “globally, over 150 billion cubic meters of associated gas is flared annually. Of this figure, Africa flares an estimated 40 billion cubic meters annually. I urge all APPA member countries to set realistic targets for gas flare-out in the region.”
Noting that the development of domestic refining capacity in oil and gas is critical to sustainable economic growth, Buhari challenged African ministers of energy to further explore cooperation mechanisms to expand regional refining capacities in an efficient and cost effective manner.
APPA was inaugurated as a regional economic association in January, 1987, and it has grown to 18 member countries, namely, Ghana, Cameroon, Algeria, Mauritania, Gabon, Cote D’Ivoire, Equatorial Guinea, Congo DR, Congo Brazzaville, Chad, Benin, Niger, Libya, Egypt, Sudan, Angola, South Africa and Nigeria, which currently chairs the association.
On PIB and unbundling of NNPC, the president stated that African oil producers are confronted with huge challenges that require urgent changes in the managerial strategies deployed within its economies, while reiterated his administration plans to strengthen the institutional framework on policy formulation through legislation on the Petroleum Industry Bill (PIB) as a prerequisite for the development of the sector and attraction of foreign investment.
He listed the strategies to include unbundling the Nigeria National Petroleum Corporation (NNPC) into lean, efficient and profitable components that will operate as a business venture and deploy existing manpower to areas of competences without attendant job losses, develop stronger policies on local content so as to reduce capital flight in the industry and the reduction of gas flaring through Joint Venture (JV) contracts that will expand infrastructure and deploy Liquefied Natural Gas.
On the significant of the CAPE VI event and the NNPC as host, the Nigerian minister of state for petroleum and OPEC President, Dr. Ibe Kachikwu, called on African governments to develop policies that will enable backward integration.
“Unity is fine, coming together is fine, what we need is opening up the space so that investment will happen. My expectation is that we further consolidate on what is happening with oil pricing at the moment, everybody has realized there is common need for consolidation in finding lasting solution to the current imbroglio in the sector
“It is a new dawn for Africa and we are excited about the development. We will continue to work collaboratively because there is a lot happening in the space but also a lot of challenges that we have to overcome.
“The major challenge is funding. Obviously skillsets are there already and technology is not an issue but funding remains key. Policies are also key because African governments have to develop policies that will enable backward integration into their own systems.” Kachukwu said.
Not few speakers at the event emphasized on the need for petroleum producers among the African countries to consider oil and gas sector as tertiary, but to think outside the box for their economic survival, saying future of the current trend in the global oil market is bleak.
This year’s event has the theme, “Positioning African Petroleum for Global Development and Value Addition.”

Business

Dangote Refinery Boosts Fuel Exports as Gulf Refineries Shut Down

Published

1 month ago

September 2, 2025

Our Reporter

By: Fabian Apechihin

The Dangote Petroleum Refinery has ramped up fuel exports to international markets amid widespread refinery shutdowns in the Middle East, industry sources confirmed.

A senior official at the $20bn Lagos-based plant told The PUNCH that the facility exported significant volumes of petrol (PMS), diesel (AGO), and aviation fuel (Jet A1) to foreign buyers in August, following earlier shipments in June and July.

The surge comes as Saudi Aramco and other regional producers face heavy maintenance schedules, tightening fuel supply. Aramco has already shut down two plants and plans further closures, including its 460,000 b/d Satorp refinery in Jubail for a 60-day turnaround in November–December. Kuwait and India are also scaling back capacity for maintenance and seasonal demand.

According to Argus Media, these shutdowns are pushing Gulf nations to import record volumes of gasoline, with Saudi Arabia and the UAE sharply increasing purchases from Europe and other markets in recent months.

While some reports pointed to operational constraints at Dangote’s 650,000 b/d facility, the company dismissed such claims, insisting production is on track to reach 700,000 b/d by December. Earlier this year, Aliko Dangote announced the refinery had sold two cargoes of jet fuel to Saudi Aramco and recently achieved exports of about 1 million tonnes of petrol between June and July.

“With Gulf refiners offline, Nigeria has now emerged as a net exporter of refined products,” Dangote said.

Analysts suggest the extended refinery outages in the Middle East will further strengthen demand for Dangote’s output, positioning the Nigerian plant as a key supplier in regional fuel markets.

Would you like me to tighten this further into a 5–6 paragraph wire-style news brief, or keep it as a detailed feature-style report with more context on Gulf refinery shutdowns?

Business

US Oil Exports to Nigeria, Others Fall to 3.3m bpd as Local Output Rises

Published

2 months ago

August 20, 2025

Our Reporter

By: Fabian Apechihin

The United States’ crude oil exports to Nigeria and other African countries fell for the fifth consecutive month in July 2025, averaging 3.3 million barrels per day (bpd), the lowest level since March 2022.

The Organisation of Petroleum Exporting Countries (OPEC) disclosed this in its August 2025 Monthly Oil Market Report (MOMR), attributing the decline to weaker flows to Europe and Africa, particularly Nigeria, but without giving further details.

Industry analysts link the slowdown to the ramp-up of local refining capacity, especially the 650,000 bpd Dangote Refinery, which has reduced Nigeria’s reliance on imported crude, including from the US. Vanguard checks also show that crude importation has slowed further in recent months due to improved domestic production.

According to OPEC data, Nigeria’s crude oil output—excluding condensates—rose by 11 per cent year-on-year to 1.559 million bpd in July 2025, up from 1.386 million bpd in the same period of 2024. This marks the country’s highest monthly production level so far this year.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) corroborated the figures, stating that overall output, including condensates, exceeded 1.8 million bpd in July.

Gbenga Komolafe, Chief Executive of the NUPRC, said the milestone was achieved through the agency’s “Project 1 MMBOPD Incremental” initiative, supported by a multi-stakeholder collaborative framework.

“We are glad to report that we crossed the 1.8 million bpd mark on peak production last month, with average production hovering at 1.78 million bpd,” Komolafe stated.

He added that the Commission is working to sustain production growth by optimising the Maximum Efficient Rate (MER) framework, improving produced water management, and aligning operational shutdowns and maintenance schedules to minimise disruptions.

“With these measures and continued collaboration, the presidential mandate on production increase is well within reach,” he said.

Do you want me to make this rewrite more concise for a newspaper front-page brief or keep it detailed like a full energy market report?

Business

NDYPC Hails Otuaro’s Reforms in Presidential Amnesty Programme

Published

2 months ago

August 10, 2025

Our Reporter

• Lauds transparency, fairness in beneficiary selection and grassroots empowerment

• Says reforms align with Tinubu’s Renewed Hope Agenda, restore trust in Niger Delta

The Niger Delta Youths for Positive Change (NDYPC) has commended the Administrator of the Presidential Amnesty Programme (PAP), Dr. Dennis Otuaro, for what it described as bold, people-focused reforms that are restoring trust and delivering tangible benefits to the Niger Delta.

In a statement signed and issued by Comrade Elliott Yibakeni, after the conclusion of leadership training sessions with ex-agitator leaders in Abuja, the group said the PAP, once in urgent need of renewal, is now undergoing a transformation that reflects transparency, fairness, and accountability.

“At a time when public trust in institutions was waning, Dr. Otuaro has emerged as a symbol of credibility and transformation,” the statement read. “His visionary leadership is restoring integrity, empowering communities, and driving a sustainable development agenda that resonates with the aspirations of the Niger Delta.”

According to NDYPC, under Otuaro’s leadership, beneficiary selection has become fair and merit-based, ending years of favoritism and political interference. The group added that access to education, skills training, and empowerment opportunities, both locally and abroad, is now guided by equity and open competition.

The group highlighted several internal reforms, including improved staff welfare, strengthened professional capacity, and strict adherence to best practices in public procurement. These, it said, have made the PAP more efficient, responsive, and transparent.

NDYPC also praised Otuaro’s inclusive governance style, noting his sustained engagement with traditional rulers, women leaders, civil society organizations, and local communities. This approach, the group said, has strengthened peace-building efforts and deepened trust between the PAP and the people it serves.

In line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the PAP has maintained consistent payment of stipends to ex-agitators and extended direct support to vulnerable populations. NDYPC also applauded new healthcare interventions for ex-agitators facing health challenges.

The statement further commended the programme’s investments in scholarships, vocational training, and economic empowerment initiatives aimed at preparing Niger Delta youths for leadership, innovation, and sustainable livelihoods.

“Every decision reflects a deep commitment to public trust, responsible stewardship, and long-term development,” NDYPC stated. “Under Dr. Otuaro’s watch, the Niger Delta is rising stronger, united, and filled with renewed hope.”