On October 10, the NNPC drilling crew working at Kolmani River-II in Gongola Basin encountered hydrocarbon outflow to the wellhead while testing. Preliminary evidence from the exploration area revealed that the hydrocarbon deposits consist of gas, condensate, and light, sweet crude of API gravity between 38 and 41 degrees.
While the bulk of Nigeria’s energy wealth is concentrated in the prolific Niger Delta, exploration for oil in the North East (Gongola and Chad basins) picked up recently, and this particular find is a major victory for NNPC in its quest to identify new hydrocarbon basins outside of the South-South region.
The exploration team is yet to provide estimates of hydrocarbon quantities, but should the find be significant, Nigeria’s Reserve: Production ratio just got a major boost. Besides, this event is expected to spur concerted exploration in and around the region for more hydrocarbon deposits. New, commercially viable finds can coincide with the complete overhaul of the four national refineries (including Kaduna) scheduled for completion around 2023.
Crude and Gas feedstock can come from that area to the Kaduna refinery, rather than transporting via pipelines from the South-South. This find is also significant because it opens up opportunities for new Oil and Gas infrastructure (including pipelines, terminals & gas processing facilities) to reduce Nigeria’s deficit and underdeveloped value chain within the sector.
We also expect that investors will tap the potential of modular refineries to process crude and facilitate development of the regional value chain. Meanwhile, new retail stations will open up a nascent export market in neighbouring Chad and Niger. Thermal power stations in and around the North-East/North-West will also benefit of gas (Associated/NonAssociated) from the discoveries.
However, the key investment risk that regulators including NNPC, DPR (and others enabled by the upcoming PIGB) have to mitigate, is the security conundrum in the region. There are indications that this discovery might open up conversations around resource control and a review of the derivation formula.
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Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply
Nigerian Electricity Regulatory Commission says international electricity customers remitted the sum of N2.04billion to Nigeria in three months.
Nigeria’s international electricity customers – Togo, Niger, and Benin, remitted the sum of N2.04billion in the first quarter of 2020, as their outstanding electricity bill to the Market Operator (MO) of the sector in Nigeria.
This was found in the Nigerian Electricity Regulatory Commission 2020 first quarter report, which was released recently.
According to the report, a total of N4.05billion ($13.22million) invoices were issued by the MO to international customers including Societe Nigerienne d’electricite or NIGELEC; Societe Beninoise d’Energie Electrique (SBEE); and Compagnie Energie Electrique du Togo (CEET).
The commission stated that during the quarter, NIGELEC made a payment of ₦1.61billion ($5.27million) as part of its outstanding bills for the energy received from NBET and services rendered by the MO.
It stated, “Similarly, SBEE paid ₦0.43billion ($1.39million) in respect of services received from MO.
“It was noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC) had partly contributed to liquidity challenges being experienced in the industry.
“The settlement ratio to the expected Minimum Remittance Thresholds, having adjusted for tariff shortfall, indicated that power distribution companies needed to improve on their performance.”
Special customers like Ajaokuta Steel Co. Ltd and others in its environs did not make any payment in respect of the N0.27billion and N0.05billion invoices issued to them by the Nigerian Bulk Electricity Trading Plc and the MO respectively, during the period under view.
Meanwhile, the power distributors failed to remit N119.88billion to the sector within the same period.
“Whereas Discos were expected to make a market remittance of 46.09% during 2020/Q1, only 32.53% settlement rate was achieved within the timeframe provided for market settlement in the Market Rules,” it added.
What it means: The Discos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT and they are expected to improve on their performances.
#EndSARS: Protests may return if panels do not address all issues in 2 weeks – Former Nigerian Minister
Akinyemi says the #EndSARS protesters would return to the streets if their demands are not addressed in two weeks.
COVID-19: Jason Njoku and wife test positive
iROKOtv CEO and wife have contracted the novel coronavirus.
Jason Chukwuma Njoku, the co-founder and CEO of iROKOtv and his wife has tested positive for COVID-19. However, Mrs. Mary Njoku is feeling well.
Jason, disclosed this via his Twitter handle stating that “My enemies are hard at work in 2020. Mrs. Njoku and I tested positive for Covid-19. I’m not feeling great, but Mary is well. Literally no idea how I caught it. But we shall see this pass too.”
The media mogul did not reveal if his children caught the virus too.
My enemies are hard at work in 2020. Mrs Njoku and I tested positive for Covid19 😩. I'm not feeling great but Mary is well. 😷🤢. Literally no idea how I caught it. 🤷🏾♂️. But we shall see this pass too🙏🏾. pic.twitter.com/tnsP1BCPBB
— JasonNjoku (@JasonNjoku) October 28, 2020