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Energy

FG explains why it revoked 4 Addax Petroleum Oil Mining Licenses

The government explained that the Oil Mining Licenses were revoked due to the non-development of the assets by the oil firm.

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Oil, DPR, FG announces commencement of bids for marginal oilfields despite court injunction

The Federal Government has stated why it revoked 4 Oil Mining Licenses (OML) belonging to Addax Petroleum Nigeria Limited.

In its clarification, the government explained that the licenses were revoked due to the non-development of the assets by the oil firm, hence their inability to comply with the work programme targets.

This disclosure was made by the Director/Chief Executive Officer of the Department of Petroleum Resources (DPR), Mr Sarki Auwalu, while speaking during an interactive session with journalists on some topical issues in the oil and gas industry in Lagos.

READ: UK court ruling affects acquisition of Shell’s oil block by Governor Wike

While listing the affected assets that include OML 123, 124, 126 and 137, Auwalu said that it was discovered that over 50% of the assets had remained underdeveloped, which he said was resulting in loss of revenue to the federal government.

According to him, “Addax refused to develop the assets and Addax were therefore not operating the assets.”

READ: Seplat commences $700 million gas plant construction

The DPR boss pointed out that going by the country’s Petroleum Act, “The first reason for a revocation is when you discover that the asset is not being developed according to the business guidelines because it is economic sabotage.”

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The DPR boss noted that the revocation and re-awarding of the OML had already been approved by President Muhammadu Buhari, who also doubles as Nigeria’s Minister for Petroleum Resources.

READ: In a decade of gas, why is the NGFCP stuck in the pipeline?

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What this means

The revocation of these Oil Mining Licenses is part of the Federal Government’s efforts to maximize the benefits from its oil and gas assets which are underutilized.

This is also coming at a time when the government is working to attract more investment in the nation’s downstream sector of the oil and gas industry.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business News

DPR says it has accurate data of country’s crude production volume

Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

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Nigerian oil cargo

The Department of Petroleum Resources (DPR) has said that the agency has an accurate record of the crude oil produced in the country.

This is in reaction to claims that the exact volume of crude oil produced in the country has remained unknown.

While making this disclosure in a statement in Lagos, the Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

What the Head, Public Affairs of DPR is saying

Osu said DPR has the responsibility of monitoring and accounting for crude oil production which is the basis for determining the government’s revenue through royalty payments by operators for sustainable development.

He said: “As a further step to boosting crude accounting process from production to export, DPR recently launched the National Production Monitoring System (NPMS).

NPMS is an online platform for direct and independent acquisition of production data from oil and gas facilities in Nigeria.

NPMS as an electronic data transmission tool at production and export terminals is designed to better predict the performance of oil and gas reservoirs and better production forecasting.”

Osu noted that the NPMS tool enables DPR to exercise surveillance, perform production monitoring and data analysis for utilisation and forecasting.

He said DPR as a business enabler and opportunity house would continue to develop robust and strategic initiatives to ensure timely and accurate payment of rents, royalties and other revenues due to the government.

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In case you missed it

  • It can be recalled that the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya-Orji, on Thursday said the exact volume of crude oil produced in Nigeria, especially at the deep offshore fields, is not known by anyone.
  • He said the exact volume of crude oil produced in Nigeria had remained unknown because of the absence of meters at wellheads and the lack of capacity to monitor deep offshore fields.

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Business News

Power Minister explains why power outages have risen

The Minister cited a breakdown of some National Integrated Power Plants supplying electricity to the national grid as being behind the recent power outages.

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The Minister of Power, Engr. Sale Mamman explained why power outages have increased in Nigeria citing a breakdown of some National Integrated Power Plants supplying electricity to the national grid.

The Minister disclosed this in a statement on Thursday morning, assuring Nigerians that the FG is working assiduously to restore the National grid to its previous historical levels and exceed that.

READ: Despite $1.6bn investments, Nigeria’s national grid still worrisome

What the Minister is saying

  • I sincerely regret the recent power outages across the Nation and the difficulties it has brought with it.
  • The problem is caused by the breakdown of some National Integrated Power Plants supplying electricity to the national grid. The plants are namely, Sapele, Afam, Olonrunsogo, Omotosho, Ibom, Egbin, Alaoji and Ihovbor. The Jebba Power Plant was shut down for annual maintenance.

The Minister added that seven power plants are currently experiencing gas constraints including Geregu, Sepele, Omotosho, Gbarain, Omuku, Paras and Alaoji while Shiroro hydroelectric power plant has water management issues.

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