ICYMI: Weekly roundup of major news from Nigeria’s Energy Sector


This is a roundup of the major news in the Nigerian Energy Sector for the week ended June 30th 2017.

 1. Only 2 NNPC subsidiaries were profitable in 2016 – Report

In a review of the NNPC 2016 Report, BudgIT, a civic organisation, identified the NNPC Retail and the Nigerian Gas Company, NGC, as the only two subsidiaries of the 11 subsidiaries of the Nigerian National Petroleum Corporation, NNPC, that consistently made profits during the year. Premium Times Ng

2. BPP urges court to void N1.786b contract for PHCN’s liquidation

The Bureau of Public Procurement (BPP) has urged a Federal High Court in Abuja to void a N1.786,287,040 contract awarded for the wind-up/liquidation of the Power Holding Company of Nigeria (PHCN), claiming it was illegal. The Nation

3. Court sets aside $2.5b judgment got by Shell, Esso against NNPC

The Court of Appeal in Abuja has set aside a portion of an arbitral award got by Shell Nigeria Exploration and Production Limited (Shell) and Esso Exploration and production Limited (Esso) against the Nigerian National Petroleum Corporation (NNPC). By the portion of the award, made by an arbitration tribunal in Lagos on October 24, 2011, NNPC was ordered among others, to pay Shell and Esso over $2.5billion for abusing a Production Sharing Contract (PSC) between them in relation to the operation of oil filed identified as Erha Deepwater Project. The Nation

4. Foreign firms to develop solar projects across Nigeria

A Germany-based global solar developer, Soventix, and Gentec EPC have formed a joint venture called Soventix Hybrid Limited to develop solar projects across Nigeria. According to a statement from the firms, with the agreement and respective capabilities, both companies have secured a strong market position in the Nigerian solar market. Punch Ng

5. A’IBOM oil communities to Mobil: Relocate to A’Ibom or leave our lands

Four core oil host communities namely; Ibeno, Eket, Esit Eket and Onna Local Government Areas, in Akwa Ibom State, have asked the Mobil Producing Nigeria Unlimited, MPNU, to vacate their lands if it was averse to relocating its administrative headquarters to the state, its operational base, as directed by the Federal Government. Vanguard Ng

6. IBEDC begins asset, customer enumeration in Ibadan

Ibadan Electricity Distribution Company, IBEDC, has commenced its Asset and Customer Enumeration, ACE, in its distribution network. +The ACE is the proper tracking and data collation of all customers under the network, using a Geographic Information System, GIS, technology to capture asset details and customer information. Vanguard Ng

7. Century Energy, Excel E&P, Millenium Oil & Gas set to produce first oil

Three indigenous oil producing companies, Century Energy Exploration & Production (E&P), Excel E&P and Millenium Oil and Gas, are set to produce their first oil in Nigeria. According to Africa Oil and Gas Report, the companies have already completed fields development as well as put in place facilities for production. Vanguard Ng

8. Lekoil ships 250,000 barrels oil to Shell from Nigerian field

Lekoil Limited, Monday, confirmed the lifting of a shipment of 250,000 barrels of crude oil to Shell Western Supply and Trading Limited. Sweet Crude Reports

9. NNPC’s staff cost takes lion’s share of $33.8 bn 2016 revenue –Report

The Nigerian National Petroleum Corporation (NNPC) overhead costs took the lion share of $33.8billion it generated in 2016, latest findings from BudgIT, a data and technology civic group has revealed. Sun News

10. Petralon appoints strategic advisor

Petralon Energy Limited has appointed Mr. Constantine ‘Labi Ogunbiyi as Strategic Adviser to its board. As Strategic Advisor, he works closely with Mr Mutiu Sunmonu, Chairman of the Board and non-Executive Directors, Ms Edith Unuigbe and Mr Aigboje Aig-Imoukhuede. The Nation

11. NNPC to continue managing refineries

The Federal Government, yesterday, stated that the management of the country’s refineries would remain within the purview of the Nigerian National Petroleum Corporation, NNPC, irrespective of whatever model the government adopts to revamp and upgrade them. Vanguard Ng

12. Nigeria’s state oil company agrees $700 mln joint venture -NNPC

Nigeria’s state oil company said on Thursday it had agreed a joint venture to cover more than $700 million cost of developing new oil fields in its southern Niger Delta energy hub. AF.Reuters

13. Disengagement: Hope rises for Total oil workers’

The National Industrial Court, Abuja, has fixed Sept.26, to hear the case of Felix Adariku and 256 other disengaged workers’ of the Total Exploration and Production Company. NAN.Ng

14. FG loses N131.8bn as oil production drops again

An analysis of various reports from the Nigerian National Petroleum Corporation has shown that the total volume of crude oil produced in Nigeria has been reducing since January this year, leading to a cumulative loss of about N131.8bn. Punch Ng

15. Our refinery‘ll transform economy, says Dangote

Dangote Group’s investment in oil and gas will transform the economy from a single commodity market to a sustainable diversified economy, Chief Executive Aliko Dangote has said. The Nation

16. Association raises concern over electricity tariff for hotels

The Nigeria Hotel Association (NHA) on Wednesday raised concerns over inflated electricity tariff issued to hoteliers across the country by various DISCOS’. Mr Lanre Awoseyin, the President of the Association appealed to the Federal Government for intervention. NAN.Ng

17. No concession approval for refineries, says Kachikwu

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Monday stated that the country’s three refineries were embroiled in confusion, but added that there was no approval to sell the plants or give them out to private investors as concessions. Punch Ng

18. C’River to build 26MW power plant in Tinapa

The Cross River State government has expressed its readiness to commence the construction of another power plant in addition to an ongoing 21 megawatts plant in the state. Funded by the Export-Import Bank of India and the Cross River State Government, the 26MW gas-powered plant in Tinapa is expected to be completed in 24 months. Punch Ng

19. FG okays gas masterplan to boost industrial growth

Fresh move to unveil a new gas master plan to drive Nigeria’s industrial growth is underway, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said, also stating that the Federal Executive Council (FEC) approved the masterplan following his presentation. Guardian

20. ‘Four power plants to add 524MW this year’

At least 524 megawatts of electricity will be added to the quantum being generated in the country before the end of this year, the Federal Government has said. It stated that four power plants would produce the 524MW, adding that more electricity would be generated by two other plants in the first and second quarters of 2018. Punch Ng

21. Nigeria needs $10b yearly to achieve Gas Master Plan’s goals

the President of the Nigerian Gas Association (NGA) Dada Thomas, has said that, in order to achieve the objectives set out in the Nigerian Gas Master Plan, at least $10 billion yearly investment is required over two to four years period. The Nation

22. BEDC to publish power schedule

In view of prevailing electricity generation limitations nationwide, the Benin Electricity Distribution (BEDC) Plc will soon begin the publication of power availability schedule for customers in its franchise areas of Edo and Delta states. The Nation

23. Electricity: FG seeks $5bn loan from World Bank

The Federal Government is seeking a loan of $5bn from the World Bank Group to boost power availability in Nigeria, investigation has shown. The World Bank had in April stated that a powerful delegation from Nigeria was in Washington DC to discuss assistance for the nation’s power sector, but did not disclose the details of the talks. Punch Ng

24. France to invest over €1b in Nigeria oil industry

The French Government has said that it has set aside about one billion euros to be invested in the Nigeria Oil and Gas industry, stating that Nigeria remains her first economic trading partner in Africa. The Nation

25. Oando gets drone licence from NCAA

The spokesman of the authority, Sam Adurogboye, revealed that the Nigerian Civil Aviation Authority (NCAA) has issued the first Remotely Piloted Aircraft/Drones (RPAS) Operators Certificate (ROC) to Oando Plc. The Nation

26. Nigeria’s state oil company agrees $700 mln joint venture -NNPC

Nigeria’s state oil company said on Thursday it had agreed a joint venture to cover the more than $700 million cost of developing new oil fields in its southern Niger Delta energy hub. AF. Reuters

27. We’ve provided meters to all MD customers within our network — EKEDC

The management of Eko Electricity Distribution Company Plc (EKEDC) said on Friday that it had provided meters to the 6,834 Maximum Demand (MD) customers within its network, as directed by the Nigerian Electricity Regulatory Commission (NERC). Vanguard Ng

28. Stanel Gas plant for inauguration July 7

In a statement made on Friday, the ‘one stop’ mega center would be officially commissioned by the executive governor of Anambra State, Willie Obiano on July 7, 2017. Over 700 youths are set to be employed as the Stanel Group ultra-modern mega gas plant in Awka, Anambra state is set for inauguration, CEO of Stanel Oil, Stanley Uzochukwu has announced. NAN.Ng

29. Oil prices rise, highest in two weeks

Oil prices, which dropped below Nigeria’s 2017 budget benchmark price of $44.50 per barrel, hovering around $43/barrel in the past two weeks, yesterday rose significantly across all grades and markets. This is even as the United States production declines, easing concerns about deepening oversupply. Vanguard

Do you want this as a newsletter in your email box? Kindly subscribe to our Newsletter and remember to select your preferences. Just select Energy Sector and then subscribe. If you have subscribed before, then just update your preferences.

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

What's your say?