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Kyari’s Legendary Leadership & Nigeria’s Next Billion Barrels

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Mele Kyari GMD NNPC

 

By Momodu Abutu

Mother Nature has a way of depositing its vast treasures wherever it pleases. In the wonderful world of hydrocarbons, these resources are either placed onshore (on land) or offshore (in water). Beneath the hidden depths of world’s seas ranging from a few hundreds to several thousand feet (called deepwater), therein lie vast fortunes of oil and natural gas resources. These resources have the capacity to boost world economic growth and play a vital role in the future of the rapidly changing global energy mix.

It is on record that Nigeria is fortunate to have its own fair share of the world’s deepwater endowments. data show that the country produces almost 10% of the global deepwater oil production in recent times. Moreso, the deepwater terrain has become extremely significant in Nigeria’s energy space representing almost half of the nation’s oil production and holding about 35% of the country’s oil reserves.

As an evidence of the significance of this hugely prolific terrain, six out of the eight international oil companies – which control about 75% of the world’s deepwater space – all have some presence in Nigeria’s deepwater. Suffice to say that deepwater has become a critical hydrocarbon landscape which the nation cannot afford to lose or manage with kid’s gloves.

As critical as Nigeria’s deepwater terrain is, it happened that this high-volume environment has been plagued with protracted dispute between the International Oil Companies (IOCs) Contractors and the host nation, Nigeria, represented by the NNPC. The disputes have, over the years, been rooted in entrenched differences in the interpretation of the provisions of the Production Sharing Contract (PSC) and its associated laws.

Since commencement of production in 2005, these disagreements have festered leading to arbitration. These differences in opinion have inflicted a heavy strain on investor trust and confidence, stunting growth and creating possibility of huge contingent liability on the nation. Essentially, these disputes have proven to be a major clog in the wheel of progress for all parties concerned.

As at 2016, contingent liability due to arbitration claims against Nigeria ran into billions with high uncertainty for sustainable future for the investors. In 2017 therefore, NNPC revised its engagement strategy and adopted a commercial solution as an alternative to the protracted legal dispute. The revised strategy was premised on the principle of trading the disputed bitter past for a brighter collaborative future for both parties.

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The strategy deployed to resolve the conflict in the Oil Mining Lease (OML) 118 Bonga PSC is expected to serve as benchmark for resolving the remaining PSC deepwater disputes. The Bonga PSC was thus the gateway PSC to the resolution of the industry-wide disputes that have over the years hamstrung the potential in the deepwater terrain.

But why is NNPC and the IOCs using the OML 118 dispute resolution template as a reference and a benchmark for resolving other disputes? The answer is not far-fetched. It is because of its significance in many ways. Along with the straddled fields, the OML 118 is home to five major players in the deepwater space not only in Nigeria but also globally. It is also the first major deepwater development in Nigeria’s Niger Delta, 75 kms from shore containing the Bonga fields at water depths of over 1,000m.
The field is arguably one of the most prolific deepwater asset in Nigeria, boasting of almost 2 billion barrels of crude oil and up to 1TCF of gas. It also has modest cost of operations and has delivered appreciable value for the investors with a sizeable take for the country. The field also supplies gas to the Nigerian Liquefied Natural Gas (NLNG), another strategic asset to the NNPC and its strategic partners.

So, after two years of negotiating the strategy and seeking alignment on some of the PSC terms, NNPC in February 2019 signed Heads of Terms (HoT) with the OML 118 PSC contractors (PSC) partners – Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) .

The truce heralded the progress which formed the basis and solidified the commercial framework for parties to settle, create the pathway for a sustainable brighter future and serve as a reference point for resolving longstanding dispute. The HoT was designed to translate into fully termed agreements including the Dispute Resolution Agreement and a new PSC Agreement for the OML 118 Contract Area.

In what could be considered as a major move in the resolution journey, GMD NNPC, Mallam Mele Kyari, went a notch higher than the HoT. Shortly after coming on board in July 2019, he rolled out his strategic goals for the petroleum upstream sector one of which was unlocking deep offshore potential to grow the nation’s reserves. Close observers of the NNPC and the Oil Industry know that with Mele Kyari, such things don’t just occur by happenstance because when he marshalled out his plans for the upstream upon assuming office, everyone knew the end of the OML 118 disagreement was almost in sight.

So today, here we are. Barely two months before Kyari clocks two years on the saddle, he has delivered on that promise – galvanizing and bringing together NNPC’s Contractor parties to agree to the much anticipated full term agreement which finally creates a certainty for the desired brighter future in the nation’s upstream sector. These five agreements signed by the parties are Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.

The signing of these agreements recently is therefore a testimony to Kyari’s visionary leadership, which, potentially, will lead to many more success stories. These include, but not limited to, paving way for the unlocking of over 1bn of oil in the bloc, up to 1 TCF of gas, unprecedented partner alignment, foreign direct Investment inflow of almost $10bn, contract lifecycle revenue of almost $50bn that will create energy security and shared benefits for both the investor and nation.

In essence, this new agreement will also help to re-balance fiscal terms and address global competition in prioritization of investments by key players. Without doubt, the signing of these agreements will create a new dawn of unprecedent progress in the oil and gas industry which will pave way for unlocking additional treasures of the deep for the benefit of all stakeholders. It is indeed a major milestone for Nigeria, the NNPC and its partners, their investors, and most importantly, the 200 million plus Nigerians.

In similar vein, what this major milestone means is that, through Kyari’s ingenious effort and visionary leadership, a dispute that had stood in the way of progress and development for many years have been resolved in the best interest of all partners, a win-win. Today, everyone in the OML 118 PSC mix is happy that while other deepwater assets in the world are facing decline, Nigeria’s Bonga field is witnessing massive potentials for further development that could unlock billions of dollars of investment.

Going forward, this “watershed moment”, as described by almost all the parties involved in the PSC, will ensure that the three projects related to Bonga that are in development stages but haven’t yet been given the green light — Bonga South West, North Tranche 1 and Main Life Extension and Upgrade – will become a reality, sooner rather than later.

It was Booker T. Washington, the legendary 19th Century African American intellectual who once said: “You measure the size of the accomplishment by the obstacles you have to overcome to reach your goals.” As such, if you consider the attendant positives that will very soon accompany the huge accomplishment of OML 118 dispute resolution, then it would be safe to say that Mallam Mele Kyari’s fantastic negotiation skills and leadership acumen will continue to be deeply impactful in Nigeria’s oil and gas industry for many years to come.

As the dust of the deepwater disputes continues to settle in Nigeria, it is instructive to know that the fortunes of Nigeria’s upstream sector – in particular the deepwater terrain – would never be the same again. Without doubt, industry watchers will be keen to see how the NNPC and its contractor will start reaping the rewards of this remarkable truce. While Nigerians patiently wait to witness the deepwater dollars streaming into the nation’s energy coffers, let us, at the same time, relax to see how the Mallam Kyari wisdom will rub off on the other outstanding PSC disputes.

Abutu, an Energy Analyst, writes from Benin.

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Opinion

Kano APC Crisis: An Open Letter to President Tinubu

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I hope this letter finds you well Your Excellency. As Nigeria stands at a critical crossroads, I write to you today as a concerned and dedicated member of the All Progressives Congress in Kano, compelled by the urgency of our nation’s challenges and aware of your unwavering determination to steer it unto the path of greatness.

But a united front is indispensable in achieving your grand plan for the nations success. Internal party crisis in my dear state, threatens the very foundation upon which your vision lies – unity – and this I write to you today, eager spark meaningful dialogue and constructive action on your part.

Mr. President, as the Commander-in-Chief of the Armed Forces and leader of our party, your urgent intervention is crucial to address the pressing issues at hand. If left unattended, it may escalate into a crisis that could have far-reaching and devastating consequences for the party, making it challenging to manage. Your timely action would help mitigate this risk and ensure the party’s stability.

In Kano, it is generally acknowledged that Dr. Abdullahi Umar Ganduje, former governor and current National Chairman, leads our party. Members have consistently shown loyalty to his leadership since day one.

You will also recall that Dr. Ganduje actively supported your presidential bid, demonstrating a pure, genuine and unmixed commitment to your cause during both the presidential primaries and general elections. However, some individuals now seek to drive a wedge between you and the Chairman, feeling threatened by his influential position as the National Chairman of our great party.

Mr President sir, It is imperative to hold the Deputy President of the Senate Barau Jibrin accountable for plunging the All Progressives Congress into an avoidable crisis since taking office. As a seasoned politician and senator representing Kano North since 2015, his actions have significant implications. Barau Jibrin’s leadership has sparked division within the party, necessitating urgent attention to prevent further escalation.

Due to the recent removal of Abdullahi Muhammad Gwarzo as Minister, the All Progressives Congress is facing an unprecedented crisis in Kano North, a stronghold of the party since 2015. This division, fueled by Deputy President of the Senate Barau Jibrin’s actions, threatens the party’s stability. As a leader, Mr. President, it’s crucial to address this issue sustainably.

Barau Jibrin’s political strategy and human relations have been questionable, yet his influence led to the sacking of a loyal minister, Gwarzo. This decision was disheartening, considering Gwarzo’s impressive track record as a generous, humble, and grassroots politician. The people of Kano are upset, and rightfully so.

It’s essential to recognize Barau Jibrin’s intentions. He’s only loyal to you, Mr. President, because of your current position. History shows he’ll turn against you once you’re no longer in office. His self-serving nature is evident in his interactions with grassroots politicians.

To pacify the people and resolve the ongoing crisis, reappointing Gwarzo is imperative. This move will demonstrate your commitment to loyalty and fairness. The APC’s future in Kano North depends on it.

Mr. President, to ensure the party is back on track, it is crucial to prioritize collaboration with loyalists and consider the input of key stakeholders in Kano. This means moving away from decision-making that caters to a single individual who claims control over Kano North. Instead, foster an inclusive approach that values diverse perspectives and promotes unity within the party.

By doing so, you’ll not only strengthen the party’s foundation but also demonstrate your commitment to fairness and representation. This approach will help prevent unnecessary conflicts and ensure that the party’s interests are truly served. It’s essential to recognize that the party’s success relies on collective efforts, not individual interests.

For your information Mr President, Barau’s electoral successes can be attributed to the popularity of the House of Representatives candidates from his Senatorial District. These individuals are widely admired and respected by their constituents. However, rather than leveraging his own strengths, Barau has consistently relied on the goodwill and reputation of these candidates to secure his own victories, essentially seeking shelter under their umbrella.

It’s not yet too late for the President to do the needful for the interest of Kano State and the party at large. With the weight of history and the hopes of a generation on your shoulders, I urge you to confront the harsh realities that threaten our collective progress.

Nabahani Yusuf Gogori writes from Gogori town in Bagwai

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Opinion

Unmasking Excellence : Idris Abdulkadir Zare’s (Jagora) Leadership Style

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By Abba Anwar

Without any doubt, Idris Abdulkadir Zare’s name rings bell in Kano politics, particularly, in his political zone, Kano South. It rings bell not because he is terrifying, but simply because, his name, alone, signifies examplary leadership, selfless service to humanity, genuine loyalty and un-arguable commitment for the survival of the party, All Progressives Congress (APC), in this context.

While he is not a seeker of any elective public office, or party position, as I study him and his political antecedents, he believes, supporting party leadership and followership is one of the surest ways of strengthening the party, against all odds. I kindly call my readers to go to Rogo and substantiate my submission.

Here is a lone Jagora (leader) who spends from his hard earned resources to support the party without thinking of getting anything from anybody, no matter how highly placed, that person could be. His magnanimous touches go beyond party lines. Go to Rogo and seek for more clarification.

If Kano APC is really serious about mending fences, gaining more grassroot support, bouncing back in pre, during and post 2027, people like Idi Zare must be on board. I never met this gentleman. In fact I don’t even know his face, anyway. I come from Dala local government, Kano Central. But I came to know about him for quite sometime now.

He, unlike many of our politicians, made his fortunes outside government. But he spends stupendously in people’s welfare, needs and loyalty. One good thing about him, is, while engaging in such activities, he is not vying for any position. Meaning, this gentleman is acting the script of his good heart. He is indeed a morale booster from whatever standpoint you look at him.

This is somebody whose loyalty is not dangling. He supports what he believes in, with all his heart. By whatever standard, Zare is a Phoenix. And trains people to become that.

I caption this piece, as Unmasking Excellence… because, here is a strong party man, whose support and faith in the party and beyond, are more or less, left near lowest ebb. If we can have enough Zare’s replica from all our political zones, in Kano, regret and backwardness could be things of the past. No doubt about this!

I can also understand that, even among our APC strong men in the state, only those of them who are more loyal and sensitive to the welfare of the party members, are the ones that understand his (Zare) worth and work with him hand in hand, for the survival of the party, in the state and the nation in general.

Zare’s clear understanding of political cohesion as a recipe for good governance gives him more courage to see to the welfare and unassuming political engagement with the view to bring all politicians to state growth and development.

The issue goes beyond dishing out resources to people for massaging the economic hardship, he helps in perfecting people’s transportation network, via the provision of vehicles for their personal use. He recently distributed cars and motorbikes for his people. Not because he got a single Kobo from any government institution. He uses his hard earned money to do what he sincerely believes in.

He is also being disturbed by the economic hardship plaguing the society. Which makes hunger more visible than before. That makes him to be up and doing in cushioning the effect of this ugly experience. He distributes foodstuff on frequent basis. To help body and soul live together.

Zare Jagora is not any super human being, only that he believes in making people happy. While being interested in developing his people, without recourse to any ambition or expectations, he believes when man is developed, all other systems can work in harmony to each other.

If and only if, APC as a strong party in Kano, and the nation in general, is really interested in victory, strength and service to humanity, Zare’s legacy and immense contributions to humanity should not be downgraded to the bottom of the ladder.

Anwar was former Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje and can be reached at fatimanbaba1@gmail.com

November 4th, 2024

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Opinion

Northern Nigeria’s Silence Amidst Rising Injustices: A Call for a Return to Principled Leadership

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The worsening security situation in Northern Nigeria is no longer merely a concern—it has become a full-blown crisis threatening the lives and liberties of millions. Kidnapping, once considered the work of hardened criminals, is now perceived as a lucrative trade. Even more disturbing is the encroachment of this practice into governance, with reports of state authorities detaining citizens under questionable circumstances, particularly young protesters. These developments raise difficult questions about the strength and integrity of leadership in Northern Nigeria and leave us wondering whether the region still has leaders who genuinely represent its people.

The recent detention of minors, allegedly in unhealthy conditions, illustrates this chilling trend. These young individuals were reportedly taken by the authorities while engaging in a protest to call for better governance. Their alleged crime? Waving a foreign flag, in this case, the Russian flag, which authorities deemed treasonous. They did so, perhaps naively, without recognizing the potential implications, yet the state treated them with severity, reportedly requiring a staggering N10 million per person as bail. In contrast, individuals in Southern Nigeria have raised foreign flags and voiced secessionist sentiments without facing equivalent punishments.

This discrepancy raises difficult questions about the consistency of the law and whether it is applied equally across the country. Why are Northern youth held to such strict standards while similar actions in other regions seem to be treated with leniency? Historically, the North was known for its stalwart leaders—individuals who stood up for the people, challenged the government when necessary, and never allowed the region to be compromised. Leaders like Sir Ahmadu Bello, the Sardauna of Sokoto, Alhaji Tafawa Balewa, and Malam Aminu Kano left a legacy of dignity, integrity, and advocacy for Northern interests. These figures prioritized the wellbeing of their people, standing up against exploitation and injusticeTheir voices resonated across Nigeria, leaving an indelible mark on the nation’s political landscape. Today, however, the lack of a unified voice from Northern leaders is disheartening. In the past, these leaders would not have hesitated to demand justice for the detained minors or to negotiate on behalf of their people. Now, the silence of Northern elites on issues like insecurity, youth incarceration, and poor governance has left a void. Instead of elders standing firmly to shield and protect the region’s youth, we are witnessing a tragic indifference that has left many young people feeling abandoned. This crisis of leadership in Northern Nigeria has had severe consequences. Kidnapping and banditry are ravaging communities, youth are disillusioned, and the voices of the people are ignored or, worse, suppressed.

The North is bleeding, and without intervention, the situation will continue to deteriorate. To the elders of the North, if indeed they still exist in spirit and purpose, it is time to rise. The North needs a collective, principled voice to stand against injustice and ensure that the region’s youth are protected and that their futures are not sacrificed to lawlessness or state oppression. The need for Northern Nigeria to reclaim its dignified, protective, and principled leadership has never been more urgent. It is time to break the silence.

Abubakar Ibrahim can be reach via:

habuibrahim76@gmail.com
+2348098454956

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