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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.

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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.

Opinion

Of The Dead, Say Nothing But Good-Bala Ibrahim

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By Bala Ibrahim.

The caption above is not mine, it’s borrowed from an ancient Latin proverb that says, “De mortuis nil nisi bonum.” The literal meaning of the proverb is that-it’s inappropriate, disrespectful or even rude, to speak ill of the dead because, they can’t defend themselves. In Islam, there is a hadith that goes thus: “Do not curse the dead, for they have reached the result of what they have done. There is also a Christian principle with similar ambition, like Proverbs 24:17-18 (don’t rejoice in enemy’s fall) and Ephesians 4:32 (be kind, forgiving). All of them are reflecting on the importance of saying nothing but good about the dead. The two religions are encouraging us to focus on God’s grace and the good qualities of the dead, by letting go of bitterness and leaving judgment to God, because, it’s unfair to speak ill of those who can’t defend themselves.

Yesterday, Monday, a book was unveiled at the Presidential Villa Abuja, titled “From Soldier to Statesman”. It is a biography of the late former president, Muhammadu Buhari, authored by Charles Omole. Reacting to the book, President Tinubu said late President Muhammadu Buhari was a leader defined by integrity, discipline and a lifelong commitment to public service, whose legacy should guide future leaders rather than be reduced to slogans. He said the book offers Nigerians the opportunity to learn from Mr Buhari and affirmed that the greatest honour to be bestowed on the late President is to sustain his legacy, to which his administration would do. These are comments that come in tandem with the ambition of saying nothing but good about the dead.

On his side also, Mr. Yusuf Magaji Bichi, the former Director General of the Department of State Services, DSS, who served under Buhari as well as briefly under President Tinubu, he eulogized Buhari very well, describing those accusing him of rigging elections as ignorants. He stated that the late former President Muhammadu Buhari lacked any tendency to rig elections. He was too correct to engage in such wrong doings. Those are comments that came in tandem with the ambition of saying nothing but good about the dead.

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Even in the journalism profession, we are tutored to distant ourselves from doing stories that carry the badge of bias. The imperative of balancing stories in journalism is the cornerstone of ethical practice. The aim is for journalists to be seen as fair, impartial, and accurate in the presentation of events. That way, an informed public debate would be fostered always. Without hearing the other side, if published, the story is classified, or even crucified, as unbalanced and unfair. That is the imperative of balancing in order to champion the truth and accuracy. If you submit a story that carries one side only, without the other side, you have failed in upholding the truth and accuracy, thereby denting the cradle of credibility and public trust. The credibility of the story becomes more questioned, when the other side belongs to the dead. That is a professional position in tandem with the ambition of saying nothing bad about the living, talk less of the dead.

But, in something “surprising” (and I put the word surprising in inverted comma because, it hits me as an unethical act), the widow of late President Muhammadu Buhari, Hajiya Aisha Buhari, commented in contrast to the missions of both Islam and Christianity, as well as the positions of many professions and ethical values. In her comments about the dead, on whom the book was written, Aisha is quoted all over the media, as saying somewhere in the book, that her late husband, former President Muhammadu Buhari, became distrustful of her at the tail end of their stay in the villa. According to her, Buhari bought into gossips and fearmongering, to the extent that he began locking up his room when going out, because he was told she was planning to kill him. “My husband believed them for a week or so. Buhari began locking his room, altered his daily habits, and most critically, meals were delayed or missed, the supplements were stopped. For a year, he did not have lunch. They mismanaged his meals.”

Whoever the “they” may be, these are not the kind of comments to expect from a widow, whose late husband is in the grave. They are comments that run contrary to the ambition of saying nothing but good about the dead, and in conflict with the principle of balancing, in the narration of a story. She gave her own side, which she wants the world to believe, knowing fully that we can not get the other side. That’s unethical. Everyone said something good about late Buhari, which requires no balancing. But the submission of Aisha is a balderdash, that is not balanced.

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Opinion

Dr Bello Matwallle: Why Dialogue Still Matters in the Fight Against Insecurity

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By Musa Iliyasu Kwankwaso

In the history of leadership, force may be loud, but wisdom delivers results. This is why security experts agree that while military action can suppress violence temporarily, dialogue is what permanently closes the door to conflict. It is a lesson the world has learned through blood, loss, and painful experience.

When Dr. Bello Matawalle, as Governor of Zamfara State, chose dialogue and reconciliation, it was not a sign of weakness. It was a different kind of courage one that placed the lives of ordinary citizens above political applause. A wise leader measures success not by bullets fired, but by lives saved.

Across conflict zones, history has consistently shown that force alone does not end insecurity. Guns may damage bodies, but they do not eliminate the roots of violence. This understanding forms the basis of what experts call the non-kinetic approach conflict resolution through dialogue, reconciliation, justice, and social reform.

When Matawalle assumed office, Zamfara was deeply troubled. Roads were closed, markets shut down, farmers and herders operated in fear, and citizens lived under constant threat. Faced with this reality, only two options existed: rely solely on military force or combine security operations with dialogue. Matawalle chose the path widely accepted across the world security reinforced by dialogue not out of sympathy for criminals, but to protect innocent lives.

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This approach was not unique to Zamfara. In Katsina State, Governor Aminu Bello Masari led peace engagements with armed groups. In Maiduguri granted amnesty to repentant offenders of Boko Haram, In Sokoto, dialogue was also pursued to reduce bloodshed. These precedents raise a simple question: if dialogue is acceptable elsewhere, why is Matawalle singled out?

At the federal level, the same logic applies. Through Operation Safe Corridor, the Federal Government received Boko Haram members who surrendered, offered rehabilitation and reintegration, and continued military action against those who refused to lay down arms. This balance
rehabilitation for those who repent and force against those who persist is the core of the non-kinetic approach.

Security experts globally affirm that military force contributes only 20 to 30 percent of sustainable solutions to insurgency. The remaining 70 to 80 percent lies in dialogue, justice, economic reform, and addressing poverty and unemployment. Even the United Nations states clearly: “You cannot kill your way out of an insurgency.”

During Matawalle’s tenure, several roads reopened, cattle markets revived, and daily life began to normalize. If insecurity later resurfaced, the question is not whether dialogue was wrong, but whether broader coordination failed.

Today, critics attempt to recast past security strategies as crimes. Yet history is not blind, and truth does not disappear. Matawalle’s actions were rooted in expert advice, national precedent, and global best practice.

The position of Sheikh Ahmad Gumi, who publicly affirmed that Matawalle’s approach was appropriate and that military force accounts for only about 25 percent of counterinsurgency success, further reinforces this reality. Such views cannot be purchased or manufactured; they reflect established security thinking.

In the end, dialogue is not a betrayal of justice it is often its foundation. And no amount of political noise can overturn decisions grounded in evidence, experience, and the priority of human life.

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Opinion

Matawalle: The Northern Anchor of Loyalty in Tinubu’s Administration

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By Adebayor Adetunji, PhD

In the broad and competitive terrain of Nigerian politics, loyalty is often spoken of, yet rarely sustained with consistency, courage and visible action. But within the administration of President Bola Ahmed Tinubu, one Northern appointee has demonstrated this quality not as a slogan, but as a lifestyle, as a political principle and as a national duty — Hon. (Dr.) Bello Muhammad Matawalle, Minister of State for Defence.

Since his appointment, Matawalle has stood out as one of the most loyal, outspoken and dependable pillars of support for the Tinubu administration in the North. He has never hesitated, not for a moment, to stand firmly behind the President. At every turn of controversy, in moments of public misunderstanding, and at times when political alliances waver, Matawalle has continued to speak boldly in defence of the government he serves. For him, loyalty is not an occasional gesture — it is a commitment evidenced through voice, alignment, and sacrifice.

Observers within and outside the ruling party recall numerous occasions where the former Zamfara State Governor took the front line in defending the government’s policies, actions and direction, even when others chose neutrality or silence. His interventions, always direct and clear, reflect not just loyalty to a leader, but faith in the future the President is building, a future anchored on economic reform, security revival, institutional strengthening and renewed national unity.

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But Matawalle’s value to the administration does not stop at loyalty. In performance, visibility and active delivery of duty, he stands among the most engaged ministers currently serving in the federal cabinet. His portfolio, centred on defence and security, one of the most sensitive sectors in the country, demands expertise, availability and unbroken presence. Matawalle has not only embraced this responsibility, he has carried it with remarkable energy.

From high-level security meetings within Nigeria to strategic engagements across foreign capitals, Matawalle has represented the nation with clarity and confidence. His participation in defence summits, international cooperation talks, and regional security collaborations has positioned Nigeria as a voice of influence in global security discourse once again. At home, his involvement in military policy evaluation, counter-terrorism discussions and national defence restructuring reflects a minister who understands the urgency of Nigeria’s security needs, and shows up to work daily to address them.

Away from partisan battles, Matawalle has proven to be a bridge — between North and South, civilian leadership and military institutions, Nigeria and the wider world. His presence in government offers a mix of loyalty, performance and deep grounding in national interest, the type of partnership every President needs in turbulent times.

This is why calls, campaigns and whisperings aimed at undermining or isolating him must be resisted. Nigeria cannot afford to discourage its best-performing public servants, nor tighten the atmosphere for those who stand firmly for unity and national progress. The nation must learn to applaud where there is performance, support where there is loyalty, and encourage where there is commitment.

Hon. Bello Matawalle deserves commendation, not suspicion. Support — not sabotage. Encouragement, not exclusion from political strategy or power alignment due to narrow interests.

History does not forget those who stood when it mattered. Matawalle stands today for President Tinubu, for security, for loyalty, for national service. And in that place, he has earned a space not only in the present political equation, but in the future judgment of posterity.

Nigeria needs more leaders like him. And Nigeria must say so openly.

Adebayor Adetunji, PhD
A communication strategist and public commentator
Write from Akure, Ondo State, Nigeria

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