Opinion

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

Published

4 years ago

June 4, 2021

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.

Related Topics:Bonga PSC Kyari NNPC OML OML 118

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Opinion

Let President Tinubu Rename University of Lagos After Gowon, Not Abuja

Published

5 days ago

December 18, 2024

Nigerian Tracker

Adnan Mukhtar Tudun Wada

I was not happy when Northwest University Kano was renamed to Yusuf Maitama Sule University, as student leaders of that University then, we followed the interest of the students who were also not happy with the renaming at that time for one reason; the renaming was politically motivated, to hurt the founder of the institution Senator Rabiu Kwankwaso. I was busy mobilising students to protest, the next day I was invited to the DSS for questions where I spent hours and all the people we were mobilising the protest together ran and dissociated themselves from it. I have no option but to plead with the DSS to release me, assuring them that not a single student would protest the government’s action.

The renaming has affected many students who are seeking admission abroad; it’s Northwest University on my transcript and Yusuf Maitama Sule University on my certificate. This is kinda confusing and not good at all.

Politicians should immortalise individuals in their new projects not existing ones. The renaming of the University of Abuja to Yakubu Gowon University is not good for the university’s alumni.

The President should have found a new project or built a new University by naming it after the former Head of State.

I don’t support the idea of playing politics by renaming our universities and this happens mostly in Nigeria.

Imagine waking up renaming the University of Maiduguri to Mohammed Goni University, Yobe State University to Ibrahim Geidam University, the University of Ibadan to Abiola Ajimobi University, the University of Lagos to Lateef Jakande University.

It will be bad for the alumni of the aforementioned universities to come across this.

Why is this only happening in Africa? Look at Makerere University in Uganda, it was established in 1920 but despite Yoweri Mosevenni’s long reign; he didn’t for once attempt to change it to even his name for selfish reasons.

He didn’t think of renaming the Entebbe International Airport after him but in Nigeria, we have this culture of renaming everything after individuals.

If you want to be immortalised, leave a lasting legacy as Gowon did in establishing NYSC. That enough is Okay and better than naming an institution after him.

President Tinubu should have renamed the University of Lagos after Gowon, not Abuja. I’m sure his people will reject this not for any reason but because of the large number of people that will be affected by it.

The University of Abuja Alumni were all crying over this painful decision.

Opinion

Ibrahim Abdullahi Waiya: Champion of Civil Society and Good Governance in Northern Nigeria

Published

6 days ago

December 16, 2024

Nigerian Tracker

Ibrahim Abdullahi Waiya, is an influential Civil Society figure in Kano State and Northern Nigeria. He is currently serving as the Executive Director, Citizens for Development and Education (CDE), he has dedicated many years of his civil society activism as advocate for the promotion of democracy, good governance, anti-corruption, peace building and women empowerment

Amb. Waiya, holds number of academic qualifications, including a Higher National Diploma in Public Administration from Kano State Polytechnic, a Bachelor of Laws (LLB) from Usmanu Danfodio University, Sokoto, Master’s in Public International Law at Maryam Abacha, American University, Maradi, and he is currently pursuing a doctor of philosophy at Skyline University, Kano in International Relations

In the course of his career, he held several positions and managed a number of projects. He served as the Director, Alhilal Foundation, from 2003 to 2007, an organization which focused on women empowerment, through basic literacy and skills acquisition. He later coordinated the North West Zonal Office of the Mallam Aminu Kano International Foundation. Amb. Ibrahim Waiya, led and coordinated a number of Local Government Councils Elections Observation missions across 19 Northern states.

In 2011, Waiya managed the Campaign against Drug Abuse under the auspices of Northern Youth Assembly, a youth driven platform with leadership structures in the Nineteen Northern States. He served as Secretary, for both, Kano State Stakeholders Committee on Anti-Drug Abuse Campaign and Kano State Stakeholders Committee on Anti-Child Abuse, a project which was coordinated by the office of the Special Adviser, Child Welfare and National Drug Law Enforcement Agency. His involvement in election observation coordination missions and various public engagements, highlights his commitment to civic engagement towards community development, democracy and good governance

Waiya’s extensive experience includes free consultancy support services to numerous Government Ministries and Agencies such as: Kano State Ministry for Women Affairs and Social Development, Kano State Ministry for Community and Rural Development, office of the Special Adviser to the Governor of Kano State on Child Welfare, Ministry for Special duties, office of the special adviser, joint security services. He has facilitated numerous training workshops and seminars, impacting his knowledge, skills, experience on the community, particularly for community based organizations

In recognition of his contributions, he was appointed to several key positions, such as the President, of the Kano Civil Society Forum, Chairman of the Conference of Northern States Civil Society Networks, Convener, Nigeria for Peace Project, Managing partner, United Nigeria Project, Head of Secretariat, Kano Peace Committee, Secretary General, National Action for Women Agenda,(NAWA), chairman, Board of Trustees, Northern Youth Assembly, (Majalisar Matasan Arewa) Fellow, Institute of Security and Strategic Studies, Fellow, Institute of International Peace and Secure Society, Fellow, Institute of Business Diplomacy and Financial Management, member, Commission of Inquiry on Missing persons, member, Implementation Committee, on the Recommendations of the Report of the Commission of inquiry on missing persons, member, Commission of Inquiry to investigate, various political violence and cases of missing persons, that occurred in the State from 2015 – 2023, member, Commission of inquiry to investigate protest, arson and destruction of public and private properties that occurred from 1st – 10th August, 2024 Amb. Waiya, served as Consultant on various government projects, such as: Kano State Security Trust Fund, Safe Corridor, Campaign against Drug Abuse, across the 44 Local Government Council Areas. Amb. Waiya”s active participation in peace building, policy advocacy and legislative reform has continued to impact positive change in Kano State, the North and Nigeria at large.

Opinion

“I Transition to PR and Digital Marketing to Transform Brands Globally” – Ibrahim Ayyuba Isah

Published

1 week ago

December 15, 2024

Nigerian Tracker

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As 2024 comes to a close, Ibrahim Ayyuba Isah reflects on his journey from journalism to public relations (PR) and digital marketing. With over a decade of experience in media and communications, Ibrahim’s transition was fueled by a desire to empower businesses—starting with Northern Nigeria but extending globally—to build impactful narratives and achieve sustainable growth.

“Every brand, regardless of location, deserves access to the tools and expertise needed to thrive in today’s fast-paced world,” Ibrahim says. “My goal has always been to bridge the gap in strategic communication, ensuring that no business is left behind.”

From Journalism to Strategic Communication

Ibrahim’s illustrious journalism career spans over a decade, during which he served as a Senior Reporter at TVC News, covering critical developments, including the Kano State Government House for three successive administrations. His work involved breaking major news stories, producing multimedia content, and engaging audiences through digital platforms.

“I’ve always been passionate about communication, but I realized I wanted to do more than report stories—I wanted to help brands craft their own,” Ibrahim shares. “That’s what led me to pivot into PR and digital marketing.”

To equip himself for this new journey, Ibrahim pursued advanced studies, earning a Master’s in Communication Studies and a Master’s in Public Relations from Bayero University, Kano. He further honed his expertise with a Professional Certificate in Digital Marketing from the London School of Business Administration and a Master Diploma in Digital Marketing from the Digital Marketing Skills Institute. These credentials underscore his commitment to mastering the art of strategic communication.

Empowering Brands Through Ayrah Media Concept

As the CEO of Ayrah Media Concept (AMC), Ibrahim leads a PR and creative agency that provides businesses with tailored solutions, including PR consulting, social media management, corporate campaigns, and digital marketing.

“My vision is to empower brands to connect with their audiences, tell compelling stories, and achieve global relevance,” Ibrahim explains. “Through AMC, we’re showing businesses—whether in Northern Nigeria or beyond—that they can reach new heights with the right strategies.”

In 2024, AMC worked on several impactful campaigns, including Ibrahim’s role as a Lead Consultant for the WOFAN-ICON2 project in partnership with Mastercard Foundation, where he developed and executed PR and communication strategies to amplify the project’s impact.

Changing Perceptions and Building Bridges

Transitioning into PR and digital marketing came with challenges, including shifting perceptions about its value.

“Many businesses see PR and digital marketing as optional rather than essential,” Ibrahim says. “But the results are transformative. Strategic communication is not just about visibility; it’s about building trust, credibility, and lasting connections with your audience.”

This philosophy drives Ibrahim’s approach, ensuring that businesses of all sizes—whether local startups or established corporations—can access high-quality PR and marketing services.

Looking Ahead

Ibrahim’s vision for the future extends far beyond regional boundaries. While his roots and passion lie in Northern Nigeria, his focus is on creating strategies that resonate globally.

“Brands in Kano, Lagos, Abuja, or even New York share a common goal: to connect with people and make an impact,” he says. “My mission is to ensure that every business, regardless of size or location, has the tools and strategies to achieve that.”

In 2025, Ibrahim plans to document his professional journey in a book that will explore his experiences as a journalist and PR expert, offering insights into the evolving landscape of communication and its role in business success.

A Message of Gratitude

As he reflects on the year, Ibrahim expresses his gratitude to those who have supported his journey. “I’m incredibly thankful to my mentors, collaborators, and clients who have believed in my vision. Together, we’ve shown that impactful communication has the power to transform lives and businesses.”

With a clear vision and an unwavering commitment to excellence, Ibrahim Ayyuba Isah is poised to lead the way in redefining PR and digital marketing, not just in Nigeria but across the globe.