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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.

Opinion

Forte GCC Sets New Standards in Engineering, Construction, and Real Estate-Adnan

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Forte GCC raises the bar in engineering, construction, and real estate with groundbreaking standards, by Adnan Mukhtar

In a move that is set to revolutionize the engineering, construction, and real estate sectors, Forte GCC Innovative Solutions Limited has announced its commitment to innovation, sustainability, and excellence.

Since its inception in 2019, the company has established itself as a trailblazer in the industry, with a team of dedicated professionals and a vision to harness the power of technology to craft a smarter, more efficient world.

The company’s mission and vision is to elevate services through continuous research and innovation and to become a frontrunner in engineering consultancy, construction, and real estate sectors.

Led by Engr. Khalil Sagir Koki, a seasoned engineer and project manager with a proven track record of delivering complex projects, the company’s management team boasts a diverse range of expertise and experience. Engr Khalil has a Masters of Engineering in Civil and Environmental Engineering from the University of Surrey and a Master’s of Science in Engineering Construction Management from the University of East London. Engr. Koki is a member of the Nigerian Society of Engineers, the Institute of Civil Engineers UK, the Institute of Highways Engineers UK, and the Association for Project Management UK, and has attained the APM Project Fundamental Qualification from the Association for Project Management. He also holds a Construction Project Management certification from the Colombian University of New York.

Other members of the management team include Engr. Emmanuel Adetokumbo, a COREN-registered engineer with over a decade of experience in building and infrastructure projects; Muhammad Gazzali Ado, a seasoned finance professional with experience in accounting, taxation, and financial management; and Mrs Misriyya Imam Hassan, a management expert with a degree in Management Information Systems from the University of Sharjah and an MSc from the University of Leicester.

The company’s recent achievements include the successful completion of Laurat Terraces, its inaugural real estate development project in Katampe District, and the commencement of two new estates, Misriyya Terraces and Guildford Terraces, in Katampe District.

With its commitment to safety, ownership, integrity, passion, and teamwork, Forte GCC Innovative Solutions Limited is set to deliver unparalleled results and shape the future of Engineering, Construction, and Real Estate in Nigeria and beyond.

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Opinion

Ahmad Abdulkadir Firdaus :A Successful Business Man And Philanthropist

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Abdulkadir Ahmad Firadusi

 

By AbdurRaheem Sa’ad Dembo

The fascinating story of Ilorin born businessman but resident in Kano, Ahmad Abdulkadir Firdaus is the one filled with a rare commitment and tenacious disposition. He is the Chief Executive Officer of Aquarich Integrated Services, Hydro Blue Water and Habidaus Global Concept in Kano. Indeed, no businessman or an entrepreneur would ever tell you it is easy to be in business or self employed but he has been making remarkable progress against all odds.

It interests me to write about him because I have been in the know of how he has positively metamorphosed from being an employee to become an employer of labour in the commercial city of Kano. Firdaus story is not a fairy tale as those who know him can attest to his growth in the Kano business community.

Sincerely, it is through observation of him I got to know practically that you don’t invest in a business if you don’t have time to monitor it, otherwise you would be feeding the greedy and glutton among your workers inadvertently, and before you know it, the business has collapsed. They don’t want to know how you come about the capital for the business but they would be ready to drain the resources to comatose, since no one would be around to have critical monitoring of their activities.

Successful businessmen do have challenges and that of Firdaus is no exception, especially given the current stifling inflation in the country. You must have the courage and sagacity to pull through in business with sincerity and promptness.

There was a time I visited Kano, precisely February, 2022 to attend the 40th Anniversary of Mass Communication Department in Bayero University, Kano, my alma mater. I observed him in the office and I discovered that he has full grasp of what it entails to run a business. He is an economist, so one shouldn’t expect less from him.

He is very strict but pragmatic. His strictness cannot be likened to nefariousness but proper way of doing things. He doesn’t cut corners. He will never bargain for substandard products.

As an entrepreneur you have a goal, but it should be predicated on your customers satisfaction. Without them your business will face retardation and sluggishness. That is why when you agree on a day and date for the supply of goods, do not renege. Customers develop confidence in someone based on their experience over time. If their experience is positive you are in for a good time with them.

Discipline as a core value in any setting, be it political, social or economic, will help anyone to grow; especially in business, financial discipline is key. To the best of my knowledge, Firdaus has it and his prudence is a great deal of idea.

*My relationship with Firdaus*

We are both from Ilorin but we didn’t know each other until we met in Bayero University, Kano. Although we gained admission the same time, he was a year ahead of me because his was a direct entry. Since graduation, the relationship has been sustained till today; alhamdulillahi! He is a thorough person, he neither receives ideas and/or opinions nor treat issues dogmatically. It takes a sound and convincing explanation of a subject matter to get him on the same page with one.

Our good friends, they say, are our lives. At one’s lowest hour, one must have that one person in whom to confide. This is reminiscent of Mariama Ba’s So Long a Letter in which it is said “confiding in others always pain”.

Our relationship has transformed beyond friendship, it is now a familial bond. I can remember when I attended his wedding in Kaduna in the year
2009 and he reciprocated by attending my wedding in Ilorin together with his wife, an epitome of a good wife.

He is based in Kano but his door is always open to visitors. You can’t visit his family without giving a good account of their hospitality and humility. Great men are synonymous with humility and that has been my conviction over the years.

*His Philanthropic Activities*

He is a finest gentleman with a kind heart and generous disposition.He does not have a Foundation through which he reaches out to the less privileged because he believes giving to people is a personal thing and does not require publicity. His argument has been that he is doing it for the sake of Allah, not for people to praise him, and that getting a reward for doing good is preregative of Almighty Allah.

This is unlike politicians; there is no way they can keep in secrecy if they render assistance. If they don’t say it out, oppositions would use that against them, that they have neglected the people after gaining their mandates. So it is easy for him to do it in his own way, because he is not a politician.

There are cases of where he has helped and those people would be the one to tell me much later. If he helps you the third person would not hear about it. Emphatically, he has been kind to me as well.

Ahmad Abdulkadir Firdaus does not allow his busy schedules to deprive him of the opportunity to reach out to people through associations. He is currently the Vice President II of Bayero University Kano Alumni Association, the national body. He is also the Vice Chairman of Ilorin Emirate Descendants Progressive Union (IEDPU), Kano Branch. He is a Patron of Ilorin Emirate Students Union, BUK Chapter.

He is a detribalized Nigerian; his hand of fellowship spreads beyond his tribes and associates.

*His business sojourn*

Firdaus joined Royal United Nigeria Limited in Lagos State in 2007. He was later transferred to Kano office where he rose from the position of Accounts Assistant to become Regional Manager, North. In his words “I joined Royal United Nigeria Limited in 2007 through my Guardian, Dr. Abdullahi Jibril Oyekan”

Ahmed Abdulkadir Firdaus was born to the family of Alfa Ahmad and Hajia Halima of Ile Machine, Oju Ekun Oke, Adangba, Ilorin and grew up at Sebutu compound, Ilorin. He had his primary and part of secondary school education in Ilorin before proceeding to Lagos where he completed it. He is happily married with kids.

Below are his Educational background, Awards, and excerpts of the interview with him.

*Academic Qualification

In 2005 he bagged B.Sc. Economics from Bayero University, Kano with second class upper. He also obtained Master of Business Administration (MBA) in 2011 from the same institution. In 2006 he obtained Proficiency Certificate in Management and graduate member from the Nigerian institute of Management.
He became an Associate member , Institute of Chartered Economists in Nigeria (2006).

*Awards

Award of Excellence by Ilorin Emirate Descendants Progressive Union, IEDPU Northern Zone, 2023

Award of Excellence by BUK Alumni, Ilorin Emirate chapter, 2023

Award of Excellence by An-nur Islamic Organization, BUK, 2021

Award of Excellence by Ilorin -Ifelodun Social Group, Kano, 2021

Markazul Ulum Wal Maharif Islamic School Dei Dei, Abuja, 2020

Award of Excellence by National Association of Kwara State Students, BUK Chapter, 2019

Award of Excellence by Ilorin Emirate Youth Development Association, Kano, 2019

Award of Excellence by Ilorin Emirate Students’ Union, BUK, 2016

Certificate of Merit by National Youth Service Corps, Corps Welfare Association, Giginya Barracks, Sokoto, 2007

Merit Award (Chairman Fundraising) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Financial Secretary) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Member Fundraising) by Ilorin Emirate Students’ Union, BUK, 2004

Merit Award by Markaz Agege Alumni Association, BUK, 2003/2004

Al-Adabiyya Alumni Association, BUK, 2003/2004

Merit Award (Active member) Ilorin Emirate Students’ Union, BUK, 2002

*Interview Session*

What do you sell?

I sell different types/brands/sizes of Tyres and TableWater (HYDRO BLUE)

What could be the catalyst for your success in the business world?

Determination, patience, and passion can drive a business growth.

Nigerian economic challenges are enormous, but I always tell myself that if Dangote can do it, I can equally do with determination.

What advice do you have for upcoming entrepreneurs?

Business requires pragmatism, goal-oriented, and target. Including the culture of discipline

At the early stage of business, they must be available (full participation), adopt austere approach, have some level of accounting knowledge, and financial discipline.

They should understand that there is no shortcut to success; Rome was not built in a day.

Is it always rosy for your kind of business?

Not at all, like the Yoruba would say, a person that knows the day he would make plenty of sales might know the day of his death. Is just a saying nobody knows when he or she will die. No one can determine the day he or she will make enormous sales. However, business is unpredictable, most especially in the face of the current inflation that has influenced price instability.

It is obvious that even in the business world there are challenges but your ability to cope with its complexity and dynamism will determine how far you would go. This doesn’t rule out the significance of prayers as you weather the storm gradually. Our young men and women should cultivate the habit of sincerity and patience. Nothing good, they say, comes so easy. Get-rich-quick syndrome can’t be a way out of poverty but the road to doom. Patience is key to every facets of our lives just as Hausa saying “Hakuri maganin zaman duniyan”. Meaning patience is the key to successful life.

Firdaus, as a businessman is an example of those who would do their businesses diligently and would not surcharge the people.

He is in Kano, doing his business with utmost standard and excellent customer relations. Please patronise him for a life changing experience.

abdurraheemsaaddembo@gmail.com

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Opinion

Exposing the fraud in NASS budget-Jaafar Jaafar

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By Jaafar Jaafar

In an unprecedented budget fraud, the National Assembly has appropriated N370 billion on running costs, contingency, vague and duplicated projects for the Senate and House of Representatives in the 2024 Appropriation Act.

I’m not talking about the hundreds of billions of naira padded in other ministries, departments and agency, but what they budgeted for their welfare and running of the National Assembly.

In the N370 billion NASS budget, the lawmakers duplicated projects and created new, unnecessary projects that increased the budget from N170billion in 2023 to N370 billion this year.

In budget (under Statutory Transfers ), the NASS budgeted 36,727,409,155 for the National Assembly Office; N49,144,916,519 for the Senate; N78,624,487169 for the House of Representatives; N12,325,901,366 for the National Assembly Service Commission and; N20,388,339,573 for Legislative Aides.

A senator recently told me that each of them (and members of the House of Reps) is entitled to five aides, while the four presiding officers (Senate President, Speaker and their deputies) have at least 3,000 aides. In total, you are talking about over 5,000 aides!

Despite the foregoing, the NASS budgeted N30,807,475,470 for “General Services” and N15billion as “Service-Wide Vote” – known in administrative parlance as “contingency” or “security vote”. The NASS never had anything like service-wide vote in the past as “service-wide vote” is always exclusive to the Executive arm. Insiders said this is a clear case of budget padding as the purpose for the huge appropriations are vague.

Even the retired clerks and perm secs (despite receiving their pensions) are not left out in this public funds buffet as they got N1.2billion padded for them.

Apart from padding the intangibles, the NASS will spend N4billion to build recreation center; about N6billion to furnish committee rooms for the two chambers and; another N6billion to build car parks for senators and members (don’t ask me whether they lack any parking space).

And despite this, the lawmakers padded N30 billion in the FCDA budget for “Completion of NASS Chambers” and N20billion for “completion of NASS Service Commission”! In the same budget, the lawmakers set aside another N10billion (under NASS budget) for the completion of National Assembly Service Commission building! How did this happen? No be juju be dis?

Still hungry to devour public resources, the avaricious parliamentarians budgeted another N3billion for the “Upgrade of NASS Key Infrastructures”. How come? What about the N30billion budgeted for “Completion of NASS Chambers”?

NASS Library Complex, named after President Tinubu’s Chief of Staff, Femi Gbajabiamila, got N12billion as take-off grant and another N3billion for purchase of books.

Like other institutions under NASS, the National Institute for Legislative and Democratic Studies got N9billion without clearly stating how or where the resources will apply to. The same institute also got another N4.5billion (is this ‘jara’?) for completion of its headquarters.

Despite the dedicated powerline and powerful generators backing up power supply in the National Assembly, the lawmakers budgeted N4billion to install solar power system. I guess this will give them a reason to pad billions for the purchase of batteries every year.

The committee that superintended this butchery of public resources, the Appropriations Committees of the Senate and the House of Reps, got N200m each for a job well done.

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