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Boost for Nigeria’s Oil Production, As NNPC’s Utapate Crude Grade Hits Global Oil Market

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Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart speaks at the official unveiling of the Utapate crude oil blend during the Utapate Crude Roadshow held on the sidelines of the 2024 Argus European Crude Conference in London, United Kingdom, on Wednesday.

 

 

In a major boost for Nigeria’s crude oil production, revenue generation and
economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil
grade, the Utapate crude oil blend, before the international crude oil market.

It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil
Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate
crude oil blend, following the lifting of first cargo of 950,000 barrels which headed
for Spain.

During a ceremony held at the Argus European Crude Conference taking place in
London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P
Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate
crude oil blend into the market as a significant milestone for Nigeria’s crude oil
export to the global energy market.

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“Since we started producing the Utapate Field in May 2024, we have rapidly
ramped up production to 40,000 barrels per day (bpd) with minimum downtime.
So far, we have exported five cargoes, largely to Spain and the East Coast of the
United States; while two more additional cargoes have been secured for November
and December 2024, representing a significant boost to Nigeria’s crude oil export
to the global market,” Foucart told a packed audience of European crude oil
marketers.
He added that since its introduction into the global market, the Utapate crude oil
blend has enjoyed a positive response from the international crude oil market, due
to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural
Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of
330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf
of gas.
“We have a number of ongoing projects to increase our production from the
current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to
65,000bopd by June 2025. Essentially, we are targeting opportunities to increase
production to 80,000bopd by the end of 2025,” Foucart added.He said the Utapate crude oil terminal is sustainable, affordable and fully compliant
with the rigorous environmental regulations and sustainability principles especially
those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade
said the pricing structure of the Utapate crude oil blend is similar to that of
Amenam crude as it is a light sweet crude which is highly sought after by refiners
across the world due to its low sulphur content, efficient yield of high-value
products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted
to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading
intends to run a term contract on the Utapate crude oil blend cargoes, principally
targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the
Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur
content of 0.0655% and low carbon footprint due to flare gas elimination, fitting
perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a
manner that is safe, environmentally responsible, and beneficial to the local
communities.
The Utapate field development plan, executed between 2013-2019 and approved in
October, included converting wells and facilities from swamp/marine to land-
based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development
of significant infrastructure such as production facilities, storage tank, a subsea
pipeline and an offshore loading platform to facilitate crude oil evacuation and
loading.

The entry of the Utapate crude oil blend into the market is coming barely a year
after the NNPC Ltd announced the launch of Nembe crude oil, produced by the
NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).

In a statement by Olufemi O Soneye Chief corporate communications officer NNPCL said the remarkable achievement signals the commitment of the NNPC Ltd to
increasing Nigeria’s crude oil production and growing its reserves through the
development of new assets.

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Nigeria, other African countries committed to energy transition amid global push for net-zero emissions – Veheijen

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The Federal Government has reaffirmed its commitment to creating an enabling environment for hydrocarbon investments to address energy poverty, emphasizing that Africa is not a net contributor to global emissions.

The Special Adviser to President Bola Ahmed Tinubu on Energy, Olu Verheijen, made this statement on Tuesday in Houston Texas, United States during a session at CERAWeek by S&P Global, themed “Policy and People: Pathways to a Just Transition.”

The session, chaired by Vera Blei, Head of Market Report & Trading Solutions at S&P Global, featured key speakers including Scott Tinker, CEO of Tinker Energy Association, and Sunita Narain, Director-General of the Centre for Science and Environment.

Africa’s Role in Global Emissions
Nigeria, along with other African and middle-income countries, continues to advocate for a just energy transition amid the global push for net-zero emissions. Under its “Decade of Gas” initiative, the Nigerian government has adopted natural gas as a transition fuel to support economic growth while reducing carbon emissions.

Verheijen highlighted that Africa and other low-income countries contribute only about 3–4% of global greenhouse gas emissions, in contrast to China and the United States, which account for approximately 30% and 13% of global CO₂ emissions, respectively.
Together, both countries are responsible for nearly 40% of global emissions.

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Creating an Attractive Investment Environment, Verheijen emphasized Nigeria’s commitment to fostering a stable investment climate and addressing climate-related risks through clear and transparent policies.

“In Nigeria, we are ensuring that we create an enabling environment for investments. On climate change, we recognize the importance of risk perception in our markets and are committed to transparent policies that stand the test of time, enabling the deployment of capital,” she stated.

She also underscored the need for greater regional integration to attract capital and enhance market efficiency.

“We need to strengthen economic integration across African nations to create a larger, more attractive market for investment. By pooling resources, integrating markets, and leveraging collaboration across the continent and regional blocs, we can drive sustainable development,” she added.

Data-Driven Policy for Sustainable Growth
Verheijen stressed the importance of better data collection and analysis in Africa to support informed decision-making and policy development.

“Even if Africa experiences exponential economic growth and reaches middle-income status, the continent will still not be a major contributor to global emissions. The bulk of emission reductions will have to come from developed nations, which must diversify their energy sources and invest heavily in carbon removal and reduction technologies,” she explained.

She further noted that a balanced approach is necessary to ensure that developing economies can utilize their natural resources to drive prosperity, while also adopting climate solutions that enhance adaptability and sustainability.

Through strategic investments and policy reforms, Nigeria and the broader African continent aim to bridge energy poverty, attract investment, and contribute to a more sustainable global energy transition.

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KSIP Staff Raise Concerns Over Non-Implementation of N71,000 Minimum Wage, Seeks Kano Government Intervention

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Employees of Kano State Investment and Properties (KSIP) have raised concerns over the non-implementation of the newly approved N71,000 minimum wage in their salaries.

The Kano State Executive Council, led by Governor Abba Kabir Yusuf, approved the wage increase, scheduled to take effect from November 2024. However, KSIP workers are yet to receive the revised salary, despite the growing economic pressures caused by inflation.

*Allegations Against the Managing Director*

Reports indicate that KSIP’s Managing Director, Auwalu Muktari Bichi, has already adjusted his own salary in line with the state government’s new policy, while the same adjustment has not been extended to other employees.

A source within KSIP questioned the Managing Director’s decision, stating:
“How can he claim the budget has not been approved, yet he increased his own salary? This is unfair to the workforce.”

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Employees argue that, as a corporate entity operating a five-day workweek with professional standards, they are entitled to the salary increment approved by the governor.

*Calls for Investigation Amid Staff Complaints*

Discontent among KSIP employees has fueled calls for a thorough investigation into the administration of Auwalu Muktari Bichi. Allegations against him include frequent threats of dismissal against staff over minor issues not classified as violations under the company’s Conditions of Service.

There are also claims that he has involved family members in the company’s operations, a situation reportedly well-known within KSIP. The Kanawa Taxi Association controversy, already under investigation by the state’s anti-graft agency, has been cited as another instance of alleged misconduct.

One concerned staff member urged the authorities to intervene, stating:
“The state anti-graft agency and the supervising ministry must investigate these claims to prevent abuse of power. Ignoring these issues could undermine public trust in the administration.”

*Government’s Stance on the Minimum Wage*

Governor Abba Kabir Yusuf had previously received a report from the State Minimum Wage Committee, which was tasked with reviewing and recommending salary adjustments. However, no official update has been provided on the implementation process.

A similar delay was previously experienced by workers at the Kano State Water Board, who also faced uncertainties regarding their wage increase.

*Managing Director Responds to Allegations*

Speaking to some Journalists, KSIP Managing Director Auwalu Muktari Bichi confirmed that he had adjusted his own salary in compliance with state government policy.

Justifying his decision, he stated:
“Political appointees have a different status from regular staff. I directed the Finance and Accounts Department to implement my adjustment accordingly.”

Despite his explanation, KSIP employees are urging the state government to intervene and ensure that all staff members benefit from the approved wage policy, as stipulated by the Kano State Executive Council.

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Kano To Strengthen Collaboration With Online Media

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Kano State Commissioner of to Information and Internal Affairs, Comrade Ibrahim Abdullahi Waiya, has reaffirmed the government’s commitment to working closely with online media organizations in the state.

This assurance was given during a stakeholders’ meeting with the Association of Online Media Organizations, as part of the ongoing engagements with key players in the information sector.

Comrade Waiya emphasized the critical role of online media in modern information dissemination, noting that digital platforms deliver news in real-time, ensuring immediate updates on breaking events that reach a global audience.

He stated that the government recognizes the importance of the online media sector and will collaborate with them to effectively communicate its policies and programmes.

“As key stakeholders in the information ecosystem, your role is invaluable. The government will ensure that you are actively involved in its activities, including capacity-building initiatives and training programmes to enhance professionalism in the field,” the Commissioner said.

While acknowledging the importance of freedom of expression, Waiya urged online media practitioners to uphold ethical journalism by respecting individual rights and promoting professionalism.

He also encouraged unity among members of the Association to strengthen their impact on public information dissemination.

In a statement signed by
Sani Abba Yola
Director, Special Duties Kano State Ministry of Information and Internal AffairsIn their separate remarks, members of the Association of Online Media Organizations commended the Commissioner for recognizing their contributions to public enlightenment. They, however, appealed for government support, particularly in securing retainership arrangements to improve their financial sustainability and providing regular training for new and existing members.

 

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