The Nigerian National Petroleum Corporation (NNPC) Monday sealed an agreement with Shell Petroleum Development Company (SPDC), Seplat Petroleum Development Company Plc, Oando Plc and other partners on the implementation of seven critical gas development projects worth $3.7 billion to bridge the gas supply shortfall in the domestic market.


This development came as crude oil prices rose Monday following increased global demand and the United States efforts to shut out Iranian output using sanctions.

The development, according to unfolding drilling data, indicated an increase in US shale.

Speaking Monday in Lagos at the ‘Framing Workshop on the Seven Critical Development Projects’, where the agreement was signed, the Group Managing Director of NNPC, Dr. Maikanti Baru, identified five projects by the NNPC joint ventures and two projects by the Nigerian Petroleum Development Corporation (NPDC), a subsidiary of the corporation, as the seven projects.

According to him, some of the projects include, full utilisation of Uquo Gas Plant to deliver 200 million standard cubic feet of gas per day (mmscfd), through the NPDC’s Utapate gas in Oil Mining Lease (OML) 13; and the joint development of OML 24, a joint venture between the NNPC and Newcross and OML 55, a JV between the corporation and BELEMA OIL.

The other projects are the full utilisation of Seplat Petroleum Development Company Plc’s Oben Gas Plant to deliver 465mmscfd of gas; and the full utilisation of Pan Ocean’s Ovade Gas Plant to deliver 130mmscfd.

“There exist another opportunity to utilise the spare capacity of 100mmsfd in Pan Ocean Ovade Gas Plant, which currently processes 30 mmscfd due to sub-surface limitation. The plan was to send NPDC Oredo gas to Ovade for processing but due to lack of alignment of schedule, NPDC has progressed significantly with the installation of two compressors to supply the gas directly into the Escravos Lagos Pipeline System (ELPS). This non-alignment of purpose can be eliminated through proper synchronisation of our developments,” Baru explained.

He noted that domestic gas demand was growing at an exponential rate that outpaces gas supply development plan.

According to him, a gap of about three billion cubic feet per day (bcfd) of gas by 2020 has been identified by NNPC, which will be bridged at the full completion of the seven critical gas projects.

Baru said the NNPC had engaged two world-class project management consultants – DeltaAfrik/Worley Parson and Crestech/Penspen) who will work with NPDC and NNPC JV partners and other stakeholders to achieve set project deliverables.

He said the implementation of the projects was the beginning of the end to the gap in domestic gas supply of 3.5 bscfd, as these projects at full implementation would be the final solution in resolving the foreseen domestic gas supply gap.

Baru identified the timely availability of funds as one of the factors that would help in project delivery, adding that the NNPC had developed a third party financing arrangement for new investments and had also secured $3.7 billion for the under-listed projects.

Baru included Belema Oil and Pan Ocean as some of the NNPC’s partners in the projects.

He listed governance for unitised assets; timely approvals with other agencies and lease renewal­ as some of the other enablers that would quicken the implementation of the projects.

According to him, though lease renewal is not under NNPC purview, the corporation would do everything within its means to ensure that lease renewal requests related to these projects are supported for renewal.

As the NNPC commenced the implementation of gas projects, crude oil prices also rose Monday over increased global demand and the limited success of the US efforts to shut out Iranian output using sanctions.

Benchmark Brent was up 70 cents at $77.81 per barrel, while the US crude was unchanged at $73.80.

The US said it wanted to reduce oil exports from Iran, the world’s fifth biggest oil producer, to zero by November, in a move that will oblige other big producers such as Saudi Arabia to pump more.

But Saudi Arabia and other members of the Organisation of the Petroleum Exporting Countries (OPEC) have little spare capacity and oil demand has risen faster than supply over the last year.

At the same time, exports from several OPEC producers, including Venezuela and Libya, have been falling.

US oil output is increasing but is unlikely to be able to fill the supply gap if US sanctions are successful in blocking Iranian exports.

US energy companies last week increased the number of rigs drilling for oil by five to 863.

The US rig count, an early indicator of future output, is much higher than a year ago as companies have ramped up production in response to higher prices.

OPEC, Russia and other producers agreed in June to a modest increase in output to dampen oil prices, which recently hit three and a half year high.

A rise in supply will reverse some of the output cuts that OPEC and other major producers put in place in early 2017 to end several years of glut.

http://www.akelicious.net/2018/07/nnpc-signs-agreement-with-shell-seplat.html

Good development.....

NNPC has outlived it’s usefulness and should be scrapped.
Thieves

Signed this, signed that but at the end of the day no positive impact on the lives of citizens.

My own problem is hw do i secure job at this NNPC

NNPC = Nigerian National Petroleum Corruption

Deal to freely give morroco nigerdelta gas....

LPG or which gas na

To aid the discourse:

How to break into Nigeria's oil and gas industry

Tips on starting a career in the oil and gas industry

21savages:
My own problem is hw do i secure job at this NNPC [/quote[quote author=harlee post=69236608]t

even in the janitorial section??

nuti:
NNPC has outlived it’s usefulness and should be scrapped.
Thieves

Finally!!!!

State run corporations are usually a way for the elites to steal money and the nations resources. They should scrap all of them and let anyone who wants to go into the oil business get into it. The more competition the more their is demand for labour (read: jobs) and the more the economy grows. Common sense folks.

Good move.

This will ensure a boost in both Domestic Gas Supply and LPG for export. More revenue for Nigeria.

High demand for Oil and Gas continues to outlive it's predicted lifespan.

In other News, space Bookers how market? This is not your kind of gist. Hahaha

nuti:
NNPC has outlived it’s usefulness and should be scrapped.
Thieves

Propose a framework that will work as a substitute for the scrapped NNPC.

Everything about Buhari’s government has been to do and to do, it’s over 3years now which one have they done.

davidif:


Finally!!!!

State run corporations are usually a way for the elites to steal money and the nations resources. They should scrap all of them and let anyone who wants to go into the oil business get into it. The more competition the more their is demand for labour (read: jobs) and the more the economy grows. Common sense folks.

So who oversees the State's equity interests in the Oil and Gas Ventures?

Icon4s:
Good move.

This will ensure a boost in both Domestic Gas Supply and LPG for export. More revenue for Nigeria.

High demand for Oil and Gas continues to outlive it's predicted lifespan.

In other News, space Bookers how market? This is not your kind of gist. Hahaha

More revenue for the state?? Great!!! When will you Nigerians learn that what is good for the state is not necessarily whats good for the people. The state has grown too big and needs to be cut down dramatically. Like the saying goes, "pigs get fat, hogs get slaughtered." The state has grown so fat while stifling the creativity and entrepreneurial spirit of the people and therefore needs to be starved or cut down to size. In other words, the state doesn't need more revenue what it needs is a diet.

davidif:


More revenue for the state?? Great!!! When will you Nigerians learn that what is good for the state is not necessarily whats good for the people. The state has grown too big and needs to be cut down dramatically. Like the saying goes, "pigs get fat, hogs get slaughtered." The state has grown so fat while stifling the creativity and entrepreneurial spirit of the people and therefore needs to be starved or cut down to size. In other words, the state doesn't need more revenue what it needs is a diet.

Where do you think the monthly allocation that goes to the state government come from?

The fact is Nigeria is not ready to practice true federalism. But that is a different topic of discuss.

This MOU signed is for the benefit of Nigerians.

Icon4s:


So who oversees the State's equity interests in the Oil and Gas Ventures?

Sell them off. Every last one of them. The govt has no business getting involved in the oil business in the first place. Their job should be to create a stable environment for businesses to thrive in not to be getting involved in ventures that they don't have expertise in. Its about time that you Nigerians learnt that what is good for the state is not necessarily whats good for the Nigerian people.

The state has grown too big and needs to be cut down. Like the saying goes, "pigs get fat, hogs get slaughtered." The state has grown so fat while stifling the creativity and entrepreneurial spirit of the people with (bad policies, bureaucratic redtape etc) and therefore needs to be starved or cut down to size. In other words, the state doesn't need more revenue what it needs is a diet.

Icon4s:


Where do you think the monthly allocation that goes to the state government come from?

The fact is Nigeria is not ready to practice true federalism. But that is a different topic of discuss.

This MOU signed is for the benefit of Nigerians.

And therein lies the main problem of Nigeria; allocations. When you give someone money that they didn't work for they are most likely to mismanage it and spend it on frivolities but if they worked hard to get the money they are most likely to spend it wisely. What Nigeria has been doing for years has failed. You are giving people free money and you are wondering why they are not spending it wisely.
Until you get rid of this nonsense allocation, states and local govts would not have the incentive to succeed and you would keep rewarding bad behavior (stealing etc) and incompetence. Its like giving large sums of money to your child and wondering why they squandered it.

davidif:


Sell them off. Every last one of them. The govt has no business getting involved in the oil business in the first place. Their job should be to create a stable environment for businesses to thrive in not to be getting involved in ventures that they don't have expertise in. Its about time that you Nigerians learnt that what is good for the state is not necessarily whats good for the Nigerian people.

The state has grown too big and needs to be cut down. Like the saying goes, "pigs get fat, hogs get slaughtered." The state has grown so fat while stifling the creativity and entrepreneurial spirit of the people and therefore needs to be starved or cut down to size. In other words, the state doesn't need more revenue what it needs is a diet.

Sell them off to.... who? Multinationals so that our common wealth as a nation will end up in the hands of foreigners? Or to only Nigerian business men who do not yet have the Capacity to delve into such ventures. How many of our financial institutions have the capacity to fund huge Capital Oil and Gas projects?

davidif:


And therein lies the main problem of Nigeria; allocations. When you give someone money that they didn't work for they are most likely to mismanage it and spend it on frivolities but if they worked hard to get the money they are most likely to spend it wisely. What Nigeria has been doing for years has failed. You are giving people free money and you are wondering why they are not spending it wisely.
Until you get rid of this nonsense allocation, states and local govts would not have the incentive to succeed and you would keep rewarding bad behavior (stealing etc) and incompetence. Its like giving large sums of money to your child and wondering why they squandered it.

Stop Monthly allocation and you think you can live in your house peacefully.

Cool. It's been long we heard from this oyel people self. Na wa for Nigeria. By the way what position are in OPEC now?

Icon4s:


Stop Monthly allocation and you think you can live in your house peacefully.

Well you can't keep doing the same thing over and over and again and keep expecting different results. I believe that's called insanity. If you want to go on and keep the same structures and policies that have failed and held Nigeria back for decades just don't come and complain to us that things are not changing cos in other to have real change you need a new approach and new way of thinking afterall you can't solve a problem with the same way of thinking that caused it in the first place.

Icon4s:


Sell them off to.... who? Multinationals so that our common wealth as a nation will end up in the hands of foreigners? Or to only Nigerian business men who do not yet have the Capacity to delve into such ventures. How many of our financial institutions have the capacity to fund huge Capital Oil and Gas projects?

Sell them off to anyone who can afford it and who has a history of ethical business practices irrespective of their race or nationality. Anything is better than this govt. Besides, there is nothing wrong with direct foreign investments coming into the country, any smart business man knows we need all the foreign capital we can get.

21savages:
My own problem is hw do i secure job at this NNPC

HMMMMMMM

MY ADVICE START FROM ALL OF THOSE SERVICE COMPANIES YOUR CHANCES ARE BETTER IF YOU HAVE THE REQUISITE EXPERIENCE, EMPLOYMENT INTO NNPC IS SOMETHING ELSE

Something does not compute in the above report.

These guys are supposed to be highly educated but they are seemingly occupying and enjoying the trappings of office. Merely marking time while perpetuating the wheel of mediocrity that ensures things never get done. Same mistakes, recycled endlessly.

Now:

You're inviting private players to come and invest billions presumably by taking long tenor loans along with their equity, but, lease renewal is not guaranteed.

Continue to whistle, the money will fly down soon.

NASTYNASOSO:


HMMMMMMM

MY ADVICE START FROM ALL OF THOSE SERVICE COMPANIES YOUR CHANCES ARE BETTER IF YOU HAVE THE REQUISITE EXPERIENCE, EMPLOYMENT INTO NNPC IS SOMETHING ELSE

Tnx

Just a case of mismanagement. Equinor (formerly Statoil) was mostly owned by the Norwegian government. So is ARAMCO. We just dont know how to hold people accountable. They will only sell it to themselves and screw things up even further.

davidif:


Sell them off. Every last one of them. The govt has no business getting involved in the oil business in the first place. Their job should be to create a stable environment for businesses to thrive in not to be getting involved in ventures that they don't have expertise in. Its about time that you Nigerians learnt that what is good for the state is not necessarily whats good for the Nigerian people.

The state has grown too big and needs to be cut down. Like the saying goes, "pigs get fat, hogs get slaughtered." The state has grown so fat while stifling the creativity and entrepreneurial spirit of the people and therefore needs to be starved or cut down to size. In other words, the state doesn't need more revenue what it needs is a diet.

emwye:
Just a case of mismanagement. Equinor (formerly Statoil) was mostly owned by the Norwegian government. So is ARAMCO. We just dont know how to hold people accountable. They will only sell it to themselves and screw things up even further.

Just a case of mismanagement? Are you kidding me?? How about pure thievery? That would be the start of the mess that is the Nigerian Govts involvement in oil and gas. I will prefer our oil business to be in the hands of foreign profit driven capitalist who know how to maximize efficiency and eliminate waste than a pathetic govt that has proven time and again that it does not know how to put the right people in the place to get the job done.

Fair enough - Pure thievery. Your solution however leaves room for us to be raped yet again. That's a colonialist mindset which we should endeavor to eradicate. Only we can help ourselves.

davidif:


Just a case of mismanagement? Are you kidding me?? How about pure thievery? That would be the start of the mess that is the Nigerian Govts involvement in oil and gas. I will prefer our oil business to be in the hands of foreign profit driven capitalist who know how to maximize efficiency and eliminate waste than a pathetic govt that has proven time and again that it does not know how to put the right people in the place to get the job done.

emwye:
Fair enough - Pure thievery. Your solution however leaves room for us to be raped yet again. That's a colonialist mindset which we should endeavor to eradicate. Only we can help ourselves.

Wrong! It's unfounded fears like this that consistently allows lawmakers to keep making bad decisions when it comes to privatizing. They keep selling the same assets to the same elites all because of the fear of outsiders. Why not open the door for more players and competitors instead of constantly creating monopolies that make things worse for the consumer or citizens in this case.
I welcome competition especially from ethical investors who don't have lawsuits or pending investigations against them over corrupt local elites.

I agree with you on the following points :
- welcoming competition from able investors
- dissolving the monopolies that currently exist
I however do no agree that my fears are unfounded in the sense that we as a people constantly look to foreign investors for compettition. Sure it will solve the problem short term but at what point do we put ourselves first? We can definitely agree to disagree.

davidif:


Wrong! It's unfounded fears like this that consistently allows lawmakers to keep making bad decisions when it comes to privatizing. They keep selling the same assets to the same elites all because of the fear of outsiders. Why not open the door for more players and competitors instead of constantly creating monopolies that make things worse for the consumer or citizens in this case.
I welcome competition especially from ethical investors who don't have lawsuits or pending investigations against them over corrupt local elites.