Oil and Gas
House decries non compliance to PIA provisions on decommissioning
The House of Representatives Ad-hoc Committee on Decomissioning and Abandonment in the oil sector has alleged that the non-compliance to provisions of the Petroleum Industry Act (PIA) and other extant laws by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is a major impediment.
It stated this following submissions by the officials of NUPRC and the NMDPRA at the resumed investigative hearing of the committee held at the National Assembly.
The representatives of the two agencies who represented their Chief Executive Officers (CEOs) presented letters authorising them to stand in for their bosses.
The Chief Executive, NUPRC, Eng. Farouk Ahmed was represented by the Executive Commissioner, Development and Production Engineering, Enorense Amadasu.
Similarly, the Chief Executive Officer, NMDPRA, Engineer Gbenga Komolafe was represented by the Executive Director of Health, Safety, Environment and Communities, Dr. Mustafa Lamorde
It could be recalled that the House had inaugurated the committee to investigate operators’ and regulators adherence to the PIA in decommissioning and abandonment (D&A).
The probe stems from concerns over a significant funding gap of about $20 billion and as well as environmental and fiscal risks from aging assets, scrutinises companies’ D&A plans, financial provisions like escrow accounts and regulatory enforcement by agencies like NUPRC and NMDPRA and to protect communities and the environment from liabilities of abandoned infrastructure.
In their separate submissions, the NUPRC represented by Engineer Enorense Amadasu and the NMDPRA represented by Dr Mustapha Lamorde informed the committee that many factors have caused delays in the implementation of the regulations in the D&A in the oil sector despite the provisions in the PIA.
They also cited some legal technicalities in the Ministry of Justice, issues with responsibility of the Central Bank of Nigeria (CBN), Escrow accounts as well as other challenges.
The NUPRC stated, “So, our response was clear that the NUPRC has strongly enforced the provisions of section 232 and 233 of the petroleum acts by the PIA 2021, which together with the subsidiary legislative market classes cease and cease to serve any decommissioning and abandonment plan for their assets and for which extensive engagements in the industry have been held to test ways of engagement in the industry to the extent that every field health plan approved by every field health plan that is submitted to the NUPRC now because they have approved, we also have to engage them for them to provide the plan.
“So it’s also important for us to understand that the D&A is actually, the D&A plan that we review then is actually for them to tell us what will happen at the end of the life cycle of the plan, just like you observed, such that at the end the environment will be restored back close to its original state”.
In his remark, Chairman of the Committee, Hon. Bassey Ekpenyong lamented the delays in implementing the PIA provisions and other extant laws.
“The regulation is a regulation that was approved in 2003. And I want to believe that as soon as you did that, you submitted it to the Minister of Justice.
Oil prices rose on Thursday after the U.S. launched fresh strikes against Iran, denting hopes for an end to the Iran war and for the full reopening of the Strait of Hormuz, a chokepoint for one-fifth of pre-war global oil supplies.
Brent crude futures rose 78 cents, or 1% to $78.8 a barrel by 0054 GMT. U.S. West Texas Intermediate crude futures were up 74 cents, or 1.01%, at $74.26 a barrel.
Both crude benchmarks, WTI and Brent, rose more than a dollar in post-settlement trade on Wednesday after the U.S. military began launching fresh strikes on Iran.
Before that, the benchmarks had settled at their highest in over two weeks after U.S. President Donald Trump threatened fresh strikes against Iran as soon as Wednesday night.
The U.S. military said it was launching fresh strikes on Iran aimed at keeping the critical Strait of Hormuz open to traffic, hours after President Donald Trump declared that an interim agreement to end the war was “over”.
The rush of oil that passed through the strait in recent weeks is over for now, with shipowners expected to take a more cautious stance, IG analyst Tony Sycamore said in a note.
The U.S. said its latest round of attacks was in response to Tuesday’s assault on three tankers transiting the strait. The U.S. attacks rattled several cities along Iran’s southern coast and left some areas without power.
Iran said on Wednesday it attacked U.S. military sites in Bahrain and Kuwait in response to earlier U.S. strikes on infrastructure.
Some war underwriters have advised shipping companies to pause voyages through the Strait of Hormuz, and others are reviewing their policy terms after Iran’s renewed vessel attacks, insurance industry sources said on Wednesday.
Reuters
.. Deals Set to Catalyse Industrial Growth, Enhance Nigeria’s Energy Security
By Aliyu Musa
The Nigerian National Petroleum Company Limited (NNPC Ltd) today announced the signing of six strategic agreements with key partners, ranging from Memorandum of Understanding (MoU), Gas Supply Agreement (GSA), and other gas transportation deals, marking a significant milestone in Nigeria’s journey towards industrial revitalisation and enhanced energy security.
The agreements, executed on the sidelines of the ongoing 25th NOG Energy Week, in Abuja on Tuesday, include: an MoU with Ajaokuta Steel Company Limited (ASCL) ; a Gas Sale Aggregation Agreement (GSAA) with Ajaokuta Steel Company Limited (ASCL); a GSA with UTM FLNG; a Network Entry Agreement with Chevron Nigeria Ltd; a Network Entry Agreement with AGPC, and a Network Entry Agreement with NNPC Exploration & Production Ltd (NEPL).
According to the GCEO NNPC Ltd, Engr. Bayo Bashir Ojulari, the agreements underscore NNPC Ltd.’s commitment to advancing the Federal Government’s gas-based industrialisation agenda, driving sustainable economic growth and enhancing Nigeria’s energy security.
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation. Gas is the key. It is source of revenue and profit. It is also the only product that can have that level of industrial impact on Nigeria, more than any other hydrocarbon.”, Ojulari stated.
He particularly described the agreements as a testament to NNPC Ltd’s shared commitment to transparency, efficiency, and a standardised framework for Nationwide gas utilisation, which will unlock new supply capacity for the domestic market and solidify the role of gas as a catalyst for economic transformation.
Ojulari noted that the agreements signal a new era of strategic partnerships that will drive local content, enhance energy security and accelerate Nigeria’s journey towards becoming a global industrial powerhouse. He described NNPC Ltd as the partner of choice. “We are on a journey, even as we look forward to greater collaboration with industry partners.”
A cornerstone of the signing ceremony was the agreement with Ajaokuta Steel Company Limited (ASCL). In the MoU, NNPC Ltd. and ASCL commit to extend collaboration beyond gas supply, aiming to catalyse the production of raw materials for oil and gas pipes, a critical enabler for major infrastructure projects such as the African- Atlantic Gas Pipeline (AAGP) and the Escravos -Lagos Pipeline System (ELPS) 3.
The MoU is anchored on two major pillars: the revitalisation of the Ajaokuta Steel Complex and the expansion of domestic gas utilisation through the Nigerian Gas Transportation Network Code.
This was complemented by the execution of a 20-year Gas Sale and Aggregation Agreement (GSAA) between NNPC E&P Limited (NEPL), Gas Aggregation Company of Nigeria Ltd/Gte (GACN), and ASCL. This agreement will see the supply of 3MMscf/d of Firm Contract Volumes and 47MMscf/d of Interruptible Contract Volumes to be used as feedstock for the power plant servicing the steel complex .
NNPC Ltd/ Seplat JV also took a major step towards commercialising Nigeria’s vast natural gas resources by signing a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) between the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture and UTM FLNG Ltd.
Under the agreement, the Joint Venture will supply 200 million standard cubic feet of gas per day (MMscf/d) to the UTM Floating LNG (FLNG) project, providing the long-term feedgas certainty required to support financing and position the project for a Final Investment Decision (FID) in the fourth quarter of 2026.
Further demonstrating its commitment to a regulated and efficient gas market, NNPC Ltd. announced the successful migration of legacy interconnection agreements to the new Nigerian Gas Transportation Network Code. This involved the signing of Network Entry Agreements (NEnAs) with three major gas producers.
These agreements, signed with Chevron Nigeria Limited (CNL), AGPC, and NEPL, will inject up to 800MMscf/d of natural gas into the domestic transportation network. This will serve Nigeria’s power plants, Gas-Based Industries (GBIs), and industrial clusters, significantly enhancing network connectivity and operational flexibility while improving the security of gas supply.
The signing of the various landmark agreements was witnessed by the Honourable Minister of Petroleum (Gas), Rt. Hon. Ekperikpe Ekpo; Honourable Minister of Petroleum ( Oil), Senator Heineken Lokpobiri; Special Adviser to the President on Energy, Ms. Olu Verheijen; Commission Chief Executive of NUPRC, Mrs Oritsemeyiwa Eyesan and Authority Chief Executive of NMDPRA, Rabiu Umar.
These agreements came within the milestone 25th NOG Energy Week themed “Advancing Energy Ambitions for Competitive & Resilient Economies,” which spotlighted the critical role of strategic partnerships in delivering energy and industrial value.
From what began as Dangote’s landmark refinery project in Nigeria, it is now evolving into a continent-wide refining network, with the company confirming plans for a 700,000-barrel-per-day (bpd) refinery in Kenya as part of a $46 billion investment programme spanning its refining, cement and fertiliser businesses between 2026 and 2028.
Dangote Industries, upon delivery, expects to operate a combined refining capacity of 2.1 million bpd which includes the 1.4 million bpd in Nigeria and 700,000 bpd in Kenya, creating one of Africa’s largest privately owned refining networks.
Stretching from the Atlantic coast in West Africa to the Indian Ocean in East Africa, the twin hubs are expected to strengthen intra-African fuel trade while reducing the continent’s reliance on imported refined petroleum products.
The expanded plans were disclosed by Dangote Industries’ Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by a delegation from the Republic of the Congo’s national oil company, Société Nationale des Pétroles du Congo (SNPC), to the Dangote Petroleum Refinery in Lagos.
During the visit, the company outlined its long-term African expansion strategy while discussing regional energy cooperation.
The latest announcement also marks a significant increase from Dangote’s earlier proposal for a 650,000-bpd refinery in Kenya, signalling growing confidence in East Africa’s long-term fuel demand and the country’s strategic importance to the group’s continental ambitions.
Why Kenya emerged as Dangote’s preferred choice
Kenya had emerged as Dangote’s preferred destination after the company evaluated several locations across East Africa.
The Port of Mombasa, East Africa’s busiest seaport, already serves as a key gateway for petroleum products destined for Uganda, Rwanda, South Sudan, eastern Democratic Republic of Congo and parts of Tanzania, making it an ideal hub for regional fuel distribution.
The expanded plans were disclosed by Dangote Industries’ Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by a delegation from the Republic of the Congo’s national oil company – SNPC
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Kenya also has an extensive pipeline network operated by the Kenya Pipeline Company (KPC), allowing refined products to move efficiently across the country and into neighbouring landlocked states.
Its position within the East African Community (EAC)—a market of more than 300 million people—further strengthens its appeal, while the project would revive Kenya’s ambitions of becoming a regional refining hub after the closure of its only refinery over a decade ago.
The significance of the Kenyan refinery extends well beyond East Africa.
Together with Dangote Industries’ planned 1.4 million barrels per day of refining capacity in Nigeria, the proposed 700,000-bpd refinery in Kenya would create a 2.1 million-bpd refining network stretching from West to East Africa.
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The twin hubs would position the conglomerate to supply refined petroleum products across much of sub-Saharan Africa while reducing the continent’s dependence on fuel imports from the Middle East, Europe and Asia
Today, much of East Africa relies on refined petroleum imports from the Middle East, India and Europe. A refinery in Kenya would allow Dangote to supply fuel much closer to end markets, reducing shipping distances, improving supply security and supporting the continent’s push to process more of its own crude.
The strategy also complements the objectives of the African Continental Free Trade Area (AfCFTA) by strengthening intra-African industrial capacity and reducing dependence on overseas refiners.
Dangote has repeatedly framed the company’s expansion as a continental rather than national project.
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“We are for Africa, not just Nigeria. Tell us what you need, and we will see how we can work together,” the Dangote Industries President and Chief Executive said.
If completed, the twin-refinery strategy would place Dangote at the centre of Africa’s energy transition, not away from fossil fuels, but away from dependence on imported refined products.
By linking West and East Africa through two mega-refineries, the group is positioning itself to become one of the continent’s most influential suppliers of transportation fuels while advancing a broader vision of African industrial self-sufficiency.
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