A fresh drama has ensued concerning Nigeria’s refineries, which are undergoing a $2.9 billion renovation. <\/p>\n\n\n\n
Former President Olusegun Obasanjo and the Nigerian National Petroleum Company Limited (NNPCL) disagree over the handover of certain facilities.<\/p>\n\n\n\n
Obasanjo expressed scepticism about the return of the Warri and Port Harcourt refineries, describing the situation as a \u201cheap of lies.\u201d <\/p>\n\n\n\n
Despite criticism, the Nigerian National Petroleum Company Limited (NNPCL) maintains its dedication to transparency and accountability.<\/p>\n\n\n\n
The company’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized this commitment and extended an invitation to the former president to visit their facilities, demonstrating their confidence in their operations and commitment to energy security for the nation.<\/p>\n\n\n\n
Obasanjo noted that Aliko Dangote had offered $750 million to operate the refineries under a public-private partnership agreement, but the money was returned by his successor, who claimed that NNPCL wanted to run the assets.<\/p>\n\n\n\n
Speaking on a Channels TV programme, Obasanjo referred to the return of the refineries using a Yoruba proverb: \u201cThe man who claims to have planted 200 heaps of yam but only planted 100 will harvest 100 heaps of yam and 100 heaps of lies.\u201d<\/p>\n\n\n\n
In the past month, NNPC announced the return of the 60,000-barrel-per-day Port Harcourt refinery and the Warri refinery, a development that has prompted many stakeholders to question the transparency and accountability of the announcement.<\/p>\n\n\n\n
Obasanjo further explained that Shell had declined to take equity or entirely run the refineries during his tenure because the oil giant profits primarily from upstream operations, not downstream.<\/p>\n\n\n\n
He added that Shell had rejected his offer, citing poor maintenance and corruption in the refineries and their small size\u2014processing 60,000, 100,000, and 120,000 barrels per day\u2014while modern refineries handle around 250,000 barrels per day.<\/p>\n\n\n\n
\u201cWhen someone gives you reasons like that, what can you do? Eventually, Aliko Dangote paid $750 million as part of a PPP arrangement to run the refinery. <\/p>\n\n\n\n
“However, my successor refunded his money, saying NNPC would manage the refineries. I told my successor, \u2018They can\u2019t run the refineries.\u2019 But my advice was ignored. Since then, more than $2 billion has been squandered on these refineries, yet they still don\u2019t work,\u201d Obasanjo said.<\/p>\n\n\n\n
The former president expressed optimism that the 650,000-barrel-per-day Dangote Refinery would succeed, stressing that the facility would function and deliver results.<\/p>\n\n\n\n
In response, Soneye invited Obasanjo to witness the ongoing rehabilitation efforts and called on him to join NNPCL in securing Nigeria\u2019s energy future, emphasising the value of his wisdom and experience.<\/p>\n\n\n\n
\u201cWe invite our esteemed former president to join us in this effort as we continue to deliver energy security for our nation and provide tangible benefits to Nigerians. His wisdom and experience are invaluable, and we assure him that his advice will always be welcomed and appreciated,\u201d Soneye added.<\/p>\n\n\n\n
Soneye also explained that NNPCL had moved beyond the limited Turnaround Maintenance (TAM) approach of the past to embark on a comprehensive rehabilitation of the Port Harcourt Refining Company (PHRC), Warri Refinery, and other facilities.<\/p>\n\n\n\n
\u201cThis process was not merely the Turnaround Maintenance (TAM) of the past but a full-scale overhaul designed to meet world-class standards. Similarly, we are currently conducting the same comprehensive rehabilitation of the old Port Harcourt Refinery and Kaduna Refinery,\u201d he said.<\/p>\n\n\n\n
Soneye further stressed the company\u2019s evolution from a government-owned corporation to a profit-driven international energy firm, adding that NNPCL had moved beyond oil and gas to become an integrated energy company. <\/p>\n\n\n\n
This transformation, he noted, had shifted the company from being a loss-making organisation to a profit-driven global energy player. <\/p>\n\n\n\n
He underscored NNPCL\u2019s efforts to position itself as a globally competitive energy company while addressing Nigeria\u2019s pressing energy needs.<\/p>\n\n\n\n
A lawyer and former Shell management staff member, Ameh Madaki, called on NNPCL to prioritise transparency and accountability to restore confidence in its operations.<\/p>\n\n\n\n
Reacting to Obasanjo\u2019s questioning of the functionality of Nigeria\u2019s Warri and Port Harcourt refineries, Madaki described the scepticism as a reflection of the long-standing opacity in the nation\u2019s oil and gas sector.<\/p>\n\n\n\n
\u201cThe opaqueness in Nigeria\u2019s oil and gas industry over the years has left even the most optimistic people sceptical about any information coming from NNPCL,\u201d Madaki said. <\/p>\n\n\n\n
\u201cFor Obasanjo, with all his knowledge and experience, to join the long list of sceptics on this issue speaks volumes and has far-reaching implications for Nigeria\u2019s oil and gas industry.\u201d<\/p>\n\n\n\n
Madaki emphasised the need for NNPCL to demonstrate greater transparency in its operations, adding that recent announcements regarding the rehabilitation of refineries deserve scrutiny rather than celebration. <\/p>\n\n\n\n
He said the fact it took the launch of the Dangote Refinery for NNPCL to announce the revival of its long-dormant refineries warrants a thorough investigation rather than any form of celebration.<\/p>\n\n\n\n
Madaki also questioned the credibility of the announcements, asking, \u201cWhat guarantees are there that these announcements are believable and that the refineries will sustain production in the foreseeable future?\u201d<\/p>\n\n\n\n
Madaki stressed that significant work remains to restore credibility to NNPCL\u2019s operations and ensure that data and information from the organisation are reliable.<\/p>\n\n\n\n
\u201cA whole lot of work still needs to be done to restore credibility and ensure that whatever information and data comes out of NNPCL and its leadership is believable,\u201d he added.<\/p>\n\n\n\n
MEANWHILE, the divestment of onshore and shallow water assets by International Oil Companies (IOCs) in Nigeria could enable indigenous oil producers to control up to 70 per cent of the country\u2019s oil production.<\/p>\n\n\n\n
Oluseye Ekun, Chairman of the Management Session Committee at the Nigerian Association of Petroleum Explorationists (NAPE), disclosed this, noting that IOCs, including Shell, ExxonMobil, Eni, and Equinor, are shifting their focus to deepwater operations while divesting from assets affected by security concerns, theft, and vandalism.<\/p>\n\n\n\n
\u201cThese divestments represent a significant opportunity for indigenous oil companies to take a larger role in the sector. If properly managed, the transactions could lead to local operators accounting for approximately 400,000 barrels per day of production, with potential for growth through new investments,\u201d Ekun said.<\/p>\n\n\n\n
In Nigeria alone, Shell has reportedly divested $2.4 billion to Renaissance Africa Energy, TotalEnergies has divested over $900 million to Chappal Energies, Eni has divested over $800 million worth of assets to Oando, ExxonMobil\u2019s $1.3 billion sale to Seplat Energy, and Equinor has made a $1.2 billion divestment.<\/p>\n\n\n\n
The recoverable oil from these reserves is estimated at 2,325 million barrels, indicating that the near 100-year dominance of IOCs on the continent is nearing its end, with the sector moving towards a $2 trillion value opportunity for national players and investors.<\/p>\n\n\n\n
Ekun noted that while these developments position local companies for increased ownership, challenges remain, including access to financing and advanced technology. He also emphasised the need for strong policies to ensure the sustainability of these investments.<\/p>\n\n\n\n
\u201cThe Federal Government has issued executive orders aimed at improving competitiveness in the sector, but more needs to be done to attract investments and secure the future of the industry,\u201d he added.<\/p>\n\n\n\n
Ekun stressed that, with effective management and strategic investments, indigenous operators could drive growth in the sector and solidify their role as key players in Nigeria\u2019s energy landscape. He highlighted that Nigeria\u2019s energy market faces significant challenges due to its overreliance on imported fuel, which compromises energy security.<\/p>\n\n\n\n
\u201cAchieving energy independence remains crucial for the country\u2019s economic and social growth,\u201d he stated. \u201cTo address this, Nigeria must optimise its oil and gas resources, harnessing the benefits to meet the energy demands of its population and drive sustainable development.\u201d<\/p>\n\n\n\n
Ekun noted that the ongoing mini-bid round for deepwater exploration, accompanied by supportive regulatory actions, is poised to attract significant investment to Nigeria\u2019s oil and gas sector, fostering a favourable business environment. <\/p>\n\n\n\n
He outlined several measures to boost indigenous participation and attract investment in the oil and gas sector, including improving entry costs and terms for new exploration blocks\/leases by adopting market-reflective signatory bonuses.<\/p>\n\n\n\n
Ekun also called for strategic alliances to access expired but unexplored deepwater blocks, urging the government\/NNPCL to support back-in rights terms and conditions before licensing rounds or lease awards. <\/p>\n\n\n\n
He added that ensuring back-in rights are cash-funded and limited to strategic minimum holdings and encouraging host community involvement in securing and safeguarding energy infrastructure are critical<\/p>\n","protected":false},"excerpt":{"rendered":"
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