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Agip Lectures for Contractors on Local Content

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By Dipo Olowookere

The Nigerian Agip Oil Company (NAOC) and its joint venture partners have organized a workshop for its contractors on regulatory and procurement best practices.

The workshop was organised in Yenagoa, Bayelsa State recently and sought to enlighten contractors on the regulations, policies and laws that are applicable in the oil and gas industry and encourage compliance.

Delivering the keynote address, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, represented by the Director, Planning, Research and Statistics, Mr Daziba Patrick Obah commended NAOC/ENI for hosting the workshop in the state annually.

He observed that the workshop has contributed immensely in building the capacity of indigenous firms, providing entrepreneurial development and mentoring the companies to build capacities and challenge themselves to grow.

According to him, the Nigerian oil and gas industry lost $380 billion to capital flight due to lack of local capacity in the first 50 years of industry operations.

He said “from five percent Nigerian Content, we have achieved 28 percent value retention, increased in-country capacity in engineering, fabrication, among others.”

Mr Obah also stated that the Board had launched the US$200 million Nigerian Content Intervention Fund (NCI Fund) to assist local contractors.

He added that “for us to achieve our target of 70 percent in-country value retention, we need greater indigenous participation in the industry. You all should set a new strategic vision for your firms so we can have more Nigerian companies.”

In his welcome address, the General Manager – District, Mr Alessandro Tiani, who represented the Vice Chairman/ Managing Director, Mr Lorenzo Fiorillo, said the workshop was organised to further demonstrate the company’s commitment to Nigerian Content Development through the implementation of various activities and partnerships.

He noted that the workshop was conceived to raise the level of contractors’ compliance with extant laws, empower and enhance their capacities to bid and execute projects in the industry.

Mr Tiani assured that ENI will continue to build and sustain long term partnerships in the countries it operates by developing local capacities and capabilities of all stakeholders.

In his remarks, the Head of Government and External Relations, Oando, Mr Adeyemi Oreagba, who represented the Chief Executive Officer, Mr Wale Tinubu, stated that Oando in collaboration with other joint venture partners of NAOC and NAPIMS would support community contractors and vendors in doing business in the oil and gas industry.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Nigeria to Intensify Use of Hybrid Electricity Models—REA CEO

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Electricity Subsidy Q1 2024

By Adedapo Adesanya

The chief executive of Rural Electrification Agency (REA), Mr Abba Aliyu, has said there will be intensification of efforts that will enable hybrid models and gas-powered mini-grids to electrify Nigeria.

Speaking at a recent conference in Lagos, he described the Electricity Act as a major enabler for hybrid models and gas-powered mini-grids.

Mr Aliyu, represented by Japheth Ailenataman, explained that the Act emphasizes technology neutrality and called for greater collaboration and stakeholders engagement.

According to him, gas qualifies under the Act as a cleaner for side-fuel, and should be considered to be acceptable in meeting Nigeria’s energy access and transition goals.

“REA hybrid mini-grid project design supports off-grid gas-powered systems in other sub-areas where such solutions are technically and economically feasible.

“The Electricity Act grants states the right to regulate the electricity market within their jurisdiction for off-grid and embedded generation. This supports localized generation solutions in gas-powered mini-grids in other sub-and non-sub-rural communities. These reforms lower the barrier for independent power producers and mini-grid developers, including those utilizing gas technology.

“Decentralization by the Electricity Act means REA must now actively engage with state electricity regulators as well as these schools where applicable, especially on licensing tariffs, safety standards, and gas-based systems and interconnected mini-grids,”

He said these opportunities are really great for Nigeria to meet its energy transition goals.

“Solar gas-based system integration into REA directs the energy education projects in their programs under embedded or hybrid system justification offer great opportunity for integrating Nigeria gas potential for RYA strategic intervention.

“This integration offers a lot of opportunity, and I see from the keynotes reducing emission is also one of the advantages. It also helps to provide a reliable bank of power, enables productive use of electricity, and enhances private sector participation. The way forward is that RYA has already demonstrated a solar hybrid mini-grid in an economic hub within the under-south area as a way forward.

“When we see some of our projects in the selected Nigerian universities, those mega-projects like University of Medjugorje, we have about 12 megawatts. It’s an embedded system. So these are opportunities for solar gas initiatives in bridging the gap that we have in the electricity sector,” he said.

He said looking forward, Nigeria will be looking at gas supply with comparative and economic reflective pricing that can enhance heat integration.

“That is a programme that the federal government has just introduced to power public institutions through embedded solar hybrid mini-grid systems. It encourages states to align with RYA activity in our energy transition priorities.”

“REA affirms and commits to ensuring that rural electrification contributes to Nigeria’s energy transition plan and meets zero goal. We also commit to decentralizing energy source for the electrification model, which includes solar gas hybrid mini-grid,” he said.

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Bounour Seeks Innovative Solutions for Efficient Power Generation, Distribution in Nigeria

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Mokhtar Bounour Shell Power Conference

By Aduragbemi Omiyale

The time has come for the adoption of innovative solutions to enhance efficient power generation and distribution in Nigeria, the chief executive of Egbin Power Plc, Mr Mokhtar Bounour, has submitted.

Mr Bounour gave this suggestion at the Shell Power Conference 2025 themed Powering Nigeria’s Energy Future: Bridging the Gap Between Ambition and Action in Lagos recently.

The high-level gathering brought together key stakeholders, industry leaders, and policy experts to deliberate on actionable pathways for powering Nigeria’s energy future.

At the event, the Egbin Power chief also called for a sustainable development in the electricity industry, reaffirming the company’s unwavering commitment to this action.

“While compliance with health and safety standards comes first in generating electricity safely, our actions and commitment to providing adequate and reliable electricity to power industries, hospitals, strategic institutions, schools, and homes will enhance socio-economic development in Nigeria.

“Our collective actions and collaborations among players across generations, transmission, and distribution will catalyse improvement of the current situation we have now.

“We have explored how collaboration can unlock transformative investments, improve liquidity, and accelerate the adoption of cutting-edge technologies that will drive operational excellence,” Mr Bounour noted, stressing that the path forward must focus on efficiency, strategic partnerships, and the adoption of innovative solutions to enhance power generation and distribution in Nigeria.

“The challenges ahead are real, but so is our shared determination,” he noted, pointing out the importance of stakeholder collaboration and regulatory support in transforming the sector.

He reiterated Egbin’s readiness to partner across value chains to drive results, noting that the company continuously invests in innovation and operational upgrades to meet Nigeria’s growing energy demand.

“We are further driven by our commitment to real progress and turning our vision into results by building a truly sustainable energy ecosystem,” he shared, stating that, “The road to a brighter energy future requires our collaboration, and I believe that together, we can close the gap between where we are and where we need to be. The future of Nigeria’s energy sector is not a dream. It is a mission, let’s power it together.”

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NGML Signs 44MMscf/d Gas Supply Capacity Deal

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Nigeria’s Gas Sector

By Adedapo Adesanya

The gas arm of the Nigerian National Petroleum Company (NNPC) Limited, the Gas Marketing Limited (NGML), has expanded its supply portfolio with the signing of a Natural Gas Sale and Purchase Agreement (GSPA) with CCETC Suk Power Limited.

The agreement enables the delivery of up to 44 million standard cubic feet per day (MMscf/d) of natural gas, further strengthening NGML’s role in Nigeria’s energy distribution chain.

The new deal, announced at the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Business Development Forum in Abuja, builds on the company’s existing agreement with GasHub Nigeria Limited and underscores its growing footprint in the midstream sector.

The gas supply deal is expected to significantly improve power generation capacity and support liquefied natural gas production, contributing to the nation’s industrial and energy security goals.

NGML noted that by increasing access to gas, it is also helping industries reduce dependency on diesel and other carbon-heavy fuels.

The AKK Gas Pipeline, a key strategic project for NNPC Limited is designed to connect gas-rich southern regions to demand centers in the north. The pipeline has been tagged as a game-changer for industrial growth, power generation, and regional energy access.

The agreement comes at a time when the federal government is intensifying efforts to scale up gas utilization across the country in line with the Decade of Gas initiative.

With this expansion, NGML is positioning itself as a reliable gas off-taker for large-scale industrial and power projects, driving economic development and enabling job creation.

The gas supply is also expected to benefit emerging industrial clusters along the AKK corridor, improving competitiveness and attracting new investments.

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