The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the introduction of Utapate crude oil blend, a new oil grade into the international crude oil market.
NNPC Group Managing Director, Mele Kyari
The NNPC Ltd. said from Oil Mining Lease (OML) 13, fully operated by NEPL, NNPC Ltd’s upstream subsidiary, the Utapate crude oil blend commenced operations in July 2024, as its first cargo headed for Spain.
The Utapate crude oil blend is located offshore Akwa Ibom State in Nigeria.
The Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, in a statement on Monday, August 5, 2024, explained that Utapate’s current crude oil production is at 28,000 barrels per day (bpd).
Soneye disclosed that it has potentials to increase its production to 50,000 barrels per day while the sulphur content of the new crude is 0.0655 per cent.
“Spanish oil giant Repsol, won the tender for the initial cargo of 950,000 barrels of the new crude blend which is comparable to the much sought after Amenam crude.
“Gulf Transport and Trading, another leading crude oil dealer, have also secured the cargoes’ tenders for Aug. and Sept. 2024,” he said.
During the Argus European Crude Conference in London 2023, the NNPC Ltd. announced the inauguration of Nembe crude oil, produced by the NNPC/Aiteo operated OML 29 Joint Venture (JV).
Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
This achievement signals the commitment of the NNPC Ltd. to increase Nigeria’s crude oil production and grow reserves through the development of new assets.
In its editorial of August 2, 2024, the BusinessDay newspaper, characteristically, launched another scurrilous and baseless attack on the Nigerian National Petroleum Company Limited (NNPC Ltd). In the editorial entitled: “NNPCL: Liability or Asset to Nigerians?”, the newspaper set out to paint the picture of NNPC Ltd that is a liability to Nigeria instead of an asset that it should be.
Group Chief Executive Officer of NNPC Ltd, Mr Mele Kyari
It chronicled a litany of issues which in its estimation have made the company to lose its place as an asset to the nation. As to be expected, all the issues it raised were either outright lies or unfair misrepresentation of facts. Let’s take a look at them one by one.
According to the newspaper, NNPC Ltd.’s status as an asset is undercut by the opacity of its operations and corruption. The truth, however, is that this is a regurgitation of age-long allegations that have since been overtaken by the emergence of Mr. Mele Kyari as the Group Chief Executive Officer of the company and the transition of the old NNPC as a corporation into a limited liability company under the Petroleum Industry Act.
One of the key thrusts of the Kyari-led management since 2019 has been its focus on transparency and accountability. This was what gave rise to the Transparency, Accountability and Performance Excellence (TAPE) management philosophy under which the company’s audited financial statements began to be published annually since 2019. In fact, the same BusinessDay newspaper that is so bent on hanging the tag of opacity on the company actually honoured Kyari with its “Energy Executive of the Year” award in 2021 for turning the fortunes of the company around and entrenching the culture of transparency in the company.
But out of sheer mischief, the newspaper has forgotten so soon and chosen to borrow some ignoble tricks from Josef Goebbel’s playbook, that of repeating the lies of opacity and corruption against the NNPC Ltd frequently with the hope of sustaining the propaganda just so well the public would believe the lies to be the truth.
The next point made in the editorial is that of mismanagement of resources and inefficiency. In its bid to present a semblance of balance, the newspaper acknowledged the role of government interference in the company. A bulk of the legacy problems, such as the age-long lack of maintenance of the refineries, is traceable to government interference.
Any old refinery staff member of the NNPC Ltd will tell you that NNPC engineers used to carry out the turn-around maintenance of the refineries until past governments started dabbling in to influence contracts for their cronies.
However, with the PIA, all that is behind as the NNPC Ltd now operates as a limited liability company under the Company and Allied Matters Act (CAMA). As is presently constituted, the company is owned by the government through the Ministry of Finance Incorporated and the Ministry of Petroleum. But the PIA envisages that in no distant time, the company will be listed on the stock exchange with shares owned by Nigerians in their individual capacities.
But prior to that time, the management of the company under Kyari has instituted a management system encapsulated in the Performance Excellence element of the TAPE philosophy. Under this, the company has made great strides in moving from a position of loss in 2019 to consistent profitability. This is in spite of the fact that the company contends with monstrous odds in the form of crude oil theft and pipeline vandalism.
The fact is: companies like Saudi Aramco, with which the newspaper tried to benchmark the NNPC Ltd, do not contend with such odds that have very practical implications for crude oil production. The newspaper is only being disingenuous in blaming the nation’s suboptimal crude oil production on inefficiency in the NNPC Ltd when it is common knowledge that the security challenges are not of the company’s making. But even at that, the NNPC Ltd has not fared badly in managing the bad situation to get the results that it has been posting in the past few years.
The truth is that the current reality of the NNPC Ltd, in terms of management and performance, does not reflect the picture of mismanagement and inefficiency that the BusinessDay tried to paint in its editorial. The question that arises from all this, which the BusinessDay must answer, is: do companies that have issues with mismanagement of resources and inefficiency make profits as the NNPC Ltd has consistently done in the past three years?
The other issue that has stymied the NNPC Ltd from being an asset to the nation, according to the BusinessDay, is its monopolistic control of the petroleum sector. Supporting its position, the newspapers states: “The corporation’s dominant position as the sole importer of petrol and the primary issuer of import licenses for diesel creates market distortions”.
This allegation, coming from a business newspaper like the BusinessDay, is very curious. For the newspaper to state that NNPC Ltd is the “primary issuer of import licenses for diesel” shows how little it knows about the oil and gas industry. It only means that the BusinessDay either does not know the difference between an industry regulator and an operator or it just wants to take its mischief to a ridiculous level, hoping that the public would swallow its lies hook, line, and sinker.
For the avoidance of doubt, NNPC Ltd does not issue import licenses for diesel or any petroleum product for that matter. This is because, NNPC Ltd, as provided in Section 64 of the PIA, is an operator just like any other company that operates in the oil and gas sector, and not a regulator. The PIA makes provision for the establishment of two regulatory agencies in the sector. They are the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The newspaper actually acknowledged these two regulatory agencies in the editorial. But how it came by the idea that the NNPC Ltd issues import licenses to marketers, a clear regulatory function, is really difficult to understand. This, however, goes to show that the newspaper and its editors know very little about the subject matter of their editorial.
On the allegation that NNPC Ltd runs a monopoly in the importation of petrol, here are the facts that the BusinessDay failed to acknowledge in its editorial. When the downstream sector was deregulated on 29th May, 2023, with President Bola Ahmed Tinubu’s declaration that fuel subsidy was gone, every petroleum marketer was automatically empowered to import the product and sell at whatever price(s) they chose.
NNPC Ltd only stepped in to close the gap as a supplier of last resort, a role assigned to it by the framers of the PIA to guarantee energy security for the nation. NNPC Ltd did not muscle any marketer out of petrol importation to become a monopoly. Besides, it does not look like the company is making any profit from being the sole importer of petrol which is usually the major objective of monopolists.
In fact, by playing this role of sole importer of petrol at this time when others are not able to import the product, NNPC Ltd has proved to be a huge asset to the nation- much more of an asset than the BusinessDay would want Nigerians and the world to believe!
By Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd.
The 29th session of the Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) holding in Baku, Azerbaijan, in November 2024 must accelerate the integration of adaptation into local, national and regional planning, including the development and implementation of participatory, inclusive and gender-transformative National Adaptation Plans.
Participants at the Africa Journalists Climate Training (AJCT) in Mombasa, Kenya
Kulthoum Omari, lead adaptation negotiator with African Group of Negotiators (AGN), who made the submission at the Africa Journalists Climate Training (AJCT) held from July 29 to 30, 2024, in Mombasa, Kenya, noted that adaptation finance channels must be reformed to increase the allocation and access for those who need it most by reducing administrative barriers.
Speaking on civil society organisation (CSO) expectation on adaptation in COP29, Ms. Omari also laid emphasis on funding and supporting local institutions and women-led groups, including through operationalising key principles.
“Developed countries must keep their promise at COP26 to at least adaptation finance by 2025 – this commitment hasn’t been met yet even we are talking about the New Collective Quantified Goal (NCQG),” she said, adding that, according to the GAP Report, adaptation finance flows and finance gaps are running up to $370 billion per year.
While expecting that progress on mapping of existing indicators mapping is concluded at COP29, she stressed that adaptation must be premised high up as a global priority, with secure-grant based funding at global level for accelerated adaptation action at scale, through new and additional finance, capacity and technology transfer across developing countries.
According to her, the CSO community is likewise expecting advance decisions that promote the realisation for Locally Led Adaptation (LLA) Actions for greater responsiveness of climate action to those at the frontline of climate. She called on global leaders to demonstrate leadership in advancing LLA.
The AJCT, which focused on climate change adaptation, was organised by PowerShift Africa.
Climate financing will be the focus of the upcoming United Nations Climate Change Conference (COP29), the summit’s chief executive, Elnur Soltanov, said in an interview with EFE, a leading Spanish news agency.
COP29 chief executive, Elnur Soltanov
With just three months until the United Nations Climate Change Conference (COP29) kicks off in Baku, Azerbaijan, Elnur Soltanov emphasised that the primary goal of the COP29 Presidency is to establish a clear and ambitious “New Collective Quantified Goal” (NCQG) for climate financing, addressing the needs of all parties.
In an interview with EFE, a leading Spanish news agency, Soltanov stressed the importance of advancing “collectively on all pillars of the Paris Agreement,” with climate financing being central. The NCQG, agreed upon in 2015, needs to be defined by 2025 to support the poorest countries in their climate change efforts.
Soltanov’s strategy includes seeking political direction to resolve disagreements and accelerate summit preparations through meetings among the parties.
“We must focus on high-level discussions and intensify political engagement. We appreciate the time and commitment of our new ministerial peers in the NCQG to support us,” he told EFE.
Azerbaijan, like the United Arab Emirates, which hosted COP28, is an oil and gas producer, and the choice of venue has again drawn criticism from several climate organisations.
However, Soltanov argued for an inclusive process where all parties collaborate, stating, “We do not believe anyone, especially global energy experts, should be excluded.”
Referencing the UAE consensus from COP28, which emphasised the need for a just and orderly transition, Soltanov noted that all countries start from different points, and the requirements to decarbonise, build a renewable system, and ensure a just transition will differ according to national circumstances.
He also pointed out that the Intergovernmental Panel on Climate Change (IPCC) recognises a role for hydrocarbons in the global economy in its temperature and zero-carbon emissions calculations.
Optimistic about COP29, which runs from November 11 to 22, Soltanov views it as a litmus test for global cooperation and climate action. “Azerbaijan will spare no effort to unite the parties,” he said, emphasising the country’s commitment to hosting COP29 inclusively and transparently, aligned with the Convention and the Paris Agreement.
To advance this commitment, Azerbaijan will present two documents before COP29: a Transparency Report and the “Nationally Determined Contribution” (NDC), aligning the country with efforts to curb climate change. Soltanov, a former Deputy Minister of Energy, emphasised the need for shared and ambitious efforts, warning that “the margin for action is shrinking.”
He concluded: “There is still time to address the climate crisis effectively with immediate and sustained efforts. We need everyone to commit in good faith to act quickly.”
The Nigerian Economic Summit Group (NESG) has stressed the importance of conducting National Housing and Population Census in the attainment of the UN Sustainable Development Goals (SDGs).
Chairman of the National Population Commission (NPC), Alhaji Nasir Kwarra
The group’s Chief Executive Officer (CEO), Dr Tayo Aduloju, stressed the importance in an interview on Saturday, August 3, 2024, in Abuja.
Aduloju said reliable and timely population and demographic data are essential in monitoring SDG progress.
He added that Nigeria’s performance in the 2024 Sustainable Development Report highlights substantial challenges across various SDGs, with an overall score of 54.6, ranking 146th out of 167 countries.
He said: “Key indicators reveal high levels of poverty, undernourishment and child stunting, along with concerning health outcomes, limited education access and gender inequality.
“The SDGs report shows that nearly half the population live in poverty (31.4 per cent below $2.15 per day and 49.0 per cent below $3.65 per day).
“High level of undernourishment (15.9 per cent), stunting in children (31.5 per cent), concerning health outcomes such as maternal mortality ratio of 1,047 per 100,000 live births and a life expectancy of just 52.7 years.
“Education access is limited, with a net primary enrollment rate of 64.4 per cent, and gender equality remains a challenge, with only 3.9 per cent of parliamentary seats held by women.”
The CEO explained that census could potentially provide reliable data for about 90 SDG indicators, either directly or through population projections based on data.
He added that Nigeria’s outdated census data hindered its ability to monitor and achieve goals effectively, impeding overall progress toward sustainable development.
He noted that “another critical aspect to consider is gender and social inclusion. The lack of accurate census data affects efforts to promote gender equality (SDG 5) and social inclusion.
“Understanding population distribution by gender is crucial to addressing gender disparities, and without accurate data, efforts may be misdirected or insufficient.
“The SDGs’ emphasis on ‘leaving no one behind’ and accurate demographic data are essential to ensuring that vulnerable groups such as persons with disabilities, migrants and those living in slums are adequately represented in development plans and policies.
“Without up-to-date data, efforts to achieve inclusive and equitable development are undermined.”
Aduloju, therefore, noted that conducting census is crucial for Nigeria, adding that timely and successful completion of the census would address many challenges.
Nigeria conducted its last census in 2006.
According to the recommendations of the International Conference on Population and Development (ICPD) Programme of Action (PoA), another census should have been conducted in 2016.
In 2023, former President Muhammadu Buhari approved the census to be held from May 3 to May 7, but it was postponed, with the expectation that a new date would be set by President Bola Tinubu.
However, the Chairman of the National Population Commission (NPC), Alhaji Nasir Kwarra, said efforts are ongoing to ensure the census is conducted soon.
Kwarra said the commission is prepared and just waiting for presidential approval to conduct the headcount.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a fire incident on Akaso 4 Wellhead, operated by the NNPC 18 Operating Limited.
Mrs Olaide Shonola, Head, Public Affairs and Corporate Communication, NUPRC, made this known in a statement on Saturday, August 3, 2024.
Shonola said that the NNPC 18 Operating Limited had deployed a rapid response emergency team to contain the fire outbreak which occurred on Friday at 11:12 p.m.
The Akaso Well is in OML 18 (former Eroton). It is an offshore Well in Rivers.
“The incident, which has extended along the adjacent riverbank, is reported to have occurred on Aug. 2.
“The company has confirmed that a rapid response emergency team has been deployed to secure the well, address the incident and isolate affected area.
“The team will be using spill containment materials to prevent further spread and contamination of the environment.
“They are also planning to start the oil recovery process immediately,” she said.
Shonola said that the company had also deployed a Naval Houseboat within the incident area and established community surveillance to monitor the situation.
She said that though the cause of the incident was not yet known, a joint investigation with relevant stakeholders was being planned to determine the cause and the area of impact.
“It is important to note that the Akaso Well 4 has been out of operation for a significant period of time.
“As a reminder, the fire at the company’s Alakiri Well 9T, which started on February 23, 2024, is still raging.
“The contractor engaged to deal with the situation, Kenyon International West Africa Company, is facing some challenges in putting out the fire,” she said.
She further said that NUPRC was planning to deploy the total oxygen extraction method instead of the heat extraction method currently being deployed.
According to her, the equipment fabrication is 100 per cent complete and the contractor is awaiting mobilisation from the well owners while contractor personnel are on-site monitoring the incident.
She said that a meeting with the management of NNPC 18 Operating Limited has been planned to review the safety and integrity of its operations.
Malawi received an $11.2 million drought insurance payout from the African Risk Capacity (ARC) on Friday, August 2, 2024, bolstering the country’s ability to respond to climate-related disasters.
The Malawi Government receiving the $11.2 million cheque, with the President in the middle
President Lazarus Chakwera, speaking at the Mzuzu State Lodge, emphasised the need for collaboration in addressing climate challenges.
“There’s need to support people and strengthen food production in the country,” Chakwera said.
Finance Minister, Simplex Chithyola Banda, praised the ARC initiative, assuring citizens of their safety.
“This means a lot to the country in such a way that the money will help the country to build community resilience in responding to risks and natural disasters,” Banda said.
Agriculture Minister Sam Kawale urged farmers to insure their farms against emergencies.
“Farmers should insure as people with cars and other things do because by the end of the day farmers will be helped,” Kawale said in an interview.
UNHCR Representative, Kouame Cyr Modeste, commended Malawi’s commitment to disaster risk management and its generosity in hosting refugees.
“The government’s proactive steps in securing funds for the ARC drought insurance policy and its dedication to mitigating the impacts of extreme weather events are commendable,” Modeste said.
The payout is expected to strengthen Malawi’s resilience against future climate-related challenges, though specific allocation plans were not immediately announced.
“The new regulation for mercury by the European Union (EU) is a significant development in the global effort to reduce and eliminate mercury pollution. It highlights the importance of international and regional cooperation in addressing the human health and environmental impacts of this toxic chemical.”
European Commission. Photo credit: Mark Renders/Getty Images
This was the statement of environmental NGO, BAN Toxics, after the EU’s Revised Regulation for Mercury entered into force on July 30, 2024. The new law prohibits the last intentional uses of mercury by EU member states, including the use and export of dental amalgam, and the manufacture, import, and export of certain categories of mercury-containing lamps.
“Illegal transboundary trade of mercury and mercury-added products remains a major challenge for Philippine regulatory agencies. The influx of imported mercury-containing cosmetic products, for example, continues unabated despite existing regulatory frameworks at both the national and global regional levels.
“We need international collaboration arrangements, which could include information exchange, market surveillance, and technical or financial assistance to enhance capabilities for detecting illegal products. Such collaboration may also help address the entry into the country of mercury-added products that are purchased via e-commerce platforms such as Lazada and Shopee,” said Thony Dizon, BAN Toxics Advocacy and Campaign Officer.
Mercury is a highly toxic chemical that can cause irreparable damage to the nervous system. It is indestructible which means its emissions and releases can bioaccumulate and biomagnify, posing a significant threat to human health and the environment.
According to Dizon, the Philippines has made significant strides in strengthening regulations to reduce mercury use in the country. In 2019, the Department of Environment and Natural Resources (DENR) issued Administrative Order 2019-20, or the Revised Chemical Control Order for Mercury and Mercury Compounds. The Department of Health (DOH) also issued Administrative Order No. 2020-0020, or the “Guidelines on the Phase-out of Mercury Use in Dental Restorative Procedures.”
Additionally, the Food and Drug Administration (FDA) issued FDA Circular No. 2022-003, which bans all mercury-added thermometers, sphygmomanometers, dental amalgam capsules, and liquid mercury for use in dental restorative purposes.
In 2020, the Philippines ratified the Minamata Convention on Mercury, a legally binding global treaty designed to reduce and eliminate mercury emissions and releases into the environment.
BAN Toxics has recently submitted information to the Minamata Convention Secretariat which cited illegal shipments and unregulated online trade as the main challenges in addressing mercury containing cosmetics.
“Our country is always at the receiving end of this illegal transboundary trade since we are not the source of these products. But if more cross-border agreements or mechanisms are in place, this might reduce illegal production and trade of mercury and mercury-added products,” the group said.
The revised Regulation on Mercury prohibits the last intentional remaining uses of mercury in the EU and contributes to the Zero Pollution objective of a toxic-free environment. It represents a breakthrough in the safeguarding of human health, with clear environmental benefits.
The new rules prohibit the use and export of dental amalgam by January 1, 2025. Member States requiring more time to adapt their national healthcare system get a limited and temporary derogation for the use, manufacture, and import of dental amalgam (until June 30, 2026). Eventually, dental filling materials will soon be free from mercury, except for specific medical needs and when deemed strictly necessary by a medical practitioner.
Under the revised regulation, Member States will have to stop manufacturing, importing and exporting certain categories of mercury-containing lamps (as of December 31, 2025, or December 31, 2026, depending on the lamp category). These will be replaced by alternatives like LEDs, which are less toxic and more energy efficient.
The African Development Bank (AfDB) has signed a $20 million equity investment in the African Infrastructure Investment Fund 4 (AIIF4).
AfDB President, Dr. Akinwumi A. Adesina
The AfDB, in a statement, said the deal, signed on July 31, 2024, was to reinforce the Bank’s commitment to fostering private sector development and boosting infrastructure across the continent.
The statement said that the investment, approved by AfDB Group’s Board of Directors on June 19, would be financed from the Bank’s ordinary capital resources designated for private sector operations.
According to the statement, Africa’s infrastructure sector remains a significant investment opportunity, driven by substantial demand deficits and a scarcity of capital.
With rapid urbanisation and increasing local purchasing power, the continent requires between $130 and $170 billion annually, in infrastructure spending.
There is currently a substantial yearly financing gap of $68 to $108 billion, on the continent.
“AIIF4, with a 13-year term and a five-year investment period, has completed its first closing at $230 million, attracting international investors.
“To date, the Fund has raised more than the $500 million target, with the final close expected to be concluded in Q3 2024.
“The fund is projected to deliver significant development outcomes, particularly in private sector growth and household income improvement,” it said.
According to the statement, the Bank assesses the likelihood of achieving these outcomes on time as High.
It said the investment complemented the Bank’s “High 5” operational priorities, along with its 10-year Strategy (2024-2033), relating to accelerating and scaling up its operations.
It said the fund pipeline, also aligned with the Private Sector Development Strategy (2021-2025), the Climate Change and Green Growth Framework, and the Strategy for addressing Fragility and Building Resilience (2022-2026).
The statement quoted Mike Salawou, the bank’s Director for Infrastructure, Cities and Urban Development, as expressing AfDB’s commitment to infrastructure development on the continent.
“The bank is reinforcing its commitment and support to developing infrastructure in Africa to private sector participation.
“This is done by providing this scarce private equity investment to African Infrastructure Investment Managers (AIIM) to bridge the infrastructure financing gap in Africa.
“Therefore, our confidence in AIIM as a fund manager is renewed and strong, given its proven expertise and track record in driving impactful investments,” Salawou said.
The AIIM has transacted and identified a robust pipeline of investment opportunities in renewable energy, digital infrastructure, and ports and logistics assets in South Africa, Kenya, and Morocco.
They are also actively screening deals in Egypt, Côte d’Ivoire and Senegal, among others.
The AIIF4 investment underscores the increasing role of private equity in addressing Africa’s infrastructure needs and highlights the continent’s potential for sustainable economic growth.
An environmentalist, Dr Nnimmo Bassey, has berated the International Oil Companies (IOCs) over the sustained degradation of the Niger Delta region.
Nnimmo Bassey
Bassey, who is the Director, Health of Mother Earth Foundation (HOMEF), said this at a two-day programme on Friday, August 2, 2024, at the Niger Delta University, Amassoma, Bayelsa State.
The environmentalist, who described the poor state of the region as a “privatised and sacrificed zone”, appealed to the Federal Government to stop the pollution, which is said to have reached unimaginable level.
Bassey, a renowned environmentalist who holds a national honour of Member of the Order of Federal Republic (MFR), spoke on the recovering of the region from the IOCs.
According to him, the current focus is the sacrifice zones in the world, how to stop and eliminate the pollution.
“My take or initial conclusion of what we are going to do today and tomorrow is that the Niger Delta is a privatised and sacrifice zone.
“The gold mines of South Africa, the gas fields, the phosphate fields of Togo and Western Sahara. These are all sacrifices.
“The lands are sacrificed, the people are sacrificed and all the revenue goes to the corrupt leaders,” he said.
According to him, our creeks, rivers, streams, coastal areas, swamps have all been privatised by oil companies and the Nigerian government agencies.
“How has this been done? 66, 68 years of oil extraction in commercial quantities in the Niger Delta have seen the complete pollution of our water bodies by oil spills.
The environmentalist noted that there were high concentration of benzene in drinking water in the region and spills had gone more than five-metre deep into the soil as the reckless extractive activities continued.
Dr Charles Oyibo, the university’s Head of Department, Environmental Management, said that he hoped the students had been better informed by the lecture.
Oyibo said the collaboration with HOMEF had been an eye opener in grappling with the issues of the environment.
