Boosting Nigeria’s Energy Sector: New Opportunities and Initiatives
President Bola Tinubu has officially authorized the commencement of a new bid round for the sale of additional oil and gas fields that have been left dormant by international oil companies (IOCs) for over a decade. The bid exercise is set to commence in the near future, as announced by the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, during a tour of Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State.
This recent bid round follows the previous sale of 57 marginal oilfields in 2020, a process that was concluded last year. However, many of the awardees have faced challenges in moving to the site for the development of their assets, primarily due to funding and regulatory obstacles.
This new round of bidding, exclusively reserved for Nigerian companies, is aimed at enhancing local participation in the oil and gas exploration and production sector. It is anticipated that this initiative will result in an increase in Nigeria’s oil and gas production, boost revenue, create employment opportunities, and contribute to the development of host communities.
Senator Lokpobiri has expressed gratitude towards Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) for their support in the federal government’s efforts to improve domestic refining capacity. He has underscored the significance of modular refineries in addressing the country’s energy challenges while larger refineries undergo full rehabilitation.
Furthermore, the minister has commended Waltersmith Group and urged other companies with modular refinery licenses to make intentional investments. He has cautioned that marginal field allocations without the necessary investments are at risk of cancellation.
Mr. Simbi Wabote, the Executive Secretary of NCDMB, has elaborated on the Board’s decision to participate as an equity holder in Waltersmith, citing the company’s robust corporate governance and emphasizing NCDMB’s role as a catalyst for Nigeria’s industrialization.
Dr. Olasupo Olusi, the Managing Director of Bank of Industry Limited, has reaffirmed the commitment to supporting modular refineries in addressing economic challenges in Nigeria. He has revealed that the institution is in advanced discussions with NCDMB and Waltersmith aimed at promoting local content production and managing inflation.
Mr. Abdulrasaq Isa, the President and Group Chief Executive Officer of Waltersmith Petroman Oil Limited, has disclosed plans to expand the processing plant’s capacity from 5,000 to 40,000 barrels per stream day. The refinery has already supplied 600 million liters of petroleum products to the Nigerian market since its commissioning in 2020.
In addition, the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Oil Producers Trade Section (OPTS) have coalesced in a forum aimed at strengthening companies’ participation in enhancing transparency and accountability in the nation’s oil, gas, and solid minerals sectors. The forum was attended by representatives from Oando Plc, Platform Petroleum, ND Western, the National President of the Miners Association of Nigeria, and others.
Dr. Orji Ogbonnaya, the Executive Secretary and Chief Executive Officer of NEITI, has emphasized the forum’s role in aiding the country and operating companies in complying with the global Extractive Industries Transparency Initiative (EITI). He has underscored the importance of companies’ involvement in EITI’s activities and its impact on their corporate reputation.
The forum aims to facilitate open communication between NEITI and companies, providing a platform for companies to scrutinize NEITI’s work and seek clarifications without formal letters. Mr. Gwueke Ajaifia, the Executive Director of OPTS, has stressed the importance of reaching out to industry members to reaffirm their commitment to the forum.
NEITI’s role in promoting transparency and preventing corruption in Nigeria’s extractive resources sector has been acknowledged. The significant contribution of the oil and gas industry to Nigeria’s economy was highlighted, with a commitment to make the necessary financial contributions to unite the industry and achieve transparency goals.
Mrs. Obiageli Onuorah, the Director of Communications at NEITI, has underscored the role of EITI in fostering confidence between host communities, operators, and the government. This confidence ultimately aids in the transparent management of revenues from the sector.
