The drive by the Management of the Nigerian National Petroleum Corporation (NNPC) to boost in-country refining capacity was bolstered on Tuesday with the signing of the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the rehabilitation of the 210,000 barrels per day capacity Port Harcourt Refinery in Alesa-Eleme, Rivers State.
The rehabilitation project which has a completion timeline of between 18 and 44 months under a three-phase arrangement was awarded to Milan based Tecnimont SpA at a lump sum contract price of US$1.5 billion, inclusive of VAT and other statutory payments.
An elated Group Managing Director of the NNPC, Mallam Mele Kyari, described the PHRC rehabilitation project as a dream come true, noting that the project was in line with President Muhammadu Buhari’s promise to the Nigerian people to make the refineries work.
Mallam Kyari reiterated that in arriving at the choice of Tecnimont SpA, the Corporation embarked on a transparent tender process which can withstand any forensic audit, noting that NNPC was ready and open to answer any question pertaining to the project.
He assured that the same transparent process has been emplaced for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021.
The GMD explained that the rehabilitation exercise was very different from a routine Turn-Around Maintenance as it would entail a total retrofitting of the plant with major part and equipment replaced with new ones.
Providing further insight into the project, Managing Director of Port Harcourt Refining Company Limited, Engr. Ahmed Dikko, explained that Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon, while Phase 3 will focus on the start-up the refinery for operation, stressing that the entire work shall be delivered in 44 months from today.
In his remarks, Vice President, Sub-Saharan Africa Region of Tecnimont SpA, Davide Pelizzola, pledged the readiness of his company to work assiduously with the NNPC to comply with the terms and obligations of the contract.
The signing ceremony of the PHRC rehabilitation project was witnessed by the Nigeria Extractive Industries Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers NUPENG amongst others.
The Department of Petroleum Resources (DPR), has called on the federal government to subject the prices of Liquefied Petroleum Gas(LPG), otherwise known as cooking gas, to the market forces.
Sarki Auwalu, the Chief Executive Officer, (DPR), expressed the view that to achieve uninterrupted supply of gas, government should allow the forces of demand and supply to guide the pricing of the product.
The position of DPR aligns with a similar call by the Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mele Kyari who said the corporation could no longer bear the burden of sustaining the expensive subsidy regime on Premium Motor Spirit (PMS) and that its prices should be market- driven .
The positions of these two regulatory bodies in the Oil and Gas industry will no doubt put further pressure on Nigerians as this is sure to push up the prices of these essential products.
In his keynote address at the pre-summit conference on “Decade of Gas’, in Abuja, on Monday, Auwalu said the right and market-based pricing of gas was critical, as it would assure producers of returns on their investments.
He listed five critical levers for gas development, especially as Nigeria moves to leverage its abundant gas resources for national growth, diversification of the economy and utilization las the fuel for economic tansformation.
According to him, the levers include availability, accessibility, affordability, and acceptability, as well as deliverability.
He insisted that these were critical to utilising Nigeria’s proven gas reserves of 203 trillion cubic feet, TCF, for national development.
“Whereas references have been made to the other elements in this discussion, right pricing of gas is requiring particular attention to ensure security of gas supply and security of credible gas demand.
“This is because upstream gas producers must be assured that they will receive fair and equitable returns for their investments whereas, the price must be such that the end-users are able to pay for gas offtake in a reliable and consistent manner.
“Accordingly, the most robust and sustainable pricing mechanism is that which ‘let the market speak’ in a way that all costs are reflective of prevailing market conditions and for which the economic dynamics of demand and supply are allowed to interplay in an open, transparent, and free market environment.
“Thus, our drive as a nation should be early attainment to the ‘willing buyer; willing seller’ market status.
“Any transitional pricing arrangements, today, must be structured to quickly give way for market-led pricing regime and conditions,” he said.
Auwalu commended President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, for their outstanding leadership in deepening gas utilisation in Nigeria.
He muted that these efforts had culminated in the establishment of the National Gas Expansion Programme, National Gas Transportation Network Code and the National Gas Flare Commercialisation Programme.
Others are the ongoing construction of the ELPS-II, OB3 and AKK pipelines as critical backbone gas infrastructure required to improve gas deliverability and availability.
He also stated that government was working towards the expeditious passage of the Petroleum Industry Bill (PIB) which would enhance clarity in legislative, regulatory, fiscal, and administrative frameworks in the industry.
“This bill, when passed into law, will eliminate the uncertainties and bottlenecks associated with gas development in Nigeria and accelerate the growth of the Nigerian gas market to a fully developed and matured status.
“Specifically, on gas matters, the PIB provides for the following: promotion of dedicated gas exploration and development, gas terms, fiscal separation of gas as a commodity.
“It will also enhance the domestic gas delivery obligation, tariffing structure & methodology, open access regimes and revised gas pricing framework, to mention but a few,” Auwalu said.
The DPR he assured would continue to be an enabler and an opportunity provider in the oil and gas industry.
“Our focus remains the effective implementation of all policies and strategic programmes of government in an efficient manner that optimises the value of our petroleum resources for all stakeholders, all in overriding national interest,” he declared.
As the world transits to cleaner energy, the Nigerian National Petroleum Corporation (NNPC) has affirmed Nigeria’s preparedness to play a strategic role in the new global energy order.
The Group Managing Director of NNPC, Mallam Mele Kyari, made this submission at the Decade of Gas Pre-summit Conference which held Monday in Abuja, with the theme: Towards Gas-Powered Economy by 2030.
In an address of welcome at the event, Mallam Kyari stated that technology and innovation were facilitating a new global energy order aimed at decarbonizing the world and safeguarding the climate, stressing that renewable energy sources such as solar and wind which would be key components of the new energy mix were largely influenced by seasons and were non-transportable to demand centres where they are in short supply.
He contended that under the circumstances, natural gas, and by extension blue hydrogen, would be heavily depended upon as transition fuels to play a key role in the clean energy drive and would provide significant proportion of the global energy mix as well as guarantee feedstock to gas-based industries.
“Nigeria, under the visionary leadership of President Muhammadu Buhari, has committed huge resources to ensure that domestic gas infrastructure reach every corner of our country to deepen natural gas utilization, spur investment in power and gas-based industries, grow the economy and generate employment for millions of our young people,” Mallam Kyari informed.
According to him, Nigeria as a gas nation with over 203trillion standard cubic feet (tscf) of proven gas reserves is monetizing the huge gas resources spurred by numerous policy and industry interventions since 2016, culminating in the declaration of 2020 as the year of gas and progressing into the decade of gas from 2021.
Mallam Kyari stated that NNPC and its partners have embarked on a number of strategic projects to deepen delivery of gas to the domestic market and elevate the build-up of greater potentials for export.
“The completion of the Escravos-Lagos Pipeline System Phase 2 (ELPS II), commissioning of the Obiafu-Obrikom-Oben (OB3) Lot 2, the NPDC Oredo Gas Handling Facility, and the SEEPCO Gas Processing Plant can be easily cited, even without mentioning ongoing strategic backbone gas infrastructure projects such as the Ajaokuta-Kaduna-Kano (AKK) pipeline, the OB3 final hook-up, the Nigeria-Morroco pipeline and several other gas-based industries initiatives. All these will herald the sunrise of gas revolution in our country within the decade,” the GMD stated.
He noted that as part of the journey to make the Decade of Gas a reality, the Federal Government has also rolled out the Autogas initiative to provide alternative cleaner and cheaper transportation fuel to petrol, adding that the initiative has received huge support from the entire energy industry and gained tremendous traction.
He lauded President Muhammadu Buhari for his strategic foresight, leadership and support for the oil and gas industry, saying that the various strategic initiatives were geared towards transforming the Nigeria’s energy landscape.
The Nigerian National Petroleum Corporation (NNPC) has said it would maintain its current ex-depot price of Premium Motor Spirit (petrol) until the conclusion of ongoing engagement with the organized labour and other stakeholders.
Addressing newsmen in Abuja, the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said the Corporation, at the moment, was bearing the burden of importing refined petroleum products as the supplier of last resort to guarantee energy security for the nation.
Shedding more light on the recent interview by the Group Managing Director, Mallam Mele Kyari, at the State House, Dr. Obateru stated that the NNPC has no intention to preempt ongoing engagement with labour by unilaterally increasing the ex-depot price of petrol, even though the Corporation is bearing the burden of price differentials between the landing cost and pump price of petrol.
He said as a proactive organization, NNPC has made arrangements for robust stock of petroleum products in all its strategic depots across the country to keep the nation well supplied at all times.
Dr. Obateru advised petroleum products marketers not to engage in arbitrary price increase or hoarding of petrol so as not to disrupt the market.
He also urged motorists not to engage in panic buying, stressing that NNPC was committed to ensuring energy security for the country as the supplier of last resort.
He assured marketers and all other relevant stakeholders in the downstream sector of sustainable collaboration for the public interest.
Seplat Petroleum Development Company Plc, a leading Nigerian independent energy Company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has priced its offering of $650 million in aggregate principal amount of senior notes due 2026.
The Notes priced at a yield of 7.75%, is significantly lower than its $350 million debut issuance in 2018, which priced at a yield of 9.50% , with a coupon of 9.25%. The size represents, the largest ever Nigerian oil and gas bond issuance.
The offering was well oversubscribed with demand from 120 global investors from more than 20 countries resulting in a final overbook in excess of $1.1bn, which was 1.7 times book coverage. Orders came from high quality institutional investors with long term commitments to Seplat as well as new institutional investors. The transaction was well received in the market and traded above par post-pricing.
The transaction shows confidence by the international market in the Nigerian economy and the oil and gas sector in particular, with a number of the investors committing to the transaction based on the strong gas story of Seplat.
The Global Coordinators on the transaction are Citi, J.P. Morgan, Standard Bank and Standard Chartered Bank, with Natixis, Rand Merchant Bank and Société Générale acting as Joint Bookrunners and FCMB Capital Markets, Nedbank, United Bank for Africa and Zenith Bank Plc acting as Co-Managers.
NNPC Trade Surplus Increased 80.12% In December, As Petroleum Products Sales Hit ₦288.77billion.The Nigerian National Petroleum Corporation (NNPC) has announced an increase of 80.12% in trading surplus for the month of December 2020 which stands at ₦24.19billion compared to the ₦13.43billion surplus recorded in November 2020.
This is contained in the December 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR), and revealed in a press statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru.
Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.
According to the report, the operating revenue of the NNPC Group in December 2020 as compared to November 2020 increased by 33.44% or N137.00billion to stand at N546.65billion. Similarly, expenditure for the month increased by 27.54% or N112.81billion to stand at N522.47billion. The December 2020, expenditure as a proportion of revenue is 0.96 as against 0.97 in November 2020.
The report indicated that the 80.12% increase is due mainly to the significant rise in the profit of NNPC’s flagship Upstream entity, the Nigerian Petroleum Development Company (NPDC) amid improved market fundamentals and strong global demand for crude oil.
Other contributory factors to the robust trading surplus recorded in the month under review include the improved performance by the Nigerian Gas Marketing Company (NGMC), the Petroleum Products Marketing Company (PPMC), the National Engineering and Technical Company (NETCO) and Duke Oil Incorporated which recorded noticeable gains in their operations.
In the Downstream, 2.26billion litres of white products were sold and distributed by PPMC in the month of December 2020 compared to 1.72billion litres in the month of November 2020.
This comprised 2.254billion litres of petrol, translating to 72.72million litres/day, 11.40 million litres of Automotive Gas Oil (diesel) and 0.48 million litres of kerosene.
Total sale of white products for the period of December 2019 to December 2020 stood at 18.456billion litres and petrol accounted for 18.325billion litres or 99.29%.
In monetary terms, the volume translates to a value of ₦288.77billion recorded on the sale of white products by PPMC in the month of December 2020 compared to ₦226.08 billion sales in November 2020.
Total revenues generated from the sales of white products for the period December 2019 to December 2020 stood at ₦2.217triilion, where petrol contributed about 99.09% of the total sales with a value of ₦2.197trillion.
In December 2020, 43 pipeline points were vandalized representing about 18.60% increase from the 35 points recorded in November 2020. Mosimi Area accounted for 56% of the vandalized points while Kaduna Area and Port Harcourt accounted for the remaining 33% and 12% respectively.
In the Gas Sector, natural gas production in December 2020 stood at 213.34Billion Cubic Feet (BCF) translating to an average daily production of 6,881.83million standard cubic feet of gas per day (mmscfd).
The daily average natural gas supply to power plants increased by 3.52% to 816mmscfd, equivalent to power generation of 3,445MW.
Out of the 208.61BCF of gas supplied in December 2020, a total of 146.72BCF was commercialized; consisting of 42.90BCF and 103.82BCF for the domestic and export market respectively.
This translates to a total supply of 1,383.93mmscfd of gas to the domestic market and 3,349.00mmscfd of gas supplied to the export market for the month.
This implies that 70.33% of the average daily gas produced was commercialized while the balance of 29.67% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 6.80% for the month under review (i.e. 457.25 mmscfd) compared to average gas flare rate of 7.15% (i.e. 538.59 mmscfd) for the period December 2019 to December 2020.
The 65th edition of the NNPC MFOR highlights the Corporation’s activities for the period of December 2019 to December 2020.
In line with the Corporation’s commitment of becoming more accountable and transparent, the Corporation has continued to sustain effective communication with stakeholders through the MFOR which is published on Corporation’s website, national dailies, as well as independent online news portals.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has described the recently approved rehabilitation exercise of the 210,000 barrels per day capacity Port Harcourt Refinery as a worthy undertaking embarked upon after diligent consideration and in strict adherence to industry best standards.
Speaking to reporters at the NNPC Towers, Abuja, on Monday, Kyari stated that in arriving at the decision to award the Engineering, Procurement, and Construction (EPC) contract to Tecnimont spA. of Milan, Italy, after a competitive bidding process, the Corporation observed an unprecedented level of transparency and due diligence which consists of a governance structure and tender process that included key independent external stakeholders: Ministry of Finance, Nigeria Extractive Industry Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
He explained that in terms of outlook and job scoping, the rehabilitation project is different from the routine Turn-Around Maintenance which was last carried out on the Port Harcourt Refinery 21 years ago.
Kyari explained that unlike TAM which should normally be executed every two years but was neglected for many years, the rehabilitation project would involve comprehensive repairs of the plant with significant replacement of critical equipment and long lead items to ensure the integrity of the plant on the long term.
On the financing for the project, the NNPC helmsman said that African Export-Import Bank (Afreximbank), as a reliable lender, has agreed to raise $1billion towards the rehabilitation project. He argued that a credible and capable lender like Afreximbank would never agree to put such huge amount of money where there would be no value.
The GMD dismissed the contention by critics that the $1.5bn approved for the rehabilitation of the Port Harcourt Refinery was enough to build a brand new refinery, stressing that a new refinery would cost the nation between $7bn and $12bn and that such funds were not available now.
He noted that having learnt from the failure of previous models, NNPC would adopt the Operate & Maintain (O&M) Model as a strategy in the execution of the rehabilitation project, which is also one of the key requirements by the lender.
On the choice of Tecnimont SpA as the contractor to handle the project, he explained that the company is a representative of the Original Refinery Builder (ORB) and is one of the top 10 global Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) Contractor in refineries, adding that it has requisite experience in similar jobs across the globe.
He said the National Engineering and Technical Company (NETCO) and Kellogg, Brown & Root (KBR) and are acting as NNPC Engineering Consultants to the project with support from Wood Mackenzie to ensure that the project is delivered on schedule, within budget and at the right quality.
Commenting on the propriety of spending so much to repair an old refinery when it could easily be sold off, the GMD explained that the refinery is a strategic national asset which should not be sold off just like that.
A total of 143 comprising 100 secondary school teachers and 43 Chief Inspectors of Education (CIE) from Edo and Delta states were proud recipients of Seplat Teachers Empowerment Programme (STEP) Certificates, having concluded their three-month training on the programme.
The STEP initiative is an educational programme created by the leading indigenous energy company, Seplat Petroleum Development Company Plc and its partners, the Nigerian Petroleum Development Company (NPDC), to improve the country’s standard of education, particularly for host States.
Over the years, SEPLAT has made significant impact with critical initiatives focused on providing quality education for states and the country of our operations.
To consolidate its achievements on Sustainability Development Goal 4 for inclusive and equitable quality education, the Company introduced STEP (Seplat Teachers Empowerment Programme), a customized training programme for secondary school teachers. STEP is a three-month intensive training programme that equips teachers with tools to teach STEAM (Science, Technology, Engineering, Arts & Mathematics).
In November 2020, the 143 certificate awardees from Delta and Edo states began their training with an initial five-day residential retreat. After that, they continued training via the E-Learning platform developed for the programme.
To commemorate the certificate presentation ceremony held on March 19, 2021, Seplat hosted an Education Round Table to further explore the right policy formulation for quality education. The theme for the round table was ‘Provision of Quality Education: A National Priority’
The Seplat Certificate Awards Ceremony took place on March 19, 2021, in Benin City, Edo State, alongside the Seplat Education Roundtable, which had educational experts and professionals in a highly engaging panel session moderated by Professor Pat Utomi. The keynote speaker for the day was the former Edo State Commissioner of Education, Prof. Ngozi Osarenren
The panellists comprised the Director, External Affairs and Communications, Seplat, Dr Chioma Nwachuku; Professor of Guidance and Counselling at Ambrose Alli University, Oyaziwo Aluede; Director, Centre for Gender Security Studies and Youth Advancement, University of Abuja, Prof. Ocholi Ekundayo Fehintola; Professor of Educational Management, University of Ibadan, Benedict Oyovwevotu Emunemu and the Principal Managing Partner, Teach Smart Eduservices, Sola Okunkpolor.
The specially designed programme provided training on teaching applications for Science, Technology, Engineering, Arts and Mathematics (STEAM) and leadership and self-improvement. The testimonies of recipients of the maiden STEP highlighted the numerous benefits they gained from the programme, including enhancing their creative thinking, allowing for higher student engagement, and offering a well-rounded education.
The Edo State Governor, His Excellency Godwin Obaseki represented by Permanent Secretary, Ministry of Education, Edo State, Mrs. Stella-Marris Imasuen and many other government officials graced the event. In attendance also were traditional chiefs, community leaders and other stakeholders.
Roger Brown, the Chief Executive Officer, Seplat, represented by Dr. Chioma Nwachuku, Director of External Affairs and Communications, Seplat said: “Over the years, Seplat has invested significantly in various educational Corporate Social Responsibility (CSR) programmes, to support the United Nations Sustainable Development Goals (SDGs) Number 4, which speaks to education for all.
He further affirmed that “at Seplat, we strongly believe that education is the bedrock for national development and our STEP deployment aims to enhance teachers’ competencies and empower them with the knowledge and skills to implement STEAM education, amongst other benefits. Seplat is committed to providing this programme annually because of its relevance and positive multiplier effects on boosting quality education.”
Dr. Chioma Nwachuku, in her remarks, said: “Seplat is playing an invaluable role in enhancing the quality of education with the many educational programmes offered through the Company’s CSR initiatives. With the STEP programme, the Company now has a full bouquet of programmes impacting the entire education value chain. Seplat educational programmes now cover improving school infrastructure, enhancing students’ academic performance, and building the skills and competencies of teachers, amongst others.
“Teachers are the critical success factor for the implementation of STEAM model; thus Seplat has embarked on empowering teachers with the STEAM knowledge and skillsets to enable them to deliver”, she added.
Prof. Osarenren, in her keynote, said what Seplat has done cannot be quantified as it will continue to drive critical thinking and generate problem-solving skills. She, therefore, urged the recipients of the programme to utilize the acquired knowledge to bear positive impacts on their students whilst remaining change agents, mentors and character builders, adding that: “Nobody can make you inferior without their consent.”
Prof. Utomi, while commenting on the state of education in the country, said society must appreciate and show esteem for teachers, adding that the impacts teachers make in the lives of students and community remain immeasurable.
According to Utomi, teachers need to continue to exhibit a strong passion for their profession with the undying commitment to sustaining the future generation. Misery amongst the people could only be effectively addressed by quality education.
In the same vein, Prof. Aluede said education is critical to combating poverty, and qualified teachers are the genuine agents needed to actualize this in Nigeria. He, therefore, stressed the need for the right curriculum, the requisite skill sets and effective partnership among stakeholders, as is being exhibited by Seplat.
Also speaking, Prof. Emunemu urged everyone who needed to become a teacher to acquire the minimum qualifications, pointing out that failure to do so would only result in wrong output from the sector.
Sola Okunkpolor, in her submission, advocated for a robust database in the educational sector to allow for good planning, monitoring and decision making. “Continuous data mining process is needed to enable us to know how many children are in school, how many are graduating, how many are progressive, how many are being engaged upon leaving school, and so on,” Okunkpolor added.
Dr Chioma Nwachuku cited the high numbers of out-of-school children in the country, the poor budgetary allocation to education, misplaced priorities leading to value erosion in society as significant setbacks that must be addressed for an improved standard of education. She noted that technology advances must be applied appropriately to schooling, as new competencies could become game-changers for the country and the Nigerian peopl
Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company has expressed strong commitment to deploying resources and expertise to create and deliver sustainable value to meet the expectations of its various stakeholders through a responsible approach in the management of the Company’s Environment Social, and Governance (ESG) imperatives.
lListed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), the company believes in driving operational excellence in optimizing benefits to society and minimizing the negative impacts of its activities whilst making significant contributions towards sustainable development and pursuing continuous improvements in its Key Performance Indicators (KPIs) to ensure a better world without losing focus on the future generations.
Mr. Roger Brown, Chief Executive Office at SEPLAT said this at the Facts Behind the Sustainability Report presentation made to the Nigerian Stock exchange (NSE) on Tuesday in a virtual session.
According to Brown, SEPLAT’s sustainability policy is based on the following principles: Commitment to transparent and complete disclosure of our ESG performance; encouraging responsible use of resources – energy, water and others; implementing human rights and gender equality; needs assessment of stakeholders to identify appropriate solutions; considering natural and cultural circumstances of SEPLAT’s host communities in the implementation of CSR initiatives; and setting science-based targets to deliver on environmental footprint.
In addition, the SEPLAT CEO added: “We adopt an inclusive stakeholder management approach; integrate sustainability into our core business model and strategy; embed Sustainability concept and practice companywide; operate the highest standard of corporate governance; leverage on stakeholder engagement in determining materiality; and exhibit a strong belief in our shared Value philosophy.”
He noted that the Company is strongly driving Nigeria’s transition to gas, delivering significant environmental, economic and social benefits that support United Nations Sustainable Development Goals.
On SEPLAT’s response to Climate Change, he said the Company is strongly adhering to its flare out campaign to reduce carbon footprint, and has gone ahead to establish a science-based assessment of our Greenhouse Gases emissions and reporting, adding that SEPLAT is currently investing in new infrastructure and R&D to help capture some of the emissions not previously reported.
Brown explained: “We are developing a Carbon Calculator for continuous sustainable deployment to highlight the most negative carbon emission activities. Our investments in gas at Oben, Sapele and ANOH is aimed at reducing GHG emissions.
“SEPLAT has created a new energy group to manage our midstream gas business and explore the adoption of renewable energy.”
According to him, SEPLAT’s operations impact a wide range of stakeholders; as the Company has continued to deploy proactive and effective stakeholder engagement framework, identify and classify stakeholders and their expectations, build mutually beneficial relationship with stakeholders, engage its stakeholders regularly and consistently, and deliver consistently on our Global Memorandum of Understanding (GMoU) commitments.
He explained that SEPLAT has invested extensively on development of local suppliers, of which over 98 per cent of materials are sourced from Nigeria; adding that: “We have a deliberate policy of encouraging local contractors in the award of some jobs. The Company takes the issue of local content delivery seriously.”
Over the years, SEPLAT has: improved economic empowerment of women and youths with customised empowerment programme; sustained skills acquisition program for youths in its communities whilst creating jobs and developing local suppliers. The Company has also improved access to quality education through customized CSR programmes, improved community infrastructure development, engaged 534 employees in its Nigerian and UK locations.
In his address, Oscar N. Onyema, the NSE Chief Executive Officer, congratulated SEPLAT CEO and the Company for the robust achievements and strides in the sustainability journey.
The NSE CEO who urged companies to learn from SEPLAT, said reporting sustainability could help organisations create a sustainable future.
Onyema noted that there is a recognized need for enhanced levels of corporate transparency on Environment, Social and Governance (ESG), and as an exchange “we are well positioned to encourage and even require listed companies to produce better sustainability reports that are issued consistently and with comparable information.”
On governance, Brown said SEPLAT operates with the highest standard of corporate governance, with the Board oversight of all sustainability issues and the CSR Board sub-committee having direct oversight of sustainability issues. This is in strict compliance with SEPLAT’s corporate governance policy and companywide compliance with the Code of Business Conduct.
Also speaking, the Divisional Head, Trading Business at the NSE, Jude Chiemeka, said sustainability is a journey and various companies are in their different stages of achievement and reporting.
He said the NSE will continue to promote global best practices as is seen in sustainability reporting, whilst also encouraging companies to do likewise.
The SEPLAT CEO explained: “We respect rights of employees, community people and their culture. We maintain a non-discriminatory posture in recruitment devoid of gender, religion, tribe or other such considerations, and adhere to national and international labour laws and protocols.”
Commenting on the Company’s adherence to best practices, Brown said: “We adhere to relevant international standards and protocols such as the United Nations Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, International Covenant on Economic, Social, and Cultural Rights, Convention on the Elimination of all forms of Discrimination Against, International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, Board decision from inception on complete and transparent disclosure annually via Sustainability Report, Creation of a new function of Research & Sustainability Department to focus on ESG monitoring and reporting.”
The Nigerian National Petroleum Corporation (NNPC) has called for a legislative framework with clear fiscal terms in order to tap the full potential of the gas resources in the nation’s deepwater acreages.
Group Managing Director of NNPC, Mallam Mele Kyari, made the call at a one-day public hearing on “Inclusion of Gas Terms in Production Sharing Contracts (PSCs)” organized by the House of Representatives Joint Committee on Gas Resources, Petroleum Resources (Upstream and Downstream).
A press statement by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the GMD as saying that investors needed clarity on fiscal terms to be encouraged to commit their capital for gas development projects.
He stated that a functional legislative framework that provides a clear sight on how investors can recoup their capital on investment and make gains is what the Petroleum Industry Bill was all about, adding that the passage of the Bill would help resolve issues of fiscal terms in the Production Sharing Contracts (PSC).
He explained that the PSC agreements were focused mainly on crude oil production leaving the gas development component to the discretion of the parties thus making the provision in PSC for development of gas very weak.
“The PSC simply says the parties can sit down and agree on a framework for monetizing the gas on terms that are mutually acceptable,” he noted, stressing that a gas pricing mechanism was urgently needed to drive gas development.
He noted that the Ministry of Petroleum Resources under the leadership of the Minister of State for Petroleum Resources, Chief Timipre Sylva, was aggressively driving gas pricing policy as part of the Federal Government’s gas commercialization initiative.
Meanwhile, Speaker of the House of Representative, Rt. Hon. Femi Gbajabiamila, had earlier said that the Joint Committee on Gas and Petroleum Resources was set up in November 2019 to help resolve issues hindering the efficient development and utilization of the abundant natural resources in the country.
He explained rhat the public hearing was convened to enable the Committee collate the views of stakeholders for a thorough review of the statutes.
In his address, the Chairman of the Joint Committee, Hon. Nicholas Mutu, listed the mandate of the Committee to include: working with stakeholders to review the existing PSCs with a view to accommodating fiscal terms for gas; liaising with the NNPC, DPR and other relevant agencies to determine the current situation in the gas sector with the aim of proffering solutions to attract investors and grow the economy, and providing amendment to current PSCs for further legislative action.
The public hearing attracted stakeholders in the oil and gas sector including public institutions, local and international oil companies and civil society organizations