The Nigerian National Petroleum Company Limited (NNPC Ltd) has sacked the managing directors of the three state-owned refineries.
The company also directed management staff with less than a year to retirement to proceed on exit.
A source familiar with the matter told PREMIUM TIMES Tuesday night that the Managing Director of the Port Harcourt Refining Company Limited (PHRC), Ibrahim Onoja; the Managing Director of Warri Refining and Petrochemical Company Limited (WRPC), Efifia Chu, and the Managing Director of Kaduna Refining and Petrochemical Company (KRPC), Mustafa Sugungun, have been removed.
“Replacements for their roles have yet to be officially announced. Bala Wunti, the former Chief Upstream Investment Officer at the National Petroleum Investment Management Services (NAPIMS), who was recently assigned the Chief Health, Safety, and Environment Officer at NNPC Ltd and Lawal Sade, the chief compliance officer and former managing director of NNPC Trading were affected,” a top official of the company told this newspaper.
He said the removals were part of a broader organisational shake-up, not a targeted effort to oust supporters of the previous Group Chief Executive Officer (GCEO) of the company.
Earlier in the month, President Bola Tinubu sacked the board of the NNPC Ltd, including its GCEO, Mele Kyari, and board chairperson Pius Akinyelure.
The president also approved Bayo Ojulari as the new GCEO of the NNPC and Ahmadu Kida as non-executive chairman.
NNPC also announced the appointment of a new 8-member senior management team.
The company at the time said the appointments take immediate effect, noting that the announcement follows the recent appointment of Mr Ojulari and the Board of Directors.
When PREMIUM TIMES contacted the NNPC Ltd spokesperson, Olufemi Soneye, he did not respond to calls and a text message as of press time.
By Mary Izuaka, Premium Times
Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Wednesday, April 30, 2025
Friday, April 18, 2025
Nigerian navy navy shuts down seven illegal refining sites in Delta
In support of ongoing efforts to boost Nigeria’s daily crude oil production, Nigerian Navy personnel attached to Forward Operating Base (FOB) ESCRAVOS have continued to sustain the fight against crude oil theft, pipeline vandalism, and other acts of economic sabotage in the Niger Delta region.
Specifically, on 29 March 2025, personnel of FOB ESCRAVOS discovered and deactivated three illegal refining sites at Obodo Omadino, Warri South West Local Government Area of Delta State.
The sites contained approximately 1,070 litres of stolen crude oil and 960 litres of illegally refined Automotive Gas Oil (AGO), concealed in two ovens, 19 dug-out pits, and 18 polythene sacks.
Subsequently, on 11 April 2025, two additional illegal refining sites were uncovered and dismantled in the same location.
During this operation, about 2,500 litres of stolen crude oil and 1,450 litres of illegally refined AGO were discovered, stored in three ovens, 12 dug-out pits, and 20 polythene sacks.
Continuing this momentum, on 16 April 2025, another two illegal refining sites were located and destroyed at Obodo Omadino.
The sites held approximately 2,410 litres of stolen crude oil and 1,400 litres of illegally refined AGO, contained in three ovens, 19 dug-out pits, and 29 polythene sacks.
Cumulatively, the three operations led to the deactivation of seven illegal refining sites, with the seizure of about 5,980 litres of stolen crude oil and 3,810 litres of illegally refined AGO.
These materials were found across eight ovens, 50 dug-out pits, and 67 polythene sacks.
These successful operations, carried out based on credible intelligence and in support of Operation DELTA SANITY II, underscore the commitment of FOB ESCRAVOS to the strategic directives of the Chief of the Naval Staff, Vice Admiral E.I. Ogalla, Admiralty Medal, aimed at eradicating all forms of illegalities within Nigeria’s maritime environment.
Specifically, on 29 March 2025, personnel of FOB ESCRAVOS discovered and deactivated three illegal refining sites at Obodo Omadino, Warri South West Local Government Area of Delta State.
The sites contained approximately 1,070 litres of stolen crude oil and 960 litres of illegally refined Automotive Gas Oil (AGO), concealed in two ovens, 19 dug-out pits, and 18 polythene sacks.
Subsequently, on 11 April 2025, two additional illegal refining sites were uncovered and dismantled in the same location.
During this operation, about 2,500 litres of stolen crude oil and 1,450 litres of illegally refined AGO were discovered, stored in three ovens, 12 dug-out pits, and 20 polythene sacks.
Continuing this momentum, on 16 April 2025, another two illegal refining sites were located and destroyed at Obodo Omadino.
The sites held approximately 2,410 litres of stolen crude oil and 1,400 litres of illegally refined AGO, contained in three ovens, 19 dug-out pits, and 29 polythene sacks.
Cumulatively, the three operations led to the deactivation of seven illegal refining sites, with the seizure of about 5,980 litres of stolen crude oil and 3,810 litres of illegally refined AGO.
These materials were found across eight ovens, 50 dug-out pits, and 67 polythene sacks.
These successful operations, carried out based on credible intelligence and in support of Operation DELTA SANITY II, underscore the commitment of FOB ESCRAVOS to the strategic directives of the Chief of the Naval Staff, Vice Admiral E.I. Ogalla, Admiralty Medal, aimed at eradicating all forms of illegalities within Nigeria’s maritime environment.
Wednesday, April 16, 2025
Nigeria cuts petrol imports as local production rises
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the importation of premium motor spirit (PMS), also known as petrol, into Nigeria, reduced by 29.9 million litres in over eight months.Farouk Ahmed, chief executive officer (CEO), NMDPRA, spoke during a press briefing organised by the presidential communications team (PTC) at the State House in Abuja on Tuesday.
According to the NMDPRA CEO, the country’s daily petrol importation decreased from 44.6 million litres in August 2024 to 14.7 million litres as of April 13.
He attributed the drop in imports to increased contributions from local refineries.
Nigeria is making more of its own petrol
Nigeria is bringing in much less petrol from other countries because local refineries are making more. Daily imports dropped from 44.6 million litres last August to just 14.7 million litres by mid-April – that’s a huge decrease of 29.9 million litres.
At the same time, local petrol production has jumped by 670% – meaning Nigeria is now making about 7 times more of its own petrol than before. This big increase happened because the Port Harcourt Refinery started working again in November 2024, and small local refineries across the country are producing more.
Local refineries now make 26.2 million litres of petrol per day. This is a big change from August 2024, when they weren’t producing anything meaningful.
Even with fewer imports, Nigeria still has enough petrol. The government says the country needs about 50 million litres per day. The total supply (local production plus imports) has mostly stayed above this level, though it’s been dropping lately. In November 2024, supply reached 56 million litres per day, then 52.3 million litres in February 2025, followed by 51.5 million litres in March, and recently dropped to 40.9 million litres in early April 2025.
Mr. Ahmed called for everyone to help protect Nigeria’s oil and gas facilities. He said security agencies, political leaders, traditional rulers, young people, and oil companies all need to work together to keep these important assets safe.
“It takes all of us — government, traditional institutions, companies, and the youth—to collaborate and resist criminal activities that threaten our infrastructure,” he said.
He also stressed that the NMDPRA is committed to being transparent and accountable in how it regulates the oil industry.
By Oluwatosin Ogunjuyigbe, Business Day
According to the NMDPRA CEO, the country’s daily petrol importation decreased from 44.6 million litres in August 2024 to 14.7 million litres as of April 13.
He attributed the drop in imports to increased contributions from local refineries.
Nigeria is making more of its own petrol
Nigeria is bringing in much less petrol from other countries because local refineries are making more. Daily imports dropped from 44.6 million litres last August to just 14.7 million litres by mid-April – that’s a huge decrease of 29.9 million litres.
At the same time, local petrol production has jumped by 670% – meaning Nigeria is now making about 7 times more of its own petrol than before. This big increase happened because the Port Harcourt Refinery started working again in November 2024, and small local refineries across the country are producing more.
Local refineries now make 26.2 million litres of petrol per day. This is a big change from August 2024, when they weren’t producing anything meaningful.
Even with fewer imports, Nigeria still has enough petrol. The government says the country needs about 50 million litres per day. The total supply (local production plus imports) has mostly stayed above this level, though it’s been dropping lately. In November 2024, supply reached 56 million litres per day, then 52.3 million litres in February 2025, followed by 51.5 million litres in March, and recently dropped to 40.9 million litres in early April 2025.
Mr. Ahmed called for everyone to help protect Nigeria’s oil and gas facilities. He said security agencies, political leaders, traditional rulers, young people, and oil companies all need to work together to keep these important assets safe.
“It takes all of us — government, traditional institutions, companies, and the youth—to collaborate and resist criminal activities that threaten our infrastructure,” he said.
He also stressed that the NMDPRA is committed to being transparent and accountable in how it regulates the oil industry.
Tuesday, April 8, 2025
Nigerian troops arrest dozens in week-long oil theft crackdown
Nigerian troops arrested 43 suspected oil thieves and seized more than 254,000 litres of stolen fuel in a series of operations across the oil-rich Niger Delta, the army said on Monday.
The week-long operations between March 31 and April 6 targeted illegal refining sites and transport networks used by oil thieves, acting army spokesperson Danjuma Jonah Danjuma said in a statement.
Troops also destroyed 14 artisanal refineries and demobilised 14 boats during the operations.
Oil theft and illegal refining are rife in Nigeria's oil-rich delta as impoverished locals and more sophisticated criminal gangs pilfer pipelines to make fuel to sell for profit.
Seizures were made in Rivers, Bayelsa, and Delta states. In a large, illegal bunkering site in the Sapele area of Delta, thousands of litres of stolen crude oil and refined products were recovered, along with vehicles and equipment, Danjuma said.
The week-long operations between March 31 and April 6 targeted illegal refining sites and transport networks used by oil thieves, acting army spokesperson Danjuma Jonah Danjuma said in a statement.
Troops also destroyed 14 artisanal refineries and demobilised 14 boats during the operations.
Oil theft and illegal refining are rife in Nigeria's oil-rich delta as impoverished locals and more sophisticated criminal gangs pilfer pipelines to make fuel to sell for profit.
Seizures were made in Rivers, Bayelsa, and Delta states. In a large, illegal bunkering site in the Sapele area of Delta, thousands of litres of stolen crude oil and refined products were recovered, along with vehicles and equipment, Danjuma said.
By Camillus Eboh, Reuters
Wednesday, April 2, 2025
Ex-Shell chief now heads Nigeria’s NNPC
President Bola Tinubu on Wednesday sacked the board of the state-oil firm, NNPC, including its Group Chief Executive Officer (GCED), Mele Kyari and board chairperson Pius Akinyelure.
The president also approved Bayo Bashir Ojulari as the new GCEO of the NNPC.
Mr Ojulari is an energy expert who describes himself as “a business leader with a proven track record in the global energy sector.”
According to his LinkedIn profile, he worked full-time at global oil giant, Shell, for over 24 years, rising to become the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo) in November 2015, a position he held until July 2021.
His LinkedIn profile shows that he first joined Shell in November 1991 as an Associate Production Technologist at Shell Petroleum Development Company (SPDC), after he left Elf Petroleum Nigeria as a Fields and Process Engineer. He worked at Elf as a fresh graduate from September 1989 to October 1991.
Mr Ojulari joined Elf after graduating from Ahmadu Bello University, Zaria, where he studied Mechanical Engineering between 1985 and 1989.
After joining Shell in 1991, he rose to become a member of the Integrated Studies Team at Shell headquarters in the Netherlands in June 1994, a position he held till October 1995.
Between April 1997 and November 1999, he was the Head Planning Economics and Budgeting at SPDC Nigeria, from where he rose to become the Asset Leader and Head Production Technologist at Shell in Oman from December 1999 to September 2003.
He became the Sub-Saharan Africa Regional Planner at Shell headquarters in October 2003 and held the position till December 2004.
From January 2005 to October 2008, he was the Manager, Corporate Planning and Strategy at SPDC Nigeria during which time he also briefly held the position of Asset Production Technologist from November 2006 to March 2007.
At Shell, he remained in Nigeria from then on, becoming the Manager, Asset Development (Onshore and Shallow Water) SPDC Nigeria from October 2008 to October 2010.
From January 2010 to October 2015, he was the Development Director at SPDC Nigeria, after which he rose to become the Managing Director of SNEPCo from November 2015 to July 2021 when he left the company.
He established the BAT Advisory and Energy Company Nigeria Ltd in September 2021 and served as its board chairman. One of the main tasks of the company was to provide consultancy services to firms in the oil and gas/energy sector.
He was appointed the Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company in January 2024, a position he held until his new appointment as NNPC chief. He only announced his appointment at Renaissance Africa on LinkedIn about a week ago, saying, “It’s been a while since I started my role at Renaissance Africa Energy Company as a Executive Vice President and Chief Operating Office, but I wanted to share this update with everyone.”
He joined Renaissance at a time when the company was concluding its purchase of a Shell asset in Nigeria.
“Renaissance now controls SPDC’s 30% stake in the SPDC JV, an unincorporated joint venture with the government-owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%) and Agip Energy and Natural Resources (Nigeria) Limited (5%),” Shell announced.
Mr Ojulari will now head the NNPC, Nigeria’s main oil and gas firm, which has been dogged with allegations of corruption and inefficiency for decades. He also joins the NNPC at a time when his former firm, Shell, announced its divestment from some of its Nigerian operations, especially onshore operations in the oil-rich Niger Delta.
The oil and gas expert will now be expected to bring his experience into running the NNPC.
“President Tinubu also handed out an immediate action plan to the new board: to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives,” presidential spokesperson Bayo Onanuga wrote in a Wednesday statement announcing the new appointments.
By Idris Akinbajo, Premium Times
The president also approved Bayo Bashir Ojulari as the new GCEO of the NNPC.
Mr Ojulari is an energy expert who describes himself as “a business leader with a proven track record in the global energy sector.”
According to his LinkedIn profile, he worked full-time at global oil giant, Shell, for over 24 years, rising to become the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo) in November 2015, a position he held until July 2021.
His LinkedIn profile shows that he first joined Shell in November 1991 as an Associate Production Technologist at Shell Petroleum Development Company (SPDC), after he left Elf Petroleum Nigeria as a Fields and Process Engineer. He worked at Elf as a fresh graduate from September 1989 to October 1991.
Mr Ojulari joined Elf after graduating from Ahmadu Bello University, Zaria, where he studied Mechanical Engineering between 1985 and 1989.
After joining Shell in 1991, he rose to become a member of the Integrated Studies Team at Shell headquarters in the Netherlands in June 1994, a position he held till October 1995.
Between April 1997 and November 1999, he was the Head Planning Economics and Budgeting at SPDC Nigeria, from where he rose to become the Asset Leader and Head Production Technologist at Shell in Oman from December 1999 to September 2003.
He became the Sub-Saharan Africa Regional Planner at Shell headquarters in October 2003 and held the position till December 2004.
From January 2005 to October 2008, he was the Manager, Corporate Planning and Strategy at SPDC Nigeria during which time he also briefly held the position of Asset Production Technologist from November 2006 to March 2007.
At Shell, he remained in Nigeria from then on, becoming the Manager, Asset Development (Onshore and Shallow Water) SPDC Nigeria from October 2008 to October 2010.
From January 2010 to October 2015, he was the Development Director at SPDC Nigeria, after which he rose to become the Managing Director of SNEPCo from November 2015 to July 2021 when he left the company.
He established the BAT Advisory and Energy Company Nigeria Ltd in September 2021 and served as its board chairman. One of the main tasks of the company was to provide consultancy services to firms in the oil and gas/energy sector.
He was appointed the Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company in January 2024, a position he held until his new appointment as NNPC chief. He only announced his appointment at Renaissance Africa on LinkedIn about a week ago, saying, “It’s been a while since I started my role at Renaissance Africa Energy Company as a Executive Vice President and Chief Operating Office, but I wanted to share this update with everyone.”
He joined Renaissance at a time when the company was concluding its purchase of a Shell asset in Nigeria.
“Renaissance now controls SPDC’s 30% stake in the SPDC JV, an unincorporated joint venture with the government-owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%) and Agip Energy and Natural Resources (Nigeria) Limited (5%),” Shell announced.
Mr Ojulari will now head the NNPC, Nigeria’s main oil and gas firm, which has been dogged with allegations of corruption and inefficiency for decades. He also joins the NNPC at a time when his former firm, Shell, announced its divestment from some of its Nigerian operations, especially onshore operations in the oil-rich Niger Delta.
The oil and gas expert will now be expected to bring his experience into running the NNPC.
“President Tinubu also handed out an immediate action plan to the new board: to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives,” presidential spokesperson Bayo Onanuga wrote in a Wednesday statement announcing the new appointments.
By Idris Akinbajo, Premium Times
Tuesday, April 1, 2025
Nigerian Government, Dangote Could Begin Talks Over Naira-for-Crude Deal Renewal
The Nigerian government could reopen discussions with Dangote Petroleum Refinery on the naira-for-crude deal, as uncertainty lingers over its renewal. The initial six-month agreement, which allowed the refinery to purchase crude in naira, ended on March 31, 2025, and has yet to be extended.
Following the expiry of the deal, Dangote Refinery stopped selling refined petroleum products in naira, raising concerns about potential fuel price increases. According to reports, a senior government official, speaking anonymously, confirmed that authorities have not ruled out renewing the policy, given its impact on fuel prices and foreign exchange rates.
Meanwhile, a report by S&P Global revealed that the refinery has processed an estimated 400,000 barrels per day (bpd) in 2025, with around 35% of crude sourced from international markets. This translates to approximately 12.6 million barrels imported in three months, highlighting the refinery’s growing dependence on external suppliers.
The Nigerian National Petroleum Company (NNPC) had supplied 48 million barrels of crude in naira under the deal, but ongoing supply challenges have led to under-deliveries. While NNPC has allocated seven crude oil cargoes for April deliveries, payment terms remain unsettled.
The state oil firm also reduced its stake in the Dangote project from 20% to 7.2% last year, adding to uncertainty over its long-term supply commitments.
Human rights group HURIWA has urged President Bola Tinubu to ensure the continuation of the naira-for-crude arrangement. The group warned that terminating the deal could lead to fuel price hikes, worsening economic hardship for millions of Nigerians.
HURIWA’s National Coordinator, Emmanuel Onwubiko, emphasised that many businesses, particularly small and medium enterprises, depend on affordable fuel, and any disruption could trigger further job losses and push more Nigerians into poverty.
As the uncertainty continues, Dangote Refinery is expanding its crude sources. The refinery recently secured its first crude shipment from Brazil, with another expected soon from Equatorial Guinea. A company executive confirmed that Dangote has now added these countries to its list of global oil suppliers, alongside discussions with Senegal and Libya.
However, a Dangote executive admitted that the naira-for-crude arrangement was not commercially advantageous for the company due to foreign exchange risks. Pegging crude purchases and product sales to fluctuating exchange rates has created financial challenges for the refinery.
With the government and Dangote set for fresh talks, the fate of the naira-for-crude deal remains uncertain. While supporters argue it stabilises fuel prices and the economy, challenges related to supply consistency and exchange rate risks could complicate negotiations.
Following the expiry of the deal, Dangote Refinery stopped selling refined petroleum products in naira, raising concerns about potential fuel price increases. According to reports, a senior government official, speaking anonymously, confirmed that authorities have not ruled out renewing the policy, given its impact on fuel prices and foreign exchange rates.
Meanwhile, a report by S&P Global revealed that the refinery has processed an estimated 400,000 barrels per day (bpd) in 2025, with around 35% of crude sourced from international markets. This translates to approximately 12.6 million barrels imported in three months, highlighting the refinery’s growing dependence on external suppliers.
The Nigerian National Petroleum Company (NNPC) had supplied 48 million barrels of crude in naira under the deal, but ongoing supply challenges have led to under-deliveries. While NNPC has allocated seven crude oil cargoes for April deliveries, payment terms remain unsettled.
The state oil firm also reduced its stake in the Dangote project from 20% to 7.2% last year, adding to uncertainty over its long-term supply commitments.
Human rights group HURIWA has urged President Bola Tinubu to ensure the continuation of the naira-for-crude arrangement. The group warned that terminating the deal could lead to fuel price hikes, worsening economic hardship for millions of Nigerians.
HURIWA’s National Coordinator, Emmanuel Onwubiko, emphasised that many businesses, particularly small and medium enterprises, depend on affordable fuel, and any disruption could trigger further job losses and push more Nigerians into poverty.
As the uncertainty continues, Dangote Refinery is expanding its crude sources. The refinery recently secured its first crude shipment from Brazil, with another expected soon from Equatorial Guinea. A company executive confirmed that Dangote has now added these countries to its list of global oil suppliers, alongside discussions with Senegal and Libya.
However, a Dangote executive admitted that the naira-for-crude arrangement was not commercially advantageous for the company due to foreign exchange risks. Pegging crude purchases and product sales to fluctuating exchange rates has created financial challenges for the refinery.
With the government and Dangote set for fresh talks, the fate of the naira-for-crude deal remains uncertain. While supporters argue it stabilises fuel prices and the economy, challenges related to supply consistency and exchange rate risks could complicate negotiations.
By Abdullahi Jimoh, News Central
Friday, March 21, 2025
Video - Nigeria's petrol import expenditure soars to all-time high in 2024
Nigeria spent $9.64 billion on petrol imports in 2024, a 105 percent increase from 2023. This sharp rise underscores the country’s continued reliance on imported fuel despite efforts to boost domestic refining capacity.
Nigerian lawmakers back president's emergency rule in oil-rich state
Nigerian lawmakers approved on Thursday President Bola Tinubu's state of emergency measures and suspension of an opposition governor in oil-producing Rivers state in the Niger Delta region.
Tinubu announced the measures on Tuesday, saying they were aimed at halting vandalism of pipelines while a political crisis pitting factions of the opposition People's Democratic Party against each other threatens to disrupt oil production.
Police are investigating the cause of a blast in Rivers state that shut the Trans Niger Pipeline, a major oil artery transporting crude from onshore oilfields to the Bonny export terminal.
Some opposition parliamentarians had threatened to block the emergency measures but in the end both the upper Senate and House of Representatives gave their support.
The state of emergency in Rivers state will last six months.
Tinubu announced the measures on Tuesday, saying they were aimed at halting vandalism of pipelines while a political crisis pitting factions of the opposition People's Democratic Party against each other threatens to disrupt oil production.
Police are investigating the cause of a blast in Rivers state that shut the Trans Niger Pipeline, a major oil artery transporting crude from onshore oilfields to the Bonny export terminal.
Some opposition parliamentarians had threatened to block the emergency measures but in the end both the upper Senate and House of Representatives gave their support.
The state of emergency in Rivers state will last six months.
Wednesday, March 19, 2025
Bid by Nigeria's NNPC to halt Dangote refinery lawsuit rejected by judge
A Nigerian judge on Tuesday dismissed state oil company NNPC Ltd's objection to its inclusion in a lawsuit brought by Dangote Oil Refinery, which is seeking to halt imports of gasoline into the West African nation.
The 650,000-barrel-per-day refinery built by billionaire Aliko Dangote in Lagos has been touted as having the potential to secure energy independence for Nigeria, which, though a major oil producer, has long been forced to import refined products.
The refinery's lawsuit argues that sector regulator Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) is violating the law by continuing to issue gasoline import permits to NNPC and other fuel traders.
It says in its suit, filed at Nigeria's Federal High Court, that the law allows only imports in order to address production shortfalls. It is seeking 100 billion naira ($65 million) in damages from NMDPRA, NNPC and five smaller fuel marketers.
The Dangote refinery, which began processing crude into diesel, naphtha and jet fuel in January last year and gasoline in September, says its output is sufficient to meet domestic demand.
NNPC had objected to the suit that domestic consumption still outstrips the refinery's production and gasoline imports remain necessary.
It also said Dangote's filing cited a non-existent company, Nigeria National Petroleum Corporation.
The state oil firm officially changed its name to Nigeria National Petroleum Company Limited in 2022 when it became a limited liability company.
Judge Inyang Ekwo, however, dismissed those objections, adjourning the case until May 6 when he is expected to weigh NMDPRA and NNPC's request that the suit be dismissed due to a lack of merit and their counter-argument that the refinery is seeking to create a monopoly.
NNPC, NMDPRA and Dangote Oil Refinery declined to comment on the case.
Nigeria has one of Africa's largest gasoline markets and last year spent 15.42 trillion naira ($10 billion) on imports, according to the statistics bureau.
The lawsuit is the latest row between Dangote, one of Africa's richest individuals, and Nigerian regulatory authorities.
The Dangote refinery has previously accused NMDPRA of allowing imports of substandard fuels and criticised the upstream regulator for not enforcing laws that mandate oil producers to prioritise crude to domestic refineries.
Both regulators have denied the accusations.
By Camillus Eboh, Reuters
The 650,000-barrel-per-day refinery built by billionaire Aliko Dangote in Lagos has been touted as having the potential to secure energy independence for Nigeria, which, though a major oil producer, has long been forced to import refined products.
The refinery's lawsuit argues that sector regulator Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) is violating the law by continuing to issue gasoline import permits to NNPC and other fuel traders.
It says in its suit, filed at Nigeria's Federal High Court, that the law allows only imports in order to address production shortfalls. It is seeking 100 billion naira ($65 million) in damages from NMDPRA, NNPC and five smaller fuel marketers.
The Dangote refinery, which began processing crude into diesel, naphtha and jet fuel in January last year and gasoline in September, says its output is sufficient to meet domestic demand.
NNPC had objected to the suit that domestic consumption still outstrips the refinery's production and gasoline imports remain necessary.
It also said Dangote's filing cited a non-existent company, Nigeria National Petroleum Corporation.
The state oil firm officially changed its name to Nigeria National Petroleum Company Limited in 2022 when it became a limited liability company.
Judge Inyang Ekwo, however, dismissed those objections, adjourning the case until May 6 when he is expected to weigh NMDPRA and NNPC's request that the suit be dismissed due to a lack of merit and their counter-argument that the refinery is seeking to create a monopoly.
NNPC, NMDPRA and Dangote Oil Refinery declined to comment on the case.
Nigeria has one of Africa's largest gasoline markets and last year spent 15.42 trillion naira ($10 billion) on imports, according to the statistics bureau.
The lawsuit is the latest row between Dangote, one of Africa's richest individuals, and Nigerian regulatory authorities.
The Dangote refinery has previously accused NMDPRA of allowing imports of substandard fuels and criticised the upstream regulator for not enforcing laws that mandate oil producers to prioritise crude to domestic refineries.
Both regulators have denied the accusations.
By Camillus Eboh, Reuters
President Tinubu suspends the governor of an oil-rich state in rare emergency rule
Nigeria’s leader declared an emergency in oil-rich Rivers state and suspended its governor and lawmakers Tuesday over a political crisis and vandalism to pipelines that contribute to the country’s status as Africa’s top oil producer.
A crisis in Rivers has brewed for months between incumbent Gov. Siminalayi Fubara and state lawmakers, many of whom are backed by his predecessor. This week, some lawmakers initiated an impeachment process against the governor, accusing him of various illegalities regarding the presentation of the state budget and the composition of the legislative chamber.
President Bola Tinubu said in a state broadcast he was suspending the governor and other elected officials, including the state lawmakers, for six months.
The Nigerian president criticized the governor for not “taking any action to curtail” fresh incidents of pipeline vandalism reported in the last 24 hours, including a blast that resulted in a fire on the Trans Niger Pipeline.
“With all these and many more, no good and responsible president will stand by and allow the grave situation to continue without taking remedial steps prescribed by the constitution to address the situation in the state,” Tinubu said.
Nigeria’s former navy chief Vice Admiral Ibokette Ibas, who is retired, will become the military administrator of Rivers state and the judiciary will continue to function, Tinubu said.
Military trucks were quickly deployed to the Rivers State Government House following Tinubu’s announcement.
The Nigerian Constitution allows emergency rule to maintain law and order in rare circumstances. This is the first such emergency declared in more than a decade in the country of more than 210 million people whose democracy has been tested by many years of military rule and instability.
The Nigerian Bar Association criticized the suspensions of the governor and other elected officials as illegal. “A declaration of emergency does not automatically dissolve or suspend elected state governments,” Afam Osigwe, the association’s president, said in a statement.
The last such emergency in Nigeria was declared under President Goodluck Jonathan in 2013, in the northeastern states of Adamawa, Borno and Yobe during the height of the Boko Haram insurgency. However, the state governors were not suspended at the time.
A crisis in Rivers has brewed for months between incumbent Gov. Siminalayi Fubara and state lawmakers, many of whom are backed by his predecessor. This week, some lawmakers initiated an impeachment process against the governor, accusing him of various illegalities regarding the presentation of the state budget and the composition of the legislative chamber.
President Bola Tinubu said in a state broadcast he was suspending the governor and other elected officials, including the state lawmakers, for six months.
The Nigerian president criticized the governor for not “taking any action to curtail” fresh incidents of pipeline vandalism reported in the last 24 hours, including a blast that resulted in a fire on the Trans Niger Pipeline.
“With all these and many more, no good and responsible president will stand by and allow the grave situation to continue without taking remedial steps prescribed by the constitution to address the situation in the state,” Tinubu said.
Nigeria’s former navy chief Vice Admiral Ibokette Ibas, who is retired, will become the military administrator of Rivers state and the judiciary will continue to function, Tinubu said.
Military trucks were quickly deployed to the Rivers State Government House following Tinubu’s announcement.
The Nigerian Constitution allows emergency rule to maintain law and order in rare circumstances. This is the first such emergency declared in more than a decade in the country of more than 210 million people whose democracy has been tested by many years of military rule and instability.
The Nigerian Bar Association criticized the suspensions of the governor and other elected officials as illegal. “A declaration of emergency does not automatically dissolve or suspend elected state governments,” Afam Osigwe, the association’s president, said in a statement.
The last such emergency in Nigeria was declared under President Goodluck Jonathan in 2013, in the northeastern states of Adamawa, Borno and Yobe during the height of the Boko Haram insurgency. However, the state governors were not suspended at the time.
By Dyepkazah Shibayan, AP
Nigeria declares state of emergency in Rivers State over pipeline vandalism
Nigerian President Bola Tinubu declared a state of emergency on Tuesday in oil-producing Rivers State and suspended the state governor, his deputy and all lawmakers.
Tinubu, in a television broadcast, said he had received security reports in the last two days of "disturbing incidents of vandalization of pipelines by some militants without the governor taking any action to curtail them."
"With all these and many more, no good and responsible president will standby and allow the grave situation to continue without taking remedial steps prescribed by the constitution to address the situation in the state," added Tinubu.
Police said earlier they were investigating the cause of a blast in Rivers state that resulted in a fire on Nigeria's Trans Niger Pipeline, a major oil artery transporting crude from onshore oilfields to the Bonny export terminal.
Rivers, in the Niger Delta, is a major source of crude oil and militants have in the past blown up pipelines, hampering production and exports.
The state has been embroiled in a political crisis pitting factions of the opposition People's Democratic Party (PDP) against each other. The state lawmakers had also threatened to impeach the governor and his deputy.
Tinubu's state of emergency enables the federal government to make regulations to run the state and also allow authorities to easily deploy security forces to bring order if needed.
Tinubu nominated a retired vice admiral as caretaker to run the affairs of Rivers State for an initial six months.
The president said he had sent a copy of his proclamation to the National Assembly, which can endorse or reject his decision.
"For the avoidance of doubt, this declaration does not affect the judicial arm of Rivers State, which shall continue to function in accordance with their constitutional mandate," said Tinubu.
By Camillus Eboh, Reuters
Tinubu, in a television broadcast, said he had received security reports in the last two days of "disturbing incidents of vandalization of pipelines by some militants without the governor taking any action to curtail them."
"With all these and many more, no good and responsible president will standby and allow the grave situation to continue without taking remedial steps prescribed by the constitution to address the situation in the state," added Tinubu.
Police said earlier they were investigating the cause of a blast in Rivers state that resulted in a fire on Nigeria's Trans Niger Pipeline, a major oil artery transporting crude from onshore oilfields to the Bonny export terminal.
Rivers, in the Niger Delta, is a major source of crude oil and militants have in the past blown up pipelines, hampering production and exports.
The state has been embroiled in a political crisis pitting factions of the opposition People's Democratic Party (PDP) against each other. The state lawmakers had also threatened to impeach the governor and his deputy.
Tinubu's state of emergency enables the federal government to make regulations to run the state and also allow authorities to easily deploy security forces to bring order if needed.
Tinubu nominated a retired vice admiral as caretaker to run the affairs of Rivers State for an initial six months.
The president said he had sent a copy of his proclamation to the National Assembly, which can endorse or reject his decision.
"For the avoidance of doubt, this declaration does not affect the judicial arm of Rivers State, which shall continue to function in accordance with their constitutional mandate," said Tinubu.
By Camillus Eboh, Reuters
Tuesday, March 11, 2025
Nigeria in Talks to Extend Contract to Sell Crude to Dangote Refinery
Nigeria is in talks with the Dangote Refinery to extend a contract to sell crude in local currency to the plant, the biggest in Africa.
“Discussions are currently ongoing towards emplacing a new contract,” the Nigerian National Petroleum Company Ltd. said in a statement late Monday. The agreement, first signed in October, expires at the end of March.
It was put in place to reduce pressure on the naira and improve supply of crude to the giant Dangote Refinery, which has a capacity to process 650,000 barrels of crude daily.
At least 48 million barrels of crude has been supplied to the refinery since the agreement was signed and in aggregate more than 84 million barrels since its commencement of operations in 2023, the NNPC said.
By Ruth Olurounbi, Bloomberg
“Discussions are currently ongoing towards emplacing a new contract,” the Nigerian National Petroleum Company Ltd. said in a statement late Monday. The agreement, first signed in October, expires at the end of March.
It was put in place to reduce pressure on the naira and improve supply of crude to the giant Dangote Refinery, which has a capacity to process 650,000 barrels of crude daily.
At least 48 million barrels of crude has been supplied to the refinery since the agreement was signed and in aggregate more than 84 million barrels since its commencement of operations in 2023, the NNPC said.
Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'
Wednesday, February 19, 2025
Video - Nigeria’s local oil refineries struggling for crude supply
Despite Nigeria's oil production surpassing 1.5 million barrels per day, many of the country’s local refineries remain almost inactive. Operators report that they have yet to receive crude from local oil companies, leaving refineries in a state of underutilization and hindering the country’s refining capacity.
Friday, February 14, 2025
Shell should take responsibility for oil spills, Nigerian community leader says before UK trial
Shell should take responsibility for environmental damage in Nigeria caused by oil spills, a community leader said on Thursday as a pivotal hearing in lawsuits brought against the British oil major began at London's High Court.
Godwin Bebe Okpabi, leader of the Ogale community in the Niger Delta, told Reuters that he was appealing to Shell's conscience to remediate the damage, which he said had "destroyed our way of life".
Thousands of members of the Ogale and Bille communities are suing Shell and its Nigerian subsidiary SPDC over oil spills in the Niger Delta, a region blighted by pollution, conflict and corruption related to the oil and gas industry.
Decades of oil spills have caused widespread environmental damage, which has destroyed the livelihood of millions in the local communities and impacted their health.
Shell, however, says the vast majority of spills were caused by illegal third-party interference, such as pipeline sabotage and theft, which is rife in the Niger Delta.
A Shell spokesperson said the litigation "does little to address the real problem in the Niger Delta: oil spills due to theft, illegal refining and sabotage, which cause the most environmental damage".
Shell's lawyers said in court filings that SPDC recognises it is obliged to compensate those harmed by oil spills even if SPDC is not at fault, but not where it has already done so or where spills were caused by "the malicious acts of third parties".
But Okpabi said Shell had made billions of dollars in Nigeria – which he called "blood money" – and had a moral responsibility to prevent and remediate oil spills.
"As we speak, people are dying in Ogale, my community," he said. "It is sad that Shell will now want to take us through this very expensive, very troublesome trial, claiming one technicality or the other."
He was speaking outside the Royal Courts of Justice in London ahead of a four-week hearing to determine issues of Nigerian law and whether SPDC can be held liable for oil spills caused by third-party interference, ahead of a further trial in 2026.
The case, parts of which began nearly a decade ago, has already been to the United Kingdom's Supreme Court, which ruled in 2021 that the case should be heard in the English courts.
The lawsuit is the latest example of multinationals being sued in London for the acts of overseas subsidiaries, following a landmark 2019 ruling in a separate case.
Godwin Bebe Okpabi, leader of the Ogale community in the Niger Delta, told Reuters that he was appealing to Shell's conscience to remediate the damage, which he said had "destroyed our way of life".
Thousands of members of the Ogale and Bille communities are suing Shell and its Nigerian subsidiary SPDC over oil spills in the Niger Delta, a region blighted by pollution, conflict and corruption related to the oil and gas industry.
Decades of oil spills have caused widespread environmental damage, which has destroyed the livelihood of millions in the local communities and impacted their health.
Shell, however, says the vast majority of spills were caused by illegal third-party interference, such as pipeline sabotage and theft, which is rife in the Niger Delta.
A Shell spokesperson said the litigation "does little to address the real problem in the Niger Delta: oil spills due to theft, illegal refining and sabotage, which cause the most environmental damage".
Shell's lawyers said in court filings that SPDC recognises it is obliged to compensate those harmed by oil spills even if SPDC is not at fault, but not where it has already done so or where spills were caused by "the malicious acts of third parties".
But Okpabi said Shell had made billions of dollars in Nigeria – which he called "blood money" – and had a moral responsibility to prevent and remediate oil spills.
"As we speak, people are dying in Ogale, my community," he said. "It is sad that Shell will now want to take us through this very expensive, very troublesome trial, claiming one technicality or the other."
He was speaking outside the Royal Courts of Justice in London ahead of a four-week hearing to determine issues of Nigerian law and whether SPDC can be held liable for oil spills caused by third-party interference, ahead of a further trial in 2026.
The case, parts of which began nearly a decade ago, has already been to the United Kingdom's Supreme Court, which ruled in 2021 that the case should be heard in the English courts.
The lawsuit is the latest example of multinationals being sued in London for the acts of overseas subsidiaries, following a landmark 2019 ruling in a separate case.
Related story: Shell reports oil spill in Nigeria after saver pit overflows
Monday, February 10, 2025
Nigeria's Dangote Refinery to operate at full capacity in 30 days
Nigeria's Dangote Oil refinery, Africa's largest, could begin operating at full capacity in 30 days, the head of the refinery said on Monday.
The 650,000-barrel-per-day refinery built by Nigerian billionaire Aliko Dangote in Lagos began processing crude into products, including diesel, naphtha and jet fuel, in January last year and started processing petrol in September.
It aims to compete with European refiners when operating at full capacity but had been struggling to secure sufficient crude locally.
Edwin Devakumar, head of the Dangote oil refinery said it was currently operating at 85% capacity and "we can go 100 percent in 30 days."
Last year, the refinery turned to importing crude after it was unable to secure sufficient volumes despite an agreement with the Nigerian government to buy crude in the local naira currency.
It has asked for 550,000 bpd of crude for January-June this year from oil producers in Nigeria, according to the oil regulator, which has also said it would block export permits for oil cargoes from producers who fail to meet their stipulated supply quota to local refineries.
The Dangote Oil Refinery is exploring new markets for its refined products. Founder Aliko Dangote told a group of Nigerian professionals who visited last week that it was sending two cargoes of jet fuel to Saudi Aramco as part of its plans to expand.
"We are looking at all the markets right now," said Devakumar.
By Isaac Anyaogu, Reuters
The 650,000-barrel-per-day refinery built by Nigerian billionaire Aliko Dangote in Lagos began processing crude into products, including diesel, naphtha and jet fuel, in January last year and started processing petrol in September.
It aims to compete with European refiners when operating at full capacity but had been struggling to secure sufficient crude locally.
Edwin Devakumar, head of the Dangote oil refinery said it was currently operating at 85% capacity and "we can go 100 percent in 30 days."
Last year, the refinery turned to importing crude after it was unable to secure sufficient volumes despite an agreement with the Nigerian government to buy crude in the local naira currency.
It has asked for 550,000 bpd of crude for January-June this year from oil producers in Nigeria, according to the oil regulator, which has also said it would block export permits for oil cargoes from producers who fail to meet their stipulated supply quota to local refineries.
The Dangote Oil Refinery is exploring new markets for its refined products. Founder Aliko Dangote told a group of Nigerian professionals who visited last week that it was sending two cargoes of jet fuel to Saudi Aramco as part of its plans to expand.
"We are looking at all the markets right now," said Devakumar.
Nigerian residents take Shell to UK High court following 10-year fight for justice
After a decade-long fight for justice, the Preliminary Issues Trial of Nigerian Law for Shell vs Ogale and Bille communities is set to take place at the UK High Court from 13 February to 10 March 2025.
Ten years ago, residents from the Bille and Ogale communities in Nigeria claimed their livelihoods had been destroyed and homes damaged by hundreds of oil spills caused by Shell. The pollution caused widespread devastation to the local environment, killing fish and plant life, leaving thousands of people without access to clean drinking water.
The communities brought their claims in the UK courts however Shell repeatedly delayed the case arguing it had no legal responsibility for any of the pollution. The delay has had a devastating effect on people’s lives.
On 6 December 2024, the UK Court of Appeal gave the green light for the case finally to go ahead. Isa Sanusi, Amnesty International’s Country Director for Nigeria, said:
“The Bille and Ogale communities of Nigeria’s Niger Delta oil-producing region have been living with the devastating impact of oil pollution for so long. Oil companies, particularly Shell, exposed them to multiple oil spills that have done permanent damage to farmlands, waterways, and drinking water – leaving them unable to farm or fish.
“Water contamination and other impacts affect even babies that are in some cases born with deformities. These communities have been deprived of a good standard of living. They deserve justice and effective remediation, and I hope this long-overdue trial goes someway to providing it.”
Amnesty International has published numerous reports, documenting the detrimental impact Shell’s operations are having on Nigerian communities. Going forward, Amnesty International is calling for Shell to conduct meaningful consultation with affected communities about its plans for disengagement. Shell must also provide a full remediation plan including details of all completed and ongoing clean-ups across its areas of operation, as well as adequate compensation for the severe and sustained harm affected communities have faced as a result of Shell’s operations in the Niger Delta.
Background
The two communities from Nigeria will be represented by Leigh Day. The Shell Preliminary Issues Trial of Nigerian Law will aim to resolve a number of Nigerian private and constitutional law questions, with a view to confirming the legal framework to be applied to the subsequent trial between Shell and the Ogale and Bille communities.
The Court of Appeal heard the Shell Nigeria oil spill appeal on 8 October 2024. On 11 October 2024, the Court of Appeal ruled in favour of Nigerian communities over alleged pollution by oil giant Shell. On 6 December 2024, a full trial of Nigerian communities’ claims against Shell was given the go ahead.
Over the past 20 years, Amnesty International has conducted extensive research and documented the human rights and environmental impact of Shell’s operations in the Niger Delta. In Amnesty’s 2023 report, Nigeria: Tainted Sale?, the organization recommended a series of safeguards to protect the rights of people potentially affected by Shell’s planned disposal of its oil interests in Nigeria.
Ten years ago, residents from the Bille and Ogale communities in Nigeria claimed their livelihoods had been destroyed and homes damaged by hundreds of oil spills caused by Shell. The pollution caused widespread devastation to the local environment, killing fish and plant life, leaving thousands of people without access to clean drinking water.
The communities brought their claims in the UK courts however Shell repeatedly delayed the case arguing it had no legal responsibility for any of the pollution. The delay has had a devastating effect on people’s lives.
On 6 December 2024, the UK Court of Appeal gave the green light for the case finally to go ahead. Isa Sanusi, Amnesty International’s Country Director for Nigeria, said:
“The Bille and Ogale communities of Nigeria’s Niger Delta oil-producing region have been living with the devastating impact of oil pollution for so long. Oil companies, particularly Shell, exposed them to multiple oil spills that have done permanent damage to farmlands, waterways, and drinking water – leaving them unable to farm or fish.
“Water contamination and other impacts affect even babies that are in some cases born with deformities. These communities have been deprived of a good standard of living. They deserve justice and effective remediation, and I hope this long-overdue trial goes someway to providing it.”
Amnesty International has published numerous reports, documenting the detrimental impact Shell’s operations are having on Nigerian communities. Going forward, Amnesty International is calling for Shell to conduct meaningful consultation with affected communities about its plans for disengagement. Shell must also provide a full remediation plan including details of all completed and ongoing clean-ups across its areas of operation, as well as adequate compensation for the severe and sustained harm affected communities have faced as a result of Shell’s operations in the Niger Delta.
Background
The two communities from Nigeria will be represented by Leigh Day. The Shell Preliminary Issues Trial of Nigerian Law will aim to resolve a number of Nigerian private and constitutional law questions, with a view to confirming the legal framework to be applied to the subsequent trial between Shell and the Ogale and Bille communities.
The Court of Appeal heard the Shell Nigeria oil spill appeal on 8 October 2024. On 11 October 2024, the Court of Appeal ruled in favour of Nigerian communities over alleged pollution by oil giant Shell. On 6 December 2024, a full trial of Nigerian communities’ claims against Shell was given the go ahead.
Over the past 20 years, Amnesty International has conducted extensive research and documented the human rights and environmental impact of Shell’s operations in the Niger Delta. In Amnesty’s 2023 report, Nigeria: Tainted Sale?, the organization recommended a series of safeguards to protect the rights of people potentially affected by Shell’s planned disposal of its oil interests in Nigeria.
Wednesday, February 5, 2025
Shell reports oil spill in Nigeria after saver pit overflows
Shell reported an oil spill on Tuesday at Ogale, near Port Harcourt, after a saver pit overflowed during flushing operations in the Niger delta region.
The oil major's Nigeria business said its spill response team contained the overflow and informed authorities.
It added that arrangements were being made for a regulator-led joint visit to determine the cause and impact of the spill, a Shell spokesperson said in a statement.
Decades of oil spills have blighted Nigeria's Niger River delta region, causing widespread environmental damage that has destroyed the livelihood of millions in the local communities and impacted their health.
Youths and Environmental Advocacy Centre (YEAC-Nigeria) said the spill occurred after an underground pit filled with crude started flowing to a pipeline that separates an area of the Ogoni cleanup project.
The oil major's Nigeria business said its spill response team contained the overflow and informed authorities.
It added that arrangements were being made for a regulator-led joint visit to determine the cause and impact of the spill, a Shell spokesperson said in a statement.
Decades of oil spills have blighted Nigeria's Niger River delta region, causing widespread environmental damage that has destroyed the livelihood of millions in the local communities and impacted their health.
Youths and Environmental Advocacy Centre (YEAC-Nigeria) said the spill occurred after an underground pit filled with crude started flowing to a pipeline that separates an area of the Ogoni cleanup project.
Tuesday, February 4, 2025
Nigeria moves to restart oil production in vulnerable region after Shell sells much of its business
The Nigerian government is in talks with local communities to restart oil production in a region that’s previously suffered environmental damage after oil giant Shell’s sale of its onshore business in the country.
Shell’s $2.4 billion sale of its onshore business to a group of local companies was confirmed last week by Nigeria’s special advisor to the president on energy, Olu Verheijen. It marks the end of the of the London-based energy giant’s nearly century-long operations in the onshore Niger Delta region, where it faces long-running complaints of environmental pollution.
Now a potential restart of oil production Ogoniland region in southern Nigeria, where Shell halted its operations in 1993 following violent protests over allegations of widespread environmental damage and human rights abuses, has been earmarked by government officials as a potential way of increasing its foreign exchange earnings.
“The broad consensus in Ogoni is in favor of restarting production,” said Ledum Mitee, a veteran environmental activist and former president of the Movement for the Survival of Ogoni People.
Shell’s $2.4 billion sale of its onshore business to a group of local companies was confirmed last week by Nigeria’s special advisor to the president on energy, Olu Verheijen. It marks the end of the of the London-based energy giant’s nearly century-long operations in the onshore Niger Delta region, where it faces long-running complaints of environmental pollution.
Now a potential restart of oil production Ogoniland region in southern Nigeria, where Shell halted its operations in 1993 following violent protests over allegations of widespread environmental damage and human rights abuses, has been earmarked by government officials as a potential way of increasing its foreign exchange earnings.
“The broad consensus in Ogoni is in favor of restarting production,” said Ledum Mitee, a veteran environmental activist and former president of the Movement for the Survival of Ogoni People.
Western oil companies are retreating from Nigeria
A number of Western oil companies, including ExxonMobil, Eni, Equinor, and TotalEnergies — and now Shell — are retreating from Nigeria.
They are mostly moving offshore and limiting their exposure in the West African nation’s Delta region where oil spills have fouled rivers and farms and exacerbated tensions in a region that has faced years of militant violence.
Shell’s sale was delayed following protests by communities and activist groups, including Amnesty International and the Dutch non-profit Centre for Research on Multinational Corporations (SOMO), demanding that Shell clean up first.
The terms of the deal on addressing the environmental damage left by Shell are not publicly available. Isaac Botti of Social Action, a Nigerian group that organized protests against Shell’s sale, said his organization had requested terms of the agreement the Nigerian Upstream Petroleum Regulatory Commission signed with Shell and the new owners, Renaissance Africa Energy Company. The regulator did not respond to The Associated Press’ request for comment.
Shell previously told AP that the transaction was designed to preserve the company’s role to “conduct any remediation as operator of the joint venture where spills may have occurred in the past from the joint venture’s operations.”
A number of Western oil companies, including ExxonMobil, Eni, Equinor, and TotalEnergies — and now Shell — are retreating from Nigeria.
They are mostly moving offshore and limiting their exposure in the West African nation’s Delta region where oil spills have fouled rivers and farms and exacerbated tensions in a region that has faced years of militant violence.
Shell’s sale was delayed following protests by communities and activist groups, including Amnesty International and the Dutch non-profit Centre for Research on Multinational Corporations (SOMO), demanding that Shell clean up first.
The terms of the deal on addressing the environmental damage left by Shell are not publicly available. Isaac Botti of Social Action, a Nigerian group that organized protests against Shell’s sale, said his organization had requested terms of the agreement the Nigerian Upstream Petroleum Regulatory Commission signed with Shell and the new owners, Renaissance Africa Energy Company. The regulator did not respond to The Associated Press’ request for comment.
Shell previously told AP that the transaction was designed to preserve the company’s role to “conduct any remediation as operator of the joint venture where spills may have occurred in the past from the joint venture’s operations.”
Environmental damage is still a concern
Scientific studies have found high levels of chemical compounds from crude oil, as well as heavy metals, in the delta, where the industry largely drives Nigeria’s economy but can leave communities’ water sources slick with contaminants.
A cleanup exercise in Ogoniland advised by the United Nations Environment Programme and largely funded by Shell is largely mismanaged, according to U.N. documents obtained by AP.
Activists say they want to see more dialog before any oil production in the region resumes. “I think the president got it right in not imposing solutions but insisting on” consultations on local terms and conditions to resume production, said Mitee, the environmental activist.
Scientific studies have found high levels of chemical compounds from crude oil, as well as heavy metals, in the delta, where the industry largely drives Nigeria’s economy but can leave communities’ water sources slick with contaminants.
A cleanup exercise in Ogoniland advised by the United Nations Environment Programme and largely funded by Shell is largely mismanaged, according to U.N. documents obtained by AP.
Activists say they want to see more dialog before any oil production in the region resumes. “I think the president got it right in not imposing solutions but insisting on” consultations on local terms and conditions to resume production, said Mitee, the environmental activist.
By Taiwo Adebayo, AP
Nigeria to block oil export permits for producers who do not fill refinery quotas
Nigeria's upstream oil regulator said on Monday it would deny export permits for oil cargoes from producers who fail to meet their stipulated supply quota to local refineries, including the Dangote Refinery, Africa's largest.
Nigeria's oil industry law, the Petroleum Industry Act, mandates oil producers, including international oil companies, to dedicate specific volumes of crude for domestic refineries before exporting, a requirement called the domestic crude supply obligation.
However, oil producers say they have not complied with this stipulation because refiners are not offering competitive prices. This has prompted the Dangote Refinery to call on the regulator to enforce the law.
A statement on Monday from the Nigerian Upstream Petroleum Regulatory Commission said Gbenga Komolafe, its head, wrote to oil exploration and production companies to remind them of their obligations and penalties for default.
The commission said it met last week with producers and refiners. In the meeting, refiners blamed producers for not honouring their obligations under the supply obligation, while the producers said refiners are offering insufficient prices, forcing them to explore other markets, Komolafe said in the statement.
Komolafe warned "the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining."
For the first half of 2025, Nigerian refineries say they will require 770,500 barrels of crude per day, with the Dangote Refinery forecast to require 550,000 bpd, according to a schedule published by the oil regulator.
By Camillus Eboh, Reuters
Nigeria's oil industry law, the Petroleum Industry Act, mandates oil producers, including international oil companies, to dedicate specific volumes of crude for domestic refineries before exporting, a requirement called the domestic crude supply obligation.
However, oil producers say they have not complied with this stipulation because refiners are not offering competitive prices. This has prompted the Dangote Refinery to call on the regulator to enforce the law.
A statement on Monday from the Nigerian Upstream Petroleum Regulatory Commission said Gbenga Komolafe, its head, wrote to oil exploration and production companies to remind them of their obligations and penalties for default.
The commission said it met last week with producers and refiners. In the meeting, refiners blamed producers for not honouring their obligations under the supply obligation, while the producers said refiners are offering insufficient prices, forcing them to explore other markets, Komolafe said in the statement.
Komolafe warned "the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining."
For the first half of 2025, Nigerian refineries say they will require 770,500 barrels of crude per day, with the Dangote Refinery forecast to require 550,000 bpd, according to a schedule published by the oil regulator.
Monday, February 3, 2025
Dangote’s decisions projected to reduce the cost of living in Nigeria
“In a bold move to drive economic relief for Nigerians, Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit, commonly known as petrol, from N950 to N890 per liter, effective from Saturday,” the Group’s Chief Branding and Communications Officer, Anthony Chiejina, stated.
“This price adjustment is in response to favorable developments in the global energy sector and a significant decline in international crude oil prices.
Dangote refinery’s decision reflects its commitment to aligning with market realities and ensuring that consumers benefit from changes in international crude oil prices,” he added.
This as expected has sent shockwaves across the oil market, which currently averages around N970 to N990 as PMS price.
A report by the Punch newspaper highlights this fact, having spoken to some mjaor players in the country’s oil sector.
Marketers told the aforementioned outlet that the Dangote refinery's abrupt price cut was likely brought on by recent warnings that specific marketers were planning on importing PMS if the foreign product remained lower than the ex-depot pricing of locally refined goods.
In response, the Dangote refinery moved to proffer competitive rates.
This, according to marketers could present some challenges as well as opportunities.
IPMAN's opinion on Danagote's price cut
“For instance, maybe a marketer purchased some product on Friday. I am sure the marketer would not have sold it before the new reduction happened.
That is the negative aspect of it. But, we have to abide by it. We have to live with it. That is the beauty of deregulation,” the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated;
“So, we have to be careful when we purchase our product. Where we purchase it from and the price we are getting it. And we must have adequate information on what is going on. So that we will not be losing money every day,” he added.
He also noted that when prices fall, the only alternative for a marketer is to lower the price to liquidate old stockpiles, or they will be left with no buyers.
“When this happens, the only option a marketer has is to bring down the price. Because if you don’t do that, the competition will set in.
Some marketers in your neighborhood might be lucky to get their product tomorrow at N890. So, if you have a N950 product with you, within two to three days, you will not have an option but to bring it down.
That is the situation marketers are facing now, but we have to cope with it. It is the marketer who bears the losses,” he stated.
“I am happy it is happening this way. We believe that how can imported PMS be cheaper than Dangote’s PMS that is refined here locally? We know crude is being purchased here in naira, not in dollars; though we know that it is going to be in the official exchange rate, but we won’t be looking for dollars. The issue of transportation will not be there and some other charges too,” he added.
“For instance, maybe a marketer purchased some product on Friday. I am sure the marketer would not have sold it before the new reduction happened.
That is the negative aspect of it. But, we have to abide by it. We have to live with it. That is the beauty of deregulation,” the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated;
“So, we have to be careful when we purchase our product. Where we purchase it from and the price we are getting it. And we must have adequate information on what is going on. So that we will not be losing money every day,” he added.
He also noted that when prices fall, the only alternative for a marketer is to lower the price to liquidate old stockpiles, or they will be left with no buyers.
“When this happens, the only option a marketer has is to bring down the price. Because if you don’t do that, the competition will set in.
Some marketers in your neighborhood might be lucky to get their product tomorrow at N890. So, if you have a N950 product with you, within two to three days, you will not have an option but to bring it down.
That is the situation marketers are facing now, but we have to cope with it. It is the marketer who bears the losses,” he stated.
“I am happy it is happening this way. We believe that how can imported PMS be cheaper than Dangote’s PMS that is refined here locally? We know crude is being purchased here in naira, not in dollars; though we know that it is going to be in the official exchange rate, but we won’t be looking for dollars. The issue of transportation will not be there and some other charges too,” he added.
How Dangote could affect cost of living
Additionally, the National President of the Petroleum Products Retail Outlet Owners Association in Nigeria, relayed that this sort of move could improve the overall quality of life in Nigeria.
“The reduction in PMS ex-depot price is expected to have a far-reaching impact on the lives of Nigerian citizens.
With a decrease in the cost of petrol, the prices of goods and services are likely to decrease, leading to a reduction in the overall cost of living.
This, in turn, will provide relief to households, who will have more disposable income to allocate towards other essential needs,” he said.
“The reduction in PMS price will also have a positive impact on the economy. A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost.
Additionally, the reduction in PMS price will lead to an increase in demand for goods and services, which will have a positive impact on economic growth and development,” he added.
Additionally, the National President of the Petroleum Products Retail Outlet Owners Association in Nigeria, relayed that this sort of move could improve the overall quality of life in Nigeria.
“The reduction in PMS ex-depot price is expected to have a far-reaching impact on the lives of Nigerian citizens.
With a decrease in the cost of petrol, the prices of goods and services are likely to decrease, leading to a reduction in the overall cost of living.
This, in turn, will provide relief to households, who will have more disposable income to allocate towards other essential needs,” he said.
“The reduction in PMS price will also have a positive impact on the economy. A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost.
Additionally, the reduction in PMS price will lead to an increase in demand for goods and services, which will have a positive impact on economic growth and development,” he added.
By Chinedu Okafor, Business Insider Africa
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