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DPR Targets N3.2T Revenue by Year-End

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Department of Petroleum Resources (DPR)-Investors king

Nigeria’s Department of Petroleum Resources (DPR) will hit the N3.2 trillion revenue target by December 2021, according to its Director/ Chief Executive Officer, Mr Sarki Auwalu.

Auwalu made the disclosure when he led a delegation of the DPR management team to the Executive Secretary of Petroleum Technology Development Fund (PTDF), Mr Bello Gusau, in Abuja on Wednesday.

He said that 70 percent of the revenue projection had already been met. “Last year, we exceed our revenue budget. We were given N1.5 trillion but we were able to generate N2.7trillion.

“This year, our revenue budget was N3.2 trillion. By the end of August 2021, we have generated up to 70 per cent.

“So, we with September, October, November and December, it is only the 30 per cent that we will work over,’’ he said

He noted that the government took advantage of fiscal terms within the old and new legislation, thereby creating a level of increased signature bonuses.

“We reorganise the work programme that is normally being done in the DPR to key into the new operational structure as we see it in the bill, now an act.

“That programme is being handled by the planning and strategic business unit as against what we use to have because the entire work programme is supposed to show not only technical but also commercial and viability of oil fields and to guarantee the return on investment for investors.

“We have also created an economic value and benchmarking unit to key into the new fiscal provisions of the PIA,’’ he said.

Commenting on capacity, Auwalu said the country stands at the advantage of exporting skills to emerging oil and gas countries across Africa with proper implementation of the newly passed Petroleum Industry Act.

This, he said, the DPR was ready to partner with the Fund to continue to build capacity in the oil and gas sector

He noted that the Federal Government was determined to create leeway that would encourage investors and drastically improve the nation’s petroleum industry.

He further noted that no fewer than 300 legal battles in the oil and gas industry in Nigeria, which had been stalled for the past 20 years in courts, had been resolved through alternative dispute resolution.

According to Auwalu, the DPR is strategising well to ensure effective implementation of the PIA.

Responding, Gusau commended the DPR for enabling the industry and enhancing business activities in the oil and gas sector.

He said that DPR remained the head of the oil and gas industry in Nigeria adding that the Fund was grateful to benefit from the wealth of ideas from DPR.

“The last time we visited, we had a good discussion and issues raised are being implemented like tracking the inflow of funds in signature bonus accounts.

“We extended the meeting and involved ministry of Finance, Accountant General office and even the Central Bank of Nigeria (CBN).

“Sitting at field development plans and attending significant meetings, helped us to know where and what the industry is trying to do and it also helps to inform our decisions in training and capacity plans,’’ he said

He urged the DPR to continue on its effort to ensure an efficient and productive petroleum industry in Nigeria

He assured collaboration with all as the head of the implementation committee of the Petroleum Industry Act. (NAN)

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African Nations at Odds Over Location of Africa’s First Energy Bank, Nigeria Faces Opposition

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Renewable Energy

A brewing dispute among African nations has thrown into question the location of Africa’s inaugural energy bank, with Nigeria encountering fierce resistance from at least six countries on the continent.

The proposed financial institution with an initial capital of $5 billion, aims to bolster investment in the oil and gas sector across Africa.

Ghana, Egypt, South Africa, Benin Republic, Cote d’Ivoire, and Algeria have emerged as formidable opponents to Nigeria’s bid for hosting rights.

These nations have actively lobbied decision-makers who will ultimately determine the bank’s headquarters.

The disagreement underscores the significance attached to the financial institution’s location, with each nation vying to secure economic advantages.

The contentious deliberations have attracted the participation of key stakeholders, including Angola, Cameroon, the Republic of Congo, and Equatorial Guinea, among others.

The establishment of the energy bank is seen as crucial to the future of Africa’s oil and gas industry, especially amid declining Western investments in fossil fuels.

The proposed bank aims to bridge the funding gap plaguing the sector, which is vital for Nigeria’s ambition to tap into its vast oil reserves.

While Nigeria’s leadership in the African Petroleum Producers Association (APPO) would seemingly provide leverage, internal and external dynamics complicate its bid.

Nigeria’s APPO representative has highlighted the need for proactive engagement and commitment, cautioning against complacency in the pursuit of hosting rights.

The decision on the bank’s location is expected to be reached by the end of March, emphasizing the urgency for Nigeria and other contenders to articulate compelling arguments and fulfill stringent criteria set by APPO.

The outcome will not only shape the future of Africa’s energy landscape but also reflect the continent’s evolving geopolitical dynamics.

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60% of Metered Customers Bypass Meters – TCN Reveals

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The Transmission Company of Nigeria (TCN) has disclosed that 60% of metered customers bypass meters.

Ali Ahmad, TCN’s General Manager, shared this alarming statistic during the National Institute of Physics’ webinar series 2.0, themed “Policy, Regulatory, and Technical Constraints in Achieving Energy Security in Nigeria: The Way Forward.”

Ahmad’s presentation shed light on Nigeria’s energy landscape, where out of an estimated population of 230 million, only 13,112,134 citizens are officially registered to use electricity.

Moreover, just 44.23% of these registered customers possess meters, indicating a significant gap in metering coverage across the nation.

With only 2.52% of Nigeria’s population metered, Ahmad emphasized that meter bypass directly contributes to the country’s energy poverty, characterized by unreliable and unaffordable energy access.

He stressed the critical importance of energy security, defined by having dependable and reasonably priced energy sources, to drive sustainable development.

Highlighting the various forms of energy poverty in Nigeria, Ahmad underscored the necessity of achieving energy sovereignty and independence for national progress.

Nigeria’s energy vulnerability, he explained, stems from heavy reliance on gas, insufficient production capacity, and unreliable gas supplies.

The TCN’s revelation underscores the urgency for comprehensive reforms in Nigeria’s energy sector, including robust measures to combat meter bypass, enhance metering infrastructure, and ensure equitable energy access for all citizens.

Addressing these challenges is paramount to advancing energy security and fostering socio-economic development across Nigeria.

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Heirs Energies Expands Gas Supply to Geometric Power’s Aba Plant

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Heirs Holdings

Heirs Energies, a leading integrated energy company, has announced the expansion of its gas supply operations to the newly-opened 188-megawatt power plant operated by Geometric Power Limited in Aba, Abia State.

This move represents a significant milestone in Heirs Energies’ commitment to enhancing Nigeria’s energy landscape and promoting economic development.

The company, in a statement released on Wednesday, revealed its ongoing provision of gas to TransAfam Power Limited and First Independent Power Limited, both key players in Nigeria’s power sector, to support the national grid.

Now, extending its services to Geometric Power’s Aba plant, Heirs Energies reaffirms its dedication to powering Nigeria and fostering socio-economic growth.

Osa Igiehon, the Chief Executive Officer of Heirs Energies, expressed the company’s dedication to illuminating Nigeria and facilitating its journey toward prosperity.

He emphasized that Heirs Energies isn’t merely a participant in the energy sector but a catalyst for progress and development.

With the ability to supply gas to major power plants, Heirs Energies underscores its pivotal role in Nigeria’s energy sector and its commitment to driving operational synergies across the energy value chain.

Founded in 2021, Heirs Energies operates OML17 and related infrastructure, ensuring a reliable supply of gas to the domestic market.

By supplying gas to critical power plants like Geometric Power’s Aba facility, the company contributes directly to Nigeria’s industrial and economic advancement.

Heirs Energies’ gas expansion initiative aligns with its vision of creating a Nigerian champion in domestic gas supply, driven by Tony Elumelu’s Africapitalism philosophy, which advocates for businesses to deliver economic and social benefits to stakeholders.

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