Business

Shell FID on Bonga North excites Tinubu in meeting Nigeria’s energy target

Published

5 days ago

December 17, 2024

Shell FID on Bonga North excites Tinubu in meeting Nigeria’s energy target

President Bola Tinubu has applauded the $5 billion Final Investment Decision (FID) made by Shell and its partners on the Bonga North Deep Offshore Field.

The feat, according to the president, reflected the government’s commitment to creating a more competitive and investor-friendly environment.

The Bonga North oilfield, located 130 kilometers offshore in Oil Mining Lease (OML) 118, represents an estimated investment of $5 billion and is expected to yield approximately 350 million barrels of crude oil.

Shell holds the largest operational stake in the project, with 55 per cent, while other partners include the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.

President Tinubu emphasised that the FID signalled renewed confidence in Nigeria’s energy sector and underscored the effectiveness of the administration’s strategic focus on creating a robust and competitive investment climate.

“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people.

“We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts.

“We will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential.”

The President’s engagement with global energy stakeholders has been a key factor in this wave of renewed investments.

In July 2023, during a high-level meeting with Shell’s global leadership, President Tinubu declared: “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”

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Presidential Directives issued in early 2024 further reinforced this commitment, accelerating regulatory approvals, reducing operational costs, and introducing competitive fiscal incentives.

“The Bonga North project is the second major initiative under President Tinubu’s transformative Presidential Directives 40, 41, and 42, which were issued in the first quarter of 2024.

“These directives aim to improve regulatory clarity, shorten project timelines, and incentivise investment in Nigeria’s energy sector.”

Zoë Yujnovich, Shell UK’s Integrated Gas and Upstream Director said Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55 per cent interest.

He said Bonga North project involved drilling, completing and starting up 16 wells (eight production and eight water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

“The project will sustain oil and gas production at the Bonga facility; Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.

“This is another significant investment which will help us to maintain stable liquids production from our advantaged upstream portfolio,” he said.

Yujnovich added that Bonga North would help to ensure Shell’s leading Integrated Gas and Upstream business continued to drive cash generation into the next decade.

Earlier this year, the Ubeta oilfield (OML 58), the first project under these initiatives, also achieved an FID through a partnership between TotalEnergies and NNPC Limited.

The Ubeta project, dormant since its discovery in 1965, is expected to produce 350 million standard cubic feet of gas per day, boosting domestic supply and enhancing Nigeria’s presence in the global energy market.

Ms. Olu Verheijen, Special Adviser to the President on Energy, highlighted the significance of the Bonga North FID, saying it dispelled misconceptions about International Oil Companies (IOCs) exiting Nigeria.

“Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects.

“These projects align with President Tinubu’s vision of transforming Nigeria into a global energy hub,” she noted.

She added that the divestments from onshore operations opened opportunities for local oil and gas companies to expand, thus creating a solid foundation for Nigeria’s energy future.

“The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President.

“These projects will trigger broader investments that will revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.

“As we look ahead to 2025, we anticipate further FIDs from both international and domestic players, marking a new era of growth and opportunity for Nigeria.”

Shell FID on Bonga North excites Tinubu in meeting Nigeria’s energy target

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Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

10 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

10 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.