The Nigerian Government has stated that efforts are underway to restore Nigeria’s oil production, including condensate, to 1.7 million barrels per day.

Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), assured in response to recent concerns about a shortfall in Nigerian oil production in the first quarter of 2024.

According to a statement from Nneamaka Okafor, Special Assistant, Media and Communications, to the Minister, Sen. Lokpobiri, measures are being taken to address the situation and not only restore but also increase production.

The minister clarifies that the reported production shortfall was primarily caused by issues encountered on the Trans Niger Pipeline, as well as maintenance activities carried out by some Nigerian oil companies.

The Minister is also pleased to announce that the issues have been adequately addressed, and that production is expected to resume at previous levels in the coming days.

He expects Nigeria’s oil production, including condensate, to be restored soon, having been around 1.7 million barrels per day (bpd) before these developments.

Furthermore, the Ministry of Petroleum Resources is actively involved in policy development aimed at maximising the utilisation of all available wells in Nigeria.

This strategic approach will allow the country to increase production, generating vital revenue to maintain the country’s foreign exchange reserves.

Increased revenue will also allow the government to meet its commitments to provide essential infrastructure, as outlined in the 2024 budget.

The Minister also expresses renewed optimism as Nigeria navigates these challenges, urging everyone to remain committed to ensuring the long-term viability and growth of Nigeria’s oil sector, which is critical to the country’s economy.

The Society of Petroleum Engineers (SPE) Nigerian Council has called for collaborative efforts to address the challenges and opportunities facing Nigeria’s energy sector.

Salahuddin Tahir, Chairman of the Society of Petroleum Engineers (SPE), Nigerian Council, gave an inspiring speech at the Oloibiri Lecture Series and Energy Forum (OLEF) opening ceremony in 2024.

He emphasised the importance of working together to address Nigeria’s energy sector challenges, as well as the role of the Oloibiri Lecture and Energy Forum (OLEF) Series as a beacon of knowledge, innovation, and progress in the industry.

“This year’s forum focuses on the theme of Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation, and Security, emphasising the importance of collaborative efforts to address challenges and capitalise on opportunities in Nigeria’s dynamic energy landscape,” said Salahuddin Tahir, Chairman of the SPE Nigerian Council.

“The stability of the energy sector is critical to sustaining economic growth, ensuring national security, and promoting environmental sustainability,” Tahir stated.

Mr Tahir also used the occasion to express the SPE Nigerian Council’s support for the country’s bid to host the African Energy Bank’s headquarters, citing Nigeria’s potential and leadership in the energy sector.

In his keynote speech, Mr Mele Kolo Kyari, Group Chief Executive Officer of NNPC Limited, emphasised the critical importance of closing the energy access gap to create economic prosperity in the country. To address Nigeria’s energy access gap, Kyari stated that NNPC Ltd was developing the infrastructure required to deliver oil and gas and drive prosperity for Nigerians.

“We are committed to developing gas infrastructure across the country,” Kyari said, emphasising that the company’s commitment was more than just a statutory requirement under the Petroleum Industry Act, but also a pledge to ensure energy security beyond fuel supply.

“We are committed to investing in critical infrastructure to boost economic growth by supplying gas to the domestic market, with a target of at least 8 billion cubic metres,” Kyari said.

In his address, Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), represented by Engr. Busari Kamoru stated that the federal government has identified transport, infrastructure, and security as key priority areas in addressing the sector’s energy deficit, as these will bring about stability, growth, and the sustenance of a better energy sector.

“Nigeria has the potential to transition to a more sustainable energy future by improving key infrastructure, transportation, and security, as well as embracing research and innovation in renewable energy and fostering collaboration among various stakeholders,” Lokpobiri stated.

In his State of the Industry address, Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), represented by Mrs. Oluremi Komolafe, stated that the shift to gas is not only an option but also a necessity for Nigeria’s economic resilience.

“Our enormous gas resources provide a unique opportunity to diversify our revenue streams and reduce reliance on oil, resulting in a more robust and sustainable economic foundation,” Ekpo stated.

The Society of Petroleum Engineers (SPE) Nigeria Council is a non-profit professional organisation that promotes the petroleum engineering profession and disseminates technical knowledge in the oil and gas industry. The Oloibiri Lecture Series and Energy Forum (SPE OLEF) commemorates the first commercial oil discovery in Nigeria by Shell D’Arcy in 1956 at Oloibiri, Bayelsa State.

Some farmers in Uzere Community, Isoko South Local Government Area, Delta State, who allegedly suffered a devastating oil spill last year, have raised concerns about “the unabated ravaging impact of the spill on their farmland.”

The community appealed to the management of Heritage Energy Operational Services Ltd. (HEOSL).
The oil company operating in the area will conduct proper cleanup and soil remediation in the affected farmland so that farmers can begin cultivation this year.

According to reports, some farmers in the agrarian community have yet to begin cultivating their farmland this year due to alleged poor clean-up and remediation of the affected soil.

Some of the affected farmers who spoke about their experiences as a result of the spill’s impact on their farmlands and ponds lamented that they had been unable to cultivate their farmlands since last year due to soil damage caused by the oil spill.

Mr Peter Oghomomo, one of the affected farmers in the community, stated that the oil spill occurred three kilometres away from his farmland, but because the cleanup was not completed immediately, it spread into his farm and many other farmlands, destroying their farm produce for the previous year, adding that the impact was severe because it occurred during the rainy season.

“We are appealing to the management of Heritage Energy Operational Services to come to our rescue before this year’s rainy season begins.”

Another affected farmer, Prince Owohoro, described how the spill affected their farmlands while lamenting the impending hunger that would strike the community if nothing drastic was done.

According to him, “Soon after the spill occurred, the management of Heritage Energy Operational Services, along with some representatives of our community, conducted a joint investigation visit (JIV) to the site, and it was discovered that the 16 Uzere-Eriemu delivery pipeline was vandalised by third parties.”

“They hired a contractor to do the cleanup and remediation, but little or nothing was done because it was the peak of the rainy season.

“Thereafter, we sent a petition to the company, stating that, while we are peace-loving people, we should not be taken for granted because hunger can drive anyone to do the unthinkable, and this was not responded to.”

Speaking on the issue, the President General of the Uzere Kingdom, Prince Eholor, urged the Heritage Energy Operational Services to listen to the people and carry out proper clean-up and remediation.

“Until the surface of the affected soil is properly scraped off to the level at which the crude sank into the soil, nothing will germinate in those farmlands for a long time.”

“To tell you the delicate nature of oil spillage in our lives, if there is any spark of fire, there will be an outbreak of fire within that area, and that soil will continue to burn until the affected soil is completely
consumed.

“Recently, some farmers who were cultivating their lands for planting had a fire in their land, before they could say jack, the affected soil started burning and this fire lasted days and the people were scared of being consumed”.

Responding to the allegations, the Corporate Communications Manager of Heritage Energy Operational Services Ltd, operator of OML 30 Joint Ventures between NNPCL Exploration and Production Limited and Shoreline Natural Resources Limited Joint Ventures,
Kayode Adebayo said the company’s commitment to environmental stewardship and Corporate Social Responsibility (CSR) is one of the top priority packages for the Oil company.

According to him, Heritage Energy Operational Services Ltd has spent over N67.4 billion on Cooperate Social Responsibility between 2019 and 2023

“Approximately 10% of the CSR budget of N6.96 billion was invested in the implementation of the GMOU across the OML 30 host communities “.

Kayode said contrary to the claim of negligence raised by some members of the community, clean-up was carried out immediately after the joint investigation visit was completed by a representative of the community and the company.

” As a responsible Operator, any spill sighted in our area of operation is immediately addressed by way of clean up regardless of the cause or the source of the spill, Uzere spill was not left out of this standard operating process.

“We have recorded four (4) incidents of oil spill caused by third party infraction in our Uzere location with the last one occurring on 15th of June, 2023 and out of these four, only one was caused by equipment failure.

“The Joint Investigation was carried out immediately with the participation of relevant stakeholders and the outcome was fully signed by all parties in line with regulatory requirements clean up and recovery commenced immediately and a substantial volume from an estimated 20bbl spilt was recovered”.

Kayode further explained that despite the seasonal swampy terrain of Uzere Community, the company defied the constraint and commenced the clean-up activity which was monitored by regulators from a follow-up visit to the site on 15th of June 2023 and 19th of March, 2024.

“There was no visible or free phase hydrocarbon cited during the visit that would pose a further threat to the environment or cause further spread of hydrocarbon to other communities.

“The process of soil remediation across impacted areas is ongoing. in terms of spill percolation, the site is predominantly of clay characteristics, making it difficult for deep percolation across most of the impacted surfaces”, he said.

Speaking on the health packages provided for the Uzere Community, Kayode disclosed that the community is within the coverage area of the services provided by Igbide Hospital which was renovated and being supported by OML 30. “Drugs are supplied and monthly stipends are paid to health workers in the hospital by HEOSL.”.

He also stated that reports gathered from regulators who monitored the site revealed that the spill did not spread further, except already affected soil, and that the community is not eligible for any financial benefits as a result of third-party infractions under the NOSDRA Act.

“As a rule in the industry, and as stated in NOSDRA Act Section 26 (2), third-party infractions (sabotage) do not qualify for any financial benefits to the affected communities.

“We have specific requirements and recommendations for identifying and managing the environmental and social impacts/risks of all our projects.

HEOSL’s Corporate Social Responsibility strategy in OML 30 aims to foster partnerships, share economic benefits from community relationships, and prioritise environmental stewardship.