Dangote, marketers not selling dirty petrol, FG insists
06 November 2024 |
2:20 am
Amid accusations of import and local refining of dirty fuel, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has said players in the sector are complying with extant regulations on fuel specifications ahead of the January 2025 deadline.
• Says deregulation not licence to blend off-spec products
• Climate activists disrupt AEW as advocates insist on continued oil drilling
• Govt shifts completion of OB3, AKK pipeline to Dec
• Oil firms divest $7b assets, say Tinubu as ingenious firms produce 30% oil
• HURIWA charges FG to investigate substandard fuel imports
Amid accusations of import and local refining of dirty fuel, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has said players in the sector are complying with extant regulations on fuel specifications ahead of the January 2025 deadline.
This comes as the opening ceremony of the African Energy Week (AEW) in Cape Town, South Africa, took a heated turn, yesterday, as climate activists interrupted proceedings, urging an immediate end to fossil fuel expansion.
Minister of State for Petroleum (Gas), EkperikpeEkpo, speaking at the AEW, disclosed that the completion of the Obiafu/Obrikom/Oben (OB3) gas pipeline, which the Nigerian National Petroleum Company Limited (NNPCL) assured of its completion by last August, would now be completed by the end of this year, while the Ajaokuta/Kaduna/Kano pipeline would be completed by the first quarter of 2025.
While NMDPRA is facing allegations of inability to regulate activities of some operators in the downstream sector, the Executive Director, Health Safety Environment and Community, NMDPRA, Mustapha Lamorde, told the audience at the AEW that no imported Premium Motor Spirit (PMS) in the country was higher than 50ppm.
Dangote has also been accused of refining dirty fuel close to 1,000ppm But the regulator said output from the refinery conformed with the Petroleum Industry Act (PIA), which sets a 50ppm benchmark.
However, it advised Pinnacle Oil and Gas Limited that deregulation should not be used to justify importing off-spec petroleum products or undermining Nigeria’s national interests.
The refinery made this statement in response to remarks by the CEO of Pinnacle Oil and Gas Limited, Robert Dickerman, concerning the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”
Meanwhile, the Human Rights Writers Association of Nigeria (HURIWA) intensified calls for an urgent and transparent investigation into recent allegations made by the Dangote against IOCs.
Lamorde said sulphur content in fuel in Nigeria was reduced from 1,000 ppm in 2016 to 150 in 2017 and now to 50 ppm as allowed by the PIA and the Economic Community of West Africa States (ECOWAS).
“We are fully aligned with the regional specification, which is from the ECOWAS directive of 2022, which puts sulphur content at 50 ppm. That was for all imported products as of that time, then for all local refineries to be given up to January 2025 to implement that. The authority has been deliberate in implementing that.”
“From the beginning of this year, we made sure that both Automotive Gas Oil (AGO) and PMS are within the 50ppm limit. Thankfully, Dangote Refinery is designed to produce at 10ppm, which also coincides with the fixed target of 2030. Importantly, while we work it from the regional angle, we also need to align national regulations, and that is exactly what Nigeria has done,” he said.
Chief Executive Officer of Oando, Wale Tinubu, said $7 billion worth of assets were divested to indigenous oil companies in the last eight years, as the share of Nigeria’s oil production by local companies moved from three to 30 per cent.
He disclosed that indigenous energy companies were stepping up to acquire divested assets from International Oil Companies (IOCs), spearheading a new era of local industry leadership and economic empowerment.
Tinubu, while addressing the recent wave of divestments and acquisitions in the oil sector in Africa and their potential to reshape the continent’s energy future, said from 2015 to 2023, African companies acquired over $7 billion in oil and gas assets from IOCs.
The trend, the Oando boss noted, represents a shift in focus as IOCs divest from high-risk African regions to pursue lower-cost, high-return fields elsewhere.
“This unprecedented shift marks a renaissance for African energy companies,” Tinubu said, adding that indigenous companies now account for 30 per cent of Nigeria’s oil production and control 40 per cent of the nation’s oil reserves.
The factors driving this transformation, according to him, include improved Ease of Doing Business (EoDB), the PIA, strategic partnerships and strengthened local content laws.
The disruption by climate activists occurred as the Executive Chairman of African Energy Chamber (AEC), NJ Ayuk, took the stage, with about three activists, rising from the crowd to display placards calling for an end to oil and gas in Africa.
Having issued warnings before the event, the activists promised to disrupt the four-day conference, aimed at promoting investment in Africa’s energy sector, especially fossil fuel.
In his address, Ayuk defended the continent’s need to develop its oil and gas resources, stressing that Africa, which contributes about three per cent of global greenhouse gas (GHG) emissions, should not be labelled as a climate offender.
He framed the demand to halt fossil fuel projects as an unfair constraint imposed by wealthier nations that rely on Africa for energy resources, yet, push it towards restrictive climate targets.
“It is a journey of energy independence for this continent,” Ayuk stated. “Africa should not be the scapegoat for climate problems it did not create. When Europe and other nations are scrambling for natural gas, why is Africa discouraged from utilising its own to power its people?”
He criticised Western nations for attempting to dictate energy policies while overlooking the daily struggles faced by Africans, many of whom continue to live in poverty without basic amenities.
“This industry will be pivotal in lifting Africans out of poverty,” he said while acknowledging the importance of job creation and energy access for communities across countries like Nigeria, Mozambique, Uganda and Namibia.
Ekpo, who insisted that there was no going back on gas exploration in Nigeria as a key energy transition fuel, noted that the aspirations of the decade of gas for domestic gas implementation “is realisable.”
Meanwhile, the Chairman and CEO of Kosmos Energy, Andy Inglis, said Africa could emulate countries like the United States (U.S.) to become a gas powerhouse and offer lower gas prices.
HURIWA stressed that the implications of the allegations extend beyond market competition, touching on public health, environmental safety and economic stability. The association voiced concern over the alleged lack of a transparent investigation by regulatory authorities into the fuel quality entering Nigeria.
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