Page 17 - AfrOil Week 24 2021

AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE Because we surely do have gas reserve growth. The Federal Government had last year put
First, Nigeria achieved the target of 200 tcf [5.7 Nigeria’s total gas reserves at 203.16 tcf (5.753
Federal government adds tcm] of gas as at January 1, 2019, before the 2020 tcm), representing a marginal increase of 1.16 tcf
targets. Thereafter, government set a target of a (32.85 bcm) or 0.57% from the 202 tcf (5.72 tcm)
nearly 100 bcm to Nigeria’s reserve position of 220 tcf [6.23 tcm] by 2030. recorded in 2019. The recent increase implies
growth of over 3 tcf (85 bcm).
DPR, June 15 2021
national gas reserves has been pushing for a shift in focus in the oil
The Nigerian government, in recent times,
The federal government has announced the dis- Indigenous firms contribute and gas sector, to tap from the country’s huge gas
covery of an additional 3.53 tcf (99.96bn cubic 30% to Nigeria’s gas deposits and reduce the dependence on crude
metres) of gas in the country, further boosting oil.
the existing quantum of reserve to 206.53 tcf reserves, 33% to crude oil DPR, June 14 2021
(5.849 tcm).
Speaking at the Nigeria International Petro- reserves, DPR says
leum Summit (NIPS), held in Abuja recently, MOVES
the Director of the Department of Petroleum The Department of Petroleum Resources (DPR)
Resources (DPR), Sarki Auwalu, noted that the has said that indigenous oil and gas companies LEKOIL issues update
2021 figure, was a major step towards the 220 tcf are now contributing as much as 33% to the
(6.23 tcm) target it set for itself earlier. country’s crude oil reserves and about 30% to its on CEO’s termination
Of the aforementioned amount, Auwalu gas reserves.
stated that the quantum of associated gas now This is as it has announced that Nigeria’s LEKOIL, the oil and gas exploration and produc-
stands at 100.73 tcf (2.853 tcm), while non-asso- proven gas deposits have increased to 206.53 tcf tion company with a focus on Nigeria and West
ciated gas is 105.8 tcf (2.996 tcm) to arrive at the (5.849 tcm). Africa, provides an update on the termination of
new figure, in line with the federal government’s This disclosure was made by the Director, the employment contract of its CEO, Olalekan
“Decade of Gas” declaration. Department of Petroleum Resources (DPR), Akinyanmi.
Nigeria is the largest oil producer in Africa Auwalu Sarki, while speaking at the Nigeria The Company is aware that in late 2020
and holds the largest natural gas reserves on the International Petroleum Summit, in Abuja. Mr. Akinyanmi, without the prior knowledge
continent. It was the world’s fifth largest exporter Sarki noted that while these companies’ contri- or consent of the Company, entered into an
of LNG in 2018, although it continues to battle bution to the reserves was less than 10mn bar- employment contract with Lekoil Nigeria Ltd,
with incessant blackouts due to gas shortage to rels in 2005, it has grown significantly to about to act as its Chief Executive Officer, with effect
power its electric plants. 62mn barrels in 2020. He attributed the growth from January 1, 2021. The Company has been
Auwalu stated that Nigeria’s human and nat- to recent efforts being made on gas exploration advised that this represents a conflict of interest
ural resource coupled with being Africa’s larg- in the country, especially the Decade of Gas and is a breach of his employment contract with
est economy, places it at a vantage position for Initiative. the Company. This was one of the reasons for the
investment and participation, reason the regula- He noted that independent companies termination of his employment contract with the
tory agency has continued to grow the country’s are driving value addition to gas, adding that Company.
reserves. acquisition of divested assets, as well as accel- The Company is aware that Lekoil Nigeria
According to him, Nigeria is positioned to erated appraisal and development efforts, are has stated that Akinyanmi remains the CEO of
optimally develop its oil and gas resources for other driving factors, adding that the country is Lekoil Nigeria. The Company will seek to ensure
the benefit of 200mn shareholders, adding that already benefiting from the deliberate national that Akinyanmi be restricted from continuing
indigenous operators have a significant role to efforts to boost indigenous participation in the in this role as CEO of Lekoil Nigeria, as per the
play in that regard. sector. provisions of his employment contract with the
He assured that government would support The Chairman of Nigerian Gas Association Company. The Company reserves its rights to
indigenous and marginal field operators to grow, and the Managing Director of Shell Nigeria Gas, challenge the validity of any actions in breach of
share, and enhance participation in the sector for Ed Ubong, who spoke at the event, said gas only these provisions and would advise relevant par-
wealth and value creation. accounts for 5% of Africa energy mix. He said, ties to seek the relevant legal advice.
“I’m happy to announce that a critical lever to “Nigeria is sitting on a large, huge resource base The Company notes that the current cor-
achieve the decade of gas is progressing speedily. of gas, but how much gas are we producing? We porate structure containing the Company and
are a top 10 country when we talk of what we Lekoil Nigeria was in place at the time the Com-
have, but when you talk of what we are actually pany was admitted to AIM in 2013 (“Admis-
producing we begin to sit back. We are in the top sion”). The Admission Document is available on
20 range.” the Company website.
Also, at the event, the Minister of State for The Company confirms that, since Admis-
Petroleum, Timipre Sylva said there was a need sion, no changes have been made to the Share-
for the industry to move beyond lips service holders Agreement between the Company and
on gas development. He said, “I want to see a Lekoil Nigeria. A description of the Shareholders
holistic roadmap and action plan that provides Agreement is set out in the Admission Docu-
the appropriate leverage for the way forward in ment. The Shareholders Agreement is between
delivering the Decade of Gas vision. The criti- the Company, Lekoil Nigeria, Mr. Akinyanmi
cal milestone that must be achieved should be and the employees and directors of Lekoil
clearly stated with short-, medium- and long- Nigeria.
term strategies.” LEKOIL, June 10 2021

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