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OTL: $450b needed globally to guarantee stable energy supply

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• Downstream stabilising after subsidy removal, says Lokpobiri

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday said a $540 billion annual investment in oil and gas recovery and associated infrastructure is required globally to guarantee stable energy supply. He based his submission on the projections of a United Nations’ (UN) report. The Minister spoke yesterday at the opening ceremony of the 19th OTL Africa Downstream Energy Week 2025 which began in Lagos. It has as its theme: “Energy Sustainability: Growth Beyond Boundaries & Competition.”
According to him, the recent report by the UN underscores the urgent need for renewed global investment in the oil and gas industry to meet growing global population and energy demands.
The minister also made it known that Nigeria’s downstream sector is gradually stabilising following the removal of fuel subsidy and the liberalisation of petroleum product pricing- a development is described as a “bold and necessary step to attract private sector investment.”
“Subsidy was not sustainable. It discouraged private investment and placed a heavy financial burden on the government. What we are seeing now is a more competitive environment that encourages efficiency, accessibility and availability of petroleum products,” he explained.
In similar vein, the Chairman of the Advisory Board of OTL Africa Downstream Energy Week, Otunba Adetunji Oyebanji, in his opening speech, explained that while the removal of fuel subsidies and market liberalisation in the downstream sector may have presented short-term difficulties, they also mark necessary steps toward building a competitive, efficient and innovation-driven sector. He noted the ongoing progress in logistics optimisation, storage efficiency and digital trading platforms as signs of renewal within the industry.
“The downstream market is evolving amid both turbulence and transformation. Success will depend on our ability to combine innovation with policy stability and operational efficiency,” he said, even as he called for renewed collaboration, policy consistency and innovation to drive Africa’s energy sustainability and competitiveness in a rapidly changing global landscape.
Oyebanji said the conference’s theme underscores the need for Africa and Nigeria to look beyond conventional limits and create an energy future anchored on integration, inclusiveness, and responsible growth.
To this end, Lokpobiri therefore assured that as the world rethinks its approach to energy transition and returning focus to hydrocarbon development as a means of ensuring global energy security, the federal government, he said, is committed to deepening investment in the country’s oil and gas sector.
“The world has come to realise that energy transition cannot happen in a vacuum. Even as we pursue cleaner sources, the global economy still runs on oil and gas. Without substantial investment in these resources, there will be no financial capacities to fund the energy mix we all desire,” Lokpobiri stated.
He noted that while discussions around climate change and net-zero commitments remain important, the realities of global energy consumption and population growth have made it clear that hydrocarbons will continue to play a central role in the foreseeable future.
“Africa, with its population now exceeding 1.4 billion people, cannot afford to ignore investment in oil and gas. Expanding exploration, production and refining capacity is crucial not only for self-sufficiency but also for economic stability across the continent,” he said.
Lokpobiri commended President Bola Tinubu for taking decisive policy actions that have repositioned the downstream sector for long-term growth.
“It takes a courageous leader to make decisions that may be unpopular today but are necessary for the country’s future stability. What we are experiencing now is the outcome of such bold leadership,” he said.
He added that ongoing reforms in the oil and gas industry are geared toward ensuring energy security, encouraging domestic refining and fostering private sector participation across the value chain.
The minister also called on stakeholders in the downstream sector to align with the government’s policy direction and contribute to building a more sustainable and diversified energy future.
“We are no longer just talking about transition; we are talking about an energy mix that guarantees energy security for Africa. Every stakeholder must align with this vision to create the Africa we want,” Lokpobiri emphasised.
According to Oyebanji, the OTL Africa Downstream Energy Week remains a bridge between policy and practice, bringing together regulators, operators, investors and innovators to shape the future of Africa’s downstream energy industry.
“Energy sustainability is not merely about preserving resources; it is about ensuring that our growth today does not compromise the prosperity of tomorrow. We must build an industry that is competitive, responsible, and adaptable to a rapidly changing global environment,” he admonished.
Oyebanji, a former Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), observed that the global energy sector is undergoing major shifts, driven by geopolitical tensions, supply uncertainties and the accelerating march towards energy transition.
He noted that conflicts in Eastern Europe and the Middle East have kept oil markets tight, while the global push toward cleaner fuels and renewables is reshaping investment priorities.
For Africa, he further said, these trends present both challenges and opportunities, insisting that the continent, richly endowed with natural resources and human capital, must move beyond being just a supplier of raw hydrocarbons to becoming a hub for innovation, efficiency and value addition.
“Africa must position itself not just as a source of energy, but as a source of innovation. Our growth must be sustainable, inclusive and borderless,” he echoed.
Oyenabji emphasised that Nigeria remains central to Africa’s energy transformation. The deregulation of the downstream petroleum sector, renewed focus on gas commercialisation and expanding infrastructure, he said, have laid a foundation for long-term growth.
However, he cautioned that sustained progress depends on policy stability, regulatory transparency, and institutional consistency. Investors, he noted, thrive on predictability, and long-term capital inflows which only comes with confidence in the regulatory environment.
Oyebanji called for a new mindset where collaboration becomes the new competition, urging industry players to balance innovation with inclusiveness and competition with cooperation.
“Our capacity to grow beyond boundaries depends not only on how hard we compete but on how well we cooperate,” he said.
He added that the future of energy lies in integration — bridging hydrocarbons, renewables, and alternative energy sources — to create a system that promotes both growth and environmental responsibility.
Oyebanji noted that over the past 19 years, OTL Africa Downstream Energy Week has evolved into the continent’s leading platform for policy dialogue, business networking, and innovation in the downstream value chain.
He urged stakeholders to seize the moment to define Africa’s path toward energy sustainability through infrastructure investment, capacity building and transparent governance. “We must invest in pipelines, depots, data systems and digital tools. We must build capacity through research and innovation. Above all, we must hold ourselves accountable to the highest standards of transparency and environmental responsibility,” he said.
The OTL Africa Downstream Energy Week, now in its 19th edition, serves as a premier platform for policy dialogue, industry networking, and investment promotion across Africa’s downstream petroleum value chain.

Energy

DSCO: 53.7mb of crude supplied in Q2 2026

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• Dangote Refinery tops with 52.6mb

By Oluwayanmife Lucas

A total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, under the Domestic Crude Supply Obligation (DCSO). The figure translates to an overall performance of 97.4 per cent for the second quarter (Q2) of 2026.

The Domestic Crude Supply Obligation (DCSO) is a statutory requirement under Nigeria’s Petroleum Industry Act (PIA) of 2021. It compels upstream oil producers to allocate a specific portion of their crude oil production to local, licensed refineries before they can export the rest. This policy aims to guarantee energy security, reduce heavy reliance on imported petroleum products and shield the domestic economy from foreign exchange volatility.

This was contained in the latest report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on the enforcement of the DCSO in accordance with the provisions of Section 109 of the Petroleum Industry Act (PIA). In line with the PIA, the framework operates on a “willing buyer, willing seller” basis, which shapes eventual outcomes.

In the period under review, on refinery supply basis, he report showed that the Dangote Refinery, which required 63 million barrels in Q2, was offered higher volumes of 68.1 million barrels by the producers. The 68.1 million barrels offered to the Dangote Refinery by producers, the report said, represents 98 per cent of all offered volumes. Dangote Refinery however accepted 52.6 million barrels, representing 78 per cent of the quantity offered her.

The remaining 1.1 million barrels of crude oil supplied were shared by Aradel, Waltersmith, Edo, and another refinery.

According to the report, in the month of April, following consultations with stakeholders, 18, 127, 638 barrels were allocated to producers. It noted that the producers exceeded expectation, offering19, 312, 476 barrels to refiners. Eventually, 20, 879, 381 barrels were supplied to local refiners, meaning the producers met 114.9 per cent of their allocation.

In May, the Commission, in enforcing its DCSO, allocated 18,778, 392 barrels of crude oil to the producers but the producers exceeding their expectation once again, offered 23,187,893 barrels to the local refiners. However, the producers’ actual supply to the refiners by the end of the month stood at 14, 228, 865 barrels representing 75.8 per cent compliance.

NUPRC, in June allocated 18, 172,638 barrels to the producers, while the producers offered 26, 835, 119 barrels to refiners which in turn took 18, 606, 026 barrels representing a 102.4 per cent performance.

In a statement signed by the NUPRC’s Head, Media and Corporate Communications, Eniola Akinkuotu, stated that the improvement in DCSO coincided with an increase in local oil production and the signing of the long term crude supply agreement supported by bankable Sales and Purchase agreement between the Producers and Domestic refiners.

The Commission reaffirms its commitment to achieving the government’s objective of energy sufficiency. Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously enforcing the DCSO.

Akinkuotu in the statement said the statistics shows that DCSO is being actively administered and enforced by the NUPRC. It explained that on a monthly basis, the Commission meets with stakeholders including crude oil producers and local licensed refineries after which the producers are allocated a specific volume of their crude oil and condensate which should be offered to local licensed refineries.

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NDPHC calls for electricity optimisation to drive socio-economic growth

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By Temitayo Lucas

The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, an engineer, has called for the optimisation of Nigeria’s electricity infrastructure as a critical pathway to unlocking the country’s socio-economic transformation, saying reliable power remains the foundation for industrialisation, investment and sustainable national development.

Adighije made the call while delivering the Distinguished Alumni Lecture organised by the Department of Electrical and Electronics Engineering, Faculty of Engineering, University of Lagos (UNILAG), recently. The lecture was titled: “Optimising Electricity for Powering Nigeria’s New Socio-Economic Frontiers.”

According to Adighije, electricity has become the “currency of development” in today’s global economy, stressing that nations with reliable and affordable power supply are better positioned to create jobs, attract investments, drive industrialisation, strengthen healthcare and education systems, and improve the overall quality of life of their citizens.

She noted that the Electricity Act 2023 represents one of the most significant reforms in Nigeria’s power sector by granting states the authority to establish and regulate their own electricity markets.

“The legislation has created unprecedented opportunities for investment, innovation, competition and improved service delivery while accelerating the emergence of vibrant sub-national electricity markets capable of attracting greater private-sector participation,” she said.

Adighije said NDPHC is repositioning itself to maximise the value of its assets by improving operational efficiency, strengthening corporate governance, fostering strategic partnerships and ensuring that investments in the power sector translate into tangible benefits for Nigerians.

She reaffirmed the company’s commitment to supporting the ongoing transformation of the Nigerian Electricity Supply Industry (NESI) through efficient asset management and infrastructure optimisation.

Looking ahead, the NDPHC chief expressed confidence in the next generation of engineers, saying they would play a leading role in deploying smarter electricity grids and cleaner, technology-driven energy systems powered by artificial intelligence, automation, battery storage, smart metering and advanced power electronics.

She urged engineering students to embrace continuous learning, maintain professional discipline and see engineering as a vocation committed to solving societal challenges and building infrastructure that supports economic growth.

Adighije concluded that Nigeria’s electricity sector is entering a new era characterised by reform, innovation, collaboration and increased investment, emphasising that optimising electricity is essential to powering homes, industries and businesses while unlocking the country’s enormous socio-economic potential.

In her opening remarks, the Vice-Chancellor of the University of Lagos, Professor Folasade Ogunsola, described the lecture as a celebration of excellence, collaboration and the enduring legacy of UNILAG.

She commended Adighije as one of the University’s distinguished alumni whose professional accomplishments reflect the institution’s commitment to producing graduates with technical competence, integrity and visionary leadership.

Ogunsola noted that the rapid technological changes associated with the Fourth Industrial Revolution have made stronger partnerships among academia, industry and government increasingly important.

“Through initiatives such as this, we create platforms where experience meets aspiration and where our students are inspired by those who have successfully translated knowledge into impactful service,” she said.

The lecture attracted academics, industry professionals, students and stakeholders from Nigeria’s power sector, providing a platform for robust discussions on electricity sector reforms, innovation and the critical role of engineering in driving the country’s economic development.

 

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Sahara Upstream boost OML 18 capacity with 380,000-barrel MT D Adesanya

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By MonireOluwa Lucas

 

Sahara Upstream has deployed MT D Adesanya, a 380,000-barrel Medium Range (MR) tanker, to enhance crude oil evacuation capacity at OML 18, strengthen operational efficiency and advance sustainability across its marine logistics operations.

The vessel, which has a capacity of more than 62,000 cubic metres of crude oil, will serve as an additional mother vessel for OML 18 crude evacuation operations, complementing MT D Bayero and expanding the infrastructure supporting one of Nigeria’s key upstream assets.

Stationed at Bonny Anchorage, MT D Adesanya will receive crude from shuttle vessels operating within the field before onward transfer to the Floating Storage and Offloading (FSO) Cawthorne facility. It is expected to improve turnaround times by enabling shuttle vessels to discharge more quickly and return to loading operations, enhancing evacuation efficiency, increasing throughput and reducing potential operational bottlenecks.

Speaking on the deployment, Chief Value Officer, Sahara Upstream, Dr. Tosin Etomi, described MT D Adesanya as a significant investment in capacity, resilience and long-term value creation.

“The deployment of MT D Adesanya reinforces our commitment to building the capacity required to support sustainable production growth. By strengthening our evacuation infrastructure, we are enhancing operational reliability, improving efficiency and creating the flexibility needed to support increasing production volumes today and in the future,” he said.

Etomi noted that investments in critical energy infrastructure play an important role in supporting economic growth across Nigeria and the African continent.

“Efficient evacuation systems are essential to maximizing the value of our energy resources. By strengthening capacity and improving reliability, we are contributing to greater export efficiency, supporting economic activity and helping to position Nigeria and Africa to unlock even greater opportunities from their energy resources,” he noted.
Beyond its operational benefits, the vessel also supports Sahara Upstream’s commitment to sustainability by improving the efficiency of marine logistics operations.

“Improved vessel utilisation, reduced waiting times and shorter idle periods translate into a more efficient evacuation system. These gains not only enhance operational performance but also support our sustainability objectives by reducing unnecessary fuel consumption and emissions associated with prolonged vessel downtime,” he explained.

Etomi added that the deployment aligns with Sahara’s Beyond XXX vision, which focuses on making bold, future-facing investments that deliver lasting impact.

“Beyond XXX is about investing today for the opportunities of tomorrow. MT D Adesanya reflects that mindset. It strengthens our current operations while building the resilience, capacity and sustainability required to support the future of energy in Africa.”

For Sahara, the arrival of MT D Adesanya, following the deployment of FSO Cawthorne and the expansion of innovative oilfield services through Arahas Global Oilfield Services, marks another milestone in the organisation’s commitment to operational excellence, responsible growth and strategic investments that create long-term value.

Named in honour of the late Debola Adesanya, who led Sahara’s Kenya operations and contributed significantly to the organization’s growth across East Africa prior to his passing on May 1, 2026, the vessel represents both a strategic investment in the future of energy and a lasting tribute to a respected colleague whose leadership left an enduring impact across the Sahara ecosystem.

Executive Directors, Tope Shonubi and Wale Ajibade, said the vessel also serves as a fitting tribute to the late Adesanya, whose resilience, leadership and friendship left an indelible mark on the Sahara ecosystem.

“Debola was one of the most resilient colleagues and friends we have ever known. This vessel ensures that his legacy continues to inspire future generations. As we reflected during his funeral, the day you are born, you begin to die, but it is how you live between birth and death that defines how you are remembered. Through this strategic asset, Debola’s memory will continue to power progress across Nigeria, Africa and beyond,” Shonubi said.

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