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OML 42: In Major Boost for Nigeria, Neconde Raises Oil Production to 50,000 Barrels Daily

OML 42: In Major Boost for Nigeria, Neconde Raises Oil Production to 50,000 Barrels Daily

*Company’s financing arrangement on course 

*Industry data shows FTSA model working, firm targets 120,000bpd in 48 months

Emmanuel Addeh in Abuja

Nigeria’s crude oil production has received a major boost, with Neconde, one of the country’s foremost indigenous independent producers hitting 50,000 barrels per day on Oil Mining Licence (OML) 42 as of May 2025.

With the company’s Financial and Technical Services Agreement (FTSA) solidly in place, industry data obtained by THISDAY showed that Neconde has now steadily increased output in the last 24 months by over 100 per cent.

The data indicated that the implementation of the FTSA solution raised production from an average of 15,000 bpd in 2023 to 25, 000 bpd in 2024 and to 2025 year-to-date of 50,000 bpd and aspiration to exit this year at over 70,000bpd.

Besides, the company is expected to hit 120,000 bpd in the next 48 months, deploying its massive human resource and technical expertise to grow the asset.
THISDAY learnt that the company has mostly been able to increase this output, with its philosophy of excellence in service delivery, fair market price, focus on cost discipline as well as optimisation and elimination of non-value adding processes.

Furthermore, whilst developing and empowering  local capacity development as well as working with local communities, the FTSA is enabling the company to put in place the desired governance in terms of processes and procedures.

The arrangement, it was understood, is also ensuring transparency and accountability, direct access to international oilfield services like Shlumberger (SLB) and Haliburton as well Original Equipment Manufacturers (OEMs), a strategic advantage that will help the company achieve its target crude production in the coming years.

The initial aggressive development and intervention campaign successfully executed in 2024 also enabled a second campaign in 2025,  with imminent mobilisation workovers and infill drilling to support the production growth aspiration of over 120,000 bpd.

Set to commence in June 2025, its first rig-based production growth programme since the acquisition of the asset by Neconde in 2011, will enable rapid facility upgrades and life extension. Also, the asset is opening up one of the fields that have not been re-entered and produced since acquisition in 2011, Egwa 2 field, with huge oil and gas reserves.

Although before Shell exited, OML 42 had reached a daily production of circa 250,000, however it was dormant by the time Neconde took it over, after community disturbances that led to facility shutdown around 2005/ 2006.

Specifically, in the last few years, the company, according to available information, has built capacity, especially helped by the FTSA model which was activated in 2022, and could do even more with a little encouragement.

Nigeria currently faces several challenges in raising its oil production, a development that has reduced the volume of crude reaching export terminals and has frequently disrupted operations. Underinvestment in upstream infrastructure is also a significant issue which  has led to facility integrity degradation, extending downtime and production deferments due to frequent equipment failures and poor maintenance practices.

While revitalising the existing but non-functional gas compression facility, it was learnt that the drilling programme also involves gas developments to support the  local gas supplies, eliminate gas flare and improve stakeholder value extraction, as the asset has huge untapped gas reserves. Many oilfields and facilities suffer from neglect, with limited capital expenditure on exploration and maintenance.

But despite the significant bottlenecks, Nigeria has embarked on an ambitious initiative known as ‘Project 1 Million Barrels Per Day’, aiming to significantly boost its crude oil production.  This project seeks to elevate daily output from a baseline of approximately 1.46 million barrels in October 2024 to a long-term target of 3 million barrels bpd.  It is believed that with some support, firms like Neconde could help achieve this target.

With a new NNPC management team led by Mr Bayo Ojulari in place, with a track record of performance in their previous endeavours in the sector, it is believed that to achieve the targets set by President Bola Tinubu, there may be the need to look inwards.

Tinubu had outlined ambitious targets to revitalise Nigeria’s oil and gas sector and bolster the nation’s economy.  The key objectives set for the new NNPC leadership include: Elevating crude oil production, expanding gas output; enhancing refining capacity as well as attracting the right investment to the sector.

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Petrol Retailers Urge NNPC to Adhere to 30-Day Refinery Repair Timeline

Petrol Retailers Urge NNPC to Adhere to 30-Day Refinery Repair Timeline

Blessing Ibunge in Port Harcourt

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC) to adhere to the scheduled 30-day repair timeline for the Port Harcourt Refining Company (PHRC).

This call followed the announcement by the NNPC via its Chief Corporate Communications Officer, Olufemi Soneye, that the facility will undergo a planned maintenance shutdown.

Soneye, in the statement, disclosed that the scheduled maintenance and sustainability assessment will commence on May 24, 2025.

He stated that the company was “working closely with all relevant stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to ensure that the maintenance and assessment activities are carried out efficiently and transparently”.

Expressing concerns over the shutdown of the Old Port Harcourt Refinery, PETROAN’s National President, Billy Gillis-Harry, said the refinery’s shutdown for maintenance is expected, but the association wants the NNPC to adhere to the repair timeline to minimise disruptions to petroleum product supply.

PETROAN expressed the fear that the 30-day schedule might not be realistic due to usual bottlenecks, potentially leading to further delays and exacerbating supply challenges.

The association further expressed worries that delays in the old refinery’s 30-day rehabilitation schedule may worsen economic hardship for millions of Nigerians.

It, however, emphasised that the repair process must include the Premium Motor Spirit (PMS) blending unit, as the crude oil cracking process is of no value without it.

The group also demanded “that NNPC completes the repair before existing stocks run dry to prevent market monopoly and ensure a stable supply of petroleum products”.

It noted that completing the repair on time will help maintain competition in the market, benefiting consumers and the economy.

PETROAN further recommended that the Minister of Petroleum should set up a task force comprising all petroleum industry stakeholders to monitor the 30-day repairs and to brief Nigerians on the job progress every weekend to ensure transparency and accountability in achieving the repair schedule.

The petrol retailers added that payments to contractors handling the repairs be made promptly to avoid delays and ensure the project stays on track.

Meanwhile, an internal memo circulated in the refinery on the Area 5 plant shutdown, yesterday, warned staff not to interact with external people or give information to the media.

The letter also stated that as government workers, it is against the Labour Law to engage pressmen in interviews, adding that any defaulter will be severely disciplined.

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Anyanwu Postpones PDP NEC After Wike Pulled Out of Agreement with Govs

Anyanwu Postpones PDP NEC After Wike Pulled Out of Agreement with Govs

*FCT minister discloses terms of current reconciliation 

*Accuses Makinde of stoking new fire in party, allegedly instigating others against agreement 

*Damagum defends ties with FCT minister, insists party not divided 

*N’Central elects new party executives

Chuks Okocha, Olawale Ajimotokan in Abuja and Seriki Adinoyi in Jos

Hours after Minister of the Federal Capital Territory (FCT), Nyesom Wike, pulled out of a peace agreement he had with Peoples Democratic Party (PDP) governors and declared he was ready for a fight to the finish, National Secretary of PDP, Samuel Anyanwu, announced a postponement of the 99th National Executive Committee (NEC) meeting of the party slated for May 27.

The rearrangement came as acting National Chairman of PDP, Ambassador Umar Damagum, denied allegations of incompetence and collusion with the ruling All Progressives Congress (APC), but defended his relationship with Wike.

In a related development, the North-central zone of PDP held its congress in Jos, the Plateau State capital, and elected new party officials.

A PDP Board of Trustees (BoT) meeting had been slated for today preparatory to the NEC parley, fixed for tomorrow.

But the schedule changed after Anyanwu announced the postponement of the NEC meeting.

A statement by Anyanwu said the postponement was to allow the Senator Bukola Saraki-led Way Forward Committee to conclude its assignment of resolving internal party conflicts.

Anyanwu emphasised that the committee’s work was crucial to ensuring a peaceful and effective NEC meeting.

The statement said a new date for the meeting will be announced in line with the PDP Constitution 2017, as amended, and the Electoral Act, 2022.

The statement warned that any NEC meeting notice or publication issued by deputy national secretary, posing as the acting national secretary, was unauthorised, illegal, and should be disregarded.

Anyanwu expressed regret over any inconvenience the change might cause but reassured stakeholders of his commitment to party unity and progress.

Nevertheless, an official of the party from the publicity directorate asked stakeholders to disregard the statement from Anyanwu.

Earlier in the day, Wike, who went over some of the terms of the peace agreement the party had sealed with him, accused Oyo State Governor ‘Seyi Makinde of stoking a new crisis in the party by allegedly instigating other leaders, including Governor Peter Mbah of Enugu State, to move against the agreement.

Explaining his current position, Wike, in a statement yesterday, which he personally signed, said, “Since after the 2023 general election, the PDP has been wantonly swinging from one part of a slippery precipice to another, owing fundamentally to dishonesty and lack of trust amongst its key stakeholders.

“To stem this ugly trend, efforts have been made to arrest this pernicious virus of dishonesty and treachery and enthrone fidelity to agreements with a view to stabilising the party and moving it forward.

“To this end, a meeting of the G5 was held in Lagos. In that meeting, I made it clear to the Governor of Oyo State, HE. Seyi Makinde, that he was the architect of our problems, pointing out to him that non-adherence to agreements reached was the bane of the party, and that he was the chief culprit of this anomaly.
“At the end of the meeting, we resolved to bury the hatchet and make progress.

“As a follow-up to the aforementioned meeting, there was an expanded meeting in Abuja involving HE. Seyi Makinde, HE. Umaru Fintri, HE. Bala Mohammed, HE, Bukola Saraki, and I in Saraki’s guest house.

“In that meeting, I made it clear that I had no personal problems with HE. Bala Mohammed, except that he hides under the facade of Chairman of PDP Governors’ Forum to serially renege on agreements. Tensions rose mightily in the meeting and it took all concerned to calm frayed nerves.”

Wike said at the end of the meeting, they came to some resolutions, including, “That Senator Samuel Anyanwu remains the National Secretary of the PDP in tandem with the Supreme Court judgement. All legal matters relating to Rivers State must be withdrawn by the National Legal Adviser.

“The suit on the state of emergency be withdrawn forthwith. Nobody should deviate from the agreements so reached.”

According to the minister, “In the light of the foregoing, they pleaded with me to attend the stakeholders’ meeting at the Bauchi Government Lodge, regardless of my many engagements.

“I attended the meeting and clearly reiterated my earlier concerns, and to this end and in order to resolve all other lingering and pending issues, a committee was formed, headed by HE. Bukola Saraki.

“It is disheartening to note that even before the Bukola Saraki Reconciliation Committee began its work, the gentleman’s agreement we reached at Saraki’s Guest House was already being crudely violated.

“To my chagrin, Seyi Makinde had connived with Peter Mbah of Enugu State to orchestrate the summoning of the meeting of so-called South-East leaders to recommend that if Ude-Okoye was not adopted as Secretary, they would pull out of the PDP. I have since granted an interview to the effect that, that resolution of the South-East leaders cannot hold.

“Again, Seyi Makinde organised some people in the National Secretariat to insist that the Deputy National Secretary should act as National Secretary, in violation of the agreement earlier reached. To attempt to give credence to this farce, a letter was written by the Deputy National Secretary, calling for a meeting of the NEC of the party.”

Wike added, in the statement, “Furthermore, the letter confirming the candidacy of the governorship candidate of the party in the forthcoming governorship election in Anambra State, duly signed by the National Secretary, Senator Anyanwu, and the acting National Chairman, was portrayed as rejected by the party through a rebuttal letter signed by the National Publicity Secretary, acting on the orders of Seyi Makinde and Peter Mbah.

“All these actions are in complete violation of the agreements reached and would not do the party any good whatsoever.

“On the 24th of May 2025, in Jos, for instance, a well publicised and properly attended zonal elective congress of the PDP was aborted because the letter inviting INEC to the congress was signed by the Deputy National Secretary of the party.

“INEC refused to attend because the proper signatory recognised by law, that is Senator Samuel Anyanwu, was not a signatory to the invitation notice. This is undeniably distasteful, provocative and annoying, to say the least.

“I have painstakingly put out all these facts so that PDP members and the general public would know the truth. I have been in this party since 1998 and have worked tirelessly for the survival of this party with all my strength and it is on record that none of these persons have done anything close to what I have done to sustain this party.”

Wike stated, “What is more painful is that I contributed substantially to most of these governors winning their elections, yet I have not made any personal demands on any of them and I would never do so.

“Most importantly, I had thought that we could keep the trust amongst us, but since it is now obvious that they would continue to play games to the detriment of the party, as is the case in the current debacle in the North-central zonal elections, I have now firmly decided to pull out of all agreements hitherto reached.
“I have decided to fight on until justice is attained.”

Damagum Defends Ties with Wike, Denies Allegations of Incompetence, Working for APC

Acting National Chairman of PDP, Ambassador Umar Damagum, denied allegations of incompetence and collusion with the ruling All Progressives Congress (APC).

Damagum, who also defended his relationship with Wike, amid mounting criticisms within the party, insisted that PDP was not divided and would soon overcome its challenges.

In an interview with BBC Hausa, Damagun addressed the accusations directly, dismissing claims that he is a puppet of APC. He reaffirmed his loyalty to PDP.
 “May God be judge between me and whoever slandered me, and may God judge us, if I am working for the APC,” he said, referring to allegations that he met with President Bola Tinubu in England.

Damagum emphasised his long-standing commitment to PDP, stating, “I have a history. Since I joined the PDP in 1999, I have never defected. Those who dislike me will have to find ways to either praise or criticise me to get what they want.”

Damagum also responded to criticisms regarding his relationship with Wike. He acknowledged their association but denied any wrongdoing.

He said, “For all those who accuse me of having links with the Minister of FCT, I know him or have had links with him, and many of them have had links with him. My only fault here is that I did not allow them to do what they wanted with him.”

The PDP chairman expressed disappointment over the defection of some party members to APC, describing it as a loss. But he denied any mistreatment of those who left.

Damagum stated, “We must be sad. Whenever you lose someone, you don’t feel happy, even if it’s just one person you’re grieving for.”

He said none of the defectors could claim they were wronged by the party.

Addressing internal divisions within PDP, Damagum admitted that disagreements were inevitable in any political party but maintained that PDP remained united.
He declared, “PDP is one. It is true that there are internal problems, because a party never lacks problems because its leaders are people, and people are in it, and everyone has their own interests.”

Damagum, who also defended his leadership style, stated that he had adhered to principles and refused to yield to individual whims.

He also pointed to the aftermath of the party’s election losses as a period of heightened complaints, but reiterated his commitment to leading PDP with integrity.

North Central PDP Elects New Executives

The North-central zone of PDP held its congress in Jos at the weekend, and elected new party officials.

The congress, which started on Saturday produced Mohammed Abdulrahman as National Vice Chairman (North-central) to lead the zone into future political contests.

The election was widely acknowledged as peaceful and transparent.

Most of the new executives emerged unopposed in the exercise conducted in full compliance with the provisions of the Electoral Act, with voting and counting duly observed in all positions.

Other newly elected officials included Orogu Francis (Zonal Secretary) and Ndagana Alhasan (Zonal Youth Leader).

Held at Langfield Leisure Park, Jos, the congress attracted key stakeholders of the party from across the North-central region, including former senate presidents, past and serving governors, national and state assembly members, former ministers, and other party bigwigs.

In his acceptance speech, Abdulrahman expressed gratitude for the confidence reposed in him and pledged to reposition the party for greater electoral success in the North-central zone.

He described the zone as a stronghold of the party and called on members to rally behind the new leadership to return the party to winning ways.

Plateau State Governor, Caleb Mutfwang, while congratulating the newly elected executives, charged them to immediately set to work and unite the party across the zone.

Mutfwang stated, “Today’s congress was peaceful and successful. It clearly shows that the PDP in the North-central is alive and vibrant. We have shown that we are peace-loving, united, and committed to the ideals of the party.

“To those who stepped down in the spirit of party unity, your sacrifices will not be forgotten. I urge the newly elected executive to hit the ground running, reconcile differences, and build a strong, united front ahead of the 2027 elections.

“Be assured of our continuous support in nurturing the party to meet the aspirations of Nigerians.”