NMDPRA issues oil export terminal licences to NNPC, Belema Oil

Abubakar Yunusa, Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licences for the establishment of two crude oil export terminals.

The authority issued the licences to Belema Sweet Export Terminal Limited and NNPC Exploration and Production Limited, on Tuesday, in Abuja.

Speaking at the event, Farouk Ahmed, chief executive officer (CEO) of NMDPRA, said the licencing for the two crude export terminals would add more than four million barrels of oil to Nigeria’s export storage.

“Our activities today are pursuant to the provisions of the Petroleum Industry Act (PIA), which has stipulated new provisions for the establishment of new export terminals,” Ahmed said.

He quoted section 174(1) (a) of the PIA as stating that except in accordance with an appropriate licence issued by the authority, “a person shall not undertake the following activities with respect to midstream petroleum liquids operations — (a) establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products”.

“The authority has processed and hereby approves terminals establishment licences for:

(a) NNPC Exploration and Production Limited to establish 2,179,747 barrels crude oil terminal at offshore Akwa Ibom state within the waters of the exclusive economic zone Nigeria,” he said.

“Belema Sweet Export Terminal Limited to establish a 2,000,000 barrels crude oil terminal at 20 nautical miles of Kula southern part of exclusive economic zone Nigeria.”

Ahmed said following the issuance of the licences, terminal establishment notices will be published in the federal government gazette.

“The terminals are required to operate within the provisions of the conditions of the licences as contained in the licence documents. Kindly note that the authority is committed to ease of doing business in the industry,” Ahmed said.

Also speaking at the signing ceremony, Tien Jack-Rich, president and founder, Belema Oil Producing Limited, said the facilities would generate over $11bn annually for Nigeria.

He added that Belema Oil would work diligently to get its terminal ready within six months.

“Nigeria will benefit through the revenue earnings from the facility. This terminal has the capacity to generate over $11 billion to our national revenue every single year, and that is 400,000 barrels of crude every single day,” he said.

“With the establishment of Belema Sweet Crude Export Terminal, Nigeria now ranks number one in the world to establish a crude oil export terminal that is climateconscious, where traditional energy and renewable energy integration is operated through a virtual power plant model.”

NCC issues mobile virtual network licence to Routelink for coverage expansion

The Nigerian Communications Commission (NCC) says it has granted Routelink a mobile virtual network operator (MVNOs) licence.

The commission, in a statement on Tuesday, said this is the third licence the company would be getting since it entered Nigeria’s telecommunications space.

The NCC said the MVNO certification is a new mobile licence category that is aimed at bridging the gap between the unserved and the underserved in the country.

An MVNO is a company that does not own a mobile spectrum license but sells mobile services under its brand name using the network of a licenced mobile operator.

Speaking on the development, Femi Adeoti, group managing director of Routelink Group, said the firm got the MVNO licence based on the perception of what it is set to do in the market.

According to Adeoti, the new licensing of MVNOs, which is a new category in Nigeria, would translate into lower costs, more service options, and better quality of service as its ultimate beneficiaries are the subscribers.

“Routelink is excited about the opportunities that abound in the Nigerian telecom marketplace and is determined to make a major difference as regards the quality of service and innovation,” Adeoti said.

On his part, Ikechukwu Nguzo, managing director of Routelink telecom, says he believes the introduction of MVNOs in Nigeria has the potential to stimulate growth in the Nigerian telecom industry.

Nguzo also said MVNOs bear many benefits to consumers, including coverage expansion, more innovative services, improved service offerings, and partnership opportunities.

“MVNOs have continued to gain traction across the world, with the increase in mobile phone users globally,” Nguzo said.

“The increased usage of smartphones and mobile data services, as well as the growing preference for flexible and customised mobile services, are primarily responsible for the growth.

“However, the success of MVNOs in Nigeria would depend on various factors such as regulatory policies, infrastructure availability, and market demand.”

Earlier this month, NCC, in its drive to create an enabling environment, said it had begun issuing the MVNOs licence.

This, the commission, said would generate employment and bridge the gap between the unserved and the underserved society.

The agency believes it would also engender competition and provide choices for telecommunication consumers.