The Nation Newspaper

Category: Energy

  • No fuel price hike, says NNPC

    There won’t be increase in fuel price, despite the rise in the landing cost of imported fuel, Nigerian National Petroleum Corporation (NNPC) Public Affairs Group General Manager, Ndu Ughamadu, has said.

    He said the landing cost goes up when the international price increases, adding that it is a normal occurrence in the global crude oil market.

    He said the government has fixed N145 as official pump price for premium motor spirit (PMS) or petrol, adding that marketers were free to sell it at either the regulated price or below it, depending on market forces.

    In an interview with The Nation Ughamadu denied any increase. He said: “NNPC is yet to give Nigerians the new landing cost of fuel as it is not within its responsibilities to do so. The responsibility of letting the country know what the new landing cost of fuel lies with the Petroleum Products Pricing Regulatory Agency (PPPRA) and being a Federal Government owned- parastatal like NNPC, NNPC cannot exercise control over what the PPPRA does or is expected to do in the Nigeria’s oil and gas industry.

    “The global oil industry moves or operates in line with the market forces. Once there is rise in the global price of crude oil, related activities move in similar direction. That is why the increase in the price of crude and its attendant rise in the price of brining the product to Nigeria do not bother us (Nigeria) much.  Traditionally, refiners of crude abroad ten to increase the cost of processing crude oil into finished products like Premium Motor Spirit, Kerosene and Diesel, when the price of crude rises at the global market.”

    He said the landing cost had increased in the second quarter of the year compared to the first quarter.

    The landing cost as at last December 22 was N171.4 per litre when the price of crude was $64 per barrel. At over $80 per barrel, the landing cost would be well above N180.

    He said the price of crude was below $50 per barrel in the first quarter, stressing that the price of crude is $81 per barrel. He added that the country should expect increase in the landing cost of fuel. According to him, the government, has huge under-recovery to battle in view of the rise in the landing cost.

    Ughamadu said the under-recovery rate is the gap between the cost of buying fuel abroad and the that of selling it at home. He said the government has been subsidising the cost of importing fuel, adding that the corporation was doing to avert fuel scarcity its attendant strains on the economy.

    He said the level of fuel imports by NNPC had grown, adding that the country consumes a little over 50million litres of fuel.

    It would be recalled that the government has taken over fuel import as marketers don’t find it profitable to import, especially without subsidy reimbursement.

  • ‘How ExxonMobil’s N13b investment, others boost Akwa Ibom’s economy

    Mobil Producing Nigeria (MPN), operators of the Nigerian National Petroleum Corporation (NNPC/MPN) joint venture, is a household name in Akwa Ibom State where its operations are based. As part of its corportae social responsibility (CSR), the oil company has invested a N13billion in projects to improve the quality of life of the people in the state, reports EMEKA UGWUANYI.

    Since it began operations more than three decades ago in Akwa Ibom State, ExxonMobil has contributed to the state economy and that of the Federal Government through numerous programmes and projects.

    It has invested in education, health, skill development and forged a mutually beneficial relationship with the host communities.

    Apart from its commitment to providing long-term health, educational and economic benefits to its host communities, it recently performed the ground-breaking ceremony of three major community-assistance projects in the state worth N13 billion.

    The projects include a technical skills acquisition facility at the Community Technical College, Mkpat Enin Local Government Area, trauma centre at the University of Uyo Teaching Hospital and an engineering faculty complex at the University of Uyo.

    The projects are expected to be completed in the next 18 months and the investment is believed to be one of the largest community investment expenditures by any company in the country.

    Specifically, the technical skills centre consists of a three-block training complex for critical skills required in oil and gas careers, such as pipeline fabrication, welding, electrical works, chemical lab works, civil works and engineering.

    The centre is expected to train over 100 students yearly, mostly from the neighbouring communities.

    The trauma centre, which houses  a two-floor medical complex, will help reduce mortality rates from major medical emergencies. It will include resuscitation and burns room, a theatre suite, helipad, ambulance by and triage area, high dependency and radiology units, mini labs, wards, pharmacy, administrative offices, library and doctors’ call and seminar rooms.

    For the engineering complex, it is to be equipped with generators and independent water supply and will feature a two-floor workshops, laboratories, a lecture theatre, conference rooms and faculty offices, It is expected to serve 2000 students, mostly from the state.

    The significance of the projects, according to the company, should be seen from various perspectives in that while the trauma centre would take care of the health needs of the people, the engineering faculty would when completed provide a conductive learning environment for students while the skills acquisition centre will serve as the hub for the training of youths in various vocations.

    Because of the volume of the investment and coming at a time when it seems difficult for oil companies to show commitment to developing their host communities, the ceremony turned out to be a meeting point for top government officials and key players in the oil industry.

    For instance, while the Chairman/Managing Director of Mobil Producing Nigeria Unlimited, Paul McGrath, and the Vice Chairman of the oil company, Udom Inoyo, led the delegation to the ground-breaking, the government was fully represented by Governor Udom Emmanuel, Moses Ekpo, the deputy  and Emmanuel Ekuwem, the secretary to the state government, and commissioners.

    Others at the event were royal fathers and members of the academia.

    It was not that the oil company has not implemented any project of value before in the state. It was because of the likely impact and economic benefits of such a huge investment by the American oil giant in one fell swoop.

    Speaking at the ceremony, McGrath noted the cordial relationship between the oil company and the government. He restated the joint venture’s commitment to long-term operations and mutually beneficial relationship with the state.

    “We know we can continue to count on the support and cooperation of the government, our communities and other stakeholders  as well as all, collectively work towards making these projects a reality and eventually enjoying the many health, educational and economic benefits they are designed to provide to the good people of Akwa Ibom State,” he said.

    According to him, the company has enjoyed relatively peaceful relations with the people of Akwa Ibom in the past three decades, pointing out that it has made community investments in health, education and empowerment projects.

    He maintained that the company is committed to ensuring deeper social and economic benefits for the communities near its operations and across the state in the coming years.

    “We are proud of our contributions and look forward to working with all stakeholders for greater achievements,’’ he said.

    Giving an insight into the choice of the projects, the National Petroleum Investment Management Services (NAPIMS), an arm of NNPC, led by its Group General Manager, Roland Ewubare, said it was an outcome of extensive engagement with key stakeholders in the state and it represents their conviction that direct benefits to citizens should be at the heart of every social investment decision by companies who operate the country’s oil assets.

    Represented by Hillary Akpan, head of Gas unit at NAPIMS, Ewubare said his organisation worked with Mobil Producing in reviewing the investment proposals for the projects, adding that it approved them based on their conviction that they would be of benefits to communities in the state.

    “The projects will address gaps in two focus areas, which we consider vital to social and economic development, capacity and skills development in Nigeria’s oil industry and accessibility to quality health care for citizens. The technical skills centre and the engineering complex when inaugurated will considerably create opportunities for Akwa Ibom State indigenes as well as other qualified Nigerians to develop the much-needed technical skills in our oil and gas industry,” he said.

    Describing the projects as “truly important,” he solicited support for their success by being delivered on schedule. He expressed happiness that the JV partners have over the years found the state and its people to be worthwhile partners to the benefit of stakeholders, adding that it has helped to ensure business sustainability.

    Overwhelmed with joy,  Emmanuel thanked the NNPC/MPN joint venture for the investments and promised to ensure that the peaceful atmosphere prevalent in the state is sustained.

    The governor explained that the location of the projects was not based on any political consideration, maintaining that those who are likely to be the major beneficiaries are from the state.

    The paramount ruler of Eket Local Government Area, one of the core oil producing communities also lauded the JV. However, he expressed mixed feelings that one of the projects should have been located in the oil-bearing communities.

    Indeed, the JV partners have demonstrated their commitment to contributing to the growth agenda of the state and their decision to invest  on the projects is a testimony to this and will create long-term economic benefits in the state.

  • Expert to govt: avoid Venezuela’s oil resource management failure

    A Expert have advised the Federal Government to learn from the oil resource management failure which has brought woes to Venezuela.

    Speaking at a roundtable on the Petroleum Industry Governance Bill (PIGB) organised by Centre for Financial Journalism in partnership with Facility for Oil Sector Transformation, a DFID-funded programme, in Lagos, a petroleum industry lawyer, Mr. Israel Aye said the Venezuelan oil sector failed despite having the world’s largest hydrocarbon reserves.

    He said the problems with the Venezuelan oil management style are resource nationalism, hubris, lethargy and comatose oil economy.

    Aye,  who is the senior partner at Primera Africa Legal, noted that hubris as displayed by Nigeria in its two-D approach to the sector management, adding that it is gradually driving the country towards ‘Venezuelan cul-de-sac’.

    He said the approach is hinged on state control and investment from foreign investors whereas a three-D approach is based on the state, investor and competition.

    Aye observed that because the oil and gas sector has yet to witness the necessary reforms, the country has not experienced the benefits of an oil-powered economy.

    “Nigeria, unfortunately, does not operate an oil economy but an extractive industry.”

    To address a country as an oil economy, he said,  is when the entire value from the petroleum value chain is explored and maximised in-country and used to power other sectors for the benefit of its citizens, citing Norway and United States as examples.

    He maintained that the tendency to dismiss the call for improvement in the oil sector by calling for departure from or a diversification away from the sector simply begs the question. This is because the revenue, which Nigeria makes from the oil industry, is what some have called, “easy money” that can be used to power the economy towards genuine diversification just like the American economy.

    But this easy money is unfortunately mismanaged or diverted for non-productive purposes in contrast to other nations that used such “easy money”to power and diversify their economy, he said.

    Examples are Norway, Scotland, The Netherlands and others around the North Sea. “Nigeria is mismanaging this resource; and so we are pushing ourselves to the brink of a crisis. Indeed the oil economy in Nigeria is in crisis”.

    He argued that because Norway runs a better oil and gas economy, in the last 20 years, it has succeeded in accumulating an excess of $1 trillion in its Sovereign Wealth Fund (SWF).

    “The gains are due to good management of their oil resource,”he said.

  • Firm builds pipe milling plant

    AN indigenous oil service company, Solewant Group, has begun the construction of a Longitudinal Submerged-Arc Welded (LSAW) carbon steel pipe milling plant in Nigeria.

    Its Group Executive Director, Mr. Matthew Aganren, told The Nation that the company invested in the plant  to meet the growing demands for steel pipes in the country and the sub-Saharan Africa.

    He showed the company’s competence in the petroleum industry during a presentation to the Nigerian National Petroleum Corporation (NNPC) Group Managing Director Dr. Maikanti Baru when he visited Solewant’s booth with oil and gas chief executives at the Offshore Technology Conference (OTC) in Houston, Texas, United States.

    Aganren said Solewant Steel Pipe Manufacturing Plant is configured to highest industry technology and will be producing 12-inch to 56-inch steel pipes to serve the oil and gas.

    He noted that the company is  able to conform to tailor-made solutions for the most demanding project requirement by taking advantage of its strong industrial system, experience in pipeline corrosion protection, extensive inspection and testing programmes with state-of-the-art multilayer pipe coating plant, concrete weight coating plant and laboratory facilities.

    Aganren, who led Solewat’s team the conference, noted that the participation of the company in this year’s edition of the OTC, is in line with the vision of the Group to showcase the company’s brand new pipe coating plant, concrete weight coating plant and ultra-modern pipe coating laboratory facilities and pipeline field joint coating equipment acquired as backbone for competence to the oil and gas project owners.

    He said these automated factories are configured to respond to corporate dream of Solewant and to become one of the major participants in value creation in the country’s challenging business environment, local job creation, increased Gross Domestic Product (GDP), and technology transfer and to continue to stimulate cooperation from both local and foreign actors. This feat, according to him has the capacity to promote Nigeria’s dream of backward integration development.

    “We are known for quality and visitors to our stand can testify to the quality of facilities that we have acquired over the years, through slide that shows how our workers execute various projects at our facilities in Nigeria,” he said, adding that, among other world-class projects  delivered to International Oil Companies (IOCs) and Engineering Procurement and Construction Companies or Contractors (EPCs), Solewant also, last year provided excellent and reliable multilayer pipeline field joint coating on Chevron/EESP project at Excravos.

    “Providing evidence of our capacities at this year’s OTC convinced several leaders of the oil and gas industry that there is no project too large or too small, and no place too remote for us to handle and/or access when it comes to project delivery.

    “We are committed to the formation of strategic, veritable, formidable partnership/consortium and alliance with foreign technical partners. The partnership/alliance is revealed in the competence and proven performance in line pipe and field joint coating services for leading indigenous and international oil and gas services firms. These were Total, NNPC, ExxonMobil, Nestoil, Seplat, Shell, G.C. Limited, Oilserv, Chrome Oil, Port Harcourt Refinery and Petrochemical Company, Indorama Group, East Gas Company Limited, Subsea 7 and Delta Afrik

    “Our competence and proven performances have given us a solid reputation that is built on consistency, expertise and client support. It has also helped the company to be strategically positioned to provide both unique pipeline coating equipment, necessary skills (NACE Certified Coating Inspectors) and standard end to end pipe protection services to oil and gas companies.

    ‘’Our competences include multilayer polyethylene/Polypropylene pipe coating services – 3LPE, 3LPP to 5LPP, 100 per cent solid modified polyurethane pipe and metal coating services;100 per cent solid (Solvent-free); Epoxy coating services; Solvent based epoxy & Poly urethane coating application services, Concrete weight coating services and steel pipe milling services.

    “Solewant Group with its subsidiaries (Solewant Nigeria Limited, Solewant Specialty Protective Coatings & Paints Limited, and Field Joint Coating Limited) provide steel pipe and field joint coating services in support of oil, gas, water, chemical processing, mining, refining, electric utility, transportation and marine industries,” he said

    Baru assured him that the vision of NNPC is to encourage steel pipe production within the next five years.

  • Meter manufacturers to govt: break DisCos’ monopoly

    Electricity Meters Manufacturers Association of Nigeria (EMMAN) has advised the Federal Government to break the monopoly of electricity distribution companies (DisCos) in the sale of meters to consumers.

    Its Executive Secretary, Muyideen Ibrahim, told The Nation  that the development would go a long way in addressing the challenges with estimated billings.  According to him, breaking the monopoly would enable electricity consumers buy and own meters.

    He said it would also address complaints over-estimated and outrageous billing from the DisCos.

    Ibrahim said the association had always advocated that the government should liberalise the metering arm of the sector so that everybody could have access to a meter.

    He said: “If every consumer has a prepaid meter, it will allow them to manage their electricity consumption and the DisCos will collect revenue maximally without billing outrageously. But now the consumers are short-changed because they are being given estimated bills. It presupposes that the DisCos are smiling to the bank while the consumers are suffering.

    “Unfortunately, some of the DisCos complain that they don’t have the fund to invest in metering, whereas the meters are available in various warehouses of the manufacturers. If the telecom sector could be liberalised, why not in metering? It will enhance the  power sector and also add value to it.”

    Ibrahim called for a metering summit where stakeholders would come discuss the challenges facing the DisCos and meter manufacturers.  According to him, the manufacturers had invested massively in meters, but unfortunately, they did not have enough patronage for them to do more.

    “It would only be driven by technology. The key thing is the metering code and specification that all the meter manufacturers will comply with. The local meter manufacturers should be encouraged, and as such the government should provide an enabling environment and facilities such as power for them, because they all rely on generating sets to run their businesses.’’

    He urged the Central Bank of Nigeria (CBN) to provide funds for meter manufacturers at single interest rate, stressing that the idea would enable them to import basic raw materials from overseas.

    He said meter manufacturers must have unfettered access to foreign exchange, adding that the development would enable manufacturers to produce at full capacity,

  • Meter manufacturers to govt: break DisCos’ monopoly

    Electricity Meters Manufacturers Association of Nigeria (EMMAN) has advised the Federal Government to break the monopoly of electricity distribution companies (DisCos) in the sale of meters to consumers.

    Its Executive Secretary, Muyideen Ibrahim, told The Nation  that the development would go a long way in addressing the challenges with estimated billings.  According to him, breaking the monopoly would enable electricity consumers buy and own meters.

    He said it would also address complaints over-estimated and outrageous billing from the DisCos.

    Ibrahim said the association had always advocated that the government should liberalise the metering arm of the sector so that everybody could have access to a meter.

    He said: “If every consumer has a prepaid meter, it will allow them to manage their electricity consumption and the DisCos will collect revenue maximally without billing outrageously. But now the consumers are short-changed because they are being given estimated bills. It presupposes that the DisCos are smiling to the bank while the consumers are suffering.

    “Unfortunately, some of the DisCos complain that they don’t have the fund to invest in metering, whereas the meters are available in various warehouses of the manufacturers. If the telecom sector could be liberalised, why not in metering? It will enhance the  power sector and also add value to it.”

    Ibrahim called for a metering summit where stakeholders would come discuss the challenges facing the DisCos and meter manufacturers.  According to him, the manufacturers had invested massively in meters, but unfortunately, they did not have enough patronage for them to do more.

    “It would only be driven by technology. The key thing is the metering code and specification that all the meter manufacturers will comply with. The local meter manufacturers should be encouraged, and as such the government should provide an enabling environment and facilities such as power for them, because they all rely on generating sets to run their businesses.’’

    He urged the Central Bank of Nigeria (CBN) to provide funds for meter manufacturers at single interest rate, stressing that the idea would enable them to import basic raw materials from overseas.

    He said meter manufacturers must have unfettered access to foreign exchange, adding that the development would enable manufacturers to produce at full capacity,

  • No fuel price hike, says NNPC

    There won’t be increase in fuel price, despite the rise in the landing cost of imported fuel, Nigerian National Petroleum Corporation (NNPC) Public Affairs Group General Manager, Ndu Ughamadu, has said.

    He said the landing cost goes up when the international price increases, adding that it is a normal occurrence in the global crude oil market.

    He said the government has fixed N145 as official pump price for premium motor spirit (PMS) or petrol, adding that marketers were free to sell it at either the regulated price or below it, depending on market forces.

    In an interview with The Nation Ughamadu denied any increase. He said: “NNPC is yet to give Nigerians the new landing cost of fuel as it is not within its responsibilities to do so. The responsibility of letting the country know what the new landing cost of fuel lies with the Petroleum Products Pricing Regulatory Agency (PPPRA) and being a Federal Government owned- parastatal like NNPC, NNPC cannot exercise control over what the PPPRA does or is expected to do in the Nigeria’s oil and gas industry.

    “The global oil industry moves or operates in line with the market forces. Once there is rise in the global price of crude oil, related activities move in similar direction. That is why the increase in the price of crude and its attendant rise in the price of brining the product to Nigeria do not bother us (Nigeria) much.  Traditionally, refiners of crude abroad ten to increase the cost of processing crude oil into finished products like Premium Motor Spirit, Kerosene and Diesel, when the price of crude rises at the global market.”

    He said the landing cost had increased in the second quarter of the year compared to the first quarter.

    The landing cost as at last December 22 was N171.4 per litre when the price of crude was $64 per barrel. At over $80 per barrel, the landing cost would be well above N180.

    He said the price of crude was below $50 per barrel in the first quarter, stressing that the price of crude is $81 per barrel. He added that the country should expect increase in the landing cost of fuel. According to him, the government, has huge under-recovery to battle in view of the rise in the landing cost.

    Ughamadu said the under-recovery rate is the gap between the cost of buying fuel abroad and the that of selling it at home. He said the government has been subsidising the cost of importing fuel, adding that the corporation was doing to avert fuel scarcity its attendant strains on the economy.

    He said the level of fuel imports by NNPC had grown, adding that the country consumes a little over 50million litres of fuel.

    It would be recalled that the government has taken over fuel import as marketers don’t find it profitable to import, especially without subsidy reimbursement.

     

  • Expert to govt: avoid Venezuela’s oil resource management failure

    A Expert have advised the Federal Government to learn from the oil resource management failure which has brought woes to Venezuela.

    Speaking at a roundtable on the Petroleum Industry Governance Bill (PIGB) organised by Centre for Financial Journalism in partnership with Facility for Oil Sector Transformation, a DFID-funded programme, in Lagos, a petroleum industry lawyer, Mr. Israel Aye said the Venezuelan oil sector failed despite having the world’s largest hydrocarbon reserves.

    He said the problems with the Venezuelan oil management style are resource nationalism, hubris, lethargy and comatose oil economy.

    Aye,  who is the senior partner at Primera Africa Legal, noted that hubris as displayed by Nigeria in its two-D approach to the sector management, adding that it is gradually driving the country towards ‘Venezuelan cul-de-sac’.

    He said the approach is hinged on state control and investment from foreign investors whereas a three-D approach is based on the state, investor and competition.

    Aye observed that because the oil and gas sector has yet to witness the necessary reforms, the country has not experienced the benefits of an oil-powered economy.

    “Nigeria, unfortunately, does not operate an oil economy but an extractive industry.”

    To address a country as an oil economy, he said,  is when the entire value from the petroleum value chain is explored and maximised in-country and used to power other sectors for the benefit of its citizens, citing Norway and United States as examples.

    He maintained that the tendency to dismiss the call for improvement in the oil sector by calling for departure from or a diversification away from the sector simply begs the question. This is because the revenue, which Nigeria makes from the oil industry, is what some have called, “easy money” that can be used to power the economy towards genuine diversification just like the American economy.

    But this easy money is unfortunately mismanaged or diverted for non-productive purposes in contrast to other nations that used such “easy money”to power and diversify their economy, he said.

    Examples are Norway, Scotland, The Netherlands and others around the North Sea. “Nigeria is mismanaging this resource; and so we are pushing ourselves to the brink of a crisis. Indeed the oil economy in Nigeria is in crisis”.

    He argued that because Norway runs a better oil and gas economy, in the last 20 years, it has succeeded in accumulating an excess of $1 trillion in its Sovereign Wealth Fund (SWF).

    “The gains are due to good management of their oil resource,”he said.

  • ‘How ExxonMobil’s N13b investment, others boost Akwa Ibom’s economy

    Mobil Producing Nigeria (MPN), operators of the Nigerian National Petroleum Corporation (NNPC/MPN) joint venture, is a household name in Akwa Ibom State where its operations are based. As part of its corportae social responsibility (CSR), the oil company has invested a N13billion in projects to improve the quality of life of the people in the state, reports EMEKA UGWUANYI.

    Since it began operations more than three decades ago in Akwa Ibom State, ExxonMobil has contributed to the state economy and that of the Federal Government through numerous programmes and projects.

    It has invested in education, health, skill development and forged a mutually beneficial relationship with the host communities.

    Apart from its commitment to providing long-term health, educational and economic benefits to its host communities, it recently performed the ground-breaking ceremony of three major community-assistance projects in the state worth N13 billion.

    The projects include a technical skills acquisition facility at the Community Technical College, Mkpat Enin Local Government Area, trauma centre at the University of Uyo Teaching Hospital and an engineering faculty complex at the University of Uyo.

    The projects are expected to be completed in the next 18 months and the investment is believed to be one of the largest community investment expenditures by any company in the country.

    Specifically, the technical skills centre consists of a three-block training complex for critical skills required in oil and gas careers, such as pipeline fabrication, welding, electrical works, chemical lab works, civil works and engineering.

    The centre is expected to train over 100 students yearly, mostly from the neighbouring communities.

    The trauma centre, which houses  a two-floor medical complex, will help reduce mortality rates from major medical emergencies. It will include resuscitation and burns room, a theatre suite, helipad, ambulance by and triage area, high dependency and radiology units, mini labs, wards, pharmacy, administrative offices, library and doctors’ call and seminar rooms.

    For the engineering complex, it is to be equipped with generators and independent water supply and will feature a two-floor workshops, laboratories, a lecture theatre, conference rooms and faculty offices, It is expected to serve 2000 students, mostly from the state.

    The significance of the projects, according to the company, should be seen from various perspectives in that while the trauma centre would take care of the health needs of the people, the engineering faculty would when completed provide a conductive learning environment for students while the skills acquisition centre will serve as the hub for the training of youths in various vocations.

    Because of the volume of the investment and coming at a time when it seems difficult for oil companies to show commitment to developing their host communities, the ceremony turned out to be a meeting point for top government officials and key players in the oil industry.

    For instance, while the Chairman/Managing Director of Mobil Producing Nigeria Unlimited, Paul McGrath, and the Vice Chairman of the oil company, Udom Inoyo, led the delegation to the ground-breaking, the government was fully represented by Governor Udom Emmanuel, Moses Ekpo, the deputy  and Emmanuel Ekuwem, the secretary to the state government, and commissioners.

    Others at the event were royal fathers and members of the academia.

    It was not that the oil company has not implemented any project of value before in the state. It was because of the likely impact and economic benefits of such a huge investment by the American oil giant in one fell swoop.

    Speaking at the ceremony, McGrath noted the cordial relationship between the oil company and the government. He restated the joint venture’s commitment to long-term operations and mutually beneficial relationship with the state.

    “We know we can continue to count on the support and cooperation of the government, our communities and other stakeholders  as well as all, collectively work towards making these projects a reality and eventually enjoying the many health, educational and economic benefits they are designed to provide to the good people of Akwa Ibom State,” he said.

    According to him, the company has enjoyed relatively peaceful relations with the people of Akwa Ibom in the past three decades, pointing out that it has made community investments in health, education and empowerment projects.

    He maintained that the company is committed to ensuring deeper social and economic benefits for the communities near its operations and across the state in the coming years.

    “We are proud of our contributions and look forward to working with all stakeholders for greater achievements,’’ he said.

    Giving an insight into the choice of the projects, the National Petroleum Investment Management Services (NAPIMS), an arm of NNPC, led by its Group General Manager, Roland Ewubare, said it was an outcome of extensive engagement with key stakeholders in the state and it represents their conviction that direct benefits to citizens should be at the heart of every social investment decision by companies who operate the country’s oil assets.

    Represented by Hillary Akpan, head of Gas unit at NAPIMS, Ewubare said his organisation worked with Mobil Producing in reviewing the investment proposals for the projects, adding that it approved them based on their conviction that they would be of benefits to communities in the state.

    “The projects will address gaps in two focus areas, which we consider vital to social and economic development, capacity and skills development in Nigeria’s oil industry and accessibility to quality health care for citizens. The technical skills centre and the engineering complex when inaugurated will considerably create opportunities for Akwa Ibom State indigenes as well as other qualified Nigerians to develop the much-needed technical skills in our oil and gas industry,” he said.

    Describing the projects as “truly important,” he solicited support for their success by being delivered on schedule. He expressed happiness that the JV partners have over the years found the state and its people to be worthwhile partners to the benefit of stakeholders, adding that it has helped to ensure business sustainability.

    Overwhelmed with joy,  Emmanuel thanked the NNPC/MPN joint venture for the investments and promised to ensure that the peaceful atmosphere prevalent in the state is sustained.

    The governor explained that the location of the projects was not based on any political consideration, maintaining that those who are likely to be the major beneficiaries are from the state.

    The paramount ruler of Eket Local Government Area, one of the core oil producing communities also lauded the JV. However, he expressed mixed feelings that one of the projects should have been located in the oil-bearing communities.

    Indeed, the JV partners have demonstrated their commitment to contributing to the growth agenda of the state and their decision to invest  on the projects is a testimony to this and will create long-term economic benefits in the state.

  • Delta APC: Torn apart by congress

    The Delta State All Progressives Congress (APC) has conducted parallel congresses which have escalated its crisis. Correspondent POLYCARP OROSEVWOTU examines the implications of the polarisation.

    Despite the conclusion of congresses by the All Progressives Congress (APC) in Delta State, the fate of the party still hangs in the balance. There is no clear winner in the battle for the soul of the party. Also, there is no clear direction towards next year’s general elections.

    Two state executive committees have emerged. Prophet Jones Ode Erue, was re-elected for a second term at a congress supervised by Senator Olugbenga Obadara. His deputy, Chief Cyril Ogodo, emerged two days later at another congress organised by Eugene Odoh.

    Erue has the backing of Ovie Omo-Agege, the senator representing Delta Central at the National Assembly and Chief Great Ogboru, who has consistently contested governorship elections in the state since 2003. He had come second in those elections amidst allegations of massive rigging by the People’s Democratic Party (PDP). Ogodo is being supported by Olorogun Otega Emerhor, the 2015 governorship candidate of the party who came third during the election and Chief Hycinth Enuha, a chieftain of APC.  Ogboru, is seeking the APC ticket, while Emerhor has ruled himself outis not re-contesting. “The environment and projection of us winning this time, does not allow me to contest in 2019.”, Emerhor said.

    Origin of the party’s crisis:

    As the 2015 candidate of the party, Emerhor held sway as leader, controlling the party structure, from ward executive to the State Working Committee, as well as enjoying the full support of the Erue-led executive. Despite the resistance by the late Senator Spanner Okpozo and Chief Adolor Okotie-Eboh-led factions of the party, Emerhor’s leadership was never in doubt.

    That was the case, until the influx of new members, following the victory of President Muhammadu Buhari during the 2015 general elections. The alleged threat to Emerhor’s grip on the party started with the entrance of Chief Great Ogboru, Senator Ovie Omo-Agege and former Speaker of the State House of Assembly, Victor Ochei into the party in 2016. At that time, there was a State High Court ruling dissolving the Erue-led Exco, which political observers saw as a great opportunity to properly integrate the new entrants into the party by setting up a Caretaker Committee to midwife an all inclusive executive for the party. Emerhor and Erue resisted that move and with the backing of the national chairman of the party, Chief John Oyegun, they both prevailed until the judgment was upturned by the Court of Appeal.

    With the new ruling, all parties accepted the Erue-led Exco as peace returned to the party. But, unity continued to elude the party as various groups emerged within the party with the birth of Mainstream Delta APC (MDA), Light of Delta APC (LDA) and Consolidated Delta APC, which were convened by Emerhor, Ogboru and Enuha until they were all dissolved in February, following the intervention of former Governor Adams Oshiomhole.

    The cracks in the party have become so deep that they could not be wished away by fiat and as the at the struggle for the control of the party ahead of the 2019 elections rages on, there were significant realignments.

    Emerhor lost the majority support in State Working Committee. The State Chairman, Prophet Jones Erue, and nine other key members of the 16-man State Working Committee, including the Secretary and Organising Secretary, dumped Emerhor and pitched tent with Ogboru and Omo-Agege. Enuha and some some members of CDA joined Emerhor, while Dr Veronica Ogbuagu, Dr. Alex Ideh and Chief Lucky Jerry Esigie joined the Ogboru camp. The realignment of forces became what was described as tendencies by Emerhor.

    Divided by congress:

    The congress to elect new leaders was seen by political observers as an opportunity to unite the party, but that was not to be. The major players thought otherwise. To them, it was an opportunity to show strength and “demonstrate who is stronger or more on ground”. This has now led to the emergence of parallel executives with political foes betraying one another, amid 2015 calculations. They are planning to seize the party structure, ahead of primaries and next year’s general elections.

    Two incidences caused the emergence of parallel congresses. First was the theft of 100 out of the 270 result sheets and the entire summary of results sheets for the ward congress, which according to Erue, “were stolen or criminally removed from official custody by unknown persons”.

    The second was the insistence of Alhaji Sani Dododo to report to the State Chairman as directed by the the National Working Committee and work with the Local Organising Committee appointed by the party under the leadership of Erue. This led to a split in the Delta State Ward and Local Government Congress Committee, with Alhaji Usman Kutigi, the Secretary and Mallam Kassim Mahmud, a member choosing to work with Emerhor. And Dododo was removed. The same scenario played out with the State Congress Committee when Senator Obadara was purported to have been removed.

    Police indicts congress committee secretary

    Having discovered that 100 result sheets for the ward congress were missing a day before the congress, Dododo and Kutugi reported the matter to the police. On return from the field on Congress day, Dododo discovered that the Secretary, Kutugi, had disappeared with the entire summary of results for wards. After its investigation, the police indicted Kutugi and Mahmud of complicity in compromising the outcome of the congress.

    The report, which was signed by the state commissioner of police, Muhammed Mustafa, described them as “fugitives from justice,” adding: “A case of conspiracy and stealing of the congress sensitive materials has been established against them and we are searching for the principal suspects in order to bring them all to book”.

    “So, the police, DSS and Dododo, after consulting with the National decided that since only 100 out of the 270 were stolen, let them make photocopy of the original to make the 270 result sheets. Dododo had to sign the photocopies with the consent of the National. With this they went to the field on congress day. It was when they returned to enter the results into the summary of result sheets that the chairman discovered that the secretary has disappeared with the summary of result sheets.  Subsequent investigation by the police tracked them to Port Harcourt”, Erue further explained, adding that it was at this point that the chairman, DSS and police decided to announce the results.”

    Results of Ward Congress

    On Monday May 7, Dododo announced at the party headquarters in Asaba, the state capital, that Ward Congress has been concluded and that the results with him were the valid results. Dododo urged Deltans and party faithful to disregard any other result announced elsewhere as they were null and void. “No other result will be accepted outside what we have here,” he said.

    Two days later, it was announced that Dododo has been replaced by the National Chairman, Chief John Odigie Oyegun. In a letter to the Delta Police boss, the National Secretary of the party, Mai Malu Buni, informed the police that chairman of the ward and local council congress committee, Dododo, has been removed and replaced by Chief Emmanuel Chindah, alleged to be a close ally to the Minister of Transport, Chibuke Amaechi. Meanwhile, Kutigi also submitted a different set of results, which he cosigned with Mahmud, the two men who have been indicted by the police for trying to manipulate the Ward Congress.

    Despite the rumour of his purported sack Oyegun did not tell him he has been sacked. As a consequence, he returned to Delta State to conduct the Local Government Congress on the 12th of May and again submitted his report to the national secretariat in Abuja on the 14th.  Emmanuel Chindah also submitted another set of Local Government results to the Appeal Panel in Asaba.

    The same scenario played out in the State Congress, with Senator Obadara, who was appointed by the NWC, but was also removed by Oyegun, amidst disagreements on who to report to in Delta. The secretary of the committee Olayinka Rickets and Dr. Omirin Adewale, a member, were removed too for allegedly wanting to work with Senator Obadara and were replaced by Eugene Odoh as chairman, John Clark Dabwan, secretary and Chief Jonathan Jibrin as member.

    Emergence of factional State Exco

    On May 19, a letter signed by the APC National Secretary, Hon. Mai Mala Buni dated 18th May 2018 was released informing INEC that the conduct of State Congress in Delta State has been rescheduled for Monday, 21st May 2018.  Curiously, unlike a similar letter notifying INEC of the venues of local government congress which had the receipt stamp of INEC, this one had no such acknowledgement receipt.

    Nevertheless, the Senator Obadara led-committee, which was appointed by the NWC, was in Delta to conduct the State Congress. At the Congress which held at St. Mulumba Secondary School, Okpanam, Asaba,  Erue was re-elected for another four years. Others elected included; Mr Elvis Ayemanor, Deputy Chairman and Mr. Chidi Okonji as state Secretary.

    The Congress was attended by APC Senator Ovie Omo-Agege, Chief Great Ogboru, Mrs. Marian Ali, Chief Frank Kokori, Lauretta Onochie, the Special Adviser on Social Media to President Muhammad Buhari, Dr. Alex Ideh, Chief Lucky Jerry Esigie and a host of other party chieftains across the three senatorial districts. Shortly after the exercise, Omo-Agege said the Obadara-led committee was empowered to conduct the congress and that there was no counter directive to that effect.

    “Any other committee outside the Senator Obadara committee is null and void, and their action is of no consequences. I applaud the delegates for making a wise decision in electing the executives and congratulate the new state executive”, he said.

    Also applauding the conduct of the congress, Special Assistant to the President on Social Media Lauretta Onochie described the exercise as ‘done and dusted’. “We refused to be intimidated by one man whose oxygen is impunity and who sought to change the date, venue and the set rules for a lawful congress. We refused to work with rumours generated by those who want to run the APC by the impunity they have learned over the years”, Onochie said.

    As Obadara was submitting his report and results at the National Headquarters of APC in Abuja on Monday, another Congress was taking place at the old site of the Federal Technical College, Asaba, amidst tight security. Ogodo emerged as chairman at the congress organised by Odoh. Emerhor said: “We have gone ahead to obey the NWC, which postponed the congress. At the end of this exercise, the appeal committee will review what has been done before the results would be taken to Abuja for certification”.

    Unity list and cracks in Emerhor camp:

    Prior to the congress, the Emerhor camp had seven governorship candidates: Prof. Pat Utomi, Dr. Cairo Ojougboh, Victor Ochei, Prof. Leroy Edozien, Chief Osiobe Okotie, Dr. Iyke Odikpo and Dr. O’Diakpor Obire. They agreed to a unity list for the congress that will accommodate the interest of aspirants and leaders of the party.

    However, with the failure of the list to equitably protect the interest of everyone, three of the aspirants, Utomi, Odikpo and Okotie, sboycotted the congress while Ojougboh walked out of the event midway. Odikpo who was the Secretary General and Chief Strategist of the Emerhor’s defunct Mainstream Delta APC (MDA), had  attended the congress held two days earlier having pitched his tent with the Omo-Agege/Ogboru camp.

    The Oyegun, Amaechi, Oshiomhole factor:

    The shadows of these three have hovered over the congresses in Delta, following the failed re-election bid of the embattled national chairman  Oyegun, who was being supported by Emerhor and Ogodo. When APC chairmen of the South-South states endorsed Oshiomhole as chairmanship candidate Ogodo signed the statement dissociating Delta APC from the purported endorsement, which he described as “desperate and despicable”.

    Not only did Emerhor condemn the endorsement of Oshiomole by the South South APC, he refuted the statement, saying: “At no time was Oshiomhole adopted as the candidate of South-South. Chief John Odigie is a worthy son of the zone who has performed creditably and who deserves a first right of refusal.” Ogboru, Omo-Agege and Erue on the other hand, supported the Oshiomhole candidacy. Indeed, Erue, under pressure from Emerhor, refused to disassociate Delta from the Southsouth endorsement of Oshiomole.

    Based on these realities, it is not surprising that at any point Emerhor was facing any form of political challenges during the congresses; Oyegun comes to his rescue as reflected in the sacking of Dododo, and Obadara.  The fingerprints of Amaechi, a known benefactor of Emerhor, was everywhere in Delta APC congresses. One of his loyalist, Chindah, was appointed to take over from Dododo.

    Allegations of bias:

    Erue said Obadara was sacked by Oyegun because he refused to follow Izunaso’s counter directive that Delta State Congress Committee should work with Emerhor, instead of the State chairman as earlier directed by Izunaso. Under article 13 of the APC Constitution, it is the NWC that is empowered to set up adhoc committees to conduct congresses. Pursuant to this article, the NWC constituted the Obadara panel.

    Erue said: “Having constituted the panel, the NWC proceeded to inaugurate and empower it with materials to conduct the congress in Delta. And since then, the NWC has not met to recall the Obadara panel. Yet, the National Secretary wrote a letter purported to sack the chairman, the secretary and one member.

    The National chairman and the secretary do not constitute the NWC which is made up of 21 members. It was only either the chairman or the secretary or both of them acting at the behest of O’tega Emerhor that purported to recall the Obadara panel and they cannot do that”, Erue said.  “NWC created the Obadara panel and it is only the NWC that can recall them. The same applies to the Dododo ward and local government congress committee”, he added. According to Erue, Obadara was not properly removed and anything that was done in Asaba on Monday 21st May by Eugene Odoh was a mere gathering the defunct MDA.

    “During briefing, the panels to all the states were told to report to the state chairmen who will make available to you the list of delegates, accommodation and transportation. But, in the case of Delta, Senator Obadara was later told by the National Organizing Secretary to take the delegate list from O’tega Emerhor and the Distinguished Senator said I cant do that because that was not the briefing you gave to us. Immediately they knew that the man refused to take the list from them being a process man, they called them back and had to step down Delta congress which is unconstitutional”, he added.

    Also questioning the authority of the National Organising Secretary to write a letter of appointment to Chindah and Odoh, Erue said: “If at all the letter is truly signed by the national secretary, with all due respect to him, I think he is doing a job for someone else and not for the party because what is playing out in Delta is a game and a backdoor script that is backfiring. He added: “I do not know who appointed Chindah because NWC did not meet to appoint him. When Dododo was appointed, did National secretary sign a letter to that effect? Why did he not write a letter in the first instance, this is the question that must be asked. There is a foul play as someone is being paid the work he is doing.”

    There is a raging battle for the soul of the APC in Delta State. It could undermine the ability of the party to take over the state in 2019. How this will end remains to be seen. Ultimately, it will depend on the ward congress that gave birth to the two parallel executives. Will the national leadership of the APC accept the results collated at the police command in the presence of the Nigerian Police, the DSS and INEC by Alhaji Dododo, the NWC appointed chairman or the results collated at yet to be disclosed location by the secretary of the committee, Kutigi who has been declared wanted by the police.

    In the opinion of Dr. Alex Ideh, an APC chieftain, the Dododo organized LGA congress is the legal one that will be upheld by the party because it is built on a legal foundation. “It is a common knowledge that the congresses are pyramidal in nature. The election of the ward delegates followed due process and there was no successful appeal against it. And because we successfully built the foundation of the pyramid and added to that superstructure by electing LGA executive, State delegates and national delegates in all 25 LGAs of Delta State, our congress is legal” he explained.

    Also, the APC national leadership would have to consider the electoral worth of both camps. Ogboru came second, ahead of Emerhor, in the 2015 governorship poll as he has done consistently since 2003. Ogboru won four local government areas, including Ughelli North, which is  Emerhor’s Local Government Area. Omo-Agege who is from the same local government with Emerhor and he is the incumbent senator representing Delta Central, the stronghold of APC. With the APC national convention shifted to 23rd of June, the battle for the soul of Delta APC rages on. And the road to Unity House Asaba promises to be a rocky ride.