The Nation Newspaper

Category: Energy

  • Why fuel crisis lingers, by IPMAN

    Why fuel crisis lingers, by IPMAN

    The Federal Government’s inability to improve fuel supply is caused by  dysfunctional refineries, failure to pay marketers their over N800 billion subsidy debts and poor maintenance of the majority of the 22 depots owned by the  Nigerian National Petroleum Corporation (NNPC), The Nation has learnt.

    Other reasons are the cost of fuel import and marketers’ inability to access foreign exchange (forex).

    It was gathered that many of the 22- state owned depots were not working  because NNPC lacked the capacity to meet fuel requirement.

    Investigation by The Nation revealed that NNPC is rationing fuel due to high cost of importation. During a visit to the NNPC Satellite depot in Ejigbo, a suburb of Lagos, it was discovered that the corporation supplies the depot between five and 10 million litres of fuel  weekly, instead of 21 million litres.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) Southwest Chairman,  Alhaji Debo Ahmed, said many of the depots were not working optimally.

    In a telephone interview, he said Aba, Port Harcourt, Owerri,  Ibadan and Mosimi depots were functioning at low capacity.

    He said the failure of the NNPC to distribute fuel evenly nationwide was also a cause of the problem.

    Ahmed said: “Often times, NNPC supplies fuel to private depots at N156 per litre instead of N133 per litre, a development which made some marketers to sell fuel at higher rate than the official pump price. This, among others, contributes to the pocket of crisis, which the downstream sub-sector of the oil and gas industry is facing.’’

    Also, the IPMAN’ Chairman, Ejigbo Sattelite Depot, Mr Alanamu Balogun, said: “Fuel scarcity persists despite the establishment of two depots in Apapa, Lagos, last week, by private investors.”

    He said the inclusion of Folawiyo and Emadel depots to the depots in the country is yet to improve fuel supply. He said Ejigbo depot was battling storage problem as its five bigger storage tanks are not working well, adding that the development made the depot to use the smaller tanks for operation.

  • Govt to end gold mining abuse

    Govt to end gold mining abuse

    The Federal Government will, in the next few months, end the indiscriminate mining and exportation of gold.

    The development is aimed at ensuring that product is well mined, processed, and exported to attract good prices at the international market.

    The Special Assistant on Media to Dr Kayode Fayemi, Minister for Solid Minerals, Mr Yinka Oyebode, said the idea would enable both the private and the public sectors to achieve good profit margins.

    In an interview with The Nation, Oyebode said plans were afoot to improve the mining, export and sale of gold from Nigeria at the international market, adding that the government is experimenting the idea of transforming the process of mining gold, first with two states.

    Oyebode said: “With respect to the issue of mining gold to attract good pricing in the international market, the government has started the pilot studies with Osun and Kebbi states. More would join as time goes on.

    ‘’Hitherto, local miners are selling the product to the Congolese and the Chinese at a ridiculous low price, a development, which informed the decision by the government to try and find solution to the issue.”

    He said pilot studies were taking place, adding that in the next few months, there would more exploration and earnings from the resource.

    According to him, the development would enable the government to improve its earnings in form of royalties from exploration of gold, and help the private sector operators.

    He said solid mineral activities were private sector-driven since  mining and export were handled by private operators, stressing that the government is only providing guidelines on what, where and how things should be done in order to improve the growth of the sector.

    He said the government will allow private sector operators to buy into the initiative to encourage the industry growth.

    “The reasons behind the transformation of the solid minerals sector, especially the gold aspect of it by the Federal Government are many. First is to help in improving the price at which the product is bought at the market,’’ he added.

  • Petrol marketers seek N240/$1

    Petrol marketers seek N240/$1

    Petrol marketers are insisting on the exchange rates of not more than N240 per dollar to import and recoup  their investment, the Independent Petroleum Marketers Association of Nigeria (IPMAN) National Operation Controller, Mr. Mike Osatuyi, has said.

    He said the body has met the Federal Government on the issue, noting  that foreign exchange (forex), especially dollar, was rising due to its growing influence in the international trade.

    He added that investors from developing countries needed an appreciable increase in the value of their currencies to play well in the highly-competitive global market.

    In an interview with The Nation, Osatuyi said: “The landing cost of fuel is N181 per litre, while the official pump price of fuel is N145 per litre. So, if we (marketers) import fuel at N181 per litre, and change a dollar at N340, there is no way marketers would cope with such condition. That is why we are requesting that the government sells dollar at not more N240 per dollar.”

    According to him, marketers irrespective of their affiliations or groupings are conscious of their costs and returns on investments.

    He said the group realised that there would be little or no profit left for the marketers, if the government did not sell dollar to them at N240.

    He advised the Nigerian National Petroleum Corporation (NNPC) to either double or triple the importation of refined petroleum products, adding the idea would help to improve the distribution of fuel in the country.

    He said poor distribution of fuel is one of the problems facing the country, stressing that the problem would be resolved when NNPC imports enough fuel.

    In a related development,   the  Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for the full deregulation of the downstream sub-sector.

    Chairman, IPMAN Western Zone, Alhaji Debo Ahmed, made the call in Lagos.

    He spoke against the backdrop of the fuel scarcity in many parts of the country.

    He attributed the lingering fuel scarcity to inability of the Nigerian National Petroleum Corporation (NNPC) to meet the consumption demand.

    According to Ahmed, none of the depots of the Pipeline and Products Marketing Company (PPMC), an arm of NNPC, within the western zone has enough petrol to cater to the demands of the public.

    “The management of NNPC should increase petrol allocations to IPMAN marketers rather than allocating excess products to NNPC retail stations that have less than 25 outlet within Lagos.

    “IPMAN that has over 2,500 members and over 500 outlets across the Southwest was given 30 per cent against 60 per cent agreed by NNPC and marketers,’’ he said.

    Ahmed said most IPMAN members closed their filling stations due to the inability of NNPC/PPMC to distribute products to depots for marketers to load adequately.

    He said the limited products were having lopsided distribution formula.

    “IPMAN was given 30 per cent, Major Oil Marketers Association of Nigeria (MOMAN) 30 per cent and NNPC retail 40 per cent as against 60 per cent for IPMAN and 20 for MOMAN; NNPC retail 20.

    “The imported petrol by NNPC/PPMC is distributed through the Private Fund Initiative (PFI) system to private depot owners (DAPPMA) to sell to Independent Marketers at a controlled price of N133.28k.

    “But, DAPPMA members are selling between N160 and N162 above the regulated price, of which no marketer can buy at that price and sell at the regulated price of N145 per litre,’’ he said.

    The IPMAN boss urged the government to intervene and check the activities of DAPPMA as they sold above the recommended pump price. He also urged the Department of Petroleum Resources (DPR) to address defaulting depot owners who sold petrol above the approved pump price. DPR only descends on independent marketers by closing their stations.

    “You can only sell what you buy; we are business people, for how long do we close down our stations since we have financial obligations to the banks?

    “Probably, the Federal Government may have deregulated without the public being aware. During, the recent Senate committee meeting held with stakeholders in the oil industry, one of the suggestions from the Minster of State for Petroleum, Dr Ibe Kachikwu, was the introduction of dual price regime.

  • Delta to build three modular refineries

    Delta to build three modular refineries

    Delta State Government is to buld three modular refineries of 10,000 barrel/day capacity each this year.

    The refineries, according to the Commissioner for Oil and Gas, Hon. Mofe Pirah, who spoke with reporters at the state’s stand at the ongoing first Nigerian International Petroleum Summit (NIPS) in Abuja, will be sited in Kwale, Okpai and Sapele.

    He said aside securing the certificates and acquiring the sites, the engineering works had begun, but that the bureaucracy at the Department of Petroleum Resources (DPR) and funding were delaying the flag-off of construction.

    His words: “Delta State already has three modular refineries waiting to take off in Sapele, Nkwale, and Okpai of combined capacity of less than 10,000 barrel per day.

    “You know the rigour you go through with DPR, with funding and all of that. Some of them are have gotten certificates, some have acquired the sites and engineering works is in progress. This year, they will start to construction.”

    Speaking, the Consultant to Delta State Government on the Industrial Park Project (IPP), Dr. David Ige, said 100,000 jobs were underway from the project.

    He said Governor Ifeanyi Okowe had initiated the project in Kwale, where the state was leveraging on its own gas competitive advantage for industrialisation.

    Continuing, he said the park, designed to be the largest single small and medium manufacturing location in the country, would tap from the marginal field in Kwale area.

    He added that “the idea is that we are trying to create a corridor for the manufacturing of glass, ceramic, and plastics. The reason being that the raw materials are within 50 to 70 kilometres radius of the Kwale Industrial Park.”

    Ige said the park would boast of the huge reliability in gas and power in the country compare with anywhere else.

  • OGTAN’s summit for April 16

    OGTAN’s summit for April 16

    The maiden edition of Nigeria’s Education Summit of the Oil and Gas Trainers Association of Nigeria (OGTAN)  will hold on April 16.

    The event with the theme “Sustaining Nigerian Content through quality edument prospects” is geared towards fulfilling one of OGTAN’s key objectives – bridging the gap between Nigeria’s tertiary institutions and the  oil and gas industry.

    The one-day conference will be chaired by Gen. Yakubu Gowon (rtd), a former  Head of State, under whom the Indigenisation Decree was signed in 1969.

    The conference is to explore ways by which the gap between the tertiary institutions and the oil industry can be closed, particulary in research and development, thereby ensuring that graduates are employable.

    OGTAN President Dr. Muyiwa Afe, said the summit will bring together major stakeholders in the education sector and the oil and gas to discuss their experiences  to chart a way forward.

    Key speakers include the Minister of Education, Alhaji Adamu Adamu, Minister of Energy, Ghana, members of the National Assembly,vice chancellors, National Universities Commission (NUC); National Board for Technical Education (NBTE) and some  commissioners for education.

    OGTAN said it hoped to cut joint venture spending of scarce cash call by domiciling some training in-country, and drive growth and development.

  • Okwuchi, Sosoliso crash survivor, visits SPDC

    Okwuchi, Sosoliso crash survivor, visits SPDC

    It was an emotional moment when Miss Kechi Okwuchi, a survivor of the 2005 Sosoliso plane crash that claimed many lives, visited the Shell Petroleum Development Company of Nigeria Limited (SPDC) to express gratitude for the financial assistance the company gave her after the  incident.

    Kechi, her father’s friend, Mazi Victor Okoronkwo and her aunty, Mrs. Uloma Umeano, were received by Mr. Osagie Okunbor, Managing Director, SPDC and Country Chair, Shell Companies in Nigeria.

    Kechi, who was returning from school in Abuja to Port Harcourt, survived the crash but suffered third-degree burns. When her plight came to the notice of SPDC, the company  stepped in and ensured that she was flown to South Africa for treatment.

    She was later moved to the United States for more treatment.

    Kechi’s father, Mr. Okwuchi, in a letter read by Mazi Okoronkwo, said: “On December 10, 2005, Shell intervened, notwithstanding the medical uncertainty to save life regardless of cost; intervention propelled by a corporate policy that puts life above else. We thank and applaud you for it.’’

    Kechi added: “I am incredibly grateful and I walk through every day of my life knowing that I am here because of the amount of effort SPDC put into making sure that I stayed alive … you came when all looked dark and you shone a light of hope into my life.”

    She said her family would remain grateful to SPDC for ensuring that she received the best medical care available. ‘’I have never seen this kind of kindness from a corporation before,’ she added.

    Kechi also presented a certificate of recognition from the Shriners Hospitals for Children (Galveston, Texas) to SPDC for its thoughtful and generous contribution to the hospital.

    Okunbor said: “It was instinctive for us as an organisation to react the way we did as the most important thing for us then was to save and preserve lives. Even though we were not directly involved, the leadership decided that we had to intervene and do all we could as a company to help and today, I am happy we did.”

  • Navgas rewards drivers

    NAVGAS Limited has rewarded members of the National Union of Petroleum Natural Gas Workers (NUPENG), Petroleum Tanker Drivers (PTD) Unit of the company for their loyalty to the firm at an event titled: Drivers loyalty and reward programme.

    At the firm’s premises in Apapa, Lagos, it held the grand finale of its maiden raffle draw where the major winners emerged. They were Uche Morah of SuperTech, who won the first prize of a Power bike, Gbenga Adelodun, who got a deep freezer while the third prize of a flat screenTV went to Ahmed Oyewunmi.

    There were also consolation prizes for 13 drivers who scored between 150,000 and 250,000 points. They got a carton of indomie each. Earlier, as part of the progarmme, the firm also gave out recharge cards to the drivers.

    Navgas Operations Manager Mr Monday Adeoye said the draws started last year with 300 drivers and that only 91 qualified for the final draws. He reiterated that the programme was aimed at promoting safety consciousness among the drivers, noting that they were their key stakeholders in the industry. He thanked them for being loyal allies in business.

    The firm’s Managing Director Merlin Figueria assisted by NUPENG’s Acting Chairman Suleiman Amusa presented the star gifts to representatives of the winners. Amusa expressed satisfaction with the draws. He noted that it was the first time that a company would hold such an event for NUPENG members, urging Navgas to keep it up. ‘’The draw is very good. Navgas has done very well. It is the first time that a company would do this for us,’’ he said.

  • Navgas rewards drivers

    NAVGAS Limited has rewarded members of the National Union of Petroleum Natural Gas Workers (NUPENG), Petroleum Tanker Drivers (PTD) Unit of the company for their loyalty to the firm at an event titled: Drivers loyalty and reward programme.

    At the firm’s premises in Apapa, Lagos yesterday, it held the grand finale of its maiden raffle draw where the major winners emerged. They were Uche Morah of SuperTech, who won the first prize of a Power bike, Gbenga Adelodun, who got a deep freezer while the third prize of a flat screenTV went to Ahmed Oyewunmi.

    There were also consolation prizes for 13 drivers who scored between 150,000 and 250,000 points. They got a carton of indomie each. Earlier, as part of the progarmme, the firm also gave out recharge cards to the drivers.

    Navgas Operations Manager Mr Monday Adeoye said the draws started last year with 300 drivers and that only 91 qualified for the final draws. He reiterated that the programme was aimed at promoting safety consciousness among the drivers, noting that they are their key stakeholders in the industry. He thanked them for being loyal allies in business.

    The firm’s Managing Director Merlin Figueria assisted by NUPENG’s Acting Chairman Suleiman Amusa presented the star gifts to representatives of the winners. Amusa expressed satisfaction with the draws. He noted that it was the first time that a company would hold such an event for NUPENG members, urging Navgas to keep it up. ‘’The draw is very good. Navgas has done very well. It is the first time that a company would do this for us,’’ he said.

     

  • Okorocha’s wife, communities laud Seplat’s CSR

    Seplat Petroleum Development Company Plc, operator of the NNPC/Seplat Joint Venture, has launched the inaugural edition of its Eye Can See Programme  Corporate Social Responsibility (CSR) programmes for its host communities in Imo State.

    The programme was initiated six years ago in Sapele, Delta State, the operational base of Seplat’s Western assets.

    The launch witnessed a large turnout.

    For the programme, beneficiaries had their eyes tested, received prescribed glasses and some had surgeries for cataract related visual impairments.

    The Safe Motherhood Programme saw beneficiaries – pregnant women and nursing mothers – receive lectures on danger signs of pregnancy and nutrition in pregnancy. They were also presented with Safe Motherhood kits made up of a maternity bag, vitamin supplements, treated mosquito nets and all medical items required for safe delivery.

    In her remarks at the event, Imo State governor’s wife, Dr Nneoma Okorocha, commended Seplat for thits CSR initiatives which she said have impacted the lives of members of the host communities.

    She urged the company to sustain the programme towards deepening its contribution to the development of the state’s health sub-sector.

    Seplat Petroleum Development Company Plc Chief Executive Officer Mr. Austin Avuru said the  communities were critical stakeholders of the company, which underscores the need to execute the CSR programmes.

    He assured that the company is  committed to sustaining the CSR health and other programmes  targeted at the socio-economic development of the state.

    The firm’s General Manager, External Affairs & Communications Dr. Chioma Nwachuku said both health programmes are in alignment with the United Nations (UN) Sustainable Developing Goals (SDG) 3, which is to “Ensure healthy lives and promote well-being for all”.

    The event was attended by traditional rulers, community leaders, key government functionaries and management/staff of Sepalt. The programme will continue for a week to offer opportunity to more beneficiaries in Imo State.

     

  • DisCos push for input into draft regulation

    The power distribution companies (DisCos) are seeking input into the draft regulation being fine-tuned by the Nigerian Electricity Regulatory Commission (NERC).
    The firms said some parts of the regulation needed to be improved to ensure efficiency.
    The DisCos, under the aegis of the Association of Nigerian Electricity Distributors (ANED), cited metering, saying it is key in the sector. They said the DisCos were not ready to play with it; therefore, it must not be handled in such a way that it wouldn’t boost their operation.
    ANED’s Manager, Regulation, Mr Adetunji Adeleye, said the DisCos were unhappy with the payment for meters by consumers as contained in the draft regulation.
    Adetunji said metering was important as it was one of the means through which the DisCos derive their revenue. He added that the firms are expecting the issue, among others, stated in the draft regulation would be addressed to favour them, whenever NERC finishes fine-tuning the draft regulation.
    According to him, the DisCos are required to provide meters to consumers to distribute electricity to them. He said where other parties were involved in metering, it would affect the firms.
    Adetunji, who represented the power firms at a consultative forum held in Abuja to deliberate on germane issues, such as metering, distribution and generation of electricity, said the firms are not pleased with the mode of payment for meters supplied to the consumers, as contained in the draft regulation.
    The forum was organised by NERC to seek opinions on salient issues affecting the sector was well attended by stakeholders.
    He said the issue of third-party metering stated in the draft would not help the DisCos that are constitutionally required to issue meters to consumers with to provide electricity and generate revenue.
    “That is the reason DisCos want the outcome of the draft regulation to be in their favour when NERC eventually releases it to the public, he said.
    He, however, lauded the decision of the NERC ton the draft regulation, saying it would set the tone for the administration of the sector.