The Nation Newspaper

Category: Energy

  • Fashola, stakeholders focus on debts payment, supply growth

    Fashola, stakeholders focus on debts payment, supply growth

    The 19th ministerial meeting of the Minister of Power, Works and Housing with operators of the power sector, has held with a focus on payment of debts owed the power sector by ministries, departments and agencies (MDAs), and legacy debts inherited from the defunct Power Holding Company of Nigeria (PHCN), and power supply growth.

    It held in Lagos with a communique focusing on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry (NESI).

    The operators agreed to encourage the promotion of true story of hope in the sector, based on ongoing projects and efforts to improve the power sector, and limit inaccurate and alarmist comments in the media about the power sector.

    The agreement was necessitated by an earlier statement by the Power Minister, Babatunde Raji Fashola.

    Fashola had expressed dissatisfaction with a statement made by the Managing Director/Chief Executive Officer, Egbin Power Plc, Mr. Dallas Peavey, saying that Peavey’s claim that the Federal Government owes Egbin N125 billion and that Egbin had spare 700 megawatts (mw), which could not be evacuated due to the inability of the Transmission Company to wheel it were inaccurate.

    The Minister said with that statement Peavey was working against national interest, noting that Peavey  was inciting other generation companies (GenCos) not to comply with grid codes and regulations made pursuant to the Electric Sector Power Reform Act of 2005, which prescribed frequency levels of operation for power generating companies.

    Fashola also reminded operators at the meeting about the Payment Assurance Guarantees to the generation companies, as well as the verification of MDAs’ debts, which have been reported as part of the government’s plan to resolve liquidity challenges in the power sector.

    The communique noted that the Nigerian Electricity Regulatory Commission (NERC) was commended for its new mini-grid regulation, which has yielded new projects with the inauguration of a new 20kw project in Kwali Local Government Area in the Federal Capital Territory, with a plan to power 145 households and five businesses by Haven Hills Synergy Limited, and another to be completed shortly in Kano State. The Minister encouraged investors and developers to cooperate with NERC to fast-track the implementation of the regulation, with the hope that the private sector increases capacity to distribute the over 6,000mw available for distribution.

    The report also showed that Eko and Yola Electricity Distribution Companies recorded 100 per cent payment performance to the market operator for service providers, and the meeting was encouraged to make payment for transmission and other services provided in good time.

    The Niger Delta Power Holding Company (NDPHC) said it has completed Magboro connection project, and also announced the progress in projects at Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo host communities, expected to be completed by December this year.

    The NDPHC listed vandalism as  a major challenge to the progress of projects in Afam – Ikot Ekpene axis, and encouraged the public to end vandalism. TCN also announced the completion of rehabilitation works at Omotosho plant in line with planned reconnection of the communities.

    At the meeting were NERC, GenCos, distribution companies (DisCos), the TCN, Gas Companies (GasCos) and other government agencies such as the NDPHC, the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA), responsible for the regulation and development of the electricity industry as well as the Nigerian National Petroleum Company (NNPC) and the Central Bank of Nigeria (CBN).

  • Refuse, illegal refining threaten transmission facility in Lagos

    Refuse, illegal refining threaten transmission facility in Lagos

    A transmission tower’s integrity in Lagos is being threatened as miscreants have turned its location to a dump site, illegal refining and burning of rubbish, it was learnt.

    The tower, located in Surulere area of Lagos, according to the Acting Managing Director/Chief Executive of Transmission Company of Nigeria (TCN), Mr. Usman Gur Mohammed, is being threatened by the nefarious activities going on under it.

    Such activities, according to the TCN chief, compromise the integrity of towers, adding that the maintenance team of the company would not be able to access the facility for repairs in the event of a problem.

    “Should the tower also collapse as a result of the compromise, the entire Apapa and environs would be out of power supply,” he said.

    He continued:”Therefore, it is imperative I came to see things, discuss and collaborate with Lagos State Government to find a solution to the problem, and permanently stop the nefarious activities going on under the tower,” he added.

    Mohammed further said: “People dump and burn refuse and other materials under the tower and as you can see, there is oil bunkering and illegal refining here. These activities definitely will compromise the integrity of the tower. If the tower is comprised and it collapses, the entire Apapa and environs will be out of power supply.

    “This tower supports the capacity from Ajah through the 330kv circuit line to Alagbon. If it collapses, supply to these areas will be jeopardised. Also, if there is a problem with the tower, it will be difficult for the maintenance team to access it. It is a big problem for these areas.

    “I will discuss with the Lagos State Commissioner for Energy and Mineral Resources. We are working closely with the Lagos State Government. We will ask the Energy Commissioner to ensure that the Commissioner for Environment clear this place and ensure it is permanently maintained away from the miscreants and refuse dump.

    “The clearing will be immediately because we are collaborating with the Lagos State Government. Through this collaboration, we are working to put significant transmission capacity between Lagos and Ogun states and ensure this kind of thing doesn’t happen again.”

    The TCN chief also said the transmission arm of the power supply value chain is not the weakest link as some people make power consumers believe, adding that transmission capacity has been substantially increased and, the transmission arm is ahead of other arms of the supply chain. “We are increasing our capacity across the country because the government is supporting us

    “This government has been putting money into transmission since it came on board. Money that has been put by this government into transmission has never been put into transmission in the history of Nigeria.

    “We have also secured a lot of funding from multilateral donors, backed by the Ministries of Power, Works and Housing and Finance, and this is being channeled into transmission. To me, funding is not so much a big issue to transmission now because we have got the support of the government.

    “Whoever says TCN is the weakest link in the power supply value chain is ignorant of the sector. Transmission is not the weakest link in the chain. Our capacity currently is higher than all the other arms of the industry. We also have plans to expand the capacity of the transmission more than any other arm of the sector. So, we are always ahead of them and will continue to be ahead of them,”he said.

  • DPR to automate operations

    DPR to automate operations

    The Department of Petroleum Resources (DPR) is set to roll out a digitalisation programme to automate its critical operations, enhance efficiency of its regulatory deliverables and accelerate recovery of outstanding revenues due to the government.

    This is contained in a statement by the by Paul Osu of the Public Affairs Department, which said the programme, when rolled out, will improve regulatory service delivery to stakeholders, promote transparency and effective monitoring of the oil and gas industry, enhance the ease of doing business in the oil and gas sector in alignment with the government’s executive order 001, and upgrade the DPR’s operational standards to world-class levels.

    According to him, one of the automation project in the works is IMPEX (Import and Export) Permit digitalisation. The project will automate the administrative role of issuing import and export permits on petroleum products. It will ensure timely and transparent automation for ease of obtaining permits for importing or exporting petroleum products.

    Fiscal Payment Administrative System (FISPAS)  is designed to enhance the collection of government revenue like royalty, concession rentals, and flare penalty, among others. It will ensure timely and transparent e-billing of companies, thereby enhancing the government’s  revenue profile.

    Smart Inspector is the electronic monitoring/reporting system of petroleum product retail outlets nationwide.  It ensures generation of real-time and accurate data of retail outlets and has the overall objective of curbing irregularities in the provision of service to customers by retail outlets.

    It will be recalled that in 2014, DPR automated the process of issuing oil and gas industry service permit (OGISP), a statutory requirement issued to Nigerian registered companies seeking to render services in the oil and gas industry, is categorised into the general, major and specialised categories.

    It was later followed by the National Production Monitoring System (NPMS ) launch, which is designed to receive in real time oil and gas production data from the fields and enhance transparency of Nigeria’s oil and gas industry in alignment with    government’s aspiration.

     

    The DPR wishes to assure all stakeholders that we will continue to strive for excellence with integrity in the discharge of our regulatory oversight functions to the oil and gas sector in Nigeria, he said.

  • ‘Nigeria to undertake over 50% fabrication, integration in IOCs’ projects’

    About 50 per cent of the fabrication and integration of topsides of the floating, production, storage and offloading (FPSO) vessels of Nigerian Agip Exploration Limited (NAE)’s and Shell Nigeria Exploration and Production Company (SNEPCO)’s Zabazaba deepwater project and the Bonga South West Aparo (BSWA) deepwater project will be done by Nigerians. The Nigerian Content Development and Monitoring Board (NCDMB), has confirmed.

    The Board noted that with the development, the oil and gas sector is set to make a huge impact on the economy as the two multinational companies involved will substantially use local personnel and materials.

    The projects are the Zabazaba deepwater project being executed by NAE, in partnership with SNEPCO, on Oil Prospecting Licence (OPL) 245, and the Bonga South West Aparo (BSWA) deepwater project being developed by SNEPCO.

    It noted that major contractors bidding for Zabazaba submitted competitive costs and concrete plans to fabricate and integrate over 50 per cent of the FPSO topsides in-country. The technical and commercial evaluations of bids for the Zabazaba main packages have been finalised by NCDMB and NAE and the submissions met the aspiration of maximizing local content at the most competitive cost. The packages included the FPSO units, subsea, installation and rigs.

    NCDMB Executive Secretary, Simbi Wabote, confirmed the positive development, expressing optimism that the execution of Zabazaba would grow Nigerian content and impact the economy, much more than previous deepwater projects. He said the Board carried out detailed scoping of the project to ensure that the targets exceed the accomplishments achieved on Total’s Egina project.

    “For Egina, six FPSO topside modules were fabricated in-country across some yards and will be integrated when the FPSO arrives at the SHI-MCI yard in Lagos later this year. This will be the first time in the history of Nigeria,”he said.

    Wabote also said the approvals and evaluations for Zabazaba were completed in 14 months, setting a cheering record in the industry as against the 24/36 months project cycle time that bedeviled the sector for many years and contributed to the high cost of projects.

    “It has taken just 14 months since NAE approached the Board with their Nigerian Content Plan. NAE and NCDMB worked closely and went through the standard contracting process, including invitation to tender, clarifications, technical and commercial bid evaluations and facility audits. We completed the process and issued our final report on August 30.

    “This is confirmation that NCDMB does not delay projects and we can achieve the six-month contract cycle target if operators comply with set directives,” he added.

    Similarly, (SNEPCO) is set to issue bid documents this September for the supply of the FPSO vessel for the Bonga South West Aparo (BSWA) deepwater project. The bid documents will set out the company’s plans for in-country fabrication of half of the topsides of the FPSO and their integration.

    These indications emerged in the September edition of Upstream, an international medium on the oil and gas industry. The report was titled: “Shell set to launch FPSO bid battle.”

    SPDC’s plan was informed by “the strict local content demands imposed by the Abuja-based government. All oversea bidders are expected to partner with Nigerian companies,” it added.

    Shell’s contracting strategy was described as complex and demanding, according to a source, saying that “they have some terms and conditions that are quite different from traditional T&Cs. These are thought to focus on local content and are all about asking the yards to take more risks”.

    Wabote said earlier in the year that more modules would be fabricated locally for future deepwater projects. He said the Board would not rest on its oars with regards to the implementation of the Nigerian Content Act and “new projects must look at doing FPSO integration and more.” Increased domiciliation of future FPSO projects is estimated to create jobs in the economy, estimated to reach 30,000.

  • Why Nigeria needs to optimise use of crude in-country

    There is urgent need for Nigeria to begin to think of how it will optimise value from its crude by refining a chunk of its production locally for domestic use and export products especially now that demand for oil is declining and use of petrol and diesel becoming unfashionable.

    The Chairman, Nigerian Council of Society of Petroleum Engineers (SPE), Saka Matemilola, said the development has become imperative in view the current global trend. He said the country needs to begin to think how achieve maximum refining in-country, adding that sale of refined products will earn more foreign exchange for Nigeria from the resource. He also noted that such decision becomes necessary considering the plan to ban use of petrol and diesel vehicles in the near future by some countries of the world including France, United Kingdom, India and Scandinavia.

    Matemilola also stated that the United States that used to be a major importer and consumer of Nigeria’s crude oil is now a net exporter of crude oil and net exporter of gas buttressing the need for Nigeria to do something about her oil.

    He recalled that the Minister of State for Petroleum Resources had during one of the energy forums in Lagos said there were a lot of cargoes of Nigerian crude grades that couldn’t be easily sold for lack of buyers, provoking further fears that soon the Nigerian crude may not have a market at the global scene.

    The SPE chief said despite government’s efforts to boost refining through revamping the refineries through turnaround maintenance and encouraging construction of modular refineries, there was need to provide enabling environment for investors to invest in refineries in the country.

    He said there were investors who were willing to invest in the country but the environment is not conducive for that to happen, adding that there are investors who are contemplating whether they should or should not invest in the country because of lack of favourable environment.

    He said: “If you don’t provide the enabling environment in the different areas of the oil and gas value chain, the investment will not come. We need to begin to think along that way.”

    Matemilola told The Nation in Lagos that it was vital for the government to provide the right environment for investors to invest and not just about talking of doing more refineries.

    He said it is important that government guarantee investors in the refineries that their investments will be safe and not to go down the drain as well as assurance that there would be returns on their investment. These factors are important to encourage private investments because it is the private sector investors that would really drive the oil and gas sector to government’s aspiration.

    He said if the environment is favourable for investment, investors will be willing to invest because they would make more money from such investments. He advised the government to fully deregulate the downstream oil sector, as it would encourage investors to invest in the sector. It is important to all of us as Nigerians, he added.

    According to him, investment in refinery is the way to go if Nigeria must become self-sufficient in petroleum products. He cited the Ogbele marginal oil field operated by the Niger Delta Petroleum Resources Limited (NDPR), which refines 1000 barrels of crude per day from its production, adding that although it produces diesel alone, it adds value to its investment.

    Matemilola also urged marginal producers to come together, form clusters and establish refineries, adding that locating such refineries close to source of crude supply will ensure security of crude supply and enhance profitability. “If they come together as a group, the government can support them in establishing refineries, he added.

  • Egbin power plant records 819 days incident-free operation

    Nigeria’s largest power generating plant, Egbin Power Plc, has recorded 819 days of incident-free operation as at August 30, 2017, it was learnt.

    The Nation, during a visit to the plant, observed that as at the period the plant worked without lost time accident while safety audit has been carried out three times with 451 staff and one near miss. On the same date, the plant was generating 599 megawatts (Mw) of electricity. A breakdown of the generation showed that two of the six steam turbines (ST) the plant has, ST1 and ST3 were not producing. STs 2, 4, 5 and 6 were producing 175Mw, 203Mw, 110Mw, and 111Mw respectively.

    The company’s Chairman, Kola Adesina, who during a chat with reporters in Lagos, said safety standards and procedures at Egbin Power Plc have helped the plant to record incident-free operations over the last 827 days.

    Adesina said the power plant operates in line with globally acclaimed standards for Health, Safety, Security and Environment (HSSE) and requires members of staff and stakeholders to abide by its zero tolerance policy on safety infractions.

    “Since we took over the plant in 2013 we have continued to enhance the plant’s HSSE profile through investments in safety equipment and training. For us at Egbin, ensuring safety at all cost is a non-negotiable policy and we are delighted with the progress we have made in this regard and it gives us the impetus to sustain ongoing transformation and preparation for future expansion of the plant.”

    He said Egbin’s safety records had been severally commended by various post-privatisation monitoring team and other regulatory agencies following inspection visits. “At Egbin, every staff is a Safety Ambassador. We demand the same level of commitment from all our partners and stakeholders and remain confident that HSSE issues will always be paramount in our operations.”

    He also noted the importance of collaboration across the sector’s value chain, adding that it would help operators and regulators effectively address the challenges of the power sector.

    “What we need right now is generation, transmission and distribution, working together to achieve the ultimate goal of improved power supply. We have witnessed continuing improvement across the value chain and we need to keep up the momentum and close our ranks where we have gaps to drive better power supply. Issues bordering on un-utilised energy, load shedding and optimised load picking can be better managed by the operators to ensure the system maintains a balance that enhances productivity and sustainability.

    “We should all work as partners in the power sector as the nation is counting on us to make the system work. At Egbin, we remain committed to spearheading intra and inter sectoral collaborative efforts to move the power sector ahead. This will require the support of the government, regulators, operators, local/foreign investors, electricity consumers and civil societies,” he added.

    He pointed out the need for the sector to address and correct the price differential between the actual cost of electricity and current price regimes. “Another important factor that is responsible for the high price of electricity is the lack of conservation. It is imperative for the sector to embark on sustained advocacy and awareness campaigns that will encourage people to embrace conservation and shun energy theft as well as illegal connections,“he said.

    He commended the Ministry of Power, regulators and operators for ongoing deliberations aimed at moving the sector forward while acknowledging government’s ongoing massive investments to ensure that power generated gets to end-users.

    “All hands are on deck to ensure regular power supply to Nigerians and I have no doubt that the power sector will record fast paced improvement in our quest for sustainable power with more investments which can only be driven by the right policies, pricing and personnel,” he added.

  • ‘Establish uniform royalty, single fiscal regime in mining sector’

    ‘Establish uniform royalty, single fiscal regime in mining sector’

    Solid Minerals, Nigerian Extractive Industry Transparency Initiative (NEITI) Assistant Director, Dieter Bassi, has called for a uniform royalty to be paid by mining companies operating in an area, and single fiscal regime for the sector.

    He said such uniformity would create the enabling environment for foreign and local investors in the sector. “There is the issue of multiple taxations based on the constitution as some states and agencies collect royalty on some minerals that are on the exclusive list.”

    Bassi, who spoke with The Nation at a forum in Lagos, said the Ministry of Mines and Steel Development was supposed to collect royalties, but that, in some states, the local government areas and certain agencies of government collect  royalties in one form or the other.

    He also said changing royalty’s  name into what he described as production tax or development levy would not encourage investment in the sector.

    President, Miners Association of Nigeria (MAN), Musa Shehu, also called on the Federal Ministry of Mines to give adequate protection to miners, who have paid their taxes, noting that licensed companies had been prevented from mining even when they had brought in foreign investors to site. He added that this development, among other factors, encouraged illegal mining.

    He, however, advocated a synergy between the Ministry of the Environment and its state counterparts.

    Also, Director, Planning, Research & Statistics, Ministry of Mines and Steel Development, Pade Davies, supported the approval for setting up the National Council of Mines and Mineral Resources by the Federal Executive Council (FEC). This, he noted, would create a forum for states and local government councils to come together and address issues relating to multiple taxation, community agreements and how to resolve them.

    Meanwhile, an expert in the mining sector and pioneer lecturer in the Department of Geology and Mining, Nasarawa State University, Keffi, K’tsoNghargbu, has stressed the need to involve Sociologists and Psychologists in the public relations departments of mining companies in the country.

    This, he said, would reduce the hostilities companies and individuals that have mining titles suffer in accessing their sites in the country. He said their services would help to sensitise host communities on happenings around them as well as inform them on what they stand to benefit from the mining operations around them in the short and long terms.

    Such experts, he suggested, needed to be drafted into the communities and make them to settle to work before the arrival of equipment and personnel into such communities, insisting that it will help to eliminate resentment and misgivings.

    Nghargbu agreed that there were issues hindering the success of mining operations in the country, but  advised mining firms to have community relations units and first deploy their members of staff in such units in communities before moving in their equipment.

    Mining companies, he said, should not end up with geologists and engineers, adding that they needed sociologists as well as psychologists. If that is done, nobody should protest for want of knowledge of what is happening around him or her and would not attack the company in the area.

  • WAPCo’s gas supply dips by 50% as demand falls

    Reduced demand, pipeline vandalism and inadequate supply have made gas supplies by the West African Pipeline Company Limited (WAPCo) to drop by over 50 per  cent to 70 million standard cubic feet per day (mmscf/d) from the 150mmscf/d capacity.

    Its Managing Director, Mr. Walter Perez, disclosed this during the company’s Agenda for Vendors Forum with its contractors and customers in Lagos. The firm transports 70mmscf/d to its customers.

    He said the sub-regional gas transporting firm has the capacity to transport about 150mmscf/d, but noted that it could only transports 70mmscf/d being the total order placed by its customers. “However, if the request increases, we will transport more,” he added.

    Perez said: “We have the capacity to transport over 150mmscf/d, but what we carry depends on our customers. Vandalism of pipelines had also affected the volume of gas transported before but lately, the volume had come back to normal.

    “Debt is an issue too. We are having debt challenges from some of our customers but the company is working with countries involved to resolve it.

    “Also, there are challenges of non-availability of gas, and during such periods, our customers used to look for alternatives, but our suppliers now have more than enough.”

    The WAPCo chief said the forum was held to enable the company interact with its service providers. “We do this across countries that we operate in. We have done one in Ghana early this year. We will soon hold another one in Togo and Benin. It is to create a safety environment for our vendors and let them know how we operate,” he added.

    WAPCo is a limited liability company that owns and operates the West African Gas Pipeline. It has its headquarters in Accra, Ghana, with an office in Badagry, Nigeria, and field offices in Cotonou, Benin, Lome, Togo, Tema and Takoradi, both in Ghana.

    The company is a joint venture between public and private sector companies from Nigeria, Benin, Togo and Ghana. It is owned by Chevron West African Gas Pipeline Limited (36.7 per cent), the Nigerian National Petroleum Corporation (NNPC) (25 per cent), Shell Overseas Holdings Limited (18 per cent), and Takoradi Power Company Limited (16.3 per cent), SocieteTogolaise de Gaz (two per cent) and SocieteBenGaz S.A. (two per cent).

  • Why we okayed $200m outlay from NCIF, by Kachikwu

    Why we okayed $200m outlay from NCIF, by Kachikwu

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who is also the chairman, Governing Council, Nigerian Content Development & Monitoring Board (NCDMB), has said the inability of Nigerian oil firms to access funds from banks, at reasonable lending rates, necessitated the approval to disburse $200 million to such firms from the Nigerian Content Intervention Fund (NCI Fund).

    Kachikwu said over the years, Nigerian companies have been finding it difficult to compete with their counterparts from jurisdictions where funding is accessible at five per cent or less, compared to our market where bank lending rates hover around 20 per cent, adding that the development hampers their productivity.

    According to him, some Nigerian banks are still unable to provide long-term financing required by the local supply chain to build needed capacity; the banks also lack sufficient knowledge of the oil and gas sector. The pedigree and operating model of the Bank of Industry (BOI) is expected to close this gap.

    It is as a result of BoI’s pedigree that the Nigerian Content Development and Monitoring Board (NCDMB) signed a Memorandum of Understanding (MoU) to implement the $200 million NCI Fund. The MoU is significant for the oil and gas industry and the Nigerian economy because the NCI Fund has been long expected and will go a long way in addressing the funding challenges, which hamper the growth and success of indigenous manufacturers, service providers and other key players in the sector, he added.

    The Minister said: “It is a known fact that the exorbitant cost of funds in our market is partly responsible for the high cost of service delivery by Nigerian Oil and Gas Service Providers (NOSPs) and this feeds into the unacceptable high cost of our crude oil production.

    “At the SPE conference in Lagos recently, I directed all players in the oil and gas sector to work assiduously to cut the cost of producing a barrel of oil, which current stands at $32 per barrel. I am optimistic that the NCI Fund, which will be accessed at a single digit interest rate, with a tenor of five years, will help in this regard.

    “The NCI Fund is a portion of Nigerian Content Development Fund (NCDF), which was established by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and is drawn from one per cent of all contracts awarded in the upstream sector of the oil and gas industry.

    “Although the Board began in 2012 to collect the funds, it has not been very successful with utilizing it to support the operations of indigenous service companies in the industry. This has created a lot of frustration among stakeholders who felt that the purpose of the NCDF was not being achieved.

    “The Governing Council of the Board, of which I am the Chairman, approved this transaction at our last meeting with an initial outlay of $200million. This is to ensure that a wide spectrum of NOSPs access the Fund. We are also desirous of catalyzing the growth and development of Nigerian Content in all its facets, including manufacturing, asset acquisition, contract financing and Contract financing for community contractors. The Governing Council’s approval is in keeping with the Economic Recovery and Growth Plan of President Muhammadu Buhari led administration, which recognises access to cheap funds as a key enabler for industrialization.”

    He said NCDMB and BoI would leverage their respective strengths and track record of achievements to make the NCI Fund a resounding success and advised companies that will successfully access the NCI Fund to be diligent in utilisation and faithful in repayment. There is a tendency for companies to assume that it is free money and decide not to repay. To forestall this, NCDMB and BOI must adhere strictly to the detailed operating model, to ensure that only serious companies with bankable business plans and prospects of repayments access the funds, he added.

  • Reps praise NIPCO for boosting downstream

    Reps praise NIPCO for boosting downstream

    The House of Representatives Committee on Petroleum Resources (Downstream) has commended NIPCO for its acquisition of ExxonMobil’s 60 per cent equity in Mobil Oil Nigeria Plc.

    According to the lawmakers, the acquisition has demystified the impression of International Oil Companies (IOCs) that it is difficult for indigenous oil companies to market petroleum products.

    Committee Chairman Hon. Joseph Akinlaja made the commendation when the committee visited  NIPCO Plc headquarters in Lagos. He said the feat is a boost for higher indigenous stake in the oil and gas industry.

    “There is no rocket science in selling white products as the pioneer foreign companies make it look like it is an impossible terrain due to their monopoly in the market.

    “Among the seven foreign companies that ventured into the downstream sector, only Total Plc still remains. Others have yielded their stakes to indigenous companies,” Akinlaja said.

    According to him, NIPCO, by acquiring Mobil Oil, has expanded its horizon and impacted the downstream sector as a key player. He noted that as an indigenous company, NIPCO has performed creditably, despite that it is young in the sector. He added that the Green Chamber was proud of the organisation for its local content exploits.

    Akinlaja said despite the recession, the company has not sacked any worker and still maintains good housekeeping and high standards.

    He also commended the robust presentation of the company at the  public hearing of the House of Representatives on kerosene explosions, adding that the visit was to see for themselves the practicability of the suggestions based on NIPCO’s modus operandi in the handling of the product.

    NIPCO Group Managing Director Mr. Venkataraman Venkatapathy said the company has become the first indigenous downstream outfit to have high influx of retail outlets of white products and liquefied petroleum gas (LPG) to its name.

    “It is also a proud achievement that NIPCO won the bid to acquire Mobil Plc not only because of our push but, amongst all, we were seen as a company whose technical, safety and experienced manpower is very high and is on records,” he said.

    Venkatapathy noted that despite high recession, employees’ jobs were maintained with no retrenchment of any sort from NIPCO, and, more importantly, the company had reinvested its profit in the country.

    NIPCO’s Group Executive Director, Alhaji Abdulkadir Aminu, said stakeholders should come together to state their challenges and analyse in documentation the aspects which the Federal Government could do and also the private sector could do to participate effectively in the hydrocarbon industry .

    He assured that NIPCO, which prides itself as the only marketing company that gave the highest equity participation to marketers in the ownership of the company, would never let Nigerians down. “We will also increase our participation in the oil and gas industry in all aspects as we add value to the common man through our various corporate social responsibility (CSR) programmes,” he said.