The Nation Newspaper

Category: Energy

  • Govt urged to increase oil output above 2.2m bpd

    Govt urged to increase oil output above 2.2m bpd

    The Federal Government has been urged to increase crude oil production from the current level of between 2.2millon and 2.3 million barrels per day (bpd).

    The low output has made it difficult for the government to generate enough revenue for socio-economic development, data from the Nigerian National Petroleum Corporation (NNPC) has shown.

    The data showed that the country’s crude production has been less than 2.5mpd, while the global oil downturn persists. It is in view of this development that the Society of Petroleum Engineers (SPE), Nigerian chapter, advised the government to ramp up oil production by engaging in more  drilling and exploration activities.

    Speaking in Lagos during a briefing to herald the 2015 Nigeria Annual International Conference and Exhibition (NAICE), its Country’ Chairman, Emeka Ene said the need to buoy oil production became necessary in order to reduce the impact of global oil recession on Nigeria.

    He said: “There is urgent need by the government to improve daily oil production via drilling more wells. The oil in the Gulf of Guinea holds more prospects for Nigeria. However, the need to optimise the potentials in the nation’s oil and gas industry by drilling more wells would go a long way in boosting production. It is better for Nigeria to drill more oil wells during a down cycle period than a booming period. This is the only way we (Nigeria) can have more to sell and make more money during recession.’’

    According to him, the industry operates in a cycle, stressing that there are upside and downside period in the sector.

    “There was a period when oil was $11 per barrel before the price moved to $40, $50 and over $100 per barrel. Later, the price fell to below $50 per barrel. So, if we increase the volume of oil production, the country would benefit in the long- term no matter the happenings in the international market.

    Ene said activities in Kuwait and other oil producing nations in the United Arab Emirates (UAE) are all time hard, adding that the development made  the country to try   investing billions of dollars in the industry.

    He said while UAE is putting in place measures in place to cushion the effects of the global oil downturn and further improve production.

    He said Nigeria should do something over a long-term period to address problems in the industry.

    Ene said the resuscitation of the industry is necessary in the light of decreasing oil production and revenue, adding that the government has taken steps in this direction.

    On the conference, Ene said NAICE 2015 conference, being the 39th edition, will hold from between August 4 and 6, at the Expo Centre, Eko Hotel and Suites, Victoria Island Lagos. The theme for this year’s conference is “Natural Gas Development and Exploitation in an Emerging Economy – Strategies, Infrastructure and Policy Framework,” he said.

    The main focus of the conference is “Sustainability, Infrastructure and Framework in an emerging economy” with a focus on natural gas development and exploitation, he said, adding that there will be workshops on marginal field, among others.

    Expected to speak at the event are the Vice President,  Prof. Yemi  Osibanjo, SAN,  Lagos State governor, Mr. Akinwunmi Ambode,  Group Managing Director NNPC, Dr. Joseph Thlama Dawha, Mr. Helge Hove Haldorsen, Vice President, Strategy & Portfolio Development & Production, North America, Statoil, Mrs. Elisabeth Proust, Chief Executive Officer, Total Exploration & Production, Nigeria, and Mr. Clay Neff Jr, Chairman & Managing Director, Chevron Nigeria Limited.

  • Gas sector needs robust policy framework, says DPR

    The Department of Petroleum Resources (DPR) has said the gas sector needs robust and appropriate policy framework to enable the country harness the opportunities and benefits in its abundant gas resource.

    Its Deputy Director, Gas Monitoring and Regulation, Mr. Antigha Ekaluo who spoke in Lagos yesterday at the 2015 Business Forum and Annual General Meeting of the Nigeria Gas Association (NGA) said only a good policy could move the sector forward . The theme of this year’s Business Forum is Harnessing and monetising the potential of stranded gas fields.

    Ekaluo said effective gas sector policy will give Nigeria the ability to harness opportunities in the sector and will afford the country the opportunity to enjoy maximum value from its stranded gas resources. Nigeria, he said, is endowed with abundant gas resources and the sector holds huge potentials for unprecedented growth.

    He said: “The existing legal and regulatory framework, written primarily for oil does not provide robust technical and commercial framework for gas. There is therefore the need to pass the Petroleum Industry Bill (PIB) into law, which will underpin the ongoing sector reforms.

    The gas sector policies will provide Nigeria with the opportunity to harness and get maximum value from its stranded gas resources.”

    He said effective gas sector development remains a strong catalyst for growth of the economy. Besides, such growth will also have a multiplier effect on the Nigerian economy, he added.

    In harnessing and monetising stranded gas, Ekaluo said there is need to adopt new technologies, adding that government should also deepen market penetration, sustain demand growth and also vigorously pursue the completion of gas gathering and utilisation projects. He said there is urgent need to address gaps in regulatory and commercial frameworks across the gas value chain.

    The Chairman, Society of Petroleum Engineering (SPE), Nigeria Council, Mr. Emeka Ene said to achieve effective  strategy for monetising stranded gas, there is need to identify and secure country’s closest markets and develop an integrated flare-out model.

  • Local meter manufacturers seek govt’s intervention

    The Electricity Meters Manufacturers Association of Nigeria (EMMAN) has called on the Federal Government to assist its members’ firms from folding up.

    He said some of the firms might go under for lack of patronage by the privatised power companies.

    Its Executive Secretary, Mr. Muideen Adebayo Ibrahim, told The Nation that despite the huge loans his colleagues took from banks to build the meter manufacturing factories, the electricity distribution companies  (DISCOS) have refused to buy meters from them. The situation has forced some of their members to close shops, while others drastically cut their workforce, he decried.

    He said: “Our members out of sheer patriotism, despite numerous challenges confronting manufacturers in Nigeria, took undaunted risks with borrowed funds with the accompanying high interest rates, established world-class factories with state-of-the-art facilities.

    “Every local manufacturer has production capacity of 1.2 million meters per annum with room for future expansion. Not only that, smart meters (single and three-phase) are produced with GPRS data bundle that allows for communication between the meter and the server.

    “Our members have robust billing application system, energy theft accounting system, automatic metering infrastructure, superlative customer relationship management system platform, prompt after sales service and asset management mechanism, among others.

    “In fact, some of the billing application system or platforms designed by our members are currently being used by some of the distribution companies. This actually laid credence to the fact that the local meter manufacturers can do it, even if not better. But they have been faced with plethora of challenges in the past, which became more serious within the last one and half years, especially since the new owners of the distribution companies took over.

    “In fact, without mincing words, it has been very tough for our members, hence some have downsized their workforce and others shut down factories. Currently, one of the financiers threatened to dispose the factory of one of our members for his inability to service his obligation. It is, indeed, a sad commentary because we are running from pillar to post in order to ameliorate the situation.”

    As a result of the enormous challenges facing them, the EMMAN scribe urged the Federal Government to declare a state of emergency in the sector, create and make available a special intervention fund where local electricity meter manufacturers should draw soft loans at a maximum of two per cent interest rate. With such loans, locally produced meters can be sold to the distribution companies (DisCos) at very competitive price just as their counterparts from China sell to the DISCOS  on one year moratorium and five per cent interest, he said.

    He also asked the government to prevail on all the DISCOS to patronise locally produced electricity meters to create more jobs for Nigerians, increase its contribution to the Gross Domestic Product (GDP), which would on the long run boost the yearly revenue earnings of Nigeria and curb capital flight, among others. The government should support and encourage EMMAN members as the Chinese Government gave unflinching support to their counterparts in China, he added.

    Other requests by the local meter manufacturers include providing them (manufacturers) with the necessary infrastructure and facilities because some of the manufacturers rely on generating sets to operate, prevail on the DISCOS to stop estimated billing, and let the    Nigerian Electricity Regulatory Commission (NERC) step up and perform its oversight functions and responsibilities effectively and efficiently without bias or sentiment. NERC should apply the necessary sanction to any errant firm if need be, and ensure that the provision of Local Content Act on power sector is obeyed to the letter, he said.

    “Government should place embargo on the importation of meters in order to encourage local meter manufacturers, just as it was recently done in the automotive sector, protect the local manufacturers just as done in Egypt, Algeria, Tunisia, Morocco and South Africa, allow local manufacturers to sell meters to consumers and/or approved vendors in order to open up the market, and mandate all the local meter manufacturers to roll out at least 200,000 units of meters monthly.

    ‘’This will keep the factories running and more Nigerians would be gainfully employed. Rather than allowing the DisCos to buy from Chinese companies, which means developing China at the expense of our dear nation. NERC and Ministry of Industry, Trade and Investment should act as the supervisory bodies in this regard.

    “We will like to recommend the constitution of a monitoring committee for the DisCos and the manufacturers. The committee should comprise of representatives from; NERC, DisCos, EMMAN, Standard Organisation of Nigeria (SON), EMS, Ministry of Industry, Trade and Investment and Ministry of Power. This will ensure that things move on in the right direction which in the long run will propel the economy and this would no doubt enable more jobs to be created for the teeming unemployed,’’ he added.

  • Nigerian Content good for IOCs, others, says NCDMB

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe, has said the successful implementation of Nigerian Content is good to all stakeholders in the oil and gas industry, including the international oil companies (IOCs).

    He spoke when the General Managers of Nigerian Content departments of IOCs paid him a courtesy visit at his office in Yenagoa, Bayelsa State capital.

    He said the Nigerian Content Act was well implemented, adding that the Board and the operators see themselves as parttners in progress. The Board decided from its inception in 2010 to collaborate with the IOCs, other operators and stakeholders in the service industry, he said, adding that the model had proven very effective in stimulating compliance with the provisions of the Act.

    According to NCDMB’s Media Relations Supervisor, Public Affairs Division, Obinna Ezeobi, the Content Board chief said the developmental role of the Board was critical and it involved collaboration with stakeholders to develop in-country’s capabilities, which make it possible to execute most industry projects hitherto taken abroad before the advent of the Act.

    He praised the operating companies’ partnership with the Board over the years, and their support to the development of local capacity through various initiatives.

    Kentebe charged the companies not to rest on their oars, considering that he is new on the job and needs their contributions.

    He assured the General Managers that the Board would work with them to find solutions to the problems their various companies might have with the Nigerian Content.

    The General Manager, Nigerian Content, Nigerian Agip Oil Company (NAOC), Mrs. Callista Azogu underscored the IOCs’ commitment to the Nigerian Content development, which she said began before the enactment of the Act in April 2010.

    Azogu, also chairperson of the group, admitted that the operators had challenges complying with some provisions of the Nigerian Content Act, noting that such problems were resolved with the Board to the benefit of all stakeholders.

    The General Manager, Nigerian Content Department, Chevron Nigeria Limited, Mr. Raymond Wilcox, said their group and the Board had the same objectives, which include drive to increase the participation of Nigerians and utilisation of indigenous assets and facilities in the oil and gas industry, retain a greater part of the industry spend in-country and transform the economy.

    He said the Nigerian Content had taken root in the operating companies and members of their group were the vanguards of that philosophy in their organisations.

  • Bell Oil chief laments jobs’ export

    The Managing Director of Bell Oil & Gas, Mr. Kayode Thomas, has regretted that some firms still take  jobs abroad even when such could be done at home.

    He said it had become imperative for such firms to change or be compelled to do so to promote indigenous firms and create jobs.

    Thomas spoke when his firm’s  spool yard for Glass Reinforced Epoxy (GRE) pipes was inaugurated in Port Harcourt, Rivers State by the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe.

    NCDMB’s spokesman, Obinna Ezeobi, in a statement, said the spool yard manufactures pipes with diverse bends and angles, delivering liquids to various outlets at different temperatures and pressures, hence cannot be manufactured in conventional pipe mills.

    Ezeobi said the NCDMB chief praised Bell Oil and Gas for the investment, which came on the back of the Board’s Nigerian Content Equipment Component Manufacturing and Certification (NCEC) programme commenced under the leadership of the pioneer Executive Secretary, Dr. Ernest Nwapa.

    He described the NCEC’s initiative as laudable, pledging that the Board  would continue to implement the framework and other programmes geared towards encouraging investments and establishment of facilities in Nigeria.

    Kentebe noted that such facilities contribute to the Board’s vision to use the Nigerian Content as a vehicle for industrialisation and creation of employment and training for qualified Nigerians.

    He said the focus of the Board is to create shop floors that would train and empower Nigerians in all sectors of the industry, adding that NCDMB would continue to promote hands-on training in manufacturing, engineering, fabrication, marine, subsea, drilling and well services and all other activities.

  • ‘Improved power supply likely to be sustained’

    ‘Improved power supply likely to be sustained’

    Nigerians seemed to have witnessed improvement in power supply in the last few weeks. The said increase in available generation from 4,517 megawatts (mw) to 4,545mw within two weeks as announced by the Transmission Company of Nigeria (TCN), may have further confirmed that the Nigerian Electricity Supply Industry (NESI) is developing.

    The reason for the noticeable relative stability in supply is attributable to improvements across the electricity supply value chain, which include gas supply, reduced vandalism and upgrade of generation facilities by the new investors.

    Pipeline vandalism, which has been a major challenge to increased  output from the power plants, it was gathered, has reduced drastically since President Muhammadu Buhari’s administration came on board about one and half months ago. The frequency of pipelines vandalisation has reduced significantly, The Nation learnt.

    The Nigerian National Petroleum Corporation (NNPC) Joint Venture companies also confirmed that there have not been any incidents of vandalisation of pipelines in the past one month. This has resulted in increased and sustainable gas supply to the power sector.

    Besides, the result of investments made by the privatised successor companies, which unbundled the Power Holding Company of Nigeria (PHCN), has started to manifest after one and half years the companies were handed over to them.

    For instance, Egbin Power Plc and Transcorp Ughelli Power Limited have added more than 1000 megawatts (mw) to the capacities they inherited at the time of handover.

    As at the beginning of this week, generation from Egbin power plant rose from 1000mw two weeks ago to 1016MW as against a maximum output of 500MW at handover. Sahara Power Group and Korea Electric Power Corporation (KEPCO), owners of Egbin power plant and Ikeja Electricity Distribution Company confirmed that gas supply to the plant increased considerably. They said the improvement in generation was also due to continued investment and upgrade activities on the plant. They assured that the improvement in supply will not only be sustained, but improved upon adding of the six turbines of the power plant that are currently operational. “This is the first time the plant with installed capacity 1320mw is generating above 1000mw,” the firm said. Egbin’s Chief Executive Officer, Dallas Peavey said about N50 billion has been invested in the power company post-privatisation with continuing investment in new technology, innovativeness, professionalism and human capital development.

    The owners of Transcorp Ughelli Power Limited just announced that it has increased output from the asset from 160MW on takeover on November 1, 2013 to 635MW and plans to expand it to 2,200MW in the next three years.

    The Group Executive Director, Gas and Power, NNPC, Dr David Ige said the Corporation is making a lot of progress in the East-West gas pipelines. According to him,  as at the end of May, the Corporation was   supplying over one billion standard cubic feet per day (I bscf/d) of gas to the power sector, adding that by now the production could have risen significantly.

    Ige, however, noted that the Corporation’s expectations is that  it will make significant increase in supply by the end of the year, adding that cumulative production for domestic use is about  two bscf/d.

    He also said some of the available gas is stranded because some power plants are not ready and where possible, the stranded gas will be redirected to operational plants.

    “Over the next couple of months, Nigerians will see increase in gas supply and power. For example, we have gas at Gbarain-Ubie power plant; we have gas at Omoku, which is awaiting the power plant and we have gas at Egbema power plant. When you bring all these gas volumes together, we have close to 2bcf/d, but not all of these are in active generation today. It is either the power plant is not ready or the power evacuation is not ready.

    “On the western side of Nigeria, the Lagos pipeline is almost completed. We have completed and commissioned Lagos to Oben; completed Emure to Itoki and the line from the Benin end to Emure is progressing very well. The expectation is that before the end of August, the Escravos-Lagos Pipeline would have been completed. With all these on stream power supply will improve considerably,” he said.

  • Nigerian Content Fund to hit $700m

    Succour is coming for players in the upstream sector of the oil and gas industry, as the Nigerian Content Development Fund (NCDF) meant to assist Nigerian operating firms’credit needs rises to about $700 million.

    The Fund is intended to address  financial and liquidity challenges of  Nigerian companies by offering partial guarantee on bank loans and 50 per cent interest rebate on performing bank loans under the partial guarantee scheme.

    The Fund, estimated to be just above $540 million at the end of April, it was learnt, is growing gradually and would likely hit  its projected target of $700 million by the end of the year.

    A source at the Nigerian Content Development and Monitoring Board (NCDMB) told The Nation that the Fund’s growth is impressive as it was started with only $50 million in 2010. “The projected growth chart was that by 2011, it would rise to $70 million and $150 million by 2012 and to $350 million by 2013, while we were looking at $450 million and $700 million by end of 2014 and 2015 respectively. But you know that these targets were mere aspirations and the expectation was that if we would be able to achieve 70-80 per cent of these targets, it would be gratifying results,” he said, adding: “But fortunately the Fund has been growing beyond expectation and may attain the planned target of $700 million by year end.”

    The source continued: “Considering the current growth potentials of the Fund, we expect a continuous increase in its size and capacity to attract other sources of funds both locally and internationally to support Nigerian oil and gas content development,” he said.

    The  Fund, according to the source, could have helped a lot of Nigerian firms, but for the challenges encountered in its formative year, adding that banks willing to lend under the programme inserted few terms and conditions that could not be met by the emerging/growing Nigerian companies.

    This resulted in consistent delays in concluding transactions and often stalled some applications. Some bankers demonstrated limited understanding of oil and gas business and the peculiarities of the sector. The limited understanding also resulted in delays in concluding credit packages and structure.

    “On the part of Nigerian companies, some challenges identified then were their inability to package and collate transaction documents for bankable deals, low response time to bank requests during credit processing, and lack of verifiable cash flows to support and sustain repayments,” the source added.

    To ensure that the Fund is not depleted, three levels of custodian monitor remittances – fund managers such as BGL/UBA global, other commercial banks participating in the programme, and Industry Advisory Committee & special purpose vehicle (SPV), are on ground to strengthen governance.

    According to the source, the NCDF was established by the Nigerian Oil and Gas Industry Content Act (NOGIC Act), 2010 to address financial and liquidity challenges of the Nigerian companies that operate within the Nigeria oil and gas industry. The Fund is built through the deduction of one per cent from every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity or transaction in the upstream sector of the oil and gas industry. It is deducted at source by contract awarding entities and remitted into the Fund’s designated accounts, which are kept with Custodian Banks including BGL/UBA global and other participating commercial banks under the programme.

    The Fund is structured in such a way that 30 per cent goes for direct intervention in the beneficiary company’s operation. It is meant to identify areas with gaps and plug loopholes through trainings, technical support such as research, studies and possible temporary acquisition of stake, and  critical intervention in infrastructure development, among others.

    The other 70 per cent is for commercial intervention of which 30 per cent  is set aside as partial guarantee on bank loans to local operators in order to grow local capacity and give 50 per cent interest rebate on performing bank loans under the partial guarantee scheme.

    To benefit from the Fund, the Nigerian oil and gas company approaches its bank to discuss funding needs; backed up with a loan application and must notify NCDMB and/or its accredited financial advisers on the engagement with the bank to facilitate appropriate follow-up. If successful, the lending bank submits executed offer and loan facility agreement to NCDMB or its accredited agent. NCDMB reviews the Loan facility agreement for compliance and notifies lending bank of any approval, rejection, or suspension pending submission of additional information on the application.

    Where the application is suspended, the approval period will start to run from the date the required information is re-submitted. If approved, the NCDF will issue the Partial Guarantee Agreement to be executed between the bank and the Fund. But the company must be duly registered under the Companies and Allied Matter Act (CAMA) of 1990, and registered with the Nigeria Joint Qualification System (NJQS). The company also must be carrying out businesses within the oil and gas industry upstream value chain and must scale through their bank’s minimum credit appraisal test, which will facilitate the Bank asking for the NCDF Guarantee Appointment of independent advisers to provide financial advisory assistance for the Fund’s implementation.

  • Kentebe commissions Bell Oil’s $4m spool yard

    •Urges employment creation 

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Amagbe Kentebe, has urged oil firms to create jobs through the various projects they handle, as Bell Oil and Gas did with its spool yard.

    Kentebe made the call when he commissioned the spool yard for Glass Reinforced Epoxy (GRE) pipes of Bell Oil and Gas Limited in Port Harcourt, Rivers State. He described the spool yard worth over $4million as the first of its kinds in Nigeria and Africa, saying it will help to provide immediate solutions to various oil and gas projects onshore and offshore.

    Glass Reinforced Epoxy pipes are valid alternative to carbon steel pipes especially for corrosive, aggressive and normal environments. GRE pipe technology, according to the firm, is based on the continuous filament winding process using high strength fibreglass (e-glass) and amine-cured epoxy resin as basic material. The pipes are reinforced throughout with tough glassfibre strands, creating a lightweight, strong, corrosion-resistant pipe that meets international standards.

    According to Kentebe, the facility is capable of creating thousands of employment for Nigerians, ending capital flight in the oil and gas industry. The job creation opportunity and in-country capacity building for the spool yard, he said, was documented and recorded with the training and certification of over 70 Nigerian engineers in the last 24 months. “In the 54 years of oil exploration in Nigeria, if in every 24months we have been training 70 Nigerians, you know how many Nigerian engineers we would have produced today in the oil and gas industry. But this is the beginning, and I am sure with the support of NCDMB and industry operators, Bell Oil and Gas will continue to make us proud,” he said.

    Kentebe said restiveness and insecurity issues in the Niger Delta region would have become a thing of the past if each oil and gas company has been training a minimum of 70 Nigerian every 24 months.

    This type of facility, according to him, is part of the vision to use Nigerian Content as a platform for industrialisation, creation of more jobs and training opportunities for several Nigerians. “I think we are on the path of eradicating insecurity by measures with such investment made by Bell Oil and Gas.

    “This commissioning is a major milestone achievement for Nigerian Content Development because it was achieved on the back of Nigerian Content Act under the leadership of my predecessor and pioneer Executive Secretary of the NCDMB Mr. Ernest Nwapa. I find this initiative and others, which the NCDMB initiated before I came on board as very laudable,” he said.

    He assured that the board will continue to implement the framework and support investment in more facilities of this type in Nigeria. “Today, we are celebrating Bell Oil for taking the first practical step to deliver  real value to the Nigerian economy. The company has been developing capacity in GRE fabrication and installation for which they have carved a niche for themselves in the last 10 years,” he said.

    Bell Oil & Gas Chief Executive Officer, Mr. Kayode Thomas, said the journey that led to the commissioning of the GRE spool yard started in 2002 when the company attended Offshore Technology Conference (OTC) for the first time in Houston, Texas, United States (US). “Initially, we thought these were not likely to have much prospects in Nigeria. But upon further digging, we realised that these pipes had huge advantages over carbon steel pipes in that they are corrosion-resistant, light weight (making installation very easy) and require no welding.

    “Today, Bell Oil and Gas  has now achieved an enviable position in GRE fabrication, installation and maintenance, with a range of completed and ongoing contracts on several floating production, storage and offloading (FPSO) vessels and oil & gas facilities in the country,” he said.

  • Why we sell fuel above N87, by IPMAN

    Why we sell fuel above N87, by IPMAN

    It may be difficult for independent oil marketers to sell premium motor spirit (PMS), otherwise known as petrol, at the official pump price of N87 per litre in the nearest future.

    Despite threats of sanctions by the oil and gas industry regulator – Department of Petroleum Resources (DPR), that it will descend heavily on any marketer who violates the law on pricing, the independent marketers said it would be difficult to sell at the official price because they don’t get the product at regulated rate.

    The marketers, under the aegis of Independent Petroleum Marketers Association of Nigeria (IPMAN), said they buy PMS from private depot, whose ex-depot prices are far above N87 per litre, especially since the current fuel scarcity began in May.

    According to them, the Nigerian National Petroleum Corporation (NNPC), which is the sole importer of fuel in the country, does not supply products to them. NNPC has been the sole importer of fuel since the major marketers stopped importation.

    The major marketers stopped importing fuel due to unpaid subsidy of over N300 billion and the uncertainty surrounding government’s continuity of Petroleum Support Fund (PSF) from which subsidies on imported fuel are paid.

    Unfortunately for IPMAN, NNPC prefers to supply major marketers with fuel to sell at their retail outlets to enable easy access to the product by motorists.

    According to an industry source, NNPC’s preference of use of major oil marketers’ facilities is because of their compliance to the rules. The major marketers, the source said, are not violators of the rules as they sell at official price and their pumps are properly calibrated. But independent marketers engage in sharp practices, selling with under-dispensing pumps, among others.

    IPMAN Zonal Vice Chairman, Western Zone, Kunle Bamigboye, at a meeting with DPR,  depot owners (Major Oil Marketers Association of Nigeria and Petroleum Products Marketers Association in Lagos, said their members do not get supplies from NNPC, but still keep their stations running, buying from private depot owners whose prices are higher than the government’s N87 per litre price.

    He said: “We are the orphans of the industry. None of our members gets two trucks of PMS in a month because of lack of fuel. We buy PMS at below the regulated price only from the depots of the NNPC, but the supply doesn’t come. When we buy from the depots of DAPPMA members, the price is always above the pump price and as businessmen we wouldn’t sell below the cost price. We have to sell above the regulated price to make profit,” he said. He, however, said IPMAN members sell fuel with properly calibrated pumps.

    A IPMAN former Zonal Chairman, Western Zone, Mr. Olumide Ogunmade, corroborated Bamigboye and noted that if the NNPC supplies them fuel they will stop buying from private depots and none of their members will sell above N87 per litre.

    DPR’s Head, Downstream, Alphonsus Mudei, who represented the Director, Mr. Mordecai Danteni Baba Ladan, at the meeting warned the marketers and depot owners that the Department would no longer tolerate deliberate flouting of the law by marketers hoarding petrol and selling it above the official pump price of N87 per litre because it was brought in under the PSF.

    He said: “In the last few months, the nation has experienced epileptic supply of PMS, which has reflected in the sale of this product above official pump price. We have evidence to buttress this. We find this trend unacceptable given that marketers with whom we have constantly interacted with have benefitted from the Petroleum Support Fund, which has enabled marketers to operate their businesses at a level that should guarantee constant and uninterrupted supply of products.”

  • SPE, Uniport seal deal on energy centre

    A fresh capacity development programme for petroleum engineering students and professionals in Nigeria midwifed between Society of Petroleum Engineers (SPE) Nigeria Council  and University of Port Harcourt, River State would soon commence.

    The initiative, according to SPE Nigeria, became necessary to advance research, development and innovation within the sector. It is also aimed at ensuring that the  nation fully taps the sectors’ potentials.

    Towards this end, SPE Nigeria Council is building ‘Energy Centre’ at the University of Port Harcourt, Rivers State as a one stop state-of-the-art digital edifice showcasing digital models of tools and equipment used in the energy industry and historical  evolution of petroleum in Nigeria as an industry and a profession.

    Unfolding the features of the SPE Energy Centre during the ground breaking ceremony, which held on the premises of University of Port Harcourt, the Council Chairman of SPE Nigeria Mr. Emeka Ene said the centre was set up as a meeting point for industry, academia and other stakeholders to share technical ideas and enhanced skills for improved productivity.