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Tag: Department of Petroleum Resources (DPR)

  • Price hike: DPR shuts down three fuel stations in C/River

    The Department of Petroleum Resources (DPR) in Cross River State has shut down three fuel stations in Odukpani local government area for selling petrol at N150 per litre against the government approved price of N145 per litre.

    DPR Operations Controller in Cross River, Mr Bassey Nkanga, who led his team on a surveillance of fuel stations across the state, said the stations were shut down for violating the seal order of the DPR.

    Read Also:DPR raises alarm over adulterated engine oil

    Nkanga, who expressed dissatisfaction with the hike in price of the affected stations, said they had no reason to hike the price when some stations were selling the product at N143 per litre.

    He said that the stations will have to pay a fine of N1million each for violating the `seal order’.

    The Operations Controller explained that the intensified surveillance became necessary with a view to ensure that marketers do not increase pump price ahead of the yuletide period.

    “Any marketer that is caught cheating in any form, either selling above government price or adjusting the metre will be sanctioned severely. We have been doing this in the past two weeks and already some marketers have been sanctioned.

    “If you have been a serial violator of the regulations, if you pay the fine; it is not a guarantee that we will unseal your station for business to commence immediately.

    “The level of stability in the sector is nearly 100 per cent especially in Cross River Central and South. We will try our best to sustain this tempo of surveillance activities in all outlets.

    “The initiative is a routine exercise. We are only intensifying the monitoring and surveillance activities to ensure that marketers do not take undue advantage of the yuletide period to hike the price,’’ he said.

    Nkanga said as the yuletide season approaches, there is the tendency that people will want to take advantage of the period to dupe the public.

    He said that DPR in Cross River was doing its best to create awareness and giving assurance to Nigerians that there will be stability in the sector, especially the downstream sub-sector during the yuletide.

    “We are on ground working and the exercise will continue on daily basis because we want to make sure that the yuletide season is hitch free.

    “I want to advise depot owners and marketers to abide by all rules and regulations of the DPR, because anyone that is caught cheating the public will be sanctioned,’’ he said.

  • EFCC recovers over N1.5b, others in P/H in nine months

    …also 283 oil theft  trucks, forfeited 59 

    The Economic and Financial Crime Commission (EFCC) on Wednesday said that it has recovered a total sum of N 1, 592,568,524.38 in their operations between January and September,  2018.
    The Anti-Graft agency also disclosed that it equally recovered a total of $678,354.80 (U S) as well as the sum of 5,254 Euro within the period under review.
    The head of operation of the agency in Port Harcourt zone, Mr. Nnaghe Obono Itam who disclosed this in a statement in Port Harcourt, the Rivers State capital  yesterday also said a total number of 283 trucks laden with illegal petroleum substance were apprehended and handed over to them by the Army in the period.
    Itam said laboratory test conducted by the Department of Petroleum Resources (DPR) of the Nigerian National Petroleum Cooperation (NNPC), on the products confirmed that 121 of the trucks were loaded with adulterated diesel, 39 of them has high pour Fuel oil(HPFO) and  low Pour Fuel oil(LPFO), whereas 31 of the vehicles were Kaden with waste/lube oil,  among others.
    He however noted that 59 of the truck with estimated quantity of 1, 013.7 metric tons(1,180,00 litres) of the petroleum product(diesel, kerosene and crude oil),  have been forfeited to the Federal Government after investigation.

    Read Also: EFCC, INEC partnership targeted at opposition – Wike

    However the commission is worried that the owners of the trucks have not shown up to claim their property since the vehicles were impounded.
    Itam equally expressed challenge in prosecuting the drivers who he said are presently on Army bail. According to him the Army officers who arrested the drivers and impounded the trucks have equally refused to liaise with the legal department if the commission for proper statement to enable them commence prosecution of the  suspects.
    He said,  “It is pertinent to note that some of the owners of the trucks are yet to report to claim ownership of their trucks.  This may be due to the fact that the drivers after their release by the Nigerian Army never reported the incident to their respective owners.
    “Some owners that reported assisted the commission in the arrest of their drivers. Charges have been prepared against the drivers and they will be arraigned in court soon.” he stressed.
    Expressing handicap in the their investigations said,  “The commission in locating the owners who are yet to claim their trucks is currently liaising with various states’ motor licencing agencies for registration of the trucks. The ones without owners will be published on the newspapers before their final forfeiture.” he said.
    Speaking further said,  “The arresting officer of the Army who are key in the successful prosecution of these cases in court are yet to report for statement despite several appeals.” he expressed.
    However when contacted,  the spokesman of 6 Division, Nigerian Army Bori Camp Aliu Illiyasu, where the concerned Army officers are attached to fie reaction on the allegation, denied any suspected  plans by men of the  Army to frustrate the process of justice delivery,  but promises to find out what went wrong and them get back to the Reporter, but to no avail; at least as at the time of filing this report.

  • DPR raises alarm over adulterated engine oil 

    The Department of Petroleum Resources (DPR) Wednesday raised the alarm over the infiltration of adulterated lube oil (engine oil) into the petroleum market.

    Speaking on the DPR Half Hour of Radio Nigeria that The Nation monitored, DPR Zonal Operations Comptroller, Mr. Wole Akinyosunye, said that the callous act had become a concern to the organization due to the effects of fake lubricant on machines.

    He however noted that the DPR was not resting in its oars as it was always raiding the illegal facilities of the adulterated lube with the Nigeria Security and Civil Defense Corp (NSCDC).

    He called on consumers of engine oil to insist on purchasing their lube from licensed outlets and petrol filing stations instead of patronizing roadside retailers.

    Akinyosunye, who said that the organization was doing its utmost to curb the menace, noted that the operatives of the DPR could not be in all the over 5,000 in Lagos and Ogun only at the same time.

    According to him, the DPR has always sanctioned and revoked the licenses of the defaulters.

    His words: “I can tell you that one of the major challenges that we have today is the adulteration of lube oil. You could find that unscrupulous persons also have business of how they adulterate lube oil or what is popularly called engine oil.

    “They have even perfected how they package it as real. And some time they sell them under popular brand of unsuspecting consumers.

    “So, DPR regularly raids such illegal facilities with the assistance of the Civil Defense Corp and put them out of operation.  The adulteration of lubes is particularly of great  concern to DPR because of its harmful effects on machines and the environment.

    “And we therefore advise consumers to ensure to purchase products that are from only licensed outlets, petrol filing stations, especially.”

    The DPR, he said, was still experiencing issues with quantity delivering at the pump as unscrupulous dealers adjusted their meters to under dispense to customers.

    Akinyosunye however said that the organization was ensuring that customers get full value for their money by accurate dispensing of petroleum products.

    The DPR, according to him, “ensures that any dealer caught under dispensing is penalized. It ranges from fine to total closure of station and revocation their license to operation.”

    He called on the dealers to ensure proper calibration of their meters.

    The DPR Zonal Operations Comptroller said that one of effects of very low refining capacity in Nigeria was inability to get full value for crude oil and importation of petroleum products.

    The situation, according to him, constrained the country to allocate scarce forex to the importation of the Premium Motor Spirit, diesel and kerosene.

    He however explained that the recourse to kerosene in the rural areas portends environmental challenges to the country.

    He however revealed that “the good news from this, however, is that the scarcity is compelling the use of domestic gas across the country. The fact before us in DPR is that more Nigerians are now resorting to using gas as cooking fuel as alternative to kerosene.”

    He called Nigerians to embrace the use of domestic gas, which he described as a cleaner energy source. He noted that that the domestic gas price was getting more competitive.

    According to him, the sanction on Iraq and Iran which tightened the supply of crude oil was responsible for its rising prices.

    He said the scarcity of petrol that was witnessed in Nigeria in November last year and January 2018 had normalized.

  • Navy in Delta hands over vessel, nine crew members to EFCC

    The Nigerian Navy Ship (NNS) DELTA, on Monday in Warri, handed over a vessel laden with 524 metric tonnes of suspected petroleum products without valid approval, to the EFCC.

    The Commander, NNS DELTA, Commodore Ibrahim Dewu, said nine crew members on board the vessel christened “MV SKYE,’’ were also arrested for various crimes, including economic crimes.

    Dewu said the vessel was laden with products suspected to be crude oil and Automated Gasoline Oil (AGO).

    He said the suspects were arrested at the Escravos bay in Warri South-West Local Government Area of the state this month.

    The naval boss explained that the vessel was earlier apprehended by the Joint Task Force (Operation Delta Safe) in 2014 and handed over to the anti-graft agency for prosecution.

    “However, the vessel was released on bond by a court in Port Harcourt with about 388 metric tonnes of crude oil on board.

    “The bond was to enable the Department of Petroleum Resources (DPR) to sell the product and return the money into the Federal Government’s coffers.

    “This same vessel was, however, re-arrested and the captain, Ifeoluwa Jerome said it had 505 metric tonnes of product on board.

    “While investigating, we realised that the vessel had 524 metric tonnes of products and not 505 in seven of the 12 compartments,” he said.

    Read Also: EFCC recovers N106.5b, others in eight months

    Dewu said the crew had told him that they were supposed to be heading to the high sea through Brass in Bayelsa to Port Harcourt to dispose the product after the court case.

    “We found them off Escravos and they claim to be having machinery problem which led them to Escravos.

    “Secondly, this vessel was released on bond with about 388 metric tonnes of products by the court only for us to find 524 metric tonnes.

    “ Part of it is AGO instead of crude oil that was released by the court.

    “Part of the problems the Navy faces is that vessels hide under bond to commit illegal activities,” he said.

    The commander further said the navy had concluded its investigation, adding that the product on board had no valid approval.

    Mr Richard Ogberagha, EFCC’s Detective Superintendent who spoke on behalf of the agency, said justice would be done to the matter.

    “Officials of the DPR are already on ground taking samples; so we have started investigation already,’’ he said.

    Meanwhile, the captain of the vessel, Jerome, however, has denied the claims by the navy, insisting that he had not committed any crime.

  • DPR warns depot operators against bulk selling

    The Department of Petroleum Resources (DPR) has warned depot owners operating at the Calabar tank farms to desist from selling petroleum products to bulk buyers and hiking prices of the product as stiffer sanctions await defaulters.

    Head of Petroleum Downstream of DPR, Mrs, Ijeoma Onyeri, gave the warning during a familiarization tour of downstream facilities in Calabar zone.

    She explained that her familiarization tour of the downstream facilities in Calabar zone was to ensure that the depots were working in line with the Health and Safety Environment (HSE) compliance and the stipulated guidelines.

    According to her, DPR frowns at bulk buying and price hike of petroleum product, as that such illegal deals create artificial scarcity and panic buying.

    “Any erring operator caught selling to bulk buyers will highly be sanctioned.  They are the ones responsible for artificial scarcity and panic buying.

    “There are the ones responsible for diversion and hoarding of the product. DPR takes it seriously and any defaulter is given strict sanctions depending on the various category infractions’’, he said.

    The DPR Operations Controller in Cross River State, Mr Bassey Nkanga, said the exercise was carried out with a view to ensure that there were no cases of fire outbreak or explosion in any of the depots.

    Nkanga said that DPR places premium on the safety of depots and its staff, and that his office was working tirelessly to ensure that safety facilities within the depots and their jetties were up to date and functional.

    He explained that DPR was in top gear and doing everything possible to check bulk buying in order to prevent artificial scarcity and panic in the state.

    “We have imposed stiffer sanctions on any depot operator caught selling to bulk buyers.  Our point is that, no depot operator should allocate mass product to a particular company’’, he said.

    The Operations Controller had earlier held a meeting with depot operators at the DPR office where she advised filling stations owners on the need to renew their operating license or risk being shut down.

  • Court orders forfeiture of vessel, cargo seized from convicts

    The Federal High Court in Lagos Monday ordered the forfeiture of 600,000 litres of diesel (Automotive Gas Oil) and a vessel, which were recovered from 12 convicts, to the Federal Government.

    Justice Mohammed Idris made the order after he sentenced the convicts to six years imprisonment for dealing in the petroleum product without license.

    The Economic and Financial Crimes Commission (EFCC) in October 2015 arraigned them on four counts of conspiracy, dealing in diesel without lawful authority and forgery.

    They are Christopher Okorie, John Mbah, Tammy Bami, Osi Prince, Chukwuji Festus, Kabiru Adeyemo, Ayannubi Moses, Sopuruchukwu Chukwudi, Obinna Ebu, Abdullahi Oyelade, Charles Ubey and Achia Vincent.

    Read Also:Alleged money laundering: Court ends Metuh’s defence

    They were accused of forging a Department of Petroleum Resources (DPR) permit.
    EFCC charged them along with their vessel, MV PSV DEBY, and two companies – Phonic Marine Services Limited and Banquet Chambers Nigeria Limited.

    Justice Idris convicted them on all the counts. On the first and second counts, he sentenced each of the convicts to five years imprisonment.

    On counts three and four, the judge sentenced them to six years’ imprisonment, all of which he said would run concurrently.

    Prosecuting Counsel Ekene Iheanacho said the convicts committed the offence between December 2014 and September 2015 in Lagos.

    EFCC said the 12, with intent to defraud, “forged a document, to wit: Permit to Operate as an Oil Industry Service Company; Specialised Category; Permit No. DPR/OGISP/14/848714/N4146, and purported the permit to have been issued by the Department of Petroleum Resources in order to favour Phonic Marine Services.”

    The offence contravened sections 1(2)(c), 1(17)(b) and 3(6) of the Miscellaneous Offences Act Cap M17 Laws of the Federation of Nigeria, 2004.

    Six witnesses, including DPR, Navy and EFCC officials testified for the prosecution.

    Justice Idris held that the prosecution proved its case beyond reasonable doubt.

    He ordered the vessel, MV PSV DEBY, and the cargo on board be forfeited to the Federal Government.

  • DPR to shut down unlicensed petrol stations in Cross River 

    The Department of Petroleum Resources (DPR) in Cross River State has threatened to shut down filling stations operating in the state without registered operating licenses.

    The State Operations Controller, Bassey Nkanga, gave the warning at a meeting with officials of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) in Calabar.

    Nkanga said that the department reminded oil marketers in the state on October 31, 2017 on the need to renew their operating licences, adding that the deadline for registration had since elapsed on March 31, this year.

    He told the oil marketers that for any filling station that is shut down during the operation, the owner will have to pay a fine of N250, 000 before it will be unsealed for business.

    “Any moment from now, we will embark on an intensified operation to ensure that marketers who have not renewed their licences are not allowed to operate.

    “We have over 600 filling stations in Cross River and it is sad to know that only a little above 100 have their valid registered licences.

    “To prevent any embarrassment, IPMAN members should display their renewed licences in their filling stations’’, he said.

    The Operations Controller frowned at marketers who were in the habit of adjusting their fuel pump to short-change customers.

    He further warned that any filling station indulging in such act will face the wrath of the law.

    On the issue of kerosene explosion in the state, Nkanga said that the Department would partner with IPMAN in the state to reduce adulterated product to the barest minimum.

    “Don’t buy doubtful product from anybody apart from the licensed depot. Anyone who buys adulterated product and there is an explosion in any corner, that person will be held to face the necessary sanctions. DPR is well equipped in checking petrol stations across the state to ensure that the right thing is done, ’’ he said.

    IPMAN Chairman in the state, Mr Lawrence Agim, expressed sadness over incessant kerosene explosions in the state.

    Agim said that many families had been affected by such explosions.

    He lauded the state DPR for always holding regular meetings with them to appraise the situation of petroleum products in the state.

    Read Also: DPR to shut down unlicensed petrol stations in Cross River

  • DPR to shut down unlicensed petrol stations in Cross River

    The Department of Petroleum Resources ( DPR ) in Cross River, on Wednesday in Calabar, threatened to shut down filling stations in the state without registered operating licence.

    Mr Bassey Nkanga, the state DPR Operations Controller, gave this warning at a meeting with the officials of the Independent Petroleum Marketers Association of Nigeria ( IPMAN ) and Major Oil Marketers Association of Nigeria ( MOMAN ).

    Nkanga said that the department reminded oil marketers in the state on Oct. 31, 2017 on the need to renew their operating licences, adding that the dateline for registration had since elapsed on March 31.

    According to him, DPR will soon embark on ‘operation display your renewed licence in your filing station or be shut down’.

    He told the oil marketers that any filling station shut down during the operation, the owner would have to pay a fine of N250,000 before it could be reopened for business.

    “Any moment from now, we will embark on an intensified operation to ensure that marketers, who have not renewed their licences are not allowed to operate.

    “We have more than 600 filling stations in Cross River and it is sad to know that only a little above 100 have their valid registered licences.

    “To prevent any embarrassment, IPMAN members should display their renewed licences in their filling stations henceforth,’’ he said.

    The Operations Controller frowned at marketers, who were in the habit of adjusting their fuel pump to short-change customers.

    He further warned that any filling station under-dispensing petroleum product would face the wrath of the law.

    On the issue of kerosene explosion in the state, Nkanga said that the organisation would partner with IPMAN in the state to drastically reduce the influx of adulterated product.

    “Don’t buy doubtful product from anybody apart from the licensed depot; anyone, who buys adulterated product and there is an explosion in any corner, that person will face the necessary sanctions.

    “DRP is well equipped in checking petrol stations across the state to ensure that the right thing is done,’’ he said.

    Mr Lawrence Agim, the IPMAN Chairman in Cross River, expressed sadness on the incessant kerosene explosions in the state.

    Agim said that many families had been affected by such explosions.

    He lauded the state DPR for always holding regular meetings with them in order to appraise the situation of petroleum product in the state.

    NAN

  • BudgIT seeks transparency on N1.4tn spent on fuel subsidy

    A civic technology organization, BudgIT Nigeria, has asked the Federal Government and the Nigerian National Petroleum Corporation ( NNPC ) to open up on the N1.4 trillion spent on fuel subsidy between 2016 to 2017.

    The organization, a statement by its Communication Lead, Abiola Folabi, in Abuja on Wednesday, said it was in the interest of the publics for the NNPC and the government to explain how it arrived at the figure.

    It noted that the amount spent on fuel subsidy with those two years was more than what the country intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    The statement reads: “The Minister of State for Petroleum Resources, Ibe Kachikwu, recently disclosed a total of N1.4tn is being spent annually by the Nigerian National Petroleum Corporation ( NNPC ) as the subsidy for Premium Motor Spirit ( PMS ). This amount is significantly more than what Nigeria intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    “It is in the interest of the public that detailed information of the amount spent on fuel subsidies such as the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised should be made open and that these transactions are carried out transparently. 

    “There is a growing deficit in trust due to lack of due process in the NNPC; in March 2018, the corporation announced it spends N774m daily, roughly N23.99bn monthly as subsidy on 50 million litres of PMS consumed across the country. The public knows very little information on the beneficiaries of the subsidy payments and control process instituted to prevent theft of these funds.

    “BudgIT notes that the subsidy payments have been a contentious issue for the last 30 years. Analysts have called for its cancellation due to the lack of accountability and transparency in the administration of these funds. Also, there are arguments that the subsidy regime constituted double taxation on the populace who pay the actual market price for PMS due to lack of adequate monitoring by the Department of Petroleum Resources ( DPR ).

    “Evidence shows that amount spent on subsidising PMS is always riddled with corruption. We noted this is 2011 prior to the elections and we are worried this opacity is preceding the 2019 elections again. We are worried at the use of public resources without legislative appropriation or requisite transparency.

    “BudgIT understands that NNPC in recent times has initiated a couple of actions in trying to meet up with the global of standards of transparency and accountability including actions like publishing its monthly report on its financial and operational activities. Notwithstanding this, the lack of information on the subsidy regime, including the amount paid and the beneficiaries are locked away from public scrutiny.

    “Therefore, BudgIT urges the Federal Government, NNPC, DPR, National Assembly, the National Economic Council ( NEC ) and State governments to release details on the breakdown of the amount spent on subsidy, the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised.

    “For increased efficiency of the NNPC, there is an urgent need to plug the loophole created by the subsidy regime in the oil sector; we call on all Nigerians to demand appropriate systems to ensure that oil revenue is judiciously managed and utilised for the good of the people.”

  • DPR issues 13 licenses for modular refineries

    DPR issues 13 licenses for modular refineries

    …NNPC seeks board approval for refineries’ financiers this month

    …eyes 90 per cent capacity utilization 

    The Nigerian National Petroleum Corporation ( NNPC ) yesterday said that out of the  35 interests that were indicated in modular refineries, the Department of Petroleum Resources ( DPR ) had  issued licenses to 13.

    The Group Managing Director, Dr. Maikanti Baru, who made this disclosure said that he had already been invited to the ground breaking ceremony of the first one in Bayelsa in February. 

    He said “So far, about 35 interests for modular refineries have been declared and the Department of Petroleum Resources (DPR) has issued licenses to about 13 and I have been invited to the ground breaking ceremony of the first one in Bayelsa next month.”

    Baru also said that NNPC was targeting to forward the agreements for the selection of financials for the Port Harcourt Refining Company Limited (PHRC), Warri Refining and Petrochemical Company Limited (WRPC) and the Kaduna Refining and Petrochemical Company Limited to the corporation’s board during its meeting this month. 

    The corporation’s boss, according to the statement that the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued yesterday, said that Baru 

    disclosed this while briefing members of staff of the corporation on the fuel supply situation in the country during a town hall meeting in Abuja.

    He added that once NNPC secured the funding, it would commence the rehabilitation of the refineries.

    The target, said the statement, was to achieve 90 per cent capacity utilization before the end of next year.

    He said “We are pushing towards the final selection of our financiers and we expect that when that is done, we’ll get the agreements and present them to our board, meeting this month to secure their endorsement and once we have the funding, we would start the rehabilitation of the refineries towards a 90 per cent capacity utilization per stream day before the end of 2019.”

    NNPC said that the development was to uphold the promise to boosting petroleum products supply and distribution in the Country

    He described the procedure for electing the financiers as painstaking, noting, however, that it was necessary to enable a desired closure on the subject.

    Baru said the corporation was also encouraging new refining capacities to come on board, adding that there were two consortia that have indicated interest to co-locate refineries in Warri and Port Harcourt.

    He said NNPC would provide whatever utility services the companies might require, such as power, processed steam, water and land, stressing that the corporation has agreed in broad terms on areas of collaboration to fast track the development.

    “Am happy to inform you that progress has been made, up to the level of an acceptable detailed engineering design and we are in the process of mobilizing some of the refineries already identified for installation in Nigeria,” the GMD informed.

    He said the Kaduna State Government was also championing a proposal to co-locate another refinery close to the KRPC with the intent of sourcing Nigerien crude for its operations.

    Baru stated that other Greenfield refineries were to be brought on board soon in Kano and Kaduna, stressing while on board, they would source their crude from Niger Republic.

    He said the designs for the proposed refineries in Kano and Kaduna were ready, saying their construction would commence this year.

    The NNPC GMD revealed that the Ministry of Petroleum Resources and the corporation were collaborating to encourage the establishment of modular refineries in the Niger Delta area to encourage job creation.

    He noted that the Federal Government and the NNPC would continue to encourage private sector initiatives that would bring in competition in the petroleum products supply and distribution network so as to guarantee energy sufficiency for the country.

    Dr. Baru hinted that the corporation was also exploring other sources of energy that could substitute Premium Motor Spirit (PMS), otherwise known as petrol, in cars and motorcycles, saying the use of Compressed Natural Gas (CNG) to power vehicles in Benin City is the right step in the right direction.

    He said over 3,000 vehicles were now CNG-powered in the ancient city, making them, he stated, more secured, more efficient, given that gas is a cleaner source of energy.

    Encouraging the development of infrastructure such as roads, railways and waterways are other means by which NNPC plans to lessen the pressure on PMS consumption, the GMD said.

    He applauded the Federal Government for approving the Abuja-Kaduna-Kano pipeline project, stating that the gesture would go a long way in supporting the NNPC’s transmutation into an integrated energy company.

    He said the project when completed would create the needed back bone for the Abuja’s 1,350 megawatts power plant, Kaduna’s 900 megawatts power plant and Kano’s 1,350 megawatts power plant.

    The NNPC GMD said the operations of the corporation were being challenged by incessant vandalism of crude and products pipelines and kidnapping of staff, adding that the corporation would continue to engage members of the host communities to emplace growth and development of the local communities.