The Nation Newspaper

Tag: Department of Petroleum Resources

  • DPR seals off filling station for diverting fuel

    THE Department of Petroleum Resources, DPR, has sealed up Gwalaida Petroleum Limited, located in Jibia, Katsina State, for product diversion to neighbouring Niger Republic.

    The Operation Controller at the DPR Katsina field office, Mohammed Sani, told newsmen in Jibia that he and his team stormed the station following the discovery that it was supplied with about 80,000 litres of fuel on 29 and 30th of July, 2019, but diverted it to other location.

    He said his team was shocked to find that the station had only 7,000 litres of fuel left in the tank, despite the fact that it was supplied that large amount of fuel ‘only two days earlier’.

    The DPR consequently sealed off the station, directing that the station manager or the owner of the station should report at the DPR field headquarters in Katsina to offer explanations over what could have happened to the 80,000 litres of fuel supplied to the station.

    Read Also: DPR seals five filling stations in Edo

    He said:  “This is a clear case of product diversion and we shall not tolerate it. Available records showed that this fuel station was supplied with 80,000 litres of fuel on the 29th and 30th of July, 2019, just two days ago. We dipped just now and discovered that the station has only 7,000 litres of fuel.

    ”The station manager or the station owner has explanation to offer on what could have happened to the fuel supplied those just two days ago.’

    “Also, look at the generating set being used to power the station; it falls short of what we have recommended. Look at the premises too, the station looks unused. That is why the entire sales clerk and the people buying fuel in jerry cans ran away on seeing our team.”

    The Nation observed during the visit that the fuel station only dispenses fuel to smugglers who are mainly Nigeriens that purchased fuel from the station.

    Findings further showed that the smugglers always come to the station on motorcycles with several 25-litre jerry cans which they thereafter load with fuel and smuggle to nearby Nigerien towns and villages where they sell off the product.

     

  • DPR bans sale of LPG in shops, homes

    The said it would clamp down on illicit retailers of Liquefied Petroleum Gas (LPG) popularly known as cooking gas in Rivers.

    DPR’s Port Harcourt Zone Operations’ Controller, Mr Bassey Nkanga, told the News Agency of Nigeria (NAN) of the planned clampdown on the sideline of LPG stakeholders’ meeting in Port Harcourt on Thursday.

    He said it was now illegal for retailers to transfer cooking gas from one cylinder bottle to another for sale to customers, an act commonly done by roadside LPG retailers.

    “Plans are ongoing to clamp down on any LPG retailer involved in decanting of cooking gas in shops and at homes.

    “We have set up a monitoring unit to arrest defaulters; seize their equipment and sanction them,” he said.

    Nkanga said that the  DPR was also engaging owners of filling stations and other stakeholders to stop the sale of LPG in cylinders to customers.

    He said that the Federal Government was planning to end the unwholesome practice in year 2020 due to attendant risks it posed to lives, property and the environment.

    “We are telling the filling stations that it is risky for people to carry cylinders to buy LPG from their facilities. So, government is planning to phase it out in year 2020.

    “We want filling stations to also have auto-gas add-on plant inside their facility, so that, those whose vehicle uses gas as fuel can drive in and buy rather than in cylinders,” he said.

    Nkanga explained that auto-gas filling stations are filling stations that do not sell petrol, kerosene and diesel – but only sell gas to vehicles.

    He said the Federal Government was passioante to ensure LPG utilisation as well as make available, quality and standard cylinders to Nigerians at affordable prices.

    According to him, DPR was providing the necessary support to stakeholders to ensure that LPG becomes accessible to Nigerians in line with government policies on LPG utilisation.

    The Zonal DPR boss warned plant operators and depot owners against the sale of LPG to unlicensed retailers and marketers.

    “We are giving two weeks (grace) for defaulters to come forward for regularisation to renew their licenses.

    “Also, we are calling on those whose license has expired or obtain licenses for those who do not previously have license and operating illegally, to come forward.

    “DPR has mandate from the Federal Government to ensure that stakeholders comply with safety guidelines as well as ensure that only licensed LPG operators are allowed to operate.

    “We have mandate to remove any form of delay in obtaining licences, in line with the Federal Government’s Ease of Doing Business directive,” Nkanga said.

    Speaking, Mr Sam Okafor, Zonal Chairman, National Association of Liquefied Petroleum Gas Marketers, commended the DPR for organising the meeting and pledged the union’s commitment to governments’ policies on LPG utilisation.

  • Gas flaring offenders risk N10 million fine for inaccurate data

    The Senate on Wednesday passed a bill for an Act to prohibit gas flaring in the country.

    One of the highlights of the bill is that any person who is acting on behalf of a licensee to supply inaccurate data to the Department of Petroleum Resources or to any other person duly empowered by a lawful authority, commits an offense and shall be liable upon conviction to a fine of N10 million or to imprisonment for a maximum term of six months or to both fine and imprisonment.

    Read Also: Tackling gas flaring through regulation

    The bill with 22 sections and includes sanction for inaccurate data collation and submission by the lessee, gas flaring fee, powers of the minister to make regulations, as well as repeal of the Associated  Gas Re-injection Act 2004.

    Among others, the bill seeks to ensure that natural gas shall not be flared or vented in any oil and gas production operation, block or field, onshore or onshore, or gas facility which shall commence operations after the commencement of the Act.

    The bill also seeks to ensure that no operator shall establish an oil and gas facility in Nigeria without obtaining authorisation from the minister for the design phase, the commissioning and the production phases.

    Curiously, the bill passed Wednesday was referred to the committee on Gas for further legislative action after it passed second reading in 2017.

    The committee thereafter invited industry stakeholders and the general public to a public hearing on Wednesday, May 31, 2017.

  • DPR seals 21 petrol stations over non-renewal of licence

    The Department of Petroleum Resources ( DPR ) said it had sealed 21 filling stations without licenses and non-renewal of licences in the month of March in the state.

    The Operations Controller of DPR in Akwa Ibom, Mr Tamunoiminabo Kingsley-Sundaye disclosed this to newsmen on Monday in Eket Local Government Area of Akwa Ibom.

    Kingsley-Sundaye however, said that among the 21filling stations sealed, eight of the stations who were operating without licenses had applied to renew their licenses in the state.

    “In our aggressive surveillance of filling stations in Akwa Ibom, 21 filling stations were sealed and their offences committed were mostly operating with expired licenses and without DPR’s licenses”.

    He added that four filling stations had also complied and their applications is under process.

    “We found out that four filling stations took over from the former management to a new company platform,” he said.

    The operations controller further said the department clamped down on four illegal Liquefied Petroleum Gas (LPG), refilling points in Uyo metropolis in the same month.

    “People just rent two rooms apartment and connect some pipes to 50kg cylinder and do constructions that are unknown to any engineering standard,” he said.

    Kingsley-Sundaye explained that the constructions was dangerous to the public and described such business as criminal offence.

    He said that the department in collaboration with sister agencies had dismantled three out of the four illegal LPG refilling points in the state.

    “One is still under sealed; we will dismantle it because such business is illegal construction. I don’t know where they got the idea from, we can’t even call it technology,” he lamented.

    He warned the operators or people who want to venture in such illegal business to desist from it or face the wrath of the law, saying that anyone caught would be taken to court to serve as deterrent to others.

    “We must make sure that we insist that the right thing should be done in this state, there is no safety device, no engineering design and no environmental safety in such business.

    “If we don’t act fast, it will be like the one we experienced in our neighbouring state. We will not allow it to degenerates to that level that is why we are clamping down on them.

    He called on the public to report such illegal business to security agencies and DPR for persecutions.

  • Stop sitting of gas plants in fuel stations, marketers urge DPR

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged Department of Petroleum Resources (DPR) to stop approving sitting of Liquefied Petroleum Gas (LPG) plants in fuel stations.

    Mr Nosakhare Ogieva-Okunbor, President of NALPGAM, told newsmen on Monday in Lagos that installing `ad-on skid gas plant’ in fuel stations was dangerous

    Ogieva-Okunbor urged DPR to discontinue the approval of selling or sitting a gas plant in fuel stations.

    He said that both LPG, known as cooking gas, and fuel were highly inflammable which needed to be on separate entities, adding that LPG cylinders were potentially and highly hazardous.

    The NALPGAM boss expressed worry over the increasing number of filling stations engaged in selling of gas within the stations not minding the hazardous implications.

    Ogieva-Okunbor said that the proliferation of fuel and gas-filling stations across the country had raised safety concerns, considering the less than satisfactory compliance with minimum environmental safety requirements for the operations of those facilities.

    According to him, some filling station owners are in the habit of installing ad-on gas machine later in their fuel stations, but which was not in the original building plans at the on-set.

    ”As matter of urgency, the DPR should commence dismantling of such gas plants in filling stations.

    “Most stations have neglected the rules and regulation, they are now citing gas plant in most stations across that states.

    “Today, we see some have cited plants close to eateries’ kitchen within their stations and this is dangerous while they are discharging gas and selling fuel.

    “We, the association, cannot open our eyes and watch for something drastic to happen before we raise alarm,” he said.

    Ogieva-Okunbor, however, called on both the Federal and State Governments to live up to their responsibilities by checkmating the fuel stations.

    He also said government should commence immediate demolition of such illegal gas plants within such stations.

    ”The earlier government and officials act fast, the better for Nigerians.

    “I also use this opportunity to thank the governments of Ogun and Ekiti for stopping such act and sanitising the industry in their respective states.

    “The states do not allow gas plant in filling station, I also urge other states to follow suit in banning gas in fuel stations.

    ”Plant operators must be conversant with all safety needs of LPG plant operations.

    “Gas plant should stand alone without attaching to filing station,” Ogieva-Okunbor said.

    He advised the agency to embark on an operational facility audit of unlicensed gas plants within filling stations to ensure strict compliance to statutory guidelines and standards.

    The president of cooking gas marketers said that most stations were trying to bastardise government’s free hands to promote and deepen cooking gas utilisation.

    ”But we under NALPGAM will not allow those who neglect the guidelines and principle to spoil the market,” he said.

    He said that Nigeria must move quickly in the direction of greater per capita consumption of gas, noting that many continued to depend on kerosene and firewood for their cooking despite the attendant negative implications.

    He said that cooking gas remained cleaner and cheaper and therefore should be the preferred option for fuel users and urged government to fast track its plans to make millions of homes use cooking gas within two years.

    According to him, there is hardly any doubt that the socio-economic benefits of switching from kerosene, firewood and charcoal to Liquefied Petroleum Gas, commonly known as cooking gas, are innumerable.

    “For instance, Nigeria has commercial reserves of natural gas. LPG is also known to be cheaper and cleaner than other domestic fuels,” he said. (NAN)

  • Nigeria can generate 3,000MW from flared gas – DPR

    Additional 3,000 megawatts of electricity can be generated from the current gas being flared in the country, a document from the Department of Petroleum Resources (DPR) has revealed.

    This is contained in DPR’s report made available at a workshop organized for energy journalists in Lagos on Friday.

    The report says the country currently flares about 11 per cent of its gas production, bringing Nigeria to seventh in the world.

    According to the report, if government is able to harness gas currently being flared at the 139 flare locations across the Niger Delta, it would boast of 3,000 MW of electricity in the nearest future.

    It explained that solution to gas flaring challenge is for government to construct pipelines, which will harness all gas currently being flared into one position for commercialization.

    To this end, the report explained that government’s current Nigerian Gas Flare Commercialization (NGFC) programme was geared towards finding markets for gas flared in the country.

    According to the report, we made a mistake with the programme in the past because we allocated flare sites to companies without both technical and financial capacity to harness them.

    Read Also: NNPC, DPR to explain zero collection of revenue – AuGF

    “However,  things have changed because DPR is now making sure those who got earlier allocations have everything it takes to take the gas into the market for sale,” it said.

    The agency in the report added that government will be responsible for finding market for gas currently being flared unlike in the past when it was left in the hands of producers.

    The report explained that another reason the programme has not been successful is because government left gas flaring commercialization in the hands of the producers, who do not have much interest in gas.

    The agency report says that gas flaring is a global challenge and it is categorised into two categories; routine flaring and non-routine flaring.

    The report explains routine gas flaring as the intentional burning of gas, while non-routine flaring is the need to burn gas due to unexpected emergencies.

    The Federal Government is planning to end routine gas flare by 2020.

    “Non-routine flaring cannot be stopped because there is always emergencies, which could require companies to free up some pressure during production.

    “Non-routine flaring doesn’t always happen,” the report said.

    The report further said Nigeria needs dedicated exploration gas, as all the gas discovered in the country so far, have been “accidental”.

    “ The country can generate double of the power produced today if we utilize the gas we flare, if Nigeria can harness its gas potential, we have the tendency to power Africa.

    NAN

  • ‘Reconstruction of Apapa-Oshodi expressway begins in two weeks’

    Lagos state governor, Mr. Akinwunmi Ambode has disclosed that the reconstruction of the dilapidated Apapa-Oshodi Expressway will commence in two weeks time lamenting that the road had been in a deplorable condition for long.

    Ambode disclosed this on Wednesday at the 2018 third quarterly Town Hall meeting which held at Iberekodo, Ibeju-Lekki, Lagos.

    The governor decried the perennial gridlock in Apapa in the last few weeks, noting that there had been appreciable improvement in traffic experience within the axis in the last one week.

    According to him the gridlock which has become a perenial issue, going and coming, is pathetic. “But the challenge is to give a permanent solution and in that reason, the President directed the Vice President to visit Lagos and provide permanent solution”.

    Ambode tasked the Federal Government to do everything within its powers to revive existing Ports in other States of the federation so as to bring about permanent solution to the perennial traffic congestion in Apapa axis of the State.

    According to him, beyond getting other ports up and running, the issue of tankers queuing up to lift petroleum products from Tank Farms in Apapa was also a major issue causing gridlock and damaging road infrastructure in the area, which according to him was inimical to the economic growth of not just the State, but Nigeria in general.

    “It would be very unfair to Lagosians if I don’t talk about issues relating to traffic management and integrated transport management most especially what we have witnessed in the last one week in Apapa, but again I would like to tell Lagosians that every stakeholder that is ‎relevant to resolving the Apapa crisis, we have gone to work and you can see that there is a major improvement.

    “We are grateful to the President for his intervention. We believe that every layer of government should collaborate to resolve the crisis. But we all must know that Apapa crisis is more than traffic issue.

    “That is where all states depend on for revenue through Customs because the revenue is shared at FAAC. If anything goes wrong in the port, whatever they get from the place could reduce. It is a national issue and must be addressed as same immediately.”

    The problem in Apapa, Ambode was that there were too many agencies and establishments disturbing the fundamentals within the axis. Adding that, “It is bad that we still use trucks to lift petroleum products from Apapa to other parts of the country. As it is now, other ports in Nigeria must begin to work immediately to decongest gridlock in Lagos.

    According to Ambode, the Apapa congestion was a national issue that required urgent attention, the Governor also noted that oil pipelines should be revived to discourage the trend of thousands of trucks coming from other parts of the country to lift petroleum products from Apapa.

    “Whatever has led to continual use of trucks to lift fuel, which is vandalism of pipeline should be addressed immediately. We believe that this will allow the road to become free. We don’t need to continuously use tax payers money to build road that were destroyed by tankers,” he said.

    Ambode called on the Minister of Petroleum and the Department of Petroleum Resources, DPR to work towards reviving the pipelines.

    The governor also said the State did not need tank farms anymore as it already has 68 in Apapa area alone. “Also, we don’t need tank farms within Lagos metropolis anymore. There are 68 tank farms in Apapa alone. That is a serious danger waiting to happen.

    “Beyond Apapa, they have approved tank farms in Ijegun axis. And that is where we have huge population. We need to distribute tank farms establishment to other parts of the state. This is what we believe should be done at this moment to free Lagos roads,” he said.

    Ambode, however, commended the Federal Government for shifting the date for repairs on the Third Mainland Bridge saying “we believe that at this time, the clearing of the alternative roads would have been completed.

    “We have a transport challenge in Lagos because it is only road transport that is effective in the state.”

    The governor also spoke on efforts of his administration to develop the economy of the State, saying his administration has continued to keep faith with its mandate to ensure that the future of Lagos remains on a sound pedestal.

    He said the Town Hall meeting, which had moved round the three senatorial districts in the State from its first edition held in October 6, 2015 has continued to provide the Government with first hand information on the needs of the people and how best to solve them.

    “Our promise from the very beginning was that we are going to give you a government of inclusion and it’s very clear that we are on track. When we look at our scorecard, which is to keep Lagos on a trajectory of growth and development, we are on that track.

    “We are happy to be here. We are everywhere meeting the needs of our people, asking them what the issues are and wanting to respond positively to those issues. Yes, we are not perfect, we would try our best but our people know that we are doing things that would create prosperity for their future,” Governor Ambode said.

    Besides, the Governor said that his administration was not oblivious of the fact that the Eastern and Western axis of the State were pivotal to the future prosperity of Lagos.

    Giving an insight on the next plan of action for the Ibeju Lekki axis, Governor Ambode also said the construction of the Epe Airport and reconstruction of the Coastal Road were very much on course, adding that the dualization of the Eleko Junction to the T-Junction would commence in January 2019, while the 27 network of roads in Ojokoro, Ayinke House, among others would be completed before the next quarter.

    The Governor, while thanking traditional rulers, community heads and residents of Ibeju Lekki for their unflinching support towards the advancement of the multibillion dollar projects ongoing in the Lekki Free Trade Zone assured that all issues relating to compensation would be resolved before the end of the week.

    Ambode also announced the commencement of recruitment of 1,000 teachers in the State, adding that more would be recruited as the need arises.

    He appealed to residents to be patient as the Government would continue to deliver more life changing projects to make life more comfortable for the people.

    A physically challenged resident and graduate of Computer Studies, Micheal Ogunyemi who said he had been jobless for five years could not hold back his joy as the Governor directed the Civil Service Commission to grant him immediate employment from August 1, while relevant agencies were directed to address various issues raised by residents.

    Participants who attended the town hall meeting which cuts across the different strata of residents in the state including the highly and lowly placed asked the governor to provide jobs for the unemployed, roads, clearing of refuse and the governor assured them.

    Among dignitaries present at the event were, the Deputy governor, Mrs. Idiat Adebule, deputy speaker, Lagos State House of Assembly who represented Speaker Mudashiru Obasa, Senator Gbenga Ashafa, Lagos APC chairman, Alhaji Babatunde Balogun, royal fathers etc.

  • NNPC eyes gas for 15,000mw by 2020

    …says Minna depot Fire brought under control

     

    The Nigerian National Petroleum Corporation (NNPC) has said that it has deigned the seven Critical Gas Development Projects (7CGDP) to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.

    A statement of the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a state that made available to journalists in Abuja, said that a major stride in the attainment of national energy sufficiency was achieved in Lagos with the commencement of technical framing workshop and subsequent project signing ceremony of the (7CGDP) to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.

    In a presentation at the event, Group Managing Director of the Corporation, Dr. Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.

    He said NNPC had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.

    Read Also: NNPC subsidiary generates N72.7b from gas

    He listed some of the responsibilities of the project consultants to include: working with NNPC and partners to revalidate and carry out relevant technical studies to proposed development plans, provide financial advisory services for project funding/financing strategy and appraise the fiscal requirements for viability and advice on interventions that may be required.

    The PMT are also expected to study and recommend fast-track tendering process for field development and project implementation, establish realistic cost benchmark(s) for identified projects and develop project schedules and cost estimates for the respective projects among others

    Baru explained that in addition to the above, the NNPC Project Management groups would strengthen oversight function on the seven (7) critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices.

    The NNPC GMD said the Corporation was working closely with other agencies like the Department of Petroleum Resources (DPR) and the Nigerian Content Monitoring and Development Board (NCMDB), among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to these projects were supported for renewals by relevant agency.

    Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company (SPDC) which is handling three out of the seven projects, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.

    Highpoint of the event was the formal execution of agreement for the development of the 6.4 trillion cubic feet unitized gas fields (Samabri-Bisseni, Akri-Oguta, Ubie-Oshi fields by NNPC/Shell and NAOC JV.

    The 7CGDP include: development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7TCF NPDC’s OML 26, 30 &42.

    Others include: development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5 TCF OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West (OML 35& 62).

    Meanwhile the NNPC on Monday provided insight into the fire incident which ravaged parts of the PPMC Depot in Minna, Niger State.

    Speaking to journalists on the sidelines of the 7CGDP launch in Lagos, the GMD said the fire incident which started late Saturday night after the collapse of the floating roof of one of the Petrol storage tanks had since been brought under control.

    He thanked members of the neighbouring communities, the security agencies and emergency services for their support and prompt response.

  • DPR seals 33 filling stations in Ogun for over-pricing

    DPR seals 33 filling stations in Ogun for over-pricing

    The Operations Director, Department of Petroleum Resources (DPR), Ogun Field Office, Mrs Muinat Bello-Zagi, on Thursday revealed that the agency has sealed 33 out of the 444 filling stations visited in the state in the last seven weeks.

    Mrs Bello – Zagi added that the affected stations were sealed following the discovery that the owners were over – pricing, under – dispensing and hoarding Premium Motor Spirit (PMS).

    The DPR Operations Director made this known while briefing journalists after the agency had met with representatives of major and independent petroleum marketers in the state.

    She said two of those sealed stations would be fined and barred from taking supply of PMS at the Depot for the time being for removing the seal placed on their stations.

    According to her, the DPR had continued to carry out surveillance and monitoring of filling stations across the state, with 75 per cent of them dispensing petrol to motorists.

    “In Ogun State, the DPR has been on surveillance and monitoring of the filling stations across the state.

    Read Also: DPR sanctions seven stations

    ” We have been to Ogun Waterside, Mowe-Ibafo, Ipokia, Ado Odo- Ota, Abeokuta metropolis, Sagamu, Ijebu Ode among others.

    “Between January and February 22, we have visited 444 filling stations across the state and we discovered 245 out of this number were dispensing the Premium Motor Spirit popularly as petrol to motorists.

    “This shows about 75 per cent of the filling stations were dispensing products to motorists.

    “However, also out of this number, 33 filling stations were sealed for either over-pricing, under- dispensing and hoarding. Two of the of them were located on Lagos-Ibadan Expressway. These two filling stations, were sealed but their owners removed our seal, without recourse to us.

    “We have asked the depots not to supply them products, they will definely pay fines for removing our seal,” he said.

    She also said the DPR had started online monitoring of petroleum retail outlets in the state.

    Bello-Zagi appealed to both major and independent marketers not to hoard petroleum products and warned the public against panic buying.