Tag: diesel

  • Navy arrests two vessels with suspected stolen diesel

    A Merchant Vessel (MV), Shirley and Motor Tanker (MT) Vine allegedly laden with 745 metric tonnes of stolen Automotive Gas Oil (AGO) – diesel – have been arrested by the Nigerian Navy (NN).

    The vessels, which were arrested with their 14 crew members by operatives of the NNS BEECROFT, were handed over to the Department of Petroleum Resources (DPR) and the Economic and Financial Crimes Commission (EFCC).

    MT Vine with six crew members was laden with products, which flashpoint was higher than the specification of the regulatory agencies. MV Shirley with eight crew carried low quality products.

    At the handover, the Flag Officer Commanding  (FOC) Western Naval Command (WNC) Rear Admiral Sylvanus Abba said MT Vine was arrested on June 9, at about 1:30am, on its arrival at SB Bakare Jetty, Kirikiri,  to discharge the about 600MT of AGO it was carrying.

    He added that the flash point of the product was higher than that specified by DPR and Standard Organisation of Nigeria (SON).

    He said the colour of the product was off DPR standard as indicated by lab analysis, adding that when the vessel’s haulage was checked, it was discovered that MT Vine was carrying about 600MT of AGO against the 400MT quantity authorised.

    For MV Shirley, the FOC said it was arrested at about 6:10pm on April 19, at Lagos anchorage for allegedly dealing in petroleum products illegally.

    “The vessel was laden with about 145MT of AGO without valid documents for carrying petroleum products in Nigerian waters. Samples of the products were taken for laboratory test to ascertain its quality and the result indicated that the sample did not meet DPR/SON specifications, which indicated that it might have been refined illegally.

    Abbah reiterated that the navy would not tolerate any fraudulent activities.

    He said: “The command has zero tolerance for every form of criminality in its area of responsibility. Defaulters are advised to desist from such acts or face the wrath of the law.”

  • ‘NNPC intervention crashes diesel price by 42%’

    ‘NNPC intervention crashes diesel price by 42%’

    The Nigerian National Petroleum Corporation (NNPC) has said it has crashed the price of Automotive Gas Oil (AGO), also known as Diesel, to about 42% nationwide.

    Its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said this in a statement yesterday.

    Ughamadu said the price cut was a huge downslide over the last six months, following key strategic interventions by the NNPC.

    In the first quarter of this year, retail prices of AGO, which is one of the deregulated products, shot to an all-time high of N300/litre in major demand centres across the country.

    He, however, said following strategic intervention efforts by the NNPC towards sustained improvement in the supply of the diesel, the product’s retail prices as at the end of May 2017 ranged from N175 to N200 across the country (a significant price drop of about 42%). Ex-depot prices also dropped to between N135 and N155, Ughamadu said.

    Shedding more light on the achievement, the NNPC spokesperson said some of the corporation’s strategic interventions include improving the supply of AGO and remodeling of the product distribution to address sufficiency issues across the country.

    “Since January this year, we have worked very hard with relevant stakeholders to improve distribution from refinery depots, by implementing a robust loading programme,” he affirmed.

    The corporation was also able to resuscitate its critical pipelines and depots in places such as Atlas Cove-Mosimi, Port-Harcourt Refinery-Aba and Kaduna Refinery-Kano.

    “Efforts are also ongoing to revamp and commission other critical pipelines across the country,” he said.

    Another key intervention that has enhanced supply and distribution of diesel, the NNPC spokesperson noted, was the corporation’s robust engagement with critical downstream stakeholders, where salient issues were raised and duly addressed.

    These stakeholders include: Major Oil Marketers Association of Nigeria (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) as well as Independent Petroleum Marketers.

    He added that as a result of consistent positive engagement with the Central Bank, NNPC extended the expansion of Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate diesel and aviation fuel.

  • Hike in diesel price takes a hit at El-Rufai buses

    Love him or loathe him, Malam Nasir el-Rufai brought some relief to FCT residents before he left office as minister of the territory. El-Rufai, now governor of Kaduna State, introduced what is fondly called the El-Rufai buses. They are cheap, neat and air-conditioned.

    People who could not cope with costly petrol preferred them to their personal vehicles. But there is a problem: the buses are fast disappearing. Why? Diesel used in running them is also becoming too costly.

    The buses were commissioned in 2005 to provide subsidised services to residents of the FCT. Managed by a Transport company called Abuja Urban Mass Transport Company (AUMTCO) and the buses are co-owned by some private investors.

    Interestingly, the high capacity buses owned by government are clearly marked while those of the private investors are not so marked, except a few of them belonging to Trade Unions and a few other agencies.

    These buses are usually stationed in different parts of the FCT to ferry passengers to their destination from such places like Gwagwalada, Zuba, Kubwa, Berger, Nyanya, Madalla among others.

    People who live as far as Suleja, Niger State or Nyanya in Nasarawa State but work in the FCT prefer commuting with these buses because of the belief that buses are cheaper and more comfortable.

    Some residents who use these buses told Abuja Review that they choose them because they are highly subsidised and cost them between N50 and N100 to get to their destination depending on the distance while the cabs would take them for at least N200 or N250.

    Asiwaju Williams, a resident of Madalla who patronized the buses told Abuja Review that he prefers using the buses every morning.

    He said, “I come all the way from Madalla in Niger State to Wuse every morning using the ‘El-Rufai’ bus. I prefer these buses because they are usually air-conditioned.

    “There are strict regulations about hawking goods and services, preaching and overcrowding compared to the private owned buses. Their drivers are well-dressed and they operate in a co-ordinated manner.”

    On the other hand, Awodele Oladele, a National Youth Service Corps member resident in Abaji on the border between the FCT and Kogi State, said the buses are usually a big relief considering the high cost of living in the FCT.

    However, the buses have begun to gradually disappear from the road and residents are not finding it funny. Sometimes, the buses are parked at the bus stop without the drivers, while the people wait endlessly.

    A car dealer who identified himself as Okon Chukwuemeka is at a loss as to why several of the buses are parked, leaving the people stranded. Investigation however revealed that this may not be unconnected with the increase in the cost of running them.

    The Head of Marketing and Communications of AUMTCO, Mr. Tunde Akintola attributed this to the increase in the price of diesel and the unchanged bus fare despite the hike.

    “The rise in price of diesel has been an issue of serious concern to the organisation. When we were buying diesel for N 125, we were charging N50 and N100 for the bus fare and now that it is N270 we are still charging at the same price and practically, we are running at a loss,” he said.

    Akintola added that the only option the company had to keep their services running is to cut down on the buses used to convey passengers. He however suggested that the bus fare should be increased in a manner that would be fair to the people and the company.

    Some residents who spoke with the reporter believe that the FCT administration can address the situation by introducing some low profile vehicles to ply some of the routes that the buses cannot ply.

    Damilola Comfort advised that they could delegate low capacity buses within the federal capital such that they could take over the routes ‘Keke-Napep and Okada’ are found and also maintain the buses used for far distance commutation of residents.

    In so doing, it would generate more profit for the organization and provide better safety for Abuja inhabitants by reducing road deaths when ‘Keke-Napep and Okada’ are off the road.

    Also, Ibrahim Wahab said, “The Transport Company should look for a way to have negotiation or make arrangements with oil companies to reduce the price of diesel even as the company re- employs the parked buses found at their location.”

     

  • NNPC vows to investigate diversion of diesel in Abuja mega station

    NNPC vows to investigate diversion of diesel in Abuja mega station

    The Nigeria National Petroleum Corporation (NNPC) at the weekend vowed to investigate alleged diversion of diesel to premium dealers and black marketers at its mega retail outlet on Olusegun Obasanjo Way, Abuja.

    The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, promised that “we will despatch our team of investigators to go there right now.”

    The Nation on Thursday got a hint that that the station was selling diesel to dealers, who were billed to sell in the black market while “unconnected” customers waited endlessly without being served.

    Some customers were waiting with jerrycans while mini-trucks were about to load the product.

    An attendant who simply identified himself as Ferdinand O. said: “Come and look at the six drums, they are empty, except the one that belongs to Chevron.”

    For two days, the station manager was not available.

    It was however gathered that “there was kerosene and diesel supply shortage following the reluctance of marketers to import the product.”

    Sources said the station was conserving its products due to the shortage of diesel and kerosene.

    Ughamadu said the refineries were still producing and releasing their products to the depots.

    He said: “As we speak, the refineries are on and releasing their products. It depends on what you mean by dealers. NNPC has a subsidiary known as NNPC Retail. As we sell to independent and major marketers, we  also sell to them. They get kerosene and diesel from us as well as the majors. So, if you know the particular station, we will investigate to find out why they are not selling.”

    On being told it was the NNPC station on Olusegun Obasanjo Way in Abuja, Ughamadu promised that “we will despatch our team of investigators to go there right now.”

    The National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Dankingari, explained that marketers were not importing kerosene and diesel because the products were not deregulated.

    Marketers would not want to import the product to compete with NNPC, which has access to forex and sells at a lower price.

    According to him, NNPC sells diesel for between N160 and N165 while other stations sell for between N265 to N270.

    Dankingari said : “They are selling above the NNPC regulated rate, which they give marketers. So that is the reason why you see some marketers who buy at that rate cannot sell at their filling station at the government regulated rate.

    “But the DPR should take note of those depots which are selling at the government’s rate because if they continue selling it at that rate to the marketers, the marketers have no no option than to increase the money above the government price.”

     

  • Why kerosene, diesel are scarce, by DAPPMA

    Why kerosene, diesel are scarce, by DAPPMA

    Why  is kerosene and diesel scarce?They are scarce because of the high exchange rate, the Depot and Petroleum Products Marketers Association (DAPPMA) has said.

    In an interview, DAPPMA Executive Secretary  Mr. Olufemi Adewole said: ‘’There is shortage of foreign exchange (forex)for marketers to import petroleum products, including kerosene hence the product is scarce and expensive. The winter period also contributed to the challenge because prices of petroleum products usually rise during this period.

    “There is higher demand for petroleum products outside the country during winter. It is well known in the international oil industry that during winter there is more concentration on some particular products and it is usually very expensive to import such products.”

    He urged the Federal Government to provide adequate foreign exchange to marketers to enable them import and increase supply.

    Independent Petroleum Marketers of Nigeria (IPMAN) National Operations Controller Mr. Mike Osatuyi said IPMAN members also did n’t have access to forex to import kerosene and diesel.

    He said his colleagues relied  on the Nigeria National Petroleum Corporation (NNPC) for their supplies.

    He called on the Central Bank of Nigeria (CBN) to take a second look at its forex policy, urging the government to fully deregulate petroleum products.

    “The issue is that it is not available, and secondly, most of our refineries are not loading. Even if they load, they will be selling it at exorbitant rates to marketers. Members cannot import because of forex and besides, kerosene is not fully deregulated. Unlike diesel, kerosene and petrol are not fully deregulated,” he added.

    A litre of kerosene sells for as much as N300 per litre across the country.

    NNPC Group General Manager, Public Affairs  Mr. Ndu Ughamadu said the corporation had begun production of kerosene and diesel at Kaduna, Port Harcourt and Warri refineries.

    He said the refineries would balance the disequilibrium in demand and supply of the products being experienced in some parts of the country.

    Warri Refining and Petrochemical Company (WRPC) Managing Director Mr. Solomon Ladenegan said the plant had been doing well since its Crude Distillation Unit (CDU) was revved up few days ago.

    He said the Warri Refinery refines two million litres of kerosene and three million litres of diesel daily. ‘’We pump the products to Pipelines and Products Marketing Company (PPMC) and they have started loading out the products to depots,’’ he said.

    Port Harcourt Refining Company (PHRC) Managing Director Dr Bafred Enjugu said refinery produces three million litres of kerosene and diesel daily.

  • NNPC resumes kerosene, diesel refining

    NNPC resumes kerosene, diesel refining

    The three refineries of the Nigerian National Petroleum Corporation (NNPC) in Kaduna, Port Harcourt and Warri have resumed production of Automotive Gas Oil (AGO) or diesel and Dual Purpose Kerosene (DPK) or  kerosene.

    The resumption of refining of the products is expected to balance the disequilibrium in demand and supply being experienced across the country.

    Speaking on the production level of the Warri refinery, the Managing Director of the Warri Refining and Petrochemical Company (WRPC), Engr. Solomon Ladenegan, said the plant had been doing well since the Crude Distillation Unit (CDU) was revved up on Saturday.

    Ladenegan said the refinery resumed production last Saturday at about 10:22hrs, with the plant’s CDU functioning.

    He said the plant now refines 2 million litres of kerosene and 3 million litres of diesel daily.

    A statement endorsed by the General Manager, Group Public Affair Division, Ndu Ughamadu, quoted him as saying: ”This morning, we have pumped the products to PPMC and they have started loading. They are going to load up to 1 million litres of DPK and AGO. The products are there in the tank and we are doing everything to get them to the market.”

    The Managing Director, Port Harcourt Refining Company (PHRC), Dr Bafred Enjugu, said the plant was producing 3 million litres of AGO daily, in addition to millions of DPK.

    Enjugu said the operators were thrilled that the  old Port Harcourt Refinery where production of AGO was being carried out by themselves without foreign expertise deployment.

  • NNPC to improve quality of diesel 

    NNPC to improve quality of diesel 

    The Nigerian National Petroleum Corporation (NNPC) has commenced work on a scheme to improve the quality of diesel in the Nigerian market for efficient and optimal performance of diesel-powered engines.

    This was disclosed by the Manager, Collaborative Research of the Research & Development Division, Engr. David Akpan, in a presentation made to the Group Managing Director of NNPC, Dr. Maikanti Baru, during an official tour of some R&D facilities in Port Harcourt.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu  revealed this in a statement Thursday.

    Giving details of the research, Engr. Akpan said the R&D Division was working in collaboration with Petronas, Petrobras, Statoil and Saudi Aramco to achieve significant reduction in sulphur and carbon content as well as other impurities in diesel.

    He stated that the project also involves non-conventional upgrading of other refined products including crude oil.

    Speaking at the event, Dr. Baru described research and development as a vital tool for advancement in any organization desirous of re-inventing itself in the ever competitive market place.

    The GMD called on the Management and Staff of the Division to support him in the renewed vision to transform R&D.

    “Organisations that grow commit a significant part of their budget to research and development and we are going to do that; if what it takes for you to grow is to make you a limited liability company, we are going to do that,’’ the GMD stated.

    He, however, charged the Management and Staff of the Division to brace up for the challenges that come with operating as a limited liability company.

    “It means that your staff cost will not be borne by NNPC Corporate Headquarters but by you, and you have to make profit and support the Corporate Headquarters. We are looking forward to that day and we expect a lot from you,” he said.

    Engr. Akpan explained that the mission of the Division was to carry out research, develop technology and provide services to the oil and gas industry. He added that its operation was propelled by the vision to be a world-class petroleum research centre driven by innovation and quality.

    He said the Division has capabilities to handle sundry industry projects across the upstream, midstream and downstream sub-sectors

    In the upstream, he stated that the Division has proven capacity to handle seismic studies, geochemical and geophysical studies, drilling/mud studies among others.

    The R&D Division, he also noted, has developed capacity in handling midstream issues like environmental and air pollution monitoring, environment compliance monitoring, environmental impact assessment studies etc.

    In the downstream sub-sectors, R&D has posted good results in testing crude oil assay, fresh/waste water evaluation and petroleum product quality testing among others.

     

  • Man diverting diesel dies in tank

    A man died during the weekend in Abuja while diverting diesel from a tank when he slipped and drowned inside the tank.

    The deceased, who was a security guard at the Globacom Mast in Jahi, behind Living Faith Church, drowned while trying to steal diesel stored to power the generator for the mast.

    Director General, Federal Capital Territory (FCT) Emergency Management Agency (FEMA), Alhaji Abbas Idriss, reiterated the need for citizens to be law abiding and desist from acts inimical to safety of their lives and the society.

    Public Relations Officer (PRO), Josie Mudashiru, made the revelation in a press statement.

    “Director General FEMA, Alhaji Abbas Idriss, said this in his office during a de-briefing session with members of staff. The D.G said the loss of life by a private security personnel posted to guard the Globalcom Mast in Jahi, behind Living Faith Church, could have been saved if the man had chosen to be law-abiding.

    “The yet to be identified guard was said to have been diverting diesel from a tank when he accidentally fell in and got drowned…

    “The Search and Rescue Unit of FEMA got the distress call by 8:15am Wednesday, October 19 2016 from the 112 Control Room. The corpse was evacuated and deposited at Asokoro General Hospital.”

  • Six held for stealing National Assembly diesel

    Six people were Tuesday arrested for stealing large quantities of diesel belonging to the National Assembly.

    The incident took place at the National Assembly complex, Abuja in the early hours of Tuesday.

    A source said that six of culprits were caught in the act while one escaped.

    Two of the culprits were said to be National Assembly staff while the other four came from outside the complex.

    The National Assembly staff were said to have coordinated the operation and invited their collaborator from outside the National Assembly said to be more experience in stealing diesel and other petroleum products.

    Those involved were said to have arrived the National Assembly complex around 4.20am and immediately proceded to the area where diesel is stored.

    They were said to have arrived the complex in a Gulf car led by the National Assembly staff.

    They were reported to have scooped over 11 25liter jerry cans of diesel before they were caught.

    The police is said to have launched full investigation into the incident to ascertain whether there were other National Assembly staff collaborators.

    The source said that it is believed that those caught might be behind the mysterious disappearance of diesel from the storage tanks.

  • Judge releases firm’s diesel, kerosene

    The Federal High Court in Lagos has granted leave to an oil marketing company, Chukelad Nigeria Limited, to evacuate its 2,804,735 litres of Automotive Gas Oil (AGO) and 1,927,727 litres of Dual Purpose Kerosene (DPK) stored in a tank farm belonging to an oil firm, Zone 4 Energy Limited.

    The tank farm, which is under a receiver appointed by FirstBank of Nigeria Limited, is within the Calabar Free Trade Zone (CFTZ).

    Justice Abudulazeez Anka held that the products should be evacuated with immediate effect. He ruled on an application by Zone 4 Energy’s lawyer, Mr Lanre Ogunlesi (SAN).

    Another judge of the court, Justice Saliu Saidu, had on July 1, empowered the bank’s receiver to take over the entire assets of Zone 4 Energy at the CFTZ over an alleged debt owed the bank.

    But, in a supporting affidavit, Zone 4 Energy said it had a prior agreement with Chukelad Nigeria to use the tank farm to store its AGO and DPK, before Justice Saidu made the order.

    Zone 4 Energy said Chukelad Nigeria paid it N7 million to use the tank farm, adding that the bank’s receiver took over the assets while Chukelad Nigeria was loading its trucks at the depot.

    The applicant said it had “substantial quantity” of Chukelad Nigeria’s products in its storage when the bank’s receiver took over the tank farm.

    “In view of the fact that this matter in court might take time to resolve, it would be in the interest of justice to grant this application.

    “The products are susceptible to market forces and if the prices drop, it would be a colossal loss to Chukelad Nigeria and we would be held liable,” Zone 4 Energy prayed.

    The receiver, Mr Emmanuel Oyebanji, who is also First Bank’s lawyer, had opposed the application, contending that both the tank farm and the products stored in it were among the “charged assets” under receivership.

    Justice Abdulazeez Anka held that the application had merit and was properly before the court.

    “The application succeeds and the objection is accordingly overruled. The products lying in the tank farm is accordingly ordered to be evacuated in the presence of the registrar monitoring same with immediate effect,” the judge held.