The Nation Newspaper

Tag: diesel

  • Army seizes boats, N3.4m diesel in Rivers

    The Operation Pulo Shield (OPS) in Port Harcourt, the Rivers State capital, have seized 2.3 million litres of allegedly stolen diesel worth N3.45 million from an illegal bunker.

    The petroleum product was siphoned from the Nigerian National Petroleum Corporation (NNPC) pipelines.

    Maj.-Gen. Alani Okunlola, the Commander of Operations of OPS, formerly known as the Joint Task Force (JTF), addressed reporters yesterday at Tamunotonye Ama in Ogu-Bolo Local Government Area of Rivers State.

    Okunlola said two suspected oil thieves were arrested at the bunker, while several equipment used by the operators of the illegal bunker were seized during the raid.

    He said: “On September 23, troops of Sector 2 of OPS of 2 Brigade, Nigerian Army in Port Harcourt stormed Tamunotonye-Ama community and discovered a large bunkering site, which operated illegally.

    “The troops, during the raid, discovered and seized eight large metal badges laden with stolen Automated Gas Oil (AGO), commonly referred to as diesel; another 23 empty barges were also seized.

    “Two of the eight metal badges have estimated capacity of seven tanker trucks each.”

    The OPS commander told reporters that other items found at the site included 44 large plastic tanks, 22 illegal pumping dumps, 18 pumping machines, three speedboats, two outboard engines and a lengthy hose.

    He added that 19 storage tanks filled with stolen crude oil were also seized from the site during the operation.

    Okunlola said: “Two suspects in our custody will be interrogated, while the barges have been towed to Ogoloma Jetty in Okirika Local Government Area of Rivers State.”

    The commander said investigation into the activities of the operators of the illegal bunkers had begun.

    He said the investigation would show how they operated in the area without being detected.

    Okunlola noted that under his command, the OPS had increased the frequency of raids in a bid to end oil theft and illegal bunkering in the Niger Delta.

    The site is located near the Onne Sea Port and the Onne Oil and Gas Free Zone where several multinational oil and gas companies are operating.

  • Manufacturers spend over N4b on diesel yearly, says MAN

    Over N4billion is spent yearly by manufacturers under to procure Automotive Gas Oil (AGO), the President of Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs Udemba, has said.

    Udemba told The Nation that the manufacturing sector spends the huge cash on diesel  monthly, adding that the figure translates to an average of over N4billion when multiply by 12 months of the year.

    He said manufacturers invest on power devices such as UPS and inverters to keep some equipment working and further prevent loss of valuable data because power supply in the country is unreliable. He added that their members spend a chunk of that money on fuel to power their generators to stay in business.

    He said low metering coverage and the consequent dependence on estimated billing from distribution companies (DISCOs) has resulted in rise of costs in the power sector.

    He explained that low electricity generation is affecting power distributed to consumers, stressing that  when  electricity generation improves, supply would also improve.

    Udemba said: “The country generates less than 5,000 megawatts (Mw) of electricity for its over 160million population.  In a big country like Nigeria, we still struggle, fumble and wobble on 4000 megawatts and below. This does not and cannot go anywhere in meeting the energy requirements of the teeming populace. The sector would be able to employ more people if reasonable electricity supply is made available to them. But there is nothing like that for now.”

    According to him, the sector is yet to guarantee power supply, two years after private investors bought the unbundled assets of the Power Holding Company of Nigeria (PHCN),  adding  that the operation of the  power firms is fraught with problems including technical and commercial, among others.

    Penultimate week, Vice President Yemi Osinbajo held a meeting with Dr Sam Amadi,  chairman, National Electricity Regulatory Commission (NERC), representatives of power Ministry, MAN and other stakeholders on the need to develop a  framework for the creation of micro grid for industrial clusters across the country.

    At the meeting, a special committee with nomination from the Commission will be coordinated by MAN since its members will be the major beneficiaries of a stable power supply.

    This happened, amid announcement by the Transmission Company of Nigeria (TCN) of increase in generation from 4,517 megawatts to 4,545 megawatts in two weeks.

  • IPMAN seeks govt’s intervention in kerosene, diesel supply

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to intervene in the downstream sector of the petroleum industry to ensure adequate supply of Dual Purpose Kerosene (DPK) popularly called kerosene and Automotive Gas Oil (AGO) commonly called diesel, to avert scarcity.

    IPMAN’s Chairman, Mosimi depot, Comrade Dele Tajudeen, made the request during a meeting of the association at Mosimi, Sagamu, Ogun State.

    He told reporters that while premium motor spirit (PMS) – petrol – is available at the depot and is distributed to the members’ filling stations, kerosene and diesel don’t get to the depots.

    He said the absence of storage facilities for kerosene at Atlas Cove makes it impossible for the product to be transported to Mosimi depot for distribution.

    Tajudeen also said the association was not opposed to deregulation of petroleum product but before then, the Petroleum Industry Bill (PIB) must be passed to ensure a  level playing ground for  stakeholders.

    Tajudeen, while reacting to the allegation of misappropriated N500 million by IPMAN, said the allegation was baseless. “The association did not make N500million in turnover and there is no way it could have been misappropriated. Although they did not have legal standing to have access to our account, where did they get such figures? We will sue them for libel if they cannot substantiate their claims with evidence.”

    A faction of IPMAN led by Adeleke Dada alleged that the Dele Tajudeen-led faction misappropriated N500 million belonging to the IPMAN.

    Dada said: “They misappropriated about N500million during their tenure because  they made about N10 million per month from all of the unnecessary levies, which were illegal collections, and which were not accounted for.

    “During the period of fuel scarcity, the government did not increase the price of petroleum, it was their administration that increased the price in their own capacity to the rate of N110 per litre, which is very wrong, the government didn’t tell them to increase it.

    “We had enough of the product in Mosimi depot, so, whenever there is scarcity, they used that opportunity to hike fuel price so as to enrich their pockets, which was not good on the masses. We are going to call on the Economic Financial Crimes Commission (EFCC) to probe them because they embezzled the unnecessary levies that were paid to them.”

    However, Tajudeen said the meeting was to sensitise the members on the forthcoming election scheduled to hold on October 15, having been elected into office in 2010.

    He said all parties are invited to participate in the election to move the association forward.

  • FAAN consumes 132,000 litres of diesel monthly

    FAAN consumes 132,000 litres of diesel monthly

    The Federal Airports Authority of Nigeria (FAAN) says it consumes four trucks of diesel, each containing 33,000 litres, in ensuring regular power supply at the Port Harcourt International Airport (PHIA) every month.

    FAAN’s General Manager, Southsouth and Southeast, Mrs Ebele Okoye, in a statement yesterday, said FAAN was worried over the high cost of running generating sets to provide electricity at the airport.

    According to Okoye, the unstable public power supply at the airport has made it to depend on generating plants, which gulped a lot of diesel.

    Okoye said the funds being used to get diesel could have been used  in other areas.

    She said the spending on diesel was putting pressure on the finances of the organisation and urged the Ministry of Power to come to their aid in ensuring regular public power supply was at the airport.

    The General Manager urged airline operators and passengers to bear with the authority on the ongoing work at the airport, assuring them that they would benefit from it at the end. 

    Okoye also said the management of the airport was embarking on home delivery of cargo in conjunction with an independent company.

    She said a new toll gate would soon be erected as part of the airport’s means of generating revenue, noting that it would be done in conjunction with the Rivers State Government.

    Okoye said funding had been the greatest challenge in the day to day running of the airport.

  • ‘We spent N10million a month on diesel’

    ‘We spent N10million a month on diesel’

    Seventy-two years on, Airport Hotel Ikeja, Lagos, which started with a five-room facility, has grown into a hotel of first choice for many. Last month, the hotel embarked on the renovation and upgrading of its facilities to meet the growing needs of its clients, Assistant Editor (Arts) OZOLUA UHAKHEME reports.

    The Managing Director Airport Hotel, Ikeja Lagos, Mr. James Kayode Adenigba has decried the increasing costs of providing comfortable and affordable services in the nation’s hospitality industry citing huge bills from purchase of diesel for power generation as one of the biggest challenges. He said apart from other overhead costs, the provision of power is enough to make many hotel operators go bankrupt. He described the power problem as one calamity that deserves top priority attention by the authorities.

    Adenigba who spoke with tourism journalists in Lagos during facility tour at the weekend disclosed that Airport Hotel sometime spent about 10million naira in a month on provision of light to power its facilities. This, he said, forced the hotel last year to acquire a 33kv PHCN transformer to boost its power supply apart from the four generators bought by the hotel. “It is unfortunate that in Nigeria, issues such as electricity and water supply are serious factors hindering effective service delivery in the industry. Notwithstanding these challenges, our charges and rates are pocket friendly,” he said.

    The Managing Director described the on-going renovation in the hotel as a deliberate effort at repositioning the hotel to meet the needs of today’s clients noting that as the oldest hotel in the country, its infrastructures needed to be upgraded constantly. He noted that though the hotel is old, but that it is still very relevant in the industry. “It has not been an easy challenge in terms of infrastructure upgrading as the oldest hotel in the country. And we have been trying to update the facilities on ground in order for us to compete with newer hotels. Also, this will ensure turnaround of the entire facilities. Since we came on board the management has renovated the Adebayo Extension that has 60 rooms as well as the main Adebayo Block. The Independence Block is 50 percent completed,” he added.

    On growing green to preserve the environment, Mr. Adenigba said the hotel is looking forward to partnering some investors on the green environment project.

    The hotel renovation is however not limited to rooms and existing infrastructures as a new Gym/Fitness Centre equipped with modern facilities and backed by a medical clinic was recently opened in the hotel for customers. The centre is managed by a seasoned sports and fitness instructor, Mr., Daniel Ukpe.

    The hotel’s Controller Sales and Marketing Mr. Ayodele Adebayo stressed that the decision to undertake the renovation of the hotel is a function of market research aimed at improving service delivery. He noted that at the completion of the renovation, ‘we should be able to shore up our revenue base while operating at maximum level. For now, we are operating for the medium segment, but after completion, we will catch the top segment. Again, the location advantage of the hotel is there.’

    Mr. Adebayo identified age advantage, experience and ability of the hotel to carve niche for itself in African dishes as parts of the hotel’s unique selling points. “Also very unique to us is the provision of security of life and property,” he added.

  • EFCC arraigns eight for ‘fraud, illegal storage of diesel’

    The Economic and Financial Crimes Commission (EFCC) yesterday arraigned eight people in Lagos for offences relating to fraud and storage of automotive gas oil, (popularly called diesel) without licence.

    The trio of Kachy Kennedy Okoye, Usong Ibor Matthew and Igberaese Lawry were arraigned before Justice Christopher Balogun of the Lagos High Court, Igbosere on a 13-count charge of conspiracy and obtaining money under false pretence.

    The other five were arraigned before Justice John Tsoho of the Federal High Court, Ikoyi, Lagos, on a four-count charge of conspiracy and storage of 185 metric tons of automotive gas oil without licence.

    Okoye, Matthew and Lawry were alleged to have conspired to defraud Lady Lora Marire of N66.5 million on the pretext of helping to register her as a contractor with the Nigerian Ports Authority (NPA) and offering her a contract to build 100 units of duplex at Lekki, Lagos.

    EFCC said four others involved in the scam are at large. It gave their names as Tony Elijah, John Williams, Chude Ngini and Alkali Hammed.

    They pleaded not guilty to the charge. The court ordered that Okoye be remanded in the EFCC custody because of his health condition and directed that Matthew and Lawry be held in Ikoyi prison pending the consideration of their bail application. The cases have been adjourned till November 13.

    As regard the arraignment at the Federal High Court, only two of the five accused were present. They are Captain Odeghe Andrew and Ebinum Alex. Jelili Lateef, Sunday Buluku and Monday Osasuwa were said to be at large.

    They reportedly conspired to store aboard the vessel, MT. Floris, 185 metric tons of automotive gas oil without licence under Section 1 of the Petroleum Act, Cap. P9 Laws of the Federation of Nigeria, 2004 and thereby committed an offence punishable under Section 6 of the Petroleum Act, Cap. P9, Laws of the Federation of Nigeria, 2004. They were said to have committed the offence on May 31 in Lagos.

    They pleaded not guilty to the charge and were granted bail by Justice Tsoho at N2 million and one surety each. Further hearing has been fixed for January 22.