Tag: DPR

  • DPR undertakes research on refineries

    DPR undertakes research on refineries

    To encourage the growth of the downstream sector of the petroleum industry, the Department of Petroleum Resources (DPR) has carried out a research on the refineries to determine their actual production level and what are required for optimal output, its Director, Mordecai Ladan, has said.

    He said the development became necessary to ascertain their capacities vis-à-vis the volume of petroleum products that would adequately cater for the needs of consumers.

    Ladan, who spoke at a panel session during the just-concluded Oil Trading and Logistics (OTL) Expo in Lagos, said effective refineries were crucial to the growth of the downstream segment of the oil and gas industry, adding that DPR was working towards recording success in that regard.

    Represented by the Deputy Director in-charge of Engineering and Standards, Mr. Olumide Adeleke, the DPR chief, said the industry had been battling with problems, such as availability and transportation of petroleum products. He said the problems would be resolved soon.

    He said: “When you talk of availability of petroleum products, you need to talk about transportation of the products vis-à-vis the quantity or volume of the refined products. In DPR, we have done a considerable level of analysis or findings on the refineries required to meet the growing demands of domestic consumers.”

    Ladan said transporting crude oil to the existing refineries was a problem, which the industry was grappling with. He noted that pipelines through which crude oil and petroleum products are transported by stakeholders in the value chain are old.

    He said the obsolete pipelines need to be replaced  as part of efforts to encourage growth of the industry. He explained that the operating environment is not conducive enough for operators in the oil and gas sector, stressing that the development inhibits its growth.

    “The government has to come in, by providing an environment that is conducive for investment. There should be some form of regulations to stimulate growth in the industry. There is the need to develop a policy in the direction of safety of the environment. The environment should be secured with a view to discourage pipeline vandals,” he added.

    Also, the Managing Director, Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji, said investment in local refineries is key to the growth of the downstream sector, adding that private refineries are yet to come on stream, years after obtaining approval from the Department of Petroleum Resources.

    This, according to him, is due to lack of funds, arguing that banks are not ready to advance credit to them for reasons best known to them. He added that many of the operators have assets they can present as collaterals, but they do not have cash. “The problem of the companies approved by DPR to operate refineries is not collaterals, but cash. That accounts for the reason why local refineries have not taken off in the country,” Oyebanji said.

  • DPR supplies 294 trucks of PMS in Abuja – PRO

    DPR supplies 294 trucks of PMS in Abuja – PRO

    The Department of Petroleum Resources (DPR) said that 149 trucks loaded with petrol were supplied to Abuja and its environs on Tuesday.

    Mr. Mohammed Saidu, Head, Public Relations of DPR in a statement in Abuja, said that the supply brought the number of PMS supplied to Abuja between Monday and Tuesday to 294 trucks.

    NAN report quoted Saidu as saying the measure was to ease off fuel queues at filling stations in the city.

    He added that 145 trucks were earlier supplied on Monday.

    Giving the breakdown of the PMS supplied on Tuesday, he explained that 99 trucks were supplied to Abuja city with Forte oil receiving four trucks, while Conoil received 10.

    According to him, Mobil has eight trucks, as MRS gets seven, while Nipco and Oando have six and 11 trucks respectively.

    He stated that Total plc received 14 trucks, while NNPC retail was allocated 34 as IPMAN had five.

    He said that 50 trucks were dispersed to immediate and extended environment of the capital city.

    It will be recalled that the DPR Director, Mordecai Ladan, had earlier warned petroleum products marketers against engaging in sharp practices.

    He said any station caught would face sanctions, including N2 million fine and licence revocation.

  • DPR threatens errant marketers with N2m fine, revocation of licences

    DPR threatens errant marketers with N2m fine, revocation of licences

    The Department of Petroleum Resources (DPR) yesterday warned petroleum products marketers to desist from sharp practices or face sanctions, which will include the payment of N2 million fine or licence revocation.

    DPR Director, Mordecai Ladan, gave the warning against the backdrop of the purported resurgence of fuel scarcity in the country .

    He said that any petroleum products marketer who engages in the act of diversion, hoarding or under-dispensing will be prosecuted and treated like an economic saboteur.

    Speaking in Abuja, he warned petroleum products depots and filling stations owners to desist from products diversion, hoarding, pump manipulation as well as selling products above government-approved prices.

    “Marketers caught diverting or hoarding products for profiteering shall be sanctioned with a fine of N2 million in addition to having their operating licences revoked and prosecuted for national economic sabotage,” the department added.

    The DPR boss linked the resurgence of fuel queues in some states in the northern part of the country to the activities of unscrupulous marketers who are in the habit of diverting petroleum products to other sources apart from dispensing pumps at filling station at the appropriate price of N87 per litre.

  • Scarcity: DPR vows to sanction marketers

    Scarcity: DPR vows to sanction marketers

    The Department of Petroleum Resources (DPR) Friday warned petroleum products marketers against desist from sharp practices or face sanctions which include a N2 million fine and licence revocation.

    DPR Director, Mordecai Ladan, Ladan gave the warning while speaking against the backdrop of the purported resurgence of fuel scarcity in the country.

    He said that any petroleum products marketer who engages in the act of diversion, hoarding or under-dispensing will be prosecuted and treated like an economic saboteur.

    Speaking in Abuja, he warned petroleum products depots and filling stations owners to desist from products diversion, hoarding, pump manipulation as well as selling products above government approved prices.

    “Marketers caught diverting or hoarding products for profiteering shall be sanctioned with a fine of N2 million in addition to having their operating License revoked and prosecuted for national economic sabotage,” the Department added.

    The DPR boss linked the resurgence of fuel queues in some states in the northern part of the country to the nefarious activities of unscrupulous marketers who are in the habit of diversion of petroleum products to other sources apart from dispensing pumps at filling station at the appropriate price of N87 per litre.

  • DPR undertakes research on refineries

    To encourage the growth of the downstream sector of the petroleum industry, the Department of Petroleum Resources (DPR) has carried out a research on the refineries to determine their actual production level and what are needed for optimal output, its Director, Mordecai Ladan, has said.

    Ladan said the development became necessary to ascertain their capacities vis-à-vis the volume of petroleum products that would adequately cater for the needs of consumers.

    Ladan, who spoke at a panel session at the just-concluded Oil Trading and Logistics (OTL) Expo in Lagos, said effective refineries were crucial to the growth of the downstream segment of the oil and gas industry, adding that DPR was working towards recording success in that regard.

    Represented by the Deputy Director in-charge of Engineering and Standards, Mr. Olumide Adeleke, the DPR chief, said the industry had been battling with problems, such as availability and transportation of petroleum products. He said the problems would be resolved soon.

    He said: “When you talk of availability of petroleum products, you need to talk about transportation of the products vis-à-vis the quantity or volume of the refined products. In DPR, we have done a considerable level of analysis or findings on the refineries required to meet the growing demands of domestic consumers.”

    Ladan said transporting crude oil to the existing refineries was a problem, which the industry was grappling with. He noted that pipelines through which crude oil and petroleum products are transported by stakeholders in the value chain are old.

    He said the obsolete pipelines need to be replaced  as part of efforts to encourage growth of the industry. He explained that the operating environment is not conducive enough for operators in the oil and gas sector, stressing that the development inhibits its growth.

    “The government has to come in, by providing an environment that is conducive for investment. There should be some form of regulations to stimulate growth in the industry. There is the need to develop a policy in the direction of safety of the environment. The environment should be secured with a view to discourage pipeline vandals,” he added.

    Also, the Managing Director, Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji, said investment in local refineries is key to the growth of the downstream sector, adding that private refineries are yet to come on stream, years after obtaining approval from the Department of Petroleum Resources.

    This, according to him, is due to lack of funds, arguing that banks are not ready to advance credit to them for reasons best known to them. He added that many of the operators have assets they can present as collaterals, but they do not have cash. “The problem of the companies approved by DPR to operate refineries is not collaterals, but cash. That accounts for the reason why local refineries have not taken off in the country,” Oyebanji said.

  • DPR begins licensing of cooking gas retailers

    As part of measures to reduce frequent cases of cooking gas accidents, the Department of Petroleum Resources (DPR) has commenced the process of licensing cooking gas retailers.

    The move, according to the President of Liquefied Petroleum Gas Retailers (LPGAR), Association, Mr. Michael Umudu, was also aimed at ridding the sector of quacks and unlicensed professionals.

    Umudu stated this at a safety awareness campaign organised by the Lagos chapter of LPGAR in Lagos state. He said the high rate of cooking gas accidents across the country remained a cause for concern to the association, hence, the decision of the DPR.

    He said the safety awareness campaign was put together by the association to equip its members ahead of the licensing exercise by DPR while also building members’ capacity to be in tune with latest safety trends. The awareness programme, he said, was in line with Health Safety and Environment (HSE) practice in Nigeria’s oil and gas industry.

    The Chairman, Lagos chapter of LPGAR, Mr. David Okenwa said the training had become imperative in view of the growing demand for cooking gas as an alternative to kerosene and firewood. Okenwa said: “Many of our members don’t know much about the safety aspect of this business. That is why we engaged a consultant who will train them on the safety aspect because there are cases of related to gas hazards in the country.

    “As an association, we have deemed it fit to bring our members to the classroom to widen the scope of their knowledge base so that they will be more careful when carrying out their duty.”  He warned that any member found wanting in any fire incident related case after the training, will be dealt with according to the rules governing the association.

    The Managing Director of Crownbondis Global Resources Nigeria, an HSE consultant, Mr. Adebiyi Adewale, said gas retailers as the last link, must be adequately equipped with the knowledge of safety handling of gas in order to reduce the cases of gas accidents.

    Safety tips given to retailers during the training included how to transfer LPG from bigger cylinders to smaller ones, proper kits to use; checking expiring date of cylinders; how to check for leakages, and the consequences of not adhering to safety standards.

  • DPR warns marketers against scarcity, profiteering

    DPR warns marketers against scarcity, profiteering

    The Director, Department of Petroleum Resources (DPR), Mr. Mordecai Ladan, has warned petroleum products depots and owners of filling stations across the country against diversion of the products.

    Ladan, in a statement on Monday in Abuja, also warned oil marketers against hoarding, pump manipulation and selling the products above approved prices.

    The statement came against the backdrop of the purported resurgence of fuel scarcity in parts of the country.

    He warned that any marketer found to be under-dispensing or selling products above regulated prices would be suspended for a minimum of two months.

    “Any Marketer caught diverting or hoarding the products for profiteering shall be sanctioned with a fine of N2 million and will have his operating license revoked.

    “Such operator also risk prosecution for national economic sabotage,” he said.

    The director also stated that DPR was collaborating with Petroleum Equalisation Fund and Petroleum Products Pricing Regulatory Agency to ensure that defaulters were sanctioned accordingly.

    It stated that all DPR offices nationwide had been directed to step up monitoring activities and ensure full compliance by marketers.

  • DPR seals six filling stations in Sokoto

    DPR seals six filling stations in Sokoto

    The Department of Petroleum Resources (DPR) said it had sealed six independent marketers’ filling stations in Sokoto and its environs for various offences.

    The Zonal Operations Controller of the Department in charge of Sokoto and Kebbi states, Alhaji Mohammed Makera, disclosed this to newsmen in Sokoto on Tuesday shortly after a raid on some filling stations.

    Makera said that five of the filling stations were sealed for selling petrol above the official pump price of N 87 per litre and fined N 100,000 each.

    The remaining filling station was sealed for hoarding and fined N200, 000.

    ” All the sealed filling stations would not be reopened until they write an undertaking to sell petroleum products at the government-approved pump prices.’’

    Makera warned the marketers against contravening the government regulations, vowing to duly sanction any erring filling station in the two states.

    Recently the state has been experiencing shortage of petroleum products with many filling stations closed down leading to hike in the pump price by some station owners who still have the products.

  • DPR attributes kerosene scarcity to pipeline vandalism

    The Plateau office of the Department of Petroleum Resources (DPR) on Monday blamed the scarcity of Dual Purpose Kerosene (DPK) in the state on pipelines vandalism.

    Mr Jeremiah Manshat, Head Operations, DPR Fidel Office, Jos, told the News Agency of Nigeria (NAN) that the pipelines conveying the product to the state had been severely vandalised.

    He said that besides the refineries not working to their full capacity, vandalism of the pipelines had also made it impossible for the product to be pumped to the NNPC/PPMC Depot in the state.

    According to him, kerosene supply by trucks is not consistent as it takes an interval of two weeks.

    “Supply of DPK to Plateau has not been regular because the refineries have not been running at full capacity.

    “The scarcity is also traceable to vandalism but there is hope as illegal refineries are being discovered and destroyed by agents of the Federal Government,“ he said.

    Manshat advised users of Kerosene to switch to the use of cooking gas which was cleaner and more cost effective.

    He said that the more than 50 million Nigerian households currently using Kerosene to cook had put pressure on the product.

    Some consumers of kerosene in Jos had told NAN that it was difficult getting the product at the government approved price of N50 per litre.

    According to them, most of the dispensing points sell at between N110 and N115 per litre.

    Mr. Ignatius Uzoha, spotted buying kerosene at the Farin Gada market in Jos North Local Government, said he bought the commodity at N110 per litre.

    “The price of a litre of kerosene has remained in that range in most of the places that I visited before coming here to buy, anywhere it is a bit cheaper, you will witness a crowd,“ he said.

    Mrs Bridget Ohanele of ECWA Staff Quarters, Farin Gada said she bought her supply at N135 per litre and sold at N140 per litre.

    She said that she had previously sold a four- litre gallon for N800 but that with more availability she now sells the same measure for N650.

    Mrs. Regina Otoro, a fuel pump attendant at the NNPC filling station Secretariat Junction, said that some of the people who patronise the station for kerosene come from states other than Plateau.

    “Some of the people that you see here who come to buy kerosene are from Bauchi and Kaduna, they sleep here before they are attended to, “ she said.

  • DPR battles petroleum marketers in Bayelsa

    DPR battles petroleum marketers in Bayelsa

    It is a new regime for petroleum marketers in Bayelsa State. They must play by the rules and observe all the regulations governing the industry. The new culture of doing things properly without profiteering is being initiated by the Bayelsa State Office of the Department of Petroleum Resources (DPR).

    The department will no longer tolerate selling petroleum products especially Petrol Motor Spirit (PMS) above the Federal Government regulated prices. It will no longer allow marketers to engage in underhand practices such as under-dispensing, hoarding and other sharp practices aimed at shortchanging unsuspecting members of the public.

    Recently, the department led by its Operations Controller in the state, Mr. Bassey Nkanga, met with the marketers and read the Riot Act to them. Prior to the meeting, the marketers were having a field day selling PMS between N110 to N115 per litre with the exception of the NNPC mega station which was selling at the regulated pump price of N87 per litre.

    But Nkanga at the meeting with the Independent Petroleum Marketers of Nigeria (IPMAN) ordered the marketers to revert to the regulated price regime. The controller, also warned against under-dispensing of the product to consumers. He said under-dispensing is a form of surcharging the public and selling above the pump price through the back door.

    He told the marketers that defaulters would be thoroughly sanctioned adding that the punitive  measures would include fines, shutting down filling stations for between six and nine months  and outright sealing off.

    Nkanga also warned dealers who engage in adulteration and diversion of petroleum products to desist from such acts. He said the department would punish any marketer engaged in adulteration and diversion of products.

    He said: “We are ensuring that fuel is sold at the approved pump price of N87 and this is with immediate effect. Any defaulter in any form will be adequately sanctioned. Compliance is with immediate effect because penalties would range from fines, shutting down of stations for up to six and nine months.

    “If you divert, we will charge you N200 per litre of the fuel you diverted. If you under-dispense you will be sanctioned appropriately.”

    At the meeting, Spokesman for IPMAN in the state, Ere Peters, said members of the association would comply with the order to revert to the controlled price.

    But the Nkanga-led DPR did not stop at the meeting. The controller immediately constituted a team to go round the filling stations and ensure that marketers complied with the directive. The team stormed filling stations and discovered that some filling stations were still engaged in sharp practices. The team immediately sealed off stations engaged in under-dispensing and selling above the pump price. Some of the stations tried to prevent the DPR team from doing their job. They were punished.

    Among the filling stations sealed for dispensing fuel above the pump price through the “back door” and refusal to allow DPR officials access, were RSK Oil, GA Oil and Gas, Mobil and South-South Oil and Gas.

    For instance, at RSK Oil in Swali area of Yenagoa, the team discovered that the meters were fixed at N87 per litre, but when officials asked the attendants to dispense the product into 10-litre  equipment, they found that the meter had been badly readjusted to cheat consumers.

    The team noticed that product worth N674.25 was sold for N870.00, which meant that consumers were paying extra N195. 75 for every 10 litres of petrol bought at the station. The station was also indicted for not having adequate sand buckets and fire extinguishers.

    Similar discovery was made by the team at GA Oil and Gas on Ox Bow Lake Road. The station was collecting over N140 extra for every 10 liters sold to buyers through under-dispensing. When officials of the DPR returned to South-South Oil and Gas sealed off earlier, they discovered that the station had reverted to the regulated pump price of N87.

    Nkanga said: “We are trying to ensure that nobody sells petroleum above the stipulated price of ?87. The renewed effort is tend towards ensuring that the public also enjoy the price regime of petroleum. That’s why you are seeing us going out en mass and daily, stepping up as surveillance. The essence of it is to ensure that marketers don’t sub-charge the public any longer.

    “When we discover that somebody is grossly under-dispensing, we conclude that the person is selling above the pump price and we close the station and make the penalty to be likethe one selling above pump price. But if it is just normal under-dispensing, we will take it as an error and suspend you and ask you to adjust your pump.

    “Timicon was sealed for selling above N87 per litre. The other one that was suspended for under-dispensing was made to sign an undertaking that they will adjust the pump and not sell above the pump price. That was South-South Oil and Gas.

    “There was one that said he had no product and later claimed that he was trying to fix his generator that went bad. We will do monitoring for that one. We will start with them and ensure they sell what they have so that they don’t sell above pump price. The one that has been shut will remain sealed until he pays the penalty and sign an undertaking never to wilfully under-dispense again.

    “Now the government is putting its feet down that the depots must sell at the government regulated price no matter the condition. That is why everywhere in this country, this change is experienced.

    “Prior to this problem, I had a lot of issues and petitions with Bayelsans when I just got here. But because we knew what we were doing, we maintained our focus.”

    On the punishment for defaulters, he said: “Anybody that is found selling above pump price will pay a penalty of ?100,000. If we catch you three times, you’ll pay three times too. We may decide to punish you immediately or let you exhaust what you have under the ground first. We may decide to shut you down.

    “We are sustaining this monitoring. I have given my telephone number out. The staff we have re the people coming from other places. We tell the public that if they are not satisfied with the volume dispensed to you or the fuel was sold above the pump price, they should call the number and we will respond timely.”