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Tag: DPR

  • Why there is adulterated fuel, by DPR

    The Department of Petroleum Resource (DPR) has explained the causes of adulteration of different petroleum products that are used as fuels.

    Speaking on the DPR Half Hour of the Radio Nigeria yesterday, and monitored by our reporter, the Assistant Director, Safety and Environment, in charge of laboratory services and quality control, Agbada Jerome, confirmed that there is a marginal possibility of having contaminated products in the country.

    He noted that products, such as kerosene, Premium Motor Spirit and Diesel, become adulterated when the tanks or tankers convey products they are not supposed to carry.

    He added that the residual content of the previous product could contaminate the new one, whenever there is a switch from one product to another.

    Jerome, however, insisted that the DPR has measures of ensuring that all imported petroleum products meet specifications.

    He said: “Most of the products we have in Nigeria today, 90 per cent of the products especially the white products (petrol and diesel) are imported. The Federal Government thorough the Nigerian National Petroleum Corporation (NNPC) imports 90 per cent of the products.

    “And if you have few cases of adulteration, they might be as a result of the use of tanks, tanker trucks that are not supposed to carry product they carry, or  the residual content of a product they had carried earlier and in the course of turning to another product, you find this kind of adulteration.

    “They manifest for those who use automotive vehicles. Sometimes you buy petrol, you find water inside, or you buy kerosene and it is adulterated and causes explosion. Those are the areas. But for the imported product, every effort is systematically taken to ensure that the product imported meets the Nigerian specification.”

    He said the DPR has officers at the seaports, stressing that almost all the vessels bearing petroleum products berth in Lagos. According to him, before an importer gets an approval to import, the provision of the import permit requires the importer to bring a sample of the product he intends to import into Nigeria.

    The sample of the product, said Jerome, is always accompanied with a certificate, which the DPR receives, analyses, and document the quality of the sample before the importer gets the go ahead to import the product.

     

     

  • NNPC, DPR must explain zero revenue remittance, says Auditor-General

    THE Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) have cases to answer over non-remittance of revenues to the Federation Account for several months, a new report  has shown.

    The Auditor-General of the Federation, Mr. Anthony Ayine, in his Annual Audit Report for 2016, said it was observed from the Central Bank of Nigeria (CBN) Components Statements that no collections were reported into the Federation Revenue Account by some revenue collecting agencies for certain months of the year. It was not clear from available records why these months recorded zero revenue collections and no explanation was provided for this.

    “The Accountant-General has been requested to obtain an explanation from the Group Managing Director of NNPC and Director, DPR for the non-collection of revenue during these relevant months and ensure that any revenue found due for these months is remitted to the Federation Account, and evidence forwarded for audit verification,” he said.

    Ayine added that another abuse of financial regulation of the 2016 budget was found in the illegal movement of monies from two dedicated funds to purposes other than for the mandates of the funds.

    He said the money were moved from the Stabilisation Account for states and the Federal Government by the Presidency for the establishment of an Army Barracks and another sum as investment in the Sovereign Wealth Fund.

    The two acts, according to him, aside not being tidy on framework of recovery, they are illegal as another case of lending out the Ecological Funds meant to strictly check ecological challenges without records to track recovery.

    “From available records, a total of N17,108,583,681.78 accrued from the Federation Account into 0.5 per cent Stabilisation Fund from January – December 2016.

    “During the examination of Central Bank statements for the year, we observed that the sum of N2,812,694,928.36 was released to the Nigerian Sovereign Investment Authority (NSIA), and N14,374,728,817.20 to the Federal Ministry of Defense from the Stabilisation Fund.

    “The Accountant-General has been requested to: Provide the authority for the Funds Invested, tenor of the investment, rate of interest payable, certificate for the funds invested and forward same for audit verification; Explain the utilisation of N14,374,728,817.20 for the purpose of funding a new division contrary to the purpose for which the Fund was created; Provide evidence of refund of this sum of N17,187,423,745.56 back to the Stabilisation Fund,” the report said.

  • DPR: Nigeria flared 324bscf of gas in 2017

    Although Nigeria’s gas flaring level is dropping, the quantity of gas flared last year was as high as 324 billion standard cubic feet (bscf), the Department of Petroleum Resources (DPR) has said.

    In a document sighted by The Nation in Lagos, about 888 million standard cubic feet of gas was flared daily last year. This is despite Nigeria’s efforts at increasing utilisation and commercialisation of flared over the years, which has brought Nigeria’s ranking as the world’s fifth highest gas flaring country to the current seventh position.

    The document further showed that the country has about 139 gas flare locations spread across the Niger Delta both in onshore and offshore oil fields. It further noted that flared gas constitutes about 11 per cent of the total gas produced.

    The flared gas, it stated, is enough to generate 2.5 gigawatts (Gw) of power or produce 50 million barrels of oil equivalent (boe) or produce 600,000 metric tonnes of liquefied petroleum gas (LPG) per year, produce 22 million tonnes of carbon dioxide (CO2), feed two-three liquefied natural gas (LNG) trains, generate 300,000 jobs, able to attract $3.5 billion investment into Nigeria and has $350 million carbon credit value.

    It is in view of these losses and environmental damage associated with flared gas that the Federal Government came up with the National Gas Flare Commercialisation Programme (NGFCP) to harness the flared gas and put it into productive use.  Under the NGFCP, the Federal Government will seek for qualified investors with financial, technical and technological expertise to harness the flared gas.

    The report said: “National Gas Flare Commercialisation Program (NGFCP) is key to Nigeria’s flares-out agenda with a target for zero routine gas flaring in Nigeria by 2020 as well as ensure positive impact to communities in the Niger Delta.

    “Federal Government exercises powers under Paragraph 35b of the First Schedule of the Petroleum Act 1969 to take gas at flare. Elimination of flared gas is a win for all parties across Nigeria. Therefore, NGFCP will promote collaboration between private, public, and social sectors. It is commercially viable investments with positive returns and will minimise government action to streamline implementation.”

  • 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.

    Tthis is contained in DPR’s report made available at a workshop organised 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 commercialisation.

    To this end, the report explained that government’s current Nigerian Gas Flare Commericlisation (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.

    “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.

  • FG raises N748bn from oil tax, royalty in 2017 – DPR

    The Department of Petroleum Resources ( DPR ) said the Federal Government earned N748 billion from taxes and royalties paid by oil and gas companies operating in Nigeria in 2017.

    This was contained in DPR’s report made available at a workshop organised for energy reporters in Lagos on Friday.

    The report said the revenue represented about 83 per cent of the agency’s target.

    The report also stated that the agency renewed close to 25 oil blocks, which had combined revenue of about 1billion dollars.

    According to the report, the agency granted approval for 16 new field development plans in 2017, which would increase the nation’s oil and gas production by 560,463 when completed.

    “We renewed 19 expired leases in 2017 to enhance upstream investment influx and accelerate oil and gas reserves and production growth.

    “We actively supported the implementation of a major gas commercialisation programme, which seeks to create a regulatory framework to facilitate gas flare monetisation to end gas flaring by 2020,” the report said.

    The agency said it issued ten licences and approval for development of gas production and processing facilities that culminated in the commencement of the operation of the plant.

    The agency said it revised and issued new DPR procedure guide for the determination of quantity and quality of petroleum products in Nigeria.

    The DPR said it initiated early lease renewal programme to accelerate revenue generation for government.

    It added that this was meant to fund national budget and incentivice upstream investment by ensuring security of tenure, long gestation and payback period for oil and gas investments.

    The agency further said it facilitated improved cooking gas penetration with local consumption growing from 390,000 metric tons to 470,000/metric tons with a potential to hit 500,000 metric tons milestone.

    “We increased national gas reserve base from 192.07trillion cubic feet to 197.74 trillion cubic feet representing 3.5 per cent increase over the preceding year.

    “We increased operator compliance on National Production Monitoring System (NPMS) by commencing the upgrade of the NPMS to real time data captured in 26 crude oil terminal locations.

    “This improved the efficiency in the administration of crude oil export and production accounting,” the report added.

  • DPR declares war on fake lubricants producers

    The Department of Petroleum Resources (DPR) is to arrest individuals and firms who illegally produce and sell lubricants, it was learnt at the weekend.

    The DPR has directed its Engineering and Standards Department officials to probe the issue.

    A source close to the DPR, who do not want his name in print, said the agency has directed its key officials to look for fake lubricants, carry out tests on such products, arrest and prosecute those behind their proliferation to serve as a deterrent to others and further assist in sanitising the sub-sector of the oil industry.

    DPR’s Acting Assistant Director Operation, Mr Iheji Nestor, said the department frowns on the issue of adulterated lubricants and that the regulator was putting in place measures to end it.

    In an interview in Lagos, Nestor said DPR was giving the issue the desired attention, because it affects the majority of users of automobiles and other machinery.

    He urged the public to cooperate with the Federal Government to ensure that the matter was nipped in the bud.

    He said retailers of lubricants and other operators, who fail to get permission from the DPR before engaging in the business would be affected.

    According to him, no arrest was made by the DPR when it raided shops of members of the Auto Spare Parts and Machinery Dealers Association (ASPAMDA) at the Lagos International Trade Fair Complex last week.

    Nestor said: ‘’There was no arrest; no confrontation with any suspected criminal when the officials of DPR raided ASPAMDA market. Spare parts dealers and others conducted themselves well during the exercise.”

    Also, the DPR’s Head, Engineering and Standards, Mrs Anita Tega Jennifer, said ASPAMDA officials behaved well during the raid.

    She said ASPMADA agreed that illegal production of lubricants has destroyed their customers’ vehicles.

  • Renewed vision at DPR

    Sir: Great Leaders the world over are known for their ability to face the truth head on, eloquence, vision, sincerity of purpose and above all selfless services to humanity and one’s land. These, one dares say, are the qualities imbued in  Mordecai Baba Danteni Ladan, the new Director of the Department of Petroleum Resources, DPR. The Kutigi-born petrochemist has opened new vistas since taking the mantle of leadership  at the apex petroleum regulatory agency. Petroleum stakeholders are advocating that Mr. Ladan deserves a greater responsibility in the Nigerian project based on his leadership style and acumen, especially the pivotal role played by the DPR Director in ending the last fuel scarcity.

    Not long ago, the United States Government Bureau of Energy Resources delegation paid a courtesy visit to the Department of Petroleum Resources. Led by Mr. Taylor Ruggles, the US State Department’s Regional Energy Counsellor for Africa, applauded and appreciated DPR’s regulatory role in the Nigerian oil and gas industry. They provided insights into areas in which the United States can assist Nigeria. Ladan in his response appreciated the offer for support by the US team while pledging to continue to improve Nigeria’s the regulatory environment for the mutual benefit of all.

    He was recently presented the “Outstanding Safety Merit Award (Oil & Gas)”, a pointer to DPR’s the increased surveillance and monitoring of filling stations, especially new ones under construction. In line with this new safety initiative, the DPR helmsman was at the scene of the recent Calabar tank farm fire. He was there to get a first hand experience of what transpired in order to be able to chart a new course going forward.

    DPR has recently engaged companies to provide data requirements for the Nigerian Gas Flare Commercialization Programme (NGFCP). This is a further testimony of the steady march of the DPR Director and his team. The objective of NGFCP is to provide a commercial approach to the elimination of routine gas flares by 2020 and drive positive social, environmental and economic impacts in the Niger Delta through the mobilizing of private sector capital towards the gas flare capture projects.

    The engagement is also focused on the need to ensure the gathering of relevant, accurate, credible and representative data for the programme. A joint team comprising of DPR and MPR staff is working on the implementation of the programme with the assistance of consultants provided by the USAID and World Bank. The project is also geared towards determining the negative impact of gas flaring to host communities.

    Mr. Ladan, working with a good team is poised to bring fresh impetus to bear on the DPR. The agency was established about 50 years ago to regulate the oil and gas industry in Nigeria.

     

    • Mohammed D. Eibo, a media and communications specialist wrote in from Abuja.

  • DPR seals 44 filling stations

    The Department of Petroleum Resources (DPR), Eket field office, says it has sealed off 44 filling stations for failing to renew their licences.

    The Operations Controller of DPR in Akwa Ibom State, Mr Tamunoiminabo Kingsley-Sundaye, yesterday told News Agency of Nigeria (NAN) in Eket that licences of marketers expired two years ago and they did not renew them. He said the stations were sealed off when the department carried out routine inspection  in Uyo and its environs two weeks ago.

    “The department has shut 44 stations for refusing to renew their licences.

    “If marketers do not renew licences, it means they are doing illegal business within the period their licences have expired.

    “Because there is no licence or approval that covers the marketer, whatever business he or she was doing at that period, they are liable under the law,” Kingsley-Sundaye said.

    He said some offenders had started submitting applications to renew their licences.

    The operations controller said stations, which failed to renew DPR’s licences, would pay N250,000 fine, in addition to their regular fees to the Federal Government.

  • DPR seals 10 gas outlets in Ogun

    The Department of Petroleum Resources (DPR) in Ogun has sealed no fewer than 10 illegal gas outlets in Mowe, Makogi and Magboro areas of the state over illegal operation.

    Operatives of DPR were on inspection of gas plants and outlets in the three communities of the state on Wednesday.

    The News Agency of Nigeria (NAN) reports that some of the outlets sealed were said to be too close to residential buildings, while others were sited under high tension wires.

    The DPR Operations Controller, Abeokuta Field Office, Mrs Muinat Bello-Zagi, while speaking with journalists, reiterated the commitment of the department in ensuring safety of lives and property.

    She noted that most of the gas outlets had no approval for operation.

    “We are doing this because they were sited without the necessary approval from our office.

    “One of the rules under the DPR stipulations is that gas outlets should not be sited under high tension wires but look at where we are now, you will see that we have lots of wires under it.

    Read Also: DPR to shut down unlicensed petrol stations

    “This shop where we are now does not have ventilation and this is not how to stack gas cylinders. So we have to seal up this place because this constitutes a hazard.

    “These people do not have prerequisite approvals from the appropriate quarters.

    “There should, at least, be a 50ft distance between a gas plant and a residential building, but this is not the case here,’’ Bello-Zagi said.

    She warned Liquefied Petroleum Gas (LPG) operators to desist from unsafe and hazardous acts, saying that the department would continue to seal and sanction erring operators.

    “At DPR, we are committed to the mandate that is given to us. We want everybody that goes into oil and gas installations to return home safe,’’ she said.

  • DPR to shut down unlicensed petrol stations

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

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

    He said the department reminded oil marketers on October 31, 2017 on the need to renew their licences, adding that the deadline for registration elapsed on March 31.

    Nkanga told oil marketers that for any filling station that is shut down during the operation, the owner will pay N250,000 fine before it will be unsealed.

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

    “We have over 600 filling stations in Cross River and it is sad that only about 100 have licences.

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

    The operations controller frowned at marketers fond of adjusting their fuel pump to short-change customers.

    He said any filling station indulging in such act would be prosecuted.

    On the issue of kerosene explosion, Nkanga said the department would partner IPMAN to reduce adulterated product.

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

    IPMAN Chairman Mr. Lawrence Agim decried incessant kerosene explosions.

    He said families had been affected.

    Agim hailed DPR for holding meetings with them to appraise the situation of petroleum products.