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Tag: DPR

  • DPR to shut unregistered petrol stations in Akwa Ibom

    The Eket Office of Department of Petroleum Resources (DPR) on Wednesday threatened to shut filling stations operating in the state without registering with DPR from August 31.

    Dr Joseph Frank-Briggs, its Operations Controller,  gave the warning at a meeting with officials of the Independent Petroleum Marketers of Nigeria (IPMAN) in Eket, Akwa Ibom.

    He said the office had noticed that the operators of some filling stations whose licence had expired had failed to renew them.

    “Any filling station that does not renew its licence by the end of August will pay the sum of N250, 000 before the operator is allowed to operate or be shut down.

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

    “We want to stress that it is an offence not to display your licence in your filling stations,” Frank-Briggs said.

    Frank-Briggs frowned at marketers who were in the habit of adjusting their fuel pump to short change customers.

    He said any filling station under-dispensing petroleum products would face the wrath of the law.

    On the issue of kerosene explosion, he said that the department would partner IPMAN members to reduce adulterated petroleum products to the barest minimum.

    “DPR and IPMAN need to work together and see how the issue of kerosene explosion will be nib in the bud.

    “We cannot allow unscrupulous elements in the society to contaminate kerosene that will affect the lives of the people,” he said.

    Mr Ubong Isong, IPMAN Chairman of IPMAN in Akwa Ibom, expressed sadness over incessant kerosene explosions in the state.

    Isong said many families had been affected by such explosions.

    “From our investigation, no marketer had been involved in the adulteration of kerosene. The department should extend its investigations to surface tank operators in the state,” he said.

  • DPR allays fears of adulterated petroleum products in Bayelsa

    DPR allays fears of adulterated petroleum products in Bayelsa

    The Department of Petroleum Resources (DPR) yesterday allayed fears over the purported circulation of adulterated and illegally refined petroleum products in Bayelsa.

    Operations Controller of DPR in Bayelsa Mr Asuquo Antai told News Agency of Nigeria (NAN) in Yenagoa that members of the public who patronise licensed fuel stations have nothing to fear.

    He said the DPR had increased its surveillance following recent reports of adulterated products in Bayelsa and conducted random checks, which indicated that products in circulation were of good quality.

    “We got reports that the Bayelsa Government Task Force on Petroleum was after filling stations purportedly dispensing adulterated products in Bayelsa but we investigated and found the claim to be untrue.

    “I informed the chairman of the task force that DPR was an effective regulator with the technical expertise to detect and check the distribution of substandard products.

    “It should be noted that petroleum is exclusively under the control of the Federal Government, even though it is understandable that the state government should be concerned about the interest of its people.

    “We are not aware of their terms of reference and from the way they even go about collecting samples in Jerry cans, it is obvious that they lack the technical know how because you do not collect samples for test in plastic but in bottle,’’ Antai said.

    He further explained that the activities of illegal refineries were worrisome and constantly a challenge to the DPR.

    The DPR official said that the agency maintains surveillance on licensed stations to ensure that illegally refined products do not find its way into such outlets.

    According to him, DPR does not regulate unlicensed stations.

    He said that the DPR was collaborating with security agencies, whose responsibility it was to raid and close down such illegal fuel outlets.

    “Unlicensed outlets are out of our scope and what happens is that these illegally refined products find their ways into unlicensed distribution channels, especially those ones at the water side run by area boys.

    “We have alerted the relevant security agencies who in turn promised to raid such spots on a regular basis and because we cannot get there to take samples for test we cannot guarantee the quality of products dispensed there.

    “So we advise motorists for their own safety to source products from authorised distribution channels under the watch of DPR,’’ Antai said.

    On the issue of profiteering and sharp practices, the controller noted that the DPR shut down four fuel outlets in Bayelsa within the past one week.

     

  • Experts back proposed restructuring of NNPC, DPR, PPPRA

    Experts back proposed restructuring of NNPC, DPR, PPPRA

    EXPERTS have endorsed the restructuring of the Nigerian National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA) as enshrined in the Petroleum Industry Governance Bill (PIGB).

    It will bring about a profit-driven, efficient and virile petroleum industry, if carried out, they said.

    The stakeholders include former Country Presidents, International Association of Energy Economist (IAEE) Professors Wunmi Iledare and Adeola Akinnisiju.

    They said Senate’s pronouncement  on repositioning the three agencies to achieve growth is a good omen for the industry, adding that the decision will unlock the potentials of the industry after several failed attempts.

    They said the passage of the PIGB and the subsequent restructuring of NNPC, DPR and PPPRA would help in bringing Direct Foreign Investments (DFIs) into the sector and reduce liquidity gaps.

    Iledare said NNPC, DPR and PPPRA are not scrapped by the Senate as Nigerians are being made to believe, noting that the agencies are being restructured for better performance. He said the  Senate had implemented parts of the industry reforms by restructuring the three agencies, stressing that operators have waited patiently for the reforms.

    He said:“The conclusion in some quarters that the Senate has scrapped or outlawed NNPC, DPR, and PPPRA was wrong. The three parastatals are still much in existence even though they are going to operate under new managements and names. What Senate did was to make the agencies stronger and result-oriented.

    “Due to the restructuring, a National Oil Company (NOC) will emerge to replace the Nigerian National Petroleum Corporation (NNPC). With NOC, there will be an effective regulatory control in the oil and gas sector. Just as we have the Central Bank of Nigeria (CBN) regulating and supervising the banking industry. The petroleum sector will be regulated by the National Oil Company.”

    He said transformation of the industry is long overdue, noting that operators have been expecting the sector to provide growth for the economy.

    Iledare, formerly of the University of Port Harcourt, Rivers State, said the restructuring would help in improving regulatory and commercial activities in the industry as NOC would be saddled with facilitating commercial activities in the sector.

    Akinnisiju said under the new arrangement, NOC would be in a better position to drive growth by bringing in more local and foreign investors into the sector, adding that following the restructuring of the sector, NOC and other agencies would generate revenue for the government and other stakeholders in the value chain.

    “I foresee a situation whereby NOC would be operating as a commercial entity like Shell and other multinational oil companies. It would make money and provide dividends to its shareholders and the economy would be better for it,”he said, urging the Federal Government to provide a conducive environment for operators to facilitate the much- needed growth in the oil and gas industry.

  • Stakeholders back proposed restructuring of NNPC, DPR, PPPRA

    STAKEHOLDERS have endorsed restructuring of the Nigerian National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA) as enshrined in the Petroleum Industry Governance Bill (PIGB).

    It will bring about a profit-driven, efficient and virile petroleum industry if it is carried out, they said.

    The stakeholders include former Country Presidents, International Association of Energy Economist (IAEE) Professors Wunmi Iledare and Adeola Akinnisiju.

    They said Senate’s pronouncement  on repositioning the three agencies to achieve growth is a good omen for the industry, adding that the decision will unlock the potentials of the industry after several failed attempts.

    They said the passage of the PIGB and the subsequent restructuring of NNPC, DPR and PPPRA will help in bringing Direct Foreign Investments (DFIs) into the sector and reduce liquidity gaps.

    Iledare said NNPC, DPR and PPPRA are not scrapped by the Senate as Nigerians are being made to believe, noting that the agencies are being restructured for better performance. He said the  Senate has implemented parts of the industry reforms by restructuring the three agencies, stressing that operators have waited patiently for the reforms.

    He said:“The conclusion in some quarters that the Senate has scrapped or outlawed NNPC, DPR, and PPPRA was wrong. The three parastatals are still much in existence even though they are going to operate under new managements and names. What Senate did was to make the agencies stronger and result-oriented.

    “Due to the restructuring, a National Oil Company (NOC) will emerge to replace the activities of the Nigerian National Petroleum Corporation (NNPC). With NOC on ground, there will be an effective regulatory control in the oil and gas sector. Just as we have the Central Bank of Nigeria (CBN) regulating and supervising activities in the banking industry. The petroleum sector will be regulated by the National Oil Company.”

    He said transformation of the industry is long overdue, noting that operators have been expecting the sector to provide growth for the economy.

    Iledare, who was formerly with the University of Port Harcourt, Rivers State, said the restructuring will help in improving regulatory and commercial activities in the industry as NOC will be saddled with the responsibilities of facilitating commercial activities in the sector.

    Akinnisiju said under the new arrangement, NOC will be in a better position to drive growth by bringing in more local and foreign investors into the sector, adding that following the restructuring of the sector, NOC and other agencies would generate revenue for the government and other stakeholders in the value chain.

    “I foresee a situation whereby NOC would be operating as a commercial entity like Shell and other multinational oil companies. It would make money and provide dividends to its shareholders and the economy would be better for it,”he said, urging the Federal Government to provide conducive environment for operators in order to facilitate the much needed growth in the nation’s oil and gas industry.

  • Domestic gas supply increases to 40%, says DPR

    Domestic gas supply increases to 40%, says DPR

    •Agency fines defaulters  

    Domestic Gas Supply Obligation (DSO), an initiative of the Federal Government to meet national demand, is achieving the desired result with the level of compliance by oil producing firms rising to 40 per cent this year, The Nation has learnt.

    Before now, the level of compliance by oil firms was very low. According to the Department of Petroleum Resources (DPR), between 2008-2013, DSO compliance was about 23 per cent, by 2016 it rose to 38.18 per cent and currently stands at 40 per cent.

    DPR’s Deputy Director/Head, Upstream, Mrs. Pat Maseli, stated this at the 10th annual sub-Saharan Africa Oil and Gas conference holding in Houston, Texas.

    She said DSO was assigned annually to all gas producers, such as Shell Petroleum Development Company (SPDC), Agip, Total, Chevron, Mobil Producing Nigeria Unlimited (MPNU), Addax, Nigerian Petroleum Development Company (NPDC), and Pan Ocean Oil Company Limited (POOCL) pursuant to the National Domestic Gas Supply Obligation & Pricing Regulations 2008 to determine the gas demand or the national gas requirement annually and evaluate utilisation along the gas value chain, among others.

    Maseli noted that the Federal Government intervenes in several ways to ensure that national gas requirements are adequately met. Some of the interventions include the estabegy to facilitate orderly gas sector development, ensures integrated approach to maximise potential benefits and ensure sustained implementation, which is critical for actualisation

    Others are through legislative reforms, Domestic Gas Supply Obligation Regulation (DGSO) 2008, establishment of National Gas Policy (NGP) and Production Sharing Contract (PSC) gas terms, provision of guidelines for third party access to gas-at-flare-points, commercial framework reforms, transitional gas pricing to power and other sectors, world class contractual frameworks for supply, transmission and network access, World Bank revenue securitisation, gas aggregator to manage DGSO and price aggregation, infrastructure blueprint, provision of network of critical pipelines and three Central Processing Facilities (CPF), Network Code Implementation, Petroleum Industry Gas Bill (PIGB) and sanctions, which include imposition of penalties such  as $3.5 per 1000 standard cubic feet (scf) shortfall, among others.

    Apart from boosting domestic gas supply to meet national demand, Federal Government’s interventions were to ensure that as much as possible is utilised to reduce flaring.

    According to a report on global gas flaring in 2015 by the World Bank led Global Gas Flaring Reduction (GGFR), Nigeria ranks seventh in the world having flared about 8billion cubic meters of gas in 2015.

    The GGFR report stated that within the period under review, Russia topped the global flaring with 20billion cubic meters of flared gas followed by Iraq with 16bilion cubic meters, Iran 12billion, United States 11billion, Venezuela and Algeria nine billion cubic meters each.

  • No plans to increase petrol price – NNPC

    No plans to increase petrol price – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has reiterated that it has no plans to increase the pump price of petrol.

    NNPC made the denial in a statement by Mr Ndu ughamadu, its Group General Manager, Group Public Affairs Division.

    The statement explained that the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre would not lead to an increase in the pump price.

    ”There is no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

    ”The rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same templat.”

    Bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country.

    Lightering expenses involve charges for moving products to depot area from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

    ”What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders.

    ”So what the Petroleum Products Pricing Regulatory Agency, PPPRA, did was to take N1 from lightering expenses and add same to the bridging allowance.

    ”That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ it said.

    On the product supply, thr statement said as at Wednesday, the country had 1.3 billion litres of petrol which translated to an inventory of 36 days.

    “What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days.’’

    It noted that the supply availability was bolstered with the production of petrol from the three refineries in Port Harcourt, Warri and Kaduna.

    “There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries.

    ”we have informed the Department of Petroleum Resources to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

    It reiterated the readiness of the NNPC Management, under the leadership of Dr Maikanti Baru, to sustain the existing cordial relations among the NNPC, the leadership of the downstream industry unions and other stakeholders.

    It also said the DPR had been alerted to sanction fuel station owners who engageD in hoarding or charged consumers above the approved pump price of petrol.

    There had been fears that the pump price of petrol would increase following the increase in bridging costs to appease tanker drivers who went on strike to demand better working conditions.

  • Reps, DPR square up over oil block licences, signature bonuses

    Reps, DPR square up over oil block licences, signature bonuses

    The House of Representatives began its investigation on leakages within the Department of Petroleum Resources (DPR) with a warning against attempts to derail it by affected organisations.
    This followed the disclosure of an ad hoc mandated to investigate the agency that DPR has failed to respond to its queries.
    The panel was mandated to investigate and ascertain the ownership, distribution and authenticity of Oil Mining License (OML), Oil Prospecting Licenses (OPL), relinquishment, signature bonuses and bidding process.
    The Committee said it will not hesitate to invoke relevant laws to compel compliance by recalcitrant public and private entities because of time constraint.
    Chairman of the Committee, Agom Jerigbe (PDP, Cross River) at the inaugural meeting of the panel disclosed that queries were sent to a list of affected government agencies and oil companies but the DPR has refused to respond.
    “Some of them have responded, some asked for time to make available their presentations but DPR did not respond. This is a surprise to us because this attitude is least expected of a government agency.
    “We don’t have all the in the time in the world considering the fact the economy is under some constraints right now, as such all hands must be on deck to put it back on the right track for the betterment of every citizen of this country,” he said.

  • IPMAN threatens strike, accuses Depot owners DPR of extortion

    Lagos State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to go on strike in the next few days over  the exorbitant prices charged by depot owners on fuel and extortion by officials of the Department of Petroleum Reources (DPR).

    The group, in a statement endorsed by its chairman, Alhaji Ayo Alanamu, and General Secretary, Prince Kunle Oyenuga, also threatened to shut down all its members 2000 fuel stations across the state and its environs.

    According to IPMAN, its members were expected to buy a litre of fuel at the rate of N133.28 kobo from the private depots owners and sell at N145 per litre to the public in accordance with the Federal Government’s directive. But the depot owners have consistently ignored the directive by selling to fuel station owners at N141.00 per litre.

    It explained that the NNPC supplies the private depots at controlled prices, yet the private depot owners refused or ignored the Federal Government’s fixed price.

  • DPR seizes vessel laden with adultrated fuel

    DPR seizes vessel laden with adultrated fuel

    The Department of Petroleum Resources (DPR) has seized a vessel – MT JAZI loaded with 1. 5 million of contaminated petroleum product while discharging at Nakem Jetty, Kirikiri, Lagos.

    The Director of DPR, Mr. Mordecai Ladan, who was represented by Zonal Operations Controllers, Lagos, DPR, Mr. Wole Akinmosoye, told reporters in Lagos yesterday that the vessel was intercepted on February 11 while discharging at the jetty.

    After much investigation by the Department, it was discovered that the vessel did not have DPR’s authorisation to deliver product at the depot. According to the director, “we proceeded immediately to halt the discharge and fiscalised the tanks at Nakem depot, after which we discovered that the facility was stocking a total of 1.5 million litres of petroleum product suspected to be discharged by the vessel.

    “The vessel is still under the custody of the Nigerian Navy for more investigation. We wish to reiterate that DPR has no record of any product importation by Nakem. We also have no record of any throughput arrangement of the facility with a third party for product storage at the time.”

    Ladan said the agency subsequently took samples from the tanks at the facility for laboratory analyses, adding that it was confirmed that the product is actually off specification. He said that the product failed all the basic parameters especially as regards odour, flashpoint and specific gravity.

    The DPR chief stated that the product at Nakem does not meet the standard specifications of any white product. He said the depot has been sealed by the agency since February 12 and the vessel MT JAZI was under Nigerian Navy custody, adding that the product would eventually be evacuated for quarantine by the appropriate government agency.

    “We wish to use this medium to reiterate our position on zero tolerance to illegal activities in the depots across the nation and unlading of off-spec product in the facilities. As we have always stressed, depot operators should be reminded that the agency will not tolerate landing of products of untraceable source at the depots,” Ladan said.

  • DPR seals 27 filling s tations in Akwa Ibom

    DPR seals 27 filling s tations in Akwa Ibom

    The Department of Petroleum Resources (DPR) has sealed 27 filling stations for allegedly selling above government’s approved pump price of N145 per litre in the state, the organisation’s Operations Controller, Mr Bassey Nkanga, said yesterday in Eket.

    He spoke when Independent Petroleum Marketers Association of Nigeria (IPMAN) officials, visited the department.

    The defaulting filling stations were sealed between January and now, he said and threatened that marketers caught selling above government approved pump prices of N145 per litre would be dealt with henceforth

    “We are aware that some of the marketers sell above government approved pump price. We are saying no,” he said.

    “Government has risen to these challenges and all these challenges will be totally surmounted.

    “We will not allow any marketer to sell above government price and if they don’t want to sell at controlled price, they should stop selling,” Nkanga warned.

    He, however, said some marketers had undergone undertaking with the department to sell at the controlled price.

    Responding, Mr Ubong Isong, IPMAN Chairman, Akwa Ibom Chapter, thanked the DPR for giving them audience, saying that he came to introduce the new executive members to the department.

    He said that IPMAN members were against adulteration of petroleum products in the state.

    “We do not want to encourage our members to engage in sharp practices or sell adulterated petroleum products in the state,” he said.

    Fuel sells at N150 per litre in Akwa Ibom.