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Tag: Dr. Emmanuel Ibe Kachikwu

  • ‘Kachikwu’s visit to Exxon Mobil FPSO was to increase production’

    The Ministry of Petroleum Resources Monday said that visit by Minister of State Dr. Emmanuel Ibe Kachikwu to the ERHA FPSO operated by ExxonMobil was to increase crude oil production and also unlock the gas.

    The ministry’s Deputy Director, Press, Olujimi Oyetomi, who made this known in a statement Monday said that the “This visit by Dr. Kachikwu not only marks a defining one for the Nation but also highlights a personal achievement for the Minister considering that he took on his current portfolio from his then position as the Executive Vice Chairman of Mobil Producing Nigeria Unlimited and General Counsel for ExxonMobil Nigeria affiliate Upstream and Downstream Companies in Nigeria.

     “This latest round of visits to the FPSO’s is to provoke the Oil Production Fields of Nigeria to ramp up their crude production and unlock gas in line with the Gas Revolution Agenda of the #7BigWins. He was received by Richard Laing, Executive Director and Production Manager of ExxonMobil while Scott Hommema, PhD, the General Manager, Deepwater Operations and Joint Interest, took him and his delegation on a tour of the FPSO.”

    The statement said that while addressing key business concerns of Exxon Mobil, Dr. Kachikwu urged them to not only focus on the profitability of the firm but also on giving back to the society having been doing business around the country for a long time.

    He commended the crew on behalf of the Federal Government of Nigeria for their Sacrifice, urgency of attention and value addition while conveying President Muhammadu Buhari’s deep commitment to the welfare of those on the production fields.

    Kachikwu name-checked the Department of Petroleum Resources’ automation initiatives that include Crude Oil and LNG Tracking (COLT), Automatic Downstream System (ADS), Accelerated Lease Renewal Program (ALRP) and others.

    He also referenced the community engagement drive of the organization evidenced by the peace and harmony seen in operating areas.

    The Executive Director and Production Manager of ExxonMobil, Richard Laing, also used the opportunity to firmly debunk the unsubstantiated rumor about the organizations exit from Nigeria.

    He further noted that the ERHA field is located in Oil Mining Lease (OML) 133 and ExxonMobil holds a 56.25% participating interest while Shell Nigeria Exploration and Production Company (SNEPCO) holds the remaining 43.75% share. The Floating, Production, Storage and Offloading (FPSO) has about 2.2 million barrels of storage capacity making it one of the largest of its kind, globally.

  • ‘Oil firms to refine 20% of crude output locally’

    THE Federal Government is considering a policy that will compel operators of major oil and gas exploration and production firms to refine 20 per cent of their oil production in-country, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said.

    Kachikwu gave the hint at the groundbreaking ceremony of the 5,000 barrels of oil per day (bopd) modular refinery being developed by Waltersmith Refining and Petrochemical Company at Ibigwe field, Ohaji-Egbema Local Government Area of Imo State.

    The minister said the Federal Government would soon announce a policy to require operating companies to refine locally at least 20 per cent of the crude oil they produce, with the percentage graduating to 50 per cent in the next five years.

    “We have no option or we will consistently stay in the abyss of lack of processing while we export all the raw materials,” he added.

    The modular refinery project is being executed with 30 per cent equity financing by the Nigerian Content Development and Monitoring Board (NCDMB) and additional $35 million debt facility from the African Finance Corporation AFC). It is expected to start production in December 2020.

    Kachikwu said the Federal Government’s policy on modular refineries is an integral part of the 14-point agenda for reducing militancy in the Niger Delta region. The plan, he noted, is to set up modular refineries in oil producing communities and use them to create jobs and absorb the militants. “We would take some of the good skills sets they have, polish them and put them into the system,” he said

    According to him, 10 of the 38 licensed modular refineries had made appreciable progress in the development of their projects and the first one is expected to deliver products between December 2018 and January 2019. “From modular refineries, we will be able to process about 200,000 barrels of crude and put them into the system.”

    He said the Federal Government was engendering the establishment of modular refineries through the financing model being managed by the NCDMB and had also granted free custom duty charges and other waivers to enable the investors bring in their equipment.

    Kachikwu assured that the government remained committed to completing the revamp of the nation’s four refineries in Port Harcourt, Warri and Kaduna by 2019, with a target to process about 500,000 barrels of crude oil daily. He regretted that continued importation of refined petroleum products was costing the nation huge sums of money, describing it as a waste of foreign exchange and deprivation of citizens’ jobs.

    He said several investors were developing greenfield refineries that would culminate in about 1,500,000 bopd being refined in Nigeria in a few years, making the country the crude processing hub of West Africa and in control of some part of the East Africa market.

    “There is the Dangote Refinery in Lagos with the bumper capacity of 650,000 barrels; the Niger-Nigeria refinery that will refine up to 100,000 barrels; the AGIP one, which is a 150,000 barrels refinery that will be located in Bayelsa State and the one led by a Chinese consortium that we are finalizing, which would do a co-location. We have two co-location refineries possibilities, each of them promising 100,000 barrels.”

    The Executive Secretary, NCDMB, Simbi Wabote, said: “The Board’s decision to invest in the Waltersmith’s modular refinery is in line with our vision to be a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors. We stand with the desire of the Federal Government to give effect to the recent pronouncements on the establishment of modular refineries.”

    He added that initiatives and partnerships like Waltersmith’s were needed to increase Nigerian Content in the oil and gas sector to 70 per cent within the next 10 years. “Beyond our interventions in the local supply chain for in-country capacity utilization, we have broadened our focus to include in-country resource utilization.”  He confirmed that the Board would consider more proposals in line with its published guidelines, stressing that the capacity of such modular refineries have to be in the range of 1,000 bpd to 5,000bpd.

    He confirmed that subsequent modular refineries that would be supported by the Board would have 70 per cent of its components fabricated in-country, adding that the contractor for the Waltersmith project was permitted to fabricate some of the components in Houston Texas, United States because this was the first time such a project would be executed in Nigeria.

    The Chairman of Waltersmith Refining and Petrochemical Company, Mr. Abdulrazaq Isa, said the refinery would contribute about 271 million litres of refined products including diesel, kerosene, HPFO and Naphta, yearly to the Nigerian economy, thereby serve as import substitution for meeting domestic demand for petroleum products, create direct and indirect employment as well as reduce the demand for foreign exchange to import refined products.

    He said the company had developed plans to increase the capacity of the modular refinery to 30,000 bopd to process additional products including petrol (PMS) and Jet Fuel.

    “We have already executed a memorandum of understanding (MoU) with PCC of China towards the installation of the additional capacity within three years, after the startup of the 5,000 bopd modular refinery,” he added.

  • Falling crude price: FG may discontinue oil projects

    Falling crude price: FG may discontinue oil projects

    The Minister of State of Petroleum for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu Thursday dropped the hint that the Federal Government was having a rethink about the essence continuing existing oil projects owing to the falling crude oil prices.

    He however allayed fear over declining prices and productions, stressing that there was no cause to panic as no minister in the Organization of Petroleum Exporting Countries (OPEC) was looking forwarding to the prices exceed $70 per barrel.

    He pointed out that the low prices have their advantages, which are to compel review high cost of production, stressing that “even for the projects we are doing today, we are looking at it again to see if it makes sense; whether if the oil in the ground is not going to yield money to the Federal Government. We are doing a lot of work on the cost aspect.”

    The minister said that most oil producing countries were already working internally to ensure that they get the best margins from their businesses.

    He made this known in a world press conference at Abuja, where he announced that the Federal Government will be hosting the Nigerian Investment Petroleum Summit (NIPS) from 18-22 February, 2018. The conference, according g to him, will be the equivalent of the Offshore Technology Conference (OTC) that holds annually in Houston.

    Kachikwu said that in order to save the nation from the embarrassment of fuel queues in the Federal Capital Territory; he will direct the Nigerian National Petroleum Corporation to do everything in its capacity to remove petrol queues from Abuja.

    His words: “I will be instructing NNPC to do whatever it takes it ensures that I do not bring visitors here next week and experience fuel queues. They (NNPC) have to do whatever it takes to get this out of Abuja.”

    He said that “Lagos is largely more fuel queues free while Abuja is still struggling because of some of the logistics issues, although there is now a huge amount of improvement.”

    Kachikwu, who foreclosed the possibility of price hike, recalled that the government increased fuel price two years ago and has no intention of doing that again.

    According to him, the fuel queue issue is both a policy and logistic issue, and the government needs to address the fundamental policy issue, especially in the area of pricing differentials to enable a uniform prices of N145/liter.

    Kachikwu said that plans are in place to attain the target of 2.3million barrel per day (mbd) in 2019 and 2.5mpd in 2020.

    Allaying fears, he said that concerning prices, “I do not think we need to be panicky about it. We hit an all-time $70 in December, which surprised a lot of us. And that was because of the huge amount of work done in OPEC. We are not ruffled by it. I know it is coming down to the higher $60s now”

    The minister said that “Shale is going to be active. We know that whenever we are in excess of $65, shale gets very active because the fundamentals become much more supportive to more investments and more production lines.

    “I have always said that two things need to happen. OPEC needs to just focus on itself and on what it needs to do and forget about what is happening in shale. Two is that every OPEC producer must work hard to become a least-cost-producer.

    “The truth is that if shale can produce at $65, there is no absolutely no reason why we should be struggling. The fundamentals of our earnings, how efficient we are, our cost of production is work that we need to do internally.

    “That does not depend on OPEC. If you look at what is happening at Saudi Arabia and UAE, there is a fundamental rejigging of their production models to ensure that they are getting the very best in terms of their prices and their cost is going down. One nice thing about low prices is that it forces everybody to abandon high cost production.

    “Even for the projects we are doing today, we are looking at it again to see if it makes sense; whether if the oil in the ground is not going to yield money to the Federal Government. We are doing a lot of work on the cost aspect.

    “However, we have obviously oscillated between $60 and $70. $70 was a sharp move and we were obviously thankfully receptive of it, but I am not sure that there is a lot of minister in OPEC who would say they were looking forward to a $70 per barrel oil largely because of the effect it has on shale and the effect it also has on laziness in terms of cost management.

     

  • Stakeholders weigh crude oil export regimes

    Stakeholders weigh crude oil export regimes

    A high-powered meeting of stakeholders in the maritime industry has been convened to generate ideas on how best to export Nigerian crude oil to attract maximum benefits for Nigeria.

    The meeting with theme: “Free On-Board (FOB) and Cost, Insurance and Freight (CIF) Incoterms Framework for Export of Nigerian Crude Oil and Gas” was organized by the Nigerian National Petroleum Corporation (NNPC) in conjunction with the Nigerian Maritime Administration and Safety Agency (NIMASA).

    In his welcome address to participants, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said various attempts in the past to transit from the Free-on-Board (FOB) to Cost, Insurance and Freight (CIF) system of exporting the nation’s crude oil had failed and that there was no better time than now to revisit the issue wholistically to determine which of the systems best serves the interest of Nigeria.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement issued at Abuja yesterday.

    The statement noted that Kachikwu urged participants to come up with recommendations to help the Federal Government take appropriate decision on the issue with a view to enhancing the nation’s the economy.

    The Group Managing Director of the NNPC, Dr. Maikanti Baru, in his keynote address, said the corporation’s preference for FOB was informed by the prevailing security situation and the need to guarantee steady revenue into the Federation Account.

    He explained that under CIF, petroleum cargoes are legally the property of the Federal Government which could pose a danger to the country’s earning as creditors could procure court orders to confiscate crude oil cargoes as a means of securing payment of Nigeria’s indebtedness.

    “The experiences of Nigerian Airways and the Nigerian National Shipping Line both of which had their vessels/crafts and cargoes confiscated on court orders obtained by creditors is unpleasant to recall.

    “Due to these peculiarities, we find it most appropriate to transfer the potential risks associated with the ownership of the cargo to the buyer at the load port in Nigeria which FOB incoterm allows. Government/NNPC’s liability ends as the crude oil passes from loading hose at the vessel’s manifold to the loading vessel. The buyer pays for Freight, Marine Insurance, unloading and transportation from the load port in Nigeria to the destination”, he stated.

    He said NNPC was, however, not unmindful of the value erosion inherent in the FOB sale arrangement, adding that the corporation was open to new ideas on the proper mix that could enable synergy and collaboration amongst different stakeholders to guarantee security of federation revenue as well as guard against associated risks involved in delivery of crude oil and Gas to customers.

    On his part, the Director General of NIMASA, Dr. Dakuku Peterside, said while there was no correct answer to the issue of freight system to adopt, there was need to be open-minded about possible alternatives that could help in the quest to diversify the economy.

    He urged participants to be guided by the national interest in their discussion and explore all possible opportunities.

  • Kachikwu -Baru: In search of a truce

    Kachikwu -Baru: In search of a truce

    Will the conflict over the award of contracts at the Nigerian National Petroleum Corporation (NNPC) end anytime soon? Stakeholders wish so, writes Emeka Ugwuanyi

    On Tuesday, Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr. Maikanti Kacalla Baru met at the 23rd Nigerian Economic Summit in Abuja. The duo plumped hands, smiled together and almost hugged like excited friends who had not seen for some time. Photographers clicked away and it was no surprise that almost all newspapers in the country yesterday had both men on their front pages.

    Was that the first time the duo would meet at events and were photographed together? Certainly not! But what made them candidates for the front pages is the row between them over the running of the NNPC. Kachikwu, who is the chairman of the board, feels left out. Baru thinks Kachikwu is being dramatic and showing signs of not understanding the workings of an agency he once oversees.

    In response to six posers raised by Kachikwu’s loyalists, the NNPC yesterday released a fact-sheet claiming that the minister nominated seven firms for contracts, among others.

    For stakeholders in the industry, the time to end the feud over allegations of insubordination and lack of adherence to due process by Baru in execution of activities in the ministry is now.

    The stakeholders had divergent views on whether Kachikwu or Baru is right or wrong. Not a few agreed that the conflict calls for speedy passage of the Petroleum Industry Bill (PIB), which, they say, contains solutions to the gaps in the NNPC Act. The NNPC Act, according to them, has several gaps that make actions of Baru right and the grouses right, especially as the President doubles as the substantive Petroleum Resources Minister, making Kachikwu and Baru to report directly to the President.

    To them, in absence the PIB, the NNPC Act should be reviewed with roles, action and lines of report properly stated and streamlined.

    Nigerian Association of Petroleum Explorationists (NAPE) President Abiodun Adesanya said Kachikwu and Baru have done well in the oil and gas sector with very tangible achievements to show for it and should not allow political issues destroy these good deeds.

    He said: “What is happening between the minister and NNPC chief is administrative issue and as both of them report to the President, it is important that the President call them and resolve the issues amicably. This will make them accomplish ongoing and planned good works in exploration and other areas of the sector.

    “First and foremost, two of them have done very well as human beings. Chemistry of working together between two people sometimes cannot be as expected. But there must be sincerity and alignment with the aspirations and programmes of the government of the day regardless of their views. If you are called to serve, you align your thoughts to work with the government’s objective.

    “The cardinal goal of this government is anti-corruption. Therefore, all your dealings must align with this objective. All the accusations are in this case are about not following due process and procedures. Nobody has said someone is corrupt.

    “Kachikwu has made a substantial progress in reducing the Niger Delta issues. The nation’s oil production is stable now with the attendant revenue increase for the government. He has resolved the persistent problem with the Joint Venture cash calls. He has also helped to influence the extension of exemption of Nigeria from the production cap by the Organisation of Petroleum Exporting Countries (OPEC).

    “Baru has also ensured unhindered petroleum products supply. Nigerians don’t queue to buy fuel anymore. There has been stability in the downstream subsector with positive impact on the economy. Exploration efforts in the frontier basins especially those in the north are now being professionally and purposefully pursued.

    “If we are making progress in all these, and if someone is perceived to jump procedure, it has to be carefully handled. The issues raised in the conflict are administrative issues under the President and he can manage it.

    “There is need to look at the NNPC Act well, so this kind of issue doesn’t arise again. If the Act provides that the NNPC on one hand reports to the Minister of Petroleum Resources and on the other the President and a case arises where the President is the Minister of Petroleum Resources, the situation should be reviewed and roles streamlined.

    “Governing Board is part of NNPC, so management and board should be on the same page. This can be amicably resolved. On how the NNPC carries out its duties can also be streamlined. The National Assembly is looking into that, to streamlines roles and lines of reporting.

    “This issue brings to the fore the issue of passage of the Petroleum Industry Bill (PIB). PIB has solution to this problem and it becomes surprising why the House Representatives is sitting on the Bill while the Senate is giving it speedy treatment.

    “Let us not allow political issues to destroy the good deeds achieved in the sector. The President should call Kachikwu and Baru, resolve the issue amicable and ensure such issues are treated and resolved internally and kept away from public consumption in future.”

    For the Lead Director, Centre for Social Justice (CSJ), Mr. Eze Onyekpere, the issue calls for need to speedily and totally pass the Petroleum Industry Bill (PIB) into law. He said the managers of Nigeria’s oil and gas resources should be more concerned with maximizing value from the resources for the benefits of Nigerians especially as oil and gas are being threatened by shift to use of renewable energies.

    Onyekpere said he was yet to see any company law that doesn’t present its activities to the board before implementation, adding that the issue is test case for the reforms for the sector.

    “The situation presents a water-tight case for the enactment of the Petroleum Industry Bill (PIB) because the world is not waiting for Nigeria. The nation is currently facing the challenges posed by the increasing production and choice for renewable energy worldwide.

    “The world is moving away from use of fossil fuels and we should be concerned as a nation what to do with the hydrocarbon resources we have before it becomes totally useless. The world is leaving Nigeria behind.

    “The allegations against the Nigerian National Petroleum Corporation (NNPC) are critical because they border on lack of transparency and lack of due process and should be taken seriously irrespective of who is involved.

    “I want to look at the company law that says a company doesn’t report its activities to the board. It is nonsensical to classify firms that lift crude oil as off-takers. Also at what point did the NNPC present the report to the Federal Executive Council (FEC), and who presented the report to FEC when the Minister of Petroleum was not aware? Is it the President the presented it to FEC or was it the Vice President when the President was away?

    “What is happening is an aberration and a watertight case for reforms for the oil and gas sector that is the mainstay of the country.”

    On the proposed suspension of the Minister of State for Petroleum Resources and the Group Managing Director of NNPC by the Senate to enable the upper legislative chamber carry out its probe into the allegations against the NNPC without difficulty, Onyekpere said the suspension should be for the person that ran contrary to the law and due process.”

    Lonadek Oil and Gas Limited Principal Consultant Dr Lola Amao said: “Corruption allegations would continue in Nigeria until anti-corruption systems, processes and procedures are incorporated into governance. I am yet to see any NNPC leader who has not been implicated, caught or accused of being a suspect.

    “The institution was neither established to benefit the masses nor be transparent. I am not sure that Minister, Minister of State and the Group Managing Director can discharge their duties as innocently as they would want to without being implicated in one process, incident, agreement, transaction, contract or another, among others.

    “The sooner we make NNPC a public company for the benefit of all Nigerians and have Incorporated Joint Ventures (IJVs) source for funding based on Return on Investment (RoI), the better for Nigeria. I hope this case highlights the need for NNPC to go public (privatized).”

    Another stakeholder, who pleaded anonymity, said: “What is happening between the Ministry of Petroleum Resources and the NNPC is political. The battle for the life of Nigeria in 2019 has just started in NNPC Towers.

    “Nigerians should be on the alert and watch events unfold. They will recognise the cabal and characters of the soap opera.

    “NNPC needs to be privatised so the Corporation will be subject to Nigerians and not Nigerians subject to NNPC.”

  • Kachikwu denies campaign posters

    Kachikwu denies campaign posters

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu Monday dissociated himself from his 2019 governorship election campaign posters in the Federal Capital Territory (FCT).

    He denied halving any knowledge of the poster, stressing that he has not indicated interest in running for any elective position in Delta State.

    The Director Press, Mr. Idang Alibi, in a rejoinder noted that “our attention has been drawn to fake campaign posters of the Honourable Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu for the 2019 governorship elections in Delta State pasted by unknown persons across the Federal Capital Territory.”

    Kachikwu, according to the rejoinder, is focused on delivering on the reforms currently being implemented in the petroleum sector under the leadership of President Buhari and Ag President Osinbajo in line with his duties as Minister of State for Petroleum Resources and Chair of the Board of the Nigerian National Petroleum Corporation (NNPC).

    It added that the minister is committed to effectively representing his state of origin, Delta State in the federal cabinet to institutionalise transparency, accountability and productivity in the Nigerian oil and gas sector.

    It is gratifying that, despite challenges, measurable progress has been made in achieving important milestones under Kachikwu‘s watch and today, the petroleum sector is more transparent and contributes more to the national coffers. Consolidating on this progress remains the priority of Dr.Kachikwu and he refuses to be distracted from this focus.

    Kachikwu urged stakeholders in both the Oil and Gas sector and indeed the general public to discountenance these unfounded speculations.

    The Minister of State for Petroleum Resources assured all Nigerians of his and Government’s continued commitment to the welfare and well-being of the citizenry, while thanking them for usual cooperation and collaboration towards achieving the lofty dreams of a thriving Oil and Gas sector for Nigeria.

  • Lake Chad exploration: We’ll not go back without security clearance – Kachiku

    Lake Chad exploration: We’ll not go back without security clearance – Kachiku

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu Thursday said that only security clearance will determine whether the Nigerian National Petroleum Corporation (NNPC) will resume exploration for crude oil in the Lake Basin in Borno State.

    He called a press briefing in Abuja to specifically commiserate with the families of members of staff and military personnel that were the victims of the attack in the area. Asked whether the corporation would resume exploration activities in the basin again, the minister noted that NNPC did not kick start activities in the areas until when it got a green light from the security operatives, and that it wouldn’t still resume work there without security clearance.

    According to him, if NNPC desist from doing its job because of criminality it portends the danger of bringing the economy to a halt therefore, activities of the corporation in the basin will be based on sufficient security in the area.

    He said that exploration activities in the Lake Chad Basin was guided by about 200 security personnel which include the military personnel and JTF.

    The security agencies, who are experts in the field of surveillance, will take a second look at the terrain before certifying it safe for exploration activities.

    His words: “The reality is this: any time that NNPC decides to go into a terrain, it first has to get the privilege of security apparatus. That security advice was substantially clear for six months. So, that goes to show that there was some level of stability in that area. It wasn’t a misguided venture into the terrain.

    “Now, whether we will resume will depend again on what security clearance is given. We took the decision that we are not going to do things because of criminality in that area of the Chad and other parts of Nigeria, it means that the economy will stop. It means oil in the Niger Delta will stop.

    “I think my simple answer to that question is that provided there is sufficient security clearance I don’t see why we will not continue for that experience. The lesson we are going to take away is to look at the security apparatus to see whether there is a little more to do. I know that there were over 200 security personnel apparatus including the military, civilian JTF and all that. So it was very well protected.

    “Obviously the security agencies who are more experts in that field that I am will take a second look to see what more protection they will put in place. But certainly we will not go back unless they give us a clearance.”
    Kachikwu recalled that in line with the aspiration of President Muhammadu Buhari for the country to grow its current crude oil reserve base of over 37 billion barrel of oil, the NNPC resumed exploration activities in the Inland Sedimentary Trough areas.

    The minister added that in November last year, based on the advice from the military after successful campaign and degrading of the insurgency in that zone, the NNPC resumed exploration activities in area namely: Gubia Nugumeri, Munguno, Kukawa, Abdam, Guzamala and Mobar all.

    He said that insurgent however attacked the staff and soldiers on Tuesday.

    Kachikwu noted that specific data in terms of those who died were still being collated, adding that the ministry will release the information at the appropriate time.

    He said that the Nigerian Army had deployed its soldiers to the areas and that unconfirmed report had it that some rescue was recorded.

    The minister also explained that the sealing of 1.8 million barrel per day (mbp) set for Nigeria by the Organization of Petroleum Exporting Countries (OPEC) was yet to take effect.

    He said merely hitting a production of 1.8mb/d was not sufficient for the sealing to take effect.
    He noted that it has to be a month to month analysis of the situation and assurance that the country has triumph over what prevented its production before he can report to OPEC that the operating environment is now stable.

    This, according to him, has to be within the nine month for which Nigeria was given the exemption.

    He said: “First of all, the 1.8 has not come into effect. I am made to report back to them within the nine months’ time when we got the exemption to confirm  that we have stabilize production . It does not mean because we produced 1.8 in one day mean stabilization. It is a month to month analysis. That is when we get comfort that all the forces that prevented our production are upheld and we can consistently produce above 1.8.”

  • Osibanjo urges Africa oil producers to track terrorism funding

    Osibanjo urges Africa oil producers to track terrorism funding

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru on Monday announced that the corporation could not sustain its last week record of 2.2million barrel per day (mbd) owing to the yesterday’s (Monday) attack on the Trans Niger Pipeline in Ogoniland which culminated in the loss of 150,000barrel.

    Asked whether the NNPC was able to sustain its last week production feat, he said “Unfortunately, we have not been able to sustain it because of challenges. As I am talking to you this morning the Trans Niger pipeline has been breached in Ogoniland and that is 150,000 barrel per of oil has been locked up day. That has been fairly an issue in that area. And We hope we can continue at that level.”

    He spoke to reporters after the opening ceremony of the “Extraordinary session of the Council of Ministers of the African Petroleum Producers’ Organization (APPO) in Abuja.

    In his opening remarks, the Acting President, Yemi Osinbajo, urged the African oil producing countries to track the funding of terrorists with oil funds.

    He noted that there was a global threat to peace from the funding of terrorist groups and other sources of violence and conflicts that have become a threat to the security and safety of the member states.
    Urging the member state to build up a data base that will track every molecule of oil produced in the region, he noted that the measure will also bring about accountability, transparency and global cooperation.

    His words: “Permit me to mention a matter of immediate concern. Around the world today, we are increasingly seeing crude oil, often of untraceable origins, funding the activities of terrorist groups and other purveyors of violence and conflicts.

    “Many of these groups constitute a threat or a potential threat to the safety and security in member of our member states. APPO reforms, therefore, need to build the capacity to maintain a reliable statistical database and to deploy technology to track every molecule of crude oil extracted from our territories.

    “This is an important step, not only for global security but also for fiscal transparency, accountability and of course, the required levels of international collaboration and cooperation that an organisation like APPO is well-placed to muster.”

    He said that the session is holding when the continent and the rest of the world are witnessing volatility in the petroleum market, and by implications, in their local economies.
    According to him, the centrality of the hydrocarbon industry to the economies of the continent is self-evident, it is reflected in the revenue inflows that accounts for a significant percentage of their budget.

    This, said the Acting President, has become one of the, if not the primary sub-structure upon which economic planning is based and on which economic development and growth are generated.
    He added that “Over the last three years or so, oil producing countries across the world have experienced the full impact of the drop in oil prices with significant negative impact on government revenues and budgets and of the value of national currencies.

    “This volatility has triggered much soul-searching and governments are compelled to ask themselves difficult but necessary questions about the present and the future. Besides, the reality of the future, where demands for and revenues from oil drop sharply is already upon us; and almost every major oil importing country today has embarked on an aggressive non-fossil fuel alternative programme.

    “China, Japan and some Scandinavian states have already set dates within the next 10 to 15 years, to produce and use only electric vehicles. The zero oil days are clearly around the corner and I think the point has been very eloquently made by kachikwu.”

    He explained that African’s government and export bases are in dire need of diversification from the inimical dependence on natural resources that they enjoyed in the past.

    Kachikwu

    Continuing, he said that “But also the paradox is inescapable that we need oil to get out of our dependency of oil. The capacity to add value to the crude oil that we extract is crucial.

    “The whole range of the petrochemical enterprise remains a largely untapped option for growing industrial opportunities, creating jobs and increasing our chances of delivering on our national and continental commitment to inclusive growth.

    “We must leverage our resources to fund and to support our ambition to create economies fit and ready for the 21st century.

    “In Nigeria, we are pursuing series of reforms along these lines, combining executive and legislative actions to create a sector that is more efficient, more transparent and more attractive to domestic and foreign investors.

    “We are also making progress in fine-tuning and implementing our local content policies, and that I must say is one area that is critical to the future of APPO. Indeed, that is one of the reasons why APPO was created, to provide a platform that would support and empower African countries to build and exploit local capacity and technology to the fullest.”

    Osinbajo announced that from February 2018, Nigeria would host annually, a world class international petroleum summit in Abuja.

    Speaking, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu said that one of the challenges facing the (APPO) is the need to reform and reorganise to giving it a bite.

    The minister told his members that the oil world has changed and brought about a decrease in price to about 40% of what it was five years ago.

    So most countries that produce oil, he said, have lost substantial revenue and have lost even the capacity to do some of the huge developmental programme that they are known for.

    Kachikwu added that = market is becoming very distraught and most regional block producers are beginning to ring-fence specific markets.

    He submitted that America has pulled out of the large market of oil importer while Asian and the Gulf countries are protecting their markets.

    He charged the APPO members to consider ways of enlarging and protecting the African market to give its players the first opportunity to utilise the market.

    Kachikwu said: “the Asian, the Gulf countries ensuring that their markets are protected. With America pulling out of the larger market as a major importer of oil, and the America first policy, it is becoming absolutely imperative for member countries of this organization, we need to begin to look at the African market and how they can enlarge it, expand it, make it robust and yet protect it, so that those of us who play in that market would be able to have the first opportunity to utilize that market.”

  • IAEA storms Nigeria to assess nuclear regulatory infrastructure

    • Reps raise nuclear materials security concerns

    The Integrated Regulatory Review Service (IRRS) mission of the International Atomic Energy Agency (IAEA) yesterday stormed Nigeria to assess the nuclear infrastructure in the country.

    Speaking at the opening ceremony in Abuja, the Director General, Nigerian Nuclear Regulatory Authority (NNRA), Prof. Lawrence Dim, noted that the “IAEA and international nuclear professionals and experts in the field of nuclear science and technology, are in Nigeria today (yesterday) to assess our regulatory infrastructure.”

    He explained that the IAEA had selected its professionals on the basis of competence and expertise to inspect Nigerian’s nuclear regulatory infrastructure.

    Dim, acknowledged the fact that the nuclear regulatory process is international in nature and the practice are always advocated and applied.

    The authority, according to him, will become an independent nuclear regulator when the nuclear safety, security and safeguard bill is signed into law.

    He added that NNRA has prepared the bill which the IAEA has reviewed and is now set for onward presentation to the National Assembly for passage into law.

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who declared the ceremony opened, said that the ministry will continue to live up to its expectation of ensuring nuclear safety while celebrating closely with an international agency such as IAEA, and its expert advice, radioactive equipment and training.

    His Senior Special Technical Adviser, Mr. Adegbite Adeniji who represented him, said that Nigeria was grateful to the international agency for granting her request for a peer review.

    Meanwhile, the IRRS Coordinator, Mr. Theodros Hailu, disclosed that the mission was to assess the national regulatory framework of nuclear, radiation and safety.

    The team, he said, which would remain in Nigeria in the next 12 days, will send its findings and recommendations to the federal government.

    The chairman, House Committee on Petroleum Upstream, Hon. Victor Nwokolo raised concern about the security of nuclear materials in Nigeria.

    Speaking with journalists, he explained that “what I was saying is that one, as days pass by, the nuisance in our society develop more sophisticated methods of bringing arms against the state.

    “In a nutshell or in a very clear language, we want these materials to be properly secured so that this issue of a bomb blast, the same materials that are used in our mining sector, the same materials that are used by our quarries, are what they also use in this crime.”

    He noted that the propensity to use the materials for committing a crime has made it necessary to ensure that they do not go to the wrong hands.

  • FG to spend N3.4tr on petroleum products this year

    FG to spend N3.4tr on petroleum products this year

    …Requires $1.1b, $1.2b for repairing refineries

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Thursday revealed that the Federal Government would in this year spend N3.4trillion on the importation of petroleum products.

    Addressing newsmen in Abuja, he refuted reports that quoted him to have said that government was concessioning its refineries.

    He said that government has no plans to concession the refineries but it is only making arrangements for private financing of their repair. The minister denied that the claims that Oando has won the contract for financing the repair of the refineries.

    According to him, Nigeria that consumes 35million daily presently has domestic refining capacity of six million liters, which is about 25% of the demand.

    The minister said “the importation of products even between January and December of this year, amounts to 20million metric tonnes and a total amounting of N3.4 trillion. The logistic cost of that importation shipping clearing and all that is about N1.34trillion since the same one year period.”

    Owing to this domestic and demand situation, the government had to plan for the improvement of its domestic refining capacity.

    Kachikwu noted that government raised a technical and steering committees on the financing of the refineries that its report will be presented to the National Assembly and Federal Executive Council upon conclusion.

    He however noted that what has been so far established is the magnitude of work that is required in the entities.

    The minister said that apart from piping, about $1.1billion, $1.2billion (depending of the category), will be required to fix the refineries.

    His words: “Internally, we have been able to determine the amount we want to do this work in terms of what work is required to be done. And the total cumulative amount if I am not mistaking is the $1.1, $1.2b type category depend on the refineries with specific breakdown. That of course does not include the cost of piping.”
    Explaining why government has decided to deal with the Chioda, Sapiem and GGC, he said that Chioda built Kaduna refinery, Sapiem built Warri refineries while CGC built the PortHacourt refineries.

    These companies, according to him, have the designs, engineering outlay and upgrade capability for the refineries.

    Today, the reality is still that the reality for downstream product surges that very few people will undertake the financing.  So that is why we have created a business model that tie them to the Direct Sale Direct Purchase (DSDP) Programme and that is still working and that is still work in progress.

    “When they finish this and are done with the analysis, I will expect that they will then invite everybody who is interested to the commercial terms set out formally…before we get to FEC, National Assembly and Mr. President. We haven’t reached there and so nobody can say contracts have been given.”

    Kachikwu advised the International Oil Companies to invest in building refineries in Nigeria in order to avoid the negative effects of dip in oil prices.

    He said more importantly, we need to address IOCs in terms of what they need to do to help local refining because if you encourage all these refining capabilities whenever they run out of crude availability we need to look at them why are you taking out crude when you can get the same pricing equivalent in local refining.”

    In terms of the incentives or guarantee for the corporations that would finance the repair of the refineries, he said that there will incremental volumes, access to sales to cushion the challenge in the markets in terms of pricing.

    He revealed that the Organization of Petroleum Exporting Countries (OPEC) is reaching out to its non-members including the US on measures to control the glut in the market.