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Tag: Dr. Emmanuel Ibe Kachikwu

  • Kachikwu continues engagement on investment with US

    Kachikwu continues engagement on investment with US

    As part of the just concluded international visit of the  Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu to the United States of America, where he led Nigeria’s delegation to the Offshore Technology Conference (OTC) in Houston Texas, the Honourable Minister of State held a meeting with a delegation of the United States Departments of State and Energy at the United States Department of State in Washington D.C.

    The meeting had in attendance Ambassador Mary Bruce Warlick, Acting Special Envoy and Coordinator for International Energy Affairs at the Department of State who led the United States discussions during the meeting which was grouped into two sessions the reform session and investment session respectively.

    The ministry’s Director of Press, Mr. Idang Alibi made this known in a statement on Wednesday.

    According to the statement, the Acting Special Envoy and Coordinator for International Energy Affairs stated that Nigeria remains a critical priority for the US in Africa and bilateral relations, which are increasingly rooted in the shared values of both nations are delivering results. She further commended Nigeria on the significant steps taken in the Oil and Gas Industry reforms especially in the area of shared insights gained by the US team from reviewing the National Oil policy, The National Gas policy, The Fiscal policy and the draft of the Petroleum Industry Governance Bill and Petroleum Industry Fiscal Bill developed by the Ministry of Petroleum Resources.

    The Minister of State while responding to the comments and feedback given by the Acting Special Envoy and Coordinator for International Energy said the Federal Government of Nigeria under the leadership of President Buhari has clearly set out the choices that have to be made as nation over the next 4 years and have also taken significant steps in achieving this through the continuous implementation of the 7BigWins – the Nigerian Petroleum roadmap; which focuses on stabilizing the business environment, enshrining openness and transparency, developing and entrenching new policies and regulations.

    He also hinted on the launch of a pet project – “Project 100” which is aimed at maximizing and unleashing talents by identifying 100 Nigerians who have access to finding and are willing to make a change in the industry and collaborating with them to find solutions to the industry’s problems with a view to set Nigeria on the path of glory.

    Kachikwu further reiterated the positive impact that the ongoing engagement in the Niger Delta and the Oil Producing States led by the Acting President; His Excellency Prof. Yemi Osinbajo is yielding results as evidenced by the near zero militant incidences and normalcy in production activity being restored in the region. A comprehensive and holistic developmental framework encompassing all Government Agencies and stakeholders, targeted directly at addressing gaps in the communities is being deployed with the 20-point Agenda that outlines the Roadmap to closure for militancy in the Nigerian Oil and Gas sector.

    He also harped on the need to work together with the US to sustain progress on reforms and match it with increased international investments in Nigeria’s Oil and Gas sector. Other areas of collaboration the Honorable Minister of States urged the US to invest in include capacity building, and acquisition of technology.

    As part of the discussions during the roundtable, Ambassador Warlick informed the Minister of State, that a team of Nigerian Senators would be meeting the US team on Friday May 5, 2017 to discuss progress on legislations relating to the Nigeria Oil and Gas industry. The honourable Minister responded to the visit of the Senators by stating that there has been a very high level of collaboration between the Executive and the Legislature in the passage of bills before the National Assembly and also cooperation in proffering far-reaching solutions that will grow Nigeria’s Oil and Gas sector.

    While discussing issues relating to gas strategy implementation and plans during the roundtable, Ibe Kachikwu said that Nigeria’s gas vision is to be an attractive gas-based industrial nation, giving primary attention to meeting local gas demand requirements, and developing a significant presence in international markets. He explained that the core principles behind the gas industrialisation agenda include separation of activities between the government and private sector, implementing full legal separation of the upstream from the midstream, pursuing a project-based rather than centrally-planned domestic gas development approach and establishing strong linkages with electric power, agriculture and other real sectors.

    He further clarified that for Nigeria to successfully attract investments and achieve an aspiration of zero routine gas flaring by 2020, the Federal Government developed a transparent licensing process for allocating and pricing gas flares, improving access to finance for gas flare monetization projects, providing incentives to investors, and strengthening the capacity of government regulatory agencies to monitor implementation of flare down projects. Another important gas initiative in the country is the provision of LPG for domestic use and CNG as a transportation fuel.

  • Modular refineries: Fear of increased gas flaring grips FG

    Modular refineries: Fear of increased gas flaring grips FG

    • Promises to control operations
    Following  investors’ bid to establish modular refineries, the Ministry of State for Petroleum, Dr. Emmanuel Ibe Kachikwu on Thursday expressed fear that the rate of gas flaring in the country will rise.
    His Senior Technical Adviser on Investment, Dr. Tim Okon, who represented him in Abuja during the presentation of the report on “New Nigeria Oil &Gas Framework and Policy”, however vowed that the government will control the operations of the refineries.
    His words: “Modular refineries will worsen our flare. We have to use economics of scale. If we have many refineries they will accentuate problems. So we we will have to control them.”
    He announced that the Nigerian National Petroleum Corporation (NNP) will next year call for expression of interest (bids) for marginal fields, which will be opened for companies’ participation.
    According to him, prior prior to the exercise, the marginal field policy would have come into force.
    The NNPC, said the minister, will ensure that the Niger Delta gets micro businesses to do as the government is keen about providing a business friendly environment.
    He revealed that there will be a critical legislation to make gas independent of government subsidy, which has caused significant loss of revenue from the product.
    Kachikwu added that, “we want to make sure that gas can economically stand on its own.”
    He said that in the new scheme of things, government intervention in the petroleum sector will focus on developing entrepreneurs in the country to discourage “sharing money that distort political discourse and value system.”
    Before the event ended,  Kachikwu arrived in person. He said that besides oil, Nigeria is a country with deliverable resources, with an educated and aggressive populace.
    Commenting on the economic state of the nation and taking into cognizance of its potentials, he said “I imagine what Nigeria could become if we do the right thing.”
    He noted that the essence of the seven big wins is to bring out the latent opportunities in the oil and gas system to take a collaborative responsibility to assist those who really want to become players in the field.
    The minister said that the sector had been locked down by interest groups for too long positively or negatively, however time has come to open up the areas that are there.
    He pointed out that  it is now the responsibility of the ministry to assist those that have creative ideas about the industry  to “creates employment and development.”
    He recalled that he announced the concept of project 100 in Houston, which is to identify 100 Nigerians with skills, capacities and enthusiasm for the relevant assistance from government.
  • FG begin discussions with illegal refiners

    FG begin discussions with illegal refiners

    NAEE: regularization of artisanal refineries will save economy

    Following the federal government plans to regularize illegal refineries into modular refineries, it has in the last few weeks commenced discussions with some of the operators of refineries.

    Meanwhile, the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, who made this known Tuesday said “In the past few weeks, we have opened constructive discussions with some of these  has opened discussions with illegal refiners and government is working to ensure that the initiative is implemented.”

    He added that  the federal government will in this month start installment payment of JVC cash call.

    The minister was represented by the Executive Secretary, Petroleum Technology Development Fund (PTDF), Dr. Bello Aliyu Gusau spoke during the 10th conference of Nigerian Association for Energy Economics (NAEE), with the theme: “Energy, Economy and the Environment: The Interplay of Technology, Economy and Public Policy,” in Abuja.

    Describing the situation that Nigeria has found itself today as the one beyond price shock, the Nigerian National Petroleum Corporation (NNPC) Group Managing, Dr. Maikanti Baru, noted that militancy in the Niger Delta further worsened the economic situation of the country.

    According to the Group General Manager, Corporate Planning and Services, Umar Ajia  who represented the NNPC boss, “NNPC is to maximize our energy resource to forestall the reoccurrence of our present economic predicament.”

    The NNPC boss advised that it is also important to ensure that operators in the sector implement their obligations to the host communities.

    Speaking with journalists at the event, the association’s President, Prof. Wumi Iledare,  said that federal government’s move to regularize the illegal or artisanal refineries in the Niger Delta will save the economy.

    He pointed out illegal refining has been attractive because they operators are not paying for the crude.

    According to him, after a tax holiday, the regularized refineries will start paying for the crude and they will be trained on the technology in order to reduce environmental pollution.

    Iledare said : ” The only reason why the illegal refiners are making money is because they are not paying for the crude. Because if you look at the margin in refinery economics, it is the crude that is the driver. If someone is taking apt he crude and he is not paying for it it will appear as if it is profitable.

    “The technology is also crude which means they are not actually mindful of the environmental implications of refinery process. I think what the government is trying to do, is to find a way to make sure that they are educated enough to acquire the technology that will reduce environmental pollution and get them to pay for the crude.”

  • Buhari inaugurates boards of NNPC, NCDMB,  NNRA

    Buhari inaugurates boards of NNPC, NCDMB,  NNRA

    President Muhammadu Buhari on Friday challenged members of the newly inaugurated boards in the Ministry of Petroleum Resources to ensure decency and transparency in the management of the nation’s oil industry.

    The inaugurated boards included the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Nuclear Regulatory Authority (NNRA).

    Buhari specifically tasked the new boards to ensure that they devise practical strategies aimed at tackling current challenges within the oil industry.

    He said the boards, which would be chaired by the Minister of State, Petroleum Resources, Dr Emmanuel Ibe Kachikwu, should advise the minister and the corporations’ management on the most effective ways for Nigeria to get value for money from its assets.

    “Oil and gas are the country’s foreign exchange earners. Therefore, the importance of these boards cannot be over emphasised. Your job should be to ensure propriety in management of these most vital national institutions

    “You should advise the Minister and the Corporations’ management on the most effective way for Nigeria to get value for money from our assets.

    “My expectations from the members of the boards is for them to ensure that NNPC charts a way to face current economic challenges.

    “This will involve a careful look at the ongoing reforms designed to steer the corporation to achieve better performance and efficiency,’’ he said.

    Buhari further stressed the need for the new NNPC board to come up with innovative ways of addressing the constraints in funding Joint Venture projects between the corporation and international oil companies as well as other investment issues.

    According to him, his administration has introduced transparency in the management of the country’s oil industry through the monthly publishing of operational and financial reports of the NNPC.

    The President expressed optimism that with the members’ experience and knowledge, the country’s aspiration in the oil industry would be achieved within a reasonable time frame.

    Responding, the Chairman of the inaugurated boards, Kachikwu assured that they would ensure transparency and accountability in running the affairs of the boards.

  • Buhari to minister: stimulate economy with petroleum 

    Buhari to minister: stimulate economy with petroleum 

    …Kaxhikwu vows to raise $20b

     

    President Muhammadu Buhari Thursday launched the Nigeria Oil and Gas Industry Roadmap tagged “The 7 Big Wins”,” and urged the Minister of Petroleum Resources to maximize petroleum resources to  stimulate the economy.

    Speaking during the public presentation at the Banquet Hall of the Presidential Villa, Abuja, he said: “Therefore, the task before the Ministry of Petroleum Resources is to maximize the potentials and opportunities across the whole range of the Oil and Gas industry to stimulate our economy in spite of the current challenges.”

    He admitted that the industry presently remains critical to the nation’s economy in spite of her challenges.

    He stressed that the “golden era of high oil prices may not be here now, but Oil and Gas resources still remain the most immediate and practical keys out of our present economic crisis.

    “The Oil and Gas still remain a critical enabler for the successful implementation of our budget as well as the source of funds for laying a strong foundation for a new and more diversified economy.”

    The President noted that as important as it is to ensure that Agriculture, Solid minerals and other critical sectors of the economy are supported to grow and contribute more to the nation’s economy, Nigeria still needs a virile and efficient oil & gas industry to take care of her foreign exchange requirements.

    According to him, this is a national imperative and a core thrust of the nation’s economic policy.

    Continuing, Buhari said “Therefore, the task before the Ministry of Petroleum Resources is to maximize the potentials and opportunities across the whole range of the Oil and Gas industry to stimulate our economy in spite of the current challenges.

    “To do this certainly requires creativity, innovation, technology and robust partnership amongst various stakeholders.”

    The President called for the dire need to instill a new culture of transparency and efficiency in the industry, streamline operations along best practices by championing and implementing strategic reforms at every layer of the industry.

    He noted that this “will help us improve oil and gas production, explore our frontier basins, improve our local refining capacity and above all build sustainable partnerships with the oil producing communities.

    “If we are able to plug the leakages, and tighten loose systems that characterized this industry in the days of high oil prices, we are convinced that we can do even more with the little that we are getting at the moment than we did even in the time of plenty.

    ”  As you are aware, recent developments in the Niger Delta have temporarily limited our oil and gas production and supplies. However, let me reaffirm that, whatever challenges we are currently facing in the region, our resolve and capability to work with all stakeholders to restore normalcy will guarantee success.”

    Speaking, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu explained that  disclosed that the major thrust of the programme is to raise government’s revenue from the oil sector through cutting down on project contracting cycle, ensuring 100 per cent local refining by 2019 and the commercialization of gas flaring.

    He further stated that the country would ensure that it finds every oil that is available in every part of the country, with increased private sector participation, while it intends to raise $5 billion and $20 billion in the short and long term respectively, for the Federal Government.

  • OPEC members seal deal on oil production cut

    OPEC members seal deal on oil production cut

    …Kachikwu’s diplomacy yields dividends

    After about forty eight (48) hours of a grueling meeting of the Organization of Petroleum Exporting Countries (OPEC) held in Algiers, Algeria, the oil cartel on 28th September, 2016, agreed to a landmark deal that will effectively cut production to 32.5 million barrels per day from around 33.24 million, with levels of output for each member country to be determined in November 2016.

    The Director, Press, Ministry of Petroleum Resources, Idang Alibi said this will be the first time in eight years that OPEC would be reaching such an agreement. This could be loosely tied to the role that has been played by member countries, including Nigeria, in refocusing OPEC to work harmoniously in identifying needs and challenges that are peculiar to the body and surmounting them, a key challenge being the low price of oil in the international market which has affected the global economy with most OPEC member countries feeling the heat.

    OPEC member countries reached a consensus in the agreement where three countries are exempted from the production cuts and they include, Iran, which just had its economic sanctions lifted earlier in the year, Libya and Nigeria who have had some of their oil facilities damaged by terrorist attacks in recent months.

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who led Nigeria’s delegation at the meeting argued for the exemption of Nigeria from the production cut. The concession was given considering the recent challenges the country has been through due to vandalism of oil and gas infrastructure, which has negatively impacted the country’s ability to produce oil optimally in the recent past

    This deal will obviously enhance the prospects for the energy industry with the impacts already being felt as oil price jumped more than five per cent in New York after the agreement was reached. A steady increase in oil price, one of the advantages the deal will produce, would most likely contribute positively to the revival of the economies of member countries presently undergoing challenges which Nigeria is a part of.  However, many of the details of the production cut deal are still being worked out by member countries and the group won’t decide on targets for each country until its next meeting at the end of November 2016. Kachikwu would be representing Nigeria and her interest at the November meeting.

    The landmark deal is coming at a time when Kachikwu played a key role to clinch the top job at the OPEC for Nigeria with the appointment of Dr. Mohammed Sanusi Barkindo as the Secretary-General of the Organization. This meeting was the first official meeting of OPEC to be organized by the new Secretary General since his official resumption on 1st August, 2016, he added.

  • Govt mulls 900,000b/d oil output to offset budget deficit

    Govt mulls 900,000b/d oil output to offset budget deficit

    • ‘Meeting 2.2mb/d projection difficult’

    Following the decline in oil production from the projected 2.2million barrels per day (mb/d) to an average of 1.5mb/d, the Federal Government has planned to make up for the shortfall in the 2016 budget with an excess production of 900,000 mb/d when normalcy returns to the restive Niger Delta.

    The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, made this known in a conversation with Richard Quest on CNN’s Quest Means Business, yesterday.

    Kachikwu said government has made adjustment  for the excess production since it appeared that it would be difficult to realise the 2.2mbd production budgeted for in this year’s budget.

    His words: “It is going to be difficult to catch up with the 2.2million barrels on which the 2016 budget was based. But we are certainly going to try, once things have calmed down and there is full production. We will need 900,000 bpd excess production to catch up and that is the projection that we are working on now.”

    He however admitted that production has declined in the last five months of continuous militancy in the Niger Delta. He however expressed optimism that the crisis could become history in the next few months, saying that government has been making frantic efforts at engaging, dialoguing with the stakeholders to resolve the crisis in the region.

    He said : “Yes it is a difficult time but like you rightly said, production is average of 1.5million barrels per day. And we intend to get along: first reason it is because of the militancy problem we have in the Niger Delta.

    “We are putting a lot of energy around it. There is a lot of dialogue, a lot of engagements, a lot of security meetings to try and resolve this. President Muhammadu Buhari is very concerned about this .

    “Executive time is being given to this. We are expecting and hoping that over the next one month, two months, we will find some final solutions that will bring solution up. Once we have done that , it is obvious that we have lost quite some months, five six months of continuos problems.”

    Kachikwu said he doubted if the Organization of Petroleum Exporting Countries (OPEC)  would cut production in its September meeting, stating that the possibility is remote owing to the organisations’ failure to unite on the issue.

    The minister pointed out that OPEC only produces 30 per cent of world oil, saying that unless there is a dialogue with the producers of the 70 per cent, the organization’s 30 per cent would not make a significant difference.

    Kachikwu said : “I am not too optimistic about that. We have tried that a couple of time and we have not been able to get the kind of unity we need to affect those cuts, neither are some of us convinced that once the cut is effected, it will have such a major impact.

    “As you know, OPEC produces about 30 per cent of world oil today. So unless we reach some commonality and dialogue with the 70 per cent producers, you will find out that the 30 per cent of the fraction won’t make the difference. So I am not too optimistic about that but the only thing I think we should continue to do, is to be aggressive about the dialogue with the 70 per cent producers, and that is finally what is going to get us there,” he stated.

  • Buhari okays new board of directors for NNPC

    Buhari okays new board of directors for NNPC

    President Muhammadu Buhari has approved the composition of the Board of the Nigerian National Petroleum Corporation (NNPC), as provided for under Section 1(2) of the NNPC Act of 1997, as amended.

    The new board, according to a statement by the Special Adviser on Media and Publicity, Femi Adesina, is chaired by the Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu.

    Other members include Group Managing Director, Dr Maikanti Kacalla Baru; the Permanent Secretary of the Federal Ministry of Finance.

    Also in the board are Mallam Abba Kyari, Dr Thomas M.A John, Dr Pius O. Akinyelure, Dr Tajuddeen Umar, Mallam Mohammed Lawal, and Mallam Yusuf Lawal.

    President Buhari urged the new board to ensure the successful delivery of the mandate of the NNPC.

    The board, he said, should also: “Serve the nation by upholding the public trust placed on them in managing this critical national asset.”

  • FG assigns NSA to lead dialogue on Niger Delta crisis

    FG assigns NSA to lead dialogue on Niger Delta crisis

    President Muhammadu Buhari has appointed his National Security Adviser, Retired Gen. Babagana Mongunu to head the team that will dialogue with the warring Niger Delta militants.

    The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu broke the news to journalists in Abuja Monday.

    According to him, he is a member of the team which also includes the nation security and service chiefs and other stakeholders to distill military intervention in the area so that dialogue can take place.

    “We are making contacts with those involved that we can identify and through them to the ones we cannot identify so that there will be inclusiveness for dialogue. Our prayer is that this works so that we resort to dialogue instead of use of force to solve problems. ….it is always difficult when arms are used against fellow citizens whether by the militants or by the government, “he said.

    He however noted that the crisis in the region has culminated in a loss of 600,000 barrel per day.

    Kachikwu said that for the government to recover the lost barrel it has to first win back the hearts of the aggressive militants.

    He added that that he has always been of the disposition that government has to engage the unhappy citizens.

    Assuring the country that government is opened to dialogue, the minister said that “unless that the government is pushed to take extreme measures, the desire of his excellency, Mr. President is to try engage and dialogue with issues.

    “The President has appointed a team led by the National Security Adviser to head the process of a very intensive dialogue…and I am sure in the ensuing one week the intensity of that dialogue will ramp up.”

    Kachikwu said that intensity of the attacks was causing a lot of problems such as pollution and affects on consistent production.

    His words: “Coming to what is happening in Nigeria in terms of security challenges in the oil industry, over the last two months we have lost about 600,000 barrel from various attacks of militants in the area.

    “We are making efforts to see how we can get those back obviously and getting the barrels back is also getting the hearts of people back. My attitude has always been that when citizens are unhappy about something we try to engage.

    “And I know given the intensity of the attacks which is causing a lot of problems, both in terms of pollution and in term of continuity  of production and sanctity of career paths of the oil industry to what has been happening, the response has been to ensure adequate security coverage in those areas and for the safety of lives and property and equality to bring tranquility back to what is ordinarily a very serene and wonderful geographical space to be in.

    “I am from the Niger Delta and my first appeal is to my brothers who engage in those protests to sheath the sword and the dagger and then get back to the table so that we can have conversation as Nigerians. …the answer to the issues is not taking up of arms. The Federal Government is committed to continue this dialogue.”

    He stressed the fact that the President was interested in restoring peace to the Niger Delta, adding that Buhari has urged the use of every available opportunity to dialogue with the militants to end the matter.

    In terms of effects of the crisis on oil production, the minister said that “in terms of production, I think we are producing 1.5 and 1.6million barrel per day down from 2.2million of this year’s the basis of this year’s budget.”

    According to him, between now and August, if peace reigns, the sector would be able to raise the volume of production substantially.

    Kachikwu promised that the ministry and its related agencies would work hard to cover the gaps in a manner that the losses would not affect this year’s budget significantly.

  • CNPP to FG: Clarify fuel subsidy, price modulation

    CNPP to FG: Clarify fuel subsidy, price modulation

    The Conference of Nigeria Political Parties (CNPP) Sunday urged Federal Government to be more open about its decision on fuel subsidy.

    CNPP said that recent pronouncements by the Minister of State for Petroleum, Dr. Ibe Kachikwu have only served to create more confusion that profiteers would explore to unleash hardship on Nigerians.

    It said the explanation by Kachikwu on how government wants to modulate price without removing subsidy to achieve the proposed N85 pump price sounded questionable given that he has been oscillating between how subsidy is not being removed and how the same subsidy is not sustainable in view of economic realities on ground.

    A statement issued by CNPP’s Secretary General, Chief Willy Ezugwu warned that the group will not sit by and watch Nigerians suffer on account of: “a government that failed to properly articulate and think its policy through,”pointing out that the latest move by the government was reminiscent of the New Year subsidy removal gift under former President Goodluck Jonathan, which Nigerians vehemently rejected.

    It said the position announced by the Minister of State for Petroleum in recent days tended towards removal of subsidy despite the denials.

    The statement reads in part: “What we found most worrisome is that the Federal Government is tactically implementing fully deregulation of the sector beginning January 1, 2016 without announcing modalities for containing exploitative cabals that could sell petroleum products for four times the global average on account of the concept of free market.

    “It is on record that only Abuja and Lagos enjoyed the N87 price while the subsidy lasted as other towns and cities bought petrol for as high as N180 per litre. We have not heard the minister said anything about remedying this anomaly that would be further compounded by a deregulated oil industry.

    “The template announced by the minster implies a market driven pricing, which is potentially volatile, given the peculiarities of Nigeria and uncertainties on the international scene. But we have not also heard how the deregulation would be managed in a way that small and medium businesses that generate their own electricity would be insulated to prevent widespread collapse of businesses.

    “CNPP is concerned that low income earners could soon be faced with life threatening choices as they are forced to make decisions between spending all their earnings on transportation and going without food to keep their jobs or to make take other desperate options.”

    The conference condemned the inability of the government to bring closure to the fraudulent subsidy issue, which it has continued to pay out even as its senior officials acknowledge that there was no need for subsidies.

    “For the government to have paid out over N1 trillion this year and for Kachikwu to have emphatically stressed that there was no need to pay subsidy means that there is a level of collusion going on between the government and the subsidy cabal. This government has simply continued the subsidy corruption from where its predecessor handed off. Nigerians therefore want a probe of the subsidies paid under the present government.

    “The Federal Government must also immediately present plans of how it will protect Nigerians from the fuel cabal since they will naturally shift their attention to extorting the populace once there are no more subsidies,” the conference demanded.