The Nation Newspaper

Tag: Dr. Ibe Kachikwu

  • Oil swap: Reps caution Kachikwu

    Oil swap: Reps caution Kachikwu

    The House of Representatives has expressed reservation over the capacity of the present managers of the nation’s oil and gas industry to reposition the sector.

    The lawmakers’ position followed the failure of the Minister of State for Petroleum Resources and Group Managing Director (GMD) of the Nigerian National Petroleum Corporation  (NNPC), Ibe Kachikwu to provide satisfactory answers to questions during an ongoing investigation on oil swap arrangement.

    The Minister drew the anger of the Committee following his repeated attempt to evade questions with vague answers on how beneficial was the oil swap arrangement.

    The Committee also asked the Minister to inform it on the extent due process was adhered to during the bidding process, in addition to what might have led to the circumstances that determined the agreements at the time.

    The Committee however lost its patience with the Kachikwu, when he asked his surbodinates not to commit themselves to figures they were not sure about when responding to Committee questions.

    The Minister was reminded that he was on oath and needed to take responsibility, even as he was new on the job, that his posture might not help the Committee in its assignment.

    He was also told that he has the advantage of subordinates at his disposal to assist in furnishing him with necessary information rather than put the Committee on a tight spot.

    Kachikwu, who disclosed that the country has stopped paying subsidy for fuel from paying over N1 trillion in 2015, however insisted that he could only offer what he was sure of, saying “I was invited here without adequate preparation and without notes.

    “There is nothing I have said here that does not show cooperation. Being under oath, I won’t give you what I don’t have facts about, what I expect you to ask from us are documents that we can provide later that will assist this process.”

    He later assured the Committee of his cooperation in the investigation.

    At this point, the Committee reminded him that the invitation letter was explicit about the issue on the table.

    The Committee however mandated the Federal Inland Revenue Service (FIRS) to find out whether a Netherland company, Trafigura Ltd, a non-resident oil trading company complied with Nigeria’s tax laws having lifted 12.5 million metric tons of crude oil in the swap arrangement without paying relevant taxes.

    The Committee was surprised that Nigerian companies that were involved in the same arrangement paid their taxes while a foreign company would prefer to short change the country where it was doing business.

  • Kachikwu drafts NNPC workers to fuel stations

    Kachikwu drafts NNPC workers to fuel stations

    • Dispatches 567 petrol trucks nationwide

    TO ensure total eradication of queues from fuel stations across the country, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has ordered the deployment of workers of the Nigeria National Petroleum Corporation (NNPC) to filling stations across the country to effectively monitore  the fuel distribution system.

    Speaking at an emergency meeting with senior members of staff of the corporation at the NNPC Towers, Abuja, Kachikwu said though there were a number of challenges in the supply and distribution chains that hampered efficient distribution of products nationwide, it was time for the Corporation to rise above the challenges by ensuring that the special intervention supplies are not diverted, or hoarded.

    He said in continuation of the special intervention fuel supply for the Yuletide season, another 567 trucks were dispatched nationwide yesterday.

    In a statement signed by the Group General Manager, Group Public Affairs Division, Ohi Alegbe, the Minister said the situation calls for effective monitoring of the supply system, “especially at the end points, to ascertain that what is trucked out from the depots is delivered at the designated fuel stations and dispensed to the public in the most efficient manner. We need you to be out there to help achieve this; we can’t be at ease while Nigerians are going through so much pain to get fuel.”

    He challenged the workers to volunteer for the monitoring exercise, adding that standing up to provide creative solutions to challenges is what the new NNPC is all about.

    Kachikwu urged the workers to work towards achieving zero-queues at their respective stations as soon as possible, adding that they should be ready to sacrifice their Christmas break, if need be.

    Also speaking at the emergency meeting, the Group Executive Director, Commercial & Investment, Dr. Victor Adeniran, urged workers on monitoring duties to work closely with the Rapid Response Team, by reporting any situation that needs urgent intervention such as low stock, delayed arrival of trucks or any underhand dealing.

    He said the Rapid Response Team is made up of Pipeline, Product Marketing Company (PPMC) workers and representatives of law enforcement agencies that can adequately handle any challenge, adding that so far, about 200 trucks of the special intervention stock have arrived Abuja.

    He urged the workers  to be vigilant and ensure that all the fuel trucks designated for their respective stations are delivered and dispensed to members of the public in a most efficient manner.

  • NNPC orders special supply of petrol for hitch-free Yuletide

    NNPC orders special supply of petrol for hitch-free Yuletide

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has directed relevant agencies to embark on special supply of petroleum products to ensure country-wide availability at Yuletide.

    This is contained in a statement signed by Ohi Alegbe, Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, in Abuja on Sunday.

    The agencies are Pipelines and Products Marketing Company and Petroleum Products Pricing Regulatory Agency.

    It said the special supply intervention mechanism would entail the ramping up of additional supply via massive truck-out to guarantee product penetration to the nooks and crannies of the country teed-off over the weekend.

    It added that daily fuel truck out to Abuja, Kaduna, Kano, Enugu, Ibadan and Jos had been increased significantly to enhance free flow of products across the country.

    “NNPC is consolidating its strategic alliance with some major depot owners and oil marketers with strong regional logistics outlay in those areas to ensure maximum infiltration of products.

    “The collaboration would be especially in the hinterland ahead of the Christmas and New Year festivities.’’

    It called on the public to refrain from hoarding, diversion and panic buying of product.

    It added that the intervention measure would help circumvent the challenges posed by the unavailability of pipelines for the transportation of petroleum products.

    It noted that product diversion was an economic crime and warned that it would not hesitate to report offenders to the security agencies for prosecution.

  • Kachikwu urges greater cooperation among African oil producers

    Kachikwu urges greater cooperation among African oil producers

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu yesterday urged  member countries of the African Petroleum Producers Association (APPA), to close ranks and bring their influence to bear on the global oil and gas market.

    Speaking at a media briefing to herald the  sixth Africa Petroleum Congress and Exhibition (CAPE Vl) billed for Abuja from 15th – 17th March, next year, he  said it was high time APPA members rallied round to forge common positions on critical areas of mutual interest to galvanise their stakes especially in the Organisation of the Petroleum Exporting Countries, (OPEC).

    “APPA needs to meet more often, strategise more often and speak with one voice,” he said.

    Dr. Kachikwu also urged  APPA member countries to resist the temptation of being over-competitive among themselves so as not to deplete their strength in OPEC and other global oil and gas organisations.

  • How Nigerians feel about fuel scarcity


    [news_box style="2" display="tag" link_target="_blank" tag="Fuel Scarcity, Fuel, Scarcity" count="6" show_more="on" show_more_type="link"]

  • NNPC to review deep offshore production agreements

    NNPC to review deep offshore production agreements

    The Nigerian National Petroleum Corporation (NNPC) is set to revisit the fiscal terms of the existing Production Sharing Contracts (PSC) entered into by -the Corporation with some International Oil and Gas Companies with a view to seeking favorable benefits to Nigeria based on prevailing realities in the industry.

    Speaking Tuesday at the France-Nigeria Business Forum organized to mark the State Visit of President Muhammadu Buhari to Paris, France, Dr. Ibe Kachikwu, Group Managing Director of the NNPC disclosed that in the weeks and months ahead the Corporation will be re-negotiating the contracts to extract as much benefit as possible for Nigeria.

    Dr. Kachikwu noted that though the PSC agreements are firm contracts which should be adhered to, the NNPC is allowed to make use of the window which creates space for re-negotiation.

    A statement from the Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe that broke the news yesterday quoted him as saying: `We intend to begin the process of the re-negotiation of the PSCs to see what value chain and improvements we can have from these contracts. Some of the contracts were negotiated over 20 years ago and they have since been overtaken by new realities in the industry.”

    He however noted that in carrying out a review of the existing PSCs, care must be taken not to create an anti-investment atmosphere as that may be counterproductive to the industry.

    On the status of France-Nigeria relations in the oil and gas industry, Dr. Kachikwu noted that though the French have a firm presence in the Nigerian petroleum industry, there is still room for French companies to rev up their presence in the refining areas where Nigeria currently needs support.

    “There is no country in Africa that has the kind of resource base Nigeria has; So France really needs to get more bullish if they want to compete in Nigeria with the very aggressive India, China, Germany … It’s a huge competition and I am looking forward to better days ahead,’’ he said.

    On the ongoing reforms of the Nigeria oil and gas industry, the NNPC GMD stated that the global oil and gas community is showing unmatched excitement about the re-invigoration of the industry.

    “ There is a lot of interest in our quest to seek joint ventures across the value chain; there are huge potentials across board and all we need to do is to galvanize the efforts to get the best out of it,’’ he said.

    Dr. Kachikwu noted that President Buhari’s vision for the industry is absolutely on track. “It is being honed every day: there is focus, transparency and diversified income streams.”

  • Kaduna refinery to operate optimally – Kachikwu

    Kaduna refinery to operate optimally – Kachikwu

    The Group Managing Director of the (NNPC), Dr. Ibe Kachikwu, has assured that the corporation will provide all the necessary enablers to make Kaduna Refining Petrochemical Company (KRPC) operate commercially and optimally.

    Dr. Kachikwu gave this assurance Thursday during a facility tour of the refinery in Kaduna, according to a statement from the Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe.

    He noted that the refinery will soon experience a turn around that will make it to be commercially sustainable.

    Addressing the KRPC staff, Kachikwu said “You will soon have a different company; we must do all it takes to make this company a success.”

    The GMD noted that all the component units of the refinery including the Fluid Catalytic Cracking Unit (FCCU) as well as the fuel section will be fully rehabilitated for resumption of crude supply to the plant.

    “We must make the FCCU and the fuel section to work in the next three months so that Nigerians will continue to enjoy uninterrupted supply of petroleum products,” he said.

    Addressing Management and staff in a town hall meeting after the tour, the GMD said: “A lot of energy is being invested to give an accelerated face lift to the refinery”, adding that no stone would be left unturned in his determination to put the plant on the path of profitability.

    The GMD pointed out that though the current challenges militating against the operations of the refineries are huge, they are not insurmountable.

    [ad id=”403656″]He praised the vision and foresight of past Nigerian leaders for establishing the refineries and challenged the present generation to sustain the vision, adding that all hands must be on deck to salvage the situation.

    He further disclosed that in view of the nation’s low refining capacity, there was need to establish more refineries in the country.

    “I am pushing to build new refineries next to our existing plants in order to boost the nation’s refining capacity for the common good”, Dr. Kachikwu stated, explaining that the new refineries will be developed by private investors and that NNPC’s role will be just to provide them with space close to the existing refineries to enable them share key facilities such as pipelines and storage facilities.

    The NNPC GMD promised to undertake periodic visits to the refineries in order to galvanize the process of bringing them to optimal level of efficiency.

    In his remarks, the Group Executive Director, Refining & Technology, Engr. Dennis Ajulu, expressed optimism in the ability of the NNPC to rise above its challenges and reposition itself on the path of profitability.

    On his part, the Managing Director of KRPC, Engr. Saidu Mohammed, said the staff of the company were fully aligned to the vision of commercialisation and that they would support the GMD in that drive.

  • NNPC deploys drones to monitor movement of oil vessels

    NNPC deploys drones to monitor movement of oil vessels

    Fresh vista to the fight against the perennial problem of oil theft and pipeline vandalism appeared on the horizon Tuesday with the disclosure by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu that the Corporation is working towards the deployment of drones across the nation’s territorial waters to monitor the inwards and outwards movement of oil bearing vessels.

    In a presentation at the special conference on Security in the Gulf of Guinea organized by the Gusau Institute, Dr. Kachikwu stated that the Corporation is working on a range of far reaching options designed to end the ugly episodes of crude and petroleum products theft within the next eight months.

    The press statement of the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe quoted the helmsman as saying: “We are launching an armada of approaches which will include incorporation of drones to check movements of vessels within our territorial waters; We are looking at the current logistical nightmares of changing staffing at the loading bay of crude oil export terminals virtually every 90 days, We are trying to equip the navy sufficiently though they are very well equipped in terms of skill set but not in terms of arsenal for patrols within the maritime area.”

    On the issue of pipeline protection, the GMD explained that though the Corporation is working assiduously with the law enforcement agencies to increase the presence of military personnel in the area, the ultimate security for the critical oil and gas assets lies squarely with the host communities.

    “The best security for these pipelines lies with the communities. We are trying to create enough incentives for them to see these pipelines as their own,’’ he said

    Lamenting the impact of oil theft on the smooth operations of the nation’s refineries, the NNPC GMD warned that if left unchecked, the menace could invariably make it impossible for the NNPC to operate the refineries.

    “Most of our product pipelines are ruptured and attacked frequently. For instance between June 2014 and June 2015, we recorded about 3, 500 to 4,000 attempts at the various products pipelines across the country. In addition to that, the pipelines that are supposed to convey crude to the refineries are perpetually hacked, ’’ he added.

    Dr. Kachikwu noted that the resort to the use of marine vessels to convey crude to the refineries is coming at heavy cost.

    “What this means is that no matter what we do with the refineries today, unless that is solved, we really are going nowhere, we cannot operate the refineries.”

  • U.S okays reforms in NNPC

    U.S okays reforms in NNPC

    The United States Government has pledged its readiness to work with the new management of the Nigerian National Petroleum Corporation in achieving the Federal Government’s reform agenda in the oil and gas industry.

    Speaking during a courtesy call on the Group Managing Director of NNPC, Dr. Ibe Kachikwu, at the corporation’s headquarter in Abuja, Thursday,  the U. S Ambassador to Nigeria, Amb. James Entwistle, said his country is willing to provide all necessary support to the new NNPC management to realize its goals and objectives.

    The Group General Manager, Group Public Affairs Division of NNPC, Mr. Ohi Alegbe, made this known in a statement on Thursday.

    Entwistle noted that although the job of the GMD of NNPC is about the most challenging job in Nigeria, the U.S is convinced that Dr. Kachikwu has the skills, training and requisite experience to lead the oil and gas industry in Nigeria towards the path of growth and sustainable development.

    Commending the U.S for the pledge of support, Dr. Kachikwu reiterated the determination of the new management to implement President Muhammadu Buhari’s reform agenda in the petroleum industry.