Tag: Emmanuel Ibe Kachikwu

  • Kachikwu advocates Nigerian first in crude oil award

    Kachikwu advocates Nigerian first in crude oil award

    • Seeks five years timeline transformation plan

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on yesterday plans to ensure that Nigeria is investors’ first priority and that the nation also gives its citizenry first priority in the award of crude oil contracts: Direct Supply Direct Purchase (DSDP).
    He also revealed the plans to strategize for Nigeria to ‘capture’ of all African and Asia investments in the industry.
    The minister noted that owing to the saturation of the market in the US and other continents, Nigeria has to plan for product and regional specialization which is the  competitive advantage in the industry.
    He spoke in Abuja during the 6th Sustainability in the Extractive Industries (SITEI) conference that was organized by CSR-in-Action with the theme: “Building Local for Global.”
    Kachikwu insisted that Nigeria must secure investments for every quantum of oil and gas that is extracted in the two continents.
    According to him, Nigeria will on Monday host 19 African Oil Ministers in order to develop a relationship that will culminate in harnessing the potentials of the African oil and gas industry market.
    His words: “Nigeria is going to look at Nigeria first. What do we do to encourage Nigeria to participate in terms of incentives. It in this line, for example, you are going to have product specialization, sector specialization. We look at the areas we have competitive advantage in trade if oil and gas.
    “Why is it that up till now Nigeria has not been able to capture the African terrain of the market. We will still look at how we award our contracts so that the crudes whether it is the DSDP formulation, whether it is investments. What we are doing now is to bring together the African producers.
    “How do we ensure that the African market is first….By Monday we will be hosting the conference of 19 African Petroleum Ministers. The whole idea is to begin to put together the relationship net that will enable us to look at the African market.
    In the current very competitive environment you have to become sectoral in terms of regional  play.
    “There are new places springing up in terms of regional play. The only regions available are Asian and Africa. How do we ensure that every drop of oil that comes out Africa first of all comes to Nigeria? Every drop of gas that comes from Africa comes to Nigeria. These are the things that we and Angola are to decide. We are supposed to capture  that market. We are going to put together the resources.”
    The minister said for Nigeria to open its economy to foreign investors, it has to tackle security issue with the involvement of state policing and broader protection.
    According to  him, Nigeria needs to favour the local industries and every industry needs to be transparent.
    Kachikwu however called for consistency in policy formulation and vigilance in terms of  international conspiracy.
    Continuing, the minister submitted that : “In ending this, I will call for a five year time frame in which we strengthen our resource base, our economic base and getting our companies ready for international play. If we follow some of the things we have highlighted here we will begin to transform our economy.”
    He said that unless there is a deliberate approach to address the issues in the industry, transformation will not come by happenstance.
    In her address, the Convener and Founder of CSR- in -Action, Bakeme Masade, noted that Nigeria has allowed too many resources and potentials in the industry to fritter away.
    He said that this is the best time to galvanize resources towards establishing a framework that encompasses environmental management, human rights, community engagement and management of economic opportunities.

  • OPEC agrees to cut production by 1.2mb/d

    OPEC agrees to cut production by 1.2mb/d

    …Price may rise to $60p/b

    …Exempts Nigeria and Libya

    Members of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to cut production by 1.2 million barrels per day (mb/d) to bring its ceiling to 32.5 mb/d, effective from 1st of January, 2017.

    Nigeria’s minister of state for petroleum Emmanuel Ibe Kachikwu told journalists on the sidelines of after the meeting that “this production cut is expected to boost the price of crude oil in the market to around $60p/b in the next few days into the New Year when the cut is expected to take effect.”

    Addressing journalists at the end of the 171st conference in Vienna, Austria, Dr. Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and President of the OPEC Conference disclosed that the duration of the agreed cut will be for an initial six months “extendable for another six months to take into account prevailing market conditions and prospects.”

    The agreement he said was endorsed by member countries “to be without prejudice to future agreements with the establishment of a ministerial monitoring committee composed of Algeria, Kuwait, Venezuela and two participating non-OOEC countries, chaired by Kuwait and assisted by the OPEC secretariat to closely monitor the implementation of and compliance with the agreement and report to the conference.”

    Dr. Mohammed Bin Saleh Al-Sada stated that the agreement was “reached following extensive consultations and understanding reached with key non-OPEC countries, including Russia that they contribute by a reduction of 600 thousand (tb/d).”

    Following Indonesia’s refusal to agree to the cut, the Asian country suspended its membership of the organization while Nigeria and Libya still members of the organization were exempted from making cuts because of the peculiar economic and social challenges they were facing.

    Following the decision to cut production, Saudi Arabia will take, according to Dr. Mohammed Bin Saleh Al-Sada, the biggest cut of 486tb/d followed by Iraq with 210tb/d interestingly; Iran also agreed to take a cut of 90tb/d.

    Dr. Mohammed Bin Saleh Al-Sada also revealed non-OPEC country, Russia as part of its commitment to the agreement had agreed to a production cut of 300tb/d.

    The OPEC president said the conference took note of oil market developments since it last met in Algeria and reviewed the oil market outlook for the remainder of 2016 and 2017. The conference observed that global economic growth forecasts were reasonable for both 2016 and 2017 at 2.9% and 3.1% respectively, that non-OPEC supply is expected to contract by 0.8 million barrels per day in 2016, before returning to growth of 0.3mb/d in 2017with attendant world oil demand anticipated to grow at around 1.2mb/d in both 2016 and 2017.

    These numbers Dr. Mohammed Bin Saleh Al-Sada said “underscores that the market rebalancing is underway, but the with concerns that the Organization for Economic Cooperation and Development (OECD) and non-OECD inventories still stand well above the five year average.

    Dr. Mohammed Bin Saleh Al-Sada said the OPEC conference members “noted the drop off in investment levels in both 2015 and 2016 as well as huge layoffs the industry has witnessed in recent years and emphasized the importance of continued investments for an industry that needs regular and predictable investments to provide the necessary supply in the medium and long terms.”

    Asked of what the Organization’s reaction will be if some OPEC and non-OPEC players decide not to comply with the agreement, Dr. Mohammed Bin Saleh Al-Sada said “all indications that they will comply with the agreement is there with commitments from countries like Russia to do more than comply but also take production cut.”

  • Emmanuel Ibe Kachikwu and the burden of genius (2)

    •(Intrigues as petroleum minister grapples with challenges of office)

    Emmanuel Ibe Kachikwu is a supporting actor in President Muhammadu Buhari’s ‘change’ fiction or drama of ‘change’ if you like. At a glance, he seems an ideal ambassador of ‘change’ but has he the political and ideological bent to actualise Mr. President’s anti-corruption crusade in the oil sector? Has he the nerve to turn his office into something more than an economic labyrinth and political jailhouse? If he fails, his name and reputation will suffer for it.

    There is no gainsaying the Nigerian corridor of power is booby trapped to thwart genius. A rabble of genii has fallen in recent past to her decadent pleasures and cruelties. By their deeds, they become a profanation of sterling stewardship in public office. After Ngozi Okonjo-Iweala, Reuben Abati to mention a few, one gets the feeling that entrusting a genius with a Nigerian public office is an exercise in futility. It’s akin to tying the Mediterranean with palm fronds for storage against drought.

    Time was, when the argument was entirely against the ‘system’ thus making a case for the genius. But a new school of thought emerges and it advances the perspective that the genius should no longer be let off the hook by the simple technicality of his perceived powerlessness against a corrupt system and hostile work environment. That is simply one way to look at it and it is a grossly skewed portrait of the status quo presented in defense of the genius.

    Managing a public office is no walk in the park, particularly in Nigeria. Yet the Nigerian genius with an Ivy League education and impressive track record eagerly accepts to serve the country, with promises of hope and positive change. It is always fascinating to see such individuals however, morph into grotesque apparitions of the patriots they were meant to become. Annoyingly, they do so with unpardonable cheek and a swivel-it-finger-in-your-face stance.

    Kachikwu should be different. He should be that interpreter of ‘change’ who keeps his wits about him. He shouldn’t fall to the lure of the decadent and all powerful ‘system.’ Can he?

    His predecessors suffered irreparable loss of self. Kachikwu shouldn’t. Avarice, extreme confidence and god-complex are familiar hyper-states that destroyed preceding genii. These familiar evils stifled their minds and enslaved them to vulgar luxury and other unimaginable obscenities. Lots of promising folk have extinguished in name and status on this charred, crimson path. It takes a man of unusual integrity and strong personality to tower above such decadence.

    In the unfolding drama of ‘change,’ greed is the depravity that Kachikwu should shun. The ‘young oil Turks’ and the aging cabal dominating the oil sector have overtime, evolved an enduring culture of acquisitiveness, self-centeredness and mediocrity as the benchmark of stewardship and moral fibre in the sector. With the connivance of the immediate past administration, they created and sustained a daemonic lyre of gluttony and lust as the language of transaction and service in the oil industry.

    Consequently, the need for competence and accountability was serially altered into an imperial hankering for unearned dividends and mechanised pilfering. Public service in the oil sector thus split in two, taking on the forms of a vulgar gladiatorship by perverse civil servants and leisure-class banditry by aberrant oil magnates.

    At the twilight of the last administration, Nigeria came face to face with the garish licentiousness and dishonesty of the characters that ran the oil industry aground. President Buhari swore to retrieve the country’s looted funds from these bandit breed. To this end, the nation is treated to a tragicomedy of the feverish hunt and prosecution of culprits at home and abroad. While it is too early to give the president kudos for operationalising his anti-corruption crusade beyond platitudinous jingle, one cannot but appreciate the haunted glares of the culprits as they scurry for safe havens abroad, their trails littered with their plundered and pasty spoils.

    Kachikwu had better take in the imagery of nemesis and remorse. Let it guide him as he serves as the Minister of State, Petroleum Resources and Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC).

    Lest we forget Kachikwu’s assurance to Nigerians that although the challenge of cleaning NNPC will be a bumpy ride, it will be exciting. He promised that it will eventually yield positive results. Positive results for whom? It’s about time the NNPC boss understood that Nigerians are more aware and interested in their affairs. Nigerians are paying his salary and they deserve more than his subtle retractions and fragile excuses.

    Until the lingering fuel scarcity became the plague of the country, fuel was being sold at N86.50 per litre. That pleasing reality eventually morphed into a grisly and enduring nightmare. Nigerians expect him to evolve a regime that would make fuel more affordable to the citizenry and eliminate insititutionalised corruption in the NNPC. Nigerians expect him to furnish the country periodically, with details of the workings and actual proceeds of the oil industry. It is not only the president that he is accountable to in such respect. There are a lot of other products refined from the nation’s crude oil; in the spirit of accountability and his touted love of transparency, let Kachikwu furnish Nigerians with transparent account of the workings of the oil corporation periodically. Nothing should be done in secret anymore.

    It’s about time Nigeria stopped watching helplessly as her public officers, NNPC top executives inclusive, meet with oil magnates in hotel lounges and suites abroad – I hope Kachikwu really understands this. Any such meeting done in secret with a select few often reek of suspicious or malicious intent against the progress of the nation’s oil sector and the country in general.

    It could be rewarding fellating Kachikwu’s ego but that would be disastrous to his persona and career as a public servant. Nigeria needs Kachikwu to evolve and uphold professionalism and a moral culture impervious to degeneration and machinations of the oil industry’s bogeymen.

    If Kachikwu succeeds at his current brief, the ricochet of his exploits would serve a greater purpose than justifying President Buhari’s second term agenda, if actually the president nurtures any such ambition. Besides ameliorating the pains of the citizenry, his sterling success and patriotism at his job, will stand him in good stead for more significant leadership role in future. Kachikwu needs to evolve an enduring moral code unyielding to any baggage from his past – if any such baggage actually exists – and amenable to higher responsibilities in future.

    Agreed, moral codes could be somewhat obstructive, relative and counter-productive, particularly when pitched against a vicious circle of leeches and reprobates but ultimately, moral codes are of inestimable benefits to civilisation. Without them, we are vulnerable to the degenerate barbarism of gluttony, amorality and wanton tyranny of the self-seeking and covetous. It was a lack of moral code and personal ethics that ruined the names and reputation of immediate past genii in Nigeria’s power circuits.

    Picture a future with an unsullied Kachikwu, Okonjo-Iweala, Babatunde Fashola, Reuben Abati and their likes in sensitive public offices and as drivers of the Nigerian State. Imagine a future whereby such men and women are peacefully ushered off the corridors of power after meritorious service in the interest of the collective – that would be a future to die for no doubt.

    Kachikwu should understand that public service and valour need to be humanely planned, not cashed in upon or taken advantage of with a haughty smirk and condescending smile. There are all sorts of questions and consequences to ponder before the Minister of State, Petroleum Resources, adopts his next economically or politically expedient measure.

    Let’s hope Kachikwu understands that at the end, he would be judged by how adroitly he scorns or tones to minimum, the arrogance implicit in leadership and the corruption characteristic of power. Right now, Kachikwu is too ordinary. Nigeria needs him to be extraordinary.

  • Emmanuel Ibe Kachikwu and the burden of genius (1)

    •Intrigues as Petroleum Minister grapples with challenges of office

    In few months, Emmanuel Ibe Kachikwu will be seen as a national boon or disaster. He will be hailed as a round peg in a round hole or tirelessly maligned as the fig that lets down the leaf; the affliction that has to be concealed or expunged. Until then, Kachikwu will stew in metamorphosis. The Minister of State, Petroleum Resources and Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) dissolves into multiple identities characterised by the oil industry’s familiar bogeys, even as you read.

    His transformation is akin to Daniel Orowole Fagunwa’s mythical forest ghommid’s. Other beings pass through him  as if he were a wraith. He is like Fagunwa’s ghommid, who transforms into a tree, an antelope, a raging inferno, a bird, water and a menacing snake. While Fagunwa’s mythical creature assumes more or less the characteristics typical of its new category of being, Kachikwu struggles to preserve his individuality, mostly the capacity to think and act humanely, against the power and intimidation of Nigeria’s oil cabal.

    Yes, Kachikwu, despite his brilliance and touted vigour, may hardly be a match for Nigeria’s predatory band of oil Turks and cliques in the energy sector. But his office demands that he assumes a front, thus his frantic posturing and pretension to purpose and valour. It would be delightful however, to see Kachikwu succeed where his predecessors failed woefully but he needs generous doses of forthrightness to do that. He needs to be a man or the best form of public servant that his employer, President Muhammadu Buhari, wants him to epitomise. Can he?

    Despite his initial braggadocio or what is known in street parlance as Initial Gra Gra (IGG), Kachikwu seems woefully handicapped to effect the needed turnaround in the nation’s oil sector. Perhaps he isn’t, he simply glamourises the knack for making ill-advised commentary and pledges before assessing his capacity to withstand backlash and deliver on his words.

    Take for instance, his circus acts in the nation’s oil sector – his recent “I am not a magician” riposte to Nigerians groaning under the weight of the lingering fuel scarcity predates a recent report by The Cable, an online medium, that credited Kachikwu with the information that the nation’s refineries are working at 30 percent capacity as against the minimum 60 percent required to generate profit.

    He was quoted thus: “Personally, I will have chosen to sell the refineries, but President Buhari has instructed that they should be fixed. After they are fixed, if they still operate below 60 per cent, then we will know what to do…The 90-day ultimatum for the refineries to be fixed will end in December and Port Harcourt Refinery looks like the only one that will meet the deadline, but we will wait and see what happens at the end of the 90 days.”

    It is over 90 days and if you take the pains to skim over the folds of officialese and doleful cliffhanger nuggets contained in his disclosure, you just might find that Kachikwu may have tacitly prepared our minds for one of his several failures or his only failure perhaps. Earlier, he said 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,” Kachikwu stated, explaining that the new refineries will be developed by private investors and that NNPC will simply provide them spaces close to the existing refineries to enable them share key facilities such as pipelines and storage facilities.

    If you consider this in light of his alleged preference for selling off the refineries, you could be forgiven for getting lost in the NNPC head honcho’s maze of double speak and embarrassing retractions. Following his recent cancellation of the oil swap deals instituted by the immediate past administration of President Goodluck Jonathan and his Petroleum Minister, Diezani Alison-Madueke, the NNPC boss did a cartwheel to tactfully rescind his decision.

    Apologists of Kachikwu claimed he was only doing the president’s bidding but critics of the NNPC boss earnestly aver that President Buhari couldn’t have taken the decision without the knowledge and approval of the NNPC boss. Whatever the case, Kachikwu is either a talisman that the presidency reckons with or a human sound bite employed to unquestioningly rubber-stamp Mr. President’s caprices. Is he?

    It would be recalled that major oil tycoons became jittery and desperate to save their businesses in the wake of the NNPC’s cancellation of Offshore Processing Agreements (OPAs) and Crude Oil Swap (COS) deals entered with them. This was because their businesses plummeted in the absence of the several shady deals entrenched by the immediate past corrupt regime. Likewise, the federal government placed a ban on 113 oil vessels for perceived infractions. The presidency has since lifted the ban on the 113 tankers and the NNPC has tacitly reinstituted the controversial OPAs and COS, it would seem.

    Earlier, the Ahmed Joda-led Presidential Transition Committee had recommended to President Buhari to carry out a comprehensive audit of all OPAs and COS deals entered by the NNPC. The committee said the audit would help government identify and claim any reimbursements for excess crude oil lifted under the controversial OPA and swap arrangements to establish the quantity of products delivered based on a fair and transparent audit process. Kachikwu subsequently hinted that all Production Sharing Contracts, (PSCs), Joint Venture Contract Agreements (JVCAs) and all other contracts between the NNPC and its various partners would be reviewed to reflect actualities in the global oil and gas industry. He stated that as part of the measures to optimise the marketing of Nigeria’s crude oil and secure new market potential, the number of off-takers for the proposed 2015/2016 term contracts, which would emerge after a planned rigorous competitive bid had been pruned from 43 to 16. The corporation however, extended invitation to few oil companies affected by the cancellation of the deal.

    Despite Kachikwu’s show of running the process in the spirit of transparency, fears abound that the he is impotent against the intimidating clout and pressure from certain quarters that he favoured the same corrupt oil firms responsible for the misfortunes bedeviling the nation’s oil sector.

    Given his sterling achievements in academia and the private business sector, Kachikwu seemed every inch capable for the onerous task of sanitising the grossly corrupt and ailing oil sector, at his appointment as Minister of State, Petroleum Resources and NNPC boss. A doctor of Law, Kachikwu graduated with distinction from the University of Nigeria (UNN) Nsukka and he was the best graduating student from the Law School, winning seven of the available nine prizes in 1999. He holds the LLM Harvard Distinction and was best graduate in 1980 with specialisation in Energy, Petroleum Law and Investment. Kachikwu has more than 30 years experience in policy- making positions in the petroleum industry serving in various capacities thus he seems well equipped for the job but for a snag, he is a Nigerian genius.

    Nigerian genii seldom fluorish in public office. Ultimately, they serve as puppets or impractical characters enabling the greed and mediocrity of their principals or associates in corridors of power. Kachikwu, like such genii, has betrayed little character or justifiable individuality so far.

    However, in the wake of his controversial “I am not a magician” statement and his subsequent apology, Nigerians, despite their impatience, need to exercise greater patience with him. His high office couldn’t have obliterated his fabled genius, as it did, the smarts of his predecessors after all.

    Yet if a public officer truly reflects the character of his principal or employer, the presidency becomes the teat from which Kachikwu sucks his new identity. The impact so far, has been enlightening. Nonetheless, Kachikwu is either a failure or success in process.

     

  • The man Emmanuel Ibe Kachikwu

    The man Emmanuel Ibe Kachikwu

    EMMANUEL Ibe Kachikwu, a doctor of Law, graduated with distinctions from the University of Nigeria Nsukka and the best graduating student from the Law School, winning seven of the available nine prizes in 1999.

    He holds the LLM Harvard Distinction and was best graduate in 1980 with specialisation in Energy, Petroleum Law and Investment.

    Kachikwu set a record with a Ph.D/SJD Harvard Distinction, specialising in Petroleum and Investment Law Strategie after completing his doctoral thesis in a record time.

    With a H.Dip.T.L from Georgetown, the United States of America (USA), the new NNPC chief executive is a Fellow, Society for Corporate Governance (FSCG); Chartered Institute of Arbitration (FCIArb); Chartered Institute for Petroleum Policy (FCIPP) and a Visiting professorship in various universities in the world including Harvard Law, his alma matter.

    Kachikwu has more than 30 years experience in policy- making positions in petroleum industry including; General Counsel/Legal Adviser, Texaco Nigeria and Texaco Overseas Petroleum Co (1984 -1994); General Counsel/Secretary, Mobil Producing Nigeria Unlimited (2001); Executive Director, ExxonMobil Group of Companies (2003).

    He has been the Executive Vice Chairman/General Counsel, ExxonMobil Companies in Nigeria and Oversight Counsel, ExxonMobil Companies in Africa since 2009.

    His accomplishments include the authorship of several law books. He authored the best seller – Nigerian Foreign Investment Law and Policy and more than 20 publications.

    Kachikwu Influenced over $10 billion investment from ExxonMobil Group into Nigeria and other African countries.

    It is on record that he set major policy planks on, government relationship, investment policy and corporate governance for ExxonMobil in Africa and member of many highly influential policy and investment teams for ExxonMobil Corporation.

    He served as a lead negotiator on diverse issues for ExxonMobil in Africa including conclusion of Lease Renewal Negotiations for Mobil Producing and facilitated solid contacts in Global Energy Sphere with contacts to most Chief Executive Officers (CEOs) of multinational petroleum corporations and secretaries of energy for key national country players for more than 25 years.