The Nation Newspaper

Tag: Ibe Kachikwu

  • NNPC School hike: Buhari, Kachikwu called to intervene

    President Muhammadu Buhari has been urged to intervene on the staggering hike of tuition fees in the Nigerian National Petroleum Corporation (NNPC) Leadership Academy, Warri , Delta state.

    Pupils of the school, through a representative of their parents, Mr. Patrick Edema, made the call Tuesday in Warri.

    According to the learners, who also appealed to the Minister of State for Petroleum, Dr. Ibe Kachikwu, to step into the matter, increasing the fees mid-session may increase the financial burden on parents who had taken loans to ensure their school fees payment for the entire session.

    Describing the sudden increment as highly insensitive, considering the current economic hardship across Nigeria, they pointed out that the increase came in just two days to resumption of the present term.

    Read Also: Buhari to Ngige: end ASUU strike immediately

    The NNPC Leadership Academy, Warri, had allegedly increased tuition fees by 200%, giving parents barely 48 hours notification via SMS.

    However, the learners commended the management of the NNPC for subsidizing the school fee all these years.

    Remarking that it (school’s management) has the right to review the fees of the academy, they opined that it should be done at the beginning of a new session, adding that such way, parents will get ample notice.

    They also stated that refusal to review the decision may lead to mass withdrawal of pupils from the school which may lead to complete closure of the school.

    Further emphasizing that over ninety percent of pupils of the school are children of host communities, they charged President Buhari and Dr. Kachikwu to prevail on the management of NNPC to maintain the status quo.

  • OPEC unites on oil market stability

    …as Saudi minister meets Kachikwu

     

    Ahead of the December 7 meeting of the Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna Austria, the members were united on bringing back stability to the oil marktet, said the Minister of Petroleum, Industry and Minerals Resources, Kingdom of Saudi Arabia, Engr. Khalid Al-Falih on Wednesday.

    Speaking in a meeting with his Nigerian counterpart, the Minister of State for Petroleum Resources, Dr. Emmmanuel Ibe Kachiwkwu in Abuja, the visiting minister said that he was in Iraq, Avogabe, Libya and also discussed with some other ministers, who were all longing to return stability to the oil market.

    He however noted that the way and manner of realizing the much needed stability was what they were yet to discuss, stressing that the December 7 meeting would determine that.

    His words: “I have been to Avogabe, I have been to Iraq,  have been in Nigeria today. I have also met with the Libyan National oil company head to have a delegation. I have received calls from a number of ministers. And everybody is longing for everything that brings stability back . What that decision will be I cannot say. But the decision is going to be made on December 7.”

    He added that it would be premature what the decision would be since taken at the meeting as there was yet no clarity and the barrel to market was not helpful in the last three weeks.

    He was confident that the 25 countries would want to agree and the technical committee would meet to receive the analysis from the organization’s technical advisers.

    Read Also: ‘OPEC’s output highest since 2016’

    Collaborating his position, Kachiwkwu said that OPEC members were already speaking with one voice in order to bring back oil stability. According to him, the organization accounts for not more than 35% of global oil output, although the world looks up to OPEC whenever there is volatility.

    He said ultimately every oil producer would like to have an interest in contributing to the stabilization of the oil market.

    Kachikwu noted that his colleague from Saudi Arabia had driven the confidence that all oil producers needed to work together. He added that on his own, he had brought the African producers to support whatever direction OPEC would take.

    He said that “ultimately, the work we are doing in OPEC bloc is that we are bringing countries other than OPEC to see how their contributions can be helpful in the control and stabilization of the market that we will continue to be relevant.”

    He explained that the visit of the Saudi Arabian’s minister was not focused on refining of petroleum, adding that refining was only a side conversation that they had.

    Kachikwu revealed that the meeting was simply on what they would do at the upcoming OPEC meeting.

    The minister however noted that the two countries shared their refining experiences in order to appreciate how his guest’s country accomplished its present feat in refinery.

    He submitted that “no formal thing has been agreed yet but willingness to cooperate with one another. These are usually very strong business decisions. And at the appropriate time we will nose dive into the details of that.”

    Engr. Khalid Al-Falih, said “I have invited his excellency to kindly come and see first-hand the manufacturing complexes and at the same time see our team, and how the investment opportunity can be brought to bear in Nigeria.”

    According to him, the country’s company is the largest as the upstream company and has seen Africa as a very vital market to invest in, and “there is no better place to start than Nigeria.”

    He said that the country was looking forward to investing in gas to power , especially in Africa.

    The Saudi Arabian minister said that “in terms of bilateral energy relationship, I will say that there are too many areas in which Saudi Arabia has become successful to a large degree, attaining a deficit in a few projects by becoming a major export by building a number of large refineries, world scale refineries through a joint venture investments and funding and skills from foreign direct investments. There is technical success. There is finances success for Saudi Arabia becoming a major exporter of a value added crude products and petrol chemicals.”

    He noted that during his next visit to Nigeria, he would explore the opportunities in refining, petrochemicals and gas to power to bring development and opportunities to Nigeria and Africa.

    Kachikwu said that from Europe to Latin America everyone investing in Africa promised funding or technology, challenging the Saudi Arabia totals a cue from China that was already making wave around the world.

    He however explained that the investment that Saudi Arabia was promising to explore in Nigeria was not a gift.

     

  • PIB: Kachikwu commends PENGASSAN

    The Minister of State for Petroleum Resources Dr Ibe Kachikwu, has commended the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for their contribution on the Petroleum Industry Bill (PIB).

    Kachikwu gave the commendation at the  Department of Petroleum Resources (DPR) PENGASSAN branch 5th  Triennial delegate Conference, in Abuja on Tuesday.

    The Minister was represented by Ibrahim Mairiga, Director Human Resources,Ministry of Petroleum Resources.

    ” I am happy with the relationship the union have with the ministry, DPR management and the  role it has played in the oil and gas sector in general.

    ” The ministry is also pleased with your contribution in the PIB, it was helpful for the National Assembly in carrying out their duty especially on ensuring that independent regulator emerges, ” he said

    He urged the new executives that would be elected after the conference to continue the good work for the growth of the sector as well as the country.

    In his remarks, DPR Executive Director, Dr Mordecai Ladan also commended the union members for their contribution in ensuring global best practices in the department.

    ” Your contribution has helped us to achieve so much as a regulator and I want you to keep it up.

    “I know we have made some decisions that are not palatable for the union but all was for the interest of the country and the sector.” he added.

    He urged the incoming executives to take a leaf from the outgoing member to ensure continuity in the system.

    Also, in his welcome address, the DPR Branch Chairman, Bello Garba said the union had collaborated with management in moving DPR forward.

    He said the union had continued to play very constructive role in protecting and strengthening the workforce which had contributed to positive results.

    “Overtime, unionism has changed remarkably in response to the major challenges and needs of members, particularly in the area of welfare and Nation building.

    ” I wish to point out that the union must be alive in proffering and supporting moves to better the situation in our nation, while maintaining it’s relevance as a pressure group.

    ” Therefore, it will be pleasing if we are able to achieve consensus on having well equipped and empowered. independent regulator, ” he said.

    According to him, it will culminate to a one-stop-shop for accelerating economic growth and development of Nigeria at large and the oil and gas industry in particular.

    He thanked members for the support they gave the union in the past three years. (NAN)

  • FEC okays $64m contract for Escravos power supply

    The Federal Executive Council ( FEC ) meeting on Wednesday approved $64 million for power supply to Escravos communities.

    This was disclosed by the Minister of State for Petroleum Resources, Ibe Kachikwu, at the end of the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    According to him, if executed, it will stop the N18 million spent monthly by the Nigerian National Petroleum Corporation (NNPC) to provide power to the area.

     

    Details Later…

  • Flood: Kachikwu donates to Delta IDPS

    Minister for Petroleum (State), Dr. Ibe Kachikwu, has donated relief materials to internally displaced persons affected by flooding in Delta State.

    Kachikwu made the donation on Saturday during a visit by the to the Julius Berger IDP Camp in Asaba.

    Items  donated included cash amounting to N1 million, bags of rice and other food items.

    Kachikwu in his speech, sympathized with members of the camp stressing that he as well as the government shared their pain in what he described as a most trying time in their existence.

    Read Also: No plans to sell NLNG – Kachikwu

    According to him, there is need for government to look into resettling the displaced persons. “The people are living in shanties. They obviously need to be resettled. The federal govt will support them. We will look into resettling people.”

    “I am here to see and understand the situation to enable us better intervene. The vice president was here yesterday. This is my personal contribution. It concerns me because in my soil.” Kachikwu stressed.

    Chairman of the Camp, Chief Samuel Obi who received the items on behalf of the members commended Kachikwu for the effort.

    He assured the minister of judicious use of the items even as he urged the government to intensify efforts in ensuring palliative measures for flood probed zones. ”

    He said, “We are very grateful. We didn’t expect it.”

  • Group threatens to sue EFCC over alleged coverup of case

    An anti-graft group, the Patriots of Anti-Corruption League (PAL), has threatened to sue the Economic and Financial Crimes Commission ( EFCC ) if it fails to commence prosecution against the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, in a case of alleged corruption.

    The group, in a petition addressed to the Acting Chairman of the EFCC, Mr Ibrahim Magu, also threatened to sue the commission and its chairman if the minister and six others were not charged to court within 14 days of sending in the petition.

    According to the petition, signed by Kingsley Arthur, Director of Investigation and Dedekuma Orumbo, Media and Publicity, a copy of which was made available to the Nation, the commission had in 2016 investigated a case of suspicious banking transactions, involving companies that participated in petroleum subsidy fraud.

    It cited four perons; Emmanuel Ibe Kachikwu, Dumebi Kachikwu, Bukola Olatumbo Ayinde and Ahmed Aminu; and three companies; Accelerated Building Technologies Limited, Netlink Technologies Limited and Dutchess Energy Limited as the subjects of the investigation.

    The petition alleged that the EFCC, having concluded its investigation on the matter since 2016, had foot-dragged on taking the next line of action, which ought to have been the prosecution of the persons and companies involved.

    According to the petition, failure of the commission to take steps to action on the concluded investigation would cast a shadow on the identity of the Muhammadu Bihari administration’s anti-corruption crusade, which had endeared the country and its leader to other developed world leaders.

    “In your investigation report it is clearly stated that investigations have established the private account as a “conduit and money laundering”. It is evident and incontrovertible that there lies therein enough evidence to prosecute these persons in a competent court of Law for money laundering.

    “Mr Chairman we are writing to lend our voice of disgust to the delay in bringing these culprits to account. In the fight against corruption in this present administration there should be no sacred cow. (These are the words of Mr President) and it is important all people of goodwill should encourage, support and abide by this and stand with Mr President.

    “Mr Chairman your refusal or lukewarm attitude not to arraign these persons will surely put a dent and bring disrepute to the President Mohammadu Buhari’s much touted Anti-corruption fight before Nigerians and the international community”, the petition observed.

    It, however, requested that “the persons and companies herein mentioned be arraigned in a competent court of law without further delay”.

    It also warned “in view of the foregoing we are issuing a 14 days ultimatum to the commission to show cause why these persons and companies should not be arraigned in a court of competent jurisdiction, without which we shall have no option than to drag your good self and the commission to court to show reasonable cause why a mandamus should not be served on the commission and your good self”.

  • FG denies alleged plans to sell NLNG

    The Federal Government on Tuesday, denied that there were plans to sell the Nigerian Liquefied Natural Gas Limited (NLNG).

    Minister of State for Petroleum Resources, Dr Ibe Kachikwu, debunked the allegation during an investigative hearing by House of Representatives Committee on Gas Resources and Allied Matters in Abuja.

    Kachikwu, who was represented by Director, Gas Resources in the ministry, said that they were not aware of any plans to sell NLNG by the Federal Government.

    The News Agency of Nigeria (NAN) reports that the documents submitted by the ministry and Nigerian National Petroleum Corporation (NNPC) on the issue, though harmonized, were not accepted by the committee because of identified issues.

    The committee discovered irregularities in the documents as presented by NNPC’s Chief Operating Officer (Upstream), Mr Bello Rabiu, who represented the Group Managing Director (GMD), Baru Maikanti.

    The committee also pointed out that the documents were not authenticated as they were unsigned.

    This was in spite of the explanation by representative of the GMD that the documents may be different but that the figures were the same.

    Also, the lawmakers queried NNPC and the Petroleum Ministry over some increases in the upgrade contract of OML 58 and the execution of the Northern Option pipeline.

    NNPC was said to have entered into a Joint Venture with Total Exploration and Production Nigeria Limited (TEPNG), with a Modified Carry Agreement.

    The agreement entailed the award of contract to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite-Ubeta-Rumuji pipeline in 2010, and the Northern Option Pipeline in 2011.

    But, Rabiu defended NNPC, telling the lawmakers that no money had been paid on the variations.

    Chairman of the committee, Rep. Fred Agbedi, said though the Parliament made the laws, it did not say that the contractor should be “employed as a learning curve,” adding that the contract value was “too staggering’’.

    He requested that the committee wished to see resolutions of NNPC and Total Board of Directors on the contract before it was awarded to ensure that they complied with procurement laws.

  • No plans to sell NLNG – Kachikwu

    Reps query $1. 15bn variation of NNPC JV Contracts

    The federal government has denied that there are plans to sell the Nigerian Liquified Natural Gas Limited, NLNG.

    This fact came to light on Tuesday as  the Minister of State for Petroleum Resources, Ibe Kachikwu debunked the allegation during an investigative hearing on  three motions by the Fred Agbedi- headed House of Representatives committee on Gas Resources and Allied Matters.

    “We are not aware of any plans to sell LNLG by the federal government.” Kachikwu said Tuesday at the hearing which amongst other issues was addressing the “Need to stop the sale of the Nigerian Liquified Natural Gas Limited.”

    The minister was represented by Mrs. Esther Ifejika, director Gas Resources. The Director was emphatic when she was questioned by the committee members on the alleged plan to sell the NLNG.

    However, Ifejika who said the presentation of the Ministry and the Nigerian National Petroleum Corporation were harmonized could not proceed further at the hearing as the committee discovered glaring discrepancies in the documents of the Ministry and that of NNPC presented by Bello Rabiu, Chief Operating Officer, Upstream who represented the Group Managing Director, Baru Maikanti.

    The committee also said the two documents submitted were not authenticated as they were not signed.

    The rep of the GMD noted that the document may be different but the figures are the same, but that they could take it back for authentication.

    However, the lawmakers queried the Nigerian National Petroleum Corporation and the Ministry of Petroleum Resources over some staggering increases in the upgrade contract of OML 58 and the execution of the Northern Option pipeline.

    It was learnt that the NNPC entered into a JV with Total Exploration and Production Nigeria Limited ( TEPNG) and there was a Modified Carry Agreement and award to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite- Ubeta- Rumuji ( OUR) pipeline in 2010, and the Northern Option Pipeline in 2011.

    Read Also: Senate probes Kachikwu over alleged oil/ gas sector deals

    But Rabiu in defence of the NNPC told the lawmakers that no money had been paid on the variations.

    TOTAL E&P who handled the JV contract said the initial contract sum was $ 3.45 billion but was eventually increased to $4.6 billion after consideration of a number of factors.

    But members of the Fred Agbedi- headed committee were not happy over the huge variation in the contracts totaling over $1.15 billion.

    Patrick Olinma, Executive Director, Asset management and New energies, who represented the Managing Director of Total said it had made submissions on all the issues raised and that  the documents have been submitted to the committee

    However, the committee members posited that the reason for the variations was because the contractor engaged by Total was incompetent resulting in the extra cost. According to the members, the allegation was made by the NNPC and yet Total went on to engage the contractors.

    But the Total representative said that they had a duty to comply with the local content act, adding that they were initially told by the government there were 14 communities which ended up at 74 communities eventually.

    The chairman of the committee said though the parliament made the law, it did not say that the contractor should be employed “as a learning curve,” adding that the cost is too staggering.

    The committee said it would like to see the boards resolution on the contracts before it was awarded to ensure they comply with procurement laws.

    Sunday Katung, (PDP Kaduna) who moved the motion to investigate the contract said the JV contracts, attracted a variance beyond the projected budget sums.

    “I deemed it expedient to draw the attention of this house to these projects to ascertain wether of all the change orders presented to the NNPC and / NAPIMS, there were any approval for these requests since monies have been paid and further, wether there is value for money spent on those projects.”

  • FEC approves N348.59 billion for Akwanga-Gombe road 

    The Federal Executive Council (FEC) has approved N348.59 billion for the road linking Akwanga though Jos to Gombe.

    This was disclosed by the Minister of Power, Works and Housing, Babatunde Fashola.

    He was with the Special Adviser on Media and publicity, Femi Adesina, Minister of Finance, Kemi Adeosun and the Minister of State for Petroleum, Ibe Kachikwu.

    Read Also:Enugu spends N40bn on road construction in two years

    According to Fashola, the project which will be completed in 48 months, covers 420.6 kilometers.

    He said “FEC approved N348.594 billion contract for the construction of 420.6 kilometers Akwanga-Jos-Bauchi-Gombe road. The project scope is the expansion of the current two-lane highway into a dual carriage way.

    “What is significant about it is that it completes the integration of the north central with the south east and the north east.

    “Council had previously approved the Abuja-Keffi Road and the Akwanga-Lafia-Makurdi Road all in the north central. In May this year, Council had also approved Nineth Mile Enugu to Makurdi road that connects the south east to the north central.

    “That completes the spine of the major movement of agro produce and other related produce. The construction period is 48 months.” he said

    The Council (FEC) also approved N12.104 billion for ecological projects across the country.

    Femi Adesina said that the approval covers twelve projects in the country.

    He listed the states for the projects to include Anambra, Lagos, Oyo, Akwa Ibom, Adamawa, Bauchi, Borno, Jigawa, Kaduna, Plateau and the Federal Capital Territory (FCT).

    Kachikwu said that the Council approved the installation of technology monitoring schemes and structures under Petroleum Equalisation Fund (PEF) at a total sum of N17 billion.

    According to him, it is for automated fuel system management and censor network.

    He said “The narrative is that we have all struggled with  this whole subsidy payment and how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on FAAC accounts.

    “The President has given a very serious mandate that we ought to rein in on this process. The essence of what PEF is doing is that this will enable us track refined petroleum product movement from the point of LC (letter of credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria, and from the tanks into trucks in Nigeria, monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold.

    “So, that will produce a 100 percent wholistic monitoring of this production. For the first time we will be able to tell how much petroleum products we consume in this country. Because, there has been so much going on in terms of the movement of consumption numbers from thirty something million liters a day to 70 million liters to 18 million liters a day during the difficult times.

    “And the challenge the president has given me is to rein that in, let’s know what we consume in reality, let’s know where these products are going and this process will be able to track every truck.

    “So, a typical truck will be licensed with a driver, with a transport company, so if a truck misses, you can find the transporter and the company that takes responsibility.

    “So we expect this to be over a period of three years but we promise that within one year, the real effects of this will begin to show. Obviously you need time to train and to continue to improve the system. We hope that by the time we start doing the 2020 budget in 2019, we would have gotten to a point where a lot of the losses that you are seeing are being tracked and substantially impact will be made in monies that come into the federation accounts.

    “It will help us keep proper data repository of consumption in this country, destruction, data on all trucks that operate, total number of products received, what is sold out of filling stations and it is going to be a collaborative system that involves NNPC, DPR and PPPRA but situate quite frankly in PEF.” he said

    According to him, FEC also approved the revision of contract for the construction of NCMB’s headquarters in Yenagoa, Bayelsa State.

    He said that the project, which was awarded in 2015 at the sum of about N27 billion was on Wednesday revised to N42 billion.

    He said “It is one of the dramatic skyline in Yenagoa and has gone quite substantially far. This reasons for this increase was largely due to foreign exchange variables determinant which was initially about N157 to a dollar but today it is N305 to a dollar and still counting.

    “The whole idea is for contract to be completed. It is a 24 month contract and fairly far gone. We hope that once that is done, NCMB will stop paying rent in the series of buildings that it rented in Yenagoa.

    “But most important, the whole glamour of the south south states during the Vice President visit to the Niger Delta with me and the minister of Niger Delta was largely to see oil companies during foot hold in some of these south south states. The building is larger than what the NCMB needs and already talks are on with AGIP and a few of them who want to position their presence very effectively in some of these areas.

    “If we continue at this pace of construction, Mr. President should be able to commission that building between the end of this year and early next year,” he said.

     

  • FG seeks less than $15/barrel cost

    …to base project approval on cost of production

     

    The Federal Government, on Tuesday, said that it was seeking to reduce cost of crude oil production to less than $15 per barrel.

    It has also planned that henceforth, approval for projects in the petroleum industry would be based on the cost of producing oil and gas from the project.

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu revealed this  at the on-going Nigerian Oil and Gas Conference and Exhibition in Abuja.

    He noted that the Federal Government is keen on ensuring that the country’s refineries work.

    Kachikwu stated that efforts had been made to reduce the cost of production of crude oil from about $32per barrel to $23 per barrel, noting however, that efforts are on to further ensure the cost are brought down to below $15 per barrel.

    He further noted that efforts to bring down cost of production should not be by the government or through policies, but should be driven by the private sector.

    He said, “The ministry is going to be coming up with a bench mark to analyse and compare companies who do business on Nigeria and what cost of production they are running. This is because any unbelievable cost of production, basically impacts on the revenue stream of the country.

    “We need to start finding out what companies who were awarded recognition are doing and why are the others not going in that direction. However, the excuses of the environment been different or absent infrastructures can no longer hold water, because there are a lots of countries with peculiar situation as ours that are producing oil at relatively lower level.

    Read Also: Oil boom for Nigeria as prices hit $73.79 a barrel

    “One of the mandates that I am giving the Department of Petroleum Resources, DPR, is that as we begin to look at new projects, the cost at which we are going to produce that oil is going to become critical to our ability to approve those projects for you. So it is becoming a major front burner item.”

    Kachikwu further stated that henceforth, oil companies must take the initiative to ensure stability in their area of operations.

    He said, “Yes, government needs to provide securities, policies. But it is absolutely important that you cannot continue to drill for oil when there is a host community’s crisis. We have seen that in Ogoni land. It is important that for every area that you are active, you must begin to ask yourself what more can you do more than what the law said you should do.

    “It is not an issue of meeting compliance as it doesn’t take away crisis but an issue of what is seen in an operating environment. And I do understand that the burden imposed on oil companies can be huge, but it is what it is.

    “Also, we need to over the next few months begin to work together to set up what are globally enforceable Memorandum of Understanding, MoU, that we can see around oil producing areas and what more can we do, and if government needs to be part of it, so be it. But we cannot get into the circle of coming out and then after one year going back into the hole.”