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Tag: Ibe Kachikwu

  • Kachikwu writes Buhari, protests award of $25b contracts by NNPC GMD

    Kachikwu writes Buhari, protests award of $25b contracts by NNPC GMD

    A crisis of confidence has erupted in the oil and gas sector between the Minister of State for Petroleum Resources, Dr. Edmund Ibe Kachikwu and the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru.

    The minister also accused the GMD of awarding $25billion contracts without consulting either his office or the NNPC Board.

    He accused Baru of alleged insubordination, lack of adherence to due process and running a “bravado management style.”

    Kachikwu said he was being sidelined by the GMD and other heads of parastatals on major decisions and appointments.

    He asked President Muhammadu Buhari to call the NNPC chief to order to ensure due process and transparency in the oil and gas sector.

    He also presented five prayers to President to save the oil sector from collapse.

    The minister said he was always blocked from seeing the President.

     

  • Ice Prince, Seyi Law, others receive Achievers Awards

    Ice Prince, Seyi Law, others receive Achievers Awards

    Popular Hip-hop singer Ice Prince and a veteran comedian Seyi Law, have been honoured with the “Peace Achievers Awards” by the Peace Ambassador Agency, an organisation that promotes national peace.

    The News Agency of Nigeria (NAN) reports that the duo received the awards at the 6th anniversary of the annual Miss Peace Achievers Awards held on Sunday in Abuja.

    The Plateau state born artiste received the “Musician of the Year /Peace Builder” award, while Seyi Law got the “Comedian of the Year/Peace Builder” award.

    Other celebrities that were honoured at the event include fast-rising Nollywood actress, Regina Daniels and singer Praize.

    According to Mr Kinsley Amafibe, the Project Director of the organisation, the  artistes are recognised for contributing to the growth of  the Nigerian entertainment industry which has empowered many youths, thereby promoting peaceful coexistence.

    He added that some of the recipients had also been involved in humanitarian gestures over the years, which had promoted social peace and harmony, which was in consonance with the objectives of the organisation.

    “These veterans have contributed a lot in building social harmony and peaceful coexistence in Nigeria, using the entertainment industry.

    “They entertain and bring happiness to Nigerians, which are crucial keys to peace, in spite of tribal and religious differences.”

    In his remark, Ice Prince expressed delight that the award was an indication that the society was interested in what celebrities do.

    He, therefore, pledged his continuous commitment towards growing the entertainment industry.

    “I hope to strive to continue to put in my best both as a professional and a patriotic citizen of this great nation,’’ he said.

    The 2017 edition of the prestigious awards cuts across over 20 categories with recipients picked from various field of human endeavours.

    Other recipients of the Peace Achievers awards include the Chief of Army Staff, Lt-Gen Tukur Buratai, who was honoured with the “Award for Excellence in Peacekeeping” and the Minister of State for Petroleum, Dr Ibe Kachikwu.

    Mr Kenneth Emejuru was honoured with the a ‘Young Entrepreneur of the Year’,and  the Chairman of the Federal Inland Revenue Service ( FIRS ), Mr Tunde Fowler was also honoured.

    Amb. Louis LuLu Mnguni, The South African High Commissioner to Nigeria, also received the Peace Builder awards, and Raymond Dokpesi of DAAR Communication got the “The Peace Builder of the Year Award”.

    NAN reports that the Peace Achievers Award is a flagship initiative of the Peace Ambassador Agency.

    The organisation promotes tolerance and peaceful coexistence by organizing beauty pageants, peace education and campaigns.

    Its peace education campaign, which is targeted mainly at the youths, trains and empowers students of higher institutions and other youth communities, irrespective of their religious and cultural backgrounds.

  • OPEC exempts Nigeria from oil production cut

    OPEC exempts Nigeria from oil production cut

    The Organisation of Petroleum Exporting Countries (OPEC) and Non-OPEC countries have approved Nigeria’s exemption from oil production cuts.

    A statement issued by the Director, Press Relations, Ministry of Petroleum Resources, Mr. Idang Alibi, said the endorsement was given at a meeting of OPEC’s Joint Ministerial Monitoring Committee on Friday in Vienna.

    Nigeria was first granted production cuts at the November 2016 Ministerial Conference and this was later extended in May at another Ministerial Conference, until the country stabilizes its crude oil production.

    Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said though Nigeria’s production recovery efforts had made some appreciable progress from October 2016, it was not yet ”out of the woods.”

    The statement quoted Kachikwu, who was at the Vienna meeting, as saying that “though Nigeria hit 1.8 million barrels production per day in August, it was not enough justification for call by some countries for Nigeria to be brought into the fold.”

    ”Nigeria as one of the older members of OPEC will continue to work for the good of the organisation and its member countries, respecting whatever agreements and resolutions are collectively made.

    ”Nigeria will be prepared to cap its crude production when it has stabilized at 1.8 million barrels per day.”

    The meeting noted that overall compliance by OPEC and Non-OPEC participating countries to the Agreement on oil production cut for August was 116 per cent, the highest since the agreement in January this year.

    It said the objectives of the accord were steadily being achieved with the gradual draw-down of inventories by nearly 50 per cent since the agreement came into effect.

    NAN

     

     

  • Clarke sues for peace as FG, PANDEF unite for Niger Delta development

    Clarke sues for peace as FG, PANDEF unite for Niger Delta development

    The Federal Government and the Niger Delta Leaders under the aegis of Pan Niger Delta Elders Forum (PANDEF) met for several hours at the Presidential Villa on Thursday and agreed to partner to actualize the FG’s new vision for the region’s development.

    The meeting, presided over by Acting President Yemi Osinbajo, was attended by the Ministers of Environment, Niger Delta Development Affairs, State for Petroleum, and the Chairman of NDDC, Sen. Ndoma Egba.

    Also in attendance were Chief Edwin Clarke, Alabo Graham Douglas, Chief Timi Alaibe, Chief Alfred Diette-Spiff, former Akwa Ibom Gov. Victor Attah and a host of other Niger Delta leaders.

    Elder statesman and leader of PANDEF, Clarke, who addressed state House Correspondents at the end of the meeting described it as very fruitful and called on the people of the region to maintain peace and await the implementation of the FG’s vision.

    “The message is that everyone should maintain peace,’’ Clarke said adding that the group had seen the commitment of the federal government to pursue its development agenda in the region.

    ““The meeting was excellent.  We met with Mr Acting President and he was very honest, truthful, forthright and we were very satisfied.”

    Clark denied an ultimatum was issued to the federal government on the vision’s implementation but added that the parties agreed on many things with PANDEF and the ministers presenting their separate addresses and Osinbajo rounding off.

    “We saw his genuineness, truthfulness, forthrightness; he is a gentleman and we support him and we are satisfied,” he said.

    The PANDEF leader stated that the region would withdraw from its former position and embrace the path laid by the federal government for the development of the region.

    According to him, the region and FG have agreed to work together noting that the issue of dialogue will also take place.

    He assured the Niger Delta people that the 16-point agenda they presented to the FG was fully discussed as well as the government’s 20-point agenda.

    On why the Niger Delta leaders were not speaking with one voice, the elder statesman said there were no other leaders in the region with dissenting voices.

    He said that MEND was represented at the meeting noting that the group’s acclaimed spokesman did not exist.

    “Jomo Gbomo does not exist as a human being. That is a ghost name and a fake name. MEND was here, all other organizations were here.

    “I am the leader of the Niger Delta and every leader you can think of from Cross River to Edo state was here,’’ he stated.

    Buttressing the points, he minister of State for Petroleum, Dr Ibe Kachikwu, acknowledged that there was no ultimatum from any part of the region to the federal government.

    He said that the meeting was to find solutions to the Niger Delta issues adding that it was basically to explore how government had gone ahead with the fulfillment of the parties’ undertakings on the 16-point agenda raised during the tour of the region.

    He said several issues including the University at Okerenkoko, issues related to the development of the Niger Delta generally, amnesty programme and how well it was working, and NDDC operations were discussed.

    “Today was an environment of calm, peace and friendliness and mutual dialogue of the issues for them to understand where we are coming from and understand the most pressing problems that we have,’’ he said.

    He acknowledged that PANDEF pledged commitment to work with the federal government to find solutions to the problems confronting the region.

    He said that the alarm that was generated was that government should hurry up with the projects as the people were getting worried and tired and wanted to see positive actions on all the items.

    He said that PANDEF was convinced with  the explanations of the Acting President and had realized that the government was not playing about the vision to correct the wrongs in the region for over 30 years.

    The News Agency of Nigeria (NAN) reports that as the meeting was on the Acting Presidential Spokesman, Laolu Akande, released a fact sheet on the vision showing that the FG had set aside an initial one billion dollars for the clean-up and environmental remediation of Ogoniland.

    According to the fact sheet, 200 million dollars will be disbursed yearly for the first five years and work on the project will be conducted in line with international best practices.

    Akande stated that already soil and water tests had been done in preparation for the clean-up and 15 technical assistants from Ogoniland hired to be part of the work.

    He said that to drive infrastructure, the FG has released funds for the continuation of various sections of the East-West Road adding that as at March 2017, the overall project completion was substantial with some sections reaching 99 per cent completion.

    Akande stated that the FG had plans to construct health centres in the states and communities of the region which on completion would be fully equipped to address some of the health needs of rural dwellers.

    He added that FG had started the process of replacing illegal refineries in the region with modular ones, including options on how to involve the communities as shareholders in the proposed Modular Refineries.

    He said that the ground-breaking of the first set of such refineries were expected in the 4th quarter of 2017 and the government  would supply crude to the local refineries at reasonable price.

    Akande stated that the measure was to serve as an incentive to stop the current practice whereby illegal refiners vandalised and stole the crude adding that each Niger Delta state was expected to host two modular refineries.

  • Osibanjo urges Africa oil producers to track terrorism funding

    Osibanjo urges Africa oil producers to track terrorism funding

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

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

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

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

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

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

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

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

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

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

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

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

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

    Kachikwu

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Niger Delta youths urge NNPC to implement palliatives promised by FG

    Niger Delta youths urge NNPC to implement palliatives promised by FG

    Niger Delta youth leaders have urged the Nigeria National Petroleum Corporation (NNPC) to implement the palliatives pledged by Acting President Yemi Osinbajo during his tour to the region.

    The youths made the call when the leadership of the Niger Delta Ex-Agitation Forum and Niger Delta Non Violent Youth Leaders’ Assembly paid a courtesy visit to Mr Kennedy Tonjo-West in Yenagoa on Tuesday.

    Tonjo-West is the Senior Special Assistant to Bayelsa State Governor on Niger Delta Youth Matters.

    Prince Amaibi Horny, who spoke for the ex-agitators under the amnesty scheme, noted that the region was eagerly awaiting the implementation of promises made during the fact-finding visit by the acting president.

    Horny observed that most of the palliatives aimed at stabilising the Niger Delta region and consolidating the peace process lied within the purview of the NNPC.

    According to him, after several months of conclusion of the tour, the Group Managing Director of NNPC, Mr Maikente Baru was yet to take steps on the palliative measures.

    “It is shocking to know that since Maikente Baru assumed office as NNPC Group Managing Director, he has not initiated or implemented any project or programme that will deepen the existing peace painstakingly put in place by the president.

    “The current peace is due to extensive consultative engagement by the acting president’s dialogue with stakeholders during his tour of the region.

    “Instead of commencing some of the projects and issues raised by youths and people of the region in this period of peace to upgrade his score card, the GMD feels very unconcern about the plight of the region,” Horny said.

    Mr Tonye Jeminimiema, who spoke for Niger Delta Non Violent Youth Leaders’ Assembly noted that Dr Ibe Kachikwu had traversed the region promising that President Buhari administration was committed to developing the Niger Delta.

    Jeminimiema urged the acting president to prevail on NNPC to step up its activities to redeem Federal Government’s pledge to the region during his tour which includes the establishment of modular refineries.

    He said that it was evident that the peace deal had resulted in the increase of crude output from 1.2 million barrels to two million barrels after the peace deal but regretted that the NNPC was yet to fulfil its part of the accord.

    In his response, Tonjo-West appeal to the youths in the region exercise patience, adding that plans were ongoing to open a window for discuss with the stakeholders.

    According to him, Chief of Defence Staff, National Assembly, Minister of State, Petroleum and the Group Managing Director of NNPC and himself will look at the issues objectively and iron out the grey areas.

    “My fear is that if the government pays deaf ear to these complaints, crisis is inevitable and one can imagine where that will lead us to, especially when the country is passing through a difficult phase in its nationhood,” he said.

    Tonjo-West commended the Bayelsa governor for the establishment of the state vigilante group and the Bayelsa state volunteers to strengthen security in the state.

    He also applauded the Rivers state government for empowerment of Youths Based Land and Waterway Surveillance to boost security in the state.

    He also commended security agencies in the region for their dogged approach to curbing crime.

    He observed that there was the need for the Federal Government to team up with governors in Niger Delta states for the development of the region.

  • It’s a shame we are still importing petroleum products – Kachikwu

    It’s a shame we are still importing petroleum products – Kachikwu

    Minister of State for Petroleum Resources, Ibe Kachukwu has said that Nigeria remain the only oil producing country that is still struggling with the importation of refined petroleum products, describing the situation as a complete embarrassment.

    The Minister said Nigeria was the only member country of the Organisation of Petroleum Exporting Countries (OPEC) still grappling with the importation of refined petroleum products. 

    Kachukwu who spoke at the 5th Triennial National Delegates Conference of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja also said it was a shame that despite its huge resources, Nigeria has continued to grapple with epileptic power supply.

    He said Nigeria should be able to produce enough petroleum products to meet domestic needs, pointing out that changing times in the industry suggest that Nigeria must look for ways of ensuring efficient management of the refineries and make them productive or lose them and the job opportunities it offers.

    He said the nation’s future lies in the area of gas, saying at best, the nation’s oil reserve will last for another 25 to 39 years, while the nation’s gas reserve will last for over 60 years.

    He said: “For me, the while idea of continuing importation of petroleum products in this country is a shame. We are the only once, when we go for OPEC meetings that are still struggling how to import petroleum products when we should be able to produce even if it is only the petroleum products that we need in this country. 

    “We need to find anything that will help us to do that and I encourage you to collaboratively work with us as we get into this. Once that happen, it is going to open a whole vista of opportunities in marketing, midstream performances, opportunities in infrastructure along pipeline. 

    “I urge you to take the solidarity that you have and you sing so passionately about away from just fighting issues of staff welfare and move into issues of staff investments. I need to see you participate in the value chain. Some of you are some of the best brains there are in the industry and you know where the issues are and where to create new investments.”

    On epileptic power in the country, he said: “It is a shame that a country with such massive resources will continue to be epileptic in power supply. I go to Ghana sometimes and I am ashamed that we supply some of the gas. At least in Accra, and most of the major cities, power is 24 hours. In Ivory Coast, despite the problems they have in terms of power costing, there is 24 hours supply. 

    “There is no absolute reason why this country cannot move from this decadent practice of explaining inefficiency to a new horizon where visibility are grandiose. I am committed to working with the power ministry and every Nigeria to move the transformative journey from one point to another, from the point excuses to the point of absolute final delivery.”

    The Minister said further that “the reality is that the oil industry is changing almost transformatively. Prices have tumbled and have continued to struggle despite all the works we have done in OPEC to the and boast it. The reality is that investments are declining at an alarming rate and suddenly, there are new entrants into the industry. 

    “Also, CEOs are struggling as to where to put very scarce resources and suddenly, it is now how well you can market your country, reposition your policies in such a way that there are benefits. All is a sudden, investment return in some of these exploration activities are beginning to get challenges. Only those who are able to look at their technology and new ways of doing business are going to survive the oil industry of tomorrow. 

    “If you take the annual return of most of the major oil companies, you will see the sort of disequilibrium that’s happening there and those who are beginning to jump in and out of leadership, you realize that expectations are changing. As it concerns Nigeria, we must work inclusively hard to deal with some of the difficulties that we will continue to see in our production platforms. 

    “Whether it is the militants which is a key component or the slow speed of approvals or whether the fact that  our policies are not even as fast as they should to catch up with changing Times.

    “Those of us who have the opportunity to seat in ministerial zones where we have to influence policies have got to work extremely hard to help drive the sea of change that is imperative is the sector is to survive. Infrastructural deficit is a key component. We lack infrastructure in the sector, whether it is down stream or up stream or oil and gas. 

    “The absence of infrastructure has made it impossible to have a holistic private sector participation. We have got to find policies that will encourage private sector participants to play a key role. Coupled with that is the fact that countries are moving away from oil. Our oil estimate as per reserve is at best about 25 to 30 years, while gas estimate is over 60 years. 

    “Clear enough, Nigeria is more of a gas country than an oil country. But what are we doing to ensure that our dramatic movement into the gas production. I am just coming from the FEC where we presented a memo on gas which has been approved today. 

    “Major movement is in terms of what we need to do in the gas environment because it is so key that unless we can put the two energy together, we are not likely to see an improvement in our economy or see opportunities that most of you are beginning to miss in terms of job creation and employment in the oil sector.

    “Gas is the new horizon of opportunity. There is so much happening that needs to happen, that should have happened yesterday. Gas is the future for this country and the place to be and we need to start looking at that. Increasingly, we are seeing very strong local players.”

    The Minister dispel insinuations that the government has concluded plans to either concession or sell off the refineries, saying “let me say that there has been attempt and there is no approval to concession refineries or sell refineries. I keep hearing discussions all over the place especially from people who should know better. 

    “What we have approval for is to bring in a financing mechanism that will enable us to finance and develop and upgrade the refineries as they are. The reality is that once private sector players begin to build their own refineries, whatever we it that we are afraid of will disappear and unless we begin to move very rapidly and quickly to position these refineries in such a way that they can compete, we will lose the refineries completely together with the job scale that exist there right now.

    “My drive is to see that those investments goes through a transparent process and the announcement that you hear about selection has not happened. They all be pacesetters in the whole process, but it will go through a transparent process. 

    “Nothing that we are trying to do has taken away thE management from the NNPC. However, we need to bring in fund and best practices and elevate these institutions to the level where they should work for this country because we are losing money.”

    In his address, National President of PENGASSAN, Francis Olabode Johnson said the union was in full support of government initiatives to bring in investors to revamp the refineries especially in the area of funding and expertise.

    Johnson said however that the union want to have access to the memorandum of understanding to be signed between the  federal government and the investors for the three refineries in Kaduna, Warri and Port Harcourt.

    In addition, he said the two unions in the oil and gas sector, PENGASSAN and NUPENG should be carried along at all stages of the process to ensure that Labour related issues and job security is guaranteed, saying, “while we await the direction of the investors in the three refineries, we call on the government to ensure immediate rehabilitation of obsolete equipment in the plants”

    Johnson also frown what he described as fragrant disobedience to tripartite agreement reached by International Oil Companies operating in the country on job security, saying “we take this as an affront on the constituted authorities in the country. We call on the management of the Oil and Gas companies in Nigeria to respect the laws of the land as well as constituted authorities in Nigeria.”

  • Osinbajo tasks Judiciary on prompt determination of cases

    Osinbajo tasks Judiciary on prompt determination of cases

    The Acting President, Professor Yemi Osibanjo (SAN) has challenged the Judiciary to evolve ways of ensuring prompt determination of cases by courts in the country.

    He regretted the current practice where it takes years to determine simple cases, a development, he said, accounts for the “crawling” judicial process in the country.

    Osibanjo spoke in Abuja Monday at the opening session of the 3rd annual judges workshop on petroleum, gas and power sectors, held the National Judicial Institute (NJI).

    Represented by the Minister of State, Petroleum Resources, Ibe Kachikwu, Osinbajo noted that the pace at which cases were determined in the nation’s courts was a disincentive to investors.

    He said: “We need to evolve measures that will speed up the judicial decisions. We also need these decisions not to be too complicated for investors to easily understand

    “We need to ensure sanctity of international arbitration. Also, judges should be trained in petroleum and energy sector so that they would to be fully equipped to handle the emerging trends in the sectors.

    “if the country is not positioned to supply the necessary power supply, which is essential for driving the economy, the country will not make much progress,” Osinbajo said.

    The Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, who declared the event opened, urged judges not to allow technicalities to stand in the way of justice.

    He said the workshop was to enhance judges’ knowledge on issues relating power and petroleum sectors.

    He urged judges to desist from taking cases arising from contract breach where parties to the contract failed to first explore the arbitration clause enshrined in such contract.

    He said: “It has come to my notice that some courts assume jurisdiction in matters of breach of contract arising from contracts with arbitration cases.

    “It goes without saying that no investor, whether domestic or international would want his investment tied down in seemingly endless litigation, especially where there is an arbitration clause in the contract.

    “In such cases the use of arbitration must be employed. The courts must insist on enforcement of the arbitration clause by declining jurisdiction and award substantial costs against parties engaged in the practice.

    “May I draw the attention of heads of courts that the time saving nature of an arbitration proceeding encourages heightened commercial and economic activities as well as foreign investment and therefore needs the support and encouragement of the judiciary,” Onnoghen said.

    He argued that incidents of conflicting judgments by trial courts cannot be eliminated.

    Onnoghen said: “Conflicting decisions unfortunately, are necessary, because when you approach a court in Lagos, your facts are stated and the facts of that case are also different in a court in Port Harcourt.

    “So, the judge takes a decision based on the facts before him and the law, and that is why we have the Court of Appeal who will look at the law and decide,” the CJN said.

     

  • Repair works on refineries to gulp $1.2bn – Kachikwu

    Repair works on refineries to gulp $1.2bn – Kachikwu

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Thursday in Abuja explained that reports of concession of Port Harcourt to Oando and Agip companies were untrue.

    Kachikwu said at a news briefing that”a technical committee set up by the government to undertake the review and selection process is yet to submit its report”.

    There had been reports that government had reached agreement with the firms following which the Senate asked that the contract be stopped.

    According to the minister, what has been accomplished by the committee is coming up with a holistic investment figure enough to fix the nation’s three refineries.

    ”We have not selected any firm yet even though some firms have shown interests.

    ”We need about 1.2 billion dollars to repair and bring the three refineries of the Nigerian National Petroleum Corporation (NNPC) in Port Harcourt, Warri, and Kaduna, up to 100 per cent production level,” he said.

    The minister said the cost of the project had been determined in terms of the extent of work required.

    ”The total cumulative amount is in the 1.1 billion dollars and 1.2 billion dollars category between all the refineries. And that of course does not include the pipelines.

    ”You have got to address the pipelines and that is something else that is being done,” he said.

    He further explained that Nigeria spent about N4.74 trillion on importation of petrol in the past year which was 30 per cent of the total foreign exchange outlay of the Central Bank of Nigeria (CBN).

    ”The importation of petroleum products between January and December of last year amounted to about 20 million metric tonnes.

    ”A total amount of N3.4 trillion was spent, the consumption of FX from CBN was approximately 30 per cent of CBN total FX outlay, and the logistic costs of that importation was about N1.34 trillion within the same one year period.’  ‘

    On domestic refining capacity, the minister said the nation produced six million litres out of a total consumption of about 35 million liters per day.

    ”In the midst of this sort of statistics, it was absolutely critical that we move in to try to end importation of products, improve our refineries and get them up to 100 per cent.

    ”We are looking for financing of the repair and upgrade of the refineries. We are not concessioning refineries, it is simply a financing package,” he said.

    Kachikwu said the government would invite the original refineries builders for the three refineries to undertake the repairs but stressed that it had not selected any financier for the repairs.

    ”Once we identify those individuals and see how we can make contacts with those who built the refineries – Saipem in Warri; JGC in Port Harcourt; and Chiyoda in Kaduna, to ensure that we go back to them.’

    He said such step was necessary ‘’because they (builders) have the designs, engineering outlay and upgrade capabilities, and in some cases, they have the access to spare part.

    ”If we are going to achieve this within the timeframe we gave, we are going to meet them and I think we have largely decided that those are the people we should use,” he stated.

    The minister said the government would have to consider the overall capabilities of those interested in the process.

    He also added that their business model would have to be tied into the current Direct Sales Direct Purchase (DSDP) of NNPC to be able to make profit, especially with consideration to the country’s downstream sector, which had not been deregulated.

    ”We haven’t reached there, and so anybody indicating that contracts have been given is wrong.

    ”In terms of who wins the financing awards, that is still work in progress. We have not received from the technical committee their final report on this.

    ”We need to review and accept and go to FEC for approval and the National Assembly before we proceed.

    “There is urgency in this sector that we need to address. We have begun engagements with the National Assembly and the process continues, but we need speed in all these,” he added.

  • Senate cautions Kachikwu on false PIB claims

    Senate cautions Kachikwu on false PIB claims

    The Senate on Monday warned the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, against making false claims on the Petroleum Industry Bill (PIB) pending before the upper legislative chamber.

    In a statement issued on Monday by its spokesman, Senator Aliyu Sabi Abdullahi, the Senate said the PIB has got to the final stage and is scheduled to be passed early June.

    The Senate was specifically miffed by media reports quoting Kachikwu as saying that the PIB emanated from the executive arm of government.

    Senator Abdullahi insisted that the PIB was a private member bill sponsored by some lawmakers.

    The Senate spokesman said, “It is funny to read a report that the minister went to far away Houston to say that a disagreement between the Senate and the House of Representatives over the PIB, has delayed its passage and that he has been speaking with the House to take the version of the bill being worked on by the Senate.

    “The statement was unfortunate because the minister was only demonstrating lack of knowledge on how a bicameral legislature functions.

    “First, one would have expected that such a critical bill aimed at reforming the oil sector, which is the mainstay of the national economy would be a priority to the minister when he combined the post with that of being Managing Director of the NNPC.

    “The current National Assembly started work on the bill when it waited for so many months without anything coming from the executive arm.”

    He added that it is not unusual for the two chambers to differ on legislative issues, saying there is an inbuilt process of reconciling the differences through a harmonisation process.

    “Kachikwu is just jumping into the issue at this point because he knew we will in the next few weeks, pass the PIB and we think the remarks he made on the issue was unnecessary diversion aimed at creating needless controversy.

    “As part of our own legislative agenda, we had decided long time ago that after the passage of Budget 2017, our next major assignment is to pass the bill and immediately fast-track the process of passage of the Host Community Bill and the Fiscal Regime Bills which are also related to the reforms of the petroleum sector,” Abdullahi added.