The Nation Newspaper

Tag: Ibe Kachikwu

  • Agip to build refinery in Nigeria – Kachikwu

    Agip to build refinery in Nigeria – Kachikwu

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Tuesday disclosed that an agreement has been reached with Agip to build a refinery in Nigeria.

    According to him, the 150,000 barrels capacity refinery will be located in Port Harcourt, Rivers State.

    Speaking with State House correspondents after the meeting between Agip top management and Acting President Yemi Osinbajo at the Presidential Villa, Abuja, Kachikwu said: “We just finished a meeting with the Acting President and Agip. In the meeting we dealt with the issue of Agip investment in Zabazaba field and their cooperation with us in the repairs of Port Harcourt refinery.

    “During the meeting with Agip we reached an agreement that Agip will build a brand new refinery of 150,000 barrels capacity which will be located in Port Harcourt or Brass. They have accepted and preparing an MoU along this line.

    “The effect of this is that oil companies operating in Nigeria will begin to migrate from only exportation of crude and begin to look on how to start refining this crude so that we will be able to meet our local consumption.

    “This new refinery and along with other things we are going to do with the refinery in Port Harcourt give us hope in our quest to try and increase our local capacity to produce every refine product we need in the country and to meet the time line of  2019.”

    He said the government is now going ahead to work out the modality with Agip.

    The minister also called on other multinational companies in the country to see how they can toe the same line.

    According to him, Agip, which has the second largest power plant, will be on stream by 2020.

    He added: “This is to make sure they are not only just taking away crude but making other local investment.

    “Total investment in area of power and the refinery from Agip is in excess of $15 billion.”

  • Ohanaeze applauds FG on agric initiatives

    The President of Ohaneze Ndigbo, Chief Nnia Nwodo, has applauded the agricultural initiatives of the Federal Government saying they are yielding positive results in Igbo speaking states.

    Ohanaeze Ndigbo is the apex socio-cultural organisation of Igbo speaking states in Nigeria.

    Addressing newsmen in Enugu on Wednesday, Nwodo contended that with the implementation of the initiatives, the federal government had taken the best move to take the people out of recession.

    He said that the various agricultural schemes embarked by the government through the Central Bank of Nigeria (CBN) were a huge success.

    The Ohanaeze chieftain said that the CBN governor, Mr Godwin Emefiele, should be commended for the intervention of the apex bank in various empowerment programmes aimed at stimulating the economy.

    Nwodo said: “we want to use this opportunity to salute the governor of the Central Bank.

    “This gentleman has had one of the most difficult challenges that have faced any governor of the CBN.

    “What he has done lately in terms of fighting the value of the naira is most commendable.

    “His programmes at assisting agriculture have impacted positively on the sector.

    “It is working in Imo, Ebonyi, Abia, Anambra and it is beginning to work in Enugu state and we are immensely grateful to him.

    “We encourage him to continue to work in this way to ensure that the ordinary people in Nigeria can bounce back as this recession continues to recede in its calamitously effect on our standard of living.”

    Nwodo said that the achievements of the government in the petroleum sector should not be overlooked as the Nigeria National Petroleum Corporation (NNPC) had been reinvigorated.

    He said that the achievements recorded in the NNPC during the tenure of Dr Ibe Kachikwu as Minister of State for Petroleum and Managing Director were outstanding.

    “Since the NNPC was incorporated, no minister or managing director has ever put the corporation on public portal.

    “But by the click of the mouse, when our son was there, you could tell how much came into NNPC every day and how much was spent.

    “For the first time, petroleum subsidy was removed without the economy collapsing,” he said.

    The Ohaneze president appealed to the Federal Government to intervene and rehabilitate the Enugu/Port Harcourt expressway which he described as “death trap.’’

    “While we commend the minister of Power, Works and Housing for the work that has started on the Enugu/Onitsha road, we want to draw his attention to the road between Enugu and Port Harcourt.

    “The road is a death trap. It is tortuous and God knows how long it will take to rehabilitate the road especially with all the stops by security men,” he said.

    Nwodo expressed concern that the entire South-East seemed to be under security siege by officers of the armed forces, who he alleged, extort money openly from innocent citizens and road users.

    He said that complaints by the organisation against the brazen impunity of the security agencies on the roads across the zone had remained unattended to.

  • Cash Call debts: FG pays $400m to IOCs

    The Federal Government said it had released $400 million to settle outstanding Joint Venture cash call debts owed International Oil Companies (IOCs).

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, made this known in Houston, United States, while speaking to journalists on the sidelines of ongoing 2017 Offshore Technology Conference (OTC) on Tuesday.

    Kachikwu said the money was paid to the IOCs last week, adding that the balance would be defrayed within a year.

    He explained that the payment was part of a $1.2 billion cash call debt owed the IOCs in 2016.

    The minister said it was different from the discounted $5.1 billion cash call arrears it negotiated in December 2016 with the IOCs.

    “At the time that we did the joint venture review that we came up with, we had two components to it. The first was the $6.8 billion arrears covering about six years which were owed the oil companies.

    “In our negotiations, we were able to trim that down to about $5.1 billion; so, we knocked off $1.7 billion out of it and then spread the $5.1 billion over the next five years.

    “This is to be paid from incremental production, not from existing production.

    “In other words, they will have to go and find new oil and from that new oil, we pay that money because we didn’t want to imperil the 2.2 million barrel that everybody was already used to,” he said.

    NAN

     

  • Nigeria oil and gas provide investments in excess of $50bn – Kachikwu

    Nigeria oil and gas provide investments in excess of $50bn – Kachikwu

    Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said economic growth plan recently launched by Federal Government would provide strategic and economic partnerships in excess of 50 billion dollars.

    Kachikwu said this on Tuesday while wooing investors at an event organised in Houston, U.S., by the Nigerian Content Development and Monitoring Board (NCDMB).

    He said: “the Federal Government of Nigeria has launched a National Economic and Growth Plan for the next four years.  This is anchored on the Nigeria Oil and Gas Roadmap among other sectoral roadmaps.

    “This roadmap presents exciting opportunities for financial and strategic partnerships in excess of 50 billion dollars (about N1.58 trillion).

    “About 13 billion dollars -17 billion dollars will go to the upstream for the development of upstream gas fields with a total of 37.4 trillion cubic feet.

    “Fourteen billion dollars -17 billion dollars will go to the Trans-Nigeria gas pipeline project, gas revolution industrial park at Ogidigben and three power plants for additional 3.2 GW capacity in the gas and power sector”.

    He added that 2.5 billion dollars – 5 billion dollars will be invested in licensing and establishment of modular refineries, collocate refinery within Kaduna Refining and Petrochemical Company (KRPC) and rehabilitating/upgrading the three refineries.

    “In the downstream sector, about 3 billion dollars – 3.9 billion dollars will go to revamping of liquefied petroleum gas, building of new Compressed Natural Gas plants across the country and to pipeline and storage tank constructions.

    “In addition, 0.7 billion dollars – 1 billion dollars will be invested in ventures such as equipment leasing, development of multi-specialist hospital and cancer diagnostic and treatment centres,” he stated.

    Kachikwu assured investors on President Muhammadu Buhari’s stance that he would ensure that under his watch, the “old’’ Nigeria would slowly disappear while a new era would arise.

    He also assured them of security and the new ease of doing business in Nigeria, adding that government had made progress on reforms in the sector.

    “Part of progress made are the new policies and regulations like the new oil, gas and fiscal policies that are being developed and syndicated with all stakeholders and the Petroleum Industry Governance Bill.

    “The Bill will be passed by National Assembly before end of the second quarter.

    “It also includes business environment and investment drive, gas revolution including the gas flare commercialisation programme where investors are invited to submit detailed project proposals by end of May.

    “Private sector-led revamp for refineries being pursued and framework for new Greenfield refineries, including modular refineries in place, and Niger Delta security and transparency and efficiency,” he said.

    The minister said that the outcome of the meeting would be aligned to projects and funding opportunities, preliminary discussion on areas of potential collaboration and broad alignment on funding options.

    The Executive Secretary of the NCDMB, Mr. Simbi Wabote, in his address said that his desire was not to hold events but “to follow through on whatever decisions are made from such meetings to ensure development eventually”.

     

  • Reps wade into Shell’s planned relocation from Rivers

    Reps wade into Shell’s planned relocation from Rivers

    The Speaker, House of Representatives, Yakubu Dogara on Thursday called for a thorough investigation into the planned relocation of the head office of  Shell Petroleum Development Company (SPDC) from Rivers State.

    The speaker said this when he inaugurated an Ad-hoc committee mandated to investigate the planned relocation of the company.

    Represented by the Deputy Majority Whip of the House,  Pally Iriase (Edo-APC), Dogara said that improved relationship between the Federal Government and the Niger Delta region was crucial in addressing some economic challenges confronting the country.

    “This is because the Niger Delta region sits atop oil wells where much of our revenue as a nation is derived from.

    “Relocation by the SPDC is said to be based on security concerns today. This has generated outcry and agitation by the people and if we as a House do not address it, it may escalate and result to violence and insecurity,’’ Dogara said.

    The Speaker added that the onus lied on the Federal Government and the house to ensure that justice on Niger Delta region was not denied.

    He, therefore, urged the committee to come up with a report that will be fair and forestall any crisis in the Niger Delta region.

    In his welcome address, the Chairman of the Ad-hoc Committee, Rep Ishiaka Ibrahim, (Ogun-APC) said that the committee would meet with all the relevant stakeholders to address the matter.

    He said the committee would be fair to all sides.

    “We shall engage all relevant stakeholders in order to come up with report and recommendation that would stand the test of time.

    “We shall also consider all factors surrounding the conception of the decision of the SPDC’s planned relocation from Port Harcourt,’’ Ibrahim said.

    It would be recalled that the House on January 26, adopted a motion sponsored by Rep. Kingsley Chinda (Rivers-PDP), to set up an ad-hoc committee to prevail on Shell’s planned relocation from Port Harcourt.

    Chinda expressed concern that several youths were already protesting the planned relocation which will further escalate militant activities in the region.

    The youth restiveness, Chinda said, would affect the Nigerian economy that was already experiencing recession due to low crude oil output.

    The House, therefore, called on the Minister of State, Petroleum Resources, Ibe Kachikwu and the National Petroleum Investment Management Services (NPIMS) and Shell to suspend the planned relocation and allow it to intervene.

  • FG to include Illegal refiners in proposed modular refineries

    FG to include Illegal refiners in proposed modular refineries

    Local “illegal” refiners in the oil-producing communities maybe co-opted as shareholders in the Federal Government’s proposed modular refineries, a presidency source has disclosed.

    The source who preferred to remain anonymous said the Presidency and the Nigeria Sovereign Investment Agency (NSIA) are collaborating to realize the plan, in fulfilment  of promises made by  Vice-President Yemi  Osinbajo  during  his tour of the oil region, on behalf of President Muhammadu Buhari.

    The core of the plan is to integrate the illegal refiners, rather than a scorched-earth policy that seeks to eliminate the operations of such refiners.

    The source however explained that there were a number of significant hurdles to be crossed especially issues around the engineering and technical ramifications of such a conversion, besides figuring out the financial models that would be workable and profitable.

    “At a meeting late last week at the Presidential Villa, issues around technical and engineering implications of how to integrate the refiners were discussed with industry experts and practitioners making presentations on how to implement the Buhari presidency modular refinery initiative said to have been first proposed by Dr. Ibe Kachikwu, the Minister of State for Petroleum Resources.

    “At the meeting the experts reported that they have worked closely with the NNPC, Oil & Gas operators, owners of marginal fields, operators of refineries and various technical services providers “to develop a workable system to develop this initiative,’’ the source further disclosed.

    A modular refinery is a refinery made up of smaller and mobile parts-(skid-mounted)-that are more easily fabricated and can be more quickly transported to site. They come in different sizes with varying capacities normally lower capacity than conventional refineries with more elaborate and complex  set-up.

    “Under the plan being considered in the presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude.

    The source maintained that the new concept, when operational, would also prevent the environment degradation that the spills and damaged trunk lines have been causing.

    He said, the marginal field operators could also supply crude to the new modular refineries that would have the illegal refiners integrated.

    “Another important component of the plan under consideration is to involve the current illegal refiners and their communities as shareholders while the NDDC and the NSIA will also hold substantial holdings/equity sufficient to make the smaller refineries operational as a business and a going concern.

    “To facilitate effective community engagements, an MOU would be established under the plan with the affected communities determining the communities share, while the FG would supervise the implementation, which would be driven largely by industry operators and the communities,” the source added.

    When contacted, Mr Laolu Akande, Senior Special Assistant to the President, Media & Publicity, Office of the Vice President, confirmed that a meeting was held last week on the issue adding that “the Buhari presidency is actively working on all fronts to speedily deliver on its promise of a ‘new vision,’ in the Niger Delta”.

     

  • FG to boost revenue from oil bloc sale, licence renewals

    FG to boost revenue from oil bloc sale, licence renewals

    Collection of outstanding royalties and renewal of leases expiring in 2017 would form a major source of accelerating  Federal government revenue accruable from oil and gas resources, Minister of Petroleum Resources, Ibe Kachikwu has said.

    Kachikwu, during the  2016/ 2017 budget defence session at the House of Representatives yesterday said oil and gas regulatory agencies are expected to attract investments, implement Memoranda of Understanding (MoU) and investment road shows in the United States of America, Asia, Middle East and Europe.

    Furthermore, Federal Government is also expected to conduct oil blocks allocation and marginal fields’ award, track gas flare commercialisation and develop gas infrastructure and investments, he said .

    Saying that concerted efforts would be directed towards refinery revamp, focus on downstream issues in in and operations, resolve Niger Delta militancy issues, stabilise oil production, the Minister also explained that priority would be given to tracking of oil production to destinations, develop agreement/framework for attachment opportunities with International Oil Companies (IOCs) and partners as well as complete new Joint Venture Cash Call roll out system.

    kachikwu“In retrospective, 2016 was a challenging year for the Nigerian economy which relied solely on oil. It is imperative that lessons learned must inform our plans for reforming the sector to bring real change to the citizens.

    “Our focus must be in promoting efficiency, formulating relevant policies, putting in place string infrastructural development especially joint venture in gas and domestic refining capacities, attraction of new Foreign Direct Investments (DFIs) and stabilising the statutory and regulatory environment of the sector,” he said.

    In addition, he informed the Committee that attention would be focused on the gazette of new policies on PE and gas, fast-track the passage of petroleum fiscal policy and engage in various pre and post Petroleum Industry Bill (PIB) activities for which N150m was appropriated for this year.

    [news_list display=”tag” tag=”Niger Delta” count=”2″ show_more=”on”]

    The Mjnister however listed some of the challenges confronting the Ministry which include underfunding and untimely releases of appropriated funds; weak oil and gas infrastructure which impacted on power to gas initiative; pipeline vandalism, oil theft and willful spillage; insecurity especially in the Niger Delta area; and absence of enabling law (PIB is still a draft form).

    He, however, assured that the Ministry is determined to achieve its set goals for  2017, saying, “There’s an urgency attached to the recovery of economy and petroleum sector is crucial to its attainment.

    “The sector must provide a very robust income stream for the economy through petroleum and gas in particular,” he added.

  • Osinbajo unfolds new vision for Niger Delta

    Oil-producing communities in the Niger Delta region got a new deal from the Federal Government on Friday.

    Niger Delta development will henceforth be community-driven for oil-bearing areas to have direct impact of oil wealth.

    The Acting President, Yemi Osinbajo, who unfolded the new vision on Friday, said the federal government would begin a partnership with all the stakeholders in the oil industry to concentrate development in oil-producing communities.

    Speaking at the Chief Diepreye Alameiyesiegha Banquet Hall, Yenagoa, Bayelsa State, the acting President said the partnership would involve the local government, the oil-producing communities, the oil companies, the private sector and civil society organisations.

    Osinbajo led a delegation of minsters, heads of agencies and other federal cabinet members to Bayelsa to interact with Niger Delta stakeholders as part of efforts by President Muhammadu Buhari’s administration to find lasting peace in the region.

    Women, youths, traditional rulers, captains of industries, political office holders and other government functionaries mobilised in their numbers to participate in the dialogue.

    Osinbajo was accompanied by the Minister for Niger Delta, Usani Usani Uguru, Minister of State for Petroleum, Ibe Kachukwu , his counterpart in Agriculture, Heineken Lokpobiri and other federal cabinet members.

    The team, whose chopper landed at the heliport of the Government House in Yenagoa, was received by the state Governor, Mr. Seriake Dickson, his deputy, Rear Admiral John Jonah, Dickson’s cabinet members and some lawmakers from the state.

    After a brief meeting in the Government House, the team headed for the state’s Traditional Rulers’ Council where the Chairman of the council, King Alfred Diete-Spiff, conferred a chieftaincy title on the acting President.

    Explaining the new vision, Osinbajo said: “So, we come today on behalf of the President, Commander in Chief with my cabinet colleagues and heads of relevant agencies to propose a new vision and to signpost a new era to the people of the oil-producing communities of this state and Nigeria.

    “The federal government will begin a partnership with oil-producing communities, the local government, the oil companies, the private sector and civil society organisation for the rapid development of these communities.”

  • NNPC, oil companies agree to end JVC

    The Nigerian National Petroleum Company (NNPC) on Friday signed an agreement to exit the Joint Venture Cash Call (JVC) with some international oil companies.

    The agreement was signed at the Ministry of Petroleum Resources in Abuja between the Federal Government and Shell, Chevron, Agip, Total and Oando.

    Nigeria owes an estimated 6.8 billion dollars accumulated over 14 years but got a discount of 1.7 billion dollars, leaving a debt of 5.1 billion dollars to be repaid, the News Agency of Nigeria (NAN) reports.

    The Minister of State for Petroleum, Dr. Ibe Kachikwu, who signed on behalf of the federal government, expressed joy that the pact would bring more investments into the country.

    He said lots of work and political determination had gone into the nation’s exit from the JVC debt.

    ”If we continue to focus on things that haven’t worked in a long while, we’ll get this industry on its way to competing favorably with other counterparts.

    ”I challenge the oil companies to put their monies where their mouth is because they said once this is done investments would begin to come into the country.

    ”I must also appreciate President Muhammadu Buhari for supporting the effort and for his willingness to steer the cause,” NAN quoted Kachikwu as saying at the forum.

     

  • Senate summons Kachikwu over $95bn oil deal

    The Senate on Tuesday invited the Minister of State for Petroleum Resources, Ibe Kachikwu to throw light on the proposed $15 billion Memorandum of Understanding (MoU) with the Indian Government in the oil and gas sector.

    The minister is also expected to provide details of the over $80 billion agreement he signed with Chinese firms in the same sector.

    The resolution followed a motion on “the need for a detailed explanation of the $15billion proposed investment with Indian Government and over $80billion MoU signed by the Minister of State for Petroleum with Chinese firms,” sponsored by Senator Clifford Odia (Edo Central).

    The upper chamber said the minister should appear before its joint committee on Petroleum Upstream, Gas and Foreign Affairs to give a detailed explanation on the agreements with the two Asian nations and their anticipated impact on the country’s economy.

    Senator Ordia in his lead debate said the minister negotiated a $15 billion investment with India where the India Government would make an upfront payment to Nigeria for crude oil purchase.

    The Edo Central lawmaker told the Senate that the two countries have agreed to sign an MoU to facilitate investments in the Nigerian oil and gas sector, specifically in refining, oil and gas marketing, upstream ventures, development of gas infrastructure and the training of oil and gas personnel in the country.