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Tag: Kachikwu

  • How to end fuel scarcity, by Kachikwu

    LIBERALISATION of the downstream sub-sector of the oil economy and the removal of subsidy on the petroleum products remain the best ways to end fuel scarcity, Minister of State for petroleum Resources Ibe Kachikwu, said yesterday.

    Dr. Kachikwu noted that Nigeria would continue to battle with the menace of fuel scarcity for as long as it evades market-friendly practices.

    He spoke in Abuja, during a presentation of his ministry’s key achievements between 2016 and 2018 and awards to members of staff.

    According to him, to address fuel supply issues, Nigeria needs to find a way that would meet the needs to provide products sufficiently for the populace and at the same time to be able to free the sector for growth.

    Kachikwu said: “In the midstream and downstream sectors, we have struggled. I would love to see a day when there would be no fuel scarcity in this country. But for that to happen, there are certain realities.

    “The liberalisation of the sector is going to be a panacea to being able to solve this. As long as we continue to subsidise products, create market-unfriendly type practices, we would continue to struggle.

    “We are not going to trade our way out of the fuel crisis by bringing sufficiency, by expanding reserves, by extravagant costs which cost the country a lot of money; that is not the solution. The solution is to get our refineries working.”

    Kachikwu noted that investments are lacking in this sector, adding that over the years, refineries’ Turn Around Maintenance (TAM) had been fraught with faulty models which had hampered the effectiveness of the refineries.

    He said: “If leaving brings products to Nigeria populace, so be it. But that is not the issue. The issue is that until you fund and build the refineries; until you find the investors and they work, you are not going to solve the problem. I am mindful of that, I am working very hard with the NNPC on that; NNPC is driving that process; I am the policy driver, they are the mechanics of that process.

    “What is important is that for the first time, the President had been able to say that he would repair the refineries without government money.  Nobody had been able to give attention to that.

    “No government one penny had been spent on any refinery. Every effort we are making is to find private investors to collaborate with us, save government money and be able to put these refineries in working order. Let us focus on being able to deliver instead of focusing on my head.”

    According to him, investments are lacking in the sector as the government has been working on rebuilding the three refineries or four refineries that are owned by the NNPC.

    According to him, the corporation that has struggled to find financiers for revamping the refineries has also been having challenges with agreeing in the terms.

    He said: “NNPC has struggled to find the financiers, now financiers have finally been found, but to agree on the terms have been difficult.

    “Hoping that by end of this year, end of first quarter next year, we would have completed the commercial aspects of this financial undertaking, which is in the excess of over $2 billion and also allow the private sector collaborate with the NNPC and repair these refineries and bring back 450,000 capacity refineries back into shape. That is one of the first solutions to solving the fuel crisis.”

    Kachikwu added that the Federal Government was targeting that by the end of January 2019, the country’s crude oil production would have grown to about 2.2 million barrels per day, while by the end of 2019, crude oil output would have hit 2.5 million, based on the coming on stream of the Egina field and the recently approved 30 field works which have the capability of increasing Nigeria’s output by 500,000 barrels per day.

    He said: “If we work hard enough by the end of 2019, and 2020, we ought to begin to see Nigeria’s production rise from the usual 1.8 million to 2.0 million barrels, up to between 2.5 million and three million barrels. This is the target that I had set in 2015.

    “We have been to discover so many new fields, like Owowo. We have been able to grow rig activity in the country. When we joined, the rig activity in the country was about two to three rigs that were operating in Nigeria at the time.

    “As at 2017, we had about 21 rigs in operation, up from about 16 rigs in operation in 2016. And hopefully, with the big FPSOs, it is beginning to look as if there are possibilities in Nigeria, we expect to see lot more real activity in Nigeria.

    “Crude oil production had been sustained at a fairly large level. We started at 800,000 barrels, we have grown it to about two million barrels. We should be doing more, but for the cyclical difficulties in terms of occasional pipeline disruptions, occasional closure for purpose of maintenance. We are averaging about two million barrels, and about 300,000 of that is roughly condensate.”

    On the growth of crude oil and gas reserves, the minister noted that while there has been a rise from 36.18 million barrels to 37.2 million barrels, gas reserves have also increased from 192 trillion cubic feet to 199.09 trillion cubic feet of gas in two years.

  • Kachikwu, Wabote, Tinubu push Nigerian agenda at Oil Week

    Minister of State, Petroleum Resources,. Dr Ibe Kachikwu, Executive Secretary, Nigerian Content Developing and Managing Board (NCDMB), Engr Simbi Wabote, and Oando PLC Group Chief Executive, Wale Tinubu were key participants at the recently concluded 25th edition of the Africa Oil Week (AOW) which took place at Cape Town International Convention Centre, South Africa.

    While Kachikwu and Wabote spoke extensively on Nigeria’s local content development approach and its overall contribution towards the African oil and gas industry, the Oando chief led several discussions during the course of the week.

    Dr. Kachikwu spoke extensively on the oil sector’s impact on the Nigeraian economy during the Ministerial Insights: National Exploration & Production Strategies’ panel. He said: “The oil sector has been a catalyst for growth in the Nigerian economy. It has also driven technology. Privately owned companies in Nigeria have gotten to a point where they can go to other African countries as investors and service providers.” The sessions covered various topics including future trends, hot spots and drilling programmes, governance, transparency and equitable growth, to future outlooks and energy transition outlook to 2050.

    Local content development was a major sub-theme at the forum. Speaking extensively during the session titled ‘The global private sector’s role in African socio-economic development, Wabote said: “Any company coming into a country to undertake business must have a positive reputation. This reputation is built on your commitment to deliver on your promise and ensure you are there for the survival of the nation as a whole. Local content is not CSR. For me it is an existential imperative for any country in terms of allowing its citizens participate in the oil and gas sector in particular.”

    The NCDMB has taken giant strides since the commencement of its 10-year strategic plan to increase local content in the oil and gas industry from the current 28 per cent to 70 per cent by 2027.

    In addition to being a platinum sponsor, delegates from the Oando provided the Nigerian business perspective on various panels. Speaking on an economic outlook panel titled: “Can Africa’s Upstream Play a Significant Role in the Context of the Global and Regional Energy Landscape.”

    Tinubu said: “We have been substantially supported by the Government’s local content policies which have effectively enabled indigenous players step in and play a significant role in the sector. In Nigeria today, out of the 2 million barrels of oil being produced, 400,000 can be attributed to indigenous production.”

    Alongside Tinubu on this panel,                         were Jens Frølich Holte, State Secretary, Ministry of Foreign Affairs, Norway; David Hicks, Senior Vice President: Upstream, IHS Markit; Jasper Peijs, Exploration Vice President, BP; Mounir Bouaziz, VP Commercial/New Business Development South America & Africa, Country Chair Dubai & Northern Emirates, Shell and Paul McDade, CEO, Tullow Oil.

    Also speaking on Private Sector: Creating Equitable Frameworks and High Quality Local Supply Chains, the Chief Operating Officer, Oando Energy Resources, Dr. Alex Irune said: “The indigenous private sector has an important role to play in taking the knowledge and value gotten from collaborating with the IOCs and other sector players in the country, transferring that down the value chain to build efficient and effective supply chains that are able to retain value in country.”

    Oando’s participation at the conference further reinforces its position as the preferred indigenous oil and gas company in the country. The company has truly carved a niche for itself as an independent indigenous oil and gas company flying the Nigerian flag at global events that shape the future of the sector and the world in general. Events such as the World Economic Forum (WEF) in Davos, CERA in Houston, Oil Council, Africa Assembly, Africa CEO Forum, OPEC International Seminar, to name but a few.  At these events, Oando has engaged in open and transparent dialogue with a broad range of stakeholders to analyze and proffer solutions to global issues.

  • Kachikwu pushes refinery revival to 2020

    The revival of Nigeria’s state-owned refineries will happen a year later than expected after financing talks dragged on, Minister of State, Petroleum Resources, Dr Ibe Kachikwu, has said.

    The refineries being managed by state-run oil firm, the Nigerian National Petroleum Corporation (NNPC) have long history of being operated at a fraction of installed capacity after years of under-investment. The firm last year began shopping  for private partners to help improve output.

    Until those facilities can be fixed, or new ones constructed, Nigeria will remain heavily dependent on imported fuels.

    “It’s not likely to happen by the end of 2019 because the financing talks for the joint ventures took longer than expected,” Kachikwu said in an interview in Cape Town.

    Funding is expected to be secured December, with two years required to bring the plants closer to their full combined capacity of 445,000 barrels a day (bpd), he said.

    Kachikwu has offered to quit if the nation fails to meet its fuel needs locally by next year. When asked for his preferred timetable for boosting production, he replied: “Yesterday.”

  • Oando Plc boss, Kachikwu, others for Africa Oil Week in South Africa

    Oando Plc Group Chief Executive Adewale Tinubu and Minister of State for Petroleum Resources Dr. Ibe Kachikwu will be joining over a thousand key industry players to celebrate Africa Oil Week’s (AOW) 25th year event.

    AOW, in the past 25 years, has provided a platform for government officials, national and international oil companies, independents, investors, corporate players and financers to share their strategies for growth and better national participation in the oil and gas sector.

    The AOW platform is also aimed for stakeholders to engage in high level discussions on the future of the continent’s oil and gas industry, focusing on current challenges and trends and proffering solutions that will provide a positive and lasting impact for all.

    The conference, which kicks-off today in South Africa, with the theme: “The Leading Business Intelligence and Transaction Platform for Africa’s Oil and Gas Sector”, will play host to 16 ministers from across the continent, delegates from over 70 countries, 1,300 international CEOs and senior decision makers.

    Nigeria will be well-represented at the event with a cross section of delegates consisting of government and private sector leaders.

    Former President Olusegun Obasanjo will give a chairman’s welcome address at the event alongside former Minister for Africa, United Kingdom Mark Simmonds.

    Kachikwu will share the Nigerian perspective at the ministerial insights session with six ministers from other African countries.

    Tinubu will lead discussions on a panel session titled: “Can Africa upstream play a significant role in the context of the global and regional energy landscape?’

    This session will offer an objective market watch of the African oil and gas landscape, addressing the challenges and opportunities the industry is presented with.

    Oando has carved a niche for itself as an independent indigenous oil and gas company flying the Nigerian flag at global events that shape the future of the sector and Africa in general.

  • Court strikes out corruption suit against Kachikwu

    A suit seeking an order of mandamus to compel anti-corruption agencies to investigate and prosecute Minister of State Petroleum Resources Ibe Kachikwu for alleged declaration of assets infractions has been struck out.

    Counsel to Kachikwu, Dr. Muiz Banire (SAN) and Paul Erokoro (SAN), had sought the dismissal of the suit but Justice Folashade Ogunbanjo of the Federal high Court, declined because of the absence of the motion seeking dismissal before the court.

    The court had granted leave, permitting a civil society group, Kingdom Rights Foundation International (KHRFI), to commence a suit which centres on allegations of money laundering, operation of a foreign bank account, corruption and assets declaration irregularities against Kachikwu.

    Justice Ogunbanjo made the order on October 10.

    The plaintiff, KHRFI, through its ex parte application filed on August 23 sought the court’s leave to commence a suit seeking Kachikwu’s probe for the various allegations.

    Kachikwu was sued alongside the Ministry of Petroleum Resources, the Code of Conduct Bureau, the Economic and Financial Crimes Commission, President Muhammadu Buhari, and the Attorney General of the Federation, Mr Abubakar Malami (SAN).

    The plaintiff, through his lawyer, Okere Nnamdi, asked the court, in the substantive suit, to conduct a judicial review of the administrative action/inaction of the defendants to perform their constitutional and statutory mandates and obligations in connection with the investigation and prosecution of Kachikwu and also sought leave to commence the suit on October 10.

    But the suit was thrown out by the same court, thus vindicating Kachikwu, who had at various times insisted on compliance with the relevant law and rules in the declaration of his assets as against speculations flying around that his declaration was fraudulent.

  • Kachikwu: Fed Govt will end gas flaring

    The Federal Government is giving serious attention to stopping gas flaring, Minister of State for Petroleum Resources Dr Ibe Kachikwu has said.

    He spoke at the 2018 Graduation of the Petroleum Training Institute (PTI), Effurun, Delta State.

    Kachikwu said structures were being put in place for the execution of the National Gas Policy.

    The minister, who was represented by Mr Idang Alibi, noted that the Federal Government will expand the operations and functions of PTI to meet the targets of the administration.

    Kachikwu, who was conferred with the PTI Life  Recognition Award, said the Federal Government was serious about ending flaring and putting the gas to use.

    “This is in realisation of the place of natural gas as the energy of the future. Although it is not yet Uhuru as a substantial quantity of this precious resource is still being wasted through routine flaring, the Federal Government has become conscious of the need to drive the optimisation of value from this resource.

    “The Federal Government has doubled its efforts in ensuring effective policies that would drive gas utilisation and commercialisation. We have decided to invest in the Seven Critical Gas Development Projects in Nigeria. These projects would deliver about 3.4 billion standard cubic feet of gas per day to bridge the medium-term supply gap by 2020,” Kachikwu added.

    The Chairman of PTI’s Governing Council,  Mr. M. Ladan, said the Federal Government would reposition the institute to better meet the dynamic needs of the oil industry.

    “In order to achieve this, government has set up a Steering and Technical Committee. The committee is charged with the responsibility, among others, of reviewing the PTI mandate in line with global best practices. This will involve developing an implementable framework for the repositioning of PTI to meet its mandate of providing competent technological manpower through quality training, research and consultancy for the petroleum and allied industries,” Mr Ladan said.

    The Principal Sunny E. Iyuke said 400 graduates will be awarded National Diploma, 639 Higher National Diploma, while 47 will receive the PTI General Welding Certificate.

    Iyuke appealed to the IOCs and other operators to accept their students and avail them the opportunity to prove themselves.

  • Gas: FG will boost production by 3.4bn standard cubic feet in 2020 – Kachikwu

    THE Federal Government plans to deliver about 3.4 billion standard cubic feet of gas per day to bridge the medium-term supply gap by 2020, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said yesterday.

    He spoke at the 2018 Graduation of Petroleum Training Institute (PTI), Effurun, Delta State.

    Represented by Mr. Idang Alibi, Media Officer of the ministry, Kachikwu said government had decided to invest in the Seven Critical Gas Development Projects to achieve the feat in 2020.

    He said that the government had commenced utilisation and monetisation of the abundant gas resources of the country.

    “The Federal Government has doubled her efforts in providing effective policies that will drive gas utilisation and commercialization,” he said.

    “We have decided to invest in the Seven Critical Gas Development Projects in Nigeria. These projects will deliver about 3.4 billion standard cubic feet of gas per day to bridge the medium-term supply gap by 2020.

    “Also, the Federal Government is increasing attention to the eradication of gas flaring, utilisation and monetisation of the abundant gas resources of the country.

    “This is in realisation of the place of natural gas as the energy of the future, although, it is not yet Uhuru as a substantial quantity of this precious resource is still being wasted through routine flaring,” he said.

    Kachikwu said that two, out of the 38 approved modular refineries would be inaugurated in December, 2018, one in Delta and the other in Rivers, to boost fuel supply in the country.

    He also said that the government had set up a Steering Technical Committee to reposition PTI to take additional responsibilities toward meeting the targets for local content development in the oil and gas industry.

    “President Muhammadu Buhari has directed that the PTI School of Diving should be upgraded to international standards.  Efforts are ongoing to actualise the directives,” he said.

    The Principal of PTI, Prof. Sunny Iyuke, said the institution would continue to deliver on its mandate as contained in the Act establishing it.

    “I want to assure you that the Institute is on course to becoming the hub of human capacity development and contributing significantly to the Nigerian content in the petroleum industry,” he said.

    One thousand and eighty-six  graduands in the 2016/2017 academic session were awarded the Higher National Diploma (HND), National Diploma (ND) and PTI General Welding Certificates.

    A total of 637 graduated at HND level, 400 at ND level and 47 received the General Welding Certificate.

     

  • Refineries‘ll be fully functional next year, says Kachikwu

    Minster of State for Petroleum Ibe kachukwu said yesterday it will be sad if the nation’s refineries are not functional by the end of next yar.

    He added that the administration is committed to ensuring that the importation of petroleum products is curtailed.

    Kachukwu spoke at Ibigwe-Ohaji in Ohaji\Egbema council area of Imo State during the ground-breaking for construction of the  5,000 BPD Modular  Refinery by Walter Smith petro-chemical limited.

    The project is being partnered by the Nigerian Content Development and Monitoring Board (NCDMB)

    He said that the Buhari administration was committed to ensuring that the nation’s refineries became functional by the end of 2019.

    “It would be sad if by the end of 2019 we are still importing fuel from abroad.

    “So, we are committed in repairing the refineries; by that we can at least process about 500,000 barrels of crude per day.

    The policy of this administration is `go back to refining about 20 per cent of our crude which will move to 50 per cent in the next five years’.

    The Minister who commended management of Walter Smith for partnering the NCDMB to realize the project said that he was hopeful that in 18 months the modular refinery would be inaugurated.

    Executive Secretary of the NCDMB, Mr Kesiye  Wabote,  said the Board invested US $10 million to  catalyze the development of the Modular refinery and took 30 per cent equity in the project.

    He added that the NCDMB would divest when the modular refinery was fully developed and operational.

    Wabote pointed out that NCDMB  was promoting the Walter Smith Modular refinery as part of its capacity development mandate .

    He said that the investment was also in line with the Nigeria Content 10- year strategic plan.

    The Chairman of Walter Smith , Mr Abdulrazaq Isa, said that the Walter Smith 5,000 BPD Modular refinery was conceptualized in 2011 to mitigate the frequent outage of the third-party export trans-Niger pipeline.

    He added that it was to optimize the full value of the country’s produced crude through in-country products for the domestic market .

    “When operational in 18 months time we will.produce per day: Naphtha – 24,643 liters, Kerosene – 54,691 liters, Diesel – 300,168 liters, HPFO – 409,710 liters.

    “The refined products will be sold and evacuated from the refinery via dedicated trucks from bay five truck rack where products are loaded into the tankers.

  • Kachikwu for Nairobi summit

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, will join operators to address energy infrastructure deficiency in sub-Saharan Africa at the Africa Oil and Gas Summit in Nairobi, Kenya from October 10-12.

    The summit’s co-convener, Mr Oladeji Olawale, told reporters in Lagos that going by the United Nations projection, Africa’s population would hit 2.3 billion by 2050 while International Monetary Fund’s (IMF’s) projects that the continent will average 6.5 per cent Gross Domestic Product (GDP) growth by the same period, Africa has a lot to do to achieve economic prosperity and energy sufficiency.

    He noted that Africa holds about eight per cent of world’s proven oil and gas reserves with more new discoveries being made.

    According to him, population growth comes with increase in demand for energy and despite Africa’s adequate energy reserves. There is no infrastructure to these reserves to meet its energy needs. If urgent steps are not taken to address the problem, the energy deficit will get worse.

    It is in view of these challenges that the Sub-Sahara African Oil, Gas and Energy Summit (SSAOGES 2018)  will   enable stakeholders find solutions to the issues.

    Olawale said finance institutions, such as Afrexim, among others, would attend the event to meet with investors to discuss on energy infrastructure provision. He said there would speakers from power generating, distribution and renewable energy companies as well as oil and gas firms  from US, Germany, Britain, Russia and African countries, among others.

    The goal of the summit is to fashion out efficient ways to begin to develop the needed energy infrastructure for the future, he added.

  • Ministry defends Kachikwu

    The Ministry of Petroleum Resources yesterday exonerated Minister of State for Petroleum Ibe Kachikwu of any wrong doing.

    In a statement in Abuja,  it countered a report that the chairman of the Economic and Financial Crimes Commission  (EFCC ), Ibrahim Magu  was protecting the minister from trial.

    The ministry said “We wish to state, most categorically, that no one is shielding the Minister from prosecution because there is simply no cause for anyone or institution to shield him from anything for he has done no wrong deserving of prosecution. We also wish to let the public know that the issue of false allegations against Ibe Kachikwu and the individuals and companies mentioned by PAL is, actually, not a new one.”

    In the report, a group called Patriots of Anti-corruption League (PAL) claimed that the EFCC is covering up corruption allegations against Kachikwu.

    The ministry said:  “Invidious effort to impugn Kachikwu’s integrity first started in 2016 when a shadowy group of people came out with a claim that Kachikwu, in collaboration with some individuals and some oil and gas companies, had a case to answer in relation to oil subsidy fraud, a claim the EFCC thoroughly investigated and discarded because there was no substance to it.

    “The recent claim by PAL is, therefore, an attempt to rehash and repackage an old plot with a view to either blackmail Ibe Kachikwu into conceding some unnamed and unknowable favour or tarnish his good name. Whatever may be the motive of his traducers, just as that initial action failed to achieve the sinister purpose of its sponsors, this one by PAL will similarly fail as there is nothing that Ibe Kachikwu has done in the dispatch of his remit to warrant prosecution.

    “We once again wish to invite the discerning members of the public to note that in the current round of crusade to bring Ibe Kachikwu down, the sponsored news plant by PAL first appeared on an online publication on Monday, September 3.

    ” When its sponsors observed that it did not gain enough traction, they chose a more credible medium in ThisDay by causing the plant to come out a week later.

    “Ibe Kachikwu is a well-known individual and public official who has no stain on his character and every effort by mischievous and wicked individuals to prove otherwise shall fail woefully. It is key to note that the HMSPR has been the forerunner of the very successful reforms ongoing in the Nigerian “Petroleum sector of which Transparency and Accountability are critical reforms ongoing in the sector. The publishing of the monthly NNPC financial report, resolution of the cash call bottleneck, the Gas revolution and many others are few examples of these reforms.

    “He remains focused on ensuring that the sector is investor friendly and profitable.”