The Nation Newspaper

Tag: Kachikwu

  • Senate probes Kachikwu over alleged oil/ gas sector deals

    The Senate yesterday asked its Committee on Petroleum Resources (Upstream) to investigate alleged irregularities in the oil and gas sector lease renewal.

    The upper chamber said the lease renewal being undertaken by the Minister of State for Petroleum Resources, Mr. Emmanuel Ibe Kachikwu and the Department of Petroleum Resources (DPR), has led to massive loss of revenue.

    It said the Committee should submit its findings within four weeks as well identify appropriate measures to correct the alleged anomalies.

    The resolution followed the consideration of a motion titled: “Irregularities in the Ongoing Oil and Gas Lease Renewal and Massive Loss of Government Revenue,” was sponsored by Senator Omotayo Alasoadura (Ondo Central) and co-sponsored by senators Baba Kaka Bashir Garbai (Borno Central), James Manager (Delta South) and Gershom Bassey (Cross River South).

    Alasoadura in his lead debate noted that the Senate Committee on Petroleum Resources Upstream had since December last year been inundated with a plethora of petitions and complaints and had observed that there were multiplicity of irregularities surrounding ongoing renewal of oil and gas leases being undertaken by Dr Kachikwu and DPR.

    The lawmaker alleged that the Dr Kachikwu was “granting all manner of illegal discounts and rebates in the process of the ongoing renewal of the leases.”

    He expressed worry that the action of Kachikwu was capable of short-changing the country and denying the federation the appropriate revenue accruable from the renewal of the said leases.

    Alasoadura further allegde that the minister and DPR  were proceeding to renew leases of companies that had “brazenly and illegally refused to pay royalties due to government from oil and gas lifted by the said companies in contravention of extant laws.”

    He said: “Under the provision of extant laws, failure to pay royalties is a ground for revocation of leases and a legal barrier to renewal of applicable leases.”

  • How OPEC lifted oil sector, by Kachikwu

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu said yesterday that the oil and gas sector had witnessed positive transformation since the “Declaration of Cooperation” by the Organisation of Oil Exporting Countries (OPEC) and non-OPEC members.

    Dr. Kachikwu spoke to reporters on the sideline of the seventh OPEC International Seminar in Vienna, Austria, with the theme “Petroleum: Cooperation for a Sustainable Future.”

    The Declaration of Cooperation refers to the agreement by OPEC and several other non-OPEC producers to cut oil supplies from January, 2017.

    The aim was to lift the oil prices that had plunged from above 110 dollars per barrel in 2014 to below 30 dollars in 2016.

    A deal to extend the cut, which has boosted prices to around 70 dollars per barrel now, was agreed in November, 2017. The output cut agreement will however end in December.

    “The gain has been a lot. NNPC has done a wonderful job of stepping up at the right time to make sure our production volume increases, thereby allowing us to benefit greatly from the agreement.

    “I congratulate them (NNPC) because if we had all these cooperation and we have no volume, there will be a loss. So, the volume has been sustained between 1.9 million to 2.1 million barrels per day.

    “What that means is that we have been able to reap the benefit of the rise in price in order to finance our budget.

    “We have also been able to increase our foreign reserves and state governments are now able to pay salaries as at when due, largely due to the improvement in oil prices,” said Kachickwu.

    He urged the oil producers to be people conscious in their policy decisions knowing that their decisions have environmental and economic implications.

    “I think there is too much focus on tightness of market and short term responses.

    “I hope that doesn’t lead us into a very frenzied action plan that simply reverses the whole gains that we’ve had over the last few years.

    “Sustainability for third world countries is a different discussion altogether.

    “It is not about market fundamentals and rebalancing and cuts in production volumes, but about the environment, economy and impetus for development such as electricity for the people, environment clean ups and so on,” he said.

    Kachikwu also urged oil companies to cooperate with host communities and take seriously their Corporate Service Responsibilities.

  • Speedy approval of FDP will attract investments, says Kachikwu

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said speedy approvals of Field Development Plan (FDP) by the Federal Government will attract huge investments into the oil and gas sector.

    Kachikwu disclosed this while delivering a keynote address at a technical symposium on Field Development Plan (FDP) approval process, organised by the Society of Petroleum Engineers (SPE) Lagos section 61, in Lagos.

    The minister, who was represented by the Senior Technical Adviser in the Ministry of Petroleum Resources, Mr. Johnson Awoyemi, said FDP was one of the fundamental criteria in the development of upstream exploration and production projects in Nigeria.

    He noted that the symposium  was not only apt, but very timely, adding that SPE serves as a platform for promoting and disseminating technical knowledge and advice to government on policy initiatives regarding the development and production of oil and gas resources.

    According to him, the government is ever ready to partner any creativity on the part of SPE that will add value and enhance economic sustainability along the oil and gas value chain.

    He said it is important that government acts quickly to evaluate and approve FDPs, thereby, ensuring that investors’ momentum does not dip, adding that some of the main issues that have resulted in approvals delay are the inadequacy or incompleteness of plans that do not address all the project development issues.

    He said: “Hence, as part of our 7 Big Wins, we initiated the Nigerian Gas Flare Commercialisation Programme (NGFCP) as a solution. The purpose of the NGFCP is to eliminate wastage of gas, thereby, stimulating economic growth, driving investments and providing jobs in the nation through the use of widely available innovative technologies.“

  • Kachukwu lays foundation for oil and gas city in Bayelsa

    The Minister of State for Petroleum, Ibe Kachukwu, on Friday performed the groundbreaking ceremony for an Oil and Gas City in Emeyal 1 close to Otuoke, the ancestral home of former President Goodluck Jonathan in Ogbia, Bayelsa State.

    Situated in a vast parcel of land, the project is a fulfillment of Federal Government’s promise to make communities in the Niger Delta region industrial hubs for oil and gas.

    Vice-President Yemi Osibanjo had during his tour of states in the Niger Delta said as part of efforts to sustain the peace and develop the region, the federal government would transform oil-producing communities into destinations for oil and gas activities.

    The Nigeria Content Monitoring Development Board (NCMDB) led by its Executive Secretary, Simbi Wabote, developed the project in line with the vision of the government for Niger Delta development.

    Speaking at the groundbreaking, Kachukwu assured that the project would be completed within its timeframe, adding that he would like to be remembered as a minister of completed projects.

    Addressing dignitaries, traditional rulers and community folks that witnessed the ceremony, he said: “President Muhammadu Buhari completely believes in this project. He thanks you for the audacity of hope and the challenge to develop and self-help and the cooperation you give to NCDMB. He has promised to do everything in his power to ensure that this is not one of such projects that are started and abandoned.

    “The challenge most of my colleagues and heads of parastatals do have with me is that I don’t go to visit projects unless you can show me the tracks to completion. I don’t want to be one of those ministers who when they leave have lots of commenced but abandoned projects.

    “I want to be one of those remembered for few completed projects. The Executive Secretary showed me the tracks to completion. My promise to you is that we will complete this project in record time.”

     

  • Kachikwu among 100 most influential Africans in 2017

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has been named by a London-based magazine, New African,  as one of the 100 Most Influential Africans of 2017 in Business and Finance category.

    Director, Press and Public Relations, Ministry of Petroleum Resources, Mr. Idang Alibi, who stated this in a statement made available to The Nation said: “In a letter signed by Mr. Omar Ben Yedder, Group Publisher and Managing Director, congratulating Dr. Kachikwu, the magazine’s publishers said their organisation is ‘’dedicated to changing the African narrative and fighting for its interests, and hope to continue on this journey alongside people engaged in transformational roles across the continent such as your good self.’’

    Alibi, who quoted Yedder, said it has become the tradition of the publishing outfit to dedicate its annual year end edition to “celebrating and reflecting on what shaped the African continent in the past year and highlighting the men and women, who were change-makers and influencers in a number of sectors and industries.”

    “It is in accordance with that tradition that Dr. Kachikwu was spotlighted as one of the greatest influencers of the continent, last year,”Alibi said.

    The magazine publisher, according to Alibi, however, reiterated that Africans have excelled in many of their endeavours in the year 2017, both in terms of overcoming hurdles and looking to a positive future and congratulated Dr. Kachikwu and other Africans, who were honoured for their outstanding achievements in 2017.

  • Kachikwu urges Oando to proffer ‘creative solutions’ in oil industry

    •Minister inaugurates oil firm’s $150m Wings Office Complex   

    Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu has urged oil firm Oando PLC to keep proffering creative solutions to challenges in the petroleum industry.

    He spoke yesterday while inaugurating the firm’s new office space, the Wings Office Complex.

    The complex, which is located on 17A Ozumba Mbadiwe, Victoria Island, cost about $150 million.

    Kachickwu, who hailed the company’s feat, said: “Oando has shown uniqueness as a Nigerian oil company showing support to the Government and the Nigerian populace. The building has been developed using water, sand, cement, bricks, steel, concrete, wood and glass, all are elements attributable to transparency and strength.

    “The future is very demanding; I urge you to continue to inspire and be creative in the solutions that you proffer in your sector and for the nation.”

    Four years after its ground breaking ceremony, Oando surmounted all odds to complete the world class office complex, which gives credence to the company’s resilient and daring spirit.

    Considering the skepticism associated with investing in Nigeria, more so the oil & gas sector in recent times, Oando scored the trust and support of two South African companies, RMB Westport and Redefine Properties, who put equity in the project.

    This is the first time both companies are investing in commercial property in West Africa, a development experts termed as showing the level of faith they have in the vision of the Wings project and Oando’s management team.

    Group Chief Executive, Oando PLC Wale Tinubu, said: “At Oando, passion is not only one of our core values, it drives our ambitions. The idea for the Wings Office Complex was conceived in 2009 and the build kick-started in 2013.  At the time, it seemed a lofty dream; both in terms of size and the type of structure we envisaged.  We commenced the construction of Wings at a time when the price of oil was around $100; despite the 2014 crash in oil prices to $23 per barrel, the 60 per cent devaluation of the naira and the 13-month long economic recession, we pushed on. Today, the two towers stand tall as testament to indigenous companies like Oando, which continue to lead and set the standard for excellence. The project signifies the end to a series of capital projects that we have pioneered, invested in and built.”

    Tinubu acknowledged all those who made the project possible.

    The CEO, Stanbic IBTC Capital representing the CEO for Stanbic IBTC, Funso Akere said: “Stanbic IBTC Bank PLC together with Standard Bank of South Africa is proud to have supported the completion of this landmark real estate project in Nigeria, which would catalyse the development of similar ground-breaking real estate projects and serve as a benchmark for investment grade office buildings in Nigeria.

    In addition to RMB Westport and Redefine, Oando received financing from local and international banks, specifically RMB Bank and Standard Bank in South Africa and Stanbic IBTC in Nigeria, to create this world-class office building that encompasses panoramic views of Lagos from every floor. The structure also boasts of 24-hour power, central cooling with noise minimising building acoustics and external cladding designed to limit direct solar gain.

    The Wings Office Complex is home to leading brands such as Ericsson, RMB Bank and Oando employees.

    “It was built with the intention of accommodating all our Lagos based staff, to act as our new Head Office, enabling us finally relinquish leased space in Lago,” the firm said.

    Other dignitaries in attendance at the ceremony were Tony Elumelu, Herbert Wigwe, Bola Adesola; CEO Standard Chartered Bank, Oba of Lagos Rilwan Akiolu, representatives of the Emir of Kano and Alhaji Dahiru Mangal.

     

     

     

     

     

     

     

  • Kachikwu to IOCs: reduce oil production cost

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu yesterday urged International Oil Companies (IOCs) operating in the country to either produce oil at a reduced cost or allow the mineral deposit to remain in the ground.

    He noted that Petroleum Industry Governance Bill (PIGB) would address the issue of cost in the country since Nigeria operates one of the highest costs of extraction among oil provinces in the world.

    Represented by his Senior Technical Adviser, Engr. Johnson Awoyemi at the symposium on PIGB in Abuja, Kachikwu however insisted that “It is clear and clearer that we either produce the oil at a good cost, or we leave it in the ground.”

    Continuing, the minister said it is time to tweak existing industry laws and come up with a new legal, institutional, commercial framework that will liberalise the industry as well as create a competitive business environment that will enhance Nigeria’s revenue.

    He noted that North America is becoming more energy self-reliant, Europe has technology in alternative energy and China maintains a grip on the natural resources of the entire African flank, in addition to the search for oil and gas through fracturing at home front.

    According to him, Nigeria’s opportunity to benefit maximally from the petroleum industry is narrowing.

    He said: “It is clear that the shale play revolution is gradually changing the geopolitics of oil with ripple effects likely to linger on for years which could have a serious global implication if we don’t put our house in order.”

    The minister said policy in response to the situation should be to grow gas based industries and start looking inwards in capturing the Nigerian market rather than searching for foreign market.

    Kachikwu said domestic utilisation of gas resource will help the country grow its local manufacturing sector which will also have a multiplier effect on employment that has been a serious concern.

    “Numerous discoveries of petroleum in the East and sub-Saharan African region signify more incentives and new licenses are up for grabs for investors who would need a more stable business climate.

    “This is no good news for us, as increased supply base in the oil and gas in the international market making the market share getting tighter. But by the virtue of the size of the country’s assets we, will have a competitive edge once we begin to take advantage of our enormous gas resources and our new laws that are more competitive,” Kachikwu said.

    Speaking with reporters at the symposium, the Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Waziri Adio, said the non-passage of the Petroleum Industry Bill (PIB) has cost Nigeria over $200billion in the last 10 years.

    The losses, he said, were either due to uncertainty, lack of clarity and lack of transparency but the country moves on as if it is the lone owner of oil whereas other countries have oil which is going out of fashion.

    He said: “The first thing is that we have incurred enormous cost in the last 10 years that we tried to pass this bill either because of uncertainty, lack of clarity, lack of transparency and all of that.  And the last time we checked this it was estimated at more than $200billion. That is a lot of money and we carried on as if to we are only ones with oil. Everybody has oil now. And oil is also running out of fashion.”

    Adio said since there is no time to waste any more, Nigeria should not wait until the bill is signed into law before thinking about the next steps to take.

    To him, the country should not wait until the law is perfect before looking forward since the lawmakers are there to amend it.

    Meanwhile, Nigerian Union of Petroleum and Natural Gas (NUPENG) President Comrade Igwe Achise expressed fear over the silence of the bill on the global concern about “industry 0.4.”

    He urged the stakeholders to brainstorm about the short, medium and long term means of taking the oil and gas industry to the next level.

    He charged the National Assembly to look into other parts of the bills and pass them as quickly as possible to stimulate the Nigerian oil and gas industry into a booming sector.

  • Local refining: Fayemi, Kachikwu for conference

    Minister of Mines and Steel Development, Dr Kayode Fayemi, and Minister of State for Petroleum Resources, Dr Ibe Kachikwu, have been named as participants at the 2018 Sustainability in the Extractive Industries (SITEI) Conference and Exhibition.

    The two-day event, organised by business sustainability outfit CSR-in-Action, will hold in Abuja on May 21 and 22 May.

    SITEI 2018, themed ‘Using Extractives Technology to Promote Local Refining by 2019: A Sustainable Approach’ will feature over 30 seasoned speakers drawn from the sector, including over 500 senior executives.

    According to CSR-in-Action, it will focus on “the need to identify and promote areas in which extractive players within Nigeria may facilitate multi-sectoral collaborations to develop, adopt and promote technologies that will lower their running costs, increase profit margins, encourage transparency, curb capital flight, enable growth of the local economy, and reduce environmental degradation and social menace.”

    CSR-in-Action Chief Executive Officer and Co-Convener of SITEI, Bekeme Masade, stated that this year’s event is geared towards enhancing the use of technology in the sector as well as forging lasting partnerships.

    Masade said:  ‘’Creating awareness for the need to promote the  use  of technology in the extractive sector, as well as identifying possible partnership opportunities available in the extractive, science, technology, and communication industries, are at the centre of the conference.”

  • Kachikwu: Fed Govt will support local investors

    The Federal Government will make the environment conducive for local firms willing to invest in the country, Minister of State for Petroleum, Ibe Kachikwu, has said.

    Kachikwu, who represented Vice President Yemi Osinbajo, spoke after inspecting ongoing works at the fabrication/welding yard of Kaztec Engineering Company at Snake Island, Lagos.

    According to him, firms willing to take advantage of the government’s policy of ease of doing business will be fully supported to set up and maximise profit.

    He said: “The reason for visiting this site is to see where concrete engineering facilities are being developed and see how to integrate them into the oil industry.

    “I am impressed by what I have seen so far. It’s a huge development but still a long way to go because nobody will keep investing money if they don’t get the required patronage. The reason for this tour, with oil firms and other parastatals, is to draw attention to the fact that there is a low hanging food here where we can develop the country and create jobs.

    “This facility has the capacity to create between 2,000 and 3,000 jobs. The land is about 500 hectares. It’s a massive project; Kaztec has the capability but it needs support, and we will draw attention to that.”

    Kachikwu reiterated the government’s determination to reactivate industrial activities to create jobs, through its ease of doing business policy, an environment where there are no delays in granting approvals for businesses.

    He said: “For local investments coming into the industry, we have seen about four to five years projection and about N30 to N40 billion worth of investments, with firms springing up to bridge the infrastructure gap.

    “What the government does, through the Vice President Yemi Osinbajo-led team, is to create an environment for ease of doing business, an environment where there are no delays in approvals. The fact that I came here shows that the government is very interested in what happens at these base levels.

    “Companies are cutting down substantially on costs of projects; they are beginning to see reasons why they should engage local contents in their productions since it may be cheaper to do it here. Facilities like the one Kaztec is putting up here make it cheaper to do business here, and these are the things we are fighting for.

    “Within the realm of the difficulties we inherited, and where the president is taking us to, we are doing the best we can to get attention, get mileage to make the industry work. This is what we have done by visiting China and India to get the attention of potential investors.

    “We are doing everything we can to ensure these projects come on board. But there are lot of things to consider before this. These firms need financial investments; they don’t take equity money to do these things but loanable funds.”

    The Managing Director of Kaztec, Emeka Ofor, said the site was set up to deliver fast and quality products that will match and create opportunities for local investors.

     

     

     

     

     

     

     

     

     

  • Kachikwu: Nigeria needs $100b oil investments

    Kachikwu: Nigeria needs $100b oil investments

    • Fuel scarcity ‘ll continue

    The Minister of State, Petroleum Resources, Dr. Ibe Kachikwu yesterday told Vice President Yemi Osibanjo that the Federal Government is expecting over $40billion investments in the oil and gas sector in the next five years. He said about $100billion is needed to revive the sector to contribute to the development of the nation.

    He urged the government to quickly make some policies decisions to review the issue of cost of production, address Niger Delta and security issues.

    He said one or two of the International Oil Companies (IOCs) have been able to attain a production cost of $15 per barrel, stressing that “we need to get everybody else to buy into that model.”

    Three of the modular refineries, he said, are beginning to crystallise and will hit 10 this year and by the end of next year, real time delivery on refining will be in place to reduce the forx spent on fuel importation.

    He spoke at the closing ceremony and the media session of the first Nigerian International Petroleum Summit in Abuja.

    Responding, Osibanjo said many countries in Asia and other continents are developing alternatives to oil while some African countries are just joining the league of producers.

    He said the volatility of the market is a challenge that requires synergy among oil producing countries, adding that “for us in Africa, we have to make out the best to overcome these new resources before it is too late. Together, we can surmmount our hurdles faster than if we want to do it individually.”

    Osinbajo assured participants that the Nigerian experiences can be useful to African countries that have just joined the league of oil producers.

    He said the summit provided opportunities for collaboration among Africans for the encouragement of local content development.

    Although the Nigerian National Petroleum Corporation (NNPC) has been working hard to address the situation, the minister said there was no hope that the fuel scarcity situation in the country would change completely.

    “I don’t think (the scarcity has gone). I don’t think so because there are some importation that are taking going on and there are reserves that are being rebuilt. But I think what they have done is to manage some logistic angle somewhere there.”

    Kachikwu however expressed hope that as March approaches, products are going to become cheaper because of the summer issue. Some marketers who have efficiency issue might begin to bring in new cargoes to supplement.

    Kachikwu however explained that the $100billion should have come into the sector from gas infrastructure, gas flare-out investment and replacement of existing dilapidated pipelines. But what the country is looking forward to in the next five years included the “three very key projects Engina 200,000barrel per day, contributing $15billion, the Bonga about $10billion, the Zabazaba about $12billion. We have investments that are coming into the downstream refineries which is $2.5billion and $3billion.  We have the AK pipeline that is about $3billion. If you add up all of that, it is in excess of $40billion.

    “My point is that $40billion isn’t enough. We need to be targeting about $100billion investments in the sector to revive it for its maximum contribution.  That target is mostly from gas plant, infrastructure, gas flare out recycle investment which take a lot of money and the replacement of existing dilapidated pipelines.”