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Tag: Kachikwu

  • Kachikwu lists gains of gas policy

    Kachikwu lists gains of gas policy

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has listed the benefits of the National Gas Policy.

    Kachikwu said the policy would make gas a hub of the economy, stressing the need to have a stream of revenues between petroleum and gas to improve the economy and leverage opportunities in the oil and gas sector.

    He said: “This policy document builds on the policy goals of the Federal Government for the gas sector as presented in the 7 Big Wins initiative developed by the Ministry of Petroleum Resources and the National Economic Recovery & Growth Plan (ERGP 2017 – 2020).

    “The policy articulates the vision of the Federal Government, sets goals, strategies and an implementation plan for the introduction of an appropriate institutional, legal, regulatory and commercial framework for the gas sector. It is intended to remove the barriers affecting investment and development of the sector. The policy will be reviewed and updated periodically to ensure consistency in government policy objectives at all times.

    “The gas policy intends to move Nigeria from an oil-based to an oil and gas-based industrial economy, which will be driven by the core principles by separating the respective roles and responsibilities of government and the private sector, establish a single independent petroleum regulatory authority, implement full legal separation of the upstream from the midstream, and implement full legal separation of gas infrastructure ownership and operations from gas trading.”

    Other benefits include realising more of the liquefied natural gas (LNG) international downstream value, pursue a project-based, rather than a centrally-planned domestic gas development approach and make a strong maintenance and safety culture a priority.

    It will also ensure the implementation of international best practice for environmental protection, establish strong linkages with electric power, agriculture, transport and industrial sectors, establish payment discipline throughout the energy chain, honour stability of contract terms, ensure security of assets and ensure compliance with the Nigerian Content Act.

    The National Gas Policy covers governance (legislation and regulation), industry structure, development of gas resources, infrastructure, building gas markets and development of national human resources.

  • Kachikwu: Nigeria must produce fuel locally

    Kachikwu: Nigeria must produce fuel locally

    The Minister of State, Petroleum Resources, Dr. Ibe Kachukwu, yesterday lamented that Nigeria is the only oil producer struggling with the importation of refined petroleum products. The situation is a complete embarrassment, he said.

    Kachukwu, who spoke at the fifth Triennial National Delegates Conference of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, also said it was shameful  that despite its huge resources, Nigeria 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 the country 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 gas, adding that at best, the nation’s oil reserve will last for between 25 and 39 years. The gas reserve will last for over 60 years.

    He said: “For me, the whole idea of continuing importation of petroleum products in this country is a shame. We are the only one, when we go for OPEC meetings, that are still struggling about 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 happens, 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 Nigerian to move the transformative journey from one point to another, from the point excuses to the point of absolute final delivery.”

    Kachikwu 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 boost it. The reality is that investments are declining at an alarming rate and suddenly, there are new entrants into the industry.

  • Kachikwu opens $0.6m Austin Avuru geosciences building at UNN

    Kachikwu opens $0.6m Austin Avuru geosciences building at UNN

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, graced the opening of a new geosciences building at the University of Nigeria, Nsukka (UNN) in Enugu State as special guest of honour.

    According to the Africa oil gas Report, the building was constructed over a period of two years at a cost of N190 million, (about $0.6 million) by Platform Petroleum Limited (PPL), an independent Nigerian E&P company, which operates the 1,800 bopd Egbaoma field.

    Platform donated the new building to the university in honour of Austin Avuru, the company’s founder, who was also its first Chief Executive.

    Avuru is the Chief Executive ,  Seplat Petroleum Development Company Plc, a London listed E&P firm established  as an incorporated joint venture between Platform and Shebah Petroleum.

    Kachikwu, an alumni of UNN,  attended the ceremony alongside,   Edmund M. Daukoru, a former Minister of State for Petroleum Resources and a pioneer Chairman,  Board of Directors  Platform Petroleum Limited, as well as Dumo Lulu-Briggs, the company’s chairman and  Sylvester Adegoke, a professor of geology and former Chairman of Platform.

    Other distinguished guests include ABC Orjiako, chairman of SEPLAT, Bolaji Ogundare, Managing Director of Newcross Petroleum, a 40 per cent joint venture partner with Platform on the Egbema field; and the University’s Vice Chancellor, who is the chief host. Chief executives of other oil companies were also expected.

    According to Platform Petroleum, the facility, which is christened Austin Avuru Building, “is the first corporate social responsibility (CSR) intervention by the firm outside of its operation site and host communities around the Egbema oil field, came out of the desire of the company to support Mr. Avuru’s desire to reduce the huge infrastructural deficit at his alma mater.”

    The new building is much bigger than the old dilapidated departmental building and will provide office space for lecturers as well as laboratories and lecture halls for students.

    Platform Petroleum Limited is wholly owned by Nigerians, Operator of the Egbaoma field (formerly Asuokpu/Umutu) located in the northern Niger Delta of Delta State. Platform Petroleum Limited is in a Joint Venture partnership with Newcross Petroleum Limited. Egbaoma field is located oil mining lease (OML) 38 with Over 200 Nigerian staff.

  • Refineries produce 22% of fuel consumption, says Kachikwu

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu has said the nation’s refineries produce only 22 per cent of the daily national premium motor spirit (PMS) requirements.

    The Minister who spoke yesterday in Abuja noted that the poor production from the refineries accounted for the huge cost of importation of petrol in 2016 approximated at N3.35trillion, adding that it is this reason that government wants private sector entrepreneurs to fix the refineries and make the country exit importation and subsidy payment by 2019.

    Kachikwu said: “The Federal Government made an approximated 20 metric tons of importation of petroleum products valued at about N3.35trillion last year (January to December, 2016). As a result of this we are trying to make the refineries work at full 100 per cent nameplate capacity.

    “Currently, national average refining output is at six million litres daily as against daily consumption of 35 million litres of PMS (petrol) reflecting an output of 22-24 per cent.

    “Also close to 30 per cent of foreign exchange allocation given by the Central Bank of Nigeria (CBN) goes to the petroleum sector imports, which is a huge drain on the nation’s foreign exchange.  Current reality is that the Nigerian National Petroleum Corporation (NNPC) takes responsibility as the last resort importer takes upfront payment of subsidy to do this and there is a huge amount of job losses that arise when refineries are not utilized.

    “What we are doing is to target cease of importation of petroleum products by 2019and get advantage in terms of foreign exchange conservation, job creation, stability of market in terms of price and production. We want to transit from an OPEC member that imports to local processing hence we seek financing to repair the refineries.”

  • Reps, Kachikwu square up over petrol pricing

    The members of the lower legislative chamber are crossed with the Minister of Petroleum Resources, Ibe Kachikwu over what they described as the arbitrary pricing of petroleum products in the country.

    The House of Representatives had specifically requested explanation from the federal government on the rationale behind its importation of 95 percent of the nation’s consumption requirement of Premium Motor Spirit (PMS) petrol while leaving five percent to the private sector.

    This is as the Minister of Petroleum Resources, Ibe Kachikwu restated the 2019 total exit date for importation of petrol with the refurbishment of three refineries to aid the process.

    Kachikwu said 100 percent refining of crude oil will reduce the foreign exchange allocation by 30 percent.

    While addressing members of the Ad hoc Committee investigating review of PMS price, Kachikwu said Nigeria cannot afford to be left behind by global trend whereby countries are exiting sale (export) of crude oil but concentrating on refining and selling.

    He told the committee that it was along this line that the federal government is determined to ensure that the country exit subsidy in downstream sector of the petroleum industry.

    He however regretted that the gains so far recorded in the deregulation of some petroleum products are being affected by pricing of the product.

    He said: “What you see a lot of countries do is that people are moving away from selling crude, they are moving to refining their products and selling out the refined products, whether it is white product, whether it is diesel, whether it is black product and the rest. So people are moving away from this crude exportation.

    “What this mean for me is that the demand for investment in the downstream refining and processing facilities are going to be high and the investment capitals are going to be challenged and you are going to have to compete with the rest of the world who been initially been crude exporters.

    “Products that have been largely deregulated like kerosene, how has that performed? Our performance on the deregulated products is commendable but there’s still a struggle because of volatility and access of forex.

    “As a result, we have to move away from price parity to look more into cost-based pricing structure.

    “The pricing structure has created fears for investors and that is why there is a need to avoid what is happening to gas where operators export and leave local market (consumption) struggling.”

    Chairman of the Ad-hoc Committee, Nnanna Igbokwe (PDP, Imo) expressed concern over the structure of importation of petrol asking why only five percent of the country’s consumption requirement was allocated to private sector participants.

    “In the interim, while making steps to enhance supply of PMS through oil production and shore-up supply of PMS through the Direct Supply Direct Purchase, you need to guide against sabotage of good government’s programmes,” Igbokwe said.

    The Committee is set to visit Nigeria’s neighbouring countries with a view of assessing their petrol prices, among others.

  • Kachikwu’s tales and DSS shadow-boxing

    Amidst gloomy stories such as ‘$480b stolen from Nigeria between 1960-2004’, (Chatham House report); ‘$182b lost through illicit financial flows between 2005-2014’, and other stories of billions allegedly traced to former chieftains of NNPC or abandoned at airports or Bureau de Change, the tales about NNPC’s giant strides and its achievements by Ibe Kachikwu, the Minister of State for Petroleum Resources ought to have come as some sort of relief to Nigerians. Speaking as a guest on a BBC Hard Talk in London only this Monday, the minister had assured Nigerians of self-sufficiency in the local refining of petroleum products by 2019. The refineries that were down before they came on stream two years ago, according to him ‘now produce about seven million litres a day’. Besides removing and renegotiating cash call deficit of over $6bn and moving NNPC into a profit-making organization for the first time in our nation’s history, he also announced the ‘signing of an agreement with the international oil giant, Agip, for the firm to build a refinery in Nigeria’.

    Undoubtedly, Kachikwu and the Buhari administration deserve commendation for the successes he claimed they have chalked up in the last two years. Unfortunately this however has been marred by the news of the arrest of Ifeanyi Uba, the chairman of Capital Oil and Gas Limited by DSS over an alleged theft of N11b worth of fuel deposited in his depot by NNPC. For many Nigerians, the development was enough evidence that the battle of NNPC often regarded as the most corrupt institution in Nigeria is yet to be won in spite of Kachikwu’s celebration.

    A statement by the spokesman for the DSS, Tony Opuiyo, claimed the arrest of Ubah was sequel to his alleged engagement in acts of economic sabotage which include stealing, diversion and illegal sale of petroleum products stored in his tank farm by the Nigeria National Petroleum Corporation (NNPC). The DSS spokesman also affirmed that “it has been established that the products stolen amount to over N11bn. However, an unnamed  senior official ‘s of Ubah’s Capital Oil and Gas Ltd was reported to have said  the DSS was being economical with the truth as to the actual transactions between Ubah’s company and NNPC. Unfortunately with the baleful legacies of NNPC, it is doubtful if many Nigerians will swallow the DSS story that Ubah “stole and diverted petroleum products stored by the NNPC in his depots” without the collusion of NNPC officials, if that ever happened.

    But beyond this, what will be of concern to many Nigerians is the prospect that Kachikwu’s advertised successes  and others that will be chalked up  before 2019, may have no effect on the lives of ordinary Nigerians  if the nation is still going to be held hostage by tank farm owners after Buhari’s four years government of change. Nigerians have not forgotten that owners of tank-farms and their friends, the tanker owners were linked to the vandalisation of the over 400 kilometres of pipeline put in place by Obasanjo before he left office in 1979. If NNPC is unable to maintain the massive tank farms government built in Ikorodu or build new ones, undertakings that are much easier to accomplish than managing refineries, Kachikwu’s tales of giants stride made in local refining of petroleum products are not likely going to amuse Nigerians.

    Nigerians also remember what was in place when Obasanjo was sworn in as president in 1999. There was the NNPC Act 1977 which saddled the Minister of Petroleum with the responsibilities of “regulating and fixing petroleum product prices and supervising the MPR/DPR that has sole regulatory authority over technical standards, refining, and logistics in the sector”. There was also  the Pipelines and Product Marketing Company, (PPMC) which was set up in 1988 by his predecessor to “profitably and efficiently market refined petroleum products in the domestic as well as export markets, especially in the ECOWAS sub-region, provide marine services and also maintain uninterrupted movement of refined petroleum products from the local refineries.” Then following the swearing in of Obasanjo, artificial fuel queues sprang up overnight in our filling stations. Lawmakers who publicly complained they needed to recoup the expenses incurred in running for elections by selling their personal houses outwitted Obasanjo who was stampeded to set up the PPPRA through a bill, debated and passed within three months. Its mandate which was not markedly different from those of the two existing Acts was to “liberalise the downstream sector of the petroleum industry, privatise the refineries, deregulate and liberalise the imports of petroleum products and, generally, make the products available at reasonable prices”.

    It was obvious PPPRA was set up primarily to serve the interest of the new power wielders in Abuja and as it turned out, the new inheritors of power ensured the first recorded achievement of PPPRA was its fraudulent claim that it spent N2.1 trillion on phantom subsidy in 2011, a figure brought down to less than one trillion in 2012 following protest by Nigerians. Then there was the theft of N1.7 trillion according to House Committee probe report, in 2011 during the tenure of Ahmadu Alli, as chairman of PPPRA. It was perpetrated by politicians and their fronts who according to Audu Ogbe, a former PDP chairman, “never imported a bottle of fuel”. The body also went on to increase the number of fuel importers from less than a dozen to 128 as patronage to politicians and their fronts. We can also add PPPRA’s fraudulent claim that the nation consumed 60.25 million litters in 2011, a figure that also went down to 39.66 litres in 2012 followed intervention by the Lower House.

    Besides the overlapping functions of PPMC and PPPRA, it is obvious from the above that the stakes are very high for so-called beneficiaries of deregulation in the oil sector who in the last 16 years have instead of building refineries, chosen to fall over each other in erecting the largest storage facility in the world and rent same to NNPC. PPPRA which  has demonstrated greater commitments to importation of refined petroleum products as against making our own refineries work depends on the storage facilities of members of Depot Petroleum Products Marketers Association (DAPPMA) (Obat Petroleum is reputed to have the largest and most modern storage facilities in the world). It also patronises Independent Marketers Company (NIPCO) that has invested billions in storage facilities and a jetty in Apapa. It also relies to some degree on the services of Oando and Zenon petroleum companies that jointly control over 200 trucks and a jetty owned by Zenon.

    The stakes are too high for those who have made huge investments on tank farms and live as parasites in the last 17 years. They will remain hostage takers long after the expected Kachikwu’s attainment of self -sufficiency in local production. Since this cannot be wished away, Kachikwu and the government must find the political will to negotiate with these determined and unrepentant hostage-takers. The ongoing shadow boxing between DSS and Ifeanyi Ubah while NNPC behaves like an unconcerned onlooker, is enough evidence that the government has very few choices.

  • No cabal working against Kachikwu in the villa – NICreL

    No cabal working against Kachikwu in the villa – NICreL

    Contrary to the story making the rounds on social media that the Minister Of State For Petroleum, Ibe Kachikwu has been prevented by a cabal in the presidential villa from discharging his functions, the New Initiative for Credible Leadership [NICreL) has rubbished the report, describing it as untrue and baseless.

    NICreL said the story emanated from some jealous individuals in the oil sector, who were hell bent on creating animosity between the minister and his principal .

    The group noted that the Minister has been working with the Acting President on their common understanding of issues in the sector in making sure that the oil industry continues to blossom in the absence of President Muhammadu Buahri.

    Steven Onwu, the Executive Secretary of the group in a terse statement issued on Thursday, called on the general public to disregard the media hearsay in entirety as it has no iota of truth.

    Onwu described the minister as thoroughbred professional in the sector, who remains committed to engineering various reforms that would see to the growth of the industry in line with the administration’s commitment in that key sector of the nation’s economy.

    He said, “Stories making the round that Kachikwu is being prevented from discharging his functions by a certain cabal in the presidency is an attempt by mischief makers to create unnecessary friction between the Honorable Minister of Petroleum and the rest of the cabinet that have been working very hard in the absence of President Buhari to pilot the affairs of the nation where all concerned parties have been making meaningful impacts to the amazement of all Nigerians.

    “The story was the creation of demonic elements within the oil and gas sector, which have access to the media and are out to paint the Honourble Minister black before his principal and members of the public.

    “They should desist from creating such unnecessary false and malicious alarm especially at a time that the Minister is busy improving on the level of peace and tranquility in the Niger Delta region which has in turn ushered in considerable improvements in the nation’s revenue and general economic outlook .”

    The group added that Kachikwu, since his appointment has remained dedicated to his duties like every hardworking member of the Federal Executive Council and has neither complained to anyone about his designation rather helped to ensure that the administration delivers on all it’s set objectives and promises to the overwhelming majority of Nigerians.

    It further called on those who are still pained within the oil industry about the transparent leadership of Kachikwu to seek engagement elsewhere as there will be no room for them to carry out their evil plans.

  • Kachikwu: govt is settling JV cash call debts

    Kachikwu: govt is settling JV cash call debts

    •Minister gives score card in US

    The Minister of State, Petroleum Resources, Dr Emmanuel Ibe Kachikwu, has given himself a pass mark.

    Speaking during an interactive session with reporters on the sidelines of the offshore technology conference in Houston, Texas, United States, he listed the opening up of the downstream sector, private investment and diversification of products sourcing through the introduction of Price Modulation Mechanism (PMM)  as some of his achievements.

    Others are the appropriate pricing framework (APF) he inaugurated.

    The policies, he noted, have reignited the commercial vibrancy of the downstream sector with a  landmark move from  a subsidy based sector to a liberalised sector. They also resulted in the elimination fuel scarcity and long queues at filling stations, products adulteration and diversion, and profiteering that characterised the sector and plagued the nation in the past.

    Kachikwu said his ministry had embarked on making the nation being a net exporter of the petroleum products.

    “In line with these reforms, the Ministry and Nigerian National Petroleum Corporation (NNPC) are driving the private sector-led refineries rehabilitation and expansion programme. This is aimed at repositioning the country for petroleum products self-sufficiency, which will minimise the pressure on demand for foreign exchange for the importation of products,’ he said.

    He added: “Another key milestone recorded recently was the commencement of settlement of outstanding joint venture cash call debts the Federal Government owes the International Oil Companies (IOCs).’’

    According to him, the first payment of $400 million was made last week to the IOCs. This was part of cash call debt owed the IOCs last year.

    This is different from the discounted $5.1 billion cash call arrears it negotiated last December  with the IOCs.

    “The Federal Executive Council has approved the Ministry’s proposal and the concurrence of the National Economic Council has been obtained to begin payments and the Ministry on behalf of NNPC has engaged the IOCs and secured a discount of 25 per cent with each JV Partner on the pre-2016 Cash Call Arrears resulting in a final settlement in the sum of US$5.1 billion payable from incremental production from the JV assets over a five-year tenor without any interest charges during the repayment period.

    ‘’In addition, the 25 per cent discount will not qualify for tax deduction. The sustainable funding of the JVs will lead to an increase in national production from the current 2.2 million barrels per day (mbpd) to 2.5mbpd by 2019, while the immediate effect of the new cash call policy will increase net Federal Government Revenue per annum by about $2 billion.

    “The IOCs have announced new investments in the upstream sector that will create limitless opportunities, including job creation along the value chain. There is extensive collaborative work being done by the Ministry of Petroleum Resources with the National Assembly on the Petroleum Industry Governance Bill (PIGB). This bill would be followed by the Bill on Fiscal Terms. The Ministry and agencies have been collaborating with the National Assembly on the PIGB to ensure its passage in record time.”

    The Minister restated the efforts of the Federal Government to continue to build a strong collaboration between Nigeria and the World Bank on the Global Gas Flaring Reduction Energy and Extractive Global Practices (GGFR). The National targets for gas flare out for Nigeria remains fixed at 2020 while the target for the global initiative is 2030.

    The Ministry has unveiled the National Gas Flare Commercialisation Programme, which is a key component of the draft Gas Policy awaiting the approval of the Federal Executive Council and when fully implemented, he said, adding that it would unleash a gas revolution that would lead to improved power generation, full scale industrialisation and LPG penetration at the domestic levels.

    The minister said work was ongoing on tracking of oil molecules from production to destination and reduction of contracting cycle in the  oil and gas sector to ensure delivery of projects in the projected period.

    He attributed the successes to the continuous implementation of the Nigerian Petroleum Roadmap – “7 Big Wins”, which are the short and medium term priorities to grow the oil and gas sector of which BigWin5 is pursuing peace, security and stability in the Niger Delta.

  • Kachikwu: OPEC to engage U.S. on oil

    Kachikwu: OPEC to engage U.S. on oil

    • ‘Nigeria to begin $5.1b oil debt payment to IOCs’

    The Federal Government said the Organisation of the Petroleum Exporting Countries (OPEC) was considering extending output cuts but sought collaboration with the United States (U.S.) oil industry to support markets struggling with rising U.S. shale production

    Minister of State, Petroleum Resources, Dr. Ibe Kachikwu told Bloomberg Television that OPEC was going to “try and pump up” engagement with the U.S. oil industry regarding future action to stabilise the market

    “There is no way that OPEC on his own, alone, can carry the can on this and continuously so. Ultimately the world is going to be collaborative in this, not just the OPEC/non-OPEC countries, but also the U.S. itself,” he said.

    OPEC and non-OPEC nations agreed a six-month cut of 1.8 million barrels per day (bpd) from Jan. 1. But Nigeria and Libya were exempted from the reduction regime because of drastic reduction in production owing to unrests in the two countries.

    Kachikwu said there was “a lot of energy around a six-month extension, if we need to do that,” but he said there had not yet been “major conversations” on the topic.

    The compliance with the production cut by OPEC and non-OPEC member countries has seen oil prices rise to $56 but determined to fund the huge deficit in this year’s budget, the Federal Government is talking to the World Bank and African Development Bank (AfDB) for $3 billion of loans before the country determines how much it will raise from Eurobonds to help fund this year’s budget.

    “From the World Bank, we are hoping to get $2 billion,” Minister of State for Budget and National Planning Zainab Ahmed said in an interview in Abuja. While the AfDB in November disbursed $600 million of a $1 billion loan, Nigeria wants the Abidjan-based lender to top up the remaining $400 million. “We are talking to see whether they can up it to $1 billion,” she added.

    The National Assembly is debating the 2017 budget of a record N7.3 trillion ($23 billion) that the Budget Ministry says will help to boost an economy that shrunk 1.5 per cent last year, the first contraction since 1991. That’s after lower prices and production of oil, its biggest export, and shortages of both foreign currency and power weighed on output.

    The government raised $1 billion of Eurobonds in February and a further $500 million last month to finance projects approved in the 2016 budget. It will return to the market for a new fundraising round for this year’s spending plans, Ahmed said.

    Yields on the bonds sold in February and maturing in 2032 was little changed at 7.23 per cent at 1:09 p.m. in Lagos, with the drop since they were issued being 65 basis points.

    She said:”We should be able to do higher than what we borrowed in 2016.  It will be determined by how much we get from the World Bank and AfDB because that’s a lower rate; our preference is always to get the lower rate first.”

    All borrowings will be finalised after lawmakers approve this year’s spending plans, Ahmed said.

    President Muhammadu Buhari announced a four-year economic plan last month that targets seven percent annual economic growth and 15 million new jobs by 2020 by expanding oil output, opening farmland and increasing investment in power, roads, rails and ports.

    Also, the Federal Government is to begin payment of a $5.1 billion debt owed to five international oil companies (IOCs) by the end of April, the Minister of State for Petroleum Resources, Ibe Kachikwu, has said.

    Kachikwu, who is also the chairman of the board of the NNPC, spoke at a meeting with top ExxonMobil executives at the company’s headquarters in Texas, USA.

    The debts, which were incurred from 2010 to 2015 due to Nigeria’s inability to make its share of capital contributions to the joint ventures (JVs), would be settled through crude sales over five years on interest-free basis.

    The government formally exited the JV cash calls arrangement it had with the IOCs in December.

    The IOCs involved are ExxonMobil, Shell, Chevron, Total and Nigeria Agip Oil Company (NAOC).

    “The initial payments would be  made by the end of April 2017,” Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said in a statement.

    “The energy companies are expected to reciprocate by ensuring that they ramp up investments in the country’s oil and gas sector. Settlement of the debt could unlock investments of as much as $15 billion by the international companies,” he said.

    The statement, which was signed by Idang Alibi, petroleum ministry’s spokesman, said the government’s effort would be boosted if major IOC partners operating in Nigeria invested in building signature refineries to be run on joint venture basis with the Federal Government providing the necessary incentives.

  • Kachikwu seeks partnership with IOCs

    Kachikwu seeks partnership with IOCs

    The Minister of State, Petroleum Resources, Dr.  Ibe Kachikwu has sought partnership with International Oil Companies (IOCs) operating in Nigeria to put an end to importation of petroleum products.

    According to the statement endorsed by the Director, Press, Petroleum Resources Minsitry  Mr. Idang Alibi,  yesterday in Abuja, the minister spoke during a meeting with the executives of Exxonmobil.

    He urged the oil giants to invest in building signature refineries to be run on joint venture basis with the Federal Government providing the necessary incentives, adding that it will bring an end to fuel importation.

    This meeting is part of the ongoing investment drive initiative embarked upon by by minister to IOCs. The first of this was with the Italian, Eni in January this year, where the company pledged to work with Nigeria to revamp the PortHarcourt refineries. Other IOCs scheduled to be visited include Shell, Chevron and Total.

    Kachikwu urged the oil firm  to invest in more practical deliveries in the area of human capital development and investment in local growth of skill sets required in the Oil and Gas sector .

    According to the statement, Exxonmobil which commended the minister for his efforts at ensuring growth in the oil and gas sector said, it is committed to working with Nigeria by delivering power to the country and support the gas commercialisation programme of the Ministry of Petroleum Resources.

    Mentioning the gains that have been made in the sector through the signing of the repayment agreement for the Joint Venture Cash Call in 2016, Kachikwu said the initial payments to the IOCs would be made by the end of this month.