Minister of State for Petroleum Resources Dr. Ibe Kachikwu has said local refining of crude oil is key to the viability of the oil industry and economic growth of Nigeria.
Speaking yesterday as guest lecturer at the inaugural Convocation/Founders’ Day Lecture of the Federal University of Petroleum Resources, Effurun (FUPRE), Dr Kachikwu explained that the Federal Government intended to reduce importation of refined petroleum products by the end of next year, preparing the country for net exportation of refined products by 2019.
He said the development of gas and its subsequent distribution to generate electricity was one focus of his ministry.
Urging the graduating students to “embrace what is embedded” in them, as reliance on government to provide everything must cease, Kachikwu encouraged the students to create designs to build modular refineries.
“The objective is to improve our domestic capacity for local petroleum products production. This will entail the injection of private sector investments and expertise in revamping the existing refineries and implementation of modular refineries in the oil producing region.
“The abundant gas resources in Nigeria will be harnessed to generate wealth and save the environment by converting flares to power. The focus of this initiative will include investor-led gas infrastructure development will be promoted to ease government burden of funding.
“Domestic gas utilisation for power and households will also be promoted to support threefold increase in the nation’s power generation capacity by 2019″, he said.
Speaking earlier, Chancellor of the FUPRE, Alhaji Attahiru Mohammed Ahmad, the Emir of Zamfara, while noting the peculiarity of the institution in Africa, expressed concerns over the poor state of its infrastructure.
Commending President Muhammadu Buhari for his appointment as Chancellor, he called for “special and urgent interventions” to fast track the progress and advancement of the school.
Tag: Kachikwu
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Local refining key to oil industry growth, says Kachikwu
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Kachikwu, Emerhor lead Delta APC factions to close ranks
In a bid to put its house in order ahead for the next general election, the Delta State chapter of the All Progressives Congress (APC) has resolved its leadership crisis.
The party, at a special meeting hosted by the Minister of State for Petroleum Affairs, Dr Ibe Kachikwu, and co-chaired by the 2015 governorship candidate of the party, Olorogun O’tega Emerhor, in Onicha-Ugbo, resolved, among other things, that all litigation should be discontinued.
According to a statement issued by the party’s Acting Publicity Secretary, Leonard Obibi, it was agreed that the National Working Committee (NWC) should conduct an election to reflect for all interests in the party.
The statement reads: “The meetings deliberated on terminating all current disputes within the party in order to introduce a new lease of life that would propel the party into a more united and stronger political family. The entire leadership has thus resolved among other things as follows:
“All interest groups or individuals are to within 90 days withdraw all legal cases from court effective the date of this meeting;
“To request the National Working Committee (NWC) to take necessary steps, after the withdrawal of all court cases, to conduct a repeat congress for the election of an all-encompassing State Exco which tenure will expire at the same time as the current Exco in April 2018. It was also unanimously agreed that there shall be no interim Caretaker Committee for the party, and that the repeat Congress shall be open to all party members, both old and new, to ensure comprehensive and all-inclusive participation;
“The Delta State APC family has undertaken to start working together in unison and will continue to make whatever sacrifice is necessary for sustaining the peace and progress of our party.
“There was also a general consensus that the party will make a public apology to any leaders who have a case of libel in court as a result of previous publications of the party; and that those members of the State Exco on suspension for various infractions be forgiven and recalled through the proper channels of authority within the party.”
Some party leaders at the peace meeting were Sir Olisaemeka Akamukali (member, Board of Trustees), Chief Adolo Okotie-Eboh, Chief Great Ogboru (represented by Evang. Ossai Abeh) and Hon. Victor Ochei.
Others were Chief Hyacinth Enuha (represented by Dennis Nwanokwai) and Dr Alex Ideh, both of whom were of the late Senator Francis Okpozo’s Elders and Leaders Group.
Present also were Chief Frank Kokori, Chief Ayiri Emami and the full complement of the State Working Committee (SWC), led by the State Chairman of the party, Prophet Jones Ode Erue.
Prior to the Onicha-Ugbo meeting, a peace parley was held in Abuja, which was attended by party leaders, including Prof. Patrick Utomi, Chief Great Ogboru and Chief Hyacinth Enuha.
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Kachikwu: Govt working to maximise oil output
A long term plan to take advantage of higher oil prices is one of the Federal Government’s top priorities, Minister of State for Petroleum Resources Dr Ibe Kachikwu has said.
He said higher oil prices and a long-term plan for production are spearheading Nigeria’s efforts to get its hydrocarbons sector back on track. He spoke with Oxford Business Group (OBG) – a global research and consultancy firm yesterday.
The minister stated that the agreement made in December by the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers to cut production with a view to stabilising prices was already yielding results for the country.
“The resurge in prices is a fundamental driver behind Nigeria’s push for investment as international oil companies are planning new projects in the country. Since the agreement was made, external confidence in the country is higher, while the business environment here is improving,” he said.
On the challenges of militancy, coorpution and others facing the government in attracting new investors, Kachikwu said: “We are focusing on all of these issues, with a view to solving them and proving that Nigeria is more commercially viable than in the past. Once we are able to do that and stabilise the situation we can achieve our long-term goal of boosting income.”
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Worst oil days over, say Barkindo, Kachikwu
The Organisation of Oil Exporting Countries (OPEC) Secretary General Mohammed Barkindo, yesterday said the worst days of the oil crisis are over but the challenge remained how to consolidate the gains.
He said there is an unprecedented 90 per cent compliance level to the the joint decision that the OPEC and non OPEC members took in December which led to some member countries withdrawing about 1.2million barrel per day and the 11 non- OPEC withdrew 11 barrels,.
The OPEC chief, who spoke in Abuja, during a visit to the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu said: “So, we remain optimistic that the worst is over for the circle. The challenge now is how to solidify this platform of 24. I must report to you that the signals we are getting from the non OPEC side is highly positive.”
According to him, Equitoria Guinnea had applied to join the organization
According to him, the market would dictate the equilibrium price eventually and the restoration of the balance of the one valuable of stock will bring the market to balance and the equilibrium price that will be fair to producers and consumers that will bring back investment to the industry.
Asked whether Nigeria would continue to enjoy, he said “Going forward , this decision is for six months and therefore, this country continues to be exempted for this six months. And we will continue to pray and hope that they will recover their production and rehabilitate their production facilities and return to the market full because the market needs every barrel that Nigeria can produce or Libya or the Islamic Republic of Iran.
“The demand figures continue to show robust growth of over 1 million a day going forward. And therefore, while we are working hard to restore this stability, the focus is how we can sustain it going forward.”
He said the global oil industry supply chain lost $1trillion to the crisis, noting that “the industry globally had lost nearly $1trillion in terms of deferred projects and adverse cancellation of projects across the supply chain.”
Barkindo who said the decisions to cut supply had been beneficial to the industry, added that “we are in the course of pulling this industry out of the worst recession that we have entered to restore stability to the market on a sustainable basis that will allow investments to come back.”
According to him, the rate of turnover of the Chief Executive Officers of the Nigerian oil industry was part of its challenges. Kachikwu projected that oil would hit $60 per barrel.
He noted that OPEC had lost its credibility, which it is now recovering from.
The minister said with the restoration of confidence in the organization, investors were no longer considering reserve but a future rise in price.
He said: “It is a fact that he (Barkindo) has given OPEC a new face . OPEC had lost credibility that nobody was listening to us whenever we came for meetings.
“But today, with the build up in the U.S. of reserves, nobody is looking at that in terms of pricing oil. They are simply looking at what OPEC is doing. As the momentum rose, we are actually going to be at $60 roof.” -
OPEC Sec-Gen to meet Osinbajo, Kachikwu on oil sector dynamics
•Barkindo in Nigeria for conference
Organisation of Petroleum Exporting Countries (OPEC) Secretary-General Mohammad Barkindo will this week discuss market dynamics in the oil sector with Acting President Yemi Osinbajo and Minister of State for Petroleum Resources Dr Ibe Kachikwu.
Dr. Barkindo, who arrived in Nigeria yesterday, will also attend the 16th Nigeria Oil and Gas Conference (NOC) and Exhibition during his four-day working visit.
The News agency of Nigeria (NAN) quoted the Nigerian National Petroleum Corporation (NNPC) spokesman, Mr Ndu Ughamadu, as saying that the fallout of Barkindo’s visit will be felt in the sector for a long time.
Ughamadu was quoted as saying: “Yes, it is a big event that will affect our markets positively. He is leading an eight-man delegation and his advance team arrived earlier and will talk on the oil and gas market outlook.
“I believe whatever policies put in place here will be strictly adhered to and give our economy the needed boost. I’m excited. It’s a big event.”
At an earlier news briefing, Ughamadu said Dr. Kachikwu would give a keynote address on Repositioning the Oil and Gas Sector’ and that the NNPC’s Group Managing Director, Dr Maikanti Baru, would speak on “`Commercialising the NNPC”.
The four-day conference will end Thusday.
More than 6,000 delegates, 250 exhibitors, from over 20 countries, many oil and gas experts and hundreds of government representatives and other stakeholders from different countries would attend the conference.
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Nigeria loses $80bn annually to oil facilities vandalism – Kachikwu
The Minister of State for Petroleum, Ibe Kachikwu, on Friday said Nigeria is losing at least $80 billion annually to oil facilities vandalism in the Niger Delta.
Kachikwu stated this on in Yenagoa, Bayelsa, during the resumed dialogue with Niger Delta stakeholders as part of Acting President, Prof. Yemi Osinbajo’s visit to Bayelsa.
He said at least 10,000 sabotage incidents were recorded annually at oilfields across the region.
Kachikwu urged people of the area to contribute ideas toward the resolution of crises in the Niger Delta.
He said the challenges of the region could be turned into opportunities when peace was achieved and urged Niger Delta people to give peace a chance for the growth of the region.
The News Agency of Nigeria (NAN) reports that Kachikwu, Minister of Niger Delta Affairs, Usani Nguru Usani, and Minister of State for Agriculture, Senator Heineken Lokpobiri, accompanied Osinbajo on the trip.
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Nigeria can produce three million bpd, says Kachikwu
Minister of State Petroleum Resources Ibe Kachikwu said yesterday that Nigeria is capable of producing three million barrels of crude oil per day.
Dr. Kachikwu spoke this at a meeting organised by the Ministry of Niger Delta Affairs in Abuja.
The News Agency of Nigeria (NAN) reports that apart from the Niger Delta Ministry, the convener, the meeting was also attended by officials from the, the Nigerian Content Development and Monitoring Board (NCD&MB), among others.
The minister said the insecurity in the region had been undermining the nation’s capacity to realise its potential in oil production.
“It is important we continue to sustain the institutional engagement and negotiations which are key to the development of the region.
“Our target is zero militancy by the middle of 2017, and an incident reduction in the region by 90 per cent by 2018.
“We must resolve current militancy problems and bring back oil production to 2.2 million barrels per day,” he said.
He lamented that over $40billion had been spent in 12 years and
there were no infrastructure on ground to justify the huge expenditure profile.
Kachikwu said that a lot would have been achieved if there were zeal to collaborate in such a manner.
Kachikwu urged the Minister of Niger Delta Affairs and other partners to commence immediate action in this regard.
Kachikwu said there was need to create stability incentive schemes, jobs and investment opportunities, so that the government would look at cross border investments to strengthen the region.
The minister said the government was introducing a joint account with oil companies to foster transparency in cash calls and ensure that inflows were clearly understood by all.
“We are targeting 30 per cent cost savings, which we can link to transparency.
“What is most important is not the amount of the fund; it’s the conceptualization of that funding.
“Governors will have to come together as a regional?block to look at cross-state investments in roads, railways, town facilities or specialist hospitals.
“We are going to pool in energy and ensure we look at cross border investments to strengthen the region” he said.
Kachikwu said government was also looking at the amnesty programme to absorb some of the trained ex-agitators in the areas of coastal patrol and Niger Delta paramilitary type organisations.
The Coordinator of the Presidential Amnesty Programme (PAP), (retired) Brig.-Gen. Paul Boroh, reaffirmed the readiness and determination of President Muhammadu Buhari’s administration to find a permanent solution to the problems of the region.
Boroh, who doubles as the Special Adviser to the President on Niger Delta Affairs, said that the current administration deserved cooperation and support for appreciating the environmental challenges of the region.
He disclosed that the ex-militants in the region were trained on fish farming, snail farming etc by the National Biotechnology Resources Centre, as parts of the Federal Government’s efforts to gainfully engage them in responsible living. -
Senate summons Kachikwu over $115b oil deals
The Senate yesterday resolved to summon the Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, to throw light on the signing of oil deals totalling $115 billion.
Kachikwu is expected to address issues concerning the $15 billion proposed Memorandum of Understanding (MoU) with the Indian government in the oil and gas sector.
The minister will also explain the details of the over $80 billion MoU he signed with Chinese firms in the same sector.
Apart from the $80 billion deal, the two largest oil companies in China – Sinopec and CNOOC – signed investment MoUs with the minister committing the companies to further investments in Nigeria’s upstream oil sub-sector to the tune of $20 billion
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 proffer a detailed explanation of the subject matter of each of the MOU signed in China and the proposed MoU with India and their anticipated impact on the country’s economy.
Ordia, in his lead debate, drew the attention of the Senate that the minister negotiated a $15 billion investment with India, where the Asian nation 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 a MoU to facilitate investments by India in the Nigerian oil and gas sector and specifically in areas such as refining, oil and gas marketing, upstream ventures, development of gas infrastructure and the training of oil and gas personnel in the country.
He noted that the minister carried out a road-show in China, where a MoU worth over $80 billion to be spent on investments in oil and gas infrastructure, pipe lines, refineries, power, facility refurbishment and upstream financing spanning five years were signed with Chinese companies.
Ordia listed the Chinese firms involved in the MoU as including China North Industries Corporation (NORINCO Group), China Cinda Asset Management Company Limited (CINDA), China National Offshore Oil Corporation, China Petroleum, China Petroleum &Chemical Corporation/Addax Petroleum and International Chamber of Commerce/ China National Development and Reform Commission.
He observed that outside the MoUs for $80 billion investment, the two largest oil companies in China – Sinopec and CNOOC – signed investment MoUs with the minister committing the companies to further investments in the country’s upstream oil sub-sector to the tune of $20 billion.
Senate Leader, Senator Mohammed Ali Ndume wanted to know whether the minister has the power to endorse any MoU involving billions of dollars without the participation and endorsement of the National Assembly.
Senator Abdullahi Adamu explained that what the minister did was “a mere intention that has not matured”.
Senator Adamu noted that when the deal matures, the National Assembly will be brought into the deal.
Senate President, Abubakar Bukola Saraki thanked the movers of the motion for drawing the attention of the Senate to the MoU.
Saraki said the essence of the motion was to ensure transparency in a matter that involves future investment in the oil and gas sector of the country.
The minister allegedly signed the MoU in June -
Kachikwu seeks early repairs of refineries
The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, yesterday advocated for the speedy rehabilitation of the nation’s refineries, to skip their being sold as scraps.
He warned that if urgent measures were not taken before the Dangote Refinery becomes operational, the nation’s four refineries might be sold as scraps in 2019.
Kachikwu, who gave the warning at the the stakeholders’ consultative forum on the draft National Gas Policy and National Oil Policy in Abuja, said the only option opened to the country was to ensure that the refineries work within the shortest possible time.
He said: “Refineries would have to work; it is really not an option anymore. And not only should it work, it has to work very quickly. The reality is that if we do not privatise and we do not concession — which is not what we are doing —then we have a responsibility to find private capital to get them to where they should be.
“This is because if we do not get them to work, in 2019, I can assure you that if Dangote system works well, we would have scraps, we won’t have refineries, because by then it would be too late to do anything.”
The minister however sought efforts to address the issue of cost of production in the petroleum industry, to bring down the cost to a reasonable and manageable level.
He said that crude oil is still produced at $27 per barrel in Nigeria, adding that no decent country would produce at that amount at a period when oil price is unpredictable as it is now.
He said: “They are lots of things we still need to address. Cost is a key issue. We are still at $27 per barrels. No decent country would produce oil at $27 per barrel at a time when the pricing is unpredictable. Again, we are going to try to get those figures below $18 per barrel.”
The minister noted that the Federal Government is committed to fully deregulating the downstream sector of the petroleum industry. He said while the process have started, and since it is a continuing process, the government would continue fine-tuning it until it gets to where it should be.
“At every given time in the history of every country, you will always have partial deregulation. The reason been that you have to catch up each time and make an amendment, and even if it is just one day, you might have some level of subsidy for that one or two days before it is removed.
“What is important is the goal post; where are we headed; where we are headed is to try and free the industry, so that it can do its own rules, set its own prices itself,” he said.
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Kachikwu to present National Oil Policy
The Minister of State, Petroleum Resources, Dr. Ibe Kachikwu, yesterday said the ministry will next week present the Draft National Oil Policy to the Federal Executive Council (FEC).
The Senior Technical Adviser to Kachikwu, Gbite Adeniji, who made this known at the ongoing stakeholders’ consultation forum on the draft National Gas Policy and National Oil Policy, in Abuja, said the final document which would be ready in the next couple of days, when issued, would be binding on all, including on government, operators, investors and all stakeholders.
He also noted that the new policy document addressing fiscal issues in the petroleum industry would soon be drawn up and presented to stakeholders with the aim of the addressing the thorny issues surrounding fiscals.
He said the last Petroleum Policy was approved in 2006, which is a reflection that the industry is in a completely new world of oil, while time is due to take a fresh look at the industry, ensuring that it reflects current trends.
Adeniji lamented that Nigeria was not prepared for the headwinds brought about by the volatility in the global petroleum industry due to the absence of a clear cut policy and lack of coordination between government and investors.