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Tag: Maikanti Baru

  • NNPC, BP signs agreement on PMS

    As part of measures to sustain the robust supply of petroleum products across the country and especially going into the Yuletide period and beyond, the Nigerian National Petroleum Corporation (NNPC) has signed a six-month Direct Sale-Direct Purchase (DSDP) agreement with the British Petroleum’s (BP) trading arm, BP Oil International Ltd, for the supply of Premium Motor Spirit, also known as petrol.

    This latest agreement will represent 20% of NNPC’s total PMS supply under the DSDP arrangement, which basically allows the corporation to exchange crude oil with international oil traders for imported petroleum products over a period of time.

    Speaking shortly after a brief signing ceremony at the NNPC Towers on Thursday, the Group Managing Director of the corporation, Dr. Maikanti Baru, said as the nation’s products supplier of last resort, NNPC was committed to products availability by inviting new and old players to play in the Nigerian oil sector.

    He said over the years, BP had demonstrated the capacity and robustness to augment the forecasted shortfall by NNPC, especially as the winter period approaches and as the nation’s elections get underway early into the New Year.

    “As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it. We also believe in the company’s commitment towards the development of local content,” Baru stated.

    Read Also: Baru hails oil workers for stopping planned strike

    The NNPC helmsman also commended BP for choosing to partner with AYM Shafa, a local oil company, which he said had been expanding its downstream footprints across the nook and cranny of the country.

    “BP’s partnership with AYM Shafa towards delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period. In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide,” Baru added.

    Responding, Mr. John Goodridge, the Head of Marketing & Origination of BP’s oil trading business, said it was a great honour for his company to be trusted by the NNPC as one of its strategic suppliers.

    “We are delighted to have the opportunity to work more closely with the NNPC. Going forward, we hope to grow this mutual relationship to greater things,” Goodridge added.

    He further assured that his company boasts of a global network of refineries capable of generating the products to meet the specifications required by the NNPC.

    He said the ultimate was to ensure that over the next six months, Nigeria does not witness any products shortages.

    Introduced in 2016, the DSDP arrangement is a model carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with equivalent worth of products.

    Since its inception, the DSDP model has not only saved NNPC millions of dollars that would have been paid through demurrage, it has also proven to be a major component of the corporation’s petroleum products supply portfolio which ensures stability in products supply nationwide.

  • NNPC to Consumers: Don’t mishandle petroleum products

    As the dry season draws near in the country, the Nigerian National Petroleum Corporation (NNPC) has warned petroleum products consumers across the nation against mishandling of white products.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a release on Wednesday in Abuja, stated that experience had shown that commuters stock petroleum products at home or move about with them in their vehicle boot at this period of the year, exposing themselves and others to serious danger.

    Ughamadu said the incident involving a car laden with fuel which burst into flames while in motion last week at Umuode community, Osisioma Ngwa Local Government Area of Abia State, exemplified the danger of transporting imflamable petroleum products in vehicle not made for that purpose.

    The corporation’s spokesman admonished communities hosting NNPC facilities to refrain from taping products from NNPC pipelines or engaging in activities that my lead to spill of petroleum products, saying individuals involved in such an act may suffer untold casualties.

    Read Also: NNPC urges communities to calm vandals

    He encouraged communities in NNPC’s areas of operations to report suspicious movements around the corporation’s facilities to the law enforcement agencies, adding that observing basic safety rule of keeping away from areas where imflamable petroleum products spills had occurred could save lives and properties.

    Recently, fatalities were recorded while property worth millions of Naira were lost when some members of Umuaduru and Umuimo communities in Osisioma Ngwa Local Government Area of Abia State were caught in a fire while they were reportedly scooping petrol around NNPC’s pipeline in their community.

    Meanwhile, the NNPC Group Managing Director, Maikanti Baru, has assured motorists and other consumers of petroleum products of availability of white products for their comfort as the year end festivities draw near.

    Baru explained that NNPC has 37 days fuel sufficiency, according to the release by the NNPC spokesperson, stressing the GMD said that strategies had been put in place to ensure that Nigerians experience a hitch-free festive period.

  • NNPC urges communities to calm vandals

    As calm returned to Osisioma Ngwa communities of Imo State following a fire incident last Friday, the Nigerian National Petroleum Corporation (NNPC) on Monday appealed to the host communities to help stem the spate of vandalism of oil pipeline.

    A release in Abuja by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said that preliminary reports of the fire incident which recorded some fatalities and loss of properties affirmed that the inferno resulted from the activities of vandals who had breached System 2Ex Pipeline Right of Way (PROW) in Ososioma.

    The NNPC spokesperson explained that the confirmation of items such as jerrycans, among others, at the scene of the incident, by the report indicated that the activities of vandals in the area ignited the flame.

    Read Also: NNPC records N18.12b monthly surplus

    Ughamadu quoted the NNPC Group Managing Director, Dr. Maikanti Baru, as saying that the incessant vandalism of pipeline facilities along System 2Ex PROW has prevented the corporation from pumping fuel to the Enugu Depot.   

    Baru lamented the loss of lives and properties in the inferno which occurred in the wee hours of Friday in Umuaduru and Umuimo communities both in Osisioma Ngwa, in Imo State.

    The GMD appealed to host communities to collaborate with the corporation to tame oil pipeline vandalism in their areas.

    Baru thanked the State fire servicemen and NNPC officials for their prompt response which rapidly brought the situation under control. 

  • NNPC challenges host communities on pipeline fires

    The Nigerian National Petroleum Corporation ( NNPC ) has urged host communities to create avenues to avoid continuous destruction of oil pipelines by bad elements in their midst.

    The Group Managing Director, Dr Maikanti Baru made the call following an oil pipeline fire outbreak along the Osisioma axis near Aba Depot in its System 2E pipeline network on Friday.

    A statement by the NNPC Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, confirmed fatalities and loss of properties in the inferno.

    He said Baru expressed shock at the wanton destruction of lives and properties occasioned by the incident.

    “The GMD prayed that God reposes the souls of the innocent ones that perished in the incident,” he quoted Baru to have said

    He warned members of the public against tampering with oil and gas facilities many of which were flammable.

    Commenting on the cause of the incident, Ughamadu said the incident might have been caused by suspected oil thieves who had hacked into the line to intercept flow of petrol from Port Harcourt to Aba.

    He said the corporation’s safety experts, along with men of the Abia State Fire Service, had swung into action to contain the situation.

    He assured that updates on the situation would be provided as events unfold.

    Read Also: Pipeline explosion kills nursing mother, soldiers in Abia

    Meanwhile, the Abia command of the Nigerian Security and Civil Defence Corps (NSCDC) has confirmed the death of 19 persons, following the explosion in two villages in Osisioma Local Government Area of the state.

    The state Commander of the organisation, Mr Benito Eze, told newsmen on Friday in Umuahia that 16 persons, including one woman, died in the explosion that occurred around 2.47 a.m at Umuaduru Village in Umueze Autonomous Community.

    He also said that three others died in the fire that occurred at about 3 a.m in a private residence at Umuimo Village in the area.

  • NNPC embarks on healthcare venture to reduce medical tourism

    The Nigerian National Petroleum Corporation (NNPC) has teed-off a major national healthcare intervention project designed to halt medical tourism to foreign destinations through the provision of state-of-the-art hospitals and diagnostic centres across the country.

    Details of the medical venture plans published in the Q3 2018 Edition of the NNPC Magazine indicated that the corporation has set a five-year gestation period for the project to achieve substantial impact in Nigeria’s healthcare delivery system.

    The NNPC quarterly publication reported that the healthcare project is in three parts. The first is Occupational Health designed to specifically service NNPC staff, their dependents and retirees. All current NNPC clinics fall under this scheme and are presently being upgraded to reflect the new realities.

    The second scheme involves some key NNPC hospitals like the erstwhile Abuja International Diagnostic Centre (AIDC) and the Benoni Hospital in Benin City which are being equipped to service both NNPC staff and outsiders because of their projected excess capacity.

    The third leg of the medical project which has been designated as ‘new business’ involves locations where state-of-the-art hospitals and diagnostic centers will be constructed on NNPC unutilized lands in Kaduna, Mosimi and Port Harcourt for commercial purposes.

    NNPC Group Managing Director, Dr. Maikanti Baru, said he was delighted by the development being spearheaded by the NNPC Medicals, saying the project would impact on the bottom line of the corporation in the long run.

    According to NNPC’s statement that made this disclosure on Thursday, Baru affirmed that apart from the financial benefits the project promises, it also underlined the progress being made in the transformation efforts to reposition NNPC as a fully integrated company of the future.

    Read Also: Strike: NNPC begs oil workers to exercise restrain

    The NNPC Magazine’s report further informed that the icing on the cake is the erstwhile Abuja International Diagnostic Centre which is being reconfigured to assume the status of a national flagship medical mall.

    Upon completion, the centre will warehouse top class health care providers in cardiovascular, oncology, renal dialysis, radiology and lab services.

    The dream, it was gathered, is essentially to make AIDC a hub for other clinics through telemedicine.

    This process allows the remote delivery of healthcare services, such as health assessments or consultations with the support of telecommunications and information technology infrastructure. It will enable the healthcare providers to evaluate, diagnose and treat patients without the need for an in-person visit.

    Babatunde Adeniran, Chief Operating Officer, NNPC Ventures, said the new-found medical vision was modeled as well as inspired in part by successes recorded in other jurisdictions like Saudi Arabia, where the state oil company, Saudi Aramco, partners John Hopkins to provide best medical care for its staff and residents of other Middle East countries.

    “NNPC has 52 clinics/hospitals, the largest network of healthcare facilities in Nigeria which is enough capacity for us to build on, upgrade the facilities and achieve our commercialization dream. The aim is to reduce to zero, medical tourism and the accompanied capital flight with a view to retaining the money in Nigeria while also improving NNPC’s revenue,’’ he said.

    Musa Shaibu, veteran Occupational Health Physician and Managing Director of NNPC Medical Services Limited (NMSL), told the NNPC Magazine that the corporation was harnessing its strong brand name and market place identity to achieve remarkable results in the pursuit of medical excellence.

    “The NNPC name is huge, it is a golden name and as we are going into healthcare delivery in the name of NNPC, it is going to be a huge advantage. Don’t forget that, over the years, because we have been in the practice, we have interfaced with the best in healthcare delivery across the world. We know what to do and how to achieve result,’’ he said.

  • NNPC allays fear over fuel scarcity

    The Nigerian National Petroleum Corporation ( NNPC ) has assured that there is enough fuel in the country and that there is no need for panic buying of petroleum products by motorists and the public.

    The corporation disclosed this in a statement issued by Mr Ndu Ughamadu, It’s spokesman, in Abuja, on Friday.

    This, followed reports of an ultimatum issued by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over a purported intervention by an arm of the security agencies in what the union viewed as purely labour matters involving a company and its workers in Delta State.

    He added that the corporation’s Group Managing Director, Dr. Maikanti Baru and his Management team, were engaging the parties involved, saying the parties are close to resolving the issues.

    Read Also: AfDB approves $15m equity investment in Nigeria, others

    Ughamadu in the statement advised motorists and other consumers of petroleum products not to engage in panic buying as the NNPC Management was close to reaching an amicable resolution of the challenge.

    NNPC assured that the corporation had adequate storage of petroleum products across the country and advised that they should not entertain any fear of petroleum shortages.

  • Baru not funding alleged impeachment plot against Saraki – NNPC 

    The Management of  Nigerian National Petroleum Corporation (NNPC), on Sunday said its Group Managing Director, Dr Maikanti Baru, was not funding any plot to impeach the President of the Senate, Dr Bukola Saraki.

    Mr Ndu Ughamadu, NNPC Group General Manager, Group Public Affairs Division, said in a statement in Abuja that the Corporation was not party to the ongoing political struggle in the National Assembly.

    Ughamadu said the trending reports in some section of the media insinuating that Baru had doled out funds to effect the impeachment of Saraki were false.

    He described the report as ”the handiwork of mischief makers seeking to drag NNPC and Baru into a purely political affair totally different from its mandate as the national oil company with fiduciary responsibilities to the government and people’’ of Nigeria.

    ”The report is not only false but also an affront on the verifiable reforms in the operations of the corporation under the remit of Dr Baru.’’

    He said the reforms had “witnessed irreversible strides in the area of transparency leading to the sustained publication of NNPC monthly operations and financial records.

    ”The allegations are mere fiction and outright tales by moonlight for anybody to insinuate that Dr Baru or anybody else could just take a dip into the Corporation’s till and dole out the volume of funds being portrayed in that phantom report for political purpose.’’

    Ughamadu  called on all well-meaning members of the public and oil and gas industry stakeholders to discountenance the story.

    He said that the Management of NNPC remained  committed to its statutory role and responsibility to the entire federation.

    Saraki, on July 31 decamped from the ruling All Progressives Congress to the Peoples Democratic Party and the Senate promptly adjourned plenary until Sept. 25.

    Allegations that Baru was involved and funding an alleged impeachment plot against Saraki have been rife.

  • NNPC targets 20% in Fertilizer Company

    The Nigerian National Petroleum Corporation (NNPC) is billed to take 20% equity in the project Nagarjuna Fertilizer Project to provide the gas feedstock.

    The corporation’s Group Managing Director, Dr. Maikanti Baru, however on Monday charged members of the Joint Management Committee (JMC) of the project to work hard to achieve early Final Investment Decision (FID) for eventual take-off of the project.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, disclosed this in a statement.

    According to the statement, the “Nagarjuna Fertilizer Project in Nigeria is designed to produce 2.8 metric tonne per annum (MTPA) of Urea and 0.22MTPA of Ammonia and NNPC is billed to take 20% equity in the project and provide the gas feedstock.”

    Speaking recently while inaugurating the JMC made up of members drawn from Nagarjuna Fertilizer and Chemicals Nigeria Limited, a subsidiary of the India-based Nagarjuna Group, and NNPC, Dr Baru noted that the President Muhammadu Buhari administration was keenly interested in diversifying the economy by growing the agricultural sector and that the early take-off of the Nagarjuna Fertilizer Project would be a boost to that aspiration.

    Read Also: $1bn Pipeline Contract Probe: NNPC, Total absence stalls session

    “It is my expectation that the negotiations with the Financiers and other prospective investors will be concluded in order to meet the FID target of March 2019. With the composition of the Joint Management Committee, I believe the target FID date will be achieved. The key message to the Joint Management Committee therefore is to ensure that we conclude the pre-FID activities in good time to achieve the FID target”, the GMD stated.

    He said the project was in tandem with the objectives of the Federal Government’s 7-Big Wins and the corporation’s 12-Business Focus Areas to aggressively commercialise the nation’s enormous gas resources through gas-based industrialization and congratulated the Management of Nagarjuna for its tenacity and acquisition of a new project site in the Ikot Abasi Oil and Gas Free Trade Zone.

    Members of the JMC are: Mr. Kovvuri H. Dharudu, Chairman; Ms. Blessing Arinze (Nagarjuna); Mr. Moses Oladejo (Nagarjuna); NNPC Chief Financial Officer, Mr. Isiaka Abdulrazaq; NNPC Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed; Managing Director, Gas & Power Investment Company (GPIC), Mr. Husaini El-Yakub; and Group General Manager, Corporate Planning & Strategy, Mr. Bala Wunti.

  • NNPC eyes gas for 15,000mw by 2020

    …says Minna depot Fire brought under control

     

    The Nigerian National Petroleum Corporation (NNPC) has said that it has deigned the seven Critical Gas Development Projects (7CGDP) to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.

    A statement of the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a state that made available to journalists in Abuja, said that a major stride in the attainment of national energy sufficiency was achieved in Lagos with the commencement of technical framing workshop and subsequent project signing ceremony of the (7CGDP) to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.

    In a presentation at the event, Group Managing Director of the Corporation, Dr. Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.

    He said NNPC had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.

    Read Also: NNPC subsidiary generates N72.7b from gas

    He listed some of the responsibilities of the project consultants to include: working with NNPC and partners to revalidate and carry out relevant technical studies to proposed development plans, provide financial advisory services for project funding/financing strategy and appraise the fiscal requirements for viability and advice on interventions that may be required.

    The PMT are also expected to study and recommend fast-track tendering process for field development and project implementation, establish realistic cost benchmark(s) for identified projects and develop project schedules and cost estimates for the respective projects among others

    Baru explained that in addition to the above, the NNPC Project Management groups would strengthen oversight function on the seven (7) critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices.

    The NNPC GMD said the Corporation was working closely with other agencies like the Department of Petroleum Resources (DPR) and the Nigerian Content Monitoring and Development Board (NCMDB), among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to these projects were supported for renewals by relevant agency.

    Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company (SPDC) which is handling three out of the seven projects, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.

    Highpoint of the event was the formal execution of agreement for the development of the 6.4 trillion cubic feet unitized gas fields (Samabri-Bisseni, Akri-Oguta, Ubie-Oshi fields by NNPC/Shell and NAOC JV.

    The 7CGDP include: development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7TCF NPDC’s OML 26, 30 &42.

    Others include: development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5 TCF OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West (OML 35& 62).

    Meanwhile the NNPC on Monday provided insight into the fire incident which ravaged parts of the PPMC Depot in Minna, Niger State.

    Speaking to journalists on the sidelines of the 7CGDP launch in Lagos, the GMD said the fire incident which started late Saturday night after the collapse of the floating roof of one of the Petrol storage tanks had since been brought under control.

    He thanked members of the neighbouring communities, the security agencies and emergency services for their support and prompt response.

  • NNPC will remain globally competitive – Baru

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, says the corporation will remain globally competitive.

    Baru said this in a statement by the NNPC Spokesman, Mr Ndu Ughamadu, on Thursday in Abuja.

    According to the statement, Baru was addressing the corporation’s staff via a mail broadcast to commemorate his two-year anniversary at the helm of affairs of the NNPC.

    Baru, who described his two years in the saddle as “exciting”, said since he was appointed by President Muhammadu Buhari, he had enjoyed a great level of support from all staff in moving the corporation forward.

    ”Going forward, our priority will be to remain globally competitive.

    ”In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company.

    “‘We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone,” he said.

    Baru said his administration would ensure improved collaboration with local communities, states, local governments and relevant agencies, improved security and safety of personnel and infrastructure.

    Listing his achievements, Baru said the corporation had sustained production level from the nation’s assets to above average of two million barrels per day in 2018.

    He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First Exploration and Production Joint Venture, the corporation maintained commitment to repayment of cash calls arrears where about $1 billion of $5 billion indebtedness were settled.

    In the midstream sub-sector, Baru observed that NNPC had remained a critical gas supplier to the domestic market with a dominant market share and supporting government’s gas-to-power initiative.

    It is currently supplying an average of 720MMscf/day, representing about 47 per cent of total gas supply to the domestic gas market.

    He said under his watch, the nation celebrated a record highest peak power generation of 5,222mw on Dec. 18 2017 with 76 per cent of the generated power from thermal power plants.

    ”Gas supply to industries has also increased with an average daily supply of about 450 mmscfd.

    ”In addition, we kicked off the 614 km Ajaokuta-Kaduna-Kano (AKK) pipeline project, after obtaining FEC approval for the EPC of the Ajaokuta-Kaduna-Kano gas pipeline on 13th December 2017.

    ”The pipeline on completion is expected to deliver gas to the ongoing Abuja, Kaduna and Kano Power Plants with the potential to generate additional 3,600MW to the national grid.”

    In the downstream, Baru said milestone had also been achieved in rehabilitating and putting back on stream key downstream infrastructure critical to sustaining smooth and cost effective distribution of petroleum products across the country.

    ”Products supply availability was sustained across the country through a combination of Direct Supply Direct Purchase initiative and Forex provision to pre-qualified third-party importers,” he said.

    On the refineries, Dr. Baru said in spite of the numerous challenges, the refineries remained operational and strategic in their contribution to petroleum products availability to support domestic supply across the nation.

    He stated that other key achievements of his leadership included institutionalising increased transparency in the bidding process for crude oil term contracts, marine contracts and attracting investors into critical areas of the Nigeria Oil and Gas Industry.

    Baru charged the staff of the corporation not to rest on their oars, saying they should work towards making NNPC a great organisation that would be the pride of its founding fathers.

    Baru was appointed the 17th Group head of NNPC by President Buhari on July 4, 2016.