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Tag: Maikanti Baru

  • NNPC repays $1b of $5b cash call

    The Nigerian National Petroleum Corporation (NNPC) on Thursday said it has maintained commitment to repayment of cash calls arrears where about $1bn dollars of $5bn indebtedness has been settled.

    Its Group Managing Director, Dr. Maikanti Baru, disclosed this in Abuja while addressing the corporation’s staff via a mail broadcast to commemorate his two-year anniversary at the helm of affairs of the NNPC.

    Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu revealed this in a statement on Thursrday.

    The statement added that in the upstream sub-sector, Baru said the corporation had worked hard to sustain production level from the nation’s assets to above average of 2million barrels per day in 2018.

    He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First E&P JV which is expected to deliver a peak production of 50kbopd and 120MMscfd by 2019.

    He vowed that the corporation remains globally competitive to ensure value addition to the nation’s hydrocarbon resources for the benefit of Nigerians and other stakeholders.

    Baru, who described his two years in the saddle as “exciting”, said ever 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,” Dr. Baru told staff in the nine-page address.

    Read Also: NNPC to raise fund from capital market for projects

    Dr. 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, improved human capital development as well as optimized NNPC’s non-core oil businesses.

    The GMD said the 12 Business Focus Areas (12 BUFAs) was designed to succeed, having emplaced aggressive business improvement policies to ensure NNPC’s performance threshold across the oil and gas value chain.

    He said NNPC under his watch had initiated and successfully completed milestone deliverables in the Upstream, Midstream, including the refineries and in the Downstream, leading to improved performance and business stability across the corporation’s major operations and entire value chain activities.

    In the midstream sub-sector, Dr. 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, currently supplying an average of 720MMscf/day which represents about 47% of total gas supply to the domestic gas market.

    He said under his watch, the nation celebrated a record highest peak power generation of 5222MW on 18th December 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 450mmscfd, Dr Baru noted.

    “In addition, we kicked off the 614km 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 3600MW to the national grid.

    Dr. Baru said NNPC and ONHYM jointly engaged two consultants, Penspen and ILF, to carry out the Feasibility Studies and Project Management Consultancy services respectively, revealing that the Feasibility Studies have been concluded as planned, while plans are afoot to jointly commence FEED before the end of the year.

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

    Despite challenges of vandalism, sabotage and aging infrastructure, Dr. Baru noted, NNPC had achieved milestones in revamping the corporation’s critical oil & gas infrastructure.

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

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

    The GMD stated that other key achievements of his leadership so far were  institutionalizing increased transparency in the bidding process for crude oil term contracts as well as marine contracts and attracting investors into critical areas of the Nigeria Oil and Gas Industry, including the rebranding of about 10 subsidiaries of the corporation towards more profitability.

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

    It would be recalled that Baru was appointed the 17th GMD of NNPC by President Muhammadu on the 4th July.

  • NNPC to raise fund from capital market for projects

    … To increase reserve 40bb/d in three years

    …Low, high crude prices have negative effects, says OPEC

    Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mr. Maikanti Baru, said the corporation would raise funds from the capital market to finance a minimum of seven new oil and gas projects in the country.

    In his keynote address at the ongoing Nigerian Oil and Gas Conference and Exhibition in Abuja, titled ‘Driving Nigeria’s Oil & Gas Industry towards Sustained Economic Development and Growth,’ Baru listed the projects as NNPC/Nigeria Agip Oil Company Joint Venture Idu-Re-development and South Gas Project.

    Others, he said are the North Gas Project, Central Gas Project, NNPC/Total Exploration and Production Nigeria JV’s Ikike Project, NNPC/Shell Petroleum Development Company JV Southern Swamp and Associated Gas Solution Step 2 Project.

    He added that the NNPC was on the verge of concluding the Bonga South West/Aparo, BSWA, project with Shell Nigeria Exploration and Production Company, SNEPCO, pending the resolution of certain disputes with its partners.

    The NNPC boss said that “We intend to sanction the multibillion US dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the Heads of Terms with SNEPCO on the various pending PSC Arbitration disputes. This will jump start the resolution of all the other PSC Arbitration Disputes.”

    Also speaking in the conference, the Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Mr. Mohammad Barkindo, insisted  that both low and high crude oil prices have negative effects for both oil producing countries as well as consumers.

    Read Also: No crude oil discovered in Bida Basin yet -NNPC

    According to him, Barkindo stated that extreme volatility in the crude oil market has very negative consequences for such consumers and producers.

    He said, “Low oil prices are bad for producers today and create situations that are bad for consumers tomorrow. And high oil prices are bad for consumers today and lead to situations that are bad for producers tomorrow.”

    Barkindo noted that volatility is a devastating disincentive for investment, which is the lifeblood of the petroleum industry and which is also essential for ensuring adequate supply in the future.

    He explained that from 2014 to 2016, during the last industry downturn, world oil supply growth outpaced that of oil demand, with world oil supply growing by 5.8 million barrels per day, while world oil demand increased by 4.3 million barrels per day.

    According to him, what was particularly ominous for consumers was the fact that investments were choked-off, with exploration and production spending falling by an enormous 25 per cent in both 2015 and 2016.

    He disclosed that nearly one trillion dollars in investments were frozen or discontinued, while thousands of high quality jobs were lost.

    As a result, Barkindo noted that a record number of companies in the petroleum industry filed for bankruptcy.

    He said, “Lack of investment on this scale has very serious repercussions for future consumers, especially given the increase in world oil demand which is expected in the long term.

    “According to OPEC’s World Oil Outlook, long-term oil demand is expected to increase by 15 mb/d, rising from 94.5 mb/d in 2016 to 111.1 mb/d in 2040. To meet the projected increase in global oil demand, investments worth an estimated $10.5 trillion will be required.

    “Investment is also necessary to offset the impact of natural decline rates, which can be as high as five per cent per year. To maintain current production levels, the industry might need to add upwards of four million barrels per day each year.”

    Meanwhile, Baru said that the corporation was considering increasing Nigeria’s crude oil reserves by one billion barrels annually, growing the country’s reserves base from 37 billion barrels to 40 billion barrels within the next three years.

    He said that “The outlook for 2018 and beyond is to increase crude oil reserves by one billion barrels Year-on-Year from the current 37 billion barrels to 40 billion barrels by 2020 and also increase national oil daily production to three million barrels per day.”

    On the challenges confronting the sector, Baru stated that, “We recognised the challenges, as well as the opportunities oil demand growth presented us, particularly as a major exporter experiencing a surge in local demand for petroleum products.

    “The balance of these objectives required that we undertook a paradigm shift in our business model to ensure we attract capital and sustain the flow of investment outside traditional government funding.

    “We adopted a synergetic and collaborative approach to doing business going forward such as emplacing cost reduction and cost-saving measures to ensure that we stay profitable and in business, reduction of contracting cycle-times, resource pooling, facility-sharing for clustered assets as well as standardisation of the operating framework.”

    On gas production and distribution, the NNPC boss said: “In terms of gas production, the domestic demand for gas in Nigeria is unprecedented, with a current daily realistic gas demand of 4,000mmscfd which is expected to grow exponentially to about 7,500mmscfd in the next five years.  “Within the next three years, with our Joint Venture partners, we are committed to increasing natural gas availability from the current 1.5 billion Standard Cubic Feet per day, to about five billion standard cubic feet per day in 2020.

    “Consequently, the government will supply enough gas to generate up to 15 gigawatts, GW, of electricity to the power sector by 2020 and stimulate gas-based industrialization.

    “We have been able to increase gas supply to power plants and industries in the country, through repairs of critical infrastructures and reactivation of shut down gas plants; all these have resulted in doubling domestic gas supply from an average of 700mmscfd in June 2016 to 1,500mmscfd currently.

    “We have completed and commissioned almost 600km of new gas pipelines thereby connecting all existing power plants to permanent gas supply pipelines.”

    “On the gas export market, part of our strategic aspiration for gas is to strengthen our footprint in high-value gas export through Liquefied Natural Gas, LNG, and aim to secure about 10 per cent of the global market share of traded LNG.

    Commenting on this year’s target for NLNG Train 7 deadline, the NNPC boss said that “On the expansion of our existing 22 metric tonnes per annum (MTPA) NLNG plant, we are on the verge of taking Final Investment Decision (FID) this year for additional eight MTPA NLNG Train 7 Plant.”

    Continuing, he said, “Internally, for NNPC’s upstream subsidiary – The Nigerian Petroleum Development Company (NPDC), the plan is to grow its production to 500,000 bopd of oil and 1.5Bscfd of gas by 2020.

    “Furthermore, in terms of frontier exploration, we are optimistic that in the Benue trough, we will drill an appraisal well in Q3 2018 to test the extent of the Kolmani Structure in the Benue Trough. Recall that Kolmani river-1 exploration well drilled by Shell in 1998 encountered 238ft net hydrocarbon interval.

    “In NNPC we believe that the downstream sector holds the future. The plan to become a net exporter of refined products by year-end 2019 is on course. Based on this timeline, the revamping of our four refineries are our topmost priorities in NNPC for the midstream segment. Alongside this, we are also progressing with the revamping and rehabilitation of all our pumping stations, pipelines, and depots across the country.”

  • NNPC retail to capture 30% market share

    The Nigerian National Petroleum Corporation’s (NNPC) Downstream subsidiary, NNPC Retail Limited, has been directed to target 30 per cent market share of petroleum products distribution business in Nigeria’s Downstream Petroleum Sector by 2020.

    NNPC Group Managing Director, Dr. Maikanti Baru, handed down the directive yesterday  in Abuja during the unveiling ceremony of brand new logos for four of its downstream subsidiaries: Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC), NNPC Retail Limited and NNPC Shipping.

    Baru explained that the target would enable efficient products distribution and price stability across every nook and cranny of the nation, even as he added that by that time NNPC Retail Ltd would also extend its businesses to other neighbouring states in the west African sub-region.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this known in a statement.

    Currently, the Corporation’s downstream company holds about 14 per cent market share of the nation’s products distribution network.

    “In making the choice to rebrand these entities, we are taking a huge step towards enhancing our corporate reputation, improved profitability, sustainable growth and most importantly, capture a larger share of the market across the entire downstream value-chain,” Dr. Baru declared.

    According to him, re-branding the four companies also prepares them for more competitiveness in the downstream sub-sector, in line with the corporation’s 12 Business Focus Areas (BUFAs).

    He informed that the NNPC was committed to ensuring that PPMC as a flagship national products marketing company becomes more profitable and crucial to meeting the nation’s energy demands.

    Baru added that NNPC was working assiduously towards bequeathing an NPSC that would brim with revamped infrastructure for efficient storage and distribution of petroleum products across the nation, thereby ensuring supply reliability and energy security.

    The NNPC helmsman noted that it was the corporation’s key aspiration to strengthen its shipping outfit to support the downstream growth objectives of its subsidiaries, saying the corporation would not relent until NNPC Shipping becomes the partner of choice in the marine transportation and logistics business.

    He said: “The Downstream Sector is one critical aspect of our business upon which we are readily assessed by majority of our stakeholders nationwide and in the international market environment, making it imperative for the corporation’s long-term survival and image.”

    On the significance of the unveiling of logos ceremony, Dr. Baru described a company’s logo as the visual cornerstone of its brand identity, stressing that the logo brings out a company in a crowd.

    “Today, corporations and other multinationals don’t even need their names written on their logos before people understand what they stand for”, Baru stated.

    Read Also: NNPC, Agip to add 500mw to power grid

    He assured that in no time, the logos would spur and facilitate a great deal of improved brand loyalty towards the PPMC, NPSC, NNPC Retail Ltd and NNPC Shipping.

    The GMD stated that he expected the rebranded companies to overcome their current challenges, improve on their performance and become more profitable, all collectively shoring up NNPC’s reputation.

    Echoing the Dr. Baru, the Chief Operating Officer Ventures and Chairman of “We Can Develop Our Logo In-House” project, Dr. Victor Adeniran, stated that the unveiling of the logos seeks to rebrand the corporation’s four downstream companies, adding that ultimately the logos would be part of the underlying factors that would change their respective fortunes for the better.

    “Let me particularly salute the ingenuity and resourcefulness of the participating staff who came up with these fantastic ideas and concepts, some of which we are unveiling today. This goes to show that the NNPC is indeed blessed with extraordinary hands that are ever ready to address its challenges without recourse to external expertise,” Adeniran stated.

    He disclosed that the first tranche of entries covered PPMC and NPSC logos, of which a total of 59 entries scaled the originality test, while the second tranche covering NNPC Retail Ltd and NNPC Shipping also had 41 entries that scaled the originality test.

    “To demonstrate the intensity of the competition, some even sent in multiple entries. Out of these entries, selecting the top three brands for each company was not an easy task”, explained

    Two NNPC staff emerged overall winners, with Ibrahim Ahmed’s submissions being selected for the PPMC, while Fasoro Abimbola’s beat other submissions to emerge the best for NNPC Retail Limited and NNPC Shipping.

  • NNPC, Agip to add 500mw to power grid

    As part of efforts to ramp up power supply in the country, the Nigerian National Petroleum Corporation (NNPC) and its Joint Venture Partner, Nigeria Agip Oil Company Limited (NAOC) have pledged their commitment to implement the Okpai Phase 2 Project to shore up the current power generation with 500 megawatts of power.

    Group Managing Director of the NNPC, Dr. Maikanti Baru, made the disclosure when he received the new Vice Chairman and Managing Director of NAOC, Fiorillo Lorenzo, in his office at the NNPC Towers on Tuesday.

    He said that the Okpai Phase 2 Project was being fine-tuned to expeditiously bring it on stream, adding that it would increase power generation by between 10 to 12 per cent.

    Read Also: NNPC seeks dual licensing for petroleum operation

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this disclosure in a statement, saying that “That is additional 500mw of power that is coming in, provided the transmission is up and going, then we should be able to boost the current power supply to the country by another 10 to 12 per cent of the current generation.”

    The GMD informed that the project, when completed, would impact significantly on economic activities of the country, stressing that once power was available, there would be a lot of improvement in the standard of living of Nigerians.

    Earlier, Lorenzo, said his company had a long-standing partnership with Nigeria and NNPC.

    “We want to grow and we want to build and develop new opportunities for the country and support the country in its energy journey. We want to try to change and improve the energy mix of the country and the Okpai Project is a testament of this commitment of our company,’ Lorenzo affirmed.

    On his part, the outgoing Vice Chairman of NAOC, Massimo Insulla, said the meeting with the GMD was fruitful with the discussion focusing on the opportunities in the Joint Venture (JV) and the Production Sharing Contract (PSC) and taking advantage of the oil price condition to bring additional value to the investment in the Nigeria.

    “We have been working for 15 years to implement the Okpai Phase 2 Project which is very important to the NNPC/NAOC JV, and we have been able to find a way to achieve our target with this administration,” Insulla stated.

  • BudgIT hails NNPC on plan to reduce gas flaring

    A civic technology organisation, BudgIT, has commended plans to end gas flaring by the Nigerian National Petroleum Corporation ( NNPC ).

    The organisation, in a statement by its Communication Lead, Abiola Afolabi, in Abuja on Wednesday, said the plan by NNPC to reduce gas flaring could not have come at a better time than this.

    The statement said gas flaring was not only ravaging lives in the host communities in Niger Delta, but also costing the economy over $2.5bn annually.

    “Yet the economic implications of ending this practice should significantly improve Nigeria’s power generating capacity.

    “Gas flaring also has significant impacts on the life expectancy of the ‘working poor’ and ‘have-nots’ who struggle to live within these communities,” the statement, said.

    It welcomed NNPC’s new three-point smart strategy aimed at ending gas flaring in Nigeria and also encouraged the corporation to release more information about the process, performance metrics, regulations and enabling laws that would aid in the fulfillment of this plan.

    The organisation said its recent report on gas flaring indicated that about 30 million people residing in the region were affected by unnecessary gas burning by oil companies in the region. 

    “It is therefore commendable that Dr Maikanti Baru in his speech at the 50th Offshore Technology Conference (OTC) laid out a three-point smart strategy aimed at ending the practice.

    “BudgIT is pleased with NNPC announcement to reduce gas flaring ahead of 2020 flare out deadline by the Department Petroleum Resources (DPR).

    “We urge the media, Civil Society Organizations, oil companies and the  government to ensure that this laudable initiative is monitored and implemented.

    “It is equally important to see a demonstrable plan with specified timelines of strategy implementation.

    “We believe the perennial issue of gas flaring can be contained if there’s a political will to implement the declared policies.

    “We urge the NNPC to release its monthly operational and financial reports to publish the reports for the first quarter of 2018 in line with its transparent, open and accountable practice,” the statement added.

  • Kachikwu, others to speak at 2018 Sub-Sahara Oil and Gas Summit

    The 2018 Sub-Sahara Africa Upstream Oil & Gas Summit and Exhibition, is gathering momentum with the Minister of State for Petroleum, Dr. Ibe Kachikwu together with the Group Managing Director, Nigerian National Petroleum Commission, (NNPC), Maikanti Baru expected to lead other speakers.

    The summit will hold in Abuja, from 11th to 13th of April under the themed, “Gearing up for Growth: Sub Sahara Oil, Gas and Power Oil Chain’’, and it is expected to attract many key industry players from across Africa and beyond.

    Speaking during a press conference in Lagos to announce the programme, the Chief Executive Officer of the Sub-Saharan African Oil and Gas Summit and Exhibition, Mr Dapo Ayoola, said the exhibition will provide a veritable opportunity for established oil and gas companies, government agencies, service providers, equipment manufacturers and new entries to interact and showcase their possibilities.

    Speakers lined up for the Summit include: the Minister of State for Petroleum, Dr. Ibe Kachikwu; the Group Managing Director, Nigerian National Petroleum Commission, (NNPC), Maikanti Baru; Mr. Bayo Ojulari, MD, Shell Nigeria Exploration & Production Company (SNEPCo); Dr. Joe Asamoah, MD, EnerWise Africa; Mr Powell Maimba, President, East Africa Petroleum Institute, Barrister Egbert Faibille Jnr., Acting C.E.O, Petroleum Commission, Ghana; Mr. Modestus Lumato, Tanzanian Petroleum Corporation; Mr. Tune Lemo, former Deputy Governor, CBN and Malam Mele Kyari, Group GM, Crude Oil Marketing Division, NNPC.

    Others are: Mr. Chimezie Emewulu, MD, Seamfix; Mrs. Oyeyemi Ladepo, Group GM, HR, NNPC; Mr. Ahmadu Sambo, Group GM, Finance, NNPC; Adewale Ladenegan, MD, Kaduna Refining & Petrochemical Company (KRPC); Mr. Paul Arinze, GM, Public & Govt. Affairs, ExxonMobile Nigeria, amongst others.

    According to him, Africa is the last true oil and gas frontier with more than 4,200 oil and gas blocks identified. Almost half of these blocks are open, subject to force majeure or in the application phase.

    “More that 80% of the 1,300 blocks in North Africa are licensed, while in Sub-Sahara Africa, it is estimated that only about 30% of 2,900 blocks are licensed. It is evident that many new opportunities still exist, especially for the exploration and production companies that are willing to take risks,” he said.

    He further stated that they also want to inspire young ladies in the Universities and Polytechnics to see the oil and gas industry as one that is encompassing for everybody.

    “So we have women in petroleum day where successful female practitioners based from HR or technical backgrounds, geoscientists, finance or petroleum engineers would come together and talk to the upcoming ones that there is an opportunity for everyone in the oil and gas. The women in petroleum section is a lovely one and we have invited top women across the continent,” he added.

    Read Also: Kachikwu: Nigeria needs $100b oil investments

  • NASS has assured us PIB will be passed by June – NNPC

    NASS has assured us PIB will be passed by June – NNPC

    The Nigerian National Petroleum Corporation ( NNPC ) says the National Assembly has assured that the Petroleum Industry Bill ( PIB ) will be passed by June.

    The Group Managing Director of the NNPC, Dr Maikanti Baru, said this at the 2018 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja on Thursday.

    The PIB was split into four parts namely; the Petroleum Industry Governance Bill, which had been passed, and the Host Communities, Fiscal Reforms and Downstream Bills, which are awaiting passage.

    Baru, who was represented by the NNPC Chief Operating Officer Upstream, Dr Rabiu Bello, said the Bills must be looked into in order to attract the needed N25 billion year-on-year investments to the industry.

    “In the area of policy, the popular omnibus single petroleum industry bill has been broken into three parts for quick review and passage by the National Assembly.

    “As you aware, the first part of the bill, the Petroleum Industry Governance Bill was passed by the House recently.

    “When the other sections of the bill are finally passed, it will unlock more than10 billion dollars of investment held up due to uncertainty.

    “The promise we got last week from the National Assembly was that before the end of the second quarter of this year which we see as June 30, they promise the three other bills will also be concluded and passed.

    “So, hopefully, 2018 will see the end of all the discussions around the PIB which started in year 2000,’’ Baru said.

    Baru noted that its planned revamp of four of its refineries in Kaduna, Warri and Port Harcourt, would include an upgrade of their collective refining capacities from their present 445,000 barrels per day (bpd) to one million barrels per day (mbd).

    It said once the 650,000 bpd Dangote Refinery in Lagos come on-stream, Nigeria would become a net exporter of refined petroleum products.

    Baru said the Federal Government had completed more than 500 km gas pipelines in eight years.

    “We have embarked on one of the most aggressive gas reforms and implementation.

    “Accelerated implementation of gas pipeline infrastructure development, with specific focus on critical pipeline infrastructure to power plants being put in place.

    “Between 2010 and today, almost 500 km of pipelines have been completed, commissioned and now delivering gas,’’ he said.

    He listed some of the completed pipelines to include the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km), and Ukanafun-Calabar (128km).

    “In addition, there is ongoing construction of the very strategic East-West OB3 pipeline (127km) scheduled for completion by Q3 2018.

    “The expansion of the Escravos-Lagos Gas Pipeline System is scheduled for completion by Q1 2018.

    “Most recently, the Federal Executive Council (FEC) approved the contract award of the 40-inch by 614 Km Ajaokuta-Kaduna-Kano pipeline and associated facilities.

    “This pipeline is expected to supply natural gas to power plants and industries in the northern part of the country.

    “Once completed, the nationwide backbone gas infrastructure will be in place.

    “With the effort in infrastructure development, we would have expanded supply capacity, establishing an integrated gas pipeline infrastructure grid across the entire country,’’ he said.

    The lecture had the theme: “The Nigerian Oil Industry in a world of Changing Energy Supply: Are we prepared?”

    It had panelists from across the sector charting the way forward on gas and renewable energy as oil would soon be phased out with the introduction of electric cars in industrialised countries.

    NAN

  • NNPC investing in renewable energy, says GMD

    NNPC investing in renewable energy, says GMD

    Dr Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation ( NNPC ), said on Wednesday that the company is investing in renewable energy to accelerate Nigeria’s industrial development.

    Baru said at the ongoing 39th Kaduna International Trade Fair that the NNPC had set up Renewable Energy Division not only to develop solar and other renewable energy sources, but also develop bio-fuels from agricultural produce.

    According to him, the multiplayer effects of such ventures include reviving the agricultural sector and generating huge employment.

    “It will also contribute significantly to power generation, producing high volume of animal feed, starch and other by-products.

    “Not only that, the bio-fuel will be blended to our refineries petroleum products, which will significantly reduce imports of petroleum products into the country.”

    The NNPC boss said that decades ago, mining, agriculture and commerce sustained the economy of each region of the country before oil was discovered in the 70s.

    He stressed that the feat achieved in the past, can be replicated if the nation re-channel the productive sector through holistic policy actions toward rebuilding infrastructure.

    “Key infrastructure sector that needs to be tackled include electricity, transport, information and communication, roads, water and sanitation and rehabilitation of existing oil and gas pipelines facilities.

    “It is my sincere belief that revitalising these critical infrastructure will promote efficiency in commerce, industry and agriculture.

    “This will enable the nation’s entrepreneurs compete favourably with their peers across the globe,” Baru said.

    He commended the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) for attracting discussions on opportunities for sustaining industrial growth, boosting commerce and agriculture for international competitiveness.

    Also speaking, KADCCIMA President, Dr Muheeba Dankaka, thanked the NNPC for the years of partnership toward building a robust private sector.

    Dankaka said that the Organised Private Sector was ready to partner with government agencies in building sustainable industrial sector through the exploitation of agriculture and the productive sector in general.

    NAN

  • NNPC imports 5.8b petrol to tackle scarcity

    NNPC imports 5.8b petrol to tackle scarcity

    The Nigerian National Petroleum Corporation (NNPC) on Tuesday said that it has imported 9.8 million metric tons of Premium Motor Spirit (PMS) worth $5.8 billion to combat the fuel crisis that resurfaced since late last year.

    This was disclosed by the Group Managing Director of the corporation, Dr. Maikanti Baru, during a public hearing by the Senate Committee on Public Accounts  at the National Assembly Complex in Abuja.

    In a presentation by the GMD who was represented by the Chief Operating Officer, Finance and Accounts, Mr. Abdulrazaq Isiaka, NNPC stated that it carried out the massive importation in fulfilment of its statutory role of supplier of last resort to ensure that Nigerians do not suffer as a result of product unavailability.

    The corporation disclosed this in a statement on Tuesday.

    Read Also: NNPC commences recovery of N100b landed property

    According to the GMD, the corporation’s provision of 9.8 million metric tons of petrol so far has helped a great deal in ameliorating the suffering of Nigerians.

    He said the corporation’s intervention became necessary following the inability of the major and independent marketers to import the product because of the high landing cost which made cost recovery and profitability difficult owing to the regulated price regime.

    While assuring the public of adequate product supply, the GMD, however, pointed out that cross-border smuggling due to price disparity between Nigeria and neighbouring countries where a litre of petrol sells above N350 per litre as well as logistic issues in trucking products to different locations across the country remained serious challenges in the quest for fuel queue-free situation in the country.

    The Chairman Senate Committee on Public Accounts, Sen. Matthew Uroghide, noted that the public hearing was a part of the Committee’s duty to find lasting solutions to the problem of fuel scarcity in order to make life easy for all Nigerians.

     

     

  • $16b Egina probe: $400m gas proceed unutilized

    $16b Egina probe: $400m gas proceed unutilized

    The Senate Ad Hoc Committee on Investigation of Local Content Element on Total Upstream Nigeria Limited $16 Billion Egina deep sea oil project and other related projects on Wednesday stumbled another un-utilised $400million proceed from sale of gas resources.

    The committee made the discovery when its chairman, Senator Solomon Adeola (Lagos West) requested to know from the Group General Manager of NAPIMS, Mr. Roland Ebuware who represented NNPC Group Managing Director Mr. Maikanti Baru, the fate of gas fallout of the 200,000 barrel per day Egina Oil project.

    Adeola noted that so far only the crude oil aspect of proceed is in public domain.

    Mr. Ebuware told the committee that no agreement is in place on what to do with the proceed of the gas from the project which is to be piped to Nigerian Liquefied Natural Gas (NLNG) company other than putting it in an escrow account.

    He added that a similar ongoing project, the Bonga Deep Sea Oil Project already have $400million in an Escrow account waiting for a detailed agreement on sharing formula between the Nigerian Government and the International Oil Companies (IOCs).

    He regretted that since no agreement is in place for such sharing the fund is just lying idle.

    He noted that it is expected that similar proceeds from Egina will lie idle until an agreement on sharing formula is arrived.

    He said that the Senate could come in through legislation or other instruments to ensure that such huge funds are utilized for developmental purposes.

    Vice Chairman of the committee, Senator Godswill Akpabio (Akwa Ibom North West) expressed disbelief that such huge funds has been un-utilized for developmental purposes due to lack of agreement.

    Akpabio noted that in an era of serious budget deficits year in year out, such funds should have come handy in North East Development, the Second Niger Bridge and even payment of the monthly N5,000 benefits promised by the Federal Government to unemployed youths.

    Engineer Simbi Wabote, the Executive Secretary of Nigeria Content Development Monitoring Board (NCDMB) stated that in execution of the Egina projects there are infractions of the Local Content Act sometimes occasioned by exigencies of lack of capacity as well as infringement of expatriate quota adding that it is often difficult to enforce some provisions of the law as conviction through litigation process has to take place before enforcement.

    He suggested the need to amend the Local Content Act for sanctions for breaches without the long drawn litigation process adding that he will forward the various infractions to the committee as a guide in possible amendment of the law.

    Senator Adeola reiterated the need for a holistic amendment of the Local Content Act of 2010 in light of the various discoveries of the committee if the Act is to achieve it aims of allowing Nigeria to benefit from the Oil and Gas industry and prevent leakages of our foreign currency adding that such amendment will also include broadening the law to include manufacturing, ICT and construction industries.