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Tag: Maikanti Baru

  • NPDC to increase oil production to 500,000 bpd before 2022

    NPDC to increase oil production to 500,000 bpd before 2022

    The Nigerian Petroleum Development Company ( NPDC ), one of the upstream subsidiaries of the Nigerian National Petroleum Corporation ( NNPC ), will increase its daily crude oil production to 500,000 barrels per day before 2022.

    This target was announced by the Group Managing Director of the NNPC, Dr. Maikanti Baru, during the inauguration of the board of directors of the company in Abuja.

    Addressing the members, the GMD who also doubles as Chairman of the board charged them to grow the company’s assets and ensure that the 500,000 barrels per day crude oil production target is met by 2022”.

    The NNPC Group General Manager, Group Public Affairs Division,  Ndu Ughamadu made this known in a statement yesterday. 
    Bsru disclosed that the company was currently supplying 50 per cent of the West African Gas Pipeline system gas, adding that it was the in thing to have more gas assets, while commending the company for leaving up to expectations.

    Baru directed that NPDC’s Memorandum of Understanding (MOUs) with host communities should be tied to the availability of the lines saying “as stakeholders, they share in both our success and losses as well”.

    Also speaking at the event, Managing Director of the company, Mr. Yusuf Matashi, said from the meteoric growth the company had witnessed since 2016, the GMD’s target of 500,000 barrels per day was realisable by 2022.

    He said the board came at an appropriate time as it would address issues of processes and procedures necessary to drive a major oil company like the NPDC, while assuring it of the commitment of the company to the growth target.

    The NPDC currently produces about 200,000 barrels per day and going by its work programme, it will increase to 300,000 barrels per day this year.

  • End fuel queues in seven days, National Assembly orders NNPC

    End fuel queues in seven days, National Assembly orders NNPC

    A Joint Committee of the Senate and House of Representatives on Petroleum Resources yesterday mandated the Nigeria National Petroleum Corporation ( NNPC ) to end the lingering fuel scarcity and queues  at filling stations within seven days.

    The committee also asked the Nigeria Customs Service and other security agencies especially those at the borders to halt the alleged diversion of fuel tankers from Nigeria to neighbouring countries.

    Chairman Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa gave the ultimatum after a closed door meeting of members of the committee.

    The committee meeting was preceded by another meeting with the Group Managing Director of the NNPC, Engr. Maikanti Baru and other top officials of the oil corporation.

    The lawmakers were said to have demanded explanations from the NNPC on why the fuel shortage had continued to linger with queues returning to major towns and cities across Nigeria.

    Marafa was said to have described the situation as embarrassing and acknowledged that though, NNPC made attempts to end the fuel shortage during the Christmas, the return of the queues in Lagos and Abuja was an indication that the problem was not completely over.

    Marafa was said to have insisted that “This situation has lingered for too long. Members of the public are suffering and when they are suffering, we cannot sit down, fold out hands and say all is well.

    “At a point, you told us the problem has been solved; we also saw that the fuel queues disappeared for some time, but unfortunately the queues have returned. You were even going from station to station monitoring the situation but you have not been able to resolve the issue once and for all.  In any situation, when your best is not good enough, it is very bad and most unfortunate.”

    He told the NNPC to address the committee on the reasons for the resurging long queues at various filling stations; what the NNPC had been doing to resolve the challenge and how long it would take before the queues could disappear completely 

    In a slide presentation, Baru attributed the situation to the on going repair  works on Apapa Wharf road  and the blockage of the road by some accidents vehicles, saying these created  challenges along the route and disrupted the free movement of fuel trucks from the fuel depots to other parts of Lagos.

    The NNPC boss also  blamed the current  fuel crisis on the breakdown of the Jebba/Mokwa road in Kwara State  as well as the crash-landing  of a vessel conveying  PMS along the Escravis/Warri/Oghara route. According to Baru, these two incidents also contributed to slowing down the pace of distribution of available petroleum products to different parts of the country.

    in addition, Baru disclosed that the NNPC was still bugged down by the challenges of product diversion and smuggling of same across the borders. According to him, the price of petrol in neighbouring countries such as Cameroon, Chad, Niger, Benin and Ghana were at least double the price of the product in Nigeria. He explained that this price differential has made the smuggling of the product very attractive.

    Baru however, said the NNPC will continue to tackle the  fuel shortage  by injecting an average of 60million litres of petrol into the market on a daily basis.

    In spite of these explanations, many members of the committee expressed dissatisfaction with the  situation, observing that the NNPC was still working around the symptoms of the fuel crisis and building all its solutions on fuel importation rather than making the nation’s refineries to work to ensure product availability all the year round.

    The committee therefore resolved that the NNPC must change the  narrative on the crisis and end  the queues in seven days without excuses.

  • DPR issues 13 licenses for modular refineries

    DPR issues 13 licenses for modular refineries

    …NNPC seeks board approval for refineries’ financiers this month

    …eyes 90 per cent capacity utilization 

    The Nigerian National Petroleum Corporation ( NNPC ) yesterday said that out of the  35 interests that were indicated in modular refineries, the Department of Petroleum Resources ( DPR ) had  issued licenses to 13.

    The Group Managing Director, Dr. Maikanti Baru, who made this disclosure said that he had already been invited to the ground breaking ceremony of the first one in Bayelsa in February. 

    He said “So far, about 35 interests for modular refineries have been declared and the Department of Petroleum Resources (DPR) has issued licenses to about 13 and I have been invited to the ground breaking ceremony of the first one in Bayelsa next month.”

    Baru also said that NNPC was targeting to forward the agreements for the selection of financials for the Port Harcourt Refining Company Limited (PHRC), Warri Refining and Petrochemical Company Limited (WRPC) and the Kaduna Refining and Petrochemical Company Limited to the corporation’s board during its meeting this month. 

    The corporation’s boss, according to the statement that the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued yesterday, said that Baru 

    disclosed this while briefing members of staff of the corporation on the fuel supply situation in the country during a town hall meeting in Abuja.

    He added that once NNPC secured the funding, it would commence the rehabilitation of the refineries.

    The target, said the statement, was to achieve 90 per cent capacity utilization before the end of next year.

    He said “We are pushing towards the final selection of our financiers and we expect that when that is done, we’ll get the agreements and present them to our board, meeting this month to secure their endorsement and once we have the funding, we would start the rehabilitation of the refineries towards a 90 per cent capacity utilization per stream day before the end of 2019.”

    NNPC said that the development was to uphold the promise to boosting petroleum products supply and distribution in the Country

    He described the procedure for electing the financiers as painstaking, noting, however, that it was necessary to enable a desired closure on the subject.

    Baru said the corporation was also encouraging new refining capacities to come on board, adding that there were two consortia that have indicated interest to co-locate refineries in Warri and Port Harcourt.

    He said NNPC would provide whatever utility services the companies might require, such as power, processed steam, water and land, stressing that the corporation has agreed in broad terms on areas of collaboration to fast track the development.

    “Am happy to inform you that progress has been made, up to the level of an acceptable detailed engineering design and we are in the process of mobilizing some of the refineries already identified for installation in Nigeria,” the GMD informed.

    He said the Kaduna State Government was also championing a proposal to co-locate another refinery close to the KRPC with the intent of sourcing Nigerien crude for its operations.

    Baru stated that other Greenfield refineries were to be brought on board soon in Kano and Kaduna, stressing while on board, they would source their crude from Niger Republic.

    He said the designs for the proposed refineries in Kano and Kaduna were ready, saying their construction would commence this year.

    The NNPC GMD revealed that the Ministry of Petroleum Resources and the corporation were collaborating to encourage the establishment of modular refineries in the Niger Delta area to encourage job creation.

    He noted that the Federal Government and the NNPC would continue to encourage private sector initiatives that would bring in competition in the petroleum products supply and distribution network so as to guarantee energy sufficiency for the country.

    Dr. Baru hinted that the corporation was also exploring other sources of energy that could substitute Premium Motor Spirit (PMS), otherwise known as petrol, in cars and motorcycles, saying the use of Compressed Natural Gas (CNG) to power vehicles in Benin City is the right step in the right direction.

    He said over 3,000 vehicles were now CNG-powered in the ancient city, making them, he stated, more secured, more efficient, given that gas is a cleaner source of energy.

    Encouraging the development of infrastructure such as roads, railways and waterways are other means by which NNPC plans to lessen the pressure on PMS consumption, the GMD said.

    He applauded the Federal Government for approving the Abuja-Kaduna-Kano pipeline project, stating that the gesture would go a long way in supporting the NNPC’s transmutation into an integrated energy company.

    He said the project when completed would create the needed back bone for the Abuja’s 1,350 megawatts power plant, Kaduna’s 900 megawatts power plant and Kano’s 1,350 megawatts power plant.

    The NNPC GMD said the operations of the corporation were being challenged by incessant vandalism of crude and products pipelines and kidnapping of staff, adding that the corporation would continue to engage members of the host communities to emplace growth and development of the local communities.

  • Reps summon Kachukwu, Baru over subsidy payment

    Reps summon Kachukwu, Baru over subsidy payment

    The House Representatives on Wednesday invited the Minister of State for Petroleum Resources, Dr. Ibe Kachukwu, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru and the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Abdulkadir Umar, to appear before its committees over alleged fuel subsidy payment by NNPC.

    The trio will appear before the House Committees on Finance and Petroleum Resources (Downstream) to explain the current subsidy payment on Premium Motor Spirit (PMS) by the Corporation.

    The lawmakers also advised the Federal Government to make provision for subsidy payment in the 2018 Appropriation Bill, should it deem it neccesary to continue subsidy payment under any guise whatsoever.

    The decision followed the adoption of a motion of urgent national importance presented by Sunday Karimi (PDP, Kogi).

    He noted that despite the announcement of the removal of fuel subsidy by the federal government, NNPC still makes subsidy payment.

    Karimi said there is a need to ascertain the recipients of the latest subsidy payment since NNPC is the sole importer of fuel into the country.

    He said: “In December 2017, the Vice President, Prof. Yemi Osinbajo and Petroleum Minister (State), Kachukwu both admitted that the current landing cost of petrol is N171 per litre despite the fact that the federal government has pegged official rate at N145 per litre at the moment.

    “What this means is that it is the NNPC that is paying for the cost or deferential of N26 per litre, despite the fact that the Federal Executive Council has posited that it has removed petroleum subsidy and there is no parliamentary appropriation for subsidy payment in the 2017 Appropriation Act.

    “It should be noted that earlier in January 2017, NNPC conceded that fuel subsidy has returned because between January and March 2017 alone, NNPC recorded as ‘under recovery’ of N46.86 billion.

    “This trend continued at an increasing rate all through 2017. As at 2017 December, over N300 billion has been expended on petrol subsidy for 2017 alone, this trend continues to date.

    “We are all aware that ‘under recovery’ in downstream petroleum marketing implies that expected open market price of PMS, which includes the cost of importation and distribution of the commodity such as marketers margins, landing costs and freight cost is below the approved retail price.”

     

  • ‘We have enough petrol’ – NNPC tells motorists

    ‘We have enough petrol’ – NNPC tells motorists

    The Nigerian National Petroleum Corporation ( NNPC ) on Thursday in Abuja urged motorists not to engage in panic buying of any petroleum products.

    A statement by the NNPC Spokesman, Mr Ndu Ughamadu, assured motorists that the Corporation had a robust stock of Petroleum Motor Spirit ( PMS ) otherwise known as petrol.

    According to the statement, the PMS stock was sufficient to serve the nation for more than 30 days.

    ”This plea comes on the heels of queues noticeable in some fuel stations, especially in Abuja.

    ”Motorists are advised to report any marketer selling above N145 per litre of petrol or hoarding the products to the Department of Petroleum Resources (DPR) which is statutorily empowered to deal with such issues.

    ”DPR has offices located in all parts of the country and law enforcement agencies would mete out appropriate sanctions to operators of fuel stations who engage in hoarding or sell products above the recommended band,” Ughamadu said.

    In another statement, Ughamadu said the corporation’s Group Managing Director, Dr Maikanti Baru, had directed that repair works be carried out immediately on the Escarvos to Lagos Pipeline
    (ELP).

    Read also: NNPC doubles supply as scarcity bites harder

    The pipeline, ruptured by an explosion today, January 11, along Egbokodo-Omadino, in Warri South Local Government Area of Delta State.

    ”Dr Baru further directed that gas supply from other sources like Oben, Oredo, Sapele, Ughelli and Utorogu be stepped up to augment any shortfalls as repair works have commenced on the pipeline.

    ”The Escravos pipeline supplies gas to power plants, in addition to feeding the West Africa Gas Pipeline System.

    ”It should be recalled that ELPS-C (downstream) of this pipeline was incinerated by a bush fire Jan. 2, at Abakila, in Ondo State, which
    has since been rectified and brought back to service,” Ughamadu said.

    The earlier fire incident had affected gas supply to customers in Ondo, Ogun and Lagos States with subsequent shutdown of some power plants with a combined generating capacity of 1, 143MW.

    NAN

  • Oil production hits 2.5mb/d

    Oil production hits 2.5mb/d

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru on Tuesday that crude oil production was 1.8 million barrel per day without condensate and 2.5million per day with condensate.

    He dropped the hint to reporters after chairing the opening ceremony of the 2018-2019 crude oil term contract in Abuja.

    He had opened 254 bids from indigenous and international companies jostling to lift the Nigerian’s crude in the 2018/2019 term contract.

    According to him, the winners will have to lift 14 cargoes of crude in the term of one year.

    He explained that “the crude oil term contract is not a procurement contract but a process of selecting partners for the sale and procurement of NNPC equity crude oil volumes.”

    Asked when and how many winners would emerge, the NNPC boss said that the evaluation of the bids would take about four weeks and thereafter there will be the request for approval. 

    He, however, said that he did not know how many winners that would emerge from the exercise stressing that “It depends on how good the submissions are.”

     “After evaluation which will take about three to four weeks, we will get the consent. Once we get the approval we will conclude it.

    “I wouldn’t know how many will emerge. It depends on how good the submissions are.”

    Baru explained that NNPC was taking steps to evaluate the submission in order to ascertain the credibility of the companies and their directors.

    According to him, the corporation wouldn’t want its crude to enter questionable hands. 

    The NNPC helmsman said that contrary to the perception that the United States of America has exited completely from the importation of Nigerian crude owing to its own Shale oil, the US last year imported 16.5% of the nation’s crude. 

    His words: “Contrary to people’s perception that because of the Shale oil has taken off most of the markets of Nigerian crude. 

    “That is the perception we have as about two years ago we had very low export to particularly to the US. But last year we had up to 16.5% of our crude going to North America.”

    The Group General Manager, Crude Oil Marketing Division, Mr. Mele Kyari in his presentation said that Europe still remains the highest importer of Nigerian crude, while Asia and the Pacific were next to them. 

    He rolled out requirements for qualifying the would be lifters, who have 30 days credit period. The companies, he said, must have a credit network of $250million and $500million turn over. 

    On crude production, Baru said that “As at today Tuesday, crude production without condensate we have gone up significantly today. We have about 1.8million barrels per day without condensate. If we add condensate we have made about 2.25million barrels per day. It is a significant improvement.”

    According to him, the Escravos gas pipeline that there was fire on Thursday last week, had come back on stream leading to a generation 3.100mw. 

    He dropped the hint that NNPC was partnering with key stakeholders to improve the overall security of oil production sites, crude oil export lines and other critical oil and gas infrastructure.

  • Days of fuel scarcity are over – NNPC

    Days of fuel scarcity are over – NNPC

    The Nigerian National Petroleum Corporation ( NNPC ) on Tuesday assured Nigerians that there would no longer be fuel scarcity which had caused unbearable queues for Nigerians.

    The Group Managing Director of the corporation, Dr Maikanti Baru said this in Abuja at the 2018/2019 crude oil term contract bid opening.

    According to him, the opening of bids is an indication of President Muhammadu Buhari’s drive for transparency and accountability in the conduct of government business.

    He condemned the recent fuel shortage, which lasted a month, describing the corporation’s downstream counterparts as ‘unpatriotic’.

    Baru warned those that would be selected after the bid against indulging in sharp practices.

    “I am happy that this problem has been dealt with and the few pockets of non-compliance have been tackled.

    “It was unfortunate that due to the behaviour of a few bad eggs, the Christmas was a pain. We hope you will never be part of this incident and we also hope this type of thing never happens in the future.

    “NNPC is determined that this year there will be no fuel shortage. Definitely we have seen the last of it,’’ Baru said.

    He said NNPC’s focus was to enhance production volume, while ensuring that the “best value is realised through competitive marketing of our crude grades to international refineries and graders’’.

    “In line with this aspiration, NNPC is collaborating with key stakeholders to improve the overall security of our production sites, crude export lines and other critical oil and gas infrastructure’’.

    He urged the bidders not to patronise fraudsters who promise off takers selection assistance.

    Read Also: NNPC doubles supply as scarcity bites harder

    Speaking with newsmen shortly after the bid ceremony, Baru said the evaluation would take three to four weeks, adding that 16 per cent of the crude was going to North America.

    Also speaking, Mr Mele Kyari, the Group General Manager, Crude Oil Marketing Division said “there would be no lobbying in lifting programmes’’.

    “It is fully automated. The customer knows where and when they get their lifting and this is unparalleled.’’

    Kyari said part of the procedure was that the companies selected must have a net worth of about 250 million dollars, turnover of 500 million dollars, letter of credit and years of experience.

    The News Agency of Nigeria ( NAN ) reports that 254 companies are bidding for the off take of Nigerian crude grades as against 224 in 2017.

    This round is the third call for bids under the present administration. ( NAN )

  • Electricity: Power sector recovers 1,143MW

    Electricity: Power sector recovers 1,143MW

    The Nigerian Electricity Supply Industry (NESI) on Monday recovered 1,143MW from the restoration of the Escravos-Lagos Pipeline (ELP).

    The line which came down last week as a result of a fire incident has been restored and gas supply to customers on the line including power generating companies resumed.

    The Nigerian National Petroleum Corporation (NNPC) which disclosed this on Monday said the repair work on the pipeline followed the directive by the Group Managing Director, Dr. Maikanti Baru, to carry out an assessment of the damage with a view to getting a prompt solution.

    The statement NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, issued in Abuja, recalled that a section of the ELP at Abakila in Ondo State blew up in flames on January 2, 2018 as a result of a bush fire.

    According to the statement, the incident affected gas supply to customers in Ondo, Ogun and Lagos States with a subsequent shutdown of a number of power plants.

    With the restoration of the ELP and resumption of gas supply, the affected power plants with a combined generating capacity of 1,143MW would resume power generation.

    The power plants include: Egbin Power Plant in Lagos State; Olorunshogo Power Plant, PEL Olorunshogo and Paras Power Plant in Ogun State; and Omotosho Power Plant in Ondo State.

    The 36-inch Escravos to Lagos Pipeline System (ELPS) is a natural gas pipeline built in 1989 to supply gas from Escravos in the Niger Delta to various consumption utilization areas.

    It supplies gas to power plants in the South-west and also feeds the West African Gas Pipeline System.

  • ICYMI: FG may increase petrol price to N180 per litre

    ICYMI: FG may increase petrol price to N180 per litre

     The Federal Government may increase the price of Premium Motor Spirit (PMS), popularly called petrol to a minimum price of N180 and above anytime soon.
    Minister of State for Petroleum Resources, Dr. Ibe Kachikwu who dropped the hint in Abuja on Thursday, said the current price of N145 per litre can no longer be sustained.
    In a presentation he made to a joint committee on Petroleum (Downstream) of the Senate and the House of Representatives, the Minister said the landing cost for petrol stood at N171 per litre.
    According to him, the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) has been bearing the cost of N26 per litre, representing the difference between N171 and the current official price of N145 per litre.
    Insisting that independent marketers would not be able to import the product at the current foreign exchange rate, saying the marketers were able to sell for N145 per litre when the exchange rate was N285 per Dollar. The Naira presently exchanges for N365 per Dollar.
    “We now have to go back and find the solution to this problem in order to ease supply gaps and ensure availability of the product at all times,” the Minister said.
    Kachikwu, however, proffered three alternative solutions to pump price increase: getting the Central Bank of Nigeria (CBN) to introduce a modulated foreign exchange rate specifically for importers of the product; giving the marketers significant tax adjustments to enable them to absorb the high cost; and a plural pricing system whereby the NNPC would continue to sell at N145 through its numerous outlets while the marketers are allowed to fix their own price.
    The Minister identified causes of the last fuel scarcity to include diversion of products, logistic constraints, bottleneck associated with clearance, bad road network, insufficient product reserves, smuggling through land borders, supply gaps and enforcement challenges.
    He stated that the marketers stopped importing fuel since October 2017, as a result of their inability to access foreign exchange from the CBN, leaving only the NNPC to import the product, which has left a wide gap between demand and supply.
    Dr. Kachikwu lamented that the price of petrol rises with the rise in the price of crude oil in the international, stressing that in such instances, Nigeria spends more to import refined products. In effect, any rise in crude oil price increases the amount the country spends on the importation of fuel.
    To address the situation, the Minister canvassed the opening up of production lines, specifically the refineries, which he said, would address supply gaps that usually leads to incessant scarcity.
    “Rising prices in international market affecting domestic prices. What the country needs is to have the refineries working. It’s a shame that after 40 years, Nigeria cannot produce its domestic consumption.
    “It would take 18 months to address problems of scarcity, price stability and other issues relating to the supply of petroleum products. The pipelines should be concessioned to allow private participation.
    “There is huge infrastructure deficit in the system because the NNPC ought to be distributing products through their pipes but most of the pipes are damaged. The has necessitated the use of trucks to distribute the product across the country.
    “Most importantly, fixing the refineries should be the lasting solution. To discuss and address the issues, we have to seek approval from the President,” the Minister said.
    In his own submission at the hearing, the Group Managing Director of the NNPC, Dr. Maikanti Baru said the last scarcity was caused by rumours of price increase in the media that led marketers into hoarding the product in anticipation of higher prices.
    Said he: “So there was a frenzy in the movement of products to the hinterland and diversion of products going to the hinterland in anticipation of the increase in price.
    “The NNPC, or the Petroleum Products Pricing and Regulatory Authority (PPPRA) had no mandate to increase pump price.”
    The GMD said that the strike action embarked upon by PENGASAN in December was partly responsible for the scarcity, saying issues raised by the association for going on strike had nothing to do with the NNPC.
    According to him, the strike triggered panic buying by members of the public leading to scarcity of the product. He added that although PENGASAN called off the strike on December 18, the damage had already been done.
    Baru identified other factors responsible for the last scarcity to be the higher price at which petrol is sold in neighbouring African countries, citing Cameroun where he said petrol sells for N300-N400 per litre.
    Stating that the NNPC has enough product to bridge supply gaps, Baru insisted the corporation has sufficient stock to go round even without importation.
    The GMD alleged that about 4500 distribution trucks failed to return to depots to complete their distribution formalities during the scarcity period, meaning that the trucks were diverted.
    “There was no supply gap because we have Direct Sale Direct Purchase (DSDP) agreement with 10 consortia involved. Three of them rejected their cargoes, which were reallocated to others.”
    The GMD also hinted that the refineries in Kaduna and Port Harcourt were being reactivated and restreamed and that they have been producing three million litres daily.
    Baru also cited disagreements among the various private operators in the sector as part of the problems that threw up the scarcity, adding that the marketers were busy trading allegations of sharp practices.
    He said: “For instance, IPMAN said MOMAN and DAPPMA were charging over N133.28/litre but when we asked them to provide evidence of overcharging, they could not provide any. If proven, NNPC would have withdrawn the licenses of the errant bodies.”
    The Executive Secretary of the Department of Petroleum Resources (DPR), Mordecai Baba Ladan told the committee that at the outset of scarcity, the DPR rolled out its machinery across the country, with the directive from the Minister that defaulters be dealt with.
    “Almost every marketer/filling station across the country are defaulters. And if all defaulting filing stations were to be shut down, there may not be anyone left.
    “They horde, sell above official price and also divert products. But we have stepped up our monitoring process now that the NNPC is the sole importer but the corporation cannot do it alone.
    Virtually all the independent marketers that attended the hearing alleged multiple charges by the Nigerian Port Authority (NPA), NIMASA and some state governments charging 3 kobo per litre wharf landing fee.
    The Executive Secretary of MOMAN, Mr. Obafemi Olawore said the N800 billion owed marketers by the Federal Government has made it difficult for them to obtain credit from the banks to import the product.
    He appealed to the government to give key players major roles in the importation business, saying that shutting down errant filling stations won’t solve the scarcity problem but rather aggravate it.
    Olawore called for total deregulation of the sector to allow more participants from the private sector.
    Curiously, however, the chairman of the joint committee, Senator Kabiru Marafa who had vowed to grill the Minister and the GMD over secret subsidy payment by the government.
    Briefing newsmen at the National Assembly on Friday, Marafa had raised questions on who pays the difference of the N26 in the landing cost of N171 against the pump price of N145.
    The lawmaker said there were indications that a subsidy of N26 was being paid on every litre of petrol sold in the country and wondered who has been paying the subsidy.
    Marafa had said, “If there is subsidy payment, then who approved it and how much has been paid out as the subsidy so far. If you want to provide the subsidy, it should come through the National Assembly but we have not received any request for subsidy payment from the Executive arm.”
    Stating that about N10 trillion has been paid out as the subsidy, Marafa had lamented that stakeholders in the Petroleum industry, particularly the NNPC, have not been transparent in the running of the sector.
    He said these were some of the issues the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Baru and others would be made to explain to Nigerians at the January 4 hearing.
    “We are going back to the same circle where only a few persons benefit from subsidy payment at the expense of the Nigerian people,” Senator Marafa had said.
    Other members of the joint committee are Senators Tayo Alasoadura, Mao Ohuanbunwa, Sabi Abdullahi, Foster Ogola, Yahaya Abdullahi, Rose Oko, Philip Aduda among others.
  • NNPC orders assessment of Escarvo-Lagos gas pipeline fire

    NNPC orders assessment of Escarvo-Lagos gas pipeline fire

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has ordered an immediate assessment of the damage caused by a fire on the Escarvos to Lagos Pipeline (ELP), a natural gas pipeline which supplies gas from Escravos region of the Niger Delta area to Lagos.

    The pipeline also supplies gas to power plants in the South West, in addition to feeding the West Africa Gas Pipeline System.

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

    The incineration of the ELP, which was built in 1989, was suspected to have been caused by a bushfire January 2, 2018 at Abakila, in Ondo State.

    Also Read: We’ve tamed the monster of fuel scarcity – Baru 

    NNPC firemen were drafted to the scene and were able to contain the fire from the leak point of the pipeline incident. However, the fire could not be extinguished due to the high pressure of the line.

    To put off the fire, the line would require being isolated and depressurized, which might lead to a complete shutdown of the pipeline segment for repair works to be carried out.

    The exercise will affect gas supply to customers in Ondo, Ogun and Lagos State with a subsequent shutdown of the following power plants with a combined generating capacity of 1,143MW: Egbin, Lagos, Olorunshogo, PEL Olorunshogo, Ogun, Paras Power Plant, Ogun and Omotosho plant, Ondo State.