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Tag: Maikanti Baru

  • FG petrol subsidy now N26 per liter

    FG petrol subsidy now N26 per liter

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, on Sunday disclosed that the current Landing Cost of petrol is N171 per litre, meaning that at N145 per litre, the Federal Government is currently paying a subsidy of N26 on a litre of the commodity.

    Speaking with reporters in Abuja, he said that the normal consumption of PMS in Nigeria had risen to over 50 million litres per day, due to hoarding and diversion, mainly as a result of cross-border smuggling, due to the PMS price disparity that exists between Nigeria and its neighbours.

    Commenting on the Landing Cost of PMS, Baru said the Cost, Insurance and Freight price of PMS was $620 per metric tonne, adding that at N305 to a dollar, the landing cost translates to N171 per litre.

    Baru said the Federal Government has given approval for preferential and speedy treatment to be given to vessels carrying Premium Motor Spirit (PMS), also called petrol, to end the lingering crisis in Nigeria.

    According to him, the Nigerian Navy, Nigerian Ports Authority, NPA, Customs and the Nigerian Maritime Administration and Safety Agency, NIMASA are currently expediting the clearance of fuel vessels and anchorage services to facilitate speedy product transfers to various depots including during weekends and public holidays.

    The NNPC helmsman noted that President Muhammadu Buhari is deeply concerned about the fuel crisis and had ordered al stakeholders involved, including security agencies to ensure a speedy resolution of the situation.

    In addition, he disclosed that the NNPC had commenced a 24-hour loading and sales operations at all depots and its mega stations across the country.

    “Major marketers were also advised to carry out 24-hour operations, most of whom have been complying. This has increased load-out from the Depots significantly and continuous sales at the filling stations nationwide,” Baru noted.

    He affirmed that in addition to the regular supply circle, the NNPC had programmed the delivery of additional 300 million liters in December 20l7 and January 2018 to beef up national reserves to 45 million liters per day, well above the normal consumption requirement of between 27 and 28 million liters per day.

    He also declared that over the last two weeks, the national truck-out capacity has been beefed up to an average of l,500 trucks, about 52 million litres per day, which he explained, was higher than the normal consumption of 850 trucks per day.

    Furthermore, the NNPC boss stated that currently, 13 vessels, with an average capacity of 650 million litres, are discharging the commodity at different ports across the country, while noting that three vessels with the commodity are coming in before the end of the week, bringing the combined quantity of the product in depots to 814 million litres of petrol till the end of the month.

    He added that 14 shuttle tankers, with a combined capacity of 187 million litres of the commodity would also be discharging the product at various destinations across the country in the next three days.

    In addition to the importation of the product, Baru noted that the Port Harcourt and Kaduna Refineries are currently contributing about one million litres per day and 2.8 million litres per day of PMS to the country’s fuel supply respectively, adding that since the fuel crisis began, both refineries had contributed a total of about 61 million litres.

    Also, to ensure the speedy resolution of the crisis, Baru disclosed that the NNPC had activated the ‘Fuel War Room’, comprising the NNPC, Department of Petroleum Resources, DPR, Petroleum Products Pricing Regulatory Agency, PPPRA and the Petroleum Equalisation Fund, PEF.

    He said the team is tasked with the responsibility of coordinating all intervention activities for supply and distribution of PMS nationwide, adding that with the support of security agencies, the team, with the support of Security Agencies, is already working round the clock to ensure a speedy resolution of the current fuel situation.

    He explained that with all these measures, and if full compliance is achieved, the crisis would end within the next two days, adding that efforts have been put in place to ensure the crisis did not go beyond this week.

    Baru also accused black marketers of sabotaging efforts to end the fuel crisis, stating that most of the peddlers, permanently put their vehicles in queues at petrol stations, and after purchasing, discharge the products into containers and return to join the queues.

  • NNPC to establish 4,600MW plants in FCT, two others

    NNPC to establish 4,600MW plants in FCT, two others

    The Nigerian National Petroleum Corporation ( NNPC ) says it will establish 4,600 power plants in Abuja, Kaduna and Kano.

    A statement in Abuja by the NNPC spokesman, Mr Ndu Ughamadu, said this would be done through the recently-approved contract for the construction of Ajaokuta-Abuja-Kaduna-Kano Gas Pipeline project, dubbed AKK Pipeline.

    According to the statement, the AKK pipeline has started yielding early benefits with the commitment by NNPC to build power-generating plants with combined capacity of 4550 megawatts in Abuja, Kaduna and Kano States.

    Ughamadu quoted the NNPC Group Managing Director, Dr Maikanti Baru, as saying that the Corporation in partnership with private investors would build power-generating plants to support Federal Government’s effort to providing stable electricity in the country.

    “As part of the drive to establish power plants to augment the power supply to the nation, the Federal Executive Council has recently approved the AKK Gas Pipeline project to be financed through Public Private Partnership (PPP).

    Read also: NNPC release 300 trucks of petrol daily to Lagos, 170 to FCT

    “The project comes with other auxiliary ones which include, 1,350 megawatts, 900 megawatts and 2,350 megawatts of power generation plants in Abuja, Kaduna and Kano respectively,” the statement quotes Baru.

    It said the NNPC in partnership with private investors would also build fertilizer plants in some parts of the country, one of which would be located at Izzon, Niger State.

    The statement said in line with the presidential mandate on oil exploration in all the frontier basins, the NNPC was well-focused on the exploration in the Bida Basin.

    “We have contracted the geological mapping of the Bida Basin to Ibrahim Babangida University, Lapai and the job would be completed in three months,” it stated.

    Ughamadu said the corporation would go into more detailed seismic data acquisition in the Bida Basin by August 2018, to be followed by an Environmental Impact Assessment exercise.

    He said as part of the corporation’s effort to decongest the highways, the NNPC would encourage private investors to build tanker parking facilities around Minna Depot, Suleja Depot, Tegina, Mokwa, amongst others and charge the users of the facility appropriately.

    The statement said talks were ongoing with the Federal Ministry of Works, Power and Housing to re-introduce weight bridges on the highways to checkmate the issue of excessive loading by tankers above the recommended 46, 000ton gross weight.

    “The NNPC on its part has already directed all its depots nationwide to stop loading tankers with loading capacity above 40, 000litres,” he said.

    NAN

  • Hungary interested in Nigerian crude, LNG

    Hungary interested in Nigerian crude, LNG

    At a time that international crude oil market is getting more competitive, the Hungarian Government has indicated interest to purchase crude oil and Liquefied Natural Gas (LNG) from Nigeria.

    The Hungarian Ambassador to Nigeria, Professor Gabor Ternak, who disclosed this during a courtesy call on the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru,  in Abuja, said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in Hungary.

    “Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria,” Ambassador Ternak stated.

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

    He said the Nigerian crude oil would be of great help to Hungarian Refineries involved in large scale commercial refining.

    The Hungarian envoy stated that Nigeria could also leverage on the bi-lateral relationship with his country by engaging the services of Hungarian firms that specialize in repairs, maintenance and building of refineries as well as medical services.

    He said that Hungarian universities with many years of oil and gas engineering expertise, could assist Nigeria in the areas of capacity building of oil workers.

    In his remarks, the NNPC GMD, Dr. Maikanti Baru, stated that the Corporation had commenced tendering process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilize the opportunity by participating in the exercise to maximize value from direct purchase, rather than going through a third party.

    “If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers,” The GMD averred.

    He explained that Hungary could purchase LNG through “spot cargo,” an arrangement in which excess production is given to registered off-takers with the Nigerian Liquified Natuaral Gas Limited (LNNG).

    “Normally, gas business is a long-term business and NLNG is not different, we already have existing 20-year contract that will expire by 2022. Nevertheless, we have what is called “spot cargoes”, when there is excess production, and the current contractors have gotten there share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” Dr. Baru averred.

    He said Hungarian companies could submit their profile to NLNG for possible engagement as off-takers of spot-cargoes after meeting the standard requirements.

    The NNPC GMD stated that works on refurbishment of the Corporation’s refineries through original builders of the plants had commenced and that the Hungarian firms with requisite expertise could be considered through subcontracting by the main contractors.

    He said that NNPC through its subsidiary institution, the Nigerian Leadership Academy (NLA), would look into possible areas of collaboration with the Hungarian Universities for in-country capacity building of oil and gas workers.

    As part of the Corporation’s diversification plans, Dr. Baru said the NNPC, which has the largest medical facilities in the country from a single entity, was trying to put its 52 clinics across the country into commercial use, starting with its clinic in Abuja.

    He said NNPC would collaborate with Hungarian and other reputable companies that have proven capabilities to set-up world-class medical facilities for heart, spinal and brain surgeries as well as physiotherapy and specialized laboratories services that can compete globally and save Nigerians the burden of traveling abroad for treatment.

  • NNPC to select core investor for Benue bio-fuel project – Baru

    NNPC to select core investor for Benue bio-fuel project – Baru

    The Nigerian National Petroleum Corporation ( NNPC ) says it has almost concluded discussion on the choice of a core investor for the proposed bio-fuel plant in Benue.

    The Group Managing Director of the corporation, Dr Maikanti Baru, said this in a statement issued by Mr Ndu Ughamadu, NNPC Group General Manager Public Affairs Division in Abuja on Sunday.

    Baru, after a follow-up meeting with a Benue State delegation led by Dep. Gov. Benson Abounu, said arrangements had been finalised to name the prospective investor in the weeks ahead.

    Represented at the meeting by the Chief Operating Officer, Ventures Directorate, Dr Babatunde Adeniran, Baru explained that the core investor would provide 70 per cent of the required funding for the project.

    According to Baru, the Benue State government and the NNPC will take up the balance equity contribution.

    He said upon completion, the plant was projected to generate about one million direct and indirect jobs for the populace, noting that the project would help link the energy sector with the agricultural sector through the commercial production of bio-fuels from selected energy crops.

    The NNPC boss listed other components of the project to include a sugar cane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually.

    According to him, it also includes a fuel-ethanol processing plant with production capacity of 84 million litres annually.

    “The bio-fuels projects will also help to establish the bio-gas cogeneration power plant which will generate 64 MW; a carbon dioxide recovery and bottling plant that will produce 2, 000 tonnes annually as well as an animal feed plant that will produce 63, 000 tons annually.’’

    The statement also quoted Abonu, Benue deputy governor as saying “Benue State is offering the 20, 000 hectares of irrigable land space along the bank of the river Benue as its equity contribution to the project’’.

    “In addition to a yet to be specified tranche of funds to shore up its stake to the level of directorship in the yet to be constituted board.’’

    Abonu also commended the NNPC on the strides so far recorded, and assured that the state government had since taken concrete measures to sensitise the host communities on the bio-fuel project.

    According to the deputy governor, the state government has also sensitised host communities to ongoing effort by the corporation for fresh hydrocarbon found in the Benue trough.

    NAN

  • PENGASSAN backs NNPC on exploration in inland Basins

    PENGASSAN backs NNPC on exploration in inland Basins

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has commended the Nigerian National Petroleum Corporation (NNPC) on the exploratory activities it has been spearheading in inland basins.

    PENGASSAN National President, Comrade Francis Johnson, who led the Central Working Committee (CWC) of the union on a courtesy visit to the NNPC Group Managing Director, Dr Maikanti Baru in Abuja, said the yeoman job being undertaken by the NNPC with regards to the frontier basins would benefit the nation ultimately.

    Johnson, according to the NNPC statement that made this disclosure, said the union’s fervent prayer was for a breakthrough to be achieved in the Corporation’s exploratory efforts in the basins.

    The Management of NNPC under the leadership of Dr. Baru, has in recent time, embarked on aggressive exploratory operations in the nation’s frontier basins of the Chad Basin and Benue Trough in line with the aspiration of the Administration of President Muhammadu Buhari to increase the reserves base of the country.

    Dr. Baru, since assumption of office last year, has drummed up support for the exploration activities with critical stakeholders in Bauchi, Borno, Sokoto and Nassarawa State.

    In Nassarawa State recently, he disclosed that NNPC’s Frontier Exploration Services (FES), a services company of the Corporation, had mobilized the Integrated Data Services Ltd (IDSL), (an Upstream arm of the NNPC) to acquire seismic data in the Benue Trough commencing from the Keana area.

    At the visit to the GMD, the PENGASSAN National President also commended the NNPC GMD for collaborating with other government agencies and critical stakeholders to bring about efficiency in the Petroleum Industry, adding that his efforts has also led to the improved products supply situation being enjoyed in the country.

    Comrade Johnson said the NNPC Management was capable of returning the refineries to profitability while expressing the union’s confidence in the Corporation’s effort in that regard.

    “PENGASSAN will support any effective, efficient and sustainable model that can make the refineries viable,’’ Comrade Johnson said.

    He also called on the GMD to intensify the ongoing rehabilitation of the downstream facilities, especially the depots, pipelines, tank farms and jetties to further ensure seamless supply of products across the country.

    On the Petroleum Industry Bill, the PENGASSAN President emphasized the need for its speedy passage, adding that the unions were ready to collaborate with the National Assembly to resolve knotty issues associated with it.

    Responding, Dr. Baru disclosed that President Muhammadu Buhari had mandated him and the NNPC Management to bring back the refineries to their glorious days and thanked the unions for their belief in his capability to deliver on the president’s mandate.

    He said funding had been a major challenge in the rehabilitation of the refineries but was however optimistic that the various options being explored would yield positive results.

    The GMD expressed appreciation to the unions for their support in his effort to move the Petroleum Industry forward, while lauding their pragmatic approach to handling issues, saying this has helped to bring about industrial harmony.

    On his part, Chief Operating Officer (COO), Corporate Services, Alhaji Isah Inuwa, urged the unions to continue to work on the part of amity, while assuring them of NNPC management’s readiness to continue to collaborate with them in the overall interest of the Industry and the nation.

  • NNPC, Chevron sign $1.7bn deal to increase crude, gas production

    NNPC, Chevron sign $1.7bn deal to increase crude, gas production

    Nigerian National Petroleum Corporation ( NNPC ) and Chevron Nigeria Limited (CNL) have executed the final phase of an Alternative Financing Agreement to increase crude production by about 39,000 barrels per day.

    The agreement, signed in London, is also expected to achieve an incremental peak production of about 283mmscfd of gas, NNPC Group Managing Director, Dr Maikanti Baru, made the disclosure in a statement on Sunday.

    The statement was issued by Mr Ndu Ughamadu, Group General Manager, Public Affairs Division  of NNPC.

    Baru said the increment to be achieved by the agreement would spread “over the remaining life of the asset ( 2045 ).”

    According to him, the project, which is about 92 per cent completed, will cost 1.7 billion dollars, with 780 million dollars and is expected to be funded by third-party.

    He said it would produce natural gas liquids and condensate extracted from the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta.

    Baru described the deal as a step in the right direction which would grow the nation’s daily production and support the Federal Government’s strategic domestic gas-to-power aspirations.

    He said the project would include the completion of the Sonam non-associated gas (NAG) well platform and Sonam living quarters platform; drilling of seven wells in the Sonam field and the Okan 30E NAG well.

    It will also include the completion of the 20” x 32Km Sonam pipeline and Okan pig receiver platform and development of the associated facilities, Baru added.

    “As we speak now, the facilities are 100 per cent completed while wells are 40 per cent executed,” he  said.

    In carrying out the project, the NNPC/CNL Joint Venture (JV) adopted a two-stage financing approach: Stage 1 which provided 400 million dollars sourced from Nigerian Commercial Banks achieved financial close on Aug. 1, 2017.

    Stage 2, (signed on Nov. 17), is set to provide 380 million dollars from International Commercial Banks (ICBs).

    Out of the 780 million dollars total financing for both stages, Chevron’s co-lending totals 312 million dollars while NNPC’s portion of the total facility stands at is 468 million dollars.

    Speaking further on the Alternative Financing approach, Baru explained that it was aimed at plugging NNPC’s shortfall in funding JV cash call obligations including settlement of pre-2016 cash call arrears.

    “It will also enable full funding of NNPC’s JV obligations to restore investors’ confidence and stimulate further Foreign Direct Investments (FDIs) as we are beginning to witness,” he noted.

    The Managing Director of CNL, Mr Jeff Ewing, said his company supported the Federal Government’s aspirations to sustain oil and gas production.

    “We know the important role gas supply to the domestic market plays in growing power generation.

    “We also understand government’s need to seek alternative sources to fund profitable and bankable JV Projects,” Ewing added.

    In August, two sets of alternative financing agreements on JV projects were executed between the NNPC/CNL JV (project Falcon) and the NNPC/SPDC JV (Project Santolina).

    Both are aimed at boosting reserves and production in line with the Federal Government’s aspirations for the Oil and Gas Industry.

    NAN

  • Buhari, Baru lauded over oil exploration in Chad Basin

    Buhari, Baru lauded over oil exploration in Chad Basin

    President Muhammadu Buhari and Group Managing Director, Nigeria National Petroleum Corporation, Maikanti Baru, Thursday received commendation for oil exploration drive in the Chad Basin.

    A group, PMB’s Oil and Gas Progress gave the commendation after its annual meeting in Abuja.

    A statement by the coordinator of the group, Mohammed Abdullahi, said President Buhari and NNPC GMD has won the heart of majority of Nigerians for their political will to initiate and encourage oil exploration in the northern part of the country.

    It accused past governments in the country of paying lip service to oil exploration in the north.

    It expressed hope that with the commitment of the President and the zeal of the NNPC GMD, some states in the north will soon assume oil producing status.

    The group noted that the commitment of President Buhari administration toward the discovery of oil in the northern part of the country would go a long way to douse tension in the country and ensure economic stability in the north.

    It recalled that the GMD had visited some states in the north, including Nasarawa, Sokoto, Bauchi, Yobe, Katsina, among others, with a view to commencing oil exploration in the areas for the purpose of generating more revenue for the country.

    It also recalled that the GMD NNPC had declared his readiness to grow the country’s crude oil reserves and increasing daily national production with a view to boosting the nation’s revenue generation.

    The group noted that the GMD had expressed this desire during the flag-off ceremonies of the NNPC/First E&P Oil Mining Leases (OMLs) 83/85 partnership for marine seismic data acquisition in Lagos.

    It said that Baru while performing the flag-off ceremony aboard Marine Vessel BGP Prospector offshore Lagos, declared that the project would boost NNPC’s drive towards enhancing the nation’s abundant hydrocarbon deposits.

    The development, Baru added, also reinforced the Federal Government’s commitment to further harness Nigeria’s numerous resources to enhance income streams and ultimately boost the nation’s economic prosperity.

     “Without doubt, this development resonates perfectly with NNPC’s commitment to growing the nation’s reserves and increase production, as enshrined in our corporate vision of 12 Business Focus Areas (12 BUFA),” Baru was quoted to have said. 

  • IPMAN lauds FG’s commencement of oil exploration in five states

    IPMAN lauds FG’s commencement of oil exploration in five states

    The Independent Petroleum Marketers Association of Nigeria ( IPMAN ) in Kano State has commended the Federal Government for starting oil exploration in Sokoto, Benue, Borno, Bauchi and Nasarawa states.

    The IPMAN chairman in the state, Alhaji Bashir Dan-Malam, made the commendation while speaking to newsmen shortly after the Annual General Meeting (AGM) of the association in Kano on Wednesday.

    “The oil exploration which the Federal Government had started in five states mentioned above will ensure their economic growth and development and that of the country at large,” he said.

    The IPMAN chairman, who called for continued support to the NNPC, also applauded the Federal Government for sustaining regularity in petrol supply across the country.

    He said with the present administration’s commitment toward addressing challenges facing the sector and exemplary leadership of the NNPC Group Managing Director, Dr Maikanti Baru, fuel scarcity had now become history in the country.

    “Before now, people used to accuse marketers of fuel crisis in the country but scarcity of petroleum products has become a thing of the past due to the Federal Government’s commitment toward addressing the problems facing the sector,” he said.

    He said the present administration under President Muhammadu Buhari deserved to be commended for tackling the various challenges facing the oil and gas sector and ensuring steady supply of petrol in the country.

    He also commended the NNPC for planning to make available petroleum products, especially, petrol in  all the 21 depots ahead of the forthcoming Christmas and New Year festivals.

    “This singular action is worthy of commendation in view of what we used to experience in the past at the end of every year in the country.

    Dan-Malam said with the current positive development in the sector, the country would soon commence exporting petrol to other countries.

    NAN reports that the meeting was attended by members of the association from Katsina, Jigawa, Bauchi and Yobe states that made up IPMAN Kano unit.

    NAN

  • NNPC partners WAEC, others over science development

    NNPC partners WAEC, others over science development

    In its bid to grow the country’s educational sector, especial in terms of science and technology, the Nigerian National Petroleum Corporation (NNPC) on Tuesday, said it has entered a partnership with the West African Examination Council (WAEC), the Junior Engineering Technical Society, (JETS), and the Science Teachers Association of Nigeria (STAN).

    The corporation’s Group Managing Director (GMD), Maikanti Baru disclosed this at the grand finale of the 2017 National Quiz Competition.

    According to him, the NNPC prizes education dearly and was working with its partners to ensure that the best standard of its competition is maintained.

    He stated that it was in realisation of the importance of science and technology that the NNPC decided to promote Science, Technology, Engineering and Mathematics, STEM, education as a key element of its Corporate Social Responsibility, CSR, strategy, adding that there was the driving force behind its establishment of the quiz competition.

    He said: “In this respect, our arc tilts towards Science, Technology, Engineering and Mathematics, STEM, branches of knowledge, given the great roles they play in nation-building.

    “For a reason, STEM education creates critical thinkers, increases science literacy, and enables the next generation of innovators. Innovation is the pillars of any progressive economy.”

    Baru said the 2017 edition is the 16th in the competition’s history, stating that this edition had been expanded from the previous editions, while the prizes has been improved upon also.

    He noted that the 2017 edition took place in all the 774 local government areas of the country and also featured in states in the North-East, that were affected by insurgency.

    His words: “Beginning from this year, the corporation will be providing a one-off educational grant of N100,000 each for all state winners of the competition. This means that everybody on this podium today, regardless of his or her final position is assured of N100,000 from the NNPC to help defray the costs of their tertiary education.

    “For the overall winner of the competition, a scholarship award of N300,000 will be granted per session, while the second and third place winners will receive a scholarship award of N250,000 and N200,000 respectively per session for the duration of their tertiary education.”

    Baru added that the prizes are redeemable by the winners upon presentation of evidence of their admission into tertiary institutions whenever it may be.

    Also speaking, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, commended the NNPC for its contributions to the growth of the Nigerian educational sector, stating also that the competition is unifying and bonding, in the fact that it was conducted across all the states and local governments in the country.

    Kachikwu assured the finalists that the competition present a veritable opportunity for them to further brighten their future.

    He called on the governors of the various finalists to make contact and mentor them as this would help them in their future endeavours.

    Speaking in the same vein, Speaker of the House of Representatives, Mr. Yakubu Dogara, also commended the NNPC for taking educational development as a crucial part of its CSR programme and also for its sustenance of the programme for 17 years.

    He stated that the NNPC’s contribution to education, especially for STEM becomes critical going by the fact that the country still has a lot to do in deepening science and technology.

    He expressed the support of the National Assembly in the progress of the contestants and students in general.

  • NNPC to create 1million jobs, establish bio-fuel plant in Ondo

    NNPC to create 1million jobs, establish bio-fuel plant in Ondo

    The Nigerian National Petroleum Corporation ( NNPC ) has signed a Memorandum of Understanding (MoU) with the Ondo State Government to establish a 65,000 million litres bio-fuel plant in Okeluse, Ondo State.

    The NNPC Group Managing Director (GMD), Dr Maikanti Baru, said this when he received Ondo State Governor, Oluwarotimi Akeredolu on a courtesy visit.

    This is contained in a statement issued in Abuja on Tuesday by Mr Ndu Ughamadu, the corporation’s Group General Manager, Public Affairs Division.

    Baru explained that the plant and other projects such cassava feed stock production would create at least one million direct and indirect jobs.

    According to him, the project would be partly funded by some investors bringing in Foreign Direct Investment into the country.

    Baru reeled out other benefits of the project to include reduction of fuel import and greenhouse gas emission, and boosting the production of animal feeds from by-products of the plant.

    The GMD also allayed fears of any possible negative impact of the plant on the supply of cassava-based foods for human consumption.

    He explained that the cassava to be used for the bio-fuel project was a special breed that would not interfere with the activities of farmers cultivating other breeds of cassava or crops.

    “We have already discussed with you and you have agreed to make 15,000 hectares of land available towards the cultivation of this cassava.

    “It will, of course, in the process invite people who are used to farming cassava as well as new entrepreneurs who want to go into that business to participate in the cultivation of the cassava that we are going to use for the production of the fuel ethanol.

    “We expect that this plant, when built, will be producing at least 65 million litres per annum of ethanol that could be blended into our Premium Motor Spirit (PMS) and will be used in Nigeria and neighbouring countries when exported,” Baru said.

    He disclosed that the bio-fuel project would be fitted with a 40 megawatts electricity plant that would also supply power to the host communities.

    The GMD said NNPC intended to commercialize the greenhouse gas emission reduction capability of the project to win carbon credit for the nation from the international community.

    He added that it would also make money from such by-product as industrial starch and others which would be converted to animal feeds to boost food production in the country.

    “The benefits of this project to Nigeria and specifically to Ondo State are immense and NNPC is very eager to see it implemented.

    “We are working with the investors who will invest because there are several dimensions to the project,” he said.

    Earlier, Gov. Akeredolu, assured that the state had enough farmers as well as cassava to sustain the bio-fuel plant, stressing that his visit was to show his commitment to the project.

    Present at the signing of the MoU were officials of Nigeria Export-Import Bank ( NEXIM ), New Partnership for African Development and National Oil Spill Detection and Response Agency.

    NAN