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Tag: Mele Kyari

  • Kyari: NNPCL recorded 9,000pipeline infractions in one year

    Kyari: NNPCL recorded 9,000pipeline infractions in one year

    The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said the firm recorded 9,000 infractions on oil pipelines in one year.

    Kyari stated this yesterday when the House of Representatives Special Committee on Oil Theft visited the NNPCL headquarters in Abuja on oversight functions.

    According to him, from 2022 till date, the NNPCL had deactivated 6,465 illegal refineries. It has also removed 4,876 of the 5,570 illegal connections to pipelines.

    He added: “Some of the infractions we see are unbelievable. We are not able to deal with it. When you remove one connection, the next day in the same location, someone will replace it.

    “It is obvious that crude oil theft is almost an end-to-end issue in Nigeria; it is very obvious that everyone is involved. In most of these locations, they are less than a 100 meters from the settlement. Some are even less than a 100 meters from the local government headquarters.”

    Kyari said the key issue was insecurity, and that NNPCL moved to curtail pipeline vandalism by incorporating all security agencies into a single platform, including private security.

    Read Also: Reps query NNPCL boss over $278.185m

    According to him, no country surrenders the protection of such critical assets, which are the source of income, to non-state actors.

    He said: “It is obvious that despite all the integrity issues with our pipeline and our facilities, we have capacity beyond two million barrels per day without doing anything. But, today, we are struggling to meet the budget estimate of 1.6 million barrels per day. This by no means is related to crude oil theft.

    “No one will produce oil, knowing fully well that he cannot dispose of it, and that’s why no one is putting money into it. In 2022, it became so obvious that if something dramatic was not done, we will run into trouble. On a specific date, our production came down to as low as 1.1 million barrels per day.”

    Chairman of the Special Committee, Alhassan Ado-Doguwa rued the infractions and damage to oil and gas pipelines in the country. He lamented that these infractions do not stop with the pipelines.

    “We are compiling the facts and figures. Instances where approvals are hastily granted to vessels involved in crude theft just to cover official complicity are reported.

    “Incidents of undeclared liftings are noted, and all these and several other infractions, particularly in our offshore marine environment, contribute to the huge volume of crude oil theft being reported,” he said.

  • We recorded 9000 infractions on pipelines in one year, says NNPCL boss Kyari

    We recorded 9000 infractions on pipelines in one year, says NNPCL boss Kyari

    Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said they recorded 9000 infractions on oil pipelines in one year.

    Kyari said this when the House of Representatives Special Committee on Oil Theft went on an oversight function at the headquarters of NNPCL headquarters in Abuja on Wednesday.

    According to him, from 2022 to date, they had deactivated 6,465 illegal refineries.

    He said they have also removed 4,876 illegal connections to pipelines out of 5,570 that were discovered.

    “Some of the scale of the infraction that we see is unbelievable. We are not able to deal with it. When you remove one connection, the next day in the same location, someone will replace it.

    “It is obvious that crude oil theft is almost an end-to-end issue in Nigeria; it is very obvious that everyone is involved.

    “In most of these locations, they are less than a hundred meters from the settlement. Some are even less than a hundred meters from the local government headquarters,” he said.

    Read Also: Ningi’s suspension: What I would have done if I was presiding officer – Abaribe

    He said the key issue has been security and that the NNPCL moved to curtail the menace of pipeline vandals by incorporating all security agencies into a single platform, including private security.

    According to him, no country surrenders the protection of such critical assets, which are the source of income, to non-state actors.

    He said: “It is very obvious that despite all the integrity issues with our pipeline and our facilities, we have capacity beyond two million barrels per day without doing anything.

    “But today, we are struggling to meet the budget estimate of 1.6 million barrels per day. This by no means is related to crude oil theft. The core issue that is affecting the other core issue is crude theft.

    “No one will produce oil, knowing fully well that he cannot dispose of it, and that’s why no one is putting money into it.

    “In 2022, it became so obvious that if something dramatic is not done, we are going to run into trouble. On a specific date, our production came down to as low as 1.1 million barrels per day,” he said.

    The Chairman of the Special Committee, Hon Alhassan Ado-Doguwa, said it was established and common knowledge that operating oil and gas pipelines in Nigeria constituted a herculean challenge.

    He said it was saddening that these infractions do not stop with the pipelines.

    He said the daily breaches are also recorded at the oil well heads, flow stations, loading, and export terminals, among others.

    He said the opacity and non-transparency of regulatory activities at the crude oil export terminals were alarming.

    He said: “We are compiling the facts and figures. Instances, where approvals are hastily granted to vessels involved in crude theft just to cover official complicity, are reported.

    “Incidences of undeclared liftings are noted, and all these and several other infractions, particularly in our offshore marine environment, contribute to the huge volume of crude oil theft being reported.”

  • 5000 kilometres of oil pipeline vandalised, says Kyari

    5000 kilometres of oil pipeline vandalised, says Kyari

    • Refineries ready soon, NNPCL CEO assures

    For Chief Executive Officer (CEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, the vandalism of over 5,000 kilometers of oil pipelines is a national calamity.

     He said the challenge triggered by pipeline vandals across the land has been plaguing the sector for decades, lamenting that the company had not been able to pump oil through pipeline from Warri to Benin in the last 22 years.

     Kyari, who made the submissions during an interactive session with the Senate Committee on Petroleum (Downstream), in Abuja, also assured that the nation’s four refineries would be made functional very soon.

     The NNPCL boss did not however give a date. But the Federal Government had earlier assured that the reactivation of two of the refineries will be completed next month.

     Kyari said:  “Over 5,000 kilometers of oil pipelines in the country are not working. As a result of pipeline vandalism, 10 million litres of oil was lost from volume pumped from Aba to Enugu at a time.

     “The company has been unable to pump oil from Warri to Benin within the last 22 years and cannot connect to Ore.

    “There is no amount of security measures that had not been taken to curb the crime without success, which to us in NNPCL, is substantially a national calamity.”

    Read Also: ‘Tantita has proven competence in oil pipelines security’

     He, however, said that the company has launched massive replacement of vandalised, old and obsolete pipelines.

     Kyari told his audience how the deregulation of the oil sector and fuel subsidy turned around the fortune of NNPCL as a profitable company.

     According to him, the company lost N802 billion before deregulation in 2018, but made a profit in excess of N687 billion after deregulation in 2021.

     He added that while 67 million litres of oil was consumed per day during the era of subsidy regime, average of 55 million litres are being consumed on daily basis, just as the problem of product smuggling across the borders, has become a thing of the past.

     The Chairman of the Committee, Senator Ifeanyi Ubah (APC – Anambra South) and all the members of the panel, responded to the submissions made by the NNPCL’s group CEO that there is need for a retreat to assess the challenges and proved relevant solutions to them.

     However, Senator Seriake Dickson (PDP – Bayelsa West), told the NNPCL boss to look critically into surveillance security contract the company is operating as regards non-inclusion of some oil producing areas.

    “Some local government areas in Bayelsa State, like Sagbama where I come from, are not covered by the contract with attendant consequences,” Dickson said.

  • Of opportunists and vitriolic attacks on Mele Kyari

    Of opportunists and vitriolic attacks on Mele Kyari

    • By, Kunle Fajimi

    The drawback of achievements and accomplishments in public life is that it often sparks jealousy and unrestrained animosity towards the successful person.

    In these circumstances, people frequently go to the extremes to physically hurt the target of their anger, as demonstrated by Cassius’ visceral hatred of Julius Caesar in William Shakespeare’s classic.

    As an alternative, they can file a false complaint with a higher authority and, as is the case in Nigeria, attempt to remove the person from office. One important point to note about the whole thing is that most often this hate stems from the loss of certain privileges enjoyed by the detractors as a result of the coming into office of the individual whose removal from office is being sought.

    This has been the story of Malam Mele Kyari, Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL). In 2019, Kyari took over as the Group Managing Director (GMD) of NNPC after Dr. Maikanti Baru left. After the Petroleum Industry Act (PIA) 2021 came into effect, the NNPC transformed into a commercial corporation two years later, and he was appointed Group Chief Executive Officer (GCEO) of the organization.

    Those who have closely followed Kyari’s progress since his appointment as head of the NNPC four years ago have observed that the organization has gradually changed from being what many in and outside of Nigeria have variously described as an organization whose operations were so secretive that they made the Neapolitan mafia appear like boy scouts, to an organization that is transparent and adheres to international best practices. There is evidence at hand to support this claim.

    It is therefore unexpected that a few anonymous and well-paid hack writers have continued spreading lies in spite of the overwhelming evidence of the organization’s deep-rooted transparency under Kyari’s direction as well as the numerous commercial successes (I will address this in a moment) that the NNPCL has documented.

    A few days ago, one of them—posing as Engineer Olabode Lawson and claiming to be a “retired senior oil executive”—accused Kyari of being the cause of nearly all of the issues that the Nigerian oil industry is currently facing.

    He blamed Kyari for the Naira’s sale at the parallel market for N1020 to the dollar, adding insult to his absurd accusation!

    As a player in the Nigerian oil and gas industry, it is my responsibility to correct the record so that Nigerians are not misled. I do not intend to repeat his accusations against Kyari here or to lend credence to what is clearly patented falsehood sold by a hired hand. So I will concentrate on a single, significant accusation made against Kyari by Olabode, “a retired senior oil executive,” who, even two years after the NNPCL’s demise, continues to refer to it as such!

    Olabode claims that since Kyari was appointed, Nigeria has had no operational refinery and its daily oil production has dropped from 2.4 million barrels to 1.4 million barrels. It is obvious that our “retired senior oil executive” has an endless supply of mischievous ideas. The matter of turnaround maintenance for our refineries is a policy decision made at the highest level of government, with the Minister of Petroleum Resources spearheading the process on behalf of the Federal Government, as every Nigerian who is familiar with the workings of the country’s oil and gas sector knows.

    It is obviously the height of foolishness to blame Kyari for a problem that the nation’s leaderships, going all the way back to the late General Sani Abacha’s administration, have been unable to solve.

    If Olabode were to be honest with himself about the fall in our oil production quota, he would acknowledge that, starting about 2013, the problem of oil theft from Nigeria and the actions of cartels operating in the creeks have conspired to hinder efforts to meet our allotted oil production quota. In order to supplement the efforts of Nigerian security services, the governments of Goodluck Jonathan and Muhammadu Buhari, in particular, employed a private security company since they were so focused on ending the threat.

    Speaking during a panel session at the Practical Nigerian Content Forum (PNCF) late 2022 in Uyo, Akwa Ibom State, the Chief Investment Officer, NNPCL Upstream Investments Management Services (NUIMS), Mr. Bala Wunti, revealed that Nigeria was speedily recovering from months of under-production with oil production at 1.59 million barrels per day as at then. Wunti stated that cooperation between NNPC, it’s partners, the private security contractor and other industry stakeholders allowed achievement of the 1.59bpd production, revealing that sizeable portion of lost production volume has been restored.

    Contrary to Olabode’s claim, it is documented that Kyari did more than any other NNPC/NNPCL boss in recent memory to assist the government in overcoming the obstacle. It is commonly known that “The Crude Theft Monitoring Application” was created by the NNPCL under Kyari’s direction. The portal offers application choices for validating crude a sales paperwork and for reporting events with fast follow-up and answers.

    In order to contain the threat, Kyari brought top government officials to the Niger Delta creeks prior to the application’s release. These officials included Chief Timipre Sylva, the previous Minister of Petroleum Resources, Gen. Lucky Irabor, the then Chief of Defence Staff of the Nigerian military, and Mr. Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Regulatory Commission (NUPRC).

    This move proved to be successful, as shortly after Kyari declared that criminals had been illegally connecting the Forcados Terminal to the sea for four kilometres, allowing them to syphon off Nigeria’s oil for nine years.

    These initiatives were successful, as evidenced by Fourth Quarter figures from the NNPCL, which showed that in addition to Nigeria’s oil production increasing to 1.6 million barrels from the previous level of 1.2 million, the nation had once again taken the lead as Africa’s largest producer, surpassing both Algeria (1.021 mb/d) and Angola (1.088 mb/d).

    Since these numbers and Kyari’s other accomplishments as NNPC (L) helmsman are publicly available, they may be readily verified. It is interesting to observe that the oil giant has actually done better under his leadership, despite the fact that many of his traducers accuse him of numerous transgressions. For many years, the NNPC, for example, was losing money. The corporation announced a profit for the first time in 2022, reporting N674.1 billion in 2021—a huge 134.8 percent rise over the N287 billion reported in 2020.

    Resolving seemingly unwinnable conflicts with its economic partners, particularly the International Oil Companies (IOCs), is another significant accomplishment of Kyari’s management.

    The Kyari-led NNPCL signed various production sharing contracts (PSCs) and other agreements, such as Dispute Settlement Agreements and Escrow Agreements, in an effort to increase the nation’s crude production and attract investments in the Deepwater sector. These agreements would yield approximately 10 billion barrels of crude and over $500 billion in revenue.

    Read Also: Who wants Mele Kyari dead?

    Kyari has also skillfully handled the adoption of the Alternative Funding Approach (AFA), which has replaced the previous cash call payment system, to settle Nigeria’s Joint Cash Call arrears to the IOCs to the tune of $5 billion. With an eye towards beyond Nigeria’s borders, the NNPCL has inked Memoranda of Understanding (MoUs) with nations such as Ghana, Gambia, Guinea, and Guinea Bissau. These agreements are a part of the 5,600-kilometer Nigeria-Morocco Gas Pipeline project, which also crosses seven other nations: Togo, Benin, Liberia, Cote d’Ivoire, Sudan, and Senegal.

    After the project is finished, Nigeria will supply Morocco and eventually Europe with roughly 3 billion standard cubic feet of gas per day (3bscf/d).

    The NNPCL obtained a $1.4 billion external project finance agreement for Niger Delta hydrocarbon projects in the same year 2022. In addition, the Kyari-led NNPCL purchased OVH Energy Marketing (OVHEM), the owner and operator of Oando downstream assets, as part of its resolve to keep up its dominant position in the upstream industry.

    These successes of the NNPCL over the past two years undoubtedly do not point to a feeble and careless leadership at the top of the organisation. Rather, they highlight Kyari’s smart, purposeful, and nuanced leadership. He had been clear from the start that he intended to take the NNPC in a different path. He had revealed his TAPE motive in order to do this. Transparency, Accountability, and Performance Excellence — “TAPE” for short — has been the cornerstone of his leadership at the NNPC and has highlighted the accomplishments he has made in a short period of time.

    *Fajimi, an engineer, writes from Lagos

  • NNPC, MOMAN to partner on energy security

    THE Nigerian National Petroleum Corporation (NNPC) and the Major Marketers Association of Nigeria (MOMAN) have resolved to work together to grow the oil industry.

    Group Managing Director of the NNPC, Mallam Mele Kyari and MOMAN chairman, Mr. Tunji Oyebanji, made the pledge during the visit of the MOMAN’s executive to the NNPC in Abuja on Wednesday.

    Speaking during the visit,  the association,  Kyari said statutorily, the corporation was mandated to work with all relevant industry stakeholders to sustain the growth trajectory of the industry as well as ensure energy security of the nation, NNPC’s Acting General Manager, Group Public Affair Division, Mr. Samson Makoji, explained in a statement.

    He said effective fuel supply and distribution were critical to national growth and energy security, as NNPC, being a national oil company, has an obligation to ensure that petroleum products supply and distribution were carried out unimpeded across the country.

    Read Also: Fire razes NNPC depot

    He said: “NNPC must work with MOMAN, security agencies and all other relevant stakeholders for the petroleum sector to thrive.  We will work with MOMAN as a partner of choice and we are ready to intervene in issues that will promote the growth of the Industry. By so doing, we will encourage you to continue to grow your investment in the country for the economy to prosper.”

    The GMD said the Federal Government was determined to ensure that the Petroleum Industry Bill (PIB) pass legislative huddles within the shortest possible time to, among others, reduce the incidences of overlapping roles among agencies of government.

    He expressed readiness to collaborate with other agencies to address the issues that are of interest to MOMAN to ensure that its members remain a going concern.

  • NNPC: Oil will remain relevant beyond 2040

    THE Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, said fossil fuel would remain relevant in the global energy mix contrary to assumptions in some quarters that  oil demand would be very high even beyond 2040.

    The NNPC chief spoke on Wednesday in his office in Abuja, when he received members of a Higher Command Course of the Indian Army War College on a geo-strategic tour of Nigeria.

    Kyari espoused the uniqueness of Nigeria’s crude oil grades as rich crude with high global demand, saying NNPC was determined to grow Nigeria’s production to 3million barrels per day by 2023 to enable it to take advantage of the gap that exists in the demand-supply balance.

    The Acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji disclosed this in a statement on Wednesday.

    Read Also: Beware of impostors, NNPC cries out

    He said the age-long bilateral relations between Nigeria and India, which cut across trade, military cooperation and international peace keeping, among others.

    The GMD explained that NNPC’s mandate cuts across satisfying domestic energy needs and contributing to global energy market, especially crude oil and Liquefied Natural Gas (LNG) deliveries across the world.

    He described energy security as a critical factor in guaranteeing Nigeria’s territorial integrity and growing its economy.

    “Energy security is everything in terms of national security. The recent attack on Saudi oil facility is one incident which has attracted global attention and has the potential to impact global economy,” Kyari said.

    According to the NNPC’s helmsman, understanding the relationship between energy security and global security was important, especially as developing nations strive to grow their respective economies and guarantee their territorial integrity.

    In his remarks, the leader of the delegation, Brig. Gen. Sudhir Malik, said India was the largest trade partner with Nigeria, stressing that oil formed a large chunk of the trade between the two counties.

    He described Nigeria as Africa’s economic power house which shares similar aspirations as India.

    “We are also a growing economy. It is a mutual benefit to both nations. In times to come, we hope that these bilateral relations will continue to grow so that we will also increase the trade volumes,” he added.

    While stating that India was aware of Nigeria’s peculiar security and economic challenges, the military chief, however, expressed optimism that the deep relations between the countries’ armed forces would help in addressing these challenges.

  • Full rehabilitation of refineries begins in January -Kyari

    THE Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Malam Mele Kyari, on Saturday revealed that the full rehabilitation of the four national refineries will commence in January next year.

    He gave an assurance that the nation’s refineries, located in Port Harcourt, Warri and Kaduna, will roar to live to refine crude oil at optimum capacity come 2022.

    According to a statement from the NNPC, he made this known during a facilities tour of the Port-Harcourt Refining and Petrochemical Company (PHRC).

    The statement noted that the NNPC helmsman’s visit to the refinery was part of his strong determination and commitment to ensure that the nation’s refineries deliver real time value and address the petroleum needs of Nigerians.

    Kyari said making the refineries to operate at optimal capacities was a mandate that NNPC as a corporation would leave no stone unturned to actualize, saying a timely delivery of the asset was a priority.

    “We will stick to time, we will deliver this project by 2022. We will commence actual rehabilitation work in January. We will do everything possible between October and December to close out all necessary conditions for us to deliver on that project. I believe that with the support that we have from the shareholders – government of this country, the entire staff of this company and the contractors, I believe it is doable and we will deliver the project”, the GMD said.

    He tasked the contractors on the need to consider their reputation as most critical element in business processes and engagements.

    “It’s no longer about business now, but a reputational issue. For the original builders of the refinery, Tecmmont, Eni/NAOC and NNPC, let us be conscious of the fact that our reputation is at stake as far as this project is concerned. The NNPC leadership has promised this country that our refineries will work, therefore, we must work not to disappoint over 200million Nigerian stakeholders”.

    The NNPC boss challenged the PHRC management to ensure that the nation’s indigenous engineers and other professionals working in the refinery are fully engaged to participate actively during the rehabilitation exercise and own the process.

    According to the GMD, the involvement of the indigenous workers will build capacity, save cost and introduce an era of steady and uninterrupted production curve that will grow the oil and gas industry.

    Read Also: Kyari didn’t influence Oyo-Ita’s investigation, says EFCC 

    In his presentation on the progress and milestones on Phase 1 of the projects, the Tecmmont Project Manager, Mr. La Mattina Carmelo, informed that the Inspection aspect of the project has progressed to 91% and Final Report and EPC Proposal stood at 75%, adding that his company would deliver the first phase of the rehabilitation within three weeks from now.

    He assured that there were no challenges as the project was progressing efficiently, pledging to offer its best services to ensure a timely delivery.

    In the same vein, the project consulting company, Eni/NAOC, represented by the its project manager, Daniele Tamburini, confirmed that the work done so far by the NNPC and Tecmmont complied with global standard.

    Tamburini said his company was ready to receive the full report of the scoping for final assessment and support the corporation to deliver the project in record time, saying that the initiative was a good business for Nigeria.

    Earlier in his address, the Managing Director of the PHRC, Mr. Abba Bukar, expressed appreciation to the GMD for his deep commitment in ensuring that the refinery works for the benefit of Nigerians.

     

  • NNPC records 45,347 pipeline breaks

    THE Nigerian National Petroleum Corporation (NNPC) said it recorded a total of 45,347 pipeline breaks on its downstream pipeline network between 2001 and in the first six months of this year.

    It said it has pledged to deepen collaboration with the Nigerian Navy to tackle the menace of oil theft and attacks on oil and gas facilities across the country.

    Its GMD, Mallam Mele Kyari, made this disclosure in a keynote address at the Nigeria International Pipeline Technology and Security Conference and Exhibition organised by the Pipelines Professionals Association of Nigeria (PLAN) in Abuja on Wednesday.

    He said last year alone, a total of 19 fire incidents were recorded on the petroleum products pipelines, stressing that the theme of this year’s conference: Pipeline Assets: Critical Backbone for Socio-Economic Development, resonated with the thinking at the NNPC on the need to reinforce the narrative of the critical role of pipeline assets to the nation’s energy security and economic progress.

    He said it was difficult for the oil and gas industry to deliver much value to the economy without effective and efficient pipelines operations.

    “As a major player in the oil and gas industry, NNPC operates over 5,000 kilometers of pipelines traversing many communities to link terminals, 3 refineries and 20 depots for efficient transportation of crude oil and refined products. In addition, NNPC has over 1,700 kilometers of natural gas pipelines to supply gas to power plants and gas-based industries, including deliveries to trans-national reception points,” the GMD quipped.

    He lamented that these huge pipeline assets have become difficult to operate efficiently as a result of incessant activities of vandals and other criminal syndicates that were becoming increasingly sophisticated.

    Kyari  during a courtesy visit to the Chief of Naval Staff, Vice Admiral Ibok Ekwe Ibas at the Naval Headquarters pledged to deepen collaboration between the two organisations.

    He expressed gratitude to the Navy for its efforts at securing the nation’s oil and gas facilities in the creeks and deepwater.

    Read Also: NNPC COOs sign performance bond

    He said while the intervention of the Navy had brought some sanity to the system, there was need to do more as crude oil theft was still a potent reality in the nation’s oil and gas industry.

    He said NNPC was ready to support the Navy in any initiative it could come up with to further check the menace.

    In his presentation, Vice Admiral Ibas, said the Navy was currently working at integrating its system with those of other maritime operators such as the Nigeria Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) to facilitate efficient operation.

    He said the Navy has over 130 impounded vessels some of which are laden with stolen crude oil and petroleum products, stressing that it would live up to its mandate and work towards ending all forms of criminality in the nation’s territorial waters.

    He listed a number of challenges to its operations which he said were receiving attention, adding that the corporation’s intervention in resolving some them was welcomed.

    The NNPC helmsman said the corporation was ready to collaborate with PLAN and all stakeholders to respond aggressively to incidences of pipeline vandalism in the country with a view to mitigating them.

    He said the current administration under the leadership of President Muhammadu Buhari was determined to boost domestic gas utilisation to improve power generation and boost industrial growth, stressing that the support of all, especially pipeline professionals, was required to drive the laudable initiative to fruition.

     

     

     

     

  • NNPC COOs sign performance bond

    ALL the Chief Operating Officer (COO) of the Nigerian National Petroleum Corporation (NNPC) have signed bonds to commit their directorate to their Key Priority Areas (KPAs).

    The bond is based on the desire of the the Group Managing Director of  NNPC,  Mele Kyari, to deliver on his mandate

    He has urged members of his management team to work assiduously to deliver on the KPAs of growing the nation’s crude oil reserves and production, ensuring steady supply of petroleum products and supplying adequate gas to meet the next level agenda of the Federal Government.

    Kyari gave the charge to the COOs of the various Autonomous Business Units (ABUs) of the Corporation at a sign-off event held at the NNPC Towers, Abuja, on Monday.

    He explained that all the KPAs and Key Performance Indicators (KPIs) were designed by in-house experts without inputs from consultants, adding that it was an indication of the abundant talents within the corporation’s human resource base.

    “I have the conviction that we can deliver on these KPAs and even do more. We have enormous goodwill from our various stakeholders and Nigerians that we can do things differently. Let me emphasise that our stakeholders have tremendous trust in us and it is only excellent performance that can sustain the trust they have in us,” Kyari said.

    He said the clear goal of his management was to drive an NNPC that is Transparent and Accountable with Performance Excellence (TAPE), stressing that the milestones for all the ABUs and Strategic Business Units (SBUs) would be delivered within the timelines.

    Read Also: NNPC management signs performance bonds

    Kyari said the KPAs were the roadmap for growth and consolidation, assuring that his management would ensure effective stimulation of industrial growth in the country.

    Tagged the Roadmap for Growth and Consolidation, Kyari’s new Corporate vision of Transparency, Accountability & Performance Excellence (TAPE) would ensure that all of NNPC’s seven Directorates leveraged on technology and innovation to deliver on their KPAs.

    The KPAs also have clear-cut roadmap and strategies towards actualising the TAPE mandate.

    For the Upstream Directorate, the KPAs are: growing the nation’s reserves and increasing production; while the KPAs for the Gas and Power Directorate include the expansion of the gas sector footprint towards stimulating industrialisation.

    While the Refining and Petrochemicals Directorates would focus on enhancing local refining capacity as its KPA, the Downstream Directorate would ensure efficient and seamless petroleum products supply to guarantee energy security for the country and ensure that the critical oil and gas infrastructure are secured, and the Ventures Directorate would work to ensure that the corporation’s new businesses are capitalised and commercialised.

    For the Corporate Services Directorate, the KPAs are the development of the corporation’s human capital and excellent service delivery, while the Finance and Accounts Directorate is charged with ensuring financing for growth and effective liquidity management.

    The highpoint of the event was the signing of performance bonds by all the COOs to commit their directorates to the delivery of their various KPAs.

     

  • Crude-for-fuel deal on till 2023, says NNPC

    THE crude-for-fuel swap deal will continue because the refineries are not functional, the Nigerian National Petroleum Corporation (NNPC), explained on Monday.

    Group Managing Director (GMD) Mele Kyari, said the deal will persist until the refineries are fixed in 2023.

    The latest round of the swap deal, known as Direct Sale, Direct Purchase (DSDP), will run until September next year and then be extended.

    Kyari said: “The DSDP is a child of necessity and not a permanent arrangement. So anytime we are able to meet our domestic petroleum products requirement, of course DSDP goes away.

    “The DSDP is a child of necessity and not a permanent arrangement. So, anytime we are able to meet our domestic petroleum products requirement, of course DSDP goes away.”

    Nigeria has been struggling to become self-reliant in petroleum products, especially in as gasoline and diesel for years because the refineries have been working below the installed capacities.

    The development has put a strain on foreign currency reserves because the government went into the crude-for—fuel deal to sustain supplies and meet demand.

    Read Also: NNPC commences repair of damaged oil pipeline in Delta

    Last month, the NNPC announced Vitol SA, Litasco SA and Sahara Energy Ltd among others as the companies shortlisted to exchange crude for gasoline.

    The latest round of the DSDP will start next month. Four plants, run by the NNPC operate far below their combined 445,000 barrel per day day potential, forcing the country to import more than 90 per cent of local fuel requirements.

    The NNPC began the swap deal more than six years ago as a stop-gap to curb petrol shortages as it tried to revamp the refineries.

    The measure will now continue until 2022-23, Kyari said. For this year’s programme, NNPC is looking for 14 billion litres (or 14 cargoes monthly).

    Kyari said a new target to revamp the refineries has now been set for 2023, starting with the 210,000 bpd capacity plant in Port Harcourt.

    A preliminary check by Maire Tecnimont SpA on the plant, due to be completed next month, will give the estimated cost of fixing it, he said.

    A similar check will also be done on the Warri and Kaduna refineries before repairs, the NNPC chief said.

    Kyari said: “What we are doing is to see how can we get our refineries back on course and how do we support others to increase local refining capacity.

    “Ultimately, by 2023 we should be a net exporter of petroleum products, assuming we’re able to get Dangote refinery at full capacity and we’re able to fix our refineries.”