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Tag: Mele Kyari

  • NNPC to crash price of cooking gas

    The Nigerian National Petroleum Corporation (NNPC) is set to implement effective commercial framework that would halt the export of propane and butane, which are major components in the production of Liquefied Petroleum Gas (LPG), also known as cooking gas.

    The Corporation on Thursday explained, in a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, that the move to stop the export of propane and butane anchored by the Crude Oil Marketing Division of the Corporation would enable the Corporation boost supply of LPG to the domestic market thereby leading to a natural downward slide in the price of the product.

    The NNPC spokesman quoted the Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, Mallam Mele Kyari, as saying: “Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework.

    Read Also: NNPC cautions against oil theft

    “What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption”.

    Kyari, who disclosed this at a strategy session, said the Division was working in concert with stakeholders to create the enabling environment for in-country production of LPG and cessation of export of the country’s equity butane and propane entitlements due to absence of in-country vessels for transport and other considerations.

    He said the goal of the Division in 2019 is to complete the automation process in the marketing and sale of Nigerian crude oil grades which teed-off in 2017, noting that all hands must be on deck to achieve 100 percent, end-to-end conclusion of the process.

     

     

  • FG has not compromised us in last two years, says NNPC

    …seeks determination of beneficial ownership

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said that it has never in the last two years the Federal Government has not sought to compromise it. This according to its Group General Manager,  Crude Oil Marketing Division (COMD), Mr. Mele Kyari, who extolled the government that has given the corporation a room to operate transparently and also remain accountable, is unprecedented in the history of the corporation.

    He broke the news in his goodwill message at the Nigeria Extractive Industries Transparency Initiative (NEITI) stakeholder’s workshop on validation in Abuja.

    He said that “we have never had it this good in this country like since the last two years. In terms of transparency in our transactions, validation of our activities,  the unfettered and unobstructed participation of the SGF which has never asked us to do anything else different.

    “This is the most transparent government in this country. We have seen a lot of governments, and worked with a number of them, especially in the last two years, we put our cards in the table.”

    In his presentation titled “Deepening EITI implementation in Nigeria: Commodity Trading and Beneficial Ownership,” he pointed out that when asked of beneficial owners, trading companies present list of their shareholders registered with the Corporate Affairs Commission (CAC).

    He insisted that government needs to work with the NEITI to get beneficial a owners, noting that the banks could use the cash to trace the real owners of the companies.

    Continuing, he said that “we know that the names on companies registration in the CAC are just mere names of people who get commissions from real owners.

    “The closest we can get is to insist that companies give names of people who have at least 5 to 10% shares and you can consider beneficial owners.”

    Kyari however pointed out that should NNPC go beyond that, it would be seen to be doing the job of the Economic and Financial Crimes Commission (EFCC).

    According to him, the corporation is only interested in the beneficial owners for them to pay their proper tax and not for their crime.

    He however submitted that “for the first time during our last contract, we insisted that all companies declare beneficial owners and all of them gave a list of shareholders which is useless.

    “We need to have collaboration between the government, companies and banks to come to an agreement on the determination of beneficial owners.”

    Speaking, NEITI’s Executive Secretary, Dr. Waziri Adio, noted that the corporation has now changed for good. He said that the NNPC now honors invitation, which shows that nobody benefits from opaqueness while serving the public.

    He said although Nigeria has survived different validation exercises, the question remains whether NEITI’s reports have effected any social change in the country.

  • FG has not compromised us in last two years, says NNPC

    …seeks determination of beneficial ownership

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said  that it has never in the last two years the Federal Government has not sought to compromise it. This according to its Group General Manager,  Crude Oil Marketing Division (COMD), Mr. Mele Kyari, who extolled the government that has given the corporation a room to operate transparently and also remain accountable, is unprecedented in the history of the corporation.

    He broke the news in his goodwill message at the Nigeria Extractive Industries Transparency Initiative (NEITI) stakeholders workshop on validation in Abuja.

    He said that “we have never had it this good in this country like since the last two years. In terms of transparency in our transactions, validation of our activities,  the unfettered and unobstructed participation of the SGF which has never asked us to do anything else different.

    “This is the most transparent government in this country. We have seen a lot of governments, and worked with a number of them, especially in the last two years, we put our cards in the table.”

    In his presentation titled “Deepening EITI implementation in Nigeria: Commodity Trading and Beneficial Ownership,” he pointed out that when asked of beneficial owners, trading companies present list of their shareholders registered with the Corporate Affairs Commission (CAC).

    He insisted that government needs to work with the NEITI to get beneficial a owners, noting that the banks could use the cash to trace the real owners of the companies.

    Continuing, he said that “we know that the names on companies registration in the CAC are just mere names of people who get commissions from real owners.

    “The closest we can get is to insist that companies give names of people who have at least 5 to 10% shares and you can consider beneficial owners.”

    Kyari however pointed out that should NNPC go beyond that, it would be seen to be doing the job of the Economic and Financial Crimes Commission (EFCC).

    According to him, the corporation is only interested in the beneficial owners for them to pay their proper tax and not for their crime.

    He however submitted that “for the first time during our last contract, we insisted that all companies declare beneficial owners and all of them gave a list of shareholders which is useless.

    “We need to have collaboration between the government, companies and banks to come to an agreement on the determination of beneficial owners.”

    Speaking, NEITI’s Executive Secretary, Dr. Waziri Adio, noted that the corporation has now changed for good. He said that the NNPC now honors invitation, which shows that nobody benefits from opaqueness while serving the public.

    He said although Nigeria has survived different validation exercises, the question remains whether NEITI’s reports have effected any social change in the country.

  • 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 )