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Tag: Ndu Ughamadu

  • NNPC restores Escravos-Lagos pipeline, resumes gas supply

    NNPC restores Escravos-Lagos pipeline, resumes gas supply

    The Nigerian National Petroleum Corporation ( NNPC ) on Monday said the Escravos-Lagos Pipeline ( ELP ), which got burnt by a fire, had been restored.

    A statement in Abuja by the NNPC spokesman, Mr Ndu Ughamadu, said that gas supply to customers on the line, including power generating companies, had resumed.

    A section of the ELP at Abakila in Ondo State blew up in flames on January 2 due to bush fire.

    The incident affected gas supply to customers in Ondo, Ogun and Lagos states with 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 plants include Egbin in Lagos State; Olorunshogo Power Plant, PEL Olorunshogo and Paras Power Plant in Ogun and Omotosho 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 utilisation areas.

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

    NAN

  • 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.

  • 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

  • Long queues, petrol hawkers back in Lagos

    Long queues, petrol hawkers back in Lagos

    Lagos residents on Monday saw the return of long queues at petrol filling stations.

    A correspondent, who monitored the situation, reports that many petrol stations did not have petrol, while the few ones that had sold above the official pump price of N145 per litre.

    Petrol hawkers were sighted along some routes selling 10 litres of petrol at N3,000 against the official pump price of N1,450 per litre.

    The scarcity is allegedly due to the pronouncement of Petroleum and Natural Gas Senior Staff Association ( PENGASSAN ) to embark on an industrial action.

    The announcement led to abrupt shut of flow stations across parts of the country which caused panic buying.

    Some motorists, who spoke to NAN, said that they had spent hours on queues.

    They said that some filling stations were exploiting the situation to increase price of the product.

    NAN observed that some filling stations at Berger- Iyana-Oworo Expressway, Ikorodu, Bariga, Lagos-Badagry Expressway, among others, sold petrol at between N160 and N170 per litre.

    At NIPCO filling station in Ikorodu, a banker, Mr Anthony Sunday, said there was no justification for the current fuel scarcity as the government had assured citizens of abundant fuel supply during the Yuletide.

    Read also: Four ships arrive Lagos ports with petrol

    He said marketers were taking advantage of PENGASSAN’s planned strike and the festive period to exploit citizens.

    At Conoil filling station at Alapere, a trader, Mrs Alice Jubril, condemned its management for selling above the pump price of N145 per litre.

    Jubril said marketers were also the cause of the long queues at filling stations.

    “I bought a litre of petrol at N160 against the regulated price of N145 per litre.

    “This is an indication of exploitation, ” she said.

    Another motorist, Mrs Ifeoma Vincent, urged the regulatory agencies to intervene to stop arbitrary increase in pump price.

    She said the development had compelled commercial drivers to increase their fares, adding that the drivers often cited difficulties in getting fuel as the main reason.

    “For instance, the fare for a trip from Ikorodu to Ojuelegba which used to be N250 is now N700, while a journey to Ketu which formerly was N100 is now N300.

    “Apart from the hike in transport fares, the fuel situation has also affected the traffic situation as parts of the roads have now been taken over by vehicles queuing for fuel, ‘’she said.

    The NNPC has, however, advised motorists and other petroleum products consumers not to engage in panic buying.

    Its Group General Manger (Group Public Affairs), Mr Ndu Ughamadu, gave the advice in a statement on Monday.

    Ughamadu said relevant government agencies were in consultation with the industrial unions to arrive at amicable resolution of issues over threats of an industrial action.

    NNPC warned marketers not to hoard products as law enforcement agencies, working with industry regulators, had been mandated to take appropriate measures against any defaulter.

    It said that there were enough petroleum products to go round the nation.

    NAN

  • NNPC warns oil marketers against fuel hoarding

    NNPC warns oil marketers against fuel hoarding

    The Nigerian National Petroleum Corporation ( NNPC ) on Monday warned oil marketers to desist from hoarding petroleum products or risk arrest by law enforcement agencies.

    NNPC Spokesman, Ndu Ughamadu, said in a statement in Abuja that the warning followed the uncovering of 144 oil tankers filled with petroleum products in Kano.

    Read also: NNPC threatens to shut stations hoarding fuel

    According to him, government has intervened in an industrial action embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria ( PENGASSAN ) over labour disputes with NECONDE Energy Services Ltd.

    “NNPC warns marketers not to hoard products as law enforcement agencies, working with industry regulators, have been detailed to take appropriate measures against any defaulter.

    “The Corporation further assures that there are enough petroleum products to keep the nation wet,” Ughamadu said.

    He urged motorists and other consumers of   petroleum products to resist the temptation to go into panic buying.

    “NNPC wishes to state that relevant government agencies are in consultation with industrial unions to arrive at an amicable resolution of issues over which there are threats of industrial action,” he said.

    The Federal Government has also waded into the matter, appealing to leaders of PENGASSAN to shelve its strike over the sack of workers by NECONDE Energy Services Ltd.

    Queues, which eased some days back, have now returned at filling stations in the Federal Capital Territory.

    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

  • 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

  • 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

  • NNPC new station to ensure energy security – Baru

    NNPC new station to ensure energy security – Baru

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has described the commencement of operations of the newly constructed ultra-modern mega station of NNPC Retail Limited located along Lagos-Ibadan Expressway, as part of the strategies to ensuring energy security in the country.

    Reviewing the giant strides of NNPC Retail Limited, a subsidiary of the Corporation, Dr. Baru said the subsidiary’s Mega station which has opened to business at Oyeleke Village, around Shagamu Interchange on the expressway, would ensure that thousands of motorists who ply the road enjoy year-round fuel supply at the station, stressing that NNPC would continue to ensure products’ availability in all the nook and cranny of the country.

    The GMD, according to the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement on Monday: “NNPC will continue to maintain its leadership position in the supply of another significant product, gas, to the Nigerian market through its Exploration and Production business unit. The Gas & Power Directorate of the Corporation is also recording improved gas supply to domestic, industrial, commercial and power sectors, which stood at an average of 1,200mmscf/d last month.”

    Commenting on the newly constructed Mega station, the Managing Director of the NNPC Downstream company, Mr. Yemi Adetunji, said the Mega station was established in line with the Economic Recovery and Growth initiative of the Change Agenda of President Muhammadu Buhari’s administration and the 12 Business Focus Areas (BUFA) being championed by the present NNPC Management under the leadership of the Corporation’s Group Managing Director, Dr Baru.

    Adetunji said he was sure the station would meet the fuel consumption needs of motorists along the Lagos-Ibadan Expressway.

    The Lagos–Ibadan expressway is a major gateway between Lagos and other parts of Nigeria and continues to record increased vehicular traffic due to the improved condition of the road and reinvigorated Nigerian economy under the stewardship of President Buhari.

    The NNPC Retail currently has a network of over 400 stations and continues to earn the trust of Nigerians in product availability and efficient customer service delivery.