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Tag: Nigeria National Petroleum Corporation (NNPC)

  • We will not join planned petroleum strike – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that it is not party to the planned strike by other oil marketers.

    The marketers, including Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the Independent Petroleum Products Importers (IPPIS) had given the Federal Government a 7-day ultimatum, threatening to shut down depots across the country.

    The marketers claimed that the Federal Government is owing them a total of N800 billion Petroleum Equalization Fund (PEF).

    However, the IPMAN, through its Kano State chairman, Bashir Ahmad Dan-Mallam,on Monday, said it would not join any strike action that is capable of inflicting hardship on Nigerians.

    According to Dan-Mallam, the Federal Government is also owing IPMAN about N150 billion PEF, but the association was not threatening any action against  the government.

    He maintained that the aggrieved oil marketers should rather engage the Federal Government in dialogue in order to resolve their differences amicably, noting that, the debt was inherited from previous administrations.

    He boasted that even if the oil marketers insist on the strike, the public should not panic as all the deports across the country are filled with the Premium Motor Spirit (PMS), also known as petroleum.

    “All the deports in Kano, Minna, Warri and other places across the country are filled with petroleum that is enough for the consumption of the people throughout this festive period and even beyond.

    “So, let me use this opportunity to call on the general public that they should not panic about petroleum scarcity as we, the IPMAN, will not join the strike.

    “We are not pray to any action capable of inflicting hardship on the public. We have enough petroleum in our deports. So there is no course for alarm,” he said

    Dan-Mallam also called on the Nigeria National Petroleum Corporation (NNPC) to stop supplying petroleum to those associations that threatened to embark on strike.

    He also stated that, IPMAN  challenges all private deport owners to show when they ate supplying PMS to the association, stressing that, the era of the traditional end-of-year petroleum scarcity is over in Nigeria.

    He however called on the Federal Government to endeavour to settle the debt for the interest of the masses who bear the brunt whenever there is industrial action in the country.

     

     

  • NNPC seeks new funding options for operators

    The Nigeria National Petroleum Corporation (NNPC)  says it is devising new ways to attract more funding for operators in Nigeria’s oil and gas industry to launch them into a new phase of exploration.

    The operators have been grappling with funding challenges which has cut down investment in oil exploration.

    Dr Maikanti Baru, the Group Managing Director of NNPC, said the corporation believed that attracting fresh funds to the industry would enable the country to achieve its target of raising reserves to 40 billion barrels in 2020.

    Baru, who spoke at the 36th Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, said that Nigeria had already set achievable target of 40 billion barrels oil reserves and three million barrels a day production by 2020.

    Baru was represented by Dr Victor Adeniran, the Chief Operating Officer (COO) of NNPC Ventures.

    He said the industry required special fund for hydrocarbon exploration to fully achieve its potential.

    “Currently, as a physical incentive, all exploration cost within the industry is expensed, this is a laudable and pro industry incentive from the government.

    “The implications is that funding need to be incurred prior to taking benefits, hence the funding structure of exploration within the industry needs to be strengthened,” Baru said.

    Baru said the corporation was willing to work with partners and the industry in that regard.

    “We would open up new fields in terms of marginal fields development, dormant assets and new assets, as there are still condensing prospects for new oil and gas reserves in Nigeria, particularly in the ultra-deep water and inland frontier basins, and the timing and process must be transparent.”

    According to him, if this is done on consistent basis, the nation’s reserve replacement ratio, newly discovered reserves versus productions in the next 10 years will be more than double.

    Baru also said that funds could be raised from the Nigerian Content Development Monitoring Board (NCDMB), Local Content Fund or from the Central Bank of Nigeria, Seismic exploration support fund for Seismic survey in under explored areas of the country.

    Read Also: NNPC eyes new funding option to boost oil reserves

    The NNPC boss suggested that a revolving special fund could be created for the country’s hydrocarbon exploration on contributory funding basis.

    He said the NNPC would be willing to support such structures and was ready to create a workable framework.

    Baru said that the identification, evaluation, diversification and source of hydrocarbon were quite important and government also needed to develop a framework that would respond rapidly and quickly to external stimuli, particularly oil prices and increasing competition from other basins within the Gulf of Guinea.

    “Some of these incentives can include an allowance for deeper prospect drilling end of life tax break or tax holiday for matured assets, new reserves replacement bonuses.

    “The new and replacement terms are intentionally placed to ensure benefit and additions are earned based on meaningful work not on simulation data, catalytic application of enhanced oil recovery techniques or the likes, lower royalty rate for small fields and small allowances,” he said.

     

    NAN

  • Tension in Abia Community over imminent pipeline explosion

    There is palpable fear of imminent death lurking in Umuinwere and Amaukwu villages in Obokwe in Ukwa West Local Government Area of Abia State following a leakage on the Nigeria National Petroleum Corporation (NNPC) pipeline (Kms 38 to 43) suspected to be Petroleum Motor Spirit (PMS).

    Recall that Umuimo, Umuaduru and Uratta communities in Osisioma Local Government Area of the state have suffered loss of their indigenes from pipeline explosions that recently rocked the three communities.

    It was learnt that the people of the area had been living in fear after reported efforts to alert concerned authorities over the matter failed.

    Yet-to-be confirmed reports have it that unscrupulous persons from and outside the communities have been going to the leaking pipeline to scoop petroleum product while exposing their lives and that of the communities to danger.

    Read Also: Abia partners chamber of commerce, think tank

    But the state government through the Commissioner for Petroleum Barr. Chizuru Kanu has reportedly warned the general public, particularly residents and visitors in Obokwe area to stay away from the affected pipeline to avoid any disaster.

    In a release signed by Kanu, he called on relevant security agencies and officials of NNPC to immediately ensure the cordoning off of the area as well as prevention of unauthorized activities.

    The release further advised the management of NNPC to mobilize necessary resources and execute remedial actions along the affected areas of the pipeline as well as the entire length of the 143km length of pipeline across the state.

    The pipeline monitoring and protection unit of the NNPC is also advised to be more proactive in their operations to ensure that the ugly incident recently witnessed along the Osisioma axis of the pipeline does not happen again in the state.

  • Drama in Senate over $3.8bn subsidy fund

    There was mild drama on Tuesday in the Senate over the management of over $3.8 billion fuel subsidy fund by the Nigeria National Petroleum Corporation (NNPC).

    Senators were at each others throat following accusations and counter accusations of alleged compromise in their line of duty.

    There was also allegation of subterranean plot to source campaign funds from the oil behemoth.

    Senate Minority Leader, Senator Biodun Olujimi, sparked the controversy when she raised the alarm over alleged mismanagement of huge subsidy fund.

    Olujimi (Ekiti South) told her colleagues that it was dangerous to allow just two people in NNPC, the Group Managing Director (GMD) and  the Executive Director in charge of Finance, as the sole controllers of huge subsidy fund.

    The fund, she said, has been curiously renamed “Fuel Subsidy Under-Recovery Fund” for a purpose that has not been explained to Nigerians.

    She recalled that NNPC has been severally requested to submit subsidy budget to the National Assembly for consideration and approval.

    A request, the lawmaker said, has been resisted by the NNPC without reason.

    She insisted that the Senate cannot sit by and allow only two people to continue to manage over $3 billion oil subsidy funds.

    Olujimi who came under a point of order, reminded the upper chamber that attempts to compel NNPC leadership to do what is right by submitting a budget to the National Assembly on subsidy payment, has failed.

    Read Also: Senate condoles with family of slain Red Cross worker

    The amount involved, she reiterated, was “too huge for only two people to control and manage without appropriation.”

    Olujimi said, “I need to bring this issue to the attention of the Senate. The NNPC is operating an illegal fund on subsidy. As a Senate, we are the true representatives of the people. We cannot sit back and allow this to continue to happen.

    “I am bringing this to the attention of the Senate so that we can look at the issue. Let the various committees, especially the Senate Committee on Petroleum (Downstream), look into this issue. Let them investigate and tell us what the position on ground is.”

    She prayed the Senate to mandate its committee on petroleum (downstream) to cause the NNPC to come before the senate to explain what has happened to the fund and the new terminology formulated to manage the fund.

    Senate President, Bukola Saraki, agreed.

    Saraki asked Senate Leader, Ahmed Lawan and chairman, Petroleum Committee (downstream) Senator Kabiru Marafa to inter face with those involved and report back to the Senate within four days.

    He said that “the issue is too serious and the money involved too huge to be left just like that.”

    Saraki said: “When we passed the budget, I said the executive needed to bring subsidy budget. In the light of the enormity of this, we will direct the Leader and chairman of Downstream to summon those in charge. They need to get back to us in four days. I don’t want this issue to be partisan. I want us to speak on the basis of fact. I don’t want us to take up this issue and people will begin to see it as a partisan issue.”

    Some Senators were however not comfortable with the inclusion of the committee on Petroleum as part of those to investigate the matter.

    Senator Mohammed Ali Ndume suggested that since committee on Petroleum has oversight function over NNPC, it should be left out of the probe.

    The Borno South Senator re-echoed what Senator Buka Abba Ibrahim murmured that the Petroleum Committee might have compromised on the issue.

    Apparently for emphasis, Ndume said that his proposal that the Petroleum Committee should not be part of the investigation stemmed from the insinuation by Ibrahim that the Petroleum committee might have compromised in the course of its oversight duty.

    He said, “Issues like this should be looked at seriously. When these things happen, the committee should know. I suggest that the Leader and other people who are not members of the committee should look at this. The committee may have compromised. We should set up an ad-hoc committee to look into the issue.”

    Marafa felt injured by the comment that members of his committee might have been comprised by officials of the NNPC.

    The Zamfara central lawmaker said that he would not be bothered if his committee was disbanded.

    He said that it would not be out of place to say that those proposing the setting up of ad-hoc committee in place of a standing committee have other motives.

     He did not stop there. Marafa said that those behind the proposal for ad-hoc committee were actually gunning to generate campaign funds ahead of the elections in 2019.

    There was uproar on the floor. Many senators attempted to shout him down. He persisted.

    Marafa said that Ndume must also asked to withdraw his statement that members of his committee have been compromised.

    He said that Ndume must not only stop at withdrawing the statement but also tender an apology to them.

    He said, “I feel insulted. If the Selection Committee agrees today to dissolve our committee, I will not have any problem with that. They have the right to do that. But for anyone to just accuse us that we have been compromised, I think it is an insult.

    “I know that those advocating that an ad-hoc committee be set up to investigate the issue are out to generate campaign funds for their election next year. They are free to do so. I will not stop them. But no one should malign us and accuse us of compromise.”

    Saraki attempted to restrain Marafa.

    Marafa refused to apologize.

    He insisted that Ndume must first tender unreserved apology and withdraw his statement.

    Sensing total break down of law and order in the chamber, Ndume told his colleagues that Buka Ibrahim had given him the authority to apogise and withdrew his statement.

    Marafa followed and withdrew his statement. He also apologised to his colleagues for what many considered a sweeping statement.

    The matter did not end there as the Senate Leader protested Marafa’s statement.

    He declined to serve in the yet to be constituted committee.

    Lawan said that he was declining his nomination to head the probe team to protect his integrity.

    Although he did not mention Marafa, Lawan said that it took him several years to build his integrity and reputation and will not want anybody to soil his name.

    Saraki and his deputy, Ike Ekweremadu, requested Lawan to reconsider his decision.

    The Senate President said that the Senate cannot afford to handle the issue haphazardly.

     He said that “the country cannot be running a subsidy fund of $3.8 billion without knowing who is doing what.”

  • NNPC restores ruptured pipeline, gas supply to generating plants

    The Transmission Company of Nigeria (TCN) on Tuesday in Lagos said gas supply to generating stations had built up gradually after the Nigeria National Petroleum Corporation (NNPC) restored a ruptured pipeline.

    Mrs Ndidi Mbah, General Manager, Public Affairs of TCN, said within a day power supply would be restored to normal.

    Mbah said an indication that gas supply had improved was the increase in power generation into the National Grid to 3,876.9 Megawatts as at 17.00hrs on Monday, as reported by National Control Centre (NCC).

    “TCN wishes to use this opportunity to commend NNPC, especially Nigerian Gas Corporation (NGC) for the quick intervention.

    “The company also appreciates the Ministry of Power, Generation Companies (GENCOs), Distribution Companies (DISCOs) and electricity customers for their cooperation during the crises period,” she said.

    According to Mbah, as soon as the gas build up is completed, the affected generating stations would resume normal generation into the National Grid.

    The general manager said through the implementation of Transmission Rehabilitation and Expansion Programme, TCN was building new substations as well as upgrading existing ones and transmission lines all over the country.

    Read Also: No fuel price hike, says NNPC

    “This is expected to further stabilise the Grid and also put necessary flexibility and redundancy in line with N-1 capacity.

    “TCN will continue to count on all Nigerians for support and understanding as it continues to expand the nations’ grid,” she said in a statement.

    TCN said on June 15, that rupture of a major NGC pipeline had scuttled the delivery of gas to six power plants.

    It said this led to a drop in power generation by 1,087 megawatts and compelled the company to embark on load-shedding.

    It stated that the load-shedding was adopted to maintain stability of the national grid, thus avoiding total power system collapse.

    The affected power stations included Ihovbor, Azura, Omotosho gas, Geregu gas, Olorunsogo gas, Sapele and Egbin Power Station, which has managed to generate 60MW only on each of its units, losing a total of 211MW.

    Also, Afam VI power station was shut down to enable Shell resolve its gas well issues and commence gas supply to Afam VI power station.

  • Death toll from Ogun pipeline explosion hits three

    The lone survivor, Animashaun Abiodun, of the pipeline explosion from a vandalised pipeline of the Nigeria National Petroleum Corporation (NNPC), has died following a severe burn.

    Abiodun, 28, died on Saturday at an undisclosed public hospital in Ogun State where he was receiving treatment.

    He was rescued alive  last June 8 along with corpses of two others by the Operatives of the Nigeria Security and Civil Defence Corps (NSDC) while writhing in pains at the  scene of a fire outbreak from a ruptured NNPC pipeline in Ogere Express way area of the state.

    He was taken to the intensive care unit of the Olabisi Onabanjo University Teaching Hospital, Sagamu and later moved to another hospital in Abeokuta, the state capital, for security reason but died on Saturday.

    Read Also:Pipeline explosion in Ogun, policemen missing

    His alleged accomplices – Lateef Ayoola and another identified as Biano, had died earlier at the scene of the pipeline fire.

    Before his death, Abiodun confessed to the Operatives of the NSCDC  that most weekends, he would take six or seven jerry cans to steal fuel from vandalised NNPC pipelines and that the money realised from selling the product was being used to “do ajo (contribution) and also give himself a treat.”

    The Commandant of the Nigeria Security and Civil Defence Corps(NSDC) Ogun State Command, Ayodele  Philip, who disclosed this to reporters in Abeokuta, on Monday, said some personnel of a private security firm contracted to secure the Ogere stretch of the NNPC pipeline spotted Abiodun and two others and called the attention of the Operatives of the NSCDC to it.

    Ayodele said the until his death, the suspect through confession, was helping the Command with valid information about the criminal activities of the pipeline vandals in the state

    “Abiodun had been victim of fire explosion (in the past) during some of his illicit acts and nemesis only taught him a bitter lesson having refused to learn in a hard way.

    “He also confessed to have been involved in series of pipeline vandalism alongside his deceased friends to the extent of getting burnt on some occasions yet they were not deterred until this their untimely death.

    “Abiodun before his demise also confessed to have started his nefarious acts as a teenager and that the whole stuff seems more of a conscription into a cultic group from which it is almost near impossible to withdraw from it once one is taken in,” Ayodele said.

    The NSCDC Commandant who also disclosed a dozen of people have been arrested in connection with vandalisation electric cables in parts of the state, appealed to the public to provide vital information that could assist the Operatives secure critical infrastructure in Ogun State.

     

  • Two die in Ogun pipeline explosion

    Two people suspected to be filling station owners in Ogun have died and another severally burnt in a pipeline explosion from a vandalised pipeline of the Nigeria National Petroleum Corporation (NNPC).

    It was not clear what the victims were doing at the location when the fire erupted.

    The Nation gathered the one that suffered burns is receiving treatment at a specialist hospital in Sagamu while the vandalised NNPC pipeline is situated at the Ogere Express way area of the state beside the water corporation.

    The Commandant of the Nigeria Security and Civil Defence Corps (NSDC) Ogun State Command, Ayodele Philip, disclosed that the explosion occurred in early morning of last Friday.

    Read Also:Pipeline explosions: Army arrest 7, recover explosives

    Ayodele said some personnel of a private security firm contracted to secure the Ogere stretch of the NNPC pipeline spotted the incident and called the attention of the Operatives of the NSCDC to it.

    “A private security company detailed to secure the spot called the attention of the Nigerian Security and Civil Defence Corps NSCDC Officer in charge of the area who quickly reported the incident and we swung into action.

    “We were informed by a reliable source that the two men that are dead are owners of four fuel stations, another one who was injured in the fire breakout named Animashaun Abiodun is at the intensive care unit of Olabisi Onabanjo University Teaching Hospital, Sagamu,” he said.

    The NSCDC Commandant noted that he has deployed his men to the black spot to provide arms security, explaining that they have also been  advised to work in synergy with the Private security company and the NNPC officials.

    He also appealed to the public and the residence of the area to provide vital information that could assist the Operatives secure critical infrastructure in Ogun State.