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Tag: Nigerian National Petroleum Corporation (NNPC)

  • Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu on Friday kept mum over the outcome of his meeting with President Muhammadu Buhari.

    He had met behind closed doors with the President at the Presidential Villa, Abuja.

    Kachikwu, who arrived Aso Rock around 11.30a. m. left around 12:50 p.m

    He simply said “No comment” when approached by journalists as he walked out of the President’s office with the Special Adviser to the President on Media and publicity, Femi Adesina.

    The minister has alleged that $25 billion contracts have been wrongly awarded by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC),  Dr. Maikanti Baru.

    His protest was contained in a letter to the President, which somehow got leaked to the public on Tuesday.

    Apart from the Senate mandating its committee to probe the matter, the Peoples Democratic Party (PDP) had demanded for Baru’s sack.

  • NLC, NEITI, others: NNPC ‘scandal’ must be investigated

    NLC, NEITI, others: NNPC ‘scandal’ must be investigated

    The calls for investigation of the contract debacle at the Nigerian National Petroleum Corporation (NNPC) have refused to abate. More groups, including the Nigerian Extractive Industries Transparency Initiatives (NEITI), the Nigeria Labour Congress (NLC), Africa Network for Environment and Economic Justice (ANEEJ) and the Socio-Economic Rights and Accountability Project (SERAP), added their voices to the growing list of pro-probe NNPC advocates.

    The All Progressives Congress (APC), however, declined comment on the controversy. Its National Publicity Secretary, Mallam Bolaji Abdullahi, told reporters: “We can’t comment on that now. In fact, we have no comment on it.”

    NEITI Technical Adviser Dr. Dauda Garuba urged the President to wade into the crisis because $25 billion is too huge an amount to consummate its contract without due process.

    He said: “Whichever way one looks at it, N25 billion is too huge an amount to  build contracts around without due process. We are supposed to be a country guided by rules and procedures. We must make Nigeria work.”

    Garuba said that if it is established that there are infractions as alleged by the Minister of States for Petroleum Resources, the necessary sanctions must be deployed.

    He insisted that Mr. President must demonstrate that he meant business when he promised Nigerians to reform the oil sector.

    He said: “I must say that it is unfortunate that the Nigeria public is being unenviably treated to unpleasant developments in the oil sector. If you ask me, this is coming at a wrong time in our history. Just when we are expecting a reform of the sector so that it can deliver the country out of the woods, we are having to deal with this.

    “So much progress has been recorded in the reform of the oil sector in the last two years that Nigeria cannot afford to turn back the hand of the clock. I know Nigerians are yet to hear from the other side. It will be fair that those who leaked the memo by the Minister of State for Petroleum Resources to President Muhammadu Buhari also live up to their sophistry in access to secret information by obliging Nigerians the response by the Group Managing Director of NNPC. President Muhammadu Buhari must step in and do the needful.”

    The NLC said the issues raised in the communication between the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and President Muhammadu Buhari should be properly investigated.

    The President of the congress, Comrade Ayuba Wabba, in an interview, said the issues raised by the minister must be verified.

    He said: “The issue is under some investigation and I think there should be an opportunity to interrogate the process and at the end of the day, let us know the veracity and facts of the issue. We have made this issue quite clear and loud that part of our challenge is how we are able to imbibe the process of good governance, transparency and accountability.

    “Some of the issues bothers on this critical idea of ensuring that there is good governance in place. Our hope is that this issue will be thoroughly investigated and concluded. At the end of the day. Let us hear what the issues are as well as the fact of the matter. Once we get the facts, we will then be able to make conclusion.

    “I am aware that the process of investigation is on and I am sure that the Presidency will react appropriately since there is a communication on an issue that bothers on good governance.

    “The normal thing to be done is for the issue to be addressed through the normal process. Once this type of information is thrown to the public, the normal thing is to have a process through which these issues can be looked into.

    “I am aware that the Senate are already investigating the issue and so, the process of that investigation must be concluded so that we can have the fact and be able to make meaningful contributions. Whether the Presidency or the National Assembly, they can investigate because they have the power to do so.”

    ANEEJ yesterday called on the National Assembly and President Buhari to conclude the passage and assent of the Petroleum Industry Governance Bill.

    A conclusion of the enactment, according to the civil society organisation, will forestall the reoccurrence of the issues in the oil and gas sector that Kachikwu, raised against the Group Managing Director of the NNPC, Dr. Maikanti Baru.

    The petition was on arbitrary award of $25 billion contract, insubordination, among other infractions of the NNPC boss.

    ANEEJ Executive Director Rev. David Ugolor, in a statement in Abuja, applauded the Senate for launching a probe into Kachikwu’s allegations.

    Ugolor said: “Since the Senate has waded into the matter, we suggest that Mr. President as well must invite the Nigerian Extractive Industry Transparency Initiative, NEITI, to carry out a comprehensive and forensic audit of the allegations.

    “Among statutory functions of the NEITI include the regulation of matters related to due process in the award of contracts in the extractive sector of the Nigerian sector.

    “We believe that the inconsistencies being thrown up by the startling revelations from the Minister of State for Petroleum Resources include some of the issues which the Petroleum Industry Governance Bill seeks to address and redress.

    “The present administration since inception has defined itself first through its corruption stance, and more by the reforms it has introduced in the oil sector. It scrapped the opaque oil swap which made it possible for individuals within government to line their pockets with millions of dollars and has replaced it with the Direct Sale, Direct Purchase scheme.

    “That lofty plan of Direct Sale, Direct Purchase stands in jeopardy if all the contracts that have been awarded and the companies they have been awarded are not subject to thorough vetting and investigations by both the Senate and the NEITI.”

    For SERAP, Buhari must use his “good offices and leadership position to urgently refer the allegations of corruption and abuse of office against Mr Maikanti Baru, Group Managing Director Nigerian National Petroleum Corporation (NNPC) to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for investigation, and if there is relevant and sufficient admissible evidence, for him to face prosecution”.

    The organisation urged Buhari to “suspend Mr Baru pending the referral to the EFCC and ICPC, and the outcome of any investigation by the anti-corruption agencies in order not to create the impression that your government is treating Mr Baru as a sacred cow. We urge you not to allow the allegations against Mr Baru to go the way of past inconclusive investigations of allegations of massive corruption within the NNPC”.

    In an October 2017 a letter signed by SERAP executive director Adetokunbo Mumuni, the organisation said: “The allegations by Dr Kachikwu constitute grave breaches of the Corrupt Practices and Other Related Act of 2000; and the UN Convention against Corruption (UNAC) which Nigeria recently ratified. In particular, the UN Convention against Corruption imposes clear obligations on Nigeria to investigate allegations of corruption such as the present one; prosecute suspected perpetrators and ensure return and repatriation of proceeds of corruption.

    “SERAP is concerned that years of systemic corruption within the NNPC and looting of Nigeria’s natural resources have had uneven consequences against the vulnerable groups of the society, including the poor, women and children, perpetrating and institutionalizing discrimination, and jeopardizing the needs and well-being of future generations. If left unaddressed, the allegations by Dr Kachikwu have the potential of undermining your government’s expressed commitment to returning Nigeria to the path of transparency and accountability.

    “SERAP believes that Mr Baru’s case presents your Administration with yet another rare opportunity to reassure a lot of Nigerians who may be worried about the direction of travel of your anti-corruption agenda. Rather than keeping silent on the matter, we advise you to use this case to show to Nigerians that no form of corruption will be tolerated in the NNPC under your watch.

    “SERAP also believes the recommended approach would help to address the growing public suspicion and pessimism about your government’s ability to fight high-level official corruption to a standstill, and to avoid any collateral consequences. It is absolutely important that the public should have complete confidence and trust in your Administration’s oft-repeated commitment to fight corruption and the impunity of perpetrators.

    “SERAP notes the recent allegations of corruption against Mr Baru by Dr Emmanuel Ibe Kachikwu, Minister of State of Petroleum and Chairman NNPC Board. In the letter to you Dr Kachikwu alleged among others appointments and postings in NNPC without due process; award of contracts above $20m without following the legal and procedural requirements for such contracts including the Crude Term contracts- value at over $10bn; the DSDP contracts- value over $5bn; the AKK pipeline contract- value approximately $3bn; various financing allocation funding contracts with the NOCs – value over $3bn; and various NPDC production service contracts – value at over $3bn—$4bn.”

  • Oil hits highest at $58.37

    Oil hits highest at $58.37

    • NPDC eyes 500,000bpd oil production

    Oil prices hit a more than two-year high yesterday after major producers said the global market was on its way toward rebalancing, while Turkey threatened to cut oil flows from Iraq’s Kurdistan region toward its ports.

    The November Brent crude futures contract was up $1.51, or 2.5 per cent, at $58.37 a barrel, its highest since July, 2015.

    United States (U.S.) West Texas Intermediate crude for November delivery rose $1.02, or two percent, to $51.68 a barrel, close to highs last seen in May.

    “It’s all driven by the idea  that the production cut is starting to work and the rebalance is underway,” said Gene McGillian, director of market research at Tradition Energy in New York.

    Even as both contracts rallied, concerns about U.S. production growth weighed on WTI, widening the spread between the two, he said.

    The discount of the WTI to Brent futures widened to $6.61, the widest since August 2015.

    The Organisation of the Petroleum Exporting Countries (OPEC), Russia and several other producers have cut production by about 1.8 million barrels per day (bpd) since the begining of this year, helping to lift oil prices by about 15 per cent in the past three months.

    Meanwhile, the Nigerian Petroleum Development Company (NPDC), yesterday said it was working to grow its equity production from180,000 barrels per day (bpd) to 300,000 bpd by 2018 and 400,000 bpd and 500,000 bpd in 2019 and 2020 respectively.

    NPDC is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

    Its Managing Director, Mr. Yusuf Matashi, who set this targets in Benin, said the planned increase in  production was due to ongoing transformation in the firm.

    Mr. Matashi said having attained the position of fifth largest exploration and production (E&P) firm in the Nigeria, the NPDC was poised to efficiently manage its portfolios to achieve the new target.

    “The NPDC has 55 per cent equity in nine blocks of Oil Mining Lease (OML) 4, 26, 30, 34, 38, 40, 41, 42 and 55; Non-equity operations in three blocks of selected NNPC Joint Venture fields; 60 per cent participatory interest in four blocks of OMLs 60, 61, 62 and 63 and 100 per cent ownership of seven blocks of OMLs 11, 13, 64, 65, 66, 111 and 119.  In a nutshell, the Company is involved in 29 concessions which comprises 22 OMLs and seven Oil Prospecting Leases,” General Manager, Group Public Affairs Division at NNPC, Mr. Ndu Ughamadu, quoted Matashi as saying in a statement yesterday.

    He said the oil firm had varied interests in seven deepwater concessions and successfully executed a Global Memorandum of Understanding (GMoU) with communities in OMLs 30 and 34, adding that NPDC achieved a major feat by successfully drilling and completing five horizontal wells in nine months in OML 26, leading to production of an additional 7, 000 bpd.

    The MD said NPDC had successfully turnaround OML 40 asset from 0 bpd to 12, 000 bpd which underlined the company’s rising profile as the seventh largest owner and operator of Floating Production Storage and Offloading (FPSO) in Nigeria, with FPSO Mystra having 1.03 million of crude producibility.

    Mr. Matashi added that NPDC also carried out some intervention activities which led to the peak production of approximately 10,000 bpd in OML 65 in June, 2017.

    He said the NPDC was the biggest and largest gas producer in the country and was also the highest supplier of gas to the domestic market.

    “NPDC aggressive gas pursuit since 2009 has also raised the company’s profile as the highest single supplier of gas to the domestic market with an average of 700 million standard cubic feet per day. The Utorogu Non-Associated Gas 11 plant was also completed recently adding 150 mmscfd; the Oredo 2 gas plant also adds 100 mmscfd and the successful re-entry of Odidi which led to an addition of 40 mmscfd of gas indeed represents a major achievement for the company and a step forward to achieving NPDC’s aspiration to become a serious global player in the E & P industry,” Mr. Matashi averred.

    The MD maintained that the NPDC as a responsible and responsive company had awarded scholarship to over 6,000 indigent members of its host communities which traversed host states, renovated and built block of classrooms, provided classroom furniture

    Turkey has said it could cut off a pipeline that carries oil from northern Iraq to the global market, putting more pressure on the Kurdish autonomous region over its independence referendum.

    The Iraqi government does not recognise the referendum and has called on foreign countries to stop importing Kurdish crude oil.

    “If this boycott call proves successful, a good 500,000 fewer barrels of crude oil per day would reach the market,” Commerzbank said in a note.

    Kuwaiti Oil Minister Essam al-Marzouq, who chaired Friday’s meeting in Vienna of the Joint Ministerial Monitoring Committee, said output curbs were helping to cut global crude inventories to their five-year average, OPEC’s stated target.

    Russia’s energy minister said no decision on extending output curbs beyond the end of March was expected before January, although other ministers suggested such a decision could be taken before the end of this year.

    Iran expects to maintain overall crude and condensate exports at around 2.6 million bpd for the rest of this year, a senior official from the country’s state oil company said.

    The energy minister from the United Arab Emirates (UAE) said the country’s compliance with OPEC’s supply cuts was 100 per cent.

    Nigeria is pumping below its agreed output cap, its oil minister, Ibe Kachikwu said.

  • NNPC: Jetty fire will not affect supply of products

    NNPC: Jetty fire will not affect supply of products

    The Nigerian National Petroleum Corporation (NNPC), Monday assured motorists and other consumers of petroleum products nationwide that the fire incident which occurred at Apapa loading jetty at the early hours of Monday will not affect supply of petroleum products.

    The Group General Manager, Group Public Affairs Division, Ndu Ughamadu that disclosed this in a statement said that already, NNPC has deployed a team of engineers to the jetty while the repair of the affected parts would commence immediately.

    The fire was sparked from the activities of hoodlums who were scooping fuels spilled from ships discharging fuels at the jetty.

    NNPC Group Managing Director, Dr. Maikanti Baru, who has been fully briefed on the incident, described the occurrence as unfortunate, assuring that NNPC has more than 1.6billion litres of Premium Motor Spirit (PMS), otherwise called petrol, enough to last for 48 days.

    Baru also said the Corporation also had in stock, sufficient quantity of Automotive Gas Oil (AGO), also known as diesel, Dual Purpose Kerosene (DPK), otherwise referred to as kerosene, as well as Aviation Turbine Kerosene (ATK) to serve the country.

    NNPC advised motorists not to engage in panic paying, adding that they report any challenge they may have in the course of purchasing to the Department of Petroleum Resources (DPR) which is statutorily empowered to deal with such issues.

    DPR has offices located in all parts of the country.

    Meanwhile, the government is working assiduously to arrive at an amicable resolution of outstanding issues with the industry unions.

  • PENGASSAN to FG – ‘settle marketers debts to avert mass sack’

    PENGASSAN to FG – ‘settle marketers debts to avert mass sack’

    The Petroleum and Natural Gas Senior Staff Association of Nigeria ( PENGASSAN ) on Sunday called on the Federal Government to settle all debts allegedly owed oil marketers to engender growth of the oil and gas industry and develop the nation’s economy.

    The union made the call against the backdrop of threat by the marketers to embark on massive retrenchment of their employees if the government refused to pay the over N720 billion subsidy arrears.

    Mr Fortune Obi, National Public Relations Officer, PENGASSAN in a statement said the debts were the outstanding subsidy owed on the importation of petroleum products, accrued interest on loans from banks and exchange rate differential.

    The union said the debts resulted in halt in the importation of refined petroleum products leaving only the Nigerian National Petroleum Corporation (NNPC) doing the business.

    PENGASSAN appealed to government to pay the debts owed the marketers to speed growth  and attract more investment  in the downstream sector.

    “The government should try as much as possible to verify the authenticity of the claims by the oil marketers and ensure quick settlement of the genuine debts.

    “The government should try to separate the genuine claims by the importers from spurious ones and pay them because we will not like to be engulfed in the mistakes of the past where briefcase marketers milked the nation through dubious subsidy claims.

    “A situation where the workers in the industry bear the inability of the government to honour its obligations as part of the importation deal will be unfair and unacceptable to our Association. This is against the President Muhammadu Buhari’s administration major policy of job creation.

    “As a responsible trade union, as much as we will support any move by the government to end subsidy regime and spurious claims by the marketers, we are also canvassing for the payment of debts that can hinder the growth of the downstream sector and attract investments into the sector,” PENGASSAN said.

    The union noted that in the last five years about 70 per cent of the workforce in the downstream sector, especially the marketing sub sector have been thrown into the “over-bloated labour market.”

  • Vandalism: NNPC scales up security on pipelines 

    Vandalism: NNPC scales up security on pipelines 

    In its determination to ensure that the current steady supply of petroleum products nationwide is sustained, the Nigerian National Petroleum Corporation (NNPC) has intensified efforts to safeguard its pipeline from vandals and fire outbreaks in line with best safety practices.

    The Group Managing Director of NNPC, Dr. Maikanti Baru, who disclosed this while receiving a delegation of the Occupational Safety and Health Association, (OSHA) UK, Nigeria Chapter, at the NNPC Towers, Abuja, said the Corporation, would continue to monitor its pipelines and collaborate with the law enforcement agencies to safeguard such critical national asset.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement Tuesday.

    The GMD said that in line with safety standards, NNPC pipelines right-of-way across all locations had been clearly indicated to keep members of the public away from the facilities so as not to come to harm.

    “In our various pipelines running across several kilometers and locations, right-of- way is indicated to show that people should not temper with the facility because of the danger that is involved. This is done to ensure that when there is safety breach, we have access to the affected spot and intervene accordingly,” the GMD stated.

    He disclosed that an attack on the Port Harcourt – Aba a few days ago resulted in massive products loss and damage to the environment, adding that though there was no loss of lives in the incident, it took much effort and time to bring the huge fire that broke out under control.

    “We will use this opportunity to call on pipeline vandals to please keep away from our pipeline because they are not carrying liquid that can easily be handled like water. We are calling on the general public that when they see the sign on the pipeline, they should not temper with in their own interest and that of the nation,” Dr. Baru pleaded.

    He said the Corporation would stop at nothing to ensure that the pipelines were continuously monitored and that anybody caught trying to sabotage oil facilities would be handed over to the law enforcement agency to face appropriate sanctions, adding that in the Port-Harcourt – Aba pipeline incident one suspect was apprehended and handed over to the authorities.

    Dr. Baru urged members of the public to support NNPC by reporting any suspicious activity around pipelines and other oil and gas facilities, stressing that the Corporation, on its own part, would do everything possible to ensure the safety of lives and property around its facilities.

    Shedding light on NNPC’s safety practice, the GMD said that in view of the complex and technical nature of its operations, the Corporation accords safety a special priority.

    “We are very much determined to ensure that our processes and procedures meet the highest safety standard. Dealing with inflammable liquids and gasses requires utmost care. Our watchword to ensure that is: Safety to one is safety to all; that defines how we handle safety issues,” the GMD said.

    He said NNPC held HSE Week annually across its subsidiaries to sensitise personnel, contractors and visitors on the need to adhere strictly to its safety standards, adding that the Corporation’s safety policies and procedures were reviewed regularly to comply with the highest safety standards.

    Speaking at the event, the leader of the delegation and Regional President of OSHA, Nigeria Branch, Dr. Dalhatu Mohammed Ahmed, stated that the purpose of their visit was to carry the GMD along in their drive to ensure safety of workers and equipment in view of the position occupied by the NNPC in the Nigerian economy as one of the largest employer of labour in the country and major revenue earner.

    Dr. Ahmed applauded the GMD for his numerous initiatives to ensure safety of staff and assets across the corporation’s value chain.

    “I want to commend the efforts of the GMD as far as safety of lives and property is concerned in the corporation. It is interesting to see that the NNPC has done a lot in terms of safety. Safety is everybody’s business as it is a multi-dimensional issue that requires multi-dimensional approach,” Dr. Dalhatu averred.

    The GMD and the NNPC General Manager, Health, Safety and Environment, Mr. Ahmed Shehu were conferred with a fellowship of the association.

  • Petrol prices to dip as Nigeria exit recession – IPMAN

    Petrol prices to dip as Nigeria exit recession – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), Vice National President, Alhaji Abubakar Maigandi Monday forecast that following the nation’s exit from recession, the prices of the Premium Motor Spirit (PMS) also known as petrol will dip further very soon.

    Speaking with The Nation on phone, he said that the economy will now improve for more people to buy and drive more car, which is bound to increase the turnover of some of the petrol stations and further attract more marketers to supply more and drag down the prices of petrol.

    His words: “Now that Nigeria is out of recession, more people will be able to buy cars and demand for petrol to drive them. The demand will attract petrol marketers to supply to a glut level that will further dip the pump prices.”

    The forces of demand and supply and their inherent competition have already crashed the pump prices to N139 per litre in A.A. Rano on Kubwa expressway, Abuja, N140 per litre in Shema on the same road while other marketers sell for N142.

    All the Nigerian National Petroleum Corporation (NNPC) affiliate stations have however pegged their prices at N143 per liter while other major marketers as Total and others still sell at the maximum band of N145 per liter.

    Customers have apparently abandoned those selling for N145 per litre to a matter of last alternative, especially for visitors and taxis that run out of fuel completely.

    Maigandi commended the federal government on the provision of an enabling environment that led to the interplay of the market fundamentals that crashed the pump prices.

    He also commended the government on the policies that have culminated in easy access to the petrol, adding that “it is no longer difficult to get it in any filling station.”

    Maigandi noted that selling above pump price has suddenly become history as customers no longer buy from such marketers.

    He however had his reservation concerning the manner that the NNPC market kerosene and diesel, saying that their sales are still characterized by corrupt practices.

    According to him, marketers cannot access the products without going through the middlemen that cut corners in the depots across the country.

    He lamented that the Petroleum Equalization Fund (PEF) is still owing the marketers billions of Naira as cost of bridging different products.

  • Quit Notice: Clark-Led PANDEF calls on agitators to rescind threat

    Quit Notice: Clark-Led PANDEF calls on agitators to rescind threat

    The Chief Edwin Clark-led Pan-Niger Delta Forum (PANDEF) has called on the Coalition of Niger Delta Agitators to rescind its threat to commence destruction of oil and gas facilities as well as the quit notice to the Yoruba and Northerners resident in the oil-rich region.

    The call, which was contained in a statement issued and circulated to journalists in Warri yesterday by the PANDEF’s Coordinating Secretary, Dr Alfred Mulade, noted that the call and threat by the agitators were not viable options, especially as the body was already making progress in its peaceful approach.

    According to the statement, the PANDEF, led by Ijaw national Leader and elder statesman, Chief Clark, had in recent times engaged the federal government on critical issues concerning the peace and stability of the region, including the items raised on the famed 16-point agenda and most recently, on the issue of the appointments at the Nigerian National Petroleum Corporation (NNPC), which had grossly marginalised the interest of the Niger Delta people.

    Assuring the restive agitators of the possibilities of the alternative peaceful approach, which it said its team had been working on, in conjunction with stakeholders from other regions of the country, the PANDEF, therefore urged them to rescind their threats and remain calm as all efforts to achieve restructuring and ultimate peace bring fruits forward.

    “We are also asking the Federal Government to revisit the various appointments recently made in the Nigerian National Petroleum Corporation (NNPC) and all its subsidiaries, whereby Niger Deltans are grossly marginalized and excluded. Almost all the NNPC Board members,
    top and middle levels appointment are being held by northerners.

    “Of particular note now, are the recently made 55 appointments, for which we have made a strong case to government, for a reversal. This issue has been sufficiently addressed by our National Leader, Chief Dr. Edwin Kiagbodo Clark, and published in two pages, in the Vanguard
    Newspaper of Wednesday, September 6, 2017.

    “Destruction of oil and gas assets and quit notice to northerners and Yorubas to vacate the region and threat of secession are not viable options. PANDEF is at the forefront of the advocacy of restructuring of this country, as the most viable alternative which is being pursued with all vigour, in collaboration with the South-West, South-East, the Middle-Belt and some prominent personalities from the Northern parts of this country.

    “PANDEF therefore urges the Coalition of Niger Delta Agitators to rescind their threats of destruction, quit notice and secession, to remain calm, patient and patriotic, as we re-double our efforts towards the peaceful resolution of the challenges in the region, including the restructuring of the country along the lines of fiscal federalism,” the statement said.

  • NNPC, ExxonMobil fine-tune strategy for improved production

    NNPC, ExxonMobil fine-tune strategy for improved production

    The Nigerian National Petroleum Corporation (NNPC) and its upstream joint venture partner, ExxonMobil, are seeking new measures to expand existing operational portfolio with a view to increasing crude oil production and availability of gas for power generation.

    Speaking in Abuja after a meeting with a high-powered ExxonMobil delegation led by Mr. Jack Williams, Senior Vice-President of the United States-based global oil Corporation, Group Managing Director of NNPC, Dr. Maikanti Baru, said the joint venture with ExxonMobil, which until recently was the highest producer of crude oil in the country, was primed to make a rebound.

    He said the Corporation had advanced talks with ExxonMobil on major operational issues like improved drilling to increase production and refurbishment of crude oil pipelines as well as supply of gas to the planned Qua Iboe Independent Power Plant among others.

    Baru, according to the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu’s statement Thursday said: “More importantly we also discussed their recommitment to supply gas to the domestic market and this is something that is very positive and they are willing; we would quickly roll-out the programme to ensure that sufficient gas comes in for the IPP. We also secured a commitment from them to end gas flare at QIT and other production areas.”

    Describing the meeting as very fruitful, Williams on his part noted that ExxonMobil was committed to growing its production in Nigeria ’’safely and with much integrity’’.

    To underscore its aspiration for growth in production, Williams hinted that ExxonMobil was set to increase its JV budget for 2018 operations.

  • NNPC, Total sign agreement to deliver without pipelines

    NNPC, Total sign agreement to deliver without pipelines

    The Nigerian National Petroleum Corporation (NNPC) Tuesday signed a Joint Venture agreement with the Greenville Oil and Gas Co. Limited and Total for the production and distribution of Liquified Natural Gas (LNG) from Rumuji, Rivers state without pipelines to other parts of Nigeria, especially in the north.

    It is the pioneer Nigerian LNG that will distribute gas using special trucks for domestic consumption, by creating a virtual gas pipeline to supply natural gas to those regions not served or under served by physical pipelines.

    The project which stretch for about 1,000Km is said to have the capacity of creating numerous jobs for truck drivers, attendants and others.

    Speaking at the ceremony in Abuja, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, noted that the negotiation of the agreement had been on in the past three years.
    He said the agreement which would in the first instance produce 250 Standard Cubic Feet per can increase to 500SCUF per day in the long run.

    According to him, the “agreement will help us unlock undeliverable opportunities in terms of supply to power and supply entities. It will help some of the oil companies to meet up with their Direct Supply Obligations that they had earlier signed that they have been unable to execute.”

    He added that “we need to find our ways that in the absence of sufficient trucking to put pipelines in place very rapidly we needed to look for new technology. And we had been having this conversation over the last two three years. We started first by looking at the structure in which the gas and power of NNPC was working and we set up two companies -the NGLC which is the marketing company itself and of course the NGPTC, which is supposed to deal with the infrastructural provision.”

    The minister predicated the success that led to the signing of the agreement on the calmness in the Niger Delta which will enable the company access the gas.

    He said that the pioneer gas trucked project is coming as a challenge and opportunity to other investors that have been looking for a way to access and distribute gas in the absence of pipelines.

    Continuing, he said that “this doesn’t take away the need for pipelines. We are going to continue providing pipelines. But what is there is that we no longer can wait. We can actually move in a very robust manner and to get gas up in the north.”

    Kachikwu noted that what is still needed to be done is ensure that the payments issues are dealt with and the financing is being smooth for both the producer of the gas and the individuals who take responsibility to distribute it are both adequately paid.

    The minister stressed that “I think we will be working with you as federal government agencies once we begin to deploy to places like NNPC, the Central Bank, the Senate to ensure that payment under the new system are made on time. So that there is a good financing and funding for you to do the future expansion project.

    Kachikwu said: “The first one is 220 per day but it has the capacity to go up to 5,000 per day. So it is quite massive. So what you find is that over the next three to four years if the right finances are put in place and adequate patronage and market is created this could actual metamorphose into the avenue for deploying gas in the country.”

    He urged other investors to emulate the model especially at the centre where people can afford to pay the right kind of pricing for the supply of power.