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Tag: Nigerian National Petroleum Corporation (NNPC)

  • NNPC boss, executives sign performance bond

    NNPC boss, executives sign performance bond

    The journey to the transformation of the Nigerian National Petroleum Corporation (NNPC) into a commercially focused and profitable business organization has been taken a notch higher with the signing of a performance bond by the Chief Operating Officers (COO) of the five Autonomous Business Units and two Directorates with the Group Managing Director, Dr. Maikanti Baru.

    The performance bond, tagged: “Corporate Scorecard Key Performance Indicators (KPIs)”, constitutes the key deliverables for the Upstream, Downstream, Refineries, Gas & Power, and Ventures Autonomous Business Units and the Finance & Accounts and Corporate Services Directorates for 2017, serving as key business objectives that each of the units would pursue and is expected to achieve.

    It’s statement that made the announcement said that the signing of the performance bond took place at the end of a two-day Top Management Retreat and Performance Dialogue which ended yesterday  in Abuja.

    Speaking on the significance of the Corporate Scorecard Key Performance Indicators (KPIs), Dr Baru said it was the corporation’s way of setting up a system for measuring performance with a view to driving every unit and every staff of the corporation towards achieving strategic business goals.

    According to the GMD, they form the benchmark against which the performance of each of the Autonomous Business Units will be evaluated at the end of the year.

    “These Key Performance Indicators will be the basis for evaluating each ABU’s performance. These KPIs are expected to be cascaded down to the individual business units by the COOs and down to individual staff by the respective Managing Directors and Executive Directors of the Strategic Business Units (SBUs). At the end of the day, we are going to add up the various inputs from individual staff, up to the SBU, to arrive at the performance of each ABU by the end of the year”, Dr Baru explained.

    He said subsequently, the extent of the achievement of the KPIs by each of the Autonomous Business Units would be used to determine how much of the 13th month bonus the staff of each ABU will enjoy at the end of the year.

    On the objective of the retreat, the GMD said it was organized to review the report of the committees set up to align the implementation of the 12 Business Focus Areas (BUFA) with the 20-Fixes and to review recent management policies as well as the performance of the corporation in the first quarter of 2017.

    He charged members of the Top Management to brace up for challenges ahead with a view to rising above them to position the corporation for profit. 

  • NNPC, partners to boost domestic gas supply by 285%

    NNPC, partners to boost domestic gas supply by 285%

    • lists seven critical gas projects to fast-track execution 
    In a bid to realise the Federal Government’s mandate to deploy the nation’s gas resources to stimulate economic growth, the Nigerian National Petroleum Corporation (NNPC) and its partners have evolved a scheme to grow gas supply for domestic consumption by 285% from 1.3billion standard cubic feet per day to 5bscf/d by 2020.
    This was disclosed at the 7 Critical Gas Development Projects (7CGDP) stakeholders’ meeting on Tuesday at the NNPC Towers in Abuja.
    The stakeholders made up of NNPC and seven  other oil and gas companies listed the seven (7) projects earmarked for fast-track execution to meet the 285% domestic gas supply growth projection to include: Assa North-Ohaji South Field Development (ANOH); Oil Mining Lease 24 and OML 18 Joint Development and Shell Petroleum Development Company Joint Venture/Nigeria Agip Oil Company Joint Venture Unitized Gas Fields.
    A statement of the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued in Abuja, which contains this added that others are: NPDC’s OML 26, 30, 42 and Chevron Nigeria Limited’s OML 49 Makaraba Cluster Development; SPDC JV Gas Supply to Brass Fertilizer Company; OML 13 Cluster Development and Cluster Development of Okpokunou/Tuomo West (OML 35/62).
    Addressing the partners at the meeting, the Group Managing Director of NNPC, Dr. Maikanti Kacalla Baru, stated that the Federal Government has directed the Corporation to aggressively pursue gas development to jump start the nation’s economic growth.
    He outlined the strategic focus for achieving the Federal Government’s mandate to include growing capacity to supply enough gas to generate 15Gigawatts of electricity to the power sector by 2020, stimulating gas-based industrialisation by positioning Nigeria as the African regional hub for gas-based industries such as Fertilizer, Petrochemicals, Methanol and developing gas for export by selectively expanding export footprint in high value and strategic foreign markets.
    He said appropriate funding for the seven (7) critical gas projects should be a priority and a key success factor, adding that alternative funding through third party financing option would be adopted to facilitate execution of these vital projects.
    The GMD urged the partners to work together to ensure that the critical gas projects were executed expeditiously for the benefit of the country, adding that NNPC Top Management was available to work with all stakeholders to ensure timely delivery of the projects.
    Responding, the Managing Director of Shell Petroleum Development Company (SPDC), Mr. Osagie Okunbor, applauded the GMD for his uncommon focus to ensure optimal production and delivery of gas to power, industry and for export, assuring that with proper alignment of the key parties, the projects would be delivered as scheduled.
    Endorsing the partnership, the Director of Department of Petroleum Resources, Mr. Mordecai Ladan, who was represented at the meeting, assured the stakeholders that the DPR would provide all the needed support to ensure the timely delivery of the projects.
    Present at the meeting were the seven (7) critical stakeholders which include: Shell Petroleum Development Company (SPDC); Nigerian Agip Oil Company (NAOC); Nigerian Petroleum Development Company (NPDC); Chevron Nigeria Limited (CNL); Seplat Petroleum Development Company PLc; Newcross Exploration and Production Limited and Eroton Exploration and Production.

  • Union tasks FG to involve farmers in formulating agricultural policies

    Dr Yakubu Ugwolawo, President, National Agricultural Production Cooperative Union of Nigeria (NAPCUN), on Monday, advised government authorities to involve farmers in the formulation of agricultural policies.

    Ugwolawo, made this disclosure in a statement issued at the end of the farmer’s cooperative stakeholders’ meeting in Abuja.

    He said that lack of active participation in policy formulation by farmers had resulted in the diversion of funds allocated to agriculture.

    The NAPCUN president called on the present administration to provide a platform that would facilitate farmers’ active participation in agricultural policies by encouraging credible farmers’ cooperative societies.

    Ugwolawo underscored the need for proper organisation of farmers to formidable cooperative societies to enable them benefit more from government agricultural programmes.

    He said that NAPCUN was conceived to be a tool for revamping the Nigerian agricultural sector and addressing the current economic challenges facing the country.

    The NAPCUN president stated that the relevance of cooperative societies in agricultural schemes had received a global recognition in recent times because it had tremendously improved farming.

    He said that Nigeria should also make pragmatic efforts to key into the new tradition in its efforts to overhaul its agricultural sector.

    The statement said that Dr Chris Ogiemwoyin, former Group Managing Director, Nigerian National Petroleum Corporation (NNPC), had called for synergy among farmers for increased agricultural production.

    Ugwolawo  also advised the government to put in place mechanisms that would ensure that agricultural inputs always get to targeted farmers.

  • Reps probe missing petroleum products worth N11bn

    The House of Representatives, on Thursday mandated its committee on Petroleum Resources (Downstream) to investigate the disappearance of N11 billion worth of Petroleum products belonging to the Nigerian National Petroleum Corporation (NNPC).

    This followed a motion moved by Rep. Yusuf Tajudeen (Kogi-PDP).

    Tajudeen said that according to reports, about 84 million litres of petroleum products belonging to NNPC disappeared in February 2017.

    He added that the product! the report noted, was stored in a private Tank farm somewhere in Lagos.

    He expressed concern that the sudden disappearance of the petroleum products had led to humongous revenue loss to the Federal Government at a time when the country was experiencing massive economic downturn.

    He said ” we are aware that in its bid to make petroleum products readily available for consumers, NNPC on a regular basis has subsisting agreements with owners of Tank Farms for storage of petroleum products.

    “Also aware that the owner of the Tank Farm, when confronted, confessed to having lifted the products without authorization and agreed to either return the products or pay the monetary value within seven days.

    “However, the owner failed  to do so, hence the NNPC had to report to relevant security agencies.

    “The owner of  the Tank Farm was invited by the Department of State Service (DSS) which released him after a few days and the NNPC set up a fact finding panel which merely recommended the retirement of a few of its officials who may have connived in the deal,” he said.

    The lawmaker expressed concern that the levity with which the matter was being handled may embolden other owners of Tank Farms that had storage agreements with NNPC to divert products to the detriment of the nation’s finances.

    The motion was unanimously adopted by members when it was put to voice vote by the Speaker, Mr Yakubu Dogara.

    The committee to investigate the matter is expected to report back to the house in four weeks for further legislative action.

  • NNPC retires, redeploys staff

    NNPC retires, redeploys staff

    In line with the ongoing reforms in the Nigerian National Petroleum Corporation (NNPC), the Management Thursday announced the retirement of some staff and the deployment of others.

    The retired staff are: Mrs. Esther Nnamdi-Ogbue, Managing Director, NNPC Retail Ltd; Mr. Alpha P. Mamza, Executive Director, Operations, NNPC Retail Ltd; and Mr. Oluwa Kayode Erinoso, Manager, Distribution, NNPC Retail Ltd.

    The deployments are: Mr. Adeyemi Adetunji, Managing Director of NNPC Retail Ltd; Engr. Lawal Bello, Executive Director, Operations, NNPC Retail Ltd; Mrs. Affiong Akpasubi, Executive Director, Services, NNPC Retail Ltd; and Mr. Agwandas A. Andrawus, Manager, Distribution, NNPC Retail Ltd.

    The NNPC statement made this known Thursday said that the appointments take effect, immediately.

    Until his new assignment as the Managing Director of NNPC Retail Ltd, Mr. Adetunji was General Manager, Strategy & Planning, Gas & Power and also former General Manager, Transformation Office.

    The Group Managing Director of NNPC, Dr Maikanti Baru, charged the deployed staff to remain committed to their duties in line with the transformation aspirations of the Management.

     

  • NNPC to commercialise communication network

    NNPC to commercialise communication network

    The Nigerian National Petroleum Corporation (NNPC) will commercialise some of its critical Information Communications & Technology (ICT) infrastructure in line with its bid to re-focus the Corporation as a commercially viable entity.

    The Group Managing Director of the Corporation, Dr. Maikanti Baru, made this known while receiving the Minister of Communication, Abdur-Raheem Adebayo Shittu, who paid a courtesy call on him at the NNPC Towers, yesterday.

    The infrastructure include the over 960km of Fiber Optic Cable laid between Lagos-Benin and Warri to Kaduna on the NNPC Pipeline Right of Way; 52 remote VSAT stations nationwide and 2 Network Centres connecting all NNPC Depots and Pump Stations across the country.

    According to the statement that the corporation issued yesterday, the GMD said, “Our look-ahead plan is to commercialise our Fibre-Optics Cable Network utilizing NNPC pipeline Right of Way that cuts across the entire country. Some of the benefits of this initiative include the opportunity to provide backbone carriage to meet the National 2020 Plan for broadband penetration in the country”.

    He also expressed the Corporation’s readiness to collaborate with the Ministry of Communications in its quest to develop new ICT initiatives towards making life easier for Nigerians.

    “We are committed to supporting the Ministry of Communications to realize its ICT dreams which will not only ensure effective governance and service delivery in the country, but will also make life easier for Nigerians,” Dr. Baru stated.

    The GMD also lauded the Minister for ensuring the pursuit of the National Strategy and Roadmap Agenda which intends to increase broadband penetration from 6% to 30% by 2020.

    He told the Minister that to key into the Ministry’s laudable agenda; the NNPC had already re-strategized its ICT initiatives towards making it a hub for seamless, efficient and value-adding operations nationwide.

    According to the GMD, the NNPC also boasts of a Data Centre Facility that houses all its Data, Information and business solutions such as the Systems Applications & Products (SAP), E-mail services, collaboration solutions and specialized applications for the oil and gas industry.

    Earlier in his remarks, the Minister of Communications, Adebayo Shittu, lauded the GMD for “bringing a new lease of life to the NNPC” through reforms that were in consonance with President Muhammadu Buhari’s change agenda for the country.

    He called on the NNPC to support some of its initiatives such as the proposed ICT University, the reforms in Nigeria Communication Satellite (NIGCOMSAT), the Nigerian Postal Service (NIPOST) bank and Transport Company as well as the proposed ICT Park & Exhibition Centre.

    “With these initiatives, our intention is to continue to make the business of governance much easier for our teeming population, especially those in the rural areas,” the Minister assured.

     

  • Oil export proceeds reduce to $171.12m

    Oil export proceeds reduce to $171.12m

    The Nigerian National Petroleum Corporation (NNPC) Tuesday said that the total export proceeds of $ 171.12million were recorded in January 2017 as receipt against $175.04 million in December 2016.

    Its monthly financial report that made this known added that contribution from Crude oil amounted to $93.97 Million while Gas and miscellaneous receipt stood at $69.76 million and $7.39 million.

    The total export proceeds were remitted to fund the JV cash Call for the month of January 2017 to guarantee current and future production.

    According to the report, “total export crude Oil & Gas receipt for the period of January, 2016 to January 2017 stood at $2.57 billion. Out of which the sum of $ 2.50 billion was transferred to JV Cash Call in line with 2016 Approved Budget pending 2017 budget approval and the Exit of JV Cash Call and the balance of $0.073 billion was paid to Federation Account. However, this JVCC amount falls short of the 2016 Appropriated amount of $.8.55 billion. This is due to twin effect of production disruption in Niger-Delta and low Crude Oil prices during the year.”

    The Domestic Crude Oil and Gas receipt during the month amounted to N132.20 billion, consisting of N1.18Billion from Domestic Gas and the sum of N131.01 billion from Domestic Crude Oil.

    Out of the Naira receipt, the sum of N49.17 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account.

    The report noted that NNPC transferred the sum of N81.84 billion into Federation Account during the month under review from the net domestic crude oil receipt and N1.18Billion from Gas receipts.

    It added that “Also, the 30th installment of the refund to FG of N6.33billion was transferred. From January 2016 to January 2017, Federation, JV, and FG received the sum N736.09billion, N404.35 billion and N82.30 billion respectively.”

    NNPC said that a total export sale of $202.16 million was recorded in January, 2017. This is $6.76 million higher than the preceding month’s performance. Crude oil export sales contributed $93.97million (or 46.48%) of the dollar transactions compared with $100.37 million contribution in the previous month.

    The corporation said that also the export Gas sales amounted to $108.20 million in the month. The January 2016 to January 2017 Crude Oil and Gas transactions indicate that Crude Oil & Gas worth $2,647.61 million was exported.

    According to the report, the Group operating revenue for the months of December 2016 and January 2017 were ₦206.40billion and ₦255.43billion respectively.

    It said that: “These represent 86.89% and 107.53% respectively of monthly budget. Similarly, operating expenditure for the same periods were ₦223.40billion and ₦269.68billion respectively, which also represents 106.54% and 128.61% of budget for the months respectively.

    “NNPC has been operating in a challenging environment which limits its aspiration to profitability. However, this 18th publication (January 2017) is structured to reflect the Corporation’s ongoing restructuring exercise for the implementation of Autonomous Business Unit and the new refineries business model.

    “Overall, a trading deficit of ₦14.26Billion was recorded for the month under review as against the reported December, 2016 trading deficit of ₦17.01billion. This represents about 16% improvement compared to previous month.

    “This marginal decrease in the deficit is largely attributed to the improved NPDC Revenue and combined Refineries efficiency as well as reduction in the upstream costs by over 32% relative to last month. Other factors that affected the overall NNPC’s performance include production shutdown of Qua Iboe & Agbami Terminals, TNP & NCTL as well as the subsisting Force Majeure declared by SPDC as a result of the vandalized 48-inch Forcados export line after the restoration on 17th October, 2016 amongst others.”

     

  • No plans to increase petrol price – NNPC

    No plans to increase petrol price – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has reiterated that it has no plans to increase the pump price of petrol.

    NNPC made the denial in a statement by Mr Ndu ughamadu, its Group General Manager, Group Public Affairs Division.

    The statement explained that the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre would not lead to an increase in the pump price.

    ”There is no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

    ”The rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same templat.”

    Bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country.

    Lightering expenses involve charges for moving products to depot area from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

    ”What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders.

    ”So what the Petroleum Products Pricing Regulatory Agency, PPPRA, did was to take N1 from lightering expenses and add same to the bridging allowance.

    ”That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ it said.

    On the product supply, thr statement said as at Wednesday, the country had 1.3 billion litres of petrol which translated to an inventory of 36 days.

    “What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days.’’

    It noted that the supply availability was bolstered with the production of petrol from the three refineries in Port Harcourt, Warri and Kaduna.

    “There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries.

    ”we have informed the Department of Petroleum Resources to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

    It reiterated the readiness of the NNPC Management, under the leadership of Dr Maikanti Baru, to sustain the existing cordial relations among the NNPC, the leadership of the downstream industry unions and other stakeholders.

    It also said the DPR had been alerted to sanction fuel station owners who engageD in hoarding or charged consumers above the approved pump price of petrol.

    There had been fears that the pump price of petrol would increase following the increase in bridging costs to appease tanker drivers who went on strike to demand better working conditions.

  • NEITI urges FG to recover $21b

    NEITI urges FG to recover $21b

    The Executive Secretary, the Nigeria Extractive Industries Transparency Initiative (NEITI), Waziri Adio Tuesday called on the Federal Government to recover over $21billion unremitted fund disclosed by its independent report of the extractive industry.

    He made the call in Abuja, during an interactive session with the media, where he highlighted the policy brief, which focused on economic recovery and unremitted funds by the Nigerian National Petroleum Corporation (NNPC) and it’s upstream arm, Nigerian Petroleum Development Company (NPDC).

    According to NEITI, “findings from series of audits of the oil and gas sector carried out by the NEITI shows that NNPC and its upstream arm, NPDC, have failed to remit $21.778 billion and N316.074 billion to the Federation Account”.

    These according to the report, are amounts due from three main sources that includes: federation assets divested to NPDC and NPDC’s legacy liabilities payment for domestic crude allocation to NNPC and dividends from investment in Nigerian Liquefied Natural Gas Company (NLNG) paid to the NNPC, but NNPC has however withheld the said funds.

    These unremitted funds falls under the categories of the full payment for the 12 oil mining leases (OMLs) divested from the shell and Agip ventures. NNPC divestment of 55% of its stake in the shell JV valued at $1.8billion by the Department of Petroleum Resources (DPR).

    The audit also revealed that cash calls amounting to $552 million were erroneously paid on these divested assets by the National Petroleum Investment Management Services (NAPIMS), the investment arm of NNPC.

    The NPDC is said to have made a refund of $424 million to NAPIMS but not refunded to the federation account, the brief added that NPDC is yet to refund $148.278 million and 2.42 billion from the cash calls mistakenly paid to it.

    The brief also revealed that” unremitted revenues in this category relates to arrears of liabilities of taxes, royalties and levies. Leaving the amount owed by the NPDC at $5.531 billion and N72.435 billion.

    The brief disclosed that NNPC in its defence explained that ‘withholds DCA earnings to pay for downstream related operational costs and subsidies’, however, NEITI says there are serious doubts about such withholding as they regularly exceed actual subsidy costs.
    waziri called on the government to recover these money and use it for economic recovery and to put the economy on a sound and sustainable footing.

    He added that OMLs that have not been fully paid for, should be retrieved from the NPDC, revalued and auctioned so that the country can get proper value for the OMLs.

    The brief, in its action point, called on the federal government to investigate the status and use of NLNG dividends from 2004 to 2014 bad undertake criminal proceedings against anyone found wanting.

  • Tanker drivers’ strike paralyses loading activities in Lagos

    Loading activities at both private depots and the Nigerian National Petroleum Corporation (NNPC) depots in Lagos were on Monday paralysed as Petroleum Tanker Drivers (PTD) commenced a nationwide strike to press home their demands for enhanced welfare.

    Correspondents of the News Agency of Nigeria (NAN) who monitored the strike in Lagos observed that all tank farms in Apapa were empty, without the usual loading of products associated with depots.

    The Apapa depots visited included Total Oil and Gas, Capital Oil and Gas, NIPCO Oil and Gas, Aiteo Oil and Gas, Sahara Oil and Gas, Conoil, as well as Mobil Oil and Gas.

    The drivers were seen in groups discussing, while others were leaving the depots for unknown destinations.

    Alhaji Taofeek Lawal, the Head, Corporate Communications of NIPCO, Apapa told NAN that all depots in Apapa were empty as a result of the strike.

    According to him, there are no loading activities at present because the tanker drivers are on strike.

    He appealed to the National Association of Road Transport Owners (NARTO), PTD, NNPC representatives and other stakeholders to step in and find a lasting solution to the strike.

    Meanwhile, Alhaji Tokunbo Korodo, the South-West Chairman of NUPENG had told NAN that the Federal Government’s representatives were meeting with NARTO and NUPENG representatives, to resolve the matter.

    Korodo said that the outcome of the meeting would decide if the strike would continue or not.

    He, however, said that there was no distribution or loading of products in any part of the country.

    One of the depot officials who spoke on condition of anonymity, however, told NAN that the strike was uncalled for.

    He said that the tanker drivers should have resolved the problem with the truck owners, instead of resorting to go on strike.

    The depot official noted that the country had lost over N20 billion to the ongoing strike.

    NAN reports that the strike was as a result of some unresolved issues bordering on the welfare of workers, such as bad roads, poor remuneration, insecurity and the alleged excesses of some security agencies.