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Tag: Nigerian National Petroleum Corporation (NNPC)

  • NNPC picks 15 firms to lift crude

    A CONSORTIA of 15 conglomerates, comprising reputable and experienced international companies and downstream operators, have been picked by the Nigerian National Petroleum Corporation (NNPC) as partners for the Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP).

    The list released on Sunday by the Corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu include: BP Oil International Limited/AYM SHAFA Limited; VITOL SA/Calson-Hyson; Total Oil Trading SA/Total Nigeria Plc; Gunvor Group Limited/AY Maikifi Nigeria Limited; Trafigura Pte Limited./A. A. Rano Nigeria Limited; Compañía Española De Petróleos, S.A.U. (Cepsa)/Oando Plc; and Mocoh Sa/Mocoh Nigeria Limited.

    Also listed are Litasco SA/Brittania-U Nigeria Limited/Freepoint Commodities; MRS Oil & Gas Co. Limited; Sahara Energy Resource Limited; Bono Energy Limited./Eterna Plc/Arkleen Oil & Gas Limited./Amazon Energy Limited; Matrix Energy Limited./Petratlantic Energy Limited./UTM Offshore Limited.

    The others are: Ughanadu listed Levene Energy Dev. Limited; Mercuria Energy Trading Sa/ Barbedos Oil & Gas Services Limited, Rainoil Limited, Petrogas Energy Trade West Africa Limited; Asian Oil & Gas Pte Limited, Eyrie Energy Limited,  Masters Energy Oil & Gas Limited, Casiva Limited and Duke Oil Incorporated, as among the successful bidders.

    Read Also: NNPC unveils 15 crude buyers, products suppliers

    In all, about 36 firms would be involved in the exercise since the list incorporates conglomerates and their affiliates.

    The move, the statement said, is in line with the corporation’s Group Managing Director, Mallam Mele Kyari’s pledge on assumption of duty last month that the NNPC under his leadership would continuously entrench transparency and accountability.

    Under the DSDP arrangement, the 15 consortia/companies shall over the contract period, off take crude oil and in return, deliver corresponding petroleum products of equivalent value to NNPC, subject to the terms of the agreement, Ughamadu said.

    He said: “Following the successful completion of the 2019/2020Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) tender exercise, 15 consortia made up of reputable and experienced international companies and Nigerian downstream companies were successful as the DSDP partners for the 2019/2020 DSDP contract.

    The tender process, he pointed out, comprised the “ technical bid submission, evaluation and shortlisting, commercial bid submission, evaluation and shortlisting, commercial negotiations and contract agreement execution,” adding that in keeping faith with the NNPC’s commitment to transparency, the under listed 15 consortia would be “lifting Nigerian crude oil grades in exchange for delivery of the corresponding petroleum products on value for value basis in line with the executed agreement.”

    He said this process was in tandem with the earlier pronouncement of NNPC Group Managing Director, Mele Kyari, that  under his leadership, the Corporation, “ will strive to be more credible, competent and accountable institution that manages the oil resources on behalf of the citizens of Nigeria in accordance with its mandate and the core persuasions of President Muhammadu Buhari,” stressing that for NNPC to maintain positive image, “there must be transparency, shared values of integrity and professionalism among its members of staff.”

  • Kyari urges professionals on pipeline security

    THE Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has tasked members of the Pipelines Professionals Association of Nigeria (PLAN) to come up with appropriate technology to stem the current challenges associated with oil and gas pipelines vandalism.

    A statement from the oil firm on Thursday stated that Kyari threw the challenge while playing host to the executive members of PLAN who paid him a courtesy visit at the NNPC Towers, Abuja.

    He noted that security and integrity of pipelines were a big challenge in the industry, and called on all stakeholders to collaborate to arrest the situation.

    “For us, what is of concern is the safety and security of our existing infrastructure, beyond just laying and maintaining the pipelines, their security is an issue for us today, the Association needs to focus on that, and we can ensure greater efficiency. We count on you in that regard because about 70 per cent of pipelines in the country belongs to NNPC,” the GMD stated.

    Read Also: Fuel import to end in 2023, says Kyari

    He said the corporation was working in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to optimise the participation of Nigerians in pipeline construction and to get more value from them.

    Speaking earlier, the Chairman of PLAN, Mr. Geoff Onuoha, assured the GMD of their support while expressing their readiness to work with him to actualise his vision for the industry.

    “You want this industry to work well, you have made it clear that you want the refineries to work. Pipelines are the critical arteries to the refineries, we want to let you know that we are willing to work with you,” Mr. Onuoha said.

    On his part, the Director-General and Chief Executive Officer, Infrastructure Concession and Regulatory Commission, Engr. Chidi Izuwa, said there was need to infuse private capital in pipeline infrastructure, adding that his commission was ready to collaborate with NNPC to drive investment in the pipeline sub-sector using the public private partnership (PPP) and concessions models.

    “We are going to work closely as PLAN, as ICRC, with NNPC to achieve this very objective which is in tandem with the objective of this administration”, Izuwa stated.

  • NEITI to engage NNPC regularly

    THE Nigeria Extractive Industries Transparency Initiative (NEITI) says its constant engagement with the Nigerian National Petroleum Corporation (NNPC) on its operations was based on its mandate to promote corporate ethics, transparency and accountability in the oil and gas industry.

    Its Executive Secretary, Waziri Adio made the clarification in Abuja while on a courtesy visit to the NNPC Group Managing Director, Mr. Mele Kyari.

    According to a statement, Adio advised Kyari and his team to publish the Corporation’s audited financial reports and expand on what had been achieved so far towards making NNPC’s operations open and accountable.

    He also reminded the GMD of the need for the NNPC to take up its full responsibility in the implementation of the new Extractive Industries Transparency Initiative (EITI) standards on Beneficial Ownership disclosure, Commodity trading, Mainstreaming and application of the 2019 EITI global standard approved in Paris, France.

    Read Also: NNPC to re-start Chad Basin oil search

    Adio said the impression that NEITI report was never complete without an attack on NNPC’s operations was a misconception the agency’s role as an anti-corruption watchdog in the oil, gas and mining sector.

    “We have nothing against the NNPC; we request that it runs an open, transparent and accountable process required to build public trust and citizens’ benefits of the abundant natural resources in the country,” he was quoted to have said in the statement.

  • NNPC to re-start Chad Basin oil search

    THE Nigerian National Petroleum Corporation (NNPC) on Tuesday expressed its preparedness to re-commence full oil search at the Chad Basin, Gongola and Benue Trough. It is therefore seeking for military support for the protection of its workers and high-tech equipment.

    Its Group Managing Director, Mallam Mele Kyari, spoke when he led top Management of the NNPC on a visit to the Chief of Defence Staff, Gen Gabriel Olonisakin, at his office in Abuja.

    The GMD also urged the public not to drag the Corporation into politics in the guise of requests for information under the Freedom of Information Act.

    He spoke during a courtesy visit by the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Waziri Adio, to the NNPC Towers in Abuja.

    A statement by the state-run oil firm, stated that due to the security challenges in the Chad Basin, Gongola and Benue Trough, the NNPC had not been able to mobilise fully to those areas of its important operations.

    He said: “Am visiting the Chief of Defence Staff as my first port of call following my appointment to seek for the support of the Armed Forces to help the NNPC in re-entering the Chad Basin, Gongola and Benue Trough to enable us carry out our mandate for national development. Your support in terms of providing full security for staff and equipment is critical to us.”

    He added that the Corporation equally required the military to intensify efforts in the protection of NNPC’s pipelines and Right of Way (RoW) across the nook and cranny of Nigeria.

    Kyari said  the NNPC was seriously challenged by the nefarious activities of pipeline vandals, petroleum products thieves and other economic saboteurs that breach the operations of the Corporation in various parts of the country.

    The GMD recounted the significance of NNPC’s contributions to the national economy, saying corporation’s synergy with the Military was critical to the wellbeing of the nation’s economic lifeline.

    Responding, Gen Olonisakin described the NNPC as a strategic corporation that would be given full military support to enable it deliver on its mandate to the people.

    “It is imperative for the Armed Forces and the NNPC to collaborate and synergise for the benefit of the country going by their various strategic roles to the nation. The Armed Forces operations, code named: Operation Wase and Operations Delta Safe, along with other operations, were geared towards protecting pipelines and various oil and gas facilities,” Gen Olanisakin averred.

    Read Also: NNPC spends N15.5b on pipelines maintenance

    He said the military and the NNPC had been working together and the visit of the GMD would further bolster the various operations to secure the oil and gas installations, adding that the military had devised several strategies to stem the tide of pipeline breaches in the country.

    Speaking on the FOI Act, Kyari said: “As you are aware, sometimes the requests are brazenly malicious, and they are laden with political undertones. NNPC finds it difficult to respond to such requests because it is mindful of falling into the trap of being drawn into politics or maligning others.”

    He said in keeping with its commitment to be accountable and transparent, the corporation would publish its audited accounts soon.

    On the disclosure of contracts and contractors as requested by the NEITI boss, he said the biggest contracts in the corporation’s portfolio currently are the products supply contracts under the Direct Sales Direct Purchase (DSDP) scheme, adding that details of the contracts and the contractors would also be made public within this month.

    He promised to make the monthly financial and operations reports more accessible by publishing the soft copies of the reports from January to May, 2019.

    The Executive Secretary of NEITI, Mr. Waziri Adio, congratulated Kyari on his appointment. He said: “This is a big opportunity you have been given to shape the direction of this country in a positive way and I believe you have the capacity to do that.”

     

     

  • Don’t drag NNPC into politics, Kyari warns public

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has urged the public to be wary of attempts to drag the corporation into politics in the guise of requests for information under the Freedom of Information law.

    The GMD made the call during a courtesy visit by the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, (NEITI), Mr. Waziri Adio, to the NNPC Towers in Abuja.

    A press release by the corporation’s spokesman, Mr. Ndu Ughamadu, quoted the GMD as saying that though the corporation was committed to transparency and accountability to the Nigerian people, a line must be drawn between genuine requests for information and malicious attempts to drag it into politics using the FOI law as a cover.

    “As you are aware, sometimes the requests are brazenly malicious, and they are laden with political undertones. NNPC finds it difficult to respond to such requests because it is mindful of falling into the trap of being drawn into politics or maligning others”, the GMD explained.

    He disclosed that in keeping with its commitment to be accountable and transparent, the corporation would publish its audited accounts soon.

    On the disclosure of contracts and contractors as requested by the NEITI boss, he said the biggest contracts in the corporation’s portfolio currently are the products supply contracts under the Direct Sales Direct Purchase (DSDP) scheme, adding that details of the contracts and the contractors would also be made public within this month.

    Read Also: NNPC explains increase in price of Kerosene

    He promised to make the monthly financial and operations reports more accessible by publishing the soft copies of the reports from January to May, 2019.

    On his part, the Executive Secretary of NEITI, Mr. Waziri Adio, congratulated Mallam Mele Kyari on his appointment, saying: “This is a big opportunity you have been given to shape the direction of this country in a positive way and I believe you have the capacity to do that”.

    He said he was particularly impressed with the corporation’s robust deployment of modern information and communication platforms, especially the website, which he noted could be used as a transparency tool through pro-active disclosures.

    He said he was committed to working with the NNPC because of the GMD’s track record of integrity.

    “The GMD is somebody we can vouch for, he is a transparency champion and I can’t remember any GMD’s appointment that has elicited as much goodwill as your appointment has generated”, he said.

     

  • Omo-Agege, NNPC bicker over NGC relocation plan

    Deputy Senate President Ovie Omo-Agege on Monday tackled the Nigerian National Petroleum Corporation (NNPC) over its alleged planned relocation of the Nigerian Gas Company (NGC) headquarters from Ekpan-Warri in Delta State.

    The NNPC had in a statement, described as unfortunate statement credited to Sen. Omo-Agege where he reportedly condemned alleged moves by the Corporation to relocate NGC headquarters from the Niger Delta region.

    While calling on NGC host communities and other stakeholders to disregard the relocation tale which it described as totally false, the oil firm maintained that Sen Omo-Agege has “been misinformed or was quoted out of context noting that the subject of relocation of NGC was never on the table for deliberation by the NNPC management.”

    Responding to the NNPC statement yesterday, the Special Adviser, Media and Publicity to the Deputy President of the Senate, Mr. Yomi Odunuga, said his principal spoke from an informed position.

    Read Also: Omo-Agege, NNPC tangle over NGC relocation plan

    “Our attention has been drawn to a statement credited to the NNPC stating that the Deputy President of the Senate, Distinguished Senator Ovie Omo-Agege, was either misinformed or must have been quoted out of context in his plea for multinational oil  companies to relocate their headquarters to the Niger Delta region.

    “Specifically, he had sought a commitment that the planned relocation of the headquarters of the NGC from Ekpan-Warri in Delta State should be dropped as it’s relocation could jeopardise developmental strides in the area.

    “While it is gratifying that the NNPC, in the statement signed by its General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, has assured all the stakeholders in the region that neither  the NGC nor any of its other subsidiaries would be relocated outside the area of operation, the following clarifications have become necessary.

    “First, there has been widespread anxieties among stakeholders in the Niger Delta over alleged plans for the relocation of the NGC; it has been on the front burner for many months before the Deputy President of the Senate drew attention to it during the ministerial screening.

    “The issue, it must be stressed, was the focus of a peaceful youthful protest by Niger Delta youths earlier in January this year at the premises of the NGC and this disrupted the activities of the gas firm until an official from the Delta State Government and other stakeholders  intervened and normalcy was restored. This particular event was widely reported and it was given ample coverage in The Guardian newspaper of January 8, 2019 with the title “Delta youths protest against planned relocation of gas company.’

  • NNPC explains increase in price of Kerosene

    The Nigerian National Petroleum Corporation (NNPC) has attributed the increased in the price of household Kerosene in the country to the pressure of demand and supply.

    The NNPC Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, told the News Agency of Nigeria (NAN) on Sunday in Abuja that the price of the product had been deregulated.

    “The point remains that the prices of the kerosene is deregulated.

    “It is not as controlled with reference to Premium Motor Spirit (PMS) known as Petrol, that is why we see the prices moving up and down.

    “The important thing is that the trend you are seeing there had to do with supply and demand. The more the demand, the higher the price locally,’’ he said

    Ughamadu said that the NNPC remained the sole importer of the product and had been augmenting it with the skeletal production from the refineries.

    He reiterated the commitment of the corporation to the adequate supply of petroleum products for Nigerians.

    “The corporation is doing everything to ensure that we import more volumes of kerosene because, we believe that this is the energy source that the low income earners in the country use,’’ he added

    A check by NAN in some outskirt of the Federal Capital territory indicated that the price of Kerosene ranged between N400 and N500 per litre.

    NAN reports that most filling stations along the Kubwa express road, Dutse, and Zuba hardly sell the product.

    Most of the consumers buy the products from the road side.

    Read Also: NNPC has no secret account — Kyari

    At Dutse market, the price was N400 per litre while within Kubwa it is sold between N450 and N500 per litre.

    Mrs Halima Saidu, a seller at Kubwa village market, told NAN that she buys from filling stations at different prices.

    “I sell at N450 per litre now but if I buy at higher price at the filling station, I will sell above that,’’ she said.

    It will be recalled that he National Bureau of Statistics (NBS) in its National House hold price watch in June said the average price per litre paid by consumers for Kerosene increased to N316.43 in June 2 from N315.91 in May.

    The NBS said the price of kerosene increased by 0.17 per cent month-on-month and 13.14 per cent year-on-year in the period under review.

    The report said states with the highest average price per litre of kerosene were Anambra at N381.25; Abia, Bayelsa and Akwa Ibom N356.67 and Enugu N352.78.

    NAN

  • NNPC denies plans to relocate NGC’s HQ from Niger Delta

    The Nigerian National Petroleum Corporation (NNPC) has for the umpteenth time assured stakeholders in Delta State and the Niger Delta in general that it has no plan to relocate the headquarters of its subsidiary, Nigerian Gas Company (NGC) from its present location in Delta State to somewhere outside the region.

    The NNPC in a press release issued by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu described as unfortunate statement credited to Deputy President of the Senate, Sen. Ovie Omo-Agege where he reportedly condemned alleged moves by the Corporation to relocate NGC headquarters from the Niger Delta region.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this known in a statement on Sunday.

    Read Also: NNPC warns violators of pipelines’ right-of-way

    While calling on the NGC host communities and other stakeholders to disregard the relocation tale which it described as totally false, the Corporation maintained that the Deputy President of the Senate may have either been misinformed or was quoted out of context noting that the subject of relocation of NGC was never on the table for deliberation by the NNPC management.

    The Corporation assured that the focus of the current NNPC management under the headship of Mallam Mele Kyari is to ensure harmonious relationship with stakeholders and host communities in such a way as to entrench a win-win scenario for all concerned.

  • NNPC warns violators of pipelines’ right-of-way

    The Nigerian National Petroleum Corporation (NNPC) has raised the red flag on what it called “flagrant and dangerous” violation of its pipelines’ right-of-way by some individuals and communities along the corridor of the system 2E pipeline network stretching from Port Harcourt (Rivers State) through Aba (Abia), Enugu (Enugu) up to Makurdi (Benue).

    In a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the NNPC said the infringement on the statutorily guaranteed 25-metre setback for the infrastructure was not only detrimental to the free flow of petroleum products but was far more harmful to dwellers of illegal structures and shanties due to the combustible nature of hydrocarbon.

    The corporation noted the inseparable link between the cases of oil pipeline right-of-way-encroachment and incessant pipeline vandalism cum oil theft with attendant negative effect on the economy.

    According to the NNPC, the creation of the minimum 25-metre buffer for the pipeline is designed to allow for maintenance, repairs and replacements of pipelines as need may arise while ensuring the security and safety of the facility.

    Read Also: NNPC secures $3.15b financing for OML 13

    The buffer also ensures that those living contiguous to the lines are shielded in cases of leakage, rupture or explosion, the corporation said.

    It added that as a first step towards eventual removal of such structures by the team of Army Engineering Corps, its downstream subsidiary, the Nigerian Pipeline and Storage Company (NPSC), embarked on extensive consultation and enlightenment targeted at violators in affected communities.

    The corporation noted that the safety and wellbeing of the people remained paramount to its management.

    The NNPC explained that based on penetrating reconnaissance executed by the Army engineers – stretching from Ogale-Eleme community in Port Harcourt-Aba axis to Otade community in Enugu-Makurdi leg – structures in violation of the pipeline safety corridor have been identified and clearly marked with notice of imminent removal served on affected occupants.

    The corporation noted that the essence of the red flag was to bring urgency to the situation along the PHC-Aba-Enugu-Makurdi line whose level of violation is about 75 per cent stating that the position is intolerable with clear cases of individuals channelling products into private homes.

    “Such incidents are not only crystal clear cases of economic sabotage but pose unimaginable danger to the entire neighbourhood,” the statement said.

     

  • Row over account with N50 billion

    THE Federal Government has initiated a legal process for a permanent takeover of an  account, which it believes  the Nigerian National Petroleum Corporation (NNPC) is operating without its knowledge.

    The First Bank of Nigeria (FBN) account has a balance of over N53 billion as at January (2019) ending.

    In the documents filed before the Federal High Court in Abuja, the Federal Government said it was exercising its powers under the Recovery of Public Property (Special Provision) Act to apply for the takeover of the account.

    Acting on behalf of the Federal Government, the Special Presidential Investigation Panel (SPIP) for the Recovery of Public Property said it stumbled on the account while “investigating a petition against a ‘slush’ funds held in a fictitious account named: NNPC/NOAC IPP Security Account, suspected to be proceeds of corrupt practices.”

    The plaintiff gave details of the account to include: bank: First Bank of Nigeria Plc; currency type: Nigerian naira; account number: 2006367288; account type: current account and account name: (NNPC/NOAC IPP Security Account.

    It stated, in a supporting affidavit deposed to by one of the plaintiff’s lawyers, Peter Abang, that the SPIP found, among others, that the:

    • account holders are unidentifiable persons and/or public officers, who disguised themselves in the name and style of NNPC/NOAC IPP Security Account, which is fictitious and did not follow any known due process in account opening.
    • account being operated with the first defendant (First Bank) is reasonably suspected to be a diversion of public funds, hidden in the account for private use of the unidentified persons operating the account.
    • first defendant, in concert with persons unknown, is at the verge of moving the entire sum into an unknown account.
    • second defendant (Nigerian Interbank Settlement System Plc) is empowered to monitor all electronic inter and intra banking transactions in Nigeria, including the account herein in issue.

    The plaintiff stated that it was empowered by the Recovery of Public Property (Special Provision) Act and the Rules of the Federal High Court, “to apply to take possession of assets suspected to be proceeds of corrupt practices, including the humongous money standing in the account referred to in paragraph 4(iv) above.

    Read Also: NNPC records N6.33b trading surplus in May

    “The plaintiff cannot have final forfeiture of the said money in the account without an order of this honourable court.”

    The plaintiff is praying the court for, among others, a “final order of forfeiture of the account”, and order directing First Bank to transfer the funds in the account to the plaintiffs, and an order of perpetual injunction restraining the bank from further operating the account.

    Both First Bank and the Nigerian Interbank Settlement System (NISS) have responded to the suit, denying any wrong doing.

    First Bank claimed that the account was not being used for unlawful activities and that the President exempted it from the Treasury Single Account (TSA) policy. The NISS denied knowledge of all activities in the account.

    The bank, listed as the first defendant, put the balance in the account at N53, 458,725,303.62 as at January 2019.

    Explaining the status of the account, referred to a letter dated July 19, 2016 which it claimed was from the Central Bank of Nigeria (CBN), addressed to its Managing Director, directing the bank to continue the operation of the account in compliance with the approval of the President.

    The bank said the NNPC/NOAC IPP Security Account (2006367288) “is a security account for the Joint Venture between the NNPC, Agip Oil Company Limited and Philips Oil Company (Nigeria) Limited for payments in respect of power generated to the Federal Republic of Nigeria.”

    It added that the account “has the approval of the President to be exempt from the Treasury Single Treasury Account (TSA).

    “The first defendant has been operating the account lawfully in view of its being exempt from TSA by virtue of the Presidential approval.

    “The balance in the account is not being dissipated as it is a security account. The forfeiture application is a breach of the President’s approval to exempt the account from TSA,” First Bank said.

    NISS, listed as the second defendant, stated that it lacked “the capacity, by virtue of its scope of operations, to monitor electronic inter and intra ‘banking transactions, but processes all inter-bank payments in order to remove potential bottlenecks associated with inter-bank funds transfer and settlement.”

    The NISS added that it “operates the Nigeria Automated Clearing System (NACS), which facilitates the electronic clearing of cheques and other paper based instruments, electronic funds transfer, Automated Direct Credits and Automated Direct Debits.”

    It stated that it “is not a money bank” and that, by its operations, it “does not have direct access to funds and does not engage in banking operations whatsoever”.

    On July 15, 2019, Justice Ijeoma Ojukwu vacated an earlier interim order, made by the court, freezing the account pending the conclusion of investigation by the plaintiff.

    The hearing in the case has been fixed for October 9.