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Tag: Nigerian National Petroleum Corporation (NNPC)

  • Fuel loading disrupted in Ejigbo depot

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), on Wednesday expressed concern over disruption to loading at Ejigbo Satellite Depot by Pipelines Products Marketing Company (PPMC) in the last three weeks.

    Alhaji Ayo Alanamu, the Chairman of Ejigbo Satellite depot told the News Agency of Nigeria (NAN), in Lagos that the disruption to loading at the depot would cause fuel scarcity within the metropolis, if not addressed urgently.

    According to Alanamu, an official of Nigerian National Petroleum Corporation (NNPC) explained that routine maintenance was being carried out on system 2B pipeline network, which was yet to be completed.

    “The official said non-payment of salary to the pipelines surveillance security affected the pumping of products to the depot as the security demanded for payment before operation can commence.

    Read Also:IPMAN urges FG to increase supply of kerosene

    “We have not loaded a single product from the depot in the last three weeks and this has increased the ex-depot price in most private depots in Apapa,” he said.

    The IPMAN boss urged the management of NNPC to urgently intervene to avert another round of scarcity that could arise if not carefully managed before the weekend.

    “Today, the situation has worsened as Mosinmi and Ibadan depots now have low stock.
    “The two depots which usually load 200 trucks each on daily basis now load between 10 to 12 trucks daily,” he said.

    He said marketers would not hesitate to sell petrol above pump price of N145 per liter if private depots failed to sell petrol at the official ex-depot price.

    Alanamu said it had been a serious challenge for trucks coming from Kwara, Ilorin, Ekiti, and Kogi to load at Apapa due to the ongoing road repairs.

    A NAN correspondent, who monitored the situation at Ejigbo Satellite Depot reports that loading was no longer going on at the depot while trucks were seen parked outside.

    One of the truck drivers, Mr Musa Adamu, said, “I have been here since last week with my receipt to load after paying to bank but l was told no petrol.

    “My boss told me to wait here until they fix the problem, that is why am still waiting to load,” he said.

    However, one of the officials at the depot, who preferred not to be mentioned, told NAN that the disruption to loading was due to the ongoing maintenance on a sectional line, which had been completed.

    “I cannot confirm to you when pumping will start but you can go to Abuja and ask our bosses further questions,” the official said.

    Effort to get Mr Ndu Ughamadu, the Group General Manager, Public Affairs, NNPC, to respond proved abortive as he refused to pick his calls and failed to respond to text massages.

  • Reps to probe NNPC over $22b LNG project

    The House of Representatives is set to investigate the Nigerian National Petroleum Corporation (NNPC) over the implementation of the $22b Brass Liquefied Natural Gas project.

    The project was originally set up in 2003 with NNPC owning 49 percent while Conoco Phillips, ENI and Chevron holding 17 percent each.

    However, Kingsley Chinda (PDP, Rivers) in a motion Thursday said there is a need to investigate the implementation of the project due to several allegations of abuse and mismanagement of funds totalling about $22b meant for take-off and running of the project.

    He said: “The project has been stuck in the planning stages for more than a decade, with some western partners having pulled out because of tough operating conditions and an unfavourable investment environment.

    Read Also:Buhari directs NNPC, oil firms to release fund for Ogoni clean-up

    “What should be noted is the fact that the Federal Government’s investment in the Brass LNG project is too enormous to be treated with kid gloves, swept under the carpet or simply put aside with a wave of the hand”.

    Saying that the Senate in January 2018 raised an alarm over massive fraud in the NNPC as it relates to the Brass LNG project and voted to investigate same, Chinda regretted that nothing happened thereafter.

    “If not urgently investigated, the essence of the fight against corruption would be defeated and the Nigerian economy and indeed teeming Nigerian masses would be worse for it,” he added.

    An ad hoc committee to be constituted would carry out the investigation of the expenditure and implementation of the project within six weeks.

    The motion was unanimously adopted after a voice vote.

  • Buhari directs release of fund for Ogoni clean up

    …FG to get blue print on Niger Delta development 

     

    President Muhammadu Buhari has directed that the Nigerian National Petroleum Corporation (NNPC) and oil companies release fund within a very short period for the clean-up of Ogoni community.

    The Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachukwu made this disclosure Wednesday in the first part of an 8-Part Series Podcast that focuses on the Niger Delta and security. 

    He insisted that the president is committed to the success of the Ogoni clean up, noting that his ministry was working with the Ministry of Environment to continue the exercise. 

    His words: “The president is completely committed to the success of this. And we are working with the Ministry of Environment to continue the Ogoni clean up. The President has just directed that funds necessary for this must be released within a very short period of time so that this Ogoni clean up can actually move from the drawing board to actual practical reality. In fact, both the oil companies and NNPC to fund this sufficiently for us to move forward.”

    The minister added that the ministry has commenced a Programme to engage Ogoni in order to secure the community buy-in and participation when there is any problem. 

    The plan to make communities have faith in the government, according to him, is not restricted to Ogoni.

    Read Also:‘Ogoni people’ll never allow resumption of oil production, without broad discussion’

    Continuing, Kachikwu said that government is currently working on a framework for a community based participation in oil and gas pipelines and oil and gas assets. 

    Following the realization from inter-agencies researches that challenges were still lingering in the Niger Delta even as over $40billion had been spent in the region in 15 years, the ministry is working with the Office of the Vice President, the Ministry of Niger Delta, Niger Delta Development Commission and the corporation to do more of capacity building and economic empowerment, he said. 

    He said that from the reports, the ministry has seen the past expenditure and what is still available in the states of the region. 

    The minister said that he has set up technical committees in Edo, Delta and Imo States that are working with the governors as the chairmen to look at the volume of oil available and produced in the states, the opportunities, economic empowerment and the burning issues in the states.

    The committee, which has oil companies, the ministry and government agencies as members according to him, will also carry out the assessment in other oil producing states in order to develop a blueprint for engagement and intervention in the region. 

    He said that “If we succeed in doing that, for the first time, what we are going to have is a complete blueprint, complete local engagement, complete intervention and supervision of the Niger Delta Development module. And that is something that can be sustained for posterity.”

    The minister said that the ministry has approved the establishment of 10 modular refineries out of which two have begun construction. Kachikwu said that the two that sited in Kwale, Delta State and Ogbere , Rivers State will start yielding results within one year. 

  • BudgIT hails NNPC on plan to reduce gas flaring

    A civic technology organisation, BudgIT, has commended plans to end gas flaring by the Nigerian National Petroleum Corporation ( NNPC ).

    The organisation, in a statement by its Communication Lead, Abiola Afolabi, in Abuja on Wednesday, said the plan by NNPC to reduce gas flaring could not have come at a better time than this.

    The statement said gas flaring was not only ravaging lives in the host communities in Niger Delta, but also costing the economy over $2.5bn annually.

    “Yet the economic implications of ending this practice should significantly improve Nigeria’s power generating capacity.

    “Gas flaring also has significant impacts on the life expectancy of the ‘working poor’ and ‘have-nots’ who struggle to live within these communities,” the statement, said.

    It welcomed NNPC’s new three-point smart strategy aimed at ending gas flaring in Nigeria and also encouraged the corporation to release more information about the process, performance metrics, regulations and enabling laws that would aid in the fulfillment of this plan.

    The organisation said its recent report on gas flaring indicated that about 30 million people residing in the region were affected by unnecessary gas burning by oil companies in the region. 

    “It is therefore commendable that Dr Maikanti Baru in his speech at the 50th Offshore Technology Conference (OTC) laid out a three-point smart strategy aimed at ending the practice.

    “BudgIT is pleased with NNPC announcement to reduce gas flaring ahead of 2020 flare out deadline by the Department Petroleum Resources (DPR).

    “We urge the media, Civil Society Organizations, oil companies and the  government to ensure that this laudable initiative is monitored and implemented.

    “It is equally important to see a demonstrable plan with specified timelines of strategy implementation.

    “We believe the perennial issue of gas flaring can be contained if there’s a political will to implement the declared policies.

    “We urge the NNPC to release its monthly operational and financial reports to publish the reports for the first quarter of 2018 in line with its transparent, open and accountable practice,” the statement added.

  • BudgIT seeks transparency on N1.4tn spent on fuel subsidy

    A civic technology organization, BudgIT Nigeria, has asked the Federal Government and the Nigerian National Petroleum Corporation ( NNPC ) to open up on the N1.4 trillion spent on fuel subsidy between 2016 to 2017.

    The organization, a statement by its Communication Lead, Abiola Folabi, in Abuja on Wednesday, said it was in the interest of the publics for the NNPC and the government to explain how it arrived at the figure.

    It noted that the amount spent on fuel subsidy with those two years was more than what the country intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    The statement reads: “The Minister of State for Petroleum Resources, Ibe Kachikwu, recently disclosed a total of N1.4tn is being spent annually by the Nigerian National Petroleum Corporation ( NNPC ) as the subsidy for Premium Motor Spirit ( PMS ). This amount is significantly more than what Nigeria intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    “It is in the interest of the public that detailed information of the amount spent on fuel subsidies such as the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised should be made open and that these transactions are carried out transparently. 

    “There is a growing deficit in trust due to lack of due process in the NNPC; in March 2018, the corporation announced it spends N774m daily, roughly N23.99bn monthly as subsidy on 50 million litres of PMS consumed across the country. The public knows very little information on the beneficiaries of the subsidy payments and control process instituted to prevent theft of these funds.

    “BudgIT notes that the subsidy payments have been a contentious issue for the last 30 years. Analysts have called for its cancellation due to the lack of accountability and transparency in the administration of these funds. Also, there are arguments that the subsidy regime constituted double taxation on the populace who pay the actual market price for PMS due to lack of adequate monitoring by the Department of Petroleum Resources ( DPR ).

    “Evidence shows that amount spent on subsidising PMS is always riddled with corruption. We noted this is 2011 prior to the elections and we are worried this opacity is preceding the 2019 elections again. We are worried at the use of public resources without legislative appropriation or requisite transparency.

    “BudgIT understands that NNPC in recent times has initiated a couple of actions in trying to meet up with the global of standards of transparency and accountability including actions like publishing its monthly report on its financial and operational activities. Notwithstanding this, the lack of information on the subsidy regime, including the amount paid and the beneficiaries are locked away from public scrutiny.

    “Therefore, BudgIT urges the Federal Government, NNPC, DPR, National Assembly, the National Economic Council ( NEC ) and State governments to release details on the breakdown of the amount spent on subsidy, the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised.

    “For increased efficiency of the NNPC, there is an urgent need to plug the loophole created by the subsidy regime in the oil sector; we call on all Nigerians to demand appropriate systems to ensure that oil revenue is judiciously managed and utilised for the good of the people.”

  • NASS has assured us PIB will be passed by June – NNPC

    NASS has assured us PIB will be passed by June – NNPC

    The Nigerian National Petroleum Corporation ( NNPC ) says the National Assembly has assured that the Petroleum Industry Bill ( PIB ) will be passed by June.

    The Group Managing Director of the NNPC, Dr Maikanti Baru, said this at the 2018 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja on Thursday.

    The PIB was split into four parts namely; the Petroleum Industry Governance Bill, which had been passed, and the Host Communities, Fiscal Reforms and Downstream Bills, which are awaiting passage.

    Baru, who was represented by the NNPC Chief Operating Officer Upstream, Dr Rabiu Bello, said the Bills must be looked into in order to attract the needed N25 billion year-on-year investments to the industry.

    “In the area of policy, the popular omnibus single petroleum industry bill has been broken into three parts for quick review and passage by the National Assembly.

    “As you aware, the first part of the bill, the Petroleum Industry Governance Bill was passed by the House recently.

    “When the other sections of the bill are finally passed, it will unlock more than10 billion dollars of investment held up due to uncertainty.

    “The promise we got last week from the National Assembly was that before the end of the second quarter of this year which we see as June 30, they promise the three other bills will also be concluded and passed.

    “So, hopefully, 2018 will see the end of all the discussions around the PIB which started in year 2000,’’ Baru said.

    Baru noted that its planned revamp of four of its refineries in Kaduna, Warri and Port Harcourt, would include an upgrade of their collective refining capacities from their present 445,000 barrels per day (bpd) to one million barrels per day (mbd).

    It said once the 650,000 bpd Dangote Refinery in Lagos come on-stream, Nigeria would become a net exporter of refined petroleum products.

    Baru said the Federal Government had completed more than 500 km gas pipelines in eight years.

    “We have embarked on one of the most aggressive gas reforms and implementation.

    “Accelerated implementation of gas pipeline infrastructure development, with specific focus on critical pipeline infrastructure to power plants being put in place.

    “Between 2010 and today, almost 500 km of pipelines have been completed, commissioned and now delivering gas,’’ he said.

    He listed some of the completed pipelines to include the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km), and Ukanafun-Calabar (128km).

    “In addition, there is ongoing construction of the very strategic East-West OB3 pipeline (127km) scheduled for completion by Q3 2018.

    “The expansion of the Escravos-Lagos Gas Pipeline System is scheduled for completion by Q1 2018.

    “Most recently, the Federal Executive Council (FEC) approved the contract award of the 40-inch by 614 Km Ajaokuta-Kaduna-Kano pipeline and associated facilities.

    “This pipeline is expected to supply natural gas to power plants and industries in the northern part of the country.

    “Once completed, the nationwide backbone gas infrastructure will be in place.

    “With the effort in infrastructure development, we would have expanded supply capacity, establishing an integrated gas pipeline infrastructure grid across the entire country,’’ he said.

    The lecture had the theme: “The Nigerian Oil Industry in a world of Changing Energy Supply: Are we prepared?”

    It had panelists from across the sector charting the way forward on gas and renewable energy as oil would soon be phased out with the introduction of electric cars in industrialised countries.

    NAN

  • NNPC investing in renewable energy, says GMD

    NNPC investing in renewable energy, says GMD

    Dr Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation ( NNPC ), said on Wednesday that the company is investing in renewable energy to accelerate Nigeria’s industrial development.

    Baru said at the ongoing 39th Kaduna International Trade Fair that the NNPC had set up Renewable Energy Division not only to develop solar and other renewable energy sources, but also develop bio-fuels from agricultural produce.

    According to him, the multiplayer effects of such ventures include reviving the agricultural sector and generating huge employment.

    “It will also contribute significantly to power generation, producing high volume of animal feed, starch and other by-products.

    “Not only that, the bio-fuel will be blended to our refineries petroleum products, which will significantly reduce imports of petroleum products into the country.”

    The NNPC boss said that decades ago, mining, agriculture and commerce sustained the economy of each region of the country before oil was discovered in the 70s.

    He stressed that the feat achieved in the past, can be replicated if the nation re-channel the productive sector through holistic policy actions toward rebuilding infrastructure.

    “Key infrastructure sector that needs to be tackled include electricity, transport, information and communication, roads, water and sanitation and rehabilitation of existing oil and gas pipelines facilities.

    “It is my sincere belief that revitalising these critical infrastructure will promote efficiency in commerce, industry and agriculture.

    “This will enable the nation’s entrepreneurs compete favourably with their peers across the globe,” Baru said.

    He commended the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) for attracting discussions on opportunities for sustaining industrial growth, boosting commerce and agriculture for international competitiveness.

    Also speaking, KADCCIMA President, Dr Muheeba Dankaka, thanked the NNPC for the years of partnership toward building a robust private sector.

    Dankaka said that the Organised Private Sector was ready to partner with government agencies in building sustainable industrial sector through the exploitation of agriculture and the productive sector in general.

    NAN

  • Joint venture cash call not remitted by NNPC for five years, says Yari

    Joint venture cash call not remitted by NNPC for five years, says Yari

    Zamfara State Governor and Chairman of the Nigeria Governors Forum (NGF), Abdulaziz Yari, on Thursday reported the Nigerian National Petroleum Corporation ( NNPC ) to President Muhammadu Buhari for failure of the corporation to remit to the Federation Account the Joint Venture Cash Call for five years.

    Yari, briefed State House correspondents after closed-door meeting with President Buhari, involving six other governors at the Presidential Villa, Abuja.

    He stressed that the country was shortchanged by NNPC for five years when the oil price was about $110 per barrel and as high as the Cash Call Joint Venture.

    On the purpose of the visit, Yari who was flanked by Governors Aminu Bello Masari of Katsina State and Simon Lalong of Plateau State said: “The meeting is on the decision of NEC (National Economic Council) that the 7-man Committee was established to engage the NNPC and discuss a way forward so that we can be able to resolve the issue that is outstanding most especially on the remittances to the Federation Account.

    “Yesterday (Wednesday) the 7-Man Committee sat with the NNPC group and today (yesterday) we have come to brief the President. One of the things is about how they are paying the Joint Venture batch four and we have seen that what is being remitted to the Federation Account to the entire people of Nigeria is lower and what is being paid for the Cash Call Joint Venture is higher than what is going to the Federation Account.

    “So, we are concerned about that and NEC is concerned about that.  So they told the committee under my leadership to engage with the NNPC to discuss a way forward.” he added 

    On what was the response of the President, he said, “The entire federation is being shortchanged by those activities. The NNPC since 2010, there were no payments of Joint Venture Cash Call when the oil was $110 per barrel up to when the President took over in 2015. 

    “So why the Federation Account is always low is because they are paying dual, paying the existing and at the same time paying the arrears. 

    “So we sat down with them to fine-tune how best we are going to get our partners to understand where we are more especially now the oil has started picking and the price is becoming moderately good and then we are slightly out of recession and we want to sustain that tempo.”

    Others that attended the meeting with the President included governors Udom Emmanuel of Akwa Ibom State (PDP), Dave Umahi of Ebonyi State (PDP), Atiku Bagudu of Kebbi State (APC) and Nasir El-Rufai of Kaduna State (APC).

  • NPDC to increase oil production to 500,000 bpd before 2022

    NPDC to increase oil production to 500,000 bpd before 2022

    The Nigerian Petroleum Development Company ( NPDC ), one of the upstream subsidiaries of the Nigerian National Petroleum Corporation ( NNPC ), will increase its daily crude oil production to 500,000 barrels per day before 2022.

    This target was announced by the Group Managing Director of the NNPC, Dr. Maikanti Baru, during the inauguration of the board of directors of the company in Abuja.

    Addressing the members, the GMD who also doubles as Chairman of the board charged them to grow the company’s assets and ensure that the 500,000 barrels per day crude oil production target is met by 2022”.

    The NNPC Group General Manager, Group Public Affairs Division,  Ndu Ughamadu made this known in a statement yesterday. 
    Bsru disclosed that the company was currently supplying 50 per cent of the West African Gas Pipeline system gas, adding that it was the in thing to have more gas assets, while commending the company for leaving up to expectations.

    Baru directed that NPDC’s Memorandum of Understanding (MOUs) with host communities should be tied to the availability of the lines saying “as stakeholders, they share in both our success and losses as well”.

    Also speaking at the event, Managing Director of the company, Mr. Yusuf Matashi, said from the meteoric growth the company had witnessed since 2016, the GMD’s target of 500,000 barrels per day was realisable by 2022.

    He said the board came at an appropriate time as it would address issues of processes and procedures necessary to drive a major oil company like the NPDC, while assuring it of the commitment of the company to the growth target.

    The NPDC currently produces about 200,000 barrels per day and going by its work programme, it will increase to 300,000 barrels per day this year.

  • DPR issues 13 licenses for modular refineries

    DPR issues 13 licenses for modular refineries

    …NNPC seeks board approval for refineries’ financiers this month

    …eyes 90 per cent capacity utilization 

    The Nigerian National Petroleum Corporation ( NNPC ) yesterday said that out of the  35 interests that were indicated in modular refineries, the Department of Petroleum Resources ( DPR ) had  issued licenses to 13.

    The Group Managing Director, Dr. Maikanti Baru, who made this disclosure said that he had already been invited to the ground breaking ceremony of the first one in Bayelsa in February. 

    He said “So far, about 35 interests for modular refineries have been declared and the Department of Petroleum Resources (DPR) has issued licenses to about 13 and I have been invited to the ground breaking ceremony of the first one in Bayelsa next month.”

    Baru also said that NNPC was targeting to forward the agreements for the selection of financials for the Port Harcourt Refining Company Limited (PHRC), Warri Refining and Petrochemical Company Limited (WRPC) and the Kaduna Refining and Petrochemical Company Limited to the corporation’s board during its meeting this month. 

    The corporation’s boss, according to the statement that the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued yesterday, said that Baru 

    disclosed this while briefing members of staff of the corporation on the fuel supply situation in the country during a town hall meeting in Abuja.

    He added that once NNPC secured the funding, it would commence the rehabilitation of the refineries.

    The target, said the statement, was to achieve 90 per cent capacity utilization before the end of next year.

    He said “We are pushing towards the final selection of our financiers and we expect that when that is done, we’ll get the agreements and present them to our board, meeting this month to secure their endorsement and once we have the funding, we would start the rehabilitation of the refineries towards a 90 per cent capacity utilization per stream day before the end of 2019.”

    NNPC said that the development was to uphold the promise to boosting petroleum products supply and distribution in the Country

    He described the procedure for electing the financiers as painstaking, noting, however, that it was necessary to enable a desired closure on the subject.

    Baru said the corporation was also encouraging new refining capacities to come on board, adding that there were two consortia that have indicated interest to co-locate refineries in Warri and Port Harcourt.

    He said NNPC would provide whatever utility services the companies might require, such as power, processed steam, water and land, stressing that the corporation has agreed in broad terms on areas of collaboration to fast track the development.

    “Am happy to inform you that progress has been made, up to the level of an acceptable detailed engineering design and we are in the process of mobilizing some of the refineries already identified for installation in Nigeria,” the GMD informed.

    He said the Kaduna State Government was also championing a proposal to co-locate another refinery close to the KRPC with the intent of sourcing Nigerien crude for its operations.

    Baru stated that other Greenfield refineries were to be brought on board soon in Kano and Kaduna, stressing while on board, they would source their crude from Niger Republic.

    He said the designs for the proposed refineries in Kano and Kaduna were ready, saying their construction would commence this year.

    The NNPC GMD revealed that the Ministry of Petroleum Resources and the corporation were collaborating to encourage the establishment of modular refineries in the Niger Delta area to encourage job creation.

    He noted that the Federal Government and the NNPC would continue to encourage private sector initiatives that would bring in competition in the petroleum products supply and distribution network so as to guarantee energy sufficiency for the country.

    Dr. Baru hinted that the corporation was also exploring other sources of energy that could substitute Premium Motor Spirit (PMS), otherwise known as petrol, in cars and motorcycles, saying the use of Compressed Natural Gas (CNG) to power vehicles in Benin City is the right step in the right direction.

    He said over 3,000 vehicles were now CNG-powered in the ancient city, making them, he stated, more secured, more efficient, given that gas is a cleaner source of energy.

    Encouraging the development of infrastructure such as roads, railways and waterways are other means by which NNPC plans to lessen the pressure on PMS consumption, the GMD said.

    He applauded the Federal Government for approving the Abuja-Kaduna-Kano pipeline project, stating that the gesture would go a long way in supporting the NNPC’s transmutation into an integrated energy company.

    He said the project when completed would create the needed back bone for the Abuja’s 1,350 megawatts power plant, Kaduna’s 900 megawatts power plant and Kano’s 1,350 megawatts power plant.

    The NNPC GMD said the operations of the corporation were being challenged by incessant vandalism of crude and products pipelines and kidnapping of staff, adding that the corporation would continue to engage members of the host communities to emplace growth and development of the local communities.