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Tag: Nigerian National Petroleum Corporation (NNPC)

  • NNPC in fresh corruption scandal

    NNPC in fresh corruption scandal

    The Senator representing Kogi West, Dino Melaye, yesterday accused the Nigerian National Petroleum Corporation ( NNPC ), of involvement in a fresh multi-million dollar corruption.

    Melaye at plenary yesterday, claimed that NNPC is involved a “monumental corruption” which the Senate should look into.

    He noted that the NNPC allegedly registered a company by the name Brass NLG.

    The firm, he said, is jointly owned by investors from Italy, Belgium, France, among others.

    Melaye said that contrary to statutory provisions that the account of the company be domiciled in the Central Bank of Nigeria ( CBN ), NNPC and its partners, instead, opened an account with a commercial bank.

    He noted that the account has no Bank Verification Number (BVN).

    He claimed that monies running into millions of dollars have been withdrawn from the account so far.

    Melaye said: “While some individuals and government appointees would continue to steal, we have decided to continue to expose corruption in public life. This morning (yesterday), I draw the attention of the Nigerian Senate, a suspected colossal, monumental corruption in NNPC.

    “Mr. President, a company was registered with the name Brass NLG limited with the federal government having controlling shares and we have some Italians, Belgians, French people who are shareholders with the Federal Government in controlling shares of about 50 per cent.

    “It is known fact that once you have a joint venture, the account of such joint venture should be domiciled with the Central Bank of Nigeria. But in this case, that was not what happened. An account was opened with Keystone bank.

    “This account has no BVN and there have been periodic withdrawals. The last withdrawal from that account was to the tune of $4 million. As I speak to you, the balance of that account as at today is $137 million.”

    Senate President, Abubakar Bukola Saraki, sought the approval of the Senate to allow Melaye to bring a proper motion.

    When the motion was put to a voice vote, the senators voted in the affirmative.

  • NNPC orders assessment of Escarvo-Lagos gas pipeline fire 

    NNPC orders assessment of Escarvo-Lagos gas pipeline fire 

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has ordered an immediate assessment of the damage caused by a fire on the Escarvos to Lagos Pipeline (ELP), a natural gas pipeline which supplies gas from Escravos region of the Niger Delta area to Lagos.

    The pipeline also supplies gas to power plants in the South West, in addition to feeding the West Africa Gas Pipeline System.

    NNPC’s  Group General Manager,  Group Public Affairs Division,  Mr.  Ndu Ughamadu disclosed this in a statement yesterday.

    The incineration of the ELP, which was built in 1989, was suspected to have been caused by a bush fire January 2, 2018 at Abakila, in Ondo State.

    NNPC firemen were drafted to the scene and were able to contain the fire from the leak point of the pipeline incident. However, the fire could not be extinguished due to the high pressure of the line.

    To put off the fire, the line would require being isolated and depressurized, which might lead to a complete shutdown of the pipeline segment for repair works to be carried out.

    The exercise will affect gas supply to customers in Ondo, Ogun and Lagos State with subsequent shutdown of the following power plants with a combined generating capacity of 1,143MW: Egbin, Lagos, Olorunshogo, PEL Olorunshogo, Ogun, Paras Power Plant, Ogun and Omotosho plant, Ondo State.

  • NNPC increased product distribution by 29 percent in September – Report 

    NNPC increased product distribution by 29 percent in September – Report 

    The Nigerian National Petroleum Corporation (NNPC) distributed and sold about 1.3 billion litres of petroleum products throughout the country in the month of September, 2017.

    The figure was captured in the September 2017 edition of the monthly NNPC Financial and Operations Report which was released Monday in Abuja.

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

    The statement said that the figure shows a 29 per cent increase from the 950.67 million litres posted in the month of August 2017.

    According to the report, products which were distributed and sold by the Petroleum Products Marketing Company (PPMC), the downstream subsidiary of the NNPC comprised of about 1.2billion litres of petrol, 35.58 million litres of kerosene and 86.30 million litres of diesel. While total special products for the month of September 2017 was 9.29 million litres comprising of 7.43 million litres of Low Pour Fuel Oil (LPFO) and other special products of 1.86 million litres.

    The sale of white products (petrol, kerosene and diesel) for the period September 2016 to September 2017 stood at 15.61 billion litres. A further breakdown showed that petrol amounted to 13.65 billion litres and accounts for 87.45 per cent.

    In terms of average daily sales and distribution of petroleum products, the numbers indicated that 42,752, 626 million litres of petroleum were recorded during the period comprising a daily petrol distribution figure of 38,690,970 million litres, 2,876,745 million litres of diesel, 1,185,906 million litres of kerosene and 2,677,995 million litres of special products.

    In terms of revenue generation, PPMC posted a total sales figure of ₦151.42 billion for white products in the month of September 2017 compared to ₦111.36 billion sold in the prior month of August 2017.

    Total revenues generated from the sales of white products for the period September 2016 to September 2017 stood at ₦1,877.42 billion, where petrol contributed about 85.08% of the total sales with a value of ₦1,596.98 billion.

    The 26th edition of the NNPC Financial and Operations Report also highlighted that the corporation had sustained effective communication with stakeholders through this report via publications on its website and in national dailies.

    This is in line with the corporation’s commitment to becoming more accountable, responsive, and transparent and a FACTI based Organization.

    The September 2017 NNPC Financial and Operations Report is the 26th edition of the series.

     

  • No plans to hike petrol price – NNPC 

    No plans to hike petrol price – NNPC 

    The Nigerian National Petroleum Corporation (NNPC) Monday  said that  it has no plan to increase the prices of petroleum products both at the ex-depot level and pump price ahead of the forthcoming yuletide.

    The NNPC in a release informed that the ex-depot petrol price of N133.38 per litre and the pump price of N143/N145 per litre have not changed noting that the Corporation has enough stock of fuel to ensure seamless supply and distribution of products across the country.

    While enjoining motorists and other users of petroleum products to disregard trending rumours of an impending fuel price hike in some online news platforms, the NNPC said it has the full commitment of all downstream stakeholders including petroleum marketers and industry unions to cooperate in achieving zero fuel scarcity this season and beyond.

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

    The explanation followed the emergence of petrol scarcity in Abuja.

    Most of the sales outlets including the Corporation’s affiliate stations were not opened to customers.

    This resulted in long queues around petrol stations in the federal capital territory.

    The NNPC however enjoined motorists not to engage in panic buying or indulge in the dangerous practice of stocking petroleum products in jerry cans at home.

    The Corporation noted that its downstream subsidiary companies namely the Petroleum Products Marketing Company (PPMC) and NNPC Retail Limited are fully geared up to ensure that motorists enjoy uninterrupted access to petrol throughout the nation.

  • NNPC to select core investor for Benue bio-fuel project – Baru

    NNPC to select core investor for Benue bio-fuel project – Baru

    The Nigerian National Petroleum Corporation ( NNPC ) says it has almost concluded discussion on the choice of a core investor for the proposed bio-fuel plant in Benue.

    The Group Managing Director of the corporation, Dr Maikanti Baru, said this in a statement issued by Mr Ndu Ughamadu, NNPC Group General Manager Public Affairs Division in Abuja on Sunday.

    Baru, after a follow-up meeting with a Benue State delegation led by Dep. Gov. Benson Abounu, said arrangements had been finalised to name the prospective investor in the weeks ahead.

    Represented at the meeting by the Chief Operating Officer, Ventures Directorate, Dr Babatunde Adeniran, Baru explained that the core investor would provide 70 per cent of the required funding for the project.

    According to Baru, the Benue State government and the NNPC will take up the balance equity contribution.

    He said upon completion, the plant was projected to generate about one million direct and indirect jobs for the populace, noting that the project would help link the energy sector with the agricultural sector through the commercial production of bio-fuels from selected energy crops.

    The NNPC boss listed other components of the project to include a sugar cane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually.

    According to him, it also includes a fuel-ethanol processing plant with production capacity of 84 million litres annually.

    “The bio-fuels projects will also help to establish the bio-gas cogeneration power plant which will generate 64 MW; a carbon dioxide recovery and bottling plant that will produce 2, 000 tonnes annually as well as an animal feed plant that will produce 63, 000 tons annually.’’

    The statement also quoted Abonu, Benue deputy governor as saying “Benue State is offering the 20, 000 hectares of irrigable land space along the bank of the river Benue as its equity contribution to the project’’.

    “In addition to a yet to be specified tranche of funds to shore up its stake to the level of directorship in the yet to be constituted board.’’

    Abonu also commended the NNPC on the strides so far recorded, and assured that the state government had since taken concrete measures to sensitise the host communities on the bio-fuel project.

    According to the deputy governor, the state government has also sensitised host communities to ongoing effort by the corporation for fresh hydrocarbon found in the Benue trough.

    NAN

  • NNPC to announce core investor for Benue bio-fuel project soon — Baru

    NNPC to announce core investor for Benue bio-fuel project soon — Baru

    The Nigerian National Petroleum Corporation (NNPC) says it has almost concluded discussion on the choice of a core investor for the proposed bio-fuel plant in Benue.

    The Group Managing Director of the corporation, Dr Maikanti Baru, said this in a statement issued by Mr Ndu Ughamadu, NNPC Group General Manager Public Affairs Division in Abuja on Sunday.

    Baru, after a follow-up meeting with a Benue State delegation led by Dep. Gov. Benson Abounu, said arrangements had been finalised to name the prospective investor in the weeks ahead.

    Read Also: NNPC begins exploration in Benue

    Represented at the meeting by the Chief Operating Officer, Ventures Directorate, Dr Babatunde Adeniran, Baru explained that the core investor would provide 70 per cent of the required funding for the project.

    According to Baru, the Benue State government and the NNPC will take up the balance equity contribution.

    He said upon completion, the plant was projected to generate about one million direct and indirect jobs for the populace, noting that the project would help link the energy sector with the agricultural sector through the commercial production of bio-fuels from selected energy crops.

    The NNPC boss listed other components of the project to include a sugar cane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually.

    According to him, it also includes a fuel-ethanol processing plant with production capacity of 84 million litres annually.

    “The bio-fuels projects will also help to establish the bio-gas cogeneration power plant which will generate 64 MW; a carbon dioxide recovery and bottling plant that will produce 2, 000 tonnes annually as well as an animal feed plant that will produce 63, 000 tons annually.’’

    The statement also quoted Abonu, Benue deputy governor as saying “Benue State is offering the 20, 000 hectares of irrigable land space along the bank of the river Benue as its equity contribution to the project’’.

    “In addition to a yet to be specified tranche of funds to shore up its stake to the level of directorship in the yet to be constituted board.’’

    Abonu also commended the NNPC on the strides so far recorded, and assured that the state government had since taken concrete measures to sensitise the host communities on the bio-fuel project.

    According to the deputy governor, the state government has also sensitised host communities to ongoing effort by the corporation for fresh hydrocarbon found in the Benue trough.

  • Buhari not interested in automatic ticket in 2019 – Kalu

    Buhari not interested in automatic ticket in 2019 – Kalu

    Former Abia governor, Dr Orji Kalu, said on Saturday that President Muhammadu Buhari might not be interested in getting an automatic ticket to re -contest.

    Kalu told newsmen at the Murtala Muhammed International Airport, Lagos, that the president would prefer a situation where other candidates would explore the democratic process to test their popularity.

    “Buhari himself is not even looking for automatic ticket.

    “He is a man that is very fair and free in what he does.

    “And his feeling is that if any candidate is willing to contest against him, he should come out.

    “So President Buhari is also feeling that an automatic ticket for him is not right.

    “He believes that the political space should be opened up for other people who also want to contest and he wants an open primary (elections) to take place,” he said.

    He said he would support Buhari should he indicate interest to run for a second term.

    “I have said it times without number, that the president needs to consolidate on his achievements because he is very popular.

    “He is still the only person carrying 15 million votes in his back despite his tenure being besieged by illness.

    “So the president genuinely deserves a second tenure,’’ Kalu said.

    He also ruled out the chances of the opposition Peoples Democratic Party (PDP) coming back in 2019.

    Kalu said Buhari was under restraint not to expose the gargantuan corruption that took place at the Nigerian National Petroleum Corporation (NNPC).

    He said if Nigerians knew what happened at NNPC, they would not allow any of the looters to run away from the country.

    Kalu wished former Vice President Atiku Abubakar well on his future endeavours following his decision to leave APC.

    NAN

  • NNPC completes 539km of gas pipeline projects

    NNPC completes 539km of gas pipeline projects

    The Nigerian National Petroleum Corporation (NNPC) says it has completed, commissioned and delivered 500 kilometers (km) of gas pipelines between 2010 to date.

    The Group Managing Director of the NNPC, Dr Maikanti Baru, said this on Tuesday in Abuja in a statement by Mr Ndu Ughamadu, the corporation’s Group General Manager Public Affairs Division.

    According to him, this is part of an aggressive expansion of gas pipeline infrastructure across the country.

    The statement said that Baru delivered a paper entitled, “Revival and Development of Local Manufacturing Industries: Chemical and Petrochemical Industries” at the 2017 Conference and Annual General Meeting of the Nigerian Society of Engineers.

    In the paper, he said the accelerated expansion of the gas pipeline system was sequel to the directive of the then President Olusegun Obasanjo to aid power generation.

    Read also: NNPC, Chevron seal $1.7b deal to raise oil, gas production

    Baru said the directive became imperative after the government realised that adequate power supply was key to reviving the moribund industries.

    He listed the gas pipelines so far delivered by the corporation to include; the 196km Oben Gas Plant to Geregu Power Plant pipeline, 110km Escravos-Warri-Oben gas pipeline, 128km Ukanafun-Calabar pipeline.

    Others are 50km Emuren-Itoki pipeline, 31km Itoki- Olorunshogo pipeline and 24km Imo River-Alaoji gas pipeline.

    He noted that all available thermal power plants in the country were today connected with permanent gas supply pipelines.

    Baru added that NNPC was driving the realisation of Federal Government’s aspiration to expand the gas pipeline network to all parts of the country.

    He said with this, about 2,700 megawatts of Thermal electricity was expected to be added to the national grid in the near future to generate more power for new industrial revolution and sustenance of economic growth.

    Providing details of the planned expansion of the gas infrastructure, Baru said the lines would be bolstered with the ongoing construction of the 127 km East-West OB3 gas pipeline joining Oben to Obiafu-Obrikom.

    He explained that the strategic infrastructure was scheduled for completion by the fourth quarter of 2018, while the 363km looping expansion of Escravos-Lagos Gas Pipeline System was expected for delivery by first quarter of 2018.

    He also explained that Engineering, Procurement and Construction (EPC) tender evaluation process for Ajaokuta-Abuja-Kaduna-Kano (popularly known as AKK683km) gas pipeline contract, and the EPC tender process for the Qua Iboe Terminal to Obiafu/Obrikom (QIT-Ob/Ob gas pipeline) gas pipeline were on-going.

    ”Upon completion, the remaining projects are expected to add over 1000 kilometers to the nation’s gas pipeline network.”

    On funding of oil and gas development projects, Baru said the corporation was adopting the Public Private Partnership models in building and expanding the gas infrastructures.

    He said the development of the Ajaokuta–Abuja-Kaduna–Kano (AKK) Gas pipelines which was the first in line under the arrangement would be built through contractor-financing.

    He explained that contractor-financing was a situation where the selected contractors would finance the project and recover their cost through transportation tariff.

    ”This model will be extended to other major backbone pipelines in the Nigerian Gas Master Plan,” he said.

    He concluded that once these projects were completed, a nationwide gas infrastructure backbone would be in place.

    ”This is to fully enable the establishment of an integrated gas pipeline infrastructure grid across the entire country.”

  • NNPC, Chevron sign $1.7bn deal to increase crude, gas production

    NNPC, Chevron sign $1.7bn deal to increase crude, gas production

    Nigerian National Petroleum Corporation ( NNPC ) and Chevron Nigeria Limited (CNL) have executed the final phase of an Alternative Financing Agreement to increase crude production by about 39,000 barrels per day.

    The agreement, signed in London, is also expected to achieve an incremental peak production of about 283mmscfd of gas, NNPC Group Managing Director, Dr Maikanti Baru, made the disclosure in a statement on Sunday.

    The statement was issued by Mr Ndu Ughamadu, Group General Manager, Public Affairs Division  of NNPC.

    Baru said the increment to be achieved by the agreement would spread “over the remaining life of the asset ( 2045 ).”

    According to him, the project, which is about 92 per cent completed, will cost 1.7 billion dollars, with 780 million dollars and is expected to be funded by third-party.

    He said it would produce natural gas liquids and condensate extracted from the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta.

    Baru described the deal as a step in the right direction which would grow the nation’s daily production and support the Federal Government’s strategic domestic gas-to-power aspirations.

    He said the project would include the completion of the Sonam non-associated gas (NAG) well platform and Sonam living quarters platform; drilling of seven wells in the Sonam field and the Okan 30E NAG well.

    It will also include the completion of the 20” x 32Km Sonam pipeline and Okan pig receiver platform and development of the associated facilities, Baru added.

    “As we speak now, the facilities are 100 per cent completed while wells are 40 per cent executed,” he  said.

    In carrying out the project, the NNPC/CNL Joint Venture (JV) adopted a two-stage financing approach: Stage 1 which provided 400 million dollars sourced from Nigerian Commercial Banks achieved financial close on Aug. 1, 2017.

    Stage 2, (signed on Nov. 17), is set to provide 380 million dollars from International Commercial Banks (ICBs).

    Out of the 780 million dollars total financing for both stages, Chevron’s co-lending totals 312 million dollars while NNPC’s portion of the total facility stands at is 468 million dollars.

    Speaking further on the Alternative Financing approach, Baru explained that it was aimed at plugging NNPC’s shortfall in funding JV cash call obligations including settlement of pre-2016 cash call arrears.

    “It will also enable full funding of NNPC’s JV obligations to restore investors’ confidence and stimulate further Foreign Direct Investments (FDIs) as we are beginning to witness,” he noted.

    The Managing Director of CNL, Mr Jeff Ewing, said his company supported the Federal Government’s aspirations to sustain oil and gas production.

    “We know the important role gas supply to the domestic market plays in growing power generation.

    “We also understand government’s need to seek alternative sources to fund profitable and bankable JV Projects,” Ewing added.

    In August, two sets of alternative financing agreements on JV projects were executed between the NNPC/CNL JV (project Falcon) and the NNPC/SPDC JV (Project Santolina).

    Both are aimed at boosting reserves and production in line with the Federal Government’s aspirations for the Oil and Gas Industry.

    NAN