The Nation Newspaper

Tag: Nigerian National Petroleum Corporation

  • NNPC loses 150,000mpd as militants strike pipeline in Ogoniland 

    NNPC loses 150,000mpd as militants strike pipeline in Ogoniland 

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru on Monday announced that the corporation could not sustain its last week record of 2.2million barrel per day (mbd) owing to the Monday attack on the Trans Niger Pipeline in Ogoniland which culminated in the loss of 150,000barrel.

    Asked whether the NNPC was able to sustain its last week production record, he said: “Unfortunately, we have not been able to sustain it because of challenges. As I am talking to you this morning the Trans Niger pipeline has been breached in Ogoniland and that is 150,000 barrel per day of oil has been locked up day. That has been fairly an issue in that area. And We hope we can continue at that level.”

    He spoke to reporters after the opening ceremony of the “Extraordinary session of the Council of Ministers of the African Petroleum Producers’ Organization (APPO) in Abuja.

    Details later…

  • OMS clears air on crude oil transportation contract

    OMS clears air on crude oil transportation contract

    PPP Fluid Mechanics Ltd, a company that was later acquired by Ocean Marine Security Limited through share purchase agreement, has debunked the claims making its rounds on Social Media that it secure the contract without due process.

    Contrary to reports trending in the social media, OMS noted that it secured the contract for the transportation of crude oil by marine vessels from Escravos Terminal to Warri Refinery through an open international competitive bidding in which 13 other companies participated.

    This is according to a press statement made available to journalists, after OMS, an offshore assets protection company, promoted by corporate titans, Tunde Ayeni and Hosa Okunbo, had come under media searchlight in respect of the crude oil transportation by marine vessels contract which it executed for the Nigerian National Petroleum Corporation, (NNPC), in recent past, with two online publications grossly misrepresenting the terms of the contract.

    For instance, while the reports claimed that the contract was awarded at the cost of $15.4 per barrel, the company disclosed that the contract cost never exceeded $5.68 per barrel while it lasted, and that was inclusive of the provision of dedicated security posts in addition to the transportation of crude oil to the refineries.

    The statement reads: “If only the journalists who did these stories had been a bit more painstaking and cross-checked their facts with NNPC, they would not have come up with this inaccurate and false report,” adding that OMS delivered a total of 65, 597, 698 barrels of crude oil to refineries between 2011 and 2015, the exact figure that was made available at the drilling terminals.

    “Such media claim that OMS delivered less than what it received from drilling terminals is an embarrassing demonstration of ignorance by the section of the media that came up with the report. NNPC has its records of what each vessel loaded and discharged.In any case, if that was true, wouldn’t the present government have summoned the company to come and account for the alleged shortage?”

    “In any case, if that was true, wouldn’t the present government have summoned the company to come and account for the alleged shortage?”

    Contrary to the false claim in the reports that crude oil transportation through the pipeline was deliberately circumvented to yield way to transportation by marine vessels, the facts on the ground indicated that if NNPC did not resort to the vessel option at the time, the refineries would have shut down completely owing to non-supply of crude oil.

    Before NNPC embarked on the marine vessels option of transporting crude oil, a report commissioned by the corporation indicated that it was no longer economical to transport crude oil from Escravos to Warri Refinery through the pipeline as a result of unsustainable expenditure of about $121million for the maintenance and repairs of the Escravos-Warri broken crude oil pipeline. Even at that, this huge expenditure became a regular one which still did not solve the problems associated with transporting crude oil to the refineries through pipelines.

    The report further indicated an estimated 40-60 percent loss of crude oil pumped through the Escravos-Warri pipelines owing to ceaseless pipeline vandalisation and oil theft.

    Another indisputable fact is that before the engagement of PPPFM, the Warri and Kaduna refineries had been shut down for about 48 months owing to non-supply of crude oil feedstock to keep the refineries running.

    OMS said: “It is important to state that with our company’s intervention, it is estimated that the nation has been saved over $2billion based on NNPC’s admittance of an average loss of about 40-60 percent of crude oil pumped through the Escravos-Warri pipeline due to vandalisation and crude oil theft.

    This saving is definitely more if the analysis were to be based on the additional loss recorded while pumping crude oil through the Port-Harcourt-Bonny-Okrika pipeline.”

    It must be stated for public records and without fear of contradiction that OMS is a projects solution providing corporate concern and not a trading company. For 30 years, we have offered value-driven services to our clients and we were never found wanting.

    NNPC, as a performance driven corporation, has never found us wanting in delivering quality service and the records are there to attest to this.

    We are not a trading company, we have never traded in one barrel of crude oil or one litre of product whether legally or illegally.

    Even at the risk of sounding repetitive, therefore, OMS, wishes to state that we remain totally committed to transparency, efficiency and global best practices in all our ventures.

  • Nigeria hits 2.2m barrels per day

    Nigeria hits 2.2m barrels per day

    Nigeria’s crude oil production yesterday hit 2.2million barrels per day, according to the Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru.
    He spoke at the 6th Sustainability in the Extractive Industries (SITEI) conference in Abuja. The theme of the conference was “Building Local for Global.”
    The target, he said, is to build up the country’s oil reserve to about 2.5mb/d and its subsidiary; the Nigerian Petroleum Development Company (NPDC), has already transformed from 15,000mb/d to 210,000mb/d.
    He said the corporation had identified seven critical gas projects in order to enhance power supply and stimulate industrial growth.
    The NNPC’s Chief Operating Officer, Oil and Power, Mr. Mohammed Saidu, who represented him attributed the increase in production to the peace in the Niger Delta.
    He said that the calmness in the Niger Delta and renewed efforts in the North East are indications that the corporation has renewed its strength for building oil reserves.
    Baru said: “Current production is building up, we are doing about 2.2 million barrels per day today, but of course, the intension is to build on that, sustain production and grow it up to about three million barrels per day in the next few years.”
    “We have to grow the reserves. We have had little or zero exploration for the past years, but thank God we are now renewing that. With the calmness in the Niger Delta and some of the efforts in the North-Eastern region, we have now renewed our vigor towards building the reserves.
    “And so in that way we have gone back to the Benue Trough and the Chad Basin. Although the Chad Basin is slightly behind, in the sense that we were about to go back when security challenges erupt, we are just waiting for the final green light for us to go back there.
    “Again all these are towards building the reserves, for is you build up the production to about 2.3 or 2.5 million barrels per day, you need the reserves to sustain that volume. The NPDC has grown production from a mere 15,000 barrels per day to about 210,000 barrels per day as at today.”
    Baru also stated that the corporation had reclaimed the three main pipelines that supply crude oil to the refineries and that the product lines had also been reclaimed.
    He added that “For the first time in the last five years we have been pumping products from Kaduna to Kano and this is in effort to reclaim the inland distribution and storage capacity that the NNPC has built over the years.”
  • Edo community threatens to disrupt gas production

    Edo community threatens to disrupt gas production

    Leaders and youths of Oben community in Orhionmwon local government have threatened to disrupt oil and gas production in their community if the oil firm operating in the community failed to commence payment of compensation within seven days.

    Oben community is host to the largest gas reserve in West Africa, a flow station and has over 60 oil and gas well head.

    The leaders urged the oil firm, Seplat Petroleum Development Company Plc to also sponsor a joint assessment and evaluation that would be credible to both the company and the people or vacate their community.

    They also demanded completion of all abandoned projects in the community by the Nigerian National Petroleum Corporation.

    Speaking at a press briefing Thursday at the community town hall, Mr. West Uyigue said it was regrettable that Oben has been neglected by the exploration company, state and federal governments.

    Uyigue stated that Oben has been degraded and devastated as a result of oil and gas exploration and exploitation activities especially gas flaring which he said has affected their crops and led to acidic rains, extreme weather conditions.

    He explained that the community engaged an environmental consultant to carry out post environmental evaluation and costing for compensation but the oil firm failed to meet up with its responsibilities months after the report has been submitted.

    The community leader said the firm would face their wrath if they refused to pay compensation.

    On the menace of Fulani herdsmen in the community, Uyigue said the community has resolved to use whatever means to chase the herdsmen out if the government fails to protect lives and properties.

    “There is no single federal government presence in Oben. The only state presence which is the primary and secondary schools are in very deplorable state with no tables and chairs for the students to sit to learn, no toilet facilities, no water, dilapidated classroom blocks, no science laboratory, no library. In fact, the primary school can best be described as Akara school of those days and the secondary school as an over glorified primary school.

    “We demanded that government wade into this and nip in the bud what seems to be an imminent crisis. We have right to a cleaner environment.”

    Earlier, the Onogie of Oben Community, HRH Odoligie Ogiemwonyi said he was in support of the decision reached by his subjects adding that government at both levels should come to their rescue to bring about development to the various host communities in Orhionmwon.

     

  • NNPC station reduces diesel price to N160 per litre

    NNPC station reduces diesel price to N160 per litre

    A market survey that The Nation embarked upon on Tuesday confirmed that The Nigerian National Petroleum Corporation (NNPC) mega station on the Olusegun Obasanjo Way, Abuja sold the Automative Gas Oil (AGO) also known as diesel for N160 per litre.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that its members have reduced the price of diesel to N170 per litre.

    Speaking with Nation on phone, its National Vice President, Alhaji Abubakar Maingadi, said that the price reduced from last week N180 and N190.

    He, however, attributed the decline to the deregulation of the price by the Nigerian National Petroleum Corporation (NNPC).

    He said that the “price is coming down because of deregulation,” urging the federal government to deregulate the entire petroleum sector.

    The National Vice President noted that the price of Premium Motor Spirit (PMS) will also crash if the NNPC deregulate its price.

    The Corporation’s General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu had on Sunday said that the price dropped by 42% owing to the NNPC strategic intervention efforts.

    He recalled that the product’s retail prices as at the end of May 2017 ranged from N175 to N200 across the country (a significant price drop of about 42%), while ex-depot prices also dropped to between N135 and N155.

    While our correspondent was at Total stations yesterday they sold for N195 per litre in virtually all their sales outlets. A sales representative at Opposite Febson Mall, Wuse, said that the product previously sold for N220 per litre.

    Azman Petrol station sold the product N180 per litre.

  • Oil pipeline vandalism reduces by 12 per cent

    Oil pipeline vandalism reduces by 12 per cent

    The extensive engagement with oil and gas community stakeholders embarked upon by the Federal Government and the Nigerian National Petroleum Corporation (NNPC) has continued to yield positive results with the attainment of 12.77 per cent reduction in downstream pipeline vandalism.
    According to the April 2017 NNPC Financial and Operations report released in Abuja on Monday, downstream pipeline sabotage decreased from 94 pipeline vandalized points in March, 2017 to 82 in April 2017, representing a 12.77% reduction relative to the previous month. 
    The Corporation’s Group General Manager, Group Public Affairs Division,  Mr. Ndu Ughamadu that made this known in a statement yesterday said that the April 2017 numbers also indicate substantial progress compared to corresponding period of April 2016 which recorded 214 incidents. 
    In terms of products availability within the period, the Corporation maintained adequate stock of over 1.2 billion litres of petrol sufficient for more than 34 days forward consumption. 
    It was also recorded that during the period, the NNPC in an effort to reduce to the barest minimum the incidences of fire outbreak in the 21 depots across the country, received bids from no fewer than 37 companies to supply six triple agent firefighting trucks for the operation of the Nigerian Pipelines and Storage Company (NPSC), one of the downstream subsidiaries of NNPC. 
    The report noted that NNPC has continued to import Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK) to supplement local refining, while the Central Bank of Nigeria, CBN continues to make available foreign exchange to marketers to import AGO and ATK. 
    The April 2017 report which is the 21st edition of the NNPC Financial and Operations report also noted that average national daily gas production stood at 242.32 Billion Cubic Feet, BCF or an average of 8,077.19 Million Standard Cubic feet per day, representing 6.79% increase relative to the previous month. 
    Comparatively, the daily average natural gas supply to gas power plants slightly decreased to 672mmscfd (or equivalent to power generation of 2,787 MW in April, 2017) relative to 689mmscfd recorded in last month. However, this supply is also 22.85% higher than the corresponding supply recorded in April 2016 of 547mmscfd, the report stated. 
  • Refining activities hit 10million barrel in Q1

    Refining activities hit 10million barrel in Q1

    The Nigerian National Petroleum Corporation (NNPC), on Tuesday said that following the peace initiative in the Niger Delta, refining activities in Port Harcourt, Warri and Kaduna increased to 10million barrels of crude in the first quarter this year as against 8million and 24million barrels for the entire years of 2015 and 2016 respectively.

    Its Group Managing Director, Dr. Maikanti Baru, disclosed this in Abuja during an interactive session with a delegation from the United Kingdom Royal College of Defence Studies.  

    Baru, who was represented at the event by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed stated that apart from the upbeat in the refineries activities attributable to the peace initiative which has lowered the rate of attacks on oil installations, the corporation has recorded increase in crude oil production to 2million barrels per day in recent times.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu who made this known in a statement, quoted him as saying: “As a nation, we have tried all available options, including military, to tackle the security challenge. We have discovered that guns are not as effective as the engagement option. The peace we are enjoying now is as a result of the engagement with stakeholders in the region led by the Acting President. We intend to build on that to achieve a lasting peace.”

    Dr. Maikanti Baru said having been satisfied with the prevailing respite in the Niger Delta which has engendered a conducive environment for oil and gas production operations in the past few months, the Nigerian National Petroleum Corporation (NNPC) would do all it could to build on the gains of the Federal Government engagement with stakeholders in the region to deepen and sustain the peace.

    Speaking earlier, the team lead of the UK Royal College of Defence Studies delegation, Major General Craig Lawrence, said the group was in NNPC to learn how the corporation was generating wealth and prosperity for the country in the face of daunting challenges.

    He thanked the management of NNPC for sparing the time to explain to the delegation the workings of the corporation.

    Members of the delegation included United Kingdom, France, Pakistan, and Thailand nationals, among others.

  • NNPC to resume oil exploration in Chad Basin in six weeks

    NNPC to resume oil exploration in Chad Basin in six weeks

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru says oil exploration activities in the Chad Basin will resume in six weeks time.

    Baru made this known in a statement issued by the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu.

    Baru said the resumption of oil exploration activities became necessary following improved security in the North East.

    The NNPC boss said this when he visited Gov. Kashim Shettima of Borno State and the Shehu of Borno, Alhaji Abubakar El-Kanemi in Maiduguri.

    “We have been discussing with military authorities in the area and they have assured us of improved security.

    “Once they give us the green light, we would resume operations in the area within six weeks,” Baru, who was represented by the Chief Operating Officer, Gas & Power, Mr. Saidu Mohammed, said.

    Baru informed the governor that NNPC was keen on increasing its production from 1.9 million barrels per day (bpd) to three million bpd as well as increasing its oil and gas reserves, a target that necessitated exploring for more oil within and across some of the nation’s inland basins.

    He commended the efforts of President Muhammadu Buhari and Shettima for restoring peace, reconstructing and rehabilitating the region, adding that the Corporation was ready to provide support in that regard.

    Baru appealed to the Shehu of Borno to prevail on his people to show oil exploration activities resumes.

    Highlight of the visit was the presentation of relief materials by Baru to the Shehu for Internally Displaced Persons (IDPs) in the state.

    Responding, Shettima said the insurgency had taken a huge toll on the North-East region leading to the loss of more than 9.6 billion dollars, with Borno state alone losing 5.6 billion dollars.

    “We need your support in our reconstruction and rehabilitation efforts, so that when the history of the new Borno is written, NNPC’s name will be written in gold,” he said.

    Shettima said while international donour agencies and good-spirited organisations like the NNPC were keen on helping the IDPs, the state’s ultimate target was to resettle the IDPs in their various communities.

    Also speaking, the Shehu of Borno commended the NNPC for identifying with the Borno people and expressed happiness over the prevailing peace across the state and the entire North East.

     

  • NNPC cautions Nigerians against adulterated petroleum products

    NNPC cautions Nigerians against adulterated petroleum products

    The Nigerian National Petroleum Corporation (NNPC) on Thursday in Abuja advised the public to be wary of adulterated petroleum products.

    The NNPC gave the advice in a statement by Mr Ndu Ughamadu, its Group General Manager, Group Public Affairs Division.

    According to Ughamadu, exercising caution by consumers could forestall explosion, knockdown of engines, equipment or any such other ugly incidents leading to death or injuries.

    “The call for caution becomes necessary following reports that products from vandalised pipelines, or adulterated products are being sold to unsuspecting members of the public.

    “This has led to untoward incidents involving consumers of petroleum products in parts of the country.

    “When in doubt of the quality of a purchase, consumers are advised to seek assistance from any offices of the Department of Petroleum Resources, DPR, NNPC depots or offices nationwide.

    “Products from NNPC depots are subjected to strict quality control to ensure that they are fit for use,’’ he said.

    Ughamadu urged motorists and other consumers of petroleum products to desist from panic buying.

    “The NNPC has over 32-day sufficiency for petrol and adequate volumes of diesel and kerosene to meet their demand,’’ Ughamadu assured.

    The Nigeria Security and Civil Defense Corps (NSCDC), in Anambra, recently arrested seven suspects with three articulated vehicles, carrying 110,000 litres of suspected adulterated petroleum products.

    The suspects were arrested between December 15, 2016, and January. 21

  • NNPC subsidiary denies responsibility for explosion at NLNG

    NNPC subsidiary denies responsibility for explosion at NLNG

    Integrated Data Services Limited, IDSL, a Subsidiary of Nigerian National Petroleum Corporation, NNPC, has explained that it was not responsible for the pipeline explosion which occurred Friday at a Nigeria Liquefied Natural Gas Limited, NLNG, pipeline in Emohua Local Government Area, Rivers State.

    IDSL said its operation crew which was engaged in acquiring seismic data for SPDC in Oil Mining Lease, OML, 17/22 ROBO 3D prospect, observed approved safe distance standards contained in the Department of Petroleum Resources’, DPR, regulations and as such could not be the cause of the blast.

    The IDSL, according to a statement that the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement yesterday said that:“Our activities involve the use of seismic explosives of size 2kg and detonators. The drilled and exploded depth is 45 metres. At this depth the effect on the surface cannot affect any structure.

    “The suspected gas leakage on the gas pipeline between Eveku and Rumodogo 1 communities in Emohua Local Government Area of Rivers State of February 22, 2017 was not caused and cannot be caused by NNPC, IDSL Party 05 seismic operations. Our closest activity around the incident area yesterday was 798 metres away from the pipeline”, IDSL stated.

    As a responsible corporate body, IDSL’s crew on operation in Emohua Local Government Area observed, to the letter, DPR’s regulations governing such activities which include: maintaining a minimum distance of 25 metres from tarmac roads, 50 metres from houses, 100 metres from pipelines, and a minimum distance of 200 metres from well heads or oil wells.

    IDSL crew was 798 metres away from the exploded pipeline.

    Relevant authorities in Rivers State have been informed of the incident.