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Tag: Nigerian National Petroleum Corporation

  • Another storm against Buhari’s men

    Another storm last week gathered again against some key officials in the President Muhammadu Buhari’s administration.

    The two officials now in the eye of the storm are the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, and the Inspector General of Police, Ibrahim Idris.

    Despite one of the cardinal goal of the government being fighting corruption to a standstill, it is sad that the main issues against these two officials border on corruption.

    The lid was blown off the alleged irregularities and on-going mess in NNPC when a protest letter by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu addressed to the President, was leaked.

    The country is yet to fully recover from the massive looting that took place in the oil sector under the past administrations.

    While the prices of oil in the international market hovered over $100 per barrel under those administrations, observers noted that there was little to show in the country for the huge revenue.

    Rather than use the income to develop the country, Nigeria remained lacking in basic infrastructures while substantial parts of the income fraudulently found their ways into the private pockets of those in charge.

    The former Minister of Petroleum Resources under the last administration, Mrs. Diezani Allison-Madueke, is still facing one corrupt charge or the other in Nigeria and the United Kingdom.

    Besides other allegations against the current GMD of NNPC, Kachikwu had last week specifically alleged in the letter that $25 billion contracts awarded by Baru didn’t follow due process.

    The letter, titled ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ with reference number HMS/MPR/001/VOL.1/100 and dated August 30, 2017, reads in parts “Mr. President, yesterday (August 29, 2017) like many other Nigerians, l resumed work and confronted with many publications of massive changes within the NNPC.

    “Like the previous reorganisations and ‘repostings’ done since Dr. Baru resumed as GMD, I was never given the opportunity before the announcements to discuss these appointments.

    “This is so despite being the Minister of State, Petroleum, and Chairman, NNPC Board.

    “The board of NNPC, which you appointed and which has met every month since its inauguration, and which, by the NNPC, is meant to review these planned appointments and postings, was never briefed.

    “Members of the board learnt of these appointments from the pages of social media and the press release of NNPC.”

    Stressing that Baru ignored his earlier warnings to him, he said “Not only did he not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation on board concurrence.

    “Mr. President, please note that there is a board service committee, whose function is to review potential appointments and termination of senior staff prior to implementation. This committee was also not consulted.

    “The effect of the attitude of the GMD and the sidelining of the board is that there is a fear culture in the NNPC,” Kachikwu said.

    In his prayers to the President, Kachikwu said “We save NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the board you inaugurated to do the needful.

    “That you save the office of the Minister of State from further humiliation and disrespect by compelling all parastatals to submit to oversight regulatory mandate and proper supervision which I am supposed to manage on your behalf,” he stated

    The major opposition Peoples Democratic Party (PDP) wasted no time to demand Baru’s immediate suspension.

    The National Publicity Secretary of PDP, Prince Dayo Adeyeye, had said “As a political party, we expect that the President, who prides himself as an indefatigable corruption fighter, would for once try to live above board, by genuinely allowing one of his own, accused of corruption, get properly investigated and prosecuted as a show of his impartiality in the war against corruption.

    “He should do this to correct the open impression Nigerians have about his so called anti-corruption war; that it’s just a tool of persecution of perceived enemies.

    “We view the allegations levelled against Baru by Kachikwu as too grave to be swept under the carpet and we insist that the NNPC GMD must be treated like an accused who should not have the opportunity to influence investigation into his alleged misdeeds.

    “In this light, we demand an immediate suspension of the NNPC GMD so that proper investigation can be carried out by the relevant anti-corruption agencies.” he said

    Also worried by the allegations in the oil sector, the Senate last week set up a committee chaired by Senator Aliyu Wammako, to investigate the issue.

    Unlike the Baru case where the allegations were raised within the executive arm of government, the allegations against the Inspector General of Police was spearhead by a sitting Senator of the Federal Republic of Nigeria, Senator Isa Hamma Misau (Bauchi Central).

    Apart from corruption allegations, Misau also raised allegation of infidelity against the Inspector General of Police.

    The Senate constituted a Special panel, headed by the Senate Deputy Chief Whip Francis Alimikhena (Edo North) to investigate the Inspector General of Police for alleged misappropriation of funds, illegal promotion and posting of senior officers and bribery and to also investigate claims that the IG put an officer in the family way and secretly wedded her in Kaduna.

    It also mandated its Committee on Ethics, Privileges and Public Petitions to investigate claims of professional misconduct against the IGP.

    All these allegations came to the public domain few months after some top officials of the government including  the suspended Secretary to the Government of the Federation (SGF), Babachir David Lawal, was investigated on alleged corruption charges.

    His case is yet to be resolved as the President might still be studying the investigative report submitted by the Vice President Yemi Osinbajo led three man committee.

    Also the resolution by the Senate not to confirm the appointment of the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, is still subsisting.

    It will be a plus for the government to do everything possible to get to the bottom of these fresh cases.

    The administration should  also remain fair and just to all those involved in the alleged corruption issues, by giving all, fair hearing in a bit to get to the root of the issues.

    This is important, at least, to counter the frequent claims of selectiveness of its anti-corruption battle been leveled by the opposition party against the government.

    It should guide against being seen and viewed as playing the ostrich when corruption case is leveled against one of its officials.

     

  • NNPC board: Agbakoba sues FG for ‘discriminatory’ appointment

    NNPC board: Agbakoba sues FG for ‘discriminatory’ appointment

    A former Nigerian Bar Association (NBA) president Dr Olisa Agbakoba (SAN) has sued the Federal Government over alleged violation of the Federal Character principle in the composition of the Nigerian National Petroleum Corporation (NNPC) board.

    He said none of the persons appointed to fill the nine positions is from the states that make up the Southeast geopolitical zone.

    According to Agbakoba, more than one person was appointed from other geopolitical zones in violation of the Constitution.

    Members of the board include Dr Tajuddeen Umar (Northeast), Dr. Maikanti Baru (Northeast), Mr. Abba Kyari (Northeast), Mr. Mahmoud Isa-Dutse (North Central), Mallam Mohammed Lawal and Mallam Yusuf Lawal (both Northerners).

    Others are Dr. Emmanuel Ibe Kachikwu (South-South), Dr. Thomas M.A John (South-South), and Dr. Pius O. Akinyelure (South-West).

    “The reason for the action (lawsuit) is that the Federal Government has always discriminated against Nigerians indigenous to the states in the Southeast zone in the appointments into the board of the second respondent (NNPC).

    “The Federal Government, by the lopsided appointment, accords numerical advantage to states in other geo-political zones to the detriment of the applicant’s Southeast geopolitical zone that is totally excluded from the board of the second respondent,” he said.

    According to him, Section 42 of the 1999 Constitution guarantees the right of every citizen to freedom from discrimination.

    Agbakoba said the Constitution also “prohibits any administrative or executive action of the government or application of any law in force in Nigeria discriminating between Nigerians or accords any privilege or disability to any Nigerian, on account of ethnicity, state of origin, etc.”

    Attorney-General of the Federation, NNPC and the Federal Character Commission are the respondents in the suit filed at the Federal High Court in Abuja.

    Agbakoba is seeking a declaration that the distribution of appointment into the NNPC’s Board made on July 5 last year violates the principle of democracy, social justice and Federal Character prescribed by Section 14(1) and (13) of the 1999 Constitution.

    He is praying for an order of perpetual injunction restraining the Federal Government from further violation of the Constitution and other laws including the Federal Character Commission (Establishment, etc.) Act in appointment of NNPC board members.

    He further asked for an order of perpetual injunction directing the Federal Government to henceforth apply the constitutional principles of democracy, social justice and all laws relating to Federal Character, including the Federal Character Commission (Establishment, etc.) Act in appointing NNPC board members.

  • Workers urge funding of NNRA with 2% oil proceeds

    Workers urge funding of NNRA with 2% oil proceeds

    The staff of the Nigeria Nuclear Regulatory Authority (NNRA) have called on the Federal Government to earmark 2% of crude oil proceeds for the funding of the activities of the authority.

    The NNRA chapter of the Petroleum and Natural Senior Staff Association of Nigeria (PENGASSAN), Chairman, Ifreke Udeme, made this request during the second Triennial Branch Conference in Abuja.

    Its theme was “NNRA: Regulatory Responsibilities for Increased Performance viz-a-vis Safety, Security and Safeguards for Radioactive Substances.”

    He explained that although the activities of the authority are mainly in the oil and gas industry, yet it has been underfunded from inception.

    Udeme said that the National Assembly, the governing board of NNRA, PENGASSAN and NUPENG can jointly work towards earmarking 2% of oil and gas proceeds for the funding of the authority’s activities. 

    He said that: “The activities of the NNRA, 90% of it is in the oil and gas industry. We licensed the sources and we conduct well logging and this cuts across the oil and gas industry.so the proceeds from there, a percentage of it with a legislature should be used to fund the NNRA for its activities. 

    “One percent or two percent of the proceeds can fund the activities of the NNRA vis and vis the directive of government that we should exit the federation appropriation by 2020. 

    “We have to collaborate with the relevant stakeholders; the NNRA governing board, the National Assembly and the management of NNRA’ PENGASSAN and NUPENG to be able to achieve this. 

    “The NNRA is grossly underfunded right from inception. And the National Assembly together with our legal unit can sit down and work out the areas that we can achieve this: the activities  in the oil and gas industry from seismic activities to exploration to upstream or downstream, we can look at these areas.”

    Speaking, the Kaduna Zone PENGASSAN chairman, Comrade Yusuf Abubakar noted that the global economy is now diversifying from oil to other sources of energy and Nigeria can resort to nuclear.

    He appealed to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu to reposition the NNRA with its next year’s budget for it to carry out the expected development of the nuclear energy.

    The minister’s representative, who was from the Nigerian National Petroleum Corporation (NNPC), Sanusi Abdulakeem, promised to convey the demands of the association to Kachikwu.

    He said that the ministry would consider the workers’ demand for a spacious office accommodation.

    Kachikwu, however, advised them not to abuse the opportunity that the Director-General, Prof Lawrence Dim has allowed them to unionize.

    The Deputy General Manager, Katsina Zone of the association, who represented Dim admonish the union to take the results of the Congress election in good fate. 

    A member representing Akoko Edo Federal Constituency in the House of Representatives, Comrade Peter Akpatason, promised the support of the lawmakers for whatever bill the NNRA may present to the lower chamber.

  • Stakeholder to Buhari: Don’t ignore Kachikwu’s memo

    Stakeholder to Buhari: Don’t ignore Kachikwu’s memo

    More reactions on Thursday trailed the memo of the Minister of State for Petroleum, Dr Ibe Kachikwu to President Muhammadu Buhari alleging the unilateral award of $25billion contract by the Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr Maikanti Baru. 

    The Nigerian Extractive Industries Transparency Initiatives (NEITI) Technical Adviser, Dr Dauda Garuba urged the president to wade into the crisis because $25billion is too huge an amount to consummate its contract without due process.

    Whichever way one looks at it, $25 billion is too huge an amount to build contracts around without due process. We are supposed to be a country guided by rules and procedures. We must make Nigeria work.

    Garuba said that if it is established that there are infractions as alleged by the Minister of States for Petroleum Resources, the necessary sanctions must be deployed.

                   Related: Kachikwu protests award of $25b contracts by NNPC

    He insisted that Mr President must demonstrate that he meant business when he promised Nigerians to reform the oil sector. 

    He expressed fear that the revelation came only when there was a ray of hope that the sector was being reformed.

    Garuba, an advocate of transparency accountability in the oil and gas sector, noted insisted that sector cannot afford to reverse its reform in the last two years.

                   Trending: Ogun state owes N103b debt – Amosun

    He said that: “I must say that it is unfortunate that the Nigeria public is being unenviably treated to unpleasant developments in the oil sector. If you ask me, this is coming at a wrong time in our history. Just when we are expecting a reform of the sector so that it can deliver the country out of the wounds, we are having to deal with this. 

    “So much progress has been recorded in the reform of the oil sector in the last two years that Nigeria cannot afford to turn back the hand of the clock. I know Nigerians are yet to hear from the other side.

    “It will be fair that those who leaked the memo by the Minister of State for Petroleum Resources to President Muhammadu Buhari also live up to their sophistry in access to secret information by obliging Nigerians the response by the Group Managing Director of NNPC. President Muhammadu Buhari must step in and do the needful.”

  • NNPC recommissions Ibadan depot 

    NNPC recommissions Ibadan depot 

    Products supply and distribution have received a huge boost in Oyo State and the South West region of the country, following the re-commissioning of the Ibadan Depot of the Nigerian National Petroleum Corporation (NNPC) yesterday.

    Group Managing Director, Dr. Maikanti Kacalla Baru, who flagged off the resumption of loading operations at the Depot, said the re-commissioning was in fulfilment of the Presidential mandate of revamping the nation’s critical oil and gas infrastructure for the benefit of the citizenry.

    “It is one of the key mandates of the present administration to revamp these abandoned assets and put them back to work for the overall security and improvement of petroleum products supply and distribution for the benefit of all Nigerians,” Dr. Baru stated.

    The GMD noted that Nigeria’s energy supply security is underpinned by a robust pipeline network of over 8000km used for the transportation of crude oil, petroleum products and natural gas, of which NNPC has the largest downstream footprint with over 5,120km of pipeline network and 21 depots spread around the country.

    He, however, expressed dismay that over the years, these critical national assets had become the subject of incessant vandalism, theft and sabotage which result in huge loss of revenue, lives and property as well as serious damage to the environment.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this disclosure in a statement yesterday.

    He quoted Baru as saying that “It is rather unfortunate that any time oil pipelines and associated facilities are vandalized, our ability to supply petroleum products to the nation is hampered, and the livelihood of many law abiding people negatively impacted.”

    He informed that since coming on board, the NNPC has re-streamed a number of its pipelines, leading to a massive resumption of loading operations in Depots within those areas.

    Baru said NNPC had rehabilitated its System 2E (Port Harcourt to Aba), System 2D (Kaduna to Kano) and the Atlas Cove to Mosimi segment of the System 2B pipeline, which has led to the commissioning of Aba, Kano and Mosimi depots.

    While noting that efforts were also underway to re-commission the remaining parts of the System 2B pipeline (Mosimi to Ore depot and from Ibadan to Ilorin depot), the GMD also announced the conclusion of rehabilitation work on the System 2E (Aba – Enugu) pipeline segment.

    “Very soon, these depots will experience the impact of our collective resolve to get the critical infrastructure back on stream,” he added.

    He commended the Oyo State Government for its consistent support over the years, which has immensely contributed to safeguarding NNPC’s Pipeline Right of Way (PROW) that feeds the Ibadan Depot.

    Responding, the Oyo State Governor, Senator Abiola Ajimobi, described the resumption of loading operations in the area as “a great development which would have a major impact on the socio-economic well-being of Oyo people and the entire South West region.

    “Today, I am happy because the resuscitation of this depot has brought about a great impact on our economic value chain which will be seen in commerce, industry and employment generation for our people” the Governor stated.

    Governor Ajimobi also heaped praises on the GMD, calling him “a reformer, transformer as well as an actualiser” who has been working tirelessly to achieve the Corporation’s objectives.

    “Having worked in this place as Area Manager for National Oil back in the eighties, I can tell you that this is the first time in many years that a sitting GMD is giving these facilities the attention they so much deserved,” the Governor noted.

    While assuring the GMD of his support towards securing NNPC’s Pipeline Right of Way (PROW) across the state, the Governor pledged to provide vehicles for security operatives patrolling pipelines within the state.

    In their separate remarks, critical downstream stakeholders of Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Tanker Drivers (PTD) and National Road Transport Owners (NARTO) all commended Dr. Baru for ensuring the re-streaming of numerous depots across the country which has led to the robust product supply and distribution across the country.

    It would be recalled that in May this year, the GMD was in Kano to re-commission the Kaduna-Kano pipeline.

  • Ondo to be priority destination for investors, my goal – Akeredolu

    Ondo to be priority destination for investors, my goal – Akeredolu

    The Ondo State Governor, Mr Oluwarotimi Akeredolu (SAN), has said that his major priority in office is to make the state the number one destination for investors in Nigeria by the year 2020.

    Speaking during the Inauguration of the board of the State Development and Investment Promotion Agency (ONDIPA) on Thursday in Akure, the state capital, Akeredolu said the state has no reason to rely on federal allocation from Abuja before she could meet her commitments to the people if the large deposits of mineral and agricultural resources in the state are well annexed.

    The Governor said Nigeria spend N300bn annually on importation of bitumen despite the fact that the state has the largest deposit of bitumen in Nigeria which is processed, can reduce pressure on our naira and boost the nation’s foreign exchange.

    Speaking on several investment opportunities in the state, he said he established ONDIPA to ensure that corporate organizations and businessmen and women interested in doing business in the state do their transactions without any hues.

    The governor also declared that his administration has dedicated 150,000 hectares of land to boost cocoa, oil palm and cassava plantation in the State.

    Akeredolu also announced that the first company for Bitumen Exploration and Processing in Nigeria would commence operation in the state before the middle of 2018.

    In his word, Akeredolu said: “We are the largest producer of cocoa in Nigeria. We are the largest producer of cassava in Nigeria. We have the largest deposit of limestone in Nigeria; let me inform this gathering that Ondo has the largest deposit of bitumen in Africa and second in the world.

    “I want to use this opportunity to announce to this gathering that the first company for Bitumen Exploration and Processing in Nigeria will commence operation in our state before the middle of 2018.

    “We are the largest producer of oil palm and cashew nut in South West. We have dedicated 150,000 hectares of land to boost cocoa, oil palm and cassava in Ondo State. We have major cash crops; maize, rice, soya beans, citrus, plantain; coffee, cowpea; we have the highest load of granite in South-west. We have large rubber plantations in Ondo. We have oil and gas; we are the 4th largest producer of oil and gas in Nigeria, we can use gas to power electricity.

    The Speaker, Ondo State House of Assembly, Rt. Hon. David Oloyeloogun (left), the Deputy Governor, Hon. Agboola Ajayi (middle) and the Governor, Oluwarotimi Akeredolu, SAN, during the launch of the Ondo State Development and Investment Promotion Agency (ONDIPA) held at the International Culture and Event Centre (DOME) – Photo credit: Maxwell Adeyemi Adeleye.

    “We are also the hub of tourism. The Smoking Hills and golf resort at Ilaramokin is the largest in Nigeria and the third largest in Africa. The longest hill on the continent of Africa is here. Ebomi Lake Tourist Centre is here. The International Culture and Event Centre (DOME) where we are hosting this event is the biggest in South West.

    “The popular igbo olodumare is in my town at Okeigbo and to the glory of God, the largest palace in Africa, the Olowo palace domicile here in our state. From Lagos to Akure and Akure to Lagos now take 25 minutes by air.

    “We now have Air Peace flying our once moribund airport every day. Overland Airline has increased the frequency of its flight from Akure to Abuja to three times daily. I am sure many of you fly Air Peace to Akure today. So why can’t you come do business here?

    “Furthermore, to ensure that inter-state movement is made easy, Ondo State just signed a memorandum of understanding with Niger/Delta Development Commission (NDDC) for the construction of 45km Araromi-Epe road to be completed before the end of 2018,” he stressed.

    Assuring the investors of their safety in the state, Akeredolu said “ONDIPA means business. The mandate of ONDIPA is to ensure that private sectors have no problem doing businesses in Ondo State. Today, you do not need to go to ministries to register your business and process papers; ONDIPA will do everything for you.

    “I want to assure investors that whatever Memorandum of Understanding (MoU) we sign with you will be fulfilled with sanctimonious attention. We would not compromise integrity. In three years, I want to see Ondo being the number destination of investors in Nigeria.

    I want to export our cash crops and mineral resources to reduce pressure on our naira to boost our foreign exchange. My office is opened to investors. ONDIPA is open. The office of ONDIPA is even beside my office,” he stated.

    Established by the House of Assembly of  Assembly, (ONDIPA)is saddled with the responsibility of managing the State’s investment promotion and multilateral cooperation; structured to meet all corporate best practices to ensure seamless integration of potential investors, development partners and investments into the growth and development of the state’s economy.

    The Agency, which has the Governor as its Chairman, has the Special Adviser to the Governor on Development and Investment, Mr Boye Oyewumi is to act as Vice-chairman and Chief Executive Officer (CEO).

    Others members of the board of the agency are the state Commissioners of Commerce and Industry and Agriculture, the Vice-President, African Development Bank (AfDB), Mrs Cecilia Akintomide, CEO, Delta Africs, Engr. Olu Odumakinde who are both indigenes of the state.

    In his speech, Oyewumi said he and his team shall be focusing on Investor and sector Targeting/Marketing, Promotion of Tourism, Business facilitation and Partnerships with Multilateral and Donor Organizations and most importantly, Management of the state economic zones aimed towards creating jobs, transfer of technology/skills, reduction of capital flight and value chain improvements,  Import substitution, Industry/Economic Diversification, Infrastructure development and most significantly, Improvement of Internally generated revenue.

    Oyewumi said to get the goals and objectives of ONDIPA achieved, sectors such as Agriculture, Information technology, Oil and Gas, Energy and Mining, Tourism, Manufacturing and Agro-allied industries and Transportation sectors would be prioritised.

    Several investors and corporate organizations who thronged the International Culture and Event Centre (DOME) where the event took place declared their readiness to partner the state government.

    An investor, Mr Yomi Adewumi who is the CEO of Investment Technology Limited, a firm specializing in Mining and Processing said his company would be investing $3m dollars in the state. He thanked Akeredolu’s administration for creating an enabling environment for investors to thrive in the state.

    Present at the event was the Minister of Solid Minerals, Dr Kayode Fayemi, deputy Governor, Hon. Agboola Ajayi and his wife, Secretary to the state Government, Hon. Ifedayo Abegunde, members of the state executive council, permanent secretaries and several other government functionaries.

    Others present were the first Professor of Investment Promotion in Nigeria, Professor Adesoji Adesugba, representatives of the British Department for International Development (DFID), Nigerian Investment and Development Corporation, Bank of Industry, Kaduna State Development and Investment Corporation, David Lukadu, Yewande Sadiqu, Mohammed Afeez respectively.

    Also present were the representative of the CBN Governor, Godwin Emefiele, Mr Omolola Adegbenga, Lagos lawyer and human rights activists, Mr. Femi Falana, Executive Director, Energy Renewal Division, Nigerian National Petroleum Corporation (NNPC), Alhaji Abdullahi Adamu, Director General, National Emergency Agency (NEMA, Alhaji Mustapha amongst others.

  • Tambuwal appeals to NNPC to explore oil in Sokoto Basin

    Tambuwal appeals to NNPC to explore oil in Sokoto Basin

    Sokoto State Governor, Aminu Waziri Tambuwal, on Wednesday appealed to the Management of the Nigerian National Petroleum Corporation (NNPC), to activate oil and gas exploration campaign in the Sokoto Inland Sedimentary Basin with a view to establishing the volume and value of hydrocarbon deposits there.

    Leading a high-powered Sokoto State delegation to the NNPC Towers in Abuja, he enthused that based on existing exploration records, it is likely that renewed search for oil in the basin would yield some positive results in the nearest future.

    While commending the current administration for re-invigorating the quest for oil in the new frontiers, Hon. Tambuwal noted that the successful search for hydrocarbon deposit in the basin would go a long way in increasing the nation’s oil reserve with the attendant value addition.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu that disclosed this in a statement yesterday quoted Baru as saying that: “We are here more on an advocacy visit to your office, Mr. GMD, to kindly request for your intervention and attention for the office in charge of frontier exploration to pay attention to Sokoto basin just the way attention is being paid to other basins in the country.”

    The governor invited the NNPC GMD and top Management to a conference in Sokoto sometimes in October 2017 which is being facilitated by the Petroleum Technology Development Fund, PTDF in collaboration with the Usman Dan Fodio University.

    He said the conference would thoroughly x-ray the search for oil in the Sokoto basin.

    Governor Tambuwal also commended the GMD for recent successes in the Corporation especially the stability in the supply and distribution of petroleum products across the country.

    Responding, Group Managing Director of the NNPC, Dr Maikanti Baru explained that the Corporation, without any prompting has since embarked on properly and professional exploration of all inland basins in the country including the Sokoto basin.

    He noted that the NNPC had already procured aeromagnetic data on the Sokoto basin from the Nigerian Geophysical Survey as well as awarded contract for the mapping and procurement of apt samples to further the understanding of the area.

    Dr. Baru informed that the NNPC has contracted its subsidiary, Integrated Data Services Limited, IDSL to carry out various geochemistry investigation to boost the gathering and integration of all relevant data ahead of the planned procurement of seismic 2D data position which would, in turn, determine various prospects.

    The GMD also pledged to attend the forthcoming seminar on the Sokoto basin, noting that the Corporation would use the platform to update and also share its knowledge of the basin with relevant stakeholders. 

    On the noticeably limited disruptions in the supply of petroleum products due to the recently aborted labour strike, the GMD informed that the issues raised by labour have since been settled. He said normal loading activities have resumed in those areas affected by the industrial action.

  • Oil: Egina to add 200,000bpd to Nigerian production

    Oil: Egina to add 200,000bpd to Nigerian production

    Deputy Managing Director of Total, a principal partner of the Egina Project, Mr. Ahmadu Musa-Kida, said when completed by Q4 2018, the Egina Project would produce additional 200,000bpd to Nigeria’s daily crude oil production.

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, had said that the corporation will accelerate local capacity development in all its operations within the nation’s Oil and Gas industry.

    He spoke while delivering a keynote address during an occasion to mark the Egina Manifold Sail Away celebration in Port Harcourt yesterday.

    But shedding more light on the Project, Chairman of Aveon Offshore Limited, Mr. Tein George said the project, which gulped over $30m worth of investments, was delivered ahead of schedule with zero Loss Time Injury (LTI) in about 5.5 million man-hours.

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

    The statement said that Sanctioned by the NNPC in 2013, the Egina Project is the first Deepwater Project after the enactment of the Nigerian Oil and Gas Content Development (NOGID) Act of 2010.

    Adjudged the first of its kind in Nigeria, each of the 6-slots Egina production manifolds has a lifespan of 25 years subsea. While the load-out of the first set of three (3) manifolds was carried out in July 2017, the load-out of the second and final set of three Manifolds was witnessed Tuesday.

    In crude oil production, the manifold is the gathering point designed to permit the use of pump-down tools, provide for individual well tests, handle injection of chemicals for inhibition of corrosion as well as provide for artificial lift and control.

    As a partner in the Egina Project, the NNPC in 2013, alongside four other companies (TUPNI, SAPETRO, Petrobras, and CNOOC), contracted the construction of the Subsea Production Systems (SPS) module for the project to FMC Technologies (FMC), which later sub-contracted the fabrication and load-out of six manifolds to a fully-indigenous local fabrication company, Aveon Offshore Ltd, a development the GMD said justifieed NNPC’s commitment to promoting local capacity in the nation’s Oil and Gas Industry.

    Baru said : “By getting involved in this laudable feat, NNPC has not only demonstrated the growing efficacy of the Nigerian Content Act, it has also reaffirmed the Corporation’s commitment to local content development.”

    “We are strongly committed to the successful implementation of all provisions of this Act to improve and accelerate local capacity development in all NNPC’s projects,” he added.

    According to the GMD, the Nigerian Content Act has given rise to a number of opportunities within the industry which include the emergence of new local vendors and suppliers; training and mentoring of young engineers; improvement of artisanal and other new skill sets critical to the industry.

     Baru further observed that the NNPC would always support initiatives aimed at domesticating the ample opportunities in the Oil and Gas Industry which promise to improve thousands of lives in the country.

    “There will be room for more of these opportunities in the nearest future as we are fully committed and determined to achieving sustainable domestication of a large percentage of the other modules on the Egina project. We will continue to touch your lives in many more positive ways,” he assured.

     He called on all stakeholders within the local content community to sustain the tempo of promoting the huge impact by replicating similar new projects on a larger scale across the industry.

    He explained that today’s event was a continuation of NNPC’s unflinching commitment to the Egina Project, following similar involvement in September last year where the Load-out ceremony of the Egina Umbilicals, Flowlines and Riser (UFR) module was recorded at the Saipem Yard in Port Harcourt.

    “This event, among others, testifies that our race to first oil from Egina field by Q4, 2018 is guaranteed,” he noted.

    He reiterated that the construction of the SPS module for Egina Project has placed the Oil industry ahead in the quest to promote “Made in Nigeria Goods and Services”, as championed by the Federal Government.

    In his remarks, Executive Secretary of the Nigerian Content Development & Monitoring Board (NCDMB), Engr. Simbi Wabote, lauded the Egina Project for promoting local content, stressing that the project was capable of integrating Floating Production, Storage and Offloading (FPSO) in Nigeria.

  • Denmark to guarantee 10% of NNPC financing of feeds production

    Denmark to guarantee 10% of NNPC financing of feeds production

    The Danish Government will guarantee a 10 per cent equity financing of a Joint Venture Company involving the Nigerian National Petroleum Corporation (NNPC) and a Danish firm, Unibio A/S Limited.

    The proposed JV Company would be engaged in the production of animal feeds from Nigeria’s abundant natural gas resources through conversion of methane gas into protein and has no negative impact for human consumption.

    The animal feeds industry in Nigeria accounts for N800 billion annually.

    NNPC Group Managing Director, Dr. Maikanti Baru, who made this known on Wednesday in Abuja when he received a Delegation from Denmark led by the Danish Ambassador to Nigeria, Mr. Torben Gettermann, said such collaboration would have positive impact on the Nigerian economy in the area of revenue generation, food security and job creation.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, broke this news in a statement yesterday. 

    Represented by the NNPC’s Chief Operating Officer, Ventures, Dr. Babatunde Adeniran, the GMD said that NNPC was considering partnership with the Danish company to utilize the abundant natural gas resources in the country for the production of animal feeds as part of its diversification agenda into non-oil ventures like other national oil companies to generate additional revenue for the country.

    NNPC signs deal with Denmark
    L: Danish Ambassador to Nigeria, Mr. Torben Gettermann at the NNPC office.

    “This proposal, though it is coming newly, has already started gaining traction in the industry and across the globe especially in Europe. Nigeria being the first point of call in Africa, we can leverage on the opportunity to increase the revenue of the country through local food production,” Dr. Baru stated.

    The GMD described the project as laudable, saying it was capable of making positive impact on the country’s economy, adding that the Corporation would look at the proposal holistically to ensure that Nigeria drives maximum benefit from it.

    Dr. Baru applauded the Federal Government for providing an enabling business environment which has already started attracting investors into the country.

    Speaking at the meeting, the Danish Ambassador to Nigeria, Gettermann, stated that Unibio had revolutionized natural gas conversion into animal feeds.

    “There are huge possibilities in view of the demands for this kind of feeds and it will boost food production in Nigeria tremendously. The benefits are not only in local production and consumption of the feeds but also in terms of revenue generation in foreign currencies through export,” Mr. Gettermann stated.

    He said Nigeria was an important partner to the Danish Government both politically and economically, adding that the Danish Government had established a special office in Lagos to facilitate trade relationship between the two countries.

    Shedding more light on the proposal, the Chief Executive Officer of Unibio A/S Limited, Mr. Henrik Busch-Larsen stated that his company owned the right to a unique fermentation technology known as U-Loop Technology which enables natural gas conversion into a highly concentrated protein product called Uniprotein.

    Busch-Larsen said the product could be used to feed such animals as pigs, poultry, and fish.

    Mr. Busch-Larsen explained that Uniprotein had a raw protein content of at least 72% which is a key component in animal feeds and can conveniently substitute the traditional proteins in animal feeds such as fishmeal and soybeans.

    Multinational food/care products companies as Nestlé, Procter and Gamble, (P&G) and Colgate-Palmolive, he noted, had already started using the products as feedstock.

  • Oil production dips to 1.3mbd over vandalism, says NNPC

    Oil production dips to 1.3mbd over vandalism, says NNPC

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said that an average of 700,000bpd of crude oil was deferred in 2016 due to pipeline sabotage, saying this brought Nigeria’s production down to as low as 1.3 million barrels per day from 2.2 million barrels targeted for the period.

    The NNPC GMD, who stated this in a keynote address at the maiden edition of the Nigerian International Pipeline Technology and Security Conference (NIPITECS 2017) in Abuja yesterday, said Year-To-Date 2017, NNPC had recorded twenty–seven (27) breaching incidents on the Trans Niger Pipeline (TNP), adding that for the Trans Forcados Pipeline (TFP) with a capacity of 300,000bpd, seventeen (17) breaches were recorded in 2016.

    He declared that Year-To-Date 2017, NNPC had suffered at least fifteen (15) breaching incidents on the TFP, while charging members of the Pipeline Professionals’ Association of Nigeria (PLAN) to conduct a systematic diagnosis of the pipelines system in Nigeria and come up with sustainable and actionable solutions to the menace of pipeline vandalism in the country.

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

    He urged all key players to rally round the Pipeline Professionals to proffer solutions to the pipeline vandalism challenge as it posed a great threat to the Nigerian economy in terms of revenue loss and environmental degradation.

    The statement quoted Baru as saying that: “The foregoing summarizes the effect of pipeline vandalism and therefore underscores the importance of protecting our pipeline system and treating them as National Assets… On the strength of that, we must endeavor to carry out a systematic diagnosis and proffer workable, practicable and actionable solutions that will guarantee sustainability of pipeline infrastructure.”

    He listed some of the measures deployed by NNPC to stem the tide of pipeline vandalism to include: Horizontal Directional Drilling (HDD) technology to bury pipelines deeper to prevent easy accessibility; technology-based pipeline surveillance mechanism with capability to detect, alert and deny access; and aerial monitoring and marine patrols by the Military Joint Tax Force (JTF).

    Dr. Baru further said government was working out a political solution to the socially-induced-agitation sabotage while the law enforcement agencies had been empowered to deal with those who engage in pipeline vandalism out of criminality such as oil theft.

    Speaking earlier on the significance of the conference, Chairman of PLAN, Engr. Geoff Onuoha, said considering the critical role of pipelines to the entire value chain of the oil and gas industry, there was need for a forum like NIPITECS to bring professionals and stakeholders together to brainstorm and share knowledge and technology.

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, who also spoke at the occasion, said the Board was working hard to boost local production of pipes, adding that its efforts were already yielding dividends as Nigeria now has two world class pipe mills in full operation.

    On his part, the Director General of Infrastructure Concession Regulatory Commission (ICRC), Engr. Chidi Izuwah, challenged industry players to tap into the opportunities in Public Private Partnership (PPP) to boost pipeline and other infrastructures in the country.