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Tag: NNPC

  • Senate probes private jets use by NNPC

    Senate probes private jets use by NNPC

    The Senate yesterday directed the Nigerian National Petorleum Corporation (NNPC) to make available to it all records of its aircraft including those it normally hire for its operations.

    Chairman, Committee on Petroleum (Downstream), Senator Magnus Abe, spoke after the Group Managing Director (GMD) of the NNPC, Mr. Andrew Yakubu failed to appear before the committee to brief it on the implementation of the 2013 budget in Abuja.

    The Managing Director of the Warri Refinery and Petrochemical, Chief Paul Obelle, also failed to appear before the committee to explain the recent fire at the Warri Refinery.

    Obelle, in a letter by the Group Executive Director, Refinery and Petrochemicals Directorate, Tony Oguigbe, said: “I would like to request your kind consideration to give us another date to enable me attend and participate in my daughter’s wedding taking place on November 1-2 at Agbor and Asaba respectively.

    “We sincerely regret any inconvenience this may cause your esteemed committee and I kindly request that you re-schedule for another day.”

    Before adjourning the committee’s meeting sine dine, Senator Abe said: “I agree with NNPC that they need time to collate these documents and then, bring them forward.

    “There are also issues to do with the implementation of the NNPC budget. We’ve also written to them to furnish us with all the details of the budget implementation as the year progresses.

    “We accept their reasons for not being here but I would like to seize this opportunity to ask them and very seriously call on NNPC and indeed, call on all government agencies, that cooperating with the Legislature is important for the stability of our democracy.

    “We need the cooperation of all agencies that are to work with us, in order to safeguard the interest of all Nigerians.

    “So, I will plead with NNPC, to, very quickly, within the next one week, assemble all the documents that we have asked for, particularly documents relating to the distribution of petroleum products in this country and the crude-swap arrangement.

    “This is an area that is of great importance to the Nigerian public because we need to know exactly how this arrangement is being carried out, who are the people involved and the benefits to the Nigerian people and these are some of the information we are asking for.

    “So, we will give them time to collate their documents and also within two weeks, they should collate their documents within and outside Nigeria.

    “That time is enough for them to collate their documents and after two weeks, we will fix a new date for this meeting and then, we hope that they would not only come for this meeting, but they would come prepared, along with some other information on the NNPC budget.

    “Particularly, we would like to know how many aircraft the Corporation has and how many is on hire, how many belongs to them and how much is being spent on the hiring of the aircraft. We would like to have these details.

  • NNPC cries out over loss of 150,000 bpd

    NNPC cries out over loss of 150,000 bpd

    • Put crude oil production at around 2.2, 2.3mbpd

    The Nigerian National Petroleum Corporation (NNPC), is losing 150,000 barrel per day (bpd), the Group Managing Director (GMD), Andrew Yakubu, has said.

    Yakubu attributed the loss to persistent attacks on major pipeline arteries supplying crude oil to export terminals.

    According to statement by NNPC’s Acting Group General Manager, Group Public Affairs Division, Tumini Green, yesterday, the GMD made the disclosure during his submission to the Senate and House of Representatives Joint Committee on the Medium Term Expenditure Framework (MTEF) for the period, 2014 to 2016.

    He said: “The critical and most important point to note here is that when the artery conveying crude oil to the terminals is hit, this reduces our production volume by 150,000 barrels per day for the period that the line is down, and that accounts for the drop in crude oil production. From February to date, we have witnessed so much breaches and each time we go down, about 150,000bpd goes down.”

    He said the Oil and Gas Sector is a key component of MTEF and any impact on it, will have a negative effect on revenue flow to the Federation Account. He lamented that the continuous crude oil theft, pipeline vandalism and shut-in, have constrained the sector from meeting its revenue projection.

    “We have looked at the 2014 oil projection from a realistic point of view, and we would continue to recalibrate it with the National Assembly and other relevant stakeholders, to ensure that the petroleum sector continues to play a key role in the national economy, Yakubu posited.

    He said there is no doubt that the menace of crude oil theft and pipeline vandalism have received the highest intervention from the President, Dr. Goodluck Ebele Jonathan which resulted in the institution of a Committee by the National Economic Council (NEC), comprising of some Governors, NNPC, Department of Petroleum Resources (DPR), International Oil Companies, (IOCs), Security Agencies and other relevant bodies to work out modalities to mitigate the menace.

    Commenting on the daily crude oil production figure, the NNPC GMD averred that the production figure has been very erratic as a result of the several attacks on the arteries from February to date adding that the daily crude oil production figure ranges between 2.2mpbd to 2.3mbpd.

    He said that the NNPC actively participated with the Budget Office in arriving at the MTEF adding that the Corporation will do everything possible to ensure that MTEF is achieved in terms of accruals from Oil and Gas projected input.

  • NNPC allays fears over firms’ divestment

    NNPC allays fears over firms’ divestment

    THE Nigerian National PetroleumCorporation (NNPC) has assured that the divestments from some onshore oil blocks by some international oil companies (IOCs) will not lead to crisis in the industry.

    Its Group Managing Director (GMD), Andrew Yakubu, told reporters on the sidelines at the ongoing World Energy Congress in Daegu, South Korea, which ends today, that the divestments were not only healthy, but would promote indigenous participation in the sector.

    He said: “These are not withdrawals in the real sense of it. The fact is that a number of these IOCs are moving into more challenging frontiers in the deep offshore and are leaving the onshore blocks which they consider less challenging.”

    In a statement yesterday, NNPC’s Acting General Manager, Group Public Affairs Division, Tumini E. Green, quoted the Yakubu as saying that the major players that were divesting had been sitting on those acreages and had allowed them to waste.

    “So, it is only fair for them to release these blocks so that others, especially the indigenous operators can have the blocks and grow in the upstream business. This, indeed, is a good development and I think we are moving in the right direction,” he said.

    Yakubu said the divestment offers immense opportunities for the Nigerian Petroleum Development Company (NPDC) to grow, especially as it strives to meet the 250, 000 barrels per day target by 2020.

    The GMD also said the advent of the shale gas and oil revolution in the United States would not have serious impact on the nation’s crude oil as earlier projected by some petroleum analysts.

    “No doubt, the shale gas phenomenon poses a pushback on our oil and gas, but the good news is that, the impact is going to take a very long time to come, because a close examination of the various discoveries of shale gas shows a huge misalignment between what was projected and the actualisation of most of the gas projects that would bring shale gas into full maturity,’’ he said.

    He explained that though the shale gas revolution is real, its availability in the global energy market is being hampered by high cost and other infrastructural challenges, thereby making conventional crude oil cheaper.

    He, however, said while the NNPC takes comfort in this development, it is moving to activate measures to ensure that the country is not caught napping if and when shale gas achieves the projected global penetration.

    He added: “Once again, the good news in this regard is that Mr President, through the Minister of Petroleum Resources, Mrs. Diezani-Alison-Madueke, has made it clear that the maximisation of our various energy resources is central to the reforms in the oil and gas industry…”

  • Governors to Jonathan: call Okonjo-Iweala, NNPC to order

    Governors to Jonathan: call Okonjo-Iweala, NNPC to order

    The All Progressive Congress (APC) governors yesterday urged President Goodluck Jonathan to call the Minister of Finance, Dr. Ngozi Okonjo-Iweala and the Nigerian National Petroleum Corporation (NNPC), to order over the disputed indebtedness to the Federation Accounts Allocation Committee (FAAC).

    In a statement titled “FAAC: Dishonesty and NNPC’s unacceptable etiquette,” the progressive governors urged the leadership of the National Assembly to protect the sanctity of the 1999 Constitution.

    The governors said: “Mr. President needs to urgently intervene to protect the image of the Federal Government and safeguard the provisions of the 1999 Constitution. We, therefore, urgently call on Mr. President to call NNPC and the Ministry of Finance to order.

    “We also would like to invite the leadership of the National Assembly to urgently take steps to protect the sanctity of the 1999 Constitution.”

    Besides, the APC asked NNPC to state the amount it credited to the FAAC.

    The governors said: “Our attention was drawn to NNPC’s denial of a N2.3 trillion debt being owed to the Federation Account. The statement, which is credited to Acting Group General Manager, Group Public Affairs Division, Ms. Tumini E. Green, is to say the least escapist, dishonest, contradictory and in many respect fraudulent.”

    The governors urged the corporation to say how much it paid into the account of the relevant agencies it referred to.

    They also asked NNPC to state how much it paid as outstanding subsidies.

    The governors said : “The question is how much was the revenue collected by NNPC? How much of it was paid to the Federation Account? How much was paid to the accounts of other relevant government agencies? How much was credited to FAAC? How much was committed to the payment of the so-called outstanding subsidies? What other associated costs of operations and losses were incurred and how much?”

    The governors asked NNPC to explain how much had been realised in oil revenue on monthly basis since January and the other associated cost of operations and losses it incurred.

    The statement noted that while claiming that NNPC does not owe the Federation Account, “taking into account outstanding subsidies and other associated costs of operations and losses”, the NNPC spokesperson claimed that payments have been made consistently into “its Central Bank of Nigeria account”.

    The governors said Green emphatically stated that “not all revenues collected by NNPC are paid directly into the accounts of the Federal Allocation with the Central Bank of Nigeria. Some are paid into the accounts of the relevant government agencies, like the Federal Inland Revenue Services and the Department of Petroleum Resources, with the CBN. But eventually, all these payments are credited to the accounts of FAAC.”

    Section 162(1) of the 1999 Constitution, they said, “is unambiguously clear and it has directed that the Federation shall maintain a special account to be called the Federation Account into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.”

  • NNPC debunks allegations of shortfall in revenue remittance

    NNPC debunks allegations of shortfall in revenue remittance

    The Nigerian National Petroleum Corporation has debunked allegations by the Chairman, House of Representatives Committee on Finance, that the corporation had not remitted N320.654 billion to the Federation Accounts Allocation Committee.

    This is contained in a statement issued by the acting Group General Manager, Public Affairs, NNPC, Ms Tumini Green, on Monday in Abuja.

    “ We refer to a statement credited to Chairman, House of Representatives Committee on Finance, alleging that the NNPC has short-changed the Federation Accounts Allocation Committee to the tune of N320.654 billion between January and September,’’ the News Agency of Nigeria quoted the corporation’s spokesperson as saying in the statement.

    It said the figure did not emanate from the NNPC, adding that it “only exists in the imagination of the peddler.”

    The statement noted that the management of NNPC had been operating an open-door policy and would have responded if the member had requested to be informed on the issues raised.

    It recalled that the House Committee on Petroleum, Upstream, one of the three committees responsible for oversight function on NNPC, was at the corporation’s headquarters on September 26 where NNPC management presented all the facts relating to oil production and sales to them.

    “Members of the committee sought clarifications on a number of issues and were pleased with the explanations given.

    “The committee indeed commended NNPC management for its openness and unprecedented disclosure of information on its operations and activities.

    “ We note that the said member of the House of Representatives was not on that delegation, ’’ the statement added.

    It said the corporation was at all times ready and willing to provide information to stakeholders and members of the public.

     

  • Crude oil shortfall: Reps to probe Alison-Madueke, NNPC

    Crude oil shortfall: Reps to probe Alison-Madueke, NNPC

    The House of Representatives is to investigate claims by the Minister of Petroleum Resources, Diezani Allison-Madueke that $20.9 billion was realized from the sales of crude oil between January and September this year.

    The lawmakers said documents available did not support the minister’s claims.

    Besides, the lawmakers emphasized the need to unravel the non-disclosure of production and proceeds from gas by the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC)

    The Chairman, House Committee on Finance, Abdulmumin Jibrin, said the claim of $20.9 billion realized from crude sale by Alison-Madueke was as a ruse, calculated to mislead Nigerians.

    According to him, Nigerians would rather prefer the minister to explain how the nation fell short of N321b in its revenue from oil in the same period.

    He said the reason for the investigation was aimed at encouraging transparency and accountability in the oil and gas sector, adding that Nigerians are only interested in how much was actually going to the coffers of federal government from the said $20.9 billion.

    According to him, contrary to what Nigerians were meant to believe, official documents and figures showed that revenue targets were only barely met in the months of April when N212.029 billion was remitted with N210.202 billion in May.

     

  • Again, states reject N75b NNPC arrears

    Again, states reject N75b NNPC arrears

    • Shun meeting with AGF

    For the second time in a week, state governments have rejected the Federal Government’s attempt to pay off what is owed them from the Federation Account.

    The Nation gathered that the Accountant-General of the Federation (AGF), Jonah Otunla, called the Chairman of Commissioners Forum to gather his members to Abuja to collect the outstanding N75 billion from the Nigerian National Petroleum Corporation (NNPC).

    In a telephone chat with the Chairman of the Commissioners’ Forum, Timothy Odaah, he confirmed that the AGFcalled a meeting with the other state commissioners of finance in Abuja to share the outstanding N75 billion, but that he rejected the offer, insisting t1hat all the backlog owed the states must be paid.

    Odaah said the planned meeting was an attempt to box-in the states, adding that governors were bent on tabling the matter before President Goodluck Jonathan.

    He said they were being owed N336 billion, with the N75 billion being the balance of the July 2013 arrears, N121 billion from June augmentation and over N90 billion as July augmentation.

    He insisted that the states had already planned for all these monies and entered into financial commitments with contractors, as such the attempt by the Federal Government to offset payments to the states and the local governments in bits was unacceptable to them.

    Odaah, who is the Commissioner for Finance, Ebonyi State, said sharing proceeds of the Federation Account demands that all parties must sign off the agreed sum to be shared before it can be disbursed.

    He said the N75 billion that the AGF had suddenly retrieved from the NNPC did not get the blessing of the state governments and cannot be considered legal since the states did not agree to share it at any meeting.

    On Monday, the Federal Government, through the AGF, raised N548.393 billion as the Statutory Revenue for the three tiers of government for August after it met tough resistance from the state governments. The money was rejected, just as yesterday’s.

    Attempts to get officials of the AGF to confirm or deny the invitation to the state commissioners for finance proved abortive.

  • Group faults Ngama, says NNPC withholds N2.9t

    Group faults Ngama, says NNPC withholds N2.9t

    A group, Forum of Concerned Members of Federation Accounts Allocation Committee, has accused the Nigerian National Petroleum Corporation (NNPC) of withholding N2.983 trillion due to the Federation Account, thereby denying the three-tiers of government of their own share of the money.

    In a statement yesterday, the Group wondered why the Minister of State for Finance, Dr. Yerima Ngama, has not prevailed on NNPC to remit the fund, which it claimed represents outstanding/underpayments from 2011 to date.

    While reacting to press reports credited to Ngama alleging persistent decline in the gross federally collected revenue accruing to the Federation Account and insisting that revenue will only be shared based on amount actually earned rather than what is budgeted, the Group said the statement was a calculated attempt to confuse Nigerians on the revenue accrued to the Federation Account and give the impression that the Federal Government was under pressure to augment revenue shortfall, while in actual fact, the shortfall is as a result of poor management.

    “This has necessitated our decision to put the record straight for members of the public. We wish to state that the revenue profile of the Federation as painted by the Honourable Minister of State, Finance is incorrect and amounts to a gross distortion of facts and empirical data of revenue accruing to the Federation Account. Specifically, while the Minister put the revenue earned in the month of July 2013 at N497.98 billion, the Central Bank of Nigeria’s (CBN) economic report for the same period stated that revenue from oil rose by 0.2 per cent to N645.65 billion, while gross non oil receipt (Corporate taxes, Customs and Excise Duties and Custom’s Special Duties) was put at N404.53billion, amounting to a total of N1090.18billion revenue which was higher than the budget estimate of N702.54 billion approved by the National Assembly for July 2013,” it said.

    “The question the Honourable Minister of State for Finance needs to fully address without further delay is whether the N2.983 Trillion held back by NNPC is not part of the revenue earned into the Federation Account meant for the three tiers of government,” it queried, wondering why the Minister is not demanding full remittance into the Federation Account by the NNPC.

    The Group also drew attention to issues of substantial non compliance with the 2013 Budget and non-adherence to disbursements agreed at regular monthly FAAC meetings, adding that there are huge outstanding payments of about N376billion, representing shortfalls agreed at various FAAC meetings from June’s Augmentation, July’s Benchmark deficit, and August’s Allocation.

  • ‘I never thought I would be 80’

    The two-in-one event featured presentation of the book entitled: Grace of his Life, a Biography of Chief Benjamin Abimbola Adigun and the celebration of Chief Adigun’s 80th birthday.

    It was held on a working day (Tuesday), yet it was well attended. Many important people in the society thronged the gathering in their numbers. The celebrator, Chief Adigun was the cynosure of all eyes; he was dressed in a flowing agbada with a black pair of shoes to match.

    The event began after guests were led in by the ushers. It started with prayers.

    Rev Bosun Ayinde gave the opening prayer.

    Former Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Chief Funsho Kupolokun, chaired the event.

    In his address, Chief Kupolokun described Chief Adigun as a humble and honest man.

    “We are here to celebrate and rejoice with a gentleman, an ambassador, a pioneer and pillar of the Nigerian oil industry,” he said.

    Chief Kupolokun said Chief Adigun’s life was that of selfless service for his father land.

    “He is a pleasant man, kindness and humility run through his vein,” he said.

    Describing the celebrator further, Chief Kupolokun said, he is a man of courage.

    “He is a man of courage who has emerged from so many battles, his pioneering effort in the oil industry made it boom today, his role in the oil industry is fascinating, however, his role in the church is more fascinating,” he commented.

    Former Dean of Education University of Lagos (UNILAG), Prof Duro Ajeyalemi, reviewed the book.

    He described the book as a compendium that truly x-rays the life of Chief Adigun.

    The book contains 249 pages with 10 chapters and gallery and Appendix.

    “I recommend the book to you all,” he said.

    Prof Ajeyalemi commended the efforts of the writer for painstakingly looking at the life of Chief Adigun keenly.

    The book, he said, is well illustrated with pictures of the past of the celebrator. The book was presented by Chief John Odeyemi and Chief Segun Aina amidst funfare.

    The celebrator thanked the guests for honouring him.

    Speaking on his life, Chief Adigun said he never thought he would live to celebrate his 80th birthday.

    “I never thought I would reach 80 years on earth, I have passed through many types of situations in life, I have passed through thick and thin, but God being on my side, I survived and in His miraculous way scaled me through the hurdles of life,” he said.

    He urged all to live with fear of God and give their all to the service of God.

    He advised people to show love in whatever they do.

    His wife Madam Cecilia thanked God for the life of her husband and appreciated everyone that had come to rejoice with the family.

    “He has a large heart, a caring husband, a mentor and he is very hardworking,” she said.

    Chief Adigun’s, son Kola considered it a special privilege to be his son.

    “I have a special privilege to have him as a father, he is very caring and kind to all of his children and people around him,” he said.

    Guests gave their donations and bought copies of the book.

     

  • NNPC loses arbitration battle at Appeal Court

    The  Court of Appeal sitting in Lagos Division last week vacated an injunction granted the Nigerian National Petroleum Corporation (NNPC) by a Lagos High Court to halt an ongoing arbitral process.

    Delivering the judgment, Justice Centus Chima Nweze, said the Federal High Court was wrong to have granted the injunction when NNPC had entered into an agreement to resolve all disputes through arbitration.

    Justice Okechukwu Okeke (now retired) granted the NNPC’s request to halt the arbitration proceedings between it, Statoil (Nigeria) Limited and others.

    In a unanimous decision, the court held that the lower court lacked the jurisdiction to hear the case in the first place.

    It consequently set aside the injunction granted the corporation.

    The court held that nowhere in the Nigerian Arbitration and Conciliation Act (ACA), 2004 is a court empowered to stop arbitral proceedings through the issuance of an injunction.

    It submitted that based on Section 34 of the ACA,2004, it was clear and unambiguous that the corporation ought to have gone to court in the first place how much more, secured the order.

    The restraining order by the NNPC fell under the exception to Section 34 of the ACA 2004, adding that it was clear that getting the order would defeat the intendment of the legislature that the court cannot intervene in arbitral proceeding outside those specified in the Act.

    NNPC, Statoil (Nigeria) Limited and Texaco Nigeria Outer Shelf Limited had entered into a production sharing contract. The contract provided that disputes would be resolved through arbitration.

    But when a dispute arose, the NNPC instead of honouring the agreement, sought for the intervention of the conventional court where it obtained an injunction at the Federal High Court to prevent the continuation of arbitration.

    The NNPC argued that the Nigerian constitution and other statutes provide the courts with inherent powers and the power to grant an injunction in these circumstances.

    It argued that a superior court has supervisory powers over inferior courts and an arbitral tribunal is analogous to an inferior tribunal. Therefore the FHC is able to exercise supervisory jurisdiction over it, including by way of injunction to restrain the continuation of arbitration.

    Statoil and Texaco on their part, argued that the purpose of Section 34 of the ACA is to ensure that arbitral proceedings are not subject to unnecessary interference by courts, and that this is important in order to achieve the purpose of alternative dispute resolution. Represented by Babatunde Fagbohunlu (SAN), the two firms contended that NNPC’s argument that a superior court must be able to supervise an arbitral tribunal would contravene the express wording of section 34 of the ACA.

    “ Fagbohunlu said: “The Act does not provide for the intervention of the court to restrain arbitration by injunction. Instead, it provides for judicial assistance in various ways including through: stay of court proceedings, the removal of an arbitrator for misconduct, the setting aside of the award and the enforcement of an award