Tag: NNPC

  • PIB: NNPC begins transformation training for staff

    PIB: NNPC begins transformation training for staff

    As Nigerians are expectant that the Petroleum Industry Bill (PIB) would be passed into law before end of this year with the attendant transformation and restructuring of some existing processes, the Nigerian National Petroleum Corporation (NNPC) has earnestly started training its workforce in preparation for the changes that would come with the passage of PIB.

    The corporation hired the services of an American-based consultancy firm – New Generation Consulting Resources and Solutions (NGCRS) based in Cresco, Pennsylvania, USA, to train the NNPC staff to be adaptable to the new NNPC that would come with passage of the bill.

    The corporation organised a weeklong training in Lagos for select staff drawn from its different departments and The Nation spoke with the Principal Consultant of NGCRS, Dr. Njideka Kelley on some of the issues.

    Kelley said: “The training is on change, reform and transparency and the participants are mid level to higher up cadres. As you know with the intended Petroleum Industry Bill (PIB), NNPC has been very proactive in training their staff on change. The training would be able to reform the corporation because the PIB will restructure the NNPC and with all of that, the highlight will be on transparency because that is what will sustain the change and the reform practices that will come to NNPC. The first training we had for the NNPC was on improving organisational security, which was last year and we are taking the training to Delta State later this year for the Asaba Chamber of Commerce.”

    On the compliance level of the participants to the intended change, she said: “when we started on the first day, they had mixed feelings on whether change will truly be possible in NNPC considering where the country is coming from and what the society’s mindset is in terms of what constitutes value but by the time we rounded off, the level of compliance had improved tremendously.

    “The participants were a great group, very awesome, they were willing to learn. They gave their own assessment and feedback. The class was very participatory-oriented, with methodology in discussions, case studies and lectures, so as we give theories, we also give practical, which are real life examples. The participants were very compliant.”

    On whether there are plans to have an overseas part of this training so that participants can see what their counterparts in other developed countries do in terms of transparency, she said, we have not discussed that with NNPC but it is definitely worth giving a trial.

    The NGCRS chief advised the management of NNPC to continue to invest in their human capital development, which she noted doesn’t just mean sending them to training but also doing internal reviews and making sure that the resources that they put in towards training is received back through the application of the duties, functions, interpreting the core values.

    “In other words, the management has to make sure that the participants are assessed through tests and periodic reviews, examination, among others internally to ensure that the money the corporation spent to receive these principles are also received back by the staff by way of periodic reviews and application. All of these have to be inculcated into NNPC,” she added.

    To inculcate the right principle in the country’s workforce, the first is to create awareness, she said, adding you have to understand change by knowing and accepting that you want a change. You have to understand that you have a problem and want to solve it that is the first step. In keeping a change sustainable, you keep on emphasising where you were, where you are going, and where you are now. NNPC is not the way it was 20 years ago. There have been improvements, which have been developmental because they keep improving on them. But where we are going is a transformational change, she said.

    She also said the training would certainly bring a change that would make the corporation as competitive as other state owned oil companies such Statoil and Petrobras. “Because NNPC has recognised that there is a problem that needs to be solved and part of it is a cultural problem. It lies in the core values and principles of NNPC and the country as a whole because it is not news that Nigeria has social problem, which corruption is at the top. NNPC being a government entity is perceived to be part of that corruption. This may be true or false but if we want to take it from that point of view, we can say that NNPC is doing all that it can within its power to change given the external influences that sometimes are not conducive to business.

    “This is the reason they are investing in their human capital and make sure that people begin to understand that it will no longer be business as usual especially when the PIB is passed into law. The reformatory practices have to be put in place. They have to be transformed and that is the key. They must be transparent and those core values must have to be revisited. NNPC has to go back to the drawing board and look at the ways they had been doing business, look at their operations and technology and see how all of that will influence their bottomline and will start to make profit. To achieve this they have to streamline many things.”

  • Scarcity: NNPC pledges to sustain fuel supply

    Scarcity: NNPC pledges to sustain fuel supply

    The Nigerian National Petroleum Corporation has pledged to sustain its increased fuel supply and distribution to avoid a reoccurrence of the recent fuel scarcity in the country.

    The General Manager, Media Relations, NNPC, Dr. Omar Ibrahim, gave the assurance in a chat with the News Agency of Nigeria on Wednesday in Abuja.

    Ibrahim said the NNPC had taken radical measures to ensure that the lingering fuel scarcity in most parts of the country abated.

    He said, “As you will have noticed the fuel queues have disappeared as a result of the radical measures we put in place.

    “What we did was to take responsibility of our partners, including private and independent distributors and stepped up our daily supply to all the states experiencing the scarcity.”

    Ibrahim said the corporation had to increase its daily truck supply to more than 100 in Abuja and more than 200 trucks daily to Lagos so as to clear the shortage experienced.

    The general manager said the corporation also opened up its strategic reserve to ensure there was no shortage in the supply to all parts of the country.

     

  • NNPC blames fuel scarcity on  pipeline vandalisation

    NNPC blames fuel scarcity on pipeline vandalisation

    Massive vandalisation of oil pipelines by oil thieves has been blamed for petroleum products scarcity in parts of the country. This was the position of the Nigeria National Petroleum Corporation (NNPC) when it appeared before the Senate Committee on Petroleum (Downstream) yesterday.

    It blamed the fire incident that damaged oil pipelines in Arepo, Ogun State for product scarcity.

    Executive Director, Public Services, Peter Madu, told the Senator Magnus Abe led Committee that hoodlums disrupted repair works at the damaged pipeline, saying the incident affected the flow of petroleum products.

    He said as a result of the attack on the crew of NNPC that went to repair the pipe line, “three of our men including an engineer were abducted and yet to be found, aside three others currently receiving treatment.”

    He said however that the Corporation has made alternative arrangements to use tankers to move products to affected areas, adding that despite the alternative arrangement, many of the tankers were held up in the Lokoja, Kogi State, due to flooding.

    “It would take longer turn around for the tankers to get to their destinations and this has been responsible for the current hiccups noticed last week.”

    On threat of strike by NUPENG and PENGASAN, Madu said NNPC has not been notified of any threat of strike by any body.

    In his response, Abe commiserated with the NNPC over the abduction of its staff, urging the Inspector General of Police to take steps to arrest perpetrators of the Arepo incident.

    Meanwhile, government said petroleum marketers would be required to revamp their retail outlets and be re-certified by the Department of Petroleum Resource (DPR) before they could market bio-fuel.

  • Marketers to support NNPC in fixing Arepo pipeline

    The Western Zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN) would assist the Nigerian National Petroleum Corporation (NNPC) to fix the vandalised major pipeline, System 2B, at Arepo in Ogun State, to ease distribution of petroleum products across the country.

    The South-West Zonal Chairman, IPMAN, Mr Olumide Ogunmade said this in a joint communiqué issued by the group after their meeting in Lagos. He condemned the attack of officials of Products and Pipeline Management Company (PPMC), a subsidiary of NNPC, in the course of their official duty. The group noted that such sabotage on socio-economic infrastructure of the country should be stopped.

    Ogunmade said the association would support the NNPC in whatever action it takes to restore pumping of products into the System 2B pipeline in the shortest possible period.

    He said that the current products rationalisation within the southwest depots was as a result of the vandalised pipeline at Arepo, which has caused the entire nation a setback in the petroleum distribution sector.

    “We commiserate with the management of NNPC/PPMC on their staff that were attacked at Arepo in the course of repairing the vandalised pipeline. We promise to support the management of NNPC/PPMC in whatever action they will take in restoring the System 2B pipeline in the shortest possible period.

    “We also want to appeal to the Federal Government not to surrender to vandals by ensuring the quick repair of the System 2B pipeline. The effect of leaving the pipeline unrepaired is scarcity of products all across the country,” he said.

    The group also appealed to the government to put in place measures that would holistically address the issue of pipeline vandalism. “Strong mechanism should be put in place to checkmate activities of vandals not just on NNPC pipeline network but all oil and gas infrastructure. We also urge the National Assembly to put in place laws that will ensure that vandal are punished,” they added.

    Ogunmade said: “We also plead with host communities of NNPC right of ways such as Magboro, Magbon, Arepo, Ogere, Ijedodo, Isawo, Ogolonto in Ikorodu and others, to cooperate with the PPMC management in ensuring the pipelines are protected. Communities where the pipelines passed should be very security-conscious to drive the local economy.”

    He added that the level of pipeline vandalism in the country is getting worrisome and needs divine intervention.

    The NNPC said oil thieves opened fire on a team of engineers and technicians of the PPMC that came to repair the pipeline and killed three.

  • Arepo NNPC killing:  Police arrest six suspects  

    Arepo NNPC killing: Police arrest six suspects  

    Operatives of the Police Special Task Force on Anti-Pipeline Vandalism Unit, Force Headquarters Annex Lagos, have arrested six suspected vandals alleged to have participated in the incident that led to the killing of three Nigerian National Petroleum Corporation (NNPC) staff at Arepo Village, Owode in Ogun state.

    Those arrested are Posibi Ruben, Imerepmamu Ijebu Joel, John Aye Isaiah, Saheed Onisa Mudashiru, Ineye Okpose and Timi Gnungunu.

    Joel told investigators he knows where they buried the NNPC officials.

    He said: “I don’t know the exact spot where the killed NNPC officials were buried but my friend called Showebune told me the NNPC official were killed and buried at a land across the river.

    “I know the land where they were buried but I don’t know the exact spot.

    “Shortly after the incident, my landlord told me to be careful that my Ijaw brothers have caused trouble in the area by killing the NNPC officials who came for maintenance.’’

    He confirmed Tokuwa, Egbe, Egbekowhea, John Togo and Bashiru killed the NPPC officials, adding, “I know their houses and I can take the police there.”

    Last August, suspected vandals burst pipelines to siphon petroleum products at Arepo village, leading to a fire outbreak.

    Maintenance engineers sent by the NPPC to repair the ruptured pipeline were killed while carrying out the exercise.

    The hoodlums, using canoes and speedboats, reportedly descended on the engineers and other security operatives at the scene.

    The Assistant Commissioner of Police –in- Charge of the Task Force, Friday Ibadin, confirmed the arrests.

    Ibadin said the police have been on the trail of the suspected vandals since the incident occurred.

    According to him: “We got a tip- off that the same vandals who escaped after the incident were back to continue their normal business of vandalisation.”

    Policemen led by the Lagos Sector Commander, Mr. Onaghise Osayande, a Deputy Superintendent (DSP), stormed the area and arrested those suspected vandals.

    About 200 gallons of 25 litres of Premium Motor Spirit (PMS) were recovered with hundreds of abandoned empty gallons.

    It was discovered the suspects knew what happened to the dead NNPC officials during investigations.

    Another suspect, John Aye Isaiah, popularly known as JTF, said: “Two weeks ago, I came back from a church programme and heard that some guys went to quench the fire.

    “I heard they exchanged fire with them and they killed the NNPC, the security and people that went there for the operation.

    “I know some of the people involved. They include Nduka, who stays around Isawo in Ikorodu and Beekay Austin, who lives at Ikorodu.

    “Others are Pasco, Epeu and Peresi, who all stay in Ikorodu.”

    He added: “I am not a vandal but sometimes I do buy PMS from them at cheaper prices.”

    Another suspect, Ineye Okpose, popularly known as pastor, advised the police to direct their search to Ondo state as he understood the remaining suspects have relocated.

    “They should look out for one notorious vandal called Togo, who happens to be my neighbour. I overheard when they were arguing with his boys that it’s time to relocate to another state as the police is coming for an arrest,” he said.

    Force Police spokesman, Frank Mba, a Chief Superintendent (CSP), said that police are on the trail of the other suspects still at large.

    He called on the Arepo community to help fish out the hoodlums.

    The suspects, he said, would soon be charged to court after completion of investigations.

  • Fuel scarcity… return of a monster

    Fuel scarcity… return of a monster

    From Lagos to Maiduguri, Sokoto to Port Harcourt, Ilorin and Yola, the tales are similar. The pumps are running dry. Nigerians are at the mercy of black marketers, who smile home after selling petrol at cut-throat prices. Yet, concerned agencies appear helpless in their search for an enduring solution, writes BUNMI OGUNMODEDE

     

    ABOUT three weeks ago, residents of Abuja and its environs woke up to discover that many of the fillings stations had no Premium Motor Spirit (PMS), popularly called as petrol to dispense from the pumps.

    Rather than disappear, what began like a moonlight tale in the Federal Capital Territory (FCT) had spread like a fire in the harmattan haze to other parts of the country, pushing the price of the product much higher than the approved pump price for a litre.

    In a move to stave off a nationwide scarcity, Finance Minister Dr Ngozi Okonjo-Iweala recently relocated to Lagos. Her mission was to persuade oil marketers to shelve their plan to shun the importation of refined products.

    Members of the Major Oil Marketers Association of Nigeria (MOMAN) are bitter that the Federal Government has defaulted in reimbursing them with the investments they sunk into fuel importation, even after the verification of subsidy claims by appropriate regulatory agencies.

    Such investments, they argued, were secured as loans from financial institutions and the interests would continue to mount for as long as they delay in paying back.

    Despite the queues for products at the filling stations, the Nigerian National Petroleum Corporation (NNPC) claimed it has enough stock at the depots to meet consumers’ demand for one month.

    It blamed the long queues on what it called ‘artificial scarcity’, urging Nigerians to avoid panic buying.

    The lingering scarcity, which found its way to the Southwest states last week, crept into Lagos, Nigeria’s industrial hub, last weekend, with many stations running out of supply.

    On Monday, Lagosians woke up to see long queues at the filling stations. Some motorists, out of desperation, bought fuel from the black market for as much as N200 per litre as against the official price of N97.

    In Ondo and Ekiti states, price has gone up as high as N150 a litre at filling stations. The black marketers are at liberty to fix their own prices.

    The situation is worse in the North where a four-litre gallon sold for N700 yesterday.

    Across the country, more filling stations are joining by the day the growing numbers of outlets  displaying the “No fuel” notice.

    Major highways and streets in city centres have become sale points for black marketers, who are seen lining  the roads with kegs and beckoning on motorists to patronise them.

    Isiaka Yahaya, Auditor-General of the Sahara Unit of Petroleum Tanker Drivers (PTD), said the scarcity might linger in Lagos for some time.

    According to him, the refusal of marketers to import product is behind the scarcity. Yahaya said that the marketers could not import petrol because of the government’s failure to settle the marketers’ subsidy claims.

    But the NNPC, through its acting spokesman Fidel Pepple blamed it all  on the destruction of the corporation’s pipeline by oil thieves at Arepo,  Ogun State.

    Pepple said the corporation has not been able to repair the damaged pipeline following the killing of three of its engineers by hoodlums, suspected to be bunkerers.

    The engineers were deployed to fix the vandalised pipeline. Pepple warned that the scarcity, though artificial, might persist if adequate measures are not put in place by the authorities to guarantee the safety of its officials.

    According to Pepple, the development has forced the corporation to bridge products by trucks as against the pipeline.

    He said the NNPC was forced to the shutdown System 2B – a major pipeline that evacuates between nine to 11 million litres of fuel from Lagos to Ibadan, Ilorin and the North, due to serious vandalism by the oil thieves.

    He said: “The NNPC is bridging products from the depots at Atlas Cove, Satellite and Apapa to Ibadan, Kwara and other Southwest states. But it is a little difficult to bridge as much as 11 million litres of fuel per day through trucks, which ordinarily is easily done through pipelines.

    “Besides, the repairs of the vandalised pipeline may take some as the corporation would not risk the lives of its engineers in a bid to fix a pipeline, until their safety is guaranteed.”

     

    Beyond the NNPC explanation

     

    There is more to the scarcity than the claim that the damaged pipeline is the cause.

    Yahaya alleged that only one depot in Apapa was loading trucks with the product.

    He said: “Out of the more than 10 depots in the area, only one was loading trucks and the loading capacity is going down daily.

    “Before, 200 trucks were loading, but now, hardly would 60 trucks load in a day.”

    He urged the Federal Government to engage the marketers and other stakeholders in the sector in dialogue to ease the suffering of Nigerians.

    The National Union of Petroleum and Natural Gas Workers (NUPENG) also urged the Federal Government to call on the NNPC and its Petroleum Pipeline Marketing Company (PPMC) subsidiary to repair the vandalised pipeline at Arepo.

    Lagos zonal chairman of NUPENG Tokunbo Korodo, who made the call, warned that the tank farms in Lagos were drying up as a result of the disagreement between the Federal Government and oil marketers who have not been importing enough fuel in recent times.

     

    NNPC still owing FAAC N351b

     

    The NNPC has so far paid N99 billion in 13 installments into the Federation Account. The payment is the refund of the corporation’s outstanding debt which now stands at N351 billion.

    The debt arose in the aftermath of a forensic audit, which discovered that the NNPC had, at various times, shortchanged the federation to the tune of  N450 billion.

     

    Call for a summit to end scarcity

     

    As Nigerians groan under a fresh round of fuel scarcity across the country,  former Kwara State Governor  Dr Bukola Saraki is calling for a stakeholders’ summit to find a lasting solution to the problems surrounding the oil subsidy regime.

    Saraki, who is the Chairman of the Senate Committee on Ecology and Environment, was the first to raise the motion for the investigation of the subsidy regime in the upper chamber of the National Assembly.

    According to him, with the ongoing experience of Nigerians,  the time has come for a serious dialogue among the stakeholders.

    He said: “The facts are very clear now that it is a difficult issue. What the government should do is to convene an all-stakeholders’ meeting involving the government, oil marketers, labour unions among others to discuss the way forward because we can’t run away from this thing, otherwise we will continue to have scarcity.”

     

    Subsidy claims for

    2011 cleared

     

    Going by the records made available by the Federal Minsitry of Finance, N259.3 billion, being the outstanding subsidy claims for 2011 had been cleared by August. Additional N78. 8 billion was paid in respect of this year’s outstanding.

    Twenty-four marketers, whose claims were verified, shared N78, 899,342, 509.65. The 2011 outstanding claims of N259, 339,041,657.85 was paid to 79 companies on August 22.

     

    Why marketers

    shun importation

     

    As of the last count, the Ministry of Finance has an outstanding debt of N100 billion to pay fuel importers and oil marketers from the 2012 Appropriation.

    The non-reimbursement of the subsidy claims to the importers, who has been cleared by the Petroleum Product Pricing and Regulatory Agency (PPPRA) has widened the  gulf between the government and the companies.

    Already, the importers have not only been incapacitated to import PMS, but facing intense heat from their creditors who demand the repayment of their loans and the accumulated interests.

    A MOMAN source, who pleaded for anonymity, said:  “It is not that we are not importing, but who would risk massive importation of refined products when huge debts are still hanging and remain unsettled by the Federal Government? This explains why the terminals are not filled to capacity.”

    The source blamed the scarcity being experienced nationwide on the delay in settling the outstanding debts.

    He said: “While the Federal Government is too slow in its verification exercise, the banks are happy with skyrocketing loan facilities. The same government is not ready to provide guarantees that they will be responsible for the accumulated bank charges.”

     

    Dilemma of Dr. Okonjo

     

    Although, the minister had at a parley she held with oil marketers  penultimate week, assured the verified outstanding would be cleared, but the reality that the N888 billion appropriated for fuel subsidy in the 2012 Budget is grossly inadequate is becoming clearer by the day.

    The only option open to the former Managing Director of the World Bank is to go cap-in-hand to the National Assembly for more funds.

    But as the eye of the world financial regulators, including the Brentwood Institutions, it is unthinkable that an internationally-acclaimed economic expert will indulge in budget deficit.

    The advice from the institutions is that developing countries should avoid running a deficit budgetary system.

     

    The PPPRA intervention

     

    A number of policy changes were carried out by the PPPRA’S Executive Secretary, Mr. Reginald Chika Stanley, who was appointed in November 2011.

    Stanley’s reforms are designed to  bring stability into the supply and distribution of petroleum products  by ensuring availability.

  • Some of the PPPRA reforms

    •Redeployment and reorganisation of management and staff  structure

    •Restriction of participation in importation to only owners of coastal discharge/depot facilities  from 128 to 42 initially and to 39 presently)

    •Introduction of 3-3-2 system for the engaged independent inspectors (three inspectors to validate vessel arrival;  three to validate vessel discharge into shore tanks; two to validate truck-outs from the storage depot.

    •Taking physical control of discharge valves at deports to prevent possible back loading.

    •Obtaining  NNPC commitment to comply with all PPPRA requirements for PSF processing just like all the other marketer

    •Rejecting “homogenised cargo” from multiple vessels with no defined origins for proper verification.

    •Ban on cargo from storage tanks in West African coasts except from established refineries and blending plants to eliminate round tripping.

    •Participating banks to validate sales with bank statements for 3rd party discharges.

    •Pre-qualification of  suppliers to ensure that only credible and professional suppliers engaged in the business.

    •Banning the use of Bills for Collection by all PSF participants beginning from Q3 2012 owing to abuses to which the instrument was put in the past.

    •Subscribing to Lloyd’s List intelligence “Tanker Channel/Sea Searcher

    •Engagement of consultant to review the Petroleum Products Pricing Template. Currently, the PPPRA-template which was developed to cover the interests of all stakeholders in import-parity-price-model-based.

  • Interbank rates climb as NNPC, forex drain cash

    Interbank lending rates climbed to an average of 16.33 per cent last Friday, compared with 13.5 per cent last week, on the back of cash withdrawals by the state oil firm and foreign exchange purchases.

    The market according to Reuters opened with a negative balance of N42 billion ($266.08 million) on Friday, after the NNPC recalled a portion of its deposits with some lenders, and the Central Bank of Nigeria (CBN) debited the accounts of banks for foreign exchange purchased at a Wednesday auction.

    The NNPC supplies the bulk of dollars traded on the interbank foreign exchange market and usually withdraws a portion of the naira proceeds to its account with the CBN to fund its obligations to the government. It sold about $450 million to some banks two weeks ago.

    The secured Open Buy Back (OBB) rose to 15.75 per cent, compared with 12 per cent last week, 3.75 percentage points above the CBN’s 12 per cent benchmark rate, and 5.75 percentage points above the Standing Deposit Facility (SDF) rate.

    Overnight placement closed at 16.50 per cent, from 14 per cent last week, while call money rose to 16.75 per cent, compared with 14.50 per cent last week.
    “We see rates falling by the middle of next week on the back of improve liquidity from budgetary allocations and open market operations (OMO) treasury bill maturities,” one dealer said.

    A total of N570 billion was shared between Nigeria’s three tiers of government – federal, state and local – on Friday and about half of the amount belonging to state and local governments is expected to flow through the banking system by Tuesday.

    The Federal Government plans to sell N60 billion in 5- and 7-year bond next week and this is expected to reduce liquidity, although dealers said it would be unlikely drive rates any higher.

  • Brokers protest slash in  Local Content briefs

    Brokers protest slash in Local Content briefs

    Brokers have kicked against the reduction of firms handling local content briefs for the Nigerian National Petroleum Corporation (nnpc).

    The corporation, which engaged 34 firms for the exercise last year, cut down the figure to 14 this year, a measure operators criticised as anti-industry growth.
    President, Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB), Tunde Oguntade, said though the number fell below brokers’ expectation, they have expressed their desire for more brokers to be involved in the future.

    He noted that brokers are unaware of the reason for the reduction, adding that it would have been better if more brokers were considered in line with the Local Content Law.
    Nonetheless, the implementation of the law has begun to have impact on the economy in terms of human capacity development, especially in oil and gas, more employment opportunities and greater retention of capital that would have been spent as consultancy fees and salaries for expatriates.

    Of interest is the current development in the industry, where underwriters and insurance brokers have shown greater capacity to insure and reinsure the high net-worth property of government and its agencies, as well as those parastatals.

    A university don, Mrs.Joy Warikke-Briggs, said the development, notwithstanding, the insurance industry remained one of the greatest beneficiaries of the Local Content Act, signed into law by President Goodluck Jonathan in 2010.

    She told The Nation that through the local content law, the government is seeking improved standard of living of the citizens and higher revenue to government from company and personal income taxes. She added that the resultant economic growth therefrom, would be in form of increased production of goods and services, higher industrial capacity utilisation, direct and indirect employment generation, as well as improved commercial and trading activities.

    The NCRIB boss called on the government to encourage the participation of more brokers in NNPC insurance since the business is of high volume.

    He said: “One cannot say the reduction is healthy looking at the Local Content Act. They have the right to appoint; it is only the government that can decide if what they have done is in order. Ideally, they should have accommodated more brokers given the volume of money involved in the business.”

    He noted that to meet the 70 per cent engagement provided for by the Local Content Act, brokers who were denied opportunities in the past have strengthened their operations.

    He said only 34 of 572 brokers were appointed for the business last year, adding that though the number was low, it created opportunity for the brokers to acquire knowledge on the workings of the oil and gas business.

    “Years past, it used to be Lloyd of London that handled the account and repatriated all its gains, leaving the Nigerian economy high and dry. That is now history because the Local Content Law has effectively put paid to that, Mrs. Warikke-Brigs, said.

    Suing for the appointment of more indigenous brokers to handle the account, Oguntade argued it would boost the industry’s capacity for growth.

    He said local underwriters have a very good share of the market. “We are looking at 70 per cent as stated in the law, that means that the 70 per cent premium that used to go outside the country in the past, now hasve to be with local underwriters.

    “This would enable underwriters to improve their capacity, training, source good rates and observe their corporate social responsibilities.

  • No pipeline vandalism along NNPC Osisioma depot line- Abia govt.

    No pipeline vandalism along NNPC Osisioma depot line- Abia govt.

    The Abia State government has denied that the recently reopened Osisioma Depot of the Pipelines and Products Marketing Company [PPMC] in Aba has been facing series of pipeline vandalism, insisting that the pipeline has been duly monitored by soldiers and other security agencies.

    Speaking with newsmen in Umuahia, the state commissioner for petroleum and natural resources, Don Ubani said the state government will never compromise the safety of the pipeline after working hard to see to the reopening of the depot eight years after being in a comatose situation.

    Ubani said since the depot was reopened, the economic activities around the area has picked up, pointing out that it will help to keep the youths of the state in check and reduce the constant pipeline vandalism being noticed before now.

    The commissioner, who was reacting to a letter allegedly written to the state government by the PPMC over the alleged vandalism along the pipeline leading to the Osisioma depot, said the letter did not emanate from the owners of the depot.

    He appointed fingers at some unscrupulous petroleum marketers who want to create problems that will make the PPMC to stop the supply of the Premium Motor Spirit [PMS]. “They want to create problems so that petrol dealers will come to their farm tanks to buy fuel,” he said.