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Tag: NNPC

  • NNPC pledges commitment to gas development

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has expressed the corporation’s commitment to support any project that would encourage production and utilization of natural gas for the benefit of the nation.

    Disclosing this recently at the signing ceremony of the Nigeria Liquefied Natural Gas Limited (NLNG) Train 7, Nigerian Content Plan, in Abuja, Dr. Baru, who was represented at the occasion by Chief Operating Officer (COO), Gas and Power, Engr. Saidu Mohammed, said the signing ceremony was important as one of the major processes to bring the Train 7 project on board.

    The NNPC spokesman, Mr. Ndu Ughamadu disclosed this in a statement Tuesday.

    He noted that the project had a lot of potentials that would benefit the nation, but called on the Nigerian Content Development and Monitoring Board (NCDMB) to ensure that Train 8 and any other LNG projects in the future should be designed to accommodate more local content in the fabrication of facilities.

    Commenting on the corporation’s interest in the signing agreement, he said that the Train 7 project was in line with NNPC’s vision of prioritizing the use of natural gas to the greater benefit of Nigerians.

    “Apart from being 49 per cent shareholder in NLNG, we are more interested because it will enhance the development of gas in the country. Bringing the gas to this Train 7 would involve a robust gathering system that will connect trunk lines from offshore to the hinterland, looking beyond NLNG to domestic market, which will open up a flexible system that allows us to swing gas either way, depending on need. This implies that if NLNG is not running, the gas meant for it can be sent to the local market, and when the local market has difficulty in getting the gas consumed, same can be sent back to NLNG.

    READ ALSO: NNPC boss seeks energy integration in Africa

    Baru stated that NNPC’s 49 per cent share in the NLNG meant more dividends to the corporation, even as he advised NCDB to make room for more Nigerian Content in subsequent LNG projects

    The GMD called on other partners in the project to obey the rules of engagement.

    “My fellow shareholders please let us continue to provide the necessary support that NLNG as a company requires and always remain compliant with what we are signing today”.

    Earlier in his address, NLNG Managing Director/CEO, Engr. Tony Attah, expressed gratitude to the management of the NNPC for its roles in seeing the project to this critical stage.

    Speaking in the same vein, Engr. Simi Wabote, NCDMB Executive Secretary, said that NNPC’s presence at the signing ceremony was an indication of the corporation’s commitment to ensuring that the Train 7 project gets to Final Investment Destination (FID) this year as projected.

  • NEITI lauds NNPC, DPR others on compliance

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has applauded its stakeholders in the oil, gas and mining sectors of the nation’s economy for implementing the principles of the global Extractive Industries Transparency Initiative (EITI). It said this had led to the ranking of the country’s as making “Satisfactory Progress”.

    Its Executive Secretary, Mr. Waziri Adio, expressed delight over cooperation extended to NEITI by government agencies including the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue (FIRS), Department of Petroleum Resources (DPR), the Central Bank of Nigeria, Ministry of Mines and Steel Development and its agencies like the Mining Cadastre Office, Mines Inspectorate Department, were outstanding.

    In a statement, Adio also expressed appreciation to the companies under the canopies of Companies Forum, Miners Association of Nigeria and Oil Producers Trade Section (OPTS) operating in the extractive sector that had given NEITI  support during the validation.

    In addition, the civil society organisations including Publish What You Pay (PWYP), Media Initiative for Transparency in Extractive Industries (MITEI) and the Media among others had contributed in no small measure towards the ranking in the highest category of Nigeria by the EITI.

    “This highest ranking by the EITI is a major milestone for Nigeria and the invaluable roles of relevant millennium development agendas (MDAs), Companies and civil society organisations (CSOs) working to push for reforms in the sector are hereby duly acknowledged and deeply appreciated by NEITI,” he said.

    He said the current trend of reforms in the country’s extractive sector made possible by the determination and commitment of its stakeholders to see change happen in a sector that is considered for now to be the life wire and mainstay of the economy was one of the determining factors for the ranking of the country.

    Adio, who had earlier personally written letters to the different stakeholders to officially inform, congratulate and thank them about Nigeria’s achievement of the highest status in EITI implementation noted their support during the validation exercise which saw Nigeria make history again was  phenomenal and should be sustained.

    He reiterated the commitment of NEITI to continue to work closely with its stakeholders to push for reforms and enthrone transparency and accountability in the extractive sector in Nigeria.

    “On our part, we are committed to keeping Nigeria in this leadership position in the EITI community which our country voluntarily joined in 2003 and we will continue to crave your support to us as an organisation and to the full actualization of the NEITI mandate as enshrined in the NEITI Act 2007,” Adio said.

     

     

  • NNPC begins rehabilitation of Port-Harcourt refinery

    Nigeria’s effort at ensuring local sufficiency in refined petroleum products was bolstered on Thursday with the formal commencement of the first phase of the rehabilitation of the 210,000 barrels per day capacity Port-Harcourt Refinery complex that comprises the 60,000 barrels per day old Refinery built in 1965 and the 150,000 barrels per day, new Refinery, commissioned in 1989.

    The exercise, flagged–off by an elated Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, at a formal kick–off meeting in the premises of the refinery in Port-Harcourt, came 19 years after the last Turn Around Maintenance (TAM) exercise of the nation’s premier refining plant.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a release in Abuja, said the project would be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.

    The release disclosed that Maire Tecnimont S.p.A is listed on Milan Stock Exchange with interest in international engineering and construction, technology and licensing, and energy business development, adding that the Tecnimont group had operations in 40 different countries, numbering about 50 operative companies with a workforce of about 5,500 employees.

    The NNPC’s spokesman quoted the GMD as saying that at the end of the phase 1, the Refinery complex should be able to reach 60 per cent capacity utilisation.

    Ughamadu stated that NNPC was engaging eni/NAOC as Technical Advisor to support the Rehabilitation of PHRC, saying NNPC/PHRC would leverage eni’s extensive refinery supply chain network and warehouses to procure critical materials for the programme.

    He noted the first phase of the rehabilitation contract which would run for six months will involve detailed integrity check and equipment inspection of the Port-Harcourt Refinery complex beginning from end of March, 2019.

    The integrity test comes as a forerunner to the second phase of the rehabilitation project which entails a comprehensive revamp of the complex aimed at restoring the refinery to a minimum of 90 per cent capacity utilisation.

    Subject to the successful completion of the integrity checks, Phase 2 of the project would be executed on an Engineering Procurement Construction basis by Tecnimont in collaboration with the original builders of the plant, JGC of Japan.

    READ ALSO: We are recruiting, NNPC confirms

    Speaking on behalf of the contractors, Antonio Vella, Chief Officer, Upstream, Eni, said all the companies involved would deploy all available modern resources to ensure effective upgrade of the plant.

    Vella enthused that with the commitment of all parties involved, it was certain that NNPC would be able to celebrate the revamp of the PHRC that would lead to its full capacity utilization on schedule and in full safety.

    Speaking on behalf of the workers unions, Comrade Odor Victor Ayiri, Branch Chairman of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and Comrade Dibiah Joseph, Chairman of the National Union of Petroleum and Natural Gas Workers (NUPENG), jointly pledged the support of workers to ensuring a smooth turnaround of the facility.

    It will be recalled that the NNPC had to abandon its earlier funding strategy by its DSDP Term Contractors/Consortia due to onerous conditions demanded after more than twelve (12) months of negotiations.

     NNPC has resolved to immediate direct funding from internal cash flows while it goes to the financial markets for debt financing.

    NNPC further segmented the Rehabilitation to begin with Port-Harcourt Refinery Complex and then progress to Warri and Kaduna Refinery complexes using the same methodology.

  • NNPC: Kolmani River-II drilling ongoing

    The Kolmani River-II Well which spud-in was flagged off last month by President Muhammadu Buhari is progressing satisfactorily, with drilling so far of 6,700 feet, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said.

    A release yesterday stated that Dr. Baru spoke while receiving an Award presented to him by the Petroleum Technology Association of Nigeria (PETAN) Executive for his landmark achievement in the development of inland basins in the country, especially the drilling of the Kolmani River-II Well and his efforts in deepwater operations.

    Baru explained that the target was 14,200 feet, although the depth could be longer depending on findings, even as he explained to the visiting PETAN Executive that President Muhammadu Buhari should be commended on the progress being made on the drilling of the well.

    Read also: Zimbabwe Tour spurred our resurgence in Namibia, says Okpe

    Prospecting for oil and gas in Kolmani River-II Well is one of the recent foray of the government into inland exploration in parts of the country.

     

  • NNPC records 12.13b trading surplus for December

    The Nigeria National Petroleum Corporation (NNPC) recorded a trading surplus of N12.13 billion in December.

    The corporation’s financial report for December 2018 noted that activities of vandals swelled during the period, pushing pipeline breaches in the country by 34 per cent.

    Group General Manager of NNPC’s Group Public Affairs Division Mr. Ndu Ughamadu spoke in a statement yesterday in Abuja.

    Ughamadu said the increase in the breaches was captured in the corporation’s Monthly Financial and Operations Report for December, 2018.

    He said within the period, 257 pipeline points were vandalised, of which one point failed to be welded and six were ruptured.

    Ughamadu noted that NNPC recorded 197 breaches on it pipelines in November.

    Ibadan-Ilorin, Mosimi-Ibadan, and Atlas Cove-Mosimi network accounted for 90, 69 and 57 compromised points or approximately 34 per cent, 26 per cent and 22 per cent.

    Aba-Enugu pipeline link accounted for seven per cent, with other locations accounting for the remaining 11 per cent of pipeline breaks.

    Despite activities of the pipeline marauders, the NNPC report said the corporation continued to monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, to achieve smooth distribution of petroleum products.

    The statement added that 1.80 billion litres of PMS, (58.17m litres/day) were supplied for the month.

    In December, 1.96 billion litres of white products were distributed and sold by NNPC downstream subsidiary, Petroleum Products Marketing Company (PPMC), compared to 1.09 billion litres in November.

    This consisted of 1.94 billion litres of PMS, 0.0070 billion litres of kerosene, and 0.014 billion litres of diesel. Total sale of white products for December 2017 to December 2018, stood at 21.84 billion litres, and PMS accounted for 20.17 billion litres or 92.36 per cent.

    In terms of value, N241.46 billion was made on the sale of white products by PPMC in December, compared to N146.56 billion in November.

    Total revenue generated from sales of white products for December 2017 to December 2018 stood at N2,778.32 billion, with PMS contributing about 89.63 per cent of total sales with a value of N2,490 billion.

    The NNPC said despite the disturbing reports of breaches on its assets, the corporation posted a positive outlook in December.

    The Monthly Financial and Operations Report said NNPC posted a trading surplus of N12.13billion in December, a leap from past performances.

    The report attributed the positive swing to higher revenue posted by the corporation’s upstream subsidiary, Nigeria Petroleum Development Company (NPDC).

    The 41st edition of the NNPC monthly report cited NPDC’s continuous revenue drive arising from average weekly production of 332,000 bpd as the main driver of the positive outlook.

    NPDC targets 500,000 bpd production in 2020.

    In the gas sector, natural gas production increased by 12.22 per cent at 240.64 billion cubic feet  compared to output in November; translating to an average daily production of 8,021.21 mmscfd.

    The daily average natural gas supply to gas power plants hiked by 5.36 per cent to 774mmscfd, equivalent to power generation of 3,131 MW.

    Of 240.59 bcf gas supplied in December, 151.13bcf of gas was commercialised, consisting of 38.61 bcf and 112.52 bcf for the domestic and export market.

    This translates to a supply of 1,245.48 mmscfd gas to the domestic market and 3,748.47 mmscfd gas to the export market, implying that 62.61 per cent of the average daily gas produced was commercialised while the balance 37.39 per cent was re-injected, used as upstream fuel gas or flared.

    Gas flare rate was 9.15 per cent (729.55 mmscfd) compared with the average gas flare rate of 9.92 per cent (777.37 mmscfd) for December 2017 to December 2018.

  • NNPC boss seeks energy integration in Africa

    The Group Managing Director of the Nigerian National Petroleum Corporation ( NNPC ), Dr. Maikanti Baru, has called for more integration among countries within the West African sub-region towards providing lasting solutions to the region’s numerous energy challenges.

    Baru made the call during a meeting with the United States Energy Secretary, Rick Perry and some African petroleum ministers, on the sidelines of the 19th CERAWeek Conference taking place in Houston, United States.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a release in Abuja Thursday, said Dr. Baru disclosed at the meeting that energy integration across the sub-region was necessary as it would drastically reduce unemployment and restiveness as well as improve the economies of the affected countries.

    “Nigeria as a regional leader has already encouraged regional integration by first putting up the West African Gas Pipeline (WAGP) to ensure gas is available to West Africa. We are also doing the Trans Sahara Gas Pipeline (TSGP), even as we are intent on extending the WAGP to Morocco,” Baru told the US Energy Secretary at the occasion.

    He said the intent was to come up with a West African Power Pool that would put up power plants and other gas-based industries along those areas within the respective countries.

    The GMD said Nigeria’s crude oil production had seen tremendous improvement in recent years, due to Federal Government’s laudable efforts in ensuring security in the Niger Delta region.

    He said Nigeria and US had been very good partners with about $35bn worth of trade between the two countries.

    Earlier in his remarks, the United States Secretary of Energy, Rick Perry, expressed his country’s commitment towards helping Africa achieve energy independence for the benefit of their people.

    “For our part we will support progress by engaging economically as well as championing open markets in societies. We endorse the modernization of critical oil and gas infrastructure which leads to better security and diversification of energy supplies and exports,” he noted.

    Describing innovation as the surest path to energy security, Perry added that once countries innovate, they are greeted with greater economic growth, opportunities and national security.

    “We support efforts to improve the regional interconnectivity. We also see energy access as critical to increasing prosperity and combating the cycle of poverty,” he added.

    He said as the number one producer of oil and natural gas in the world, the US was more than well-positioned to not only share its resources, but also its technology and know-how.

    He said his country would work towards transforming the Africa’s domestic energy systems so that it would provide power, create jobs, foster development, open up new opportunities and improve almost every facet of human existence on the continent.

    “The US is very eager to share its energy resources and expertise with the African continent. As we go forward, we want to be a desired partner in ensuring that the global energy markets are supplied with the diversity of energy sources,” he stated.

    Other Ministers and high level energy executives from African countries such as Ghana, Mali, South Sudan, Namibia, Kenya, Uganda and Sierra Leone participated in the meeting.

  • NNPC eyes investors at U.S energy confab

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru,  is expected to woo investors to the potential investments in the oil and gas sector in Nigeria.

    He is billed to address foreign investors at the CERAWeek, an international energy conference scheduled for Houston, the U.S, today.

    Baru, who will speak during a Special Session titled: Africa: Foundations for New Investment, will be joined by some African petroleum ministers, heads of National Oil Companies (NOCs) and other global energy industry leaders.

    He is expected to discuss the abundant investment opportunities in Nigeria’s oil and gas industry, particularly providing meaningful insights into key investment initiatives as they affect the country’s emerging capital projects within the oil, gas, power and the renewable energy sectors.

    In the same vein, Dr. Baru will be among African oil and gas industry leaders, who will join the U.S. Energy Secretary, Rick Perry, in a private government-to-government meeting on trade engagement between the U.S and African countries.

    Organised by IHS Markit, CERA is a global platform on energy trends and public policy where over 4,000 oil and gas experts convene annually to debate the future of oil, natural gas, renewable energy, power and new technologies.

    This year’s edition will explore other big issues confronting the energy industry, hosting speakers such as U.S. Secretary of State, Mike Pompeo; OPEC Secretary General, Mohammed Barkindo and the  Crown Princess of Denmark, Mary Elizabeth among others.

     

  • NNPC to woo foreign investors at CERA week, Houston

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, will on Monday address foreign investors at the CERAWeek, an international energy conference taking place in Houston, United States.

    Baru, who will speak during a Special Session entitled “Africa: Foundations for New Investment” will be joined by some African petroleum ministers, heads of National Oil Companies (NOCs) and other global energy industry leaders.

    He is expected to discuss the abundant investment opportunities in Nigeria’s Oil and Gas Industry, particularly providing meaningful insights into key investment initiatives as they affect the country’s emerging capital projects within the oil, gas, power and the renewable energy sectors.

    In the same vein, Dr. Baru will be among African Oil and Gas industry leaders who will join the US Energy Secretary, Rick Perry, in a private Government-to-Government meeting on trade engagement between the US and African countries.

    Organised by IHS Markit, CERA is a global platform on energy trends and public policy where over 4,000 oil and gas experts convene annually to debate the future of oil, natural gas, renewable energy, power and new technologies.

    The 2019 edition has the theme: “New World of Rivalries: Reshaping the Energy Future.”

    The year’s edition will also explore other big issues confronting the energy industry, hosting such speakers as U.S. Secretary of State, Mike Pompeo; OPEC Secretary General, Mohammed Sanusi Barkindo and the Crown Princess of Denmark, Mary Elizabeth among others.

  • NNPC to build IPP in Abuja, Kaduna, Kano

    • Firm recovers N771m assets from marketers

    The Nigerian National Petroleum Corporation (NNPC) plans to build more Independent Power Plants (IPP) in Abuja, Kaduna and Kano so as to add 4,0000 megawatts (Mw) of power to stabilise the national grid.

    In addition, it said a fertilizer plant is billed for Brass, Bayelsa State.

    Also, NNPC said it has recovered assets valued at over N771million from marketers who under-paid for petroleum products lifted from the Petroleum Products Marketing Company (PPMC), Kaduna Depot.

    Chairman, NNPC Anti-Corruption Committee, Mike Balami, said the committee, in collaboration with the Federal Government’s Intelligence and Anti-Corruption agencies, the Department of State Security Services (DSS), Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC), recovered the assets from  defaulting marketers.

    Its Chief Financial Officer and Chairman,  Board of NNPC Power subsidiary, Gas and Power Investment Company (GPIC), Isiaka Abdulrazaq, made this known at the inaugural board meeting of GPIC at the NNPC Towers, in Abuja.

    The GPIC was established as a subsidiary under the Gas and Power Directorate to enable the corporation monetise the abundant gas resources in the country for the benefit of the nation’s economy.

    Abdulrazaq said the GPIC is a very strategic company through which the NNPC will create more value for the country, stressing that by the time the IPPs come on stream in Abuja, Kaduna and Kano, the Small Medium Enterprises (SMEs) in the areas would be better for it.

    “The Gas and Power Investment Company Limited (GPIC) is a company which the NNPC has set up basically to focus on how it can create value and monetise the nation’s abundant gas resources. The company will also be focused on developing power stations, fertilizer plants as well as petrochemical plants across the states,” Abdulrazaq stated.

    He said NNPC has set up the board to enable the company achieve its set targets within a very short period of time, saying the board  has mapped out strategies to properly guide the company to enable it achieve its Key Performance Indicators (KPI).

    He said the company will add value in terms of payment of taxes and generating more revenue for the country, stressing that the company and all the IPPs will generate more job opportunities for Nigerians.

    Abdulrazaq said the Fertilizer Project in Brass, will produce fertilizer to boost agriculture in the Southsouth and other regions of the country.

    Also, the Chief Operating Officer, Gas and Power,  Saidu Mohammed, said that the coming on stream of GPIC will help the NNPC transform into an integrated energy company with the production of 4,000Mw of power at strategic locations.

    He said all relevant stakeholders in the power sector are in alignment with the NNPC with the establishment of the GPIC.

     

  • NNPC recovers N771m forfeited assets from marketers

    The Nigerian National Petroleum Corporation ( NNPC ) has recovered assets worth over N771million from some marketers who had underpaid for petroleum products supplied to them from Petroleum Products Marketing Company (PPMC) Kaduna Depot.

    The Chairman of NNPC Anti-Corruption Committee, Mr. Mike Balami, said the committee, in collaboration with Federal Government’s Intelligence and Anti-Corruption agencies such as the Department of State Security Services (DSS), Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission, recovered the assets from the defaulting marketers.

    A release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in Abuja on Tuesday, said NNPC Anti-Corruption Committee brought in forensic experts to uncover the shady deals by some of the marketers affected.

    Balami disclosed that some of the assets recovered include filling stations, water factories and six sports utility vehicles, adding that the forensic investigation would be extended to the other depots across the country to stop the bleeding of the national oil company.

    He noted that it was established that the affected marketers lifted petroleum products from the PPMC Kaduna depot without evidence of payment and when confronted with the evidence they admitted to the offence and failed to pay their liabilities.

    He said that NNPC Group Managing Director, Dr. Maikanti Baru, was passionate about stopping all the leakages in the corporation, stressing that the forfeited assets would be handed over to NNPC Corporate Asset Boarding and Disposal Committee (CABDC) for immediate disposal.

    Balami added that investigation into the lifting of petroleum products without evidence of payment was continuing, urging all relevant stakeholders to support the NNPC Anti-Corruption Committee in its onerous task of recovering all its monies outside NNPC’s system.

    He said that this was the first time that the NNPC would be taking over assets forfeited by marketers who defaulted in their terms of engagement.