Tag: NNPC

  • NNPC seeks investment in $48b oil industry

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru has urged investors to take advantage of the over $48billion investment opportunities available in the upcoming capital projects in the country’s oil and gas industry.

    Speaking at a Panel Session on: Insights on Future Exploration Hotspots: Opportunities for Africa’s Oil & Gas Industry under the sub-theme: The New Frontier for Africa’s Oil & Gas at the 2019 International Petroleum Week conference  in London, he said the continent’s energy outlook was looking positive amid difficult operating and economic headwinds.

    In a statement, NNPC said Baru pointed out that over 41billion barrels of oil and 319trillion cubic feet (Tcf) of gas were yet to be discovered in sub-Saharan Africa alone, while between 2008 and 2017, exploratory success in the sub-region was at about 45 per cent.

    He said there has been a surge in capital expenditure (CAPEX) across Africa’s oil and gas sector, with close to $194billion earmarked to be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa.

    “Out of this $194billion, Nigeria accounts for $48.04 billion (over 24.8 per cent) of the total CAPEX coming into upcoming projects in Africa over 2018 to 2025, with over 20 planned projects,” Baru said.

    He said 23.8 per cent of the CAPEX in Africa would be spent in Mozambique, 11.3 per cent in Angola while about 29.2 per cent would be spent in Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria and Kenya combined.

    Baru said with over 14 oil producing countries, Africa currently accounts for 7.5 per cent (126.5billion barrels of crude oil) and 7.1per cent (488 Tcf of gas) of global proven oil and gas reserves respectively.

    He said in terms of production, the continent accounted for 8.7 per cent (8.1million barrels per day) of global oil production and 6.1 per cent (21.8bscfd) of global gas production, even as it consumed 4million barrels of oil per day and 13.7bscfd of gas (equivalent to 4.1 per cent and 3.9 per cent of global oil and consumption respectively).

    Shedding more light on investment opportunities in Nigeria,  Baru said the NNPC’s Frontier Exploration Service was currently drilling the Kolmani River-2 Well where desktop estimates revealed that about 400Bcf of gas is expected to be encountered.

    He said several new frontiers for exploration opportunities abound in Nigeria, even as offshore discoveries in the country have mostly been limited to between 1,000 – 1,500m of water depth.

     

     

  • NSE lauds NNPC for women engineers’ support

    The Nigerian Society of Engineers (NSE) has commended the Nigerian National Petroleum Corporation (NNPC) for its role in the advocacy of science and engineering-based education for the girl-child through support for the activities of the Association of Professional Women Engineers of Nigeria (APWEN).

    President Nigerian Society of Engineers (NSE), Adekunle Mokuolu, stated this in Abuja while receiving NNPC’s management led by the Corporation’s Group Managing Director, Dr Maikanti Baru, to the headquarters of the society.

    NNPC spokesman Mr. Ndu Ughamadu, said the NSE chief disclosed that by identifying with APWEN in its quest to engender a sound foundation for female engineering professionals in the country, the corporation was taking a step that would illuminate the nation’s engineering and technological landscape a few years from now.

    Mokuolu particularly commended the NNPC boss whom he described as a worthy first class ambassador of the engineering profession, saying Baru was not just a first class scholar but also a worthy administrator.

    Baru said the visit was part of the corporation’s strategic stakeholder engagement with professional bodies with which the corporation shares common goals of championing Nigeria’s march towards strengthening professionalism, capacity development, local content and industrialization.

    He noted that the NSE has over the years, continued to play a pivotal role in transforming engineering profession in Nigeria.

    The NNPC chief also said the Corporation would continue to identify with NSE’s resolve to groom professional engineers as well as promote and entrench engineering excellence in the country.

  • NSE lauds NNPC on women engineers

    The Nigerian Society of Engineers (NSE) has commended the Nigerian National Petroleum Corporation (NNPC) for its exemplary role in the advocacy of science and engineering-based education for the girl child through support for the activities of the Association of Professional Women Engineers of Nigeria (APWEN).

    President, Nigerian Society of Engineers (NSE), Engr. Adekunle Mokuolu, stated this yesterday in Abuja while receiving NNPC’s management led by the corporation’s Group Managing Director, Engr. Maikanti Baru, to the Headquarters of the society.

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    The NSE president said by identifying with APWEN in its quest to engender a sound foundation for female engineering professionals in the country, the corporation was taking a step that would invariably illuminate the nation’s engineering and technological landscape a few years from now.

     

     

  • I’ll sell NNPC, if elected president, Atiku insists

    People’s Democratic Party (PDP) presidential candidate Alhaji Atiku Abubakar yesterday in Kaduna reiterated his resolve to privatise the Nigerian National Petroleum Corporation (NNPC), if elected President in Saturday’s polls.

    Atiku, who spoke while interacting with stakeholders from the 23 local government areas of Kaduna State at the Trade Fair Complex, said his resolve to sell the national asset was informed by the fact that NNPC has since inception in 1963 failed to meet its expectation of refining crude oil for the country’s consumption.

    He insisted that he would sell off the NNPC to provide more development.

    His decision, Atiku added, was based on the fact that only very few were benefiting from the operations of the national asset at the expense of the Nigerian people.

    Towards this, Atiku challenged President Muhammadu Buhari, who is equally the Minister of Petroleum, to relinquish the running of the NNPC to ordinary people to show his level of sincerity.

    He said contrary to the widespread rumours that he would sell the NNPC to himself, “the NNPC will be sold to Nigerians with money to buy it.”

    Atiku added that PDP under the President Olusegun Obasanjo administration has made many Nigerians millionaires.

    “Its 63 years that Nigeria found crude. But up till now, we are yet to refine petrol and kerosene by ourselves. We have refinery in Kaduna, Warri and Port Harcourt ,but saboteurs stopped them from working. “

    He also said his government would not be run by any cabal as is being experienced by the present government.

    He averred that the present government of the All Progressive Congress (APC) has inflicted the nation with pains and poverty because, according to him, the President was not in-charge.

    On his part, the National Chairman of the PDP, Prince Uche Secondus told the  state stakeholders to resist every form of provocation to warrant postponement of election in the state.

    According to him, “The governor is running from one place to another seeking federal support to shift election; all such efforts will fail.”

  • I will sell NNPC to wealthy Nigerians if elected-Atiku

    The Presidential candidate of the People’s Democratic Party (PDP) Atiku Abubakar on Wednesday in Kaduna reiterated his resolve to privatise the Nigerian National Petroleum Corporation (NNPC), if elected President on Saturday.

    Atiku, who reiterated this while interacting with stakeholders from the 23 local government areas of Kaduna state at the trade fair complex, said his resolve to sell national assets was informed by the fact that NNPC has since inception 1963 failed to meet its expectation of refining crude oil for the country’s consumption.

    He insisted he will sell off the NNPC to provide more development, stressing his decision is against the backdrop that only very few are benefiting from the operations of the national asset at the expense of the masses.

    Atiku challenged President Muhammadu Buhari, who doubles as the Minister of Petroleum, to relinquish the running of the NNPC to ordinary people to show his level of sincerity.

    Contrary to the widespread spread rumors that he will sell the NNPC to himself, the former Vice President said: “The NNPC will be sold to Nigerians with money to buy it.”

    He explained: “Its 63 years Nigeria found crude but up till now we are yet to refine petrol and kerosine by ourselves.

    “We have refineries in Kaduna, Warri and Port Harcourt but saboteurs stopped them from working.”

    He also said his government will not be run by any cabal such as experienced by the present government.

    He averred that the present government of the All Progressives Congress (APC) has inflicted the nation with pains and poverty because according to him, the President is not in-charge.

    Speaking on the President Muhammadu Buhari’s recent security directive on ballot snatching, Atiku said PDP will not tolerate any form of ballot snatching and indulge in any act whatsoever against the electoral law.

    He insisted the order to kill any ballot box snatcher is undemocratic.

    The National Chairman of the PDP, Prince Uche Secondus, told the state stakeholders to resist every form of provocation to warrant postponement of election in the state.

    According to him: “The governor is running from one place to another seeking federal support to shift election, all such efforts will fail.

    “I urge us all to be resolute to vote Atiku Abubakar in the coming election and all other candidates of the PDP in all the elections.

    “Resist all forms of provocation, because what the government of the day wants is to cause violence so as to shift election particularly in the strong holds of the PDP, we must not fall for their plans.

  • Nigeria, India partner on energy security

    Nigeria and the Republic of India have pledged to work more closely to enhance energy security of both countries.

    The consensus came on the heels of a visit Tuesday in Abuja of the Indian High Commissioner to Nigeria, His Excellency, Abhay Thakur, to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, a release by the corporation’s Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, has said.

    The release stated that Dr. Baru, who acknowledged the role of Indian companies in Nigeria, called on them to extend their presence to the downstream sector of the Petroleum Industry to leverage on the enormous opportunities there.

    He assured the High Commissioner of NNPC’s commitment to further strengthen the existing relations between both countries in the energy sector.

    The GMD noted that with the refineries up for repairs, the corporation would need technical assistance from Indian companies.

    Speaking earlier, the Indian High Commissioner, His Excellency, Thakur, commended Nigeria for its support to India in the area of energy security, stressing that Nigeria had been contributing significantly to India’s energy needs.

    He said India was open to further strengthening its collaboration with Nigeria through regular dialogue and exchange of technical know-how.

    “Specifically, India is already sourcing almost 10% of its energy requirement from Nigeria and we look forward to further strengthening of this cooperation across various sources of energy, not only oil, but also in gas, solar energy and other renewable sources”, he said.

    He commended the Hon. Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and the GMD on the successful hosting of the recently concluded Nigerian International Petroleum Summit (NIPS) while assuring of his country’s continued support.

  • Gas flaring: Baru charges gas companies to help in hastening process

    Federal government has charged gas producing companies in the Niger Delta to do more to help government in its efforts to end gas flaring by taking advantage of available gas processing plants around the region.

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, who gave the charge on Thursday at the commission of the Egbaoma Gas Processing plant in Ebedei community, Ukwuani council area of Delta state, also said government is working on a gradual phasing out of the gas flare era in the oil/gas-rich Niger Delta region.

    He said with the operations of the Ebedei processing plant, the gas flare in the Umutu gas field should be out before the end of the year, charging all gas producing companies in the Delta area to take advantage of the opportunities now provided by PNG Gas Limited in the area and help in the crusade to end gas flaring in the country.

    Dr Baru, who commended the operators of the gas processing company; PNG Gas Limited, for pioneering gas development efforts locally, also said the federal government is aggressively pursuing an expansion of domestic gas supply capacity to 5 bscfd (billion standard cubic feet per day).

    As part of the expansion project, Baru informed that the gas pipeline infrastructure network system is equally being expanded, adding that the Obiafu-Obrikom to Oven (OB3) gas pipeline, a 2 bscfd capacity pipeline,which is a project aimed at the creating a gas grid across the country, should be ready before the end of this year’s second quarter.

    Address journalists after the inspection and commissioning of the gas plant, Baru said “my visit here is to reassure the investors here that the gas that is being flared will go into the OB3 and that this flare, God willing, before the end of this year will be out.

    “I’m also encouraging the other producers who are flaring to connect their gas into this gas plant so that they can add value by processing it, removing the liquid that they can sell at a higher value and of course, putting out the flares and monetising the lean gas.

    “At this juncture, may I urge the operators whose assets are at close proximity to this plant and the OB3 pipeline to seize the opportunity presented by this gas plant to collaborate with PNG Gas Limited to supply gas to maximize the plant’s capacity, access and commercialize all existing flares and further develop the significant had reserves of 1Tcf in the area. I see this initiative as the beginning of an end to the last mile of gas flaring in Nigeria”, he said.

    In his Welcome Address, the Chairman and Chief Executive Officer Owel-Linkso Group, promoters of PNG Gas Limited, Engr. Charles Osezua, said his company had invested about $60 million in the Egbaoma Gas Processing Plant, with capacity to process some 30 mscfd of wet gas.

    According to him, about 500 Nigerians have become commercial beneficiaries of the operations of the processing plant, while more than 500 homes are being serviced with the LPG being produced from the place.

  • NLC vows to resist sale of NNPC

    The Nigeria Labour Congress (NLC) on Tuesday that it will resist any attempt to sell the nation’s refineries or privatize the Nigeria National Petroleum Corporation (NNPC).

    It asked the government to immediately invoke the relevant sections of the law and revoke the Privatisation of the power sector.

    The Congress also said it will mobilize Nigerian workers to demand the composition of governing board for the Nigeria Social Insurance Trust Fund and other agencies of government whose boards are yet to be inaugurated and are being run by the Ministers as sole administrators.

    President of Congress, Comrade Ayuba Wabba who spoke at the 12th delegates conference of the NLC in Abuja said evidence abound across the country that Privatization has not done the nation any good as majority of government owned enterprises privatized are now comatose.

    Wabba said what has happened in the past the enterprises are under prices and sold to friends and associates who strip them of the assets, leaving them comatose and unproductive.

    He emphasized that “since the privatization of electricity distribution, Nigerians are yet to see the fulfilment of promises of efficient service delivery. Instead, the electricity situation has gone worse with chronic failures by DISCOs to supply prepaid meters, exploitation of Nigerians through estimated billings and reluctance to attend to basic complaints.

    “Even with N39 billion bailout funds from government, the supposed private entrepreneurs have failed to turn anything around except maybe their pockets, unfortunately, at the expense of Nigerians. This must stop. We call on government to reverse the power sector privatisation because it has failed.

    “Privatization of public utilities has not generally proven to be the correct thing to do in most countries even developed ones. According to a study released by Public Services International.

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    “Why Public Private Partnerships don’t work; the many advantages of public alternative authored by David Hall privatizing public utilities has been a wreck in most countries. Example form Spain, France, India, South Korea, UK, Australia among others show how public/state guarantees and loans to private sector for the utilities sector have resulted in failures on delivery of services as well as repayment in most cases”.

    On the promise by one of the Presidential candidates to privatize the NNPC, Wabba said the Congress will not accept any attempt to sell National assets under any guise and will do everything possible and within legal means to stop such an attempt.

    He said that “the crisis of industrialization and manufacturing in Nigeria is best exemplified by the chaos in our downstream petroleum industry where we have been unable to manage our vast natural carbon resources for national development and the prosperity of our people. Our four national refineries are almost under lock and key as we depend on the importation of refined petroleum products for our energy needs.”

    He condemned the non-inauguration of the boards of some government agencies especially those within the Labour circle, saying such action had made the process of collective bargaining difficult, adding that the Congress has decided to take up the issue and would soon engage the relevant authorities over the issue.

    He said “as we gather in this Conference, almost four years down the line the following critical labour market institution boards are yet to be inaugurated. They are the NSITF, Michael Imoudu Labour Institute and PENCOM. This is not only a violation of the Act establishing these bodies but a denial of the critical role of social partners in the management of these boards.

    “Also, the National Labour Advisory Council has not been constituted thereby denying any avenue for tripartite consultation. No reason is good enough for this unhealthy development.”

    Speaking on the 2019 elections, Wabba said “As we approach the 2019 general election, we call on the election management body – Independent National Electoral Commission (INEC) – and in deed all stakeholders to ensure that we have a peaceful, free, fair and credible elections in February and March, 2019.

    “Congress will continue to hold both the players and the referee in this very important election to account on their words and conduct. Nigerians must rise above partisan interests and become the winners of this election – not political parties and their candidates.

    “The truth is that we do not have any other country other than Nigeria to call our own and we must therefore stop the politicians from using the elections as a pretext to throw the country into crisis.

    “In defending and promoting the cause of Nigerian workers, our focus is to build workers’ power through organizing. We have worked tirelessly to promote causes that can enhance the quality of life and improve the income cum other working conditions of workers. We have paid close attention to workers’ education through our increasingly improved education programmes especially the Rain and Harmattan Schools.”

    On the economy, Wabba said “Our national economy given its vast potentials, amidst diverse challenges, showed some promises in recent times. According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) grew by 1.81% (year-on-year) in real terms in the third quarter of 2018.

    “This is slightly better than the growth of 1.17% achieved in the third quarter of 2017. The recent GDP growth and increase in internally generated revenue are signs of the steady recovery of our economy from recession.

    “Despite these results, our economy remains largely import driven and dependent. The growth in the size of our economy – the biggest in Africa – is still non-inclusive as the gap between the rich and poor continues to widen. Though described as mixed, our economy is essentially rent seeking and still suffers from systemic distortions.

    “The National Bureau of Statistics (NBS) report for the third quota of 2018 indicates that the general number of persons unemployed in the country has increased by 3.3 million. The report further indicates that the combined rate of unemployment and under-employment rose from 40.0% in the 2017 third quarter to 43.3% in the third quarter of 2018.”

    He said Nigerians and the government should be worried that the increased pool of graduates, skilled and unskilled youth in the unemployment market especially rural unemployment is a time bomb, adding that attempt to sack workers under any guise as it happened in Kaduna State will complicate the situation.”

    He stressed that the over dependence of our economy on crude oil revenue and the mismanagement of our vast oil wealth through corruption perpetrated by successive governments continue to expose the nation to severe shocks from price fluctuation in the international crude oil market, saying “this was how we landed in the last recession.

    “While we commend the efforts of the current government on economic diversification particularly through agriculture, we are not unmindful of serious structural issues that undermine the progress being made, deeply limit inclusive growth and impact negatively on sustainable development. We will therefore continue to call on government to pay serious attention to these issues.

    Wabba informed the delegates that efforts were being made to reposition the Labour Party and make it a truly Democratic party that all workers will be proud of.

    He said “Your mandate to us to recover and reposition the Labour Party has been met with significant commitment and efforts. We have been able to secure a High Court order that has recognized the NLC as the custodian of the Labour Party. This success has made the task of recovering and repositioning the Labour party a lot easier.

    “Consequent upon the reconciliatory moves by this leadership and other stakeholders, we have agreed to hold an all-inclusive national convention of the Labour Party in order to elect genuine leaders that will translate into reality our shared aspirations to reposition the Labour Party as the numero uno political party in Nigeria.

    “We will intensify current initiatives to settle all the differences within the rank and file of the Labour Party and reconcile the warring factions. We will keep our focus on ensuring that the proposed all-inclusive National Convention of the Labour Party takes place sooner than later.”

  • NNPC records N2.06b trading surplus

    The Nigerian National Petroleum Corporation ( NNPC ) in November 2018 recorded a trading surplus of ₦2.06billion, which represented a laudable improvement of 116% over the previous month’s deficit of ₦12.66billion.

    This increase in performance month-on-month was primarily attributable to improved efficiency of the Nigerian Petroleum Development Company’s (NPDC) operations.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said in a statement on Tuesday that the details were contained in the NNPC Monthly Financial and Operations Report for the month of November, 2018 that was published in Abuja.

    The statement added that a total of 735 Million Standard Cubic Feet of gas per day (mmscfd) was delivered to gas fired-power plants in November 2018 compared with October 2018 where an average of 627mmscfd was supplied.

    According to Ughamadu, out of the 212.93 Billion Cubic Feet (bcf) of gas supplied during the period, a total of 123.29bcf of gas was commercialised, consisting of 36.14bcf and 87.15bcf for the domestic and export market respectively.

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    The release said this translated to a total supply of 1,204.76 mmscfd of gas to the domestic market and 2,905.06 mmscfd of gas supplied to the export market for the month, implying that 57.91% of the average daily gas produced was commercialized while the balance of 42.09% was re-injected, used as upstream fuel gas or flared.

    The total gas supply November 2017 to November 2018 stood at 3,071.13bcf out of which 466.44bcf and 1,317.77 bcf were commercialized for the domestic and export market respectively.

    A further breakdown of the report indicated that gas – Injected, fuel gas and gas flared – stood at 1,286.92 bcf.

    NNPC also posted a total crude oil and gas sale of $668.57 in November, 2018 which is 26.13% higher than the previous month. Crude oil export sales contributed $574.95 million (86.00%) of the dollar transactions compared with $425.00million contribution in the previous month.

    Export gas sales amounted to $93.62 million in the month.

    The November 2017 to November 2018 crude oil and gas transactions indicated that crude oil & gas worth $5.97 Billion was exported.

    In the downstream sector, the NNPC has continued to assiduously monitor the daily stock of Premium Motor Spirit (PMS) to achieve smooth distribution of petroleum products and zero fuel queue across the nation.

    To this end, a total of 1.62bn litres of PMS, translating to 54.0mn liters/day, were supplied for the month.

    In November, 2018 a total of 197 pipeline points were vandalized; out of which six pipeline points failed to be welded and two pipeline points were ruptured.

    The situation improved from the 219 vandalized points recorded in October 2018, with Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu accounting for 58, 35 and 34 points respectively or approximately 29%, 18% and 17% of the vandalized points respectively.

    While Atlas Cove-Mosimi accounted for 13%, Warri-Kaduna and PHC-Aba accounted for 8% each and other locations accounted for the remaining 7% of the pipeline breaks.

  • We won’t sell NNPC, refineries, FG assures workers

    The federal government has assured it has no plan or agenda to sell any of the refineries or the Nigerian National Petroleum Corporation ( NNPC ).

    It said anybody who has such plan does not have the interest of the workers at heart.

    Speaking at the 12th Quadrennial National Delegates Conference of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, President Muhammadu Buhari said government was determined to attain the decent work agenda, which involves opportunity for works that are productive and deliver a fair income, security work places and social protection for families.

    Represented by the Secretary to the Government of the Federation, Boss Mustapha, Buhari said: “I want to reassure you of the commitment of this administration to the issue of welfare of workers.

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    “This is evidence of numerous programmes and policies that have been initiated by this administration in promoting the interest of the well-being of our workforce.

    “Meanwhile the administration is committed to addressing other labour issues that are still pending.”

    The NLC called for reversal of power sector privatisation due to what it called chronic failures by the distribution companies (Discos) to deliver quality power supply to Nigerians.

    Its National President Comrade Ayuba Wabba said: “Since the privatization of electricity distribution, Nigerians are yet to see the fulfilment of promises of efficient service delivery.

    “Instead, the electricity situation has gone worse with chronic failures by DISCOs to supply prepaid meters, exploitation of Nigerians through estimated billings and reluctance to attend to basic complaints.

    “Even with N39 billion bailout funds from government, the supposed private entrepreneurs have failed to turn anything around except maybe their pockets, unfortunately, at the expense of Nigerians. This must stop.

    “We call on government to reverse the power sector privatisation because it has failed.

    “Privatization of public utilities has not generally proven to be the correct thing to do in most countries even developed ones.

    “Why Public Private Partnerships don’t work; the many advantages of public alternative authored by David Hall privatizing public utilities has been a wreck in most countries. Example form Spain, France, India, South Korea, UK, Australia among others show how public/state guarantees and loans to private sector for the utilities sector have resulted in failures on delivery of services as well as repayment in most cases”.

    He however urged the Federal Government to resuscitate ailing refineries in other to liberate the downstream sector.