The Nation Newspaper

Tag: NNPC

  • NNPC/Chevron JV donates to IDPs in Delta, Bayelsa

    The Nigeria National Petroleum Corporation (NNPC)/Chevron Nigeria Limited Joint Venture has donated mattresses, food items, toiletries and other materials to assist flood victims in Warri Southwest, Warri North, Delta State and Igbogene in Yenagoa Local Government Area of Bayelsa State. The gesture, according to the joint venture, is another significant contribution to the wellbeing of people in Nigeria.

    At  Warri Southwest, Secretary to the Local Government, Mrs. Gabari Gladys Omare, and the state Emergency Management Authority (SEMA) representative, Mrs. Attu Evelyn, received the items on behalf of  the council Chairman, Hon Tuoyo Duke Taiye, while in Warri North, Secretary to the Local Government, Mr. Victor German with the support of Head of Department, Engineering, Jerry Atigan, received the items on behalf of the council chairman, Mr. Aduge Okorodudu. At Igbogene, the items were received by  Angus Didei on behalf of Bayelsa State Emergency Relief Committee.

    Explaining the reason for the donations, General Manager, Policy, Government and Public Affairs (PGPA), Esimaje Brikinn,  represented by Tony Emegere, PGPA superintendent, said: “This donation is in line with the NNPC/Chevron Joint Venture’s commitment and our tradition of care for the welfare of people around our areas of operation in Nigeria and beyond.  As we donate these items today, I hope they will assist in meeting the needs of the people,” he said.

  • Ogoniland sues NNPC, others over plan to resume oil production

    The Conference of Ogoni Traditional Rulers and Chiefs have asked the Federal High Court in Abuja to stop the resumption of oil production on the OML 11 oilfields in Elema, Gokana, Khana and Tai Local Government Areas of Ogoniland.

    The Registered Trustees of Ogoni Liberation Initiative and Mr. Tim Okuntimo (for himself and on behalf of Federation of Ogoni Youth) are the other plaintiffs.

    The Nigeria National Petroleum Cooperation (NNPC), Nigeria Petroleum Development Company Ltd (NPDC) and Attorney-General of the Federation are the first to third defendants.

    The other defendants are Robomichael Ltd, Robomichael Oil Marketing Ltd, Bellema Refinery & Petrochemical Ltd, Bellema Oil Producing Ltd and Transnational Corporation of Nigeria Plc (Transcorp).

    Through their lawyer, Mr. Dada Adekunle Awosika of D.A Awosika and Partners, the plaintiffs are praying for a declaration that the Federal Government cannot issue the mining license over the OML 11 oilfields until and unless the United Nations Environment Program (UNEP) proposed/recommended cleanup and remediation exercise is undertaken and fully implemented.

    According to the plaintiffs, the first to third defendants must at least record some tangible milestones from the cleanup following years of environmental degradation of Ogoniland, its ecosystem and ecology.

    They are praying the court to hold that the planned resumption of oil exploration and production in OML 11 oilfield is “irregular and irresponsible when the entire plaintiffs’ land is desecrated and unsuitable for human habitation”.

    They asked the court for a declaration that any mining license granted the fourth to eight defendants is unlawful without first undertaking the UNEP proposed clean-up and remediation exercise.

    The plaintiffs sought a declaration that having not obtained a social license to operate the oilfields from them, any operatorship license granted the fourth to eight defendants is illegal, irregular, null and void.

    Besides, the plaintiffs urged the court to hold that the fourth to eight defendants “do not have the wherewithal, expertise and performance records to provide any kind of technical services in the operatorship and development of OML 11 oilfields.”

    They further prayed for an order setting aside any oil mining license or authorisation granted the fourth to eight defendants, as well as an order restraining the first to third defendants from issuing any oil mining license to the fourth to eight defendants pending the completion of total cleanup and remediation exercise in Ogoniland in line with UNEP recommendations.

    The plaintiffs prayed for an order of perpetual injunction restraining the fourth to eight defendants or their agents from going into Ogoniland for the purpose of mining the OML 11 oilfields unless the UNEP recommendations are fully carried out.

    The plaintiffs, in their statement of claim, said oil exploration by SPDC from 1955 to 1993 resulted in “systemic environmental contamination of the plaintiffs’ land and oil spillages” due to “irregular and illegal practices by SPDC in its exploration and production activities around Ogoniland”.

    They said the “unwholesome oil practices” led to the contamination of their land, creeks and rivers, as well as environmental devastation.

    The plaintiffs said the technical installations made around OML 11 oilfields that pass through Ogoniland “continue to spew and spill crude oil on daily basis onto the Ogoni people’s land”, adding that the facilities abandoned since 1993 have never been decommissioned.

    They said successive administrations reached an understanding to ensure total cleanup of Ogoniland and that any further exploration and production in the oilfields shall be with their consent.

    They added that since UNEP released its report and recommendations in 2011/2012, the first to third defendants and Shell Petroleum Development Company (SPDC) “are yet to undertake any cleanup and remediation”.

    They urged the court to grant their reliefs as the plaintiffs and other indigenes of Ogoniland continue daily to suffer environmental health problems due to lack of portable drinking water, among others.

    Justice A. I. Chikere granted the plaintiffs leave to serve the fourth to eight defendants at their offices in Benin, Port Harcourt and Ikoyi through courier service.

    He adjourned until December 6 for report of service.

  • NNPC eyes new funding option to boost oil reserves

    The Nigerian National Petroleum Corporation (NNPC) said it is eyeing new funding option to increase oil reserves to 40 billion barrels by 2020.

    Its Group Managing Director,  Dr Maikanti Baru, stated this yesterday in Lagos at the ongoing conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

    Represented by the Chief Operating Officer, NNPC Ventures, Dr. Victor Adeniran, the GMD  said the industry requires special fund for hydrocarbon exploration to fully achieve its potentials.

    Baru said: “Currently, as a physical incentive, all exploration cost within the industry is expensed, this is a laudable and pro industry incentive from the government.

    “The implications is that funding or spent need to be incurred prior to taking benefits, hence the funding structure of exploration within the industry need to be strengthened. However, we need to go beyond and above that.”

    He added that the Corporation on its part was willing to work with partners and the industry in that regard.

    He also said consideration on the part of government should be how to open up new place in terms of marginal fields development, dormant assets and new assets, as there are still condensing prospects for new oil and gas reserves in the country particularly in the ultra deepwater and inland frontier basins, and the timing and process must be transparent.

  • NNPC eyes over 14% market share of downstream oil sector

    The Nigerian National Petroleum Corporation (NNPC) will control more than 14 per cent share of fuel supply in the country, its Group Managing Director, Dr Maikanti Baru, has said.

    Speaking during the NNPC Day at the just concluded International Trade Fair in Lagos, Baru said NNPC currently holds 14 per cent market share of the downstream sector and has expanded its retail outlets to achieve its objectives.

    “In order to achieve this target, we at (NNPC), have expanded our retail outlets, notable examples are, indeed, located in the Southwest. For example, we have the newly constructed ultra-modern mega station along the Lagos-Ibadan Expressway,” he said.

    According to him, the corporation was leaving no stone unturned to ensure that Nigerian Pipeline and Storage Company (NPSC) already in existence is rehabilitated and new ones added as part of efforts to ensure  efficient storage and distribution of petroleum products across the country, thereby ensuring supply reliability and energy security.

    He said the NNPC has completed the rehabilitation and restoration of the vandalised 36, 42 and 48 Forcados Oil Terminal (FOT) Export pipelines, leading to resumption of production operations in the terminal.

    “The corporation has also completed the repair of the vandalised 20” ELPS-A pipeline, thereby, ensuring gas supply to gas-fired power plants and supply into the West African Gas Pipeline,” he added.

    Baru said NNPC has awarded the contract for the construction of the Ajaokuta-Kaduna-Kano (AKK) line gas infrastructure projects, adding that the corporation is expanding and integrating the country’s gas pipeline network system to meet the unprecedented domestic gas demand.

    ‘’We have recorded significant progress in the execution of key on-going gas pipeline infrastructure projects (ELPS II, OB3),” he said.

    According to Baru, the ongoing transformation is not limited to the downstream sector, stressing that NNPC  has  kick-started the process of rebranding some critical midstream entities,  and  with the downstream, “we are not only creating new logos for these companies, we are repositioning them all for global competitiveness in line with the 12 Business Focus Areas of our administration”.

    He said with these measures in place, the corporation strongly believes that the initiatives will invariably impact positively on the nation’s economy, stressing that NNPC is representing the interests of the government in the oil and gas industry.

    He said, the corporation, in line with its corporate social responsibilities, will continue to improve on its systems, processes and procedures in order to add value to the exploitation of hydrocarbon resources in the country.

    It would be recalled that the downstream sub-sector of the oil industry was partially deregulated, a development many stakeholders have described as not too healthy for the industry.

     

  • Call IOCs to order over anti-labour practices, union urges NNPC

    The  Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN),  has urged the Nigerian National Petroleum Corporation (NNPC) to call the International Oil Companies (IOCs) and others to order over anti-labour practices.

    The President of the union, Comrade Francis Olabode, who spoke during the 5th Triennial Delegates Conference of PENGASSAN /NNPC Corporate Headquarter (CHQ) Branch in Abuja, said the need to caution the oil companies was pertinent before they throw the industry into unnecessary crisis.

    He said: “The main objective of PENGASSAN is to safeguard and improve the rights, terms and conditions of employment of its members through labour and industrial relations processes, saying, however, that the association has continued to encounter difficulties with certain indigenous operators and the IOCS.

    He said: “We will like the NNPC  to call these companies to order before their anti-labour practices throw the industry into unnecessary crisis.”

    Comrade Johnson said the association’s constitution is the guide that binds members together, saying: “Therefore, we expect all branches and members to abide by and respect the constitution that determines how noble our Association will be in the eyes of our members and the general public.”

    He explained that adherence to constitutional provisions and best practices in labour engagement is crucial to the maintenance of cohesion and discipline, saying any breach will not be tolerated.

    The PENGASSAN President praised the NNPC management for supporting the Association in all its activities.

    He also lauded the Group Managing Director of the NNPC for playing a noteworthy role in the JV Cash Call resolution and for making the depots at Ilorin, Ore, Mosimi, Aba, Gombe, Ibadan, Calabar and Kaduna to be fully functional.

    Earlier in his address, NNPC Group Managing Director, Maikanti Kacalla Baru, implored PENGASSAN members to continue seeking the growth and existence of the nation’s oil and gas industry.

    He said the branch has demonstrated great deal of responsibility worthy of emulation by other trade unions.

  • Fuel supply: NNPC seeks to increase retail outlets

    The Nigerian National Petroleum Corporation (NNPC) says it is set to increase its 14 per cent market share in the nation’s downstream petroleum retail market.

    The Group Managing Director of NNPC, Dr Maikanti Baru, said this during NNPC Special Day at the ongoing Lagos International Trade Fair on Thursday in Lagos.

    The News Agency of Nigeria, reports that the fair was organised by the Lagos Chamber of Commerce and Industry (LCCI).

    Represented by Mr Ikem Obi, Chief Operating Officer, NNPC Downstream, Baru said the corporation aimed to go beyond its current 14 per cent market share of the downstream sector.

    “To aid in achieving this target, we have expanded our retail outlets, notable examples are, indeed, located here in the South-West.

    “For example, we have the newly constructed ultra-modern mega station along the Lagos-Ibadan Expressway.

    “The corporation is leaving no stone unturn to ensure that Nigerian Pipeline and Storage Company’s existing infrastructure are rehabilitated and new ones added as necessary steps to guaranteeing efficient storage and distribution of petroleum products across the nation, thereby ensuring supply reliability and energy security,” he said.

    Read Also: Minister clears air on suspension of National Carrier

    Baru said NNPC had recently completed the rehabilitation and restoration of the vandalized 36” and 42” QIT and 48” Forcados Oil Terminal (FOT) Export pipelines leading to resumption of production operations.

    “The corporation has also completed the repair of the vandalized 20” ELPS-A pipeline, thereby ensuring gas supply to gas-fired power plants and also supply into the West African Gas Pipeline.

    “We have also awarded the contract for the construction of the Ajaokuta-Kaduna-Kano (AKK) line gas infrastructure projects,” he said.

    He said that NNPC was expanding and integrating its gas pipeline network system to meet the unprecedented domestic gas demand and have recorded significant progress in the execution of key on-going gas pipeline infrastructure projects.

    He said that all these activities would invariably impact positively on the economy in view of the role of the oil and gas industry as the number one foreign exchange earner for the country and NNPC’s position as managers of government interests in the sector.

    Earlier, Mr Babatunde Ruwase, President of LCCI, said that the role of NNPC could not be overemphasised in ensuring petroleum products supply.

    He urged the Federal Government to expedite the passage of the Petroleum Industry Bill (PIB) and also create an enabling environment for businesses to thrive.

  • NNPC earns $470m from crude oil, gas export in August

    State-run oil firm Nigerian National Petroleum Corporation (NNPC) said it sold crude oil and gas to the international market and earned $470million in August this year. This is an upsurge of about $78million in relation to July oil and gas export figures of $391.91million.

    NNPC Monthly Financial and Operations Report for August 2018 released yesterday in Abuja by the corporation’s Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, indicated that crude oil export sales contributed $337.62 million which represents 71.83 per cent of the dollar transactions compared with $283.43million contributed in the previous month.

    The report said export gas sales during the period under review amounted to $132.38million, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export valued at $5.26 billion.

    It further explained that based on the sales figure, a total export receipt of $450.24 million was recorded in August 2018 as receipt against $382.65million in July 2018.

    Contribution from crude oil during the period, it stated, amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33million and $12.48million respectively.

    A further breakdown of the figures showed that out of the export receipts, $142.31million was remitted to the Federation Account, while $307.93 million was remitted to fund the joint venture (JV) cost recovery for the month of August to guarantee current and future production.

    Total export crude oil and gas receipt for the period August 2017 to August 2018 stood at $5.23billion out of which $3.74 billion was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.

    On naira payments to the Federation Account, the report showed that NNPC transferred N128.40billion into Federation Account for the month under review.  It  also explained that from August 2017 to August 2018, the Federation and JV received N879.02billion and N651.4billion respectively.

    Providing insight into the corporation’s remittances to the national treasury, NNPC explained that the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into equity export and domestic crude which are lifted and marketed by the Corporation and the proceeds remitted into the Federation Account.

    It added that Equity Export receipts, after adjusting for JV Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).

    NNPC explained that domestic crude oil of 445,000barrels of oil per day (bopd) was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude and product losses and pipeline repairs & management costs incurred during the period.

    The August 2018 NNPC Financial and Operations Report is the 37th in the series.

  • Natural gas production rises by 8 per cent, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) has declared that 230.35 Billion Cubic Feet (BCF) of natural gas was produced in July.

    The corporation, in its Monthly Financial and Operations report for July, said the production averaged a daily output of 7,678.17 million Standard Cubic Feet (mmscfd).

    It said the sum represented 8.81 per cent increase compared to the previous month, June 2018.

    The report indicated that for the period July 2017 to July 2018, 3,084.09 BCF of gas was produced, representing an average daily production of 7,834.62 mmscfd.

    It added that the daily average natural gas supply to gas power plants stood at 744.86 mmscfd, equivalent to power generation of 2,898 MW.

    It explained that from the period to date, production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 69.38 per cent, 21.69 per cent and 8.93 per cent respectively to the total national gas production

    A further breakdown of the numbers showed that out of the total volume of gas supplied in July 2018, 127.19 BCF of gas was commercialised, comprising 35.55 BCF and 91.65 BCF for the domestic and export market.

    “This translates to a total supply of 1,184.81 mmscfd of gas to the domestic market and 3,055.00 mmscfd of gas supplied to the export market for the month.

    “It implies that 55.98 per cent of the average daily gas produced was commercialised, while the balance of 44.02 per cent was re-injected, used as upstream fuel gas or flared,’’ it said

    On Gas Flaring, the report said gas flare rate was 9.33 per cent, (706.96mmscfd), compared with average gas flare rate of 10.44 per cent ( 816.73mmscfd) for the period July 2017 to July 2018.

    The Report also revealed that the corporation continued to ensure increased PMS supply and distribution across the country to sustain seamless distribution of petroleum products and zero fuel queue across the nation.

  • NNPC pipeline explosion was avoidable – Senate

    The Senate joint Committee investigating the NNPC pipeline explosion that rocked two villages in Osisioma Ngwa Local Government Area of Abia State has described the incident as avoidable and vowed to ensure that the culprits were brought to justice.

    The joint committee leader, Senator Kabiru Marafa  led the members comprised of Petroleum Downstream and Police Affairs to the scene of the incident at Umuimo and Umuaduru and expressed deep regrets that such an incident which led to heavy loss of lives and wanton destruction of properties had happened in such peaceful communities.

    He insisted that the committees of Downstream and Police will get to the root of the matter, stressing that the committees were also looking into heavy losses that had affected the economy of the nation.

    He commiserated with the traditional rulers of the affected communities, praying for the peaceful repose of the unfortunate citizens that lost their lives to the pipeline explosion.

    The committee also interacted with the contractor handling the repair of pipelines from Port Harcourt refinery who disclosed that the contract with corporation was to maintain one of the pipelines and that he had been up and doing.

    However he disclosed further that on several occasions he had been surcharged by his employers for leakages that were totally not his fault, adding that the original contract was from Port Harcourt to Abia Depot and that later Abia Depot to Enugu was included.

    The contractor explained that the pipeline that exploded was not the one that had a contract on it, explaining further that the distance between the maintained pipeline and the other was less than four feet and that he was instrumental to putting out the inferno.

    Also at the NNPC Depot at Osisioma, the committee was received by the former Depot Manager who told the committee that the exploded pipeline had been abandoned for close to 16 years, but that there was a quantity of product left inside the pipeline.

    Asked by the committee why the pipeline was not flushed since it had been out of use for a good number of years, he insisted it was standard practice, but his reply drew the ire of the team, who insisted that petroleum product was left there to deliberately snuff life out of innocent citizens.

    Read Also: NNPC, BP signs agreement on PMS

    At this juncture Sen. Marafa asked the NNPC to put all their defense in a single document and ensure that the report gets to them before Tuesday, the same instruction was given to the contractor as well as those that have any information that would enable the committee arrive at a peaceful conclusion.

    The committee later paid a courtesy call on Governor Okezie Ikpeazu who thanked them for the visit and urged them to do all within their powers to ensure that justice was not only done but seen to have been done, lamenting that the death of his people was very painful.

    Sen. Theodore Orji for Abia Central Senatorial District who brought the incident to the floor of the senate expressed joy that the committee had come and seen and heard firsthand the immediate and remote cause of the incident and assured that the communities would remain peaceful.

    It would be recalled that a pipeline explosion engulfed the two communities of Umuimo and Umuaduru in Osisioma Ngwa Local Government Area and claimed the lives of not less than 150/individuals, but the number has gradually increased following the death of some of those receiving treatment at the Abia State University Teaching Hospital and other care centers where they were rushed to.

    Members of the downstream committee that made the visit include Sen. Samuel Anyanwu, Sen. Ibrahim Danbaba, Sen. Mao Ohuabunwa, Sen. Yahaya Abdullahi, Sen. Albert Akpan and Sen. Shuaibu Laa, while those of the Police were Sen. Theodore Orji and Sen. Obinna Ogba.

    The senate had through a resolution given the committee two weeks to report back their findings.

     

  • NNPC pumps up petrol price from Fuel Fund

    Nigeria National Petroleum Corporation (NNPC) boss Maikanti Baru yesterday told the Senate that the corporation spends $1.05billion from dividends of Liquefied Natural Gas (LNG) to augment daily shortages incurred in the pump price of Premium Motor Spirit (PMS).

    Baru appeared before the Senate Ad- Hoc Committee Investigating alleged illegal application of $3.5billion petroleum subsidy by NNPC.

    The NNPC Group Managing Director (GMD) denied the existence of any $3.5 billion for fuel subsidy.

    He noted that $1.05bn (equivalent of N383.2bn) taken from LNG dividends is domiciled in a special account with the Central Bank of Nigeria (CBN), called National Fuel Support Fund (NFSF).

    The fund, he said, is for augmenting losses incurred from petrol pump price of N145 per litre as against N185 per litre it is supposed to be.

    Baru said: “Based on available parameters from landing to transportation costs, the pump price of PMS is supposed to be N185 per litre as against the official price of N145 per litre, indicating shortage of N40 per litre.

    ” Since subsidy is not appropriated for and pump price is not adjusted upwardly, NNPC had no other choice than to in line with its establishment Act, Section 7 sub section 4(b), defray its costs from its revenues.”

    The GMD explained that the $1.05billion costs augmentation money came into being in October last year when Independent Marketers pulled out of the supply chain of importation of PMS into the country as a result of increase in landing cost without corresponding increase in pump price .

    Baru said subsidy or pump price increase could best be tackled by the National Assembly and not the NNPC, failure of which, he said, will make smuggling of petroleum products across Nigerian borders, lucrative business by smugglers.

    He said: “The N145 per litre pump price of PMS in Nigeria is the lowest when compared to N400 it is sold in Cameron, N350 in Ghana, N330 in Benin Republic etc.

    “As long as the product is sold at the lowest price in Nigeria, so shall it be attractive for smugglers to trade on across the borders.”

    Asked about the daily consumption of the product in the country, Baru said he did not know.

    He however told the committee that the consumption rate as at 2016 was 49m litres per day and 53m litres per day in 2017.

    He said NNPC has 1.9bn litres of PMS in stock which could last the country for 39 days in case of any breakdown in the supply chain.

    Baru’ s appearance before the committee was sequel to a resolution taken by the Senate on the 16th of last month for probe into alleged warehousing of $3.5bn by NNPC for fuel subsidy through a motion moved by the Senate Minority Leader, Biodun Olujimi.

    Apart from Baru, other government officials from the Ministry of Finance and the office of Auditor General of the Federation also appeared before the committee.

    Committee Chairman Senator Ahmed Lawan adjourned the sitting till Tuesday.