Tag: NNPC

  • NNPC replies IGP: we are not hiding $470.5m in banks

    The management of the Nigerian National Petroleum Corporation (NNPC), on Friday, responded to trending media report alleging that the Nigerian Police recovered $470.5 million and N8 billion NNPC funds hidden in commercial banks.

    The NNPC, in a release by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, explained that the allegation was not only misplaced but equally misleading.

    While confirming that a few commercial banks are yet to complete remittance of US dollar deposits to the Treasury Single Account (TSA), he stated that the corporation had no funds hidden in any commercial bank as the Presidency, the Office of the Accountant-General of the Federation, (AGF) and the Central Bank of Nigeria, (CBN) were fully aware of, and received periodic status reports on balances yet to be remitted to TSA by commercial banks.

    According to him, following TSA implementation, the corporation had made a report to the Presidency on the failure of some commercial banks to complete transfer of US dollar deposits and a presidential directive was issued for the Central Bank of Nigeria to ensure that the funds were completely transferred to the Corporation’s Treasury Single Account in US dollars.

    Most of the commercial banks have since complied with the presidential directive and completed transfer to the corporation’s Treasury Single Account (TSA) in US dollars, including the reported $470.5 million, according to the NNPC.

    On the purported recovery of N8 billion by the Nigeria Police Force, the corporation argued that it is not aware of any change in the subsisting presidential directive to the effect that all of the US dollar balances must be transferred to NNPC’s CBN Treasury Single Account in US dollars. In addition, no such funds have been deposited into the Corporation’s CBN Treasury Single Account.

    Consequently, NNPC claimed  that it’s record of the US dollar funds yet to be transferred by a few commercial banks cannot reflect in the said recovery.

    The corporation maintained that while the CBN executes the presidential directive to ensure complete transfer of US dollar funds to the its TSA, it would resist every attempt to subject the funds, to five percent whistle blowing fees, claiming it would amount to a sheer waste of public funds.

  • REVEALED!: How civil defence operatives, NNPC guards aid oil thieves to vandalise pipelines in Lagos community

    The Nigeria Security and Civil Defence Corps (NSCDC) has the statutory mandate to protect offshore petroleum pipelines in the country and save them from vandals and other economic saboteurs. However, a three-month investigation conducted by KUNLE AKINRINADE on the vandalisation of pipelines at Isheri Olofin Royal Estate in Alimosho area of Lagos State revealed the connivance of some operatives of the security agency and private guards hired by the Nigeria National Petroleum Corporation (NNPC) with pipeline vandals.

    THE Commandant of Nigeria Security and Civil Defence Corps (NSCDC) in Lagos State, Alhaji Tajudeen Balogun, is widely regarded as a man of action. In the few months he became the helmsman of the para-military organisation in Lagos, his rating as a no-nonsense minion of law has been swelled by the arrest of cable and pipeline vandals, among other criminals.

    Again, on September 3, Balogun, whose Yoruba name translates to ‘generalissimo’, lived up to his name when he made a show of his commitment to route the pipeline vandals in the state. On that day, about 19 nationals of neighbouring Benin Republic were arrested and paraded for alleged theft of more than 50,000 litres of petroleum products. Balogun said the suspects were arrested in a boat in Badagry between August 28 and 30 on their way to Benin Republic.

    He said: ”Thirteen of the suspects were picked up in a boat at Badagry on their way from Niger Delta area heading to Benin Republic. Other suspects were arrested at Atlas Cove and Lagos Island. We recovered 300 jerry cans of 30 litres each containing petroleum products.

    “We recovered 40 jerry cans of 30 litres each containing diesel and another 40 jerry cans of same litres containing kerosene. We intercepted another Cotonou boat with 118 drums of different products, with each drum containing about 250 litres. We have contacted the NNPC for the evacuation of the products to their depot at Mosinmi in Ogun. All the suspects will be charged to court as soon as investigation is concluded.”

    Community at the mercy of vandals

    But while Balogun relishes his nemesis on vandals, his binoculars seem to have failed to capture corrupt operatives under his nose, who have been aiding vandals to smash pipelines and steal petroleum products that run into millions of naira in the Olowu area of Isheri Olofin Royal Estate in Alimosho Local Government Area.

    For Isheri Olofin Royal Estate, a community comprising mainly low income and middle class residents, it has been five years of constant assault by vandals aided by security agencies. Community leaders and residents who spoke with our correspondent expressed disappointment with the complicit security operatives and NNPC security men involved in the destruction of oil pipelines and theft of fuel in the area, with fear of possible fire outbreak triggered by vandalised pipeline anytime soon.

    The massive estate, is divided into three areas—Zone A, B and C. The pipeline that passes through Olowu Street is located in the Zone B area of the poorly developed estate. A number of security operatives have been drafted to the community to protect the facility in recent times. From policemen to soldiers and from naval operatives to security guards hired by NNPC to protect the pipelines, it was sordid tales of vandalisation of pipelines and theft of fuel. But all that, as gathered, temporarily stopped about three years ago after a state-wide military onslaught against vandals until January this year when the vandals resumed their nefarious activities in the estate.

    The return of vandals

    Sources in the estate revealed how some security guards of a pipeline surveillance firm contracted by the Nigeria National Petroleum Corporation (NNPC) worked in cahoots with the pipeline syndicate few weeks after they were employed and posted there. Nemesis, however, caught up with them when they were apprehended by vigilant residents on July 14 this year after they allegedly aided vandals to burst the pipelines, load petrol into three tankers and escaped.

    Adejare Brown, a community leader, said: “We have endured the vandals’ activities for about five years now. The whole thing started shortly after we moved into this estate. We did not quite pay much attention until some residents ran into the vandals during one of their operations.

    “While we were initially indifferent about their activities, we were constrained to put a stop to them when the threat of fire outbreak stared us in the face, following the exposure of the vandalised pipeline each time the vandals operate, because they don’t properly cover the pipelines back before they hurriedly leave the place.

    “There was a respite for three years after soldiers were drafted to repel vandals in Lagos State, following which some private security men contracted by NNPC  were deployed to protect the pipelines here.

    “Initially when the security men were posted here, they gave a deceitful veneer to their ability to contain the vandals through constant stop and search on vehicles, residents and strict restriction of movement at night. But we never knew that it was all meant to turn our eyes away from their cooperation with the very people who have been vandalising the pipelines and taking away fuel in tankers.

    “A few months later, precisely January this year, we were alerted by a man and his wife who were returning from a church programme in the wee hours of a particular day that some men were sighted with their tankers taking fuel from pipelines. The couple also said that they sighted three security men with the vandals.

    “We decided to keep a watch on their activities until July 14 this year when the vandals returned. This time, we got wind of their presence and mobilised ourselves to the scene, but they zoomed off on sighting us, while the security men watched as they drove out. But we were able to stop the tanker while the driver and his assistant jumped out of the vehicle and escaped.

    “When we accused the NNPC security men, they said the driver of the tanker veered off the Lasu-Igando highway into our estate. They said the tanker broke down and they only helped to push it back into motion. We led them to the pipelines only to discover that fuel was gushing out from a hole they drilled on it and hurriedly covered with waste materials.

    “The discovery angered the residents at the scene, and they wanted to lynch the security men. But some of us intervened by asking them to write an undertaking never to engage in such act again. It was then they confessed that they collected the sum of N50,000 from the vandals. We took them and the tanker to the Idimu Police Division, although many of the residents could not trust the police because of how suspects arrested in the past were controversially freed without any investigation carried out.”

    According to Brown, the security men did not spend up to 15 minutes at the police station; they were freed, to the chagrin of residents.

    “The errant security men returned barely 15 minutes after we left the station and mocked us for wasting our time by taking them to the police, who they claimed would always free them because of the relationship between the syndicate and some policemen at the station.”

    The efforts our correspondent made to reach NNPC spokesman, Ndu Ughamadu, were futile as several calls made to his mobile phone went unanswered. A text message sent to his telephone line had also not been replied to at press time.

    The brouhaha that followed the complicity of the NNPC’s hired security guards, it was learnt, led to their sack and eventual return of Civil Defence operatives a few days later to protect the pipelines in line with its statutory mandate.

    The Nation gathered that to ensure their comfort and diligent discharge of their duties, the Civil Defence men on appeal to the leadership of the estate’s residents’ association renovated an abandoned NNPC security post and furnished the building with mattress and other furniture items for the use of the operatives.

    Brown added: “The leader of the NSCDC squad, who claimed that he was well-trained to contain vandals, and had been deployed from the Northern part of the country to secure pipelines in our estate, said he and his men would not be able to stay comfortably at the security post because it was not habitable enough to make their constabulary duty comfortable.

    “We were moved by their plight and we quickly raised about N300,000 to renovate the building, including providing modern toilet, bathroom, mattresses, and tiled the place to their satisfaction, hoping that we can heave a sigh of relief from the activities of vandals,” Brown added.

    Another sad song

    But did the arrival of NSDSC operatives stop vandals from coming to burst the pipeline in the area? Certainly no. Their presence, The Nation gathered, further emboldened vandals. In less than two weeks after the arrival of the NSCSDC operatives, vandals struck again and successfully took away fuel in three tankers, according to sources.

    Curiously, the security post manned by a coterie of men of anti-vandalism unit of NSCDC, who were deployed to keep watch on the pipelines and prevent its vandalisation, is just a stone’s throw from the pipelines.

    To ensure they have easy access to the oil installation, the syndicate drilled a hole on the pipelines and covered it with a disused tyre, leaves and garbage to prevent petrol from spilling out and giving the place away. This, they did to ensure a steady stealing of fuel from the pipelines each time they come there-most times in the wee hours of the day, while their civil defence operatives accomplices look the other way.

    Before the July 14 operation, the vandals had stolen fuel from the pipelines without any hindrance. Three days to the Sallah festival on June 15 this year, which marked the end of Muslim Ramadan fasting period, the vandals stormed the pipelines and left the same way they had been leaving the hole on the pipelines covered with a disused tyre and refuse, to prevent fuel from gushing out after loading the product into three tankers.

    It was further gathered that just before the Eid-el-Kabir festival on August 21, the vandals again struck and took away fuel from their ‘colonised’ pipelines in not less than three 50,000-litre capacity tankers, according to residents.

    A resident, Oni Adeojo, said: ”They (NSCDC) operatives would usually fire shots in the air to create the impression that they are confronting vandals only for us to wake up to the reality that the notorious vandals operated unhindered and took away fuel in tankers.

    “Vandals have become emboldened such that on June 12, they stole fuel from the pipelines and again came two days to Ileya (Eid-el-Kabir) festival, yet, they got away with fuel stolen from the pipelines.”

    Worried by the menace of vandals and seeming cluelessness of the minions of law, community leaders in the estate decided to engage the services of operatives of a vigilance group to protect lives and property as well as keep watch over the pipelines and activities of civil defence operatives.

    The initiative paid off in the wee hours of August 29, after the die-hard vandals stormed the pipelines in three tankers. They had successfully loaded fuel into three 50,000-litre tankers as usual when the vigilante men sighted them and alerted residents, who wasted no time to rush to the scene. There, they met more than 15 civil defence operatives, more than the number deployed in the community, and drivers of the fuel laden tankers cum vandals.

    Surprisingly, the civil defence operatives were said to have freed the drivers and took away two of the tankers, while they reached out to a top official of a branch of the National Union of Petroleum and Natural Gas Workers (NUPENG) at NNPC depot in Ejigbo, a Lagos suburb, for a more competent driver to move the third tanker, which was difficult for their operatives to drive, to their Ikeja headquarters.

    “We later learnt that the vandals have been settling civil defence operatives with money each time they operate here and that a quarrel over money had resulted in an altercation while the operation lasted, which made the civil defence operatives to call for a reinforcement from their headquarters.

    “The release of the tanker drivers and the decision to impound the tankers was a ploy to deceive us from knowing the kind of relationship between the vandals and civil defence corps,” Adeojo added.

    Shortage of fuel, loss of job

    Like the distraught residents, stakeholders at the Ejigbo NNPC satellite depot are also worried about the development. A source at the depot, who demanded anonymity, disclosed to The Nation that a discreet investigation revealed that some civil defence operatives had acted in compromise with the pipelines syndicate. The result, according to the source, is that, each time vandals struck at the estate or any other area where pipelines are located, tanker drivers at Ejigbo NNPC depot would have little or no job to do as a result of shortage of fuel.

    “There are certain litres of fuel pumped into pipelines by NNPC on a daily and weekly basis. Once pipelines are violated by vandals, it would take days for NNPC to restore operations, and the result is that we would have little or no fuel to load at Ejigbo satellite depot, which serves many parts of the country.

    “On a normal day, we load up to 120 tankers per day. But when vandals repeated their violation of the pipelines, only six to seven tankers were able to get fuel from our depot. Most tanker drivers, for several days, did not have work to do while the filling stations they were supposed to supply did not have fuel to sell to customers.

    “Our leaders who went to the headquarters of NSCDC in Ikeja with the intention to engage the leadership of the organisation on the need to caution its men against aiding vandals were rebuffed,” the source, who asked not to be named said.

    Vandals’ gain, country’s loss

    While the notorious vandals continue to profit from where they do not sow, the consequences of their actions on pipelines located in Isheri Olofin Royal Estate has been a huge loss to the country. The value of the 12 tankers of fuel (50,000-litre capacity each) stolen between June and August 29 is inimical to the economic interests of the country.

    A liter of fuel from the NNPC to marketers costs N133.28 kobo, which means that the total value of the 12 (50,000 litre) tankers is around 600,000 litres in all. A simple multiplication of the 600,000 litres by the unit cost of a litre at N133.28 kobo translates to about N79.9 million.

    Contacted penultimate Thursday, the spokesperson of Lagos State Command of NSCDC, Ms Kehinde Bada, absolved operatives of the command of complicity in the attacks on pipelines and fuel theft.

    She said: “Our officers could not have been involved in such act. There is no way our men would have aided vandals to steal fuel from pipelines, because we have a crop of well trained and disciplined operatives.

    “Our officer, who led the team that foiled the vandals’ operation is an Assistant Commandant, and he was deployed from Abuja to head our anti-vandalism unit. He is a man of integrity and would not be involved in such unlawful conduct.

    “Contrary to the allegations, what actually happened during the operation you mentioned on August 28/29 was that our men successfully foiled the vandalisation of the pipelines in the estate and moved the three tankers to our headquarters in Ikeja. The fuel was evacuated yesterday by NNPC officials from Mosinmi depot in Ogun State.

    “It is corruption that is fighting back, and that is why all these allegations are being raised against our operations and men.”

  • No hidden $470.5m, N8bn in commercial banks – NNPC

    The  Nigerian National Petroleum Corporation (NNPC) says it has no hidden 470.5 million dollars and Eight billion Naira in any commercial bank as alleged by the Nigerian  police.

    The NNPC in a statement by its Group General Manager, Group Public Affairs Division,  Mr Ndu Ughamadu, in Abuja on Friday explained that the allegation was not only misplaced but equally misleading.
    The Nigerian Police on  Thursday said it had succeeded in recovering monies belonging to the NNPC Brass/LNG Investment, which were supposed to be deposited in the Treasury Single Accounts (TSA) of the federal government.
    According to a statement by the police, the money include, “ $470,519,889.10 belonging to NNPC Brass LNG Investment hidden in some commercial banks after the directives of the federal government on TSA.
     The statement  also  alleged  that recovered by the police was the sum of N8,807,264,834.96 belonging to NNPC/Brass Investment that was not remitted to TSA Account of the federal government
    Ughamadu stated that the Corporation had no funds hidden in any commercial bank as the Presidency, the Office of the Accountant-General of the Federation, (AGF) and the Central Bank of Nigeria, (CBN) were fully aware of.
    According to Ughamadu, the AGF  and CBN  receive periodic status reports on balances yet to be remitted to TSA by commercial banks.
    ” Following TSA implementation, the Corporation had made a report to the Presidency on the failure of some commercial banks to complete transfer of US dollar deposits.
    ” A Presidential directive was issued for the Central Bank of Nigeria to ensure that the funds were completely transferred to the Corporation’s Treasury Single Account in US dollars.
    “Most of the commercial banks have since complied with the Presidential directive and completed transfer to the Corporation’s Treasury Single Account in US dollars, including the reported $470.5 million, he said.
    On the purported recovery of N8 billion by the Nigeria Police Force,  he said the Corporation was not aware of any change in the subsisting Presidential directive to the effect that all of the US dollar balances must be transferred to NNPC’s CBN Treasury Single Account in US dollars.
    He noted that no such funds had been deposited into the Corporation’s CBN Treasury Single Account.
    “Consequently, NNPC’s record of the US dollar funds still yet to be transferred by a few commercial banks cannot reflect the said recovery.
    “While the Central Bank of Nigeria executes the Presidential directive to ensure complete transfer of US dollar funds to the Corporation’s CBN Treasury Single Account, it is pertinent to reiterate that NNPC will resist every attempt to subject these funds, which have been in the full view of Government, to five per cent whistle blowing fees, he added
    This,  he said  would be unreasonable and a sheer waste of public funds.
    Ughamadu said that the NNPC  as an entity with fiduciary responsibility to the government and people of the Federal Republic of Nigeria, its commitment to transparency and accountability remained unwavering. (NAN)
  • We have enough fuel, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) has put in place measures to prevent fuel scarcity in the last quarter of the year, its Group General Manager, Public Affairs, Ndu Ughamadu,  has said.

    He said the Corporation was being proactive to avoid a recurrence.

    Some of the measures, he said, include fuel import and provision of a good distribution mechanism to ensure that the product gets to the nooks and crannies of the country.

    In an interview with The Nation, Ughamadu said the NNPC’s Group Managing Director, Dr. Maikanti Baru, was championing these measures to make the end of year celebrations merry.

    The Corporation’s boss, he said, had  met stakeholders in the industry to achieve the goal.

    He said the NNPC’s chief had intervened in the crisis involving members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and ExxonMobil and other issues to ensure that fuel distribution was not disrupted.

    Ughamadu said: “PENGASSAN has given ultimatum to ExxonMobil to reinstate some of the workers sacked by the multinational oil company in line with the Supreme Court judgment. To prevent the issue from snowballing into major crisis, which would affect distribution and supply of petroleum products in the country, among other industry wide problems as 2018 is winding to a close, Dr Baru-led NNPC decided to engage stakeholders in the matter. NNPC has been able to deal with the threats by oil workers unions, especially PENGASSAN on the issue.’’

    He said by taking these measures,  NNPC would avert a re-occurrence of the incidents that happened in the last quarter of last year, when the country was plagued by fuel crises, which paralysed economic activities  across the country.

    He advised consumers, especially motorists not to entertain any fear of petroleum products shortages.

    It would be recalled that the last quarter of every year is plagued with fuel scarcity with NNPC and marketers finding it difficult to address the problem.

    Depots owned by NNPC and private operators also experience  the problem. While many of the depots owned by NNPC complain of problems of infrastructure decay and poor state of the pipelines, the privately-owned depots complain about lack of fuel supply.

    Worse still, fuel marketers complain that NNPC has monopolise fuel import.

  • NNPC: funding for AKK gas project coming

    The Nigerian National Petroleum Corporation (NNPC) has said it is close to wrapping up funding arrangements on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.

    NNPC Group Managing Director Dr. Maikanti Baru said this while speaking at the Nigerian Day during the 30th edition of Gas Technology Conference in Barcelona, Spain. He said tremendous progress had been recorded in securing funding for the project during the last visit of President Muhammadu Buhari to Beijing, China.

    Baru, who was represented at the event by NNPC Chief Operating Officer, Gas & Power, Saidu Mohammed, said the Corporation has progressed in funding arrangements, as well as the best payback structure for the project. He said financial partners were willing to collaborate with the corporation on the matter.

    NNPC said in a statement that the AKK gas pipeline was designed to enable gas connectivity between the East, West and North, which is currently inadequate. The pipeline will also enable gas supply and utilisation to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.

    The GMD said the ground-breaking ceremony for the project was near, saying  Nigeria is focussing on expanding its critical gas infrastructure, such as pipelines which would lead to a gas grid covering the entire country.

    “Once you have the whole nation covered with a gas grid, industries will naturally spring up along the way and litter the entire country. That is our target in the long run,”  Baru said.

    He described the coming of Train 7 of the Nigeria Liquefied Natural Gas (NLNG) as a “big bang” that would usher in new developments for Nigeria’s energy sector and expand the nation’s economy, adding that the project was also capable of unlocking new vistas for the country’s LNG potentials.

    Baru, who said the corporation had been looking forward to the FID on Train 7 in the last ten years, revealed that the wait would soon be over, even as he commended the Federal Government and the various shareholders for their support towards the NLNG project.

    He said Nigeria was looking outwards with its gas resources because God has blessed the country with abundant reserves.

    “We cannot consume out our gas resources in the next 50 years, even if we generate as high as 40,000mw for power. We are happy that in the NLNG is a credible company capable of competing in the international arena,” Dr. Baru added.

    Established in 1989 to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export, the NLNG is owned by the NNPC (49%), Shell (25.6%), Total (15%) and Eni (10.4%).

  • NNPC allays fear over fuel scarcity

    The Nigerian National Petroleum Corporation ( NNPC ) has assured that there is enough fuel in the country and that there is no need for panic buying of petroleum products by motorists and the public.

    The corporation disclosed this in a statement issued by Mr Ndu Ughamadu, It’s spokesman, in Abuja, on Friday.

    This, followed reports of an ultimatum issued by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over a purported intervention by an arm of the security agencies in what the union viewed as purely labour matters involving a company and its workers in Delta State.

    He added that the corporation’s Group Managing Director, Dr. Maikanti Baru and his Management team, were engaging the parties involved, saying the parties are close to resolving the issues.

    Read Also: AfDB approves $15m equity investment in Nigeria, others

    Ughamadu in the statement advised motorists and other consumers of petroleum products not to engage in panic buying as the NNPC Management was close to reaching an amicable resolution of the challenge.

    NNPC assured that the corporation had adequate storage of petroleum products across the country and advised that they should not entertain any fear of petroleum shortages.

  • We are not recruiting – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has disowned a recruitment advertisement purportedly by the corporation currently trending in the social media.

    The corporation in a statement by its Group General Manager, Group Public Affairs, Mr Ndu Ughamadu, in Abuja on Wednesday, described the advertisement as phoney.

    It advised unsuspecting members of the public to be wary of the scam.

    “The advertisement, set in NNPC’s corporate colour with its logo and a corporate picture, sets candidates’ entry requirements to include Master’s degree, Bachelor’s degree, Higher National Diploma (HND) and National Diploma, is fake.

    “The recruitment announcement or invitation to recruitment interview of this nature appearing intermittently in the social media should be discountenanced,’’ it said

    According to the statement, the NNPC is not carrying out any recruitment exercise now.

    “The National Oil Company dissociated itself from the fake e-mail address to which unsuspecting prospects were asked to direct their Curriculum Vitae in the placement advert,’’ it added.

    The corporation further reminded job seekers to note the antics of scammers who deploy, on social media platforms, such communication strategies as text messages, vacancy announcements and forged letters inviting them for non-existing job interviews.

    These, it said, were tricks to extort money from them, and cautioned that any applicant who entertained such invitations would have himself or herself to blame.

    It encouraged those who had already fallen victims to volunteer information to the law enforcement agencies.

    The corporation stated that it would as usual advertise at appropriate time, vacancies in the corporation through the national dailies. (NAN)

  • NNPC reporting template ready next month

    • FAAC: Fed Govt, states,
    councils share N714.809b

    The Nigeria National Petroleum Corporation (NNPC) reporting template ordered by President Muhammadu Buhari to resolve remittance to the Federation Account will be ready next month, Minister of Finance Kemi Adeosun said yesterday.

    She told reporters at the end of the Federation Account Allocation Committee (FAAC) meeting yesterday that “what the President wanted was a monthly reconciliation of figures between the ministry of finance, Office of the Accountant General of the Federation (OAGF), Director, Home Finance and the Nigeria National Petroleum Corporation (NNPC).”

    Mrs Adeosun noted that the proposed template will reduce, if not eliminate the type of friction that dogged FAAC two months ago.

    For July, Mrs Adeosun said N714.809 billion was shared among the Federal, States and local government and beneficiaries of the 13 per cent derivation. This is lower than the N812 billion shared for June.

    The beak down shows that N597.975 billion was shared as statutory benefits with the federal government receiving N269.825 billion, N136.859 billion to states, N105.512 billion to local governments councils, N44.964 billion was shared among states captured to benefit from the 13 per cent derivation from mineral revenue and N40.815 billion paid out as cost of collection/transfers/FIRS refund.

    Another N79.807 billion was shared to the three tiers of government and some given to the FIRS. N25.027 billion was shared as proceeds of Forex Equalization, and N12 billion was additional funds from the NNPC to the federation account.

    According to yesterday’s figures “crude oil export sales volume was 3.74 million barrels resulting  in an increased revenue from federation crude oil exports sales by 0.17 million barrels when compared with the previous month’s sale volume of 3.57 million barrels.

    Despite the improved revenue, production was negatively affected in the period by shut-Ins and shut-downs at various terminals for repairs and maintenance of aging facilities.

    The finance minister said the balance in the Excess Crude Account stands at $2.332 billion

  • NNPC to establish two condensate refineries

    The Nigerian National Petroleum Corporation (NNPC) says it will establish two condensate refineries with a total refining capacity of 200,000 barrels per day.

    The Corporation disclosed this in a statement signed by its spokesman, Mr Ndu Ughamadu, in Abuja, on Tuesday.

    It said the refineries would be located at the Western Forcados Area and Assah North Ohaji South (ANOH) Areas of Delta and Imo State respectively.

    Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from natural gas fields.

    The statement noted that the Group Managing Director of the Corporation Dr Maikanti Baru, made the disclosure at the bid opening for the provision of consultancy services to carry out a feasibility study for the refineries.

    He said that the establishment of the green refineries was part of the strategies to eliminate importation of petroleum products and guarantee energy security for the country.

    According to him, it will also increase gas supply to power plants in parts of the country.

    He added that the condensate refineries which would operate along the NLNG model would increase the nation’s revenue base, provide jobs for the people and save for the country a lot of foreign exchange.

    Baru said that the strategic initiative would increase the energy security for the nation and grow the NNPC refining capacity from 445,000 barrels per day to 645,000 barrels per day.

    The refineries, when fully operational, would increase gas supply to power plants in parts of the country.

    “The condensate refineries are going to be fully on commercial basis and we intend to get partners that would invest.

    “We are willing to get partners and operate in a similar manner with NLNG model where we could just get a majority share but not a controlling share,” he said

    He further noted that the model would allow the private sector to have the confidence to drive the plants and ensure that the bureaucracy government business was removed.

    “When the implementation of the Petroleum Industry Governance Bill (PIGB) becomes fully operational, the National Petroleum Company (NPC) would be steady as it would be governed by the Companies and Allied Matters Act (CAMA), he added.

    The GMD affirmed that the initiative was in line with the overall objectives of the Federal Government to grow the economy to 7 per cent of Gross Domestic Product (GDP) by 2020 through the Economic Recovery and Growth Plan (ERGP).

    He said the target of the NNPC was to ensure sufficient power and fuels were available to drive the growth in the economy, adding that the bid opening was the first step to realising the condensate refineries ambition.

    “It is a great day for me and NNPC and am happy that we have got some bids from companies who are willing to carry out the feasibility study for the NNPC.

    “The refineries will stem the incidences of pipeline vandalism, stressing that the refineries would also be an opportunity for the nation to restart the Aviation Turbine Kerosene (ATK) production,’’ Baru said.

    In his presentation, the Group General Manager, Corporate Planning and Strategy, Mr Bala Wunti, said the move was a strategic step that would preserve the NNPC market share at the upstream, midstream and downstream sectors of the nation’s hydrocarbon value chain.

    He added that the bid opening was a history making opportunity that was geared towards securing the future of the corporation.

    Also,the Manager, Supply Chain Management of the NNPC, Engr. Sandy Heman, said the public bid opening was sequel to the 2007 provisions of the Public Procurement Act (NAN)

  • FG denies alleged plans to sell NLNG

    The Federal Government on Tuesday, denied that there were plans to sell the Nigerian Liquefied Natural Gas Limited (NLNG).

    Minister of State for Petroleum Resources, Dr Ibe Kachikwu, debunked the allegation during an investigative hearing by House of Representatives Committee on Gas Resources and Allied Matters in Abuja.

    Kachikwu, who was represented by Director, Gas Resources in the ministry, said that they were not aware of any plans to sell NLNG by the Federal Government.

    The News Agency of Nigeria (NAN) reports that the documents submitted by the ministry and Nigerian National Petroleum Corporation (NNPC) on the issue, though harmonized, were not accepted by the committee because of identified issues.

    The committee discovered irregularities in the documents as presented by NNPC’s Chief Operating Officer (Upstream), Mr Bello Rabiu, who represented the Group Managing Director (GMD), Baru Maikanti.

    The committee also pointed out that the documents were not authenticated as they were unsigned.

    This was in spite of the explanation by representative of the GMD that the documents may be different but that the figures were the same.

    Also, the lawmakers queried NNPC and the Petroleum Ministry over some increases in the upgrade contract of OML 58 and the execution of the Northern Option pipeline.

    NNPC was said to have entered into a Joint Venture with Total Exploration and Production Nigeria Limited (TEPNG), with a Modified Carry Agreement.

    The agreement entailed the award of contract to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite-Ubeta-Rumuji pipeline in 2010, and the Northern Option Pipeline in 2011.

    But, Rabiu defended NNPC, telling the lawmakers that no money had been paid on the variations.

    Chairman of the committee, Rep. Fred Agbedi, said though the Parliament made the laws, it did not say that the contractor should be “employed as a learning curve,” adding that the contract value was “too staggering’’.

    He requested that the committee wished to see resolutions of NNPC and Total Board of Directors on the contract before it was awarded to ensure that they complied with procurement laws.