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Tag: NNPC

  • NNPC eyes 3.4bscfd domestic gas supply

    The Nigerian National Petroleum Corporation (NNPC) plans to deliver about 3.4 billion standard cubic feet per day (bscfd) of domestic gas supply to bridge existing and anticipated supply gap by 2020.

    Its Group Managing Director, Dr. Maikanti Baru, stated this yesterday in Lagos while delivering his keynote address at the ‘7 Critical Gas Development Projects Technical/Framing Workshop organised by the Corporation  in collaboration with the International Oil Companies (IOCs) to find ways to boost gas supply.

    He said the NNPC is targeting to bridge existing domestic gas supply deficit gap of between 3billion and 3.4billion standard cubic feet per day by 2020.

    According to him, to achieve the nation’s strategic aspirations, the state oil firm has identified 7 Critical Gas Development Projects (7CGDP) to deliver about 3.4bscfd to bridge the foreseen medium term supply of gas by 2020, which will be implemented on an accelerated basis.

    “Strategy of gas is to leverage the full potential of gas to achieve massive impact on the economy and GDP (gross domestic product) by growing gas supply to support at least 15 gigawatts (GW) by 2020.

    “Nigeria to be the regional hub of gas based industries such as fertilizer, petrochemical methanol, liquefied petroleum gas (LPG) and leverage our footprint in high value gas export through liquefied natural gas (LNG) and regional gas pipelines,” he said.

    The NNPC chief said the workshop is one of the high points in NNPC’s journey to realise the mandate to stimulate unprecedented economic growth through the pursuit of aggressive gas development.

    He said the issue of inadequate gas supply to the domestic market has gathered a lot of momentum and has been in the front burner in Nigeria in the past several years and the Corporation. “So, today framing workshop marks a major milestone in the quest to bridge gas supply and demand shortfall.

    “The seven critical gas development projects (5 NNPC/JV and 2 NPDC) have been identified as quick wins that would deliver the required volumes to bridge gas supply and demand shortfall.

    “There could not be a more appropriate forum and considering the caliber of the audience seated in this hall, I have no doubt that the expectation and the objectives of the workshop will be surpassed,” Baru said.

    Baru said the Corporation has engaged two world class project management consultants, DeltaAfrik/Worley Parson and Crestech/Penspen) that will work with Nigerian Petroleum Development Company (NPDC) and NNPC Joint Venture (JV) partners and other stakeholders to achieve the set project deliverables.

     

  • NNPC: Depot fire will not affect petroluem supply

    NNPC on Monday assured residents in Niger State and environs that the fire incident at its depot at Pogo Village in Paikoro Local Government area will not affect supply of petroleum products.

    The News men reports that the Niger Police, had on Sunday, deployed armed personnel to prevent people from scooping petroleum products at the NNPC pipeline that exploded in Paikoro Local Government area of the state.

    Mr Luke Anele, the Managing Director of Nigerian Pipeline and Storage Company, gave the assurance while talking to journalists at the NNPC in Minna on Monday.

    He said that there was no cause for alarm, adding that the situation had been brought under control.

    Anele said that the NNPC, would in the interim, embark on evacuation of the spills to ensure the safety of the environment.

    Read Also: Fire guts NNPC Minna depot

    According to him, NNPC has commenced an spot assessment to ascertain the level of damage caused by the explosion.

    He did not rule out the possibility of failure in the system, but dispelled the rumour going the rounds that the problem was caused by lack of maintenance.

    He also gave an assurance that the company would continue to ensure constant checks of the facility to forestall such incident.

    “Though no life was lost in the incident, we will soon commence the rehabilitation of the tank that was gutted by fire to put it back to use.”

  • Fire guts NNPC Minna depot

    Fire yesterday gutted the Minna, Niger State depot of the Nigeria National Petroleum Corporation (NNPC) as some black marketers’ scooped fuel from a leaking tank.

    Eyewitnesses and NNPC officials said there were no casualties.

    A worker of the NNPC said the leakage started on Saturday but the fire began about 11am on yesterday when the black marketers mobilised themselves and started scooping the fuel.

    He said: “We have been on ground since yesterday when the leakage started but these miscreants caused the fire as they went to the drainage to start scooping fuel.”

    The fire scared travellers and motorists off the busy Minna-Paiko road, they were afraid of taking the route for fear of a repeat of the Lagos incident.

    A resident who lives close to the depot, Ibrahim Paiko, said the leakage flowed through the depot’s drainage of the depot and when the black marketers saw it, they mobilised themselves and started scooping.

    “Despite the presence of security men, the boys refused to stop and the fire started.”

    Director-General of the Niger State Emergency Agency (NSEMA) Ahmed Ibrahim Inga said they were able to control the situation early. “If not that we started evacuation on time, it would have been a big disaster. We thank God everything has returned to normalcy. Thank God we alerted the people quickly and we were able to arrest the situation. Evacuation measures have been put in place and thank God the situation is now calm.

    “There are no casualties and we are trying to quell the fire totally and then we will go round to access what the situation is.”

     

  • NNPC pays $1b out of $5b cash call, says Baru

    The Nigerian National Petroleum Corporation (NNPC) has paid $1billion out of its $5billion cash call arraers.

    The Group Managing Director Dr. Maikanti Baru stated this in Abuja while addressing the corporation’s workers via a mail broadcast to commemorate his two-year anniversary.

    In a statement released yesterday,  Baru said in the upstream sub-sector, the corporation has worked hard to sustain production level   above an average of 2million barrels per day (bpd) this year.

    He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First E&P JV, which is expected to deliver a peak production of 50kbopd and 120million standard cubic feet of gas per day (MMscfd) by 2019.

    He said the corporation remains globally competitive to ensure value addition to the nation’s hydrocarbon resources for the benefit of Nigerians and other stakeholders.

    Baru, who described his two years in the saddle as “exciting”, said ever since he was appointed by President Muhammadu Buhari, he has enjoyed a great level of support from all the workers in moving the corporation forward.

    “Going forward, our priority will be to remain globally competitive.  In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company. We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone,” Dr. Baru told the workers in the nine-page address.

    He said his leadership would ensure improved collaboration with local communities, states, local governments and relevant agencies, improved security and safety of personnel and infrastructure, improved human capital development as well as optimised NNPC’s non-core oil businesses.

    The GMD said the 12 Business Focus Areas (12 BUFAs) was designed to succeed, having emplaced aggressive business improvement policies to ensure NNPC’s performance threshold across the oil and gas value chain.

    He said NNPC under his watch had initiated and successfully completed milestone deliverables in the upstream, midstream, including the refineries and in the downstream, leading to improved performance and business stability across the corporation’s major operations and entire value chain activities.

    In the midstream sub-sector, Dr. Baru observed that NNPC had remained a critical gas supplier to the domestic market with a dominant market share and supporting Government’s gas-to-power initiative, currently supplying an average of 720mmscf/day which represents about 47 per cent of total gas supply to the domestic gas market.

    He said the nation celebrated a record highest peak power generation of 5222megawatts (Mw) on 18th December 2017 with 76 per cent of the generated power from thermal power plants. Gas supply to industries has also increased with an average daily supply of about 450mmscfd, Dr Baru noted.

     

     

  • NNPC will remain globally competitive – Baru

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, says the corporation will remain globally competitive.

    Baru said this in a statement by the NNPC Spokesman, Mr Ndu Ughamadu, on Thursday in Abuja.

    According to the statement, Baru was addressing the corporation’s staff via a mail broadcast to commemorate his two-year anniversary at the helm of affairs of the NNPC.

    Baru, who described his two years in the saddle as “exciting”, said since he was appointed by President Muhammadu Buhari, he had enjoyed a great level of support from all staff in moving the corporation forward.

    ”Going forward, our priority will be to remain globally competitive.

    ”In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company.

    “‘We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone,” he said.

    Baru said his administration would ensure improved collaboration with local communities, states, local governments and relevant agencies, improved security and safety of personnel and infrastructure.

    Listing his achievements, Baru said the corporation had sustained production level from the nation’s assets to above average of two million barrels per day in 2018.

    He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First Exploration and Production Joint Venture, the corporation maintained commitment to repayment of cash calls arrears where about $1 billion of $5 billion indebtedness were settled.

    In the midstream sub-sector, Baru observed that NNPC had remained a critical gas supplier to the domestic market with a dominant market share and supporting government’s gas-to-power initiative.

    It is currently supplying an average of 720MMscf/day, representing about 47 per cent of total gas supply to the domestic gas market.

    He said under his watch, the nation celebrated a record highest peak power generation of 5,222mw on Dec. 18 2017 with 76 per cent of the generated power from thermal power plants.

    ”Gas supply to industries has also increased with an average daily supply of about 450 mmscfd.

    ”In addition, we kicked off the 614 km Ajaokuta-Kaduna-Kano (AKK) pipeline project, after obtaining FEC approval for the EPC of the Ajaokuta-Kaduna-Kano gas pipeline on 13th December 2017.

    ”The pipeline on completion is expected to deliver gas to the ongoing Abuja, Kaduna and Kano Power Plants with the potential to generate additional 3,600MW to the national grid.”

    In the downstream, Baru said milestone had also been achieved in rehabilitating and putting back on stream key downstream infrastructure critical to sustaining smooth and cost effective distribution of petroleum products across the country.

    ”Products supply availability was sustained across the country through a combination of Direct Supply Direct Purchase initiative and Forex provision to pre-qualified third-party importers,” he said.

    On the refineries, Dr. Baru said in spite of the numerous challenges, the refineries remained operational and strategic in their contribution to petroleum products availability to support domestic supply across the nation.

    He stated that other key achievements of his leadership included institutionalising increased transparency in the bidding process for crude oil term contracts, marine contracts and attracting investors into critical areas of the Nigeria Oil and Gas Industry.

    Baru charged the staff of the corporation not to rest on their oars, saying they should work towards making NNPC a great organisation that would be the pride of its founding fathers.

    Baru was appointed the 17th Group head of NNPC by President Buhari on July 4, 2016.

  • NNPC repays $1b of $5b cash call

    The Nigerian National Petroleum Corporation (NNPC) on Thursday said it has maintained commitment to repayment of cash calls arrears where about $1bn dollars of $5bn indebtedness has been settled.

    Its Group Managing Director, Dr. Maikanti Baru, disclosed this in Abuja while addressing the corporation’s staff via a mail broadcast to commemorate his two-year anniversary at the helm of affairs of the NNPC.

    Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu revealed this in a statement on Thursrday.

    The statement added that in the upstream sub-sector, Baru said the corporation had worked hard to sustain production level from the nation’s assets to above average of 2million barrels per day in 2018.

    He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First E&P JV which is expected to deliver a peak production of 50kbopd and 120MMscfd by 2019.

    He vowed that the corporation remains globally competitive to ensure value addition to the nation’s hydrocarbon resources for the benefit of Nigerians and other stakeholders.

    Baru, who described his two years in the saddle as “exciting”, said ever since he was appointed by President Muhammadu Buhari, he had enjoyed a great level of support from all staff in moving the corporation forward.

    “Going forward, our priority will be to remain globally competitive.  In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company. We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone,” Dr. Baru told staff in the nine-page address.

    Read Also: NNPC to raise fund from capital market for projects

    Dr. Baru said his administration would ensure improved collaboration with local communities, states, local governments and relevant agencies, improved security and safety of personnel and infrastructure, improved human capital development as well as optimized NNPC’s non-core oil businesses.

    The GMD said the 12 Business Focus Areas (12 BUFAs) was designed to succeed, having emplaced aggressive business improvement policies to ensure NNPC’s performance threshold across the oil and gas value chain.

    He said NNPC under his watch had initiated and successfully completed milestone deliverables in the Upstream, Midstream, including the refineries and in the Downstream, leading to improved performance and business stability across the corporation’s major operations and entire value chain activities.

    In the midstream sub-sector, Dr. Baru observed that NNPC had remained a critical gas supplier to the domestic market with a dominant market share and supporting Government’s gas-to-power initiative, currently supplying an average of 720MMscf/day which represents about 47% of total gas supply to the domestic gas market.

    He said under his watch, the nation celebrated a record highest peak power generation of 5222MW on 18th December 2017 with 76 per cent of the generated power from thermal power plants. Gas supply to industries has also increased with an average daily supply of about 450mmscfd, Dr Baru noted.

    “In addition, we kicked off the 614km Ajaokuta-Kaduna-Kano (AKK) pipeline project, after obtaining FEC approval for the EPC of the Ajaokuta-Kaduna-Kano gas pipeline on 13th December 2017. The pipeline on completion is expected to deliver gas to the ongoing Abuja, Kaduna and Kano Power Plants with the potential to generate additional 3600MW to the national grid.

    Dr. Baru said NNPC and ONHYM jointly engaged two consultants, Penspen and ILF, to carry out the Feasibility Studies and Project Management Consultancy services respectively, revealing that the Feasibility Studies have been concluded as planned, while plans are afoot to jointly commence FEED before the end of the year.

    In the downstream, Baru said milestone had also been achieved in rehabilitating and putting back on stream key downstream infrastructure that are critical to sustaining smooth and cost effective distribution of petroleum products across the country.

    Despite challenges of vandalism, sabotage and aging infrastructure, Dr. Baru noted, NNPC had achieved milestones in revamping the corporation’s critical oil & gas infrastructure.

    “Products supply availability was sustained across the country through a combination of Direct Supply Direct Purchase (DSDP) initiative and Forex (FX) provision to pre-qualified third-party importers,” he stressed.

    On the refineries, Dr. Baru said despite the numerous challenges, the refineries have remained operational and strategic in their contribution to petroleum products availability to support domestic supply across the nation.

    The GMD stated that other key achievements of his leadership so far were  institutionalizing increased transparency in the bidding process for crude oil term contracts as well as marine contracts and attracting investors into critical areas of the Nigeria Oil and Gas Industry, including the rebranding of about 10 subsidiaries of the corporation towards more profitability.

    Dr. Baru charged the staff of the corporation not to rest on their oars, saying they should work towards making NNPC a great organization that will be the pride of its founding fathers.

    It would be recalled that Baru was appointed the 17th GMD of NNPC by President Muhammadu on the 4th July.

  • NNPC to raise fund from capital market for projects

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, said the corporation would raise funds from the capital market to finance  seven new oil and gas projects in the country.

    In his keynote address at the ongoing Nigerian Oil and Gas Conference and Exhibition in Abuja, titled: Driving Nigeria’s Oil & Gas Industry Towards Sustained Economic Development and Growth, Baru listed the projects to inlcude NNPC/Nigeria Agip Oil Company Joint Venture Idu-Re-development and South Gas Project.

    Others, he said are the North Gas Project, Central Gas Project, NNPC/Total Exploration and Production Nigeria JV’s Ikike Project, NNPC/Shell Petroleum Development Company JV Southern Swamp and Associated Gas Solution Step 2 Project.

    He added that the NNPC was on the verge of concluding the Bonga South West/Aparo, BSWA, project with Shell Nigeria Exploration and Production Company, SNEPCO, pending the resolution of certain disputes with its partners.

    The NNPC chief said: “We intend to sanction the multibillion US dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the Heads of Terms with SNEPCO on the various pending PSC Arbitration disputes. This will jump start the resolution of all the other PSC Arbitration Disputes.”

    Also speaking at the conference, the Secretary-General, Organisation of Petroleum Exporting Countries (OPEC), Mr. Mohammad Barkindo, insisted  that both low and high crude oil prices have negative effects for both oil producing countries as well as consumers.

    According to him,  extreme volatility in the crude oil market has very negative consequences for consumers and producers.

    He said: “Low oil prices are bad for producers today and create situations that are bad for consumers tomorrow. And high oil prices are bad for consumers today and lead to situations that are bad for producers tomorrow.”

  • No crude oil discovered in Bida Basin yet -NNPC

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru, has debunked claims that commercial quantities of crude oil have been discovered in the Bida Basins.

    He said that the Bida Basins exploration has not advanced to the level of declaring discoveries talk less of claiming that the oil and gas present is in commercial quantities.

    Baru disclosed this during his acceptance speech delivered during his conferment with the Fellowship Award of the Ibrahim Badamosi Babangida University, Lapai (IBBUL).

    He explained that there are ten stages of activities that lead to the discovery of oil and gas and the Bida Basin exploration is in the fourth stage which is determining if hydrocarbon has been generated in the Basins. “IDSL, a subsidiary of NNPC, is currently analysing the Basins to determine if the hydrocarbons have been generated.”

    “There have been sporadic claims, even recently, by several bodies, including Niger State dictionaries that crude oil has been discovered in certain areas of the state. Also, it was reported that commercial qualities of oil were discovered from seven wells drilled through the collaboration of the NNPC and IBBUL. NNPC’s wish is: may this come true.

    “It is my hope that with this clarity, all claims and counter claims in respect of the Bida basins hydrocarbon discoveries will be given a befitting rest they deserve, until the conclusion of the current NNPC-led efforts or other efforts in the Basins are concluded in conformance with the due process enumerated earlier.”

    However, the NNPC Group Managing Director said NNPC is desirous of discovery of oil and gas in the frontier basins and is currently engaged in aggressive exploration campaign at most inland basins with the view of discovering new oil and gas reserves that will boost oil and gas production in the country.

    “It is our utmost desire that the success of the ongoing exploration campaign in the inland Basins will usher in a new Nigeria. Oil discovery in the inland Basins is expected to increase oil production and generate higher income to the nation, this providing more funds and linkages for speedy development of other sectors of the economy.”

  • Governors wanted N40b after collecting N147b – NNPC

    The Nigeria National Petroleum Corporation (NNPC ), on Thursday cried out over how state Governors insisted that the corporation must remit additional N40 billion after paying N147 billion to the Federation Account Allocation Committee (FAAC ) for the month of June this year.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who broke the news in a message to journalists, described the situation as “very unfortunate considering that NNPC is exiting the cash call phenomenon.”

    According to him, the agreement the NNPC has with the governors is that FAAC be given N112 billion monthly.

    Read Also: Buhari intervenes in FAAC, NNPC feud

    This , he said, however, will be subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of PMS cost under recovery and pipeline maintenance.

    He noted that “Incidentally, due to the posture of governors, the NNPC was able to raise 147 billion Naira this month(June) for the Governors by taking from the amount meant for settling cash call obligations.

    “Sadly, however, the Governors wanted additional 40 billion Naira.”