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Tag: NNPC

  • NNPC signs contract agreements for $2.8bn gas pipeline project

    The Nigerian National Petroleum Corporation (NNPC) has awarded contracts for the engineering, procurement, construction, commissioning and financing of Lots 1&3 of the Ajaokuta – Kaduna – Kano (AKK) gas pipeline.

    The gas pipeline measuring 40inch x 614km and valued at $2.8 billion are awarded to a consortium of indigenous and Chinese companies under a 100 per cent contractor financing model.

    The Group General Manager, Group Public Affairs Division, Ndu Ughamadu, made this disclosure in a statement yesterday.

    The statement noted that under the terms of contract, Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station, was awarded to the OilServe/Oando Consortium.

    NNPC said that Lot 3, which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium.

    According to the statement, it is envisaged that contract agreement for Lot 3, which covers 40inch x 193km stretching from Abuja to Kaduna, will be executed in the weeks ahead.

    Speaking at the event, the Group Managing Director of NNPC, Dr. Maikanti Baru, said the AKK Gas pipeline was a section of Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialization of the eastern and northern parts of Nigeria.

    The project would also enable connectivity between the East, West and North, which is currently non-existent.

    He noted that the AKK section had suffered setbacks due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model.

    “The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blueprint, are currently at various stages of completion and are being financed directly by the Federal Government,” he said

    In his remarks on behalf of the Oilserve/Oando Consortium, Engr. Emeka Okwuosa, Chairman of Oilserve Limited, expressed gratitude to the Federal Government and the NNPC for providing the opportunities for indigenous companies to flourish in the Nigerian Oil and Gas Industry.

    He said the decision to award Lot 1 of the AKK project to an indigenous consortium speaks volume of government’s resolve to grow and encourage the attainment of the ideals of local content philosophy.

    Engr. Abubakar Nuhu, Vice- Chairman of Brentex Nigeria Limited, said the Brentex-CPP Consortium would rely mainly on the acclaimed pedigree and global expertise of CPP in pipeline construction to deliver a world class project.

    It will be recalled that the process for the award of the AKK project teed-off in July 2013 with the advertisement for tenders published by the NNPC in major national newspapers.

    After a painstaking technical and commercial evaluation process, the Federal Executive Council at its 46th meeting on December 13, 2017 approved the contract valued at over $2.8 billion.

  • NNPC plans quality fuel

    The Nigerian National Petroleum Corporation (NNPC) is working to ensure that only quality fuel is imported and produced in the country, NNPC’s Group General Manager, Public Affairs Division, Ndu Ughamadu, has said.

    The development, he said, was informed by the need to safeguard the health of Nigerians, who daily use fuel for domestic and industrial purposes.

    In a chat with The Nation, he said it was government’s desire to bring fuel that is free from pollution into the country, adding that fuel with lower degree of sulphur will definitely help the country.

    According to him, the NNPC is introducing low-sulphur fuel as replacement for the high-sulphur fuel believed to be highly inflammable and cause pollution, adding that the introduction of low sulphur fuel will help in preventing consumption of toxic fuel and pave way for healthy environment.

    Ughamadu said the development became necessary in order to provide the much-needed benefits to consumers, adding that introducing low sulphuric contents into the market is sacrosanct.

    According to him, the country failed to meet the July 2017 deadline to end importation of ‘dirty fuel’ because of the high cost of bringing in low sulphur product into the country, adding that the delay in importing low-sulphur fuel was caused by rising cost of importation of the product and discussions on the issue.

    NNPC had extended approval for the refineries to standardise the production of low sulphur fuel by one more year, from 2020 to 2021. Prior to this, the United Nations Environmental Programme (UNEP), has been campaigning for developing countries to place a ban on the importation of dirty fuel from Europe.

    Developed and Western countries have long banned the importation of fuel with sulphur particles above 10 PPM.

    In 2016, Ghana, Togo, Benin Republic, Ivory Coast and Nigeria had vowed to end the importation of what environmentalists described as ‘dirty fuel’ from Europe. Nigeria imports 60 per cent of West Africa’s fuel consumption.

  • NNPC plans to provide quality fuel

    The Nigerian National Petroleum Corporation (NNPC) is working to ensure that only quality fuel is imported and produced in the country, NNPC’s Group General Manager, Public Affairs Division, Ndu Ughamadu, has said.

    The development, he said, was informed by the need to safeguard the health of Nigerians who daily use fuel for domestic and industrial purposes.

    In a chat with The Nation, he said it was government’s desire to bring fuel that is free from pollution into the country, adding that fuel with lower degree of sulphur will definitely help the country.

    According to him, the NNPC is introducing low-sulphur fuel as replacement for the high-sulphur fuel believed to be highly inflammable and cause pollution, adding that the introduction of low sulphur fuel will help in preventing consumption of toxic fuel and pave way for healthy environment.

    Ughamadu said the development became necessary in order to provide the much-needed benefits to consumers, adding that introducing low sulphuric contents into the market is sacrosanct.

    According to him, the country failed to meet the July 2017 deadline to end importation of ‘dirty fuel’ because of the high cost of bringing in low sulphur product into the country, adding that the delay in importing low-sulphur fuel was caused by rising cost of importation of the product and discussions on the issue.

    It would be recalled that NNPC has extended approval for the refineries to standardise the production of low sulphur fuel by one more year, from 2020 to 2021. Prior to this, the United Nations Environmental Programme (UNEP), has been campaigning for developing countries to place a ban on the importation of dirty fuel from Europe.

    Developed and Western countries have long banned the importation of fuel with sulphur particles above 10 PPM.

    In 2016, Ghana, Togo, Benin Republic, Ivory Coast and Nigeria had vowed to end the importation of what environmentalists described as ‘dirty fuel’ from Europe. Nigeria imports 60 per cent of West Africa’s fuel consumption.

  • FAAC deadlock: Adeosun calls emergency meeting with Baru

    The Minister of Finance, Mrs Kemi Adeosun said she is meeting with the NNPC GMD over discrepancies in payment into the Federation Account.

    This is coming after the Federation Account Allocation Committee (FAAC) meeting on Tuesday was inconclusive due to discrepancies of about N37.76 billion in revenue presented by the NNPC.

    Adeosun, who is also the Chairman of FAAC, said she called for an emergency meeting next week with the Group Managing Director of NNPC, Mr Maikanti Baru and other key management staff over revenue payment into the Federation Account.

    The Minister, in a statement made available to newsmen by her Senior Adviser on Media and Publicity, Mr Oluyinka Akintunde assured Nigerians that the FAAC meeting would hold on Wednesday at 9. a. m.

    She said that the Accountant General of the Federation, Commissioners of Finance and Accountant-Generals of the 36 States would also be present at the meeting.

    Similarly, she said that other representatives of the NNPC, Federal Inland Revenue Service, Nigeria Customs Service, Department of Petroleum Resources would also be at the meeting. (NAN)

  • FAAC: states abort meeting over N37.76bn shortage in NNPC’s revenue

    The monthly Federal Account Allocation Committee (FAAC) meeting, which began on Tuesday was inconclusive due to discrepancies of about N37.76 billion in revenue presented by the NNPC.

    The Accountant-General of the Federation, Mr Ahmed Idris told newsmen in Abuja, that the meeting was inconclusive because of irregularities in figures presented by the NNPC.

    “Obviously, you are all aware that anything that has to do with federation revenue is statutory and, therefore, constitutional and we must always verify our figures to the last kobo.

    “Failing to do so will amount to committing illegality and unconstitutionality.

    “It is on this note that we observe some issues in the figures given by one of the major revenue generating agencies namely the NNPC.

    “The committee is of the opinion that until and unless these figures are reconciled, corrected, verified and factual; we cannot distribute the revenue as the case is.

    “Let me again be quick to inform Nigerians that we are sensitive with the issue and to the fact that state governments may find it difficult without this money.

    “But we have to follow the constitution and the laws for distribution of revenue,’’ he said.

    Also, the Chairman, Forum of FAAC Commissioner, Mr Mahmoud Yunusa, said the forum rejected the amount presented by the NNPC because it was far lower than what was projected for the month.

    He argued that if the NNPC could not surpass what they presented in February, then they should not present anything less than what they presented the previous months.

    “We started this meeting last week and NNPC did not submit their figures until yesterday (Monday), which we were not able to review until this morning.

    “This morning when we were reviewing the figures as presented by the NNPC, it came as a great surprise to see that the amount was less than N100 billion.

    “So we (states) decided that we will not collect the amount presented,

    “We are contesting the figures because pipeline vandalism has reduced, while crude oil prices have continued to go up.

    “On this note, we are wondering why the nation cannot raise enough money through that sector to share to states so that everyone can pay workers, contractors and so on.

    “We are well aware that this development may affect the payment of salaries in states, but we cannot hurriedly accept this money and then later cry foul play.

    “So, we should all be patient. But we hope that with this latest development, NNPC will do the needful as soon as possible,’’ he said.

    Meanwhile, in a document obtained by the News Agency of Nigeria (NAN), the NNPC paid in N74.06 billion into the federation account as oil revenue generated in the month of February, to be shared in March.

    “Compared to the collection of N111.84 billion in Jan. 2018, the February collection of N74.06 billion is lower by N37. 76 billion or 33 per cent.

    “We were unable to meet the approved budget as a result of low collection from Concession Rentals and Petroleum Sharing Contracts (PSC) Royalty.

    “We wish to note that the sum of N30.5 million for the Misc Oil revenue and N6.11 million for Gas Flared are on transit at the end of Feb. 2018.

    “Furthermore, we received 16. 56 million dollars out of the 85.94 million dollars expected from PSC and MCA lifting for the month under review, therefore leaving 68.65 million dollars as outstanding,’’ NNPC said. (NAN)

  • Fuel scarcity: Baru says recent petrol supply hiccup, a learning curve

    The Nigerian National Petroleum Corporation (NNPC), says it has activated measures to ensure that the prevailing stability in the supply and distribution of petroleum products is sustained across the country.

    The Group Managing Director, Dr Maikanti Baru, said this in a statement issued by the NNPC Spokesman, Mr Ndu Ughamadu on Tuesday in Abuja.

    According to Baru, the NNPC will imbibe the lessons garnered from the exercise to improve on its ability to discharge its responsibility as supplier of last resort.

    He said the War Room, which was activated three months ago to combat fuel scarcity, and comprised officials from the Ministry of Petroleum subsidiaries and security operatives, had ended its mandate.

    He said the war room had provided the corporation with a platform for “real-time monitoring, information sharing, process de-bottlenecking as well as accelerated decision-making by top management.

    “After months of consistent efforts, coupled with the doggedness of the War Room lieutenants, who spent days and nights, often sacrificing weekends and public holidays, we were able to take far-reaching actions and arrive at impactful decisions that have turned around the situation from misery to victory.’’

    He said the corporation would maintain an eagle eye on the daily Premium Motor Spirit (PMS), or petrol evacuation figures from depots across the nation, and where necessary, engage the Nigerian Customs Service (NCS) through existing Joint Monitoring Team.

    “To the leadership of the Security Agencies, I cannot thank you enough for your support, while at the same time requesting for more of such as we continue to navigate the waters of the downstream sector as the sole importer of the PMS,’’ he said.

    Baru pledged that as the supplier of last resort, NNPC would always ensure petroleum products availability nationwide.

    The statement also quoted Dr Babatunde Adeniran, the Chief Operating Officer, Ventures and leader of the Fuel Supply War Room as saying “the exercise provided invaluable knowledge and capacity building opportunity.

    “Not only for the War Room members but also for the corporation and the entire Oil and Gas Industry at large.’’

    The NNPC Fuel Supply War Room was inaugurated on Dec. 4, 2017, as a Rapid Response Committee to manage the then fuel supply and distribution hiccups that arose at the period.

    It consisted of officials involved in the NNPC supply and distribution community, namely: Crude Oil Marketing Division, Petroleum Products Marketing Company, and Nigerian Pipelines and Storage Company.

    Others are NNPC Shipping, NNPC Retail Limited, Group Human Resources, the Refineries and Group Security Department as well as the Public Affairs Division.

    Also, the Department of Petroleum Resources, Petroleum Products Pricing and Regulatory Agency, Petroleum Equalization Fund and security agencies, especially the Nigeria Security and Civil Defense Corps, the Nigerian Police Force and the Department of State Security supported the exercise. (NAN)

  • NNPC laments high rate of pipeline vandalism in South-East

    The Nigerian National Petroleum Corporation (NNPC), has  lamented the high rate of pipeline vandalisation witnessed  in the south-eastern part of the country.
    A Statement issued by the Corporation’s spokesman, Mr Ndu Ughamadu on Sunday in Abuja also stated that  more than 50 per cent of petroleum products pumped through the Aba- Enugu pipeline network were mostly stolen.
    According to the  statement, Group Managing Director of the NNPC,  Mr.  Maikanti Baru, noted this during a visit to Governor Ifeanyi Ugwuanyi of Enugu State.
    He  said that d that at some point, about 700 breaches were recorded on the pipeline adding that the  situation had hampered efficient supply and distribution of petroleum products not only in the state, but in the entire South-East region.
    “The Osisioma and Nsirimo areas (both in Abia State) as well as Ishiagwu (in Ebonyi State) were the major vandalism flash points along the line where illegal connections for diversion of products had been observed almost on a daily basis.
    “Even after the Aba-Enugu pipeline was repaired, it still had to be shut down as the corporation hardly gets up to 50 per cent of the products pumped,” he said
    He described Enugu Depot as a major NNPC supply and distribution infrastructure in the entire South-East region which requires the support of all stakeholders bring back to life.
    He called on the governor to rally his counterparts in the region to work with the NNPC and security agencies to secure the strategic pipeline, which he said would go a long way in reviving efficient supply and distribution of petroleum products in the area.
    “This depot is not only strategic to the South East, it also serves as a bridge to Makurdi Depot in the North Central as well as the Yola Depot in the North East,” he noted
    Baru also charged the governor to collaborate with relevant government agencies to enforce the sale of petrol at  filling stations in the state at the government-regulated price of N145.
    “You wouldn’t want to watch as unpatriotic marketers profiteer over your innocent citizens. We still believe marketers anywhere in this country can make profit selling at the official pump price,” the GMD added
    Responding,  the Enugu State Government pledged to work together with the NNPC to revamp the strategic Enugu depot towards meeting the petroleum products demand of the entire South-East region and beyond.
     Ugwuanyi assured that he would rally other governors from the region to ensure that the Aba-Enugu pipeline was secured from the unwholesome activities of vandals.
    Describing Baru’s visit as timely, the governor  said he was now better informed as to why the Enugu Depot was not in operation.
    He assured that the Enugu State Task Force on Petroleum Products would work with NNPC officials and relevant security agencies to ascertain the exact incident spots with a view to securing the pipeline.(NAN)

  • NNPC to cut daily loss on fuel supply to N516m

    The Nigerian National Petroleum Corporation (NNPC) is to reduce its daily loss from N774 million to N516 million, Group General Manager, Public Affairs Division, Ndu Ughamadu, has said.

    He said the corporation would achieve this by cutting the level of fuel consumed from 60 million to 40 million litres.

    He noted that product diversion and activities of some unscrupulous marketers contributed to the high consumption and once the corporation plugged the holes, consumption level would drop.

    In a telephone chat, Ughamadu said a large portion of the fuel supplied to the market was diverted to neighbouring countries, such as Benin Republic and Togo.

    He said NNPC has partnered the Nigerian Customs Service (NCS) to check the smuggling of petroleum products.

    Ughamadu said: “Our (NNPC’s) under-recovery was N774 million as at the time the level of fuel consumed in the country rose to 60 million litres per day. We, at NNPC, discovered that the higher the level of fuel that is being consumed in the country, the higher the losses recorded by the country, as a sizeable portion of the fuel is being smuggled out of the country.

    “To reduce fuel consumption, which in most cases is smuggled out of the country, the corporation decided to partner the Nigerian Customs Service (NCS). Through this means, the Customs would help to check smuggling of petroleum products by mounting surveillance at the borders.”

    He said NNPC discovered 200 filling stations in one of the borders in the country, stressing that the partnership between it and the Customs would help in addressing problems such as hoarding and smuggling of petroleum products, which he said, contributed to the fuel scarcity last December.

    “With the joint efforts of NNPC and the Customs, all  illegal petrol stations at the borders would disappear soon and fuel consumption would reduce drastically.”

    He said the level of fuel consumption was 39million litres per day, adding that it grew to 80million litres per day during the fuel scarcity and later 60million litres.

    According to him, Nigerians are erroneously blaming NNPC for fuel scarcity that occurred recently, without considering other factors that caused it.

    On fuel scarcity, he said there was no scarcity in the country, as NNPC has supplied enough fuel to marketers for distribution to their retail outlets.

    He said there is fuel in states like Imo, Enugu, and Anambra, stressing that the rumour that those states do not have fuel was not true.

    He said there is a difference between selling fuel above the official pump price of N145 per litre by some marketers in the East and its unavailability.

    Ugbhamadu said all hands were on deck to rid the fuel market of saboteurs who were frustrating the efforts of the government to supply fuel at approved pump price.

  • NNPC, NMGS partner to grow hydrocarbon reserves

    The Nigerian National Petroleum Corporation (NNPC) has expressed its readiness to collaborate with the Nigerian Mining & Geosciences Society (NMGS) towards growing the nation’s abundant hydrocarbon reserves.

    Group Managing Director of the corporation, Dr. Maikanti Baru, disclosed this on Tuesday shortly after being conferred with the honourary fellowship of the Society in Kano, on Tuesday.

    Baru, who acknowledged the “indispensable role” played by geoscientists, mining engineers as well as metallurgists towards the development of the nation’s Oil and Gas Industry, said NMGS was critical to the attainment of the NNPC’s core mandate.

    “NNPC pledges to continue to work with you and every willing partner in the search for more hydrocarbon deposits in the country,” he said.

    He said it was in line with this collaboration that the corporation developed a strategy involving various geoscience departments in the country’s tertiary institutions which culminated in the renewed search for hydrocarbon deposits in the inland basins.

    “Our search is primarily targeted at increasing the hydrocarbon reserves of the country and also to harness these resources which may be in other parts of the country,” he added.

    He described as “saddening” last year’s unfortunate incident which claimed the lives of some University of Maiduguri staff working on the Chad basin exploration as well as the loss of one of the corporation’s staff working on the Benue Trough exploration.

    “I pledge on behalf of the NNPC that their sacrifice shall not be in vain. There is no better way to honour the efforts of our gallant heroes than to continue the good work they died for,” he added. 

    On the Chad Basin exploration, the GMD observed that the corporation planned to drill four wells in areas that it has acquired 1, 961kmsq 3D seismic data out of 3,550kmsq planned.

    He said NNPC would be going into the deeper Maiduguri sub-basin to acquire more 3D seismic data as soon as normalcy returns to the Chad basin.

    “While waiting for normalcy to return to the Chad Basin, we have stepped up efforts in the Lower Benue trough. So far, we have acquired 20km of 2D data out of the planned 455km 2d seismic data,” he added.

    On the Gongola Basin, Dr. Baru said four wells were also being planned for drilling to further test the prospects identified around Kolmani River-1, Nasara-1 and Kuzari-1 in 2018.

    He thanked the Society for conferring on him with their Fellowship, saying that the recognition would spur him to rededicate himself towards giving his all for the Oil and Gas Industry and by extension the country.

    He pledged to re-dedicate himself to the lofty ideals of NGMS, stressing that he would not disappoint the Society in the trust it reposed in him.

    Earlier in his speech, the President of the NMGS, Prof. Silas Dada said the Society was honounring the GMD for his untiring commitment and service to the growth of the Nigerian Oil and Gas Industry.

    Established in 1977 for the advancement and practice of mining, earth sciences and metallurgy, the Nigerian Mining and geosciences Society (NMGS) is charged with upholding the ethics and safeguarding the interests of the professions covered by the society.

  • NNPC to work with military in oil exploration in Chad Basin — Baru

    The Nigerian National Petroleum Corporation (NNPC) says it will work closely with security agencies in its bid to resume oil exploration in the Chad Basin.

    The Group Managing Director of NNPC, Dr Maikanti Baru disclosed this on Tuesday in Kano at the 54th annual international Conference and exhibition of Nigeria Mining and Geosciences Society (NMGS).

    Baru said the resumption of oil exploration activities was imminent and the corporation would work with security agencies to remobilise to Chad Basin and continue their work.

    “We are going to work with military authorities to remobilise our workers to Chad basin.

    ‎“In terms of the Gongola basin, we have been acquiring data and we intend to start drilling exploration wells in the Gongola basin, particularly around the Golmani river.

    “We are going to ‎go back to that area in shortest possible time , may be before the end of the year,” he said.

    He said that the corporation planned ‎to drill four wells and would continue with the exploration of regional acquisition across the lower Benue.

    According to him, activities have started in Nasarawa and they will be going to Benue state before the end of year.

    Baru said that communal clashes in the area had seriously affected ‎their operations.

    He said that the Nasarawa state governor had promised to provide enough security for them to continue.

    ‎The GMD commended President Muhammadu Buhari for his efforts at restoring peace in the Northeast.

    In his remarks, Kano state governor, Alhaji Abdullahi Ganduje, said that the state government had trained 44 youths on gemstone cutting and polishing.

    The governor, who was represented by the Secretary to the state Government, Alhaji Usman Alhaji said the government would harness the mining sector to boost revenue of the state.  (NAN)