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Tag: NNPC

  • Why oil exploration is yet to commence in Chad Basin – NNPC

    Why oil exploration is yet to commence in Chad Basin – NNPC

    The Nigerian National Petroleum Corporation (NNPC) on Tuesday blamed security challenges for the non-commencement of oil exploration in the Chad Basin.

    The General Manager, Frontier Exploration Services of NNPC, Dr. Mazadu Bako, stated this at the 50th anniversary celebration of Geology Department, Ahmadu Bello University (ABU), Zaria.

    The Golden Jubilee was marked in honour of the pioneer Head of the Geology Department, late Dr. John B. Wright, who was given a posthumous award.

    He said: “If the security situation was not the way it is by today, our locations for drilling would have been ongoing in construction.

    Represented by the Deputy Manager, Benue Trough Operations at NNPC, Alex Tarka, Bako said the Department of Geology in ABU has produced Geo scientists whom had contributed immensely to the Nigeria’s extractive industry.

    “Let us take a quick look at NNPC exploration efforts in some inland basins in Nigeria, starting with the Chad basin. Between 1976 and 1996 a total of 33, 000 kilometers of 2D seismic data were acquired, processed and interpreted, which led to the drilling of 3wells in the Chad basin.

    “I have the honor to let my department know that as 1992, I was one of the geologists in one of the wells. Only two out of the 21 wells, the Uwadi and Kinasa recorded non- commercial gas while the other 21 were driven from 2008 to 2017. Just last year, a total of 1,962.20 square kilometers of 3D seismic data were acquired, processed and interpreted and prospects have been identified. Plans to commence drilling of the matured prospects have commenced,” the NNPC official added.

     

     

  • NNPC plans direct fuel supply to independent marketers

    Barring any unforeseen circumstances, the Nigerian National Petroleum Corporation (NNPC), will henceforth be supplying premium motor spirit (petrol) directly to independent marketers. This is  to deepen the supply of the product across the country, The Nation has learnt.

    It was gathered that NNPC will be supplying fuel to the marketers through private depots as part of efforts to improve supply and ease scarcity.

    Sources close to The Nation said NNPC initiated the idea in order to leverage the large and nationwide retail outlets owned by the independent marketers, which is put at 80 per cent of the total filling stations in Nigeria.

    The source, who does not want to be mentioned, said the Corporation initiated the idea following the recent fuel scarcity, which paralysed social and economic activities in the country last December.

    “Not all the depot owners have filling stations. Some of the depot owners have retail outlets. The decision by the NNPC to choose independent marketers was borne out of its size as evident by their numerous outlets across the country. The Independent Petroleum Marketers Association of Nigeria (IPMAN) controls a big chunk of the retail market and the development is going to afford NNPC the opportunity to penetrate the market by distributing fuel well in the country.

    Speaking on the issue, IPMAN’s National Operational Controller, Mr Mike Osatuyi, said his members would not miss any opportunity given them by the government to distribute in the country.

    He said his members are yet to embark on importation despite the directive by the Federal Government that they should resume importation of fuel.

    According to him, independent marketers are not importing fuel because they do not have firm commitment of NNPC to do so.

    Osatuyi said: “No marketer can import fuel into the country, without the express permission of the NNPC. The reason is because no marketer can import fuel at N180 per litre and make appreciable margin. The last price a marketer can get the refined product abroad is N180 per litre. Any marketer who imported fuel without the nod of the Federal Government as relates to the payment of differentials on the cost of importation is wasting his time.

    “Marketers are not ready to import fuel because if they should do, nobody would pay them the differentials on the cost of fuel they imported.

    He said marketers, during a meeting with the Federal Government on how to resolve the fuel crisis, offered the government three solutions.

    He said the marketers suggested to the Federal Government to be providing foreign exchange to them at below N240 per dollar and double or triple fuel import.

    Commenting on the issue, NNPC’s spokesman, Ndu Ughamadu, said the corporation is interested in dealing directly with independent marketers on the condition that they sort out their differences.

  • NNPC fails to Joint Venture Cash call for five years, says Yari

    NNPC fails to Joint Venture Cash call for five years, says Yari

    Zamfara State Governor and Nigeria Governors Forum (NGF) Chairman Abdulaziz Yari yesterday reported the Nigerian National Petroleum Corporation (NNPC)  to President Muhammadu Buhari for its failure to remit to the Federation Account the Joint Venture Cash Call for five years.

    Yari briefed State House correspondents after closed-door meeting with President Buhari, attended by six other governors at the Presidential Villa, Abuja.

    He stressed that the country was shortchanged by NNPC for five years when oil price was about $110 per barrel and as high as the Cash Call Joint Venture.

    On the visit, Yari, who was flanked by Katsina State Governor Aminu Bello Masari and Simon Lalong (Plateau State) said: “The meeting is on the decision of NEC (National Economic Council) that the seven-man Committee was established to engage the NNPC and discuss a way forward so that we can be able to resolve the issue that is outstanding, most especially on the remittances to the Federation Account.

    “Yesterday (Wednesday) the seven-man committee sat with the NNPC group and today (yesterday) we have come to brief the President. One of the things is about how they are paying the Joint Venture batch four and we have seen that what is being remitted to the Federation Account to the entire people of Nigeria is lower and what is being paid for the Cash Call Joint Venture is higher than what is going to the Federation Account.

    “So, we are concerned about that and NEC is concerned about that.  So they told the committee under my leadership to engage with the NNPC to discuss a way forward,” he added.

    On the President’s response, he said: “The entire federation is being shortchanged by those activities. The NNPC since 2010, there were no payments of Joint Venture Cash Call when the oil was $110 per barrel up to when the President took over in 2015.

    “So why the Federation Account is always low is because they are paying dual, paying the existing and at the same time paying the arrears.

    “So we sat down with them to fine-tune how best we are going to get our partners to understand where we are more especially now the oil has started picking and the price is becoming moderately good and then we are slightly out of recession and we want to sustain that tempo.”

    Others at the meeting with the President are Governors Udom Emmanuel (Akwa Ibom State) (PDP), Dave Umahi, Ebonyi State (PDP), Atiku Bagudu, Kebbi State (APC) and Nasir El-Rufai, Kaduna State (APC).

  • PGIB passes 3rd reading at House of Reps

    PGIB passes 3rd reading at House of Reps

    A Bill for an Act to Provide for the Governance and Institutional Framework for the Petroleum Industry and for Related Matters on Thursday, passed third reading at the House of Representatives.

    The Bill was presented to the “Committee of the Whole’’ at plenary after a public hearing conducted on it in the last quarter of 2017.

    It seeks to establish a fiscal framework that will further encourage investment in the oil industry.

    The bill also seeks to unbundle the Nigerian National Petroleum Corporation (NNPC) into components, including Nigerian Petroleum Regulatory Commission, Petroleum Equalisation Fund and Nigerian Petroleum Management Company.

    The bill was transmitted from the Senate to the House of Representatives for second reading in June, 2017.

    At the second reading, Rep. Tahir Monguno (Borno-APC) had said that “unbundling the NNPC into units was in line with international best practices and would ensure transparency in the conduct of businesses in the industry’’.

    After the Clerk of the House, Mr Abdulkadir Adamu, read the short title of the bill at Thursday’s plenary, the Speaker, Mr Yakubu Dogara, ruled that the bill was read and had passed third reading.

    NAN

  • End petrol scarcity queues in 7 days – Senate tells NNPC

    End petrol scarcity queues in 7 days – Senate tells NNPC

     The Senate on Thursday urged the Nigerian National Petroleum Corporation (NNPC) to, within seven days, end lingering scarcity of petrol and clear queues in filling stations across the country.

    This followed a unanimous adoption of report of the Committee on Petroleum Resources (Downstream) on the fuel crisis in the country, at plenary.

    In the report presented by its Chairman, Sen. Kabiru Marafa, the committee recommended that NNPC should be given seven days ultimatum to end long queues in fuel stations in the country.

    The committee stressed the need for security agencies to ensure effective border patrol to check diversion of petroleum products to neighbouring countries.

    It also recommended that the Department for Petroleum Resources (DPR) should double efforts to enforce compliance with government’s regulated pump price of petroleum products.

    “During our recess, the committee moved around some cities, including Abuja and Lagos, to ascertain the situation on ground.

    “When we thought that we were making progress, we just realised that the queues were resurfacing in fuel stations.

    “We also engaged with the NNPC and other stakeholders and we were informed that there were challenges of supply coupled with massive smuggling of petroleum products to neighbouring countries for higher prices.

    “Also, there is the problem of marketers selling above approved pump price,’’ the report stated.
    In his remarks, President of the Senate, Dr Bukola Saraki, urged NNPC to ensure compliance with the resolution and endeavour to end the queues within seven days.

    NAN

  • National Assembly to NNPC: end fuel queues in 7 days,

    National Assembly to NNPC: end fuel queues in 7 days,

    A JOINT Committee of the Senate and House of Representatives on Petroleum Resources yesterday directed the Nigerian National Petroleum Corporation (NNPC) to end the lingering fuel scarcity within seven days.

    The committee also asked the Nigeria Customs Service and other security agencies, especially those at the borders, to halt the alleged diversion of fuel to neighbouring countries.

    The Chairman of the Senate Committee on Petroleum Resources (Downstream), Kabiru Marafa, gave the ultimatum after a closed door meeting.

    The meeting was preceded by another meeting with the Group Managing Director of the NNPC, Maikanti Baru, and other officials of NNPC.

    The lawmakers demanded explanations from the NNPC on the lingering shortage and the return of the queues.

    Senator Marafa was said to have described the situation as embarrassing and acknowledged that though NNPC tried  to end the shortage during the yuletide, the return of the queues in Lagos and Abuja showed that the problem was not completely over.

    Marafa was said to have insisted: “This situation has lingered for too long. The public are suffering and when they are suffering, we cannot sit and say all is well.

    “At a point, you told us the problem has been solved; we also saw that the queues disappeared for some time, but unfortunately, they have returned.

    “You even went round stations, monitoring the situation, but you have been unable to resolve the issue.  In any situation, when your best is not good enough, it is very bad and most unfortunate.”

    He told the NNPC to brief the committee on the reasons for the resurging long queues; what it had been doing to resolve the challenge and how long it would take for the queues to disappear completely.

     

     

     

  • End fuel queues in seven days, NASS orders NNPC

    End fuel queues in seven days, NASS orders NNPC

    NNPC scarcity and queues at filling stations within seven days.

    The committee also asked the Nigeria Customs Service and other security agencies especially those at the borders to halt the alleged diversion of fuel tankers from Nigeria to neighbouring countries.

    Chairman Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa gave the ultimatum after a closed door meeting of members of the committee.

    The committee meeting was preceded by another meeting with the Group Managing Director of the NNPC, Engr. Maikanti Baru and other top officials of the oil corporation.

    The lawmakers were said to have demanded explanations from the NNPC on why the fuel shortage had continued to linger with queues returning to major towns and cities across Nigeria.

    Marafa was said to have described the situation as embarrassing and acknowledged that though, NNPC made attempts to end the fuel shortage during the Christmas, the return of the queues in Lagos and Abuja was an indication that the problem was not completely over.

    Marafa was said to have insisted that “This situation has lingered for too long. Members of the public are suffering and when they are suffering, we cannot sit down, fold out hands and say all is well.

    “At a point, you told us the problem has been solved; we also saw that the fuel queues disappeared for some time, but unfortunately the queues have returned. You were even gojng from station to station monitoring the situation but you have not been able to resolve the issue once and for all. In any situation, when your best is not good enough, it is very bad and most unfortunate.”

    He told the NNPC to address the committee on the reasons for the resurging long queues at various filling stations; what the NNPC had been doing to resolve the challenge and how long it would take before the queues could disappear completely

    In a slide presentation, Baru attributed the situation to the on going repair works on Apapa Wharf road and the blockage of the road by some accidents vehicles, saying these created challenges along the route and disrupted the free movement of fuel trucks from the fuel depots to other parts of Lagos. The NNPC boss also blamed the current fuel crisis on the breakdown of the Jebba/Mokwa road in Kwara State as well as the crash-landing of a vessel conveying PMS along the Escravis/Warri/Oghara route. According to Baru, these two incidents also contributed to slowing down the pace of distribution of available petroleum products to different parts of the country.

    in addition, Baru disclosed that the NNPC was still bugged down by the challenges of product diversion and smuggling of same across the borders .According to him, the price of petrol in neighbouring countries such as Cameroon, Chad, Niger, Benin and Ghana were at least double the price of the product in Nigeria. He explained that this price differential has made the smuggling of the product very attractive.

    Baru however, said the NNPC will continue to tackle the fuel shortage by injecting an average of 60million litres of petrol into the market on a daily basis.

    In spite of these explanations, many members of the committee expressed dissatisfaction with the situation, observing that the NNPC was still working around the symptoms of the fuel crisis and building all its solutions on fuel importation rather than making the nation’s refineries to work to ensure product availability all the year round. The committee therefore resolved that the NNPC must change the narrative on the crisis and end the queues I seven days without excuses.

  •  Residents urge FG to enforce official pump price at filling stations

     Residents urge FG to enforce official pump price at filling stations

    Some residents of Port Harcourt have urged the government to ensure its agencies regulating the sale of petroleum products stopped filling stations from selling above the approved pump price.

    The residents made the call when they spoke with the Reporter on Wednesday in Port Harcourt against the backdrop of the products’ scarcity.

    They decried the sale of Premium Motor Spirit (PMS) popularly known as petrol at N220 per litre instead of N143 or N145 by independent marketers in the state.

    A taxi driver, Mr Ifeanyi Umeh, accused the independent marketers of inflating the pump price, saying that they had become a problem in the oil retail sector.

    “Most of them have fuel but it is either they sell at N220 per litre or they hoard the fuel; it is not fair to most Nigerians.

    “For me, I buy from the marketers because of my business as a taxi driver and because there is no queue at their stations due to the high price.

    “After buying, I recoup my money by charging an increased fare due to the situation.

    “But if I am a private man, I would rather sleep at the filling station with approved pump price than buying at N220,’’ he told Reporter.

    A trader, Mr Tam Igbani, said that the government should stop the petroleum crisis in the country due to its negative effect on the masses.

    “Imagine paying N400 instead of the previous N200 from Obigbo to Mile 1 Park as transport fare for a commercial bus; it is not fair enough at all,” he said.

    A public servant, Mrs Nkem Azuka, said that she had stopped making large pot of soup because she could not afford petrol to power her electricity generator to preserve it.

    Read Also:Petrol pump   price hits N250 per litre

    “Since this month, I lost three pots of soup because the temperature has been high in the city and with the attendant high cost of fuel; I cannot afford to power my refrigerator.

    “We have not had power supply for about eight months now and we have relied on electricity generator.

    “But with the high cost of petrol, coupled with the payment of school fees and house rent, we decided to manage our poverty level,’’ Azuka said.

    Azuka, who said that they lived at Okporo road area, said that cooking soup everyday was not only uneconomical but stressful to her as well.

    She called on the government to alleviate the sufferings of the masses.

    A major petroleum dealer on Aba road, who spoke anonymously, accused independent marketers of being very greedy.

    He commended the Federal Government for not listening to the demands of the marketers and said that with time, they would behave themselves.

    According to him, they are selling at high price because some Nigerians patronised them, if not, hunger would have forced them to sell at the normal price.

    “As far as I am concerned, the independent marketers are very selfish and aim at adding to the sufferings of Nigerians; Nigerians should ignore them.

    “We will not hoard petrol and will continue to sell at the officially approved pump price,’’ he said.

    The Reporter reports that long queues are seen at major marketers and the NNPC Mega Filling Stations, resulting in increased transport fares by about 100 per cent.

    NAN

  • NNPC in fresh corruption scandal

    NNPC in fresh corruption scandal

    The Senator representing Kogi West, Dino Melaye, yesterday accused the Nigerian National Petroleum Corporation (NNPC) of involvement in a fresh multi-million dollar corruption.

    Melaye, at plenary yesterday, claimed that NNPC is involved in a “monumental corruption” which the Senate should look into.

    He noted that the NNPC allegedly registered a company by the name Brass NLG.

    The firm, he said, was jointly owned by investors from Italy, Belgium, France, among others.

    Melaye said contrary to statutory provisions that the account of the company be domiciled in the Central Bank of Nigeria (CBN), NNPC and its partners, instead, opened an account with a commercial bank.

    He noted that the account has no Bank Verification Number (BVN).

    He claimed that money running into millions of dollars have been withdrawn from the account.

    Melaye said: “While some individuals and government appointees would continue to steal, we have decided to continue to expose corruption in public life. This morning (yesterday), I draw the attention of the Nigerian Senate, a suspected colossal, monumental corruption in NNPC.

    “Mr. President, a company was registered with the name Brass NLG limited with the Federal Government having controlling shares and we have some Italians, Belgians, French people who are shareholders with the Federal Government in controlling shares of about 50 per cent.

    “It is known fact that once you have a joint venture, the account of such joint venture should be domiciled with the Central Bank of Nigeria. But in this case, that was not what happened.

    “This account has no BVN and there have been periodic withdrawals. The last withdrawal from that account was to the tune of $4 million. As I speak to you, the balance of that account as at today is $137 million.”

    Senate President Bukola Saraki sought the approval of the Senate to allow Melaye to bring a proper motion.

    When the motion was put to a voice vote, the senators voted in the affirmative.

     

  • Sell at N145 or lose your petrol, DPR warns Anambra marketers

    Sell at N145 or lose your petrol, DPR warns Anambra marketers

    The Department of Petroleum Resources ( DPR ) has warned petrol marketers within its Enugu Zone to comply with N145 pump price of Premium Motor Spirit (PMS) or have their products dispensed to customers free.

    Mr Unyime Akpan of Health, Safety and Environment Department, DPR Enugu Office, gave the warning in Awka when he led an enforcement team to Anambra on Tuesday.

    Akpan said the team sealed one filing station for allegedly refusing to revert and enforced the pump price sale of petrol in nine other stations on Atani road in Ogbaru and some parts of Idemili North Local Government Areas.

    He expressed regret that some marketers had remained defiant, in spite of DPR’s efforts to ensure compliance, noting that the DPR might apply more stringent punishment by dispensing products of defaulting marketers to customers for free.

    READ ALSO: More pains as fuel scarcity returns

    “Petrol price is controlled; stations are not supposed to sell above N145 per liter and if the cost of getting products suggests they cannot sell at that price, then they should leave out.

    “Marketers are the people encouraging the hike; if they are not gaining from it, then they leave out until the system returns to normal.

    “We may have to begin to dispense their products free because DPR also has the powers; if this price compliance sales proves ineffective, we may be left with no option than to give out their petrol, so that they can understand how serious we are,” he said.

    In a reaction, the Independent Petroleum Marketers Association of Nigeria ( IPMAN ) absolved its members of any complicity in the hike of petrol price and blamed it on scarcity.

    Chief Ikechukwu Nwankwo, Chairman of IPMAN, Enugu Depot, in charge of Anambra, Ebonyi and Enugu states, urged DPR to stop the clampdown the members as sealing outlets and auctioning the products would not solve the problem.

    Nwankwo decried the petrol supply situation in the country and called for a more sustainable measure to normalise it.

    He said DPR’s action on IPMAN members, especially those under his zone, amounted to being punished for a problem they did not cause and could not solve.

    Nwankwo said that solution to the problem was massive and sufficient supply of petrol into the system by the NNPC.

    The IPMAN chairman said marketers were making efforts to make petrol available to customers as complete scarcity would amount to shutting the economy and holding the masses hostage.

    “I have spoken with my members here in Anambra, the situation of fuel supply is bad and it is our wish that we begin to get products like the way it used to be before.

    “IPMAN is not happy with the way the DPR is harassing us, closing our stations and auctioning our products. It is like they want to push us out of business because we cannot continue to suffer this loss.

    “NNPC is not allocating products to us, DPR should go and monitor the marketers that get allocation from NNPC; how can we buy product at N190 or N195 and DPR sells them off at N145.

    “We make extra effort to get product at tank depot so that economic activities can go on and we should not be punished for that; we may have to close our stations if they continue to pursue us,” he said.

    Newsmen reportes that pump price of petrol has dropped from between N240 and N250 to N200 per liter.

    NAN