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Tag: NNPC

  • More trouble as NNPC’s 25m-litre tank packs up

    More trouble as NNPC’s 25m-litre tank packs up

    THERE are fears that marketers may not be able to lift fuel at the Ejigbo Depot in Lagos State as five of its storage facilities have stopped working.

    It was gathered that five facilities at the depot were not working, a development, which has made it difficult for the Depot to store fuel for onward distribution to marketers, who came to load petroleum products.

    The source said each of the facilities has capacity to store five million litres of fuel implying that the five facilities can store 25million litres of fuel.

    The issue, it was learnt, has hindered the capacity of the depot to serve marketers in Lagos and beyond.

    This happens as the country is just coming out of one of its worst fuel scarcity, which grounded economic activities and further made it impossible for people to move around.

    The Nation during a visit to the depot confirmed that four of the facilities are for storing premium motor spirit (PMS) while the fifth stores diesel. The issue has slowed down activities as marketers spend hours before loading their trucks. Some sections of the facilities were overgrown with weeds due to several years of neglect.

    A member of the Independent Petroleum Marketers Association of Nigeria (IPMAN), who begged for anonymity, said each tank was built to accommodate five million litres, adding that they were constructed to support availability of fuel during acute shortage.

    He said the depot has been relying on few, but smaller tanks to take delivery of fuel supply from the Nigerian National Petroleum Corporation (NNPC).

    He said: “Each of the facilities has a capacity for five million litres. This translates to 25 million litres. The dysfunctional state of the tanks poses threat to the ability of the depot to keep enough fuel in its reservoir. The areas, which serve as the cover or lid of the facilities were broken, so also the walls of the facilities. This has made it difficult for the management of the depot to store fuel in them. The problem is yet to be rectified despite the operators call for the attention of the management of NNPC to the problem.”

    Besides, the Ejigbo Satellite depot cannot meet the yearnings of marketers in Lagos as it cannot provide fuel for marketers that are unable to be accommodated by the Apapa depot.”

    The source said a contractor was hired by the NNPC two years ago to repair the facilities. He, however, added that the contractor has since stopped work. He urged the Federal Government to proffer solution to fuel crisis by ensuring proper maintenance of its depots.

    He added that the Ejigbo depot has assisted in the supply of fuel to strategic areas, such as Ibadan and Ilorin in Oyo and Kwara states respectively since the NNPC’s depots in those states stopped operating many years ago.

    He said the depot is strategically located to serve marketers in the Southwest, adding that the issue has disrupted the supply of fuel in recent times.

    Efforts to get the Group General Manager, Public Affairs Division of the NNPC, Mr. Ndu Ughamadu, to comment on the issue proved abortive as neither calls and text messages sent to him were replied.

  • 254 firms bid to lift Nigerian crude

    254 firms bid to lift Nigerian crude

    A total of 254 indigenous and foreign owned entities submitted bids for the sale and purchase of the Federal Government equity crude under the 2018/2019 crude oil term contracts.

    The bid was witnessed by officials of the Department of Petroleum Resources (DPR), Nigeria Extractive Industries Transparency Initiative (NEITI), Nigerian Content Development and Monitoring Board (NCDMB), as well as representatives of the civil society.

    A statement by General Manager of NNPC Public Affairs Division, Ndu Ughamadu said eventual winners are expected to be off-takers licensed to  trade on the Nigeria’s equity crude for a 12 months period.

    Nigeria’s crude oil allocation is done once every month to only successful companies.

    Addressing the prospecting off-takers shortly before the commencement of the bid exercise, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, said that the exercise was designed to promote greater participation of Nigerian enterprise, while preserving World-class standards.

    He assured that the best practices would be adopted in the selection of bidders, as he promised fairness and just treatment in the process.

    “I wish to remind the general public that the Crude Oil Term Contract is not a Procurement Contract but a process of selecting partners for the sale and procurement of NNPC Equity crude oil volumes,’’ Dr. Baru clarified during the bid opening session.

    Malam Mele Kyari, Group General Manager, Crude Oil Marketing Division, said some of the potential off-takers must be able to fulfill a long list of stringent requirements which include minimum annual turnover of $500 million for 2016 and Net worth of $250 million for 2016.

    He said apart from possession of 2015 & 2016 audited accounts, aspiring off-takers must demonstrate the ability to establish an irrevocable Letter of Credit (LC) subject to contract terms.

    On the marketability of Nigeria’s crude in the international market, Malam Kyari said Europe remained the major destination of Nigerian crude grades, accounting for 36.59 per cent of the total sales, with Asia and the Far East receiving 28.43 per cent.

    He further said 16.57 per cent of Nigeria’s crude grades was exported to North America, 13.17 per cent to Africa, 2.84 per cent to South and Central America, while the rest of the world served as beneficiaries for the rest.

    He informed that the sustained reforms in the marketing and disposal of Nigeria’s equity crude had eliminated the ugly incidents of ‘briefcase’ companies as witnessed in the past.

     

  • Oil production hits 2.5mb/d

    Oil production hits 2.5mb/d

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru on Tuesday that crude oil production was 1.8 million barrel per day without condensate and 2.5million per day with condensate.

    He dropped the hint to reporters after chairing the opening ceremony of the 2018-2019 crude oil term contract in Abuja.

    He had opened 254 bids from indigenous and international companies jostling to lift the Nigerian’s crude in the 2018/2019 term contract.

    According to him, the winners will have to lift 14 cargoes of crude in the term of one year.

    He explained that “the crude oil term contract is not a procurement contract but a process of selecting partners for the sale and procurement of NNPC equity crude oil volumes.”

    Asked when and how many winners would emerge, the NNPC boss said that the evaluation of the bids would take about four weeks and thereafter there will be the request for approval. 

    He, however, said that he did not know how many winners that would emerge from the exercise stressing that “It depends on how good the submissions are.”

     “After evaluation which will take about three to four weeks, we will get the consent. Once we get the approval we will conclude it.

    “I wouldn’t know how many will emerge. It depends on how good the submissions are.”

    Baru explained that NNPC was taking steps to evaluate the submission in order to ascertain the credibility of the companies and their directors.

    According to him, the corporation wouldn’t want its crude to enter questionable hands. 

    The NNPC helmsman said that contrary to the perception that the United States of America has exited completely from the importation of Nigerian crude owing to its own Shale oil, the US last year imported 16.5% of the nation’s crude. 

    His words: “Contrary to people’s perception that because of the Shale oil has taken off most of the markets of Nigerian crude. 

    “That is the perception we have as about two years ago we had very low export to particularly to the US. But last year we had up to 16.5% of our crude going to North America.”

    The Group General Manager, Crude Oil Marketing Division, Mr. Mele Kyari in his presentation said that Europe still remains the highest importer of Nigerian crude, while Asia and the Pacific were next to them. 

    He rolled out requirements for qualifying the would be lifters, who have 30 days credit period. The companies, he said, must have a credit network of $250million and $500million turn over. 

    On crude production, Baru said that “As at today Tuesday, crude production without condensate we have gone up significantly today. We have about 1.8million barrels per day without condensate. If we add condensate we have made about 2.25million barrels per day. It is a significant improvement.”

    According to him, the Escravos gas pipeline that there was fire on Thursday last week, had come back on stream leading to a generation 3.100mw. 

    He dropped the hint that NNPC was partnering with key stakeholders to improve the overall security of oil production sites, crude oil export lines and other critical oil and gas infrastructure.

  • Days of fuel scarcity are over – NNPC

    Days of fuel scarcity are over – NNPC

    The Nigerian National Petroleum Corporation ( NNPC ) on Tuesday assured Nigerians that there would no longer be fuel scarcity which had caused unbearable queues for Nigerians.

    The Group Managing Director of the corporation, Dr Maikanti Baru said this in Abuja at the 2018/2019 crude oil term contract bid opening.

    According to him, the opening of bids is an indication of President Muhammadu Buhari’s drive for transparency and accountability in the conduct of government business.

    He condemned the recent fuel shortage, which lasted a month, describing the corporation’s downstream counterparts as ‘unpatriotic’.

    Baru warned those that would be selected after the bid against indulging in sharp practices.

    “I am happy that this problem has been dealt with and the few pockets of non-compliance have been tackled.

    “It was unfortunate that due to the behaviour of a few bad eggs, the Christmas was a pain. We hope you will never be part of this incident and we also hope this type of thing never happens in the future.

    “NNPC is determined that this year there will be no fuel shortage. Definitely we have seen the last of it,’’ Baru said.

    He said NNPC’s focus was to enhance production volume, while ensuring that the “best value is realised through competitive marketing of our crude grades to international refineries and graders’’.

    “In line with this aspiration, NNPC is collaborating with key stakeholders to improve the overall security of our production sites, crude export lines and other critical oil and gas infrastructure’’.

    He urged the bidders not to patronise fraudsters who promise off takers selection assistance.

    Read Also: NNPC doubles supply as scarcity bites harder

    Speaking with newsmen shortly after the bid ceremony, Baru said the evaluation would take three to four weeks, adding that 16 per cent of the crude was going to North America.

    Also speaking, Mr Mele Kyari, the Group General Manager, Crude Oil Marketing Division said “there would be no lobbying in lifting programmes’’.

    “It is fully automated. The customer knows where and when they get their lifting and this is unparalleled.’’

    Kyari said part of the procedure was that the companies selected must have a net worth of about 250 million dollars, turnover of 500 million dollars, letter of credit and years of experience.

    The News Agency of Nigeria ( NAN ) reports that 254 companies are bidding for the off take of Nigerian crude grades as against 224 in 2017.

    This round is the third call for bids under the present administration. ( NAN )

  • Fuel scarcity: Osun residents decry hike in transport fare

    Fuel scarcity: Osun residents decry hike in transport fare

    Residents of Osogbo, the Osun State capital and its environs have decried the hike in the price of intra transport fare in the state due to scarcity of the Premium Motor Spirit ( PMS ), also known as petrol .

    Some of the residents said on Tuesday in Osogbo said the hike in the transport fare was affecting their daily income.

    Mrs Yetunde Aderogba, a civil servant said due to the hike in the transport fare, she now spent more on transportation to work on a daily basis.

    Aderogba said that the `Korope’ (mini buses) and Okada riders have increased the transport fare by 30 to 40 per cent, adding that the increase was due to the fuel scarcity and hike price where fuel is available.

    Read also: Motorists, Commuters groan as fuel scarcity bites harder in Delta

    “Before now I use to pay N50 from my house to secretariat but now, I pay between N80 and N90.

    Similarly, Nike Adeyobo, a student of Federal Polytechnic, Ede, said she now pays more to transport herself from her house in Osogbo to the campus.

    Adeyobo said that she paid N150 as transport fare to school compared to the previous fare of N100.

    “This is unbearable because I now pay more on transportation; Government needs to do something urgent to address the situation.”

    Also, Mr Taiwo Samuel, an Okada rider, said until the pump price was reverted, the hire in transport fare will continue.

    Some of the Petrol Independent Marketers who spoke under the condition of anonymity said that selling fuel at N145 per litre was not profitable for them.

    “Until government does the needful, the price will remain like that. Selling at N145 now will result in a big loss to us because we are also lifting the fuel at a higher price”, they said.

    NAN visit to some of the filing stations revealed that majority of the filling station were selling at N180 per litre.

    Only few filling stations such as Bovas, Total and NNPC and few others were selling at the official price, with a very long queue.

    NAN

  • Fuel scarcity: Fix refineries now, NUPENG urges NNPC

    Fuel scarcity: Fix refineries now, NUPENG urges NNPC

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) yesterday called for the rehabilitation of the nation’s refineries to end the recurring fuel scarcity across the country.

    The South-West Chairman of the union, Tayo Aboyeji, who made the call in a chat with the News Agency of Nigeria, said it is disheartening to know that despite the fact that the nation is a major producer of crude oil, it cannot refine the product for its local consumption.

    He said it is ridiculous that for the past 15 years, the Nigerian National Petroleum Corporation (NNPC), has been spending billions of dollars on Turn Around Maintenance (TAM) of the refineries with nothing to show for it,” saying if all our four refineries were producing at their maximum output, the country would not be spending such huge sum on importation of refined product.

    Aboyeji said this was the right time for our refineries to work, adding that the Federal Government should as a matter of urgency fix the refineries at this moment.

    He urged the NNPC to increase product supply to the depots so as to reduce the current scarcity nationwide, saying it was not ripe at the moment for total deregulation of the sector and advised that government should reduce import duty and provide waiver to oil companies to enable them import the product.

    On allegations that certain petrol stations were selling products above the official pump price, Aboyeji said the Department of Petroleum Resources (DPR), should investigate properly before sealing such stations.

    He said: “To me, it is not all about the pump price, it is about where they are getting the product from and at what price.”

    The NUPENG chief said DPR should first of all verify the price at which the depot owners sell to petrol stations to know if these private depots are selling above the ex-depot price of N133.28.

    Aboyeji wondered that since DPR started sealing of petrol stations selling above official pump price, if it (DPR), has asked private depots how much they are selling to marketers?

    He said oil marketers are in business to make money, saying they cannot get petrol at higher price and sell to motorists at lower price.

    He said it is the responsibility of DPR to find out the source of where the marketers are getting the product before sealing the stations.

  • Electricity: Power sector recovers 1,143MW

    Electricity: Power sector recovers 1,143MW

    The Nigerian Electricity Supply Industry (NESI) on Monday recovered 1,143MW from the restoration of the Escravos-Lagos Pipeline (ELP).

    The line which came down last week as a result of a fire incident has been restored and gas supply to customers on the line including power generating companies resumed.

    The Nigerian National Petroleum Corporation (NNPC) which disclosed this on Monday said the repair work on the pipeline followed the directive by the Group Managing Director, Dr. Maikanti Baru, to carry out an assessment of the damage with a view to getting a prompt solution.

    The statement NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, issued in Abuja, recalled that a section of the ELP at Abakila in Ondo State blew up in flames on January 2, 2018 as a result of a bush fire.

    According to the statement, the incident affected gas supply to customers in Ondo, Ogun and Lagos States with a subsequent shutdown of a number of power plants.

    With the restoration of the ELP and resumption of gas supply, the affected power plants with a combined generating capacity of 1,143MW would resume power generation.

    The power plants include: Egbin Power Plant in Lagos State; Olorunshogo Power Plant, PEL Olorunshogo and Paras Power Plant in Ogun State; and Omotosho Power Plant in Ondo State.

    The 36-inch Escravos to Lagos Pipeline System (ELPS) is a natural gas pipeline built in 1989 to supply gas from Escravos in the Niger Delta to various consumption utilization areas.

    It supplies gas to power plants in the South-west and also feeds the West African Gas Pipeline System.

  • NNPC restores Escravos-Lagos pipeline, resumes gas supply

    NNPC restores Escravos-Lagos pipeline, resumes gas supply

    The Nigerian National Petroleum Corporation ( NNPC ) on Monday said the Escravos-Lagos Pipeline ( ELP ), which got burnt by a fire, had been restored.

    A statement in Abuja by the NNPC spokesman, Mr Ndu Ughamadu, said that gas supply to customers on the line, including power generating companies, had resumed.

    A section of the ELP at Abakila in Ondo State blew up in flames on January 2 due to bush fire.

    The incident affected gas supply to customers in Ondo, Ogun and Lagos states with subsequent shutdown of a number of power plants.

    ”With the restoration of the ELP and resumption of gas supply, the affected power plants, with a combined generating capacity of 1,143MW, would resume power generation.

    ”The plants include Egbin in Lagos State; Olorunshogo Power Plant, PEL Olorunshogo and Paras Power Plant in Ogun and Omotosho Plant in Ondo State.

    ”The 36-inch Escravos to Lagos Pipeline System ( ELPS ) is a natural gas pipeline built in 1989 to supply gas from Escravos in the Niger Delta to various consumption utilisation areas.

    It supplies gas to power plants in the South-West and feeds the West African Gas Pipeline System.

    NAN

  • Fuel scarcity: One storage facility functional at Ejigbo Depot, says IPMAN

    Fuel scarcity: One storage facility functional at Ejigbo Depot, says IPMAN

    The Independent Petroleum Marketers Association of Nigeria ( IPMAN ) has decried the situation whereby only one storage tank out of nine installed at the Ejigbo Depot was working.

    It appealed to the Nigerian National Petroleum Corporation ( NNPC ) to rehabilitate all the moribund storage facilities within the depots which made up the western zone to enhance effective distribution of petroleum products.

    Alhaji Ayo Alanamu, the Chairman, Ejigbo Satellites Depot of IPMAN, said on Monday that this would address the fuel distribution challenges in the zone.

    He said only one out of nine storage tanks in Ejigbo Depot, was currently working; adding that this was not sufficient for petroleum distribution.

    He said this had also contributed to the scarcity of petrol and the long queues of trucks awaiting loading at the depot.

    According to him, marketers hardly load 50 trucks from the depot due to the dilapidated state of the storage tanks there.

    Read also: IPMAN urges Fed Govt to invest more in modular refineries to end fuel scarcity

    “ We were loading between 15 trucks and 17 trucks daily before it was repaired.

    “That was not enough for marketers to distribute to their customers.

    “ We appeal to the Federal Government through the NNPC to revive all the damaged tanks so as to increase the fuel storage capacity to 200 trucks daily.

    “ Government should ensure effective repairs of all the dilapidated storage facilities within the western zone to beef-up storage and loading capacity to at least 1million trucks on daily basis.

    “This will address frequent fuel challenges in the country,’’ he said.

    The IPMAN boss said if depots had enough stocks, marketers would work 24-hours to ensure that the product gets to every nook and cranny of the states.

    Alanamu appealed to the government to revive the depots so that they could operate to work 24-hours daily and facilitate effective service delivery to reduce queues within the depots.

    He also appealed to government to allow marketers to import petrol and sell at the current prevailing market price.
    According to him, no marketers can import at N171 landing cost per litre and sell at N145 at their stations.

    NAN

  • No plan to increase fuel price – NNPC

    No plan to increase fuel price – NNPC

    The Nigerian National Petroleum Corporation, (NNPC) has once again said it has no plan to increase price of premium motor spirit, (PMS) otherwise known as petrol in country.

    NNPC in a statement by Ndu Ughamadu, Group General Manager Public Affairs Division, said the pump price of petrol remains N143 per litre in NNPC Retail outlets and N145 in other fuel stations, while maintaining PMS ex-depot price of N133.28k per litre to marketers.

    “In the last few weeks, the corporation has increased its daily truck-outs of PMS per day to ensure petrol sufficiency across the states of the federation” .
    “Motorists and other consumers of petroleum products are assured that NNPC has a robust sufficiency of petroleum products to cater for their daily consumption” .

    “Marketers are hereby cautioned against hoarding or diversion, as law enforcement agencies have been enjoined to deal appropriately with defaulters”.

    “Again, NNPC affirms that it has no intension, whatsoever, to execute any increase in the pump price of petrol, as such the price of PMS stands at N143 per litre in NNPC Retail outlets and N145 per litre in other fuel stations” .