The Nation Newspaper

Tag: NNPC

  • Nigeria’s GDP grows by 1.40 % in Q3 – NBS

    Nigeria’s GDP grows by 1.40 % in Q3 – NBS

    The National Bureau of Statistics ( NBS ) says the nation’s Gross Domestic Product ( GDP ) grew by 1.40 per cent year-on-year in real terms in the 3rd quarter.

    The NBS stated this in a GDP Report for Third Quarter 2017 released in Abuja on Monday.

    The bureau stated that the figure showed the second consecutive positive growth since the emergence of the economy from recession in second quarter.

    It stated that the growth was 3.74 per cent points higher than the rate recorded in the corresponding quarter of 2016, which was – 2.34 per cent.

    It stated that it was also higher by 0.68 per cent points from the rate recorded in the preceding quarter, which was revised to 0.72 per cent from 0.55 per cent.

    The second quarter was revised following revisions by NNPC to oil output and hence led to revisions to Oil GDP.

    Quarter on quarter, the bureau stated that the real GDP growth was 8.97 per cent.

    According to the report, the broad classification into the oil and non-oil sectors will give a clearer depiction of the Nigerian economy.

    In the period under review, the report stated that oil production was estimated at 2.03 million barrels per day (mbpd) on average.

    It stated it was 0.15 million barrels higher than the revised daily average production recorded in the second quarter of 2017 (revised from 1.84 mbpd to 1.87 mbpd).

    It further noted that oil production during the quarter was higher by 0.42 million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.61 mbpd.

    Meanwhile, the report stated that the non-oil sector grew by –0.76 per cent in real terms during the reference quarter.

    It stated that the figure was lower by -0.79 per cent point compared to the rate recorded same quarter, 2016 and -1.20 per cent point lower than in the second quarter.

    The non-oil sector, the report stated was driven in the quarter under review mainly by Agriculture (Crop), other services and Electricity, gas, steam and air conditioning supply.

    In real terms, the report stated that the sector contributed 89.96 per cent to the nation’s GDP.

    It, however, stated that the figure was lower than the share recorded in the third quarter of 2016 (91.91 per cent) and in the second quarter of 2017, which was 90.96 per cent.

    NAN

  • NNPC, Chevron seal $1.7b deal to raise oil, gas production

    NNPC, Chevron seal $1.7b deal to raise oil, gas production

    Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited (CNL) have signed the second and final phase of an Alternative Financing Agreement that will increase crude oil production by about 39,000 barrels per day.

    The agreement, which was signed in London at the weekend, is also expected to achieve an incremental peak production of about 283 million standard cubic feet per day (MMSCFD) of gas.

    NNPC Group Managing Director Dr. Maikanti Baru, who signed on behalf of his corporation, said the increment to be achieved by the agreement would spread “over the remaining life of the asset (until 2045)”.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a statement yesterday, said the project, which is about 92 per cent completed, will cost about $1.7 billion, with $780 million expected to be funded by a third-party.

    The project will produce natural gas liquids and condensate extracted from the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta.

    Baru described the deal as a step in the right direction, which would grow the nation’s daily production and support the Federal Government’s strategic domestic gas-to-power aspirations, while aligning with NNPC’s 12 Business Focus Areas (BUFAs).

    He said the project would also include the completion of the Sonam non-associated gas (“NAG”) well platform and Sonam living quarters platform; drilling of seven wells in the Sonam field and the Okan 30E NAG well; as well as the completion of the 20″ x 32Km Sonam pipeline and Okan pig receiver platform and development of the associated facilities.

    “As we speak now, the facilities are 100 per cent completed while wells are 40 per cent executed,” Baru stated.

    “In carrying out the project, the NNPC/CNL JV adopted a two-staged financing approach. Stage 1 which provided $400 million sourced from Nigerian commercial banks (NCBs) achieved financial close on 1st August 2017, Stage 2, (signed today), is set to provide $380mn from international commercial banks (ICBs).

    “Out of the US$780mn total financing for both stages, Chevron’s co-lending totals US$312mn while NNPC’s portion of the total facility stands at US$468mn,” the statement said.

    Baru explained that it was aimed at plugging NNPC’s shortfall in funding JV cash call obligations, including settlement of pre-2016 cash call arrears.

    “It will also enable full funding of NNPC’s JV obligations to restore investors’ confidence and stimulate further Foreign Direct Investments (FDIs) as we are beginning to witness,” he noted.

  • NNPC: crude-for-product arrangement on course

    NNPC: crude-for-product arrangement on course

    The Nigerian National Petroleum Corporation (NNPC) has said it will go ahead with its crude-for-product plans.

    Its Group Public Affairs Manager, Ndu Ugbamadu, in an interview with The Nation at the weekend, said Federal Government has never contemplated dropping the idea or substituting it with another as of efforts to make fuel available in the country.

    He said the delay in fast-tracking the growth of the initiative does not mean that the government has abandoned the idea.

    He said the Federal Government through NNPC, is in talks with prospective bidders for crude locally and internationally in order to ensure that the scheme enjoy a seamless run.

    Ugbamadu said: ‘’To underscore the fact that the crude-for-fuel arrangement is on-going, the government recently ran a programme on the national television station, through which stakeholders in the oil and gas value chain engaged in cross-fertilisatiion of ideas on the issue and further provided solutions to difficulties or bottlenecks the government might face in the course of implementing the scheme.

    ‘’The Direct-Sale Direct-Purchase Import model, through which the government planned to get fuel proportionate to the crude supplied to the refiners abroad is broad, and made of processes.

    “The fact that the process is long, made the government to be careful about its implementation. The programme is still in place, and whenever the government is through with its plans on the issue, it would definitely inform Nigerians about it.”

  • Buhari, Baru lauded over oil exploration in Chad Basin

    Buhari, Baru lauded over oil exploration in Chad Basin

    President Muhammadu Buhari and Group Managing Director, Nigeria National Petroleum Corporation, Maikanti Baru, Thursday received commendation for oil exploration drive in the Chad Basin.

    A group, PMB’s Oil and Gas Progress gave the commendation after its annual meeting in Abuja.

    A statement by the coordinator of the group, Mohammed Abdullahi, said President Buhari and NNPC GMD has won the heart of majority of Nigerians for their political will to initiate and encourage oil exploration in the northern part of the country.

    It accused past governments in the country of paying lip service to oil exploration in the north.

    It expressed hope that with the commitment of the President and the zeal of the NNPC GMD, some states in the north will soon assume oil producing status.

    The group noted that the commitment of President Buhari administration toward the discovery of oil in the northern part of the country would go a long way to douse tension in the country and ensure economic stability in the north.

    It recalled that the GMD had visited some states in the north, including Nasarawa, Sokoto, Bauchi, Yobe, Katsina, among others, with a view to commencing oil exploration in the areas for the purpose of generating more revenue for the country.

    It also recalled that the GMD NNPC had declared his readiness to grow the country’s crude oil reserves and increasing daily national production with a view to boosting the nation’s revenue generation.

    The group noted that the GMD had expressed this desire during the flag-off ceremonies of the NNPC/First E&P Oil Mining Leases (OMLs) 83/85 partnership for marine seismic data acquisition in Lagos.

    It said that Baru while performing the flag-off ceremony aboard Marine Vessel BGP Prospector offshore Lagos, declared that the project would boost NNPC’s drive towards enhancing the nation’s abundant hydrocarbon deposits.

    The development, Baru added, also reinforced the Federal Government’s commitment to further harness Nigeria’s numerous resources to enhance income streams and ultimately boost the nation’s economic prosperity.

     “Without doubt, this development resonates perfectly with NNPC’s commitment to growing the nation’s reserves and increase production, as enshrined in our corporate vision of 12 Business Focus Areas (12 BUFA),” Baru was quoted to have said. 

  • TSA: Reps may recover $401m unremitted revenues

    TSA: Reps may recover $401m unremitted revenues

    Over $401 million unpaid revenues is to be recovered by the Ad-hoc Committee set up by the House of Reps probing remittances from the Treasury Single Accounts (TSA).

    The committee headed by Hon. Abubakar Nuhu said it has set the machinery in motion to recover $50 million and $30 million offshore revenue accrued to Nigerian National Petroleum Corporation (NNPC) from UBA which dated back to 2005 and 2008 as well as interests accrued to the principal capital of $123,988.54 and $1.9 million.

    Revenue collected by Intel on behalf of Nigerian Ports Authority (NPA) worth $300 million since November 2016 was another aspect of the outstanding revenue.

    The Economic and Financial Crimes Commission (EFCC), the committee said, is to be invited over the sum of 6 million Euros NPA’s cargo tracking service seized and transferred to its account since 2015.

    Hadiza Bala Usman, NPA Managing Director who spoke on the crisis caused by the unremitted revenues collected by Intels for Nigerian Ports Authority (NPA), said that Heritage Bank, is owing $21.3 million while First City Monument Bank is owing 6 million Euros.

    The Central Bank of Nigeria (CBN) and Accountant General of the Federation had intervened in the seized 6 million Euros fund she said.

    She added that the CBN, which offered to provide a guarantee for the fund, she said, is yet to effect the commitment despite many communication initiated by NPA over the past one year.

    According to her, the intervention became necessary to avoid the affected bank going distress, adding that the bank is also expected to pay interest accrued on the 6 million Euros.

    The recovery effort has been abortive despite the resolve of NPA to receive Naira equivalent of the 6 million Euros at CBN rate, the NPA boss said.

    The committee members, however, commended SystemSpecs for providing a credible platform for the Treasury Single Account (TSA) which has contributed to the successes records in blocking leakages and tackling corruption in the government-owned institutions

    John Obaro, Managing Director of SystemSpecs and ‘Deremi Atanda, SystemSpecs Executive Director while briefing the committee members on the Remita platform,  assured that the firm can easily reconcile all the accounts.

    The Remita platform has financial accounting functions and is accessible to relevant officials of MDAs whose names were nominated, they said, and the Auditor General has the responsibility of reviewing the accounts.

  • Delta state wins NNPC national quiz

    Delta state wins NNPC national quiz

    Delta state, on Tuesday, won the 2017 edition of the Nigerian National Petroleum Corporation (NNPC), national quiz competition.

    Preliminary stages of the competition were held in all the 774 local government areas and later moved to states and regional levels.

    At the final stage,  Mr. Isioma Nelson Ifeanyichukwu of Federal Government College, Warri, Delta state, defeated 17 other finalists representing 17 states of the federation.

    Details shortly…

  • NNPC, Chevron hailed for projects

    The Egbema and Gbaramatu communities in Delta yesterday hailed the NNPC and Chevron for the N278.4 million projects executed in the area by the companies.

    Mr Jude Ukori, chairman of Egbema and Gbaramatu Communities Development Foundation, told News Agency of Nigeria (NAN) in Asaba, that the projects, inaugurated last week included the concrete jetty/waiting shed and walkway in Azama Zion community.

    He said others were renovation of Egbema Heritage Guest House and staff quarters at Opuede community as well as construction of Benikrukru road.

    The chairman also listed the laboratory block at Model Secondary School, Kokodiagbene and the 0.9 kilometre road at Kenyangbene.

    Ukori called on  governments to develop the communities, saying they had suffered adverse effects from oil and gas exploration.

    He assured the people that the foundation would continue to attract more developmental projects to the area.

    The chairman said the foundation was set up to complement efforts of government in developing the Niger Delta.

  • NNPC sees commercial oil find in inland basins

    NNPC sees commercial oil find in inland basins

    The Nigerian National Petroleum Corporation (NNPC) has expressed confidence that the aggressive exploration of the inland basins being driven by the corporation would soon yield success with hydrocarbon finds in commercial quantity.

    Its Group Managing Director, Dr. Maikanti Baru, expressed the hope when he received a delegation of the Nigerian Association of Petroleum Explorationists (NAPE) executives led by its President, Mr. Abidun Adesanya, in Abuja.

    Baru said based on preliminary results from the exploration activities in the inland basins so far, especially the Benue Trough, there was a strong indication that commercial quantity oil and gas finds would soon be made.

    He said almost 400 square kilometer (400km²) of 3D seismic data had been acquired in the part of the Benue Trough that was earlier explored by SNEPCO and that similar work would be extended to areas previously explored by Chevron and Total.

    “We are targeting these areas because we have seen that some of what they have done has some prospects, it is only that they did not drill deep enough. They also did not target the areas we believe, from the review of the seismic data, would have culminated into a find.

    “So, we are reinvigorating that and soon we are going to start drilling some of the leads that we have seen to ascertain what prospects there are. And as we have pointed out, there is an indication that we could find some hydrocarbon, we believe that in the nearest future hydrocarbon will be found in commercial quantity,” Baru said.

  • 34 firms bid for NNPC security services

    The Nigerian National Petroleum Corporation (NNPC), yesterday said 34 firms have put forward bids for security services out of the 54 companies that were invited for the jobs through selective tendering.

    It said as part of efforts to consolidate on the successes recorded in the steady supply and distribution of petroleum products across the country, the Corporation has mapped out strategies to boost security around its depots and pump stations to ensure they remain functional.

    Managing Director of the Nigerian Pipeline and Storage Company (NPSC), Luke Anele, stated this during a bid opening exercise for the selection of firms to provide security services at the company’s depots and pump stations across the country.

    Represented by the NPSC’s Executive Director in charge of Pipelines, Mr. Danladi Ahmed, the MD stated that the NPSC is desirous of engaging reputable and competent security firms to safeguard its critical assets to ensure unimpeded operations and efficient service delivery.

    Amelie, according to the Group General Manager, Group Public Affairs Division of the corporation, Ndu Ughamadu in a statement yesterday, said that “This particular exercise avails us the opportunity to identify competitive offers from companies that are competent and ready to secure our assets such as depots and pump stations at competitive rates. The NPSC assets are wide spread nationwide, which means security is important, if you have anything of value, you must provide security to safeguard it.”

  • NNPC again!

    •Its frenetic search for oil and retention of refineries are wrong-headed

    TWO most recent developments within the Nigerian National Petroleum Corporation (NNPC) would again serve to remind of how far the corporation is from getting its bearing, or even in understanding its rationale as a service–oriented commercial entity.

    The first is the frenetic pace of exploratory activities launched by the corporation in selected inland basins. Two weeks ago, newspapers reported the group managing director of the corporation, Dr Maikanti Baru, as telling the visiting Governor of Yobe State, Ibrahim Geidam, that modalities were on to open up the basins of Niger Delta, Anambra, Chad, Benue Ttrough, Benin, Sokoto and Bida to prospective investors as part of the corporation’s efforts to shore up the nation’s reserve base.

    While informing his visitor that preliminary exploratory activities had indicated some signs of hydrocarbon in eastern Yobe of the Chad Basin, he had reportedly enthused: “We are on target and we are looking at the prospect of the whole basins of Niger Delta, Chad, Anambra, Benue Trough, Benin, Sokoto and Bida. We are focused on delivering on these basins in line with our mandate”.

    Earlier last month, the same Dr. Baru had on a visit to Sokoto told the governor, Aminu Tambuwal, that the corporation had extended the search for crude oil to the Sokoto Inland Sedimentary Basin. He told his host that in addition to procuring aeromagnetic data from the Nigerian Geophysical Survey, the corporation had awarded contract for the mapping and procurement of apt samples to further the understanding of the area. NNPC’s subsidiary – the Integrated Data Services Limited, IDSL, he said, had been contracted to carry out various geochemistry investigations to boost the gathering and integration of all relevant data ahead of the planned procurement of seismic 2D data position which would in turn determine various prospects.

    More than half-century of commercial oil exploration, there is a lot to be said of the latest obsession not just to find oil but to ensure it flows in commercial quantities in the so-called inland basins. Much as we will agree to the boost that such a find will engender to the nation’s reserves as indeed its revenue in particular, what we cannot discountenance is the open-ended approach given the quantum of public funds being expended by the corporation on what is increasingly turning to be a voyage to nowhere. For an oil corporation whose activities are shrouded in utmost secrecy, the quest naturally, starts with the question of how much it is costing the treasury, more so at a time of global shifts to alternative energy sources.

    The other related development is the shutdown of Kaduna and Warri refineries, due to what officials attribute to increase in their operation costs and maintenance interventions. Both, reportedly down since July are yet to resume production. The 125,000 barrels per day (bpd) Warri refinery, is said to have resumed production in January only to have its operations halted again in March due to a power problem. Whereas the quantum of funds pumped into the Turn Around Maintenance under the Buhari administration is yet unknown, suffice it to say that the corporation  in its latest operations report for July reportedly posted N11.87 billion loss which it attributed to the downtime and ”unimpressive performance of the refineries.”

    On both quests, the suggestion is that the corporation keeps some piggy bank of sorts whose funds are not only inexhaustible but are available for any and every purpose under the sun. It serves to explain why politics more often than not, trumps rationality even when issues are strictly of geo-scientific and commercial nature.

    It should not be so.

    For us as a newspaper, the issue of the refineries would appear long settled: the Federal Government has no business spending a dime of public funds further on their rehabilitation. They should be sold to private investors as soon as possible. On the issue of inland basins, the quest shouldn’t be driven by the whims of NNPC but by proven seismic data.  Clearly, if the potential of the basins are truly what the NNPC says they are, getting operators with requisite technology and know-how to partner with under a long term cost-recovery arrangement should not be a problem.