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Tag: NNPC

  • NSC, NNPC, NEXIM Bank, others partner on truck park

    NSC, NNPC, NEXIM Bank, others partner on truck park

    The Nigerian Shippers Council (NSC) said, it is collaborating with the Nigerian National Petroleum Corporation (NNPC), NEXIM Bank and other investors to build world-class Truck Transit Park ( TTP) in Ogun State to boost the economy and generate more revenue for the government.

    Speaking with reporters at the old truk park in Ogere, along Lagos/Ibadan Epressway yesterday, its Executive Secretary, Mr Hassan Bello said the NSC would also collaborate and seek the support of the Ogun State government on the proposed park in the state.

    The construction of the park, Bello said, was part of federal government efforts in decongesting the ports access roads in Lagos and to facilitate quick cargo clearance.

    Bello who was in Ogun for on-the-spot assessment of the dilapidated trailer park  along the expressroad, said the project would be driven through Public Private Partnership (PPP) to achieve the desired results.

    He said: “This is just a trailer park. What we need is a TTP with hotels and hostels for accommodation purposes. The proposed park will have chain of restaurants and of cause petrol stations.

  • Crude oil production stands at 2.35m bpd – NNPC

    Crude oil production stands at 2.35m bpd – NNPC

    The Nigerian National Petroleum Corporation (NNPC) said on Monday the nation’s current crude oil production has risen to 2.35 million barrels per day (bpd).

    Its Group Managing Director (GMD), Dr. Maikanti Baru, disclosed this at the inauguration of the corporation’s reconstituted anti corruption committee in Abuja.

    He said: “In the upstream, we have also been making strides in the stability and security in the Niger-Delta and production is coming back steadily.

    “At one point, we have reached the level of almost 2.35 million barrels per day, including condensates, which accounts for about 400,000 barrels per day.”

    Baru said it was great that petroleum products supply in the country was being sustained.

    He attributed the steady supply to conscious plan by the management, with support from staff and other stakeholders in the industry.

    “I want to thank each member of staff and our clients involved in the supplies of petroleum products and other services in the country, for sustaining the supply of petroleum products across the country. The status quo has been restored.

    “We are in the period of ease. It is not too long ago in December, January and February, when NNPC was a sole importer of petroleum products in this country with the challenges associated with distribution and the capped price of N145 to a liter of petrol.

    “We got some ease when the international price went down and the importers decided to come back to import because they can make some margin. They have raised the importation level to about 30 per, “the NNPC GMD added.

  • Army special school to train Police, NSCDC

    Army special school to train Police, NSCDC

    The Nigerian Army Special Forces School in Buni Yadi, Yobe, will train “strike forces” which will be deployed in liberated communities in North-East, Defence Minister, Mansur Dan-Ali, has said.

    The personnel of group, according to him, will be drawn from the Nigerian Police, Nigerian Security and Civil Defence Corps (NSCDC) and other security agencies.

    The minister, who announced this on Sunday when he visited the school, said that the personnel would be trained under a pilot programme and that deployment would start with Bama town in Borno.

    He said that the arrangement would enable troops of Operation Lafiya Dole, to concentrate on the ongoing clearance operations to flush out the remnants of the terrorists.

    He addressed troops undergoing training in the school, and assured them that the Federal Government would provide necessary equipment that would enable them to flush out the terrorists in the zone.

    Dan-Ali said that the insurgents, who had been weakened, had resorted to ambushes, kidnapping and other sorts of criminality, hence the need to re-strategise the operation.

    He urged the troops to remain united and synergise with other security agencies in the fight against the terrorists.

    He advised them not allow the July 25 incident, when terrorists ambushed and killed some troops and NNPC and University of Maiduguri workers, to dampen their morale.

    The minister said that was at the school to see things for himself, after Acting President Yemi Osinbajo, directed the Service Chiefs, to relocate to the Command and Control Centre, to charge of operation.

    The minister commended the troops for the “good job” they were doing for the nation and participated in the firing exercise along with the Chief of Army Staff, Lt.-Gen. Tukur Buratai, Theatre Commander, Maj.-Gen. Ibrahim Attahiru.

    He used the opportunity to inspect 49 newly acquired combat vehicles, including Armoured Personnel Carrier and gun trucks for the school.

  • AuGF commends NNPC on transparency 

    AuGF commends NNPC on transparency 

    The gale of accountability and transparency pervading the operations of the Nigerian National Petroleum Corporation (NNPC), under the leadership of Dr. Maikanti Baru has received institutional endorsement with commendation from the Auditor General for the Federation, (AGF) Mr. Anthony Ayine.

    Leading a team of top management and auditors from the Office of the Auditor General for the Federation, (OAuGF) on a business visit to the NNPC Towers Abuja, the AGF said it had become imperative to acknowledge the demonstrable efforts and strides by the current NNPC Management in enshrining the virtue of probity, accountability and transparency in its operations and processes.

    The AuGF, according to the corporation in a statement on Friday, said: ‘’Let me at this juncture commend the Group Managing Director, (GMD) of NNPC, I note with delight that he assumed office in July last year but he has done quite  a number of things worthy of commendation…. Let me also note with delight that the information available to me is that the audited accounts of NNPC that were in arrears are now audited up to 31st December 2014.”

    Ayine noted that as the foremost accountability institution in the country, the OAuGF was not only delighted to note the significant changes in the Corporation but was further encouraged by the renewed assurance from the GMD of improved access to auditors from the office of the AGF during periodic checks on the books of the Corporation.

    He called for improved synergy between the OAuGF and the oil and gas industry especially in providing technical exposure and support for auditors on the beat.

    Responding, Dr. Baru said that transparency and accountability had become a way of life for management and staff of the Corporation noting that the era of unpublished or accumulated NNPC audit accounts had been confined to the history book.

    “This explains why we publish our operations and financial reports every month so that not only your office but the general public could follow the trail. I don’t think there is any government institution that has demonstrated this level of transparency,’’ Baru said.

    The GMD informed that the Corporation hopes to conclude on the 2015 audited account latest by the end of August 2017 while preparation of the 2016 audited account which began about a month ago would be concluded by the end of 2017.

    He said as an entity, the NNPC had a mandate to ensure that Nigeria reaped bountifully from the proceeds of its vast hydrocarbon resources and the Management is also willing at all times to adopt measures that would propel the realization of this noble objective.

  • NNPC eyes $16b from Shell, Chevron deals

    NNPC eyes $16b from Shell, Chevron deals

    Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London between the Nigerian National Petroleum Corporation (NNPC) and two of its JV partners: NNPC/Chevron Nigeria Limited (CNL) JV and NNPC/Shell Petroleum Development Company (SPDC) JV.

    The two projects are expected to generate incremental revenues of about $16billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilisation.

    The agreement with Chevron would see the development of the NNPC/CNL JV Sonam Project (Project Falcon), hitherto financed through cash calls, to incremental proven and probable oil/liquids reserves of 211million barrels and proven and probable gas reserves of 1.9 trillion cubic feet within in Oil Mining Licences (OMLs) 90 and 91.

    The project is expected to begin to bear fruits in next three and six months.

    The  Group Managing Director, NNPC, Dr. Maikanti Baru, said the project is envisaged to achieve an incremental peak production of about 39, 000 barrels per day of liquids and 283million standard cubic feet of gas per day (mmscf/d) of gas respectively over the life cycle of the asset.

    The JV partner, he said, had already spent $1.5billion representing 97 per cent of project completion costs, adding that the agreement would cover the remaining $780million to complete the project.

    Giving a breakdown of the expected funding requirements of the Sonam Project, Dr. Baru said $400million is to fund the development of seven wells in the Sonam field (OML 91), the Okan 30E Non-Associated Gas (NAG) well (OML 90), and associated facilities including completion of Sonam NAG Well Platform.

    He added that $380million would also be required to reimburse the JV partners for the 2016 portion of the funds committed to lenders that had been cashed and paid for.

    He said the Sonam Project alone, would increase government’s earnings to $7.3billion over its life.

    The agreement with SPDC, on the other hand, would facilitate the development of the NNPC/SPDC JV Project Santolina which comprise 156 development activities across 12 OMLs (OMLs 11, 17, 23, 25, 27, 28, 32, 35, 43, 45, 46 and 79) and 30 different fields in the Niger Delta.

    The GMD said the development of the Sonam Project would be done in two phases, with the first phase focusing on short term activities involving Oil and Gas Generation (STOGG) programme comprising 128 rigless activities and 10 workovers. The second phase would focus on medium term activities that would involve further development of EA/EJA fields by drilling 14 new well and three workover ones.

  • NNPC signs pacts with Shell, Chevron to increase revenue by $16b

    NNPC signs pacts with Shell, Chevron to increase revenue by $16b

    Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London on Monday between the Nigerian National Petroleum Corporation (NNPC) and two of its JV partners: NNPC/Chevron Nigeria Limited (CNL) JV and NNPC/Shell Petroleum Development Company (SPDC) JV.

    The two projects are expected to generate incremental revenues of about $16billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilization.

    The agreement with Chevron would see the development of the NNPC/CNL JV Sonam Project (Project Falcon), hitherto financed through cash calls, to incremental proven and probable oil/liquids reserves of 211million barrels and proven and probable gas reserves of 1.9 trillion cubic feet within in Oil Mining Licences (OMLs) 90 and 91.

    The project is expected to begin to bear fruits in next three and six months.

    Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, said the project is envisaged to achieve an incremental peak production of about 39, 000 barrels per day of liquids and 283million standard cubic feet of gas per day (mmscf/d) of gas respectively over the life cycle of the asset.

    The NNPC Group General Manager, Public Affairs Division, Mr Ndu Ughamadu made this disclosure in a statement on Thursday.

    The Joint Venture partner, he said, had already expended $1.5billion representing 97 per cent of project completion costs, adding that the agreement would cover the remaining $780million to complete the project’s scope.

    Providing a breakdown of the expected funding requirements of the Sonam Project, Dr. Baru said $400million is to fund the development of seven wells in the Sonam field (OML 91), the Okan 30E Non-Associated Gas (NAG) well (OML 90), and associated facilities including completion of Sonam NAG Well Platform.

    The GMD added that $380million would also be required to reimburse the JV partners for the 2016 portion of the funds committed to lenders that had been cashed and paid for.

    He stated that the Sonam Project alone, on fruition, would net the Federal Government cumulative incremental earnings of $7.3billion over the project’s life.

    The agreement with SPDC, on the other hand, would facilitate the development of the NNPC/SPDC JV Project Santolina which comprised of 156 development activities across 12 OMLs (OMLs 11, 17, 23, 25, 27, 28, 32, 35, 43, 45, 46 and 79) and 30 different fields in the Niger Delta.

    The GMD said the development of the Sonam Project would be carried out in two phases, with the first phase focused on short term activities involving Oil and Gas Generation (STOGG) programme comprising 128 rigless activities and 10 workovers, while the second phase would focus on medium term activities that would involve further development of EA/EJA fields by drilling 14 new well and three workover ones.

    He said the first phase of the project is estimated to deliver incremental liquid reserves of about 202.9 million barrels of oil and 161.8 billion cubic feet on Proven and Probable (2P) basis.

    The GMD put the total third-party financing for Project Santolina at $1billion, inclusive of financing cost of which, he said, co-lending amounted to $420mm with NNPC’s portion of $850million.

    He stated that Project Santolina would generate about $9billion of incremental revenue to the Federation Account over the project’s life cycle and a Net Profit Value (NPV) of $5.2billion over the loan life at 8 per cent discount rate.

    Baru explained that NNPC’s objectives in securing third-party financing for the two sets of projects aligned with government’s aspiration to increase reserves and crude oil and gas production as well as monetize the nation’s enormous gas resources.

    He emphasized that the financing option underscored the realization of one of the Corporation’s 12 Business Focus Areas (BUFAs) that is: Increasing crude oil and gas reserves and production to support government’s Seven Big Wins aspiration.

    In his presentation, Mr. Andy Brown, Shell Global Upstream Director, stated that the alternative funding arrangement was an innovative financing plan that would enable SPDC commence exploration activities hitherto stalled due to funding challenges.

    Mr. Jeffrey Ewing, Chairman and Managing Director of CNL, said Chevron Nigeria Limited was committed to supporting Nigeria’s aspirations of sustaining oil and gas production through innovative strategies as typified by the alternative financing arrangements over which agreement was executed.

    Similar sentiments were expressed by the consortium of banks involved in the project namely Access Bank, Standard Chartered Bank, Union Bank and United Bank for Africa, UBA and some foreign financial institutions.

  • NNPC, firm collaborate to boost oil production

    The Research & Development Division of the Nigerian National Petroleum Corporation(NNPC R&D) and Cypher Crescent Limited have sealed a strategic technical partnership to enhance oil and gas production using innovative technologies and optimised workflows.

    The deal is focused on petroleum engineering research and development, hydrocarbon fluid characterisation and production improvement through well and reservoir management (WRM) data democratisation.

    CypherCrescent is an indigenous petroleum engineering research, software development and asset management support company with a global reach.

    The partnership came on the heels of the application of SEPAL Software suite, a highly innovative end-to-end well and reservoir management (WRM) software in E&P companies for production enhancement.

    SEPAL is the first software in the global E&P industry, designed to integrate data, enhance engineering analyses and optimise workflows in five core WRM disciplines (Reservoir Engineering, Production Technology, Petrophysics, Production Geology and Asset Well Engineering).

    It enables E&P companies optimise production from existing assets by systemically identifying hidden intervention opportunities and improve on the success rates of well intervention activities. Also, with the robust data analytics capability of SEPAL, engineers can proactively manage well integrity challenges. SEPAL as an integrated software improves general asset management efficiency and therefore helps companies remain competitive, especially in times of dwindling oil prices. Reliant on its capability, the SEPAL software has been adopted as a solution, in the NNPC project for the classification of Nigeria’s natural gas liquids (NGLs) and gas condensates.

    In addition, the CypherCrescent-NNPC (R&D) partnership aims to achieve national technical capacity development through engineering research and delivery of value adding services to solve challenges in exploration & production (E&P) companies. It also aims to encourage increased local content participation in core upstream projects and subsequently, export technical expertise to the international E&P market space to boost foreign earnings.

    According to the Group General Manager (GGM) of the NNPC R&D Division, Dr. Bola Afolabi, a former Shell senior executive, “With minimal cost, remarkable additional production potential was discovered. We are talking about a digital approach to well and  reservoir management. We are applying a first of its kind technology to easily reveal hidden opportunities and propose realistic well intervention programmes. We are seeking to improve the success rate of exploration and production well intervention activities, reduce operations and improve asset integrity, among others.”

    Cypher-Crescent Managing Director Mr. ThankGod Egbe said by harnessing the expertise of world-class professionals in petroleum engineering, geosciences, computing and applied mathematics, Cypher-Crescent is poised to add values to the global oil and gas industry through creative and unconventional solutions.

  • Nigeria to extend gas pipeline to Côte d’ Ivoire

    Nigeria to extend gas pipeline to Côte d’ Ivoire

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said the West African Gas Pipeline (WAGP) would be extended from Ghana to Cote d’ Ivoire as part of the Federal Government West African energy integration policy.
    The Group Managing Director of the NNPC, Dr. Maikanti Baru, made this disclosure on  while receiving a delegation from Cote d’Ivoire at the NNPC Towers in Abuja.
    Represented by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed, the GMD stated that the extension of WAGP to Cote d’Ivoire would facilitate easy transmission of gas within the West African sub-region.
    He noted that the visit would afford the NNPC and Cote d’Ivoire the opportunity to open a new vista for further bilateral discussion which would lead to the growth and development of the oil and gas sector.
    The GMD said Nigeria and indeed the NNPC has being into the business of oil and gas exploration and production for over fifty years, stressing that the interface would enable the NNPC to share its vast experiences in the sector with the delegation.
    The Group General Manager, Group Public Affairs Division of the corporation, Mr. Ndu Ughamadu that disclosed this in a statement quoted Baru as saying that : “Petroleum exploration and production dates back to over fifty years in Nigeria and a lot of experiences in technology and personnel management have been acquired. We are ready to share our experiences with you so as to help you to avoid the mistakes we made in the past.”
    He expressed the readiness of the NNPC to develop the capacity of the delegation, adding that the NNPC was aware of the long history of refining in Cote d’ Ivoire.  
    Earlier, leader of the Ivoirian delegation and Deputy Director, Production, of Ministry of Petroleum, Cote d’ Ivoire, Mr. Patrick Marshal, said the visit was to learn from Nigeria some of its best practices in personnel management, exploration and production in the oil and gas industry.
    Highpoint of the visit was a technical session on the mode of operations of the NNPC in the petroleum sector.
  • IPMAN urges EFCC to curb corruption in refineries, depots

    IPMAN urges EFCC to curb corruption in refineries, depots

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Monday urged the Economic and Financial Crimes Commission (EFCC) to curb corruption in the sale of petroleum products in the refineries and depots across the country.

    Speaking with The Nation on phone, the IPMAN National Vice President, Alhaji Abubakar Maigandi explained that sharp practices in the allocation and loading of the products was still a major threat to the free flow of fuel that this administration advocates.

    He said that “you know up till now there is corruption in those NNPC depots, you have to give them money before you load in any of them Warri, Port Harcourt and Kaduna. All the three refineries.”

    The IPMAN National Vice President, who commended the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru on his recent visit to the EFCC, asked him to take advantage of the relationship to tackle the corruption menace in the oil downstream industry.

    He, however, explained that only NNPC is importing products and it sells them at a lower rate than the independent marketers, which is accountable for the price disparity.

    He added that some independent marketers have however followed suit to lower their pump prices because they seek high turnover. The situation, he said has made the market highly competitive to the benefit of the consumers.

    He noted that marketers were not accessing kerosene directly from NNPC, stressing that the middlemen are responsible for the additional cost in securing the kerosene.

    His words: “The managing director, the other time visited Magu. So, all what they have said is good, if they can go and do it in the right way,  definitely the Kerosene price will crash. Now only NNPC is bringing kerosene because there is a subsidy, so that subsidy because the  NNPC is bringing their own, they sell it at a lower rate to the marketers.

    “So, marketers are not able to import it because of the rate NNPC is selling because they produce, so they sell it at a lower rate.

    They are selling at a lower rate but when marketers come, it will become at a higher rate. So that is the major problem that we are having now, the government is giving it at a lower rate but the marketers can not get it at that rate.

    “Another unnecessary cost, which is not going to the government’s pocket, if the marketers were getting it direct, the way government said they should sell, then definitely by now the kerosene will not pass N150 or 160 highest, in the filling station.

    “Let Magu work with that the Managing Director, since he has gone there to meet him to assist him, let him assist him to eradicate the corruption.”

  • We won’t chicken out of Chad Basin oil search-UniMaid

    We won’t chicken out of Chad Basin oil search-UniMaid

    The Vice-Chancellor of the University of Maiduguri, Prof. Ibrahim Njodi has pledged the commitment of the institution to go the whole hog with the Nigerian National Petroleum Corporation, (NNPC) in the search for commercial hydrocarbon deposits in the Chad basin despite the recent insurgent attack.

    The don stated this over the weekend in Maiduguri while receiving the high powered delegation from the  Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and the NNPC led by Engr. Saidu Mohammed, Chief Operating Officer in charge of gas and power unit of the Corporation.

     Njodo told the delegation that though the entire University community was distraught by the cruel incident of July 25th 2017, the University cannot “Chicken out’’ from doing what it is supposed to do when eventually the NNPC re-organizes and return to exploration work in the area.

    Tracing the University’s partnership with the Corporation to over 12 years ago when the NNPC teed-off exploration activities in the Chad Basin, the UniMaid VC described the cruel attack on the Frontier Exploration Services/Surface Geochemistry Sampling team comprising the NNPC, Consultants from University of Maiduguri, Consultants attached to the Integrated Data Services Limited, (IDSL) a subsidiary of the NNPC and Civilian escort team, as an act of God.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who disclosed this in a statement yesterday said that Njodo noted that the situation painful as it might appear must be seen as a necessary sacrifice for the development of the country.

     Njodo, however, called on the NNPC to stand firmly beside the University and the families of the bereaved and provide the much-needed support to overcome the massive setback wrought by the insurgent attack.

    Responding, Engr. Mohammed said as a responsible corporate entity the NNPC would do everything within its means to support the University and the families of the victims of the attack.

    “We have been great partners with the University of Maiduguri for many years and certainly when losses like this happen and under this circumstance, we cannot abandon our partners to their fate,’’ Engr. Mohammed said.

    He promised to return to the University after conferring with the Honourable Minister of State for Petroleum Resources and the Group Managing Director of the NNPC.

    Earlier, the high powered delegation paid a similar visit to the Governor of Borno State at Government House Maiduguri where the deputy governor of the state, Alhaji Usman Durkwa, charged the NNPC not to allow the attack to dampen its morale in the quest for new oil finds in the region.

    Before leaving Maiduguri, the Delegation paid a visit to the Theatre Command Headquarters of operation Lafia Dole where a formal condolence letter from the HMSPR was handed over to Brig. Gen. Stevenson Olabanji who stood in for the theatre commander.

    General Olabanji restated the readiness of the military to perform its statutory role of providing security cover for exploration activities in the Chad Basin and beyond.

    Meanwhile, the Group Managing Director of the NNPC, Dr. Maikanti Baru upon return of the Delegation over the weekend, announced some short term palliatives for victims of the attacks.