The Nation Newspaper

Tag: NNPC

  • Army regrets issuing false claims on rescue of oil workers attack in Borno

    Army regrets issuing false claims on rescue of oil workers attack in Borno

    …recovers more dead bodies, ammunitions

    After facts emerged on last Tuesday attacks with close to 50 people dead and a video released by Boko Haram  of three staff of University of Maiduguri captured in the ambush,  the Nigerian Army has regretted her earlier statement which claimed the rescue of all Staff of NNPC and UNIMAID involved in the ambush attack.

    The Nation recalls that a  group of geologists from the University of Maiduguri and some support staff of the institution and security operatives and some staff of   NNPC working on  oil exploration in Lake Chad region were ambushed and abducted by Boko Haram gunmen in Borno Yesu.

    The attack which was initially kept under wraps until media enquiries compelled the army to  issued a statement after 24hrs  informing  that 9 soldiers were killed in the attack. The statement also added that all the kidnapped NNPC workers were rescued. But the claim turned out to be untrue.

    The Vice Chancellor of University of Maiduguri, Prof. Abubakar Njodi had accused the army of misleading the public with claims of rescue when the Petroleum ministry and the Minister of Education paid him condolences in his office in Maiduguri.

    He informed that  none of his staff were rescued, adding that five of his staff were brought into Maiduguri dead, just as the Minister of State Petroleum Mr. Ibe Kachukwu said he could not as well verify the rescue of his staff as claimed by the army.

    It turned out that Boko Haram released a  video on Friday  in which three staff of UNIMAID appeared calling   on the federal government to secure their release from the hands of Boko Haram.

    The Army Spokesman Brig. Gen Sani Usman in a fresh Statement issued on Saturday night said the earlier misleading statement was regrettable.

    He said more corpses comprising five soldiers, 11 Civilian-JTF and five explorations workers, and some immunizations  have been  further recovered by military search and rescue operation going on in the area

    Below is the full text of the  Statement  from Brig. Sani Usman.

    “The incident of 25th July 2017 where some Boko Haram Terrorists ambushed our troops including members of the Civilian Joint Task Force (CJTF) escorting some staff of Nigerian National Petroleum Corporation (NNPC) as well as that of University of Maiduguri (UNIMAID) on oil exploration in Borno Yesu District of Magumeri Local Government Area of Borno state is unfortunate and highly regrettable. Most regrettable also is my earlier release on the said incident about the rescue of all NNPC Staff.  The error in the statement was not deliberate.

    “The Nigerian Army in this present dispensation is reputed for timely dissemination of information on activities of our troops in all theatre of operations. We have strived to keep the public informed on our activities with no intention of distorting any fact. Our troops have doubled efforts in the pursuit of the Boko Haram terrorists while search and rescue is still on-going to secure the safe return of the remaining civilians.

    “So far the search and rescue team has recovered additional bodies of 5 soldiers, 11 Civilian JTF and 5 members of the exploration team.

    “Contrary to reports in some media,  6 members of exploration team out of 12 that went out are still missing, while one of the NNPC staff returned to base alive.

    “On the other hand, our pursuit team also recovered 2 of our own  Gun trucks and an additional Toyota Buffalo Gun truck from the insurgents. In addition, the team also made the following recoveries; 4 Rocket Propelled Grenade Bombs, 4 Rocket Propelled Grenade chargers, 6 AK-47 rifles, 1 Anti-Aircraft Gun, 1 General Purpose Machine Gun,1 Anti-Aircraft Gun Barrel, 1 Rocket Propelled Grenade Tube, 4 Dane Guns, 8 Tyres and 2 Tyre Rims.

    “Other items recovered include 1 Pumping Machine, 2 Tyre Jacks, 1 Super Battery, 5 Reflective Jackets, 3 Toyota Hilux, 4 Jerry cans filled with PMS, 1 Motorola Radio, 1 Geographical Positioning System (GPS), 21 empty Jerry cans, 2 Shovels and 3 Food Coolers.  Troops also recovered 122 rounds of PKM ammunition, 213 rounds of 7.62mm NATO  ammunition, 1255 Anti-Aircraft Guns ammunition, 4 boxes of API 12.7mm ammunition, 1 AK-47 Rifle Magazine, a Digger, 2 Bows and 13 Arrows, 2 LLG Bombs, assorted drugs and assorted working tools.

    “The Nigerian Army condoles with the families of all that lost their loved ones in this unfortunate incident. Search and rescue efforts are on-going. We are counting on the goodwill and support of the populace in volunteering valuable information that could help in the search and rescue operation.

    “What the remnants of the Boko Haram terrorists are doing are pure criminal activities of kidnapping to gain funds. This has been noted and will be jointly addressed in conjunction with other Security Services.

    “The Nigerian Army remains resolute in the fight against terrorism and would not relent in its effort to safe guard lives of citizens, properties and the territorial integrity of the country”.

    The Nation recalls that in 2014, Brig. Gen Chris Olukolade(Rtd), the then Director of Defense Information, Nigeria Army told the whole world that over 80 of the Chibok girls abducted were rescued by troops in less than 24 hours and the statement turned out to be false.

  • Army officer, eight soldiers killed in attack on NNPC workers’ convoy

    Troops have rescued all the Nigeria National Petroleum Corporation (NNPC) officials kidnapped by suspected Boko Haram terrorists in Borno on Tuesday.

    A statement yesterday by the Director of Army Public Relations, Brig.-Gen. Sani Usman, said the bodies of an officer, eight soldiers and a civilian, were recovered.

    Usman said the bodies were evacuated to 7 Division Medical Services and Hospital.

    The statemenmt said: “Suspected Boko Haram terrorists ambushed the escort and team of Nigerian National Petroleum Company (NNPC) workers returning from oil exploration at Barno Yasu, Magumeri Local Government Area of Borno State on Tuesday.

    “On receipt of the information, the Brigade mobilised and sent reinforcement, search and rescue party that included the Armed Forces Special Forces and guides, who worked and pursued the terrorists throughout the night.

    “All the NNPC workers have been rescued and bodies of the officer, eight soldiers and a civilian, who died in the attack, recovered and evacuated to 7 Division Medical Services and Hospital.

    “The team recovered four  vehicles, including a gun truck mounted with an Anti-Aircraft gun, two white Hilux vans belonging to NNPC workers and a blue Hilux belonging to the Civillian Joint Task Force (CJTF).

    “The team also recovered large quantities of arms and ammunition, spare tyres, jerry cans containing petroleum, oil and lubricant, assorted drugs, Improvised Explosive Device (IED) making materials, reflective jackets and a Motorola handheld radio, among others.

    “Many of the terrorists were also neutralised.”

    According to him, the troops are not relenting in the pursuit, search and rescue effort.

    A source told News Agency of Nigeria (NAN) that suspected Boko Haram insurgents attacked a convoy of oil workers at a village along Gubio and Magumeri councils on Tuesday.

    It said the attackers ambushed the oil workers, who were workers of the Nigeria National Petroleum Corporation (NNPC), traveling in a convoy of about 10 vehicles.

    The workers were engaged in oil exploration in the Lake Chad Basin.

    According to the source, some workers of the University of Maiduguri were also part of the team.

    It added that nine soldiers and some members of a Civilian Joint Task Force (CJTF), who were also part of the team, were killed inthe attack

  • NNPC loses 150,000b to pipeline vandalism

    NNPC loses 150,000b to pipeline vandalism

    • Two million daily output affected

    The Nigerian National Petroleum Corporation (NNPC), lost 150,000 barrels of crude yesterday from an  attack on its Trans Niger Pipeline in Ogoniland, the Group Managing Director. Dr. Maikanti Baru, has  said.

    Baru said the attack  will affect the Corporation’s  plan to sustain its last week’s record of 2.2million barrels  production per day.

    On the possibility of sustaining the feat, he said: “Unfortunately, we have not been able to sustain it because of challenges. As I am talking to you this morning, the Trans Niger pipeline has been breached in Ogoniland and that is 150,000 barrels of oil has been locked up daily. That has been fairly an issue in that area and we hope we can continue at that level.”

    Baru spoke to reporters after the opening ceremony of the “Extra-ordinary session of the Council of Ministers of the African Petroleum Producers’ Organisation (APPO) in Abuja.

    In his opening remarks, Acting President Yemi Osinbajo urged African oil producing countries to track the funding of terrorists with oil funds.

    He lamented that there was a global threat to peace from the funding of terrorist groups and other sources of violence and conflicts that have become a threat to the security and safety of member states.

    Urging member-states to build up a data base that will track every molecule of oil produced in the region, he said the measure will  bring about accountability, transparency and global cooperation.

    He said:  “Permit me to mention a matter of immediate concern. Around the world today, we are increasingly seeing crude oil, often of untraceable origins, funding the activities of terrorists groups and other purveyors of violence and conflicts.

    “Many of these groups constitute a threat or a potential threat to the safety and security to  our member-states. APPO reforms, therefore, needs to build the capacity to maintain a reliable statistical database and to deploy technology to track every molecule of crude oil extracted from our territories.

    “This is an important step, not only for global security, but also for fiscal transparency, accountability and of course, the required levels of international collaboration and cooperation that an organisation like APPO is well-placed to muster.”

    He said the session is holding when the continent and the rest of the world  are witnessing volatility in the petroleum market, and by implications, in their local economies.

    According to him, the centrality of the hydrocarbon industry to the economies of the continent  is self-evident, it is reflected in the revenue inflows that accounts for a significant percentage of their budget.

    This,  Osinbajo said, has become one, if not the primary sub-structure upon which economic planning is based and on which economic development and growth are generated.

  • Osibanjo urges Africa oil producers to track terrorism funding

    Osibanjo urges Africa oil producers to track terrorism funding

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru on Monday announced that the corporation could not sustain its last week record of 2.2million barrel per day (mbd) owing to the yesterday’s (Monday) attack on the Trans Niger Pipeline in Ogoniland which culminated in the loss of 150,000barrel.

    Asked whether the NNPC was able to sustain its last week production feat, he said “Unfortunately, we have not been able to sustain it because of challenges. As I am talking to you this morning the Trans Niger pipeline has been breached in Ogoniland and that is 150,000 barrel per of oil has been locked up day. That has been fairly an issue in that area. And We hope we can continue at that level.”

    He spoke to reporters after the opening ceremony of the “Extraordinary session of the Council of Ministers of the African Petroleum Producers’ Organization (APPO) in Abuja.

    In his opening remarks, the Acting President, Yemi Osinbajo, urged the African oil producing countries to track the funding of terrorists with oil funds.

    He noted that there was a global threat to peace from the funding of terrorist groups and other sources of violence and conflicts that have become a threat to the security and safety of the member states.
    Urging the member state to build up a data base that will track every molecule of oil produced in the region, he noted that the measure will also bring about accountability, transparency and global cooperation.

    His words: “Permit me to mention a matter of immediate concern. Around the world today, we are increasingly seeing crude oil, often of untraceable origins, funding the activities of terrorist groups and other purveyors of violence and conflicts.

    “Many of these groups constitute a threat or a potential threat to the safety and security in member of our member states. APPO reforms, therefore, need to build the capacity to maintain a reliable statistical database and to deploy technology to track every molecule of crude oil extracted from our territories.

    “This is an important step, not only for global security but also for fiscal transparency, accountability and of course, the required levels of international collaboration and cooperation that an organisation like APPO is well-placed to muster.”

    He said that the session is holding when the continent and the rest of the world are witnessing volatility in the petroleum market, and by implications, in their local economies.
    According to him, the centrality of the hydrocarbon industry to the economies of the continent is self-evident, it is reflected in the revenue inflows that accounts for a significant percentage of their budget.

    This, said the Acting President, has become one of the, if not the primary sub-structure upon which economic planning is based and on which economic development and growth are generated.
    He added that “Over the last three years or so, oil producing countries across the world have experienced the full impact of the drop in oil prices with significant negative impact on government revenues and budgets and of the value of national currencies.

    “This volatility has triggered much soul-searching and governments are compelled to ask themselves difficult but necessary questions about the present and the future. Besides, the reality of the future, where demands for and revenues from oil drop sharply is already upon us; and almost every major oil importing country today has embarked on an aggressive non-fossil fuel alternative programme.

    “China, Japan and some Scandinavian states have already set dates within the next 10 to 15 years, to produce and use only electric vehicles. The zero oil days are clearly around the corner and I think the point has been very eloquently made by kachikwu.”

    He explained that African’s government and export bases are in dire need of diversification from the inimical dependence on natural resources that they enjoyed in the past.

    Kachikwu

    Continuing, he said that “But also the paradox is inescapable that we need oil to get out of our dependency of oil. The capacity to add value to the crude oil that we extract is crucial.

    “The whole range of the petrochemical enterprise remains a largely untapped option for growing industrial opportunities, creating jobs and increasing our chances of delivering on our national and continental commitment to inclusive growth.

    “We must leverage our resources to fund and to support our ambition to create economies fit and ready for the 21st century.

    “In Nigeria, we are pursuing series of reforms along these lines, combining executive and legislative actions to create a sector that is more efficient, more transparent and more attractive to domestic and foreign investors.

    “We are also making progress in fine-tuning and implementing our local content policies, and that I must say is one area that is critical to the future of APPO. Indeed, that is one of the reasons why APPO was created, to provide a platform that would support and empower African countries to build and exploit local capacity and technology to the fullest.”

    Osinbajo announced that from February 2018, Nigeria would host annually, a world class international petroleum summit in Abuja.

    Speaking, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu said that one of the challenges facing the (APPO) is the need to reform and reorganise to giving it a bite.

    The minister told his members that the oil world has changed and brought about a decrease in price to about 40% of what it was five years ago.

    So most countries that produce oil, he said, have lost substantial revenue and have lost even the capacity to do some of the huge developmental programme that they are known for.

    Kachikwu added that = market is becoming very distraught and most regional block producers are beginning to ring-fence specific markets.

    He submitted that America has pulled out of the large market of oil importer while Asian and the Gulf countries are protecting their markets.

    He charged the APPO members to consider ways of enlarging and protecting the African market to give its players the first opportunity to utilise the market.

    Kachikwu said: “the Asian, the Gulf countries ensuring that their markets are protected. With America pulling out of the larger market as a major importer of oil, and the America first policy, it is becoming absolutely imperative for member countries of this organization, we need to begin to look at the African market and how they can enlarge it, expand it, make it robust and yet protect it, so that those of us who play in that market would be able to have the first opportunity to utilize that market.”

  • NNPC loses 150,000mpd as militants strike pipeline in Ogoniland 

    NNPC loses 150,000mpd as militants strike pipeline in Ogoniland 

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru on Monday announced that the corporation could not sustain its last week record of 2.2million barrel per day (mbd) owing to the Monday attack on the Trans Niger Pipeline in Ogoniland which culminated in the loss of 150,000barrel.

    Asked whether the NNPC was able to sustain its last week production record, he said: “Unfortunately, we have not been able to sustain it because of challenges. As I am talking to you this morning the Trans Niger pipeline has been breached in Ogoniland and that is 150,000 barrel per day of oil has been locked up day. That has been fairly an issue in that area. And We hope we can continue at that level.”

    He spoke to reporters after the opening ceremony of the “Extraordinary session of the Council of Ministers of the African Petroleum Producers’ Organization (APPO) in Abuja.

    Details later…

  • OMS clears air on crude oil transportation contract

    OMS clears air on crude oil transportation contract

    PPP Fluid Mechanics Ltd, a company that was later acquired by Ocean Marine Security Limited through share purchase agreement, has debunked the claims making its rounds on Social Media that it secure the contract without due process.

    Contrary to reports trending in the social media, OMS noted that it secured the contract for the transportation of crude oil by marine vessels from Escravos Terminal to Warri Refinery through an open international competitive bidding in which 13 other companies participated.

    This is according to a press statement made available to journalists, after OMS, an offshore assets protection company, promoted by corporate titans, Tunde Ayeni and Hosa Okunbo, had come under media searchlight in respect of the crude oil transportation by marine vessels contract which it executed for the Nigerian National Petroleum Corporation, (NNPC), in recent past, with two online publications grossly misrepresenting the terms of the contract.

    For instance, while the reports claimed that the contract was awarded at the cost of $15.4 per barrel, the company disclosed that the contract cost never exceeded $5.68 per barrel while it lasted, and that was inclusive of the provision of dedicated security posts in addition to the transportation of crude oil to the refineries.

    The statement reads: “If only the journalists who did these stories had been a bit more painstaking and cross-checked their facts with NNPC, they would not have come up with this inaccurate and false report,” adding that OMS delivered a total of 65, 597, 698 barrels of crude oil to refineries between 2011 and 2015, the exact figure that was made available at the drilling terminals.

    “Such media claim that OMS delivered less than what it received from drilling terminals is an embarrassing demonstration of ignorance by the section of the media that came up with the report. NNPC has its records of what each vessel loaded and discharged.In any case, if that was true, wouldn’t the present government have summoned the company to come and account for the alleged shortage?”

    “In any case, if that was true, wouldn’t the present government have summoned the company to come and account for the alleged shortage?”

    Contrary to the false claim in the reports that crude oil transportation through the pipeline was deliberately circumvented to yield way to transportation by marine vessels, the facts on the ground indicated that if NNPC did not resort to the vessel option at the time, the refineries would have shut down completely owing to non-supply of crude oil.

    Before NNPC embarked on the marine vessels option of transporting crude oil, a report commissioned by the corporation indicated that it was no longer economical to transport crude oil from Escravos to Warri Refinery through the pipeline as a result of unsustainable expenditure of about $121million for the maintenance and repairs of the Escravos-Warri broken crude oil pipeline. Even at that, this huge expenditure became a regular one which still did not solve the problems associated with transporting crude oil to the refineries through pipelines.

    The report further indicated an estimated 40-60 percent loss of crude oil pumped through the Escravos-Warri pipelines owing to ceaseless pipeline vandalisation and oil theft.

    Another indisputable fact is that before the engagement of PPPFM, the Warri and Kaduna refineries had been shut down for about 48 months owing to non-supply of crude oil feedstock to keep the refineries running.

    OMS said: “It is important to state that with our company’s intervention, it is estimated that the nation has been saved over $2billion based on NNPC’s admittance of an average loss of about 40-60 percent of crude oil pumped through the Escravos-Warri pipeline due to vandalisation and crude oil theft.

    This saving is definitely more if the analysis were to be based on the additional loss recorded while pumping crude oil through the Port-Harcourt-Bonny-Okrika pipeline.”

    It must be stated for public records and without fear of contradiction that OMS is a projects solution providing corporate concern and not a trading company. For 30 years, we have offered value-driven services to our clients and we were never found wanting.

    NNPC, as a performance driven corporation, has never found us wanting in delivering quality service and the records are there to attest to this.

    We are not a trading company, we have never traded in one barrel of crude oil or one litre of product whether legally or illegally.

    Even at the risk of sounding repetitive, therefore, OMS, wishes to state that we remain totally committed to transparency, efficiency and global best practices in all our ventures.

  • Govt to replace kerosene with gas, says NNPC boss

    The Federal Government is planning to make liquefied petroleum gas (LPG) the primary domestic fuel for cooking.

    The aim is to de-emphasise the use of firewood and kerosene and reduce the health risks of the two traditional sources of cooking.

    The government is relying on the Nigerian National Petroleum Corporation (NNPC) and the Nigeria Liquefied Natural Gas Limited (NNLG) to achieve this goal.

    In a statement, NNPC’s Group Managing Director Dr Maikanti Baru said the need to replace firewood and kerosene with LPG was imperative to reduce health hazards and death.

    The corporation, he said, would  leave no stone unturned in increasing the use of cooking gas by individuals and industrial concerns.

    He said Indonesia had succeeded in kerosene substitution, stressing that NNPC is looking forward to cooperating with Indonesia to achieve a similar feat.

    Baru said: “The Nigerian National Petroleum Corporation will also like to partner with Indonesia and other countries in the area of bio-fuels production in order to diversify the nation’s energy mix for growth. Already, the Corporation has launched a campaign on deforestation  to reduce tree felling and its attendant depletion of the ozone layer.”

    At a stakeholders’ forum in Abuja, NLNG’s Managing Director, Mr. Tony Attah, said the company was planning to increase LPG to increase the product’s accessibility.

    He said Nigeria LNG would increase the penetration and market share of LPG by 32 per cent from 400,000 metric tonnes per annum (MTPA) to three million MTPA in five years, as part of efforts to make more Nigerians use the product.

    A study by the company showed that the country must increase LPG production by 32 per cent, adding that given the right condition, the firm would achieve this goal soon.

    “It is expected that an aggressive and well-coordinated market expansion strategy should lead to the growth of the Nigerian LPG market at annual rates of up to 32 per cent from the current level of over 400,000MTPA to over  three million MTPA in five years with a potential increase in per capita consumption from approximately 2kg to over 12kg, well above the sub-Saharan average of 3.5kg per capita,” Attah said.

    The NLNG chief said the gas giant had taken up the drive to improve LPG use in Nigeria, adding that its efforts must be complemented by the government to ensure the market peaks in line with the estimate revealed by its study.

    On the subsector’s problems, Attah said dearth of investments in LPG reception facilities and supply infrastructure, onerous fiscal regime and regulatory environment, such as the imposition of Value Added Tax (VAT) on LPG produced in the country, among others, were inhibiting the growth of LPG ‘ market.

    He urged the government to remove fiscal and regulatory bottlenecks to create a conducive business environment for private sector investment in all segments of the value chain.

    “The removal of VAT on LPG as well as taxes and duties, concessions for LPG equipment and cylinders must be at the top of the priority list for the government,” he said, adding that more people would use LPG in the country when these problems are resolved.’’

  • NNPC, Halliburton search for oil in Inland basins

    NNPC, Halliburton search for oil in Inland basins

    A new vista has been added to the ongoing search for commercial hydrocarbon in the inland sedimentary basins by the Research and Development Division of the Nigerian National Petroleum Corporation (NNPC), following ongoing collaboration with US based Halliburton Corporation to get the exact location of viable crude oil deposits.

    Group General Manager in charge of the R&D Division, Dr. Bola Afolabi, said in Port Harcourt that the collaboration with Halliburton would help fast-track the inland basin exploration efforts through the use of the innovative Neftex solution designed to provide exactitude in drilling for oil.

    He said the Halliburton Neftex solution which would provide a geophysical mapping structure of the country would complement ongoing in-house efforts by the NNPC research centre to develop what is known as “Turonian Cenomanian Cretaceous source rock” for all the basins in Nigeria. This essentially seeks to identify all the prolific basins in Nigeria by locating the cretaceous kitchen, that is, areas where large crude deposits could be found.

  • NNPC refineries meet 60% domestic kerosene consumption

    NNPC refineries meet 60% domestic kerosene consumption

    •House committee slams high cost of product

    The Nigerian National Petroleum Corporation’s (NNPC) three refineries in Port Harcourt, Warri and Kaduna now supply 60 per cent of Dual Purpose Kerosene (DPK), popularly known as kerosene, consumed in the country, it was learnt yesterday.

    The announcement is coming ahead of the 2019 target date for the cessation of petroleum products importation by the Federal Government.

    Group Managing Director of the NNPC, Dr. Maikanti Baru said this at a two-day Investigative Public Hearing of the House of Representative Committee on Petroleum Resources (Downstream).

    The committee was mandated to, among other things, work out a clear cut policy framework on deregulation of kerosene to avert the challenges faced by the masses in procuring the product; arrest the resurgence of kerosene explosion with attendant fatalities and investigate the disappearance of N11 billion worth of petroleum product belonging to the NNPC.

    According to Baru, the corporation’s refineries were producing five million liters of kerosene daily representing more than 60 per cent of the national daily consumption requirement of eight million litres.

    The GMD, who was represented by the Chief Operating Officer, Downstream, Mr. Henry Ikem Obih, said the balance of three million litres of the product was being imported by private petroleum products marketers.

    He noted that kerosene and other petroleum products supplied by the corporation were of high quality and meet safety standards.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who made this known in a statement quoted him as saying that “the NNPC ensures that the entire refining output in Nigeria through its refineries in Port Harcourt, Warri and Kaduna and any products imported by it to make up for market supply-shortfalls meet the specifications of the Nigerian Institute of Standard (NIS) and Standards Organisation of Nigeria (SON)”.

    The Committee Chairman, Joseph Akinlaja, stated that the committee was deeply concerned about high cost of kerosene in the market as well as incessant explosion due to adulteration.

    He said the committee will ensure it achieved its mandate.

  • NNPC recovers N2b out of N11b from Capital Oil

    NNPC recovers N2b out of N11b from Capital Oil

    • Reps invite oil chief

    The Nigerian National Petroleum Corporation  (NNPC)  said its has recovered N2billion from Capital Oil and Gas  from the N11billion worth of petroleum products it warehoused in the tank farms of Capital Oil.

    The House of Representatives has however  asked the management of Capital Oil and Gas to appear before its Committee on Petroleum Resources (Downstream) today or face legislative sanctions.

    The lawmakers said the summon became imperative due to the inability of the Committee to successfully serve its invitation on the company despite many attempt to do so.

    Chairman of the Committee, Joseph Adelaja during the opening of a two-day public forum on the disappearance of the petroleum products warehoused in Capital Oil’s tanks,  said the matter over which the company was being invited has huge implication on the funding of the national budget.

    Akinlaja said since the Committee does not have the luxury of time at its disposal and would not allow the oil company to thwart its investigation.

    In his presentation, NNPC’s  Chief Operating Officer (COO), Downstream, Henry Nkem-Obih  said external assistance for the recovery of the money was sought after all internal mechanism to resolve the issue with the oil firm failed.

    He said: “The throughput agreement we had clearly state that no party involved in this transaction is authorised to touch eact other’s inventory without a written consent of the other party, but in this case no such thing happened.

    “Since NNPC is a government agency, the matter was referred to the DSS (Department of State Security Services) and the Economic and Financial Crimes Commission (EFCC) to recover the loss of government asset valued at over N11billion.