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Tag: NNPC

  • July deadline for low-sulphur fuel remains unchanged, says NNPC

    July deadline for low-sulphur fuel remains unchanged, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) is working to meet the July 2017 deadline  for switching from  fuel with higher concentration of sulphur to fuel with lower sulphur content.

    Its Group General Manager, Public Affairs Division, Ndu Ughamadu,  said by changing to lower-sulphur fuel, Nigeria wants to start using fuel that creates less toxic fumes as against the current grade of fuel, which produces black smokes with its attendant environmental hazards for the country.

    The NNPC spokesman said the decision to embrace low sulphur fuel was borne out of the need to reduce toxic emission and further join countries that have taken similar steps.

    In an interview with The Nation, Ughamadu said the issue of refining and consuming fuel with low sulphur content is a global initiative and that Nigeria cannot be an exemption. He said NNPC has taken some measures to meet the deadline for conversion into lower-sulphur fuel.

    Parts of the measures, he said, include liaising with reputable environmental protection institutions to ensure proper certification of lower-sulphur fuel and enlightening consumers on the benefits to derive from using the product.

    Ughamadu said: “We, at the (NNPC), are  working with the Standard Organisation of Nigeria (SON), the Ministries of Industry and Environment and other institutions that have quality control as their primary goal.”

    He said fuel has to be examined and certified before being supplied to the market for consumption. “Though the process of converting to lower-sulphur fuel in Nigeria is ongoing, the Corporation is working towards meeting the July deadline set for its introduction into the Nigerian market,” he said.

    He added:“The decision by the Federal Government to change the fuel used in the country from the one that has higher concentration of sulphur to the one with lower sulphur, would bring about a  socio-economic growth. Besides the fact that the idea would help in reducing toxic fumes and improve the wellbeing of the people, it would also assist users and owners of vehicles and other equipment in cutting down wastage.”

    NNPC fuel imports accounted for over 70 per cent of the total fuel Nigeria consumes per day. Also, the Ministry of Environment and the Standard Organisation of Nigeria (SON) have declared their intentions to help NNPC achieve its goal of introducing fuel with lower sulphur into the market. The two institutions have promised to ensure a switch to 150 parts per million (ppm) gasoline and 50 parts per million (ppm) diesels. Parts per million, is a measurement used in measuring the quality of the fuel produced in the country. Based on this, Nigeria will be joining South Africa, which currently use low sulphur grade diesel of 50ppm.

  • 29 Ex-NNPC casual staff cry for free legal services

    29 Ex-NNPC casual staff cry for free legal services

    • Seek N4b severance package
    • As corporation says go to court

    The ex-causal staff of the Nigerian National Corporation Corporation (NNPC) cried out for free legal services from any charity human right activists in order to collect their N4 billion pay-off from the corporation.

    They said they have become hapless in the pursuit of the payoff as it is obvious that some NNPC management staff are using their might to frustrate them from requesting for the cash.

    Speaking to The Nation at the weekend in Abuja, the spokesman and also leader of the disengaged causal workers of NNPC, Mr. Eze Ene and his assistant Okolo Barnabas, said they lack the means to engage lawyers to sue NNPC.

    Asked to tell the corporation’s part of the story on phone, the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu told The Nation that there is not like that nomenclature ‘casual staff’ in NNPC.
    He described them as daily paid workers that NNPC must have engaged their services that should ordinarily leave when there was no need for their service.

    The NNPC spokesman however advised that “if you are making claims and assuming that there was something like that in NNPC and you believe that NNPC engaged your services and you were not paid, you go to court. It is as simple as that.”

    The disengaged staff however submitted that “we don’t have the means to engage lawyers and that is why we are calling on human right lawyers to come and help us and if there is anywhere we are found guilty the law should take its course. We don’t have money to take them to court. They have money. They are even saying they will be happy if we will go to court so that they will frustrate it.”

    The spokesman recalled that NNPC engaged them as casual staff in 1998 for its present day corporate headquarters in Abuja, while it was still operating from Lagos.

    According to them, “the then Group Admin Service department engaged some casual workers here in Abuja for them to arrange documents in the different departments. They also engaged people to receive furniture and equipment from suppliers like Julius Berger. Some of us were engaged and put in charge of partitioning. But finally, in 2000 they resumed in Abuja. In June 2000 they gave us to whom it may concern and called us casual staff under group services admin of NNPC.”

    They said following the agitation of some of the senior casual workers NNPC regularised their appointments as contract and permanent staff in 2004.

    The group said that suddenly in 2005, NNPC started saying that it had no causal staff but daily paid workers while we were casual workers. They stressed that the various departments were calling them casual staff in their memo and not daily paid workers.

    Consequently, in 2009, the corporation was already owing the staff for nine months till date they have not been paid.

    Lamenting, Ene said: “They should pay us off for over 15 years because now we don’t know where to start life. In the existence of NNPC no casual staff has been set off without conversion.”

  • DSS uncovers scheme in NNPC for diverting public funds

    DSS uncovers scheme in NNPC for diverting public funds

    •Over N15b diverted, says agency
    •Operatives arrests one, trails senior officials

    THE Department of State Services (DSS) has unearthed a well perfected scheme involving officials of the Nigerian National Petroleum Corporation (NNPC) through which they allegedly divert proceeds of petroleum products sold to oil marketers.

    The Nation learnt that investigation so far, by the SSS revealed that the scheme, which exist in an arm of the NNPC called:  NNPC Retail Limited, involved some senior officials, who employ some junior officials to perpetrate the fraud.

    Investigation revealed that the scheme is operated with the connivance of some senior officials, who engage officials attached to the “Cash and Carry Team” of the NNPC Retail Ltd, who give out petroleum product to marketers on credit and supply them with private bank accounts into which the marketers make payment.

    The DSS said the scheme, which has been operated for some time now, has cost the country over N15 billion (N15, 252,456,766).

    It said it has arrested one of the main operators of the scheme, whose name it gave as Abdullahi Muktar.

    The agency described Muktar as a 36-year-old, who had his youth service in NNPC between 2007 and 2008 before he was retained and attached to the “Cash and Carry Team” of the NNPC Retail Ltd.

    The DSS made this known in an application it filed before the High Court of the Federal Capital Territory (FCT) for an order permitting it to detain Muktar pending the conclusion of investigation.

    It said the detention of Muktar (named as respondent in the application) was necessary because it was currently trailing others, who benefited from the scheme, some of whom are senior officials of the NNPC.

    The agency, in a supporting affidavit to the application, said: “The respondent connived with others, who are still at large, to defraud the NNPC money running into 15, 252,456,766. The respondent works in the NNPC Retails Limited.

    “Having done his compulsory national youth service in that unit of the NNPC in 2007 and 2008, he was retained. And later co-opted into the Cash and Carry Team in 2011.

    “In the Cash and Carry Team, he was responsible for confirming orders and releasing products to all oil marketers,” it said.

    It stated that Muktar connived with others and all the monies from petroleum products, in respect of which he confirmed orders and released to marketers were paid into his personal account.

    It added that: “He (Muktar) and his accomplices have defrauded the Federal Government of billions of naira. Their action constitutes economic threat of national security dimension.

    “The respondent has made useful voluntary statement that is assisting the applicant in the investigation. The respondent is 36 years old with millions of naira in his various accounts,” the SSS said.

  • PIB: Senate scraps NNPC

    PIB: Senate scraps NNPC

    The Senate yesterday passed a part of the controversial Petroleum Industry Bill (PIB).

    The Petroleum Industry Governance Bill (PIGB) 2017 is expected to take care of the governance aspect of the industry. It scaled the third reading following the presentation of a report of the Joint Committee on Petroleum Resources (Upstream, Downstream, Oil and Gas) by the chair of the joint committee, Senator Tayo Alasoadura.

    Describing the PIGB as the first tranche of the PIB, Alasoadura said other tranches – the Upstream Petroleum Licence and Lease Administration, Downstream Oil and Gas Administration and Petroleum Fiscals – would soon be presented for consideration of the lawmakers.

    Another tranche to be considered is the Petroleum Revenue Management, including the Petroleum Host Community Fund.

    Some of the highlights of the bill are the scrapping of the Nigerian National Petroleum Corporation (NNPC) and the merging of the Department of Petroleum Resources (DPR), Petroleum Products Pricing, Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF) into one agency.

    To replace the NNPC are the National Petroleum Company (NPC) and Nigerian Petroleum Assets Management Company (NPAMC), to ensure efficient and effective commercial performance. The new bill also streamlines the role of the Petroleum Minister.

    According to the bill, the NPC and the NPAMC will be under the supervision of a newly created Petroleum Regulatory Commission (PRC).

    The PRC “shall be the Industry Regulator and Watchdog, responsible for licensing, monitoring, supervision of petroleum operations, enforcing laws, regulations and standards across the value chain”, the bill added

    Under the envisaged regime, the PRC will also absorb the DPR, PPPRA and the PEF, “to ensure efficient and effective commercial performance in the petroleum sector”.

    It is also geared toward creating efficient and effective governing institutions with clear and separate roles for the petroleum industry, in addition to establishing a framework for the creation of commercially, oriented and profit-driven petroleum entities.

    This, according to the bill, will ensure value addition and internationalisation of the petroleum industry, promote transparency and accountability in the administration of petroleum resources and foster a conducive business environment for petroleum industry operations.

    Other highlights of the bill is a provision in Section 26(3) where it gives the regulatory commission 10% cost of collection of revenues from other commercial agencies.

    ”The Commission shall establish and maintain a fund (‘the Fund’) from which all expenditures incurred by the Commission shall be defrayed. The NPRC is also empowered by the bill to spend ten percent of what it generates for its operations”, the provision added.

    The lawmakers rejected the controversial 10% Host Fund that led to disagreements among various interests in the past, leading to the long delay in the passage of the bill.

    The Senate deferred work on the Host Community Fund and fiscal aspect of the bill till a later date.

    Alasoadura said the bill would create more jobs for Nigerians and foster a conducive business environment for petroleum operations when signed into law.

    According to him, the bill promises immense benefits for local operations in the petroleum industry.

    He added that with the bill, it will become illegal to employ foreigners for certain skills that can be sourced locally.

    “And even where such skills are sourced from abroad, due to unavailability locally, it would be mandatory for Nigerians to understudy such an expatriate,” he added.

    The senator said the PIB would not only enhance exploitation and exploration of petroleum resources, it will increase power generation and industrial development capacity through abundant  domestic gas supply.

    The law will also create profit-driven oil entities, encourage investment in the petroleum industry and tremendously increase the government’s revenue.

    “Government revenue from oil industry will increase. This means more funds in the hands of government to engage in developmental activities. The downstream sector will become fully deregulated. In other words, subsidy will be totally removed.”

    The envisaged law, Alasoadura continued, will also bring about a fully deregulated and liberalised downstream petroleum sector, create efficient and effective regulatory agencies and promote the development of Nigerian local content in the oil industry.

    Said he: “Besides, emphasis on local content will not only be in the area of skills, but would also be applicable to material sourcing. This means more jobs for Nigerian local contractors, especially those from the oil producing regions.”

    “The PIB vests ownership and management of all petroleum resources, offshore or onshore, in the Federal Government of Nigeria, which is to manage them on behalf of all Nigerians.

    “This means that irrespective of where the oil is found, it belongs to the government of Nigeria. Of course, equity calls for special consideration for localities where the resources are mined. This is taken care of by the revenue sharing laws and other provisions of this Bill, like the Host Community Fund.”

    The lawmaker also stated that since gas is still under-focused in Nigeria and its potential as a source of energy untapped, the PIB seeks to maximize the benefits of the nation’s gas resources.

    He added that the PIB will also lead to the establishment of the Nigeria Oil and Gas Investment Pact Scheme (NOGIPS), which will ensure that components of the oil industry equipment can be manufactured locally.

    According to him, the envisaged law provides for the protection of health, safety and the environment in petroleum operations.

    Senate President Bukola Saraki described it as the first segment in the passage of the bill.

    The Senate, he said, will ensure the opening up of the petroleum sector, and by extension, the economy of the country on a tripod of transparency, efficiency and profitability for both the government and players in the field.

    Saraki said the passage of the first tranche of the bill was a landmark achievement for the 8th Senate.

    He said the Senate made a commitment at its inauguration and was happy to keep to its promise.

    “All our friends and investors in the petroleum sector have been waiting for us to put a framework that will ensure transparency and accountability and create the enabling environment for the petroleum sector.

    “We hope that by what we have done today, we have continued to show commitment and leadership and our contribution to develop this country. We are proud of all we have done today.

    “I hope that with this bill the oil and gas industry will begin to see the kind of investment that is necessary,’’ he said.

    Saraki said with the passage of the bill, “we will block loopholes, we will be able to reduce the areas of corruption, inefficiency and our people will be able benefit better from the petroleum sector’’.

  • NNPC in $6b oil swap deal

    NNPC in $6b oil swap deal

    State-run oil firm, the Nigerian National Petroleum Corporation (NNPC) is set to sign a $6 billion deal to swap more than 300,000 barrels per day (bpd) of crude oil for imported petrol and diesel, it was gathered yesterday.

    According to Reuters, the contracts, which come three months later than expected, include three more pairs of firms than last year, reflecting the country’s increased reliance on NNPC for fuel imports to run the local economy.

    A lack of local refining capacity means the country is reliant on imported gasoline, kerosene and other petroleum products, and the oil price crash and militant attacks on  oil industry have starved independents of dollars for fuel imports.

    At least four of the 10 groups have signed contracts, set to begin from July 1, with the rest expected to do so today, sources with direct knowledge of the process confirmed to Reuters.

    The NNPC, which is due to approve them by the end of the week, did not immediately respond to a request for comment.

    The fuel quality in the final agreements was not immediately clear, but July 1 is the same deadline the country set for switching over to higher quality, lower-sulphur fuels that create less toxic fumes.

    Sulphur levels were a major sticking point in the negotiations. The Ministry of Environment and the Standards Organisation of Nigeria (SON), the body responsible for setting requirements for imported goods, promised a switch to 150 ppmgasoline and 50 ppm diesel.

    Some sources said the new standards would be applied. Others reported that three different gasoline specifications – 1,500 ppm, 500 ppm and 150 ppm – would all be included in the contracts, giving NNPC options on which to import.

    This year’s deal includes international trading houses, not just oil refineries. The 2016 contracts included only companies with refineries in an effort to cut out middlemen.

    The latest list contains several firms from last year, including Varo Energy, SocieteIvorienne de Raffinage (SIR), Total and Cepsa. Italy’s ENI and India’s Essar, which won 2016 contracts, are absent from this year’s list. Socar and Mercuria are new additions.

    The contracts were initially planned to begin in April but last year’s swap deals were extended at least twice to give NNPC more time to negotiate. NNPC had previously said this year’s contracts would exchange up to 800,000 bpd of crude oil, though at some 40 percent of peak exports that target was seen by markets as unlikely.

    NNPC has been forced to ramp up its own fuel imports to around 80 per cent of Nigeria’s consumption, according to figures from the company and oil traders.

  • Senate orders CBN, NNPC, others to submit budget proposals

    Senate orders CBN, NNPC, others to submit budget proposals

    The Senate yesterday ordered  the Nigeria National Petroleum Corporation, Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS)and 35 other Federal Government agencies to submit their 2017 budget proposals for approval or risk sanctions.

    The upper chamber lamented that it was unbecoming that five months into the year, 38 statutory agencies of the Federal Government have failed to submit their budget proposal for the 2017 fiscal year.

    It said the agencies continued to make huge extra budgetary expenditure against the law establishing them.

    Deputy Senate Leader, Senator Bala Ibn Na’Allah (Kebbi South) drew the attention of the Senate   to what he described as the abnormality of the agencies to submit their budgets for the approval of the National Assembly.

    Na’Allah noted that it was wrong for agencies to spend money that has not been appropriated by the legislature.

    Na’Allah told the Senate that he intends to bring the issue to the floor as a motion so that Senators will understand the implications and the need to assist the government to fight corruption.

    He said: “I deliberately decided that I will bring it on the floor, so that Senators will understand the implications.

    “In our commitment to assist this government to fight corruption, we must stand on our feet that every spirit of our law must be obeyed by those holding public offices. I think that if you permit me I will like to come tomorrow by way of motion, so it can be debated on the floor of the Senate.

    “The only approach this Senate can take to assist this government in fighting corruption, is to insist that gross abuse of power and misuse of power must be stopped by every government agency. The only way we can build our institutions is to radically address the issue of abuse of power and misuse of power. I think that if you give me permission, I will like to bring it tomorrow as a motion.”

    Senate President, Dr. Bukola Saraki, who agreed with the submission of Na’Allah expressed displeasure over the failure by most government agencies to submit their 2017 budget proposals to the National Assembly for consideration and approval.

    Saraki condemned the practice where agencies of government spend money without statutory approval by the National Assembly.

    He ruled that the Senate would comprehensively debate the issue and take a resolution today.

  • Refining activities hit 10million barrel in Q1

    Refining activities hit 10million barrel in Q1

    The Nigerian National Petroleum Corporation (NNPC), on Tuesday said that following the peace initiative in the Niger Delta, refining activities in Port Harcourt, Warri and Kaduna increased to 10million barrels of crude in the first quarter this year as against 8million and 24million barrels for the entire years of 2015 and 2016 respectively.

    Its Group Managing Director, Dr. Maikanti Baru, disclosed this in Abuja during an interactive session with a delegation from the United Kingdom Royal College of Defence Studies.  

    Baru, who was represented at the event by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed stated that apart from the upbeat in the refineries activities attributable to the peace initiative which has lowered the rate of attacks on oil installations, the corporation has recorded increase in crude oil production to 2million barrels per day in recent times.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu who made this known in a statement, quoted him as saying: “As a nation, we have tried all available options, including military, to tackle the security challenge. We have discovered that guns are not as effective as the engagement option. The peace we are enjoying now is as a result of the engagement with stakeholders in the region led by the Acting President. We intend to build on that to achieve a lasting peace.”

    Dr. Maikanti Baru said having been satisfied with the prevailing respite in the Niger Delta which has engendered a conducive environment for oil and gas production operations in the past few months, the Nigerian National Petroleum Corporation (NNPC) would do all it could to build on the gains of the Federal Government engagement with stakeholders in the region to deepen and sustain the peace.

    Speaking earlier, the team lead of the UK Royal College of Defence Studies delegation, Major General Craig Lawrence, said the group was in NNPC to learn how the corporation was generating wealth and prosperity for the country in the face of daunting challenges.

    He thanked the management of NNPC for sparing the time to explain to the delegation the workings of the corporation.

    Members of the delegation included United Kingdom, France, Pakistan, and Thailand nationals, among others.

  • NNPC vows to resume oil search in Chad Basin

    NNPC vows to resume oil search in Chad Basin

    …plans to hit 3million bpd

    The Nigerian National Petroleum Corporation (NNPC) will resume oil exploration activities in the Chad Basin of the Country.

    The projection came on the heels of improved security situation in the North-East of the country which had been devastated by insurgent upheavals.

    Group Managing Director of the Corporation, Dr. Maikanti Kacalla Baru made this disclosure yesterday during a courtesy visit to the Governor of Borno State, Hon. Kashim Shettima and the Shehu of Borno, Alh (Dr.) Abubakar Ibn Umar Garbai El-Kanemi, in Maiduguri.

    According to a statement that the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu issued on Monday, Baru said that: “We have been discussing with military authorities in the area and they have assured us of improved security. Once they give us the green light, we would resume operations in the area within six weeks.”

    The statement noted that it was the Chief Operating Officer, Gas & Power, Engr. Saidu Mohammed, that represented him in the visit.

    Baru informed the Governor that NNPC was keen on increasing its production from 1.9million bpd to 3million bpd as well as increasing its oil and gas reserves, a target that necessitated exploring for more oil within and across some of the nation’s inland basins.

    The GMD commended the efforts of President Muhammadu Buhari as well as the state Governor in the area of peace restoration, reconstruction and rehabilitation, stressing that as a responsible corporate citizen, the Corporation was ready to provide support in that regard.

    At the Shehu of Borno’s Palace, the GMD sought the fatherly support of the traditional ruler especially in the area of host community understanding towards the resumption of oil exploration activities within the State.

    The Corporation also presented relief items to the Shehu for onward delivery to the Internally Displaced Persons (IDPs) in the state.

    Earlier in his remarks, Governor Kashim Shettima said the insurgency had taken a huge toll on the North East region leading to the loss of over $9.6bn, with Borno state alone losing $5.6bn.

    “We need your support in our reconstruction and rehabilitation efforts so that when the history of the new Borno is written, NNPC’s name will be written in gold,” he stated.

    He stressed that much as the International donor agencies and good-spirited organisations like the NNPC were keen on helping the IDPs, the state’s ultimate target was to resettle the IDPs in their various communities.

    Also responding, the Shehu of Borno, Alh. (Dr.) Abubakar Umar Garbai El-Kanemi, thanked the NNPC Management for identifying with the Borno people, stressing that the Corporation should do more for the betterment of Nigerians.

    He expressed his happiness over the peace being enjoyed across the State now and the entire North East, stressing that in the nearest future, “Borno people will survive the onslaught of the insurgency.”

  • NNPC to resume oil prospecting in Lake Chad

    NNPC to resume oil prospecting in Lake Chad

    The Nigerian National Petroleum Corporation (NNPC) said it will resume oil prospecting in the Lake Chad Basin of Borno.

    The Group Managing Director of NNPC, Dr. Maikanti Baru, disclosed this when he visited Borno State Governor, Kashim Shettima, at the Government House in Maiduguri on Monday.

    Baru was represented at the occasion by the NNPC Chief Operations Officer, Mr. Saidu Mohammed.

    He said the corporation had concluded arrangement to mobilise heavy and sophisticated equipment to resume oil prospecting in the Lake Chad Basin.

    He said the resumption, which would be done in the next six or eight weeks, was based on the military’s assurance to provide adequate security in the area.

    Baru said the move was due to the present relative peace in the state and the degrading of Boko Haram insurgents in the North East region.

    The NNPC GMD said, “We are here in Borno to express our full alignment to the ongoing reconstruction, rehabilitation and resettlement in all the liberated communities.

    “Therefore, NNPC is seeking where it can come in and assist because the rate of devastation is worrisome.

    “We are also in the state to inform you that in the next six weeks, we are going to redeploy our team of experts back to Maiduguri to resume oil exploration with better technology in the Lake Chad Basin.

    “This is necessary with our renewed efforts in harnessing oil and gas and power to increase the economy of the nation in line with the agenda of President Muhammadu Buhari on job creation and economic diversification.”

    Shettima commended the team for the visit and the NNPC’s resolve to resume oil exploration in the region.

    The governor said his administration would partner with corporation to actualise the mission.

     

    NAN