The Nation Newspaper

Tag: NNPC

  • NOA, Amnesty office partner to promote agri-business in Niger Delta

    NOA, Amnesty office partner to promote agri-business in Niger Delta

    The National Orientation Agency (NOA) and Amnesty Office in the Presidency have entered into a strategic partnership to promote agriculture and allied businesses among former militants in the Niger Delta region.

    The NOA Director General, Dr Garba Abari, and the Special Adviser to the President on Amnesty, retired Brig.–Gen. Paul Boroh, formalised the partnership at a meeting in Abuja.

    Abari said that the partnership was aimed at developing the new Federal Government policy of strategic engagement with the leaders and people of the region.

    He said that the project would result in increased federal revenue as well as ensure peace in the region.

    He encouraged the Amnesty Office to sustain its work in the region in order to achieve the Federal Government’s developmental goals in the region.

    According to him, the Amnesty Office must ensure the inclusion of youths in the region’s development plan for sustainability.

    “I encourage you to ensure the social inclusion of youths in the region because they have the advantage of age, strength, education and population.

    “About 67 per cent of our population is below the age of 35 years and every effort must be made to factor the youth into the national development policy.

    “NOA is willing to partner in the task of creating awareness on agriculture in the region because it has began a programme of promoting the “Eat What You Grow and Grow What You Eat” campaign,’’ Abari said.

    Earlier, Boroh said the Amnesty Office was focusing attention on the agricultural potential of the region.

    According to him, the partnership with NOA is designed to make agriculture an occupation of choice for the people of the area.

    He said that the Amnesty office would initiate other partnerships with other stakeholders, including the Ministry of Environment, Niger Delta Development Commission (NDDC), Nigeria Maritime Administration and Safety Agency (NIMASA) and NNPC, among others.

  • No plan to raise petrol price, says NNPC

    No plan to raise petrol price, says NNPC

    • UK supply cut pushes oil prices to $54

    The Nigerian National Petroleum Corporation (NNPC) said the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre will not lead to an increase in the N145 per litre pump price of petrol.

    Its Chief Operating Officer (COO) in charge of Downstream Operations, Mr. Henry Ikem Obih, who gave the assurance yesterday in Abuja, said there was no plan by the government or any of its agencies to review the pump price of petrol above N145 per litre.

    He explained that the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same template.

    The bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country, while lightering expenses involve charges for moving products to depot area  from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

    “What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So what the Petroleum Products Pricing Regulatory Agency (PPPRA) did was to take N1 from lightering expenses and add same to the bridging allowance. That is how we arrived at N7.20. Therefore, petrol remains at the ceiling of N145 per litre.”

    On the availability of product, he said as at today, the country had 1.3 billion litres of petrol which translated to an inventory of 36 days.

    “What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days,’’ he said.

    Obih noted that the supply availability was bolstered with the production of petrol from the three refineries located in Port Harcourt, Warri and Kaduna.

    “There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries, we have informed the Department of Petroleum Resources (DPR) to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

    Meawhile, oil rose to a near one-month high yesterday on signs of a gradual tightening in global oil inventories and on concerns about a supply cut at a field in the United Kingdom’s North Sea that feeds into an international benchmark price.

    Brent crude futures, the international benchmark for oil, were at $54.52 per barrel, up 35 cents, or 0.65 percent, from their last close.

  • No plan to hike petrol price – NNPC

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre will not lead to increase in the pump price of Premium Motor Spirit (PMS), also known as petrol, from the prevailing price of N145 per litre.

    The Chief Operating Officer, Downstream operations in the NNPC, Mr. Henry Ikem Obih, said there was no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

    He said the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same template.

    Obih was quoted as saying in a statement issued by NNPC Public Affairs unit as saying “what happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So what the Petroleum Products Pricing Regulatory Agency (PPPRA) did was to take N1 from lightering expenses and add same to the bridging allowance. That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre.”

     

  • NEITI urges govt to recover $22b, N316b from NNPC

    NEITI urges govt to recover $22b, N316b from NNPC

    A report on the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries has shown that $22 billion is yet to be remitted to the treasury by the oil giant.
    The government should recover the cash, Nigeria Extractive Industries Transparency Initiative (NEITI) said yesterday.
    Its Executive Secretary, Waziri Adio, told reporters in Abuja at an interactive session that “audits of the oil and gas sector carried out by NEITI show that the NNPC and its upstream arm, Nigerian Petroleum Development Company (NPDC), have failed to remit $21.778 billion and N316.074 billion to the Federation Account”.
    Quoting from the report, Adio said the funds were due from three main sources, which he listed as:
    •federation assets divested to NPDC;
    •the company’s legacy liabilities payment for domestic crude allocation to NNPC; and
    •dividends from investment in Nigerian Liquefied Natural Gas Company (NLNG) paid to the NNPC.
    Adio claimed that the corporation had been withholding the funds.
    The unremitted funds, the NEITI chief added, fall under the categories of the full payment for the 12 Oil Mining Leases (OMLs) divested from Shell and Agip Ventures as well as NNPC divestment of 55 per cent of its stake in the Shell JV valued at $1.8 billion by the Department of Petroleum Resources (DPR).
    The audit revealed that cash calls amounting to $552 million were erroneously paid on these divested assets by the National Petroleum Investment Management Services (NAPIMS), the investment arm of NNPC.
    The NPDC was said to have refunded $424 million to NAPIMS, but the money was not remitted to the Federation Account.
    NEITI added that the NPDC was yet to refund $148.278 million and N2.42 billion from the cash calls mistakenly paid to it.
    It added that unremitted revenues in this category include arrears of liabilities of taxes, royalties and levies, leaving the amount owed by the NPDC at $5.531 billion and N72.435 billion.
    Adio said the NNPC explained that it withheld the funds to pay for downstream related operational costs and subsidies.
    But he said the explanation was doubtful since such withholdings regularly exceeded actual subsidy costs.
    Waziri called on the government to recover the money and use it to put the economy on a sound and sustainable footing.
    He added that the OMLs that had not been fully paid for should be retrieved from NPDC, revalued and auctioned to enable the country get proper value for them.
    The NEITI chief called on the government to investigate the status and use of NLNG dividends from 2004 to 2014. Criminal proceedings should be instituted against anyone found wanting, Adio suggested.

  • Tanker drivers’ strike paralyses loading activities in Lagos

    Loading activities at both private depots and the Nigerian National Petroleum Corporation (NNPC) depots in Lagos were on Monday paralysed as Petroleum Tanker Drivers (PTD) commenced a nationwide strike to press home their demands for enhanced welfare.

    Correspondents of the News Agency of Nigeria (NAN) who monitored the strike in Lagos observed that all tank farms in Apapa were empty, without the usual loading of products associated with depots.

    The Apapa depots visited included Total Oil and Gas, Capital Oil and Gas, NIPCO Oil and Gas, Aiteo Oil and Gas, Sahara Oil and Gas, Conoil, as well as Mobil Oil and Gas.

    The drivers were seen in groups discussing, while others were leaving the depots for unknown destinations.

    Alhaji Taofeek Lawal, the Head, Corporate Communications of NIPCO, Apapa told NAN that all depots in Apapa were empty as a result of the strike.

    According to him, there are no loading activities at present because the tanker drivers are on strike.

    He appealed to the National Association of Road Transport Owners (NARTO), PTD, NNPC representatives and other stakeholders to step in and find a lasting solution to the strike.

    Meanwhile, Alhaji Tokunbo Korodo, the South-West Chairman of NUPENG had told NAN that the Federal Government’s representatives were meeting with NARTO and NUPENG representatives, to resolve the matter.

    Korodo said that the outcome of the meeting would decide if the strike would continue or not.

    He, however, said that there was no distribution or loading of products in any part of the country.

    One of the depot officials who spoke on condition of anonymity, however, told NAN that the strike was uncalled for.

    He said that the tanker drivers should have resolved the problem with the truck owners, instead of resorting to go on strike.

    The depot official noted that the country had lost over N20 billion to the ongoing strike.

    NAN reports that the strike was as a result of some unresolved issues bordering on the welfare of workers, such as bad roads, poor remuneration, insecurity and the alleged excesses of some security agencies.

  • NNPC cautions Nigerians against adulterated petroleum products

    NNPC cautions Nigerians against adulterated petroleum products

    The Nigerian National Petroleum Corporation (NNPC) on Thursday in Abuja advised the public to be wary of adulterated petroleum products.

    The NNPC gave the advice in a statement by Mr Ndu Ughamadu, its Group General Manager, Group Public Affairs Division.

    According to Ughamadu, exercising caution by consumers could forestall explosion, knockdown of engines, equipment or any such other ugly incidents leading to death or injuries.

    “The call for caution becomes necessary following reports that products from vandalised pipelines, or adulterated products are being sold to unsuspecting members of the public.

    “This has led to untoward incidents involving consumers of petroleum products in parts of the country.

    “When in doubt of the quality of a purchase, consumers are advised to seek assistance from any offices of the Department of Petroleum Resources, DPR, NNPC depots or offices nationwide.

    “Products from NNPC depots are subjected to strict quality control to ensure that they are fit for use,’’ he said.

    Ughamadu urged motorists and other consumers of petroleum products to desist from panic buying.

    “The NNPC has over 32-day sufficiency for petrol and adequate volumes of diesel and kerosene to meet their demand,’’ Ughamadu assured.

    The Nigeria Security and Civil Defense Corps (NSCDC), in Anambra, recently arrested seven suspects with three articulated vehicles, carrying 110,000 litres of suspected adulterated petroleum products.

    The suspects were arrested between December 15, 2016, and January. 21

  • NNPC to transform into integrated energy company

    NNPC to transform into integrated energy company

    • Raises alarm over fake recruitment

    The  Nigerian National Petroleum Corporation (NNPC) said its ongoing reform is geared towards transforming the state-run oil firm into an integrated energy outfit with interest in power generation and transmission.

    Its Group Managing Director (GMD), Dr Maikanti Baru, who spoke at the 53rd International Conference and Exhibition of the Nigerian Mining and Geosciences Society (NMGS) in Abuja, said the oilf firm has identified opportunities in the power sector.

    In a paper titled: Challenges and Prospects for the Diversification of the Upstream, Downstream and Frontier Basin Exploration in the Oil and Gas Sector, Dr Baru said NNPC  was ready to take advantage of the power sector opportuniies. He said the firm will transform from being a gas supplier to the power sector into a major player.

    He said the Corporation was already working on a project to generate four Megawatts (4Mw) of electricity while also exploring the possibility of investing in the transmission segment of the  sector.

    In a statement yesterday, the GMD explained that the Corporation’s decision to diversify into the power sector was hinged on the need to bridge the huge energy gap in the market.

    He said contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was inadequate transmission capacity. He added that there was enough gas to generate eight gigawatts (8Gw) of electricity but the transmission grid cannot support such volume of power without complications.

    Baru also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region.

    He argued that getting the youth to form consortia to set up 1000 barrels per day (bpd) modular refineries would get them off criminality and create jobs.

    In the upstream, he said his goal was to accelerate frontier exploration and grow crude oil reserve to 40 billion barrels from the current 37 billion.

    He also challenged the geoscientists on the need to deploy more sophisticated technology and drill deeper than the current 13,000 to 15,000 feet in the Niger Delta to produce more oil.

    “We have to look deeper with intensive 3D and 4D seismic surveys over the so-called matured Niger Delta. The older, the better”, he declared.

    The NNPC also raised the alarm on the existence of some dubious syndicates with specialty in extorting money from unsuspecting members of the public under the pretext of a purported recruitment exercise and promise of phantom job placements in the Corporation.

  • PDP knocks EFCC over Oshiomhole

    PDP knocks EFCC over Oshiomhole

    The People’s Democratic Party (PDP) in Edo State has knocked the Economic and Financial Crimes Commission (EFCC)  for inviting former governor of Edo State, Comrade Adams Oshiomhole as a guest speaker to the National Anti-corruption Stakeholders’ Summit.

    It said the invitation of Oshiomhole showed that the country has a long way to go in the fight against corruption and akin to inviting the “devil to give a talk on holiness and sainthood”.

    State Publicity Secretary of the PDP, Chris Nehikhare, in a press statement issued in Benin City said Oshiomhole has over fifteen (15) pending petitions against him.

    Nehikhare said the party would avail the EFCC with relevant documents to prove their case against him if the Commission commenced investigation.

    According to the statement, “Oshiomhole has till this moment not told Edo people about the $54m he collected from the federal government in December 2014. Edo people and Nigerians only got to hear of that money because NNPC books were audited.

    “The only good thing that can come out of the just concluded seminar is for Oshiomhole to submit himself for full scale investigation. There can be no better way to start the anti-corruption war than inviting Oshiomhole to answer for his financial crime against the state.

    “We join others to urge EFFC to swing into action. No need for glamorous talk shows of anti-corruption with tainted characters. God help Nigeria.”

     

  • FG to include Illegal refiners in proposed modular refineries

    FG to include Illegal refiners in proposed modular refineries

    Local “illegal” refiners in the oil-producing communities maybe co-opted as shareholders in the Federal Government’s proposed modular refineries, a presidency source has disclosed.

    The source who preferred to remain anonymous said the Presidency and the Nigeria Sovereign Investment Agency (NSIA) are collaborating to realize the plan, in fulfilment  of promises made by  Vice-President Yemi  Osinbajo  during  his tour of the oil region, on behalf of President Muhammadu Buhari.

    The core of the plan is to integrate the illegal refiners, rather than a scorched-earth policy that seeks to eliminate the operations of such refiners.

    The source however explained that there were a number of significant hurdles to be crossed especially issues around the engineering and technical ramifications of such a conversion, besides figuring out the financial models that would be workable and profitable.

    “At a meeting late last week at the Presidential Villa, issues around technical and engineering implications of how to integrate the refiners were discussed with industry experts and practitioners making presentations on how to implement the Buhari presidency modular refinery initiative said to have been first proposed by Dr. Ibe Kachikwu, the Minister of State for Petroleum Resources.

    “At the meeting the experts reported that they have worked closely with the NNPC, Oil & Gas operators, owners of marginal fields, operators of refineries and various technical services providers “to develop a workable system to develop this initiative,’’ the source further disclosed.

    A modular refinery is a refinery made up of smaller and mobile parts-(skid-mounted)-that are more easily fabricated and can be more quickly transported to site. They come in different sizes with varying capacities normally lower capacity than conventional refineries with more elaborate and complex  set-up.

    “Under the plan being considered in the presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude.

    The source maintained that the new concept, when operational, would also prevent the environment degradation that the spills and damaged trunk lines have been causing.

    He said, the marginal field operators could also supply crude to the new modular refineries that would have the illegal refiners integrated.

    “Another important component of the plan under consideration is to involve the current illegal refiners and their communities as shareholders while the NDDC and the NSIA will also hold substantial holdings/equity sufficient to make the smaller refineries operational as a business and a going concern.

    “To facilitate effective community engagements, an MOU would be established under the plan with the affected communities determining the communities share, while the FG would supervise the implementation, which would be driven largely by industry operators and the communities,” the source added.

    When contacted, Mr Laolu Akande, Senior Special Assistant to the President, Media & Publicity, Office of the Vice President, confirmed that a meeting was held last week on the issue adding that “the Buhari presidency is actively working on all fronts to speedily deliver on its promise of a ‘new vision,’ in the Niger Delta”.

     

  • Crude swap: NNPC confirms settlement with Taleveras, others

    Crude swap: NNPC confirms settlement with Taleveras, others

    The Nigerian National Petroleum Corporation(NNPC) yesterday said it has reached a settlement agreement with Taleveras Group of Companies and two other companies involved in the $184 million crude oil swap.

    The others are AITEO Energy Resource Limited and Ontario Oil.

    NNPC commended Taleveras and other companies involved in the crude swap for reconciling their accounts and agreeing on a settlement plan to bring this long standing matter to a closure.

    Taleveras has committed to an initial prompt settlement of $17 million payment and will further make further payments in $10million tranches.

    Ontario is yet to submit its repayment plan, whilst AITEO  has reconciled its own, leveraging on its global business position with NNPC.

    The Group Managing Director of the Corporation, Dr. Maikanti Baru, told journalists in Abuja that the settlement agreement was a product of the ongoing extensive reconciliation process with the companies involved.

    A statement on the outcome of the meeting by the Group General Manger, Public Affairs, Ndu Ughamadu, quoted Baru as saying:  ‘’We have engaged them and positively too. So far, AITEO has been very cooperative and we had extensive reconciliation across all our chains of businesses where they are involved. In the case of Televaras, they have agreed to make tranche payment of $10 million, while Ontario has also agreed to come to the table with our team and present their repayment schedule.”

    He also said Taleveras has already pledged to repay $17m and thanked the company for their cooperation so far.

    The GMD said the ongoing recovery process is geared towards ensuring probity and accountability in the operations of the corporation in line with current reforms in the industry.

    Baru emphasized the determination of the NNPC under his leadership to recover the outstanding stock of its missing petrol in Capital Oil depot, noting that MRS had complied.

    Only last week, the NNPC announced aggressive measures to achieve full recovery of over 130 million litres of petrol stored in the facilities of two indigenous downstream operators, MRS Limited and Capital Oil & Gas Limited, under a throughput arrangement to ensure a robust strategic reserve.

    Providing details of the infraction by the companies, Mr. Henry Ikem Obih, NNPC Chief Operating Officer, Downstream, explained that the violation was discovered earlier in the year when the corporation had need to access the over 100 million litres of petrol stored at the Capital Oil & Gas depot for NNPC Retail and just over 30 million litres in MRS Limited depot all in the Apapa area of Lagos.

    He said though MRS had fully complied by returning the 30 million litres of petrol it expropriated, the corporation was working assiduously to recover from Capital Oil & Gas the 82 million litres of petrol, valued at N11bn, out of over 100 million litres.