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Tag: NNPC

  • NNPC eyes 4,000Mw of electricity

    NNPC eyes 4,000Mw of electricity

    The Nigerian National Petroleum Corporation (NNPC) will generate about 4, 000 megawatts (Mw) of electricity over the next 10 years to boost power supply in the country.

    Its Corporation’s Chief Operating Officer (COO), Gas and Power, Engr. Saidu Mohammed, who spoke at the 2017 retreat of the Autonomous Business Unit (ABU), Gas and Power, in Kaduna, said this would be achieved through building independent power plants.

    Mohammed said the power plants would be built between the next three and 10 years by incorporated joint venture companies that would involve NNPC, international power companies and other local Iniestors to be structured after the Nigerian Liquefied Natural Gas (NLNG) business model.

    “Power generation is a big business. As at today, NNPC has interest in two power plants, one in Okpai, Delta State and the other in Afam, Rivers State, which were respectively built by our Joint Ventures with Nigerian Agip Oil Company (NAOC), and Shell Petroleum Development Company (SPDC). These two power plants collectively generate up to 1,000Mw and they are the most reliable and cheapest source of power to the national grid in Nigeria today,”  Mohammed was quoted to have said in a statement.

    He said plans were underway to commence Okpai Phase 2 Power Plant and that other JV power plants such as Obite & Agura would also be progressed soon to boost power generation in the country.

    The NNPC COO noted that the new thinking involved the extension of the Corporation’s major gas pipeline infrastructure into a robust network to connect various parts of the country, adding that implementation of the Ajaokuta to Abuja-Kaduna-Kano (AKK) extension has progressed.

    Mohammed said: “The main base-loads to justify such infrastructure are power plants that would consume the gas and for that, we are planning to build about 2,000 to 3,100 megawatts, combined, in these three cities.

    “The partnership will involve players who will bring in their various capacities as operators, builders of power plants and as investors. NNPC will also bring its strength of being a dominant player in the Nigerian gas value chain.”

  • NNPC to contribute 4,000mw to national grid within 10 years

    NNPC to contribute 4,000mw to national grid within 10 years

    The Nigerian National Petroleum Corporation (NNPC) says it will generate about 4,000 megawatts of power in the next 10 years to boost power supply in the country.

    The Corporation’s Chief Operating Officer, Gas and Power, Mr Saidu Mohammed, made this known in a statement signed by NNPC Group General Manager, Public Affairs, Ndu Ughamadu, on Monday.

    Mohammed said the corporation would achieve this by building independent power plants over the next three to 10 years.

    He said that the power plants, which would be built with Joint Venture Companies, international power companies and Nigerian investors, would be structured after the Nigerian Liquefied Natural Gas business model.

    “Power generation is a big business. As at today, NNPC has interest in two power plants, one in Okpai, Delta State and the other in Afam, Rivers State.

    “Both were built by joint ventures with Nigerian Agip Oil Company and Shell Petroleum Development Company.

    “These two power plants collectively generate up to 1,000 megawatts and they are the most reliable and cheapest source of power to the national grid in Nigeria today,” Mohammed said.

    Mohammed said in order to make up the 4,000 megawatts, plans were underway to build Okpai Phase 2, Obite and Agura power plants to boost power generation in the country.

    He said that the corporation had commenced the extension of its major gas pipeline infrastructure on Ajaokuta-Abuja-Kaduna-Kano axis and other robust network to connect various parts of the country.

    “The main base-loads to justify such infrastructure are power plants that would consume the gas and for that, we are planning to build about 2,000 to 3,100 megawatts, combined in these three cities.

    “The partnership will involve players who will bring in their various capacities as operators, builders of power plants and as investors.

    “NNPC will also bring its strength of being a dominant player in the Nigerian gas value chain,” he said.

    He said NNPC had developed capabilities in processing, transportation and marketing of gas for export and domestic utilisation, adding that the nation’s gas resources could change Nigerian economy for the better.

    “If you generate enough power, the multiplier effect will revive most of the moribund industries across the country.

    “NNPC intends to capture 50 per cent of the gas market by growing the Nigerian Gas Marketing Company from the 500 million standard cubic feet/day of gas that it is today to about 3-4 billion standard cubic feet/day in the next 10 years,’’ he said .

  • (Updated)Missing N11bn petrol: Capital Oil wants account reconciled with NNPC

    (Updated)Missing N11bn petrol: Capital Oil wants account reconciled with NNPC

    Ifeanyi Ubah, the chairman of Capital Oil and Gas Industries Ltd has called for a reconciliation of the company’s account with the Nigerian National Petroleum Corporation (NNPC).

    Ubah, made the call on Sunday in Lagos, in the wake of the allegation by the NNPC that his company could not account for 100 million litres of petrol stored in its depot in Lagos. The NNPC similarly accused the MRS, but said the company had returned 30 million litres that it initially diverted.

    Ubah described the allegation against his company as mischievous and misleading.

    Ubah said the NNPC also failed to tell the public that it also owed Capital Oil billions of Naira from their mutual business transactions.

    The NNPC had on March 17 said that it would take full measures to recover about N11 billion worth of Premium Motor Spirit (PMS) which it stored in the facilities of Capital Oil and Gas Ltd in Lagos.

    “It is normal for parties in businesses to owe each other in business relationships and that if reconciliation is carried out with the NNPC, the firm will find out that there may be very little or nothing for Capital Oil to pay the corporation.

    “In the last four months, NNPC has borrowed products running into millions of litres from Capital Oil,’’ Ubah claimed in a statement made available to the News Agency of Nigeria (NAN).

    He said the management of NNPC should have called for account reconciliation by both parties before forging ahead to issue a false statement alleging his company was owing the NNPC N11 billion.

    Ubah said the NNPC should stop trying to use the media to kill him.

    “We have an ongoing relationship and we need to sit down and reconcile our accounts.

    “NNPC has a subsisting contract with our company which is on throughput basis. The corporation has consistently been in breach of our contractual agreement by owing us money for services rendered.

    “Payments from NNPC for services rendered by our company has consistently been delayed for periods spanning over one year and remains unpaid till date.

    “Currently, NNPC owes us for services rendered to the corporation at very critical periods to salvage nationwide fuel scarcity since 2015 (more than two years now), amounting to millions of dollars and billions of Naira,’’ it said.

    “The corporation has failed to deliver products to us which were duly paid for.

    “It is instructive to note that Capital Oil and Gas has trucked out over seven billion litres of petroleum products for the NNPC over the last few years making us their biggest partner in the downstream sector of Nigeria’s Oil and Gas Industry.

    “We have written the NNPC severally, requesting for our outstanding payments and delivery of products duly paid for by us.

    “Rather than honour our request, we are shocked that the corporation has resorted to this needless campaign of calumny, while refusing to make payments and deliver our products to us till date.’’

    Ubah said the company respected the fact that NNPC was its biggest partner in the downstream sector and had always stood by the corporation, especially in times of product scarcity.

    “We have proudly rendered intervention services at all critical times in the life of our nation.

    “It is on record that few months ago, when the same NNPC had a serious break in its supply chain and in a bid to avert an imminent national scarcity, Capital Oil and Gas Industries Ltd lent the corporation millions of product to close the gap.

    “It is our sincere hope that the corporation will respect our contract with it by paying all outstanding bills as well as deliver cargoes which have been duly paid for by us to end this situation.

    “We view this as a deliberate attempt to stifle our business bearing in mind that in spite of its unfair treatment, we still manage to retain thousands of employees in this critical period of the nation’s economy where even banks and multinationals are retrenching.

    “This act of strangulation has been reported by our company to the Nigerian Senate in a petition against the NNPC that was read on the floor of the Senate on Wednesday, 8th of March 2017.

    “A similar petition was also submitted to the Economic and Financial Crimes Commission (EFCC) as well as the Department of State Services (DSS),’’ the statement said.

  • NNPC to intensify anti-corruption drive, says Baru

    The Nigerian National Petroleum Corporation (NNPC) has pledged to strengthen the anti-graft war across its value chain to ensure efficiency and optimisation of resources.

    The NNPC Group Managing Director, Dr Maikanti Baru, said this on Thursday in Abuja in a statement signed by Mr Ndu Ughamadu, the corporation’s Group General Manager, Group Public Affairs Department.

    Baru was speaking when he received a delegation of Anti-Corruption Academy of Nigeria ( ACAN ) in his office.

    According to Baru, the NNPC, as an entity that supports anti-corruption, has appropriate sanctions against staff found to have flouted established process and procedures.

    He said the Corporation would work with the management of ACAN, the research and training department of the Independent Corrupt Practices and other Related Offences Tribunal, ICPC, to sustain its age-long tradition.

    ”We have retired some members of staff and meted out penalties on others who flouted our process.

    ”NNPC was the first agency of government to form an in-house anti-corruption committee soon after the proclamation of the ICPC Act.

    ”This action shows our commitment to transparency and openness in all we do; it also shows our zeal to ensure that our staff imbibe the culture of fighting corruption,” the NNPC boss said.‎

    He said that the Corporation’s anti-corruption posture had been accentuated with the monthly publication of NNPC financial and operational report in national newspapers, on the NNPC website and other online news portals.

    Baru said that the Corporation was prompt in its remittance of oil and gas revenues into the Federation Account.

    He also said that the corporation had embraced the practice of conducting open public bid exercises in sourcing service providers and suppliers for operational requirements.

    ”These open bid exercises are usually covered live by major television networks in the full glare of representatives of the bidding companies.

    “Officials of the Department of Petroleum Resources, the Nigerian Extractive Industries Transparency Initiative, the Nigerian Content Development and Monitoring Board, Civil Society Organisations and independent assessors are always present at such bids.

    ”The NNPC is undergoing reforms anchored on full activation of the 12 Business Focus Areas, BUFA, with the cardinal philosophy of engendering an efficient first class oil and gas entity with clear-eyed gaze at transparency and accountability,” he said.

    In his remark, Prof. Sola Akinrinade, Provost of the Academy, said ACAN was ready to help the Corporation to boost its anti-corruption quotient with apt capacity building sessions for staff and management

  • Subsidy fund: Senate to probe alleged irregularities by NNPC, marketers

    Subsidy fund: Senate to probe alleged irregularities by NNPC, marketers

    The Senate said it had concluded arrangements to probe the Nigerian National Petroleum Corporation (NNPC) and Independent Marketers over alleged irregularities in the subsidy fund.

    Chairman, Senate Committee on Petroleum Downstream, Sen. Kabiru Marafa, said this on Sunday while briefing newsmen in Abuja.

    According to Marafa, the NNPC has failed to justify to satisfaction the near N5.2 trillion spent on subsidy importation of petroleum products from 2006 to 2016.

    “This sum is in addition to the 445,000 barrels of crude oil for domestic consumption. This is more than the annual budget of Nigeria,” he said.

    “We note allegations already brought to our attention concerning the importation of Automotive Gas Oil (AGO) under various import contracts wherein hundreds of millions of litres of AGO have been imported and allocated to choice marketers at discounted values,” he said.

    The Chairman added that the committee had also established the disappearance of 100 million litres of Premium Motor Spirit (PMC) worth N14 billion kept in the custody of two companies.

    He said the committee would invite NNPC past and present executives, Heads of Operations and Planning and Desk Management Officers responsible for purchasing of products sold to Nigeria.

    “It is pertinent to stress that where invitees failed to cooperate with us, then adequate sanctions shall be carried out ranging from publishing of names of industry news providers.

    “Where relevant reward and incentives will be available to support the courage of members of the public who come forward,” he said.

    Marafa said that the committee would also implement its own Whistle Blower platform to enable it get information on corrupt practices.

    He said that the committee would conduct a three-day public hearing on the matter.
    Also speaking, Chairman, Senate Committee on Upstream, Sen. Tayo Alasoadura, said it was very important that the License Inspection Agency also appeared before the committee.

    “This is because they were hired by the Federal Government to ensure that Nigeria was not cheated in any way on items imported into the country.

    “If we had introduced little efficiency, we will not be having these irregularities,” he said.

    He said that everybody involved should be ready to give account of what had been put in his care.

    “People who have been taking this country for granted will be brought to book,” he said.

    Similarly, Chairman, Senate Committee on Gas Resources, Sen. Albert Bassey, said that the investigation would be very exhaustive.

    “We understand the failure of past investigations. We assure Nigerians that we are working to protect the collective interest of all Nigerians.

    “We are not out to witch-hunt anybody but to hold people accountable,” he said.

  • Pipeline Vandalism: NNPC again appeals to Niger Delta militants

    Pipeline Vandalism: NNPC again appeals to Niger Delta militants

    The Group Managing Director of  Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, has appealed to militants in the Niger Delta to stop attacks on oil facilities.
    Baru made the appeal at the 26th edition of the Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum (OLEF) on Thursday in Abuja.
    According to him, with Nigeria’s enormous reserves in gas as the 9th largest in the World, unemployment and infrastructural challenges can be tackled but the disruptions are crippling activities like power generation.
    “On this note, I will like to use this medium to appeal to the militants in the Niger Delta to stop the attack on pipeline infrastructure to enable us sustain our plan and grow the industry for the benefit of all Nigerians.
    “Gas pipeline vandalism has been the most disruptive challenge to supply across the country, but more recently in the West.
    “The Trans-Forcados crude oil pipeline (TFP) has been the major victim of attacks, so also the ELPS gas pipeline has seen surprising increase in attacks.
    “As we speak today, there is enough gas to generate about 4,800 megawatts and 6,000 megawatts by second quarter of 2017, based on our gas supply plan.
    “However, the power sector is presently struggling to evacuate 4,500 megawatts power due to DISCOs’ incessant rejection of allocated load and transmission line constraints,’’ he said.
    Baru said that interventions in the sector yielded results on Feb. 2, 2016 as a record high peak generation of 5,079 megawatts (86 per cent thermal) was attained, but that incessant attacks on pipelines significantly affected gas supply.
    He said that in spite of challenges, NNPC was committed to ensuring adequate gas supply to meet Nigeria’s industrial growth.
    He said that strategic repositioning of the sector was ongoing to support massive gas-based industrialization to place Nigeria as the regional hub for gas-based industries such as fertilizer, methanol and petrochemicals.
    “The first of this effort is the planned 30 square-kilometre Gas Revolution Industrial Park in Delta which will be Africa’s largest gas industrial park, supporting gas-based industries.
    “Also, we have successfully completed a pilot programme to introduce natural gas as fuel for transportation through Compressed Natural Gas (CNG).
    “Today, over 4,000 cars, mostly commercial taxis, run on natural gas in Benin, served by a network of six gas-filling stations. We are currently extending the CNG initiative to other parts of the country.
    “Apart from the obvious environmental benefits, use of gas in transportation is cheaper; taxi drivers save significantly on petrol cost as CNG is sold at 46 per cent of the price of petrol.’’
    The GMD said that CNG was not only cheaper but was neater, cleaner, pilferage-free, burned cleaner and had become the fuel of choice for power globally.

    Speaking to journalists shortly after his remarks at the lecture, Baru said that the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunsogo (31km), Imo River-Alaoji (24km), Ukanafun-Calabar (128km) had been successfully implemented.

     

    He added that strategic East-West Obiafo/Obirikom to Oben (OB3) pipeline (127km), looping of the Escravos-Lagos Gas Pipeline System from Warri to Lagos and Ajaokuta-Abuja-Kaduna-Kano pipeline (650km) were currently ongoing and at various stages of completion. (NAN)

  • Senate probes NNPC for alleged N5.1tr subsidy fraud

    Senate probes NNPC for alleged N5.1tr subsidy fraud

    THE Senate has initiated probe into an alleged N5.1 trillion fuel subsidy fraud, believed to have been stolen by some Nigerians in connivance with top officials of the Nigeria National Petroleum Corporation (NNPC) between 2006 and 2016.

    At plenary yesterday, the Senate alleged the NNPC failed to remit the funds into the Federation Account.

    In a motion sponsored by Senator Dino Malaye (Kogi West), the lawmakers said some corrupt Nigerians were hiding the funds in caskets, uncompleted buildings and in remote villages in different parts of the country.

    “Monies are not accounted for and that might be the reason why we now see petro-dollars buried in caskets and uncompleted buildings in remote villages in some parts of the country,” Melaye said.

    He drew the attention of the Senate to the continued refusal of the Federal Government to probe the NNPC, which he said got 51 per cent share of imported petroleum products into the country.

    Petroleum product marketers, some of who are facing trial for alleged subsidy fraud, were responsible for the remaining 49 per cent of the importation of the products.

    The senator observed that it was the Senate President, Bukola Saraki, who raised the alarm over subsidy fraud in the Seventh Senate, wondering why the government was trying only marketers.

    “While we are prosecuting the independent marketers, whose proceeds from subsidy stood at N3.83 trillion, the NNPC collected a total of N5.1 trillion on subsidy and this has never been investigated…

    “We have taken the lead in the fight against corruption in this chamber and I want to say we must do everything within our powers to investigate and bring whoever is found wanting to book,” Melaye said.

    Saraki noted that the alleged subsidy fraud was a serious matter, saying that it goes to the core of the fight against corruption, particularly as it affects the NNPC.

    At the end of the debate, the Senate mandated its Committee on Petroleum (Downstream) to investigate the NNPC’s accounts relating to fuel subsidy and the abuse of product marketing and distribution between 2006 and 2016.

    Saraki said: “A situation where individuals do what they like and are not accountable to anybody should be stopped. The committee should do a thorough job and ensure that they get to the root of this issue. It borders on the issue of corruption, which has been affecting the country negatively.”

  • NNPC calls for tariff harmonisation of non-oil products

    Chief Operating Officer, Upstream, Nigeria National Petroleum Corporation (NNPC), Dr Bello Rabiu, has called for the harmonisation of tariffs on non-Economic Community of West African States (ECOWAS) goods to promote cooperation on non-oil exports.

    Rabiu spoke during the panel session of West African International Petroleum Exhibition and Conference (WAIPEC) organised by the Petroleum Technology Association of Nigeria (PETAN) in Lagos.

    At the session titled: How Nigerian and West African market can better compete in a weak and disruptive oil market, he noted that the harmonisation would counter the effects of smuggling across  borders in the subregion.

    Rabiu, who was represented by Dr Siky Aliyu, managing director, National Engineering and Technical Company (NETCO), said the harmonisation would spur coastal countries to make their ports preferred import destinations to attract more trade flows and revenue.

    “It will promote trade among West African countries and by extension ECOWAS can forge partnerships with Europe, Asia, among for the export of their agricultural produce. There is need to diversify the West African economy base to be able to handle shocks caused by oil prices.

    “In terms of economic and trade cooperation among ECOWAS countries, the recently-proposed Niger-Kaduna Refinery crude export pipeline offers a panacea for landlocked West-African countries and such should be promoted as it acts as an alternative source of crude supply to an existing ready market.

    “Similar infrastructure running from Chad to Cameroun’s Atlantic coast is in operation,” Rabiu said.

    He also said there was a need for new investment in refining capacity to grow and sustain internal consumption and promote external trade among West African countries, adding that there were plans to increase capacities in Nigeria, Ivory Coast and Niger Republic. With regard to Nigeria, it is private-sector led – Dangote Refinery, which is proposed as a 650,000 barrels of oil per day (bopd) in Lekki, Lagos.

    “Aside this, NNPC’s plan is to rehabilitate, revamp and upgrade all existing refineries to ensure that by 2019 there would be no more product import. Similarly, we are supporting the concept of condensate refineries to refine more condensates in-country,” he added.

    According to him, based on the foregoing, it is imperative that we  balance high crude output with high refining capacities to reduce import costs and charges, export charges, subsidy payments, among others.

    “This will effectively position us to get more value from the crude fraction as opposed to a single price value for the crude alone. It will also ensure that we are less exposed to market fluctuations and then give us control of products marketing and supply. As we reduce reliance on imported refined products, we would be more competitive,’’ Rabiu added.

  • NNPC subsidiary denies responsibility for explosion at NLNG

    NNPC subsidiary denies responsibility for explosion at NLNG

    Integrated Data Services Limited, IDSL, a Subsidiary of Nigerian National Petroleum Corporation, NNPC, has explained that it was not responsible for the pipeline explosion which occurred Friday at a Nigeria Liquefied Natural Gas Limited, NLNG, pipeline in Emohua Local Government Area, Rivers State.

    IDSL said its operation crew which was engaged in acquiring seismic data for SPDC in Oil Mining Lease, OML, 17/22 ROBO 3D prospect, observed approved safe distance standards contained in the Department of Petroleum Resources’, DPR, regulations and as such could not be the cause of the blast.

    The IDSL, according to a statement that the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement yesterday said that:“Our activities involve the use of seismic explosives of size 2kg and detonators. The drilled and exploded depth is 45 metres. At this depth the effect on the surface cannot affect any structure.

    “The suspected gas leakage on the gas pipeline between Eveku and Rumodogo 1 communities in Emohua Local Government Area of Rivers State of February 22, 2017 was not caused and cannot be caused by NNPC, IDSL Party 05 seismic operations. Our closest activity around the incident area yesterday was 798 metres away from the pipeline”, IDSL stated.

    As a responsible corporate body, IDSL’s crew on operation in Emohua Local Government Area observed, to the letter, DPR’s regulations governing such activities which include: maintaining a minimum distance of 25 metres from tarmac roads, 50 metres from houses, 100 metres from pipelines, and a minimum distance of 200 metres from well heads or oil wells.

    IDSL crew was 798 metres away from the exploded pipeline.

    Relevant authorities in Rivers State have been informed of the incident.

  • NNPC saves 71.7% in deep offshore rig rate

    NNPC saves 71.7% in deep offshore rig rate

    The Nigerian National Petroleum Corporation (NNPC) has renegotiated its deep offshore rig rate from a staggering $580,000 to $164,000 per day, saving the country a 71.7 per cent cost of executing a similar operation in the past.

    Similarly, the Corporation has achieved a 35 per cent downward review of rig rates per day for both swamp and land operations in its portfolios.

    A rig rate is a major cost element incurred by an Exploration and Production (E&P) company in the course of drilling for oil or gas in deep offshore, shallow offshore, swamp, land areas or basins.

    Speaking yesterday in Lagos at the 14th Annual Aret Adams Memorial Lecture, Dr Maikanti  Baru, who was represented by the Chief Operating Officer, Gas & Power, Engr. Saidu Mohammed, said these reductions were also effected in NNPC’s Unit Technical Cost (UTC) over the period.

    The Group Managing Director, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement yesterday, explained that  Baru declared that the various reductions serve as an incentive for investors to grow reserves, increase profitability and improve Return on Investment (ROI). He added that they also boost government revenue, thus improving government’s commitment to developmental projects across the country.

    “I am proud to announce that our UTC has significantly dropped from above $70 per barrel in 2014, to about $27 per barrel, as at year end 2016. Indeed, NNPC is committed to further driving down the UTC”, Dr Baru stated in a lecture titled: Find More, Produce More at the one-day event.