Tag: NNPC

  • NNPC denies petrol price hike

    NNPC denies petrol price hike

    The Nigerian National Petroleum Corporation wishes to enjoin motorists in Abuja and its environs, and indeed the federation, not to engage in any panic buying of petroleum products.

    NNPC assures motorists that the Corporation has 1.3billion litres stock of PMS, otherwise called petrol, which is sufficient to serve the nation for more than 38 days.
    This was disclosed in statement of the Group Genetal Manager, Group Public Affairs Division, Nr. Ndu Ughamadu yesterday.
    This plea comes on the heels of reports that some motorists have begun panic buying of petrol, following rumours that the government is about to increase the pump price of the white product from N145 per litre.
    NNPC wishes to assure Nigerians that there is no iota of truth in the rumour that government is scheduled to adjust pump price of petrol.

    Indeed, with the resumption of production by the Corporation’s three refineries in Kaduna, Port Harcourt and Warri, complemented by imports, there is enough stock of PMS, Automotive Gas Oil (AGO), diesel and kerosene.

    This much was explained yesterday by NNPC Chief Operating Officer of the Refineries, Mr Anibor Kragha while briefing the Senate Committee on Petroleum Downstream in a presentation on the current status of the refineries at the National Assembly Complex in Abuja.

    In the presentation, Kragha told the legislators that the nation’s three refineries produced additional volumes of 4.6 million litres of kerosene and 7.7 million litres of diesel, in addition to millions of litres of petrol being refined daily at the nation’s refineries.

    The assurances of availability of stock by the NNPC Chief Operation Officer of the Refineries yesterday still stand.

  • IPMAN accuses NNPC of corruption

    IPMAN accuses NNPC of corruption

    • NNPC: it’s a baseless allegation

    Oil marketers have accused officials of the Nigeria National Petroleum Corporation (NNPC) of extortion during the loading of petroleum products at the depots.

    Port Harcourt, Warri and Kaduna Refineries resumed operations and have been pumping products to the depots.

    The Vice President, Independent Petroleum  Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Dankingari who accused the state-run oil firm in a telephone conversation, lamented that the NNPC officials were sabotaging Federal Government’s genuine intentions.

    But NNPC Group General Manager, Group Public Affiars Division, Mr. Ndu Ughamadu debunked the allegation also on a telephone.

    Dankingari stressed that kerosene was still sold at a cut throat price across the nation consequent upon the hurdles that the marketers were still required to cross at the depots.

    According to him, in all the three depots, marketers were required to present letters known as “Special Allocation from Abuja” to fast-track their loading while other independent marketers queued for the products endlessly.

    He also alleged that the depots managements were selective in their dealings by always loading NNPC retail outlets and major marketers.

    Dankingari accused the NNPC workers at the depots of extorting money from independent marketers before loading their trucks.

    Dankigari, who commended President Muhammadu Buhari and the Minister of State for Petroleum Resources on their efforts at operationalising the refineries, however warned that managers of the entities must not thwart government’s efforts.

    “All the three refineries are loading but the problem is that they are still engaged in sharp practices. They concentrate on loading major marketers and NNPC retail outlets.

    “They load only few products for IPMAN members both petrol, diesel and kerosene. But they concentrate on loading major and NNPC retail outlets. They give only few quantity to IPMAN. They will not even load our members until they have extorted money from them. Most of the products they are loading in the three depots at refineries are special allocations from Abuja.

    Ugamadu, who said NNPC was yet to receive any verbal or written complaints on the issue, promised a thorugh investigation on the matter upon receipt of any petition.

    He said: “The refineries are on and they are producing and releasing products for consumption. So, what they mean by special allocation, I don’t know.

    “All I know is that all our activities at the refineries are highly transparent just like the crude oil deal we did that day was highly transparent and it was televised live. So, I don’t understand what they mean by special allocation .

    “As far as all the refineries are concerned all their activities are transparent and highly computerised.

    “If we receive such complaint we are going to carry out a very thorough investigation. Nobody has complained to us either verbally or in writing.”

  • NNPC to fast-track repairs of vandalised pipes

    NNPC to fast-track repairs of vandalised pipes

    The Nigerian National Petroleum Corporation (NNPC) has promised to fast-track the repairs of all pipelines vandalised last year to ensure stable gas supply to thermal power plants for improved power supply.
    The Corporation made the commitment during a closed door meeting of operators and stakeholders in the power sector with the Minister of Power, Works and Housing, Mr. Babatunde Fashola, in Lagos.
    A communiqué issued after the meeting, which was made available to The Nation, noted that the NNPC stated that work was ongoing on the repairs.
    The report noted that the Okpai power plant in Delta State was the best performing thermal power plant last year while Shiroro was the best hydro power plant.
    The Transmission Company of Nigeria (TCN) said transmission projects in Shagamu, Ikeja West, Ajah, Ayobo, Omotosho, Agege and Ogba slated for completion between this April and end of this year, when completed, would improve power supply to Lagos State and environs.
    According to TCN, the completion of outstanding works at switch station in Akwa Ibom State, which was inaugurated in November last year, is imperative to take full advantage of added generation capacity to deliver incremental power.
    The TCN said the capacity of the grid is dynamic and with the inauguration of Ikot Ekpene switch yard, transmission capacity will be above 6,500megawatts (Mw) from the current capacity of 5,500Mw.
    Stakeholders in the power sector, according to the communiqué, noted the need for government ministries, departments and agencies (MDAs) to pay their debts, which is well over N1trillion, to power sector operators and service providers to improve liquidity in the sector.
    The operators agreed they would submit all outstanding audited accounts before their next stakeholders meeting next month to improve transparency within the sector while the Nigerian Bulk Electricity Trader (NBET) said all service providers should pay their bills to the it as well as suppliers to service providers to ensure the sector remains functional.
    Fashola directed that customer service shall be the focus of the power sector this year and urged operators and service providers to step up the user experience of their customer by increasing metering and reducing estimated billing and prioritise safety.
    Against the background of incidents in the past year, all the operators agreed to prioritise safety in all their undertakings to avoid future accidents.

  • Workers praise NNPC over welfare

    Workers praise NNPC over welfare

    Oil workers have described the administration and programmes of the Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Kacalla Baru, as workers-friendly.

    The workers under the Group Executive Councils (GECs) of National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) rated the Baru-led administration after a careful evaluation of its programmes.

    In a statement by the Secretaries of the two  unions, Comrade Sulaiman Sulaiman of PENGASSAN and Comrade Uche Amara of NUPENG, the workers said they had been following the GMD’s 12 Focus Area drive towards bringing back NNPC to the path of success with keen interest.

    The unions commended the plans and pronouncements toward a comprehensive rehabilitation of the three nation’s refineries to achieve optimal capacity utilisation by 2017.

    They noted that it was a clear drift from the initial position, which the unions always rejected, where important national assets were posited for sales as scrap, adding that the proposal to adopt a new model that will bring investors to increase productivity without having to lose jobs is commendable.

    “The recent familiarisation tour of all NNPC facilities by the GMD and the pronouncements made during the visits are clear demonstrations of Management resolve to carry along all stakeholders, especially the unions at all levels,” the workers stated in the statement.

    The workers listed areas such as promotions/redeployment, rehabilitation of refineries, and other welfare programmes,  inccluding wages and retirement benefits.

  • NNPC resumes kerosene, diesel refining

    NNPC resumes kerosene, diesel refining

    The three refineries of the Nigerian National Petroleum Corporation (NNPC) in Kaduna, Port Harcourt and Warri have resumed production of Automotive Gas Oil (AGO) or diesel and Dual Purpose Kerosene (DPK) or  kerosene.

    The resumption of refining of the products is expected to balance the disequilibrium in demand and supply being experienced across the country.

    Speaking on the production level of the Warri refinery, the Managing Director of the Warri Refining and Petrochemical Company (WRPC), Engr. Solomon Ladenegan, said the plant had been doing well since the Crude Distillation Unit (CDU) was revved up on Saturday.

    Ladenegan said the refinery resumed production last Saturday at about 10:22hrs, with the plant’s CDU functioning.

    He said the plant now refines 2 million litres of kerosene and 3 million litres of diesel daily.

    A statement endorsed by the General Manager, Group Public Affair Division, Ndu Ughamadu, quoted him as saying: ”This morning, we have pumped the products to PPMC and they have started loading. They are going to load up to 1 million litres of DPK and AGO. The products are there in the tank and we are doing everything to get them to the market.”

    The Managing Director, Port Harcourt Refining Company (PHRC), Dr Bafred Enjugu, said the plant was producing 3 million litres of AGO daily, in addition to millions of DPK.

    Enjugu said the operators were thrilled that the  old Port Harcourt Refinery where production of AGO was being carried out by themselves without foreign expertise deployment.

  • NNPC okays 39 firms for oil trade

    NNPC okays 39 firms for oil trade

    State-run  Nigeria National Petroleum Cooperation (NNPC) has finally unveiled 39 companies which will trade Nigeria’s oil for this year’s crude oil term contract.

    The 39 companies emerged from 224 which participated in an open bid.

    The list, which was released by the oil firm, includes 18 indigenous companies, two NNPC trading companies and a host of international companies.

    The NNPC, in a statement, said: “The contract will run for one year, effective  January 1 2017 for consecutive 12 circles of crude oil allocation.

    “The list involves 18 Nigerian companies, 11 International Traders, five  foreign refineries, three National Oil Companies (NOCs) and two NNPC trading arms. All the contracts are for 32,000 bpd except Duke Oil Ltd, a subsidiary of NNPC, which shall be for 90,000 bpd.”

    For refineries contract, Hindustan Refinery; Varo Energy; Sonara Refinery; Bharat Refinery; Cepsa emerged winners while for international traders,Trafigura; ENOC Trading; BP Trading; Total Trading; UCL Petro Energy; Mocho; Tevier Petroleum; Heritage Oil; Levene Energy; Glencore; Litasco Supply and Trading were okayed by the NNPC.

    Under the government to government

    contract, there is India (Indian Oil Company); China (Sinopec); South Africa (Saccoil) while Oando; Sahara Energy; MRS Oil and Gas; A.A Rano; Bono; Masters Energy; Eterna Oil and Gas; Cassiva Energy; Hyde Energy; Britania-U; North West Petroleum; Optima Energy; AMG Petroenergy; Arkleen Oil & Gas Ltd; Shoreline Limited; Emo Oil; Setana Energy; and Prudent Energyare indigenous firms that got approval. NNPC trading companies-Duke Oil Limited and Carlson Hyson are also involved in the contract.

    During the open bid in November last year, the Group Managing Director of NNPC, Maikanti Baru,  had said the number of bidders for the contract dropped from 278 that applied for the contract in 2015 due to  the new requirements introduced by the corporation.

    Baru explained that the process, which prioritised refiners and big crude oil lifters,  would be concluded next month.

    “When we sell this crude oil, the money goes straight to the Central Bank of Nigeria (CBN) account on behalf of the federation. NNPC does not operate any of those accounts.

    “The best input from the NNPC is confirmation that the money has been paid but we have no signature rights on this account, contrary to the perception that NNPC is hoarding some money on behalf of the Nigerian people, all the crude oil that we sell goes to the Nigerian people. There is nothing that is hidden, it is all open for everybody to see,” Baru had explained.

  • NNPC names 39 crude oil off-takers for 2017/2018

    NNPC names 39 crude oil off-takers for 2017/2018

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday released names of 39 bidders for the sale and purchase of Nigerian crude for 2017/2018.

    Announcing the results on its Website, the Group General Manager, Crude Oil Marketing Division NNPC, Mr Mele Kyari, said the contract would run for one year effective from Jan. 1 for consecutive 12 circles of crude oil allocation.

    The list comprises 39 winners with 18 Nigerian companies, 11 International Traders, five foreign refineries, three National Oil Companies (NOCs) and two NNPC trading arms.

    It said all the contracts were for 32,000 barrels per day except Duke Oil Ltd, an oil trading arm of the NNPC, which shall be for 90,000 barrels per day.

    It would be recall that during the bid opening on Nov. 26, 2016, the Group Managing Director of the corporation, Dr Maikanti Baru, assured the public that NNPC would ensure due process, transparency and fairness in the selection process.

    Also, a total of 224 bids were submitted by companies seeking to purchase and lift Nigerian crude oil grades for the period 2017/2018.

    The indigenous beneficiaries are Oando, Sahara Energy, MRS Oil and Gas, AA Rano, Bono, Masters Energy, Eterna Oil and Gas, Cassiva Energy, Hyde Energy and Brittania U.

    Others are NorthWest Petroleum, Optima Energy, AMG Petroenergy, Arkiren Oil and Gas Limited, Shoreline Limited, Entourage Oil, Setana Energy and Prudent Energy.

    The international beneficiaries are Trafigura, ENOC Trading, BP Trading, TOTAL Trading, UCL Petroenergy, Mocho, Tevier Petroleum, Heritage Oil, Levene Energy, Glencore and Latasco Supply and Trading.

    The five foreign refineries are Hindustan Refinery, Varo Energy, Sonara Refinery, Bharat Petroleum and Cepsa while the NOCs are India Oil Company, China (Sinopec) and South Africa (Saccoil).

    The NNPC trading arms are Duke Energy and the Carlson Hyson. (NAN)

  • Why aviation fuel is scarce, by NNPC

    Why aviation fuel is scarce, by NNPC

    • ‘Airlines can’t pay’

    The scarcity of Aviation Turbine Kerosene  (ATK) has more to do with the inability of airlines to pay for the product than its alleged scacity, the Nigerian National Petroleum Corporation (NNPC) has said.

    The Corporation said the introduction of the cash-and-carry policy by marketers as a  result of the huge debts  being owed by the airlines, was the main cause of the scarcity.

    NNPC’s Group Managing Director, Dr Maikanti Baru, who spoke when the management of the Nigerian Television Authority (NTA), visited the corportaion, said NNPC has taken steps to ensure adequate supply of the product with the importation of over 45 million litres.

    He said the monetisation of natural gas was a cardinal mandate of the Corporation, and expressed its commitment to carry on with the Brass LNG and OK LNG, saying the two projects were high priority gas entities which promise to boost revenue to the Federal Government.

    NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, in a statement quoted Baru as saying: “We are still committed, to monetising our natural gas. We have the Nigerian Liquefied Natural Gas (NLNG) which is at the moment monetising about four billion standard cubic feet of gas on a daily basis (4 billion scf/d). We also have plans for Olokola LNG as well as Brass LNG.

    “We have a little challenge with market windows for these projects which we are reviewing on a monthly basis. Once the appropriate market window opens up, we will quickly get more shareholders to join us for the projects.”

    He said a meeting of Brass LNG stakeholders has been scheduled for early next year to chart the way forward for the project, adding that apart from the LNG projects, NNPC was also working on gas monetisation through aggressive enhancement of domestic gas supply for power generation and industrial use.

    Baru praised the management of NTA for its factual reportage of the corporation’s activities.

    He urged the state-run television station to help in enlighten the public on the dangers of pipeline vandalism, which long-term impact on the environment far outweighs whatever short-term gain the perpetrators may be seeking.

    Speaking earlierThe NTA Director-General, Malam Yakubu Ibn Mohammed, said the visit was in continuation of the Authority’s resolve to liaise constantly with other government agencies it collaborates with regularly and with which they share the objective of furthering the interest of the country.

    “The NNPC and NTA have come a long way. Our relationship has continued to wax stronger and stronger and it is my desire to ensure that during my stint as DG of NTA, we take this relationship to a greater height,” he said.

  • NNPC vows to find lasting peace in Niger Delta

    NNPC vows to find lasting peace in Niger Delta

    The Nigerian National Petroleum Corporation (NNPC) on Sunday vowed to continue to find sustainable solution to the challenge posed by insurgency in the Niger Delta.

    The NNPC Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, said this in a statement issued in Abuja.

    “The Corporation has created security management platforms that would enable it identify and evaluate risks, develop and superintend implementation of investigations.

    “The platform will also aggregate and deploy necessary resources to guarantee peaceful business environment in the region,” Ughamadu said.

    Quoting the NNPC Group Managing Director, Dr Maikanti Baru who addressed staff during an end of year message, the spokesman said the corporation was committed to implementing a robust security.

    “’The Corporation is committed to implementing a robust security and stakeholders’ strategy that would ensure that peace reigned in the industry operational areas.

    ‘“Dr Baru attributes the recent increase in the country’s oil and gas reserves to 37 billion barrels and 192 trillion cubic feet, respectively, to the relative peace that was instituted in the Niger Delta.

    “’Over the year, NNPC adopted strategies to ensure the Corporation’s operational profitability, renegotiation of all existing contracts to achieve substantial value realisation of between five and 30 per cent discounts.

    “This singular effort alone translated to substantial cost savings in favour of NNPC,” Ughamadu said.

    He said NNPC had commenced the implementation of a 12-key Business Focus Areas developed by its Management Team to enhance the corporation’s business performance.

    In addition, he stated that a team had put in place structures that would enable smooth implementation of new business models for its Strategic Business Units and companies nationwide.

    Ughamadu lauded President Muhammadu Buhari and Dr Ibe Kachikwu for providing enormous support to reposition NNPC.

  • NNPC to rehabilitate refineries

    NNPC to rehabilitate refineries

    The Nigerian National Petroleum Corporation (NNPC) is set to embark on a comprehensive rehabilitation of the nation’s three refineries located in Port Harcourt, Warri and Kaduna to achieve optimal capacity utilisation in the New Year.

    Speaking at the Annual General Meetings (AGMs) of the three refineries in Abuja yesterday, the Chief Operating Officer (COO), Refineries of the NNPC, Mr. Anibor Kragha, said the Corporation was determined to move away from the approach of quick fixes and undertake a comprehensive revamp of the plants.

    ‘’The plan for next year is to get the comprehensive rehabilitation programme done. The situation is like having three cars in your garage that have not been maintained for between 15 and 20 years while you expect optimal performance from them. Changing one fuel pump here, one compressor there is not helpful. What we are doing now is to step back and take a holistic approach and do a full rehabilitation of all the refineries,’’ Kragha stated.

    He said once the exercise was achieved, the refineries in due course would draw up a chart for routine Turn Around Maintenance (TAM) programme as at when due.

    On the earlier plan to have other refineries co-located with the existing refineries, Kragha said though the plan was still on course, none of the projected co-location refineries would come on stream next year based on existing timeline for assemblage of the plants.

    On the plan by Port Harcourt Refinery to commence the production of Aviation Turbine Fuel (ATK) for domestic consumption, the COO said the refinery was a few steps away from hitting the mark.

    The Group General Manager, Group Public Affairs Division of the corporation, Mr. Ndu Ughamadu in a statement quoted Kragha as as saying: ‘’We are very close; we have done tests with some of the key marketers. We have achieved all the parameters; we just want to be 110 per cent certain.”

    Earlier in his remarks, the Managing Director of the Kaduna Refining and Petrochemicals Company, Mallam Idi Mukhtar Maiha, said the plant was assiduously working towards a target of 75 per cent capacity utilisation in the New Year based on projected supply of one cargo of crude oil per month.

    The Managing Director of Warri Refining and Petrochemicals Company,  Solomon Ladenegan, in his presentation during said despite the hostile operating environment fraught with incessant cases of pipeline vandalism and outright product theft, the refinery was looking forward to better days ahead.