Tag: NNPC

  • NNPC: no petrol price increase

    NNPC: no petrol price increase

    The Group General Manager (GGM), Nigerian National Petroleum Corporation (NNPC), Maikanti Baru yesterday  ruled out possibility of imminent increase in the pump price of  petrol.

    There are online reports suggesting that the Federal Government will soon increase the price which was increased in May from N86 to N145 per litre.

    But speaking with State House correspondents at the Presidential Villa, Abuja, Baru said he has not received any directive to increase fuel price.

    Noting that the request for foreign exchange (forex) for importation of petrol has been met, he said the supply situation for fuel in the country is robust and won’t push price up.

    He said: “I have not been directed to increase petrol pump price, even the other price was based on recommendation from the regulatory body. I’m not aware that they are planing to do any increase; you know there are several factors that necessitated that especially the issue of exchange rate that has moved and we don’t expect any serious changes.

    “So far the request for forex for importation of gasoline popularly called petrol has been met, and our own supply situation is robust.

    “We are meeting demands; we have over 1.4 billion liters on ground. So I don’t see any basis for increase.

    “However, the review could be done by the right body, you should contact PPPRA, that is the regulatory body as far as petrol pricing is concerned.”

  • NNPC revenue target down by 37.64 per cent

    NNPC revenue target down by 37.64 per cent

    The Nigerian National Petroleum Corporation (NNPC) failed to make its projected estimates in May and June.

    According to its monthly reports obtained by our correspondent, the oil giant realised N142.53 billion in May and N118.39 billion in June, representing a loss of 45.32 per cent of the projected income for May and 37.64 per cent loss for June.

    The June 2016 Financial and Operation Report noted that operating expenditure for the same periods were N142.26 billion and N144.90 billion which represent 52.63% and 53.61% of budget plan for the two months.

    The report said: “A trading surplus of N0.27 billion and deficits of N26.51 billion were recorded for the months of May and June 2016 respectively. The reported trading surplus reported in May 2016 was as a result of increase in cash flow due to increase in pump price of PMS. The upward review resulted to a trading surplus of N0.27 billion and not ‘net profit’ because there are other expenses that ordinarily should have been netted off.

    “The deficit in the month of June 2016 was majorly due to decrease in revenue generation as a result of decline in PPMC petroleum products sales by 13.30% or N14.9 billion and increase in products distribution costs. Also June 2016 operations witnessed the major impact of incessant vandalism, during the month more than 261 vandalized points were recorded.

    “In NPDC a substantial portion of estimated crude oil sales for the month of over N20.0 billion could not be realised due to Force Majeure declared by SPDC as a result of vandalised 48-inch Forcados export line. In addition pension intervention by CHQ to bridge the funding gap as well as the one-off gratuity payment affected the performance.”

  • Avengers blow up NNPC gas pipeline in Akwa Ibom

    Avengers blow up NNPC gas pipeline in Akwa Ibom

    ….Expect more attack, say Militants

    The Niger Delta Avengers has claimed responsibility for the attack on gas pipeline belonging to Nigerian National Petroleum Corporation, (NNPC), in Obotim Nsit, Nsit Ibom Local Government Area, Akwa Ibom State.

    The attack on the NNPC gas pipeline which was located in Ikot Okukuk Nsit Junction in Nsit Ibom local council occurred around 12pm on Sunday, according to local villagers.

    But statement by the spokesperson of the avengers, Mudoch Agbinibo, said the facility was blown up at about 11:30pm on Sunday night.

    The statement also asked the NNPC authorities to check their facility whether they will claim if it was ‘system Anomaly’ as Exxon Mobil recently did before later affirming similar attack on their facilities in the state.

    The statement by the avengers read: “11:30pm on Sunday, the NDA blow up Nigerian National Petroleum Corporation (NNPC),  gas pipeline at Nsit-Ibom L.G.A, Akwa Ibom state. NNPC should check their pipeline if it’s ‘system Anomaly’.”

    It asked the NNPC authorities to check their facility whether they will claim if it was ‘system Anomaly’ as Exxon Mobil recently did before later affirming similar attack on their facilities in the state.

    At as the time The Nation arrived at the scene, there were officials of Akwa Ibom Fire Service on the ground trying to put out the fire from the gas pipeline which was attacked by the avengers.

    Before Sunday’s attack on NNPC gas pipeline in Nsit Ibom, around June this year, the Niger Delta Volunteers, (NDV), announced its presence in Akwa Ibom State.

    The group had in a statement signed by its spokesman, Commander Ekpo Ekpo, claimed responsibility for the attack on gas pipeline belonging to NNPC/NGC supplying gas to ALSCON, Ikot Abasi, Akwa Ibom State.

    Even when the State Government and the Police Commissioner, Murtala Mani, had both denied the knowledge of the attack and called it a gas leakage, the militants had insisted that its professionals attacked the pipeline at exactly 11:45am on Thursday June 16 to welcome President Muhammadu Buhari who was due in the country from oversea trips.

    The group had warned that the ongoing dialogue between the Federal Government and the Niger Delta militants should be extended to Akwa Ibom state otherwise it would shut down some major platforms and flowlines in the state.

    They also vowed to attack some ‘selfish’ Paramount Rulers in the State who connive with oil companies to ‘siphon’ money meant for community development.

    Only last week also, three Militant groups, Niger Delta Volunteers, NDV, Niger Delta Peoples Liberation Movement, NDPLF, and Bakassi Freedom Fighters, BFF, have promised to lunch more attack on oil installations in Akwa Ibom state unless the Minister of State for Petroleum, Group Managing Director – NNPC and Managing Director of Nigerian Ports Authority vacate their offices.

    The group had in statement yesterday criticised President Muhammadu Buhari for not appointing somebody from the Niger Delta region into the newly constituted Board of the Nigerian National Petroleum Corporation (NNPC).

    The statement by the militant groups was jointly signed by its spokepersons Commanders Ekpo Ekpo for NDV; Henry Etete for NDPLF and Asukwo Henshaw for BFF, and sent to newsmen in Uyo, the state capital.

    The group also demanded the sacking of NNPC’s Group Managing Director Dr. Maikanti Baru and replacement of same with an indigene of the Niger Delta.

    They lamented that it was an ‘insult’ on the Niger Delta region that the Minister of Petroleum who also doubles as the President of Nigeria is from the North, the Group Managing Director – Dr. Maikanti Baru and four other members of the board are from the North.

    The statement read: “The appointment of Nigerian Ports Authority Managing Director is an insult to the people of Niger Delta, the action of the Buhari has proved that he is the president of the North and not the President of Nigeria.

    “We totally condemn the newly constituted NNPC Board by the President and we call for immediate sack of the Group Managing Director and replacement of same with an indigene of the Niger Delta, it is an insult on the Niger Delta region that the Minister of Petroleum who also double as the President of Nigeria is from the North, the Group Managing Director – Dr. Maikanti Baru and four other members of the board are from the North.

    “We demand immediate removal and investigation of the Minister of State for Petroleum, Dr. Ibe Kachikwu for spending over N150m on some selfish ex-militant leaders to work against the Niger Delta Avengers and other militant groups in the Niger Delta without any result.

    “We congratulate the Niger Delta Avengers for successful operation in Akwa Ibom and assure them of more cooperation and support, we wish to prove here that there was attack on Exxon Mobil pipeline, even Exxon Mobil as at today can testify that there was attack, and we promise that more are coming in the next few weeks if the Minister of State for Petroleum, Group Managing Director – NNPC and Managing Director of Nigerian Ports Authority still remains in office.”

     

  • Reps scuttle NNPC’s $400m refineries loans bid

    Reps scuttle NNPC’s $400m refineries loans bid

    •Refineries ‘lost N82b’

    The House of Representatives Committee on Privatisation and Commercialisation  yesterday stopped the bid by the Nigerian National Petroleum Corporation NNPC to acquire a $400 million loan for the upgrade of the four refineries in the country.

    The Hon. Ahmed Yerima- headed committee said the NNPC  was breaching Section 11 (g) of the Public enterprises ( Privatisation and Commercialisation) Act 1999, which gives the National Council on Privatisation (NPC) the power to do such.

    Members of the committee said the NNPC shoukd suspend outrightly the proposed restructuring/privatisation of the refineries because of the breach of the regulations in the Bureau of Public Enterprises (BPE) as well as the Presidency’s delay in inaugurating the National Council on Privatisation (NCP).

    The committee said it will formally communicate President Muhammadu Buhari on the need to adhere to due process and avoid the pitfalls in the commercialisation and privatisation exercises that were made in the past.

    The committee noted that breach of policy guidelines and extant regulatory framework and undue rivalry among government agencies is giving investors concern.

    According to NNPC document submitted to the Committee and obtained in Abuja, “in 2015, the refineries posted combined losses of N82 billion and processed only eight million barrels of crude in total.”

    At the meeting yesterday, the failure of the NNPC management to present documents showing the approval allegedly given by the President for the proposed improvement of the refineries’ capacity utilisation to 80 per cent within one year on the basis of the subsisting ownership structure, made members of the committee angry.

    Also the $50 million agreement signed by NNPC with a Chinese company, without any clear work plan got the disapproval of the lawmakers.

    Group Executive Director (Refineries) Anibor Kragah, who spoke for the NNPC, said the report on the privatisation of the refineries, was not true.

  • NNPC mulls 3bscf/d domestic gas supply by 2017

    NNPC mulls 3bscf/d domestic gas supply by 2017

    The Nigerian National Petroleum Corporation (NNPC) is  to increase domestic gas supply to three billion standard cubic feet per day (bscf/d) by the end of next year and 7bscf/d by 2020, it was learnt at the weekend.

    As at last January, domestic gas supply stood at about 1.3bscf/d, but by end of last month, it dropped by over 100 per cent to 500 million standard cubic feet per day (mmscf/d) due to renewed attacks on pipelines by the Niger Delta militants.

    To scale up industrial activities , NNPC  is targeting additional 2.985 bscf/d gas supplies by the international oil companies (IOCs) aside the 2.460bscf/d their  projects can supply.

    The national oil firm is also eyeing 1.895 bscf/d of gas from the Nigerian Petroleum Development Company (NPDC), an arm of NNPC and recovery of 1.605bscf/d from repair of vandalised pipes. Also it is fast-tracking the construction of the Obiafo/Obrikom/Oben (OB3) pipeline at 70 per cent completion and expected to be completed by last quarter of next year, and the Escravos-Lagos Pipeline System (ELPS) Phase 2, which is at 76 per cent completion and expected to be completed by third quarter of this year.

    The OB3 pipeline is planned to supply gas to Geregu PHCN and NIPP plants, Egbema NIPP, Alaoji and Calabar NIPP, and Okpai power plant, among others, while ELPS 2 will feed Olorunsogo PHCN and NIPP, Sapele power plant, Omotosho PHCN and NIPP, Ihovbor NIPP, and Egbin power plant.

    The NNPC source said: “Some of the NNPC intervention programme include connecting all existing power plants to permanent gas pipeline, resolve community interference through aggressive dialogue and engagements with stakeholders, and repair the damaged ELPS 1 and restore gas supply to the west.

    “We (NNPC) will ensure delivery of the NPDC and IOCs short term projects, complete ELPs II and OB3 gas pipeline projects, secure funding to actualise the identified upstream gas development that will enable additional 7bscf/d gas supply to meet the projected demand by 2020, complete the production sharing contract (PSC) gas terms to enable market the huge offshore gas resources, and progress the development of Gas Based Industries.

    “The Corporation will also evaluate the possibility of installing gas storage for security of supply and to edge against contract risk, evaluate option of regasification of liquefied natural gas (LNG) as a strategic intervention for alternative gas supply in case of outages of pipeline, evaluate flexibility in the pipeline system to flow of gas between domestic and export without jeopardising existing contractual arrangements.”

    He noted that based on all known domestic gas supply projects, base case supply is forecast to grow to 4.7bscf/d by 2020, this implies an imminent shortfall of about 2.9 bscf/d. In fact, from 2019 the base case gas supply does not even meet the power demand projection, he added.

     

  • Why there are fuel queues in Abuja—NNPC

    Why there are fuel queues in Abuja—NNPC

    The Nigerian National Petroleum Corporation (NNPC) yesterday explained that the queues that resurfaced in Abuja petrol stations were the ripple effects of the strike that oil workers under the umbrella of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) embarked upon before it suspended on Tuesday.

    It however advised customers to desist from panic buying of petroleum products as it has stock that could last for 30 days.

    Its Group General Manager, Group Public Affairs Division, Malam Garba Deen, who made this known in a statement, noted that “as a result, all PENGASSAN members have since resumed work on Wednesday, 13th July, 2016.

    “Therefore any perceived or visible shortage of petrol is only a ripple effect of the period when the strike was in progress and does not represent a shortage in supply.

    Members of the public are advised not to engage in panic buying as there is no shortage of petrol.

    “The Corporation has sufficient fuel that will last for over 30 days.”

  • NNPC subsidiary declares N11.8b profit

    A subsidiary of the Nigerian National Petroleum Corporation (NNPC), the National Engineering and Technical Company Limited (NETCo) yesterday announced a profit before tax N11.8 billion for its 2014 financial year.

    Its Chairman, Mr. Bello Rabiu disclosed this at the company’s 23rd, 24th and 25th Annual General Meeting (AGM)  at the headquarters of NNPC in Abuja.

    He said the firm’s profit stood at 160 per cent, adding however that its revenue increased  by 49 per cent from N7.9billion in the previous year to N11.8billion in 2014.

    According to him, the company was able to record profit despite the harsh operating environment in the oil and gas sector.

    Rabiu said: “Despite the challenges in the oil and gas industry, NETCo recorded impressive performance during the years under review. The profit before tax exponentially increased from N193million in 2012 to N963million in 2013 and N2.5billion in 2014.”

    Explaining the reason for combining the AGMs, he said: “It was due to the migration of the a National Accounting Standards to International Financial Standard Reporting which took auditors a while to complete. In addition, there was no substantive managing director in NETCo for a period of 15 months.”

    Speaking on the sideline of the event, the firm’s Managing Director, Mr. Siky Aliyu, said for the first time, NETCo was able to collaborate with two other local engineering firms and together the joint venture was able to record more than 550,000 man-hours on a strategic project.

    He said: “We did the entire detail engineering for the Total JV Egina FPSO project and we delivered it on time, safely and within budget. So that really tells you that there’s a lot of capabilities in the country and NETCo being the largest indigenous engineering company in Nigeria is really putting all the other resources together to execute all these projects. And we can do that for other projects that are still coming as there are quite a number of them in the pipeline now.”

    He stated that NETCo was partnering the engineering division of the NNPC in fixing the country’s refineries and urged operators to see the firm as the first point of call for engineering, procurement and construction activities.

  • No agreement with NNPC on Eagles’ coach – NFF

    No agreement with NNPC on Eagles’ coach – NFF

    The Nigeria Football Federation (NFF) has not reached an agreement with the Nigerian National Petroleum Corporation (NNPC) for payment of salaries of the incoming Super Eagles’ head coach, the federation said on Wednesday.

    Reports had said the NFF had secured the sum of $1.5 million from the NNPC to cater for salaries of the handler to be named next week, but the federation has dismissed the report as untrue.

    “The story is the figment of the imagination of the writer. Nobody in the NFF or NNPC discussed the matter of salary of Eagles’ coach and there is no iota of truth in it,” Goal quoted Chairman of the NFF Media and Publicity Committee, Hon. Suleiman Yahaya-Kwande, as saying in a statement on Wednesday.

    “Of course, we would be happy if the Nigeria National Petroleum Corporation can come into Nigeria football, as we are trying to attract more corporate bodies into the Nigeria game. But there has been no discussion between NFF and the NNPC over payment of the new Super Eagles’ head coach or technical crew salaries.”

    Three candidates – Salisu Yusuf, Belgian Tom Saintfiet and Frenchman Paul Le Guen have been shortlisted for the Super Eagles’ job.

     

  • Buhari sends CBN, NNPC, others estimates to Assembly

    Buhari sends CBN, NNPC, others estimates to Assembly

    President Muhammadu Buhari has sent the budgets of agencies and corporations under the Fiscal Responsibility Act, 2007 to the National Assembly for passage.

    In a June 30 letter  addressed to Speaker of the House of Representatives, Hon. Yakubu Dogara,  the President said he was submitting the budgets of 38 agencies and corporations in line with extant laws.

    It is the first time the budget of some of these agencies are being sent for passage.

    Buhari wrote: “Further to the provisions of the Fiscal Responsibility Act, 2007 which provides that the budgets of the Agencies listed in the Act be collated and forwarded to the National Assembly for consideration,  I forward herewith the 2016 budget proposals of the underlisted Agencies for your consideration and passage. “

    The President, praying for an expeditious approval of the budgets of the Agencies and Corporations, said in line with the provisions of the Act, “ budget of the agencies and corporations which have been privatised or otherwise ceased to exist are not included herein.”

    The submitted budgets include those of the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS),  Nigerian National Petroleum Corporation  (NNPC), Nigerian Ports Authority (NPA), Securities and Exchange Commission (SEC) and National Agency for Food and Drug Administration and Control (NAFDAC).

    Others are: Bureau of Public Enterprises (BPE), National Maritime Authority (NMA), Federal Airport Authority of Nigeria (FAAN), Nigerian Communications Commission (NCC), Nigerian Deposit Insurance Corporation (NDIC), Nigerian Immigration Service (NIS), Federal Housing Authority (FHA), Federal Mortgage Bank of Nigeria (FMBN) and Corporate Affairs Commission (CAC), among others.

    The non-submission of the budgets of these establishments has been a major source of contention between the National Assembly and the Executive over the years.

     

  • Buhari sends budgets of CBN, NNPC, others to NASS

    Buhari sends budgets of CBN, NNPC, others to NASS

    President Muhammadu Buhari on Tuesday sent the budgets of agencies and corporations under the Fiscal Responsibility Act 2007 to the National Assembly.

    In a letter dated June 30, 2016 and addressed to the Speaker of the House of Representatives, Hon. Yakubu Dogara, the President said he was submitting the budget of 38 agencies and corporations in line with extant laws.

    Buhari said: “Further to the provisions of the Fiscal Responsibility Act, 2007 which provides that the budgets of the agencies listed in the Act be collated and forwarded to the National Assembly for consideration, I forward herewith the 2016 budget proposals of the underlisted agencies for your consideration and passage.”

    The President while praying for an expeditious approval of the budgets of the agencies and corporations said that in line with the provisions of the Act, “budget of the agencies and corporations which have been privatized or otherwise ceased to exist are not included herein.”

    The submitted budgets include that of Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Ports Authority (NPA), Securities and Exchange Commission (SEC) and National Agency for Food and Drug Administration and Control (NAFDAC).

    Others are – Bureau of Public Enterprises (BPE), National Maritime Authority (NMA), Federal Airport Authority of Nigeria (FAAN), Nigerian Communications Commission (NCC), Nigerians Deposit Insurance Corporation (NDIC), Nigerians Immigration Service (NIS), Federal Housing Authority (FHA), Federal Mortgage Bank (FMB) and Corporate Affairs Commission (CAC), amongst others.