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Tag: NNPC

  • NNPC owes JV partners $7b, says NAPIMS

    NNPC owes JV partners $7b, says NAPIMS

    International Oil Companies (IOCs) in the Joint Ventures production are being owed $7 billion by the Nigerian National Petroleum Corporation (NNPC), the  upstream investment arm of the state oil firm, Petroleum Investment Management Services (NAPIMS), has said.

    NAPIMS Group General Manager, Dafe Fejebor , made the revelation before the House of Representatives committees on Petroleum (Upstream) and Public Procurement which began investigation into the alleged $260 million “illegal” contract by NAPIMS.The Nation had exclusively reported that the huge debts were  owed over a period of five years.

    The Nation had exclusively reported that the huge debts were  owed over a period of five years.

    The contract in contention was for four single source contracts for projects in Exxonmobil’s Usan Deepwater Project, at a total value of $260 million without any form of tendering process.

    He said: “In the last five years, things really started going bad and we are really trying our very best to get them resolved.

    “We’ve gone to arbitration and they are trying to find aways of resolving them offline. The Minister has stepped in to see how he can mitigate our exposure.

    “In short we are at crossroads because when we approached the IOCs, they simply told us that we have to operate a base case budget before they can continue with us.

    “And from my understanding of business, a case base budget is doing business without growth and we have to resort to cut cost on services to survive, but some guys providing us services totally refused.”

    This, he said, has necessitated the organisation’s move to cut costs.”We wrote to them to go renegotiate all services, whether ongoing or the one that they’re out to put in place, they should knock them down by 30 to 40 per cent cost reduction.

    “They went to town with some,  they were successful as some gave up to fifty percent of their services,” he said, lamenting that the rig providers especially the drill ships refused to budge.

    The NAPIMS chief said the move was necessary as “our cost outlay per day was $600, 000 spread, bringing our production cost per barrel to about $57 to $60 per barrel. There was no way we could continue with that.“

    The joint committees headed by Hon. Victor Nwokolo and Public Procurement, headed by Hon. Wole Oke, while considering a memorandum brought before it by Tilone Subsea, directed that ExxonMobil, represented by Rotimi Olubeko, a General Manager, to rescind all decisions related to the four single source contracts for projects in Exxonmobil’s Usan Deepwater Project, that was taken after March, this year when the advert for the public hearing was placed.

    Rotimi said he was not aware of the $260 million, adding that there were different contracts awarded by ExxonMobil and none was of that amount.

    But the Speaker of the House of Representatives, Hon. Yakubu Dogara said its imperative that the contract be investigated.

    He said: “The operations of USAN field, the subject of this hearing, is a joint venture between NNPC and Chevron. The NAPIMS is a Directorate of the NNPC charged with the responsibility of managing Nigeria government’s investment in the upstream sector of the oil and gas industry.

    “It is set up to maximise return on  government’s investments through effective supervision of the JV, PSC (production sharing contract) and SC (service contract) companies, using best industry practices. Since NNPC is wholly owned by the Federal Government, the National Assembly has unquestionable legal impetus to act on this matter.

  • Reps ask FG to stop sale of refineries

    Reps ask FG to stop sale of refineries

    The House of Representatives Committee on Privatisation has asked the Federal government to stop the proposed privatisation of the nation’s three refineries with immediate effect.

    Slated for sale by the Nigeria National Petroleum Corporation (NNPC) are the Port-Harcourt, Kaduna and Warri refineries.

    The decision of the lawmakers followed the disclosure by the Bureau of Public Enterprises (BPE) that it was not aware of the proposed sale.

    The lawmakers said the proposed sale failed to follow due process with NNPC acting without the involvement of other stakeholders as contained in the BPE Act.

    The House said NNPC action violated Section 11 of the BPE Act, 2009.

    The directive was handed down Wednesday during an interactive session between House Committee on Privatisation, NNPC and BPE on the subject matter.

    In his presentation, NNPC’s Group Executive Director (Refineries), Anibor Kragba, who represented the Minister of State (Petroleum Resources) and NNPC’s Group Managing Director (GMD), Ibe Kachikwu, had told the Committee that the exercise was not privatisation.

    According to him, rehabilitation of the refineries is capital intensive which was responsible for sourcing for core investors that can undertake the project and revive the refineries.

    However trouble began when the GED was asked about who authorized the exercise under whatever name without the input of the National Assembly.

    At this juncture, Kragba responded that he would need to clarify from his superiors, since he was barely a month in office having been appointed a couple of weeks ago.

    When asked if BPE was involved in the process, its acting Director General (DG), Vincent Akpotarie denied the knowledge and participation of his agency in the proposed sale.

    Kragba’s response to seek clarification from higher office however drew the ire of the Committee that called his competence to question.

    The Committee regretted that it was the action of NNPC that the whole country is suffering, while noting that there was no reason for the continuation of the session since the GED is incapable of giving authoritative answers to questions thrown at him.

    The Committee also wondered whether there was handover notes that the GED could refer to in response to the queries of the Committee since assumption of office.

    The Committee expressed disappointment that it deferred to accept the representation of Kragba on the basis that he claimed to have the mandate of the corporation to make pronouncements on its behalf but failed to live up to the expectation of the Committee.

    On being told that he was incompetent to handle the matter at hand, Kragba responded  saying, “With due respect to this Honourable Committee, I was appointed into the office by  Mr President who believed my competency”.

    The Committee would have none of that from the GED for using such a language on the House.

    Before aborting the hearing due to the shouting bout, the Committee ruled that the NNPC should stop the exercise with immediately for gross violation of the BPE Act.

    Chairman of the Committee, Ahmed Yerima warned Kragba to be mindful of his choice of words before the parliament, “I am sure if  Mr President reads this BPE Act, he  will not be happy with what you are doing.

    “We are preaching change, change in our ways of doing things for the betterment of the Country and yet we the leaders are doing things ,the other way round, impunity is still rampant, am a member of the All Progressive Congress and we promised the people real change before they gave us their votes,” he stated.

    The hearing was abruptly adjourned with a caveat that the Petroleum Resources Minister, Kachikwu must appear before the Committee.

     

  • What Buhari has changed in the last 12 months

    What Buhari has changed in the last 12 months

    Have things remained how they were when President Muhammadu Buhari took over about a year ago? Certainly not! Here are what has changed, writes OLUKOREDE YISHAU

    Facts and figures

    N3tr Between June 2015 and April 2016, the Federal Government TSA collection clocked N3trillion.

    40 The number of accounts closed in NNPC to give room for accountability

    60% Port Harcourt and Warri refineries are back in operation with 60 per cent capacity and producing 7 million litres of PMS daily. The Kaduna refinery also resumed production at the end of the April, 2016.

    N689.5billion The amount President Buhari directed the CBN to disburse as bailout to 27 states to pay salaries.

    34,000 The number of ghost workers draining the nation’s resources now expunged from the Federal Civil Service.

    N2.29b The amount the government saves monthly for expunging 34,000 ghost workers from payroll.

    $1m The amount saved as a result of President Buhari’s directive stopping the appointment of a government delegation for pilgrimage to Saudi Arabia

    25 On assumption of office, the President cut down the number of ministries from 42 to 25 to reduce the cost of governance.

    $321m The amount Switzerland will repatriate to Nigeria from the illicitly   acquired wealth of the Gen. Sani Abacha family. 

    N7b The amount recovered as at March by the Presidential Committee set up to probe contracts awarded by the Office of the National Security Adviser (ONSA) from 2011 to 2015.

    11,595 The total number of persons rescued by the Nigerian troops during the ongoing operations in the Northaast as at February

    $21m The amount Nigeria has provided to the Task Force since June 2015.

    $5m The support announced in June last year by the U.S. for the fight against the terrorists in the sub-region.

    $40m The amount announced in April 2016 by the U.S. for humanitarian assistance in the sub-region

    $1b The amount being saved annually by the elimination of the Offshore Processing Agreement (OPA) through the introduction of the Direct Sales and Direct Purchase (DSDP) scheme with reputable off-shore refineries

    7m The amount of litres of PMS produced daily by the Port Harcourt, Warri and Kaduna Refineries

    The report was not just damning. It exposed the country’s nakedness. Titled: “Inside NNPC Oil Sales: A Case for Reform in Nigeria”, it detailed an opaque oil-for-fuel swap agreements, the withholding of an estimated $12.3 billion from the treasury by the Nigerian National Petroleum Corporation (NNPC) and many more.

    Issued by the Natural Resource Governance Institute (NRGI), the report also showed that in 2013, the treasury got only 58 per cent of the $16.8 billion worth of oil the NNPC voted for its underperforming refineries.

    According to Aaron Sayne, who co-authored the report with Alexandra Gillies and Christina Katsouris, there was too much impunity in the oil sector.

    Sayne said: “Oil sales are Nigeria’s biggest revenue stream, but management has worsened in recent years. By our estimate, just three of the problematic provisions in a single swap contract may have cost the government $381 million, or $16.09 per barrel of oil, in a single year.”

    Gillies added: “The combination of a new government and the current budgetary shortfalls offers Nigeria its best chance in years for overhauling NNPC’s oil sales. The status quo is unaffordable. Everyone from trading companies to Nigerian citizens is waiting to see how the new government will approach these transactions, including the allocation of new export or swap contracts. Our research maps the current state of play, and we suggest what issues reformers in Nigeria ought to urgently address.”

     

    A more transparent NNPC

    The report, which was issued before Muhamamdu Buhari came on board as President, was no hold barred. It urged the President to reverse the trend. So, what has Buhari done in the last one year to redirect the oil sector?

    One of the first steps the administration took was to reconstruct the opaque accounting structure of the NNPC to be more transparent. This led to the closure of more than 40 accounts. Now, NNPC publishes its monthly financial reports. Operational deficits have been reduced by not less than 50 per cent. NNPC outstanding Annual Audits from 2011 to 2014 has been conducted.

    The agency is also undergoing other forms of restructuring that will make it an effective entity. This restructuring, said analysts, leaves room for competition, predictable revenue generation and compliance with global best practices.

    Buhari has also resolved the shadowy oil swap deals that had cost the country billions of dollars and left it at the mercy of a few rich Nigerians. The government has also introduced third party financing to eliminate direct funding of cash calls.  The administration has also renegotiated existing service contracts under Joint Venture and Production sharing contracts (PSC) Operations by about 30 per cent leading to operational efficiency improvements and cost reductions.

    The administration has also eliminated the Offshore Processing Agreement (OPA) through the introduction of the Direct Sales and Direct Purchase (DSDP) scheme with reputable off-shore refineries. This has yielded annual savings of $1 billion.

     

    State of the refineries

    Before the inauguration of the current administration, the Port Harcourt and Warri refineries were dormant. Now, they are back in operation with 60 per cent capacity and producing 7 million litres of PMS daily. The Kaduna refinery also resumed production at the end of the April, 2016.

    Minister of State for Petroleum Dr Ibe Kachiwku said the government was looking at privatising the refineries within 12 months. He said oil giants Agip and Chevron have indicated interest in purchasing two of the refineries.

    “We have gotten commitments from some of the majors. Agip has indicated interest to work with us on Port Harcourt, Chevron on Warri. We are talking to Total on Kaduna,” Kachikwu told Reuters.

    He explained that the government had been able to recover the two critical crude supply pipelines; which were Escravos/Warri and Bonny/Port Harcourt crude supply pipelines.

    Kachikwu said the pipelines were down for six to seven years but had been repaired and were working and supplying crude to the refineries.

    “For the first time, the refineries will get their crude, pay for it; they will sell their products and they will earn the income from that product. And then, they can develop and continue to maintain the refineries even after this intervention is over.

    “Port Harcourt is back in production, Warri is back in production… It is something of joy,” he said.

    Also, Kachikwu said about 25 licences that were given to private operators between 2002 and 2014 to build refinery complexes in Nigeria would be reviewed and inactive ones would be  revoked.

    He said: “The next stage of this is that we are going to look at all the licences that have been given out; some of them were given a window within which to build their refineries and we are going to revoke the ones that were not used.

    “The reason they did not use the licences is that unless the price is right on the outer point, your economics cannot balance. So, no refinery investment in the world comes to a country where there is no liberalisation and it is not just Nigeria because if you don’t liberalise, nobody is going to invest in your refineries.

    “So, that is why they did not, a lot of them thought it was nice to have licences but as soon as you move into the capital market and you do your analysis, you realise this.”

     

    Bailout for states 

    At the time Buhari took over, many states were struggling with arrears of salaries. To alleviate the suffering of Nigerians, the President last September directed the Central Bank of Nigeria (CBN) to disburse N689.5 billion as bailout to 27 states to pay salaries.

     

    And last month, as a way of stimulating the economy and reduce poverty, Buhari approved deferment in the payment of the bailout because states were under the burden of the fall in commodity prices.

     

    Killing the ghosts in civil service

    Every month, the government was losing N2.29b to the payment of more than 34,000 ghost workers. An audit carried out by the Buhari administration revealed this drain and it has since been blocked.

    Finance Minister Mrs Kemi Adeosun said the deploying the Bank Verification Number (BVN) revealed the ghost workers. Initially, 23,000 ghost workers were discovered and less than three weeks later, another 11,000 ghost workers were also discovered on government’s payroll.

     

    TSA and cutting of wastages

    The implementation of the Treasury Single Account (TSA) has provided greater visibility of government revenues and cash flows. Between June 2015 and April 2016, the Federal Government TSA collection stood at N3trillion. This was made possible by Buhari’s directive to Ministries, Departments and Agencies of government to close multiple accounts, thereby plugging loopholes for leakages.

    To save funds, Buhari cancelled government sponsorship of delegation for pilgrimage to Saudi Arabia. Through this, the government says it has saved about $1m and N30m on local expenses.

    To reduce the cost of governance, the President cut down the number of ministries from 42 to 25. Also, the President directed that all top government officials must prioritise foreign travels and use only business class tickets, instead of first class tickets as was previously obtainable.

     

    A war on high pedestal

     The anti-corruption war of the current administration is one thing that is clear to all as one of the things that have changed in the last 12 months. Right from the moment he won the presidential election, Buhari’s no-nonsense and incorruptible mien sent a signal to looters of public funds, with many of them returning funds stolen under the Goodluck Jonathan administration.

    As a way of creating a frame work for prosecuting the war against corruption, Buhari set up an Advisory Committee on War Against Corruption headed by Prof Itse Sagay. The anti-corruption battle has seen several high profile cases going on in the courts. Such cases include the ones against former Peoples Democratic Party (PDP) spokesman Olisa Metuh, Daar Communications Chairman Dr Raymond Dokpesi and former Chief of Defence Staff Alex Badeh.

    In March, the Presidential Committee set up to probe contracts awarded by the Office of the National Security Adviser (ONSA) from 2011 to 2015 announced the recovery of over N7 billion from indicted companies and individuals.

     

    No longer a pariah state

    Unlike in the past, the international community has warmed up to the Buhari administration in the last twelve months. And Buhari has enlisted the support of multilateral institutions, such as the World Bank and IMF, security agencies, Western countries and other friendly nations to source, locate and repatriate stolen assets.

    At one of his international engagements, specifically the London summit on anti-corruption, Buhari announced that Nigeria would begin the full implementation of the principles of the OPEN contracting data standards.  This was in furtherance of his trips to the Middle East, where he had gone to sensitise the governments on the need to repatriate stolen assets and hand over the looters for trial in Nigeria. In January, Nigeria and UAE signed Judicial Agreements on Extradition, Transfer of Sentenced Persons, Mutual Legal Assistance on Criminal Matters.

    The Federal Government and the Swiss Government in March signed a Letter of Intent on the Restitution of Illegally-Acquired Assets forfeited in Switzerland. Under the agreement, Switzerland will repatriate $321 million illicitly   acquired by the Gen. Sani Abacha family.

     

    Boko Haram: No longer

     the Lord of Sambisa

    The president was aware of the magnitude of the Boko Haram challenge. No wonder one of the first things he changed was the military structure, which led to the relocation of the Nigerian Military Command Centre to Maiduguri in May last year. This has contributed to the success in the fight against insurgency in the Northeast.

    The results are glaring:   Over 11,595 persons have been rescued by the troops, including one of the Chibok schoolgirls- Amina Ali; since last December, all Nigerian territories previously under Boko Haram control have been regained;   Nigeria has provided $21million to the Task Force since June 2015 and is committed to an additional $79m, bringing the total of Nigeria’s commitment to the Task Force to $100 million; and in June 2015, the United States announced a $5-million support for the fight against the terrorists in the sub-region.

    The seriousness with which the administration has pursued the anti-terror war has also led to the U.S government further announcing an additional $40 million for humanitarian assistance in the sub-region

    In May, the country hosted a Regional Security Summit to boost military operations against Boko Haram and forge a global support for the rehabilitation of the IDPs and rebuilding of the North East.

    The government has ensured a cohesive international support in the fight against terrorism and assistance to victims and communities affected by terrorism.

     

    The president also did these

    In April, Buhari ordered the release of 10,000 tons of grains from the National Strategic Grains Reserve to cushion the effect of rising food prices. He also directed the Ministry of Agriculture to provide assistance to able-bodied men and women in IDP camps return to farming.

    The President directed the CBN to clear all the outstanding allowances of former militants studying in various institutions across the world. He salvaged the Amnesty Programme by giving it a new vision of catering for the weak, the poor and the vulnerable, instead of enriching a few.

    Buhari also ordered a fast-track of Ogoni clean-up, acting on a United Nations Environmental Project Report abandoned by the previous administration.

    Special Adviser to the President on Media Femi Adesina said the next one year would bring better goodies for Nigerians. Adesina said the government has laid a proper foundation capable of putting the country on the right footing.

  • NNPC’s cash call debts hit $7b

    NNPC’s cash call debts hit $7b

    Nigerian National Petroleum Corporation’s  (NNPC’s ) debt overhang in cash calls to  multinational and indigenous oil companies it operates Joint Venture (JV) project with, has reached about $7billion, it was learnt at the weekend.

    Cash calls is the counterpart funding the NNPC pays yearly for the 60 per cent equity shareholding it owns in various oil and gas fields operated by International Oil Companies (IOCs) and indigenous oil firms (independents).

    The Corporation has over the years been battling to clear the cash call arrears, which have been revolving around $5 billion. The Federal Government is determined to settle the arrears to the operators of the various JVs  the Minister of State for Petroleum Resources and NNPC Group Managing Director, Dr Ibe Kachikwu, has said.

    However, it is feared that the prevailing low oil price regime, which has reduced the nation’s revenue from oil, may prevent the government from accomplishing  its desire to settle the $7billion  debt .

    It was learnt that as at January this year, NNPC owed the IOCs cash call arrears of $5.5 billion, while their  indigenous counterparts are being owed $1.1 billion, and an estimated $400 million that would have accrued between January and now.

    The Federal Government said it is considering the adoption of zero funding model for the JV operations from next year to halt the growth of the cash call arrears but there are still concerns about the model.

    The zero JV funding seeks to empower the operators not to wait for the NNPC counterpart funding before going on with operations and projects implementation. Therefore, the operators will source funds and go ahead with projects’ implementations, while the NNPC’s bureaucratic processes of approval including endorsement by the National Assembly continue. The operators of the JVs will deduct costs at the end and remit what is due to NNPC at the end of the deal.

    An industry source told The Nation that the zero funding model being contemplated by the state-run oil firm will cost it more as the operators will source funding from banks, and interests paid on such loans secured by the oil firms will be factored into the cost of production.

    The source said if the government lacks capacity to pay its cash calls, let it choose from some alternative options including divesting some of its equity holdings to indigenous firms, adopt crude for cash calls or privatise the NNPC. According to the source, NNPC has only been able to meet only 30 per cent of the 60 per cent cash call it is supposed to pay. “As long as the funding issues exist, production will adversely be impacted,” the source said, warning that JV oil production has since dropped to one million barrels per day (bpd) as against about 2.5 million bpd in the past due to JV budget delay.

  • NNPC, SNEPCo celebrate musical talents in Lagos

    The choir of the Murtala Mohammed Airport Secondary School, Ikeja – Lagos has won the just concluded 14th edition of the all Lagos secondary schools choral competition, sponsored by the Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration and Production Company (SNEPCo).

    With a brilliant rendition of Sally Albrecht’s Friends on Our Left, and William Barnes’ Linden Lea, the school’s mixed choir cruised home to victory, earning them individual prizes and musical instruments for their school. Halifield Secondary School, Maryland, came second, while Holy Child College, Obalende, emerged third.

    Special guest of honour at the event and wife of the Lagos State Governor, Mrs. Bolanle Ambode, praised the NNPC/SNEPCo initiative, noting that beyond the competition was the opportunity to groom songsters who combine their musical talent with education.

    In 14 years since the programme began, many young talents have been discovered, raised and nurtured to stardom. The first lady, represented by Mrs. Jumoke Adeyemi, said: “I urge all of you children to invest your time wisely in useful and productive engagements like music.”

    The Group General Manager, National Petroleum Investments Management Services (NAPIMS), Mr. Dafe Sejebor, restated the commitment of the agency to the support of “initiatives that will positively impact the lives of Nigerians.” Represented by Mrs. Bunmi Lawson, the NAPIMS boss noted that music had the potential to help students in the development of their brain and raising their state of consciousness, among other benefits.

    In his remarks, Managing Director of SNEPCo, Mr. Bayo Ojulari, represented by the Government Relations Manager, Alan Udi, said SNEPCo was committed to preserving the dying culture of traditional folksongs, and the moral lessons that they teach. “SNEPCo views music as a crucial community builder. We are therefore committed to engaging and empowering our young people, giving them the opportunity to develop their talents in all areas.”

  • TMG wants Kachikwu to resign over hike in fuel price

    TMG wants Kachikwu to resign over hike in fuel price

    The Transition Monitoring Group, TMG Thursday demanded the immediate resignation of the Minister of State for Petroleum Resources and the Chief Executive of the Nigerian National Petroleum Corporation, NNPC,  Ibe Kachikwu over the hike of the price of Petrol.

    The TMG in a statement issued in Abuja Thursday and signed by its Chairman, Ibrahim Zikirullahi said it “stoutly rejected  the N145 pump price of petrol imposed by Federal Government”

    TMG said, “to  say the least, this imposition portrays the government as insensitive, and out of touch with the daily unbearable plight of the ordinary Nigerian.

    “Coming at a time when the implementation of the recently signed 2016 Budget, is yet to take off, the hike in the face of groaning and pains, is ill-timed and badly advised.

    “It is tantamount to killing a willing horse to ask the Nigerian people, who are already carrying the heavy burden of the failure of governance over the years, to take on one more load of extreme economic hardship, as represented by the imposed price of petrol.

    “As a grassroots coalition, which has tried to rally patriotic support for the anti-corruption crusade and other government initiatives, which we believe would make the lives of Nigerians better, we must stress that our support of the government is conditioned by the impact of its policies on the long suffering people of this country.

    “Our allegiance is to the Nigerian people, and whenever they come under the hammer blows of insensitive policies, we are duty-bound to speak up in defence of ordinary citizens.  As is the case with this latest hike, we must place it on record that it is absolutely anti-people.

    “TMG will join forces with Labour and other activists to resist this hike. With the many economic woes afflicting the country, including job losses, massive unemployment and galloping-inflation, the least we expected the government to do was to give Nigerians a breather, and allow some form of recovery to take place through a stimulus package injected into the economy to rev it back to life before placing any further burdens. To our utmost disappointment however, ordinary Nigerians have been hung out to dry, and left at the mercy of shylock fuel importers. These importers who can mobilize funds to import petrol, but cannot invest in refineries, are the ones being given a free rein to exert profit from the blood and sweat of ordinary citizens.

    “The Nigerian people feel particularly let down by the unending flip-flopping of the Minister of State for Petroleum Resources, Ibe Kachikwu. Kachikwu’s chameleonic pronouncements on the fuel situation over the past months have left many Nigerians befuddled. One minute he is declaring that refineries have started production, the next minute, he is telling the nation all manner of cock and bull stories about strategic reserves, and the effect of the activities of economic saboteurs. We wonder why ordinary Nigerians would be made to bear the brunt of the crimes of economic saboteurs, whom government with all its might is not ready to deal with.

    “This endless prevarication has kept Nigerians in the dark about the real issues in the oil and gas sector. Kachikwu’s trumpeted move to unbundle the Nigeria National Petroleum Corporation was touted by him as panacea to the issues in the oil and gas sector. As it stands it has all become motion, at the expense of real impact. As if to add insult to injury, Kachikwu’s announcement of the hike failed to provide any road map towards ending importation of petrol, which is the root cause of the current crisis. On the basis of these and many more indiscretions, TMG calls on Kachikwu to immediately throw in the towel, as he has serially demonstrated a lack of understanding of the issues in the oil and gas sector. TMG calls on all Nigerians to reject this insensitive hike in the price of petrol, and prepare for mass action to send a clear message that this imposition cannot stand,” the statement said.

  • Nigerians react to N145 fuel price

    Nigerians react to N145 fuel price

    Nigerians on Wednesday reacted to the new pump price announced by the Minister of State for Petroleum, Ibe Kachikwu.
    Recalled that the Federal Government has approved an increase of Premium Motor Spirit (PMS) normally referred to as petrol to be sold not more than N145 per litre effective from 11th May, 2015.
    The Petroleum Products Pricing Regulatory Agency (PPPRA) is expected to accordingly announce the new price. Recall that the product was selling for N86.50 per litre.
    The Minister of State for Petroleum Resources, Ibe Kachikwu revealed this to the State House correspondents at the Presidential Villa, Abuja.
    Find the reactions below:


  • FG to pay subsidy on PMS

    FG to pay subsidy on PMS

    The Federal Government said it would pay subsidy on Premium Motor Spirit from the recoveries made in the first quarter of 2016.

    This is contained in the latest Petroleum Product Pricing Regulatory Agency (PPPRA) template released in Abuja.

    It said that between January and March, the Federal Government was able to save about N10 billion as a result of selling the product above the Expected Open Market Price.

    According to the new template, the expected open market price of the Premium Motor Spirit (PMS) has risen to N99.38 per litre for independent and major oil marketers and N98.62 per litre for NNPC retail outlets.

    It added that the expected open market price was the actual price of the product without subsidy and it was based on the current exchange rate of N197 to a dollar.

    It said that at the current price of N86 per litre at NNPC retail outlets, the Federal Government was paying N12.62 per litre as subsidy on the product and N12.88 per litre as subsidy for other oil marketers’ price of N86.50.

    A breakdown of the template revealed that for NNPC retail outlets and independent and major oil marketers, the Landing Cost of PMS imported into the country was N84.32 and N85.08 per litre respectively.

    It stated that the distribution margin, which include retailers, transportation, bridging fund and dealers margin among others stood at N14.30 for both the NNPC and other marketers.

    According to the statement, this brings the current Expected Open Market Price to N98.62 and N99.38 for NNPC retail outlets and other marketers respectively.

     

  • NNPC to drill for oil in Chad Basin this year 

    NNPC to drill for oil in Chad Basin this year 

    Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC) Dr. Ibe Kachikwu has said the NNPC  will drill for oil in the Chad Basin in the last quarter.

    He reiterated the commitment of the Federal Government and the NNPC to explore for oil and gas in the inland basins, especially Chad Basin and the  Benue Trough.

    Kachikwu said the NNPC, through its Frontier Exploration Services and Renewable Energy Division (FESRED) had progressed reasonably with seismic acquisition activities in the Chad Basin frontier area until insurgency necessitated the suspension of operation.

    He said eight phases, out of the planned 12-phase project, to cover 3,550 sq.km had been acquired by the date of suspension of operation on November 24, 2014.

    NNPC’s Group General Manager,  Group Public Affairs Division Malam Garba Deen Muhammad, in a statement, quoted Kachikwu as saying: “A total of 1, 962 sq. km was acquired and processed, interpretation is on at 90 per cent completion, and drilling activities will commence by the last quarter of 2016.”

    He explained that seismic activities were carried out with regard to environmental protection and in accordance with international standards and best practices and handled by Integrated Data Services Limited (NNPC subsidiary) and BGP, a subsidiary of China National Petroleum Corporation.

    According to him, exploration in the Chad basin would increase the nation’s oil and gas reserves and add value to the hydrocarbon potential of the Nigerian inland basin, provide investment, boost the economy as well as create jobs.

    “The decision to diversify our business portfolio is about all of us and about the future of our country, the vision is clear, and we are determined not to fail,’’ Kachikwu said.

    He invited the private sector and venture capitalists across the globe to partner NNPC in planned Special Purpose Vehicles (SPVs) to profitably harness the enormous energy resources in Nigeria.