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Tag: NNPC

  • Reps invite Alison-Madueke to explain roles in crude oil swap

    Reps invite Alison-Madueke to explain roles in crude oil swap

    The House Representatives committee on Crude Oil Swap on Monday formally invited the former Minister of Petroleum Resources, Mrs. Alison – Madueke, to come and make clarifications on the crude oil swap arrangement under her supervision.

    In a letter dated February 22, 2016 and signed by the Chairman of the ad hoc committee, Hon. Zakari Mohammed, the former minister is expected to appear before the lawmakers on Wednesday, March 2, to explain her role in the product swap arrangements with oil marketing companies.

    The letter which was sent through the Group Managing Director of Nigerian National Petroleum Corporation (NNPC) reads:

    “Preponderance of the document and evidence at the hearing points to the need to invite you for further clarification on the issue.”

    The committee requested that she provides documents which include -a full brief on all swap arrangements, a proof of Presidential /Federal Executive Council approval, NNPC board resolution on the contract, evidence of the approval limit of the board, that of the minister of petroleum and that of the GMD of NNPC.

     

  • We ‘ll complete gas projects, says NNPC

    We ‘ll complete gas projects, says NNPC

    The Nigerian National Petroleum Corporation (NNPC), has expressed its readiness to complete ongoing gas projects aimed at linking gas-to-power and gas-to-industries to boost the national economy.

    Making a presentation during the Senate Committee on Gas oversight visit to the NNPC Towers in Abuja, the Group General Manager, Gas Infrastructure Development (GID), Engr. Farouk Said, said the Corporation is currently working on six priority gas projects that would reposition the country for profitability.

    Said explained that the current gas infrastructure projects being executed are in tandem with the Gas Master Plan which was approved by the last Federal Executive Council adding that the plan would have a spin off effect on the Gross Domestic Product (GDP) of the country.

    A statement by the Corporation’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, yesterday, quoted Said as saying: “In line with the mandate of GID, we are currently executing six critical gas infrastructure projects. Four of them are pipeline projects; the others are the Gas Revolution Industrial Park (GRIP) and the Western and Central Processing Plants.”

    He said the Escravos Lagos Pipeline System II (ELPS) is a 36 inch diameter and 342 kilometer pipeline which traverses Delta, Edo, Ondo, Ogun and Lagos states stressing that the project is expected to be commissioned in the second quarter of this year.

    Said noted that on completion, the ELPS II would double the capacity of existing ELPS which currently supplies 1.1 trillion standard cubic feet of gas per day noting that the pipeline would serve as a back bone of power supply as most of the power plants are located along the ELPS axis.

    On the GRIP, Engr. Said said: “We have completed concept master plan; we have also done ground breaking ceremony. We have cleared 535 hectares of the land out of the 585 hectares earmarked for GRIP. Nigeria Export Processing Zone Authority (NEPZA) has also appointed a developer and an alignment meeting has been scheduled for the end of this month where all the stakeholders would get together including the investor to factor the way forward for the project.”

  • N13.9 arms deal: FG accuses Dasuki of plotting to scuttle trial

    N13.9 arms deal: FG accuses Dasuki of plotting to scuttle trial

    • Court to rule Feb 8

    The Federal Government Thursday accused former National Security Adviser (NSA), Mohammed Sambo Dasuki of plotting to scuttle his trial before a High Court of the Federal Capital Territory (FCT), Maitama, Abuja.

    Dasuki is being tried with a former Director of Finance and Administration, Office of the National Security Adviser, Shuaibu Salisu, a former General Manager, Nigerian National Petroleum Corporation (NNPC), Aminu Babakusa and two  companies – Acacia Holdings Limited and Reliance Referral Hospital Limited  – on a 19-count charge  bordering on money laundering and criminal breach of trust.

    The accusation is contained in a counter-affidavit filed by the prosecution against an application filed by Dasuki.

    The ex-NSA is, in an application he filed last month, accused the prosecuting agency, the Economic and Financial Crimes Commission (EFCC) and by extension, the Federal Government, of breaching his right to prepare for his defence by re-arresting him after the court granted him bail on December 18 last years.

    He urged the court to among others, restrain the prosecution from proceeding with the trial or quash all the charges against him on the ground that the prosecution could no longer proceed with the case having allegedly flouted the court’s order granting him bail.

    Arguing the prosecution’s counter -affidavit Thursday, prosecution lawyer, Rotimi Jacobs (SAN) contended that the application was misconceived and an attempt to frustrate proceedings in the case.

    He faulted Dasuki’s claim that the prosecution has flouted the court’s order.

    He noted that Dasuki, in an affidavit supporting his application, admitted that he was released from Kuje Prison after he met the bail condition.

    Jacobs argued that having admitted that he was released from prison based on the bail granted him, Dasuki could not now turn around to accuse the prosecution of disobeying the court’s order granting him bail.

    The prosecution lawyer noted that Dasuki was re-arrested by the Department of State Services (DSS) in respect of separate allegations of criminality.

    He argued that it was wrong for Dasuki to seek to hold EFCC for contempt on account of actions taken by the DSS. It was his position that Dasuki ought to initiate fundamental rights enforcement proceedings, under Section 46 of the Constitution, if he was convinced that the re-arrest amounted to a violation of his rights.

    Jacobs noted that the order for bail made by the court on December 18 last year did not restrain other security agencies from further arresting him in relation to separate offences.

    “It is the EFCC that is prosecuting this case. The DSS has a separate case against him before the Federal High Court. If he has anything against DSS for re-arresting him, he should go before the FHC.

    “This application is intended to delay the trial here. The application is an abuse of court process.

    “They admitted in their affidavit that he was released from Kuje prison. By their admission, the order was obeyed. There is no other of this court that has been breached as they alleged.

    “That order granting bail to the applicant (Dasuki) did not confer immunity on him against further arrest,” Jacobs said.

    He urged the court to reject Dasuki’s application on the ground that it was without merit and only intended to delay trial.

    Earlier, while arguing the application, Dasuki’s lawyer, Joseph Daudu (SAN) argued that the re-arrest of his client by DSS was a violation of his client’s right to fair trial and the right to prepare for his defence.

    “The 1st defendant (Dasuki) was granted bail on December 18, 2015 he perfected the bail, but shortly afterwards, the complainant (EFCC) took him (Dasuki) into custody again.

    “We have shown how his denial of freedom has denied him the ability to prepare for his defence. And it is a breach of his right to fair trial.

    “His liberty was breached despite the order of the court. It is our argument that a party in breach of court order cannot seek the court’s indulgence, including seeking to continue with the prosecution of the defendant,” Daudu said.

    He faulted Jacob’s attempt to distinguish between EFCC and DSS, arguing that they were both agents of the Executive, who were allegedly carrying out a purported instruction of the President to keep Dasuki in custody at all cost.

    Jacobs also queried the legitimacy of the powers of the EFCC, DSS and other agencies of the Federal Government to prosecute, arguing that it was only the Nigeria Police Force, under Section 204 of the Constitution that has such prosecutorial power.

    Daudu said his client’s application is intended to compel the prosecution, who is an agent of the Federal Government, to comply with an existing order of the court.

    “The prosecution of all cases should be grounded to compel the Executive to obey court’s orders. It is high time the court asserts itself by insisting that its orders are complied with,” Daudu said.

    He urged the court to grant his client’s application.

    The trial judge, Justice Hussein Baba-Yusuf refused oral applications by other defence lawyers – Akin Olujinmi, Solomon Umoh, A. I. Layonu and Olajide Ayodele (all Senior Advocates of Nigeria) – for an adjournment to enable them file written submission in support of Dasuki’s application.

    The judge held that parties were allowed ample time to file their processes in the case, but Olujinmi, Umoh, Layonu and Ayodeji failed to utilise the opportunity granted to all parytes.

    He upheld Jacobs’ argument that there was no cogent reason adduced by the four lawyers to warrant an adjournment.

    The judge adjourned to February 8 for ruling.

     

  • NNPC scraps crude swap deal

    NNPC scraps crude swap deal

    • To save $1b from initiative

    The Minister of State for Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has said the crude-for-products exchange arrangement popularly referred to as crude swap will be replaced by a Direct-Sale–Direct-Purchase (DSDP) arrangement which would take off next month.

    Dr. Kachikwu spoke when he appeared before the House of Representatives Ad-Hoc Committee set up to investigate the Corporation’s offshore processing and crude swap arrangement between 2010 to date at the National Assembly Complex, Abuja.

    A statement endorsed by the Group General Manager, Group Public Affairs Division, NNPC, Mr. Ohi Alegbe, explained that the minister noted that the DSDP was adopted to replace the Crude Oil Swap initiative and the Offshore Processing Arrangement (OPA) so as to introduce and entrench transparency into the crude oil for product transaction by the state-run oil firm in line with global best practices.

    Under the old order, crude oil was exchanged for petroleum products through third party traders at a pre-determined yield pattern.

    The Minister said the DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of sale and purchase of the crude oil transaction with its partners adding that the initiative would save $1billion for the Federal Government.

    “When I assumed duty as the GMD of NNPC, I met the OPA and like you know, there is always room for improvement. I and my team came up with the DSDP initiative with the aim of throwing open the bidding process. This initiative has brought transparency into the crude-for-product exchange matrix and it is in tandem with global best practices,” he said.

    According to him, the DSDP initiative whittles down the influence of the minister in the selection of bid winners as it allows all the bidders to be assessed transparently based on  their global and national track record of performance before the best companies with the requisite capacities are selected.

    He said the policy is aimed at reducing the gaps inherent in OPA and the losses incurred by the NNPC in the past.

    He stated that the new arrangement would help the Corporation to grow indigenous capacity in the international crude oil business and create job opportunities for indigenous companies that are selected.

    The GMD said the DSDP initiative gives other government agencies such as the Bureau of Public Procurement (BPP) and Nigeria Extractive Industry and Transparency Initiative (NEITI) the opportunity to be part of the bidding process in order to engender adherence to due process.

    Speaking on some of the reported misgivings by some federal agencies over alleged non-transparent nature of past crude-for-products exchange arrangements, the minister assured that the reconciliation process was ongoing and that going forward the Ministry would deploy technology to track cargoes and trans-shipment at the reception depots in order to forestall any incidence of round-tripping.

    Dr. Kachikwu said the price modulation policy has rid the Federal Government of the burden of subsidy on imported petroleum products in January this year.

  • CNPP urges transparency in NNPC probe

    CNPP urges transparency in NNPC probe

    The Conference of Nigerian Political Parties (CNPP) has urged the Federal Government to ensure transparency and probity in the on-going probe of the past financial transactions of the Nigerian National Petroleum Corporation.

    The CNPP in a statement by its Secretary General, Chief, Willy Ezugwu, in Abuja, Monday, said that the reforms being introduced by the Minister of State/Group Managing Director of the corporation, Dr. Ibe Kachikwu, has exposed the activities of the cabals who had held the oil sector hostage.

    According to the statement, Ezugwu said that the best gift the President had brought to the table in recent times was the appointment of a non-partisan professional and technocrat, Kachikwu as the minister of state GMD of the corporation.
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    The organization warned that it was aware of moves by some cabal to blackmail the minister and continue business as usual.

    It warned that Nigerians were ready to defend the minister in his attempt to sanitize the sector.

    The CNPP maintained that Nigerians now had hope in the leadership of the oil sector that had seen some positive and masses oriented reforms in the last few days and thereby warned that the upcoming probe by the government should not be politicized for any reason.

    “CNPP is aware that the worst set of dangerous black marketers in the world exist within the NNPC as oil cabal and this is to sound a warning to them that Nigerians will not tolerate any unwarranted attack under any guise by these agents of darkness to either bring the corporation down or pull the government down on its people oriented leadership,” the statement read.
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    He said Kachukwu had proven to be interested in probity and transparency of every single Kobo that the country earns from crude oil, adding that “we would encourage him to keep his books open and allow Nigerians to face the cabal while himself and the President are allowed to concentrate.”

    He urged Kachikwu to be courageous, saying he has the support of Nigerians.

  • Northern youths declare support for Kachikwu

    Northern youths declare support for Kachikwu

    Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, has been urged to remain resolute in his drive to sanitize the petroleum sector from the rot of the past.

    The National President, Arewa Youth Integrity Forum, Alhaji Audu Zakari with journalists in Abuja, said that the group has great confidence in the ability of Mr. Kachikwu to manage the affairs of the ministry.

    Zakari condemned the recent attempt to link the minister, who is also the Group Managing Director of the Nigerian National Petroleum Corporation to alleged manipulation in the NNPC.

    They urged Kachikwu not to be deterred by the cabals in the sector, who he said, are not happy with new reforms introduced by the minister.

    He said: “The recent attempt to blackmail the minister by a faceless group known as South-South All Progressive Congress Youths which tried to fruitlessly link the minister to alleged manipulations in the NNPC is a typical demonstration of corruption fighting back.

    He said its investigation had revealed that Dumebi, whose name has become a tool in the hands of mischief makers, had no experience in the oil sector.

    “His major areas are Telecoms and Agriculture, especially animal husbandry,” he said.

    “It is obvious that every Nigerian is now happy that for the first time the high tower is experiencing peaceful and positive changes without the usual hardship that citizens were made to go through in the past as a result of deregulation.

    “His choice by President Muhammadu Buhari is a clear demonstration of his full understanding of the sector being a former Minister and an active player in the industry,” he added.

    According to Mr. Zakari, the Minister of State for Petroleum, Dr. Emmanuel Kachikwu deserves commendation over his handling of the oil sector since assuming office, warning that  it is no longer business as usual.

    It would be recalled that a group known as South-South All Progressive Congress Youths had recently accused the younger brother of the Minister of state for petroleum of interfering with the operations of the NNPC.

    “They are angry that the President has appointed somebody that has refused to share our money for them to sleep at Nicon Hilton Abuja. The same persons yesterday could sit down to allocate to themselves oil lifting licenses and are bitter that the system has changed,” he added.

     

  • Tax evasion: FIRS to probe firms operating with NNPC

    Tax evasion: FIRS to probe firms operating with NNPC

    All companies operating operating with the Nigerian National Petroleum Corporation  (NNPC) are to be subjected to tax examination by the Federal Inland Revenue Service  (FIRS), it emerged yesterday.

    This followed the discovery during on-going House of Representatives investigation into crude for refined product exchange arrangement (oil  swap) of the NNPC that most companies operating with the NNPC do not have tax returns records with the FIRS.

    FIRS had told the Committee that following its directives, Duke Oil Global Investment refused to furnish it with tax returns.

    Duke Oil’s Managing Director Abdulkadir Seidu said the letter writen to his office was not addressed to his company.

    Invariably, the Committee asked for verification of  names and location of all compnaies in the name of Duke Oil.

    In response to questions, FIRS Coordinating Director (Domestic Taxes group), Babatunde Ajayi said a trading firm involved in the NNPC oil swap arrangement, Trafigura Nigeria Ltd has not filed any tax returns with the agency despite engaging in oil transactions in Nigeria.

    Under the swap programme, Trafigura has lifted about 12 million metric tonnes.

    Representative of the non-resident company, James Juslin had earlier during the investigative hearing, said the firm has no tax obligations to Nigeria being an international company.

  • Fire guts Abuja NNPC mega station

    Fire guts Abuja NNPC mega station

    The Nigerian National Petroleum Corporation (NNPC) mega station at the Central Business District in Abuja has been gutted by fire.

    A member of staff at the mega station who preferred anonymity told the News agency of Nigeria(NAN) on Monday that the fire started around 10 p.m. ‎when a tanker was discharging fuel to the tanks of the petrol station.

    The source said that no casualty nor injury was‎ recorded but noted that some sections of the filling station were affected by the inferno.

    It added that the fact that it was weekend and late in the evening, reduced the risk of casualties and significant damage.

    He said that officers and men of the Federal Fire Service Abuja were on hand to tackle the fire and helped in preventing it from spreading to neighbouring buildings.

    Some eye witnesses confirmed that the prompt response of the fire service helped the situation.

    Yarima sani, an eye witness, said, “I was driving close with the intention to fill up my tank when we were asked to use a different road that there was fire at the station.

    “I parked and trekked and I saw the fire service people were already there helping to quench the fire,” he said.

    He added that some security men helped in controlling traffic.

    Commenting on the situation, Mr. Collins Elechi, Public Relations Officer, Federal Fire Service Abuja, confirmed the incident to NAN.

    He said that the fire started around 9.28 p.m. while a tanker was discharging product. He said the service received a distress call immediately and quickly deployed its men to the scene.

    “Our fire fighters responded immediately to the fire outbreak on Sunday at the mega station.

    “The quick intervention limited the loss to the vehicles alone.

    “It could have been more devastating if it had happened in the day time, especially afternoon, “he said.

    He called on filling stations to be cautious while discharging petroleum products.

     

  • Kerosene to sell at N83 – PPPRA

    Kerosene to sell at N83 – PPPRA

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has increased the price of Household Kerosene from N50 to N83.

    This is contained in its products pricing template, released on Sunday in Abuja.

    It stated that the N83 per litre price applied only to the Nigerian National Petroleum Corporation (NNPC) outlets.

    The template also showed that at N83, the Federal Government will be making a gain of N10.72 on every litre.

    It further puts the expected open market price, which is the landing cost plus total margins at N72.28 per litre.

    The expected open market price is the prevailing open market rate for the product in Nigeria, after taking certain costs into consideration.

    Giving a breakdown of the price, the PPPRA template put the landing cost of ‎the product at N57.98 per litre, while the total margin due‎ middlemen was put at N14.30.

    The retailers’ margin was put at N5 per litre; transporters at N3.05 per litre while dealers at N1.95 per litre. It further put the bridging fund at N5.85 per litre; marine transport average at N0.15 and Administrative‎ Charges – N0.15.

    It stated that the official ex-depot price, which depot owners would sell to marketers, is N68.70 per litre. The official ex-depot price for collection is N73 per litre, while ex-coastal price is N68.02 per litre.

  • Senate committee demands audited accounts of NNPC, others

    Senate committee demands audited accounts of NNPC, others

    • Agencies give year 2020 deadline to end gas flaring

    The Senate Committee on Gas Resources yesterday asked the Nigerian National Petroleum Corporation, (NNPC) and its subsidiaries to submit all their detailed audited accounts for the past three years.

    The Committee also blamed Federal Government agencies for the worsening gas flaring in the country.

    The committee noted that inability of relevant enforce payment of stipulated penalties on erring International Oil Companies, (IOCs), was mainly responsible for increased gas flaring.

    Apart from the NNPC, others mandated to submit their audited accounts are the Nigerian Petroleum Development Company (NPDC), Nigerian Petroleum Investment and Management Service (NAPIMS), Nigeria Liquefied Natural Gas (NLNG).

    Chairman of the committee, Senator Albert Akpan, gave the directive during the committee’s engagement with the agencies in Abuja.

    Akpan said the directive was in line with the mandate of the committee in its ongoing investigation into the activities of the agencies.

    He said that details of the accounts must be submitted as soon as possible to enable his committee meet its deadline given by the Senate.

    The audited account, he said, would afford the committee the opportunity to know the joint venture funding and cost determination of the oil companies and government agencies.

    He said: “From the audited account, we will know also who approves projects and how are the projects monitored and the mechanism for cost recovery and monitoring of the projects.”

    Akpan also asked the agencies to present the data of the quality of gas flared by the oil companies in the past two years.

    He said, “Give us the submission of the gas that you have flared and each of your operators involved. The quality of gas flared, the operators, the terminal and the related penalties paid.”

    The panel chairman frowned at the 2016 budget of the Department of Petroleum Resources, saying that N3 billion only earmarked by the agency on penalties for gas flaring, was grossly inadequate.

    Group General Manager, NAPIMS /NNPC, Dafe Sajebor and the Managing Director of National Petroleum Development Corporation, Sadler Mai-Bornu, assured that the organizations were working assiduously to end gas flaring in the country between 2018 and 2020.

    “The percentage of gas flared in the country is of average, seven percent and we are still working on a number of projects to flare out; we are targeting 2018 for us to have a total flare out.

    “Those evolutions have  been translated and proposed for better fiscal regime in the Petroleum Industry Bill, PIB, and that is why we are praying and hoping that the PIB should be passed so that Nigerians can derive better benefits from the oil and gas investment,“ the NAPIMS boss said.