The Nation Newspaper

Tag: NNPC

  • NNPC, indigenous oil producers must work closely – Buhari

    NNPC, indigenous oil producers must work closely – Buhari

    President Muhammadu Buhari on Wednesday assured indigenous companies operating in Nigeria’s oil and gas sector of full support and protection of his administration.

    He gave the assurance during a meeting with members of the Independent Petroleum Producers Association at the Presidential Villa, Abuja.

    The President also directed the management of the Nigerian National Petroleum Corporation (NNPC) to work more closely with the indigenous oil producers to resolve the problems they currently face.

    Buhari in a statement issued by his Senior Special Assistant on Media and Publicity, Garba Shehu, commended the IPPA determination to increase the participation of Nigerians in the nation’s oil industry.

    He promised to do all within his powers to address their current challenges.

    “We have the manpower for a more effective participation in our oil industry. We will give you all possible encouragement.  You certainly won’t be ignored under my leadership,” President Buhari told members of the association which represents about 20 Nigerian companies operating mainly on onshore fields.

    He particularly assured the Nigerian oil producers that the present administration will take appropriate actions to maintain and enhance security in their areas of operation, noting that better security will help to lower production costs.

    Mr. Austin Avuru, who spoke on behalf of the Nigerian oil producers, listed the challenges currently faced by the group as security and the funding of joint ventures with the NNPC.

    He said the indigenous oil producers were already making significant contributions to the development of the Nigerian economy and could do more with the support of the present administration.

     

     

  • Oil workers kick as NNPC moves to axe 700 jobs

    Oil workers, acting under the aegis of the  National Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association of Nigeria (NUPENGASSAN),  and the National Union of Petroleum and Natural  Gas Workers (NUPENG) have rejected  plans by the Nigerian National Petroleum Corporation (NNPC) to sack seven hundred of its workers, The Nation has learnt

    It was gathered that the workers were holding consultations to stave off any immediate or future plans to lay off any of its members by the management of the NNPC.

    The source said ongoing meeting between NNPC Group Managing Director (GMD), Dr Emmanuel Kachikwu and the representatives of the workers, would try and address the issue of retrenchment of workers in the industry.

    The workers, had penul-timate last week, urged President Muhammad Buhari, to wade into the issue with a view to compelling the GMD not to sack its members.

    PENGASSAN’s spokesman, Babatunde Oke, said workers have protested the sack at the NNPC few days ago to win support for their actions.

    NNPC, through its spokesman,  Ohi Alegbe has rebuffed the claims that the state-run oil firm is going to axe 700 jobs.

    Alegbe said ongoing restructuring at the firm would not warrant massive job cuts, as being speculated by the workers, adding that it would only affect top management workers and that most of those affected had already been fired.

  • Fasehun, Adams, Dokubo, others unite against NNPC

    Fasehun, Adams, Dokubo, others unite against NNPC

    • Demand pay for services rendered

    Factional leaders of the Oodua People’s Congress (OPC), Dr. Frederick Fasehun and Otunba Gani Adams, as well as other beneficiaries of the controversial Pipeline Security and Surveillance contracts, who met at the weekend called on the Nigerian National Petroleum Corporation (NNPC) to pay  their outstanding fees by the end of the month, or face legal action.

    NNPC on June 15, terminated the contract awarded under President Goodluck Jonathan to various ?private security firms to safeguard pipelines against vandals..

    The companies are New Age Nigeria Limited (Fasehun); Donyx Global Concept (Adams); ATEF Nigeria Limited (Asari Dokubo); Galery Security Services Limited (Bibo Ajube); Bajeros Nigeria Limited (Joshua Machiever); Close Body Protection Limited (High Chief Omo) and Izon Ibe Security Limited.

    In an open letter addressed to President Muhammadu Buhari, they claimed that they had a three-month contract with the NNPC, from March 15 to  June 15, which they delivered on but are yet to be paid.

    They alleged that the NNPC has refused to pay its indebtedness to them, insisting that they are demanding their entitlement and not a handout or favour.

    They debunked claims that President Jonathan was the one who gave them the contract in order to secure his re-election, adding that due process was followed between them and the Management of the NNPC, before the contract was awarded.

    While noting that they incurred losses ranging from death of personnel, injuries, as well as borrowed ?money from the banks to execute the contract, they insisted that weekly reports and monthly meetings were held with the NNPC.

    ”It should be known that the contractors had valid and duly signed contract agreements with the management of the NNPC to protect the pipelines for a period of three months.

    “Up on till now, the public perception of the NNPC Pipeline Security and Surveillance job was that former President Goodluck Jonathan gave the job to the contractors on the platter of politics. But nothing can be farther from the truth than this.

    “Therefore, for the purpose of clarity, it should be noted that the contract was signed between the contractors and the management of the NNPC, an agency of government, as a way of finding lasting solutions to the incessant problem of pipeline vandalisation across the country.

    “The terms and agreements of the contract were formulated and drafted by the management of the NNPC and was duly signed by all the parties, including the contractors and the legal department of the NNPC after several meetings and consultations.

    “It is also necessary for the public to know that, against widely held belief that the contract was terminated by the Federal Government, it should be noted that the contract indeed ran its course, which was a period of three months, starting from March 15, 2015 and ended June 15, 2015.

    “It is our belief that the contract agreement between the NNPC and the contractors is a public document and therefore can always be accessed by any member of public.

    “At the same time, what we are demanding from the NNPC is for it to redeem its own part of the contract agreement and should not be seen as a favour and handout to any individual.

  • NNPC to review JVs, production sharing contracts

    NNPC to review JVs, production sharing contracts

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu yesterday spoke of a plan to review all Production Sharing Contracts (PSCs) and Joint Venture Agreements and other contracts between the NNPC and its partners. The review is aimed at reflecting present day realities in the global oil and gas industry.

    He said his mandate in the Corporation is to put in place efficient, transparent and profit-oriented processes and not to embark on a mass retrenchment of the workforce.

    NNPC’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, in a statement yesterday added that  Kachikwu stated that the mandate given to him by President Muhammadu Buhari is to turn around the entire commercial processes and procedures in order to impact on the growth trajectory and operations of the Corporation.

    He said the reduction in the NNPC directorate from eight to four at the top management cadre is to refocus and sharpen the business aspiration, adding that training and retraining of workers to align with the new vision is the next stage of the ongoing reforms.

    Dr. Kachikwu said the recent repositioning is to put in place the right set of skills for performance, stressing that the new arrangement provides a veritable vista for upcoming professionals to have a speedy career path.

    He stated that the NNPC, under his watch, would put in place mechanisms that would plug all revenue leakages in the upstream, midstream and downstream sectors while adding that all crude oil proceeds due for the Federation Account would be remitted accordingly.

  • NEITI ready to help NNPC in tracing NLNG’s unremitted $11.6b

    NEITI ready to help NNPC in tracing NLNG’s unremitted $11.6b

    The Group Managing  Director of the Nigeria National Petroleum Corporation (NNPC) Emmanue Ibe Kachikwu got a free offer from the Nigerian Extractive Industries Transparency Initiative (NEITI).

    It pledged the NNPC chief executive every institutional support to recover $11.6 billion that the corporation received from the Nigerian Liquefied Natural Gas (NLNG) Ltd but failed to remit into the Federation Account.

    NEITI said: “We are particularly encouraged by the recent pronouncement of the Dr Ibe Kachikwu on remittances of all NLNG dividends directly to the Federation account as required by law and demanded by all NEITI Reports.”

    The promise was contained in a statement by NEITI’s Director, Communications, Dr. Orji Ogbonnaya Orji that the corporation’s implementation of the pending remedial issues under a plan already developed by NEITI and the Inter Ministerial Task Team (IMTT) would be beneficial to the country.

    Dr. Orji listed such issues to include: inadequate metering infrastructure for accurate measurement of crude; the onerous Joint Venture (JV) cash call regime; inefficient cost determination; urgent resolution and review of pricing issues related to expired Memorandum of Understanding (MoU) and legal agreements with oil companies that have huge revenue loss implications for the nation.

    Others, said the spokesman, are: huge costs of fuel subsidy; crude oil swap and products exchange agreements; repair of the refineries; oil theft; review of existing fiscal regime in the industry; automation of record keeping and the politics of acquisition and assignments of oil blocks  by discretion among others.

    Assuring the NNPC of its cooperation, the statement added that “NEITI is ready and willing to provide further details if required.”

    NEITI said it was happy to identify with the work of the ad-Hoc Committee of five raised by the National Economic Council (NEC) to look into allegations of sharp practices in the revenue-generation agencies of government.

    The panel, chaired by Edo State Governor Adams Oshiomhole announced KPMG and the Pricewaterhouse Coopers as consultants to forensically audit the books of the agencies.

    Other members of the panel are governors: Nasiru El-Rufai (Kaduna); Akinwunmi Ambode (Lagos); Udom Emmanuel (Akwa Ibom) and Ibrahim Dakwambo (Gombe).

    In the statement, NEITI noted that one important issue it planned to the table if given opportunity, will be how the committee can assist the government to recover over $7 billion owned by oil companies.

    It said these disclosures are contained in NEITI audit reports as cases of under-payments, under-assessment’s arising from subjective interpretation of MoU and tax laws.

    NEITI stressed that “we have no doubt that our contributions will add value to the work of the committee.”

    The watchdog agency also endorsed two other decisions taken by President Muhammed Buhari’s sweeping reforms –   the recent directive on operation of a Single Treasury Account (STA) by all Ministries, Departments and Agencies (MDAs).

    NEITI’s interest in the new policy, according Orji, was borne out of the fact that over 70 per cent of the funds involved are directly or indirectly generated from extractive industries.

    NEITI submitted: “We find the singly treasure account policy, a vital move and a major reform – driven decision that would help eliminate fraudulent practices  created by multiple revenue  accounts by government agencies.”

    On its proposal to give advice to the NNPC, the statement said: “We in NEITI are ready to offer any advise,   support, partnership and cooperation based on mutual respect to the new NNPC that is emerging under the leadership of Dr. Ibe Kachikwu.

    “This is to ensure that the NNPC conforms fully to the requirements of transparency and accountability as enshrined in the NEITI act of 2007 and the principles of the global EITI. Both the EITI and NEITI stand firmly with Nigerian citizens that revenues from oil, gas and mining should support national development and reduce poverty in our country.”

    NEITI also welcomed President Buhari’s decision to set up a Presidential Advisory Committee on Anti-Corruption under the chairmanship of by Prof. Itsay Sagay, a Senior Advocate of Nigeria (SAN).

    The statement added: “The work of this committee is not only timely but very useful. It is a good platform for all the 21 anti-corruption agencies, coordinated by the Technical Unit on Governance and Anti-Corruption (TUGAR) under the chairmanship of NEITI, to share information and offer informed advice based on experiences over the years.

    “It is our expectation that Prof Sagay’s committee will provide NEITI and all the agencies under the Inter – Agency Task Team (IATT) an opportunity to make presentations.

    “In view of the huge potentials in the mining and solid minerals sector, we urge President Buhari to please extend the on-going reforms to that sector. From NEITI’s scoping study and independent audit reports, this sector has the potential to yield more revenues for the country than oil, if given the attention it deserves.

    “One urgent step required now is to immediately check the activities of illegal miners many of whom are foreigners that have taken over the solid minerals sector without authorisation.

    “Finally, NEITI’s view remains that for these sweeping reforms initiated at the Federal level to yield results and impact on the economy, state governments need to be encouraged to find enough reasons to step down the on-going reforms at the state level.

    “This is important because of the wider implications in the revenue sharing formula, resource allocation, and efficient utilisation to meet the overall strategic national development objectives.”

  • NNPC MD seeks workers’ support for reforms

    The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has implored the management to team up with him to close the skills gap and turn the fortunes of the corporation around.

    Kachikwu made the appeal during the maiden interactive session with the top management of the Corporation at the NNPC Towers Abuja.

    The GMD said that efforts were in top gear to create conducive working environment for members of staff, adding that for the NNPC to transform into a profit centre like its peers in other climes, the morale of the work force must be high.

    Kachikwu also urged the management to provide leadership by example to the workforce while adding that sectionalism, tribalism and any form of non-transparent transactions must be completely stamped out of the NNPC.

    The GMD noted that his administration would ensure that all the refineries of the corporation were run efficiently and profitably to meet the energy needs of the country.

    He said the Corporate Service Unit and all the Strategic Business Units of the Corporation would henceforth be run as profit centres while noting that the days when the Corporation was perceived as a civil service organization instead of a Corporation were over.

  • NNPC vows to run refineries profitably

    NNPC vows to run refineries profitably

    The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Kachikwu has noted that his administration would ensure that all the refineries of the Corporation are run efficiently and profitably to meet the energy needs of the country.

    He said the Corporate Service Unit and all the Strategic Business Units of the Corporation would henceforth be run as profit centers while noting that the days when the Corporation was perceived as a civil service organization instead of a Corporation were over.

    The GMD urged members of staff to act as change agents and assured that in the next sixty days some of the strategic targets would be translated into concrete milestones to the appreciation of all Nigerians.

    Kachikwu made this plea during the maiden interactive session with the top management of the Corporation at the NNPC Towers Abuja, according to the statement of the Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe yesterday.

    In furtherance of his commitment to transform the Nigerian National Petroleum Corporation (NNPC) into an efficient and profit-oriented Organization, the Group Managing Director of the Corporation, Dr. Ibe Kachikwu has implored the management to team up with him to close the skills gap and turn the fortunes of the Corporation around.

    The GMD said efforts are in top gear to create a conducive working environment for members of staff, adding that for the NNPC to transform into a profit center like its peers in other climes, the morale of the work force must be high.

    Dr. Ibe urged the management to provide leadership by example to the workforce while adding that sectionalism, tribalism and any form of non-transparent transactions must be completely stamped out of the NNPC.

  • TUC praises govt over Ogoni clean-up, NNPC restructuring

    TUC praises govt over Ogoni clean-up, NNPC restructuring

    The Trade Union Congress of Nigeria (TUC) has praised the Federal Government over its planned clean-up of oil-polluted Ogoniland, resuscitation of the national carrier and the appointment of a new Group Managing Director of the Nigeria National Petroleum Corporation (NNPC).

    TUC in a statement signed by its President, Comrade Bobboi Bala Kaigama, and Secretary-General, Comrade Musa Lawal, said it views the moves as steps in the right direction if the change mantra espoused and canvassed by the ruling party is to yield positive results.

    The Congress advised the President Muhammadu Buhari-led administration to expedite action on the afore-mentioned areas and other items on its developmental agenda, as time is not on the government’s side.

    According to the statement, successive government’s insensitivity to the plight of the people has been the major cause of most unrests and insurgencies in the land.

    The labour chiefs noted that the initiative to clean up Ogoniland will help give a sense of belonging to the Niger Delta people. Part of the statement read: “Our country, being a mono-economy, cannot afford to neglect the goose that lays the golden egg. The present administration should go ahead and also diversify the economy, revive other sectors as it has planned to do in the aviation industry through the reintroduction of the national carrier, and fight corruption to a stand-still.

    “The Niger Delta agitation, for instance, started as a result of failure to address the grievances of the people, which include the destruction of their farmlands by oil spillage, gas flaring.”

    On the NNPC, TUC said the war against corruption should be comprehensive, lest it be viewed as mere witch-hunting. “While we applaud the sanitisation that has commenced at the NNPC, we also insist that it be extended to the ministries and other agencies of government. There is no patriotic Nigerian who is not bothered by the administrative and financial anomalies we have encouraged and accommodated as a nation,” Kaigama said.

    The labour Center also noted that the move to revive the national carrier is a welcome development, adding that it is a shame for Nigeria, a nation with a population of over 170 million people, not to have a national carrier at a time when smaller nations like Ethiopia operate airlines that are major sources of prestige and foreign exchange to them.

    The statement further said British Airways and other foreign airlines earn substantial revenue from flying Nigeria’s airspace, taking advantage of the large vacuum created by the ineptitude of our leaders over the years.

    “Apart from the thousands of Nigerians who go on medical tourism to Britain and other foreign nations, a good percentage of Nigerians who live in those nations come home at least twice yearly aboard their airlines. Just imagine how much we would earn if they flew our own national carrier instead? A lot of foreign exchange is involved here!

    Suffice to say that all those countries are having a field day making aviation money that we should be making. And this is aside the massive employment potentials that we have denied ourselves,” TUC lamented.

  • FG appoints KPMG, PWC to audit NNPC, other agencies

    The Federal Government on Thursday appointed international audit firms, KPMG and PriceWaterhouse Cooper to conduct comprehensive audit of the accounts of the Nigerian National Petroleum Corporation (NNPC) and other revenue generating agencies.

    The appointment was disclosed to State House correspondents by Edo State Governor, Adams Oshiomhole at the end of the second meeting of the four man panel set up by the National Economic Council (NEC).

    The decision to appoint the two audit firms, he said, was taken to allow for professionalism.

    DETAILS LATER

  • More restructuring to continue in NNPC, says GMD

    More restructuring to continue in NNPC, says GMD

    The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu, on Thursday gave indication that more sacking and deployment of personnel will take place in the Corporation.

    Speaking with State House correspondents after meeting with President Muhammadu Buhari, he said that three stages of restructuring will take place in the NNPC.

    According to him, the new look NNPC will start manifesting in the next six months.

    He said: “I don’t want to over critique an institution I have taken over please. Having said that, things have been done wrongly and things need to be done differently.

    “We are doing a lot of work in terms of repositioning, restructuring, getting the right personal in key places and setting a culture of accountability and service delivery so that the new NNPC that you are going to see will be a different institution altogether,” he said.

    On how far he was going with the restructuring, he said: “Complete. It’s A to zero restructuring. I have done the first three layers which is going to the GEDs to GGMs and General Managers.

    “You are going to have a lot more now. The GEDs and GGMs will take it to the next layer which is the lower layer. And the whole idea is to go back to being able to look at your appraisals; how well have you done in the job and if you’ve done very well, how do we elevate you to a position where you can offer more service.

    “If you’ve not done well enough, we can retrain you and if you’ve not done well enough and there is no possibility of retraining you, we will let you go.

    “At the end of the day, NNPC isn’t public service. It’s a corporation and we run like a company generating money for the people of Nigeria. And so, that whole concept of anything goes should stop. And this is the first stage of that whole process.

    “It’s a three-pronged process that I am pursuing. There’s a people aspect which we are dealing with now; there is a process aspect; after the people at the right places, you are going to get forensic audit done so that we know clearly, proper forensic audit that will cover us all the way to 2014, 2015, that will be able to say to you, this is the state of the company,” he added.

    According to him, processes and control are going to be put in place under his tenure.

    He also said the NNPC is going to embark on retraining and repositioning.

    He added: “We are going to re-engage our majors and minors, all those who are active in the sector, for us to work as a team to try to take Nigeria forward. It’s going to be the process stage.”