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  • Senate summons NNPC, others over tanker accidents

    Senate summons NNPC, others over tanker accidents

    SENATORS yesterday summoned Nigerian National Petroleum Corporation (NNPC) officials over the state of the nation’s four refineries.

    Senate President Bukola Saraki said it was time to fully deregulate the downstream sector of the petroleum industry to welcome private operators who are desirous of investing in the sector.

    The upper chamber also raised the alarm over the rising incidents of fuel tanker tragedies and resolved that adequate measures be put in place to prevent future occurrences.

    These resolutions followed its debate on a motion entitled: “Fuel tanker tragedies on Nigeria’s highway” sponsored by Senator Gbenga Ashafa (Lagos East).

    Other co-sponsors of the motion are Senators Oluremi Tinubu (Lagos Central), Enyinnaya Abaribe (Abia South), Philip Aduda (FCT), Isiaka Adeleke (Osun West) and Adeola Solomon Olamilekan (Lagos West).

    Fuel tanker tragedies have recently claimed over 70 lives, destroying property in Lagos and Anambra states.

    Ashafa urged his colleagues to note with serious concern the spate of fuel tanker explosions on the nation’s highways.

    He observed that within the space  of one week, four fuel tanker accidents occurred in two major cities.

    The first incident was at Upper Iweka in Onitsha, Anambra State. It claimed over  70 lives.

    A tanker conveying 33,000 litres of petrol exploded at Iyana-Ipana, Lagos, injuring no fewer than 14 persons. About 21 vehicles and 44 shops were razed.

    Ashafa urged the lawmakers to note that as Nigerians were still lamenting the tragedy at Iyana-Ipaja, another one occurred at Idimu in Alimisho Local Government Area of Lagos.

    He said the incident destroyed property worth millions of naira, including 34 buildings, 70 shops, one tricycle, one truck and others.

    He also observed that all the fuel tankers lifting fuel from the tank farms on Apapa- Oshodi Expressway have done incalculable damage to the highways, with attendant  deaths, pains and traffic gridlocks.

    He said  the time had come for the government to seek a permanent solution to the problem  as fuel tankers from all states in the North, the South-East and the South-South come to Lagos to conve petroleum products.

    He said the tankers often caused the type of tragedy that was witnessed in Onitsha and Lagos.

    Ashafa insisted that if  the refineries were functioning optimally, fuel marketers would not need to send trucks to Lagos for products, adding that the refineries in Port- Harcourt, Warri and Kaduna would have taken care of that.

    He said few tankers would be on the road had the railways been operating efficiently.

    Most of the senators, who spoke on the matter, supported the motion.

    Senator  Joshua Lidani (Gombe South) said the tragedies should be blamed on lack of efficient rail system and reckless tanker drivers.

    Lidani said: “They do these things with impunity across the country. We should call the attention of the leadership of tanker drivers to ensure their drivers adhere to highway codes.”

    Senator Solomon Olamilekan (Lagos West) said it was time trucks were restricted from moving during the day.

    Senator George  Akume (Benue North West) described tanker drivers as a menace.,

    He said that those who travel by air cannot appreciate the trauma of those who travel by road.

    Akume stressed that “Abuja to Lokoja is a nightmare for commuters and passengers because of tanker drivers”.

    Senate President Bukola Saraki described the motion as timely and germane.

      He said it had become necessary for the Federal Government to create an enabling environment for the private sector operators to establish private refineries as a step towards solving oil sector problems.

    Saraki added that the downstream sector of the oil industry should be deregulated to ensure a permanent solution to the problems.

    The motion urged the Federal Government to revamp the refineries, create an enabling environment for private refineries and  the Federal Road Safety Corps (FRSC) to train for tanker drivers.

    The prayers were approved through voice vote.

    The Senate also resolved to summon the NNPC  ”to come and give account of the state of our refineries and all such structures and urge the Federal Government to create the enabling environment for private refineries to be established and thrive.”

    The senators also observed a one minute silence in honour of those who died in tanker accidents.

    Also yesterday, Saraki called for proper funding and coordination of agencies responsible for the management flood related challenges.

    The Senate President was contributing to a motion entitled: “Managing the challenges of the rainy season”, sponsored by Senator Andy Uba (Anambra South).

    After exhaustive debate on the motion, the senate resolved to refer the matter to its   standing committee soon to be constituted rather than set up an ad-hoc Committee to ascertain the level of preparedness of government and its agencies to respond to flood emergencies.

  • Reps to probe $8 billion shortfall in NNPC oil deal

    Reps to probe $8 billion shortfall in NNPC oil deal

    The House of Representatives is to constitute an ad hoc committee to probe an alleged $8bn discrepancy in an oil exchange deal, brokered by the Pipeline and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

    According to the lawmakers, the investigation is particularly on crude oil swap contracts, to ascertain “that revenue from the nations extractive industries are transparently managed in accordance with global best practices.”

    This was sequel to the adoption of a motion by a member, Michael Enyong (PDP, Akwa Ibom).

    The motion was titled “Urgent need for a forensic Investigation of the contract known as ” Refined products Exchange Agreement or Swap Contract “between the Pipeline and Products Marketing Company ( PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and Oil Trading Companies.”

    The lawmaker while arguing his motion said that Refined Products Exchange Agreement or SWAP to the tune of 445, 000 Barrels per day were awarded to nine companies, viz: Sahara Group, Aiteo, Duke Oil, Mercurial, Glencore, Taleberas Nig. Ltd, Etena Oil and Gas, Transfigura and Ontario Oil and Gas.

    According to him, Sahara Group, received 90,000 barrels per day (BPD through an agreement with Societe Ivorienne De Refinage, Aiteo received 90,000 barrels per day, Ontario Oil and Gas Nig. Ltd received 30,000 barrels per day.

    “While one barrel, of crude equals to 159 litres, the 445,000 barrels awarded to the above companies per day, when multiplied by 159 litres would amount to 70, 755, 000 litres per day. Whereas Nigeria consumes 40,000,000 litres per day.

    Eyong noted that the Nigerian Extractive Industries Transparency Initiative (NEITI), in its 2009-2011and 2012 reports had ascertained that there was a staggering recap venue loss of $8 billion due to the discrepancy between the value of the crude oil given out and to refined products delivered.

    He said in 2011, there was a shortfall of 500, 075, 32 litres of refined products by some companies including Transfigura (173,786, 600 litres), Vitol (654,440 litres), Telaveras (152, 308, 878 litres), Aiteo Ltd. (193,046,590 litres) and Ontario Oil & Gas (180, 278, 732 litres).

    The lawmaker noted that the request for the investigation of the oil swap deal is in conformity with anti- corruption stance of the three Arms of government of Nigeria “particularly the nation’s President, Muhamadu Buhari.”

    He further spoke of the need to ensure transparency and accountability by the Nigerian National Petroleum Corporation (NNPC) in the management of the revenue accruing to the nation from crude oil, particularly in the prevailing circumstances where the major user of Nigeria’s crude oil, the United States of America, has discovered alternative energy source.

    Attempts by former Majority Leader, Leo Ogor in a point of order to truncate the debate by citing procedural error for the presentation of the motion by the sponsor was countered by Femi Gbajabiamila (AOC, Lagos) former Minority Leader.

    In a counter point of order, Gbajabiamila reminded his colleagues that it was agreed on Tuesday that due to importance of motion like that, rules should always be suspended to accommodate them.

    Arguing against the motion, Nnana Igbokwe (PDP, Imo) saw no need for the House’s intervention again since Mr. President has already directed the Department of State Services (DSS) to commence investigation of the oil swap deals.

    Razak Atunwa (APC, Kwara) and Emmanuel Oghene (PDP, Lagos) in their contributions noted that Igbokwe’s assertion was not right because the gravity of the consequences of the oil swap arrangement on the nation should make it mandatory on the House to carry out its own investigation.

    The Speaker, Yakubu Dogara while ruling  on the motion after commenting that it was an important motion, said an adhoc committee would be set up to commence the investigation.

  • How NNPC ran into swap scandal

    How NNPC ran into swap scandal

    Some foreign oil firms have been implicated in the multi-billion dollar oil swap probe, it was learnt at the weekend.

    The investigation might be extended to four oil giants, said a source, who recalled that the crude oil swap began between 1977 and 1986. He did not name the companies so that, according to him, the probe is not jeopardised.

    But the current scandal began in 2009 when the Nigeria National Petroleum Corporation (NNPC)/Pipelines Products Marketing Company (PPMC) advertised sought proposals for Offshore Processing Arrangement and other proposals to guarantee fuel supply.

    It was learnt that a $2billion debt on importation of petroleum products made NNPC to embrace this option, which has been grossly abused.

    These disclosures were contained in a document made available to one of the security agencies handling the ongoing probe.

    The document reads in part: “The ongoing investigation of oil swap agreement is incomplete without looking at the involvement of some International Oil Companies(IOCs). The probe should be holistic.

    “It is very curious to see all of these negative reports and also the exclusion of the names of foreign and International Companies that have for many years taken part in these SWAP and Offshore Processing Contracts absent from all of these news and reports.

    “ When foreigners (multinationals) were handling crude swap and delivering Petroleum Products on Open Account for Nigeria, our government was buying refined products at PLATTS plus $136-180/metric from these multinationals. The government was equally required to pay interest to the multinationals on delayed receivables. The government incurred the cost of logistics and handling unlike the arrangement where we have local players participating…

    “But local companies sell at PLATTS plus $82/metric ton and the government does not pay interest on delayed receivables.

    “These foreign companies create wealth and employment for their countries, why can’t Nigeria do the same with its own people and companies? Instead, Nigerians let envy get the better part by fighting their very own.”

    The document said although the present oil swap scandal was traceable to 2009, the nation had been involved in it since 1977.

    It added: “Crude Swap/ Offshore Processing arrangements have been a Federal Government initiative since 1977 in partnership with International Oil companies (IOCs).

    “Nigerians must know that the supposed interim policy of the NNPC to bridge the gap between petroleum products demand and supply was initiated over three decades ago between 1977 and 1986 when Nigeria needed heavy crude from Venezuela to feed the recently opened Kaduna refinery. We as a nation swapped Venezuela heavy crude for Nigeria’s light crude.

    “The scope of crude swap was later broadened specifically because our refineries began to produce below their stipulated name plate capacity.

    “In addition, NNPC/PPMC from late 1990s-2010 used to import Petroleum Products on an Open Account backed by a PPMC Payment undertaking that payment will be made 45 days after imported vessels arrive.

    “This payment timeline was never met with payment delays running to 400 days late, currently with an outstanding debt to Importers and bankers of close to $2billion currently standing at 7 Years late payment,

    “No Local or International Bank will finance any NNPC/PPMC imports on an open account. Banks need to see a solid bankable security or guarantee to finance any import to NNPC/PPMC due to their indebtedness and bad payment record. “NNPC/PPMC used to rely on their refineries Un-Utilized Crude oil barrels to fund these open account Payment Batches. With this challenge to NNPC and Government, this posed a problem to 50% of fuel supply into Nigeria around 2009 and 2010.

    To avert this, NNPC/PPMC advertised in 2009 inviting for proposals for Offshore Processing Arrangement and other proposals to guarantee fuel supply to Nigeria. Thus crude swap/ OPAs concept widened to include crude for refined products, which had been in practice with Oil Majors more than two decades. British Petroleum and SIR refinery of Ivory Coast were the first engaged in late 2000s for this.”

  • Anxiety at NNPC ahead of Buhari’s massive shake-up

    Anxiety at NNPC ahead of Buhari’s massive shake-up

    There seems to be some disquiet in the Nigerian National Petroleum Corporation (NNPC) ahead of the imminent shake-up by the Muhammadu Buhari administration.

    Legal Services and Company Secretary Ikechukwu Oguine has resigned, The Nation learnt yesterday.

    Deputy Group Managing Director/ Group Executive Director (Finance and Account)  Bernard Otti’s fate remained unclear last night, following his sudden trip abroad immediately after the inauguration of the President.

    A source said he was away for medical reasons.

    It was learnt that more officers may retire or voluntarily withdraw their services from NNPC to beat the imminent purge.

    But an official said there was no cause for panic in the corporation.

    Fears of a massive purge have gripped top managers of the NNPC, the Pipelines and Product Marketing Company (PPMC) and the Nigerian Petroleum Development Company (NPDC) over the controversial crude oil swap.

    A source, who spoke in confidence, said: “Some top management staff of NNPC and its subsidiaries have opted to leave the system ahead of the likely reorganisation of the corporation by the President.

    “Some of those affected include a few in high-profile offices, who were engaged by the immediate past Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, against the provisions of the NNPC Act.”

    The source, who pleaded not to be named because of “the sensitivity” of the matter, did not name such “backdoor” employees.

    He went on: “There are some professionals who also do not want their career rubbished by the looming shake-up of the sector by Buhari.

    “The NNPC company secretary has resigned and he even paid three months salaries in lieu of notice. He said he wants to go back to his consultancy firm if he does not find the environment challenging.

    “Actually, he gave himself a year target to take stock of things in NNPC and having been appointed on April 7, 2014, he decided to leave on personal grounds.”

    Otti, according to some NNPC sources, took a sick leave; others merely said he had not been seen in office since Buhari was inaugurated as President.

    Before the inauguration, there had been arguments on the legality of Otti’s appointment.

    Another source said: “There had been unease in NNPC over Otti’s office. The appointment of a Deputy Group Managing Director is unknown to NNPC statute; it is illegal and whatever document or contract the man had signed as a holder of this office is untenable in law.

    “The management staff have been having a sort of cold war because it is an aberration to combine the post of Group Executive Director, Finance and Account and the office of Deputy GMD.”

    A source close to Otti said: “He went for medical check-up; he should be back on Thursday. But his job does not suffer because someone is acting for him.”

    Some members of the management staff, who are believed to have been brought into the system through the backdoor, may leave before the proposed purge.

    An official said: “More staff may go to beat Buhari to the game. They have also realised that they cannot fit into the system because they don’t have the technical capability.

    “A few others who are linked to the crude oil swap in PPMC and NPDC may leave. In fact, some of them in NPDC have not been coming regularly to office.

    “We operate in fear because we do not know the type of reforms the President may initiate.”

    Another NNPC source said Oguine was on a year contract that elapsed last month.

    “Oguine has a consulting firm he ran in the United Kingdom before his appointment. On the expiration of the contract, he chose to go back to UK to join his family and face his private consultancy firm wholly. The board of NNPC even offered to renew his appointment but he preferred to go back to his private business. There was no problem,” the source added.

    Otti, according to the source, went to the United States to treat his eyes and will be back to office this week. The source also noted that there was no panic in the corporation as the board just sat yesterday and there was no information about officials who intend to resign before new appointments are made by the new government. There is also no information on any planned major shake-up in the corporation by the Federal Government, the source added.

    President Buhari has on many occasions vowed to probe the NNPC.

    During the campaigns, he promised to probe the $20 billion alleged to be missing from the coffers of the oil giant by Emir of Kano Muhammed Sanusi, a claim he made when he was the governor of Central Bank of Nigeria.

    Former President Goodluck Jonathan sacked him from the CBN for the claim which he considered untrue aand embarrassing to his government.

    Speaking in Yola as President-elect, Buhari said: “I heard that some people have started refunding money, but I will not believe until I see it.

    “His royal highness, the Emir of Kano, Sanusi Lamido Sanusi was removed from the Central bank because he said that about $20 billion was missing, instead of the government to investigate the matter, they refused, instead they sacked him.

    “He has already written a detail report on it, the incoming government will not ignore it, even though we have promised to draw a line, but $20 billion is too big to ignore. This is Nigerian money and it must be investigated,” Buhari said.

    Last week during the African Union Summit in South Africa, Buhari also gave another evidence of the rot in the NNPC when he described as “improper” the holding of many accounts by the NNPC.

    Former British Prime Minster Tony Blair also advised the president to overhaul the NNNPC if he must succeed.

  • Why there is massive corruption in NNPC, by Saraki

    Why there is massive corruption in NNPC, by Saraki

    Senate President Bukola Saraki yesterday attributed alleged massive corrupt practices in the Nigerian National Petroleum Corporation (NNPC) to lack of operational budget framework.

    Saraki said such an era where there was deliberate non-provision of operational budget for the Corporation was gone for good as will not be tolerated by the 8th Senate.

    The Senate President spoke while receiving members of Civil Society Groups in Abuja.

    He added that transparency and accountability must be brought to bear in all government transactions.

    Saraki said: “On the issue of transparency of oversight, which you raised here, we will work very hard to see the areas where there can be improvement on our part.

    “The budget process which you talked about, I want to tell you that some of us have strong views that issues of budget must be transparent, particularly the days are gone where agencies like the NNPC would be able to function without operational budget.

    “We must move away from that because one of the key issues that we have now is the issue of revenue leakages because of lack of transparency. I think we must move away from that, especially agencies that have revenue coming in.”

    He added that the red chamber will reintroduce the Constitution Amendment Bill, which was not assented to by ex-President Goodluck Jonathan.

    Other Bills to receive priority attention, according to Saraki include the Petroleum Industry Bill and the Electoral Act.

    He said the Senate under his leadership would focus on people-centered legislation, that would safeguard the interest and welfare of every Nigerian.

    The Convener of the Groups, Clem Nwankwo, praised the election of the leadership of the Senate and that of the House of Representatives, adding that independence of the legislature will expedite development in governance.

    He solicited the support of the National Assembly on while such bills as the ones on people living with disabilities, Electoral Acts as Amended, Petroleum Industry Bill (PIB) and the Constitutional Amendment. He urged the Senate to ensure their passage.

    Nwankwo said: “With respect to several Bills that have been going on, we did see the National Assembly passed several bills in the 7th Assembly. One of them, of course, was the Disability Bill.

    “We know that it was passed by the 7th Assembly but we have no indication that it was assented to by the President and we believe that it is important that the National Assembly takes this as one of the priority Bills for the 8thAssembly so that if it is not assented to by the President, we know that the National Assembly has powers to ensure that this Bill comes into effect.

    “We also know that the National Assembly worked on the issue of the Electoral Act Amendment.

    “The 2011 elections were conducted and lessons learnt from those elections, which were included in that amendment made in the Electoral Act.

    “We know that the National Assembly passed that amendment but we did not have any indication that the former President assented to it.

    “Very importantly, we know that the Constitution was amended by this National Assembly and the amendments that were made were the far-reaching amendments of any amendment to a life document.

    “This amendment covers making justifiable some of these institutional and  economic rights as contained in the present constitution.”

  • Why there is massive corruption in NNPC – Saraki

    Why there is massive corruption in NNPC – Saraki

    Senate President, Bukola Saraki, on Tuesday attributed alleged massive corruption in the Nigerian National Petroleum Corporation (NNPC) to lack of operational budget framework.

    Saraki said such era where there was deliberate non-provision of operational budget for the Corporation is gone for good as that will not be tolerated by the 8th Senate.

    The Senate President spoke while receiving members of the Civil Society Groups in Abuja.

    He added that transparency and accountability must be brought to bear in all government transaction.

    Saraki said: “On the issue of transparency of oversight, which you raised here, we will work very hard to see the areas where there can be improvement on our part.

    “The budget process which you talked about, I want to tell you that some of us have strong views that issues of budget must be transparent, particularly, the days are gone where agencies like the NNPC would be able to function without operational budget.

    “We must move away from because one of the key issues that we have now is the issue of revenue leakages because of lack of transparency, I think we must move away from that, especially agencies that have revenue coming in.”

    Saraki said the 8th Senate will work to prevent revenue leakages in the country.

    He added that the red chamber will reintroduce the Constitution Amendment Bill which was not signed by ex-President Goodluck Jonathan.

    Other Bills to receive priority attention on resumption of the Senate, according to Saraki include the Petroleum Industry Bill and the Electoral Act.

    He said the Senate under his leadership would focus on people-centered legislation that would safeguard the interest and welfare of Nigerians.

     

     

  • We have 1.1b litres fuel stock, says NNPC

    We have 1.1b litres fuel stock, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) yesterday said  its subsidiary, the Pipelines and  Products Marketing Company (PPMC) presently has a stock level of 1.1billion litres of fuel representing 27 days sufficiency.

    It stressed that the stock excludes volumes with confirmed delivery dates within the next couple of days.

    NNPC Group Managing Director (GMD), Dr. Joseph Dawha , said the state-run oil firm is ready to work with all relevant stakeholders in the downstream sector of the oil and gas industry to bring to an end the lingering fuel scarcity across the country.

    Its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, in a statement, explained that the NNPC boss spoke while on a tour of some filling stations in Abuja with top management staff of the Corporation.

    Dawha noted that the NNPC as the supplier of last resort, has improved availability of petrol in the country and would ensure its effective distribution nationwide.

    He said arising from the meeting with petroleum products marketing stakeholders last week, the NNPC and its downstream subsidiary PPMC is committed to bringing the fuel queue situation to an end in Abuja and across the other states of the federation.

  • ‘NNPC has 1.1b litres stock’

    ‘NNPC has 1.1b litres stock’

    The Nigerian National Petroleum Corporation (NNPC) on Thursday said its subsidiary – the Pipelines and Products Marketing Company (PPMC) presently has a stock level of 1.1billion litres, representing 27 days sufficiency.

    It stressed that the stock excludes volumes with confirmed delivery dates within the next couple of days.

    The NNPC Group Managing Director, Dr. Joseph Dawha, said the corporation has expressed its readiness to work with all relevant stakeholders in the downstream sector of the oil and gas industry to bring to end the lingering fuel scarcity across the country.

    A statement issued by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the NNPC boss made the disclosure during a tour of some filling stations in Abuja with some top management staff of the corporation.

    Dawha noted that NNPC as supplier of last resort has improved availability of premium motor spirit otherwise known as petrol in the country and would ensure effective distribution of the product nationwide.

     

  • Vandals attack Ije-Ododo pipeline, NNPC shuts facility in Lagos

    Vandals attack Ije-Ododo pipeline, NNPC shuts facility in Lagos

    The National Emergency Management Agency (NEMA) yesterday said vandals had attacked petroleum pipeline at Ije-Ododo community in Ijegun area of Lagos.

    Mr Ibrahim Farinloye, the spokesman for NEMA in South West, disclosed this to the News Agency of Nigeria (NAN) in Lagos.

    Farinloye said the incident occurred at about 11.15 p.m. on Monday.

    He said that the suspected vandals severed a petroleum pipeline, forcing the Nigerian National Petroleum Corporation (NNPC) to shut down the facility.

    The NEMA spokesman said that NNPC had shut down the flows and locked the valves to stop further supply to the fire.

    Farinloye said fire service and other emergency services had arrived at the scene to put out the fire which was raging at the time of this report.

    He said the emergency service officials and fire fighters were able to secure access to the scene.

    He also said the terrain was difficult to access due to its swampy nature.

    Ije-Ododo line is directly from Atlas Cove which supplies products to Mosinmi depot in Ogun which further distributes to other parts of the South West.

    The affected pipeline was reportedly vandalised four times in 2014.

     

  • ‘NNPC owes international oil companies $2b’

    THE Nigerian National Petroleum Corporation (NNPC) is owing multinational oil companies (IOCs) over $2 billion (about N400 billion) in cash call, a source has alleged.

    The money was part of counterpart funding for oil exploration, The Nation learnt at the weekend.

    A source close to the IOCs said the figure arose from the Federal Government’s inability to keep to its own side of some agreements it entered into in the last two years.

    Speaking with The Nation on phone in Lagos at the weekend, the source said: “The Federal Government has totally mismanaged crude oil revenue just as it misappropriated money for other projects and other government activities not in line with the budget.”

    According to him, the joint venture (JV) partners have decided not to continue carrying the responsibility further, lamenting that this has reduced the level of investments and exploration and production in the upstream oil sector.

    The Federal Government had entered into JV deals with the IOCs, which include Shell Petroleum Development Company of Nigeria (SPDC), ExxonMobil Producing Nigeria Unlimited, Chevron Nigeria Limited, Nigerian Agip Oil Company (NAOC), TotalFinaElf and Pan Ocean Oil.

    The equity shareholding in the partnership with the government through the NNPC is 45 per cent to 55 per cent with Shell while the other IOCs are in the ratio of 40 per cent to 60 per cent in favour of the government.

    He lamented that the JV option was employed by the government to ensure that the participating companies got a minimum profit margin after tax and royalties on their equity crude.

    The document, he said, contained procedures for reviewing such agreements in such a way that both parties (the NNPC and the joint venture partners) benefited from the dynamics of the economy, such as inflation, exchange rates fluctuations and dictates of the turning world oil market

    It also contained the basic understanding on the JVs as a response to the details of fiscal incentives. Again, it allows for reserve addition bonus, in any year that any company’s addition to oil and gas condensate recovery exceeds production target for the period, he stated

    He said the NNPC should employ competent and experienced professionals to run the industry, adding that the Federal Government should also reduce its participation in JVs. He said the funding could be reduced to between 20 per cent and 30 per cent.

    He said: “I think the burden of funding the cash call is taking a huge toll on the government. It should be reduced to between 20 per cent  and 30 per cent. The government could now sell the equity it is dropping to the public or interested multinational companies who have partnership with Nigerians”.

    According to him, the government could also raise bond in the local stock market fund the JV cash call, adding, that the public will now buy those bonds which are promissory note at a certain amount and after a given period the government will pay back the money with certain interest.

    Managing Director, Danvic Concepts International Limited, Afe Mayowa, said the NNPC is owing its partners. He urged the government to pay its counterpart funds to allow exploration and production to continue.

    Mayowa, a former president, Nigerian Association of Petroleum Explorationists (NAPE), urged President Muhammadu Buhari to declare a state of emergency in the  sector with special focus on the NNPC.

    He listed abuse of the local content, missing funds, irregularities in the allocation of oil blocs and the passage of the Petroleum Industry Bill (PIB) as issues Buhari should train his periscope at.