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Tag: NNPCL

  • NNPCL: Curse or blessing?

    NNPCL: Curse or blessing?

    Sir: Nigeria’s dream of economic prosperity through the Nigeria National Petroleum Company Limited (NNPCL) remains unrealisable after all these years. With its unsurmountable proclivity towards corruption, it is at the heart of Nigeria’s corruption, evoking her doom.

    Over the years, there have been diverse shenanigans, with staggering figures diverted from the sales of oil by reactionary elements. In 2013, the then CBN governor, Sanusi Lamido Sanusi, revealed that the NNPC did not remit $48.9 billion accrued from the sales of oil to the central bank. Year 2011 was when we witnessed the N1.7 trillion subsidy overpayment scandal. There was another shocking revelation in 2012. An audit done by KPMG exposed monumental corruption, financial malfeasance and other financial distortions in the NNPC.

    Elder statesman Chief Edwin Clark once alleged that a syndicate of military officers, working in cahoots with disgruntled officials of the NNPC were behind the theft of crude oil running into trillions of naira over the years.

    Meanwhile, blessed are the Saudi Arabia’s Aramco and Brazil’s Petrobas. They are the equivalent to our NNPC. They are examples of the NNPC with similar mandates. However, the NNPC has not been able to compete with them in terms of profits, nor has it been capable of attracting sizeable investment for sustainable national development.

    Read Also: Fuel scarcity: Motorists accuse NNPCL Ikoyi of extortion

    To make NNPCL make profits like its successful colleagues, on September 20, 2021, it transitioned to a limited company with a similar goal of increasing profits. However, a review of the financial statements of the NNPCL shows that this move is yet to yield fruits.

    Saudi Arabia through Aramco invested heavily in Chinese refineries in 2023. It completed its purchase of a 10 percent stake in China’s Rongsheng petrochemical company for about $3.6 billion. The deal will see Aramco supply about 480,000 barrels per day of additional crude oil to Rongsheng-affiliated refineries. Nigeria’s NNPCL could only meet up with the Dangote refinery share of 7.2 percent instead of the agreed 20 percent.

    While the NNPCL is afflicted by the virus of competitive corruption, Brazil’s Petrobas strategic plan for the 2024-2028 foresees investments of around $102 billion. With this increase in investment, the company estimates the generation of 280,000 direct and indirect jobs per year. In Nigeria, if the NNPC had invested massively on agriculture to diversify the economy, the current food crisis would have been a forgone conclusion. It should have also made significant investment on mineral resources exploration.

    When are we going to develop a visionary NNPCL committed to public service, financial transparency and national development?

    • Abdu Abdullahi, aaringim68@gmail.com
  • NNPCL: Oil drilling & exploration in the north on course

    NNPCL: Oil drilling & exploration in the north on course

    • By Olufemi Soneye

    Every developing nation strives to attain political stability, economic growth, and meaningful development. Those aspirations can only materialise when the traits of gullibility and lack of circumspection are put in check.

    Nigeria, as a country, is afflicted with some disturbing and protracting issues, such as misplaced political consciousness and intolerance, made worse by the inter-play of tribal vibes and an unrelenting leaning on bad politics.

    In changing this dangerous narrative for good, the Nigerian National Petroleum Company Limited (NNPC Ltd) has vowed to end all forms of scepticism and doubts, while keeping the eyes on the ball and delivering on its mandate and policy thrust.  This, to the extent that the discovery and exploration of crude oil in the northern part of Nigeria will not only appear as a dream pursued, but as an economic reality to boost OPEC quota for the nation and, as well, deepen the strength and efficiency of the petroleum industry value chain in Nigeria.

    This is a strategic engagement that NNPC Ltd will not compromise on.

    NNPC Ltd, in compliance with the Petroleum Industry Act, PIA, is leaving no stone unturned to continue oil drilling projects in the North after decades of exploration in the South.

    With crude oil reserves of more than 37 billion barrels and the sixth largest world producer, the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the north eastern part of the country will only accentuate the prosperity and growth of Nigeria in the comity of nations.

    It is therefore untrue for naysayers or sceptics to claim that NNPC has halted the search for oil in Nigeria’s inland basins. On the contrary, NNPC Ltd is intensifying its patriotic efforts, making significant progress, and advancing considerable prospects to make do its promises no matter whose ox is gored.

    Exploration Continues

    It mustbe emphasized that NNPC Ltd is currently active in the inland basins of Nigeria with the following drilling projects:

    1. Wadi-2 Appraisal/Exploratory Well in OPL 732: This well is in Borno State, within the Chad Basin. It was spudded on November 4, 2023, and drilled to a total depth of 12,050 feet. The drilling phase was concluded on June 29, 2024.

    Preliminary results from the geological evaluation of the well objectives led to post-drilling well testing, which began on July 4, and is ongoing. This testing aims to further evaluate the target reservoirs for the occurrence of a commercial accumulation of hydrocarbons and to obtain data for future field development.

    2. Ebenyi-1 Exploration Well in OPL 826: This well is situated in Nasarawa State, within the Middle Benue Trough. Drilling began on July 17, 2023. The 17½ hole section was drilled and cased to a depth of 3,449 feet. The drilling operations faced challenges due to issues with the hole and equipment breakdowns. The turnkey contractor is finalizing plans to replace the drilling equipment with newer models to continue drilling operations to the planned total depth of 14,250 feet.

    Nigerians may recall that the defunct Frontier Exploration Services (FES) of NNPC Ltd drilled three wells—Kolmani River-2, Kolmani River-3, and Kolmani River-4—in the Upper Benue Trough (northeast Nigeria) on its behalf and co-venturers.

    This drilling campaign confirmed the presence of commercial hydrocarbon deposits in the Kolmani field of OPLs 809 and 810. The rig that drilled these wells was subsequently moved to start the Nasarawa project, with the goal of replicating the success achieved in the Kolmani field.

    In collaboration with co-venturers, NNPCL is working towards the next phase of field development. The post-exploration planning takes time to meet regulatory requirements before the development phase can commence. Significant infrastructure projects are currently underway to facilitate the movement of heavy-duty equipment for the next project phase in the area.

    NNPC Ltd has not and will not suspend its inland basins oil and gas exploration activities, as some have suggested. Instead, the company is intensifying efforts to expedite the process and ensure the efficient exploitation of hydrocarbon resources in these areas, thereby contributing to national energy security.

    Akinyelure/Kyari’s Midas touch

    The current leadership of NNPC Ltd appears committed to addressing every gap within its purview, and this also extends to infrastructural issues associated with the oil and gas industry such as gas shortages for power supply, pipeline protection and maintaining the uninterrupted provision of petroleum products across the country.

    Read Also: NNPCL discovers 220 illegal refineries in one week

    For clarity, the NNPC Ltd, under the chairmanship of Chief Pius Akinyelure and managerial leadership of Mele Kyari, is well-positioned to capture the economic opportunities associated with developing and selling hydrocarbons in a resource rich country like Nigeria. These benefits are to be equitably distributed across society and create wealth for human capital development and capacity building. It is to further achieve this sufficiency that, under Kyari’s leadership, NNPC Ltd is fully aligned with the federal government’s ambition to accelerate economic growth and diversify the economy for the benefit of all Nigerians. This is being achieved through timely, credible, clear, and consistent policies.

    Since taking charge in July 2019, he has driven significant organizational renewal and greatly improved NNPC’s performance and long-term viability. The board and Kyari have been the driving force behind ambitious business growth and have instilled a new commercial mind-set throughout the company’s entire value chain.

    Under his leadership, the NNPC Ltd workforce has been revitalized. Today, the company continues to attract the interest of business partners, customers, suppliers, and shareholders. Since its transition to a commercial entity under the Petroleum Industry Act (PIA) 2021, and in line with the Company & Allied Matters Act (CAMA) provisions, NNPC Ltd has consistently delivered value despite its unique operational challenges.

    Steady Growth

    For the first time in 43 years, NNPC declared a profit. From a loss of N803 billion in 2018, the company reduced this to just N1.7 billion in 2019. Remarkably, in 2020, NNPC posted its first-ever profit of N287 billion, which grew to N674.1 billion in 2021, and by the end of 2022, it had soared to N2.548 trillion

    In our 2023 Audited Financial Statement, AFS, we declared a net profit of N3.297 trillion for the fiscal year, indicating an increase of 28 percent (over N700 billion) compared to the N2.548 trillion recorded in 2022. The N3.297 trillion profit declared for 2023 is very symbolic as it is the highest ever to be recorded since inception, 46 years ago.

    In terms of asset growth, we have moved from N13,300 billion in 2019 to N15,836 billion in 2020; N16,262 billion in 2021; N58,652 billion in 2022; and N246,816 billion, in 2023.

    NNPC Ltd will definitely continue exploration in the north so that it can continue this type of excellent financial performance and gains for its investors and Nigerians at large.

    The more strategic explorations we make, the better for all of us.

    • Soneye is Chief Corporate Communications Officer, NNPC Limited.
  • NNPCL discovers 220 illegal refineries in one week

    NNPCL discovers 220 illegal refineries in one week

    The Nigerian National Petroleum Company Limited (NNPCL) has said security operatives discovered 220 illegal refineries in Bayelsa, Rivers, Delta, and Abia States in one week.

    This was contained in its documentary titled: “War on Crude Oil Theft,” posted on its X handle.

    It said: “In the past week, 220 illegal refineries were discovered and confiscated in Rivers, Bayelsa, Delta, and Abia States.”

    Between the 10th and 16th of August, this year, 416 cases by several incidence sources of Tantita Security Services, Shell Petroleum Development Company, Nigeria Agip Oil Company, Command and Control Centre, and government security agencies.

    NNPCL said in the period under review, 33 suspects were arrested.

    The company said the war on crude oil theft is on and the industry-wise security collaboration on hydrocarbon infrastructure continues to record remarkable progress.

    NNPCL noted that oil gushes from an illegal connection on a major pipeline in Brass, Bayelsa State.

    It further said 33 illegal connections were also uncovered in Ikesi in West Boma, Sapele, Brass, and Tukubu in Bayelsa State, where a vandalized pipeline is undergoing repair.

    NNPCL said they were also found in Tunbe and Ebube, Rivers State.

    The documentary said 15 vandalized pipelines in the wellhead were reported in Delta states leading to five cases of oil spill in several sites.

    Read Also: NNPCL petrol sells for half its landing cost

    It noted that 15 illegal storage sites housing reservoirs and sacks of stolen crude were seized in Delta, Rivers, and Imo States.

    NNPCL said 48 (Virtual Artificial Intelligence System (VAI infractions were reported at sea while 63 wooden boats were seized.

    The state-owned company said on land, 11 vehicle arrests were made in Rivers and Delta States.

    The documentary added that 48 of these incidences took place in the deep blue water, 25 in the western region, 112 in the central region, and 231 in the eastern region.

    NNPCL vowed: “There is no backing down on the war against crude oil theft.”

  • NNPCL petrol sells for half its landing cost

    NNPCL petrol sells for half its landing cost

    Price of petrol is being moderated by the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to guarantee stability, the oil giant has said.

    The NNPCL said it has been making PMS available for retail distribution at about half of the landing cost under an agreement with the government to safeguard Nigerians from the global fluctuation in oil prices.

    Its Chief Financial Officer Umar Ajiya explained that the company has been offsetting the shortfall in landing price and sale price through a reconciliation arrangement between the government and the company.

    He said the company had not paid any money to any marketer in the name of petrol subsidy in the last eight to nine years.

    While the official pump price of petrol is about N600 per litre, average landing cost is about N1,200.

    Read Also; Five Nigerians celebrities who are twins

    Ajiya said the company covered about N7.8 trillion in “shortfall” in the first seven months of this year, making a distinction between the current arrangement and the inglorious past of “subsidy scam”, known for payments to third parties for sometimes frivolous claims on supply.

    “I think there is one fact that I need to make very clear that in the last eight or nine years, that this company, even as a corporation as it were, has not paid anybody a dime or one naira as subsidy.

    “No one has been paid a kobo by NNPC in the name of subsidy. No marketer has received money from us by way of subsidy,” Ajiya said at a news conference.

    He said the government directs NNPCL to sell the petrol it imports, at a price that is half of the landing price.

    He said the reconciliation of the shortfall has been between the federation and NNPCL.

    According to him, at times the Federal Government pays the money and it could as well net off for it.

    “What has been happening is that we have been importing PMS, landing at a certain price, and government is telling us to sell it at half price. So, that gap between that landed price and half price is what we call shortfall or we call it subsidy.

    “And the deal is between the federation and ourselves to reconcile. Sometimes they give us money, sometimes we do net off. So, there is no money exchanging hands to any marketer or to anybody in the name of subsidy,” Ajiya said.

    President Bola Tinubu on inauguration day May 29, last year, announced that fuel subsidy is gone. Prior to the removal, Nigeria was spending more than N400 billion on subsidy monthly with national consumption volume of over 60 million litres per day.

    The figure was on the upward swing due to smuggling of the product which is of the highest grade in West and Central Africa to neighbouring countries.

    Upon the phasing out of the payment, which was also in line with the Petroleum Industry Act (PIA) that fully deregulated the product price, the national consumption officially reduced to 50 million litres per day.

    Prior to this, NNPCL had been enmeshed in what was known as “subsidy scam” under which huge payments were found to have been made to third parties as subsidy to bridge landing and sale prices. Several claims of product supply were found to be untrue.

    Many oil chiefs were arraigned by the government over allegations of bogus subsidy claims.

    Ajiya spoke at the presentation of the audited report and accounts of NNPCL for the 2023 business year in Abuja.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), Mosimi Depot, yesterday attributed the current fuel scarcity in Ogun State and other Southwest states to the inability of NNPCL to make petroleum products available to its members three months after they had paid for the product.

    IPMAN appealed to the Federal Government, as well as other critical stakeholders in the industry to prevail on NNPCL management to arrest the current situation, which has compounded the economic challenges residents, motorists and commuters are facing in the region.

    Chairman, IPMAN, Mosimi Depot Otunba Femi Adelaja, who made this known while speaking in Abeokuta, Ogun State, said his members had since June made deposit payment of N75.142 billion to NNPCL for supplies through the Lagos Private Depot Owners (PDO) but NNPCL is yet to make the product available to its members.

    Executive Vice President, Downstream, NNPCL, Dapo Segun , said it was not uncommon for the company to be in an open credit agreement with PMS suppliers, as it is a global practice in the industry.

    He said that establishing an open credit agreement with suppliers spoke volume of the credibility which the national oil company had built over a period of time.

    “Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.

    “What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.

    “You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.

    “It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country,” Segun said.

  • NNPCL FY’23: Kyari stands tall in spite of disruptors’ intrigues

    NNPCL FY’23: Kyari stands tall in spite of disruptors’ intrigues

    By Julius Akpovire

    Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company Limited, NNPCL, has again demonstrated the words of American Singer and actor, Frank Sinatra that “the best revenge is massive success.”

    Despite the multiple campaigns of calumny, lies, plots and character assassination sponsored by the nation’s oil saboteurs against the NNPCL, Kyari has continued to show professionalism and excellence with visible and outstanding results in the Nigerian oil and gas sector.

    We are familiar with individuals who take over bourgeoning establishments and further increase their worth on face value along the line, but it sounds like a fairy tale to have a professional who takes over a near-comatose, demoralized, and corrupt-laden organization and makes a corporate giant out of it. This best describes the transparent reformer and hardworking NNPCL GCEO’s strides at the national oil company.

    While detractors and forces of evil in the nation are busy plotting against the NNPCL chief because of their personal interests, Kyari has remained resilient, professional and focused in his bid to change the bad narratives of the oil and gas sector. He has painstakingly introduced several innovations into the oil company, which had since positioned the NNPCL on an upward trajectory.

    With his TAPE Agenda (Transparency, Accountability and Performance Excellence), Kyari has turned around the oil company, making it competitive at the global market and thereby increasing the nation’s prosperity.

    Kyari’s efforts have also rekindled investor confidence in the sector. He has been able to reduce pipeline vandalization and crude oil thefts in the Niger Delta areas. As against the trend, today, Nigeria’s crude oil production has increased to approximately 1.78 million barrels per day (inclusive of condensate).

    Kyari’s programmes and policies have enhanced transparency and efficiency in the operations of the company which has led to its continued growth in profitability since he assumed office in 2019 – a drastic turn from consistent losses the NNPC had suffered before 2019.

    Despite challenging economic conditions, NNPCL, on Monday, announced a remarkable milestone by reporting a record-breaking net profit of N3.3 trillion for the 2023 financial year, marking a substantial 27.6% increase from the N2.58 trillion in the corresponding period of 2022.

    The declaration is the highest profits ever made in NNPC’s history, and since it transitioned to a profit-making entity in 2020 after the enactment of the PIA into law.

    It’s worthy of note that in 2022, the company posted its second consecutive year of ‘profit’ announcing N674.1 billion in the 2021 financial period and growing it from N287 billion in 2020. The figure represented an increase of N387 billion or 134.8% when compared to the previous N287 billion recorded in 2020.

    Read Also: NNPCL not paying subsidy – Ajiya

    NNPC’s sustained profitability reflects a corporation that is not merely surviving but thriving, demonstrating robust outcomes that underscore NNPCL’s operational efficiency and strategic foresight.

    Speaking on the company’s 2023 results, Umar Ajiya Isa, executive vice president and chief financial officer of NNPCL, noted that the NNPCL achieved a remarkable ₦23.99 trillion in revenue, showcasing its robust market position and operational efficiency. With a gross profit of ₦7.04 trillion and an operating profit of ₦4.34 trillion, NNPCL achieved a net profit of ₦3.3 trillion at the end of 2023.These impressive results signify a solid net profit margin of 14% and an operating profit margin of 18%, demonstrating the company’s adeptness at converting revenue into substantial profits. In addition, the results showcased a 12% return on equity (ROE) as of FY2023 and maintained a current ratio of 1:1, reflecting a balanced approach to asset and liability management. Notably, the company’s debt-to-assets ratio stood at a mere 1.8%, highlighting prudent financial management and a robust balance sheet.

    Furthermore, the national oil company doubled its non-current assets, building on a remarkable 141% growth from the previous year. NNPCL noted that the asset expansion was primarily driven by strategic investments and the transfer of joint venture (JV) assets in alignment with the Petroleum Industry Act (PIA). The company’s total assets now stand at ₦246.82 trillion, reinforcing its status as a formidable player in the global energy sector.

    NNPCL also declared a final dividend of ₦2.101 trillion, following an interim dividend of ₦536.64 billion. This brought the dividend payout ratio to an impressive 80%, reflecting the company’s strong profitability and confidence in its continued success. With earnings per share (EPS) of ₦16.49 and a dividend per share (DPS) of ₦11.11, shareholders have reaped significant returns from their investment in NNPC Limited.

    On NNPCL’s future outlook, Ajiya stated that NNPCL has set its sight on achieving oil production of 2,000,000barrels/day and is currently working with the relevant security stakeholders to curb oil theft and pipeline vandalism in line with President Bola Tinubu’s directives.

    Ajia who also hinted that the NNPC Ltd will announce Initial Public Offer once the shareholders and board make a decision, debunked claims on subsidy payment, saying that no oil marketer has been paid fuel subsidy in the last eight to nine months by the company.

    In conclusion, Kyari, the silent achiever, has done well for Nigeria. Rather than victimizing him out of hate, he should be applauded for his sacrificial efforts in revolutionizing the oil and gas sector. It’s obvious Kyari and his energetic team at the NNPCL mean well for the nation.

    Nigerians should, therefore, be wary of the antics of some elements who are bitter because their evil businesses in the oil and gas sector have been truncated and also those on political vendetta.

    Oil saboteurs must not be allowed to have a grip on the sector any longer if Nigeria must rise again as crude oil and gas constitute 70 per cent of Nigeria’s budget revenues and 95 per cent of our foreign exchange earnings.

    We all must join hands to make Nigeria great again!

    *Akpovire, a journalist, writes from Lagos, Nigeria.*

  • NNPCL not paying subsidy – Ajiya

    NNPCL not paying subsidy – Ajiya

    The Nigerian National Petroleum Company Limited (NNPC Ltd.), says it has not paid fuel subsidy to anybody in the last nine years.

    Chief Financial Officer of the company, Alhaji Umar Ajiya made the clarifications on Monday in Abuja.

    Ajiya said the NNPC Ltd. was only taking care of Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.

    “In the last eight to nine years the NNPC Ltd., has not paid anybody a dime as subsidy, no one has been paid kobo by the NNPC Ltd. in the name of subsidy.

    “No marketer has received any money from us by way of subsidy.

    “What has been happening is that we have been importing PMS, which has been landing at a certain cost price and government tells us to sell it at half price.

    “So the difference between the landing price and that half price is what we call shortfall.

    Read Also: NNPCL shareholders to get N2.1tr dividends

    “And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy,” he said.

    According to him, credit lines are prevalent in the downstream business based on the world wide commercial system, adding that the company was in an open credit agreement with PMS suppliers in the past, with term lines agreement for payment.

    Also, Dapo Segun  the Executive Vice President, Downstream, NNPC Ltd., said that establishing an open credit agreement with suppliers spoke volume of the credibility which the national oil company had built over a period of time.

    “Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.

    “What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.

    “You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.

    “It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country,” he said.

    (NAN)

  • NNPCL shareholders to get N2.1tr dividends

    NNPCL shareholders to get N2.1tr dividends

    • Oil giant declares N3.3tr profit

    The Nigerian National Petroleum Company Limited (NNPCL) posted a net profit of N3.297 trillion for 2023.

    It announced that its shareholders will be given N2.1trillion as dividends.

    The figure, it said, represented an increase of over N700 billion or 28 per cent when compared to the 2022 profit of N2.548 trillion. The firm also released its 2023 Audited Financial Statement (AFS).

    In a statement Chief Corporate Communications Officer, Olufemi Soneye, quoted the Chief Financial Officer of the company, Umar Ajiya, as saying that the release of the AFS is a testament to the company’s commitment to transparency and accountability.

     “Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.

    He added that posting such impressive returns demonstrates NNPCL’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the company’s shareholders.

    Explaining that the NNPCL will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the company was only taking care of premium motor spirit (PMS) or petrol importation shortfall between it and the Federation.

    Executive Vice President, Mr. Dapo Segun made this known at the 2023 Audited Financial Statement presentation in Abuja.

    He recalled that NNPCL did the mechanical completion of the refinery last year, urging Nigerians to be patient.

    He explained that currently, the Crude Distillation Unit (CDU) that is the primary producing unit is now working.

    According to him, the CDU, which is a kettle, was fired up early this month.

    He explained: “The CDU of the Port Harcourt Refinery is working as we speak.”

    Read Also: NNPCL declares N3.29tr profit for 2023

    When will we get the product out?  He said: “That is the combination of the process of testing. We will test. You don’t get perfect production immediately when you start your refinery. You are going to get off-spec production.

    “We should be getting some off-spec production coming into town in the next few days. But we will not be able to get that to the public until we get off-spec production, which has been certified by NMDPRA.

    “The process of getting that to the public and getting it certified by NMDPRA, if I don’t make a mistake we should reach that point of getting it certified and getting our approval for Port Harcourt Refinery as fit for distribution by NMDPRA by some times in September.

    “But as it is now the unit is working. We are getting products. It is not an authorized spec yet.”

    On scarcity of petrol, Segun attributed it to a distribution challenge occasioned by rains and thunderstorms that have endangered the loading of the product.

    He also said the roads are part of the distribution challenges hindering the product supply.

    He said: “A number of the causes are outside our control but we do our best to manage. We do not like to make excuses but you will imagine, for example, since the rains began some channels have been difficult to navigate through.

    “We have vessel to vessel going out there because of the situation and that has really hindered our ability to bring in petrol products particularly PMS of the country.

    “You also understand that the rain also brings a situation where our ability to discharge petroleum products is challenged.

    “When you have lightning and thunderstorms, you have to suspend not just the discharge of petroleum products offshore but also the evacuation from the tank farms. Such has been the situation.

    “We have also had issues with the road network and that also gives challenges in bringing the product to the country. The terminal in Lagos was built to address a very short supply gap. Vessels are in Lagos now discharging as I speak. A number of these combined to create a nightmare situation for us but I can assure you we are doing everything in making sure we get petroleum products to the nooks and crannies of the country.”

    Speaking earlier at the press conference where the announcement was made, the Chairman of the NNPCL Board, Chief Pius Akinyelure, said the excellent performance came as the fruit of the PIA 2021, the commitment of the board, management and staff of the company. Akinyelure added that the company’s shareholders have since approved a final dividend of N2.1trillion in line with PIA 2021 provisions.

    In her remarks, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPCL is targeting two million barrels per day (mbpd) crude oil production by the end of the year.

    On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Dapo Segun, appealed for understanding from Nigerians, saying the company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.

    It would be recalled from a loss position of N803 billion in 2018, the NNPCL reduced the loss further down to N1.7 billion in 2019. However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548tr, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the company’s inception, 46 years ago.

  • NNPCL declares N3.29tr profit for 2023

    NNPCL declares N3.29tr profit for 2023

    The Nigerian National Petroleum Company Limited (NNPCL) on Monday, August 19, declared N3.29 trillion profit for the financial year 2023.

    The Chief Financial Officer (CFO) of NNPCL, Umar Ajiya, made the declaration at a press 2023 Audited Financial Statement presentation in Abuja.

    He said the profit grew by 28% from the N2.54 trillion recorded in 2022, N674.1 billion in 2021, N287.0 billion in 2020, N-1.7 billion in 2019, and N-1.7 billion.

    Read Also: Coalition seeks independent leadership for NNPCL, oil & gas agencies

    “Now, in 2023, profit has also grown by 28” from N2.5trillion to N3.297trillion, said Ajiya.

    The CFO depicted the profit as a reflection of the commitment and hard work of the management and staff of NNPCL who have worked day and night to ensure this company is sustainable and in a growth trajectory.

    He said the 2023 figure is the highest since the inception of the company. He said the profit is a reflection of the company’s 12 agenda.

    Ajiya said in the period under review, consequently, NNPCL has declared N2.10 trillion.

    Details shortly…

  • NNPCL not owing international traders $6.8b

    NNPCL not owing international traders $6.8b

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) has refuted a report claiming that the company owes international oil traders $6.8 billion and has not remitted revenues to the Federation Account since January, among other accusations.

    The Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, made this clarification in a statement issued yesterday.

    According to him, in the oil trading business, transactions are carried out on credit, making it a normal trend to owe at one point or the other.

    He said: “But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders.

    ”The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis.

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    Soneye further explained that it is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January.

    “NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly. This is in addition to payments of CIT to road contractors under the Road Investment Tax Credit Scheme.

    “In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC),” he noted.

    Soneye further noted that NNPC Ltd. has no role whatsoever in the issue of quality/quantity fiscalisation of imported petroleum products, emphasising that the company is not a regulator.

    According to him, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC Ltd.

    He said his firm welcomes media inquiries about its operations before public dissemination through print or electronic channels, and will gladly take the opportunity to present the facts on any given issue.

    “This is in line with the company’s commitment to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019, ” he said.

  • Daily crude production rises by 80,000 barrels on improved security, says NNPCL

    Daily crude production rises by 80,000 barrels on improved security, says NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has said improved security interventions in the nation’s oil sector had raised crude oil production by 80,000 barrels per day.

    A document, titled: July – Ramping Up Hydrocarbon Production, which NNPCL’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, issued exclusively to The Nation yesterday in Abuja contained the report of improved production.

    “Further improvements across assets have been realised due to the increased availability of evacuation lines, resulting from enhanced security interventions.

    “These combined efforts have contributed approximately 80,000 bopd to onshore and shallow water production,” said the NNPCL spokesperson.

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    The report showed that national oil output has exceeded 1.6mbld while gas production has steadily surpassed targets.

    “National production output has now surpassed 1.6 million barrels of oil per day (bopd) with gas production consistently exceeding targets,” it said.

    Explaining how production soared in July, Soneye said: “The increase in output during July and the early weeks of August 2024 can largely be attributed to improvements in the eastern and western flanks of onshore and shallow water operations.”

    The spokesman said key projects, including the restoration of the Tunu Associated Gas Compressor and the Beneside Associated Gas line in the western flank, as well as the Okodia Manifold, the Nun-river to Diebu Creek line, and the Kolo Creek to Gbaran Central Processing Facility bulk line in the eastern flank, had been successfully completed.

    He explained that the assets, which were previously completely shut down, have been restored.

    Last week, The Nation reported that Nigeria’s crude oil production rose by 33,698 barrels per day to hit 1.53mb/d in July.

    Prior to the recent impressive rise in production, Nigeria’s upstream activities had been on the downward trend due to insecurity and crude oil theft.

    The figure was abysmally low as 900,000 b/d at a point as several oil wells were shut in.

    But following the NNPCL War on Crude Oil Theft, the industry recovered with a positive record 1.6mbd in January.

    Asked how the nation recorded the increase, Soneye said: “The War Room initiative, led by the Group Chief Executive Officer, Mallam Mele Kyari, has a clear mandate by the NNPC Limited Board and the President, to rapidly and sustainably increase production.

    “This objective is being achieved by accelerating and removing obstacles from all viable initiatives focused on boosting and maintaining production in the short and medium term.”

    The statement added that the opportunities across the Upstream Portfolio had been identified with a strong emphasis on fast-tracking execution, closely monitoring progress, and ensuring sustained performance.

    “Since the activation of the Upstream Production War Room in June 2024, and the enhanced collaboration through industry-wide security architecture, the resurgence in upstream oil and gas production, led by NNPC Limited, has gained significant momentum,” Soneye said.