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  • NNPCL unveils 28,000bpd Utapate crude oil grade

    NNPCL unveils 28,000bpd Utapate crude oil grade

    The Nigerian National Petroleum Company (NNPC) Ltd yesterday announced the introduction of 28,000barrel per day (BPD) Utapate crude oil blend, a new crude oil grade into the international crude oil market.

    Its Chief Corporate Communications Officer, Mr. Olufemi Soneye made this known in a press statement, yesterday.

    He said from Oil Mining Lease (OML) 13, fully operated by NEPL, NNPC Ltd’s upstream subsidiary, the Utapate crude oil blend commenced operations in July 2024, as its first cargo headed for Spain.

    Located offshore Akwa Ibom State in Nigeria, Utapate’s current crude oil production is at 28,000 barrels per day, with potentials to increase it to 50,000 barrels per day.

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    Also, the sulphur content of the new crude is 0.0655 per cent.

    The statement noted that “Spanish oil giant Repsol, won the tender for the initial cargo of the new crude blend which is comparable to the much sought after Amenam crude. Gulf Transport and Trading, another leading crude oil dealer, have also secured the cargoes’ tenders for August and September 2024.

    During the Argus European Crude Conference in London last year, NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).

    “Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

    “This remarkable achievement signals the commitment of the NNPC Ltd to increase Nigeria’s crude oil production and grow reserves through the development of new assets.”

  • Knocks, kudos trail House’s dissolution of NNPCL probe panel

    Knocks, kudos trail House’s dissolution of NNPCL probe panel

    • It’s illegal cover-up, say lawyers, CSOs
    • Coalition backs Speaker’s action

    Mixed reactions yesterday trailed the dissolution of the House of Representatives’ Joint Committee on Petroleum (Midstream and Downstream) by Speaker Tajudeen Abbas.

    It was learnt that allegations of inducement against the committee had been flying around for weeks.

    Some costitutional lawyers and civil society organisations (CSOs), under the aegis of the Alliance for Transparency (AFT), criticised Speaker Abbas for abruptly dissolving the joint committee.

    In a joint statement by its spokesman, Mr. John Lalong, the group noted that the abrupt dissolution, which followed the rejection of certain overtures from the Nigerian National Petroleum Corporation Limited (NNPCL), appeared to be an illegal attempt to cover up some salient issues.

    House spokesman Akin Rotimi Jnr. yesterday announced that the Green Chamber’s leadership had dissolved the joint committee and formed an ad hoc committee to handle the investigation instead.

    The statement reads: “Initially tasked with investigating the importation of adulterated petroleum products, the non-availability of crude oil for domestic refineries, and other critical energy security issues, this committee will be succeeded by a newly constituted ad hoc committee with the same mandate.

    “To ensure the efficacy and independence of this investigation, the new committee will consist of honourable members selected for their expertise, competence, and integrity; the House remains committed to addressing these vital issues and ensuring thorough oversight. Further details on the new committee’s operations will be provided in due course.”

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    But in their statement, the Alliance for Transparency expressed amazement that the House leadership casually ended an assignment given to a standing committee and dissolved it through a mere statement from its spokesman.

    The group recalled that it took a resolution reached during a plenary session of the entire House for the matter to be referred to the joint committee, chaired by Ikenga Ugochinyere and Henry Okojie, for investigation.

    They noted that the heightened public interest and current economic situation showed that the public had confidence in the House to identify and resolve the problems in the downstream and midstream oil sectors, among others.

    The group expressed disappointment that the dissolution came just hours after allegations emerged that the NNPCL, unsettled by the uncompromising stance of the Green Chamber’s joint committee, had induced the House leadership to achieve the outcome.

    Describing the dissolution as an illegal plot by the House to cover up the rot in the petroleum sector, the group insisted that the only way to reverse the referral was through a resolution of the House in plenary.

    But the Coalition of Civil Society Organisations (CCSO) expressed its support for the dissolution of the investigative committee.

    In a joint statement yesterday in Abuja by its National Coordinator Abdullahi Adamu and National Secretary Idowu Adeniyi, the coalition said: “Today, we stand united as the Coalition of Civil Society Organisations (CCSO) to express our unwavering support for the Speaker of the House of Representatives.

    “In light of recent events, we commend the Speaker for his decisive action in disbanding the Joint Committee on Petroleum Resources (Downstream and Midstream). This committee had been mired in allegations of harassment, extortion, blackmail, and an unfair approach to the probe process within the oil sector.

    “The Speaker’s decision is a testament to his commitment to upholding the tenets of democracy, transparency, and accountability. By disbanding this committee, he has sent a clear message that unethical behaviour and misconduct will not be tolerated. This action not only restores confidence in the integrity of our legislative processes but also ensures that the interests of the Nigerian people are safeguarded.

    “We acknowledge the complexities and challenges inherent in overseeing such a critical sector as petroleum resources. However, it is imperative that those entrusted with this responsibility conduct their duties with the highest level of professionalism and integrity. The Speaker’s bold move reflects a commitment to these principles and a dedication to ensuring that the truth prevails.

  • Subsidy is thing of the past– NNPCL spokesman Soneye

    Subsidy is thing of the past– NNPCL spokesman Soneye

    • Says recruitment exercise focusing on selecting best candidates
    • ‘Our profitability is unshaken’

    ‘In this encounter with Olufemi Soneye, Chief Corporate Communications Officer (CCCO), of Nigeria National Petroleum Corporation Limited (NNPCL), he discusses the ongoing recruitment exercise of the outfit and other issues of profitability and energy sustenance. He spoke with Taiwo Babalola.

    Some people still see NNPCL as NNPC of old. What has changed?

    A lot has changed. First, we are now a private limited liability company, a true commercial entity governed by the Company and Allied Matters Act (CAMA) and the provisions of the Petroleum Industry Act (PIA) 2021. Unlike before, we are now obligated to source funds globally to conduct our business and run our operations efficiently.

    Second, we have significantly expanded our business, with profitability at the core of this growth. We no longer engage in any business or operation that does not yield profit. From the Group CEO to the newest employee, everyone is committed to delivering value to over 200 million Nigerians.

    Third, we have restructured our operations to align with current global realities and the evolving energy market dynamics. Our motto, “providing energy for today, tomorrow, and the future,” reflects our focus on the future. We are making deliberate investments in gas and power.

    We are transforming from a traditional oil and gas company into an integrated energy company with interests in power generation and transmission. Across Nigeria, we are building critical gas infrastructure projects that will enhance power generation, revitalize industries, generate significant revenue for the nation, create millions of jobs for our youth, and drive economic revival. Our recent investments in compressed natural gas (CNG), a cheap and cleaner alternative energy source, demonstrate our commitment to innovation in the energy sector. For example, car owners who have converted to CNG can drive from Lagos to Ijebu Ode and back on just ₦8,000.

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    President Bola Tinubu’s Executive Order has also set the sector on a progressive path. We are continuously investing in innovations to power Nigeria’s energy sector and drive growth.

    Can you clarify if there truly is a recruitment exercise going on at NNPCL?

    Yes, we have just announced the commencement of our 2024 Recruitment Exercise. We are seeking talented individuals across various fields to join our dynamic team.

    Expatiate on the ongoing exercise because its believability quotient is low among Nigerians…

    One thing I can tell you is that the interest in our recruitment process is overwhelming. For a long time, we have been a highly sought-after organization. The credibility of our recruitment is evident by the sheer volume of traffic that caused our official website to crash shortly after the process began.  We received millions of applications within hours, an unprecedented response. This level of interest reflects the belief that applicants have in their opportunity to join Africa’s largest energy company.

    Recruitment into a place like NNPCL would be very competitive, not necessarily because of intellect on display but because of the strength of godfatherism…

    Godfatherism has no place in NNPCL recruitment. Since 2000, when we began significant intake of graduate trainees, our guiding principle has always been merit. The records are available for anyone to verify. NNPC is virtually the only government agency where children of the less privileged have a fair chance of being hired, irrespective of tribe, faith, or gender. There are thousands of testimonials on social media from individuals who joined NNPC solely by meeting our criteria.

    The 2019 recruitment was highly transparent. While I understand the concerns of some Nigerians, I assure you that our recruitment exercise is based purely on merit. Under the leadership of GCEO Mele Kyari, all hiring methods, screening processes, tests, and interviews adhere to world-class practices, ensuring merit and transparency.

    We are also an inclusive organization, employing people with disabilities. We even arrange flights, transportation, and logistics for them to ensure their participation in the process. Once you meet the requirements, you have a chance. There is no need to worry about connections influencing your application. Successful candidates who went through the process without knowing anyone are sharing their stories on social media. While some unsuccessful applicants may try to discourage others from applying, we remain committed to a fair and transparent recruitment process.

    Talking about the difference between the old corporation and the new limited entity, what’s the structure? Some Nigerians still think the NNPCL structure is opaque, and former VP Atiku Abubakar alluded to this sometime ago…

    The notion that NNPC Ltd is an opaque company is false. Those promoting this narrative often have selfish, political, or other ulterior motives. People are entitled to their own opinions, but such opinions do not hold any weight.

    What opacity exists in a company that consistently keeps its shareholders, particularly millions of Nigerians, informed about its operations? Where is the lack of transparency in a company that regularly publishes its Audited Financial Statements for scrutiny?

    Under the leadership of Mallam Mele Kyari, NNPC Ltd has embraced the principles of transparency, accountability, and performance excellence (TAPE) in all its business dealings with stakeholders. It is well-documented that on the sidelines of last year’s United Nations General Assembly (UNGA), we became a global Extractive Industries Transparency Initiative (EITI) supporting company, further reinforcing our commitment to transparency and accountability.

    Becoming an EITI partner company means that we have joined a group of over 65 extractive companies, state-owned enterprises (SOEs), commodity traders, financial institutions, and industry partners who are committed to adhering to the EITI’s standards of transparency and accountability. This commitment underscores our dedication to openness in all aspects of our operations.

    How profitable is NNPCL? It is believed that subsidy is still being paid…

    NNPC Ltd is a profitable company with the potential to compete with its peers. Since Mallam Mele Kyari took the helm, he has positioned the company on a path of growth and profitability. For the first time in 43 years, NNPC declared a profit. From a loss of N803 billion in 2018, we reduced the loss to N1.7 billion in 2019. In 2020, we posted our first-ever profit of N287 billion, marking a significant turning point.

    We have not relented, continuing this positive trend by recording a N674.1 billion profit in 2021. By the end of 2022, our profit grew to an unprecedented N2.548 trillion, the highest financial performance in our 46-year history. This performance over the past five years clearly shows that NNPC Ltd is on the right track and can generate substantial returns for its shareholders.

    The GCEO often states that we are a $60 billion company. With the Petroleum Industry Act (PIA) empowering us to pursue more viable and sustainable investments, our profit margins are set to rise in the coming years. We have also made it clear that subsidies are a thing of the past. No more subsidy.

  • Dangote versus NNPCL: The other side of the story

    Dangote versus NNPCL: The other side of the story

    By Soji Adekunmbi

    The Dangote Refinery has accused the International Oil Companies (IOCs) of frustrating its operations by refusing to sell crude to it. In a statement released in July, which later followed up by Aliko Dangote himself, the company said the IOCs preferred to sell their crude to Asian countries or ask them to buy from the foreign subsidiaries instead of giving them priority as directed by Nigeria’s upstream regulatory body, the National Upstream Regulatory Commission (NUPRC). Dangote and his group have also accused oil marketers of shady business practices such as importation of adulterated diesel.

    Before Dangote Refinery came on board, oil marketing had been in existence with a combined investment portfolio of over N3 trillion in the downstream petroleum sector. The arrival on the scene of the refinery was welcomed by the marketers who saw it as a Nigerian project and were ready to work with him for the mutual benefit of Nigerians and their businesses.

    Early last month the marketers met with Dangote and raised concerns about his business model which was designed to sell fuel directly through the gantry and cut off depots. He acknowledged their worry and assured them that gantry sales commenced due to urgent needs to evacuate stock in order not to stall continuous refining process.

    The gantry can load enough to meet daily national consumption (his actual aim and intent) except that roads will be damaged and it cannot be the same as loading from Lagos, Oghara, Koko, Ph, Ifie-Kporo, Mboh, Calabar and other locations where depots are located. 

    At the meeting, marketers also mentioned the price disparity between local marketers and foreign traders who get Dangote Refinery’s product cheaper by at least, $50/metric tonnes than what is offered local companies and Dangote promised that these would be addressed to the mutual benefits of all and he urged marketers to just come forward with orders.

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    Alas! Dangote Refinery reneged and continued as it had been selling.

    Since the Petroleum Industry Act (PIA) 2021 allows imports under certain conditions, marketers proceeded to call his refinery’s bluff and thereby imported cheaper AGO! Dangote tried to block this through the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), the agency regulating midstream and downstream operations in the oil and gas sector but both were reported to President Bola Tinubu who directed a reversal of the regulator’s blockade. 

    This did not go down well with Dangote and this showed when suddenly NMDPRA suddenly gave notice to marketers to stop all AGO imports on June 1 and directed them to source AGO locally and Dangote Refinery, which marketers resisted! The NMDPRA had used ‘afri5’ sulphur spec as the excuse.

    Meanwhile, an ECOWAS Heads of Governments directive on ‘afri5’ is to become effective on December 31, 2024 and not June 1, 2024.

    Dangote then accused the NMDPRA of licensing marketers to import ‘dirty’ fuels, that is AGO with sulphur content above 50 parts per million! This was not true because as of February, marketers had started importing 50ppm AGO while Dangote Refinery was still producing 600-1200ppm AGO!

    Marketers responded to Dangote’s allegations and stated the facts above in addition to the fact that Dangote was, in fact, producing AGO with high sulphur. That response to their false allegations shocked the Dangote team, including the sulphur revelation.

    Aside Dangote’s tiff with marketers, he has also recently taken a shot at NNPCL accusing some of its officials of importing adulterated fuel. His grouse with the NNPCL is not difficult to fathom. As someone used to being pampered by government, Dangote probably went into the crude refinery business expecting to be wholly spoon-fed by government as had been the case with all his other businesses in the last two decades. It is not clear what promises or guarantees the Muhammadu Buhari administration gave him. One thing is clear however, and that is he provided him all the support he needed as made evident by Godwin Emefiele, former Central Bank of Nigeria (CBN) Governor during President Buhari’s commissioning of the unfinished refinery.

    Emefiele told the world that a refinery, which was still being constructed and had thus yet to refine one litre of petrol, had paid back 70 percent of the loan it took from banks for the project!

    For a refinery boasting a 650,000 bpd refining capacity, expecting the company to hand over all its crude to him was certainly an uninteresting joke. Surely, Dangote knows that Nigeria’s crude production currently stands at about 1.25 million barrels per day. With the 60/40 percent Joint Venture JV) Agreement with the IOCs and the various Production Sharing Agreements (PSCs), Nigeria should be getting around 750,000 barrels per day as in equity crude lifting. 

    But the Buhari administration executed about seven forward sale agreements, that is, the government borrowed money and used Nigerian crude for several years as repayment.  The Tinubu administration itself secured a $3.3billion loan from Afrexim Bank at 11.58 percent interest, which is to be repaid with 90,000 barrels of crude per day. There’s a report that the NNPC is taking another $2b loan and is pledging 30,000 to 50,000 barrels of crude oil of Nigeria’s equity towards repayment. 

    Add 90,000 bpd to the above. It means the Federal Government would have executed in one year, two forward sale agreements with crude oil commitment of140, 000 bpd.

    This brings Nigeria’s actual share of daily produced crude to around 200,000 barrels per day, which the government sells for $80 per barrel to earn about $16 million.

    These are very clear and straightforward issues, which any diligent seeker of truth will uncover. One of the things they’ll discover for instance is that when Dangote recently imported WTI crude from the United States, he incurred four weeks of demurrage because he couldn’t pay for the crude oil. Here in Nigeria, even the IOCs he is gas-lighting have bent over backward again and again to attend to his request.

     The truth is that IOCS have Special Purchase Agreement (SPA) with international buyers sometimes spanning 10 to 20 years with in-built penalties for default.  Despite this obvious challenge, one of the IOCs had to incorporate another trading company in London costing it millions of dollars just to sell crude to Dangote. 

    Dangote’s ship arrived at one of the IOCs export terminals, loaded crude oil, but once again, could not provide an LOC since June 29. The vessel is currently attracting demurrage. Dangote is asking for an additional $6/barrel discount and wants to pay in Naira. The reality is that no IOC will sell crude oil to him in Naira because oil blocks are awarded in dollars, signature bonus are paid in dollars, seismic survey and aeromagnetic survey with gravity data are acquired in dollars, interpretation of the data is 80% dollars, ditto oil wells are drilled, production facilities constructed, and so on.

    What emerges from of all of this is that Dangote’s capacity to finance his operations has shrunken drastically. The situation is made more difficult by the fact that the federal government, its biggest backer is itself, facing serious cash crunch and so cannot rescue him!

    •Adekunmbi  is an Abuja based public policy analyst.

  • ‘Corruption allegations against NNPCL unfounded’

    ‘Corruption allegations against NNPCL unfounded’

    A Coalition, the National Civil Society Council of Nigeria (NCSCN), has described the allegations of corruption against the management of the Nigerian National Petroleum Corporation Limited (NNPCL) as unfounded. 

    The company has been alleged to have been  involved in missing $2.04bn and N164bn in oil revenues.

    The accusations were based on the 2020 audited report by the Auditor-General of the Federation, which purportedly indicated that the funds were unaccounted for by the then Nigerian National Petroleum Corporation (NNPC).

    But the Executive Director of NCSCN, Comrade Blessing Akinlosotu, while addressing newsmen in Abuja, said the group had conducted thorough investigations, refuted the claims and exonerated NNPCL of any wrongdoing.

    He said: “Upon receipt of disturbing complaints from some of the affiliate members of the Civil Society Council, the leadership embarked upon independent enquiries and fact-finding missions which included interactions with both the accusers and the accused, leading us to vital discoveries and authentic records of the various issues raised. We hereby itemize some of the major accusations and contentious matters with the outcomes of our enquiries.

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    “The Leadership of NCSCN had a very thorough interface with the management of the NNPCL, calling for relevant books of accounts, while critical questions were asked.

    “The tedious and non-manipulated mission revealed that by 2020 NNPCL was not yet in existence at that time in question, NNPC was the established existence and NAPIMS was in charge of the business arm. NNPCL was incorporated in September 2021 and formally unveiled on July 19, 2022.

    “The Management of NNPCL presented to us the original Audited Account of NNPC which was found free of any verifiable fraud. NAPIMS is now scrapped, and the transition from NNPC to NNPCL proper stock-taking and auditees were conducted and made public, hence, the alleged missing funding is unfounded and unsubstantial even in the said AGF Report.

    “NCSCN will make records available to members in our planned National Civil Society Conversation on the Petroleum Industry and PIA by next month where this issue shall be laid to rest once and for all among the Civil Society Community. We can boldly assert that the missing fund does not exist in the books and records unless there are other documents available outside all the official Audit Records.”

  • Group writes Tinubu over allegation of corruption in NNPCL

    Group writes Tinubu over allegation of corruption in NNPCL

    President Bola Ahmed Tinubu has been asked to set up an independent judicial panel to probe the allegations of high-level corruption in the Nigerian National Petroleum Corporation Ltd (NNPCL) and the World Bank operations in Nigeria.

    In a letter sent to President Tinubu last Wednesday, a non-governmental organization (NGO), Journalists for Democratic Rights (JODER) asked him to appreciate the weight of the illicit practices linked to the NNPCL and the World Bank operations in Nigeria which further dips Nigeria’s image into the soak-away of global disrepute under the president’s watch.

    The NGO, established in 1996, asked the president to immediately set up a panel with people like Mr Femi Falana (SAN), Prof Jibrin Ibrahim, Olisa Agbakoba (SAN) and other credible Nigerians.

    The statement by Akinwale Kasali said corruption is at the heart of Nigeria’s underdevelopment and the root cause of violence and extremism that has taken a foothold in many parts of the country.

    The statement reads: “The Minister for Women Affairs, Uju Kennedy-Ohanenye had revealed that Nigerian World Bank officials take 40 per cent from all loans obtained by Nigeria. She also revealed that some members of the National Assembly demand and receive bribes from loans collected on behalf of 200 million Nigerians, while ministers are entitled to five per cent of the loan.”

    JODER said the World Bank officials are both Nigerians and their European rogue cartels whose main motive is to keep Nigeria as a satellite state that will never develop, hiding under the pretences of false assistance and development partnership.

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    It added: “On the scandal in the oil and gas sector, the Chairman of the Dangote Refinery said some NNPCL officials have set up refineries in Malta with a plot that would automatically stifle the prospect of oil and gas production and destroy indigenous growth of the industry at the home-front.”

    The group described the two revelations on the World Bank and the NNPC as the “biggest scam in African recent history”.  It added: “‘The first action we expect from President Tinubu is to suspend the NNPC officials whose names have been associated with the scam. The Federal Government should also demand an immediate suspension of the World Bank representative in Nigeria pending the outcome of the investigation.”

    The group said the revelations by the minister and Dangote have brutally shaken the faith of Nigerians beyond measure raising the fear that redemption is impossible. It said: “The president needs to give hope to a despairing population that seems to have resigned to hopelessness and frustration.

    “These two issues of high-level corruption must never be swept under the carpet. A probe is necessary for Nigeria to regain her lost reputation on the global map. These revelations show that the World Bank loan is a big scam; a conscious plot to stunt Nigeria’s search for economic freedom.

    “It shows the loans largely go into private pockets. Little wonder Nigerian government officials are desperate to seek loans all the time, which the National Assembly is always anxious to approve. It is not for development, but to largely oil the pockets of private individuals.”

    JODER described the developments as “a human tragedy of unprecedented proportion”.

  • Warn Agbese over allegations against NNPCL, NMDPRA, group tells Speaker Abbas

    Warn Agbese over allegations against NNPCL, NMDPRA, group tells Speaker Abbas

    The Energy Transparency Initiative (ETI) has expressed dismay over the recent statements by House of Representatives Deputy spokesman, Philip Agbese, over the Nigerian National Petroleum Corporation Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    The group in a statement by its convener, Ganzallo Gbenga, and programme officer, Chinelo Ochiaga, said the allegations by Agbese that the NNPCL and NMDPRA were involved in a deliberate attempt to undermine the Dangote refinery was an affront to the House of Representatives.

    They noted that such remarks are not only misleading but also demonstrate a concerning departure from his responsibilities as a federal lawmaker.

    “While we are not willing to be mouthpiece of both regulatory authorities, being accused by Mr Agbese, we cannot but remind Nigerians that as an organization with over a decade of involvement in series of advocacy on transparency and accountability in the sector, we have full knowledge of issues that are responsible for the recent dispute between Dangote Refinery and the regulatory authorities.

    “It is troubling that Agbese has chosen to abandon his duty as a representative of the people and instead assumed the role of an advocate for the Dangote Refinery.

    “His position should obligate him to act impartially, especially in matters involving multiple stakeholders. By aligning himself so closely with a single business interest, he undermines the very essence of his role as an unbiased arbitrator within any relevant committee.

    “In the House of Reps, his voice has never been heard, no bills sponsored, no motions moved and has also not carried out empowerment to his Constituency.

    “Agbese’s actions reveal a troubling pattern of prioritizing the interests of a single entity over the broader collective welfare of Nigerians. The Dangote refinery, while a significant player in the industry, represents individual business interests that do not necessarily align with the national interest.

    “The apparent bias demonstrated by Agbese risks neglecting the broader implications of the refinery’s operations on the general populace and undermines the regulatory framework designed to ensure fair play and transparency.

    “It is imperative to remind the lawmaker that his call for the dismissal of the Group Chief Executive Officer of NNPCL and the Authority Chief Executive of NMDPRA is not only misplaced but lacks merit.

    “We had expected all parties involved in this NNPCL and Dangote feud to maintain their silence but were shocked to realise that Agbese who’s a member of the committee set up by the House to investigate surrounding allegations chose to take a side and has made statement that are uncalled for.”

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    The Energy Transparency Initiative said Agbese needs to be schooled on how both the NNPCL and NMDPRA works and not dabble into affairs that are beyond his literacy level.

    The group noted that the era where Agbese blackmails public institutions will not fly with government agencies as they won’t succumb to such.

    “The agencies targeted for blackmail and pecuniary gains by Agbese and his team have outlived governments and individuals and will continue to do so continue, no matter the corporate or legislative blackmail.

    “The oil and gas sector business is too sophisticated a knowledge for Agbese to understand and meddle into. We urge him to immediately resign his position as the Deputy Spokesperson of the House of Representatives.

    “He can also chose to apply for employment in NNPCL if he choses to defend them, especially now that the recruitment exercise is ongoing.

    “We call on the leadership of the House of Representatives to address this matter with the seriousness it deserves. It is crucial that members of the House focus on their legislative duties and refrain from interfering in regulatory issues they do not fully understand.

    “This will ensure that the integrity of the legislative process is maintained and that public trust is upheld,” it said.

    The Energy Transparency Initiative urged the House leadership to rein in Agbese and his associates.

    “Their current approach not only jeopardizes the effective functioning of regulatory bodies but also risks undermining the efforts to achieve transparency and accountability in the oil and gas sector.

    “We further implore all stakeholders to remain vigilant and uphold the principles of fairness and transparency.

    “The progress of Nigeria’s oil and gas sector depends on the collective efforts of all parties involved, and it is imperative that individual agendas do not derail this important endeavor.

    “The Energy Transparency Initiative shall remain committed to advocating for due process, transparency, and security in the oil and gas sector.

    “We will continue to monitor developments and ensure that all actions and policies are aligned with the national interest, free from undue influence or partisan agendas.”

  • ‘NNPCL still swaps crude for 1MMT fuel supply’

    ‘NNPCL still swaps crude for 1MMT fuel supply’

    Experts and stakeholders in the oil and gas sector at a Major Energies Marketers Association of Nigeria (MEMAN) quarterly briefing, yesterday, revealed that the country’s fuel consumption requirement is still being supplied through the Direct Sale Direct Purchase (DSDP), or crude swap, importation programme of the Nigerian National Petroleum Company Limited (NNPCL). The country’s consumption capacity is estimated at about One Million Metric tonnes (MT).

    They therefore blamed the petrol price and supply hiccups currently facing the country on the monopoly of importation of Premium Motor Spirit (PMS) otherwise known as petrol by the NNPCL.

    The DSDP is a transactional framework adopted by the NNPCL after the 445,000 barrels of crude capacity refineries in the country stopped production, giving room for local and international traders contracted to lift Nigerian crude oil owned by NNPCL and deliver Petroleum Products.

    A former Chief Operating Officer, Upstream of NNPC, Bello Rabiu, speaking at the webinar, argued that with consumption capacity estimated at about One Million MT (1.341 billion litres) currently being supplied through DSDP importation programme of NNPC  remains the only supply source of PMS in the Nigerian Market due to inability of other players to secure forex for direct importation.

    Thus, NNPC is effectively the only supplier of PMS in Nigeria today.

    “Being the only supplier and importer of PMS in Nigeria, NNPC is currently the determinant of PMS price as other players are only adding their margins to arrive at pump price depending on location,” he said.

    With the scraping of petroleum equalization fund (PEF) and based on the foregoing, retail price of PMS across the nation depends on the NNPCL landing cost, availability of the products along the downstream value chain as well as the realisable margins by other players from jetties to retail stations, Regulators/MDAs such as NPA, NIMASA and NMDPRA.

    He therefore called for a review of the current business model and institutional arrangements of the deregulation policy which has resulted in one dominant player (NNPC) to import and fix the prices of PMS across the nation.

    This, he said this is not consistent with the provisions of Petroleum Industry Act (PIA) 2021 which envisages the participation of multiple players operating under open competitive environment with multiple supply sources from import and domestic refineries under a level playing field aimed at delivering products at lowest possible prices at the pump.

    “Under the current model, No one knows the actual cost of importing a litre of PMS into the Nigerian market except NNPC. NMDPRA no longer publish the pricing template to enable the citizens know the official landing cost of any product Ex-Lagos since the announcement of full price deregulation and total removal of PMS subsidies,” Rabiu said.

    According to him, this situation has resulted in total lack of accountability and substantial revenue leakages that cannot be quantified due to lack of transparency in the process.

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    He said: “If we can be told what Customs duty is daily in Nigeria, we should be equally told how much is the fuel being imported”

    “For example NNPC insists there is no more subsidy in the pricing of PMS but the difference between the AGO and PMS open market prices clearly shows some elements of subsidies or hidden cost recovery in the open market prices of PMS across the nation” he stated.

    But the MEMAN disclosed that as at last Tuesday, the landing cost of petrol was N1,117/ litre; diesel was N1,157/litre, while that of aviation fuel was N1,127/litre. Executive Secretary of MEMAN, Clement Isong, said the costs were obtained from independent energy price benchmark providers.

    Raising hope on the coming on stream of Dangote refinery for PMS, Rabiu said Dangote Refinery would soon become a major supplier of petroleum products, adding that there must be regulatory intervention to ensure smooth entry of Dangote Refinery into the supply chain.

    He said: “Immersion of Dangote Refinery in the downstream petroleum sector is a game-changer in the journey towards full deregulation.

    “Government intervention to ensure a level-playing field in collaboration with all stakeholders is the most critical next step.

    “All hands should therefore be on deck to ensure the attainment of a transparent, competitive, efficient and sustainable liberalized downstream petroleum sector in our country, Nigeria,” he stated.

    The Founder and Chief Consultant, B. Adedipe Associates Limited, Abiodun Adedipe said there are frustration in the value chain due to unavailability of feed stock for local refineries, particularly Dangote Refinery which has the capacity to meet Nigeria’s fuel needs.

    He said: “the crude must be refined locally, the products should be available in sufficient quantity and we should provide a level playing ground for all players in the market.”

    He emphasised that the government should ensure there is transparency in the system and allow competition to come into play, while ensuring that there is no monopoly in importation and domestic production.

  • Nigeria to export petroleum products by Dec, says NNPCL

    Nigeria to export petroleum products by Dec, says NNPCL

    • PH refineries begin operations next month
    • Food cost pushes inflation rate to 34.19%

    Nigeria’s oil industry will join the big league in December when it becomes a net exporter of refined petroleum products.

    Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer (GCEO), Mele Kyari, said yesterday that ahead of this, the Port Harcourt Refinery will go into full operation and petrol supply from next month.

    According to him, the Warri and Kaduna refineries will follow suit by December.

    On Sunday, Alhaji Aliko Dangote said the Dangote Refinery will pump petrol in commercial quantity also from next month.

    These are expected to bring relief to Nigerians.

    Kyari spoke when he appeared before the National Assembly Joint Committee on Finance.

    He was part of the Federal Government’s finance team that shared ideas with the lawmakers on how the Executive is tackling the myriad of economic challenges.

    Yesterday, the National Bureau of Statistics (NBS) put the June headline inflation rate at 34.19 per cent, pushed up by the 40.87 per cent food inflation.

    Other members of the economic team at the parley led by the Coordinating Minister of the Economy Mr. Wale Edun were: Budget/National Planning Minister, Senator Atiku Bagudu; Minister of State for Petroleum Resources, Senator Heineken Lokpobiri; Central Bank of Nigeria (CBN) Governor, Dr Yemi Cardoso, represented by Deputy Governor (Economic Policy) Muhammad Abdullahi and Federal Inland Revenue Service (FIRS) Chairman, Mr. Zacch Adedeji.

    Edun and Abdullahi joined the meeting during the closed-door session.

    Relying on emerging indicators in the energy and gas sector, the NNPCL boss told the committee that Nigeria will become a net exporter of refined petroleum products by December.

    Kyari told the committee that the Port Harcourt Refinery will start production early next month, adding that this will be followed by the one in Warri and Kaduna Refinery latest by December.

    He added that in a few months, the daily crude oil production will hit two million barrels with the logistics so far put in place.

    Kyari said: “NNPCL and the oil and gas industry are very critical in bringing a turnaround in our current economic situation, and we understand the importance of this. We are taking every step that is practical for us to achieve this.

    “We have already seen growth in our oil and gas production because of certain actions that Mr. President personally took, and also the very mere truth that we have also declared a war on production activities and this is yielding the required results.

    “The combination of these two has now seen us restoring production in our country, and we believe that, as the minister has said, we will soon hit the target of two million barrels of oil production per day.

    “I’m aware that there are several comments in the public space around refining business and domestic production, including production that will come from the commissioned Dangote refinery.

    “This country will be a net exporter of petroleum products by the end of this year. We’re very optimistic that by December, this country will be a net exporter.

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    “That means a combination of production coming from us, and also from Dangote refinery and other smaller producing companies are in line to do this.

    “So, I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

    “We have spoken to a number of your committees that it is impossible to have the Kaduna refinery come into operation before December, it will get to December. Both Warri and Kaduna but that of Port Harcourt, will commence production early August this year.”

    The CBN Deputy Governor said the triple challenge of rising inflation, foreign exchange rate fluctuations and food inflation would soon be on the reverse trend as indicators to that effect are already emerging.

    Bagudu said the 2024 Budget is already being implemented and that there is ongoing negotiation with Labour leaders on the new minimum wage.

    Chairman of the joint Committee, Senator Sani Musa, appealed to Nigerians to persevere “as the government is working around the clock to stabilise the economy”.

    He added: “Our critical interactive session with you as managers of the economy is about economic growth. It’s about how we can get our policies to work. How we will support Nigerians.

    “The National Assembly is very concerned because we are the representatives of the people. And we are obliged to ask what is happening and this is the reason for this meeting.

    “We have heard from you, at least you have given us preambles of the activities going on, on how our economy can get back on track.

    “You are all aware of the obstructions our economy has had in the previous years and it is not going to be easy that overnight, in 365 days or in one year of the coming administration, things will change. It will be gradual.

    “I believe that Nigerians will persevere. This is the only time we can all come together as Nigerians to give His Excellency the President, all the needed support to get us out of all the trouble we have been.

    “The indicators are showing that the economy is doing well. Things are a bit difficult because it is not easy for inflation that has gone up to go down like that. It takes time.”

    Inflation rises to 34.19 per cent

    Nigeria’s headline inflation rate rose marginally by 0.24 percentage points to 34.19 per cent last month from 33.95 per cent in May.

    Food inflation also increased to 40.87 per cent last month against 40.66 per cent the previous month.

    The National Bureau of Statistics (NBS), in its latest report, said: “In June 2024, the headline inflation rate increased to 34.19 per cent relative to the May 2024 headline inflation rate which was 33.95 per cent.

    ‘’Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24 per cent points when compared to the May 2024 headline inflation rate.”

    The NBS stated this in its Consumer Price Index (CPI) released yesterday.

    The CPI  measures the average change over time in the prices of goods and services consumed by people daily.

    “On a year-on-year basis, the headline inflation rate was 11.40 per cent points higher compared to the rate recorded in June 2023, which was 22.79 per cent,’’ the report added.

    However, the rate of increase (0.24 percentage points) is lower than that of  May and other months.

    “On a month-on-month basis, the food inflation rate in June 2024 was 2.55 per cent, which shows a 0.26 per cent increase compared to the rate recorded in May 2024 (2.28 per cent),” it said.

    The NBS attributed the development to a rise in the average prices of food items.

    CPI had risen from 33.20 per cent in March to 33.69 per cent in April.

    Nigeria has seen 19 months of consecutive inflationary pressure, pushing the inflation rate to a 28-year high.

    Many experts at Cordros Capital Group, and CardinalStone Group, had expected a gradual and sustained decline in inflation in the months ahead, with some highlighting possible disinflation from July 2024.

    Financial Derivatives Company (FDC) predicted that average prices would rise further this month. It cited renewed inflationary pressure.

    FDC particularly noted that imminent wage increases could trigger cost-push inflation.

    President of the Association of Capital Market Academics in Nigeria, Prof. Uche Uwaleke, said recent fiscal measures by the Federal Government designed to address food shortages would manifest in a slowdown of costs.

  • NNPCL seeks fresh $2b oil-backed loan

    NNPCL seeks fresh $2b oil-backed loan

    • ‘We’ll make official announcement when we are ready,’ says Soneye

    The Nigerian National Petroleum Company (NNPC) Limited yesterday reacted to a report on its plans to secure a fresh $2 billion oil-backed prepayment loan amid fuel scarcity in the country. Reuters had reported on Tuesday, that the firm plans to achieve the deal in two months, quoting the Group Chief Executive Officer, NNPCL, Mele Kyari, as saying the new financing would allow investment in its business.

    “We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act,” Kyari told Reuters.

    But reacting to the report, the Chief Corporate Communications Officer, NNPC Ltd , Olufemi Soneye, neither gave a clear refutal or admittance to the report. Soneye, in response to enquiries by The Nation on the fresh $2 billion loan being sought by the Company, said: “when we are ready to proceed with any of the initiatives mentioned, we will make an official announcement. As a global energy company, we need funding to undertake aggressive drilling campaigns. Naturally, we will require financing for our high capital expenditure projects. Our financing arrangements are typically announced through our financial advisers and arrangers. When the time comes, new financing transactions will be announced to the market.”

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    According to the Reuters report, Kyari said the company wanted the new loan against 30,000-35,000 barrels per day of crude production, though he declined to say how much money it sought.

    “It will be syndication with critical but regular partners who have been in business with our company to forward the cash,” the media outlet quoted Kyari as saying on Tuesday, adding that he expected to conclude the deal in the next two months.