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  • Civil societies seek cooperation with NNPCL

    Civil societies seek cooperation with NNPCL

    Civil society groups yesterday urged stakeholders in energy to cooperate with Nigerian National Petroleum Company Limited ( NNPCL) to sustain distribution of petroleum products.

    They hailed Group Chief Executive Officer, Mele Kyari, for managing complexities associated with distribution of products, amid challenges.

    Olufemi Lawson (Centre for Public Accountability), Declan Ihekiare (Activists for Good Governance), Sina Loremikan (Campaign Against Impunity), Ganzallo Gbenga (Transparency Advocacy for Good Governance), Abdullahi Alli (Centre for Promotion of Justice) and  Aisha Kewulere (Women Advocates for Good Governance), urged private oil marketers, depot owners, and workers to work with NNPCL.

    The group said NNPCL’s efforts in maintaining supply are crucial to energy security.

     Noting NNPCL belongs to Nigerians,  Lawson said  if stakeholders cooperate with NNPCL,  it will discharge its duties as dictated by Petroleum Industry Act (PIA) 2021.

    Read Also: Civil societies: Stakeholders should cooperate with NNPCL

    He stressed NNPCL’s commitment is vital for guaranteeing national energy security.

    Lawson said: “We acknowledge challenges posed by volatility in global crude oil prices and market dynamics, which impact prices of products.

    “Despite the challenges, NNPCL has intervened to ensure Nigerians access petrol at affordable and competitive rates.”

    Lawson noted NNPCL has embarked on partnerships, including acquisition of OVH downstream assets, to expand its network of retail stations.

  • Civil societies: Stakeholders should cooperate with NNPCL

    Civil societies: Stakeholders should cooperate with NNPCL

    Civil society groups on Tuesday, July 9, urged stakeholders in the energy sector to cooperate with the Nigerian National Petroleum Company Limited (NNPCL) in its bid to sustain the effective distribution of petroleum products in the country.

    They commended its Group Chief Executive Officer, Mele Kyari, for the management of the complexities associated with the distribution of petroleum products, amidst considerable challenges. 

    They noted that his efforts have been pivotal in ensuring a consistent supply of fuel, especially during periods of heightened demand and logistical constraints.

    Addressing reporters in Lagos, Olufemi Lawson, (Centre for Public Accountability), Declan Ihekiare (Activists For Good Governance), Sina Loremikan (Campaign Against Impunity), Ganzallo Gbenga (Transparency Advocacy for Good Governance), Abdullahi Alli (Centre for Promotion of Justice) and Aisha Kewulere (Women Advocates for Good Governance), urged private oil marketers, depot owners, and workers to cooperate with NNPCL. 

    The group said NNPCL’s efforts in maintaining a stable supply of petroleum products nationwide are crucial to national energy security.

    Noting that NNPCL belongs to all Nigerians,  Lawson who spoke on their behalf, said if stakeholders cooperate fully with NNPCL,  it will discharge its responsibilities effectively as dictated by the Petroleum Industry Act (PIA) 2021.

    He stressed that NNPCL’s commitment is vital for guaranteeing national energy security.

    Lawson added: “We acknowledge the challenges posed by volatility in global crude oil prices and market dynamics, which significantly impact the prices of petroleum products. 

    “Despite these challenges, NNPCL has consistently intervened to ensure that ordinary Nigerians access Premium Motor Spirit (PMS) at affordable and competitive rates compared to neighbouring countries.”

    Lawson pointed out that NNPCL has embarked on strategic partnerships, including the acquisition of OVH downstream assets, aimed at expanding its extensive network of retail stations nationwide.

    He said as a result, NNPCL is approaching a significant milestone of capturing approximately 30% of the nation’s petroleum downstream retail market.

    Read Also: NNPCL blames disruption for FCT petrol scarcity

    Lawson said: “We affirm that any product purchased at NNPCL filling stations is guaranteed in terms of quantity, quality, and price, reinforcing consumer confidence and trust in the brand.

    “NNPCL has maintained robust collaborations with key stakeholders in the downstream sector, including IPMAN, MEMAN, DAPPMAN, PTD, and NUPENG. These partnerships ensure seamless storage, supply, distribution, and retailing of petroleum products across the nation. 

    “We call for enhanced collaboration among stakeholders to further ensure energy sufficiency for Nigeria.

    “We appreciate the efforts of NNPCL in fulfilling its mandate and urge continued vigilance and collaboration among all stakeholders to achieve a sustainable and energy-secure Nigeria.”

  • AKK will crash CNG price, says NNPCL partner

    AKK will crash CNG price, says NNPCL partner

    A partner of the Nigerian National Petroleum Company Limited (NNPCL): Cleanergy Innovation Limited (CIL) has said that the price of Compressed Natural Gas (CNG) will crash when the Ajaokuta Kaduna Kano (AKK) Gas pipeline begins production.

    The state-owned NNPCL, Group Chief Executive Officer, Malam Mele Kyari, had said the AKK will be completed by the First Quarter of 2025.

    But addressing reporters after the opening ceremony of the NNPCL CNG station opposite Prince and Princess Estate, Abuja, the CIL, Executive Vice Chairman, Shettima Bukhar Imam, said AKK will transport the gas while other stations will produce and supply it seamlessly,

    Allaying fears that increased demand will result in higher prices of CNG, he explained what is accountable for the soaring price of Premium Motor Spirit (PMS) petrol in comparison to CNG.

    He said: “If you produce at the refinery, you have to truck it, and when you truck it, you have to pay extra costs, and the government has to bear the cost.

    “That’s why you always have higher costs, and that’s why the government is paying extra money for transport and other costs.

    “So once we have this AKK, the gas will seamlessly move, and then the other stations will just produce and then supply to these stations seamlessly.”

    Imam noted that the Premium Motor Spirit (PMS) petrol has become experienced because the pipelines are no longer conveying the product.

    The pipelines, he said, can transport gas to all the country’s zones.

    Insisting the CNG price will nosedive in future, the Executive Vice Chairman insisted “I mean, the long, medium and long term, prices will come down, and then we will adequately utilize the abundance gas and make it available for Nigerians.”

    He also said only 3% of the country’s gas is deployed to CNG production, stressing there will be no shortage that can raise its price.

    Imam said CNG will bring a cheaper, cleaner alternative to PMS which will bring down the cost, and create more job opportunities and so many other advantages for the country and citizenry.

    Read Also: ‘CNG takes only 3% of Nigeria’s gas’

    According to him, there is limited capacity for petrol it is imported, unlike the CNG that is in abundance in Nigeria.

    Imam further noted that since the demand is relative, it will be relative to the extent of how fast the country moves on to produce the infrastructure.

    He said it will require “proper information dissemination, telling people the advantages, showing the advantages of the CNG vis-a-vis other petroleum products, and bringing in all the components, safety aspect of it, the proper usage of it.

    “Once people start to see the advantages, which is literally and largely based on us putting in the right engineers, the right environment, the right mechanics, the right resources, human resources, to make sure that the combustion and the kits and everything are working as kind of relative.”

    At the opening ceremony, he described it as one of the six ongoing stations.

    He added that while three have already been completed, three will be completed by next week.

    Imam stressed, “So, we all had all the speeches and the importance of CNG in Nigeria and why CNG is strategically imperative at this particular period in the Nigerian oil and gas journey.”

    He explained that CIL collaborates with NNPC, NRL, to provide and install and procure, and dispense CNG across the country.

    He said the firm has a contract to do more in Abuja and Lagos.

    Imam said aside NNPCL contract on CNG, CIL has invested its resources in the industry.

    He added that the firm has invested more of its resources to attract more markets in generators, pipes, and other sector.

    Asked to state the specific roles his firm plays in the NNPCL partnership, he said CIL plays diverse roles ranging from planning, creation and provision of innovative ideas.

    Imam also revealed that the firm is supportive of NNPCL “through ideas, through creating the right environment, advising and, you know, giving the skill brought to the engineers, human resources and so other resources to make it happen.”

    The Executive Vice Chairman said despite the exchange rate the CNG will survive because of its readily available investment.

    He said CIL can mitigate the situation to strike a balance that can mitigate the forex and other challenges.

  • NNPCL declares war on oil production challenges

    NNPCL declares war on oil production challenges

    The Nigerian National Petroleum Company (NNPC) Limited has declared a state- of- emergency on crude oil and gas production in the country. 

    The goals, according to the  Group Chief Executive Officer of NNPC Limited, Mr. Mele Kyari, are to boost the nation’s production capacity and foreign reserves.

    Kyari, who explained that the state- of- emergency would focus on tackling ‘’all major obstacles to effective and efficient crude and gas production,’’ added that 12 Compressed Natural Gas (CNG) stations built by NNPC Limited in collaboration with NIPCO Gas would be inaugurated tomorrow in Lagos and Abuja.

    He made this known while  delivering  a keynote address at  the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition, in Abuja yesterday

      The NNPC Limited boss listed inability of players to act in a timely manner, delays in procurement processes and old crude oil pipelines as some of the impediments to oil and gas production in the country.  

    He explained  that  a detailed analysis of assets revealed that the country  could  conveniently produce two million barrels of crude oil per day instead of the average 1.4 million bpd. 

    “We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation,” Kyari said.

    Read Also: Obasanjo parleys Southeast Govs on Nnamdi Kanu

    On medium to long-term measures aimed at boosting and sustaining production, the GCEO said NNPC Limited would replace all old crude oil pipelines built over four decades ago and also introduce a rig-sharing programme with its partners.

     The deployment of new pipelines and rig sharing programme would ensure that production rigs stay in the country for between four and five years as done in most climes.

     Kyari called on all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.

    He expressed the company’s commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development, and economic prosperity of the country.

  • NNPCL seeks judiciary’s support against oil theft

    NNPCL seeks judiciary’s support against oil theft

    In order for the oil and gas industry to achieve its full potential as an enabler of national economic and industrial growth, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has called for the support of the judiciary in tackling the twin challenges of crude oil theft and pipeline vandalism.

    He made the call at the National Judges Capacity Building Workshop on the Petroleum Industry Act (PIA) 2021 organised by the National Judicial Institute (NJI) and INVESTIN 234, on yesterday in Abuja.

    Delivering a goodwill message at the event, the NNPCL boss stated that the gains of the PIA have been severely undermined by crude oil theft and pipeline vandalism and urged the judiciary to consider the creation of a special court to try offences related to crude oil theft and pipeline vandalism or granting accelerated hearings to such cases.

     According to him, the role of the judiciary was critical to the success of the efforts of the various security arrangements put in place by NNPCL, the law enforcement agencies and other stakeholders in the industry.

    Read Also: Suit seeking Ganduje’s removal as APC national chair June 26 for hearing

     “In particular, is the recommendation that a special court be created to try those offences as they hinge on our survival as a country, and / or for such trials to be conducted under an accelerated hearing process by the issuance of Practice Directions to that effect, with concomitant sanctions to deter would-be offenders,” Kyari stated.

     He also called on the judiciary to accelerate hearing to criminal cases in their courts, through timely determination of the criminal charges and imposing adequate punishments and sanctions on culprits to serve as deterrent to others.

     He said NNPCL remains committed to collaborating with all relevant stakeholders to ensure the successful implementation of the PIA, adding that “together, we can ensure that the benefits of our natural resources are maximised for the economic and social development of our country.”

  • NNPCL denies reports on alleged inflated subsidy claims

    NNPCL denies reports on alleged inflated subsidy claims

    The Nigerian National Petroleum Company Limited (NNPC Ltd) has denied media reports that subsidy claims were inflated by N3.3 trillion.

    The NNPCL’s chief corporate communications officer, Olufemi Soneye disclosed this in a press statement on Monday, June 10.

    The statement said NNPC Ltd conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government.

    The company said all previous subsidy claims by the Company are verifiable as relevant records and documents have been sent to relevant authorities and agencies.

    NNPC Ltd, said Soneye, is neither aware of any audit of its subsidy claims nor probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses.

    The statement reads in part: “The Nigerian National Petroleum Company Limited (NNPC Ltd) notes with dismay a report in a section of the media alleging that it inflated subsidy claims by N3.3trillion, and wishes to state that:

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    NNPC Ltd conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the federal government.

    It added: “All previous subsidy claims by the Company are verifiable as relevant records and documents have been sent to relevant authorities and agencies.

    NNPC Ltd is neither aware of any audit of its subsidy claims nor probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses.

    “NNPC Ltd will resist any attempt to drag the Company into the apparent politics of fuel subsidy as it currently operates on a commercial basis and the express provisions of the Petroleum Industry Act (PIA).

    “It is on record that in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd. has, on several occasions, independently invited external auditors to review its books.

    “NNPC Ltd calls on media practitioners and media houses to exercise restraint and verify information before publication in keeping with the ethics of the noble profession of journalism to avoid misleading the public.”

  • NNPCL routs illegal refineries

    NNPCL routs illegal refineries

    • The biggest single score still underscores its urgency

    The latest discovery by the Nigerian National Petroleum Company Limited (NNPCL), of 122 illegal oil refining sites across the Niger Delta region in the week just gone by is heartwarming. It shows the company is focused on removing the scourge. it also underscores the gravity of the menace of crude theft in the region, and its staying power despite the heightened offensive to take it out.

    The 122 illegal refineries were said to have been found in Tomble II, III, IV, Umuajuloke in Rivers State, and Oporomor III, Eduwini, and Ajatiton in Bayelsa State. Also in the same week, 65 illegal pipeline connections were said to have been identified and removed by the national oil corporation. Indeed, in the week May 18 – 24 alone, 310 incidents of vandalisation were said to have been recorded across the region, the most notable being the vandalised wellheads in Tomble IV, (Rivers), and Egbema (Imo State). Also discovered was a pit filled with crude oil from a vandalised wellhead, including five illegal storage sites with oil stored in sacks, pits, cans, and a filling station in what has remained a thriving network of illegal oil refining and trade.

    It is not hard to decipher the motivation of the disparate actors on the illegal oil trade divide. For those in the business, the risks have come to count for nothing in the face of the potential fortune to be made. In other words, the illegal business goes on because the potential benefits far outweigh the risks. With a ready pool of suppliers and demanders to play in the absence of effective containment, the business doesn’t stop at merely breaching the pipelines or the associated refining and infrastructure; the environment is routinely violated just as product standards and performance are sacrificed on the altar of illicit gain while ignorance and criminality intermix.

    Surely, the menace is now such that can no longer be ignored. The NNPCL success shows this. As a matter of fact, the more those crude refineries are destroyed, the more it seems that

    nimbler and more sophisticated ones emerge to replace them, and these despite the humongous cost to the treasury, the environment and the social fabric.

    For the government, the choice isn’t whether to surrender to operators in the criminal enterprise but how to finally put them out of business. We are aware of the argument about the menace as being a derivative of alienation. Flowing from this is the equally persuasive argument that the government somehow find a creative way to accommodate them as against the current standard practice of destroying them. This, some have argued, will at least ensure some standards in the trade, promote inclusiveness while hopefully, helping to fill the perceived domestic supply gap.

    Read Also: NNPCL restates commitment to excellence

    We consider those as specious arguments to make. There are, doubtless, countless ways to address the issue of widespread poverty and the resultant alienation without resorting to an open endorsement of criminality and impunity. Given that the crux of the matter is poverty and unemployment, the challenge comes to how the youths in the Niger Delta might be further assisted with expanded opportunities to undertake legitimate businesses. 

    We note the common thread in all the stories about the discovery of illegal refineries and their associated infrastructure of pipeline vandalism – which is how the NNPC Ltd is finally squaring up to the menace. We have seen private surveillance companies brought in, the result of which oil production has been ramped up. So has the synergy between the different arms of security agencies improved. While these efforts have become necessary and should be sustained, what we expect to see, going forward, is greater use of satellite technology for round-the-clock surveillance of the pipelines and the entire environment where these nefarious activities take place. Surely, while commending the NNPCL breakthrough, the onslaught should not be considered over until the sector is fully rid of the menace.  

  • NNPCL restates commitment to excellence

    NNPCL restates commitment to excellence

    The Nigerian National Petroleum Company Limited (NNPCL) has reiterated its commitment to sustain the Company’s march towards process improvement, regulatory compliance and performance excellence.

    NNPC’s Executive Vice President, Business Services, Inuwa Danladi, disclosed this while speaking on the recent certification of the International Ship and Port Facility Security (ISPS) Code Compliance obtained by the Company, from the Nigerian Maritime Administration and Safety Agency (NIMASA).

    NNPCL Chief Corporate Communications Officer, Olufemi Soneye made this known in a press statement.

    The spokesperson said the ISPS certification, issued in April 2024 and covering all NNPC jetties nationwide, is crucial for the Company’s business continuity as it prevents potential operational disruptions and financial losses.

    Beyond demonstrating NNPC’s continuous adherence to regulatory compliance, Inuwa said the certification also grants the Company entry into the Global Integrated Shipping Information System (GISIS), enhancing its reputation as a safe and reliable business destination and potentially reducing the company’s insurance premiums.

    Read Also: NNPCL, Exxon Mobil close $1.28b divestment deal with Seplat

    Inuwa listed some of the rigorous processes followed in obtaining the certification to include the upgrading of relevant security facilities at the nation’s ports and jetties; the establishment of the ISPS Code Command Center; as well as the engagement of NIMASA Recognized Security Officer (RSO), who played a crucial role in managing key regulatory processes.

    Inuwa added that the development of Port Facility Security Assessment (PFSA) & Port Facility Security Plan (PFSP), coupled with the meticulous Verification Inspection Exercise (VIE) from NIMASA have also underscored NNPC’s commitment to ensuring adherence to the highest standards of maritime security in the Company’s operations.

    “This achievement is a testament to our consistent dedication, and we pledge to continue striving towards attaining regulatory excellence in all our operations,” Inuwa noted.

  • NNPCL, Exxon Mobil close $1.28b divestment deal with Seplat

    NNPCL, Exxon Mobil close $1.28b divestment deal with Seplat

    The Nigerian National Petroleum Limited (NNPCL) yesterday signed a  settlement agreement with Mobil Producing Nigeria Unlimited (MPNU), Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. in respect of the proposed divestment of a 100 per cent interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.

    This brings to a conclusion, a two-year stall on the $1.28 billion asset sale by Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.

    The settlement followed President Bola Tinubu’s assurance to a delegation from ExxonMobil Upstream Company that the Federal Government is committed to resolving the divestment issues between the company and Seplat Energy, currently under litigation.

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    Besides, it also brings to an end a two-year protracted tussle over the assets, which started in February 2022, when Seplat Energy announced an agreement to acquire ExxonMobil’s 40 per cent stake in MPNU — with the expectation that the transaction will be closed in the second half of the year.

    On May 19, 2022, the Nigerian Upstream Petroleum Regulatory Company (NUPRC), announced the disapproval of the transaction due to “overriding national interest”. But two months later, Seplat, again informed that the NNPCL had won a court injunction against ExxonMobil from selling its assets in Nigeria, which forced former President Muhammadu Buhari to withdraw his initial consent for the acquisition on August 10, 2022.

    Amid the uncertainties and haggling, Seplat, a year ago, announced an extension of the Share Sales and Purchase Agreement (SSPA) for the acquisition.

  • NNPCL, JV partners NDDC commission N24.5b Ogbia-Nembe road

    NNPCL, JV partners NDDC commission N24.5b Ogbia-Nembe road

    As part of activities to mark the first anniversary of the President Bola Tinubu administration, the NNPC Ltd and its joint venture partners – Shell Petroleum Development Company (SPDC), TotalEnergies, Nigeria Agip Oil Company (NAOC) – in collaboration with the Niger Delta Development Commission (NDDC), have commissioned the 25.7km Ogbia-Nembe Road in Bayelsa state.

    The project, valued at N24.5 billion, traverses mangrove forests with seven bridges and five culverts and connects 14 communities.

    Speaking at the commissioning ceremony held at Nembe on Monday, the Minister of the Niger Delta, Abubakar Momoh, who represented President Bola Tinubu, said the project was in alignment with the president’s “Renewed Hope Agenda” for sustainable development in the Niger Delta region in particular and Nigeria in general.

    NNPCL chief communications officer, Olufemi Soneye made this known in a press statement yesterday.

    The statement quoted Tinubu as saying, “This project is evidence of what good partnerships can bring to communities.”

    He urged other oil companies to collaborate with the NNPC Ltd and the NDDC to deliver transformative projects.

    Earlier in his remarks, the NNPC Chief Upstream Investment Officer, Bala Wunti, who was represented by Obinna Aralu, expressed satisfaction with the completion of the road, describing it as “a testament to the power of collaboration and shared vision.”

    He said the road was more than just infrastructure as it symbolizes progress, connectivity, and opportunities for the Nembe people through seamless transportation, increase in economic activities and general improvement in the quality of life.

    Wunti also thanked all the partners and stakeholders for their contributions to the successful delivery of the project.

    On his part, the Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, highlighted the transformative impact of the project, stressing that it “will connect communities to the city center, boost economic activities, and reduce risks associated with river transport.

    Okunbor reiterated Shell’s commitment to partnering with government agencies to deliver projects that are beneficial to the people of the Niger Delta region and Nigeria.

    Read Also: NNPCL, Schlumberger to boost upstream operations

    Also speaking, the Managing Director of NDDC, Dr. Samuel Ogbuku, said the commission was dedicated to completing projects across the Niger Delta region that serve the urgent needs in the communities.

    The Bayelsa State Governor, Senator Douye Diri, who was represented by his Deputy, Senator Lawrence Ewhrudjakpo, commended the NDDC, NNPC Ltd, and its partners for the project.

    The epoch-making event was highly attended by top government officials and traditional rulers from Bayelsa State, including the Senate Committee Chairman on Niger Delta, Sen. Asuquo Ekpeyong; Chairman of the House of Representatives Committee on the Niger Delta, Hon. Erhiatake Ibori-Senu; Chairman of NDDC Governing Board, Mr. Chiedu Ebie; the Amayanabo of Nembe Kingdom, King Edmund Daukoru, Mingi XII and the Obanobhan of the Ogbia Kingdom, King Dumaro Charles Owaba III.

    The completion and commissioning of the Ogbia-Nembe Road mark a significant milestone in the ongoing efforts by the NNPC Limited and its partners to enhance infrastructure and promote sustainable development in the Niger Delta region.