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Tag: NPDC

  • Baru commends NPDC on 100% local content on gas facility

    The Nigerian National Petroleum Corporation (NNPC)  has commended the Nigerian Petroleum Development Company (NPDC), for achieving 100 per cent local content input in  the development of Oredo Integrated Gas Handling Facility (IGHF).

    Dr Maikanti Baru, the Group Managing Director of NNPC, made the commendation when he visited NPDC, its upstream subsidiary on Wednesday, a statement released by the Corporation, on Thursday in Abuja said.

    The GMD toured the NPDC’s Oredo Flow Station, Oredo Gas-to-Pan-Ocean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, all in Edo.

    He said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC.

    “From engineering, construction to erection of the various units, we feel very encouraged by the huge man-hours which you are putting in here, day and night, with full local content,” Baru told over 500 workers at the site.

    “The IGHF is currently at 80 per cent completion.

    “ When completed in December, it will make provision for dehydration of gas and liquid extraction.

    “ It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS),’’ he said

    He described the Oil Mining Lease (OML) 111, where the gas projects were located, as one of the most significant assets of the NPDC.

    According to him, it is where the corporation’s staff members and their contractors design, build and operate facilities hitherto operated by the International Oil Companies (IOCs).

    “You could see that right from the well-design through to reception of the various liquids to the processing and disposal of the various outputs, it is fully indigenous. So, it cannot be better than this,” he added.

    He said as a National Oil Company (NOC), the corporation was using this to showcase its ability to intervene.

    “We are not just a player, we are also building capacity that can enable us intervene by taking over any assets whenever any contractor decides to opt out,” he said

    Baru stated that the project’s funding constraints would be addressed soonest and noted that NNPC was considering alternative means to support and complete the project.

    “All these projects are located within OML 111, one of our critical assets which we are keen on deriving maximum benefits from,” he stated.

    Earlier, the Managing Director of the NPDC, Mr Yusuf Matashi, thanked the NPDC Board led by the GMD, for coming down to inspect the gas facilities, saying it was the first time the company was witnessing a highly-synchronised support towards the projects.

    He said the LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.

    “Another advantage is that it will ensure ease of distribution and penetration into the market. You can take LPG to every nook and cranny of the country from here. So, it is quite strategic,” he noted.

    He said in line with NPDC’s Corporate Social Responsibility (CSR) efforts, the company had engaged the youth within the host community area, with a number of them fully involved in the local contracts around the project as well as the pipeline Right Of Way (ROW).

    “We have also completed a Skills Acquisition Centre which is currently being furnished in line with the component of the project.

    “We intend to commission the centre even before the project is completed.

    “From our records, this is one project that has engendered cordial relationship with the Oredo community and we hope to replicate similar understanding in other areas within the Niger Delta,” he said

    Also, the NNPC Chief Operating Officer, Upstream, Malam Bello Rabiu, expressed happiness that the project would be delivered within time and budget.

    He also charged the workers to double the over one million man-hours achieved so far in the project without any incidence.

    Located 34km southeast of Benin City, the OML 111 is an onshore field comprising five fields viz: Oki-Oziengbe-South, Aroh North, Koko, Oghama as well as Oredo, which has 12 out of its 15 wells currently producing.(NAN)

  • NPDC pledges compliance with Nigerian Content guidelines

    The Nigerian Petroleum Development Company (NPDC), the exploration and production arm of the Nigerian National Petroleum Corporation (NNPC), has promised to comply with the provisions of the Nigerian and Oil and Gas Industry Content Development (NOGICD) Act and other guidelines of the Nigerian Content Development and Monitoring Board (NCDMB).

    Its Managing Director, Mr. Yusuf Matashi, made the commitment in Abuja during a meeting with the Executive Secretary of the NCDMB, Simbi Kesiye Wabote. He said the company would not be seeking waivers from the board for its projects, rather it would abide by the provisions of the Act, especially as it relates to carrying out competitive bidding and utilising Nigerian oil and gas service companies and locally manufactured goods and services.

    Matashi said the company would approach the Board to obtain Nigerian Content Plan (NCP) approval as required by the NOGICD Act for all its future projects that is in excess of one million dollars. NCP sets out work scopes that would be executed in-country and guides project execution and monitoring. He promised to direct the company’s personnel on the primacy of Nigerian Content guidelines to project execution.

    The NPDC chief also solicited the Board’s support to develop and institutionalise Nigerian Content systems and processes within the NPDC to ensure compliance. Part of the support his company would need, he noted, includes workshop or training for staff of NPDC on Nigerian Content requirements and processes.

    The Managing Director of National Engineering & Technical Company Limited (NETCO), engineering arm of NNPC, Mr. Yakubu Mustapha, stated that his subsidiary is a major beneficiary of the Nigerian Content Act. He added that NETCO could not have been able to compete with its international counterparts but for the Nigerian Content Act which has enabled it to grow and build requisite capacity.

    Wabote underscored the need for close collaboration between the Board and NPDC. He charged NPDC to be a role model for the industry in terms of Nigerian Content compliance, considering especially that the NNPC played leading roles in the development and enforcement of the Nigerian Content policy and establishment of the NCDMB.

    Top management of the board at the meeting were the Director Planning, Research & Statistics, Mr. Daziba Patrick Obah; Director Monitoring & Evaluation, Mr. Akintunde Adelana and General Manager, Projects Certification and Authorisation Division (PCAD), Paul Zuhumben and Abayomi Bamidele, Special Technical Adviser to the ES & General Manager Strategy & Special Projects.

    The NPDC chief was accompanied by the Executive Director, Asset Management, Mr. Raifu Oyewole Oyedele, while the NETCO boss was accompanied by the Manager Projects Controls, Mr. Isokariari Soibi.

  • NEITI urges FG to recover $21b

    NEITI urges FG to recover $21b

    The Executive Secretary, the Nigeria Extractive Industries Transparency Initiative (NEITI), Waziri Adio Tuesday called on the Federal Government to recover over $21billion unremitted fund disclosed by its independent report of the extractive industry.

    He made the call in Abuja, during an interactive session with the media, where he highlighted the policy brief, which focused on economic recovery and unremitted funds by the Nigerian National Petroleum Corporation (NNPC) and it’s upstream arm, Nigerian Petroleum Development Company (NPDC).

    According to NEITI, “findings from series of audits of the oil and gas sector carried out by the NEITI shows that NNPC and its upstream arm, NPDC, have failed to remit $21.778 billion and N316.074 billion to the Federation Account”.

    These according to the report, are amounts due from three main sources that includes: federation assets divested to NPDC and NPDC’s legacy liabilities payment for domestic crude allocation to NNPC and dividends from investment in Nigerian Liquefied Natural Gas Company (NLNG) paid to the NNPC, but NNPC has however withheld the said funds.

    These unremitted funds falls under the categories of the full payment for the 12 oil mining leases (OMLs) divested from the shell and Agip ventures. NNPC divestment of 55% of its stake in the shell JV valued at $1.8billion by the Department of Petroleum Resources (DPR).

    The audit also revealed that cash calls amounting to $552 million were erroneously paid on these divested assets by the National Petroleum Investment Management Services (NAPIMS), the investment arm of NNPC.

    The NPDC is said to have made a refund of $424 million to NAPIMS but not refunded to the federation account, the brief added that NPDC is yet to refund $148.278 million and 2.42 billion from the cash calls mistakenly paid to it.

    The brief also revealed that” unremitted revenues in this category relates to arrears of liabilities of taxes, royalties and levies. Leaving the amount owed by the NPDC at $5.531 billion and N72.435 billion.

    The brief disclosed that NNPC in its defence explained that ‘withholds DCA earnings to pay for downstream related operational costs and subsidies’, however, NEITI says there are serious doubts about such withholding as they regularly exceed actual subsidy costs.
    waziri called on the government to recover these money and use it for economic recovery and to put the economy on a sound and sustainable footing.

    He added that OMLs that have not been fully paid for, should be retrieved from the NPDC, revalued and auctioned so that the country can get proper value for the OMLs.

    The brief, in its action point, called on the federal government to investigate the status and use of NLNG dividends from 2004 to 2014 bad undertake criminal proceedings against anyone found wanting.

  • Community threatens to shut NPDC over OML 42

    After enjoying the status of “host community”of Oil Mining Lease (OML) 24, the Kunukunuma Federated Community is protesting its exclusion from the same facility by Shell Petroleum Developing Company (SPDC) in its review of host communities.
    To this end, the community has planned a protest for Friday, threatening to shut down Nigeria Petroleum Development Company Limited (NPDC) over the exclusion.
    Decrying the non-recognition of the community as a host community in the OML 42 host communities, the Chairman of the Community Association, Chief Moses Bebenimibo, frowned at the removal, at the weekend.
    According to him, Kunukunuma community has been treated as host community over the years and has been enjoying the status in terms of provision of amenities and projects executed in the community by SPDC.
    “We wish to draw the attention of Nigeria Petroleum Development Company Limited (NPDC) to the issue of our community not being recognised as a host community in the OML 42 host communities, whereas our community was among the list of host communities that was forwarded to your office,” he added.
    Bebenimibo revealed that on November 29, 2011, at a meeting held in Wellington Hotels, Effurun, Warri, Delta, the intention to sell the OML 42 was made to know to all SPDC host communities, including its handing over to a new operator; the Kunukunuma community, he said, was invited to the meeting. Besides, every time SPDC organised People’s Parliament and its open forum, Kunukunuma community as always been invited to attend such meetings.
    “When NPDC came on board and invited host communities of OML 42, Kunukunuma community was conspicuously omitted. We drew the attention of the NPDC Community Relations Officer to this anomaly, we were told that it was an error and that it will be corrected as soon as possible, but up till now nothing has been done. We wish to state very clearly that we have been a host community enjoying all host community benefits from SPDC before NPDC came on board, we don’t know why NPDC has not recognisedKunukunuma as host community in OML 42,” Bebenimibo explained.
    He regrets that since that time till now, series of letters have been written to authorities of NPDC without response. Therefore, the entire women and youths of Kunukunuma community will on Friday 10th March, 2017, protest against NPDC over exclusion of our community as host to OML 42 and we will shut down their operation until our community status as host is restored back.

  • NPDC loses N1.5tr to assets’ vandalism

    NPDC loses N1.5tr to assets’ vandalism

    The Nigerian Petroleum Development Company (NPDC) has lost N1.5 trillion to attacks on its facilities from January till date.

    NPDC is the exploration and production arm of the Nigerian National Petroleum Corporation (NNPC).

    The Group Managing Director (GMD) of NNPC, Dr Maikanti Baru, who made this known at the opening ceremony of the 2016 NNPC Security Awareness Week, lamented the rising spate of criminality in the oil and gas industry has resulted in the loss of the much needed revenue.

    He said: “At the industry level, we are all conversant with the seriousness and frequency with which national assets in form of pipelines, flow stations and others are vandalised and crude oil and white products stolen with impunity.

    Baru said from January to date, for example, “NPDC alone recorded 59 security incidents resulting in crude production shut down/deferment and revenue loss of over N1.5 trillion.”

    The NNPC GMD’s comments were unveiled in a statement endorsed by the Group General Manager, Group Public Affairs Division, Ndu Ughamadu.

    In the forum tagged; NNPC Security: A Task for All Stakeholders, Baru urged all Nigerians to do everything possible to help protect the national assets, adding that governments at various levels were doing much to fight criminality and that success can only be achieved when all stakeholders imbibe the consciousness that security was a task for everyone.

    Baru said: “At corporate level, you are all aware that the first item on my 12 Focus Areas is security. This is in recognition of the imperative that without assurances of safety, NNPC, the oil and gas industry, and indeed the country cannot achieve appreciable growth to assure citizens of decent and productive lives.”

    The GMD also used the opportunity to launch the Corporation’s Kidnap for Ransom Policy to raise staff awareness on the need to avoid actions that predispose them to being kidnapped, especially at a time like this when kidnapping for ransom has become very rampant.

    Baru charged staff to participate actively in the activities of the Security Awareness Week to imbibe ideas that could help them not only in personal security, but also in the protection of national assets.

  • ‘How NPDC lost $36m’

    ‘How NPDC lost $36m’

    A non-governmental anti-corruption group, Youth Coalition for Change (YCC), has petitioned the Group Managing Director (GMD), Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, over alleged loss of over $36 million (N11.35billion) by the National Petroleum Development Company (NPDC) through faulty procurement process.

    The group claimed it is estimated that the faulty procurement process which led to loss of not less $20,000 a day by the NDPC, would have cost the company a cumulative loss of about $36 million in the past five years.

    Its National Coordinator, Joe Odudu and National Secretary, Innocent Izoma, who signed the petition dated 10 October alleged that the abuse of the procurement process by NPDC officials has been going on since 2008 when the contract for the procurement of security patrol boats to secure oil facilities was signed.

    The petition read:“It is sad to note that one of your subsidiaries, the NPDC with a considerable number of oil assets in its portfolio, has been unable to make its mark in the petroleum sector in spite of its huge assets of several oil blocs, freely ceded to it by the Federal Government.

  • Court stops NPDC, NNPC from terminating agreement with Jide Omokore’s Atlantic Energy

    Court stops NPDC, NNPC from terminating agreement with Jide Omokore’s Atlantic Energy

    A Federal High Court in Abuja has restrained the Nigerian Petroleum Development Company Limited NPDC) and Nigerian National Petroleum Corporation (NNPC) from taking any step in terminating agreement they have with Atlantic Energy Drilling Concepts Nigeria Limited, Atlantic Energy Brass Development Limited owned by businessman, Jide Omokore, in respect of the Oil Mining Leases (OMLs) 26,30, 44 and 42 (Forcados assets) and OMLs 60, 61, 62 and 63 Brass assets.

    NPDC had abruptly terminated the agreements entered with Atlantic Energy in respect of the Oil Mining Leases (OMLs) 26,30, 44 and 42 (Forcados assets) and OMLs 60, 61, 62 and 63 Brass assets) despite the fact that the disputes were still pending before the arbitral tribunal.

    Consequent upon this, the oil firms through their lawyers, Babatunde Fagbohunlu (SAN) and R. A. Lawal-Rabana SAN approached the court to challenge the arbitrary termination of the agreement without resorting to the contractual clause of arbitration in time of dispute as clearly stated in the contract.

    In a judgment delivered by Justice Nnamdi Dimgba, he upheld the arbitration agreement contained in Article 22 of the Strategic Alliance Agreements (SAAs) entered into by the parties in the suit in respect of the Oil Mining Leases (OMLs) 26, 30, 44 and 42 (Forcados assets) and OMLs 60, 61, 62 and 63 Brass assets.

    The judge held that the SAAs  entered into the applicants and respondents in the suit are still binding on the parties.

    He consequently restrained the NPDC and NNPC from taking any step on the basis of the notices of termination dated June 2, 2016 and served on the applicants pending the inaugural sitting of the arbitral tribunal to be constituted pursuant to the provisions of Article 22 of the agreement.

    Justice Dimgba however, said the restraining order would elapse on the day of the inaugural sitting of the tribunal or precisely at a period of 60 calendar days from the day of the judgment.

    He said being an order to aide arbitration, it is to enable arbitral tribunal to seize the entire proceedings and to decide for itself if it wishes to grant any interim measures of protection or any orders at all as it is empowered to do under the Act and rules.

     The judge faulted the respondents for not keeping to terms of the SSAs which in Article 24.3 obliges them to issue 30 working days notice of remediation to the 1st applicant of which failure to remedy any identified default within which the set time will lead to the automatic termination of the agreements.

    He said but the notices given by the respondents to the applicants based on its exhibits T7 to T11 were not “30 working days” but “30 days” which are two different things

    “Although I have held that the jurisdiction on the substantive and procedural validity of the termination of the agreements resides with the arbitral tribunal and not with this court, I cannot close my eyes to the fact that even on the face of it, there are deep questions regarding the validity itself of the notices of termination on which the so-called completed act is anchored.

    “The SSAs by Article 24.3 obliges the 1st respondent to issue 30 “working” days notice of any identified default within the set time will lead to automatic termination of the agreements. But the notices that were given on the face of the exhibit T7to T11 are not 30 “working: days’ notices. I believe these to be different things. It is possible that the arbitral tribunal may take a different view, which I serious doubt.

    Indeed, it is noteworthy that while the parties in some parts of the agreement such as Article 22 used “30 days” to define some obligation, but in Article 24.3 on termination, they used “30 working days” to define the notice obligation, indicating that this was on purpose and not an accident.

    “Therefore, in my view, in the face of the above identified doubts regarding the validity if the termination (in procedural sense), if the respondents go ahead to take any steps on it as a ‘done deal’ as their attitude appears to betray, before the arbitral tribunal is  formed and has set to consider whether it should give any interim measure of the protection as the tribunal is empowered to do under Section of the Arbitration Act and Article 26 of the arbitration rules that would make nonsense of my first primary relief granted to the applicants that the arbitration agreement is binding on the parities in the instant action.”

  • Adamant militants destroy AGIP, NPDC facilities in fresh attacks

    Adamant militants destroy AGIP, NPDC facilities in fresh attacks

    A pipeline of the Nigerian Petroleum Development Company (NPDC) in Kurutie, Warri South West Local Government area of Delta State and an ENI AGIP pipeline in Bayelsa Stae were in ruins yesterday after the latest in the long list of sabotage acts by Niger Delta militants.

    The NPDC pipeline was attacked on Thursday evening and the AGIP trunk line early yesterday.

    The Niger Delta Avengers (NDA) claimed responsibility for the Bayelsa sabotage, boasting on its twitter handle: “It is AGIP’s major crude oil line in Bayelsa State.”

    The two attacks came despite the deployment of military personnel to the creeks of Warri and other parts of the Bayelsa/Delta states axis of the Niger Delta and the peace initiative of the federal government to enable dialogue with the militant groups.

    The Avengers had earlier disowned anybody or group purportedly discussing on their behalf with the Federal Government, adding, “If the Federal Government is discussing with any group they are doing that on their own.”

    They also have blown up installations of Dutch-British Shell and U.S.-based oil company Chevron, halving the country’s production to about 1.2 million barrels a day.

    Itsekiri youth leader and activist, Chief Ayirimi Emami, had faulted the quick withdrawal of troops from the waterways despite lack of firm commitment from the militant groups and vulnerability of oil assets.

    It was gathered that the Federal Government’s delegation is being led by Petroleum Resources Minister Ibe Kachikwu while a former consultant to the Delta State Government is representing the militants at the talks.

    Oil industry sources in the area are blaming the escalating attacks on the failure of the security operatives, particularly men of the Nigerian Navy, to man and secure the waterways around vital oil installations and platforms in the areas.

    Several sources told our reporter that the military operations in the region before the ceasefire by the FG had also failed to curb attacks because they were more reactional than proactive.

    The view is shared by security experts, oil workers and community leaders in the region, who lamented that military operations have mainly focused on communities rather than protection of the facilities and restricting the masterminds.

    One of the sources who spoke with our reporter from Escravos confirmed hearing a “loud bang that shook everywhere” on Thursday night.

    “We later found that it was a manifold that was bombed, and as I am talking to you now, no security operatives have visited the site of the attack. We are talking about over 12 hours ago.

    “Behind us here is a strategic NGC facility (location withheld), which is left unprotected and with easy access for anybody. These are the kind of places that the JTF and the Navy should be providing cover to, but they are not doing it.

    “When you hear that more troops were deployed to the creeks, did it stop the attacks? No, because the troops were mostly interested in going to communities in Gbaramatu, not to secure facilities.

    “As a result, while they are focusing on communities, the militants are bombing oil installations.

    “Are you not surprised that despite the advance notices the security operatives get, the attacks continue and nothing is coming out of the so-called arrests that they have been making? So where is the breakthrough?” our source queried.

    An Ijaw leader, Chief Favour Izoukumor, had earlier advised the Federal Government to invest in intelligence gathering, noting that what led to the renewed attacks had been subject of rumour and murmurs in the past.

    His words: “I believe that before anything will happen, the people would have been talking; like all those expression of annoyance and things like that. This is information that neutral persons could have gathered as information and make a genuine recommendation.

    “The country cannot always be left to situations that will leave it to suddenly shock Nigerians and the international community.

    “The reason this has continued to happen is because we do not have an effective intelligence gathering system. It is not effective enough.

    “I am using this opportunity to call on the President to invest more on the agencies responsible for intelligence gathering.

    “Once theintelligence gathered is accurate, you will always get the right information when looking for Avengers or pipeline vandals and then be able to take the appropriate steps.”

    Meanwhile, Itsekiri youth leader and activist, Chief Ayirimi Emami hinted that the Federal Government might have made a tactical blunder by withdrawing troops from the creeks before security assurance that such move would halt the attacks.

    Reacting to Thursday night’s attack, Chief Emami said the Federal Government succumbed to “cheap blackmail and propaganda by the militants who accuse the military of pillaging communities.

    “I don’t support the military molesting and maiming innocent citizens, but I think the Federal Government ought to do its job and not succumb to the cheap blackmail and propaganda that led to the withdrawal of troops from the waterways because that has led to more attacks.

    “Government should not be swayed by some individuals whose only interest is enriching themselves from the militancy and destruction of oil facilities and terrorism in the name of agitation,” he added.

  • Kidnapped oil workers regained freedom in Edo

    Kidnapped oil workers regained freedom in Edo

    Three workers of the Nigeria Petroleum Development Company who were abducted by gunmen along Benin-Akure express road near Oluku in Edo State have regained their freedom.

    Their abductors abandoned them in the bush after a combined team of policemen, local hunters and vigilante gave them a hot pursuit.

    Names of the victims could not be ascertained as at press time.

    State Police spokesman, DSP Abiodun Osifo, said policemen did not engage in a shoot-out with the kidnappers so as not to injure the victims.

    He said the victims were members of top management staff of the NPDC who were on their way for a training programme.

    DSP Osifo said the victim suffered shock but were rescued hail and healthy.

    He warned the kidnappers to leave the state or be ready to meet their waterloo.

    Edo Commissioner of Police, Mr. Chris Ezike, said adequate security would be provided for the operation of NPDC in the state.

    He spoke when he received management team of the NPDC who were in his office to show appreciation for the prompt rescue of their staff.

    Managing Director of NPDC, Abubakar Sadeeg Mai-Bornu thanked the police for the speed with which the rescue was made.

    “I am here to thank you and your team for the effort made towards the successful rescue of our colleagues, we saw them at the hospital, thank God they are hale and healthy,” MD Abubakar stated.

  • Warri communities shut NPDC operations

    There is tension between the Nigeria Petroleum Development Company (NPDC) and Ijaw host communities of Diebiri-Batan and Ajuju in Warri South West council of Delta State over a multi-million naira dredging contract and oil spill compensations.

    Youths of Ajuju shut the operations of the NNPC subsidiary over the contract and the alleged failure of the company to implement the Memorandum of Understanding. It was gathered that Diebiri could follow suit before Friday.

    At a meeting in Warri last weekend, community leaders lamented the perceived nonchalant attitude of the oil firm to the spill and the contracts to the communities.

    The aggrieved communities said NPDC awarded contracts without due process. “It is pertinent to note that NPDC as a Nigerian company, whose obligation is to respect the Local Content Act, awarded contracts without due process to their friends and associates, neglecting community-based contractors.”

    The Ajuju document, signed by Chief Favour Izoukumor and Mr Samson Oyimi, Chairman and Secretary of the community, as well as Fulani Arthur and Peter Potoki, women and youth leader, alleged that the company falsely obtained a Freedom to Operate (FTO) from the communities by claiming that local contractors were involved in the bid for the dredging work.

    “In the process to obtain FTO, NPDC representatives told us that community-based contractors were also invited for the bidding process but did not scale through. It was later discovered to be lies. The FTO therefore stands null and void.”