The Nation Newspaper

Tag: Petroleum resources

  • ‘Separate Petroleum ministry from Presidency’

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Muhammadu Buhari to separate the Ministry of Petroleum Resources from the Presidency to make it efficient.

    It urged the incoming federal lawmakers to ensure that they pass the Petroleum Industry Bill (PIB) as soon as possible.

    PENGASSAN President Francis Olabode spoke after the union’s National Executive Council (NEC) meeting in Lagos.

    Briefing reporters, he said Buhari should ensure that the Petroleum Ministry was separated in his second term.

    “The office of the President is too big to add Petroleum Ministry to it. There are a lot of things to be done to make Nigeria independent in refining our products rather than relying on imports,” he said.

    On the Petroleum Industry Bill (PIB), Olabode lamented that it had suffered delays over the years.

    He said: “This bill, which started as the Oil and Gas Sector Reform Implementation Committee report, has been on for 18 years since April 2000. It has gone through various stages with the Petroleum Industry Governance Bill at the forefront.

    “We call on the government (both the executive and legislative arms) to ensure that this bill is passed as soon as they settle down in order to have investors’ confidence in our industry.”

    He said the bill was being stalled by multinationals who believe that it would unfavourable to them.

    Olabode expressed concern over casualisation, contract staffing and outsourcing in the oil and gas industry, saying: “We will continue to engage various stakeholders in ensuring that this menace is adequately resolved in the larger interest of our members

    He stated that to cut cost, most companies, especially the indigenous ones, had resorted to underhand tactics in labour-management relations.

    “Some of these include prevention of members from unionising, disrespect for signed collective bargaining agreements and intimidation and victimisation of labour union and members,” he said.

    He however commended the Nigerian National Petroleum Corporation (NNPC) in ensuring  adequate supply of the Premium Motor Spirit (petrol).

    He said: “We call on the government to intensify efforts at increasing local refining and remove all encumbrances to the full rehabilitation of all the refineries.

    Olabode commended the Federal Government in it fight against corruption, adding that it should cover all sectors.

    His word: “We believe that the fight against corruption should not be allowed to shrink but rather sustained to cover all sectors and maintain the gains under this dispensation.

    “We advise that reports of probes instituted by the two chambers of the National Assembly and other agencies of government should not be shoved aside but dusted, and those indicted prosecuted.

    “The government should make all effort to see that all recovered looted funds should be accounted for and re-invested into the economy to reduce unemployment.”

    Olabode called on the government to optimise productivity and economic growth.

    “I want to assure you that all industrial issues with utmost seriousness that the elections are over and all recalcitrant companies who think they are above Nigerian laws should brace up for a rude awakening, as the association will explore all possible means to ensure no organisation undermines any provisions of the country’s laws,” he said.

     

  • Buhari directs release of fund for Ogoni clean up

    …FG to get blue print on Niger Delta development 

     

    President Muhammadu Buhari has directed that the Nigerian National Petroleum Corporation (NNPC) and oil companies release fund within a very short period for the clean-up of Ogoni community.

    The Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachukwu made this disclosure Wednesday in the first part of an 8-Part Series Podcast that focuses on the Niger Delta and security. 

    He insisted that the president is committed to the success of the Ogoni clean up, noting that his ministry was working with the Ministry of Environment to continue the exercise. 

    His words: “The president is completely committed to the success of this. And we are working with the Ministry of Environment to continue the Ogoni clean up. The President has just directed that funds necessary for this must be released within a very short period of time so that this Ogoni clean up can actually move from the drawing board to actual practical reality. In fact, both the oil companies and NNPC to fund this sufficiently for us to move forward.”

    The minister added that the ministry has commenced a Programme to engage Ogoni in order to secure the community buy-in and participation when there is any problem. 

    The plan to make communities have faith in the government, according to him, is not restricted to Ogoni.

    Read Also:‘Ogoni people’ll never allow resumption of oil production, without broad discussion’

    Continuing, Kachikwu said that government is currently working on a framework for a community based participation in oil and gas pipelines and oil and gas assets. 

    Following the realization from inter-agencies researches that challenges were still lingering in the Niger Delta even as over $40billion had been spent in the region in 15 years, the ministry is working with the Office of the Vice President, the Ministry of Niger Delta, Niger Delta Development Commission and the corporation to do more of capacity building and economic empowerment, he said. 

    He said that from the reports, the ministry has seen the past expenditure and what is still available in the states of the region. 

    The minister said that he has set up technical committees in Edo, Delta and Imo States that are working with the governors as the chairmen to look at the volume of oil available and produced in the states, the opportunities, economic empowerment and the burning issues in the states.

    The committee, which has oil companies, the ministry and government agencies as members according to him, will also carry out the assessment in other oil producing states in order to develop a blueprint for engagement and intervention in the region. 

    He said that “If we succeed in doing that, for the first time, what we are going to have is a complete blueprint, complete local engagement, complete intervention and supervision of the Niger Delta Development module. And that is something that can be sustained for posterity.”

    The minister said that the ministry has approved the establishment of 10 modular refineries out of which two have begun construction. Kachikwu said that the two that sited in Kwale, Delta State and Ogbere , Rivers State will start yielding results within one year. 

  • Osinbajo tasks Judiciary on prompt determination of cases

    Osinbajo tasks Judiciary on prompt determination of cases

    The Acting President, Professor Yemi Osibanjo (SAN) has challenged the Judiciary to evolve ways of ensuring prompt determination of cases by courts in the country.

    He regretted the current practice where it takes years to determine simple cases, a development, he said, accounts for the “crawling” judicial process in the country.

    Osibanjo spoke in Abuja Monday at the opening session of the 3rd annual judges workshop on petroleum, gas and power sectors, held the National Judicial Institute (NJI).

    Represented by the Minister of State, Petroleum Resources, Ibe Kachikwu, Osinbajo noted that the pace at which cases were determined in the nation’s courts was a disincentive to investors.

    He said: “We need to evolve measures that will speed up the judicial decisions. We also need these decisions not to be too complicated for investors to easily understand

    “We need to ensure sanctity of international arbitration. Also, judges should be trained in petroleum and energy sector so that they would to be fully equipped to handle the emerging trends in the sectors.

    “if the country is not positioned to supply the necessary power supply, which is essential for driving the economy, the country will not make much progress,” Osinbajo said.

    The Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, who declared the event opened, urged judges not to allow technicalities to stand in the way of justice.

    He said the workshop was to enhance judges’ knowledge on issues relating power and petroleum sectors.

    He urged judges to desist from taking cases arising from contract breach where parties to the contract failed to first explore the arbitration clause enshrined in such contract.

    He said: “It has come to my notice that some courts assume jurisdiction in matters of breach of contract arising from contracts with arbitration cases.

    “It goes without saying that no investor, whether domestic or international would want his investment tied down in seemingly endless litigation, especially where there is an arbitration clause in the contract.

    “In such cases the use of arbitration must be employed. The courts must insist on enforcement of the arbitration clause by declining jurisdiction and award substantial costs against parties engaged in the practice.

    “May I draw the attention of heads of courts that the time saving nature of an arbitration proceeding encourages heightened commercial and economic activities as well as foreign investment and therefore needs the support and encouragement of the judiciary,” Onnoghen said.

    He argued that incidents of conflicting judgments by trial courts cannot be eliminated.

    Onnoghen said: “Conflicting decisions unfortunately, are necessary, because when you approach a court in Lagos, your facts are stated and the facts of that case are also different in a court in Port Harcourt.

    “So, the judge takes a decision based on the facts before him and the law, and that is why we have the Court of Appeal who will look at the law and decide,” the CJN said.

     

  • Kachikwu continues engagement on investment with US

    Kachikwu continues engagement on investment with US

    As part of the just concluded international visit of the  Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu to the United States of America, where he led Nigeria’s delegation to the Offshore Technology Conference (OTC) in Houston Texas, the Honourable Minister of State held a meeting with a delegation of the United States Departments of State and Energy at the United States Department of State in Washington D.C.

    The meeting had in attendance Ambassador Mary Bruce Warlick, Acting Special Envoy and Coordinator for International Energy Affairs at the Department of State who led the United States discussions during the meeting which was grouped into two sessions the reform session and investment session respectively.

    The ministry’s Director of Press, Mr. Idang Alibi made this known in a statement on Wednesday.

    According to the statement, the Acting Special Envoy and Coordinator for International Energy Affairs stated that Nigeria remains a critical priority for the US in Africa and bilateral relations, which are increasingly rooted in the shared values of both nations are delivering results. She further commended Nigeria on the significant steps taken in the Oil and Gas Industry reforms especially in the area of shared insights gained by the US team from reviewing the National Oil policy, The National Gas policy, The Fiscal policy and the draft of the Petroleum Industry Governance Bill and Petroleum Industry Fiscal Bill developed by the Ministry of Petroleum Resources.

    The Minister of State while responding to the comments and feedback given by the Acting Special Envoy and Coordinator for International Energy said the Federal Government of Nigeria under the leadership of President Buhari has clearly set out the choices that have to be made as nation over the next 4 years and have also taken significant steps in achieving this through the continuous implementation of the 7BigWins – the Nigerian Petroleum roadmap; which focuses on stabilizing the business environment, enshrining openness and transparency, developing and entrenching new policies and regulations.

    He also hinted on the launch of a pet project – “Project 100” which is aimed at maximizing and unleashing talents by identifying 100 Nigerians who have access to finding and are willing to make a change in the industry and collaborating with them to find solutions to the industry’s problems with a view to set Nigeria on the path of glory.

    Kachikwu further reiterated the positive impact that the ongoing engagement in the Niger Delta and the Oil Producing States led by the Acting President; His Excellency Prof. Yemi Osinbajo is yielding results as evidenced by the near zero militant incidences and normalcy in production activity being restored in the region. A comprehensive and holistic developmental framework encompassing all Government Agencies and stakeholders, targeted directly at addressing gaps in the communities is being deployed with the 20-point Agenda that outlines the Roadmap to closure for militancy in the Nigerian Oil and Gas sector.

    He also harped on the need to work together with the US to sustain progress on reforms and match it with increased international investments in Nigeria’s Oil and Gas sector. Other areas of collaboration the Honorable Minister of States urged the US to invest in include capacity building, and acquisition of technology.

    As part of the discussions during the roundtable, Ambassador Warlick informed the Minister of State, that a team of Nigerian Senators would be meeting the US team on Friday May 5, 2017 to discuss progress on legislations relating to the Nigeria Oil and Gas industry. The honourable Minister responded to the visit of the Senators by stating that there has been a very high level of collaboration between the Executive and the Legislature in the passage of bills before the National Assembly and also cooperation in proffering far-reaching solutions that will grow Nigeria’s Oil and Gas sector.

    While discussing issues relating to gas strategy implementation and plans during the roundtable, Ibe Kachikwu said that Nigeria’s gas vision is to be an attractive gas-based industrial nation, giving primary attention to meeting local gas demand requirements, and developing a significant presence in international markets. He explained that the core principles behind the gas industrialisation agenda include separation of activities between the government and private sector, implementing full legal separation of the upstream from the midstream, pursuing a project-based rather than centrally-planned domestic gas development approach and establishing strong linkages with electric power, agriculture and other real sectors.

    He further clarified that for Nigeria to successfully attract investments and achieve an aspiration of zero routine gas flaring by 2020, the Federal Government developed a transparent licensing process for allocating and pricing gas flares, improving access to finance for gas flare monetization projects, providing incentives to investors, and strengthening the capacity of government regulatory agencies to monitor implementation of flare down projects. Another important gas initiative in the country is the provision of LPG for domestic use and CNG as a transportation fuel.

  • Reps wade into Shell’s planned relocation from Rivers

    Reps wade into Shell’s planned relocation from Rivers

    The Speaker, House of Representatives, Yakubu Dogara on Thursday called for a thorough investigation into the planned relocation of the head office of  Shell Petroleum Development Company (SPDC) from Rivers State.

    The speaker said this when he inaugurated an Ad-hoc committee mandated to investigate the planned relocation of the company.

    Represented by the Deputy Majority Whip of the House,  Pally Iriase (Edo-APC), Dogara said that improved relationship between the Federal Government and the Niger Delta region was crucial in addressing some economic challenges confronting the country.

    “This is because the Niger Delta region sits atop oil wells where much of our revenue as a nation is derived from.

    “Relocation by the SPDC is said to be based on security concerns today. This has generated outcry and agitation by the people and if we as a House do not address it, it may escalate and result to violence and insecurity,’’ Dogara said.

    The Speaker added that the onus lied on the Federal Government and the house to ensure that justice on Niger Delta region was not denied.

    He, therefore, urged the committee to come up with a report that will be fair and forestall any crisis in the Niger Delta region.

    In his welcome address, the Chairman of the Ad-hoc Committee, Rep Ishiaka Ibrahim, (Ogun-APC) said that the committee would meet with all the relevant stakeholders to address the matter.

    He said the committee would be fair to all sides.

    “We shall engage all relevant stakeholders in order to come up with report and recommendation that would stand the test of time.

    “We shall also consider all factors surrounding the conception of the decision of the SPDC’s planned relocation from Port Harcourt,’’ Ibrahim said.

    It would be recalled that the House on January 26, adopted a motion sponsored by Rep. Kingsley Chinda (Rivers-PDP), to set up an ad-hoc committee to prevail on Shell’s planned relocation from Port Harcourt.

    Chinda expressed concern that several youths were already protesting the planned relocation which will further escalate militant activities in the region.

    The youth restiveness, Chinda said, would affect the Nigerian economy that was already experiencing recession due to low crude oil output.

    The House, therefore, called on the Minister of State, Petroleum Resources, Ibe Kachikwu and the National Petroleum Investment Management Services (NPIMS) and Shell to suspend the planned relocation and allow it to intervene.

  • Buhari inaugurates boards of NNPC, NCDMB,  NNRA

    Buhari inaugurates boards of NNPC, NCDMB,  NNRA

    President Muhammadu Buhari on Friday challenged members of the newly inaugurated boards in the Ministry of Petroleum Resources to ensure decency and transparency in the management of the nation’s oil industry.

    The inaugurated boards included the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Nuclear Regulatory Authority (NNRA).

    Buhari specifically tasked the new boards to ensure that they devise practical strategies aimed at tackling current challenges within the oil industry.

    He said the boards, which would be chaired by the Minister of State, Petroleum Resources, Dr Emmanuel Ibe Kachikwu, should advise the minister and the corporations’ management on the most effective ways for Nigeria to get value for money from its assets.

    “Oil and gas are the country’s foreign exchange earners. Therefore, the importance of these boards cannot be over emphasised. Your job should be to ensure propriety in management of these most vital national institutions

    “You should advise the Minister and the Corporations’ management on the most effective way for Nigeria to get value for money from our assets.

    “My expectations from the members of the boards is for them to ensure that NNPC charts a way to face current economic challenges.

    “This will involve a careful look at the ongoing reforms designed to steer the corporation to achieve better performance and efficiency,’’ he said.

    Buhari further stressed the need for the new NNPC board to come up with innovative ways of addressing the constraints in funding Joint Venture projects between the corporation and international oil companies as well as other investment issues.

    According to him, his administration has introduced transparency in the management of the country’s oil industry through the monthly publishing of operational and financial reports of the NNPC.

    The President expressed optimism that with the members’ experience and knowledge, the country’s aspiration in the oil industry would be achieved within a reasonable time frame.

    Responding, the Chairman of the inaugurated boards, Kachikwu assured that they would ensure transparency and accountability in running the affairs of the boards.

  • Kachikwu to petroleum agencies: Develop self-funding mechanism

    Kachikwu to petroleum agencies: Develop self-funding mechanism

    The Minister of State, Petroleum Resources, Dr Ibe Kachikwu, has urged parastatal agencies under the ministry to develop a roadmap for  self-funding of their activities within the next three to  four years.

    A statement by Head of Press, Petroleum Technology Development Fund (PTDF) Kalu Otisi  in Abuja on Tuesday, stated that Kachikwu gave the charge while inspecting PTDF’s upgraded projects in PTI  Effurum Delta-State.

    “The Federal Government is not going to continue to be sending you yearly disbursements in perpetuity.

    “It’s never going to work, so a major challenge is to identify those areas where you will have a big commercial nexus both for the upstream and downstream sectors of the industry.”

    According to the statement, facilities inspected by the minister included an ultra-modern laboratory complex, a one- stop laboratory for research and training in diverse areas of onshore and offshore operations.

    Other projects are facilities for exploration, drilling and production provided by PTDF, a demonstration training land rig with flow station rehabilitated and made functional by PTDF and the latest drilling simulators, welding and mechanical workshops.

    Kachikwu, accompanied by some senior officials of the ministry including the new Executive Secretary of PTDF, Dr. Bello Aliyu Gusau, commended the Fund for the rigorous implementation of its capacity building programmes.

    “I am very impressed with what they have done. It’s actually one of the agencies that you don’t need to do an audit to see where their resources are being utilised.

    “I have been to some of the projects done by PTDF; I was in the University of Nigeria Nsukka,

    “I was in Ahmadu Bello University Zaria, and some other places where they have been able to make a huge difference; I am extremely impressed with the work that they have done in PTI too.”

    He urged the Principal of the Petroleum Training Institute, Prof. Sunny Iyuke, to adopt a maintenance re-orientation for the training institute.

    He said this would attract the kind of scholarship that would help to increase the revenue generation profile of the Institution

    The PTDF is mandated by law to build capacities and capabilities in Nigeria’s oil and gas industry through the development of human capacities

    It also ensures institutional capacity development and the promotion of research and acquisition of relevant technologies.

  • How Nigerians feel about fuel scarcity


    [news_box style="2" display="tag" link_target="_blank" tag="Fuel Scarcity, Fuel, Scarcity" count="6" show_more="on" show_more_type="link"]