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Tag: PPMC

  • PPMC records N32 billion trading surplus

    The Managing Director, Pipelines and Product Marketing Company (PPMC), Mr. Umar Ajiya, has said the company has returned to profitability with a trading surplus of N32billion between January and November.

    He spoke during the visit of members of the House of Representatives Committee on Petroleum (Downstream) to the Nigerian National Petroleum Corporation (NNPC) Towers, Abuja.

    The other downstream subsidiaries that made presentations were NNPC Retail Limited, Nigerian Pipelines and Storage Company (NPSC) and NNPC Shipping.

    The PPMC chief also stated that as part of the zero-scarcity strategy, the company has over 170 million litres of petrol in stock at some NNPC depots across the country following their successful rehabilitation along with connecting pipelines to forestall dependence on private sector depots.

    A statement from the state-run oil firm, explained that the National Assembly commended the corporation on the strategies deployed so far to make petroleum products available to Nigerians throughout the end of year festivities and beyond.

    Chairman of the House Committee on Petroleum (Downstream), Hon. Joseph Akinlaja, gave the commendation during an oversight visit.

    The lawmaker expressed confidence that the elaborate measures put in place by the corporation to avert fuel supply shortage would be successful this year going by the painstaking efforts that went into the planning and execution of the zero-fuel scarcity strategy.

    “We are impressed by the presentation and we are sure there will be no war room here again because of products scarcity, you have done very well and I’m happy that Nigerians are going to travel effortlessly at this period of the year,” Akinlaja said.

    On the threat by oil marketers to ground the sector due to unpaid subsidy arrears, he appealed to the Federal Government to do everything within its powers to pay up the arrears to forestall any crisis.

    Speaking further on the need to support NNPC to sustain petroleum products supply Akinlaja said the corporation was overburdened and “because of that, when it runs into hiccups, somebody will say their operations are opaque. Let’s avoid fuel scarcity by supporting NNPC”.

    The Committee also expressed satisfaction with the improvement on the integrity of the pipelines and urged NNPC to expedite action on the remaining ones, especially those linking the Ore Depot from Benin City and to the Ibadan Depot.

    In his presentation to the Committee, Group Managing Director of NNPC, Dr. Maikanti Baru, reassured Nigerians of the corporation’s preparedness to ensure zero-scarcity of petroleum products during the upcoming festive season and beyond.

    Represented by NNPC Chief Operating Officer, Downstream, Mr. Henry Ikem Obih, he lauded the Committee for its support during the last fuel supply hiccups that occurred in the country from November 2017 to the early part of this year.

  • ‘PPMC received $205m from Duke Oil for products’

    The Petroleum Products Marketing Company (PPMC) received a total of $205.2million from Duke Oil for products traded between January 2016 and September 2017.

    PPMC Managing Director,  Umar Ajiya told House Representatives Ad-hoc Committee investigating alleged revenue leakages in the Oil and Gas sector in the period under review.

    The Deputy Manager, Public Affairs Department, Mohammed Umar, made this known in a statement yesterday.

    He said the products traded within the period, were fuel flow (Low Pour Fuel Oil) and NAPHTHA.

    He said as a fall-out of the on-going restructuring of the NNPC, it was agreed that Duke Oil be given the two products to sell on behalf of the NNPC in line with its mandate as international trading company as well as a wholly owned subsidiary of NNPC.

    ‘’The current operating model allows PPMC to pass the volumes to DUKE OIL to trade and remit to the PPMC, both the value of product invoiced it and administrative  charge,’’ the MD stressed.

    He said the arrangement was not intended to create a monopoly, but rather to empower Duke Oil to function properly, pointing that no money missing anywhere.

    Duke Oil before now, was not operating like it should as an international trading company.

    The chairman of the committee, Rep. Jarigbe Agom Jarigbe, requested for more documents to support the presentation summited to the Committee.

    Ajiya, according to the statement faulted some reports that have earlier misquoted  him on the remitted figure and the statement that Duke Oil  does not cooperate with PPMC in making their remittances, while reporting the presentation to the Committee.

    Ajiya implored the media to always check their facts before going to press to avoid misrepresentation, litigation.

  • NNPC assures of hitch-free products supply during festive period

    NNPC assures of hitch-free products supply during festive period

    As the festive periods draw near, the Nigerian National Petroleum Corporation (NNPC) has assured that it would ensure a hitch-free supply of petroleum products nationwide.

    Group Managing Director of the Corporation, Dr. Maikanti Baru, who made the commitment Tuesday during the inauguration of the Board of Directors of the Petroleum Products Marketing Company, PPMC, a subsidiary of the NNPC, charged that the Company must ensure steady supply of petroleum products even well beyond the festive periods hitherto often characterized by supply hiccups.

    “The festive season is fast approaching, a period when almost always, people expect queues to happen. If last year you had a queue-free festive season, we want this year’s to be a season where fuel station attendants will be inviting motorists to their stand for fueling”, the GMD charged.

    Baru prodded PPMC Management to re-strategized to ensure leaner operating cost that would enable it continuously add value to the NNPC Corporate entity, adding that the company was not expected to make losses.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement yesterday.

    Also speaking at the occasion, Chief Operating Officer, COO, Downstream, and alternate Chairman of the Board, Engr. Ikem Obi, declared the downstream was the face of NNPC, assuring that the country would never return to the era of products scarcity.

    On his part, the Managing Director of the Company, Engr. Umar Ajiya, thanked the GMD for his commitment and support especially the resuscitation of depots in parts of the country, which he noted had contributed immensely to the steady supply of products nationwide.

    He assured that the company would be placed on the part of profitability, adding that other petroleum products would equally be made available alongside PMS (petrol).

    The Petroleum Products Marketing Company, PPMC, is one of the three new companies that emerged from the old Pipelines and Products Marketing Company (PPMC) after the recent reorganization of the NNPC. It is mainly saddled with marketing of petroleum products.

    The other two companies are the Nigerian Pipeline and Storage Company (NPSC); and Marine Logistics. While NPSC is charged with the responsible of managing storage and distribution assets of the Corporation, Marine Logistics executes petroleum products haulage for the NNPC.

  • PPMC urges marketers to import fuel

    Oil marketers should complement the Federal Government’s efforts at improving supply of petroleum products in the country, the Petroleum Products Marketing Company (PPMC), Managing Director, Alhaji Umar Ajiya, has said.

    He said the development would help in easing fuel supply and improve economic activities in the country.

    Speaking at the opening of a mega retail outlet built by Emadeb Energy Services Limited in Lagos, he said the Nigerian National Petroleum Corporation (NNPC) should not be the sole importer of fuel, if the country wants to get over the fuel scarcity and its attendant long queqe.

    He urged members of Independent Petroleum Marketers Association (IPMAN) and Major Oil Marketers Association (MOMAN) to improve importation and supply of fuel across the country.

    He said Emadeb has diversified its operation, by operating fuel depot and building retail outlets, advising other marketers to follow do so.

    The  Group Managing Director, Emadeb Energy Services Limited, Mr Adebowale Olujimi said the firm saw a vacuum in the downstream sub-sector and quickly filled it by building mega stations to supply fuel to motorists and other users.

  • Reps angry over Conoil, Oando N7.6b debt to PPMC 

    Reps angry over Conoil, Oando N7.6b debt to PPMC 

    The House of Representatives has identified absence of defined penalties for default payment for products procured as being responsible for the huge debt owed the Pipelines and Products Marketing Company (PPMC) by oil marketers in the country.

    The lawmakers have consequently given Conoil, an indigenous oil marketing company one week to pay half of its N3.18b debt to the Petroleum Products Marketing Company (PPMC) or risk being cut off from further supply.

    Oando Plc was also asked to honour its agreement with PPMC on how to offset its N4.5b or risk being cut off supplies as well.

    The lawmakers said contract terms on lifting of products between the marketers and PPMC would be reviewed to include penalties for payment default by marketers.

    The lawmakers said lack of penalties for default payment was responsible for the huge debts owed PPMC by the oil marketers.

    The Mahmud  Gaya-led ad hoc Committee mandated to investigate  debts owed PPMC by oil marketers Wednesday condemned the major oil marketers for holding up public funds for the benefit of their own companies.

    At the continuation of the investigative hearing Wednesday, the Committee condemned some of the marketers for deliberate and continuous breach of 15-day credit line for lifted products.

    According to the Committee, lack of well-defined terms on payment default was being manipulated by the marketers whereby Conoil and some others would default and escape with no penalties.

    “Because there is no well spelt terms on penalties for default, we found out that Conoil was last penalised for default in 2012, for instance.

    “We discover that a revolving credit facilities given to Conoil allowed it to owe with credit line for two weeks but it has defaulted for over two months since the end of December 2017. Yet, it continues to lift products from PPMC.

    “Is it fair to owe such a huge amount of Nigerian money? The country cannot move forward when this is happening. It is not impossible that they deliberately divert the money to other businesses since they know there is no penalty,” Gaya said.

     

  • Court fixes March 14 for hearing on ex-NNPC workers’ suit

    The National Industrial Court, Abuja, has adjourned hearing in the case of Momodu Mohammed, and six other disengaged workers of the Nigeria National Petroleum Corporation (NNPC) till March 14.

    Other claimants are – Umar Danladi, Mohammed Abdul,Maria Hassan, Ibrahim Garba, and T.Verderpuye.

    The aggrieved workers also joined Pipelines and Products Marketing Company Limited (PPMC) in the suit.

    The workers, who were temporary staff of the PPMC Gombe Area Office, had filed a suit against the company over alleged unlawful termination of their services from the corporation.

    The workers alleged that they were laid off without notice from PPMC in 2004.

    At the resumed hearing, the case could not go on, because the claimants had no counsel to represent them in court.

    The presiding judge, Justice Edith Agbakoba, adjourned the suit to March 14 to enable the claimants get legal representation.

    NAN

     

  • PPMC, operators mull roadmap for LPG sector

    PPMC, operators mull roadmap for LPG sector

    • Presidency wades into scarcity

    The Products and Pipeline Marketing Com-pany (PPMC), an arm of the Nigerian National Petroleum Corporation (NNPC), is planning a roadmap for the liquefied petroleum gas (LPG) sub-sector of the oil industry.

    The document, which is being reviewed at the PPMC and the Petroleum Resources Ministry, experts, would provide a solution to the problems of the sector.

    The Supply and Distribution, PPMC’s Executive Director, Austin Ezeala, who represented the Managing Director, Alhaji Farouk Ahmed, at the inauguration of the Nigerian Association of LPG Marketers (NALPGAM) House in Ikeja, Lagos, told The Nation that  progress had been made on the document, adding that it would get soon presidential nod.

    Ezeala said: “What we are doing in-house in PPMC is working with the Nigerian LPG club, comprising all the LPG operators in the country to develop a roadmap which we will present to the Federal Government.

    “We are waiting for the Minister of State for Petroleum Resources, Dr Ibe Kachikwu to review it. What we are basically saying is that we have looked at the entire operations, from the constraints to the butanisation plants to get it right to the people. We have looked at what these people require to do their business, looked at the kind of jobs it will create and the effects it will have in the economy.

    “So, we have developed a roadmap and if the government is supportive of what we have done, and makes some changes, we will present it to the government. When we get presidential approval, we will immediately implement it, adding that with the implementation of the raodmap, Nigerians will see a totally new LPG business in the country.

    “Hopefully by the next quarter, the roadmap is something we will have to go publicly with. Right now, it is receiving reviews in-house, after that, the Minister will present it to the Federal Government and get a buy-in.”

    Meanwhile, the Presidency has waded into the scarcity of the household cooking fuel.

    Sources said a high-powered team has been constituted by Vice President  Yemi Osinbajo to address the issues surrounding the scarcity of the product that has led to the price of 12.5kg price rising from between N2,500 and N3000 to N4000.

    ‘’The Vice President, Prof Yemi Osinbajo has constituted a team that would work assiduously with stakeholders in the sub-sector, to remove hitches in the supply of LPG in the country,” the source told The Nation at the weekend.

    On the challenges faced by vessels bringing in cargoes due to jetties constraints, Ezeala said the constraints result in diversion of vessels to private jetties from PPMC jetties.

    “When LPG is diverted to such private jetties, it creates room for monopoly and a window for the jetty operator to determine price. This situation is what the ‘cabals’ took advantage of, among other issues to hike the price of cooking gas.

    “We are looking at improving our efficiency in terms of berthing of vessels at the jetties. I am working with the leadership of NALPGAM and I think in the next few days, you will see a reversal in our operation. Most of the jetties are over 40 years old; when they were built, obviously this wasn’t what was expected, but right now we are trying to improve the efficiency.

    “But at this stage all the products – aviation fuel, petrol, diesel and cooking gas will berth there. At this stage, we are trying to work with partners to ensure we can sequence vessels a bit better to use the facilities we equally have, and I think if we use it efficiently, we will still be able to make progress until we will be able to build additional jetties. But currently, the jetties are 40 years old so they are definitely constrained and we are working with all the stakeholders to effectively use those jetties;” he said.

     

  • NNPC, PPMC, NAPIMS owe NIMASA $3.78b

    The Nigerian National Petroleum Corporation (NNPC),  the Pipeline Products Marketing Company (PPMC) and the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC are jointly owing the Nigerian Maritime Administration and Safety Agency (NIMASA)  $3.78 billion, the House of Representatives has said.

    House Committee on Maritime Safety, Education and Administration disclosed this yesterday during a one-day investigative public hearing on  revenue leakages and operational deficiencies in NIMASA.

    Meanwhile, the Reps committee has vowed to unveil owners of over 5300 defaulting companies, who it accused of depriving the country of the much needed revenue.

    The Chairman of the Committee, Hon. Mohammed Umaru Bago said while the NNPC and PPMC are jointly owing NIMASA  $3 billion, NAPIMS is owing the agency $780 million out of the alleged $10 billion owed the agency.

    The debts are defaults on sundry charges and levies meant to be paid to NIMASA over a 10- year period.

    NIMASA’s Director-General,Dakuku Peterside, while speaking before the committee gave reasons for the huge debt owed the agency.

    According to him, the defaults on the three per cent levy on gross freight earning on in and outbound cargo “ is due to double billing, disclaimed and disputed bills and actual debt.”

    He said no debts was supposed to have incurred on the two perc ent surcharge payment on contract sum on cabotage operating vessel. “ The debt under the ship- to- ship ( STS) is a deliberate attempt by companies not to pay non-remittance by international oil companies to the agency.”

    On the actual total figure owed the agency, Peterside declined to mention a figure saying he would not want to give an offhand answer, but one based on realistic calculations, which he would send to the committee.

    The Minister of Transport, Rotimi Amaechi was represented by the Permanent Secretary of the Ministry, S. Zakari.

    Zakari said the negative and reckless image of NIMASA under the last administration disturbed the Federal Government .

    He said: “Mr. chairman, the negative image of the agency consequent upon its actions, the present administration was disturbed that necessary measures were put in place to amongst others, verify the petitions and allegations of unwholesome reckless management of financial and human resources in the agency.

    “In this regard, the first step by the Federal Government was the removal of the Director-General of the agency and to cary out full investigation into all operations of NIMASA.

    “The president has since appointed a new Director-General for the agency, with a clear mandate to reposition, restructure and reform the agency.

    “Furthermore, and arising from investigations which are ongoing, a number of the agency’s top management and senior staff are either facing trial or are being investigated by relevant agencies..

    “It is also noteworthy that Mr, President has since approved performance audit of the whole maritime agencies. This will holistically address most of these issues and help to block most of the leakages.”

     

  • ‘We ‘ve paid N2.5b to PPMC without fuel’

    ‘We ‘ve paid N2.5b to PPMC without fuel’

    About 30  million litres  of fuel are yet to be supplied to marketers by the Pipelines and Product Marketing Company (PPMC) three months after the payment of N2.5billion, the Independent Petroleum Marketers Association of Nigeria (IPMAN), has said.

    Speaking yesterday  in Lagos during a protest organised to press home their demand for the release of the product the marketers, who operate under the aegis of Concerned IPMAN Members Capital Oil Depot Lagos, lamented that they paid and received  tickets to load fuel from PPMC since three months ago.

    Its spokesman, Chigozie Nwozuzu, said the  marketers have 7,000 tickets to load fuel from Capital Oil Limited, Apapa.

    He said: ‘’A truck contains 40,000, 45,000, 60,000 litres of fuel, depending on its capacity. We have brought hundred of trucks from different parts of the country in order to load fuel at Capital Oil office.  Unfortunately, we (marketers) have not been load to fuel.

    ”The marketer’s have 7,000 tickets with them, and if it multiplied  by 45 litres of fuel and 76.5 per cent money that is accrued to the Federal Government, the money, which the marketers have paid for unrecovered fuel is about N2.5 billion.”

  • PPMC takes extra measures to quell current fuel scarcity

     

    In response to the current fuel scarcity situation, the management of Pipelines and Product Marketing Company (PPMC) in line with the honourable minister of state for petroleum, Dr. Ibe Kachikwu’s effort  to provide an effective intervention, has flooded Abuja with 31 high capacity trucks; each with approximately 60,000 litres. Another 25 is expected tomorrow.

     

    The 31intervention trucks that have arrived the city of Abuja have been deployed to areas of need. This is made possible by reason of the partnership between NNPC Retail and Capital Oil and Gas. In addition, 150 trucks have been provided by A. A. Rano, Azman, and Rahamaniyya.

     

    According to the MD, PPMC, Mrs. Esther Nnamdi-Ogbue, these interventionist efforts will continue until the queues dissipate.

     

    Furthermore, despite not being a regulator, PPMC has made an extra effort to curb the effect of the fuel crisis on the general public by deploying staff to petrol stations across Abuja for round-the-clock monitoring.

     

    It is believed that with these measures, normalcy will return to Abuja and its environs in no time. Motorists are therefore advised for the umpteenth time not to engage in panic buying as this will encourage the activities of hoarders. They are also advised to be vigilant and to report any observed sharp practices and other identified areas of need.

     

    We have obtained PPMC’s Twitter and Facebook accounts for citizens’ reportage and eye witness accounts as follows: @ppmc_ngr, www.ppmc_ngr/facebook.com.