Address Pipeline Vandalism, Crude Oil Theft, PENGASSAN Tells NNPC Boss, Kyari

Pipeline Security: NUPENG Recommends Re-engagement of Ex-Militants


The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has asked Mr Mele Kyari to address challenges associated with pipeline vandalism, crude oil theft and inadequate infrastructure.

Mr Kyari replaced Dr Maikanti Baru as the 19th Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) on Monday.

The Association in a congratulatory massage signed by its General Secretary, Lumumba. I. Okugbawa, described Mr. Kyari’s appointment as well-deserved and a recognition of his 27 years contributions and did not come as a surprise to the Association.

“Your appointment did not come to our Association as a surprise, because it is a testament to your hard work, dedication to duty and exemplary leadership quality.

”GMD Sir, we agree that the Nation’s oil and gas industry is on a steady progression to the next level. However, the challenges associated with pipeline vandalism, crude oil theft, inadequate infrastructure, pricing uncertainties, and the obsolete Refineries as well as the contentious fuel subsidy issues and resting of the Petroleum Industry Bill (PIB) are issues the Nigerian masses expect the new NNPC Board to champion.”

The association also commended the recent-past GMD Dr Maikanti Baru for his contributions to the growth of the industry said that history will remember him for his good works that brought stability to the industry in terms of Industrial Relations management and free flow of refined products.

PPPRA Says No Plan To Increase Petrol Price

PPPRA Says No Plan To Increase Petrol PriceThe Petroleum Products Pricing Regulatory Agency (PPPRA) has reaffirmed that the Federal Government has no plan to increase the price of Premium Motor Spirit (PMS), also known as petrol.

The General Manager Operations of PPPRA, Mr Olasupo Agbaje, made the declaration on Monday while addressing reporters in Abuja, Nigeria’s capital.

Mr Agbaje said the agency has also commenced the payment of the new bridging allowance to tanker drivers, as approved by the government recently.

The clarification comes barely a week after the Nigerian National Petroleum Corporation (NNPC) said it has no plan to increase the pump price of petrol.

The Corporation, in a statement, stated that the recent increase in bridging allowance to transporters will not affect the prevailing petrol price of 145 Naira per litre.

The NNPC reiterated its commitment to sustaining the existing cordial relationship between the Corporation and the leadership of the downstream industry unions and other stakeholders.

NNPC Says No Hike In Petrol Pump Price

NNPC Says No Hike In Petrol Pump PriceThe Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that it has no plan to increase the pump price of Premium Motor Spirit (PMS), also known as petrol.

In a statement issued on Wednesday by the NNPC spokesman, Ndu Ughamadu, the Corporation explained that the recent increase in bridging allowance to transporters from 6.20 Naira to 7.20 Naira per litre will not affect the prevailing petrol price of 145 Naira per litre.

According to the statement, the clarification was made in Abuja by the NNPC Chief Operating Officer (COO) in charge of Downstream Operations, Mr Henry Ikem Obih.

“Rebalancing Of The Margins”

Mr Obih said there was no plan by government or any of its agencies to review the pump price of petrol above 145 Naira per litre, adding that the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from Four Naira to Three Naira per litre, and the difference transferred to compensate for the cost of bridging within the same template.

The bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country, while lightering expenses involve charges for moving products to depot area from mother vessels by light vessels, due to the inability of the former to berth in shallow water depth.

“What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So what the Petroleum Products Pricing Regulatory Agency (PPPRA) did was to take One Naira from lightering expenses and add same to the bridging allowance, that is how we arrived at 7.20 Naira. Therefore, PMS remains at the ceiling of 145 Naira per litre, he said.

“No Risk Of Shortage”

On the availability of product supply, the COO said as at Wednesday, Nigeria has 1.3 billion litres of petrol which translates to an inventory of 36 days.

“What this means is that even if we stop importation or refining of petrol right now, we have enough products in the country to provide for the needs of every Nigerian for a period of 36 days,” he said.

Obih noted that the supply availability was bolstered with the production of petrol from the three refineries located in Port Harcourt, Warri and Kaduna.

“There is absolutely no risk of shortage in supply as we also continue to import, to support the production from the refineries. We have informed the Department of Petroleum Resources (DPR) to enforce the prevailing 145 Naira per litre price regime, and to also ensure that every service station that has fuel is selling to the public,” he said.

The COO reiterated the readiness of the NNPC management under the leadership of its Group Managing Director, Dr. Maikanti Baru, to sustain the existing cordial relationship between the Corporation and the leadership of the downstream industry unions and other stakeholders.

He said the DPR, which is the regulatory arm of the industry, had been alerted to sanction fuel station owners who engage in hoarding, or charge consumers in excess of the approved pump price of petrol.

Dr. Baru had announced the review of the bridging allowance on Monday at a mediation meeting between the Petroleum Tanker Drivers (PTD) and the Nigerian Association of Road Transport Owners (NARTO),

The announcement consequently led to the suspension of an industrial action embarked upon by members of the National Union of Petroleum and Natural Gas Workers (NUPENG).

50 Companies Bid For NNPC’s Boat Supply Term Contract

50 Companies Bid For NNPC's Boat Supply Term ContractFifty companies have submitted bids to partake in the provision of seaworthy tugboats on charter time basis for the maritime operational requirements of the Nigerian National Petroleum Corporation (NNPC) in Lagos, Warri and Port Harcourt.

A statement by the NNPC spokesman, Mr Ndu Ughamadu, said on Sunday that “successful companies would be engaged on a two-year term contract in the first instance with an option of renewal for a further one year.

“Winners are expected to provide services which include: aiding the berth and un-berth of all ships operating at the NNPC jetties/buoy, logistics support for safe ship-to-ship operations which covers movement of fenders, horses, documents, rigging and unrigging of fenders among others”.

Speaking at the public bid opening event, the NNPC Group General Manager, Supply Chain Management, Mr Shehu Liman, said the management of the corporation, under the watch of Dr. Maikanti Baru, was determined to instill and sustain the values of transparency, accountability and integrity in the procurement process.

He noted that apart from providing a level playing space for all stakeholders, the public bid exercise was in conformity with existing Federal Government’s legislation on procurement, which was also in tune with the NNPC standing regulations on procurement to ensure transparency and fairness.

The bid covered services such as “stand-by and positioning vessels at the Single Point Mooring (SPM) buoy among other marine services”.

The event was declared open by the NNPC Group General Manager, Marine Logistics Division, Mr Dalhatu Makama.

Mr Makama explained that the essence of the bid process was to ensure that companies with the requisite experience in maritime operations were given the opportunity to compete for the available service in a fair and transparent manner.

The event, which was held at the Abuja Corporate Headquarters of the corporation, had in attendance representatives of the bidding companies, with officials of the Bureau of Public Procurement (BPP), Department of Petroleum Resources (DPR), Nigerian Extractive Industries Transparency Initiative (NEITI), Nigerian Content Development and Monitoring Board (NCDMB) and some members of the civil society as observers.

NNPC Adopts Strategies To Enhance Productivity

Maikanti Baru, NNPCThe Nigerian National Petroleum Corporation (NNPC) says it has adopted strategies to ensure operational profitability through the renegotiation of all existing contracts.

A statement issued by the corporation disclosed that the contract renegotiation has in gains of between 5% and 30% discounts so far.

The Group Managing Director of NNPC, Dr. Maikanti Baru, expressed delight in the completion of negotiations with NNPC joint venture partners towards the resolution of cash call funding challenges through payments of arrears owed the partners.

Dr. Baru explained that the feat was achieved by developing a clear payment plan as well as the pursuit of an alternative funding strategy.

He noted that arrears of up to December 2015 have been fully reconciled, with repayments plan also agreed upon.

NNPC Fears Current Crude Oil Production Decline Could Cripple Sector

Maikanti-BaruThe Nigerian National Petroleum Corporation (NNPC) has expressed concern over the nation’s declining crude oil production level, saying it will have grave consequences on the oil and gas sector. 

The Group Managing Director of the NNPC, Dr. Maikanti Baru, said the decline could also have consequences on the environment and revenue.

Speaking at a one-day meeting with stakeholders in the oil and gas sector, Dr. Baru stressed that if the current situation was left unchecked, it could cripple the NNPC and the nation’s oil and gas sector.

He blamed the decline in production on activities of vandals and militants in the Niger Delta.

The NNPC boss further asked the government and security agencies to engage the various host communities to develop a partnership framework to find a lasting solution to the present unrest.

There have been several attacks on oil installations in the Niger Delta this year, as militant activities resurge.

A group that calls itself the Niger Delta Avengers has claimed responsibility for most of the attacks.

The group recently said it has agreed to a ceasefire and was ready for negotiations with the federal Government.

Critical National Assets In Oil And Gas Under Serious Threat – NNPC

gas-pipeline-vandalisationThe Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, on Thursday said the nation’s critical national assets in the oil and gas sector are under serious threat.

Speaking at a meeting with the Chief of Defence Staff, Gen. Abayomi Olonisakin in Abuja, he fingered activities of vandals in the Niger Delta region as a major factor responsible for low level of crude oil production in the country.

He also appealed for the assistance of the Chief of Defence Staff in protecting the nation’s oil and gas infrastructure.

The Chief of Defence Staff assured the NNPC officials of adequate protection of the nation’s oil and gas facilities.

Gen Olonisakin also advised the Corporation on the need to provide specialized platforms that will further assist security agencies in performing their duties.

Dr Baru noted that the NNPC used to produced 2.2 million barrels of crude oil per day, but that noted that it has, however, dropped to 1.5 million barrels per day due to the activities of vandals.

Statistics reeled out by the Nigerian National Petroleum Corporation revealed that the nation lost 643 million litres of petrol in 2015 due to over 1400 incidents recorded between January and now.

The corporation expressed fears that the nation’s budget plan may suffer if the situation is not arrested.

PENGASSAN Strike Continues As Discussions Hold With Ministers

Oil Workers, PENGASSAN, NUPENGThe President of the Petroleum and Natural Gas Senior Staff Association of Nigeria – PENGASSAN, Mr Francis Johnson says the union’s ongoing strike continues until all issues raised before the Ministry of Petroleum Resources and that of Labour are fully addressed.

Mr Johnson told journalists after a closed-door meeting at the NNPC headquarters in Abuja that the decision on whether or not to suspend the strike would be made by the national executive council of the union.

Although the key issue of redundancy in the sector is yet to be addressed at a separate meeting Tuesday with the Minister of Labour and international oil companies, presidents of both PENGASSAN and NUPENG say discussions so far have been satisfactory.

The dialogue which held at the NNPC headquarters had in attendance the Minister of Petroleum Resources, Dr Ibe Kachikwu, the Minister of Labour, Dr Chris Ngige, the Senior Special Assistant to the President on National Assembly Matters, Senator Ita Enang, the Group Managing Director of the NNPC, Dr. Maikanti Baru, and leaders of PENGASSAN and NUPENG.

One of the issues discussed is the implementation of the 2015 Collective Bargaining Agreement between the federal government and the unions.

Also tabled for discussion were the implementation of the Petroleum Industry Bill and the state under which the oil workers operate, especially with regard to lack of power and bad roads.

Before the meeting went into closed-door, Dr. Kachikwu gave the assurance that the meeting would resolve the issues amicably.

The PENGASSAN had last week declared an industrial action over the dispute, while NUPENG postponed its action pending the outcome of this meeting.