‘We Will Follow Through’: Kyari Hails FG’s Deal With Labour

A file photo of NNPC GMD, Mele Kyari

 

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) on Monday praised the Federal Government’s agreement with Organised Labour to suspend the latter’s industrial action.

The labour unions had threatened to embark on a nationwide strike today (Monday) over the increase in fuel and electricity prices.

READ ALSO: Labour Suspends Planned Strike, FG To Put Electricity Tariff Hike On Hold

But after a meeting that started late Sunday and ended in the early hours of Monday, both parties struck a deal to suspend the strike for two weeks.

“We reached accord to suspend the planned strike action, great responsibility for both Govt and Labour, all serving the common good, beneficial challenge for NNPC, we will follow through diligently,” Kyari tweeted on Monday.

 

Fuel prices increased earlier this month as the deregulation of the country’s petroleum downstream sector continued to take shape.

Earlier on Monday, Kyari noted that the labour union’s understood the “inevitability” of deregulation and are working with the government to develop local refining sufficiency.

“NLC and TUC demonstrated absolute faith in our country and showed understanding on inevitability of PMS deregulation and jointly charted way forward to secure local refining sufficiency through greater stakeholder inclusiveness and transparency,” he said. “We will follow through diligently.”

 

Five Confirmed Killed In Abule Egba Pipeline Explosion

 

Authorities say five persons have been confirmed dead in the Abule-Egba pipeline explosion that occurred within the late hours of Sunday.

Giving an update on the sad development, the Lagos State Emergency Management Agency (LASEMA) said three adult males, one adult female, and one female child died in the incident.

LASEMA via its official Twitter handle added that 20 people were treated for minor injuries and discharged at the scene.

READ ALSO: Panic As Pipeline Explodes At Ile Epo In Abule Egba Area Of Lagos

The agency noted further that about 11 buildings were also affected by the inferno.

According to LASEMA, 17 shops, 33 trucks, three cars, and three tricycles were affected by the fire.

Corroborating LASEMA’s statement, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said it was unfortunate that five lives were lost to the inferno.

Mr Kyari who visited the scene of the explosion on Monday also revealed that many were in critical condition in the hospitals.

He noted that the explosion was a result of the “unpatriotic acts of vandals” who make “insertions into the pipelines to steal products, leading to disasters such as this.”

He, therefore, called for the “support of every member of the community to expose the bad eggs in their midst.”

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.

NNPC Awards 2017 Crude Term Contracts To 39 Companies

NNPC, Crude Term ContractsThe Nigerian National Petroleum Corporation (NNPC) has awarded 1.31 million barrels per day (BPD) of crude oil to 39 companies as part of its 2017 crude term contracts.

A statement by the Group Managing Director at the Public Affairs Division, Ndu Ughamadu, revealed the companies were selected for the term contracts after a transparent bid by 224 companies in December 2016.

The companies are 18 Nigerian owned companies, three foreign state owned companies, 11 international trading houses, five foreign refineries and trading arms of the NNPC group.

The statement said each of the contracts were for 32,000bpd apart from Duke Oil Limited, an oil trading arm of the NNPC which would be for 90,000bpd.

It also disclosed that the contract, which was announced by the Group General Manager of the Crude Oil Marketing Division of the corporation, Mr Mele Kyari, would run for one year, with effect from the January 1, 2017 for consecutive 12 circles of crude oil allocation.

The breakdown of the term contract winners are; Nigerian companies: Oando, Sahara Energy Resources Limited, MRS Oil and Gas, A.A. Rano Nigeria Limited, Bono, Masters Energy, Eterna Oil and Gas, Cavalva Energy, Hyde Energy, Britania-U, North West Petroleum, Optima Energy, AMG Petroenergy, Arkleen Oil and Gas Limited, Shoreline Limited, Emo Oil, Setana Oil and Prudent Energy.

International trading companies: Trafigura, Enoc, BP Trading, Total Trading, UCL Petro Energy, Mocoh Trading, Trevier Petroleum, Heritage Oil, Levene Energy, Glencore as well as Litasco Supply and Trading.

NNPC trading companies: Calson/Hyson and Duke Oil Incorporated.

Refiners: Hindustan Refinery, Varo Energy, Sonara Refinery, Bharat Petroleum and CEPSA.

Government to government: Indian Oil Corporation (India – IOC), Sinopec (China) and Sacoil (South Africa).

Nigeria Targets 60% Drop In Petroleum Products Import By 2018

Kachikwu, Niger DeltaThe Nigerian government says it is targeting at least 60% drop in importation of petroleum products by 2018 and export increase by 2019.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, told a gathering in Lagos that current reforms initiated by the government would ensure the reduction in importation and subsequently position the country for net export by 2019.

The Minister, who announced the planned reduction in importation in Lagos on Monday at the 10th Oil Trading and Logistics Africa Downstream Expo, was represented by his Senior Technical Adviser on Upstream and Gas, Mr Gbite Adeniji.

He, however, says there is need to fully liberalise and deregulate the midstream and downstream sub-sectors in a way that the open market prices of petroleum products would be cost-reflective and market-driven.

Dr Kachikwu also called for a strong independent regulator to monitor activities in the sub-sector, whose role is not price-setting, but to develop and enforce open, fair and transparent rules in the downstream oil and gas sector.

Foreign Exchange Availability

He stressed the need to build refineries and run them as profit centres that would purchase crude at international prices and deliver products at export parity prices.

“This is the only viable basis for financing new infrastructure. This ensures that pricing will be conducted on a market-derived basis. We need to establish an oil and gas infrastructure protection squad, with the responsibility for dealing with crude and products theft, vandalism and general criminality, which is currently on an upsurge in the entire industry,” he told the gathering.

On his part, the Group General Manager of the Crude Oil Marketing Division of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, told the gathering that the government had resolved the challenge of foreign exchange availability facing marketers.

Stranded Forex

He, however, noted that some of the marketers were rejecting the dollar supply provided by the government to facilitate the importation of the products.

Explaining the foreign exchange issues which the cost of petroleum products had been linked to, he said: “There is no way today you can take petrol to the retail outlets and sell it at 145 Naira. So, if that is true, and I believe that is true because we all go to the market and we know what is going on, why can’t we sell above 145 Naira?

“And I know today that it is impossible to announce tomorrow that petrol price is 150 Naira. This government cannot sustain it. It is unfair even to expect it to do that today. That is the truth. But all of us, including myself, are not ready to take that number. That is why Vitol, Northwest, Petrocam, and others, are not importing; it is not forex”.

Kyari further stated that the government had created a niche market for forex, saying, “we have ring-fenced all forex from the upstream such that the forex will be available at a fixed price – a price that the CBN has agreed. I am part of the people who are involved in making sure that the forex is available.

He further stated that the 145 Naira per litre price band had scared importers away from importing petroleum products.

“I am part of the committee allocating those forex, and I know and I can see some of you here; we gave you forex, but you returned it. And the reason that was given was that the forex was not enough to import. But that is not the truth. The truth is that if you go to the market today and buy products and land here, you are required to sell it at N145 maximum. That is the main reason why people are not importing.

“As I speak to you today, we have stranded forex that nobody is ready to pick up. So, we have closed the chapter on forex,” he explained.

Kyari, however, said the NNPC was very comfortable and could sell petrol at N145 per litre.