NNPC Deploys Additional Volumes Of Petrol To Abuja

NNPCNNPC has announced the deployment of additional trucks of petrol to arrest the emerging fuel queues in some fuel stations in Abuja, Nigeria’s capital.

The Nigerian National Petroleum Corporation (NNPC) said this on Monday in a statement signed by its Group General Manager, Group Public Affairs Division, Ohi Alegbe.

The corporation explained that it had increased the fuel supply to the Federal Capital Territory and environs from the usual average of 160 trucks per day to 250 trucks (8.25 million litres).

This development, according to NNPC, was to arrest the lull experienced due to last weekend’s State House of Assembly re-run election in Niger State, which affected truck movement from the Suleja depot.

It called on members of the public to refrain from all forms of hoarding, diversion and panic buying of petroleum products.

The corporation also assured the citizens of availability of petrol to meet the demand of consumers in Abuja and beyond.

“Apart from the additional injection of volumes of petrol into the market, the Pipelines and Products Marketing Company (PPMC) has stepped up monitoring across fuel stations to ensure strict compliance with laid down rules and regulations on the sales and distribution of petroleum products,” NNPC said.

Power Ministry Lists Electricity Shortage, Others After Niger Delta Pipeline Attack

Babatunde-FasholaThe attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos in Delta State will impact negatively on the Olorunsogo NIPP plant, with 600MW capacity and other Power Plants, the Ministry of Power, Works and Housing has said.

In a statement by the spokesman for the Minister, Hakeem Bello, the Ministry said that “the sabotaged gas pipeline, which contributes to the Escravos Lagos Pipeline System (ELPS) has led to a loss of 160 million standard cubic feet per day of gas”.

Breakdown Of Effect

Giving a breakdown of the effect of the attack, the Ministry said: “At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78,800,000 daily) in gas volume.

“This is in addition to losses to be incurred daily from affected Power generation ($1,988,223 or N391,680,000 daily). The total daily loss to the country is therefore estimated at N470,479,931.

“Repairs of the damaged pipeline is estimated as costing ($609,137 or N120,000.000)”.

The Ministry further stated that the real sector of the economy had also been counting its losses, as some cement companies around Olorunsogo like Ewekoro and Ibese were also affected.

“The latest incident has occurred just as the Federal Government through the Ministry of Power, Works and Housing and the Ministry of Petroleum Resources along with allied agencies has been making concerted efforts to improve gas supplies to the Power Plants.

“Such efforts led to previously offline plants like Ihovbor and Sapele coming back online and the subsequent output making up for the loss in power. The pipelines are being actively monitored for further attacks or other unforeseen impacts,” the statement further read.

According to the Ministry, available records show that six incidences of vandalism from December 2014 to February 2015, which affected the Trans Forcados Pipeline at Oben, Sapele, Oredo and Escravos Lagos Pipeline System (CNL), led to a loss of 1,100 Million standard cubic feet per day of gas.

According to industry experts, a loss of 200 Million standard cubic feet per day of gas is equivalent to a Power reduction of 700MW.

The industry is currently generating about 4120Mwh/h on average, as at January 17, a performance the Ministry claimed would have been better without the additional setback caused by weekend’s incident.

At a meeting last week between the Minister of Power, Works and Housing, Mr Babatunde Fashola and the operators in the Power Sector – the Nigeria Gas Company , the Nigerian National Petroleum Corporation (NNPC) and the GACN – led by the Minister of State of Petroleum, Dr Ibe Kachikwu shared information on significant gas projects that would improve gas supply.

Dr Kachukwu had pointed out that the projects were scheduled for completion in the second quarter of 2016 and also highlighted some of the challenges especially related to security affecting delivery of gas to the power sector.

In response to this, the NNPC is forming a committee NNPC, Police, JTF – Army, Air Force and Navy – and also community vigilante groups, who have been tasked with the responsibility of securing these pipelines.

NNPC Issues 2016 Crude Oil Contracts

NNPC_TowersThe Nigerian National Petroleum Corporation (NNPC) has issued its 2016 crude oil term contracts to 21 companies, going directly to international refineries, trading houses and local downstream firms, according to a list obtained by Reuters.

The contracts cover 991,000 barrels per day (bpd) of oil, worth $13.5 billion at current crude oil prices, which is roughly half of Nigeria’s crude oil production of just under 2 million bpd.

The list includes refiners such as Spain’s Cepsa, Italy’s Saras, India’s IOC and ENOC of the Emirates, as well as trading houses Trafigura, Mercuria and Vitol and international oil companies ENI, Total, Exxon and Shell.

The remainder are Nigerian downstream and NNPC trading companies.

The list is pared down from the final 2015 contract list, which comprised 43 companies and did not include any global traders.

Trial Of Those Who Misappropriated NNPC Revenues Will Begin Soon – Buhari

buhariPresident Muhammadu Buhari on Sunday in New York restated his determination to fully sanitize Nigeria’s oil industry and make it totally free of corruption and shady deals.

Speaking at a meeting with President Xi Jinping on the sidelines of the 70th General Assembly of the United Nations, President Buhari said that a necessary first step in this direction had already been taken with the appointment of a new management for the Nigerian National Petroleum Corporation (NNPC) and its subsequent reorganisation .

The President said that the prosecution of those who misappropriated the NNPC’s revenue under past administrations will soon commence.

President Buhari thanked President Xi Jinping for China’s ongoing help in curbing crude oil theft from Nigeria.
The President applauded China’s interception of shiploads of crude oil stolen from Nigeria, and which were to be sold and proceeds paid into private accounts.

“We know your stand on corruption, and we are grateful. Your continued cooperation in curbing oil theft from Nigeria will be appreciated,” President Buhari told the Chinese leader.

He also assured President Xi Jinping that under its new leadership, the Nigerian military had been re-trained and re-equipped, and was now making steady gains against Boko Haram.

President Jinping told President Buhari that China, which is already involved in Nigeria in diverse areas like railway, airports, agriculture, and in the Mambilla Hydro-power project, among others, will increase its investment in the country’s agricultural sector to support the achievement of domestic food security.

He also promise further Chinese investment in Nigeria’s oil and gas industry, and more support for human capital development in the country.

NNPC GMD Stresses Need To Fine-Tune PIB

Emmanuel-Ibe-KachikwuThe Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, on Tuesday explained that the Petroleum Industry Bill, which has been pending before the National Assembly in the last seven years, requires extensive engagements with all stakeholders to iron out all grey areas.

Dr. Kachikwu, who chaired a special session on the proposed law at the ongoing 55th Annual General Conference of the Nigerian Bar Association in Abuja titled: Legal and Regulatory Framework of the Petroleum Industry in Nigeria: Review of existing Laws and the Petroleum Industry Bill (PIB), described the bill “as an essential legislation which must be approached with all the seriousness and thoroughness it deserves.

“PIB is a serious affair, it is an essential piece of legislation but as we all know a lot of engagement is required to address all the issues because the oil and gas environment has changed. There are issues of cost, with oil going down to $40 per barrel, the PIB cannot be the same,’’ Dr. Kachikwu said.

The NNPC GMD explained that because of the volume of extensive consultation and time required to make the bill a workable document, it is only natural to kick start the reforms in the industry with the existing laws while waiting for the eventual passage of the proposed law.

“The reform of the petroleum industry is key and it is an area where we are going to put a lot of focus. Transparency is key. Restructuring is key. Sometimes people don’t realize that the problem hasn’t been NNPC, it is a problem of political will to go forward and implement the outcome of researches and reports that had been done but fortunately for us this time around that is what the President has brought to the table. He has strong political will to see this through,’’ he said.

Commenting on what the Federal Government intends to do with the draft legislation, Dr. Kachikwu informed that PIB has come to stay though it would take a bit of time to perfect the draft.

“PIB is important, but we need to x-ray the issues. We need at least one year to get it back on track. The reality is that we cannot afford to wait any longer for change in the petroleum sector because of the delay in the passage of PIB, things have got to start happening and that’s exactly what we are doing,’’ the GMD stated.

Echoing Dr. Kachikwu’s position, Comrade Peter Esele, former President of the Trade Union Congress (TUC), who was also President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that though PIB is key, the industry can make do with existing laws to activate essential reforms in the sector.

Kaduna Refinery Resumes Production At 60 Per cent Capacity

Refinery-KadunaThe Kaduna Refining and Petrochemical Company (KRPC) has resumed refining of petroleum products at 60 percent installed capacity, eight months after it stopped operation.

This was disclosed by the company’s Managing Director, Engineer Saidu Mohammed.

He said the commencement of production followed a successful completion of Turn Around Maintenance of the plants by local engineers which lasted for 18 months.

Channels Television’s correspondent, Chimezie Enyiocha, visited the refinery to get an update of the level of activities on the long abandoned oil production company.

He reports that the last time the plants operated was in January 2015, after which they were shut down.

Originally designed to refine 110,000 barrels of crude per day when produced at full installed capacity, the Kaduna refinery presently refines 36,000 barrels of crude per day and produces 3,083,100 litres of petrol, 1,233 litres of kerosene and 2,102.400 litres of diesel daily.

The management says the figures will increase by the time production hits 90 percent installed capacity by the first quarter of 2016.

The Nigerian National Petroleum Corporation (NNPC) currently imports 50 per cent of the petroleum products into the country as part of the 40 million litres daily consumption by Nigerians.

The engineer in charge of production at the refinery, Shehu Malami, noted that when the refinery operates at 60 percent capacity, it will save the nation the following amount; $117,218 million daily on importation of LPG, $1.261 million daily on importation of PMS, $448, 364 daily on importation of kerosene, $759, 436 daily on diesel and $484,871 daily on importation of fuel oil.

This figure represents a total saving of $3.071 million daily for fuel imports only.

Despite the resumption of operations at Kaduna and other refineries, the long queues are yet to disappear in most parts of the north. This could be attributed to pipeline vandalism and the inability of the PPMC to resume lifting of refined products.

The Muhammadu Buhari administration since it came on board over two months ago, is determined to end petrol importation by revamping the once moribund refineries.

It is hoped that the resumption of refinery activity will improve the supply of fuel in Africa’s largest oil producer and allow the country to make savings on refined fuel and other petroleum products.

NNPC GMD Meets Buhari, Says More Heads Will Roll

Emmanuel-Ibe-KachikwuThe Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Kachikwu, on Thursday said more heads will roll as part of his activities aimed at restructuring the company for better performance and accountability.

He said the restructuring would affect all levels of the corporation with the new Group Executive Directors and Group Managing Directors taking the exercise to the lower layers.

Kachikwu spoke with State House correspondents shortly after meeting President Muhammadu Buhari behind closed-doors at the Presidential Villa.

He said after the personnel aspect would have been completed, he would also order for a proper forensic audit that would cover 2014 and 2015.

That exercise, he added, would show the true state of the company.

Kachikwu noted that when the process is completed within five or six months, a new NNPC would have emerged.

NEC Committee Investigating NNPC To Engage Forensic Auditors

NNPC_TowersThe National Economic Council Committee investigating the activities of the Nigerian National Petroleum Corporation (NNPC) has announced plans to engage the services of two audit firms to investigate the books of generating agencies.

Members of the Committee comprising of  Governors of Edo, Kaduna, Akwa Ibom and Gombe States say the plan to engage the services of the auditors is to ensure professionalism and debunk allegations of political undertones in the investigation process.

Members of the committee warned that no revenue generating agency will be spared in the forensic audit.

Group Advocates Naming Of Shady Oil And Gas Sector Players

gas-pipeline-vandalisationThe Executive Director of the Civil Society Legislative Centre (CISLAC), Mr Auwal Musa, on Thursday advocated for the naming of public officers involved in shady deals in the oil and gas sector.

He noted that making their names public would put a stop to the impunity currently experienced in the sector.

Mr Auwal also called for a total restructuring of the Nigerian National Petroleum Corporation (NNPC) to a more transparent and efficient institution.

The call is coming days after President Muhammadu Muhari appointed former Exxon-Mobil top shot, Dr Emmanuel Ibe Kachikwu, as the Group Managing Director of the NNPC.

Barely 24 hours after taking over as the helmsman of Nigeria’s oil corporation, Dr Kachikwu sacked 8 Group Executive Directors, reduced the directorates to four and appointed officers to head the newly created directorates.

NNPC Boss Sacks Group Executive Directors

Emmanuel-Ibe-Kachikwu head of the NNPC
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr Emmanuel Kachikwu.

The new Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Emmanuel Kachikwu, has commenced a shake-up of the organisation.

Dr Kachikwu on Wednesday, August 5, announced a restructuring of the NNPC by cutting down the size of the directorates of the NNPC from eight to four and has appointed new Group Executive Directors.

The new offices and their heads include, Directorate of Refining and Engineering to be headed by Dr M.K Baru, Mr Denis Nnamdi to take charge of the Directorate of Exploration and Production.

Mr Bankole Komolafe has been appointed Group Executive Director for the Directorate of Commercial and Investment, while Mr Isiaka Abdulrazak will now head the Finance Directorate.

The restructuring and the appointments come weeks after a strong stance from President Muhammadu Buhari to fix the oil sector, rid the sector of rot and probe monies stolen which are said to be flown abroad.

The sack of the GEDs is coming barely 24 hours after he was appointed by President Buhari to head the Nation’s oil corporation.

NEC Sets Up Committee To Investigate NNPC Accounts

NNPC_TowersThe National Economic Council (NEC) has set up a committee to investigate a shortfall of N3.5 trillion in remitting by Nigerian National Petroleum Corporation (NNPC) into the Federation Account since 2012.

This is coming after a briefing by a Director of Funds in the Office of the Accountant General on the status and management of the Federation Account, which indicted NNPC of remitting only N4.3 trillion out of its earnings, estimated at N8.1 trillion within the same period

Briefing State House correspondents after NEC meeting chaired by Vice Presi‎dent Yemi Osinbajo, Edo State Governor, Adams Oshiomhole, who briefed alongside his counterparts from Kaduna, Zamfara and Akwa Ibom States, explained that the committee is to look into the missing N3.5 trillion and report back to the council at its next meeting on the whereabouts of the fund.

Members of the committee, who are to report back to the council on the 23rd of July when the council is to reconvene, are governors of Kaduna, Nasir Elrufai, Edo, Adams Oshiomhole, Akwa Ibom, Emmanuel Udom and Gombe’s Ibrahim Dankwabo

Oshiomhole added that the council will also look at the Excess Crude Account and report back on the rationale to which it would continue operation or done away with at the next sitting of the council in July.

Another issue that would also be looked into according to the Edo State governor is the differences between what former Finance Minister, Ngozi Okonjo Iweala, declared as the balance in the Excess Crude Account and what this administration met in the account.

Oshiomhole stated that while Okonjo-Iweala, had claimed that the past administration left 4.1 billion dollars in the account, only 2.0 billion US dollars was found in it by the owners of the account; the three tiers of the government.

He stressed that there was the need to look into the account to see who authorised withdrawals from the account and what had necessitated such withdrawals.

NNPC Says Petrol Is Enough To Go Round

FUEL-SUBSIDY-FRAUD-IN-NIGERIA-2The Nigerian National Petroleum Corporation (NNPC) says it has added 688 million litres of petrol in the market, dousing fears raised by scarcity witnessed in some states.

The corporation’s spokesman, Mr Ohi Alegbe, in a statement, said there was no need for panic buying which he said might be the reason for the recent artificial fuel scarcity.

“The Corporation is working with all downstream industry stakeholders to eliminate the noticeable artificially induced fuel queues in some fuel stations,” the statement read.

He assured Nigerians that the NNPC had enough products to go round for use across the country and advised against panic buying and hoarding of petroleum products.

Residents in some states in Nigeria are facing hard times getting petrol, which they highly rely on to power electricity generating sets for businesses and for home use.

Earlier on friday, residents of Ekiti State in western Nigeria called for an end to the artificial fuel scarcity gradually beginning to take its toll on business activities in the state.

The ongoing artificial fuel scarcity is gradually going round the 36 states of the federation, with Ekiti State witnessing long queues of motorists trying to purchase fuel.

The Independent Petroleum Marketers Association of Nigeria in Ekiti State told reporters on Friday that nothing could be done ‘until the depot price is reduced’.