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.
We reached accord to suspend¹ 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. pic.twitter.com/vl4u3wQf48
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.”
The Nigerian National Petroleum Corporation (NNPC) has revealed that it earned N20.36 billion in its July 2020 operations due to continuous improvement in global crude oil demand for the third consecutive month.
The state-owned oil firm in a statement signed by its Group General Manager, Group Public Affairs Division, Kennie Obateru, on Thursday, stated that the trading surplus, when compared to the N2.12 billion surplus in June, reflects an 858 percent overall upswell in performance by the corporation.
Giving a further breakdown based on details of the figures captured in the July 2020 NNPC Monthly Financial and Operations Report (MFOR), Dr Obateru indicated a 178 percent rise in the surplus posted by the Nigerian Petroleum Development Company (NPDC), NNPC’s flagship Upstream entity.
Similarly, the report said the corporation’s earnings was further enhanced by the 739 per cent increased profit posted by the Integrated Data Services Limited (IDSL) and a 51 percent growth in performance by Duke Oil Incorporated, both companies of NNPC.
“Returns from NNPC Retail Limited and Nigerian Gas Marketing Company (NGMC) during the period under review also grew by 28 percent and 24 percent respectively, owing to increased sales and improved debt collection.”
More Revenue Increase From Gas
The report further revealed that in the gas sector, production in July 2020 increased by 2.19 percent at 236.34Billion Cubic Feet (BCF) compared to output in June 2020; “translating to an average daily production of 7,623.98 Million Standard Cubic Feet of gas per day (mmscfd).
“Likewise, the daily average natural gas supply to gas power plants stood at 707mmscfd, equivalent to power generation of 2,421MW.”
On a year-on-year basis the statement showed that 3,079.64BCF of gas was produced, representing an average daily production of 7,812.11mmscfd.
“Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 70.88 percent, 20.37 percent and 8.75 percent respectively to the total national gas production.”
Despite Price Increase, Nigerians Consumed 1.02bn litres of fuel
Meanwhile, the report showed that a total of 1.02billion litres of Premium Motor Spirit (PMS) otherwise known as petrol was supplied and effectively distributed across the country, representing a daily consumption of 32.95 million liters for the month under review.
The report stated that the corporation has continued to monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.
Pipeline Vandalism Rises Marginally
The report noted that during the period under review, 36 pipeline points were vandalized, representing about 9 percent increase from the 33 points recorded in June 2020.
“Atlas Cove-Mosimi and Aba-Enugu network accounted for 28 percent each, while PHC-Aba and the other locations recorded 14 per cent and the remaining 31 percent respectively.”
The statement stressed that the NNPC in collaboration with the local communities and other stakeholders have continuously strived to
The Nigerian National Petroleum Corporation (NNPC) has revealed why it shut down four oil refineries across the country.
According to the Group Managing Director of the NNPC, Mele Kyari, the four oil refineries in Port Harcourt, Warri, and Kaduna were shut down because they were functioning below capacity.
Kyari who was a guest on Channels Television’s Politics Today on Wednesday stated that having ascertained that the refineries were underperforming, it became necessary to stop them from operating altogether.
“All the four refineries in three locations are shut down and it was a deliberate decision for two reasons. One is that the delivery of crude oil to these refineries is completely challenged because the pipeline network has been completely compromised by vandals and all kinds of people that will not allow us to operate these pipelines.
“That means you are not able to deliver crude oil to these refineries effectively to their maximum capacity. Secondly, what you call rehabilitation is different from the turn around maintenance. Turnaround is routine which every refinery does but when you talk about rehabilitation, it is that colossal loss of capacity in the refinery and it means you haven’t done the turnaround maintenance properly.
“Typically, every refinery is expected to operate at 90 per cent of its installed capacity. With the best of effort, with all the turnaround maintenance that has taken place, it is impossible to run any of the refineries before the shutdown at that level. Our estimate was to run it at 60 per cent of capacity but if you do that, all you are doing is value destruction. You will take $100 crude into the refinery and bring out $70 product. It doesn’t make sense.”
Outburst Over Fuel Price Increase Understandable But Misplaced
Mr Kyari also weighed in on the recent increase in fuel price, dismissing the criticism that followed the recent hike.
“The outburst is very understandable but I also believe very strongly that it is misplaced because Nigerians are not aware of the opportunities lost,” he said during an interview on Channels Television’s Politics Today on Wednesday.
According to Kyari, the issue of subsidy has been a big issue in the country for many years but the government can no longer afford it because of the economic issues facing the country.
“And not only that, every corruption that you are aware of in the downstream industry is one way or the other connected to fuel subsidy,” the NNPC boss added.
According to the NNPC boss, contrary to what most people believe, subsidy is something that is beneficial only to the rich, not the average man.
“The subsidy in itself, is by every means an elitist thing and I can share this with you. It is only the elite that will have three, four, five cars in their houses, fill their tanks and also feel comfortable doing this.
“The ordinary man is not the beneficiary. First, he loses in infrastructure, hospitals are not built, schools are not built and ultimately, the brunt of the corruption in the downstream sector will be transferred to the ordinary man. So, overall, you lose everything.
“It is very understandable for people to get angry that prices have gone up. Just like the prices of every commodity, when it goes up, there can be difficulties and challenges that people will naturally face but once prices go up, the other natural thing that must happen is that your income needs to increase so that you are able to procure the things that are now delivered at higher prices.
“You can’t do this anywhere in the world if there is no productivity.
“And there will be no productivity except there is growth in infrastructural development, industries are able to work, therefore, there is a connection between production and consumption. What subsidy does is to remove that connection.
“When people get angry, this is coming from people who, practically are not aware of this situation and they are not aware of the loss that they have and most importantly they are being engineered into making those statements, and we understand this perfectly.
“We are the national oil company, it’s our role to ensure energy security. But you can’t do this until you are able to deliver cost. And that cost is lost daily as prices of crude oil goes up and you are unable to do many things”.
The Group Marketing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari was Channels Television’s Politics Today on Wednesday.
Kyari spoke on a wide range of issues affecting the Nigerian petroleum sector, efforts being made by the government to ensure Nigerians have Premium Motor Spirit (PMS).
He also addressed the increase in the price of PMS, and why the government cannot continue to pay subsidy.
Below are the excerpts of the interview:
How have you been contending with the barrage of criticisms from all and sundry because this matter strikes at the core of the Nigerian people?
One thing we must understand is that: where is the criticism coming from? That is the question we need to ask. Probably people who are not aware of what is going on and what is best of those issues that have come up. I am sure you are aware that petroleum subsidy has been a big issue in this country for over 20 years. Not only that, but every corruption that you are aware of in the downstream sector of this industry is also in one way or the other connected to this fuel subsidy. I can give you an example, several lases were issued for people to bring up refineries across the country and none could deliver, probably very few exceptions could deliver.
The reason is very simple. People are not sure that when you deliver petroleum products, at what price are you going to sell at the gate of your refineries? And because we know that those prices are not market-determined and we know that there will be a subsidy element on it, everybody staggers to deliver on this. The end result is that this burden is left to the Nigerian National Petroleum Corporation (NNPC) and the government as a whole. What that means is that government has to provide that gap that exists and of course, it is very understandable for people to get angry that prices have gone up just like the prices of every commodity when it goes up. There can be difficulties. There can be challenges that people will naturally face. When prices go up, the other natural thing that must happen is that your income needs to increase so that you are able to procure the things that are now delivered at half prices. You can’t do this anywhere in the world if there is no productivity and there will be productivity except there is growth in infrastructural development and things are able to work. Therefore, there is a connection between production and consumption. What subsidy does is to remove that connection and people are literally saying smoking cigarette and expecting results. To make this decision, I can share this with you that only a Buhari regime can make this decision. The reason is very simple – people will not appreciate the fact that the lost opportunity is a situation where you are spending enormous resources, over 10 trillion naira in the last eight to nine years all trying to service that. That doesn’t include the element of FX resources that are lost to this. When you put all these together with all the resources and all the distortions that it creates, the natural reaction is “Look, I don’t want to lose this. I am getting this cheap and therefore with this distortion, I am going to suffer. It is not true.” A subsidy itself by every meaning is an elitist thing. It is only the elites that who will have 3, 4, 5 cars in the house, fill the tanks and also feel comfortable doing this. The ordinary man is not the beneficiary.
First, he loses in infrastructure, hospitals are not built, schools are not built and ultimately, the brunt of even corruption in the downstream sector is transferred to the ordinary man. Overall, you lose everything, and you get nothing. So, when people get angry, there is an outburst of anger around this. And this is coming from people who are not aware of this situation, they are not aware of the loss that they have and most importantly, they are being engineered and delivered into making those statements. We understand this very perfectly. We are the national oil companies. Our role is to ensure energy security. But you can’t do this until you are able to deliver cost and that cost is lost daily as the prices of crude oil go up, you lose that value and you are unable to do many things. So the outburst is very understandable but I also believe very strongly that it is misplaced because Nigerians are not aware of the opportunities lost.
In 2012, the issue of hike in the price of fuel almost shut down this country because Nigerians were in a rage about that. One of the issues that came up for debate was trust in government. The question is that we have seen personalities in government who have debated that fuel subsidy is a scam but why has it taken this long for the government of the day to remove the subsidy? It was called under-recovery at some point.
Absolutely, the reason it took this long to come to this point is the persuasion of Mr president himself. Mr President is a pro-people President and I share this very passionately. Ordinary people should not suffer from the acts of people in government by acts of institutions. Also, the government is there to provide welfare to the people. This cannot be delivered except government intervenes. So there is a very difficult conversation in government to see how do we move away from this situation into a situation of reality where the market will determine the prices without hurting the ordinary people. This is a tough conversation, Mr President until very recently was not convinced that we should make this move. And his reason was very simple. What do I do with ordinary people? The ordinary people as you are away may also not be aware that they are bearing the brunt of this situation and it is clear to them also that we can’t afford this anymore. Today, as a result of the COVID-19, even prior to that, collapse in the prices of crude oil, our government resources are going down, revenues are coming down. There is simply no possibility of government continuing to bear the bill of probably up to combine foreign exchange of the value of the product of almost to the tune of N2trillion per annum. This is huge and the government doesn’t have that resources today. So, you cannot give what you don’t have. More importantly, it is obvious that the ordinary people deserve infrastructure, schools, hospitals and they are able to have social security and without resources, you cannot do that. You cannot smoke a cigarette and expect result the next day which is why the government is very convinced today that “look we need to shift to this reality, we need to free those resources, we need to remove the discussion that exists between the consumption of what is available and consumption of what you have to afford.” This is why it took time. It was a very tough and difficult decision for Mr President but today, we know that this is the right thing to do. You will see a colossal increase in the downstream sector of the industry because it will be driven by the private sector, people will be able to build refineries. Prices will ultimately reduce in the sense that when you produce locally, you will able to have local prices of these products, not to a very large extent but clearly some decline in the cost of products even as the market moves.
So overall, it will lead to businesses coming back, refineries being created by the private sector, money paid for the establishment of infrastructures, schools and all that and ultimately, the common man will benefit. This is the reason that we saw, and we are convinced that doing this will serve the befit of the overall common good.
That is a detailed explanation of those who are in support of deregulation. But since you argue that it must come, and a lot of people who are in support of it are also thinking in that direction, but the big question is what are you doing to buffer the effect that comes after all?
When you say effect, is the effect in the rise of prices? So, when prices of petroleum increases, there is some connection, not very definite. There is some connection between the rise of petroleum and that of other commodities in the market. But it is not always true. If there is any reason to even think that this can happen, what it does is the collateral benefit that it will bring. More people will be in employment, we are able to create infrastructures also more jobs, we are able to create hospitals, the government is able to fund hospitals, schools and so on. The long-term benefits outweigh the immediate pains. What we have to understand today is that at current market price, even in comparative terms across the West African sub-region even globally, despite all the numbers that you see today, we know today that Nigeria’s petroleum prices particularly PMS is the lowest in the whole world. You will say why? Because we are not producing petroleum today, unfortunately, our refineries are not working today. You can ask the question, why is it cheaper? It is because of volume? 70 per cent of West Africa supply and consumption of PMS is in Nigeria. And what that means is that you cannot deliver to the market at prices that are cheaper than other economies, because it is an economy of scale. And because we have a more suitable economy in the whole of the West African region, the stability of our currency in relative to any other currency in West Africa is better. So definitely, you can deliver prices that are lower than average in the region. Where does that take you to? Because people will see that pains will come. Those pains are very temporary for two reasons – because we just cannot afford it and most importantly is the long-term benefits that await every pain that we see today. Yes, people will be very justified to say that when we are increasing prices, the price of rice will rise and so on and so forth. We have seen this play out in the telecom sector. I’m sure you will recall that when the telecom sector came, competition came in over time. Today, we are paying cheap because there is more supply of the telecom services. We know that government means well, we know that this government, particularly Mr President can be trusted with these resources. And therefore, delivery will be actual. The ordinary person knows that Mr President is determined to ensure that delivery is made. So when you see this benefit against the fact that there is a tendency for lack of trust which makes it impossible for people to trust the government is that you will use this money to smoke.
I don’t think anyone will argue with the fact that smoking cigarette is not a good business and you will ultimately lose. I know also that there are other palliatives that the government is doing.
I am talking about the direct practical impact of the buffer that you are trying to explain. You are talking about long-term buffer for Nigerians. What is the direct practical buffer for the average Nigerians who will see hike in the price of transportation and so many other issues in Nigeria? Is there any that this government planned before making the move?
Absolutely, there is a relationship. I am sure you are aware of the Economic Sustainability Programme of this administration. The whole idea of the economic sustainability is to inject resources into agriculture, manufacturing to small scale industries so that more jobs will be created, more people will be employed and then activities pick up in the industry. In banking, banks are able to lend more money to people and people are also able to bank and a number of activities are also able to take place.
There is over N2.7trillion of investments government is doing in this respect. The effect of that will be jobs will be created, people will have more resources, more pay will come from resources you don’t know. There are a number of initiatives which are targeted at the vulnerable. Making cash available to the low income-earners in the country, those unemployed placed on some kind of small stipends that will make them survive and ultimately, you will see the relationship between these activities of government will completely complement the realities that will come as a result of the hike in petroleum. I am very sure that these activities around this sustainability programme will bring the cushion and of course the long term. Much as we can avoid the long term, the long term can be one year, two years or three years or 10 years.
In a short term, when you see realities come into consumption, demand and supply balance, and the realities that people can recover costs, you will see institutions will come into deliver on man transport activities. I am sure you are aware that the number of railway projects are on course, they will be delivered. Many of them will ease transportation, roads are being constructed on monumental proportion. I am not a politician, but I know, and I have been around for 55 years, I am not a kid. I have seen what has happened in this country compared to the number of resources available to government today and what was available in very many years that we all know. Looking at the level of deliveries in roads, transportation, electricity, production of resources used in hospitals, we haven’t seen this kind of growth compared to the resources that are available in relative terms.
The ex-depot price of Premium Motor Spirit, otherwise known as petrol has increased from N138.62 to N151.56 in September, according to reports by several news organisations.
Wednesday’s reports cited an internal memo from the Pipelines and Product Marketing Company (PPMC).
The PPMC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) on Wednesday informed the depot’s owners and other stakeholders in the petroleum marketing business of the increase in price through a memo signed by the Lead Sales, Ibadan Depot, Mr Abalaka.
The ex-depot price is the price at which the depot owners sell the commodity to retail outlets across the country
According to the memo, the new product price adjustment will take effect from September 2, 2020. It did not state the Expected Open Market Price of the commodity.
The PPMC and the Petroleum Pricing Product Regulatory Agency (PPPRA) have not confirmed or denied the reports.
Sources within both agencies maintain that the memo did not necessarily amount to an increase in price.
Also, a source in the Independent Petroleum Marketers Association (IPMAN) said they are yet to get the official directive from the government agency, and they have not directed its members to adjust their retail pump price to reflect an increase.
The source added that it was monitoring trends and will make the necessary adjustment following advice by the PPRA.
The PPMC has since March this year, provided a guiding template through the ex-depot price of Premium Motor Spirit (PMS).
This followed the announcement by the Federal Government earlier in the same month that the downstream sector had been deregulated and fuel subsidy removed.
That policy shift essentially made way for a monthly price band in accordance with market forces.
The Nigerian National Petroleum Corporation (NNPC), has become an EITI supporting company, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions, and industry partners who commit to observing the EITI’s supporting company expectations.
EITI Board Chair, Rt Hon. Helen Clark welcomed the company’s commitment to the EITI: “NNPC plays a vital role in Nigeria’s economy. Joining the EITI as a supporting company is a welcome step in the NNPC’s journey toward achieving greater transparency and to help ensure that Nigeria’s citizens benefit from their natural resource wealth.”
Zainab Ahmed, Nigeria’s Minister of Finance, Budget and National Planning and former EITI Board member, also stressed the importance of ensuring that natural resource wealth contributes to sustainable development, saying that: “Increased transparency of Nigeria’s national oil company revenues is contributing to improvements in our country’s domestic resource mobilisation efforts.”
Established in 1977, NNPC has grown to become the largest asset holder across Nigeria’s oil and gas industry value chain. Traditionally an oil and gas entity, it is transitioning towards becoming an integrated energy company with an interest in power generation and transmission.
The state-owned company has recently taken measures to become more transparent. In June 2020, it published audited accounts for 20 of its subsidiaries. NNPC also publishes monthly financial and operations reports on its website, in national dailies, and online media as part of efforts to be accountable. It is working with Nigeria EITI (NEITI) on an action plan to routinely disclose information and it currently publishes some of the data required by the 2019 EITI Standard on its website.
These disclosures demonstrate NNPC’s commitment to its journey to becoming a more transparent national oil company. Adherence to the EITI supporting company expectations will give further impetus to NNPC’s corporate vision of greater transparency and accountability. Three areas in which there is scope for advancing transparency are revenues and payments to the government, contracts governing petroleum exploration and production, and consolidated group-level financial statements.
Mele Kyari, Group Managing Director at NNPC, affirmed his company’s commitment to the EITI: “Becoming an EITI supporting company aligns with NNPC’s corporate vision and principles of transparency, accountability and performance excellence. Our partnership with NEITI and EITI strengthens our commitment towards commodity trading transparency, contract transparency and systematic disclosure of revenues and payments. We are on a journey towards greater transparency and look forward to deepening our collaboration with the EITI to further this work.”
NEITI Executive Secretary, Waziri Adio, commended NNPC’s move to support the EITI: “NNPC joining the EITI as a supporting company is a major inflection point in the quest for transparency – for the company, for Nigeria’s oil and gas sector, and for the country as a whole. This is so given how critical NNPC is to the sector and to the country. NEITI welcomes this bold commitment. We will continue to work and walk with NNPC to translate its espoused commitments to transparency and accountability into concrete and sustained actions and results.”
Becoming an EITI supporting company can help state-owned companies make progress on the journey to transparency. A recent example is Qatar Petroleum, which has been an EITI supporting company since October 2019 and has now published its annual and sustainability plans for the first time.
The Nigeria Liquefied Natural Gas Limited (NLNG) has condemned the reports that it illegally withdrew the sum of $1.05 billion from its dividend account with the Nigerian National Petroleum Corporation (NNPC).
NLNG’s General Manager of External Relations and Sustainable Development, Eyono Fatayi-Williams, denied the claims in a statement on Thursday in Port Harcourt, the Rivers State capital.
She also faulted the allegations that the NLNG Managing Director/CEO, Tony Attah, and the NNPC Group Managing Director (GMD), Mele Kyari, were signatories to an account and have been misappropriating monies belonging to the company without approval.
Fatayi-Williams, however, clarified that as a private limited liability company, the NLNG duly pays dividends to its shareholders.
She added that the company has continued to operate in full compliance with regulations and the laws of the country.
The NLNG general manager dismissed the allegations and urged Nigerians to ignore them, stressing that they were baseless and untrue.
Read the full statement below:
16 July 2020
The attention of Nigeria LNG Limited (NLNG) has been drawn to news reports on the investigation by the House of Representatives into alleged illegal withdrawal of US$1.05billion from NNPC’s (NLNG) dividend account and allegations that our Managing Director/CEO Tony Attah and the GMD, NNPC, Mele Kyari are signatories to an account and have been moving and “squandering” monies belonging to the company without approval.
For the purpose of clarity, NLNG wishes to state that the company, as a private limited liability company, duly pays dividends to its shareholders and continues to conduct its business in full compliance with regulations and the laws of the Federal Republic of Nigeria.
NLNG strictly follows extant protocols in the payment of dividends as value generated from the business and ensures that the process concerning payment of dividends to its shareholders is transparent and in full compliance with the laws of the Federal Republic of Nigeria.
Expectedly, NLNG’s involvement in the process ends with the payment of such dividend.
The governance and controls around the Company’s finances also make the allegations against the Managing Director and the GMD an impossible scenario and therefore members of the public are advised to disregard the allegations as it is totally baseless and simply untrue.
NLNG also wishes to emphasize that it continues to bring value to both its shareholders and the country, utilising best practices in the industry to monetise gas resources and contribute to the socio-economic wellbeing of the country in line with its vision of helping to build a better Nigeria.
General Manager, External Relations and Sustainable Development
“The incident, which occurred on Tuesday during the installation of a ladder on a platform (Benin River Valve Station) for access during discharging of Gbetiokun production, unfortunately caused 7 fatalities,” the statement explained.
Obateru said the NNPC has started an investigation into the cause of the incident and the Department of Petroleum Resources (DPR) has been informed about it.
“The bodies of casualties have been deposited in a morgue in Sapele, while families of the personnel involved are being contacted by their employers: Weld Affairs and Flow Impact, which are consultants to NPDC,” he added.
He said all personnel on board the platform have been fully accounted.
According to him, the NNPC Group Managing Director, Mele Kyari, also commiserated with the families of the bereaved and prayed that God grants them the fortitude to bear the irreparable loss of their loved ones.
The Nigerian National Petroleum Corporation (NNPC) has made new appointments and redeployments of its top management staff.
This was confirmed in a statement issued on Sunday by the NNPC Group General Manager, Public Affairs Division, Dr Kennie Obateru.
According to the corporation, the move is “part of ongoing efforts to strengthen and reposition NNPC for greater efficiency, transparency and profitability in line with the Next Level Agenda of President Muhammadu Buhari’s administration.”
While the Group General Manager, Crude Oil Marketing Division (COMD), Adokiye Tombomieye, who has been appointed as the Chief Operating Officer (COO), Upstream; the Managing Director of the Nigerian Gas Marketing Company (NGMC), Mohammed Abdulkabir Ahmed, has been made the new Chief Operating Officer of Corporate Services, following the retirement of Farouk Garba Sa’id, last week.
Other top-level staff also affected are the Managing Director of NNPC Downstream Company (Retail Limited), Billy Okoye who replaces Mr Tombomieye as the Group General Manager, Crude Oil Marketing Division; with the General Manager, Sales and Marketing NNPC Retail Limited, Mrs Elizabeth Aliyuda taking over from Sir Okoye.
Meanwhile, President Muhammadu Buhari has accepted the resignation of the Chief Operating Officer, Ventures and New Business Directorate, Mr Roland Ewubare.
President Muhammadu Buhari will today inaugurate the construction of the 614km-long Ajaokuta-Kaduna-Kano (AKK) Pipeline Project – the single largest gas pipeline project in Nigeria’s history.
The $2.8 billion natural gas project is a joint venture project between Oilserv Limited, an indigenous oil and gas pipelines and facilities company, and the Nigeria National Petroleum Corporation (NNPC).
It forms the first phase of the Trans-Nigeria Gas Pipeline (TNGP) project which is part of the 4,401km-long Trans-Saharan Gas Pipeline (TSGP) to export natural gas to countries in Europe.
The AKK pipeline is slated to originate from Ajaokuta and pass through Abuja and Kaduna, before ending at a terminal gas station in Kano.
Its flag-off will mark the beginning of the implementation of the plan to create a steady and guaranteed gas supply network between the Northern and Southern parts of Nigeria, by utilising the country’s widely available gas resources.
It is also expected to reduce the large volume of gas flared annually in Nigeria, as well as the subsequent environmental impact it causes.
The gas pipeline project is also expected to promote and increase the local usage of domestic gas while increasing the nation’s revenue generation through the export of natural gas.
It is to be executed in three phases, with phase one covering the construction of a 200km-long segment between Ajaokuta and Abuja Terminal Gas Station at a cost of $855 million.
On the other hand, phase two will comprise a 193km-long section to be built between Abuja and Kaduna at a cost of approximately $835 million, while the third phase will involve the construction of a 221km-long section between the Kaduna Terminal Gas Station (TGS) and Kano TGS at an estimated cost of $1.2 billion.
Other infrastructure planned for the development includes various associated valve stations, as well as intermediate and terminal facilities.
Ahead of the flag-off by President Buhari at the project site in Ajaokuta, Kogi State, Oilserv officials noted that the company was 100 percent ready to execute the contract which would also boost gas distribution by establishing a connecting pipeline network between the Eastern, Western, and Northern regions of the country.
They added that the company has pooled the expertise of highly qualified and experienced engineers, technicians, and other support personnel to provide Total Quality Services (TQS) that would ensure the timely and successful completion of the project.
According to them, Oilserv Limited was chosen for the project because of its performance on various key projects relating to platforms, production facilities, and installation of Bulklines, all of which involve engineering, project management, and construction services.
They added that the company was the first and only Nigerian indigenous company to fabricate, install, and commission the largest oil manifold station for Shell Petroleum Development Co. Ltd. (S.P.D.C.).
It has also successfully designed and constructed the largest Gas Transmission Pipeline System in Nigeria and Africa – the Obiafu/Obrikom to Oben Node Gas Transmission Pipeline System, which forms a part of the Nigerian Gas Master Plan.
Among other challenging projects, Oilserv is also a major company executing pipeline repairs and rehabilitation work for S.P.D.C and the Nigeria Liquefied Natural Gas Limited (NLNG) in the Niger Delta region of the country.
The reconstitution became necessary after the tenure of board members appointed in 2016 expired.
Members of the new Board include Mohammed Lawal (North West), Tajudeen Umar (North East), Adamu Mahmood Attah (North Central), Senator Magnus Abe (South-South), Dr Stephen Dike (South East), and Chief Pius Akinyelure (South West).
The new board will be in place for three years.
Earlier on Saturday, the demise of NNPC’s immediate past General Managing Director was announced.
Current NNPC GMD, Mele Kyari, announced Baru’s passing via Twitter.
“My brother, my friend and my mentor, Dr Maikanti Kachalla Baru, immediate past GMD of NNPC died late last night,” Kyari said. “He was of exemplary character and disposition. May Allah forgive him and have mercy upon him.”
Baru was aged 60.
According to a statement from NNPC, Baru “died after a brief illness in an Abuja hospital.”