Yuletide: NNPC Promises To Sustain Products Sufficiency Nationwide

Images from GMD @NNPCgroup Mallam @MKKyari’s visit to Lagos State Governor, Babajide Sanwolu, where the Governor assured the GMD of LASG’s support towards tackling infrastructure challenges at the Ijegun-Egba axis of the State.

 

The Nigerian National Petroleum Corporation (NNPC), says it has made adequate preparations for a yuletide in which petroleum products will be in abundance across the nation. 

This is according to the Managing Director of NNPC, Mallam Mele Kyari.

Mallam Kyari disclosed this during separate visits to tank farms at the Ijegun-Egba corridor, as well as the Lagos State Government House in Ikeja, Lagos, on Wednesday.

Mr Kyari said as an enabler organisation to the Nigerian economy which also guarantees national energy security, the NNPC would continue to partner with stakeholders such as the Lagos Government, to sustain the current seamless supply and distribution of products nationwide, going into the Yuletide period.

READ ALSO: Oil Worth $42bn Stolen In Nigeria Within Nine Years – NEITI

“As a responsible corporate citizen, NNPC and its partners in the Downstream have made adequate preparations, and our plan is robust and we foresee a very hitch-free Christmas full of products, well into the New Year,” Kyari assured.

While addressing tank farms operators at the Ijegun-Egba area, Kyari lauded their initiative to pull resources together to fix the Ijegun Road leading to the tank farms to ease movement of trucks in the area.

Mallam Kyari said although it was a palliative arrangement, the NNPC and its stakeholders would put heads together to provide a permanent solution to the problems.

Reacting to the GMD’s visit, Governor Babajide Sanwolu, expressed his support to NNPC and its stakeholders’ initiative to tackle the infrastructure challenges, not only at the Ijegun-Egba, but the entire state, adding that his administration would leave no stone unturned in tackling the challenges.

“This is the first time all the stakeholders are coming together to have a long-term view of the situation. We will do everything that is required to ensure that everything goes well on that entire corridor,” Sanwolu stated.

Also speaking, Chairman, House Committee on Petroleum (Downstream), Hon. Abdullahi Mahmud Gaya, expressed the National Assembly’s support to the initiative.

At the palace of the Oba of Lagos, His Royal Majesty Oba Rilwan Akiolu I, called on International Oil Companies (IOCs) operating in the Country to do more Corporate Social Responsibility (CSR) activities in their areas of operations.

Other stakeholders on the GMD’s entourage were the National President of the National Union of Petroleum and Natural Gas Workers (NUPENG), Comrade Williams Akporeha and the Chairman, Petroleum Tanker Drivers (PTD) Unit of NUPENG, Comrade Salimon Oladiti.

Oil Worth $42bn Stolen In Nigeria Within Nine Years – NEITI

 

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that Nigeria lost about $42 billion to crude theft as well as domestic and refined petroleum products losses between 2009 and 2018.

This is according to the latest edition NEITI’s Policy Brief titled “Stemming the Increasing Cost of Oil Theft to Nigeria” published Wednesday in Abuja.

In its brief, the NEITI gave a detailed breakdown of what the nation had lost including $38.5 billion on crude theft alone and $1.6 billion on domestic crude and another $1.8 billion on refined petroleum products.

NEITI also stated that Nigeria loses an average of $11 million daily, $349 million in a month and about $4.2 billion annually to crude and product losses arising from stealing, process lapses and pipeline vandalism.

READ ALSO: NNPC Signs MoU With Russian Oil Company, Lukeoil

These loses were blamed on the failure of the Nigerian government to adopt the oil fingerprinting technology as well as the lack of qualitative metering instruments at the various facilities across the country.

The report states that oil theft, pipeline vandalism and other criminal activities have deeply affected the lives of people living within the environments where oil facilities are mounted.

In recommending solutions to oil theft across Nigeria, NEITI said adequate legal sanctions should be handed anyone found wanting or involved in oil theft and other oil related crimes.

Deployment of modern technology to tackle oil leakages was also proffered.

NNPC Signs MoU With Russian Oil Company, Lukeoil

 

Nigeria and Russia Thursday in Sochi, Russia, signed an important Memorandum of Understanding (MoU), which will enable both countries’ oil giants, Nigerian National Petroleum Corporation (NNPC) and Russia’s Lukeoil to elevate commercial relationship to a government-to-government backed partnership.

With the signing of the MoU, NNPC and Lukeoil will work together in upstream operations and revamp Nigeria’s refineries.

Group Managing Director of NNPC, Mele Kyari and Vagit Alekperov, President of leading Russian oil company, Lukeoil, signed the MoU, which entails cooperation in deep offshore exploration of oil in Nigeria, production, trading and refining.

READ ALSO: Buhari, Putin Partner To Improve Nigeria’s Oil Sector

The signing ceremony, which took place on the sidelines of the Russia-Africa Summit, was witnessed by the Minister of State for Petroleum, Timipre Sylva.

Earlier in his remarks at a meeting with Russian President Vladimir Lenin, President Muhammadu Buhari said Nigeria was prepared and willing to work with Russian businesses “to improve the efficiency of our oil and gas sector which provides us with the much-needed capital to invest in our security, infrastructure and economic diversification programmes”.

While taking note of the agreement between NNPC and Lukeoil, President Buhari gave an assurance that his administration will “ensure this initiative is implemented within the shortest possible time.”

 

FG Targets Oil Production Of Three Million Barrels Per Day

 

The Federal Government has said that a target of three million barrels per day of oil production has been set and steps are being taken to realise it before the end of 2023.

This is according to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, at a meeting with the House of Representatives committee on petroleum upstream.

Mr. Kyari added that a target of 40 million barrels of reserves has also been set and the possibilities of achieving them are high due to the several interventions being explored by the government.

“The national target of three million barrels per day of daily production and 40 million barrels of reserves has not been attained, we are much focused today, we know it is possible, we have taken steps to realise this before the end of 2023.

“A number of interventions are ongoing, including our elaborate intrusion into the frontier basins which we announced oil discovery in the Gongola basin, and we expect many more to happen including the Anambra platform and some part of Benue, Bida and Chad basin.”

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The NNPC boss stated that the failure of having refineries across the country owes fully to the inability of the Government to take care of them and no excuse is tenable for such.

“The refineries didn’t fail because there were no skilled people; they failed because we are unable to take care of the refineries and we don’t want to give excuses why we didn’t take care of it, you can blame anyone, but what we have decided to do is to make them work.”

He added: “There is no scarcity of skilled people, the will is there and our plan subsequently will be made available and I assure you that the plans we have in place will make them work and it will deliver the refineries; we have the best refiners in the world.”

NNPC Discovers Hydrocarbon Deposits In Benue

NNPC To Recover Missing Petrol Worth Over 130m Litres

 

The Nigerian National Petroleum Corporation (NNPC) has announced the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North-Eastern part of the country.

It would be recalled that drilling of the Kolmani River II Well was flagged-off in a colourful ceremony by President Muhammadu Buhari on the 2nd of February, 2019.

A press release by the Corporation’s Acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji, stated that NNPC acquired 435.54km2 of 3D Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin.

This was to evaluate Shell Nigeria Exploration and Production Company (SNEPCo) Kolmani River 1 Well Discovery of 33 BCF and explore deeper levels.

READ ALSO: NNPC To Begin Full Rehab of All Refineries In January, Says Kyari

The well was drilled with “IKENGA RIG 101” to a total depth of 13,701feet encountering oil and gas in several levels. A Drill Stem Test (DST) is currently on-going to confirm the commercial viability and flow of the Kolmani River reservoirs.

The Corporation explained that on Thursday 10th October, 2019, at 18:02hours, one of the reservoirs was perforated and hydrocarbon started flowing to the well head at 21:20hours in which the gas component was flared to prevent air charge around the Rig.

Preliminary reports indicate that the discovery consists of gas, condensate and light sweet oil of API gravity ranging from 38 to 41 found in stacked siliciclastic cretaceous reservoirs of Yolde, Bima Sandstone and Pre-Bima formations.
Computation of hydrocarbon volume is on-going and will be announced in due course.

The Corporation has also acquired additional 1183km2 of 3D seismic data over highly prospective areas of Gongola Basin with a view to evaluating the full hydrocarbon potential of the Basin.

NNPC has deployed world class cutting-edge technologies including Surface Geochemistry, Ground Gravity/Magnetic, Stress Field Detection, Full Tensor Gradiometry aerial surveys to de-risk exploration in the frontier basins.

The NNPC plans to drill additional wells for full evaluation of the hydrocarbon volume in the Gongola Basin.

It would be recalled that during the spud-in ceremony of Kolmani River II, President Muhammadu stated the commitment of his administration to the exploration for Oil and Gas in the frontier basins in the entire length and breadth of the country. The basins include: the Benue Trough, Chad Basin, Sokoto and Bida Basins.

He also stated that attention would be given to the Dahomey and Anambra Basins which have already witnessed oil and gas discoveries.

The discovery of oil and gas in commercial quantity in the Gongola Basin will attract foreign investment, generate employment for people to earn income and increase government revenues.

 

NNPC To Begin Full Rehab of All Refineries In January, Says Kyari

 

The nation’s refineries, located in Port Harcourt, Warri and Kaduna, will roar to live to refine crude oil at optimum capacity come 2022, the Nigerian National Petroleum Corporation (NNPC), has assured.

NNPC Group Managing Director, Mallam Mele Kyari, who disclosed this Saturday during a facilities tour of the Port-Harcourt Refining and Petrochemical Company (PHRC), stated that full rehabilitation of the plants would commence January, 2020.

A release by the corporation’s Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, said the NNPC helmsman’s visit to the refinery was part of his strong determination and commitment to ensure that the nation’s refineries deliver real time value and address the petroleum needs of Nigerians.

Mallam Kyari said making the refineries to operate at optimal capacities was a mandate that NNPC as a corporation would leave no stone unturned to actualize, saying a timely delivery of the asset was a priority.

READ ALSO: Nigeria To Earn Fresh $6.35bn In Taxes, Royalties – NNPC

“We will stick to time, we will deliver this project by 2022. We will commence actual rehabilitation work in January. We will do everything possible between October and December to close out all necessary conditions for us to deliver on that project. I believe that with the support that we have from the shareholders – government of this country, the entire staff of this company and the contractors, I believe it is doable and we will deliver the project”, the GMD said.

He tasked the contractors on the need to consider their reputation as most critical element in business processes and engagements.

“It’s no longer about business now, but a reputational issue. For the original builders of the refinery, Tecmmont, Eni/NAOC and NNPC, let us be conscious of the fact that our reputation is at stake as far as this project is concerned. The NNPC leadership has promised this country that our refineries will work, therefore, we must work not to disappoint over 200million Nigerian stakeholders”.

The NNPC boss challenged the PHRC management to ensure that the nation’s indigenous engineers and other professionals working in the refinery are fully engaged to participate actively during the rehabilitation exercise and own the process.

According to the GMD, the involvement of the indigenous workers will build capacity, save cost and introduce an era of steady and uninterrupted production curve that will grow the oil and Gas Industry.

In his presentation on the progress and milestones on Phase 1 of the projects, the Tecmmont Project Manager, Mr. La Mattina Carmelo, informed that the Inspection aspect of the project has progressed to 91% and Final Report and EPC Proposal stood at 75%, adding that his company would deliver the first phase of the rehabilitation within three weeks from now.

He assured that there were no challenges as the project was progressing efficiently, pledging to offer its best services to ensure a timely delivery.

In the same vein, the project consulting company, Eni/NAOC, represented by the its project manager, Daniele Tamburini, confirmed that the work done so far by the NNPC and Tecmmont complied with global standard.

Tamburini said his company was ready to receive the full report of the scoping for final assessment and support the corporation to deliver the project in record time, saying that the initiative was a good business for Nigeria.

Earlier in his address, the Managing Director of the PHRC, Mr. Abba Bukar, expressed appreciation to the GMD for his deep commitment in ensuring that the refinery works for the benefit of Nigerians.

Nigeria To Earn Fresh $6.35bn In Taxes, Royalties – NNPC

NNPC CFO, Mr. Umar Ajiya (first right) at the signing ceremony in Dubai.

 

The push by the Management of the Nigerian National Petroleum Corporation (NNPC) to increase crude oil production and grow the nation’s revenue profile gained momentum with the closure of $875.75m alternative financing deal for the Nigerian Petroleum Development Company (NPDC)-operated OML 65 through the Funding and Technical Services Agreement with CMES-OMS Petroleum Development Company (CPDC).

A release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, stated that NNPC Chief Financial Officer, Mr. Umar Ajiya, disclosed that the project, which scope cuts across exploration, development, production and provision of facilities with incremental first oil targeted for Q4 2020, was estimated to have potential reserves of 800 million barrels of oil equivalent (mmboe) with an ultimate recoverable reserve of 244 mmboe and cumulative production of 44mmboe from the Abura Main and Abura SE fields.

Mr. Ajiya explained that over the project’s life, it was expected to generate over $6.35bn in taxes and royalties to the Federation to support Government’s medium to long term economic development agenda.

Speaking at the closing meeting with the financing partners in Dubai, United Arab Emirates, Mr. Ajiya, described the contractor financing model as an innovative approach by NPDC to funding its operations in response to the challenging economic environment, saying the approach would fast-track the development of NPDCs under-developed assets.

READ ALSO: NNPC To Begin Full Rehab of All Refineries In January, Says Kyari

He informed that the project was expected to ramp up production at OML 65 from 900barrels per day to 60, 000 barrels per day with average production over field life at 40,000 barrels per day.

Throwing more light on the financing strategy, the CFO explained that the package entailed comprehensive financing solution that addresses the complex issues involved in growing NPDC’s production, minimizes its cost of capital, and maximizes its value preservation, adding that it also strikes a balance between risk and reward which gives investors a rate of return that is commensurate with funding a brownfield project which has significant exploration risk.

He said the expectation was that this collaboration between NPDC and CPDC would translate in real terms to the efficient execution of the scope of activities for the optimal development of the OML 65 Asset within cost and schedule, whilst maximizing value to all the stakeholders.

He said it was projected that the collaboration would enhance operational and financial performance strictly guided by the pre-agreed Key Performance Indicators (KPIs) which remains critical for determining incentive payment due to CPDC.

On CPDC’s right to provide technical services, the CFO listed the field of consideration in this regard to include: drilling and completion services; building capacity and technology transfer; generating employment opportunities for youths with attendant positive multiplier effect on the nation’s economy, among other considerations.

Fire Guts NNPC Ibadan Depot

NNPC To Recover Missing Petrol Worth Over 130m Litres

 

A minor fire incident occurred earlier today at the Ibadan Depot of the Nigerian National Petroleum Corporation (NNPC).

A statement by the Group General Manager, Group Public Affairs Division of the corporation, Mr Ndu Ughamadu, quoted the Managing Director of Nigerian Pipelines and Storage Company (NPSC), Luke Anele, that the incident involved some fuel trucks at the loading bay of the depot.

According to Mr Anele, the fire which was reported around 12:50 pm on Wednesday was immediately brought under control by a team of NPSC firefighters within the precinct of the facility.

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Anele said a team of NPSC experts are on their way to the scene of the incident to ascertain the root cause of the fire and the extent of the damage.

The corporation assured that based on preliminary indicators, loading of petroleum products would resume in the depot in a few hours while highlighting that the incident would not disrupt steady petroleum products supply in Ibadan and its environs.

Redeployments at NPDC Aimed at Optimizing Production – NNPC

NNPC To Recover Missing Petrol Worth Over 130m Litres

 

The Nigerian National Petroleum Corporation (NNPC) has clarified the redeployment of 12 management staff of its flagship upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), saying it was aimed at repositioning the company to meet it production and reserve targets.

Addressing newsmen at the NNPC Towers on Tuesday, the NNPC Chief Operating Officer, Upstream, Mr. Rowland Ewubare, said the reorganization became imperative following the urgent need of the current management to grow the NPDC into a big time Exploration and Production player in the country.

Ewubare stated that for the NPDC to measure up to its peers, it needed a team of professionals that were fit-for-purpose and could deliver on project timelines and budgets.

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He added that the shake-up in the NPDC was a routine exercise that was still ongoing, stressing that other staff that were not suitable for the posts they were currently occupying would be redeployed for national interest.

The NNPC Upstream boss said with the presidential mandate, it was appropriate to have a team of professionals who understood the urgency of the mission, dismissing any insinuation that trailed the exercise.

“The redeployment that just took place in NPDC is a signal to all members of staff that it is no longer business as usual. We are determined, as a management, to meet the four cardinal points of Transparency, Accountability with Performance Excellence (TAPE). Therefore, the redeployment has nothing to do with ethnicity, religion, or any sectional interest. The current NNPC management reflects all the six geo-political zones,” Ewubare enthused.

The COO maintained that NPDC as the E & P arm of the Corporation was strategic to the achievement of the target to grow the nation’s reserves and production to 40billion and 3million barrels per day by 2023, adding that with the President’s clear mandate the management was prepared to rejig personnel to meet the target.

He explained further that upon assumption of office, an evaluation of personnel was carried out which indicated incompetence and compromise on the part of some staff which necessitated the shake-up, adding that they also failed to provide efficient leadership for some of the assets needed to reposition the company.

“I must put on record that the changes would continue until we get the right optimal managerial talents for the management of those critical assets,” Ewubare declared.

NNPC Boss Dismisses Reports Of Pipeline Explosion In Delta

A file photo of NNPC GMD, Mele Kyari.

 

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has dismissed reports of an explosion on the Abura Crude Trunk line operated by the Corporation.

The line, situated at Otu-Jeremi town in Ughelli, Delta State, which is operated by the Nigerian Petroleum Development Company (NPDC), NNPC’s Upstream subsidiary, was reported to have gone up in flames yesterday by a section of the media.

Speaking shortly after teeing off the 2019 NNPC Upstream Golf Tournament in Benin City on Saturday, Mele Kyari described the incident as a mere rupture on one of the Corporation’s pipelines which would be fixed within three days.

“It was not an explosion. It was a rupture on one of our pipelines. Our team of engineers have since moved to the site. In three days, we should be able to fix it. We have since contained the spill coming out of that pipeline. There was no fire anywhere on the pipeline. So there is no cause for alarm,” Mele Kyari stated.

The GMD, who assured that the incident would have no impact on the nation’s power supply, also called on host communities within the area to disregard the rumours and go about their normal activities.

On the Upstream Golf Tournament, he said the Benin Golf Club very important for the NNPC because it availed the staff of the various operations of the Corporation in Benin City the opportunity to work and maintain a healthy lifestyle through the game of golf.

“Our operations require the support of all stakeholders to succeed. We see our relationship with the Benin Golf Club as very crucial in helping us achieve our key targets of growing production, increasing the nation’s reserves and ensuring peace in the Niger Delta,” the GMD maintained.

Earlier in his remarks, the Captain of the Benin Golf Club, Prince Aghatise Erediauwa said NNPC had an age-long relationship with the Club which was in line with its Corporate Social Responsibility (CSR) policy.

“We are very honoured to have the GMD coming down here to tee off this year’s tournament even though he has very tight schedule. We are very pleased and we hope this relationship continues for years to come,” the Captain added.

Over 200 golfers from the country were expected to participate at this year’s tournament, which also saw the commissioning of some projects executed by the NNPC at the Benin Golf Course.

Explosion Rocks Crude Oil Pipeline In Delta

 

A crude trunk line operated by the Nigerian National Petroleum Corporation (NNPC) has exploded at the Abura crude trunk line in Otu-Jeremi town Ughelli South Local Government Area of Delta State.

Channels Television gathered that the oil pipeline exploded on Friday, dumping crude oil into the surroundings of Otu-Jeremi community, causing tension for residents, especially those living metres from the affected line.

It is not clear yet the extent of damage caused by the explosion or if there are casualties.

Sources in the area say security agencies have already taken charge of the scene of the incident, and that firefighters are trying to put out the resulting blaze.

As at the time of this report, NNPC has yet to comment on the incident.

Nigeria Will Comply With OPEC, Non-OPEC Output Cut Deal, Says NNPC Boss

A file photo of NNPC GMD, Mele Kyari.

 

 

The Nigerian government says it is committed to the production adjustments agreed on under the Declaration of Cooperation (DoC) between member countries of the Organisation of the Petroleum Exporting Countries (OPEC) and Non-OPEC Countries.

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) and Nigeria’s Representatives on the OPEC Economic Commission Board, Mr Mele Kyari, said this in a statement on Wednesday in Abuja.

According to him, the country is totally committed to full compliance with the agreement reached by the parties to the DoC at the last Ministerial Meeting of what is known as OPEC Plus, held on July 2 in Vienna, Austria.

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“Right now, we are not only committed to the agreement but we have elevated our attitude towards it to the point of complete devotion to the adjustments and we urge other parties to follow suit,” the OPEC Rep said.

He was optimistic that the momentary and artificially induced bearish trends would naturally correct itself based on the strong market fundamentals which have remained steadfast despite the price slid.

Kyari noted that with a visible steady decline in commercial stock overhang propelled by healthy demand, it is only logical for all advocates of oil price stability like the OPEC Plus allies to comply strictly with the agreed production adjustments.

He explained that with the increasing volatility of the oil market, it has become commonsensical for Nigeria and all other parties to the agreement to entrench an attitude of unwavering devotion to the deal anchored on full and timely conformity to their obligations.