DPR Hands Over OML 98 To NPDC


The Department OF Petroleum Resources (DPR) has handed over the Oil Mining Licence (OML) 98 to the Nigerian Petroleum Development Company (NPDC), the upstream unit of the Nigeria National Petroleum Corporation (NNPC).

This is coming almost one year after Pan Ocean Oil Corporation’s ownership of the asset, along with the assets of five other companies, were revoked for failing to meet up with its financial obligations to the Federal Government.

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Speaking at the handover ceremony in Abuja, the Director of the Department, Mr Sarki Auwalu Said the decision to take over the asset from Pan Ocean was in the best interest of Nigerians.

“For OML 98, the decision was taken in fairness to 200 million people that they trust a company to manage their business and they trust us to ensure that the business is right and it’s optimised.

“The record we have in DPR indicated that the reserve stood at 43 million barrels for oil and we have 20 million barrels for condensate and 393 billion standard cubic feet of gas. We know that before the revocation that there is a legacy debt of oil and gas royalties, concession rentals, gas flaring penalty. This we expect to be settled by the previous venture because it’s a legacy debt.

“And that is our work getting this for the 200 million people,” he stated.

He expressed hope that every other issue involving the revocation will be solved amicably among the joint venture parties to ensure that the asset works.

NPDC Partners Acrete Petroleum To Increase Oil Production

NNPC To Recover Missing Petrol Worth Over 130m LitresThe Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has partnered Accrete Petroleum to increase oil production and reserves.

The partnership is aimed at increasing Nigeria’s oil reserves from three billion barrels to five billion barrels within the next five years.

Data shows that Nigeria is positioned with adequate asset portfolio to achieve an increase in production with more than 10 producing assets currently at its disposal.

NEITI Asks FG To Reclaim NNPC’s 21billion Dollars Unremitted Funds

NEITI Tasks FG To Reclaim NNPC Unremitted FundsThe Nigeria Extractive Industries Transparency Initiative (NEITI), has asked the Federal Government to reclaim accumulated funds disclosed by its independent reports between 2010 and 2014.

The report says, only a part of the over $21 billion unremitted funds by the Nigerian National Petroleum corporation (NNPC) and the Nigerian Petroleum Development Company (NPDC) can jump-start the nation’s economy.

The Executive Secretary of NEITI, Mr Waziri Adio, told journalists in Abuja at its March policy brief, that no action had been taken against NNPC, despite NEITI’s reports.

“NLNG dividends account for $15.8 billion- this is NLNG dividends of over 15 years from the year 2000 to 2014. NLNG had records that they paid this money to NNPC and NNPC does not dispute that they received this money but the money did not go to federation account.”

The extractive industry revenue watchdog stated that there is a lot of money involved; which if returned, can help the nation get out of its current economic situation.

Troops Seize Illegal Bunkering Equipment In Delta Safe Operations

illegal-bunkeringTroops of Sector 1 of the Operation Delta Safe have seized some illegal bunkering equipment along Chanomi North bank pipeline in Burutu Local Government Area of Delta State.

The seizure was made during operations within the area.

Other items recovered include one welding machine, two inserted valves, two shovels, two filing machines, two packets of electrolyte, one hose, bolts, nuts of various sizes and a pumping machine.

Troops while on patrol also discovered militants and kidnappers camp at Rumuekpe.

A statement by the Operation Delta Safe that gave a breakdown of troops operations within the Niger Delta region said that the camp was destroyed.

Also, troops handed over to Ughelli Area Command, two suspects, Julius Egorume and Ese Ohoro, who were arrested earlier in connection with act of vandalism at Nigeria Petroleum Development Company (NPDC) Well Head 12, located between Otu Jeremi and Ukpiovwin communities in Ughelli South Local Government Area of Delta State.

In another location in Ugbemu Village along Oghara Benin Road in Ethiope West Local Government Area of Delta State, troops also intercepted a tipper with registration number Akwa Ibom XA 240 KTD carrying 200 litres locally constructed tanks filled with product suspected to be illegally refined diesel.

Three suspects were arrested alongside the tipper and products undergoing preliminary investigation.

A patrol team at Adeje community along Sapele-Warri Road in Okpe Local Government Area of Delta State intercepted a Volkswagen car with registration number Anambra AH 615 ATN carrying 27 Containers of 25 litre Jerry cans filled with product suspected to be illegally refilled Dual Purpose Kerosene. Suspect, vehicle and product are undergoing preliminary investigation.

Another patrol team intercepted a suspected 15,000 litre tanker truck with registration number Lagos XU 140 BDG loaded with product suspected to be illegally refined diesel and arrested suspects in connection with the truck.

In Warri, troops in conjunction with the Police embarked on patrol to Ehnehre Kolokolo Community in the area used by suspected hoodlums who normally terrorize the Community. They also carried out a Cordon and Search Operations, arresting 36 hoodlums whom have been handed over to the Police for further screening.

According to the statement, one Mrs Chiosa Ossai, a staff of SEPLAT was reportedly kidnapped with her father, Mr Sunday Ossai along Sapele Eku Road in Okpe Local Government Area of Delta State.

Search operations are ongoing by own troops in conjunction with the Nigeria Police, Department of State Service operatives and Vigilante members.

In Ethiope West Local Government Area, a suspected truck used for illegal bunkering with registration number Edo XA 176 EKP was arrested with product behind Otumara Community.

Following intelligence report on possession of illegal firearms by some youths in Onugbo Community, Warri South Local Government Are, cordon and search operations were launched, with six suspects arrested in possession of one pump action gun, one dane gun, 12 live cartridge and two cutlasses.

Operation Delta Safe troops deployed at Uti in Uvwie Local Government Area also intercepted a gang of armed robbers in an ash coloured Toyota Camry car.

The suspects were alleged to have escaped arrest and were chased by a Police patrol team and on sighting own troops, suspects jumped out of the vehicle and fled.

However, one suspect was shot dead.

One cut to size gun, two locally made pistols, nine live cartridges and the vehicle were recovered and handed over to the Police.

Stakeholders Meet To Resolve Niger Delta Crisis

Niger Delta MilitantsMajor stakeholders in the Niger Delta have met to curtail the continued militant attacks on Nigeria’s oil facilities in the region.

The stakeholders converged on Delta State, south-south Nigeria to hold an all-inclusive Niger Delta Coastal States Stakeholders’ Consultative meeting to further curtail the recent tension that has gripped the region.

The convener of the meeting and elder statesman, Dr. Edwin Clark, stressed the importance of the meeting.

He said it would enable concerned parties air their views on issues affecting the security of oil and gas facilities in the oil-rich region.

Dr. Clark further stated that efforts to bring the destruction of pipelines to a halt gave rise to the meeting held at the Petroleum Training Institute (PTI), Effurun which was attended by many delegates from different state of the region, including the Delta State Governor, Dr. Ifeanyi Okowa.

Okowa, Delta State, Knowledge-Based Development
Delta State Governor, Dr. Ifeanyi Okowa

In his remark at the meeting held on Friday, Governor Okowa emphasised the need to work in synergy in the selection of representatives to ensure they speak in one voice at any discussion or dialogue with the Federal Government.

Various participants at the meeting also said it was imperative for the militants to channel their grievances to the government, rather than engaging in the destruction of facilities.

However, they called for the implementation of the recommendations at the last National Conference, the commencement of the Maritime University at Okerenkoko and the adequate funding of the Niger Delta Development Commission (NDDC) among others.

In spite of efforts to stop militants’ activities, two pipelines operated by the Nigerian Petroleum Development Company (NPDC) were attacked by suspected militants on Friday.

The attacks were said to have occurred in Owhrode community which was about 20 kilometres from the venue of the stakeholders’ meeting.

A technical team of the NPDC and security officials have been deployed to the area to prevent the spread of crude to other communities.

Militants Blow Up Two NPDC Pipelines In Delta

Militants, NPDC, Delta, Pipelines Two pipelines operated by the Nigerian Petroleum Development Company (NPDC) have been blown up by suspected militants.

The pipelines are situated in Owhrode community in Udu Local Government Area of Delta State, southwest Nigeria.

No militant group has so far claimed responsibility for the attack.

The attack was said to have occurred about 20 kilometres from the venue of the one-day stakeholders’ meeting of the six coastal states of the Niger Delta region.

The meeting had been convened to proffer solutions to the ongoing attacks on oil installations in the region.

Reports say that a technical team of the NPDC and security officials have been deployed to the area to prevent the spread of crude to other communities.

‘Niger Delta Avengers’ Claims Attacks On Oil Facilities

oil pipeline attacksThe militant group, Niger Delta Avengers (NDA), claims it has attacked two facilities belonging to oil giant, Chevron, near Abiteye flow station, in Delta State, on Sunday morning.

Confirming the attacks to Channels Television, the Delta State Police Public Relations Officer, SP. Celestina Kalu said the Chevron Oil Wells seven and eight were blown up between 1:10 and 1:15 a.m.

Drop In Pressure

In a series of messages on its twitter feed, the group said it has carried out five attacks on the oil facilities in the region since Friday.

These include blowing up a pipeline connected to the NNPC’s Warri Refinery on Friday night.

It adds that two pipelines close to Batan Flow Station run by NPDC, a subsidiary of NNPC in Delta State, were blown up on Saturday night

Chevron has reported a drop in pressure from the Abiteye Crude Oil Pipeline.

The Crude Production has been pushed to its lowest in 30-years owing to attacks in the Niger Delta area.

Last week, NNPC said repairs on damaged facilities coupled with the absence of attacks since June 16 had increased output.

‘Niger Delta Avengers’ Makes U-Turn, States Conditions For Dialogue

Niger Delta, Avengers, militant groupBarely one week after snubbing an invitation to dialogue with the Nigerian government, the Niger Delta Avengers militant group appears to have made a U-turn.

The group, through its spokesperson on Monday, have stated a number of conditions that it expects the Nigerian Government to meet before it would engage in any form of dialogue.

The group is requesting that the home countries of international oil companies operating in the Niger Delta must be involved in the peace process.

It also says the sincerity of the Nigerian government is paramount and would be a major factor that would determine if its call for dialogue would be successful or not.

The group has also warned the government, oil companies and their services firms not to carry out any repairs works and suspend the buying of crude oil from the Niger Delta region pending the creation of “the right atmosphere that will engender genuine dialogue”.

“The high command of the Niger Delta Avengers (NDA) is using this medium to restate that there are no new items to put on the table for dialogue, we only want a genuine attitude and conducive atmosphere that will make us commit to any proposed dialogue and last peace talk.

“We want the federal government to commit members states of the multinational Oil Corporations to commit independent mediators to this proposed dialogue; we believed that it is only such environment that will engender genuine dialogue that will be aimed at setting up a framework for achieving the short, medium and long term demands of the Niger Delta to de-escalating this conflict and bring about a lasting peace.

“We are warning this government of President Muhammadu Buhari not to turn the essence of genuine peace talk and dialogue to political jamboree that is prevailing now where all manner of social media agitators and criminals have being sponsored by the job seeking corrupt political class to save faces before the government of the day.”

The group concludes, “We want a peace with honour not a peace of our time.”

Avengers Dismiss Former Militants’ Calls For Dialogue  

dialogue, niger deltaThe Niger Delta Avengers militant group has rejected calls from former militants to join talks with the government.

The Movement for the Emancipation of the Niger Delta (MEND) on Sunday urged the Avengers to negotiate and halt attacks that have cut Nigeria’s crude output to a 20-year low.

However, the group said that MEND is phased out and that the group had been defunct since participating in the amnesty scheme.

They described call for dialogue by MEND as just some political jargon concocted to confuse the general public.

The Avengers had said that they would not cooperate with government when the idea of negotiations was first mooted last week.

The militant group has claimed responsibility for most of the recent attacks on oil and gas facilities in the Niger Delta region.

Explosion Rocks NPDC Pipeline In Warri, Nigeria’s Niger Delta

Pipeline, explosion, NPDCAn explosion has rocked a pipeline operated by the Nigerian Petroleum Development Company (NPDC) at Sanomi Creek, in the Ogidigben area of Warri South West, Delta State, Nigeria.

A security official and a community leader in the restive Niger Delta told Reuters on Friday that the pipeline exploded around 8 p.m. local time (1900 GMT) on Thursday.

Nobody has claimed responsibility for the blast.

NPDC is a subsidiary of the Nigeria National Petroleum Corporation (NNPC).

The Niger Delta Avengers, a militant group that has claimed responsibility for most of the recent attacks, on Wednesday, rejected an offer to dialogue with the Nigerian government.

Nigeria’s oil output has fallen to a 20-year low due to a series of attacks on oil pipelines in the southern Niger Delta, home to much of the country’s oil and gas wealth, in the last few months.

NNPC To Recover $9.6 billion From Tax Deductions 

nnpcThe Nigerian National Petroleum Cooperation (NNPC) has begun the process of recovering over $7 billion in over-deducted tax benefits from JV Partners on major capital projects.

In a report submitted to President Muhammadu Buhari by its new management detailing its successes so far, the Group Managing Director (GMD) of NNPC, Ibe Kachikwu, had commenced Performance Measurement & Benchmarking as well as Value for Money Review of NNPC and the JV Companies, covering the period of 2008 till 2013.

The report shows that this process may lead to further cost recovery.

The report also said that a reputable International Accounting Firm has been engaged by the NNPC to ascertain the exact amount due government on the Strategic Alliance Contracts entered by NPDC, where up to $2.46 billion of Nigeria’s money is to be recovered.

NNPC also revealed that consequent upon an extensive investigation of the various toxic crude oil for refined products swap contracts, a total sum of $420 million has so far been reconciled in favour of NNPC and is now due for recovery from the legacy OPA/SWAP contracts.

Out of the reconciled amount, the sum of $277 million has been recovered in lieu of products and the recovery effort is still ongoing.

According to the report, the GMD of NNPC is committed to continued review of all existing contracts and addressing the ones that are not favourable to the Corporation.

It was noted that significant cost reductions are also expected to ensure the Corporation remains profitable in the prevailing low crude oil price regime.

He added that progress is being made towards bringing back the nation’s refineries to full production, noting that the management of the NNPC is working to ensure that it happens before the end of 2015.

The report stated that if the refineries resume full production, it is expected to achieve an annual savings of about $1billion worth of foreign exchange from fuel import substitution, and additional total savings of over $500 million annually will be made from the petrochemical products of Kaduna Refinery and Petrochemical Company.

NNPC also disclosed that efforts at repositioning the NNPC have started yielding results on the nation’s economy.

According to its content, gas supply to the power plants that had hitherto been handicapped by the supply of much-needed gas has improved significantly from about 630 to 861 million standard cubic feet per day, which has resulted in a more steady power supply being witnessed in the country.

Indeed, the report revealed that gas supply for power and peak generation have in recent times reached a historical height of 876 million standard cubic feet per day and 4,782 Mega Watts respectively.

House of Reps Passes Petroleum Industry Bill

Petroleum After several attempts, the House of Representatives has considered the report of its Adhoc Committee on the Petroleum Industry Bill and passed the bill.

The bill, which seeks to create a conducive business environment for petroleum operations and enhance exploration of petroleum resources in the country, has been before the National Assembly in different forms since 2008.

The lawmakers also passed 14 bills it received from the Senate on what may turn out to be the final plenary session of the 7th House of Representatives.

The House of Representatives, in May, commenced the clause-by-clause consideration of the Petroleum Industry Bill.

Oil workers have, in recent times, accused the government and the international oil companies of non-passage of the Petroleum Industry Bill (PIB).