NNPC, IOC Sign Cash-Call Exit Agreement

NNPC, IOC, Cash-Call AgreementThe Nigerian National Petroleum Corporation (NNPC) and International Oil Companies (IOC) have signed an agreement to exit the Joint Venture Cash-Call Arrangement.

This brings to an end, the NNPC’s counterpart funding for 60% equity shareholding it owns in various oil and gas fields in international and indigenous oil firms.

The agreement was signed on Thursday in Abuja between the national oil company and Shell Petroleum, Nigeria Agip Oil, Total, Chevron and Exxon Mobil.

It is coming barely 24 hours after President Muhammadu Buhari announced that the Federal Government would cut provisions for the Joint Venture Cash-Calls, starting from January 2017.

The Minister of State for Petroleum, Dr. Ibe Kachikwu, noted that a governance process would be set up with immediate effect, to manage a new funding mechanism that would provide for cost recovery.

The NNPC Group Managing Director, Maikanti Baru, on his part, explained that the exit has set the stage for a review of the cash-call agreement.

He added that it has also created an opportunity for the adoption of a more sustainable funding arrangement with international oil companies’ joint venture operations.

Cash-calls is a counterpart funding the NNPC pays annually for the 60% equity shareholding it owns in various oil and gas fields operated by IOC and indigenous oil firms.

In 2016, underfunding for cash-calls amounted to $2.5 billion, bringing the national oil firm’s total cash-call arrears over the years to $8.5 billion.

Niger Delta Avengers: Britain Cautions FG Over Military Option

Niger Delta Avengers, Niger Delta, MILITARY OPTIONThe British High Commissioner to Nigeria, Paul Arkwright, has cautioned the federal government over military option as a measure to tackle the resurgence of militancy and other criminality in the Niger Delta region.

The British High Commissioner was speaking in Abeokuta, the Ogun State capital, shortly after his courtesy visit to the Alake of Egbaland, Oba Adedotun Gbadebo.

He also advocated for dialogue as part of a comprehensive approach that should be adopted by Nigerian government to address the situation, adding that force alone may not bring about a lasting solution to the Niger Delta issue.

The Niger Delta Avengers (NDA), an armed militant group, and other violent youth organisations have been launching violent attacks on oil and gas facilities in the Niger Delta area.

Early on Friday, the Niger Delta Avengers militant group claimed three new attacks in the Niger Delta region.

The group said through its Twitter account that it had blown up a pipeline in Bayelsa State owned by Italy’s ENI, hours after attacks on another ENI pipeline as well as one belonging to Shell Petroleum Development Company of Nigeria Ltd (SPDC).

This is sequel to several other attacks they have carried out in recent weeks resulting in international oil companies shutting down their facilities and consequently a drop in the country’s revenue from oil.

The action has forced the federal government to respond by deploying troops to the area’s creeks to stop the alleged destruction of national economic assets and spate of sabotage being perpetrated there by the region’s restive youths.

Niger Delta Avengers Militant Group Claims Attacks In Bayelsa

Gunmen-Militants-insurgentsThe Niger Delta Avengers militant group has claimed three new attacks in the Niger Delta region.

Early on Friday, the group said through its Twitter account that it had blown up a pipeline in Bayelsa State owned by Italy’s ENI, hours after attacks on another ENI pipeline as well as one belonging to Shell Petroleum Development Company of Nigeria Ltd (SPDC).

The group said on a Twitter account it uses to claim attacks that it has blown up the Brass to Tebidaba crude oil line in Bayelsa.

The pipeline is used to transport Brass River crude, which was placed under force majeure after an attack in May, to an export terminal.

Hours earlier, the group said it blew up the Ogboinbiri-Tebidaba and Clough creek-Tebidaba pipelines in Bayelsa and a Shell forcados export pipeline.

That grade has been under force majeure since an attack on a sub-sea pipeline in February.

ENI has not confirmed or denied the attacks, but a spokesman for the SPDC, which operates the forcados line, says the company is “investigating reports of an attack on its pipeline in the western Niger Delta.

Youths, Women Shut Down Shell Facilities In Bayelsa

ShellSome youths and women from Nembe communities in Nembe Local Government Area of Bayelsa State, on Friday shut down two flow stations belonging to Shell Petroleum Development Company (SPDC) for about two hours.

The two facilities, located along the Nembe creek 1 and 2 and said to produce over 600,000 barrels of crude oil per day, were invaded by the agitated youths and switched off at about 10am.

The protesting Nembe indigenes, armed with placards with various inscriptions portraying their grievances, accused the SPDC of neglect and disregard for a signed Global Memorandum of Understanding (GMoU).

They alleged that despite the peaceful disposition of the Nembe people to the company’s exploration activities for over 50 years, the SPDC, according to them, has failed to provide the promised electricity, water and good health facilities for the community.

The protesters were, however, dispersed with the intervention of security personnel and after officials of the SPDC met with some of the community leaders.

They agreed to meet again next week at the SPDC office in the Rivers State capital, Port Harcourt to iron out the areas of disagreement.

Shell Threatens Operation Shut Down Due To Increasing Oil Theft

Nigeria’s joint venture partner in the production of crude, Shell Production and Development Company (SDPC) has threatened to shut down its Nember creek trunk line owing to the increased cases of oil theft.

According to the country chairman of SPDC; Mr Mutiu Sumonu, the volume being stolen is in the excess of over 60,000 barrels per day, forcing the company to often shut down daily operation.

Apart from the economic loss to the country, the level of environmental devastation is also raising to a worrisome height.

Between 22nd and 25th February 2013, the company says 12 flow stations  producing into the NCTL was shut down three times due to oil theft and consequently resulting in the deferment of 150,000bpd .

The illegal activity of these oil thieves which is without regards for the impact of their criminal activity on the people have caused what can be referred to as an environmental tragedy for the inhabitants of these regions and their generations to come.

Krakama and Awoba communities have the highest cases of oil theft and illegal refineries.

NUPENG suspends strike over subsidy payment

The Federal Government and Labour on Thursday night suspended the one-week strike by the National Union of Petroleum and Natural Gas Workers (NUPENG) in Abuja.

The union subsequently directed tanker drivers to resume lifting and suspend the planned nationwide strike.

In a communique signed by all parties and read by the minister of labour chief emeka wogu, it was resolved that all the issues raised over subsidy payments, non payment of salaries among others will be looked into and reviewed in 2weeks.

The communique said the meeting between government, NUPENG, NLC, depot owners and oil marketers was fruitful, adding that the government and the unions agreed to work together towards finding a solution to all the issues in dispute.

They also agreed that those accused of fuel subsidy fraud should submit themselves to the ongoing verification exercise, while the meeting confirmed that the Federal Government had been paying all verified claims and would continue to pay all claims so verified.

Two sub-committees were set up to look into the issues concerning unfair labour practices in the Royal Dutch Shell Petroleum and the penalty clauses in the Petroleum Products Price and Regulation Agency (PPPRA) rules.

The Federal Government also agreed to provide a platform for government, Labour and stakeholders to discuss efforts being made in the provision of infrastructure and rehabilitation of the refineries with a view to finding a way forward. It also agreed on a continuous engagement between government and the unions.

Confirming the call off, National President of NUPENG, Achese Igwe said “The strike action has been called off… Within two weeks we will come back again, to sit down to look at the issues again,”.

He directed tanker drivers to resume the distribution of petroleum products to Abuja which has been hit with scarcity since last week

.

“We have also directed immediately that our tanker drivers should go back to work and make sure product is being lifted into Abuja” he said.