Tag: Crude Oil

  • FG is determined to end crude oil theft – Sylva

    FG is determined to end crude oil theft – Sylva

    The Federal Government says it is determined to stop the economic devastation occasioned by the activities of illegal refiners, pipeline vandalism and crude oil theft in the country.

    The Minister of State Petroleum Resources, Chief Timipre Sylva, said this on Wednesday at Bonny Island, Rivers, while addressing officers of the 146 Battalion and other security agencies represented in the fight against oil theft.

    Sylva was on an assessment tour on some illegal refinery sites at the Niger Delta region creek with the Chief of Defence Staff, Maj.- Gen. Lucky Irabor, and Group Managing Director, NNPC, Malam Mele Kyari, among other dignitaries.

    Sylva said President Muhammadu Buhari had directed that the illegal activities must stop and had called for an assessment of the devastation occasioned by the activities of the criminals.

    Addressing officers of the 146 Battalion, Sylva said, “you are here on a mission, I commend you for all the good work you have done our nation depends on this asset to survive , oil and gas is one of the major sustaining asset of the country.

    “Unfortunately, we have had a lot of insecurity around oil facilities and pipelines, this can no.longer be condoned. Mr President has directed that this must stop.

    “You are here as gallant officers to protect these facilities, hence forth we will be working closely with you to ensure that there is zero loss to our production.

    “You have done so well so far as the Chief of Defence Staff said, there is still ground to cover, so let us all work together and protect these national assets for the good of all,” the minister said.

    The minister said the final solution to the problem required three elements which included involvement of the community, the government security and the operating companies.

    He said the government was determined to stop it because it could not afford the continuation of the insecurity in the industry adding that the criminals have their days numbered.

    “We are here to reclaim this industry for the country because the country has lost so much from the activities of these criminals and government can no longer afford these activities,” the minister said.

    Also speaking, the Chief of Defence Staff, Maj.-Gen.Lucky Irabor, said the assessment became necessary because of the economic loses being witnessed in the oil and gas sector.

    Irabor said the economic losses were so huge and currently the economy of the country was bleeding.

    “We urge you to revert the trend,” he charged the 146 battalion.

    According to the CDS, our drive is to look at the value chain within the oil and gas space and get the actual criminals and those supporting them.

  • Ukraine crisis: Crude oil hits $100 per barrel

    Ukraine crisis: Crude oil hits $100 per barrel

    At last, the price of crude oil (Brent) has hit the roof at $100 per barrel in the international market, due mainly to the ongoing Ukraine crisis.

    The price of oil had been predicted to rise to $100 per barrel because of a sustainable increase in demand after the Coronavirus pandemic lockdown, but it did not.

    Nevertheless, there were indications that the prices of other crudes, including Nigeria’s Bonny Light, currently hovering at $96.60 per barrel, will continue to rise.

  • NNPC hits $224.29 million proceeds from export of crude oil, gas in August 2021

    NNPC hits $224.29 million proceeds from export of crude oil, gas in August 2021

    The Nigerian National Petroleum Company (NNPC) Limited recorded $224.29million receipt from crude oil and gas export in August 2021 as against $191.26million in July 2021.

    This was contained in a release issued and signed by Garba Deen Muhammad
    Group General Manager, Group Public Affairs of NNPC.

    Breakdown:

    A breakdown of the figures captured in the August 2021 NNPC Monthly Financial and Operations Report (MFOR) indicates that export of crude oil amounted to $7.77million while gas and miscellaneous receipts stood at $65.26 million and $151.26million respectively.

    Total crude oil and gas export receipt for the period of August 2020 to August 2021 stood at $1.84billion.

    In the Gas Sector, a total of 233.57billion cubic feet (bcf) of natural gas was produced in the month of August 2021 translating to an average daily production of 7,534.67million standard cubic feet per day (mmscfd).

    For the period of August 2020 to August 2021, a total of 2,890.67bcf of gas was produced representing an average daily production of 7,303.61mmscfd during the period.

    Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 57.51%, 20.88% and 21.62% respectively to the total national gas production.

    The report also indicates that out of the 208.64bcf of gas supplied in August 2021, a total of 131.35bcf was commercialized, consisting of 40.22bcf and 91.13bcf for the domestic and export markets respectively.
    This translates to an average total supply of 1,297.54mmscfd to the domestic market and 2,939.31mmscfd of gas to the export market for the month.

    Total gas supply for the period of August 2020 to August 2021 stood at 2,792.28bcf out of which 537.51bcf and 1,245.93bcf were commercialized for the domestic and export markets respectively.

    In the Downstream Sector, a total of 1.532billion litres of white products were sold and distributed by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, in the month of August 2021.

    A breakdown of the figure indicates that petrol accounted for 99% of total sales, while Automotive Gas Oil (AGO), also known as diesel, accounted for the rest.

    Total sale of white products for the period of August 2020 to August 2021 stood at 20.032billion with petrol accounting for 99.81%.

    In terms of value, a total sum of ₦203.43billion was made on the sale of white products by PPMC in the month of August 2021.

    Total revenues generated from the sales of white products for the period of August 2020 to August 2021 stood at ₦2.619trillion with petrol contributing about 99.76% of the total sales with a value of ₦2.613trillion.

    In August 2021, 21 pipeline points were vandalized representing 50% decrease from the 42 points recorded in July 2021.
    According to the report, Port Harcourt area accounted for 10%, while Mosimi Area accounted for 90% of the vandalized points.

    The August 2021 MFOR, the 73rd in the series, highlights NNPC’s activities for the period of August 2020 to August 2021.

    In line with the Company’s commitment to the principles of accountability, transparency and performance excellence, the NNPC Ltd. has continued to sustain effective communication with stakeholders through the publication of the MFOR on its website, in national dailies, and on independent online news platforms.

  • Okowa seeks legislative backings to contain crude oil theft

    Okowa seeks legislative backings to contain crude oil theft

    Gov. Ifeanyi Okowa of Delta on Tuesday forwarded an executive Bill to the State House of Assembly for consideration of a Law to provide for the forfeiture of property used for illegal storage of crude oil.

    The bill is contained in a letter read during plenary of the Assembly in Asaba by the Speaker of the State House of Assembly, Chief Sherriff Oborevwori.

    The Governor said: “I wish to intimate the House of the State Government’s desire to provide a Bill for a Law for the Delta State Forfeiture Law and other matters connected therewith.

    “Despite ongoing amnesty and other measures taken to address crude oil theft in the Niger-Delta region in addition to concerted efforts of the Federal and Oil-producing States in securing our pipelines, oil production challenges appear unabated as pipeline sabotage has continued to result in crude oil loses.”

    Okowa also stated that the losses and high cost of operation had hampered the nation’s earnings from oil which invariably is affecting the States, Delta inclusive.

    “Regrettably, experience has shown that the illegal Storage of crude oil are perpetuated using property such as premises, caravans, vehicles, vessels, aircraft and other forms of of containers.

    “It has therefore become necessary to nip this ugly trend in the bud by ensuring that those who use or provide their property to commit an offence are held liable.

    “For the purpose of this law, a property is said to have been used to commit such offence where an element of the acts which constitutes the offence took place on the property, or where the property has been used for the storage of crude oil.

    “In view of the socio-economic benefit of the Bill to the State, therefore, I wish to forward for the consideration of and passage of into law by the House, a Bill for a Law for the Delta State Forfeiture Law 2021 and any other matters connected therewith,” he said.

    Also at Tuesday’s plenary, the House received another bill from the governor for a Law to regulate the Manufacture and Use of Deep Canoes (Cotonou Boats) in Delta State and for purposes connected therewith.

    Consequently, the Majority Leader of the Assembly, Mr Ferguson Onwo, moved a motion for the Assembly to receive both bills as proposed.

    The motion, which was unanimously adopted by the Assembly when put to a voice vote by the Speaker, was seconded by the member representing Uvwie constituency in the state Assembly, Mr Solomon Ighrakpata.

  • Budget debate: Reps demand upward review of N50bn hazard allowance for doctors, crude oil production

    Budget debate: Reps demand upward review of N50bn hazard allowance for doctors, crude oil production

    …wants extra N500bn for works

    … say Nigeria should have special allocation for road maintenance

    …seek downward review of N6trn deficit, borrowings

    Members of the House of Representatives on Wednesday demanded for appropriate use of funds as well as proposed domestic and external borrowings in the 2022 Appropriation bill being considered by the House and the Senate.

    The lawmakers including, Hon Mohammed Wudil, Hon. Luke Onofiok, Minority Leader, Hon. Ndudi Elumelu, among others gave the charge during the debate on the general principles of the 2022 Appropriation bill.

    Hon Wudil in his remarks complained of the bad road network in Nigeria and advised that Federal Government should take a cue from Zambia that allocates $1million in its annual budget for road maintenance.

    According to him, not too long ago tanker drivers blocked Niger State for two weeks complaining of poor road networks.

    In his presentation, Hon. Onofiok who applauded the N10 billion increase in the allocation for judicial officers, called for upward review of the proposed N50 billion hazard allowance for medical doctors as part of measures toward reversing exodus of medical personnel to other countries amidst the lingering pandemic.

    Hon. Onofiok said: “Following from the above, there are plausible recommendations by the FG in the 2022 proposals which my constituents have asked me to share and then appreciate and look at it and commend it. One of them is the provision of about 50 billion for hazard allowance for medical personnel. We would recall that as part of the issues that led the medical personnel to go on strike is the hazard allowances which were not paid and even as of now those hazard allowances are quite very minimal. We commend this effort of the Federal Government to capture this. I believe that this would stem the tide of industrial action in the health sector in 2022.

    “It is also commendable in the sense that we are still fighting COVID 19, we know that the Federal Government had paid for about three months Covid-19 allowance, and after that those allowances have not been paid. We know what are medical personnel are exposed to daily so there is need for them for to be paid these allowance so it can be a morale booster.
    “We have had a lot of brain drain in the last few years, because our eggheads have been pushed to go into other climes because of the challenges we have here.

    So while we are commending Mr. President for this, there is need for us to up that hazard allowance from N5,000 which has been for over 20 years to something that will boost the morale of those medical personnel. So this is commendable but we can equally look at how we can increase the hazard allowance for medical personnel.

    He also commended Mr. President for approving First Line Charge for National Agency for Science and Engineering Infrastructure. The world is going technology and we need to be in pace with how the world is moving and I want to commend Mr. President and commend the FEC for looking at this perspective to try to have a statutory transfer for the agency.

    “The investment in Defence against the backdrop of the insecurity we are facing today is quite commendable, but what we would urge is that let there be a judicial use of these finances. We see in reportage every of our security personnel being hacked down by bandits in numbers. The question is what have we done to take care of their families and boost their morale. I believe the much funding in the 2022 proposed budget would take care of these issues.

    “Before now we have been crying for increased and improved welfare for Judicial officer and we have asked the Federal Government to try to increase the Statutory Transfer to the National Judicial Council so our Judges and Judicial Officers can be taken care of, our Courts can be equipped and then we can make provision for technology in our courts so that we can be at par with others and adopt best practices and be at par with advanced democracies that we see.

    The increase of statutory transfer by 10 billion to the National Judicial Council to take up the judiciary is quite commendable.

    On the debt serving, Hon. Onofiok who observed that the sum of N3.9 trillion for debt servicing representing about 25 percent of the whole budget was worrisome, tasked Federal Government on the need to review it.

    “Another source of concern is that the proposal before us has a deficit of N6.2 trillion and government is proposing new borrowings to finance this deficit. What this implies is that then total public debt of Nigeria is expected to rise to N5 trillion in 2022 fiscal year. This is worrisome not only for today but generations unborn and the future of Nigeria.

    “Let us do what we can to try to reduce the deficit and how we can reduce borrowing. Now to the next point on the issue so borrowing. There is nothing wrong with borrowing provided we borrow and put it for production not for consumption. So as we begin to look at it let us take the future generations of Nigeria into consideration while we get to borrow and make sure the borrowing are being put into productive ventures.

    “While we put the money borrowed to infrastructure three clear things come to mind. We have looked at security. We need to invest in power. Let us borrow to invest in power and roads. We have road challenges across the country. Let me use for instance Mr. Speaker, the Calabar-Itu road that area is being cut-off. People spend 8 hours on the road. And we have seen something less than a billion naira allotted to that road in the different lots that have been given. That is quite inadequate. We have to invest in our road and in our public transportation.

    “We are talking about recoveries of loot and misappropriated funds, if we apply these it can help in reducing our deficits and borrowings. I don’t know whether these loots are still in the stomach of snakes or rats or animals. But if we apply these loots it would be to the better of the country.

    “Finally the pegging of oil price at $57 per barrel is totally quite very low. It is not sustainable. Permit to add that in the last three years since 2018, we have had a year high at an average of about $60 per barrel. So we should be advocating that there should be the upping of the pegging of $57 per barrel to $60 per barrel.

    “In 2018, the year high was $77.41 cents per barrel. 2019 it was $66.24 cents. In 2020 it was $63.23 cent. As of today, the Brent is $83.27 cents. Bonny bright is $82.30 cents. So we can have an average of 60 dollars per barrel and that would be sustainable for us.

    “The target of 13 percent inflation is not feasible, but what is achievable is that we should try to have a mechanism that would address the cost of food, cooking gas, and electricity bill. In this case, there should be provision for meters and we should make sure we cater for Nigerians in this regard,” he noted.

    In his lead debate, Majority Leader, Hon. Alhassan Doguwa who solicited the support of the House towards ensuring the timely passage of the 2022 Appropriation bill, applauded the Presidency for ongoing efforts toward sustaining the January-December budget cycle and improved infrastructure.

    Also, , the Minority Leader, Hon. Ndudi Elumelu hammered the need for the House to ensure that all the standing committees collate the list of erring Ministries, Departments and Agencies (MDAs) that fail to implement the capital projects despite the release of about 70 percent fund in the 2020 Appropriation Act.

    To this end, he urged the House to allocate zero allocations to all erring MDAs, and allocate budget for the establishment of various institutions such as Universities, Polytechnics and College of Educations, and other productive sectors of the nation’s economy.

    In his remarks, Deputy Chief Whip, Hon. Nkiruika Onyejeocha who argued that the present administration will be remembered for full implementation of the budget against the 30 percent budget implementation in the previous administrations.

    Other lawmakers, who spoke during the debate, demanded for upward review of what is allocated to works and increase it by N500bn, they also urged MDAs to ensure implementation of budget to reflect gender responsive programmes, review procurement processes with a view to avoid late implementation of the budget, avoid diversion of funds released and ensure prudence during the implementation of the budget.

    They also stressed the need for Standing Committees to investigate how money allocated to various intervention programmes are utilized, and the need for upward review of proposed fund for road projects adding that the Ministry of Works is currently having N640 billion outstanding certificate against the N280 billion proposed for roads in the 2022 budget estimates, adding that we need about N500 billion for the road sector.

    The lawmakers also tasked the House on the need to ensure adequate funding of education (3.6% of the 2022 budget), health and research, among others.

    They also underscored the need to put necessary measures in place to ensure recovery of debts owed by about 77 oil companies owing the country should be looked into with the view to recover the fund to improve the economy, adding that necessary sanctions should be put in place to serve as deterrent.

    While ruling, the Speaker, Hon. Femi Gbajabiamila revealed that the debate on the 2022 Appropriation bill will continue tomorrow.

  • Senate faults NNPC over under-remittance of N3.8trn from crude oil sales

    Senate faults NNPC over under-remittance of N3.8trn from crude oil sales

    The Senate on Wednesday at plenary faulted the Nigerian National Petroleum Corporation (NNPC) over alleged under-remittance of N3.8 trillion revenue from domestic crude oil sales to the Federation Account between January and December 2015.

    It therefore urged the corporation to desist from further deduction at source, as the practice contravened Section 162(1) of the 1999 Constitution (as amended).

    It also mandated the Federation Accounts Allocation Committee (FAAC) or any other approving authority to urgently approve agreed percentage which should be allocated to NNPC monthly, as operational cost to prevent its operations from been affected adversely.

    Senate’s decision was sequel to the adoption of 59 recommendations contained in the report of its Committee on Public Accounts on the Annual report of the Auditor-General for the Federation on the Accounts of the Federation for the year ended Dec. 31, 2015.

    Senate also noted that the outstanding revenue collection from Solid Minerals not remitted to the Federation Account, but kept in an account maintained by the Central Bank of Nigeria (CBN) in contravention of provisions of Section 162(1) of the 1999 Constitution as amended.

    It urged FAAC to fix a percentage to be allocated to Mining and Cadastral Office as cost of collection, as was currently applicable to Nigeria Custom Service (NCS) seven per cent, Department of Petroleum Resource’s (DPR ) four per cent and FIRS four per cent of non-oil revenue.

    On unretired advances involving 39 Ministries, Departments and Agencies (MDAs) to the tune of N2.2 billion, the upper chamber demanded the sanctioning of Accounting Officers of the affected MDAs in accordance with the provision of Rule 3124 of Financial Regulations.

    It gave the Accountant-General of the Federation, Ahmed Idris, a deadline of 90 days to identify and sanction officers responsible for mismanagement of public funds to the tune of N54.1 billion as exchange loss on external loans.

    “The Accountant General is expected to report back to the Senate Committee on Public Accounts within 90 days,” it asked.

    In addition, the Senate also gave another 90 days timeline to the Office of the Accountant-General of the Federation to set in motion, process of recovery of Internal Loans made from other Funds which amounted to N390.2 billion and to be paid back into the Special Funds Accounts.

    It said the source of the loans are from the Development of Natural Resources Account, Stabilisation Fund Account, 25 per cent Husked Brown Rice Levy, One per cent Comprehensive Supervision Scheme (CISS) Pool Levy, 15 per cent Wheat Grain Levy, and 10 per cent Rice Levy.

    It further directed the Accountant-General of the Federation to recover the sum of N378,879,674.99 tax revenue from Webb Fontaine Ltd and remit same to the Federal Inland Revenue Service within six months.

    The upper chamber also directed the Nigerian Posts Authority (NPA) to refund the sum of 37.6 million dollars to the federal government coffers due to lack of diligence in the review of NPA’s charges on a contract of Towage services.

    It mandated the Economic and Financial Crimes Commission (EFCC) to subject the Accounting Officers to investigation, in accordance with Rule 3112 (I and II) of the Financial Regulations.

    On other funds diverted by the NPA, the Senate demanded a refund of various sums in local and foreign currencies to appropriate quarters

    On financial infractions by the Federal Ministry of Petroleum Resources, the Senate called for the sanction of the Permanent Secretary, in accordance with Rule 3129 of the Financial Regulations and Public Service Rules 030402 over the diversion of funds from the Capital Projects Funds for purchase of Sallah/Christians welfare package to staff of the Ministry.

    The upper chamber queried the sums of N46,645,000.00 and N56,418,135.00 for the printing of the Ministry’s letter-headed paper, and demanded that the sum be recovered and paid back to the treasury.

    The various infractions, Senate noted, were in violation of Rule 3117.

    It called on the Economic and Financial Crimes Commission(EFCC) to prosecute within 30 days, the Officers in the Ministry of Youths and Sports (National Sports Commission) who certified the payment of N37,185,000.00 from the Capital Vote allocation.

    It also directed that N2,695,985.00 be recovered from the emolument of the Director-General of the Small Medium Enterprises Development Agency (SMEDAN), who authorised that the sum be paid to individuals instead of a company’s account.

    Besides, it called on the EFCC to prosecute within 30 days, officers of the Nigeria Bulk Electricity Trading PLC (NBET) who were behind the non-remittance of accrued interest on investment in Nigeria Treasury Bills.

  • Despite having crude oil, Niger Deltans treated like slaves – Clark

    Despite having crude oil, Niger Deltans treated like slaves – Clark

    …insists we must restructure Nigeria

    …I am not leaving Nigeria for anybody

    …oil blocs are owned only by northern and Western people

    …says let’s go back to 1963 constitution

    …forget constitution amendment

    …I can’t make a statement on Delta State

    Frontline Niger Delta elder statesman, Chief Edwin Clark has said Niger Deltans are being treated like slaves despite having the crude oil Nigeria boasts of in the region.

    TheNewsGuru.com (TNG) reports Clark in a national television program took a swipe at the lopsided political arrangements in Nigeria, saying Niger Delta, laying the golden eggs have been relegated to the background.

    Clark without mincing words said: “all the oil blocs are owned by Northern and Western people of the country and that is why I say they treat us like second class citizens.

    “If you don’t have a northern person you can’t get anything from the oil sector in our region or you must be an APC member or nothing for you”.

    On constitution amendment, the elder statesman said: “we should forget it and go back to the Nasir El-rufai report and 1963 Constitution for good.

    On Delta State politics, he said, “I am a national citizen, I can’t make a statement on it now and you know that I have Ijaw, Urhobo and Isoko blood flowing in my body and that is what makes me thick”.

  • PIB: Crude oil will soon lose economic relevance in Nigeria – Sylva

    PIB: Crude oil will soon lose economic relevance in Nigeria – Sylva

    …Says FG has no plans to scrap NNPC
    …We’ll pass it in record time – Lawan
    …This time we’ll be thorough – Gbajabiamila
    Minister of State for Petroleum, Timipre Sylva, on Monday said Nigeria’s mainstay, the crude oil would soon become irrelevant as the resource is fast losing its economic value to most countries.
    The minister also quickly explained that the Federal Government would not scrap the Nigeria National Petroleum Corporation (NNPC), as earlier reported by some sections of the media.
    Sykva explained that the government was only planning to commercialize the Corporation to make it more viable and profit oriented.
    The minister made this clarification during an interactive session with the leadership of the National Assembly on the objectives of the bill, which has been submitted to the Senate and the House of Representatives for processing into law.
    The Senate will make a presentation of the bill in plenary today for processing.
    Recall that PIB adjudged the oldest bill in Nigeria has been in the assembly for passage in the last two decades, as the lack of the political will to pass it has made it stagnant.
    The Minister appealed to the National Assembly members to ensure expeditious passage of the bill, which was targeted at helping to revolutionize the nations economy in the last days of crude oil as a major source of revenue.
    He said: “let me just say that we all collectively today, have a date with history. The PIB like the Speaker said, is one of the most import pieces of legislation that this country needs now.
    “It has really taken a long time in coming. The process for amending the laws around our oil industry started almost 20 years ago in the year 2000. In 2009 a draft of the PIB was submitted to the National Assembly.
    “In 2012, another draft was submitted. In 2018, we all are aware of what happened with the PIB and today, 2020 we are for some reason, still discussing the PIB.
    “It is for good reason, the PIB happens to be at the core of the Nigerian economy and if you are in the process of making some changes in that core you know those changes will impact on various other sectors of the economy that is why we need to really take the bill seriously.
    “So, here we are at 20th year of the attempt to change but for me it is also a good signal because one of the things investors want to look at when they are coming to the environment to invest is the dependability of the legal framework.
    “And since this is at the foundation of their investment, we must also make it clear to them that in Nigeria, laws do not change easily and that way investors can plan.
    “Today, there is a forecast in the oil industry sector that oil is going to be playing less and less a role in the global energy usage. Some begin to think that in ten years the world’s dependence on oil would have reduced to 50%.
    “At OPEC, the projection is in 2040, that is in 20 years from now, the world’s dependence on oil would have reduced to 50%. So which ever way you look at, it appears that the days of oil are numbered.
    “I always tell people that coal did not finish, the deposits of coal did not run out before the world moved away from coal. Today the world is talking about alternative forms of energy, and we must also move with that trend but our focus should be in ensuring that we take advantage of our resources while it matters”.
    Meanwhile, the leadership of the National Assembly has said that, it would give the Petroleum Industry Bill (PIB) expeditious passage, stressing however, that the lawmakers would not sacrifice thoroughness at the altar of speed.
    In his opening remarks, the President of the Senate, Ahmad Lawan, said that though the PIB seemed to be jinxed since 2007 and 2019, the fresh effort would surely be successfully completed.
    “We want to break the jinx and we shall break it with the latest bill forwarded to us by the executive arm of government ” he said .
    He however, noted that it was difficult to put a time frame on when the the jinx would be broken through the passage of the bill, saying that details of its content must be understood and thoroughly considered.
    Also speaking, the Speaker of the House of Representatives, Femi Gbajabiamila, said that though the bill would be considered and passed speedily, it must be subjected to thorough scrutiny.
    “Oil represents the lifewire of our Nation’s economy, making the PIB the most important piece of legislation that will come out of the 9th National Assembly in months or years to come.
    “We will pass the bill speedily but not sacrifice thoroughness at the alter of Speed. We have assembled a crack team of legislators who are versed in the workings of the industry”, he said.
  • NNPC earns $378.42m from crude oil & gas export in June – Report

    NNPC earns $378.42m from crude oil & gas export in June – Report

    The Nigerian National Petroleum Corporation (NNPC) has announced a total crude oil and gas export earnings of $378.42 million in June, as against $133.16 million it posted in May 2020.

    The corporation disclosed this in its June Monthly Financial and Operations Report (MFOR) released on Sunday in Abuja.

    It said that the amount signalled a marked improvement in revenue earnings, following the ease of the COVID-19 pandemic global lockdown and the subsequent increased demand and firmer prices for the black gold in the international market.

    The report indicated that petroleum receipts for the month reflected crude oil earnings of $230.65million, with gas and miscellaneous proceeds standing at $75.97million and $71.80million dollars, respectively.

    It puts the total crude oil and gas export earnings for the period of June 2019 to June 2020 at $4.60 billion.

    On petroleum products supply in the downstream sector, the report said that 1.34 billion litres of white products were distributed and sold across the country by NNPC’s Downstream subsidiary, the Petroleum Products Marketing Company (PPMC).

    It noted that the figure was significantly higher than the 950.67million litres of white products sold and distributed in May 2020.

    “Again, an apparent reflection of the gradual ease of the lockdown in the country and the picking up of business activities,” it said.

    A breakdown of the June 2020 figures indicated that over 1.3billion litres of Premium Motor Spirit (PMS) also know as petrol, 5.10million litres of Automotive Gas Oil (AGO) and 1.65million litres of Dual Purpose Kerosene (DPK), were sold and distributed during the period.

    “White products sale for the period from June 2019 to June 2020, stood at over 19.104billion litres, with PMS accounting for over 18.9billion litres or 99.36 per cent.

    “In monetary value terms, the above volumes translated to a total sale of ₦134.22billion of white products by PPMC in June, compared to ₦92.58billion sales in May.

    “Total revenues recorded from the sales of white products for the period from June 2019 to June 2020 stood at over ₦2.267trillion, where PMS contributed about 99.12 per cent of the total sales, with a value of over ₦2.247trillion,” the report revealed.

    In the month under review, the report further noted that 33 pipeline points were vandalised, representing about 11 per cent decrease from the 37 points recorded in May 2020.

    It said that Mosimi-Ibadan accounted for 33 per cent, while Atlas Cove-Mosimi and Warri-River Niger recorded 27 per cent of the breaks each, while other locations made up for the remaining 13 per cent.

    The MFOR stated that in collaboration with the local communities and other stakeholders, the corporation would continuously strive to rein in on the incidences of pipeline breaches across the country.

    In the gas sector, it said that out of the 232.03billion Cubic Feet of gas (BCF) supplied in June 2020, 148.66BCF of gas was commercialised.

    This, it noted, consisted of 34.64BCF and 114.01BCF for the domestic and export market, respectively.

    It noted that the transaction translated to a total supply of 1,154.78million Standard Cubic Feet of gas per day (mmscfd) to the domestic market and 3,800.45mmscfd of gas supplied to the export market for the month.

    According to the report, it implies that 64.07 per cent of the average daily gas produced is commercialised, while the balance of 35.93 per cent is re-injected, used as upstream fuel gas, or flared.

    The report further stated that gas flare rate for the month of June stood at 6.11 per cent, implying 472.94mmscfd, compared with average Gas flare rate of 7.84 per cent, equivalent of 611.73mmscfd for the period from June 2019 to June 2020.

  • NNPC denies officials sold 48m barrels of stolen crude oil

    NNPC denies officials sold 48m barrels of stolen crude oil

    The Nigerian National Petroleum Corporation (NNPC) on Thursrday denied reports that its officials sold 48 million barrels of stolen crude oil and issued death threats to a whistleblower.

    It said the publications and television commentaries replicate the content of a letter to NNPC on behalf of SAMANO SA DE CV by its solicitors.

    NNPC, in a statement by Afe Babalola & Co, said the reports were not true.

    The Corporation said SAMANO first contacted Federal Government officials in 2015 indicating that it had been approached by an unnamed group in China to buy 48 million barrels of crude oil “stolen” from Nigeria.

    NNPC said SAMANO requested that it be allowed to purchase the stolen crude after its recovery by the Federal Government.

    The Corporation said shortly thereafter, SAMANO indicated that it was no longer interested in buying the stolen crude as it only obliged the Federal Government with the information to assist the administration’s fight against corruption.

    “The Federal Government and NNPC receive hundreds of spurious claims of this nature daily, and they always turn out to be false.

    “NNPC also believed that based on the operations and state of the international crude oil market in 2015, it was impossible to ship 48 million barrels of crude oil from Nigeria to China without any record or trace of same,” the law firm said in a statement.

    It noted that as of 2015, the daily production of crude oil in Nigeria was below 1.6 million barrels, adding that 48 million barrels of crude oil would have been the total production capacity of the country for a whole month.

    NPPC said: “It was and remains simply impossible for one-month crude oil production for the entire country to disappear without any record or trace from the shores of the country.

    “NNPC was also aware that as at the material time and because China is one of the most regulated economies in the world, the export of crude oil from Nigeria to China was exclusively undertaken by four known companies approved by, under the control, ownership, and management of the Chinese Government.

    “It would, therefore, have been impossible to transport 48 million barrels of crude oil from Nigeria to China without the active involvement of the said companies.

    “Again, from an economic perspective, it made little sense that anyone would store that volume of crude oil in China for such a considerable period having regard to the attendant significant storage costs.

    “It is noteworthy that the Chinese government had, through its officials, stated emphatically in response to this allegation at different for a, including the United Nations General Assembly, that there was no stolen Nigerian crude oil stored in any port or terminal or storage facility in China.”

    The Corporate said despite these reservations and in line with the administration’s anti-graft agenda, the Federal Government set up the Presidential Committee on Recovery of Stolen Nigerian Crude Oil in response to the claims.

    “The said Presidential Committee requested that SAMANO furnish it with evidence in proof of its allegations to enable it to investigate and verify its claim.

    “Still, SAMANO refused, neglected or failed to provide the Committee with any cogent and verifiable evidence in support of its allegations.

    “Notwithstanding the failure of SAMANO to produce verifiable evidence in support of its allegations, for completeness, relevant officials were mandated to pay an in-person visit to China and further investigate SAMANO’s claim.

    “During this fact-finding trip to China, it was discovered that SAMANO’s claim was false as there were no 48 Million Barrels of stolen Nigerian Crude Oil or any stolen Nigerian Crude Oil in any port, terminal or storage facility in China.

    “It was also discovered that all the documents previously presented by SAMANO in support of its claims were not genuine. A report of this finding was issued by the Committee to Mr President,” the statement reads in part.