TheNewsGuru

Tag: NNPC

  • Subsidy removal: We’ll ensure smooth transition – NMDPRA

    Subsidy removal: We’ll ensure smooth transition – NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working with NNPC Ltd. and other stakeholders to guarantee a smooth transition following the removal of fuel subsidy.

    Recalled President Bola Tinubu, in his inaugural speech on Monday, said the fuel subsidy regime had ended with the commencement of his administration.

    The authority made this known on Tuesday in a statement signed by Mr Kimchi Apollo, General Manager, Corporate Communications, NMDPRA, to address concerns regarding the removal of fuel subsidy.

    Apollo said the authority was working to avoid disruptions in the supply of Premium Motor Spirit (PMS), also known as petrol, as well as ensure that consumers were not short-changed in any form.

    He assured ample supply of PMS to meet demand, and that the authority had taken necessary steps to ensure that distribution channels remained uninterrupted and fuel readily available at all filling stations nationwide.

    He urged Nigerians not to panic over the removal of subsidy as the authority had ensured availability of petrol nationwide.

    “Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (PIA 2021), which provides for total deregulation of the petroleum downstream sector to drive investment and growth.

    “We, therefore, call on Nigerians to remain calm and resist the urge to stockpile as it poses significant safety hazard.

    “The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation.

    “We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector,” he said. 

  • How Warri grew from bad to worse – By Emeka Obiora

    How Warri grew from bad to worse – By Emeka Obiora

    By Emeka Obiora

    Warri was a big industrial hub in the 70s to 90s. Warri Refinery, NNPC, DSC, Delta Glass, Shell, Chevron, Schlumberger, Dunlop, Agip, Saipem, Halliburton, etc were in full operation back then. Escravos and Forcados was at its peak. The city thrived, maritime activities thrived.

    Multinational and local banks were present: Citibank, FBN, ACB, Savannah Bank, etc. Business activities thrived. Entertainment/nightlife was at its peak. Musicians, live bands and comedians held their sway: Majek Fashek, Emma Grey, Oritz Wiliki, Rex Lawson, who died on his way to Warri in 1971.

    The town was full of life and it thrived. Mc Dermot Road was busy with maritime activities and contractors. Joma and Mosheshe were big fish distributors across the Niger Delta. Rubber produced locally, was used to produce plastics and tyres.

    The town grew in size and had people coming from Ijebu Ode, Benin, Asaba, Imo, Anambra, Calabar, etc to settle down in Warri for economic activities. The airports were super busy: Escravos, Forcados and Warri airports. The Warri airport was even relocated to Osubi for expansion.

    Warri was revelling in its glory. I almost forgot to mention, Warri Ports was fully operational and served as an economic booster for the city. It served businesses in Warri, Benin, Asaba and Onitsha. The port created huge employment opportunities for locals in particular and the State in general.

    Things started to go downhill from the late 90s. Community leaders and youth chairmen began to fight themselves over control and sharing formula for royalties that came from oil and businesses from settlers. Itsekiris, Urhobos and Ijaw leaders and youths started fighting each other.

    The bloody fight started around 1999 and lasted for years till 2003/2004. The community leaders started imposing local taxes called “Deve” on all companies, industries and local businesses, buildings and projects. Little by little, the companies frustrated, started leaving.

    This continued throughout the early 2000s till 2010. The companies kept on leaving, one after the other. The companies laid off their employees. Unemployment rose. More companies left for PH, Lagos and Akwa Ibom. They laid off more staff. Unemployment increased still.

    Today all that is left of Warri is a shadow of its glorious past. 95% of all the big companies in Warri had either left or closed down. Most of the young people have left Warri. The ones left are driving Keke, doing POS, Spa or Boutique, Beer parlour or doing hookup.

    There is peace now, but the damage the greedy community leaders did to Warri, still lingers on and is almost irredeemable at this point.

     

    Obiora is a professional cardiovascular physiologist, an entrepreneur and writer. Twitter: @EmekaObiora_

  • NNPC has 1.8bn litres of petrol in stock – Spokesman

    NNPC has 1.8bn litres of petrol in stock – Spokesman

    The Nigerian National Petroleum Company Ltd., (NNPC Ltd.) says it has 1.805 billion litres of petrol in stock.

    Its spokesman, Malam Garbadeen Muhammad, stated in Abuja on Monday that the volume of petrol in stock would last for 30 days.

    He explained that 805.35 million litres of the product were in depots nationwide, while one billion litres were still inside vessels.

    He added that in is efforts to ensure steady supply NNPC Ltd. placed a robust plan for the supply of petrol from mid-February to March 2023.

    “An additional petrol supply of 884 million litres is also expected by Feb. 28.

    “For March 2023, a total of 2.3 billion litres of petrol is expected, while about 2.5 billion litres, equivalent to 42 days sufficiency, will be the closing stock for the month,’’ Muhammad stated.

  • NNPC Ltd. to begin oil drilling in Nasarawa State March 21

    NNPC Ltd. to begin oil drilling in Nasarawa State March 21

    The Nigeria National Petroleum Company Limited (NNPC Ltd) will begin drilling of the first oil well in Obi/Keana Nasarawa State on March 21.

    Malam Mele Kyari, Group Chief Executive Officer of NNPC Ltd., made the disclosure when he led Management of the Company on a courtesy visit to Gov. Abdullahi Sule on Thursday in Lafia.

    Kyari said that the company began exploration activities in the State in 2010 and has technically found petroleum environment in the State.

    “We have seen a great potential for finding hydrocarbon in Nasarawa State and to confirm this, we are going to start drilling on March 21.

    “We are very optimistic that it would be a successful exercise. It will not end there, once you find oil, you do further works to develop it not just for the benefit of the community around it but for Nasarawa State and the Country,” he said.

    Kyari pointed out that the exploration would not be limited to the current Obi/Keana location.

    “Once we test this prospect, it opens new roads and we have seen other great prospects across many parts of the State. This will herald history and bring value to all of us,” he added.

    The Group CEO thanked the government and people of Nasarawa State for the cooperation and support so far and called for its sustenance.

    “Peace and cooperation is essential in oil exploration and we have seen enormous cooperation in this respect – we have seen no danger, no risk to our operation from all stakeholders in our area of operation and we thank them for that,” he said.

    He said the company would continue to do its best to bring immediate value to the host community and ultimately to the wider society when oil was found in commercial quantity.

    Responding, Gov Sule thanked the NNPC Ltd. boss and his team for the visit and for what they were doing in the State.

    He also appreciated the people in the area for their support so far, while urging them to sustain the peace in the area and across the state.

    Sule identified insecurity as a major challenge to oil exploration in the country, calling on the people of the state to ensure they maintain peace and support the company for the project to succeed.

    He expressed optimism that the drilling of the oil well, named “Ebenyi-A” would be the first in the North Central zone of the country and would bring lots of benefits to Nasarawa State.

    In his remarks, Emir of Lafia, Retired Justice Muhammad Sidi-Bage, reassured the NNPC Ltd. on behalf of the people of utmost support towards the success of the project.

    “On behalf of our people, we want to say that you will find peace, we have been known for being peaceful, kind and loving. You will not have any reason to feel otherwise within the period of your operation in the state,” Sidi-Bage said.

    Also speaking, Sophia Mbakwe, Managing Director, NNPC Energy Services Limited, said the assurances from the government and stakeholders in Nasarawa State was critical to the operation of the company.

    “For the right to operate, we need the cooperation, support and blessing of the Governor and the community, and that we have gotten today.

    “The intent is that it’s going to benefit both parties and we want to go there to ensure no harm to people, no harm to the environment and be able to commence drilling as planned on March 21,” she said.

    The News Agency of Nigeria (NAN) reports that the Mr Muktar Zanna, Executive Director, Frontier Exploration Services of the company had led a team other Executive Directors of the Company on courtesy visit to various Taditional Rulers in the area with hydrocarbon prospects in the State to get their support.

    Some of the traditional rulers visited included Alh. Aliyu Dangiwa-Orume, Osuko of Obi; Alh. Abdullahi Agbo, Osana of Keana; Alh. Umar Apeshi, Osoho of Olosoho (Agwatashi), as well as Retired Justice Muhammad Sidi-Bage, Emir of Lafia.

    All the Traditional Rulers gave assurances of the peoples’ commitment to peace towards the operations of the company in the state.

  • What we are waiting for to start selling fuel at N195 per litre – IPMAN

    What we are waiting for to start selling fuel at N195 per litre – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed its members are still expecting the arrangements being made by the Nigerian National Petroleum Company Limited (NNPCL) for independent marketers to lift fuel at N172 so that they can start selling at N195 per litre.

    TheNewsGuru.com (TNG) reports IPMAN’s Chairman, Western Zone, Alhaji Dele Tajudeen, stated this in an interview in Ibadan on Friday while stressing that the Association’s members were not buying petrol at N172 per litre as being insinuated.

    Tajudeen described the report being circulated that IPMAN members were buying petrol for N172 per litre as misleading, far from the truth and capable of inciting the public against them.

    According to him, it is the NNPCL that is making arrangements for IPMAN members to lift petrol at the official price. He said that the new pricing arrangement had yet to materialise.

    “We are still expecting the arrangements being made by NNPCL for independent marketers to lift fuel at N172 so that we also can sell at N195 per litre which is the official price.

    “The report that emanated from some online media that members of the association have commenced lifting of petrol from the Ijegun-Egba tank farm in Lagos at ex-depot price of N172 per litre is not true.

    “The report, if not quickly debunked, is capable of inciting members of the public against IPMAN members. It is misleading and far from the truth.

    “We are committed to serving the Nigerian masses in truth and fairness, without taking advantage of them.

    “While waiting for the government’s agency in charge of petroleum products to come up with its arrangement for independent marketers, we will continue to serve Nigerians in truth,” Tajudeen said.

  • Fuel Scarcity: Queues ease as NNPC, Matrix Energy begin massive supply in Delta, Edo, other

    Fuel Scarcity: Queues ease as NNPC, Matrix Energy begin massive supply in Delta, Edo, other

    The perennial queues occasioned by the non-availability of the Premium Motor Spirit (PMS) also known as fuel in Warri, Effurun and other parts of Delta State has started phasing out following recent mass supply of the product to marketers in the State.

    It was also observed that the price of PMS which was sold between N420 to N510 has now crashed and it is now being sold between N205 and N260 by marketers especially in Warri, Effurun and their environs.

    It was gathered that the development followed the intervention of leading indigenous oil and gas company, Matrix Energy Group and the Nigerian National Petroleum Corporation Limited (NNPC) which have depots in the oil city.

    Some marketers had told our correspondent who monitored the supply of the product that some major marketers like Matrix Energy entered partnership with some independent marketers to ease the distribution of the product in line with the directive of the federal government.

    It was further gathered that to ease the scarcity and hike in the price of PMS, the NNPC has sent five additional vessels totaling 100 million litres to Delta State.

    It was reliably learnt that the five NNPC vessels will berth in the various fuel depots  in the state latest this week. The product will be distributed to the depots at Warri Refining and Petroleum Company (WRPC), Warri, Oghara and Koko.

    Queues which hitherto were witnessed in most parts of Warri, Asaba, Effurun, Sapele, Ughelli and their environs have started easing out following the mass supply of the product in the areas.

    Aside Delta, it was gathered supply of the product to states of the Niger Delta has drastically improve as motorists were seen spending less time to get the product at the various filling stations visited between Saturday and Sunday.

    It was further learned that some major marketers that owned retail outlets including Matrix and Shafa were already dispensing a litre at the rate of N205 in Warri, Effurun and their environs.

    Motorists, who commended the intervention, called on the Federal Government to stabilise the availability and pump price of the product.

    They lamented that the hike in the pump price had led to an increase in the cost of transportation and foodstuffs within the state and beyond.

    An industry player, who confirmed Matrix Energy’s intervention in making the product available, stated that the company had entered into partnership with some independent marketers to ensure that the queues were out in Warri, Benin and other parts of the country in the days ahead.

    He added that owing to the company’s intervention through massive supply of the product, most filling stations have started dispensing the product below N220 per litre particularly in Effurun, Warri, Udu and some other parts of Delta.

    Our source added there was also an arrangement with marketers in Benin, Edo State, to supply one million litres weekly to the city to cushion the scarcity of the product in the state.

    It further disclosed that the Nigerian National Petroleum Company (NNPC) Limited has sent additional four laden vessels to depot in  ogarah and Warri in Delta  to ameliorate the challenges being faced by residents of the region.

    “The federal government has directed all depot owners in the coastal areas to focus on supplying their primary areas which is what had led to availability of the product.

    “The government wants to see that the product is available. Effective Monday, the pump price is expected to go down to N190. If you go round, some filling stations like Matrix Energy have been selling the product at N205.

    “But hopefully, we will see reduction continue to reflect in the pump price as availability of the more vessels increases this week”, the source assured.

    A circular by Matrix Energy company last week Thursday announcing it has commenced full distribution of the product confirmed the position of our source.

    The circular obtained by our correspondent read, “This is to inform you that our PMS vessel will be berthing today and loading shall commence tomorrow God willing. We shall only allocate volumes directly to those with valid NMDPRA permits and willing to sell at regulated price.”

    Meanwhile, motorists in Warri, Effurun and Udu area of Delta have commended Matrix Energy Group for easing the suffering of Nigerians by ensuring adequate distribution of the product in the areas.

    They also commended the company for ensuring that the product was sold within the government regulated price, stressing that the Federal Government must double its efforts to make the product more available to the Nigerian public.

  • NNPC begins direct supply to IPMAN

    NNPC begins direct supply to IPMAN

    The Nigerian National Petroleum Company Limited (NNPCL) has allocated petrol to marketers directly to ease scarcity.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) made the disclosure on Tuesday.

    The President, Chinedu Okoronkwo said the order was issued after a closed-door meeting of both parties.

    It was agreed that IPMAN members should load petrol at NIPCO, MRS and other assigned depots.

    The marketers were however encouraged to upgrade their POS to G4 or G5 for payment efficiency.

    “Members without POS are also advised to acquire it for efficiency,” Okoronkwo told NAN in Lagos.

    Okonkwo urged IPMAN divisions across the nation to open up their stations and start selling.

    Lawal Sade, NNPCL Managing Director; Adeyemi Adetunji, VP Downstream; IPMAN BoT Chair, Abdulkardir Aminu, and exco members attended the meeting.

  • NNPC reveals how petrol is smuggled by marine vessels to neighbouring countries

    NNPC reveals how petrol is smuggled by marine vessels to neighbouring countries

    The Nigerian National Petroleum Company Limited has revealed how Premium Motor Spirit (PMS), popularly called petrol, is being smuggled by trucks and marine vessels to neighbouring countries.

    In the words of NNPC Group Chief Executive Officer, Mele Kyari: “One thing that is also very practical is that Nigeria’s fuel is smuggled to other countries. This is not a secret. But it can only be done by either all of us in this room or people buying from us. So there’s no dispute about this that our fuel gets to other countries, including in marine containers. We have evidence now that some of our customers are actually taking investors to other countries and we will get to the root of this.

    “The appropriate government security agencies will deal with this. But this is the reality that we are dealing with. You do have cross-border smuggling, either in form of round-tripping or whatever name we call it, the product leaves our country and creates the challenges we see today.”

    Kyari stated this while explaining the fuel supply data for the country since January 2022, during a meeting with stakeholders in Abuja.

    Adding: “Anytime we go down below 60 million litres of evacuation consistently for more than three days, we’ll have a crisis across the country.

    “We know that there may be no valid so-called consumption figure, but we know the evacuation figure. Anytime the evacuation figure goes below 60 million litres daily, you’ll have a crisis. Remember, early in 2022 when we had the contaminated fuel, evacuation came down to 56 million litres on average and we had a crisis. We managed to ramp up by adding volumes to the market to fill the gaps. So we achieved normalcy.

    “I recollect, in October, when the flooding happened, trucks could not go to their destinations, particularly moving from the South into the North and our evacuation went below 60 million, and you can remember what happened.”

    "How petrol is smuggled by marine vessels to neighbouring countries"- NNPC reveals

    Kyari noted that since then, NNPC had done everything possible to keep the supply or evacuation above 60 million litres consistently.

    According to him, there was no shortage of fuel going into the market, rather the products might be in the wrong destination.

    “So the 66 or 67 million litres that you have always seen include all these, the cross-border smuggling volumes. And it means that anytime we don’t satisfy those markets, it will affect your domestic market. This is the reality that we are dealing with,” he asserted.

    Recall that recently the NNPC said it has released 67 million litres of PMS to marketers, which laid to rest the queues at Filling stations in most parts of Abuja, Niger, Nasarawa and other states.

    Virtually all the major Filling stations that used to have heavy queues before, were seen without queues on Wednesday, as most of them dispensed petrol to the cars sighted in their various outlets.

    TheNewsGuru.com (TNG) observed that the Nipco, NNPC, Salbas and a few other outlets on the busy Kubwa-Zuba Expressway were dispensing products to motorists and had no queues, which was not the case on Tuesday.

    Also, outlets in Nyanya, Nasarawa State, and Zuba, Niger State, sold products to motorists and had no queues on Wednesday, contrary to what was obtained the preceding day, where there were very limited filling stations in operation.

  • NNPC fails to stop Araraume’s N100bn case against unlawful removal as Board Chair

    NNPC fails to stop Araraume’s N100bn case against unlawful removal as Board Chair

    … as two SANs withdraw from proceedings, storm out of court

    …Judge fixes March 28 for judgment

    The newly-incorporated Nigeria National Petroleum Company (NNPC) Limited, on Monday, failed to halt hearing in a N100 billion suit instituted against President Muhammadu Buhari over alleged unlawful removal of Senator Ifeanyi Godwin Araraume as Board Chairman.

    The failure by the NNPC Ltd, represented by two Senior Advocates of Nigeria- Professor Konyinsola Ajayi and Utigwe Uwa- saw both of them withdraw from the proceedings and storm out of court after Justice Inyang Ekwo stood his ground that he was going to rule on all processes and applications separately at the same sitting.

    Professor Ajayi, the lead of the NNPC Ltd legal team, had, while identifying his processes for adoption,
    drawn the court’s attention to a motion for stay of proceedings challenging the January 11 decision of the Court, which had declined to take the NNPCL’s motion of preliminary objection to the substantive suit.

    Ajayi was of the opinion that the application for stay be taken and the court takes a decision one way or another before progressing with the case.

    He had also wanted to put in, afresh, his team’s interrogatories for the plaintiff, which the judge refused to admit.

    Ajayi had pleaded profusely with the judge and referred to the position of the Supreme Court that interrogatories are at the heart of fair hearing.

    The judge did not budge, insisting that he would rule on each process and application separately on the same day and each ruling would determine the next step to take.

    Apparently frustrated that his strategy to dilate the proceedings in favour of his client did not work, Ajayi told Justice Ekwo that he might need his permission to withdraw from the proceedings.

    Justice Ekwo, in quick riposte, said he did not know how he got into the matter in the first instance and it was needless to seek his permission to withdraw and that the senior lawyer was at liberty to take whatever decision he deemed good.

    It was at that point that Ajayi took a bow, picked his files and walked out, closely followed by Etigwe Uwa.

    While the shocking drama by the learned silks was going on, Justice Ekwo had called on the counsel to first defendant (President Muhammadu Buhari), Mr A.H. Usman, to identify his processes and adopt them in accordance, which Usman did.

    The counsel to the third defendant (Corprate Affairs Commisdson), A. U. Mustapha (SAN) also identified his processes and adopted the same.

    Recall that hearing in the matter filed by Senator Araraume, at the Federal High Court, Abuja had been stalled on two previous occasions by the NNPC Ltd.

    The plaintiff (Araraume) had instituted a N100 billion suit against President Buhari, over his alleged unlawful removal as non-Executive Chairman of the newly-incorporated Nigeria National Petroleum Company (NNPC) Limited.

    President Buhari, the NNPCL and the Corporate Affairs Commission (CAC) are first, second and third defendants respectively in the suit that was commenced by originating summons, which was amended at the instance of the court to accommodate the Corporate Affairs Commission as a co-respondent since the Commission might be affected by the proceedings and rulings of the court.

    Specifically, Justice Ekwo had, on January 11, adjourned the matter to January 23, for definite hearing.

    When the matter up, on Monday, the judge had directed parties to identify and adopt their processes as their briefs of argument in the matter.

    He had also informed parties that the court would take all motions together, including the substantive suit.

    After all parties had identified their processes and adopted them, Justice Ekwo said that the parties having been heard, the matter was adjourned to March 28, 2023 for ruling (on the applications) and judgment in the substantive suit.

  • FEC okays NNPC Ltd to invest N1.9trn in 44 federal roads

    FEC okays NNPC Ltd to invest N1.9trn in 44 federal roads

    The Federal Executive Council(FEC) has approved the recommendation for the Nigerian National Petroleum Corporation Limited (NNPC LTD.) to invest 1.9 trillion in the reconstruction of 44 federal roads under the tax credit policy.

    The council gave the approval at its meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.

    Osinbajo’s spokesman, Laolu Akande, briefed State House correspondents on behalf of the Minister of Works and Housing.

    “The Federal Executive Council approved the recommendation to invest in the reconstruction of selected federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy phase 2 by the Nigerian National Petroleum Corporation (NNPC) Limited and its subsidiaries.

    “So, the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometers in the total sum of N1.9 trillion.’’

    Akande said the council also approved the concession of nine federal roads.

    He said that roads were spread across the country.

    “In another memo, the Minister for Works and Housing also got approval of the council for concessionaires for nine road corridors under the pilot phase of the value-added section of the Highways Development and Management Initiative following the issuance of the requisite full business case compliance certificate by the Infrastructure Concession Regulatory Commission for a period of 25 years for each road corridor as follows.

    “The roads that will be under this first phase are the Benin-Asaba corridor, Abuja-Lokoja-Onitsha-Owerri-Aba, Shagamu-Benin, Abuja-Keffi-Akwanga-Makurdi, Kano-Maiduguri, Enugu-Port Harcourt, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme.’’

    More so, Akande said that the Minister for Works and Housing got the council’s approval for the augmentation of the contract for the rehabilitation of the Oshogbo-Ilesha road phase 1 in Osun State in the sum of N1.2 billion.

    “The approval thereby revises the subsisting contract sum from N3 billion to N4 billion representing an increase of 33 per cent of the original sum,’’ he said.