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Tag: NNPC

  • NNPC set to spud first Oil Well in Nassarawa State

    NNPC set to spud first Oil Well in Nassarawa State

    The Nigerian National Petroleum Company Limited (NNPC Ltd), is set to spud the first Oil Well in Nassarawa state in March 2023, in continuation of its oil exploration activities in the Country’s inland basins.

    The Group Chief Executive Officer of the Company, Malam Mele Kyari, disclosed this when the Governor of the State, Abdullahi Sule, led a delegation of prominent indigenes of the state on a courtesy visit to the NNPC Ltd. in Abuja.

    Kyari, in a statement on Friday by Mr Garbadeen Muhammad, Chief Corporate Communications Officer, NNPC Ltd., said that results of exploratory activities confirmed the presence of substantial hydro carbon resources in the state.

    He called for prompt action on the project as the global energy transition has led to a reduction in investment in fossil fuels.

    “This work must be done very fast because the whole world is walking away from fossil fuel due to energy transition.

    “The earlier you go to market, the better for you, otherwise, 10 years from now, no one will agree to put money in petroleum business except it comes from your cash flow,’’ he said.

    Kyari described community support and a conducive environment as key to a successful operation in the area in order to avoid the experience of the Niger Delta.

    In his response, the governor congratulated the GCEO on the successful commencement of oil production and the Kolmani Integrated development project which was inaugurated in Nov. 2022 by President Muhammadu Buhari.

    ‘’I want to congratulate you, the management of NNPC and the federal government for what you have done at Kolmani, for those who don’t know what you have done for Nigeria, you have written your name in gold,’’ Sule stated.

    He commended President Buhari for his support while assuring the NNPC of a conducive environment.

    The governor was accompanied on the visit by the Deputy Governor, Dr Emmanuel Akabe, National Chairman of the All Progressive Congress (APC), and first executive governor of the State, Dr Abdullahi Adamu, and his predecessor, Senator Tanko Almakura.

    Others are the Minister of Environment, Mr Mohammed Abdullahi, Emir of Lafia, Justice Sidi Muhammad, and Chairman, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mallam Isa Modibo, among others.

  • SUBSIDY: How FG mandated reduction of petrol price- Sylva

    SUBSIDY: How FG mandated reduction of petrol price- Sylva

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, has revealed that the current price of Premium Motor Spirit, popularly called petrol, by the Nigerian National Petroleum Company Limited, is based on the mandate from the Federal Government as regards PMS subsidy.

    Sylva’s remarks came as oil marketers stated that the supply hitches in the downstream oil sector often lead to fuel scarcity, which might persist till June, based on the government’s plan to end petrol subsidy in that month.

    The petroleum minister spoke in Abuja on Monday, at the resumption of the scorecard series (2015-2023) of President Muhammadu Buhari.

    Last week, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the Federal Government had budgeted about N3.6tn for fuel subsidy till June 2023.

    Sylva, while speaking in Abuja on Monday, insisted that subsidy had been a burden, but stressed that it was a mandate on NNPC which had made the oil firm to continue selling PMS at a loss.

    He said, “The management of the supply situation under this subsidy regime is not easy. We must all agree that so much money is being burnt in our cars, but somehow we have to put funds to continue to keep the country wet.

    “Sometimes if you really think deeply you begin to wonder what magic we are doing to be able to keep this country wet consistently. Considering that you buy something, let’s say for N10, and you are to sell it at a loss.

    “And then you are expected to go back to buy the same thing, and come back again to sell it at a loss. So at every point in time, you are looking for more money to continue to buy it, because you’re mandated to sell it at a loss.”

    Sylva added, “So if you are a businessman, look at it from this perspective, that you are now in the business where you are mandated to sell at a loss to the public. That is not an easy job, I must tell you.”

    Responding to a question on how he would feel when buying petrol at N300/litre, Sylva said he would not feel bad about it.

    “If you ask me how I will feel as a private citizen to buy petrol at N300/litre, sadly, I will say I won’t feel bad, knowing the actual situation. And if you compare Nigeria to other countries, you will understand,” he stated.

    The minister added, “When you convert the N300/litre that you are talking about to other currencies, then you will understand. A lot of you travel to the United Kingdom or the United States, how much do you buy petroleum products there? Even in Arab communities that produce crude oil.”

    He said the cost of the commodity in Nigeria was not as high as what was obtained in other countries, but stressed that the current national consensus was that subsidy on petrol was no longer sustainable.

    “Unfortunately we are still in a subsidised regime, which all of us know. As a country, I think it is a national consensus now that subsidy is not sustainable, but together we will get there,” Sylva stated.

    He said until the cost of petroleum products were market-driven, investors would continue to shy away from investing in the downstream oil sector.

    “Under a subsidised regime, who is going to invest? If you build a refinery, how is your refinery going to make a profit under a subsidised regime? But if you have a market-driven situation, you’ll see that a lot of investors will come.

    “And the more refineries we have, this problem of access to petroleum products will be a thing of the past,” Sylva stated.
    How FG mandated reduction of petrol price- SylvaThe Federal Government on Monday revealed that it had acquired shares in four refineries operating in various locations across the country.

    It outlined the refineries to include the 650,000 barrels per day integrated Dangote Refinery in Lagos; 12,000bpd Azikel Modular Refinery in Bayelsa; 5,000bpd Waltersmith Modular Refinery in Imo; and 2,500bpd Duport Modular Refinery in Edo.

    The government also announced that the 60,000bpd component of the Port Harcourt Refining Company in Rivers State, would begin operations in the first quarter of this year, stressing that the facility had been completed.

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, disclosed this in Abuja at the ministerial scorecard series of the current administration.

    Commenting on the equity of the Federal Government in Dangote Refinery, Sylva said it was 20 per cent, adding that the government had also bought shares in three other refineries.

    He said, “We have 20 per cent equity in Dangote Refinery and we have also taken 20 per cent equity in Azikel Refinery. We took 30 per cent in Waltersmith, and we also have 30 per cent in Duport Refinery.

    “Duport Refinery is already finished. They’ve concluded the construction. It only remains to start operations. I’m sure that within the next month or so, Duport Refinery will also start operations.”

    The minister explained that the Dangote Refinery already had an established contract with NNPC, in terms of crude oil supply, but noted that some modular refineries usually accessed crude oil from assets closer to the plants.

    “So they (modular refineries) have this (crude oil supply) contract with private sector owners of these assets that are near them,” he stated.

     

  • 2023: Accord reveals illegal exco forced Kwankwaso, others exit

    2023: Accord reveals illegal exco forced Kwankwaso, others exit

    The frustrated alliance between the presidential candidate of the New Nigeria Political Congress Party (NNPC) -Musa Kwankwaso and other well meaning top politicians with the Accord Party(AP) was due to the illegitimate sit-tight exco of the party.

    This was revealed during a media chat with journalists in Awka, the Anambra State capital on Thursday by the incumbent Deputy National Chairman (South) of the party, Hon Innocent Igboekwe noted that the former Kano state Governor particularly, interpreted the scenario well and took a walk.

    According to Igboekwe, Alh Kwankwaso as an experienced politician apparently reasoned the unsettled dicey situation could damage both his reputation and political calculations if he’s caught in the unfolding web.

    Addressing a very well attended South East zonal executive from Enugu, Anambra, Imo, Ebonyi and Abia States this afternoon in Awka, Igboekwe went down memory lane of how the Independent National Electoral Commission(INEC) sacked the party’s executive structure led by Alh Mohammed Law an Narado in 2015. This same executive, against all lawful counsel continued to clutch unto any form of straw ever since.

    ”Consequently we then went to court to seek their removal. This is an exco that have been in power since 2013, yet refused to allow congress for election of new national, zonal, state and ward executive structures to emerge.

    That’s why any discerning mind like the Labour Party, and Alh Kwankwaso who realized that anything done with the illegitimate exco would not stand at the long run. So they easily left to avoid being festered with their illegality.

    Naming Rev Adeniyi as the new National chairman, the National Vice Chairman (South East) Hon Emeka Chigbo who was flanked by other abuzz leaders disclosed that he summoned the meeting to brief them on the journey so far, true situation of affairs and to prepare all the states, local government areas and wards for formal inauguration soon. That soon after the anticipated favourable verdict coming up on Jan 25,2023 all nooks and crannies of Nigeria would be abuzz with Accord Party activities.

    Chigbo allayed fears of anymore infighting, fractionalization or disunity in the party, “because such era is gone.

    “That’s why we simply went to court to have the former national chairman, Alh Narado and his co-travellers removed.

    “They had taken over in 2013, and presided for two tenures of four years each.

    “We shall constitute and inaugurate a new executive structure soon.”

  • Reps vow to probe, expose loss of $2.4bn alleged sale of 48m crude oil barrels

    Reps vow to probe, expose loss of $2.4bn alleged sale of 48m crude oil barrels

    The House of Representatives has vowed to probe and expose the circumstances which led to the loss of over $2.4 billion revenue from the alleged illegal sale of 48 million barrels of crude oil exported in 2015.

    The House of Representatives ad-hoc committee investigating the “Alleged Loss Of Over $2.4bn From Illegal Crude Sales In 2015″, disclosed this at its inaugural meeting on Thursday in Abuja.

    Recall that the House had at plenary last week Tuesday resolved to constitute an ad-hoc committee to probe the allegation, when a motion promoted by Hon. Isiaka Ibrahim from Ogun state was adopted.

    The committee was also mandated to investigate all crude oil exports and sales by Nigeria from 2014 till date with regards to quantity, insurance, revenue generated, remittances into the federation accounts or other accounts as well as utilisation of the revenue for the period under review.

    According to the motion, a whistleblower alleged in July 2020 that he had in July 2015, brought to the attention of a committee purportedly set up by the President for the recovery of missing crude oil exports, the existence of 48 million barrels of Nigeria’s Bonny Light crude oil in storage at several ports in China, under the authorisation of the Nigerian National Petroleum Corporation (NNPC) to sell the cargo”.

    Chairman of the ad-hoc committee, Mark Gbillah, in his remarks said the panel will engage local and foreign stakeholders to get to roots of the issues, also assured whistleblowers of adequate protection in the course of the exercise.

    Gbillah appealed to international partners of Nigeria such as the United States, Mexican and the Chinese government to give the committee the cooperation required and it would visit some of the countries to obtain the facts behind the matter.

    He commended President Muhammadu Buhari’s administration for bringing forth the whistleblower though he and the minister of finance recently admitted that it has not been successful in terms of the amount of revelation that they expected and the recoveries expected.

    “Now the Committee takes very seriously issues that have to do with allegations. We owe Nigerians the benefit of doubt in line with our Constitution. We owe them a duty of care to ensure that we unravel the facts of the matter before we start to make any assertions.

    “It is obviously going to be important for us to arrive at the conclusion and provide a substantive report that would obviously be in the records and would determine whether or not these issues transpired and in carrying out our functions, one of the things we are going to need to do would be to interview those who made those allegations.

    “Some of them have reached out to the committee alleging threat to their lives, they were intimidated at gun point allegedly. So we will have to travel out of the country to the United States, to Mexico, to China. I believe considering the amount of borrowing our country is subjected to now 2.4 billion dollars is money this country very seriously needs.

    “So it is not something that this house is taking lightly. The leadership of the house is in support of this committee arriving at the truth and the facts this matter. And it shows the seriousness of this house in addressing issues that have to do with the commonwealth of Nigerians.

    “Even though these allegations were made about two years ago you can see that this responsible House of the Nigerian people has still deemed it necessary to look into this matter even as we go about our electioneering campaigns. So I mentioned the fact that we would have to because of the fears expressed by these individuals,

    “It is important to also point out that an American citizen who was also allegedly knowledgeable about these issues is currently in the Ikoyi prison over other infractions he allegedly committed in Nigeria. But there are insinuations that it is not outside this particular matter that informed those issues being brought against him.

    “Of course nobody and no country would condone illegality from any national within their shores so there must have been reasons for his incarceration at the moment but I am only conveying to Nigerians the allegations that it was not also unconnected with the revelations that he had to provide with regards to this matter. There are other individuals who are in hiding but are reaching out to the committee.

    “We want to assure all the whistleblowers who have revelations to provide to this honourable committee that their information would be treated in the strictest level of confidence as it is done all over the world . we can receive evidence behind closed doors before we make them public because we too are concerned about spurious and false allegations.

    “So we too want to determine and see the facts behind any such allegations before we bring them to public knowledge because we are a public body saddled with the representation of the Nigerian people so we have to also do things responsibly.

    “We are also keen as a house on very quickly enacting the whistleblower bill. We know the executive has been working on one but it appears to be taking them a lot of time to do so.

    “Where these crude oil sales allegedly took place, those who were involved, who claimed they were entitled to some percentage of the amount when these sales took place, they’ve been very helpful in providing us with the names of some of the individuals who were allegedly in this matter but for the sake of confidentiality and seriousness of this matter,we might not be able to divulge that information until we obtain the facts.

    “They have told us they have video recordings, photographs of the meetings, documentation to show email trail and discussions and even bank bank account statements of very highly placed people where these transactions tool place”, he added.

  • 4 startling revelations that shook the oil sector in 2022

    4 startling revelations that shook the oil sector in 2022

    The Oil and Gas sector has remained the mainstay of the Nigerian economy despite Government’s best efforts at diversification into Agriculture and Mining in order to manage volatility and provide a more stable path for equitable growth and development.

    In 2022, Nigerians experienced the results of a supply shock with a tight oil supply and supply disruptions that drove prices as high as N300 per liter in some parts of the country and forced food inflation to soar to 23.7 per cent as of October.

    Nigeria failed to benefit from higher crude oil prices witnessed this year in the global oil market in the wake of Russia’s invasion of Ukraine which not only caused a global disruption in the oil and gas supply but also affected every economic activity reliant on hydrocarbons.

    Crude oil prices skyrocketed from $74.1 per barrel in January and peaked at $123.7 per barrel in June, according to Statista.

    Oil production has been on the decline since mid-2020, reflecting low investment and significant leakages associated with poor maintenance and theft.

    Here are the four most outstanding revelations that shook the Nigerian oil sector in 2022:

    1. Importation of substandard fuel: The Nigerian National Petroleum Company Limited (NNPCL) said it received a report from its quality inspector on 20th January 2022, confirming the presence of emulsion particles in Premium Motor Spirit (PMS) cargoes shipped to Nigeria from Antwerp-Belgium. This resulted in a supply disruption and created long fuel queues that characterised the rest of the year.
    2. Drop in Gross Domestic Product (GDP) contribution to the Nigerian economy: According to the latest GDP figures released by the National Bureau of Statistics (NBS), the contribution of the oil sector to the economy fell from 6.33 percent in the second quarter of 2022 to 5.66 per cent in the third quarter. Figures recorded in the corresponding period of 2021 showed that the sector contributed 7.49 percent to GDP.
    3. Over 700, 000 barrels of crude stolen per day: Nigeria’s Minister of State for Petroleum Resources Timipre Sylva, disclosed that the country loses at least 700, 000 barrels of crude per day. In October, an intercepted vessel, MT Deima with International Maritime Organisation Number: 7210525 was later set on fire by Nigerian security agents, amidst calls for a probe.
    4. Nigeria unable to meet OPEC quota: The country’s crude oil production which hovers around 900, 000 barrels per day falls far short of the quota of 1.826 million barrels per day quota approved by the Organisation of Petroleum Exporting Countries (OPEC), a trend which industry analysts describe as a fiscal time bomb. Pipeline vandalism, lack of investment in the sector, operational and maintenance issues have been identified as some of the factors responsible for the decline in crude oil production.
  • 2023 Elections: Kwankwaso pronounces APC, PDP dead politically

    2023 Elections: Kwankwaso pronounces APC, PDP dead politically

    The presidential candidate of the New Nigeria Peoples Party (NNPP),Rabiu Kwankwaso has predicted the outcome of the forthcoming 2023 general elections in the country.

    Kwankwaso described the  All Progressives Congress, APC, and Peoples Democratic Party, PDP, as dead political parties who have nothing to offer anymore.

    Kwamkwaso made mention of this during a visit to Ado-Ekiti for his campaign movement to the South-Western part of the country to canvass for votes.

    Speaking at the Palace of the Ewi of Ado-Ekiti, Oba Rufus Adeyemo Adejugbe, he berated both parties over what he termed bad leadership, economic problem, adding that the two major political parties have failed the nation.

    The former Governor of Kano State recounted achievements his administration garnered when he was the Governor, saying such would make life more abundant for every Nigerian citizens if elected come 2023.

    “APC and PDP are dead, they are finished, and it is our party that will win the next year Presidential Election by God’s grace, we are on ground in the North, we will win the polls.

    “Why I’m different from all Presidential Candidates, is that I go round the country on roads, not only the state capital, not only the local government areas, this made me had first hand information on the way and manner our people live.

    “The NNPP is based on the talakawa (masses), voters and good people of this country who believe in us. Nigerians know the APC and the PDP very well and they’ve failed. The two political parties themselves know that they’ve failed. The only chance they have is to buy votes.

    “If the Election take place today, NNPP has a brighter chance, no Political party can defeat NNPP, the PDP has been wounded in the Southeast by the emergence of some Political parties, of course in the North, we have caged PDP, even in the South South they are no longer popular because of the Presidential primary contest, and the APC has failed the citizens, no right thinking Nigerian will want the status quo to remain, meaning this terrible situation to continue.

    “I’m part of the formation of the PDP in 1999, so also the APC, Unfortunately the two Political parties drew Nigeria back to square one, or even worst in performance, this is why we formed the NNPP as a credible alternative to the two Political parties, we want new Nigeria. So, I’m so happy we have this party NNPP, and also happy that all Nigerians especially those earning their living, especially the masses, women and young men are trooping into the NNPP.”

    He also noted that the dilapidated road network in Ekiti State and other states has affected security, economy and education of the country hence, his decision to contest again in order to make the country better

    “The road from here, Ado-Ekiti, Osogbo to Abeokuta and from here to Akure is in deplorable condition, it’s the same story, it’s the same story about us, the roads are reflection of what is happening in other sectors of transportation, like railways, waterways even in the aviation industry, and put them together they are also a reflection of what is happening in this country, in terms of economy, in terms of insecurity, in terms of education and so on, and all these put together, are the reasons while I decided to contest again to right the wrong.” He said

  • We’ve disbursed N15bn for Lagos-Badagry Expressway reconstruction – NNPC

    We’ve disbursed N15bn for Lagos-Badagry Expressway reconstruction – NNPC

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disbursed N15 billion for the reconstruction of the Lagos Badagry Expressway under the Federal Government Road Infrastructure Tax Credit (RITC) Scheme.

    The N15 billion represents a 100 per cent payment of the funding of the Lagos-Badagry road rehabilitation under the tax credit funding of the NNPC Ltd.

    The NNPC Group Chief Executive, Mr Mele Kyari, made this known on Thursday when he led NNPC’s management team with some top government officials to inspect the ongoing rehabilitation and expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border).

    The road under rehabilitation is being funded by the NNPC Ltd. under the Federal Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

    The execution of the scheme is being carried out in collaboration with the Federal Ministry of Works and Housing as the supervisor and Federal Inland Revenue Service (FIRS) for NNPC’s tax obligations deductions.

    This is in response to address the plight faced by petroleum products marketers in transportation which affects nationwide distribution.

    Kyari said the fund disbursed was part of the N621.24 billion earmarked for the reconstruction of 21 roads nationwide under the scheme.

    He expressed satisfaction over the stage of the road development.

    “We are covering 1,804.6mkm across the country and taking another set of over a trillion naira investment on infrastructure in Nigeria, believing that with the tax credit system which Mr President has put in place, very soon there will be massive change.

    “NNPC as the enabler will consider from its cash flow and fund whatever FIRS and Ministry of works approve for the company.

    The Minister of Works and Housing, Mr Babatunde Fashola, represented by the Director, Highways, Roads and Rehabilitation of the Ministry, Mr Folorunsho Esan, said the intervention of the NNPC speed up the reconstruction of the expressway.

    Esan said that the project was 40 per cent completed.

    “In the next 12 months we should be able to deliver this project because the drainages are in place, just for earth works and pavement works, it cannot take us more than 12 months,” he said.

    Speaking on the gridlock being caused by the Lagos-Ibadan Expressway project, he said the contractor would clear all impediments and move out of site by December 15 to make the highway free for Yuletide.

    Earlier, Mrs Olukorede Keisha, Federal Ministry of Works Engineer supervising the Lagos-Badagry Expressway project, gave a brief of the project, listing the drains, culverts and other construction works done on various stretches.

    Oba Israel Okoya, Oba of Ibereko in Badagry Royal Majesty, who lauded the Federal Government and NNPC for the intervention said before the reconstruction, the road was in terrible situation making traffic unbearable for motorists.

    As part of the inspection of the critical road infrastructure in key economic areas, the NNPC’s team had earlier inspected dualisation of Suleja- Minna Road Phase II and ongoing reconstruction of Bida- Lapai-Lambata road in Niger State.

    It could be recalled that on Jan. 25, 2019, President Muhammadu Buhari, signed the Executive Order No 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, which is for period of 10 years from its commencement date.

    NAN

  • Fuel queues: We have PMS stock of over 2 billion litres – NNPC

    Fuel queues: We have PMS stock of over 2 billion litres – NNPC

    The Nigerian National Petroleum Company Limited (NNPC) has blamed the fuel queues in Lagos State and Abuja on some construction projects going on in the state.

    NNPC’s Executive Vice President, Downstream, Mister Adeyemi Adetunju, gave this explanation while addressing a news conference in Abuja yesterday.

    “The recent queues in Lagos are largely due to ongoing road infrastructure projects around Apapa and access road challenges in some parts of Lagos depots,” he said. “The gridlock is easing out and NNPC has programmed vessels and trucks to unconstrained depots and massive load outs from depots to various states are closely being monitored.”

    “Abuja is impacted by the challenges recorded in Lagos. NNPC Retail and key marketers have intensified dedicated loading into Abuja to restore normalcy as soon as possible.”

    But he assured Nigerians that efforts are ongoing to ensure that normalcy returns as soon as possible.

    “We want to reassure all Nigerians that NNPC has sufficient products, and we significantly increased product loading including 24-hour operations in selected depots and extended hours at strategic stations to ensure products sufficiency nationwide,” he assured.

    “We are also working with the NMDPRA, MOMAN, DAPPMAN, IPMAN, NARTO, PTD, and other industry stakeholders to ensure normalcy is returned.”

    The NNPC, he added, has a “national PMS stock of over 2 billion litres. This is equivalent to over 30 days of sufficiency”.

  • Why Nigerians are experiencing fuel scarcity – IPMAN

    Why Nigerians are experiencing fuel scarcity – IPMAN

    The Independent Petroleum Association of Nigeria (lPMAN) has attributed the current fuel scarcity to the unavailability of petroleum products and difficulty in accessing foreign exchange by marketers.

    Mr Mike Osatuyi, the Operations Controller of lPMAN, who made the remarks in an interview in Lagos on Sunday, said it had become necessary to inform the general public that the lingering scarcity of petrol was due to the unavailability of the product.

    He alleged that the Nigeria National Petroleum Corporation (NNPC) Ltd., had stopped importing enough petrol to meet demand in the country.

    Osatuyi was emphatic that marketers could no longer sell at the regulated price because the unsteady supply of petrol had resulted in higher prices at the depots.

    “We are experiencing scarcity because the product is not available. The price of a litre of petrol at private depots is currently between N205 and N210 as against N162.50.

    “The Nigeria National Petroleum Corporation (NNPC) Ltd., is the sole importer of refined petroleum products, which are not readily available to marketers,” he said.

    Osatuyi explained that his members bought petrol at over N200 per litre from private depots, making it impossible for them to sell at a regulated pump price.

    “Besides, such trend is unsustainable given the fact that private depots also sell the product at unofficial rate different from that of NNPCL.

    “When we add cost of transportation and levies, it will run into N217 per litre. At what prices do you want marketers to sell, knowing fully well that we are in business to make profit?

    “My members are groaning over increase in cost of petrol from depot and they suffer a lot to get it.

    “If fuel is there why will we not sell, but there is no fuel. Our members are selling petrol between N230 and N240 per litre at filling stations,” he added.

    Osatuyi said government was finding it difficult to continue subsidiasing the price of petrol and advised that the downstream of the petroleum sector be fully deregulated as a permanent solution to the problem.

    He urged the government to allow the private sector to import petrol as is the case with aviation fuel, diesel and kerosene.

    He urged government to remove the monopoly of importation and pronounce total deregulation of the downstream sector.

    Collaborating Osatuyi’s views, a marketer, who preferred not to be mentioned, told NAN that NNPCL was having challenges of importing refined product due to liquidity constraints.

    According to the marketer, all marketers; IPMAN, Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are struggling to get products from NNPCL, the sole supplier.

    The marketers said scarcity of foreign exchange also posed a serious challenge, and that the Direct Purchase and Direct Supply (DPDS) option had crashed.

    “Nigeria has reached a stage where government requested for credit facility from DSDP people on product supply but it was challenged due to huge backlog of debts.

    “The NNPCL partners who were given crude oil to supply refined products could not access credit from banks due to existing huge debts,” said the marketer.

    According to him, the high rate of forex currently at N800 to a dollar also posed a serious challenge to importation.

    He said, “Talking about Lagos, that is where most of the (PMS) vessels come. When the mother vessel comes into the state, its products will be distributed by daughter vessels to ports in Lagos, Warri, Port Harcourt, etc.

    “These daughter vessels are hired by independent private tank farm owners or private depot owners, who pay vessel charges in dollars.

    “Some of them source dollars in the open market. So, the dollar also determines the price of products.

    “Now, you cannot expect them to sell PMS at N184/litre when the price of hiring a vessel has risen from 38,000 dollars to around 108,000 dollars to 111,000 dollars, depending on the type of vessel. These charges are paid in dollars.”

    He added that the cost of chartering daughter vessels to move products from the mother vessel to the  Private Depot Owners (PDOs) has jumped within months due to issues around the hike in diesel cost, foreign exchange concerns and other industry problems.

    “The products are moved to PDOs in Port Harcourt, Warri, Calabar, Lagos, etc, and by the time NNPC gives depot allocations, it becomes their responsibility to charter vessels that will take the products from the mother vessel to the depots.

    “So, that lack of purchasing power in terms of sourcing dollars to evacuate products from the mother vessel, and absence of vessels to move products due to the hike in hiring cost also contributed to ghost scarcity of PMS across states.

    “Ghost scarcity means scarcity that appears and disappears. You may be going to work in the morning and everywhere will be clear, but in the evening you will see queues,” the marketer stated.

    He said the ex-depot price had gone above N205 per litre due to insufficient volume of petrol  to supply the entire market by  NNPCL.

    According to the marketer, many DAPPMAN members have closed shop because NNPCL is unable to cope with the demand of petrol and most of the product is channel to neighbouring countries.

    “About 50 per cent of the product is leaving the country, NNPC does not have any money to subsidise the entire West Africa, which is not realistic because they do not have money.

    “The best option and the way out is to deregulate the downstream sector, but currently, government cannot deregulate because it’s election period,” said the marketer.

  • Giant strides in Nigeria’s oil and gas sector excite stakeholders

    Giant strides in Nigeria’s oil and gas sector excite stakeholders

    President Muhammadu Buhari has drawn accolades from stakeholders in the oil and gas sector of the Nigerian economy for the giant strides recorded in the industry.

    The stakeholders expressed satisfaction with the way President Buhari has handled his role as the Minister of Petroleum resources.

    They hailed the president for not stifling the independence and corporate authority of the agencies and institutions that he is supervising with overbearing presidential power.

    Similarly, the industry watchers commended the Nigerian National Petroleum Corporation (NNPC) Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for providing stability in the sector, especially since the coming onstream of the Petroleum Industry Act 2021.

    They listed several silver linings in the industry of late while highlighting the three massive efforts that have resulted in the turnaround of fortunes for the sector.

    First, is the resolution of the long-running ADDAX Petroleum saga. Second is the resolution of the ill-fated Seplat Oil purported purchase of EXXONMOBIL Nigeria Ltd, and the award of Oil Blocks OPLs 321 and 323 to NJ Exploration Ltd, a subsidiary of NUEL OJEI Holdings Ltd, after over 17 years of legal, corporate and political back and forth.

    Recall ADDAX Petroleum recently exited four Nigerian oil blocks: OMLs 123/124 and 126/127, amicably with the signing of a Memorandum of Understanding (MOU) on the Transfer, Settlement, and Exit Agreement (TSEA) by which the long-drawn disputes on the blocks operated by ADDAX was formally resolved and thus charting a course for much-needed investment and growth on the oil blocks.

    With this new setup, ADDAX has ceased as the Production Sharing Contract (PSC) contractor for the asset. In the same vein the NUPRC’s voiding of the purported purchase of EXXONMOBIL Nig Ltd by Seplat Oil, an action that President Buhari ultimately backed, acceded to the professional and technical advice of the regulators, industry and corporate players and critical stakeholders.

    But by far the biggest breath of fresh air in the oil and gas sector in recent times is President Buhari’s approval of the NUPRC re-award of OPLs 321 and 323 to NJ Exploration Limited, a subsidiary of NUEL OJEI Holdings Ltd – under a PIA guaranteed Sole Risk Arrangement.

    This award, the stakeholders believe, will galvanize NJ Exploration Ltd into reaching out to the Korean National Oil Corporation (KNOC), in the spirit of their long-standing relationship as well as other credible local and international players to partner with it to explore and develop the fields.

    Intriguingly, they noted that it took NJ Exploration Ltd 17 years to re-acquire the oil blocks first awarded to KNOC, its strategic partners, during the 2005 bid round under President Obasanjo.

    In 2009, the Federal Government headed by the late President Musa Yar’Ardua had voided the award and re-awarded it to ONGC-Videsh, which also participated in the 2005 bid round.

    KNOC ultimately resolved to go to court to reclaim what it felt rightly belonged to it. With the Supreme Court judgement of 2017, the coast became clear for the recommencement of exploration and development work on the blocks.

    The hope is that NJ Exploration Ltd, which has demonstrated uncommon resilience and strength of character in this over 17 years ordeal, should regard this golden opportunity as a basis of getting KNOC and other well-established global leaders in the industry back into the deal, and speedily engaging with the technical and logistic requirements for timely exploration and development of the blocks.

    Critical stakeholders in the industry are thus hopeful that fixing the mess in the oil and gas sector, a process already jumpstarted with the coming onstream of the PIA, would be further stimulated and accelerated by the resolution of the ADDAX petroleum and EXXON MOBIL saga and the re-award of Oil Blocks 321 and 323 to NJ Exploration Ltd 17 years after its successful participation in the 2005 bid round.