Tag: NNPC

  • Reps summon auditor-general over NNPC fuel subsidy payment documents

    Reps summon auditor-general over NNPC fuel subsidy payment documents

    The House of Representatives has summoned the Auditor-General of the Federation (AGF) to appear before it on Aug. 30, for an explanation of fuel subsidy payments between 2013 and 2022.

    The lawmakers want the auditor-general to provide documentary evidence on the audit carried out on the monies spent on fuel subsidy by the Nigerian National Petroleum Corporation (NNPC) Ltd.

    Rep. Ibrahim Aliyu, the Chairman, Special ad hoc Committee investigating the fuel subsidy, issued the notice in Abuja on Thursday.

    Aliyu made this known during the scrutiny of documents submitted by the representative of the Accountant-General of the Federation (AGoF), Mr Okolieaboh Sylvia.

    The AGoF was represented by the Director, Federation Accounts, Mr Mohammed Saleh.

    The lawmakers also directed the office of the AGoF to provide relevant financial transactions on the fuel subsidy for the period under review.

    In its bid to ensure fair hearing as enshrined in the law, the committee said it was expecting the AGoF to appear before it on Sept. 8 with relevant documents.

    The committee tasked the AGoF on the need to have an independent monitoring mechanism to verify the veracity of the transactions.

    The committee also expressed the need for the office of the AGoF to ensure due diligence by verifying the transaction documents submitted by all government agencies in line with its functions as spelt out in the Act.

    Rep. Mark Gbillah (PDP-Benue) after thoroughly scrutinising the documents, identified some discrepancies in the amount computed in the NNPC documents.

  • We will soon reveal ‘big men’ behind crude oil theft – Garba Shehu

    We will soon reveal ‘big men’ behind crude oil theft – Garba Shehu

    Malam Garba Shehu, Senior Special Assistant to President Muhammadu Buhari on Media and Publicity has said the federal government would soon reveal the identities of important personalities behind crude oil theft in the country.

    Shehu said that as part of efforts to rid the country’s economy from sabotage of greedy few, security operatives had raided locations where illegal oil bunkering thrive.

    Speaking on Trust TV’s Politics Today, Shehu hinted that there might be cases of some law enforcement agents engaging in the illegal act, but said that new measures were being taken to put a stop to it.

    “Oil theft is being tackled. The big problem we have in this country is that we ought to see more commitment from communities in assisting law enforcement agents. In some cases, where some actors in the law enforcement are complicit, it becomes bad,” he said.

    He added that it was embarrassing for Nigeria not to meet up with the quota given to it by the Organisation of Petroleum Exporting Countries (OPEC).

    “We used to fight the OPEC for more quotas; now, they have given us and we are not able to meet up. This is embarrassing. Security agencies are fully involved in stopping this act.

    “I am hopeful that in the next few days, the office of the National Security Adviser will be presenting to the country, big men who are promoters of this kind of business as they are being caught and illegal refineries are being bombed out.

    “The Nigerian National Petroleum Company (NNPC) Limited is also installing a monitoring capacity to detect or advise immediately when sabotage of oil pipelines happen,” he said.

  • IPMAN set to reduce scarcity of diesel

    IPMAN set to reduce scarcity of diesel

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has initiated plans to import the Automotive Gas Oil (AGO) diesel to cushion its scarcity in the country,

     

    TheNewsGuru.com reports that the energy crisis has engulfed Nigeria, especially the Federal Capital Territory (FCT) and other states, since the scarcity of diesel.

     

    The Premium Motor Spirit (PMS) petrol has been very scarce not for shortage of supply, but largely due to the inability of the transporters to fuel their trucks with the expensive diesel that convey it from the coastal depots to Abuja and up north.

     

    Besides, the highways are in a very sordid state, the IPMAN President, Alhaji Debo Ahmed, made these disclosures last night.

     

    According to him, the association is already negotiating with its stakeholders on how to import diesel into Nigeria.

     

    Ahmed noted that although the quantity will be large enough to cause a positive change in the ongoing energy crises in Nigeria, the Russian and Ukraine war would determine the quantity to a reasonable extent.

     

    He said: “But I don’t think there is going to be a problem. It is not going to last longer.

     

    “But there is always this panic buying. NNPC said the product is available. So we are waiting to see how the whole thing goes.

     

    ” We had some discussions with some of the stakeholders and very soon we will get our way to probably import more of diesel down.

     

    “We have had discussions with some of our stakeholders and very soon we will have some leeway to import the diesel into the country.

     

    “We are not the only persons other marketers are allowed to import diesel. So, we are looking at very soon.

     

    “It depends on what will be available because of the Ukraine war, there has been a lot of shortages across the whole globe because Ukraine and Russia are the suppliers of these products.

     

    “Now that they are at war it becomes difficult so it depends on the quantity available at the end there.”

     

    Asked why the marketers have been fond of the excuse of lack of forex as their setback, while the Nigerian National Petroleum Company (NNPC) is the sole importer of the PMS, he said the quest for forex is for the importation of diesel and not petrol.

     

    He was emphatic that the Federal Government has adopted the NNPC Limited the only importer of petrol.

     

    The President, however, noted that some members of the association had requested forex for the importation of diesel that its market is open to them.

     

    He added as an association, IPMAN is holding discussions with some major stakeholders on how to bring in the diesel.

     

    Ahmed said “What they (marketers) are asking for, is forex for diesel. Diesel, too, is scarce. It is only for diesel because the Federal Government has taken upon itself that it is only NNPC that imports products into this country, especially the PMS. But the forex they are asking for is for diesel is not for petrol.

     

    “But why is scarcity persisting in Abuja? The whole thing boils down to the availability of diesel. The cost of diesel is very high.

     

    “Most of these transporters have to go to the Southern depots to evacuate product down to the north, especially Abuja.

     

    ” But of late, the NNPC really arranged in a way that product will be coming to Abuja that is why you have a little leeway for sometimes now.

     

    “Now it has come to the point that probably the transporters have not been able to evacuate as much as they can.

     

    “But I don’t think there is going to be a problem. It is not going to last longer. Products are coming in and they are discharging in the stations.

     

    “NNPC said the product is available. So we are waiting to see how the whole thing goes. Except some of our members who have depots that would apply.”

  • Alleged harassment: IPMAN threatens to shutdown depots

    Alleged harassment: IPMAN threatens to shutdown depots

    The Independent Petroleum Marketers Association (IPMAN), South East Zone, has threatened to shut down depots in Calabar, Port Harcourt and Enugu over incessant police harassment of its leaders.

    Mr Robert Obi, Cross River Chairman, IPMAN, made the threat on Friday in Calabar in an interview with newsmen.

    Obi said the association decided to close all the depots and stations after a series of meetings with some stakeholders over police harassment of its leaders.

    He alleged that there were moves by the Police Legal Unit at the Force Headquarters in Abuja to arrest its executives across the zone and possibly install a factional leadership.

    He said that if the police arrest its leaders in the zone it would create more crisis in the association in spite of various court pronouncements laying the matter to rest.

    Obi said the Attorney-General of the Federation,  in a letter which was copied to Mr Chinedu Okoronkwo and his faction who lost out at the Supreme Court, had acknowledged Alhaji Sanusi Fari as the authentic National President of IPMAN and his depots and units chairmen.

    Obi frowned at the alleged illegal moves by the police authorities and some he described as “disgruntled elements” to either misinterpret the Supreme Court ruling or subvert the will of the people.

    He said their aim was to impose their cronies on the association even when the facts of the matter were very clear.

    “Despite the legal advice, the police are putting all arsenals to arrest the current executives of IPMAN in Nigeria, particularly in Calabar NNPC depot and allegedly hand the leadership of the association to the people of their choice.

    “IPMAN warns that further step shouldn’t be taken by the police to interfere with the current leadership of the association.

    “We will shut down the distribution channels of petroleum and allied products in Nigeria pending when the police do the right thing.

    “IPMAN leadership has resolved to continue with their rights in the constitution and abide by the extant laws and subsisting judgments of the courts in its favour,” he said.

    Newsmen reports that the zone has been embroiled in leadership crisis which led to various court cases.

    The South East Zone of IPMAN, comprises Enugu, Aba, Rivers, Cross River and Benue with more than 40 depots and 1,000 petrol stations with about 2,000 members.

    The zone has been having a running battle with officers of the Nigeria Police over alleged attempt by the police to force a factional leadership on the association.

    Meanwhile, Force Headquarters spokesman, Mr Olumuyiwa Adejobi, said he was not aware of the matter.

    Earlier, the Cross River Command of the Nigeria Police has said it is not in position to react to the allegation.

  • NNPC Limited releases financial report for October 2021

    NNPC Limited releases financial report for October 2021

    The Nigerian National Petroleum Company Limited (NNPCL) has released its monthly financial and operations report for October 2021, which shows the company supplied a total of 594 million standard cubic feet of gas per day (mmscfd) to gas-fired power plants in the country as against the 557mmscfd supplied in the previous month of September 2021.

    TheNewsGuru.com (TNG) reports the NNPC Limited’s Monthly Financial and Operations Report (MFOR) for October 2021 is the 75th in the series since the company started publishing the report in 2015.

    According to a statement released by Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPC Limited, the total gas supply to power for the month translates to an average power generation of about 2,944Mega Watts (MW) compared to 2,701 MW for the previous month.

    “A further breakdown of the gas production and supply matrix for the period under review shows that a total of 197.71 Billion Cubic Feet (BCF) was produced, while 121.05BCF was commercialized. Of the commercialized volume, 34.93BCF went to the domestic market while 86.13BCF was exported. This implies that 62.54% of the average daily gas produced was commercialized while the balance of 37.46% was re-injected, used as upstream fuel gas or flared,” the statement reads.

    In the Downstream, the report shows that a total of 1,101.02million litres of white products were sold and distributed by Petroleum Products Marketing Company (PPMC) in the month of October 2021, compared with 1,390.19 million litres in the month of September 2021. This comprised 1,098.17mil lion litres of PMS and 2.84million litres of AGO which also translates to a sales revenue of #147.36 billion.

    The report also shows that a total of 28 vandalized points were recorded on the company’s pipelines in October 2021, representing a 33.33% increase compared to 21 pipeline breaks recorded in September 2021 with the Mosimi and Port Harcourt Areas accounting for 96% and 4% respectively.

  • Fuel Subsidy Probe: Profile of 23 Oil Companies not in CAC – Reps

    Fuel Subsidy Probe: Profile of 23 Oil Companies not in CAC – Reps

     

    … as Reps vow to unearth them

    The House of Representatives Ad-hoc Committee investigating subsidy regime payments from 2013 to 2022 has said that the profiles of 23 oil companies trading in Nigeria were missing from Corporate Affairs Commission, CAC portal.

    The Chairman of the Committee, Hon. Mustapha Ibrahim Aliyu, at the resumed hearing of the investigative hearing on Wednesday told the oil companies in attendance to explain their role in the deal with the Nigerian National Petroleum Company, NNPC Limited .

    Aliyu read a list containing the name of the individual companies explained that a communication from the Corporate Affairs Commission (CAC), on the request of the committee came back without any information on the affected companies.

    He said that they have serious questions to answer, as the Committee will write to the embassies of the companies which were mostly expatriates to provide the details of their profiles.

    The letter with Ref. RGO/SU/VOL.5/2022/0248 dated 13TH July, 2022 signed by Maimunat Hamu. M on behalf of Register-General, read as follows “Kindly refer to your letter Ref: NASS/QHR/AHC/PPSRIM1/1H/01/051 dated 1st July, 2022 on the subject matter above.

    “Please be informed that we could not readily find information on the exact name of the following companies as provided in our record.

    “Emadeb Consortium; Britania-U Nig. Limtted; Totsa Total Ol Tradings SA; Petroleum Trading Nigeria Limited; Mocoh S.A; Socer Worldwide; Calson Bermuda Ltd; Hyson; Litasco S.A; Mercuria Energy; Cepsa Lubricant; Trafigura Pte; Vitol S.A; Ocanbed Trading Limited; Bonno Energy; West Africa Gas Limited; Petrogas; Matrix; Masters Energy; Amg; Barbedos; Hindustan and Patermina.

    “However, you may wish to provide the registration numbers or any other available documents at your disposal to enable us investigate further.

    “Kindly accept assurances of the Registrar General’s highest regards”, the letter reads.

    Similarly, another letter with Ref: NASS/9HR/AHC/PPSR/14/iH/01/051 dated 1st July, 2022 and our previous response with Ref RGO/SU/VOL.5/2022/0248 dated Wednesday 13″ July, 2022 on the subject matter also read by the Chairman had names of other oil companies who were to appear before the committee.

    “Please find attached five copies each of certified true documents and a flash drive in respect of the following companies”, the letter reads.

    They included Heyden Petroleum Limited RC: 433175; Graton Oil Limited KC: 644074; Duke Oil And Gas. Limited RC; 64456145; Matrix Energy Limited RC: 612026; MRS Companies Limited RC: 241,013; Sahara Trade Nigeria Limited RC: 352,443; Essar Exploration And Production Limited RC: 692910; Sahara Group Limited RC: 668626; Rainoil Limited RC: 257,444; Casiva Limited RC: 1091598; Petroleum Traiding And Supplies Company Limited RC: 506113; Napo Oil Limited RC: 333,354; Calson (Nigeria) Limited RC: 121, 474; A. A. Rano Nigeria Limited RC: 399320; JKR Maritime Oil & Gas Limited RC: 1166636; BP Oil development & Energy Services Limited RC: 1506132; A.A Rano Lubes Limited RC: 1531528; Starco Energy Trading Nig Ltd RC: 1135491; A.Y. Maikifi Oil & Gas Company Ltd RC: 973914 ;The Shell Petroleum Development Company Of Nigeria Limited RC: 892; Oando Oil Limited RC: 427325; A.Y.M. Shafa Limited RC: 296,875

    “We shall revert to you on the following companies as soon as we conclude our findings: Hyde Energy; Varo Energy; Eni-Trading; Levene Energy.

    “We could not readily find information on the exact name Petroleum & Gas Company Ltd in our record. However, you may wish to provide the registration number or any other available document at your disposal to enable us investigate further.

    “Kindly accept, assurances of the Registrar General’s highest regards. Yours, faithfully, Maimunat Hamu. For: Registrar-General”, the letter read.

    In his remarks, Hon. Aliyu said there will be questions to answer.

    “This Committee wrote to the Corporate Affairs Commission, CAC, requesting the commission to avail it with information on the following companies, about 57 companies. The commission wrote as follows: I read two letters that they have sent to us.

    “I will like to direct the NNPC to provide detailed profile of these companies. At this juncture, I say that all those companies that were invited to appear before this Committee should make their profile as part of their submission. And take this to be part of the requirements for submission before this honorable committee. Those company the commission couldn’t find their profile, they will have a lot of questions to answer particularly, NNPC.

    “This Committee will also write to their commercial desks of their various embassies if they are expatriates so that we can have full data of them”, he said.

    Earlier, the Committee quizzed the representatives of Sahara Energy Resources, Oando Plc, Hyde and AA Rano where they took turns to explain contract deals with the NNPC, saying they only lifted crude and were not part of the subsidy payments.

  • Oil theft: EU, NNPC officials, JTF visit illegal refining sites

    Oil theft: EU, NNPC officials, JTF visit illegal refining sites

    The European Union, the Nigerian National Petroleum Company Ltd (NNPC) and the Joint Task Force (JTF) Operation Delta Safe, on Friday visited an illegal refining site in Rivers, to inspect the impacts on the environment.

    The refinery, already destroyed by the JTF is located in  Ahoada  West Local Government Area of the state.

    The visit is for the EU, partners to assess things for themselves and how crude oil thieves set up illegal refineries and the adverse impact on the communities.

    Newsmen reports that the EU delegation comprises Ms Samuela Isopi, Ambassador to Nigeria and ECOWAS; Ms Cecile Leeman Team Leader, Southern partnerships EU Commission.

    Others are Mr Richard Young, Head of Division West Africa; Mr Thomas Kieler, Political Adviser, EU delegation to Nigeria; Mr Jerome Riviere, Programme Manager EU delegation to Nigeria; Mr Juan Sell, Ambassador of Spain to Nigeria.

    Mr Mele Kyari, Group Chief Executive Officer, NNPC, commended the JTF for their good work in the Niger Delta area, in safeguarding the nation’s oil and gas assets.

    He said Nigeria would soon curtail the breaches, and that they came with the development partners to see how much work was going on and how they could help to bring sanity, and restore oil production and security for everyone.

    “It cannot happen unless we are able to work together with all the reports; we are also ready for our partners to see things for themselves and the efforts that are being made to curtail the situation.

    “I commend the troops on the ground, working to ensure that the nation’s oil and gas sector is secured.

    “We believe by August we will be able to bring down the menace to a minimal level. It is not good for the community, it has a huge negative impact on the environment.

    “Today the livelihood of the people here are impacted, people doing the business are not from the community, they are actually from other places.

    “We are working with the community to take this out so that they can go back to their normal way of life.

    “We are happy we are here today to see things for ourselves and our partners,” he said.

    On his part, Rear Adm. Aminu Hassan, the JTF Commander, said within the period of three months, the taskforce destroyed more than 2,000 illegal refineries in the area.

    He said: “In one site here you can get between 50 to 100 composite units where everyone is operating; just like a market, everybody is doing his illicit business in one market. So, that is how they operate.

    “Within a refining site, you can get hundreds of units, everyone doing his own, within a week or thereabout you can succeed in destroying thousands.

    “Mechanically we are destroying their machines which they are very fast in constructing.

    “If you really want to suppress them, you must be faster than them, work ahead of them, that is why we introduced this equipment, you will be on top of the situation to be ahead of them,” he said.

    He said that the community was of great support to the task force.

    “So, to a great extent we are getting support from the community, we are urging them to also avail us with more information,” he said.

    He urged those indulging in such illegality to desist from such and find legitimate business, to better their lives.

    Also, Mr Mathew Baldwin, Deputy Director General, European Union Commission, said they were on fact finding mission, adding that oil theft and illegal refining remained a big problem.

    He commended the JTF and the NNPC, for the great work done to salvage and restore the Nigerian oil and gas sector.

    “We are here to find and understand the problem, if the production is used for the local market and if most of the production is going into the international market.

  • 2023:Akwa Ibom  REC’s action not a reflection of INEC’s impartiality -Hon Eyiboh

    2023:Akwa Ibom REC’s action not a reflection of INEC’s impartiality -Hon Eyiboh

     

    Hon Eseme Eyiboh, a candidate on the platform of the All Progressives Congress (APC) in Akwa Ibom, has said the position of the state’s Resident Electoral Commissioner (REC) does not reflect the impartiality expected of the Independent National Electoral Commission (INEC).

    Eyiboh who is seeking to represent Eket/Onna/Esit Eket/Ibeno constituency in the house of representatives made this assertion at a media briefing over the weekend, the APC candidate said the role of Mike Igini, the Akwa Ibom REC, should be addressed by INEC so as not to affect the party in the 2023 elections.
    IGINI, APC AND THE AKWA IBOM PRIMARIES

    Recall that Igini had, in a report submitted to INEC, said the party does not have a governorship candidate, going by the primaries monitored by election officials.

    The development came amid a leadership crisis, which had produced two sets of executives — one led by Stephen Ntukekpo and the other by Augustine Ekanem.

    The Ntukekpo-led executives are said to be loyal to Godswill Akpabio, former Minister of Niger Delta Affairs, while that of Ekanem had been reportedly backed by John Akpanudoedehe, former secretary of the APC caretaker committee.

    Meanwhile, a Federal High Court in Abuja, in March 2022, sacked the Ekanem-led officials, and described their election as a result of “illegality”.

    Taiwo Taiwo, the presiding judge, had also directed INEC to recognise the Ntukekpo-led executives, and described them as the duly-elected officials of the party in Akwa Ibom.

    In the report, Igini had said a governorship primary was scheduled to hold at the Sheergrace Arena in Uyo, but the exercise did not hold, adding that he was later informed that another primary organised by the Ntukepo-led executives held at a different venue.
    He, however, said the primary was not recognised.

    THE AKPABIO ANGLE
    In yet another development, Akpabio, who had contested the APC presidential ticket but later stepped down for Bola Tinubu, clinched the senatorial ticket for Akwa Ibom north-west at a primary organised by the APC on June 9.

    The exercise which saw Akpabio win the senatorial ticket followed the withdrawal of Ekperikpe Ekpo, who had won an earlier primary that was later cancelled by the party.

    However, the Akwa Ibom REC had insisted that INEC officials did not monitor any primary outside the one conducted on May 27, which was won by Udom Ekpoudom, a former Deputy Inspector-General of police (DIG).

    Meanwhile, INEC has published the names of candidates elected during the primary organised by the Ntukekpo-led executives.

    But Akpabio’s name was not listed as a candidate for the 2023 elections, even though the APC had submitted his name to the electoral commission for Akwa Ibom north-west.

    ‘SHOULD APC BE PUNISHED FOR INEC’S ABSENCE AFTER GIVING DUE NOTICE?’
    Speaking on the issues around the primaries and concerns about Igini’s stance regarding the exercise, Eyiboh said personal sentiments should not be allowed to affect the activities of an organisation like INEC.

    He also shared a letter dated June 21, 2022, addressed by INEC to the APC, stating that the electoral body, in complying with the judgment of a Federal High Court, recognises Ntukekpo as the chairman of the party in Akwa Ibom.

    “The Commission wishes to formally draw your attention to the subsisting judgement/order of the Federal High Court, Abuja (Suit No: FHC/ABJ/CS/1635/2021) which recognized Hon. Obong Stephen Leo Ntukekpo as Chairman of the APC in Akwa Ibom,” the letter, signed by Rose Oriarah-Anthony, reads.

    “This is to note that the commission is complying with the content of the judgement.”
    Eyiboh also shared other documents of correspondence involving INEC and the party, adding that the case challenging the leadership of Ntukekpo has been resolved at the court of appeal.
    He, however, expressed reservations over Igini’s stance on the earlier primaries, adding that such comments go against what the commission should stand for in terms of impartiality.

    “Twenty-one days’ notice is the statutory requirement for all political parties to inform INEC of its party primaries. And all the parties, including APC, notified INEC of the conduct of its primaries across the country, including Akwa Ibom. So, the state chairman of the party, who is Ntukekpo, wrote to INEC informing INEC of the venue, date of the conduct of the governorship, senate, house of reps and state house of assembly primaries in full compliance with the electoral act,” he said.

    “It is the responsibility of INEC as an institution to engage its administrative procedures once the notice is given. It must not necessarily be the resident electoral commissioner. But the law stipulates that the political party must give 21 days’ statutory notice.

    “So, the question is this. Did the political party issue this 21 days’ notice? Did they notify INEC of the venue, time, and date? The answer is yes. Whose responsibility is it to send monitors to go to that place? It is INEC’s responsibility. And when INEC refuses to send its personnel to go to that place, can a political party be punished for INEC’s absence? The answer is no.”

    However, INEC has asked candidates such as Akpabio, whose names are missing, to seek redress in court.
    On Igini’s stand regarding the conduct of primaries in the state, Eyiboh said INEC needs to do better to improve on the electoral process.

    “He acted not only ultra vires, he acted in contempt of his scope of office as a public officer. He conducted himself in a way and manner that was suggestive of not a representative of an INEC that is supposed to be impartial,” he added.

    “What Igini is doing, can he function in his public duties using his personality to represent INEC in cases which are purely out of his control? We are not promoting ethical values and institutional integrity. It’s like we’re promoting a personal conflict.”

    Eyiboh said while he wasn’t speaking on behalf of Akpabio or the party, he was concerned because whatever affects the party, affects him as a candidate.

    “We should be able to raise the stakes of our electoral values, the institutional integrity, and social democratic values by trying to detach individual personalities from the institutions,” he said.

    “INEC has done very well to improve on the electoral system. But that is not enough. Their officers should detach their personal opinions and sentiments from the institution.

    “As a political party, we are going to have post-primary conflict here and there. So, what we are trying to do now is to engage a series of conflict management strategies, talk to party members, and we are lucky to have very strong personalities in APC in Akwa Ibom.

    “On the issue of governorship, when Igini said APC has no candidate, that is not right. Our governorship candidate, Akanimo Udofia, has been most celebrated in recent times.”

    Meanwhile, Akpanudoedehe has since resigned his membership of the APC, and he is now the governorship candidate of the New Nigeria Peoples Party (NNPP) in Akwa Ibom.

    #

  • FLASH: Reps probe NNPC’s JV, production sharing contracts in last 32 years

    FLASH: Reps probe NNPC’s JV, production sharing contracts in last 32 years

    Just a day after the Nigerian National Petroleum Corporation transformed into the Nigerian National Petroleum Company Limited, the House of Representatives has begun a major probe into its Joint Venture (JV) operations and Production Sharing Contracts (PSCs), beginning from 1990 till date.

    TheNewsGuru.com (TNG) reports that the probe covers a period of 32 years, the objective of which, according to the House, is to ascertain “whether or not the capital expenditure, operations, financials and related frameworks are within the ambit of the law”.

    An ad-hoc committee will execute the assignment within eight weeks as approved by the resolution of the House passed during plenary in Abuja on Thursday. The session was presided over by the Deputy Speaker, Rep. Ahmed Idris Wase in the absence of the Speaker, Rep. Femi Gbajabiamila.

    Six lawmakers moved the motion that led to the House resolution. They were Rep. Sergius Ogun, Rep. Sada Soli Jibiya, Rep. Isiaka Ibrahim Oyekunle, Rep. Benjamin Kalu, Rep. Ado Sani Kiri and Rep. Mark Gbillah.

    The motion reads, “The House: notes that section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly;

    “Also notes that Escravos Gas-to-Liquid (EGTL) Project is a Joint Venture (JV) undertaking by the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited for the construction of a 34,000 Barrels Per Day (BPD) of Gas-to-Liquids (GTL) Plant at Escravos, Delta State;

    “Further notes that a total of $1.294 billion was earmarked for the EGTL project in 2001 and by the time the contract was awarded in 2005, the final approved cost rose to $2.941 billion, which was further increased to $8.6 billion as at 31st December 2011, and upon completion in 2014, the total project cost was over $10 billion;

    “Concerned that the ETGL and its JV projects are executed at such huge costs when similar projects in other jurisdictions like Qatar, which have the same capacity, technology, Engineering Procurement and Construction (EPC) Contractors and even operators cost less than $1.5 billion;

    “Also concerned that although EGTL projects are governed by the Heads of Agreement (HOA), Carry Agreement (CA) and the Venture Agreement (VA) in line with various legal regimes such as Companies and Allied Matters Act (CAMA), Petroleum Profit Tax Act (PPTA), Companies Income Tax Act (CITA) in principle, there is a breach of the principles involved;

    “Worried that the Bonga field (OML 118), which is owned by the NNPC but contracted to SNEPCO (55%), ExxonMobil (20%), Agip exploration (12.5%), and Total (12.5%) under the Production Sharing Contract (PSC) now seems to be far from being a PSC arrangement as it runs foul to the relevant financial operational laws;

    “Also worried that the Offshore Gas Gathering System (OGGS) which was designed to gather gas from various upstream projects in the Niger Delta region under a PSC and JV arrangement with companies such as SNEPCO, SPDC, NLNG has now become mired in some operational misunderstandings;

    “Disturbed that in the brewing misunderstanding, SPDC and SNEPCO allegedly went into certain gas sales and sharing arrangements without the prior knowledge and/or consent of the Federal Government via the NNPC, which has resulted in certain shortfalls in revenue into the Federation Accounts.”

  • BREAKING: FG to spend N6.72 trillion on fuel subsidy in 2023

    BREAKING: FG to spend N6.72 trillion on fuel subsidy in 2023

    Nigeria’s federal government (FG) has said it would make a provision of N6.72 trillion for fuel subsidy in 2023.

    TheNewsGuru.com (TNG) reports the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed disclosed this in Abuja on Thursday.

    Mrs Ahmed disclosed this during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.

    The Finance Minister said the amount would remain and be fully provided for by the NNPC on behalf of the federation.

     

    Details shortly…