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Tag: NNPC

  • FACT CHECK: New PMS price review not authorised by NNPC

    FACT CHECK: New PMS price review not authorised by NNPC

    Following weeks of fuel scarcity in some parts of the country, reports emerged Tuesday that the Nigerian National Petroleum Company (NNPC) Limited had “quietly” approved an upward review of the pump price of Premium Motor Spirit (PMS).

    According to reports, the directive which was allegedly issued by the NNPC to fuel marketers varied according to geo-political zones and was to come into effect from Tuesday.

    The ex-depot price was also allegedly increased from N148.17 to N167 per litre.

    How true are these claims?

    The responsibility of regulating petrol price in the country falls directly falls under the purview of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA).

    Spokesperson for NNPC Limited Garba Deen Muhammad, said Wednesday that “the NNPC no longer approves pump price review. NNPC has already exited all that situation. We are operating just like MTN now”.

    Similarly, the managers of two petrol filling stations confirmed to TheNewsGuru.com (TNG) on Tuesday that the purported claimed that the directive came from the NNPC was false and that the oil marketers unilaterally adjusted the price to cover their business costs.

    Most filling stations visited were selling petrol for between N185 and N200 per litre, with the exception of NNPC Limited which sold at N169 per litre.

    Verdict

    False: Reports that NNPC Limited quietly reviewed fuel price upward is therefore false and should be disregarded by the public.

  • NNPC Ltd to disclose new asset base – Kyari

    NNPC Ltd to disclose new asset base – Kyari

    The Nigerian National Petroleum Company Limited (NNPC Ltd) says its huge asset base will be disclosed soon in view of its current status.

    Malam Mele Kyari, Group Chief Executive Officer of NNPC Ltd made this known on Tuesday at a media chat after the Presidential unveiling of the New NNPC Limited at the Presidential Villa, Abuja.

    President Muhammadu Buhari unveiled the new NNPC Ltd. which would operate as a profitable commercial entity and declare dividends to its 200 million shareholders.

    The Petroleum Industry Act (PIA) provides for the transition of NNPC into a fully commercial entity, a Limited Liability Company incorporated under the Companies and Allied Matters Act (CAMA), to be known as the Nigerian National Petroleum Company Ltd.

    The Africa’s largest National Oil Company (NOC) would also support sustainable growth across other sectors of the economy as it delivers energy to the world.

    The Group CEO said the organisation’s structure would be changed so as to get different results while more competencies would be embraced.

    “We now have a smarter, more responsive, and more accountable company that must act within the premises of all the regulations that are accountable for private companies.

    “We must also meet the standards for best practices in the industry, in terms of governance and make sure that all regulations are applied.

    “We must ensure that we deliver back to back to all our stakeholders, ” he said.

    Kyari said that its value would translate in two forms: ensuring dividends and delivering energy being longed by shareholders.

    He said the new company was in the position to achieve both mandates because it was now an enabling company that could act quickly and can also make decisions quickly.

    He said that by the middle of 2023, the company would be having systems, processes, line of profitability, and accountability to stakeholders.

    On subsidy, he said the NNPC Limited had no issue with it rather it would be an issue of the state.

    “Whatever is the decision and policy of the state, the NNPC is there to deliver commercial value to the customer at the price that the state want,” he said.

  • Five facts about the newly unveiled NNPC Limited

    Five facts about the newly unveiled NNPC Limited

    Nigeria’s President Muhammadu Buhari has today unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited) in line with the provisions of the Petroleum Industry Act (PIA), 2021.

    The transition from a corporation, which took place at the State House, Abuja, is aimed at promoting transparency, accountability and energy security.

    Speaking at the event, President Buhari described the unveiling as a landmark event that will position the NNPC to compete with other developed countries globally.

    It is worthy to note that President Buhari lead the creation of the NNPC on July 1, 1977, signed the PIB 44 years later in 2021 and today unveiled the switch from a corporation to a limited liability company.

    The Act enables NNPC Limited to run a commercial and profit-focused operation as an organisation under the Companies and Allied Matters Act (CAMA).

    As Nigerians grapple to understand the implications of the transition, here are five facts to note:

    1. The NNPC has not been sold as it is still wholly owned by the Federal Government but will operate like a commercially-run Limited Liability Company.
    2. Operations of the new NNPC will be run by a Board of Directors chaired by former Senator Margaret Cuba Okadigbo.
    3. The nomenclature of the Group Managing Director (GMD) has changed to Group Chief Executive Officer (GCEO), in line with the PIA.
    4. The new NNPC Limited will be regulated in line with CAMA.
    5. NNPC has over 200 million shareholders, with N200 billion share capital, the highest for any single company in the country.

    ALSO READ || NNPC now free from institutional encumbrances – Buhari declares

    The unveiling ceremony today was attended by Senate President Ahmed Lawan, Speaker of the House of Representatives Femi Gbajabiamila, Minister of State for Petroleum Resources, Timipre Sylva, Group Managing Director of NNPC Mele Kyari, Secretary to the Government of the Federation, Boss Mustapha and other stakeholders in the oil and gas sectors.

  • NNPC now free from institutional encumbrances – Buhari declares

    NNPC now free from institutional encumbrances – Buhari declares

    President Muhammadu Buhari on Tuesday officially unveiled the Nigerian National Petroleum Company (NNPC) Limited and declared that the new national oil company is now forthwith free from institutional encumbrances.

    President Buhari unveiled the new NNPC Limited while affirming that the company is mandated by law to ensure that Nigeria’s National Energy Security is guaranteed.

    Speaking at the historic occasion at the State House Conference Centre, the President said Africa’s largest NOC would also support sustainable growth across other sectors of the economy as it delivers energy to the world.

    “The provisions of PIA (Petroleum Industry Act) 2021, have given the Nigerian petroleum industry a new impetus, with an improved fiscal framework, transparent governance, enhanced regulation, and the creation of a commercially-driven and independent national oil company that will operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement, and Fiscal Responsibility Acts.

    “It will, of course, conduct itself under the best international business practice in transparency, governance, and commercial viability,” President Buhari said.

    At the event, which featured a Special rendition of the Theme Song ”Energy for today, Energy  for tomorrow, Energy for Everyone’‘ by an Ensemble, the president recounted how God had used him to consistently play an important role in shaping the destiny of the country’s NOC in the last 45 years.

    He expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).

    ‘‘This is a landmark event for the Nigerian oil industry.

    ‘‘Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements.

    ‘‘We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.

    ‘‘By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on July 1, 1977. Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector,” he said.

    According to him, the provisions of PIA 2021, have given the Nigerian petroleum industry a new impetus, with improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent National Oil Company.

    He said this would enable the company to operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.

    ‘‘It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.

    ‘‘Coincidentally, I, on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest National Oil Company today.

    ‘‘I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great,’’ he added.

    The president, therefore, assured stakeholders in the industry that Africa’s largest NOC would adhere to its fundamental corporate values of Integrity, Excellence and Sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.

    He further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the day days after tomorrow.

    He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.

    Minister of State for Petroleum Resources, Timipre Sylva, said with the signing of the PIA, which assured international and local oil companies of adequate protection for their investments, ”the nation’s petroleum industry is no longer rudderless”.

    He said: ‘‘From the onset of this administration, Mr. President never concealed his desire to create a more conducive environment for growth of the oil and gas sector, and addressing legitimate grievances of communities most impacted by extractive industries.

    ‘‘While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50 billion worth of investments.

    ”In fact, between 2015 and 2019, KPMG states that “only 4 percent of the $70 billion investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.

    ‘‘We are setting all these woes behind us, and a clear path for the survival and growth of our petroleum industry is now before us.”

    Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships.

    He thanked the president for his ”unparalleled leadership, steadfastness, and unalloyed support towards ensuring that the country’s oil and gas industry is on a sound footing”.

    The Group Chief Executive Officer of NNPC Limited, Mele Kyari, announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months.

    He assured stakeholders and the global energy community that the new company was endowed with the ‘‘best human resources one can find anywhere in the industry.

    ‘‘NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world.”

  • Scarcity: How we are tackling fuel queues in Abuja – NNPC

    Scarcity: How we are tackling fuel queues in Abuja – NNPC

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its weekly activities with a resolve to quickly end the incessant queues at various filling stations in the Federal Capital Territory (FCT), Abuja.

    By this resolution, the company in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stepped up the supply of Premium Motor Spirit (PMS) to the FCT from 70 to 140 trucks to combat the lingering fuel queues.

    Speaking to newsmen during an inspection tour of filling stations in Abuja, NNPC’s Group Executive Director, Downstream, Mr Yemi Adetunji, explained that there were enough petrol in the nation’s strategic reserve to last 32 days.

    “We have 1.9billion litres of PMS that can last for 32 day. NNPC is making every effort to ensure energy security for the country.

    “We have sorted out Lagos. We are working with all relevant stakeholders to bring the situation in Abuja under control; normalcy will be restored in the next few days.”

    Speaking earlier, the CEO of the NMDPRA, Mr Farouk Ahmed, said that the improvement in the supply of products from an average of 70 to 140 trucks was made possible by the Presidential approval of a ₦10 freight rate discount increase to petroleum products transporters as part of solutions to the fuel supply challenge.

    He charged marketers to play by the rules as NMDPRA would not hesitate to sanction anyone found to be involved in underhand practices.

    “We are doing everything to bring the situation to normal. We also want to state that there is no increase in the pump price of PMS, and any such sharp practice will be sanctioned accordingly by the Authority,” he said.

    The tour of the filling stations was to monitor developments and ensure compliance.

    In another development, Major stakeholders in the downstream sector of the oil and gas industry have suggested ways to mitigate the continuous rise in prices of diesel and cooking gas in Nigeria.

    Among the stakeholders who spoke at a public hearing organised by the House of Representatives Joint Committees on Downstream and Gas Resources in Abuja were the Chief Executive Officer of the NMDPRA, Mr Farouk Ahmed and the Group Managing Director/CEO of NNPC Ltd, Malam Mele Kyari.

    Leaders of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Independent Petroleum Marketers Association Of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Liquefied petroleum gas (LPG) Gas Marketers Association, among others, were also in attendance.

    Fielding questions from members of the committee, Ahmed said that the current geopolitical crisis in Ukraine and Russia had affected the global crude oil supply resulting in the increase of petroleum products prices across the globe.

    Ahmed said that the rise in the prices of petroleum products was a global phenomenon and not a local problem peculiar to Nigeria.

    He added that the landing cost of petroleum product was also a major factor affecting the price of petroleum products.

    “We need to see what can be done to alleviate the suffering of the people.

    “If our refineries come back on stream and make foreign exchange available at the official rate of N400 per dollar, things will definitely improve.

    “We also need to address the issue of vandalism,” he said.

    On his part, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the only way to tackle the rising price of diesel and cooking gas was to increase the production of crude oil.

    Kyari said that acts of vandalism of oil facilities have been responsible for the decline in production which in turn was responsible for the unavailability of foreign exchange.

    He disclosed that 27,000 barrels were lost in a recent attack on one of the company’s facilities.

    According to him, besides the Russia-Ukraine war which is affecting the supply of products across the world, most major oil companies are also shutting down in keeping with global emphasis on the shift from fossil fuels over environmental concerns.

    “No one can guarantee stability of petroleum products supply; the world has never seen this kind of uncertainty. Today, countries are stockpiling products.

    “Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil but with the ongoing intervention, by the end of July we will restore production to a level that is reasonable.”

    The Chairman, House Committee on Downstream, Rep. Abdullahi Gaya, said that there was need to find solution to the high cost of diesel and cooking gas in order to alleviate the hardship on Nigerians.

    Some of the lawmakers said that although Kyari and Ahmed candidly presented the worrisome situation the industry was faced with, they, nevertheless unanimously expressed confidence in their ability to bring the situation under control.

    The stakeholders present at the hearing include the Independent marketers, suggested a short, medium and long term solutions to combat the challenges.

    They also pledged to work with the NNPC and the regulatory agency to redress the situation.

    Meanwhile, the Management of NNPC Ltd. sensitised members of staff to the challenges and opportunities inherent in the transition from a corporation to a limited liability company.

    This was in continuation of its stakeholders’ engagement to achieve a smooth transition.

    The NNPC GMD/CEO, Kyari, said at a town hall meeting which held at the NNPC Towers, that it was imperative for all staff to embrace the change with courage and look beyond the temporary discomfort to the huge opportunities that lie ahead of the new NNPC.

    He commended President Muhammadu Buhari for the courage to have signed the Petroleum Industry Act (PIA) into law, pointing out that the lack of effective regulatory framework and unbridled government interference were responsible for NNPC’s losses in the past.

    “NNPC is now free of burden.

    “Nigerians are looking up to us, they expect NNPC to lead the way in making profit and adding value for the benefit of the over 200 million stakeholders.”

    Kyari said that given the volume of the Company’s assets that was signed and transferred officially on July 1, 2022, by the Ministers of Petroleum Resources and Finance respectively, the new NNPC would be the most capitalised company in Africa and would be poised to announce its first Initial Public Offer (IPO) in the next three years.

    He also informed that the company’s financial statement for the year 2021 would be better than that of year 2020 when NNPC reported a profit after tax of 287 billion naira.

    In her remarks, the Chairman of the NNPC Ltd., Sen. Margery Chuba-Okadigbo, assured of the Board’s continuous support towards the realisation of the goals of the new NNPC Ltd., while encouraging members of staff to imbibe the concepts of dynamism and creativity required for global competitiveness.

    She said that deducing from her experience at the helm of the NNPC Board, she had conviction to endorse the GMD’s policies on transparency and accountability, noting that the company as envisioned by the PIA can only achieve its objectives through firm commitment to excellence on the part of the entire workforce.

    Also in the week under review, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the marginal oil fields bid rounds kick-started in the year 2020 with the award of Petroleum Prospecting Licences (PPLs) to 161 successful companies.

    The commission also officially unveiled the Host Communities Development Regulations and model PPLs.

    Speaking at the event in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the presentation of the Licences was part of the implementation of the PIA 2021.

    He also noted that the category was being handled for the first time.

    The minister who commended the management and staff of the NUPRC for ensuring the successful completion of the process, described the conclusion of the process as a giant milestone for the administration.

    “The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.

    “As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.

    “It is my strong belief that the awardees will take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.

    “The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,” Sylva said.

    He added that the development would boost activities in the oil and gas sector, increase production output and create additional employment opportunities for Nigerians.

    On his part, the Chief Executive Officer of NUPRC, Mr Gbenga Komolafe, said that the Marginal Field Bid Round was one of the major tasks inherited by the commission on its inauguration in 2021.

    He listed some of the constraints that caused the delay in the conclusion of the exercise to include, the interruption brought about by the COVID-19 pandemic, partial payment of Signature Bonuses by some awardees, and the unwillingness of some co-awardees to work together in forming SPVs for field development.

    Recounting the history of the marginal field’s award initiative, Komolafe said that the process which began in 1999 was borne out of the need to entrench the indigenisation policy of the Federal Government in the upstream sector.

    He also said that the aim was to boost local content, stressing that since its inception, a total of 30 fields had been awarded with 17 currently producing.

    He disclosed that the 2020 Marginal Field Bid Round exercise raked in revenue of about 200 million naira and 7 million dollars into the Federal Government coffers.

    Komolafe added that the conclusion of the 2020 Marginal Fields Bid Round brought to an end the era of Marginal Field awards as stipulated by the PIA.

    “Section 94 (9) of the Act states that no new marginal field shall be declared under this Act.

    “Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act.”

    He urged the winner of the marginal fields to take advantage of the current market realities and quickly bring their fields to production, stressing that Nigeria was not benefiting much from the upswing in crude oil prices because of production disruptions occasioned by sabotage, theft, and other operational challenges.

    A total of 57 marginal fields were presented in the 2020 bid round out of which 41 were fully paid for and 37 fields were issued with the PPL, having satisfied all conditions for award.

    Out of the 665 firms that expressed interest in the exercise, 161 emerged as potential awardees.

    Some of the successful companies that received their licences include: Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd., Sigmund Oil Field Ltd., and Shafa Exploration and Production Company Ltd., among others.

    Still in the week, NNPC Ltd. said it was committed to fast-tracking efforts to identify new gas resources and develop existing ones amidst current global yearning for cleaner fuels.

    NNPC also said it was making efforts to identify new gas resources to boost revenues for investment in other sectors of the economy as part of its preparation for the global energy transition.

    The NNPC GMD/CEO, Malam Mele Kyari, stated this in a keynote address at the First E&P’s 10th Year Anniversary event which held in Lagos.

    The GMD, who was represented virtually by NNPC’s Chief Financial Officer, Mr Umar Ajiya, delivered the address with the theme, “Scarcity in Abundance: How Gas can Enable Energy Access in Nigeria and Africa”.

    He said that though Nigeria remains determined to achieve net-zero carbon emission by 2060, there was absolute need to harness the country’s abundant hydrocarbon resources to actualise that objective.

    He emphasised that with the enactment of the PIA, and the introduction of such initiatives as the Decade of Gas and the Gas Transportation Network Code, Nigeria sought to open up robust and quick business opportunities for both indigenous and foreign investors in the gas sector.

    “I make bold to say that harnessing our abundant resources remains Nigeria’s major pathway towards leveraging gas, the least carbon-emitting fossil fuel, as a transition fuel.

    “To this end, massive gas development efforts are ongoing, including the construction of a 614km gas pipeline which is aimed at enabling gas transportation to the North of the country and ultimately beyond Nigeria.”

    Kyari also congratulated the Board, Management and Staff of First E&P on the 10th anniversary of the company which he described as “historic milestone”.

  • Reps take action to probe subsidy payments under Buhari

    Reps take action to probe subsidy payments under Buhari

    The House of Representatives has resolved to investigate payments for subsidies on petroleum products primarily Premium Motor Spirit popularly known as petrol under the regime led by President, Muhammadu Buhari.

    But Nigerians are wary over the way subsidy issues are shrouded in sefrecy, while citizens continue to wallow in abject poverty and impoverishment.

    With discrepancies between figures allegedly consumed daily and lower that figures allegedly used to calculate subsidies, confidence in governance has continued to Wane.
    But Speaker of the House, Femi Gbajabiamila, is to set up an ‘Ad Hoc Committee to Investigate the Petroleum Products Subsidy regime from 2017 to 2021,’ which is to report back to the House within eight weeks for further legislative action.

    The probe is based on a motion titled ‘Need to Investigate the Petroleum Products Subsidy Regime in Nigeria from 2017 to 2021,’ which a member of the House, Sergius Ogun, moved at the plenary on Wednesday and the lawmakers unanimously adopted.

    Ogun noted that Section 88 (1) and (2) of the 1999 Constitution empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

    He also noted that Section 32 of the Petroleum Industry Act, 2021, saddles the Petroleum Midstream and Downstream Regulatory Authority with regulating and monitoring technical and commercial midstream and downstream petroleum operations in Nigeria.

    The lawmaker said as of 2002, the Nigerian National Petroleum Corporation’s purchase of crude oil at international market prices stood at 445,000 barrels per day in order to enable it to provide petroleum products for local consumption;

    “The House is concerned that as of 2002, the installed capacity of Nigeria’s local refineries stood at 445,000 barrels per day, however, their capacity utilisation began to nosedive and eventually fell completely to zero due to the ineffectiveness and alleged corruption of critical stakeholders in the value chain,” he said.

    Ogun explained that due to the decline in the production capacity of the refineries, the NNPC, now Nigerian National Petroleum Company Limited, found it more convenient to export domestic crude in exchange for petroleum products on a trade-by-barter basis, described as Direct Sales Direct Purchase arrangement.

    The lawmaker pointed out that the component costs in the petroleum products subsidy value chain claimed by the NNPC is “highly over-bloated,” while the transfer pump price per litre used by the NNPC in relation to PPMC is under quoted as N123-N128, instead of N162-N165, “and this fraudulent under-reporting of N37-N39 per litre translates into over N70bn a month or N840bn a year.”

    He said, “The House is worried that the consumption rate of PMS is 40million to 45million litres per day. However, the NNPC uses 65 million to 100 million litres per day to determine subsidy as discoverable from NNPC’s monthly reports to the Federal Allocation Committee.

    “The House is also worried that the NNPC and other critical stakeholders have unscrupulously used the subsidy regime to subvert the nation’s crude oil revenue to the tune of over $10bn, with records showing that as at 2021, over $7bn in over 120 million barrels have been so diverted.

    “The House is disturbed that there exists evidence that subsidy amounts are being duplicated, thus subsidy is charged against petroleum products sales in the books of NNPC as well as against crude oil revenue in the books of NAPIMS to the tune of over N2tn.”

  • Fuel subsidy: NNPC pays N74bn to marketers in 7 months

    Fuel subsidy: NNPC pays N74bn to marketers in 7 months

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has paid the sum of  N74  billion to oil marketers as bridging claims in the past seven months.

    The authority made this known in a statement signed by Mr Kimchi Apollo, the General Manager, Corporate Communications, NMDPRA, on Wednesday in Abuja.

    “So far, the authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to oil marketers as of June 6, 2022,” Apollo said.

    He said the authority’s attention was drawn to allegations made by the Independent Petroleum Marketers Association Nigeria (IPMAN), Suleja Branch) on product scarcity as a result of non-payment of bridging claims.

    Apollo said the Major Oil Marketers Association of Nigeria (MOMAN) received N9.96 billion while IPMAN members were paid N42.30 billion.

    He said NNPC Retails received N6.66 billion while DAPPMAN members were paid N12.30 billion. which translated to a total of N73.97 billion.

    He said the Chief Executive of the NMDPRA, Mr Farouk Ahmed, at a meeting on May 17 with IPMAN discussed bridging payment extensively.

    Apollo said that the processes were explained and agreed upon by IPMAN.

    He said that Ahmed assured IPMAN of NMDPRA’s willingness to continue the payment of outstanding claims to promote seamless operations.

    Pursuant to the meeting, he said the NMDPRA made additional payment of N10 billion in June and sought for an upward review of the freight rate which was approved by President Muhammadu Buhari and currently being implemented.

    “It is disheartening that despite these payments and increase of N10 bridging cost, which was approved by President Muhammadu Buhari, IPMAN could turn around to accuse the NMDPRA of insensitivity,” he said.

    “The authority wishes to reiterate that bridging payment is an ongoing process which is carried out after due verification by the authority and marketers,” he said.

    He expressed NMDPRA commitment to ensuring a safe, efficient, and effective conduct of midstream and downstream petroleum operations.

  • No refinery is functional in Nigeria – NNPC GMD

    No refinery is functional in Nigeria – NNPC GMD

    Mr Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Company (NNPC) Ltd says there is no single refinery working at the moment in the country.

    Kyari disclosed this when he appeared before the House of Rep joint Committee on Petroleum Resources (Downstream) on Tuesday in Abuja.

    The committee is investigating the increased in prices of diesel and cooking gas.

    Kyari said that the country’s refineries were not working at the moment, adding that the situation was regretable but the NNPC was doing something to bring the refineries back to work.

    According to him, the refineries will not come back tomorrow, there is a process going on. “We have decided to do a quick fix for Warri refinery.”

    He said that no one could guarantee the security of petroleum supply, adding that countries were preserving excess volume that they had in their kitty.

    “The world has never seen this kind of uncertainty, today countries are stockpiling products. Shortly before COVID-19 the world was already facing shortfall of 3 million barrel of supply of oil,” he said.

    He said that there had been no control to manage the energy crisis across the world, stressing that ” to guarantee energy security means you just make product available at anytime and by any cost.”

    The GMD also disclosed that over 200 illegal refineries were being operated across the country.

    He said that the solution was to restore crude oil production, adding that there was a massive intervention that was ongoing and by the end of July “we will restore production to a level that is reasonable.

    “Many European countries are asking for rationing gas, they are asking people to alternate their Air Conditioning.

    “Today, countries are toying with subsidy because prices are so high because they don’t think they can manage inflation associated with it.”

    Mr Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum, said that the current geopolitical crisis in Ukraine and Russia had resulted in the increase of petroleum product.

    He added that  this was because Russia was one of the major producer, adding that the war had affected petroleum products and it also affected all nations across the world and Nigeria was not an exemption.

    He said that the landing cost of petroleum product was also a factor, adding that the high cost was not limited to Nigeria.

    “We need to see what can be done to alleviate the suffering of the people. If our refineries are back on stream and make foreign exchange available at the official rate of N400 per dollar.

    “And if our refineries come back we can then get a reprieve. We also need to address the issue of vandalism.

    Rep. Abdullahi Gaya, Chairman, House Committee on Downstream, noted that Nigeria had refining capacity but because none were functioning which led the country to her sorry state.

    He said that there was need to find solution to the high cost of diesel and cooking gas in a bid to cushion the effect on the generality of Nigerians.

    Some of the lawmakers who spoke, however, said that Kyari and Ahmed expressed helpless situation.

    “You have just presented a hopeless situation, you have the responsibility to proffer solution. If there is no solution then why are we here.

    The lawmakers said that they were particularly concerned about the plight of Nigerians, as many of them collect a minimum wage of N30,000.

    They noted that Nigeria may have to go the way of other nation by subsidising cooking gas.

  • FG says Enugu varsity fire triggered by untapped gas reservoir

    FG says Enugu varsity fire triggered by untapped gas reservoir

    The Nigerian Petroleum Upstream Petroleum Regulatory Commission (NUPRC) has confirmed a fire incident triggered by a suspected associated gas reservoir within the vicinity of Caritas University in Enugu.

    Mr Gbenga Komolafe, Commission Chief Executive, NUPRC in a statement on Friday said the incident occurred on May 22 but  was reported to NUPRC on May 26.

    Komolafe said it was confirmed that there was no pipeline right of way in the area  but the incident was caused by the activities of some contractors who were drilling a water borehole on the university  premises.

    He said on receipt of the incident report, NUPRC and related agencies immediately carried out an investigation and discovered that the incident happened in the process of drilling a water well with a target drill depth of 400 meters for the university.

    He said it was learnt that the university engaged the services of HydroGeo Engineering Services for the drilling of water borehole but the job was later sub-contracted to Orange Water Wells Drilling Company.

    He said in the course of the drilling, pressurised seepage was encountered after about 200 meter and fumes were gushing out of the drilled hole.

    “One of the workers who suspected the fumes to be gas seepage reportedly wanted to confirm his suspicion, and in process introduced a source of ignition which led to the fire outbreak.

    “It was the unfortunate action that provided a stronger basis for the qualification of the fumes as associated gas.

    “Following the fire outbreak, the drilling contractor swiftly removed the drill pipes, demobilised the rig and immediately notified the Enugu state government of the incident.

    “The state and federal fire services which were mobilised to the site, battled the fire for more than two days.

    “The university authority cordoned off the site and restricted access to the area; and directed for the immediate discontinued usage of all facilities within the affected area, including a nearby hall used for examinations,” he said.

    He further said that the NUPRC representatives, in collaboration with officials of the National Oil Spill Detection and Response Agency, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC, Nigeria Security and Civil Defence Corps and other related enforcement agencies visited the site on May 27 and 31.

    He said the visit was for preliminary investigation to ascertain the status and gain insight on the cause.

    He said it would determine immediate safety and geotechnical measures required to put off the fire and prevent loss of lives, property and damage to the environment.

    He said the officials confirmed that no fatality was recorded as a result of the incident, although a staff of the drilling company had sustained first-degree burns.

    According to him, the staff was treated and discharged from the hospital.

    “The preliminary investigation revealed that there is no pipeline right of way in the area.

    “There is a continuous supply of gas from the underground source evidenced by the continuous fire which is suggestive of the presence of shallow gas which may be associated with coal bed methane gas or gas seepage.

    “In both cases, it may not necessarily be a reservoir accumulation but associated gas which the drilling process provided a flow line; a development similar to incidents associated with coal mines.

    “Plans are being finalised by Caritas University to carry out Geophysical Resistivity Survey of the area from June 3 to June 4, to acquire data that will give better insight on the near surface gas concentration in the area and its potential spread.

    “Also, an all-inclusive stakeholder engagement took place in Enugu on the June 1, for alignment deliberations and mutual commitment to achieve the immediate killing of the fire and stoppage of the gas leakage,” he said.

    According to him, NUPRC is proactively collaborating with all relevant stakeholders and is determined to deploy appropriate technology to ensure that the fire is put off and the source of gas leakage is sealed.

    This, he said would ensure environmental sustainability and safety of lives and property.

    He added that the Commission has already identified an indigenous company with verified competence and proven track record in managing related fire incidents.

    He said intervention options were being considered which would be finalised after another visit scheduled for June 6.

  • ECOWAS Don values NNPC at N50trn, wants listing on stock exchange

    Chief Economic Strategist to the Economic Community of West African States (ECOWAS), Prof Ken Ife, has valued the assets of the Nigerian National Petroleum Corporation (NNPC) at N50 trillion.

    The Professor of Economics stressed that the oil company can be listed on the Nigerian Exchange Limited.

    Speaking at a Growth Initiatives for Fiscal Transparency, (GIFT) dialogue held in Abuja on Wednesday, Prof Ife averred that the N50tn valuation included the crude, gas, landed and intangible assets of NNPC Ltd.

    The reason for the valuation, according to the economic strategist is to ensure that all host communities, labour unions, oil marketers, citizens and corporates took part in the public quotation expected soon.

    ALSO READ: NNPC boss seeks support of stakeholders in oil and gas to tackle crude theft in Niger Delta

    Prof Ife notes that  it is also the best way to reduce oil theft and opaque petrol subsidy being paid by the government.

    He stressed that if every Nigerian, including militants and oil thieves have shares, it would become difficult for theft to continue at the scale it is currently being carried out.

    With that, Prof Ife said, militants will not break pipelines when they are shareholders of the company. They will demand dividends, rather than break pipelines.

    His words: “If militants break pipelines, they will not get dividends from the company in which they have shares. If Nigerians are shareholders, it then becomes their decision to maintain subsidy or remove it,”.

    The Professor of Economics expressed regret that the Petroleum Industry Act, PIA, had removed the NNPC from being subject to the Fiscal Responsibility Act and the Public Procurement Act, saying that this was not healthy for accountability and transparency.

    Prof Ife, who is also a consultant to the Central Bank of Nigeria, noted that PMS subsidy has reached a critical juncture where the government was now looking to borrow N4 trillion per year, when 50 modular refineries could be funded with just N2 trillion to refine 1 million barrels a day.