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Tag: NNPC

  • Court orders Kaduna Refinery to pay ex-staff pension arrears

    Court orders Kaduna Refinery to pay ex-staff pension arrears

    The Kaduna Refining Petrochemical Company Limited (KRPC) has been ordered to pay the pension entitlement of its former staff, Zakari Abdullahi, his pension entitlement from September 16, 1996, till date.

    The court stated that the claimant was entitled to terminal benefits, following the termination of his 11 years service with the company on grounds of services no longer needed.

    Justice Sinmisola Adeniyi while delivering the judgment also held that the order be complied with within 30 days.

    The court further declared that the withholding of the claimant’s pension was unconstitutional, unlawful and against public policy.

    From facts, the claimant, Abdullahi had contended that by the provisions of the NNPC Staff Condition of Service, which governed his appointment with the defendant, he was qualified for the payment of pension having served the organisation for 11 years.

    The claimant also submitted that because his gratuity had been paid there was no reason to withhold his pension, but all efforts to get it over the years had proved abortive.

    In its defence, KRPC argued that the claimant was not in the category of staff that qualified for retirement benefits as his appointment was terminated for gross misconduct.

    The defendant through its counsel, O.J. Opawale, also contended that proper parties were not before the court, as the defendant is a separate and distinct legal entity from the NNPC.

    Opawale in addition averred that the Condition of Service which was the substratum of the claimant’s case was not binding on the defendant.

    In opposition, the claimant counsel, A.A Manta maintained that the provisions of the NNPC Staff Condition of Service governed his client’s appointment with the defendant and urged the court to grant the reliefs sought.

    The court on its part after evaluation of both counsel’s submissions held that NNPC Condition of Service was binding on the parties.

    Adeniyi also dismissed the argument that the claimant’s appointment was terminated on ground of alleged misconduct but on “services no longer required” as stated in the termination letter.

    “My view is that the act of withholding the claimant’s pension for over two decades, 26 years to be precise, is not only unlawful but morally wrong and callous.

    ” The flagrant violation of the claimant’s constitutional right by the defendant shall not be condoned by this court.

    “It will therefore be unreasonably excessive for the defendant, having terminated the claimant’s appointment on the grounds of services no longer required

    “Having admitted his gratuity was paid, to now turn to contend that the claimant is not entitled to pension for alleged acts of misconduct”, the judge ruled.

  • NSCDC warns fuel marketers against hoarding, hiking price

    NSCDC warns fuel marketers against hoarding, hiking price

    The Kwara Command of the Nigeria Security and Civil Defence Corps (NSCDC) has warned petroleum marketers against hoarding and selling fuel above the recommended pump price.

    The warning is contained in a statement signed by Mr Babawale Afolabi, spokesperson of the command and issued to newsmen on Sunday in Ilorin.

    “They should not create artificial scarcity, through hoarding of the products,” the statement said.

    It quoted the State Commandant, Mr Makinde Ayinla, as giving the warning while inspecting some petrol stations in Ilorin.

    “The Command will not hesitate to seal any erring filling station and prosecute the owners,” he said.

    The commandant, represented by Mr Yusuf Ayinde, Head of Anti-Vandal Unit, read the riot act to the stations that reportedly refused to sell fuel.

    “Based on intelligence , some filling stations had been accused of selling petrol for as much as N250, which is above the recommended pump price of N165,” he said.

    The statement said that some fuel stations “were caught in the act and were ordered to revert to the recommended price.”

    Some of the stations visited were NNPC in the Surulere Area, Topland and Demo at Amilegbe, Total Comfort and Oilfield at Ita-Amo.

    The statement said the exercise would continue on Monday with the inspection of more filling stations.

  • A nation of adulterated fuel and adulterated stories – By Dakuku Peterside

    A nation of adulterated fuel and adulterated stories – By Dakuku Peterside

    By Dakuku Peterside

    For decades, Nigerians have been living in denial about the state of our country’s petroleum refining and distribution system. Even non- specialists without any training in elementary petroleum economics know there is something wrong with our petroleum products refining, importation, and distribution regime and regulatory systems. Unfortunately, even with enacting the protracted Petroleum Industry Act, Nigerian leaders have not mustered the political will to address the issue for reasons of political convenience and economic motives.

    One of the critical problems is that Nigeria, as one of the largest producers of crude oil globally and the largest producer in Africa, has been shamelessly engaging in importing petroleum products because the refineries are not in good working condition. Nigeria has a corruption-ridden and devastating oil subsidy regime, a poor and ineffectual regulatory framework that negatively impacts its economy. There is a need for systemic change to eliminate the importation of petroleum products, get the refineries working, and ensure a fit-for- purpose regulatory framework with little or no room for abuse. One issue that merits consideration alongside this envisioned overhauled system is total deregulation of the sector to attract private investment.

    Last week, as is the case with the pervasive substandard products – drugs, industrial products, cosmetics, drinks, and other consumables – imported into Nigeria, substandard petroleum product or, more appropriately called, off-the-specification product was imported and distributed across the nation with devastating implications on users of the products. This event sparked off a lot of fury and reactions. Typical of Nigeria, we have focused on the blame game, and nobody accepts responsibility, not even NNPC. This event is not the first time we imported petroleum products that did not meet national and international standards and will certainly not be last. The successful importation and distribution of “adulterated fuel” has vast implications, from economic losses, large scale deterioration in the performance of car engines, environmental pollution to most importantly, failure of regulatory enforcement.

    Now we face this monumental challenge; the critical issue is unravelling the truth, examining the lessons, proffering solutions on the way forward, and rejigging our supply and regulatory systems to make them more effective and efficient. The big question is, do we have the political will?Although ill-fated and hugely damaging to our economy and image, this substandard PMS brouhaha may be an opportunity to revisit our PMS importation and distribution system and the regulatory regime to get it right once and for all times.

    The usual reaction by Nigerians and the government is what we are witnessing now: the Federal Government will call for investigations, the Ministry of Petroleum will set up an investigation panel made up of the same people who should have prevented this from happening in the first place. The National Assembly will condemn and set up a committee of those with oversight responsibility to ensure this system failure did not occur ab initio. Investigators make a scapegoat of a few petroleum importing companies who acted on behalf of NNPC and use one “truth” to cover another truth until the truth becomes the casualty in the process of trying to unravel the truth. This process is cyclical and produces nothing tangible. Soon we will forget, like a collective that suffers amnesia, and new events will show up to overshadow previous ones, and we, as usual, move on as if nothing happened.

    This issue of substandard or adulterated fuel raises five critical questions that could lead us to the truth: What standards of refined PMS petroleum products are prescribed for consumption in Nigeria? Has the market regulator and regulatory process for importing petroleum products failed? Did the multiple quality control mechanism for imported petroleum products fail? How did the “off- the – standard” pass into the market and escape all checks by the regulator? Do the regulator, supplier, and testing laboratories have the requisite capacity? Why has the importation process of petroleum products been shrouded in secrecy for so long? As we transition to complete deregulation, what are the regulatory systems we are putting in place to ensure Nigerians do not suffer from consuming “adulterated products “? Why would a major oil-producing nation be a significant petroleum product importing country for over 40years? Why are our refineries refining little or no fuel inspite of billions of dollars in maintenance bill over a 25 year period?

    The specific infraction that sparked this instant reaction is that methanol, in unacceptable percentage, was found in premium motor spirit (PMS), otherwise called fuel, supplied to retailers. The product was traced to cargo delivered by Litasco, the Swiss trading arm of Russia’s Lukoil. NNPC ltd, in trying to explain its involvement in the matter, inadvertently caused panic, brought about a disruption in the supply chain, leading to long queues due to panic buying. MRS Nigeria, the retailer that raised the alarm, also issued a statement denying importing this specific cargo but instead received it through NNPC. MRS Nigeria further explained the steps she had taken to mitigate the situation.

    A consortium under the Direct-Sale-Direct-Purchase (DSDP) contract also issued a formal statement to explain her side of the story. This poor information management or miscommunication confused Nigerians about the truth about this adulterated petroleum product. Industry professionals have said that testing for methanol is typically not the conventional practice because it is a blending component for petroleum products. Methanol in acceptable quantity in PMS raises the octane level and minimises engine knock. However, PMS (fuel) with high methanol content harms car engines, leading to structural failure or the explosion of car engines. It is also highly corrosive to aluminium components and can easily cause damage to gaskets and rubber hoses. Methanol is used as various blends up to 5% in China, India, Europe, and America. More worrisome in this instant case is that this cargo with high methanol content was certified as meeting Nigerian PMS specifications by NNPC quality inspectors. Also, this product was approved by the Midstream and Downstream Petroleum Regulatory Authority (NMDRA), the industry regulator. The import passed all regulatory scrutiny and was found fit for consumption. The net effect is that there was a clear oversight of requisite methanol content standards by the supplier and NNPC, authorized sole importer of PMS.

    I have read many knee jerk reactions from quarters, and it is evident that many commentators and “experts” do not have informed knowledge. Based on my background knowledge and experience as a former Chairman, House of Representatives Committee on Petroleum Downstream, I think our focus as a country should be on the lessons in this saga to fix a seemingly intractable defective PMS importation and distribution regime.

    There are five lessons Nigeria must learn from this saga. PMS Products standards are essential for consistency and safety. First, the regulator should set holistic standards known to both suppliers and consumers, and enforcement of such measures should be sacrosanct and blind to all actors. I am not unaware that the Standard Organisation of Nigeria (SON) and Nigeria Upstream Petroleum Regulatory Commission (NUPRC), through its precursor organisation, the Department of Petroleum Resources (DPR), have a single standard for PMS in Nigeria. Second, regulatory enforcement is vital. The regulator requires capacity, effectiveness, efficiency, and diligence. The profit motive will always drive businesses and, if not effectively regulated, will put their economic interest above public interest and safety.

    Third, technology is available in the market today to ensure the products supplied are consistent with prescribed standards. We need to optimise the benefit of technology throughout the petroleum supply and distribution network. Fourth, transparency and capacity are essential in authorising firms to bring products into the country. Lack of transparency breeds corruption compromises quality and is primarily responsible for substandard products. Finally, importing petroleum products for 200 million Nigerians, who produce crude oil, is not sustainable. Dependence on foreign refineries for petroleum products is not suitable for the price, product availability, and quality consistency, and it is susceptible to corruption. It is time we sell off non- functional refineries, license more private ones and end fuel importation and subsidy regime.

    The menace of bringing substandard fuel to Nigeria is a social, economic, and environmental monstrosity and an international embarrassment to Nigeria. NNPC ltd, on paper and face value, is the sole importer of PMS today, so it must accept ultimate responsibility for this infraction. It should ensure that it recruits only reputable and capable organisations to import PMS on her behalf, and the system must be made open and transparent. Besides, the fuel quality specification provisions need to be strictly aligned with international best practices to deter companies from cashing in on loopholes circumventing the standards and importing fuel with high Sulphur or methanol content.

    There is a need to strengthen the surveillance and monitoring structures so that regulators can easily detect such violations of standards before they enter the domestic supply chains. The ripple effect of adulterated fuel in the market is dire – the cost of recalling the products; the scarcity of the PMS product causes economic pain and hardship and damage to consumers vehicles and other engines that use the PMS. The bottom line is that Nigeria should transition from a net importer of PMS to a net exporter.

    Government and other stakeholders should do whatever it takes to kill this massive ‘elephant in the room’. They must summon the political will to crack down on offenders and to fortify the PMS regulatory regime to avoid such embarrassment in the future. President Muhammadu Buhari is leading the way by committing to getting to the bottom of the problem and setting up a high-powered committee to investigate and bring to book all found guilty in this saga. And he directed relevant government agencies to take every lawful step to ensure the respect and protection of consumers against market abuse and social injustice. All other stakeholders must align with the President’s actions and sort things out.

    This is not time for apportioning blames and pointing accusing fingers at various organisations and regulatory regimes affected by this saga, we must articulate the lessons and work hard to rejig the system to improve the situation. This development offers us the opportunity to re-examine our petroleum products supply and distribution regime and take decisive actions that benefit Nigerians. PMS is one product that all Nigerians consume, and anything affecting it impacts the lives of all Nigerians. Such a vital product must not be left to the vagaries of production and importation from abroad, and I think this must be considered an issue of national security. Fortunately, Dangote Refinery and other Modular refineries are almost at the stage of starting local refining of PMS. Hopefully, they will have the capacity to refine PMS to cover the demands of Nigerians and other African countries that depend on Nigeria for their PMS shortly.

  • We did not import adulterated PMS into Nigeria- Oando

    We did not import adulterated PMS into Nigeria- Oando

    Oando Plc has refuted a claim by the Nigerian National Petroleum Company (NNPC) Limited that the firm imported adulterated Premium Motor Spirit (PMS) into the country.

     

    The NNPC Group Managing Director, Mele Kyari, had on Wednesday said the national oil firm received on January 20, 2022, a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

     

    Kyari explained that the NNPC investigation revealed the presence of methanol in four PMS cargoes imported by its Direct Sale Direct Purchase suppliers namely MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.

     

    We want to assure the public that Oando as a responsible corporate citizen would not partake in the importation, distribution, or marketing of substandard petroleum products

     

    In a statement released to the Nigerian Exchange Limited on Thursday, Oando said, “Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits into the country, we hereby state that Oando did not import and supply PMS that was adulterated or substandard.

     

    “The PMS supplied by Oando met Nigeria’s import specification. We are committed to working assiduously with the NNPC and industry to identify the root cause(s) of the subsequent contamination of the PMS supplied.

     

    We want to assure the public that Oando as a responsible corporate citizen would not partake in the importation, distribution, or marketing of substandard petroleum products.”

  • ADULTERATED PMS: Group calls for resignation of NMDPRA, NNPC boss within 7days

    ADULTERATED PMS: Group calls for resignation of NMDPRA, NNPC boss within 7days

    A pro-Nigeria Civil Society Organization (CSO) known as NIGERIA FIRST, on Friday, has given a seven-day ultimatum for the resignation of the Chief Executive Officer (CEO) of Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, over his role in the importation of adulterated Premium Motor Spirit (PMS) currently in circulation in Nigeria.

    The group also mentioned for resignation, the Group Managing Director (GMD) of the newly established Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari, for negligence.

    NIGERIA FIRST National Coordinator, Mr. Augustine Richard-Adie, and the Board of Trustees Chairman, Chief Philip Agbese; in a statement, asserted that the inactions of both heads of regulatory agencies have caused Nigerians untold hardship and brought serious embarrassment to President Muhammadu Buhari.

    The two CEOs of the above agencies, which are products of the PIA, have been fingered as those whose negligence was responsible for what Nigerians are currently suffering

    “The importation of the adulterated fuel has caused more harm than good and it is clear that these individuals should therefore resign immediately.

    “They have to go immediately to save the President any further embarrassment and to keep his legacy in office”, the statement read.

    The group lamented that it is unfortunate that Buhari’s administration that has cured fuel queues in the last six years would be dented at a time that the President was about to exit the office.

    “We, therefore, give them seven days ultimatum to leave office and save the President of any further embarrassment”, it added.

    It would be recalled that both the GMD NNPC and the CEO of NMDPRA, at separate press briefings on Tuesday, confirmed the importation of adulterated Premium Motor Spirit by some oil marketers.

    The GMD NNPC said his investigation has revealed the presence of Methanol in four petrol cargoes imported by MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil.

    The NMDPRA Boss, on his part, told journalists on Tuesday that, “petrol with methanol quantities above Nigeria’s specification, was discovered in the supply chain”, adding that, “Methanol is a regular additive in petrol and is usually blended in an acceptable quantity”.

    This has been responsible for the return of long fuel queues in parts of the country, especially in Abuja, Lagos, Ogun, Port Harcourt and other cities, since the beginning of this week.

    Seriously embarrassed by the situation, President Buhari had reportedly instructed the Minister of State, Petroleum, Mr. Timipre Sylva, to immediately issue a query to NMDPRA Boss, Ahmed, to explain how the product came into the country.

    Also, the House of Representatives, on Thursday, through a motion by the Chief Whip, Rep. Tahir Monguno, ordered an urgent investigation into the importation of adulterated PMS and to also ascertain the roles played by the two regulatory agencies in the seaports.

  • We did not supply adulterated fuel – Emadeb, Hyde, AY Maikifi tell NNPC

    We did not supply adulterated fuel – Emadeb, Hyde, AY Maikifi tell NNPC

    The management of Emadeb Energy Services Limited has denied supplying adulterated fuel as alleged by NNPC insisting the claim was misleading.

    The company in a statement issued and signed by the Lead Consortium, Emadeb Energy Services Ltd vehemently denied any link setting the records straight.

    TheNewsGuru.com, (TNG) recalls that NNPC had on Wednesday issued a statement listing companies that allegedly supplied contaminated fuel with high level of methanol.

    Emadeb consortium in the statement explained that “We refer to the press release of February 9, 2022 by the Nigerian National Petroleum Company (NNPC) Limited on the issue of contaminated Premium Motor Spirit (PMS) with higher concentrates of methanol allegedly imported by Emadeb/Hyde/Ay Maikifi/Brittania-U Consortium.

    “We hereby state that the said importation of the contaminated PMS was executed by a member of the consortium, to wit: Brittania-U.

    “Therefore, the blanket claims made against the consortium by the NNPC are misleading and contradict the actual events that happened; they do not fully reflect and/or represent what transpired. It is important to inform the public of these facts and provide clarifications relating to the delivery of the said contaminated PMS to the country. We also deem it necessary to protect our image as we have invested a lot in building our respective brands in the industry.

    Read full statement below:

    PRESS STATEMENT

    EMADEB/HYDE/AYMAIKIFI PROVIDE CLARIFICATIONS ON NNPC’s CLAIMS

    We refer to the press release of February 9, 2022 by the Nigerian National Petroleum Company (NNPC) Limited on the issue of contaminated Premium Motor Spirit (PMS) with higher concentrates of methanol allegedly imported by Emadeb/Hyde/Ay Maikifi/Brittania-U Consortium.

    We hereby state that the said importation of the contaminated PMS was executed by a member of the consortium, to wit: Brittania-U.

    Therefore, the blanket claims made against the consortium by the NNPC are misleading and contradict the actual events that happened; they do not fully reflect and/or represent what transpired. It is important to inform the public of these facts and provide clarifications relating to the delivery of the said contaminated PMS to the country. We also deem it necessary to protect our image as we have invested a lot in building our respective brands in the industry.

    Facts and Findings

    1. Brittania-U Nigeria Limited (Brittania-U) was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde with laycan January 2 to 4, 2022.

    2. At the formation of the Consortium in May 2021 by NNPC, Brittania-U refused to execute the Service and Consortium Agreement submitted to NNPC in fulfilment of the award of the DSDP Contract. Emadeb as the lead of the Consortium engaged Brittania-U severally and they insisted on dealing with NNPC independently. NNPC was expressly notified about this by the other Consortium members via a letter dated June 2, 2021.

    3. Further, Brittania-U vehemently refusing to execute the Consortium Agreement with the other Consortium members – EMADEB/HYDE/AY MAIKIFI- was surprising and frustrating to everyone. Brittania-U communicated all her actions to the other Consortium members and NNPC harping on the following points:

    a) Brittania-U’s preference to perform a sole contract for Crude lifting and PMS supply under the DSDP arrangement;

    b) Brittania-U’s choice to be solely liable under her supplies to NNPC and in the light of which she indemnified the other Consortium members accordingly;

    c) Non-acceptance of the nominated international partner agreed by other Consortium members – EMADEB/HYDE/AY MAIKIFI; and,

    d) Brittania-U’s unwillingness to co-operate or share information and documents with the other Consortium members in respect of the December 2021 crude cargo allocated to her by NNPC.

    4. Following the repeated refusal of Brittania-U to work with the Consortium, Brittania-U indemnified the other consortium members – ‘’Emadeb/Hyde/Ay Maikifi’’ and the resulting agreement was executed by their company on June 16, 2021. It reads in part: The Indemnity clause contained in the aforementioned agreement covers “Emadeb/Hyde/Ay Maikifi’’ against all damages, losses, costs, expenses (including reasonable legal costs, expenses and attorneys’ fees) and liabilities incident to claims, demands or causes of action brought by or on behalf of any person or entity, which claims, demands or causes of action arise out of, are incident to or result from the performance of or failure to perform the Project. The indemnity also covers Shortages in delivery of products, late deliveries, delivery of off-spec cargo or other wrongful performance of their obligations in the DSDP agreement.

    EMADEB/HYDE/AY MAIKIFI via a letter dated December 10, 2021 informed NNPC of non-receipt of information from Brittania-U on all correspondence relating to the DSDP crude cargo allocated to them. We further stated that Brittania-U’s action contradicts all efforts to ensure performance on her allotted crude cargo.

    In view of the notice of the contaminated product, EMADEB/HYDE/AY MAIKIFI immediately notified Brittania-U via a letter dated February 3, 2022 and also expressly informed NNPC of the sole liability of Brittania U.

    Based on the substantial evidence provided to NNPC and several declarations by Brittania-U to NNPC, Brittania-U is therefore solely liable for the supply of the PMS via MT Torm Hilde. This is also demonstrated by their unwillingness to be part of the consortium; however, all the other parties were duly indemnified by Brittania-U.

    The other Consortium members – EMADEB/HYDE/AY MAIKIFI had performed and delivered 270,000MT of PMS in the last five months and they were certified by the NNPC-nominated inspector without any complaint or adverse issues. Out of the 270,000MT of PMS, 90,000MT is currently discharging via MT Fair Seas offshore Lagos. All records showing our performance are available with NNPC for verification and validation.

    EMADEB/HYDE/AY MAIKIFI will continue to work with NNPC and perform creditably on all our obligations. As reputable companies, we will not associate ourselves with any activity that will be to the detriment of the citizens of the Country.

    EMADEB/HYDE/AY MAIKIFI believe that these stated positions of ours have demonstrated that we are not the suppliers of the said contaminated PMS. We are ready to give our full and maximum cooperation to any government investigation panel and or any agency with all the relevant documentation and or information that maybe required.

    We implore all our customers to continue to patronize all services provided by Emadeb/HYDE and AY Maikifi.

    Thank you.

    Signed
    Lead Consortium
    Emadeb Energy Services Limited
    10th February, 2022

  • NNPC lists MRS, Oando, others as importers of alleged adulterated fuel

    NNPC lists MRS, Oando, others as importers of alleged adulterated fuel

    The Nigerian National Petroleum Company (NNPC) Limited, on 9 February, lists the companies involved in the importation of methanol laden petrol into Nigeria.

    This is contained in a statement signed by Garba Deen Muhammad, Group General Manager Group Public Affairs Division, NNPC, on 9 February.

    NNPC has reassured Nigerians of its capacity to restore sanity in the supply and distribution of quality Premium Motor Spirit (PMS) also known as petrol across the country within a short period.

    The Chief Executive Officer/ Group Managing Director of NNPC, Mallam Mele Kyari pledged at the end of a meeting with some oil marketers to resolve the issues generated by the recent supply and discharge of methanol blended petrol in some Nigerian depots.

    Kyari emphasized that defaulting suppliers had been put on notice for remedial actions and NNPC is working with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) to take necessary actions in line with subsisting regulations.

    Providing a graphic chronicle of the unfortunate incident, the NNPC CEO said that on 20th January 2022, the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

    He explained that NNPC “investigation revealed the presence of Methanol in four PMS cargoes imported by the following Direct-Sale-Direct-Purchase (DSDP) suppliers as listed in the table below.

    Importer – Vessel Name – Load Port
    1 MRS — MT Bow Pioneer — LITASCO Terminal, Antwerp-Belgium“
    2 Emadeb/Hyde/AY Maikifi/Brittania-U Consortium — MT Tom Hilde — LITASCO Terminal, Antwerp-Belgium“
    3 Oando — MT Elka Apollon — LITASCO Terminal, Antwerp-Belgium
    4 Duke Oil —– MT Nord Gainer — LITASCO Terminal, Antwerp-Belgium”

    He noted that cargoes quality certificates issued at load port (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.

    “The NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,’’ he said.

    Kyari noted that as a standard practice for all PMS imports to Nigeria, the said cargoes were equally certified by an inspection agent appointed by the NMDRA.

    “It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors’’ he stated.

    However, to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).

  • Importers of fake PMS won’t go unpunished- NNPC

    Importers of fake PMS won’t go unpunished- NNPC

    The Nigerian National Petroleum Company (NNPC) Limited has said firms that imported the recent adulterated Premium Motor Spirit (PMS), popularly called petrol, into the country would not go unpunished.

    In a statement signed by its Group General Manager- public affairs, Garba Deen Muhammad, pointed out that NNPC is working with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) to take necessary actions in line with subsisting regulations.

    Reassuring Nigerians of its capacity to restore sanity in the supply and distribution of quality PMS across the country within a short period, the Chief Executive Officer/ Group Managing Director of NNPC, Mallam Mele Kyari, pointed out that defaulting suppliers have been put on notice for remedial actions.

    The statement, in parts, read: “Providing a graphic chronicle of the unfortunate incident, the NNPC CEO said that on 20th January 2022, the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

    “He explained that NNPC investigation revealed the presence of Methanol in four PMS cargoes imported by the following Direct-Sale-Direct-Purchase (DSDP) suppliers as listed in the table below.

    Importer Vessel Name Load Port

    1 MRS — MT Bow Pioneer — LITASCO Terminal, Antwerp-Belgium

    2 Emadeb/Hyde/AY Maikifi/Brittania-U Consortium —- MT Tom Hilde —- LITASCO Terminal, Antwerp-Belgium

    3 Oando — MT Elka Apollon — LITASCO Terminal, Antwerp-Belgium

    4 Duke Oil —– MT Nord Gainer —-LITASCO Terminal, Antwerp-Belgium

    “He noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.

    It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors

     

    “The NNPC quality inspectors including GMO, SGS, GeoChem, and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,” he said.

    According to the statement, Kyari noted that as a standard practice for all PMS imports to Nigeria, the said cargoes were equally certified by an inspection agent appointed by the NMDRA.

    “It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors” Kyari stated.

    Adding: “However, in order to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).

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

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

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

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

    Breakdown:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • FUT Minna honours Kyari, others, as coy. leads Africa’s energy transition

    FUT Minna honours Kyari, others, as coy. leads Africa’s energy transition

    The Nigeria National Petroleum Company (NNPC) Limited had a busy week following the award of honourary doctorate degree on its Group Managing Director (GMD) and Chief Executive Officer (CEO), Malam Mele Kyari.

    The award was bestowed on the awardee by Federal University of Technology (FUT), Minna.

    Other prominent Nigerians who received the award with Kyari for their selfless service and contributions to national development include Gen. Abdulsalami Abubakar, a former head of state, Prof. Akinwumi Adesina, President of the Africa Development Bank (AfDB) and former Minister of Agriculture, Abdul Samad Rabiu, President of Bua Group was also honoured.

    The awards were the climax of the University’s 38th founder’s Day and 30th convocation ceremonies which took place at the university’s main campus, Minna, Niger.

    The Vice Chancellor of the University, Prof. Abdullahi Bala said that the awardees deserved the awards.

    In his acceptance speech, Kyari pledged to continue to be an advocate and ambassador of the University in every ramification possible while calling on youths and graduands to embrace technology.

    The NNPC GMD who was accompanied to the event by some members of the company’s top management team also took time out to commission the Twin Lecture Theatre of the School of Physical Sciences of the institution.

    The occasion was graced by some top dignitaries including Niger Governor, Alhaji Abubakar Sani Bello, the Sultan of Sokoto, His Eminence, Sa’ad Abubakar III, the Etspu Nupe and Chairman of Niger State Council of Traditional Rulers, HRH Yahaya Abubakar, and the Emir of Minna, HRH (Dr) Farouq Bahago.

    Also in attendance were the Chancellor of the institution, His Imperial Majesty, Oba Aladetoyinbo Ogunlade Aladelusi-Odundun II, Deji and Paramount Ruler of Akure Kingdom and the Pro-Chancellor and Chairman of Council of the institution, Prof. Olu Obafemi among others.

    Meanwhile, the NNPC Limited has positioned itself to lead Africa in energy transition following the increasing conversation around the transformation of global energy sector from fossil-based to zero-carbon by the second half of this century.

    Explaining the Company’s strategy for a smooth and realistic energy transition, NNPC CEO, Kyari said the NNPC had set the necessary machineries in motion to lead Africa in transition to low-carbon energy and renewables.

    Kyari spoke at the 30th Convocation Lecture of FUT, Minna, while delivering a lecture titled “Energy Transition & Energy Accessibility – The New Paradigm”.

    He noted that as transition to cheaper energy gains momentum, especially across the developed countries, oil companies must continuously improve operational efficiency and reduce their costs to remain on the playground.

    This, he said would guarantee affordable and reliable energy for rapid industrialisation and improve the economic well-being of the people.

    He also said that the NNPC Ltd. had started deepening natural gas utilisation under the National Gas Expansion Programme (NGEP) and was currently extending natural gas infrastructure backbone from Ajaolkuta in Kogi to Kano through Abuja and Kaduna, under the AKK Gas Pipeline Project.

    The mega AKK pipeline would be fed by both Escravos-Lagos Pipeline System (ELPS) and Obiafu-Obrikom-Oben (OB3) gas pipelines through Oben node in Edo and deliver 2bscf of natural gas to power plants and industrial off-takers along Abuja, Kaduna and Kano.

    “As a National Oil Company and a global player, NNPC Ltd is ready to shift to renewable energy; efforts are ongoing to take a firm position in this transition process by institutionalising the necessary enablers for desired success.

    “It is against this background that the company advised against putting Africa in the same energy transition speed as the industrialised nations.

    “Any attempt to do this, can result in unanticipated collateral damage that can spark energy crisis and deny developing countries access to available and cheaper energy for growth,” Kyari said.

    Kyari further explained that in furtherance of its efforts at taking the lead in Africa’s energy transition, the NNPC Ltd had established a Renewable Energy Division and had completely transformed its erstwhile Research &Development (R&D) Division to NNPC Research, Technology and Innovation Division.

    “The company is also currently transiting into Energy Company of Global Excellence and therefore welcomes beneficial relationship with the academia and industry experts who demonstrate capacity for productive research and innovation in the energy sector.

    “Considering the financial stretch required to transit at the same pace with the rest of the world, what Africa needs is energy transition that addresses energy poverty across the continent and supports the use of comparative and cheaper available energy resources in Africa.

    “Attaining this vision will however, require substantial finance which may have to come from diverse sources globally

    “Africa is especially endowed with abundant sunshine that can support massive development of renewable energy enough to put the continent on the map of energy sufficient regions of the world,” he added.

    In the meantime, the NNPC Ltd. commenced the process of selecting competent Operations and Maintenance (O & M) firms to manage the Port-Harcourt, Warri and Kaduna Refineries upon completion of the ongoing rehabilitation work.

    This became realistic with the public opening of bids from the five firms that applied for the contract.

    Mustapha Yakubu, Group Executive Director (GED), Refineries and Petrochemicals, NNPC, said at the virtual bid opening that the exercise was part of ongoing efforts by the NNPC Limited to achieve the objective of boosting in-country refining capacity to guarantee energy sufficiency for the country.

    Yakubu who was represented by the Managing Director, Warri Refining and Petrochemicals Company (WRPC), Babatunde Bakare, expressed confidence that the ongoing investments in the refineries would benefit all Nigerians.

    Also at the event, the Group Executive Director, Corporate Services, Mrs Aisha Katagum, urged the bidding firms to have faith in the foolproof evaluation process, stressing that all stages of the selection would be carried out transparently.

    The Group General Manager, Supply Management, Mrs Sohpia Mbakwe, said the tenders were “double envelop submission” that contained both technical and commercial bids from the participating companies.

    She emphasised that each firm’s entry would be evaluated based on the strength of its ability to address the technical and commercial peculiarities of the preferred refinery.

    It would be recalled that upon the public advertisement of the exercise on Oct. 8, 2021, a total of 52 companies sent in entries out of which, eight were prequalified and five firms successfully submitted according to specifications.

    The five firms that bidded for the O &m service contract are Dovewell/Aramis, Daewoo, Petrofac, Technimont, and Pivot/EPROM.