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  • Finally, lifting of petroleum products begins at Port Harcourt refinery as NNPCL starts operations

    Finally, lifting of petroleum products begins at Port Harcourt refinery as NNPCL starts operations

    Finally, the Nigerian National Petroleum Company Limited, NNPCL, has concluded plans to commence the lifting of petroleum products from Port Harcourt Refinery.

    The lifting, which will commence today, Tuesday, November 26, 2024, follows the commencement of operations after many months of rehabilitation.

    In a message posted at its X (Twitter) handle, the company, stated: “NNPC Ltd delivers Port Harcourt Refinery, as the plant begins truckout of products today, Tuesday 26th November 2024 at 1.43 pm.”

    Also, the Chief Corporate Communications Officer, Nigerian National Petroleum Company Limited, NNPCL, Olufemi Sonoye, who confirmed the development, said: “Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation.”

    Recently, the Group Chief Executive Officer, NNPCL, Mele Kyari, said: “We are aware of our nation’s challenges in fuel supply. But we are not here to give excuses.

    “We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products.”
    “Will the price of petrol drop?’ Netizens react as Port Harcourt Refinery begins operation

  • No alternative to P/Harcourt, other local refineries, Niger Delta group tells NNPCL

    No alternative to P/Harcourt, other local refineries, Niger Delta group tells NNPCL

    Niger Delta Development & Transformation Initiative (NDDTI), a pro development group in the oil rich region of Nigeria, has posited that, no amount of talks or actions could salvage the ailing energy sector in Nigeria, except the local refineries were put to operations.

    In a press statement signed on Thursday by its Spokesperson, Barr. Lawrence Etienne, the group warned the Nigerian National Petroleum Corporation Limited (NNPCL), particularly, the Group Chief Executive Officer (GCEO), Mele Kyari, to stop deceiving Nigerians over the Port Harcourt refinery.

    The group said NNPCL has been playing politics over the moribund local refineries, saying, it keeps shifting the goalposts on deadlines for completion of Port Harcourt, Warri and Kaduna refineries.

    “Every now and then, the NNPCL keeps shifting the goalposts and just when we thought they have run out of excuses, they sent Soneye to come and tell us another story again.

    “We observed that the NNPCL desisted from giving new deadlines for the delivery of Port Harcourt refinery, having failed to meet its deadlines seven times. The last deadline given was September 2024.

    “From December 2023, NNPCL has been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

    “In July, the Group Chief Executive Officer of the NNPCL, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

    “President Muhammad Buhari has since left the seat since one and half years ago, yet, none of the Nigeria’s refineries is working, despite billions of dollars NNPCL collected from Nigeria’s government, most of which was taken as a foreign loan”, the group said.

    NDDTI also averred that Kyari “deceived” the Nigerian Senate, when he appeared before it in July 2024, and promised the Distinguished Lawmakers that, by the end of the year, Nigeria would be a net exporter of petroleum products; adding that, the year is almost ended, yet Nigeria still imports petroleum products, albeit, fake and sulphur induced products.

    “The goal is to keep deceiving Nigerians and giving us hopeless hope, just to distract us from their business of importing adulterated products into the country, crashing our naira the more, causing environmental and mechanical hazard to us and causing more hardships for us.

    “NNPCL should stop deceiving Nigerians. It’s obvious that Kyari is unable to do the job and should resign immediately, instead of running up and down.

    “There is no alternative to local refineries, especially Port Harcourt and Warri that have consumed trillions of naira. No amount of talks or activities from Kyari and his group that can salvage our energy sector. They just need to fix the refineries and Kyari also needs to burry his head in shame and leave the stage”, the statement added.

    Barely two months after the September completion deadline flop, the NNPCL has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

    While interacting with Journalists on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

    He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria. The agency refused to disclose a new deadline for the completion of Port Harcourt refinery.

    Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

    The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

    In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

  • Import licence: NNPCL asks court to strike out Dangote Refinery’s suit

    Import licence: NNPCL asks court to strike out Dangote Refinery’s suit

    The Nigeria National Petroleum Corporation Limited (NNPCL) has asked a Federal High Court in Abuja to strike out a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE, describing it as “incompetent.”

    The NNPCL, in a notice of preliminary objection filed by its team of lawyers led by Kehinde Ogunwumiju, SAN, before Justice Inyang Ekwo, argued that the suit is premature.

    NAN reports that the application, marked: FHC/ABJ/CS/1324/2024 dated and filed on Nov. 15, was sighted on Wednesday.

    NNPCL seeks two orders, which include an order of the honourable court striking out the suit for lack of jurisdiction and alternatively, an order striking out the name of the 2nd defendant (NNPCL) from the suit.

    Giving six-ground argument, the corporation argued that Dangote Refinery lacked locus standi to institute the suit.

    “The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

    In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC sued by the refinery was non-existent entity.

    Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as NNPC.

    “This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as “Nigeria National Petroleum Corporation Limited (NNPC)”

    “A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

    “The print out of the said search is hereby attached and marked as Exhibit A,” he said.

    According to Popoola, the 2nd defendant/objector is not one and the same with the 2nd defendant sued by the plaintiff.

    “The registered name of the 2nd defendant/objector is Nigerian National Petroleum Company Limited and this is the only name it can be sued by,” he added.

    He said the NNPCL as sued by the refinery in the instant suit, is not a competent party or a juristic person.

    Popoola, who averred that the suit is incompetent and ought to be struck out, prayed the court to grant their application in the interest of justice.

    NAN had earlier reported that three oil marketers had also prayed the court to dismiss the suit.
    The oil marketers, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed on Nov. 5 in response to Dangote Refinery’s originating summons, told Justice Ekwo that granting that application would spell doom for the country’s oil sector.

    According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

    The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

    Besides, they argued that there was nothing placed before the court to prove the contrary.

    Dangote Refinery had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

    Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

    It prayed the court to nullify import licences issued by NMDPRA to the NNPCL and five other companies for the purpose of importing refined petroleum products.

    The company also prayed the court to declare that NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

    It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

    It also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

    The company equally sought a N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.

    These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

    Justice Ekwo had fixed Jan. 20, 2025 for report of settlement or service.

  • Energy group condemns high importation of fuel, amidst NNPCL decision to patronize local refineries

    Energy group condemns high importation of fuel, amidst NNPCL decision to patronize local refineries

    Despite the decision of the Nigerian National Petroleum Corporation Limited (NNPCL), to end Importation of Petroleum Products and patronize Dangote and other local refineries, there has been a rise in petrol importation by marketers in Nigeria over the last few days.

    This was contained in a statement signed by Dr. Robinson Onuh, the Executive Director of Energy Reforms Advocates of Nigeria (ERAN), on Monday.

    Dr. Onuh’s outcry was also coming on the heels of the sack of some board and top management team of the NNPCL, wherein, Umar Ajiya and Oritsemeyiwa Eyesan were relieved of their positions as Chief Financial Officer and Executive Vice President (Upstream), respectively.

    The NNPCL, while announcing the sack of Ajiya and Eyesan Wednesday night, said it was aimed at enhancing “corporate governance and operational efficiency, reflecting NNPC’s commitment to long-term success in Nigeria’s energy sector”.

    But Dr. Onuh in a statement, said the Group Chief Executive Officer (GCEO) of the NNPCL, Mele Kyari was embarking on a face-saving re-organisation of the NNPCL at a time Nigerians were asking him to go, saying, “this is cheating and to be clever by half”.

    He insisted Kyari; the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed; the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe; and others currently holding sway in the oil and gas regulatory agencies, were the main problem of the energy sector.

    “We welcome the news of the minor shakeups in the top management body of the NNPCL. But the major shakeups is what we are expecting to hear. The likes of Mele Kyari, Farouk Ahmed and co, are the major problems of the system. These ones they sacked on Wednesday was just mere face-saving by Kyari, who is just clever by half”, the statement said.

    The group lambasted NNPCL management for what it describes as “playing politics with people’s lives and the nation’s economy”, adding that it was dishonorable for the agency to back track on its decision to end Importation of Petroleum Products.

    “According to a report at our disposal, between October 1 and November 11, Nigeria imported 1.5 million metric tonnes of Premium Motor Spirit (PMS), 414,018 metric tonnes of diesel, and 13,500 metric tonnes of aviation fuel.

    “These volumes translate to over 2 billion litres of petrol, 500 million litres of diesel, and 17 million litres of jet fuel, with a cumulative cost of nearly N3 trillion.

    “This continued importation raises concerns about the impact on Nigeria’s local refining sector, particularly with the operational Dangote Refinery and the nation’s owned refineries still in comatose, despite the trillions of naira injected into them by the government.

    “The same Kyari who told us on Monday that the NNPC had ended importation and was committed to distributing fuel across the country, nade a u-turn few days later to deny his own statement. This is the kind of integrity the man who is deciding the fate of over 150 million Nigerians using petroleum products, is made of.

    “This same Kyari has been promising Nigerians, giving us hopeless hope that the Port Harcourt refinery would resume operations before September 30. But now he has run out of excuses. Nigerians continue to buy adulterated and high sulphur contaminated fuel, while Port Harcourt, Warri and Kaduna refineries remain in comatose, despite trillions of naira injected into them”, the statement read.

    It would recall that, the NNPCL’s GCEO, Kyari, disclosed on Monday at a conference of the Nigerian Association of Petroleum Explorationists, in Lagos, that the oil marketers and NNPCL had resolve to end Importation by patronizing Dangote and other locally refined petroleum products, the decision which attracted accolades from Nigerians, within and abroad.

    But in a statement on Thursday, signed by the spokesperson of NNPCL, Olufemi Soneye, the agency said Kyari never claimed NNPCL would cease importing petrol into the country but emphasized prioritizing the patronage of local refineries, such as the Dangote Refinery, adding that, the statement was a “mischaracterization”.

  • APC group hails NNPCL, marketers over plan to distribute Dangote fuel across Nigeria

    APC group hails NNPCL, marketers over plan to distribute Dangote fuel across Nigeria

    Foremost youth group within the ruling All Progressive Congress (APC), has hailed the Nigerian National Petroleum Corporation Limited (NNPCL) and major oil marketers for deciding to lift and distribute fuel from the Dangote refinery to end users across the country.

    The group, APC Vanguard for Optimum Transparency and Accountability (APC-VOTA), also called on the Group Chief Executive Officer (GCEO) of the NNPCL, Malam Mele Kyari, to live up to his promises by making the Port Harcourt, Warri and Kaduna refineries operational.

    In a statement Wednesday morning by the President, Engr. Shola Olatunji, and Secretary, Amb. Waheed Isiaka, the group expressed optimism that, by patronizing the locally refined petroleum products, the nation’s economy will stabilize, as the naira will gain heavily against foreign currencies, hence, importation of refined products will be discouraged.

    “Aside making the products to be available across the country, thereby defeating the usual artificial scarcity during the yuletide, lifting from Dangote refinery will also strengthen our currency against foreign currencies and make our economy to pick again.

    “It will also save Nigerians from buying adulterated and high sulphur density petroleum products currently being imported into the country by some unscrupulous oil marketers, under the supervision of the so called regulators who value their pockets more than the welfare of the people.

    “Above all, this will save Nigerian government a whooping N24 trillion yearly, as it currently imports Petroleum products by paying N2tr every month.

    “This is a noble decision and all of us at APC-VOTA welcome this step wholeheartedly, as it will better the lives of Nigerians and will reduce hardship currently being faced”, the statement read.

    On the need to rehabilitate the ailing local refineries, the group said it was obvious that Kyari lacks the capacity to make Port Harcourt, Warri and Kaduna refineries work again.

    “It’s obvious to all Nigerians that Kyari lacks what it takes to fix our refineries. Despite trillions of naira injected into the rehabilitation of Port Harcourt, Warri and Kaduna refineries, there is nothing to show for it and the man is not saying anything again, after running lost of excuses.

    “Keeping such man any longer is tantamount to keeping an infested ripe fruit, since you can’t eat it, just remove it neatly, because the more you leave it there, the more it infest other fruits, untill the whole system will become compromised and collapsed.

    “The only solution to the fuel crisis in Nigeria is the sack of Kyari and our refineries working. Anything less is tantamount to prolonging our doomsday”, the group added.

    Recall that the NNPCL said it has stopped importing refined petroleum products and is now off-taking fuel from the Dangote Petroleum Refinery and other local refineries.

    The NNPCL’s GCEO, Kyari, disclosed this on Monday at a conference of the Nigerian Association of Petroleum Explorationists, in Lagos.

  • Fuel import: Dangote Refinery speaks on fresh case filed against NNPCL, others

    Fuel import: Dangote Refinery speaks on fresh case filed against NNPCL, others

    The management of Dangote Refinery has reacted to a report claiming it’s approached court to stop the Nigerian National Petroleum Company Limited (NNPCL) and others from continuing fuel importation.

    Dangote Refinery, in a statement signed by the Group Chief branding and Communication Officer of Dangote Industries Limited, Anthony Chiejina, on Monday, debunked the report, saying it “is an old issue that started in June and culminated in a matter being filed in September 6, 2024.”

    It explained that since President Bola Ahmed Tinubu’s directive for crude oil for Naira initiative, events have overtaken the development.

    “Currently, the parties are in discussion since the President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).

    “We have made tremendous progress in that regard and events have overtaken this development,” the statement said.

    Continuing, the Dangote Refinery clarified that it neither served any party with the court process nor intended to do so. It, however, expressed readiness to withdraw the case when it comes up in January, 2024.

    “We have agreed to put a halt to the proceedings.

    “It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.”

     

  • Aftermath of fuel subsidy removal cross-border fuel smuggling drastically dropped – NNPCL boss

    Aftermath of fuel subsidy removal cross-border fuel smuggling drastically dropped – NNPCL boss

    Aftermath of removal of fuel subsidies in Nigeria cross-border smuggling of Premium Motor Spirit has drastically reduced.

    This is according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr. Mele Kyari.

    Kyari explained that the subsidy created a price disparity between Nigeria and neighbouring countries, making smuggling highly profitable.

    Before the subsidy removal, Kyrari stressed the price difference was substantial, incentivising smugglers to transport fuel across borders.
    However, “the removal of the subsidy has effectively calibrated fuel prices, eliminating the profitability of smuggling”, he said.

    Kyari noted that the cost disparity between legitimate and illegal transportation of PMS is now significant, with legal transportation being much less profitable.

    In addition to reducing smuggling, the subsidy removal has also brought about price parity and equalisation with the cross-border prices of PMS.

    Kyari said, “The removal of fuel subsidy in Nigeria has been a game-changer in the fight against cross-border smuggling.

    “For decades, the subsidy created a lucrative opportunity for smugglers to profit from the price difference between Nigeria and neighbouring countries.

    “This is a positive development for Nigeria’s energy sector, as it can help to ensure that consumers are paying fair prices for fuel.”

  • Stop operating in secrecy and reveal the cost Of PMS to Nigerians – PETROAN tells Dangote Refinery

    Stop operating in secrecy and reveal the cost Of PMS to Nigerians – PETROAN tells Dangote Refinery

    The President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), Billy Gillis-Harris, has urged Dangote Refinery to stop operating in secrecy and reveal the cost of his Premium Motor Spirit (PMS) to Nigerians.

    Gills-Harris urged the management of the refinery to be open and get inputs from stakeholders.

    The PETROAN boss stated this during an interview on Channels TV on Thursday.

    He said, “Regarding Dangote price, as I speak to you this morning, I don’t know what Dangote price is all about and that is speaking a lot because, at this point in the Dangote campaign in Nigeria, retail outlets like us should know the price input of Dangote but they have kept that shrouded in secrecy up until now,” he said.

    He noted that while the Nigerian National Petroleum Company Limited gave a price template, it did not reveal the input of Dangote Refinery in the pricing.

    He said, “NNPC gave us a price template that also did not tell us what is the exact price input from Dangote.

    “We will encourage Dangote to open up the space of communication, talk to stakeholders, get valuable inputs from everyone because it’s a business that involves Nigerians, retail outlet owners like us, different consumers, so there should be some level of business transparency, even if it’s a private business.

    “We are so proud that we have such facility operating in Nigeria but we need to start to see the works. I am unable to confirm to you if Dangote increased their prices or reduced it because we are not aware.”

    He noted that the refining company is open about its diesel price but not that of Premium Motor Spirit (PMS), also known as petrol.

    “I can tell you about their price for diesel because the diesel prices were made known to us, most of us patronise them for diesel but in case of the PMS, I don’t have any information,” he said.

     

  • I didn’t direct NNPCL to stop running its refinery – Lokpobiri

    I didn’t direct NNPCL to stop running its refinery – Lokpobiri

    The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri has denied reports that he directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its refineries and focus solely on equity participation in other refineries.

    Lokpobiri in a statement on Tuesday clarified that the viral statement does not represent him as the minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.

    The statement reads: “My attention has been drawn to statements attributed to Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented me at a recent conference in Lagos.

    “I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false.

    “This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.

    “It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL, as it operates independently like any corporate entity.

    “The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.

    “I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability.”

  • NNPC portal shutdown against dealers- Marketers

    NNPC portal shutdown against dealers- Marketers

    Oil marketers have said that the Nigerian National Petroleum Company Limited portal used to purchase petrol has been shut against dealers, making it impossible for them to apply for the commodity purchase.

    They said marketers are still awaiting over 90 million litres of petrol from the state-owned company. This is valued at about N79bn.

    According to NNPC spokesperson, Olufemi Soneye, the company shut the portal due to a significant backlog.

    Soneye explained that the shutdown became necessary to stop NNPC from holding marketers’ capital for too long.

    “We have a significant backlog to address. The closure is intended to prevent us from holding marketers’ funds for an extended period,” Soneye had explained.

    He, however, assured marketers that the portal would be reopened after the backlog had been reduced.

    “It will be reopened once the backlog has been sufficiently reduced. We are working to address it as soon as possible,” he told our correspondent.

    Marketers who spoke with PUNCH confirmed that NNPC was expediting actions to clear the backlogs as of the weekend.

    Though NNPC did not disclose the value of the ‘huge backlogs’, independent marketers said they have over 2,000 tickets yet to be cleared with NNPC.

    In an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the association is still waiting for the portal’s opening.

    “They are on it, our marketers are still loading petrol from the NNPC. I can’t confirm the price now because the portal is still shut down.

    “We have more than 2,000 tickets for 45,000 litres (of petrol). That is 45,000 multiplied by 2,000, you can now know the number of million litres it will be. This is just an estimate, you know I don’t work with NNPC and I don’t know what is on their system,” Ukadike stated.

    He disclosed that a 45,000-litre truckload of PMS is around N39.5m, making N79bn when multiplied by 2,000.