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Tag: NNPCL

  • Controversy trails NNPC probe

    Controversy trails NNPC probe

    Members of House of Representatives seem to be on a war path over the proposed probe of the operations of Nigeria National Petroleum Company Ltd. (NNPCL) under Mr Mele Kyari.

    A group of members of House on Saturday placed adverts in three national dailies, urging the Joint Committee of House of Reps on Downstream and Mainstream to investigate the activities of Kyari.

    However, in a new twist, some of the members said to be among the 118 legislators disclosed in Abuja on Saturday that they did not give their consent before the publication was made.

    Lawmakers numbering 118 lawmakers led by Rep. Ibori-Suenu Erhiatake, Chairman, House Committee on Niger Delta Development Commission (NDDC), were alleged to have signed the publication.

    In the advert the group demanded a fair hearing in the probe of Kyari, adding that any call for his resignation at this stage wais unnecessary and premature.

    In their publication, the group of lawmakers also urged President Bola Tinubu to disregard the call for the NNPCL Group Chief Executive Officer, Kyari’s sack or his resignation.

    They said rather efforts should be geared towards supporting Tinubu’s initiatives to reposition the nation’s oil sector.

    Among the members who distanced themselves from the publication were Rep. Sesoo Ikpaher, Deputy Chairman, House Committee on Land Transport, Rep. Tochukwu Okere, and Rep. Toyin Fayinka.

    Rep Philip Agbese, the Deputy Spokesperson of the House who was said to have endorsed the publication also denied giving his approval.

    Agbese had in various media reports urged Tinubu to fire Kyari even before the commencement of the investigation.

    When NAN contacted Agbese he said those though the lawmakers behind the advert sought his consent he asked for sometimes to give them a feedback because he was observing his prayers.

    He said he was surprised to learn that he was included as part of the lawmakers that approved the publication.

    Another lawmaker who pleaded anonymity told NAN that he did not see the draft of the publication before it was published,

    `I would have advised against it. Those behind it called me and said they were working on something; I didn’t know it was an advertisement they were working on,” the lawmaker told NAN.

    It would be recalled that Agbese and the group of other lawmakers under the group name Energy Reforms and Economic Prosperity had earlier called for the removal of Kyari.

    The group insisted that Kyari had hindered the growth of the oil sector thereby for stalling the economic growth of the nation.

  • ‘NNPCL should buy PMS at Dangote refinery and sell to us at discounted rate’ – Oil marketers

    ‘NNPCL should buy PMS at Dangote refinery and sell to us at discounted rate’ – Oil marketers

    The marketers in the downstream sectors have declared that they cannot afford to buy Premium Motor Spirit, popularly called petrol, from the Dangote Petroleum Refinery and sell at the prevalent pump prices at filling stations in Nigeria except the Nigerian National Petroleum Company Limited (NNPCL).
    The Deputy National President of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, told newsmen that no dealer in Nigeria would be able to buy the petrol from the Dangote refinery.
    He posited that the product would be priced at the international market rate, far higher than the domestic cost at the pumps.
    When asked whether oil marketers had been briefed about the price of petrol from the Dangote refinery, he gave a negative reply.
    He, however, stressed that PMS, from the plant, would be sold at the international market rate, adding that no marketer would want to pay such price currently.
    He said: “There has been no official communication from them yet on pricing for petrol. However, one thing I want you to understand is that even if the Dangote refinery starts to release products, particularly PMS, no marketer can be able to buy the product from him.
    “This is because the refinery is an independent commercial entity and they must recoup their cost of refining and add some margin before they sell out the product. The current price of the product within the country is below the international price of a litre of PMS.
    “So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre.”
    The IPMAN official, however, noted that for Nigeria to have Dangote petrol across its filling stations, the NNPC would have to intervene by purchasing the product and reselling it to dealers at discounted rates.
    “NNPC may have to offtake the product, just like they are importing from other countries for upward supply to Nigerian marketers, I think only the national oil company can offtake PMS from them and know how best they can continue to supply it to marketers to sell at the approved current price.
    “If it is not done this way, no marketer will be able to buy the product and sell it at a loss of over N400 to N500/litre. It is not possible” Mustapha stated.
    It was gathered  that the landing cost of petrol was N1,117/litre as of July 16, 2024, according to data released by the Major Energies Marketers Association of Nigeria, (MEMAN)
    The association had also revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre, at the time.
    The N1,117 landing cost of petrol is far above the pump price of the product in Nigeria. Currently, the pump price of petrol is between N660/litre and N800/litre, depending on the area of purchase.
    When contacted and asked whether major marketers would be able to buy petrol from the Dangote refinery, the Executive Secretary, MEMAN, Clement Isong, said his group had earlier published the landing cost of PMS, adding that this was the realistic cost of the product.
    “You have seen the price we published which is the realistic cost, and you know the cost at the pumps today, and Dangote refinery is a business entity that will not want to make losses. So that is all I will say,” he stated.
    NNPC is currently the sole importer of petrol into Nigeria. Other marketers stopped importing the product due to their inability to access the United States dollar required for PMS imports. NNPC had yet to respond to enquiries on the matter when contacted, up till when this report was filed.
  • Just In: Tinubu directs NNPC to sell crude to Dangote refinery in Naira

    Just In: Tinubu directs NNPC to sell crude to Dangote refinery in Naira

    President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL), to sell crude to Dangote Refinery and other upcoming refineries in Naira.

    The Special Adviser to the President on Information and Strategy, Bayo Onanuga, made this known in a post via his official X handle on Monday.

    He said: “To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira. Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.

    “But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.

    “Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game changing intervention will eliminate the need for international letters of credit. It will also save the country of billions of dollars used in importing refined fuel”.

    The development is coming amid the dispute between the 650,000 barrel-per-day Dangote Refinery and NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and other regulators in Nigeria’s oil and gas sector.

  • NNPC should buy and run my refinery – Dangote

    NNPC should buy and run my refinery – Dangote

    Africa’s richest man, Aliko Dangote has said he is willing to sell his oil refinery to the Nigerian National Petroleum Company (NNPC) Limited.

    Aliko spoke in an interview with Premium Times on Sunday.

    His statement comes amid a dispute between the refinery and Nigeria’s regulatory authorities in Nigeria.

    According to Dangote “Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist,” Dangote said.

    “That’s an incorrect and unfair allegation, but it’s okay. If they buy me out, at least, their so-called monopolist would be out of the way.

    “We have been facing fuel crisis since the 70s. This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture.

    “As you probably know, I am 67 years old, in less than three years, I will be 70. I need very little to live the rest of my life.

    “I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country.

    “So, I am ready to let go, let the NNPC buy me out, run the refinery. At least the country will have high-quality products and create jobs.”

    In May 2023, the billionaire’s refinery was inaugurated. The 650,000 barrel-per-day sits on a 2, 635 hectares of land located in the free zone area of Ibeju-Lekki, Lagos.

    The facility began the production of diesel on January 12, but petrol supply is billed for August after numerous factors — including crude supply challenges and a fire outbreak at the facility — stalled production.

    The constraints on accessing crude feedstock from international oil companies (IOCs) in Nigeria forced the company to import crude from countries like Brazil and the US to bridge the meet supply.

    According to the Premium Times report, Dangote also said the obstacles his refinery is facing seem to have vindicated friends and associates who advised him to tread with caution as he pumped billions of dollars into the Nigerian economy.

    “Four years ago, one of my very wealthy friends began to invest his money abroad,” Dangote added.

    “I disagreed with him and urged him to rethink his action in the interest of his country.

    “He blamed his action on policy inconsistencies and shenanigans of interest groups.

    “That friend has been taunting me in the past few days, saying he warned me and that he has been proven right.”

    On July 18, Farouk Ahmed, chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said local refineries, including the Dangote refinery, were producing inferior products compared to imported ones.

  • Port Harcourt refinery to begin production early August – NNPCL

    Port Harcourt refinery to begin production early August – NNPCL

    Senior officials at the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited (NNPCL) have revealed that the Port Harcourt refinery is currently undergoing various licensing processes.

     

    The NNPCL has reaffirmed its readiness to commence crude oil refining at the Port Harcourt refinery in early August.

    The Port Harcourt refinery complex, located in Alesa-Eleme near Port Harcourt in Rivers State, comprises two refineries. Port Harcourt II (New Refinery) is a complex conversion refinery with a nameplate distillation capacity of 7,500,000 MTA (150,000 bpd). Initially intended to serve as an export refinery when it came online in 1988, it has since been dedicated to the domestic market due to frequent supply interruptions from Nigeria’s other three refineries. Port Harcourt II has significant clean fuel capabilities, including the production of lead-free gasoline.

     

    Senior officials from the Federal Ministry of Petroleum Resources and the NNPCL revealed that the facility is currently undergoing various licensing processes, following the supply of crude to the plant after its mechanical completion in December 2023.

     

    Similarly, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed that the plant was in its final rehabilitation stage.

     

    “The mechanical work at the Port Harcourt refinery has been completed. Crude oil has also been sent to the plant. What remains now are licensing and related processes. These licenses are issued based on certain time frames.

     

    “Officials involved in issuing these licenses are currently observing the plant. Some arrived last month and are still there, inspecting everything. They will also need to test-run the plant, and all this will be done at their pace. Many of these officials are foreigners, and you can’t rush them.

     

    “They have their integrity to protect. If anything goes wrong at the refinery, the officials could be held accountable, and their insurance firms would have to cover any damages. So the timing of the refinery’s startup is not entirely in our hands,” stated a petroleum ministry official who spoke on condition of anonymity due to lack of authorization to discuss the matter.

     

    In March this year, the Group Chief Executive Officer of NNPC, Mele Kyari, announced that the Port Harcourt refinery had received 450,000 barrels of crude oil and was expected to begin operations in April. However, this did not occur.

     

    Kyari disclosed this at a press briefing following his appearance before the Senate Ad-hoc Committee investigating the various Turn Around Maintenance projects of the country’s refineries.

     

    “We achieved mechanical completion of the refinery in December. We now have crude oil stocked in the refinery. We are conducting regulatory compliance tests that must occur in every refinery before starting operations, and I assure you that the Port Harcourt refinery will start in the next two weeks.

     

    “Completing the mechanical work means that the rehabilitation work is done. Now, we must test to see how it functions. We have also completed the mechanical work on the Warri refinery, which is also undergoing regulatory compliance processes with our regulator. This will soon be completed and ready.

     

    “Kaduna refinery will be ready by December. We have not reached that stage in Kaduna, but we promise Kaduna will be delivered by December,” stated the NNPC helmsman.

  • Fuel stations to operate longer hours to aid PMS supply – NNPCL

    Fuel stations to operate longer hours to aid PMS supply – NNPCL

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) says fuel stations are to operate longer hours for supply and distribution  of petrol, calling on fuel stations to aid availability in view of the current tight situation.

    The NNPC Ltd. says the turnaround period of PMS trucking is also elongated to ease the situation being witnessed.

    The Executive Vice President, Downstream, Mr Dapo Segun, NNPC Ltd. said this on Monday in Abuja during a joint inspection of stations by the firm and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) officials.

    The NNPC Ltd. and the NMDPRA embarked on a joint monitoring of the supply and distribution of fuel stations in the FCT and across the country to ensure that queues disappear.

    The NNPC Ltd. had said that fuel queues in the FCT and parts of the country were as a result of disruption of ship-to-ship (STS) transfer of fuel between Mother Vessels and Daughter Vessels resulting from recent thunderstorms.

    It said adverse weather conditions; including rainstorm and lightning, had also affected berthing at jetties, truck load-outs and transportation of products to filling stations, causing a disruption in station supply logistics.

    Speaking during the inspection, Segun said there was a gap in ship-to-shore discharge of PMS which he described as a volatile liquid, adding that during thunderstorms it could not be discharged rather it had to suspend ship-to-shore movement.

    “This also affected the loading of trucks at the depot too because of safety reasons, so we have to suspend all that during thunderstorms and that’s why you see this tightness.

    “Though we have a challenge over the bad portions of motorways which deteriorated due to rains and flood across the country, we will ensure that we are loading out all through the weekend and that we are mobilising trucks.

    “We are getting fuel stations to run for longer hours and we are getting marketers to collaborate and share stocks, rather than have a station with more trucks, they can release those trucks to other stations for circulation,’’ he said.

    Mr Ogbugo  Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, said the tightness in Abuja and parts of Lagos arose from the inclement weather which affected operations offshore and  routes trucks ply.

    When asked of its effort to stop hoarding and the nefarious activities of black-marketers, Ukoha said its officials were on the ground going through the stations and depots to make sure that there was no hoarding.

    “Due to the tightness in supply, there may be elements who will try to take advantage of that. We assure Nigerians to go about their businesses and purchase the volume they need without panic,’’ he said.

    On any plan to increase fuel pump price, Ukoha said there was no intention or any anticipated plan to increase pump price, adding that the two organisations would continue to collaborate to ensure energy security.

    On this background, he said, the authority had done its regulation on national strategic stock and framework, adding that it was at the threshold of operationalising the framework.

    “Again the sensitivity on the pump price is another matter, once those national strategic stocks are in place the logistic issues we have will be mitigated to a large extent and stabilise both supply and prices,” Ukoha added.

    NAN reports that the team inspected fuel stations in the FCT, including the NNPC Ltd. Retail Outlet at Katampe and the AP fuel station located at Ibrahim Way, Garki 2, which have long queues.

    The stations’ managers also confirmed availability of enough stock, adding that the stations’ pumps dispensed accurately and relied on constant energy to dispense fuel to motorists.

    Motorists on ground also appealed to the government to find lasting solutions and expressed mixed feelings as some have spent longer time queuing for fuel while some did not waste time before their turns.

  • ‘GOOD NEWS’: NNPCL opens new filling station for Nigerians to buy gas at N200

    ‘GOOD NEWS’: NNPCL opens new filling station for Nigerians to buy gas at N200

    The Nigerian National Petroleum Company Ltd (NNPCL) has decided to open a new gas station in Lagos specifically for Compressed Natural Gas (CNG) vehicles.

    The new station is expected to service over 3,700 cars and 600 trucks daily that have been converted to run on CNG.

    Speaking on the new gas station, Kayode Opeifa, the executive director of the Centre for Sustainable Mobility/Access Development (MenSMAD), said the gas infrastructure will be a 5.2 million standard cubic feet plant around the gas hub in Ilasamaja, Lagos state.

    He said: “The NNPC, in partnership with Transit Gas Nigeria Limited (TGNL), will commission a 5.2 million standard cubic feet plant on May 30, 2024, around the gas hub in Ilasamaja.

    “The facility is ready and will include two key components: a compression plant and a dispensing outlet. The compression plant will compress natural gas (CNG) to increase its value, while the dispensing outlet will allow CNG vehicle owners to refuel. In addition to vehicle refueling, the plant will enable the purchase of compressed gas in bottles or tubes for industrial production. It can service approximately 3,700 cars or 600 trucks daily.

    “Unlike traditional plants, this state-of-the-art facility will feature multiple dispensing sets for cars, trucks, and buses, allowing for the rapid servicing of many vehicles within a short period. The price of CNG is a fuel gas under pressure that remains clear, odourless and non-corrosive. It is an alternative to petrol.

    According to Nagendra Verma, the managing director of NIPCO Gas AutoGas for cars, taxis and tricycles is being sold at about N200 per standard cubic foot, while for heavy commercial vehicles, CNG is sold at N260 per standard cubic meter (SCM).

  • No fire incident at our depot, NNPCL clarifies

    No fire incident at our depot, NNPCL clarifies

    The Nigeria National Petroleum Company Limited (NNPCL) says there was no fire incident at their deport but a nearby one.

    Earlier, the Lagos State Fire Service had said there was a fire incident at an NNPCL terminal in the Apapa area of Lagos.
    But the firm’s Chief Corporate Communications Officer Olufemi Soneye said the fire incident was at another depot.

    “The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to clarify that the fire incident at a tank farm in Marine Beach, Apapa, Lagos, was at a depot belonging to HOGL Energy Ltd (Honeywell Depot), and not an NNPC Retail Ltd.’s facility as circulated by early responders,” Soneye said.

    “The fire, which has since been extinguished, was as a result of petroleum products spillage within the perimeter of the tank farm.
    “Meanwhile, NNPC Ltd and other depots in the area have resumed loading activities. NNPC assures that the incident will, in no way, affect petroleum products supply and distribution across the country.”

  • JUST IN: Confusion as fire engulfs NNPC crude oil storage tank in Lagos

    JUST IN: Confusion as fire engulfs NNPC crude oil storage tank in Lagos

    A fire outbreak has occurred at the Nigerian National Petroleum Corporation Limited (NNPCL) tank farm on Friday.

    The incident happened on Kayode Street, Marine Beach, in the Apapa area of Lagos.

    It was gathered that the fire started at about 11:00 a.m. and quickly spread, causing panic among people in the vicinity.

    “People were running helter-skelter to contain the fire before the rescue team arrived,” an eyewitness accounted.

    The Lagos State Fire and Rescue Service, Lagos State Emergency Management Authority (LASEMA), and other emergency responders were swiftly deployed to the scene to battle the blaze.

    As of the time of filing this report, the rescue teams were still working to extinguish the fire.

    Preliminary investigations suggest that the fire was caused by a spillage of petroleum products within the terminal.

    The Director of the Lagos State Fire and Rescue Service, Mrs. Margaret Adeseye, confirmed the incident and stated that a concerted effort was being made with various emergency responders within the oil and gas industry to contain the situation.

    This is not the first time the facility has been affected by a fire outbreak.

    In 2020, the OVH Energy storage facility, which contained about 6,000 metric tonnes of petrol, was razed by fire.

  • Kaduna Refinery to resume production by December — NNPCL

    Kaduna Refinery to resume production by December — NNPCL

    After years of being shut down, the Management of the Nigerian National Petroleum Company Limited (NNPCL) said the rehabilitation of the Kaduna Refining and Petrochemicals Company (KRPC) will be completed by the end of 2024 .

    The Managing Director of KRPC, Mustafa Sugungun, disclosed this on Monday during an oversight visit to the refinery by members of the Senate Adhoc Committee on Petroleum Downstream led by Senator Ifeanyi Ubah.

    He explained that the 110,000-barrel-per-day refinery will start producing at 60 percent capacity by the end of the year, while full production will take place subsequently.

    The KRPC boss explained that the rehabilitation work, which is presently at 40 percent, is expected to be completed within the stipulated time frame

    He said, “Our rehabilitation is going on well and steadily according to the plan we have. We are planning to bring this plant to 60 percent nominal capacity by December 31st, 2024.

    “Currently, we are heading towards 40 percent of rehabilitation. We remain committed to bringing back the plant at least 60 percent of our nominal capacity.

    “The overall capacity of Kaduna Refinery is 110, 000 barels per day, but we are starting with only 60 percent of that. And in less than one year, we will attain the 110,000 capacity.

    “So this initial plant operation is for 60 percent Nigerian crude and 50, 000 barrels of imported crude. Imported crude is mainly for lubricants and other petrochemical aspect of it.”

    On his part, Senator Ubah said that the oversight visit was part of the collaborative effort of the President Bola Tinubu and the National Assembly to ensure that all the nation’s refineries are brought back to life, and consequently enable the country to end the importation of petroleum products.

    The Kaduna refinery was established in 1980 to supply petroleum products to Nigeria’s Northern region, with a capacity of producing 110,000 barrels per day of crude oil.

    For many years, he Kaduna refinery, just like it’s counterparts in Portharcourt and Warri, has been out of production, leaving the country to rely heavily on imported petroleum products.