Tag: NNPCL

  • Fuel queues will be cleared by May 1 – NNPCL

    Fuel queues will be cleared by May 1 – NNPCL

    The Nigerian National Petroleum Company Ltd. has assured Nigerians that the ongoing fuel scarcity and queues will be cleared out Wednesday, May 1.

    Mr Olufemi Soneye, Chief Communications Officer, NNPCL, told the NAN on Tuesday in Lagos.

    According to Soneye, the company currently has an availability of product exceeding 1.5 billion litres, which can last for at least 30 days.

    “Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

    “However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations,” he said.

    He said: “Some folks are taking advantage of this situation to maximize profits.

    “Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain

    “The lines will be cleared out between today and tomorrow,” Soneye assured.

    Similarly, Mr Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (lPMAN), expressed hope that the queues in Lagos and Ogun would ease off this week, relying on the words of the NNPCL.

    Fashola, however, stated that the queues in Abuja might tarry a bit due to the distance to Lagos.

    “The information available to us from the NNPCL was that there was a logistics problem, and when that happens, it will disrupt the supply chain.

    “That might be a delay in the movement of ships from the mother vessel to the daughter vessel before it gets to the depot tanks.

    “Before we can correct that, surely it will take some days. I think by Tuesday or Wednesday, there will be more products available for lifti¹ng by marketers.

    “It might take time before it can ease off in Abuja, considering the distance to Lagos and the bad roads; Lagos might be calm this new week,” Fashola assured.

    NAN correspondent who monitored the situation on Monday reports that stranded motorists and commuters have expressed concern over frequent fuel scarcity in Lagos metropolis.

    This has resulted in a few commercial vehicles, which led to a hike in fares.

    The situation within Lagos metropolis showed that only a few filling stations were selling, with long queues in most parts.

    NAN reports that this was also the same situation within Abule -Egba and environs, Abbatoir Road in Agege, Akowonjo Road, Bariga, Fola- Agoro and the popular Lasu-Igando Road.

    The few filling stations that dispensed petrol had long queues of vehicles stretching some meters.

    Across the metropolis on Monday, petrol queues were seen at filling stations like Mobil, NIPCO, TotalEnergies, Forte Oil and ConOil along Ikorodu Road.

    North West at Maryland, Gbagada, NIPCO along Ijede road, Ikorodu, and TotalEnergies at the NNPC bus stop in Ejigbo stretched to about 500 metres from the pumps.

  • NNPCL resolves supply hitch in Lagos

    NNPCL resolves supply hitch in Lagos

    The management of the Nigerian National Petroleum Company Ltd.(NNPCL) has attributed the insufficient supply of petroleum products to some filling stations in Lagos to an issue at one of its depots in the state.

    Mr Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, disclosed this in a statement on Friday in Lagos.

    Soneye said that NNPC Ltd.’s retail arm had resolved the issue, and that starting from April 6, normalcy would return to the affected areas.

    He urged motorists in Lagos to refrain from panic buying of petrol, emphasising that efforts were underway to ensure adequate supply of petroleum products in the region.

    A resurgence of fuel queues was reported in parts of Lagos as supply decreases.

    Motorists across filling stations in various parts of the state, including Ikorodu Road, Bariga, Anthony, Mayland, Oyingbo and Ogba encountered long queues of vehicles.

    Other areas include Ikeja, Alausa, Oba Akran, Surulere, and Victoria Island.

  • 7 men arraigned for allegedly tampering with NNPCL pipeline

    7 men arraigned for allegedly tampering with NNPCL pipeline

    Seven men on Monday appeared before the Federal High Court in Lagos State for allegedly tampering with a petroleum product pipeline.

    The defendants are Godbless Ebi, Gabriel Otovor, Saheed Abdularahman, Anthony Arubayan, John Adebayo, Emmanuel Ajayi, and Godwin Joseph.

    They were arraigned before Justice Abimbola Awogboro on a two-count charge of conspiracy and unlawfully tampering with petroleum pipeline.

    They, however, pleaded not guilty.

    Prosecution counsel, Mrs. O. Halima, told the court that the defendants committed the offences on Jan. 10 at Obawole, Fagba,  Lagos State.

    The alleged offences contravene Sections 1(19) and 3(6) of the Miscellaneous Offences Act, Law of the Federation, 2004.

    The court granted the defendants bail in the sum of five million Naira each, with two sureties in like sum.

    The court also ordered that one of the sureties must have a landed property.

    It adjourned the case until March 11 for trial, and ordered that the defendants should be kept at the Ikoyi custodial facility, pending perfection of their bail.

     

  • Afreximbank, UBA announce initial disbursement of $2.25bn NNPCL crude oil prepayment facility

    Afreximbank, UBA announce initial disbursement of $2.25bn NNPCL crude oil prepayment facility

    Afreximbank, UBA Announce an Initial Disbursement of US$2.25 billion Under a syndicated US$3.3 billion Crude Oil Prepayment Facility Sponsored by the Nigerian National Petroleum Company Limited.

    Landmark financing is largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated transactions in Africa in recent years.
    Facility will support Nigeria’s macroeconomic stability and long-term economic growth, facilitating access to raw materials and trade development.

    Groundbreaking transaction represents a significant vote of confidence in Nigeria and Africa.

    United Bank for Africa Plc (UBA) is the Local Arranger and Onshore Account Bank for the transaction, Lagos, 13 January 2024: – African Export-Import Bank (Afreximbank) has successfully arranged a syndicated US$3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).

    An initial disbursement of US$2.25 million has been made. A second tranche of US$1.05 million is expected to be disbursed subsequently.

    United Bank for Africa Plc (UBA) acted as the Local Arranger and Onshore Account Bank for the transaction, which is expected to ease the foreign exchange illiquidity and stabilise the Nigerian currency market.

    The transaction is seen as a significant further step in unleashing Nigeria’s economic potential.

    This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023.

    The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR). The transaction structure has an embedded price balance mechanism where 90% of all excess cash from the sale of the committed barrels (after debt service) will be released to the borrower, while the balance of 10% will be used to prepay the facility, effectively shortening the final maturity of the facility and freeing cashflow from future pledged cargoes for use by Nigeria.

    The initial participating lenders are Afreximbank, Africa’s multilateral trade finance institution, Gunvor International BV, a Geneva-based multinational energy and commodities trading company and Sahara Energy Resources Limited, an African-owned, leading international energy and infrastructure conglomerate.

    Afreximbank’s extensive structuring and technical experience in arranging similar complex oil & gas financing facilities in Angola, Republic of Congo, South Sudan, Chad Egypt, Cote d’Ivoire. Ghana, etc. was brought to bear in the successful closure of the facility, notwithstanding a very challenging market environment. The Bank acted as Sole Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent.

    Lauding the successful financial close, Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, explained that “this facility further demonstrates the Bank’s commitment to supporting African economies, when such assistance is most needed. Afreximbank stands by its member countries in good and in difficult times. The disbursement of the initial US$ 2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support industrialization and trade development efforts.

    “We are pleased that despite the typical year-end pressures, our partners and investors committed the funds required in record time. We thank them for their support”.

    The NNPCL Group Chief Executive Officer, Mr. Mele Kolo Kyari, commented on this landmark transaction, noting that “the proceeds of the facility have been made available to the Federal Republic of Nigeria as one of the strategies to improving macro-economic stability.

    “The participation of global, international and regional syndication firms is a further testament to the lending market’s appetite for financing sponsored by NNPCL and signifies solid market confidence in Nigeria.”

    The Group Managing Director/CEO, United Bank for Africa (UBA), Oliver Alawuba said that “UBA is delighted to participate in this transaction, which demonstrates once again UBA’s commitment to providing necessary interventions and solutions towards addressing economic issues in Nigeria and across Africa. UBA has a track record of structuring and participating in significant resource-based transactions, leveraging its global network and dollar balance sheet. Similar transactions include DRC deal, Kenyan deal, Senegal SAR Orion deal with Afreximbank.”

    United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-seven (27) million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris, and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

  • Port-Harcourt Refinery test run to be completed this January – NNPCL

    Port-Harcourt Refinery test run to be completed this January – NNPCL

    The Port Harcourt refinery has been revealed by the Nigerian National Petroleum Corporation Limited that it would complete its test run this month of January.

    NNPC spokesperson, Femi Soneye, stated that, “Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month”.

    Soneye added that the test run was a major step towards resuming operations five years after the plant was shut down.

    Recall in December, the state-owned oil company announced the mechanical completion of rehabilitation work on the Area-5 Plant of the facility.

    It said the first phase of the plant had been completed, as the facility would start refining 60,000 barrels of crude oil daily after the Christmas break.

    The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had stated that the first phase of the PHRC was completed on December 20, 2023, adding that refined products’ production would commence after the Yuletide.

    Projections are that once operational, along side the Dangote refinery which is said to start operations this year, the pressure of the country’s foreign exchange may be eased.

  • Osesua remains our national chairman – PTD tells NUPENG, Egbon

    Osesua remains our national chairman – PTD tells NUPENG, Egbon

    The National leadership of Petroleum Tanker Drivers (PTD) branch of NUPENG, on Sunday, told Augustine Egbon, Afolabi Olawale, Williams Akporeha and Salimon Akanni Oladiti that their plot to remove Comrade Lucky Osesua and Comrade Yusuf Dayyabu Garga as Chairman and Deputy Chairman respectively of the PTD would woefully fail.

    The PTD described the plot as “an enterprise in futility.”

    The National Chairman, Osesua and the National Secretary, Humble Power Obinna of the PTD branch in a jointly signed statement on Sunday, advised NUPENG leadership to stop chasing shadows and concentrate on letting lasting peace reign in the union.

    They said that parading Augustine Egbon as the National Chairman of PTD was an affront on the side of the law and other constitutional guidelines known by the union.

    The duo also added that Gambo Tuge, who is a respected leader in PTD, remained law abiding and not a fugitive of the law and could not be labeled with unprintable names simply because he was protectimg the interest of the union through legitimate and decent means recognized by the law as well as International Labour Organisation (ILO)
    conventions guiding trade unionism.

    They also said that the election conducted in Abuja on Tuesday, 31st October, 2023, by the branch was the one recognized by law.

    The Abuja election, they said, subsequently produced Osesua, Garga, Obinna, Akinlolu and other executives.

    They equally stressed that those calling for fresh election had not breached any law, nor had they committed any crime.

    PTD also condemned the use of Police and other coercive forces to bully them into silence while also maintaining that police cannot be cajoled to fall for their vicious antics by intimidating, victimizing, oppressing and frustrating them through blackmail, forum chopping/trumped-up charges and propaganda.

    The statement read, “Our attention has again been drawn to a misleading report populated in the media by elements who are against the progress and success of NUPENG as well as petroleum tanker drivers branch of the Union and these individuals are clearly known as Afolabi Olawale (General Secretary), Williams Akporeha (President), Otunba Salimon Akanni Oladiti (National Trustee) and Augustine Egbon.

    “They cannot foist on the rest of us Egbon as the National Chairman; it is not only illegal but also totally disgraceful to what trade unionism stands for and the rule of law. Moreover, the Union is bigger than anyone. The ILO conventions and other extant rules and ethics are very clear about this.

    “Those seeking to harass, intimidate or trying to remove Comrade Lucky Osesua and Comrade Yusuf Dayyabu Garga from the position of National Chairman and Deputy National Chairman respectively, are engaging in what we can call an enterprise in futility because they were validly elected by the great and hardworking members of PTD as stipulated in the union’s rules, guidelines and by-laws.

    “Our election duly conducted in Abuja on Tuesday, 31st October, 2023, is the one recognized by law which subsequently produced Osesua, Garga, Obinna, Akinlolu, and other executives. The illegal leadership under Augustine Egbon could not avail itself legitimacy by serially violating the sanctity of our Branch’s bye-law and other legal methods of conducting Delegates Conference.

    “On the allegation that the rules of conducting elections were amended, the question Nigerians should ask is, is it possible for one man to change the rules one hour to the election or inauguration? Where was the amendment printed?

    “Meanwhile, the previous Police invitation of all our national executives is the height of the NUPENG’s leadership’s desperation to force Osesua out of office. This has also failed, because Police as a law-abiding federal security agent, now know the truth. Extrapolating a police invitation of anyone, despite their status, is itself an invitation to lawlessness and anarchy, which permeated the long but ineffective rule of Afolabi and his ilk in NUPENG.

    “Police cannot be cajoled to fall for their vicious antics by intimidating, victimizing, oppressing and frustrating us, Afolabi, Williams and Oladiti attempt to blackmail us and engage in forum shopping/trumped-up charges and propaganda had failed ab initio. They should stop chasing shadows.

    “Similarly Gambo Tuge who is a respected member of the union is not a fugitive of the law, he is law abiding, calling him unprintable names will not change anything and his position that there is need for an election to be conducted in PTD is not an error or aberration therefore such legitimate move cannot be criminalised under any guise.

    “Permit us to also put on record that the Federal ministry of Labour and Employment tried to serve as an arbiter in this matter to create lasting peace, but NUPENG leadership refused to honour an invitation to broker truce. The elders and veterans of our union (past General Secretaries and Presidents) also called for a meeting; these purported leaders also did not show up, which only shows that they are benefiting from current crisis at the expense of the members, staff members and other stakeholders.

    “We therefore urge all members of our branch across the four zones to remain law abiding while we also assure them of victory which is near. We would not rest on our oars but will remain resolute to grant freedom and dignity to them all in the nick of time.

    “We further use this medium to call on all law enforcement agents in the country, including Police and DSS to give closer look to NUPENG and ensure that sanity is restored and forthwith stop Afolabi, Akporeha and Oladiti from giving strength to an impostor and stooge who came in through a kangaroo election in Ibadan against the will of our members.

    “We maintain our clarion call that PTD should be allowed to breathe and survive.

    “Thank you all and long live PTD.”

    Signed:

    Comrade Lucky Osesua
    PTD National Chairman

    Comrade Humble Power Obinna
    PTD National Secretary

  • SERAP sues NNPC over failure to account for Nigeria’s daily oil production, revenues

    SERAP sues NNPC over failure to account for Nigeria’s daily oil production, revenues

    Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company (NNPC) Limited over the “failure to disclose details of Nigeria’s daily oil production, exportation and the total amounts of revenues generated from oil since the removal of subsidy on petrol in May 2023.”

    Former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, had recently alleged that “the NNPCL is failing to remit enough foreign exchange into the treasury despite the removal of fuel subsidy,” asking: “Where is the money?”.

    In the suit number FHC/ABJ/CS/1719/2023 filed last Friday at the Federal High Court in Abuja, SERAP is seeking: “an order of mandamus to direct and compel the NNPC to disclose details of barrels of oil Nigeria produces and exports daily and the total amounts of revenues generated since the removal of subsidy on petrol.”

    SERAP is seeking: “an order of mandamus to compel the NNPC to disclose how much of the revenues generated from the production and exportation of oil have been remitted to the public treasury since the removal of subsidy on petrol.”

    SERAP is also seeking: “an order of mandamus to direct and compel the NNPC to disclose details of payment of 11 Trillion Naira made as subsidy payments from 1999 to May 2023, including a detailed breakdown of the payments made.”

    In the suit, SERAP is arguing that: “There is a legitimate public interest in disclosing the information sought. The NNPC has a legal responsibility to disclose the details of Nigeria’s daily oil production, exportation and the revenues generated and remitted.”

    SERAP is also arguing that, “Nigerians have the right to know the amounts of barrels of oil the country produces and exports daily, the revenues generated and remitted to the public treasury.” Compelling the NNPC to disclose these details would promote transparency and accountability in the oil sector.”

    According to SERAP, “The failure by the NNPC to disclose the information sought is a grave violation of the provisions of the Nigerian Constitution 1999 [as amended], the Freedom of Information Act, and the country’s obligations under the African Charter on Human and Peoples’ Rights.”

    SERAP is arguing that, “Transparency would ensure that the revenues generated from Nigeria’s daily oil production and exportation are not diverted into private pockets, and increase public confidence that the revenues would be used to benefit Nigerians.”

    The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare and Andrew Nwankwo, read in part: “Nigeria’s daily oil production, exportation and the revenues generated have been mostly shrouded in secrecy.”

    “Disclosing the amounts of barrels of oil the country produces and exports daily, the revenues generated and remitted to the public treasury would also ensure that the NNPC operates within the law.”

    “Transparency and accountability in the amounts of barrels of oil the country produces and exports daily, the revenues generated and remitted to the public treasury would improve the enjoyment by Nigerians of their right to natural wealth and resources.”

    “The public interest in publishing the information sought outweighs any considerations to withhold the information.”

    “Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money primarily because of widespread grand corruption, and the culture of impunity of perpetrators.”

    “Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.”

    “Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions and officials to abolish all corrupt practices and abuse of power. Section 16(2) of the Nigerian Constitution further provides that, ‘the material resources of the nation are harnessed and distributed to serve the common good.’”

    “Section 13 of the Nigerian Constitution 1999 imposes clear responsibility on the NNPCL to conform to, observe and apply the provisions of Chapter 2 of the constitution.”

    “Nigeria has made legally binding commitments under the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to ensure transparency and accountability in the management of public resources.”

    “Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the NNPCL to ensure proper management of public affairs and public funds. These commitments ought to be fully upheld and respected.”

    “Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure, and a presumption that all information is accessible subject only to a narrow system of exceptions.”

    “By Section 1 (1) of the Freedom of Information (FoI) Act 2011, SERAP is entitled as of right to request for or gain access to information, including information on the details of barrels of oil Nigeria produces and exports every day and the total amounts of revenues generated and remitted to the public treasury.”

    “The Freedom of Information Act, Section 39 of the Nigerian Constitution, and article 9 of the African Charter on Human and Peoples’ Rights guarantee to everyone the right to information, including the details of Nigeria’s daily oil production, exportation and the total amounts of revenues generated and remitted to the public treasury.”

    “By the combined reading of the provisions of the Nigerian Constitution, the Freedom of Information Act and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on the NNPCL to publish the details sought.”

    “The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities.”

    “The NNPCL has failed to disclose the amounts of barrels of oil the country produces and exports. The NNPCL has also reportedly failed to publish details of revenues generated from the production and exportation of oil and the amounts of revenues remitted to the public treasury as required by Nigerian laws.”

    “According to the former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, ‘It is only the NNPCL that can give the figures about how much oil we produce daily, how much we sell, and where the money is going. We are no longer paying subsidies so where are the dollars? Where is the money?’”

    “The NNPCL has a legal responsibility to promote transparency and accountability in the country’s daily oil production, exportation and the revenues generated and remitted to the public treasury. The NNPLC also has a legal responsibility to disclose details of payment of N11 trillion subsidy.”

    No date has been fixed for the hearing of the suit.

  • Fuel price to drop from N617 as Port Harcourt refinery resumes

    Fuel price to drop from N617 as Port Harcourt refinery resumes

    The fuel price has been predicted to reduce from N617 per litre as the Port Harcourt Refining Company, PHRC, Limited, with a combined capacity of 210,000 barrels per day, commenced operation on Wednesday, December 20, 2023.

    In a now-viral video, the refinery’s flare indicated the commencement of oil refining.

    The development comes months after the Minister of State for Petroleum (Oil) Senator Heineken Lokpobiri said in August that the Port Harcourt refinery will commence operation in December 2023.

    According to the Minister, the objective is to ensure the country stops importing fuel.

    Corroborating Lokpobiri’s stance, the Nigerian National Petroleum Corporation Limited, NNPCL, declared that importing petroleum products into the country will cease by December 2024.

    The Group Chief Executive Officer of the NNPCL, Mele Kyari, said, “I can confirm to you that by the end of December this year, we will start the Port Harcourt refinery; early in the first quarter of 2024, we will start the Warri refinery, and by the end of 2024, Kaduna refinery will come into operation.

    In March 2021, the Federal Executive Council approved $1.5 billion to rehabilitate the Port Harcourt Refinery.

    Meanwhile, Stakeholders in the downstream petroleum sub-sector drawn from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have assured that the prevailing crisis in the energy sector would soon end with the envisaged return of operations at the Port Harcourt Refinery, Rivers State in January.

    The national president and chairman, Board of Trustees (BoT) of NOGASA, Mr Kenneth Korie and his PETROAN counterpart, Dr. Billy Harry, who spoke after the inauguration of Akwa Ibom State chapters of the two industry regulatory bodies at Ibom Icon Hotel, Uyo, the state capital yesterday, said they were 100 percent sure that the prices of petroleum products would crash when the refineries begin to function again from January.

    Korie, who blamed the current hike in prices of the products on importation, said rehabilitation and upgrade of the refineries in Port Harcourt, Kaduna and Warri, which he said works have reached advanced stages, remain the sure way of collapsing the prices of the products.

    He said, “Yes, of course there is hope. The GMD NNPC has given assurance concerning that before the National Assembly. In all my talks, I have been hammering on the Port Harcourt Refinery to come on steam.

    I’m 100 percent sure that there will be a serious reduction in the price of petroleum products as soon as our four refineries, including the Dangote Refinery, come up. But we should not expect the price to come down like it was before, because of the high exchange rate, but it will be a bit lower than what it is now.”

    In the same vein, the national president of PETROAN, Dr Billy Harry, described the inauguration of the two associations as unique, adding that it is the first time in the annals of the history of the downstream sector for such to happen.

    He said it is only when the two groups work together and act together that they would be able to overcome the challenges in the sector and ensure that Nigeria returns to the time when petroleum products is sold at a price that a common man can afford.

    He expressed that “what we are doing today is unique, it’s epic and it’s the first in the annals of the history of the downstream sector. We are going to make it unique throughout the country because together we can make sure that the importation of petroleum products is reduced to the barest minimum.”

    “Together we can make sure that our refineries are working again, together we can get back to the time when petroleum products are sold at what the common man could afford. They say in Nigeria, anything that goes up will not come down again, but I can tell you with the synergy that is coming from retail outlet owners and the suppliers’ association of Nigeria, this is going to be something that is going to change the landscape of the economy and the economic activities of the downstream, so take this meeting as history,” he assured.

  • Delta Govt, NNPCL, UTM Offshore sign agreement to develop floating LNG

    Delta Govt, NNPCL, UTM Offshore sign agreement to develop floating LNG

    Delta State Government, Nigerian National Petroleum Company Limited and the UTM Offshore Ltd, Tuesday, signed a Shareholders Agreement for the development of first Floating Liquefied Natural Gas, FLNG in Nigeria.

    Secretary to the State Government, Dr Kingsley Emu and Solicitor General and Permanent Secretary Ministry of Justice, Mr Omamuzo Erebe signed for the Delta State Government, while the Group Chief Executive Officer, Mr. Mele Kyari and Group Managing Director Julius Rone signed for NNPC Limited and UTM Offshore, respectively.

    With the agreement Delta State Government will own eight percent share of the project, NNPC Limited 20 percent and UTM Offshore 72 percent.

    Speaking at the signing ceremony at the NNPC Towers Abuja, Governor Sheriff Oborevwori of Delta State, said the UTM FLNG Project was the first of its kind to be developed by an indigenous private company in Nigeria.

    Governor Oborevwori explained that the state government took 8% equity in the floating LNG project because of its conviction of the strategic importance of the project to the national economy, adding that with 40% of Nigeria’s proven gas reserves in Delta State, it was a worthy investment.

    According to him, the deal marked a significant milestone in the development of the project, expressing hope that construction will begin next year.

    He said: “Of particular interest to Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socio-economic development of our great state. It is expected that over 300,000 metric tonnes of LPG (cooking gas) will be produced and dedicated to the domestic market.

    “This project will also help to mitigate the environmental hazards in the Niger Delta by reducing gas flaring. Of course, our women folk will also benefit from the fuel switch from kerosene and firewood to cleaner energy, thus improving their health and general wellbeing.

    “Another benefit we envisage with this project is that it will create job opportunities for our youths, which is one of the four pillars of our MORE agenda”.

    While commending the immediate the immediate past Governor, Senator Ifeanyi Okowa for his foresight in investing in the venture, he commended other stakeholders “like regulators and Afreximbank for helping to arrange financing and, of course, the dedicated staff of Delta State Investment and Development Agency (DIDA) for their resourcefulness”.

    In his remarks, the Group Chief Executive Officer, NNPC, Mr Mele Kyari commended the Delta State Governor for not just being a promoter of gas development in the country but for also investing in gas projects.

    “We are happy to collaborate with the Delta State Government in this venture. The State Government is here in two capacities, one as a supporter of growing gas utilization in the country and also now as an investor in this necessary industry but potentially a valuable industry for all of us”, he added.

    Also speaking, the Minister of State Petroleum Resources (Gas), Hon. Ekprikpe Ekpo noted that it was time for the country to begin the monitisation of its huge gas reserves for the development of the economy.

    In his remarks, Group Managing Director of UTM, Mr. Julius Rone said the signing ceremony marks another significant milestone in actualizing Nigeria’s first indigenous FLNG.

    Mr. Rone said he expects the Final Investment Decision (FID) on the project to be taken before the end of the first quarter of 2024. He commended the stakeholders for their support, especially the Delta State Government for investing in the project.

    “I want to thank the Delta State Government for taking an equity on this laudable project which will create other sources of revenue for the state to develop their infrastructure that is highly needed and create employment for the teeming youths of Delta State”, Rone said.

  • Tinubu fires warning at new NNPC board, threatens sack

    Tinubu fires warning at new NNPC board, threatens sack

    President Bola Tinubu has urged the Board of the Nigerian National Petroleum Company Limited (NNPCL) to immediately get to work, warning that non-performance would not be tolerated.

    Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, in a statement, said Tinubu said this while inaugurating the Board of the NNPCL at the State House, on Monday in Abuja.

    Tinubu also said that conducts suggesting a sense of entitlement would not be tolerated, warning that the Board could be dissolved without prior notice to members over non-performance.

    “The challenge is corporate governance. Yes, we will improve the security situation. We are working very hard. Sincerely, the Chief Executive Officer, Kyari, is doing very well, and doing all that I know.

    “But you could be suddenly dissolved if there is no sustained excellence in performance. It is my honour to inaugurate this Board, which has people of great integrity. I am honoured that we are doing this. I recognize all of you,’’ he said.

    Tinubu said corporate social responsibility for the Niger Delta must be taken seriously, considering the devastating effects of oil exploration and exploitation on the environment.

    “Niger Delta must be seen as the goose that lays the golden egg, and we must treat that region with the deserved respect and care. It is not asking for too much to ensure quality and constant water supply, schools, medical facilities, and roads.

    “It is not about us. It is about the well-being of the entire country and the lifeblood of the nation. We should care more about the environment. We will do more for security to minimise stealing and vandalisation,’’ he stated.

    The President directed that more attention should be given to gas as Nigeria transitions to cleaner energy, adding: “We need to show that we are committed to the welfare of our country.

    “Take a look at the Petroleum Industry Act (PIA), and know what the pitfalls are. The Cabinet members and Board should decide what we can do differently for production increase, profitability, and governance. It is in your hands. I will work with you,’’ he said.

    In his remarks, the Chairman of the Board, Chief Pius Akinyelure, commended the President for the removal of petrol subsidy, noting that the nation would have drowned in debt, but for his decisiveness.

    “Our focus is to increase production. We must address the problem of stealing and pipeline vandalisation in the Niger Delta. We are aware of the efforts in the past, but we will do more,’’ he said.

    2024: NNPCL pledges to produce 2m barrels of crude oil daily

    Meanwhile, the newly appointed Board and Management team for the Nigerian National Petroleum Company Ltd (NNPCL) on Monday pledged to produce two million barrels of crude oil on a daily basis from 2024.

    Chief Pius Akinyelure, Non-Executive Board Chairman of NNPCL, stated this while briefing State House Correspondents shortly after the inauguration of the board by President Bola Tinubu.

    Akinyelure also promised that the board would overhaul the security architecture of the NNPCL with a view to curb incidents of stealing and vandalisation of pipelines.

    “We have just concluded our inauguration ceremony by Mr President and we have assured him of our collective efforts to turn around the fortune of the Oil and Gas.

    “And to make it a company that we will all be proud of and a company that will help sustain the economy and make sure we create some element of prosperity for Nigerians.”

    He revealed that the President had assured the new board of his support to enable them discharge their mandate diligently and effectively.

    “He (President) has assured us of his support and on our own part too, we have given him our one 100 per cent assurance.

    “We will do the best we can to make sure that the key performance in the oil and gas industry in Nigeria probably will become number one in Africa and probably compete with the leading oil and gas industry around the world.

    “It is not an easy task but we know we had the challenge of oil stealing, vandalisation of our pipelines.

    “Our commitment is to produce at the rate of two million barrels per day anytime from next year.

    “But to do this, we have to overhaul our security architecture, so that the incidences of stealing, vandalisation of pipelines can be reduced.

    “And this will possibly help to keep all our cash book and we will become a better nation,” Akinyelure said.

    Tinubu recently approved the appointment of a new Board and Management team for NNPCL with effect from Dec. 1.

    Chief Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, who made the announcement, said the appointment was in compliance with Section 59 (2) of the Petroleum Industry Act, 2021.

    The appointees are: Chief Pius Akinyelure — Non-Executive Board Chairman, Malam Mele Kolo Kyari — Group Chief Executive Officer, and Alhaji Umar Isa Ajiya — Chief Financial Officer.

    Others are Mr Ledum Mitee — Non-Executive Director, Mr Musa Tumsa — Non-Executive Director, and Mr Ghali Muhammad — Non-Executive Director.

    The rest are Prof. Mustapha Aliyu — Non-Executive Director, Mr David Ogbodo — Non-Executive Director, and Ms Eunice Thomas — Non-Executive Director.