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Tag: Timipre Sylva

  • Minister announces kick off date for NNPC Limited

    Minister announces kick off date for NNPC Limited

    The Nigerian National Petroleum Corporation (NNPC) will become a commercial company within six months, the Minister of State for Petroleum Resources, Timipre Sylva said on Tuesday.

    This follows the signing of the Petroleum Industry Bill into law by President Muhammadu Buhari on Monday.

    Sylva, who was speaking at a press conference in Abuja, said a transitional committee is already in place to incorporate NNPC Limited.

    All shares in NNPC Limited are expected to be vested in the government at incorporation and held by the Ministry of Finance.

    Sylva noted that although the new petroleum act has deregulated the oil sector, subsidy policies will remain in place till further notice.

    He said an implementation framework for actual deregulation will be established to mitigate the impact on ordinary Nigerians.

  • No set date for removal of fuel subsidy – Minister

    No set date for removal of fuel subsidy – Minister

    The Minister of State for Petroleum, Timipre Sylva, has said that there is currently no set date for petrol subsidy removal.

    The minister who said this on Thursday on a monitored Channels Television programme added that the government is being considerate of citizens.

    “I cannot give you a date for now. But the Vice President is actually leading the efforts and very soon, we will tell Nigerians what date the removal of subsidy will kick in.”

    He said the government is also making efforts to put structures in place to cushion the effect of the eventual subsidy removal.

    “We must be considerate of our people; you cannot say because you have the muscle, box everybody down in the room. So, what we are saying is that before doing this, we need to put some structures in place so that the impact on the people can be minimized. We are trying to create an alternative that is cheaper and more affordable.

    “We also think that there should be some palliatives,” the minister added.

  • How we ‘accidentally’ discovered 206trn cubic feet gas reserve – Timipre Sylva

    How we ‘accidentally’ discovered 206trn cubic feet gas reserve – Timipre Sylva

    Minister of State for Petroleum, Chief Timipre Sylva, has said that the country accidentally discovered 206 trillion cubic feet of gas reserves while in search of crude oil.

    Sylva, who disclosed this in Abuja at a News Agency of Nigeria forum, said that the country could discover an additional 600 trillion cubic feet reserve to enable it achieve the desired development required of a gas nation.

    “We have a lot of gas in this country. We have 206 trillion cubic feet of gas reserves.

    “This number is already discovered in gas reserves and this 206 trillion cubic feet reserve was found while looking for oil, so it was accidentally discovered.

    “We were actually going to look for crude oil and we found gas, and in that process of accidentally finding gas, we have found up to 206 tcf.

    “So, the belief is that if we really aim to look for gas dedicatedly, we will find up to 600 trillion cubic meters of gas,” he said.

    According to the minister, the country’s transition from gas to renewable fuel will be gradual when it has fully utilised the benefits associated with gas.

    “We are also transiting and that is why we are talking about gas. We are seeing gas as a bridge to renewable fuels.

    “We came from coal which is solid, to crude oil; now we are moving to gaseous gas and then to renewables.

    “The belief in the industry is that if we have this kind of vast resource and we have not tapped it, why should we abandon it and move to renewables.

    “We have not used gas to drive our cars and few people use it to cook; we have not used gas to generate electricity or used it to fire our fertiliser blending plants, then why should we abandon it and move to renewables?

    “What we are saying is that the western countries are in a position to move to renewables after using coal and crude oil to stabilise the electricity in their areas and everybody there enjoys it.

    “But we have a situation in Nigeria where a lot of people do not have access to electricity yet.

    “So, what we are saying is that we agree to transit but let us use our gas first to develop our country and get the benefits of development, that point where everybody has electricity, then we can transit to renewable fuel,” he added.

    Sylva explained that so far gas was being used as a transition fuel, as Nigeria and Africa as a continent does not contribute more than one per cent of global warming as carbon emission.

  • No fuel price increase in June – FG

    No fuel price increase in June – FG

    There will be no increase in the pump price of Premium Motor Spirit (PMS), popularly known as fuel or petrol, the federal government has said.

    TheNewsGuru.com (TNG) reports Minister of State for Petroleum, Timipre Sylva made this known in a statement on Friday in Abuja, the nation’s capital.

    The statement reads: “Once again, it has become necessary to assure Nigerians that despite the huge burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.

    “The current price of petrol will be retained in the month of June until the ongoing engagement with organized labour is concluded.

    “This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.

    “In this regard, I would like to strongly urge petroleum products marketers not to engage in any activity that could jeopardize the seamless supply and distribution system in place.

    “I also urge members of the public to avoid panic buying because the Nigerian National Petroleum Corporation (NNPC) has enough stock of petroleum products to keep the nation wet”.

  • Financial crisis: How DPR rescued Nigeria in April – Sylva

    Financial crisis: How DPR rescued Nigeria in April – Sylva

    The Minister of State for Petroleum Resources, Timipre Sylva on Tuesday revealed that the Department of Petroleum Resources (DPR) rescued Nigeria from a financial crisis by remitting funds to the Federation Account Allocation Committee (FAAC) last month.

    He disclosed this in Abuja during an interactive session with newsmen.

    The Nigerian National Petroleum Corporation (NNPC) had reportedly, in a document attached to a letter addressed to the Accountant-General of the Federation dated April 26, indicated that it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.

    But Sylva explained on Tuesday that since the DPR collected royalties on behalf of the federal government, it was able to fill the vacuum left by the NNPC in contributing to the federation account.

    The minister, who did not mention the exact amount the DPR provided, said revenues from marginal field programmes were of use when the nation was in dire need of funds to share among the federating units.

    “I can’t say what the figure is, but the DPR has always contributed to the federation revenue because they collect royalties, so they’ll continue to contribute.

    “But as to filling the gap, it’ll not always be there because NNPC has not said after not being able to contribute in May, it’ll stop entirely. NNPC has not announced it again. So, we cannot say for how long DPR is going to keep paying,” he said.

    He said the government backtracked on petrol subsidy removal owing to the backlash from marketers when the commodity began to increase in price.

    “As far back as March 2020, we announced subsidy deregulation and we successfully practised it for a few months before some people came in and started threatening when the price was moving up. We had to come back because we’re in a democracy and a listening government, thus, decided to discuss with stakeholders.

    “That was why it looked as if we stepped back a bit, but the deregulation was already announced and a date was taken. We need that understanding. We’ve announced and have not retracted, right now, all we’re doing is to see how we can take all the stakeholders on board before we start practice again.

    “We can see the disadvantage of the continuous practice of subsidy as we’ve gotten to a point where NNPC does not have the money to contribute to FAAC.

    On whether the government was planning to sell the refineries as being insinuated, Sylva said: “We want to make the refineries functional before we can say this is the direction we want to take. We can’t say we want to sell a dead refinery. Can you sell a dead body?”

  • PIB passage will not go beyond June – Sylva

    PIB passage will not go beyond June – Sylva

    The Minister of State for Petroleum Resources Chief Timipre Sylva says that efforts to ensure passage of the Petroleum Industry Bill (PIB) before the National Assembly are still on course.

    Sylva made this known at an interactive session with newsmen in Abuja on Tuesday.

    “I want to tell you that PIB is fully on course and we are very happy because we have focused on that for a long time and we had many meetings with the National assembly and stakeholders.

    “Today, I believe that we are all basically satisfied with where we are.

    “The National Assembly has given a timeline, they actually gave April but a few things, but give or take, I still believe that the passage of the PIB will not go beyond June.

    “We are hopeful that between now and June, they will pass the PIB, I don’t think we are faraway with the passage of the PIB,’’ he said.

    Commenting on subsidy, he said that the common man is worse hit with subsidy, but usually the one that fights government anytime it is said it would be removed.

    He said subsidy had created opportunity for people to transport products to nearby countries to make more profit as the price is high in those places.

    “People are ready to take all kinds of risk to transfer products to places like Benin Republic. So when the prices are at par, it might help to reduce some of these risks,’’ he said.

    He noted that until Nigeria bridges the price differentials in the pump price of petrol, people would continue to take all risks to smuggle the product.

    “The price differential is a major incentive for smuggling that is why until we are able to bridge that gap, people will continue to do that.

    “ Because, it is very difficult for government to police all the border of Nigeria,’’ he said

    He said government had exhibited political will and commitment to announce deregulation for the downstream sector March 2020.

    He urged Nigerians to support government’s efforts to ensure full deregulation of the sector for economic growth and development.

    “The truth is that the common is not benefiting from the subsidy,’’ he said.

  • Why Buhari is in love with Ijaw people – Sylva

    Why Buhari is in love with Ijaw people – Sylva

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, says President Muhammadu Buhari has an exceptional love for the people of Ogbia, an Ijaw subgroup in Bayelsa State, because of their son, former President Goodluck Jonathan, who peacefully relinquished power to him in 2015.

    Sylva revealed this on Friday while inspecting the ongoing construction of the Nigerian Oil and Gas Park Scheme (NOGaPS) being constructed by the Nigeria Content Development and Monitoring Board (NCDMB) at Emeyal 1, Ogbia Local Government Area of the state.

    Sylva, who is a former Governor of Bayelsa State, said: “President Muhammadu Buhari specially loves Ogbia people and that I can tell you for free. Buhari loves the Ogbia people because Goodluck Jonathan, who was President of the Federal Republic of Nigeria, willingly allowed one of the most peaceful transitions in Nigeria.

    “So, you can see that one of the roads the President is building in Nigeria, Sukuk Road, is in Ogbia territory, leading to the community of Goodluck Jonathan.”

    Sylva commended Ogbia youths for being peaceful and urged them to keep the disposition, adding that they would achieve a lot for being peaceful.

    Describing the level and quality of job done so far at the NOGaPS site as satisfactory, the minister said when completed, the project would generate over 2,000 jobs.

    He noted that Buhari was aware that only creation of jobs could solve the problems of the oil-rich Niger Delta region.

    Speaking earlier, the Executive Secretary of the NCDMB, Simbi Wabote, said MegaStar Construction Company Nigeria Limited is responsible for infrastructure projects in the site while OK Sokariari and Sons is handling the road construction.

  • Timipre Sylva hosts Davido, says FG committed to youth empowerment

    Timipre Sylva hosts Davido, says FG committed to youth empowerment

    Chief Timipre Sylva, the Minister of State for Petroleum Resources, has restated the Federal Government’s commitment to youth empowerment.

    A statement by the Special Assistant on Media and Public Affairs to the minister, Mr Julius Bokoru, on Wednesday said Sylva gave the assurance when he received David Adeleke, also known as Davido.

    The minister and Adeleke, the award winning musician discussed art, politics, youth empowerment and harmonisation of the various age grades in the country.

    Sylva said: “your generation is a smart one but it must proffer solutions too. If we all blame ourselves then we are farther and farther from any real solution.

    “We must all harmonise, brainstorm and come up with creative ideas to improve life in our country.’’

    The minister assured the musician that the President Muhammadu Buhari-led administration “is on a fair and right trajectory in addressing concerns raised by the #EndSars protesters’’, in response to Davido’s concern.

    Earlier, Davido commended the minister for his signature gas initiative, especially the National Gas Expansion Programme (NGEP) and the Autogas schemes designed to lessen dependence on petrol.

    The musician observed that petrol was a costlier, heavier and less eco-friendly compared to gas.

    The minister and Adeleke also discussed the possibilities of building platforms for youth development and talent discovery.

  • FG reveals plans to also rehabilitate Warri, Kaduna refineries

    FG reveals plans to also rehabilitate Warri, Kaduna refineries

    The federal government is planning to also rehabilitate the Warri and Kaduna refineries following the approval of the Federal Executive Council to rehabilitate the Port Harcourt Refinery.

    TheNewsGuru.com (TNG) reports Timipre Sylva, Minister of State for Petroleum Resources made this known on Tuesday after the First Quarter 2021 Ministerial Governance Meeting in Lagos State.

    “Last week Wednesday, FEC approved a comprehensive rehabilitation of the Port Harcourt Refinery.

    “It was approved for the sum of $1.5 billion and we are going to also start the rehabilitation of Warri and Kaduna refineries shortly,” Sylva said.

    The Minister, however, did not provide details on the proposed rehabilitation of the Warri and Kaduna refineries.

    However, he went further to say almost 50 per cent of companies who won the bid for Nigeria’s 57 marginal oilfields have paid their signature bonuses.

    He revealed that the FG is targeting about $500 million in signature bonuses from the successful companies in the bid rounds which began on June 1, 2020

    Sylva said: “The process has been concluded. Letters have gone out and people have started paying their signature bonuses.

    “We have received almost 50 per cent of the signature bonuses already. 161 companies were allocated marginal fields.

    “I think this is the best we could have gotten. If you followed the process, you will see that we published it and people applied, the companies were pre-qualified and assessment of their bids were done by competent persons.

    “That was how the bidders emerged. It was a very transparent process”.

    Sylva reiterated that the government had not increased the price of Premium Motor Spirit, warning that marketers selling above the approved price band would be sanctioned by the regulatory agency.

    Sylva sets priority targets for Pet. Ministry in 2021

    Declaring open the First Quarter 2021 Ministerial Governance Meeting, Sylva listed three priority areas for the ministry and its agencies in 2021.

    Sylva said the areas were passage and implementation of the Petroleum Industry Bill (PIB), increase in crude oil production and increase in domestic refining capacity.

    He said that the ministry was given nine priority targets by the government, noting that six of the targets had already been achieved through collaborative efforts of the ministry and its agencies.

    Sylva said: “It Is my expectation that appreciable progress in the other areas would be made this year.

    “For emphasis, these areas include: the Passage and implementation of the PIB, increase in crude oil production to three million barrels per day and increase in local refining capacity.

    “In the last 20 years, PIB has remained the most debated issue in the Nigerian Oil and Gas Industry.

    ”Following the renewed cooperation within the Ministry and its sister agencies backed by President Muhammadu Buhari, the PIB is now before the National Assembly.”

    According to him, when passed into law, it will guarantee a robust upstream fiscal framework beneficial to both government and investors.

    He said that it would also unlock several midstream and downstream infrastructure opportunities to further enhance domestic oil and gas and their derivatives’ utilisation.

    “With respect to the crude oil production, I am confident to announce that Nigeria currently has the capacity to deliver three million barrels per day.

    “However, our commitments to OPEC+ cut has obligated us to shut in several producing wells as well as further activities to bring additional production on stream.

    “This is now paying off in the area of higher global oil prices leading to higher government revenue locally,” Sylva said.

    He said that the Federal Executive Council’s approval for the rehabilitation of the Port Harcourt Refinery at the sum of $1.5 billion would be followed shortly by the rehabilitation of the Warri and Kaduna refineries.

    Sylva said the ministry would continue to support other private I nitiatives at increasing local refining capacity.

    He said the ministry’s achievements in 2020 despite the COVID-19 pandemic include the Roll-out of the Auto Gas Initiative, establishment of the National Gas Expansion Programme and the Flag off of the National Gas Transportation Network Code.

    The minister cited others as the completion of the Marginal Oilfield Bid Round, commencement of the construction of the Ajaokuta-Kaduna- Kano (AKK) gas pipeline and the successful review of Sector Wide Domestic Gas Pricing.

  • $1.5bn P/H refinery rehabilitation: Hold me accountable for every cent spent, Timipre Sylva tells Nigerians

    $1.5bn P/H refinery rehabilitation: Hold me accountable for every cent spent, Timipre Sylva tells Nigerians

    The Minister of State for Petroleum Resources, Timipre Sylva, has promised to ensure that every cent of the $1.5 billion proposed for the rehabilitation of the Port Harcourt refinery is accounted for.

    The minister asked Nigerians to hold him responsible in the event of anything otherwise.

    “I can look at the camera; they (Nigerians) can hold me accountable and hold this government accountable for every dollar, every cent on this project and ensure that we deliver a refinery that works,” the minister said.

    TheNewsGuru.com, TNG reports that the decision of the Federal Government to rehabilitate the refinery in Rivers State with the sum has triggered debates in the country.

    While the government’s critics accused it of corruption, others were concerned that adding such an amount of money to the country’s debt burden would be dangerous.

    Sylva, however, stated that there was no cause for alarm as the government does not intend to borrow all the funds to rehabilitate the refinery.

    He noted that a subsidiary of the Nigerian National Petroleum Corporation (NNPC) – Nigerian Petroleum Development Company Ltd (NPDC) – and others would contribute the money to be used for the project.

    According to the minister, part of the money will come from NNPC’s internally generated revenue and the Federal appropriation, while a little fraction will come from the African Export-Import Bank (Afreximbank).

    He also explained how the repayment plan was designed, saying the operations of the refinery would pay back the funds to be used.

    “The NNPC is going to spend about $200 million from its internally generating revenue sources, while the Federal appropriation will put in about $800 million and it is already broken down into three parts,” he disclosed.

    Sylva added, “The 2020 appropriation will give $350 million, 2021 appropriation will give another $350 million, and 2022 appropriation will give another $100 million, making it all $800 million from appropriation, and then the rest of it will now come from Afreximbank.”