13 years after, NNPC gets $100m reprieve from UK supreme court.

The Supreme Court of the United Kingdom in a unanimous judgment, granted a reprieve to Nigerian National Petroleum Corporation (NNPC) over a $100 million bank guarantee in a case involving the Corporation and a service company, IPCO (Nigeria) Limited.

The reprieve was the latest in the protracted dispute arising from the contract between NNPC and IPCO for the construction of the Bonny Export Terminal (BET) Project in Port Harcourt, Nigeria — which had been on for about 13 years.

According to a statement signed by Ndu Ughamadu, group general manager, NNPC public affairs division, IPCO had referred its claims to arbitration in Nigeria and obtained an Arbitral Award of US$154 million in 2004, with annual interest running at 14 percent.

Maikanti Baru, NNPC GMD, said he was delighted on the new development, commending the efforts of the legal team that secured judgment in favour of the Corporation.

Baru said no stone would be left unturned to extricate NNPC from encumbrances that may impede the corporation’s access to hard earned funds which are much needed to execute developmental projects by the various tiers of government in the country.

“The development is a significant decision in the history of the case as the English Supreme Court has not only discharged NNPC from the responsibility to sustain the additional security of US$100million in favour of IPCO but it also further reiterated the finding of the English Commercial Court and the Court of Appeal that NNPC has a good prima facie case that IPCO procured the Arbitral Award by fraud,” NNPC said.

“Additionally, the decision of the Supreme Court has clarified conclusively the limits of an enforcing Court’s power to order security as a condition on the right to have a decision of a properly arguable challenge under the New York Convention 1958 and the English Arbitration Act 1996.”

Since 2004, IPCO has repeatedly sought to enforce the award in England prior to the conclusion of NNPC’s challenge of the Arbitral Award in Nigeria.

“It would be recalled that in 2008, during one of IPCO’s attempts to secure an order for the enforcement of the Award in the UK, NNPC discovered evidence that IPCO had forged documents relating to the claims and the related arbitration in Nigeria, and as a result, the parties agreed in 2009 to adjourn the enforcement proceedings in England, in order to await the determination of the fraud allegations in Nigeria.

“In 2012, IPCO again applied to the English Commercial Court to enforce the award despite the agreement on the adjournment of the enforcement action. IPCO’s application was however, dismissed on March 14, 2014, holding inter alia that NNPC had made out a good prima facie case of fraud giving NNPC a realistic prospect of proving that the whole award should be set aside. IPCO however appealed to the UK Court of Appeal.

“In 2015, the UK Court of Appeal decided that the delays in the Nigerian proceedings required the English Court to lift the adjournment and to decide whether to allow enforcement following a trial of the fraud allegations in the English Court.”

Both the commercial court and, the court of appeal concluded that the fraud allegations against IPCO were made bona fide, that NNPC has a good prima facie case that IPCO practised a fraud on the Arbitral Tribunal, and that NNPC has a realistic prospect on that basis of proving that the whole award should be set aside.

However, the UK Court of Appeal ordered NNPC to provide an additional security of US$100 million (NNPC having previously provided security of US$80million) as a condition of being entitled to advance a defence that enforcement should be refused because the award had been procured by IPCO’s fraud.

Subsequently, NNPC appealed to the UK Supreme Court to decide whether the English court, as an enforcing court, is empowered to require security for money payable under the award (or any part thereof) from a party resisting enforcement of such award as a condition for being entitled to advance a good and arguable defence that enforcement would be contrary to English public policy because the award was procured by fraud.

On March 1, 2017, the UK supreme court unanimously set aside the Court of Appeal’s Order, allowing NNPC to advance its defence in the English Commercial Court free of any such conditions.

NNPC was represented by the UK law firm of Stephenson Harwood LLP, and Nigerian law firms of “Babalakin & Co.” and “Abdullahi Ibrahim & Co.”.


Source: The Cable

NNPC resolves union, tanker drivers crisis.

The National Union of Petroleum and Natural Gas Workers, NUPENG, has suspended its nationwide strike which began on April 2.

The suspension followed the intervention of the Group Managing Director of the Nigerian National Petroleum Corporation( NNPC), Dr Maikanti Baru.

In a statement by Mr Ndu Ughamadu, NNPC group General Manager, Group Public Affairs Division on Monday in Abuja, Baru said his intervention was in the national interest.

Baru further approved the increase in bridging costs from N6.20 to N7.20.

Bridging is money paid tanker drivers per kilometer for trucking petroleum products from depots to final destinations.

‘Mediating between the Nigerian Association of Road Transport Owners, NARTO, and the Petroleum Tanker Drivers (PTD), Baru said ”we understand the difficulty of NARTO to go into negotiations which has to do with the level of bridging allowance.

”I am happy to announce that the Honourable Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has given his approval to increase the bridging allowance from N6.20 to N7.20”, Baru said in the statement.

He said the review should give NARTO the breathing space to engage with PTD to immediately discuss and resolve as many of the issues as possible, adding that the gesture was expected to normalise relations between the unions.

Baru explained that NNPC intervened in the face-off between the unions to ensure the energy security of the nation, adding that ordinarily the dispute was only between PTD and its employer, NARTO.

Announcing the suspension of the strike, the NUPENG National President, Mr Igwe Achese, said with the intervention of Kachikwu and Baru, NNPC ”has done so much to ensure efficient supply and distribution of petroleum products across the country, hence, the strike is hereby suspended”.

Responding, the National President of PTD, Mr Salimon Oladiti, applauded the NNPC for the ”timely intervention and urged them to address the unruly behavior of security agencies towards the members”.

Also, the National President of NARTO, Alhaji Kassim Bataiya, assured Baru that ”with his intervention, the condition of service document would be reviewed to improve the drivers’ welfare”.

Joseph Akinlaja, Chairman of House of Representatives Committee on Downstream, who represented Speaker Yakubu Dogara, commended Baru for his intervention, saying it had saved the country a lot.

The drivers downed tools due to unresolved issues concerning their welfare, poor remuneration, insecurity and bad roads. They also complained of harassment by some members of the security forces on the highways.


Source: Pulse

NNPC to meet with union leaders over tanker drivers’ strike.

The leadership of the state oil firm, NNPC, has scheduled a meeting with striking tanker drivers whose strike is already affecting the distribution of petroleum products across Nigeria.

The Petroleum Tankers Drivers, PTD, section of the Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, commenced the strike on Monday.

The spokesperson of the NNPC, Ndu Ughamadu, told PREMIUM TIMES that the Group Managing Director of the NNPC, Maikanti Baru, has scheduled a meeting with leaders of the oil workers for Monday afternoon.

Mr. Ughamadu said representatives of the National Association of Transport Owners, NARTO, the employers of the drivers, would also be attending the meeting scheduled for the NNPC Towers in Abuja.

The tanker drivers had said at the end of their Central Working Committee, CWC, meeting in Lagos on Friday that their demands included a reminder to the federal government on some unresolved issues bordering on their welfare.

The NUPENG President, Igwe Achese, had said the welfare issues included the perennial problem of bad roads, poor salaries and other conditions of service, insecurity and alleged high-handedness of some security operatives against their members.

But, Mr. Ughamadu said the NNPC management was uncomfortable with some underlining issues about the strike, which appeared beyond what the tanker drivers have given as reasons for their latest action.

Although Mr. Ughamadu refused to expatiate on these underlining issues, another senior official of the national oil company said they may not be unconnected with an attempt by some union leaders to politicise the NNPC management’s recent decision to recover huge debts from some products marketers.

The official, who requested that his name should not be revealed, as he does not have the permission to speak, said it appeared some oil workers were sympathetic to the travails of the chairman of Capital Oil & Gas Limited, Ifeanyi Ubah.

The official said the oil workers, particularly in the south-west zone, were pushing for the current strike to arm-twist the NNPC to abandon its resolve to recover its debt from some oil marketers.

“It is clear that the tanker drivers’ union has been infiltrated by members sympathetic to Mr. Ubah, particularly in the South-West led by the Zonal Chairman of NUPENG, Tokunbo Korodo.

“But, we should guard against politicising the issue. We should try to divorce genuine issues affecting the welfare of members from those affecting NNPC’s legal effort to recover its debt,” the official said.

Recently, the NNPC petitioned the State Security Service, SSS, and the Economic and Financial Crimes Commission, EFCC, as well as the committee in charge of the downstream oil industry in the National Assembly to facilitate the recovery of the ‘missing’ 130 million litres of premium motor spirit, PMS, popularly called petrol.

The missing product, valued at about N11 billion, was owned by the NNPC Retail, a downstream subsidiary of the NNPC, but stored in the products depots belonging to Capital Oil & Gas and MRS Petroleum as part of the NNPC national strategic reserve.

The products stored in the companies’ private facilities under a throughput arrangement was used in controversial circumstances without proper authorisation from the NNPC.

In the past one week, Mr. Ubah has been reporting to the SSS headquarters in Abuja twice daily to hold discussions expected to culminate in an agreement on a debt repayment schedule.

So far, sources close to the security agency told PREMIUM TIMES, Mr. Ubah was unable to come up with an acceptable schedule on when he would repay the debt, blaming the NNPC for refusing to consider several written requests for full reconciliation of accounts for debts owed his company over the last two years.


Source: Premium Times

NNPC reduces gas flaring by 26 per cent in ten years

The Nigerian National Petroleum Corporation, NNPC, says it has succeeded in reducing gas flaring in the country by 26 per cent in the last ten years.

The corporation said the reduction, which has pushed Nigeria down from the second highest gas flaring nation to the seventh position, was from 36 per cent in 2006 to 10 per cent in 2016.

Explaining the gas flare reduction trend recently in Abuja, NNPC Chief Operating Officer, COO, Upstream, Bello Rabiu, noted that as at 2006 Nigeria was flaring 2.5 billion standard cubic feet (scf) of gas, while consuming only 300mscf of gas per day.

According to a statement released on Sunday by NNPC spokesperson, Ndu Ughamadu, Mr. Rabiu said the drastic reduction in gas flaring was achieved through aggressive gas commercialisation anchored on the Gas Master Plan. He also noted that as part of efforts to preserve the environment, technology had helped the industry to record a drastic reduction in gas flaring.

“The Gas Master Plan was geared towards addressing four key critical issues of gas availability, infrastructure, commercialisation framework and gas affordability,” Mr. Rabiu said.

He further explained that though the implementation of the plan was driven by NNPC, it was sponsored by all the oil and gas companies operating in the country and that it has helped in addressing some of the issues that were confronting the gas sector.

The COO also stated that in order to ensure gas affordability, the plan stipulates a lower price for gas to the power sector which is the most important segment while other sectors of industries and manufacturing get gas at a commercial rate.

This measure, according to him, was to ensure that gas producers get value for the gas they produce for sale.

On other actions by the federal government to end gas flaring in the country, Mr. Rabiu said government had designed a National Gas Policy which seeks, among other things, to end gas flaring by 2020.

He explained that the National Gas Policy had been circulated to all operators to guide them on the direction of the Federal Government with regard to how it wants the nation’s abundant gas resources deployed.

The statement also quoted Mr. Rabiu as saying that the federal government has provided a guarantee of payment to gas suppliers through the Central Bank of Nigeria, CBN, and the World Bank three weeks ago as part of incentives to get the oil and gas companies to commercialise more of their gas.

“This is a very important step that the NNPC has been working on since 2008”, he said.


Source: Premium Times

Illegal Niger Delta refineries to produce 1,000 barrels of oil daily — NNPC

The group managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has thrown some light on the modular refineries the Federal Government is planning for the Niger Delta.

Mr. Maikanti, at the 53rd International Conference and Exhibition of the Nigerian Mining and Geosciences Society (NMGS) in Abuja, said the government would organise the youth now engaged in illegal refining of crude into consortia.

Each consortium will refine 1000 barrels of crude daily.

Mr. Baru also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region.

He argued that getting the youth to form consortia to set up 1000 barrels per day modular refineries would get them off criminality and create jobs.

He said the reform programme being executed by the NNPC is geared towards transforming it from an oil and gas company into an integrated energy outfit with interest in power generation and transmission.

In a paper entitled, “Challenges and Prospects for the Diversification of the Upstream, Downstream and Frontier Basin Exploration in the Oil and Gas Sector”, Mr. Baru said NNPC had identified opportunities in the power sector and was ready to take advantage of them to transform from being a gas supplier to the power sector, into a major player, in the sector.

He said the Corporation was already working on a project to generate four Megawatts (4000MW) of electricity while also exploring the possibility of investing in the transmission segment of the power sector.

The GMD explained that the Corporation’s decision to diversify into the power sector was hinged on the need to bridge the huge energy gap in the Nigerian market.

He said contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was inadequate transmission capacity, adding that there was enough gas to generate eight gigawatts (8GW) of electricity but the transmission grid could not support such volume of power without complications.

In the upstream, he said his goal was to accelerate frontier exploration and grow crude oil reserve to 40 billion barrels from the current 37 billion.

He also challenged the geoscientists on the need to deploy more sophisticated technology and drill deeper than the current 13,000 to 15,000 feet in the Niger Delta to produce more oil.

“We have to look deeper with intensive 3D and 4D seismic surveys over the so-called matured Niger Delta. The older, the better,” he declared.


Source: Premium Times

Oil firm returns N62 billion to NNPC after controversial crude swap deal under Jonathan

The Nigerian National Petroleum Corporation, NNPC, said on Monday it had reached a final settlement with AITEO Group over an outstanding $202.4 million (about N62 billion) debt in respect of under-delivery of petroleum products under the crude swap contract between 2012 and 2014.

Under the crude swap deal by the NNPC during the Goodluck Jonathan administration, the NNPC allocated crude oil to trading companies in exchange for processed petroleum products. That deal was criticised by several analysts who argued that the oil firms were, in collusion with top public officials, cheating the Nigerian government. The government had said it embarked on the deal because, among others, the local refineries were not working optimally and so as to reduce cash payment for imported petrol.

On Monday, the NNPC spokesperson, Ndu Ughamadu said following extensive reconciliation of records between their business transactions and subsequent agreement, AITEO Group paid in full all its outstanding indebtedness to all NNPC downstream entities totalling about $202.35 million.

Mr. Ughamadu said the amount included AITEO’s share of the total $184 million indebtedness by three companies on crude swap obligations, which included Televeras Group of Companies and Ontario Oil Gas Ltd.

Although Televeras Group, at the end of negotiations with the NNPC, agreed pay an initial $17.2 million and $10 million subsequently, there was no earlier information on the offer by AITEO, which also agreed to settle its debt.

The NNPC spokesperson said on Monday that AITEO’s agreement to settle the $202.4 million debt following its engagement with the NNPC on the issue was a demonstration of its cooperation and commitment towards a successful recovery process.

AITEO Energy owned by Benedict Peter and Francis Peter was one of the seven major Nigerian fuel importers identified by the Swiss non-governmental advocacy organization, the Berne Declaration, as the worst culprits in schemes employed by Nigerian and foreign fuel importers to swindle the country.

The Lagos-based AITEO Energy, which is a subsidiary of Geneva-based Aiteo Suisse AG, was asked by the then Technical Committee on Payment of Fuel Subsidy to reimburse the Nigerian government over N578 million in subsidy fund it falsely collected.

The company was one of the three oil marketing firms whose offshore processing agreements were terminated on August 26, 2015 after the contract was found to have been ridden with corruption.

Mr. Ughamadu said as part of the debt recovery process, negotiations were still ongoing with the management of Ontario Oil & Gas Limited to make a formal commitment to settle all its outstanding debts under a crude oil swap contract that existed between 2012 and 2014.

Although Mr. Ughamadu told PREMIUM TIMES, Saturday, that the company, which was convicted recently for subsidy fraud, had offered its tank farm at Oghara in Delta state in lieu of the debt, he said the amount arrived at after the valuation of the facility was said to be far below an acceptable figure.

The NNPC spokesperson said the Group Managing Director of the Corporation, Maikanti Baru, has vowed to ensure that the ongoing recovery process was completed and all debts settled.

“The Management of the Corporation under the leadership of Dr. Maikanti Baru is committed to ensuring transparency and adequate public information on the ongoing recovery effort. The Corporation shall continue to provide further update on the recovery process,” he said.


Source: Premium Times

Nigeria, Morroco fertilizer deal creates 50,000 jobs — NNPC boss

The signing of a Memorandum of Understanding (MoU) on the supply of phosphate between Nigerian and Morocco has created about 50, 000 jobs, Nigeria National Petroleum Corporation, NNPC, has said.

A statement by NNPC spokesperson, Ndu Ughumadu, said the Group Managing Director of the corporation, Maikanti Baru, made this disclosure in Abuja.

Mr. Baru disclosed this recently while receiving the National coordinator of The New Partnership for African Development (NEPAD-Nigeria), Gloria Akobundu, at the NNPC Towers in Abuja.

The NNPC boss, who noted that the MoU between the two countries was for the supply of phosphate to rejuvenate agriculture by making fertilizer available and affordable, said the deal had started yielding positive results in the country.

“The Moroccans have already supplied a cargo of phosphate which has been delivered to various blending plants across the country,” the GMD said.

“Already, eleven blending plants have come into production because of the supply.

“I am happy to inform you that this development has translated to the creation of about 50, 000 jobs and led to the production of about 1.3million tonnes of fertiliser in the country.”

According to the statement, the Moroccans have also given Nigeria a generous credit term of 90 days and they are planning to bring in more cargoes that will fit the various blending plants in the country, following the arrival of the first consignment.

According to the GMD, aside being a huge boost to the Nigerian agricultural sector and the economy, this partnership is expected to boost bilateral relationship between the two countries.


Source: Premium Times

NNPC staff bus stolen while driver slept over at lover’s house.

A driver of a bus conveying Nigeria National Petroleum Corporation workers has run into trouble after he woke up at his lover’s house on Assfood Street, Oriola, Alapere, Lagos and discovered that the staff bus, a N23m Toyota Hiace, had been stolen.

The police arrested the driver, Wasiu Aliyu, in connection with the theft on the ground that he parked the bus at an unsafe spot.

Aliyu, a casual worker, was arraigned on Monday on two counts of stealing in an Ikeja Magistrate’s Court.

PUNCH Metro gathered that a neighbour of the girlfriend had alerted the father of two children, around 4am that he saw some strange faces inside the bus. As Aliyu rushed out to know what was happening, the thieves reportedly zoomed off.

The 36-year-old indigene of Ilorin, Kwara State, was said to have reported the alleged theft at the Alapere Police Station and informed a manager of Doset Civil Engineering, which owned the vehicle.

Aliyu told the police that he had been driving the bus for over three years, stating that he had no hand in the stealing.

He said, “I was employed by the Nigeria National Petroleum Corporation as a casual worker sometime in 2014. At about 8pm on January 21, I went to my girlfriend’s house in Oriola to pass the night. A man came to wake me up around 4am that he saw some boys inside the bus.

“Before I got to where the bus was, they had left with it. It was a mistake that I parked the bus on the street because there is no security there.”

The manager, Osele Philips, in his statement, stated that a specific and safe garage was provided for the driver to park the vehicle, saying the company suspected a foul play.

He said, “The 18-seater vehicle is owned by the firm, but used as the NNPC staff bus. On January 22, our driver attached to the staff bus called me at 7am and told me the staff bus had been stolen where he parked it to greet his sister after washing it.

“It was when I got to the police station that I knew the bus was stolen on January 22 at 4am and not January 21 as he earlier told me. The bus was stolen where he was not supposed to park it. With his action and the circumstances surrounding the theft of the vehicle, he is a prime suspect. The value of the vehicle is N23m.”

A police prosecutor, Inspector Benedict Aigbokhan, who brought Aliyu before the court, said he had allegedly committed an offence, which contravenes sections 285 (1) and 409 of the Criminal Law of Lagos State, 2011.

The charge read in part, “That you, Wasiu Aliyu, and others at large, on January 22, 2017, at about 04.45am on Assfood Street, Oriola, Alapere, Lagos, in the Lagos Magisterial District, did steal one Toyota Hiace bus with number plate, KSF 61 DD, valued at N23m, property of Doset Civil Engineering Limited, thereby committing an offence punishable under Section 285 (1) and 409 of the Criminal Law of Lagos State, 2011.”

He, however, pleaded not guilty and elected summary trial.

The presiding magistrate, Mrs. O.A. Akokhia, admitted him to bail in the sum of N1m with two sureties in like sum while the case was adjourned till April 18, 2017 for mention.


Source: PUNCH

BREAKING: Court grants ex-NNPC chief Andrew Yakubu bail

A Federal High Court in Abuja on Tuesday granted bail to Andrew Yakubu, a former head of Nigeria’s state oil firm, NNPC.

Mr. Yakubu was arrested by the anti-graft EFCC after about $9.8 million cash was found in his house in Kaduna.

The court granted Mr. Yakubu a N300 million bail while he was also asked to produce two suretees.

Details later…

NNPC Set To Generate 4000 MW Of Electricity

The Nigerian National Petroleum Corporation, NNPC will generate about 4, 000 megawatts of power in the next ten years to boost the supply in the country.

This was disclosed by the Corporation’s Chief Operating Officer (COO), Gas and Power, Engr. Saidu Mohammed, at the 2017 retreat of his Autonomous Business Unit, ABU (Gas and Power), in Kaduna, saying this would be achieved through building independent power plants.

Explaining the concept in Abuja, Engr. Mohammed said the power plants would be built in the next three to ten years by Incorporated Joint Venture Companies that would involve NNPC, International Power Companies and other Nigerian Investors to be structured after the Nigerian Liquefied Natural Gas (NLNG) business model.

“Power generation is a big business. As at today, NNPC has interest in two power plants, one in Okpai, Delta State and the other in Afam, Rivers State, which were respectively built by our Joint Ventures with Nigerian Agip Oil Company (NAOC), and Shell Petroleum Development Company (SPDC). These two power plants collectively generate up to 1,000 megawatts and they are the most reliable and cheapest source of power to the national grid in Nigeria today,” Engr. Mohammed affirmed.

He said plans were underway to commence Okpai Phase 2 Power Plant and that other JV power plants like Obite & Agura would also be progressed soon to boost power generation in the country.
The NNPC COO noted that the new thinking involved the extension of the Corporation’s major gas pipeline infrastructure into a robust network to connect various parts of the country, adding that implementation of the Ajaokuta to Abuja-Kaduna-Kano (AKK) extension has progressed.

“The main base-loads to justify such infrastructure are power plants that would consume the gas and for that, we are planning to build about 2,000 to 3,100 megawatts, combined, in these three cities.
“The partnership will involve players who will bring in their various capacities as operators, builders of power plants and as investors. NNPC will also bring its strength of being a dominant player in the Nigerian gas value chain,” Engr. Mohammed revealed.

He stated that NNPC as a stakeholder in the gas value chain had developed capabilities in processing, transportation and marketing of gas for export and domestic utilization.

He further added that the nation’s gas resources had the potential of changing the landscape of the Nigerian economy for the better.
“If you generate enough power, the multiplier effect will revive most of the moribund industries across the country. NNPC intends to capture 50 per cent of the gas market in Nigeria by growing the Nigerian Gas Marketing Company (NGMC) from the 500 million standard cubic feet/day of gas that it is today to about 3 to 4 billion standard cubic feet/day in the next 10 years,” the COO enthused.

He said NNPC required about $15 billion investment to realize the Gas and Power Autonomous Business Unit, ABU, aspirations and that discussions were already ongoing with Investors world-wide to address gas deficit by building on the already existing gas infrastructure.

Engr. Mohammed noted that in line with the Gas Master Plan, NNPC would be producing gas with its JV partners and with other interested Nigerian investors to build treatment plants to achieve the deadline.

“We are going to unbundle the upstream by delineating the midstream so as to allow other players operate in it while NNPC as the operator of the pipeline network will continue to deliver gas to the downstream sector and ultimate consumers,” he stated.

Court sends ex-NNPC boss, Andrew Yakubu to Kuje Prison

The Federal High Court sitting in Abuja has ordered that Ex-NNPC boss, Andrew Yakubu, be remanded in Kuje prison pending the determination of his bail application on March 21.

Yakubu was, on Thursday, arraigned on a six-count charge of fraud before Justice Ahmed Mohammed by the Economic and Financial Crimes Commission (EFCC) after he admitted owning over $9.8 million cash found in a house that also belongs to him in Kaduna State.

He pleaded not guilty to the charge filed by the EFCC.

The defendant had through his lawyer, Mr. Ahmed Raji, SAN, begged the court to rather remand him in EFCC custody pending the ruling, a result that was turned down by Justice Mohammed.

It will be recalled that following a tip-off from a whistle-blower, the EFCC, raided Yakubu’s guest house situated at Sabon Tasha, Kaduna State, where it recovered the alleged loot which was in foreign currencies.

The anti-agency said it discovered the sum of $9.7million and £74,000 that Yakubu hid in a fireproof safe inside the house. The defendant earlier asked the high court to order the commission to return the seized money to him, insisting it was part of monetary gifts he received on various occasions.

EFCC slams 6-count charge against former NNPC boss, Yakubu

The Economic and Financial Crimes Commission (EFCC) on Friday slammed a six-count charge on a former Group Managing Director of the NNPC, Mr Andrew Yakubu.

The charge was contained in court papers filed on March 9 at the Federal High Court Abuja.

According to the charge sheet, made available to the News Agency of Nigeria (NAN), Yakubu was accused of failing to make full disclosure in his Assests Declaration form of the sums of 9,772 800 dollars and 74,000 pounds contrary to Srction 27 (3)(a) of the EFCC act 2004.

He was also accused of receiving a cash payment of the said sums without going through a financial institution thereby committing an offence under the Money Laundering Prohibition Act 2011.

The former NNPC boss was further charged with receiving the same amount when he fully knew that the said fund formed part of proceed of unlawful activity.

This, according to the charge sheet, run counter to Section 7 (4) of the Advance Fee Fraud and Other Related Offences Act 2006.

The EFCC had in February found about $9.8m and 74,000 pounds kept in a run down bungalow in Sabon Tasha a suburb of Kaduna, which it said was concealed by Yakubu.

A court in Kano later ordered the forfeiture of the money to the federal government following a motion filed by the anti-graft agency.

However, the former NNPC boss has filed a case in another court in Kano seeking the vacation of the earlier court’s order.

He claimed that the money was proceeds of various gifts given to him while he was working with the NNPC


Source: The Guardian

Senate to probe alleged N10 Trillion fraud in oil industry

The Senate declared yesterday that it had uncovered some fraudulent practices in the petroleum industry through which the nation lost N10 trillion between 2006 and 2016.

Consequently, the leadership of the upper chamber has instructed the Joint Committee on Petroleum (upstream and downstream) and Gas to investigate the alleged fraud.

For a nation in recession and planning to borrow to finance its expenditure in 2017, there is the need to urgently stop such fraudulent practices that have robbed it of a huge sum said to be enough to finance the country’s budget for two consecutive years. If the allegation is true and the money or a part of it is recovered, government will have more money to execute its projects and programmes for the development of the country.

The joint committee, which addressed a press conference on the matter yesterday said it had scheduled a three-day investigative hearing which would focus on the activities of the petroleum sector during the administrations of Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and Muhammadu Buhari.

The panel alleged that out of the N10trillion fraud, some N5.2 trillion was lost through the Nigerian National Petroleum Corporation (NNPC) alone, which would be summoned to account for the loss.

The committee said that the N5.2 trillion represented the amount the NNPC collected as subsidy from the Federal Government for the importation of petroleum products, particularly Premium Motor Spirit (PMS) otherwise known as petrol or fuel between 2006 and 2016, aside from the 445,000 barrels of crude oil allocated to it on a yearly basis for the nation’s refineries for local consumption.

The Chairman of the Committee on Petroleum (Downstream), Kabiru Marafa, said that available records before the panel glaringly showed that during the period under investigation, NNPC imported fuel into the country that was more than 40% of our local consumption, apart from gross under-utilisation of the 445, 000 barrels it collected for local refining for local consumption on a yearly basis due to very low capacities of the four refineries in the country then.

But in a text message response to The Guardian’s enquiry yesterday, NNPC spokesman, Ndu Ughamadu, said: “We are yet to receive the alleged issues raised. If communicated to the NNPC by the esteemed committee, we shall respond accordingly. However, NNPC particularly under the present management, remains highly transparent in its activities.”

Marafa disclosed further that the committee also discovered another dimension of fraud in the industry through the disappearance of PMS from storages leased by NNPC without any accountability and or return of the value of the stolen product. According to him,100million litres of PMS worth N14billion were stolen by two different companies without any sanction against them yet from the NNPC.

“This committee has established the missing of 100million litres of PMS from such storage arrangement. We expected NNPC to have taken action against the two companies that carried out the theft but since it has not, we hereby ordered it to do so immediately, precisely within this week, failure of which we shall make the whole details known to the public,” the lawmaker threatened.

According to him, all key players in the sector, along with their collaborators who have taken the country for a ride during the period under review, must be brought to book through the investigation to be conducted soon because President Muhammadu Buhari and the Senate leadership are very much interested in unmasking those behind the scam perpetrated during the Obasanjo, Yar’Adua, Jonathan and by extension, the Buhari administrations.

“President Buhari is highly supportive of this move by the Senate and we shall not fail in carrying out the needed holistic investigation into obvious sharp practices in the sector. Needed documents for the onerous task are already in our possession,” Marafa added.

Already listed to appear before the committee during the planned public investigative hearing that will last for about three days are past and present chief executives of NNPC, their counterpart in the independent marketers association, licence inspection agency, Nigeria Ports Authority (NPA), Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS), among others.

The committee said specific areas of investigation would include commercial activities of the corporation, purchases, supplies, distribution and payments from 2006 till date.

The joint committee also said it would probe the N3.8trillion collected by independent product marketers and $1.5billiion being owed the independent marketers by government.

“We expect full cooperation by all stakeholders and all past and present industry players over the period in question. In the absence of cooperation or where our investigations show infractions, abuse of contract, abuse of position, or collusion that serves to cheat Nigeria, we will recommend the harshest of penalties which will include but not limited to blacklisting of companies and or individuals from ever doing business with Nigeria and or NNPC,” the lawmakers added.

Marafa said that the hearing would not be targeted at any administration. On his part, chairman, Senate Committee on Petroleum (Upstream)
Tayo Alasoadura, noted: “People will come and account for the reason we were importing fuel into this country that was more than 40 per cent of our needs. As soon as fuel was half-deregulated, our consumption in this country came down by about 40 per cent. Who were the people benefiting from this?

“We have a blank cheque to probe into all these matters and we are going to do it and ensure that people who have taken this country for a ride are brought to book.”


Source: The Guardian

The Cable: How NLNG resisted pressure to release $2.1bn ‘for 2015 elections’.

Some “very senior officials” of the  Goodluck Jonathan administration mounted intense pressure on the Nigeria Liquefied Natural Gas (NLNG) Limited to pay dividends and its 2014 company income tax and to government coffers just before the 2015 general election, TheCable has learnt.

But the then managing director of NLNG, Babs Omotowa, vehemently resisted the pressure and still believes he would have been sacked if Jonathan had been re-elected.

The payments were later made after President Muhammadu Buhari assumed office and shared as “bailout funds” to the three tiers of government to clear salary arrears.

The pressure to pay the dividends and the tax started in January 2015 — about one month to the initial February 14 date for the presidential election — and was intensified till April just before the elections eventually held.

Subsequent revelations have shown how the office of the national security adviser requested for and got $2.1 billion from the Nigerian National Petroleum Corporation (NNPC) around the same time.

A substantial chunk of the payments has now been traced to the financing of the elections.

Omotowa, now vice president of Shell Upstream at The Hague, told the story of the pressure he came under in an interview for a book on the history of the NLNG currently in the works.


“My response when I was first asked in January 2015 was clear: we could not be in a position to (pay) and I was thus subsequently invited to Abuja on a number of occasions to meet with key officials in an effort to persuade me to pay the money,” Omotowa told his interviewers.

“I maintained same position through those discussions based on two perspectives: One, we could not make any payments from accounts that had not been audited by external auditors and approved by the board. Two, by legislation, we had till June, so why the pressure.

“This position was not viewed positively by the government officials. So, it was escalated and higher level government officials (ministerial) subsequently spoke with me on it. I explained and reaffirmed that we were not in a position to pay earlier than June, for those same two perspectives.

“These conversations continued through February and the elections got postponed, subsequent to which the request intensified. By April, just before the postponed elections were to hold, we held our board meeting where the board approved the audited accounts.”

The NNPC holds 49% of NLNG’s shares on behalf of the federal government.

NLNG’s deputy managing directors are seconded from the NNPC.

Thus, on the board, NNPC is represented by the NLNG DMD.


“Immediately after that board meeting, the pressure from the senior government officials intensified since that was one of the reasons I had indicated for not making the payment earlier,” he said.

“But I reminded them of the second reason which was that by law, payment was with a June deadline, and as such I maintained we still had to wait until June before payment as provided for in the (CIT Act).

“Subsequently, the elections held in April; and rather than wane, having lost the election, the pressure intensified, albeit the tone changed, as I was now being requested to pay the money and that interest sums that would have accrued until June, if we had kept the money in our bank, would be refunded, to keep us whole. They highlighted urgent need to source money to pay fuel subsidies, etc.”

Omotowa did not budge.

“Obviously, this was not an easy situation and I could be fired, etc, because from the government’s perspective, I was stopping them from laying hands on a huge amount of money, especially at a time they needed money desperately. (But) I kept all shareholders informed of the situation.”

NLNG’s MDs are seconded from Shell Gas B.V, which owns 25.6% of NLNG’s shares. Total LNG Nigeria Limited owns 15% and Eni International (N.A.) N.V.S.a.r.l owns the remaining 10.4%.

In May 2015, Buhari became Nigeria’s president.

In June 2015, which was when Omotowa had promised to pay, he did.


He said: “The new government was very transparent to the public about the payment, and also for the first time, mandated us to start paying the dividend aspect to the federation account. It was the CIT payment and some dividend totalling $2.1 billion that we paid that then got shared amongst all the states and became known as ‘the bailout funds’.”

Previously, NLNG’s dividends had been paid to NNPC while the company import tax, which the company only started paying in 2013 after its 10-year tax holiday lapsed, had been paid to the FIRS federation account.

Omotowa noted that NLNG had “since 2004, paid over $33 billion to Nigeria, with the dividend part paid to NNPC alone being over $15 billion.”

In 2014, NLNG had paid $1.4 billion to NNPC, $1.8 billion to the federation account for feedgas purchase and $1.4 billion to FIRS as company income tax.

According to Waziri Adio, executive secretary of the Nigerian Extractive Industries Transparency Initiative (NEITI), “although the NNPC acknowledged remittances from the NLNG to the tune of $13 billion in the last eight years, NNPC never remitted same to the federation account”.

If Omotowa had succumbed to the pressure and made the $2.1 billion payment before June 2015, there are fears the money would have been mismanaged.

“Paying the money contrary to the law and during election period would have been wrong,” Omotowa maintained.

“It would have then been used for electioneering purposes. I was prepared to walk away from the job, if need be and I suspect I may have been relieved of my job if the administration had won the election.

“In fact from around February they tried to find reasons to remove me from the position but they were unsuccessful. I was less concerned about retaining my job; my concern was doing what was legally, ethically and morally right.”

Officials of the Jonathan administration later said the NLNG dividends were left for the Buhari administration, contrary to claims the new government met an empty treasury.


Source: The Cable

BREAKING: Ex-NNPC boss, Andrew Yakubu drags EFCC to court.

Former Group Managing Director of the National Nigerian Petroleum Corporation (NNPC), Mr. Andrew Yakubu has dragged the Economic and Financial Crimes Commission (EFCC) over forfeiture order.
It would be recalled that earlier last week, Justice Zainab Bage Abubakar of the federal high court Kano, while ruling on an ex pate application filed before it by the EFCC’s counsel, ordered that the $9.8 million and 74,000 pounds recovered from Mr. Yakubu be forfeited to the federal government.
Mr. Yakubu was dragged before Justice Zainab by the commission after it recovered $9.8 million and 74,000 pounds from his residence in Kaduna state.
However, Mr. Yakubu has also dragged the commission to another federal high court sitting at Court road, Kano seeking redress on the forfeiture order.
Counsel to the former NNPC boss, Mr. Ahmed Raji, who spoke through Barrister Abdulkarim Kabiru Maude said his client had applied for motion on notice seeking the court to vacate the forfeiture order earlier granted by Justice Zainab.
The EFCC’s spokesperson at the Kano Zonal office, Idris Nadabo, while confirming the development, said the case is coming up on the 7th March, 2017 at the Federal High court sitting at Court road, Kano.
Source: Daily Trust

BREAKING: Female suicide bomber blows up NNPC depot in Maiduguri

A female suicide bomber, believed to be member of the dreaded Boko Haram sect, early hours of Friday, attacked oil deport belonging to the Nigeria National Petroleum Corporation (NNPC).

The bomber died immediately, while 3 tankers laden with Premium Motor Spirit (PMS) are currently on flames.

A source disclosed to DAILY POST that the NNPC depot, located along Damboa road, Maiduguri, was attacked by 6.05am on Friday.

The source also disclosed that the body of the female bomber and another burnt body (male) have been so far recovered.

As at the time of filing this report, the men of Federal Fire Service were battling to prevent the inferno from escalating to the main depot building.

More to come…


Source: Daily Post

“Stop attacking oil pipelines”, NNPC boss begs Niger Delta militants.

The Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC, M.K. Baru, on Thursday appealed to the Niger Delta militants to stop attacks on oil installations.

Delivering a Keynote Address at the SPE Annual Oloibiri Lecture Series in Abuja, Baru said the cessation of militants’ attack will enable the corporation to grow the gas industry for the “benefit of Nigerians.”

Baru noted that vandalisation of oil installations in the Niger Delta region was the most disruptive challenge to supplies across the country.

According to Baru, “The need to encourage gas production to meet increasing national demand is paramount.

“FG’s Gas Master-Plan Policy was intended to address the gas supply situation in the country. The Policy details out major infrastructure expansion, gas supply development acceleration and revamp of gas commercial framework.

“We are addressing the nation’s gas supply challenges through the launching of the 12 Business Focus Areas.

“One of the key components of the #12BUFA is Gas Development whose strategic plan is to increase domestic gas supply by 2020.

“Under the Gas Development Plan, we intend to grow gas supply to support the power sector and stimulate gas-based industrialisation.

“We also intend to selectively expand our export footprint in high value and strategic foreign markets.

“Gas pipeline vandalism has been the most disruptive challenge to supply across the country.

“We appeal to the militants to stop the attack on pipeline infrastructure to enable us grow the gas industry for the benefit of Nigerians.”


Source: Daily Post

Senate orders fresh probe of NNPC

The senate has mandated the committee on petroleum downstream to investigate the non-remittance of funds by the Nigerian National Petroleum Corporation (NNPC) to the federation account.

The committee will also investigate an alleged abuse of product marketing and distribution between 2006 and 2016.

The resolution by the senate was sequel to a motion entitled ‘discrepancies in subsidy payment and non-remittance of funds by the NNPC to the federation account’.

The motion was sponsored by Dino Melaye, senator representing Kogi west.

Melaye expressed dismay that despite the crackdown by the Buhari administration, the NNPC has refused to remit funds to the federation account.

“The independent marketers account for 49 percent of the imported petroleum product, while the NNPC accounts for 51 percent of imported products, but this does not justify the huge amount it has been paid as subsidy in the last 10 years,” the senator said.

“From the records derived from the PPMC, 5 to 10 cargoes of imported crude arrives the country monthly, while about 5 cargoes are refined locally and each cargo contains 5.8 million litres of the refined crude products.

“The excess products which cannot be dispensed that goes into different tank forms owned by private individuals are not properly accounted for as they illegally sold off by the owners of these tank farms in a manner that is opaque and usually designed to rip off the public and enrich a few persons stupendously at the expense of the masses.”

He said since the Buhari administration “clamped down” on subsidy payments, NNPC has solely been responsible for retail of petroleum products.

“Companies like BOVAS and RANO are paying N20 to N25 per litre for the sales of this product which amounts to over N2 billion monthly,” he said.

“These monies are not accounted for and that might be the reason why we now see petro-dollars in caskets and uncompleted building in remote villages in some parts of the country.”

The senate adopted the motion after it was put to a voice vote by Bukola Saraki, senate president.

In December 2016, the Nigeria Extractive Industries Transparency Initiative (NEITI) said as of 2014, the NNPC had withheld $15.8 billion from the federation account paid by the Nigeria Liquefied Natural Gas.

“NLNG paid $1.42 billion to NNPC as dividends, loan and interest repayments for 2014 but the amount could not be traced to the Federation Account,” NEITI had said in a report.

“Between 2005 and 2013, there was an outstanding of $12.92 billion of dividends, interest and loan repayment made by NLNG to NNPC but not remitted to the Federation Account;

“The 2014 audit uncovered evidence of $1.5 billion paid by NLNG to NNPC between 2000 and 2004 but also not remitted. This brings the sum of unremitted NLNG dividends, interest and loan repayment to $15.8 billion as at the end of 2014.”


Source: The Cable

Senate to probe alleged N5.1 trillion subsidy fraud in NNPC

The Senate is set to probe the Nigerian National Petroleum Corporation (NNPC) over claims that it mismanaged about N5.1 trillion it got as subsidy funds between 2006 and 2015.

While raising a point of order, Dino Melaye (APC, Kogi West), drew the attention of the Senate to the refusal of the presidency to probe the nation’s oil corporation, which he said got 51 per cent share of companies approved to import petroleum products into the country.

The N5.1 trillion allegedly mismanaged is about 70 per cent of the N7.298 trillion national budget of 2017 and out of which the government plans to borrow N2.32 trillion. If this amount is recovered, it would help in funding government projects. The amount of money allegedly mismanaged shows that the nation does not lack revenue to execute projects and programmes that could improve the wellbeing of the citizens. What it lacks is the effective management of the revenue. Also, the planned probe will lend credence to the anti-corruption campaign since the NNPC which is the nation’s cash cow is considered to be a nerve centre of corruption.

He said: “Surprisingly you (the Senate President, Bukola Saraki) are one of those who raised the issue of subsidy in the Seventh Senate. The Federal Government is prosecuting marketers and these marketers only constitute 49 per cent of imported refined products. The NNPC is responsible for the importation of 51 per cent.

“While we are prosecuting the independent marketers whose proceed from subsidy is about N3.83 trillion, NNPC collected a total of N5.1 trillion on subsidy and this has never been investigated and we are busy chasing independent marketers. The time to look at the books of NNPC as regards petroleum subsidy is now.

“We have taken the lead in the fight against corruption in this chamber and I want to say we must do everything within our powers to investigate and bring whoever is found wanting to book.”

Saraki gave nod to the plea by Melaye, who had sought the permission of the chamber to sponsor a motion today. “Thank you Senator Melaye for that radical performance,” Saraki said.

He added: “Melaye, we expect this motion tomorrow (today) and it is a very serious issue. It goes to the core of the fight against corruption and also the issue of NNPC which is a great source of revenue for all of us. We will wait for that motion today.”

Also yesterday, the Upper Chamber urged the Federal Government to urgently pay the N2 trillion owed local contractors.The debts, the Senate noted, are those owed contractors operating in the oil and gas sector, as well as others in the pharmaceutical industry.

During a debate on the motion sponsored by Oluremi Tinubu, Saraki warned that the inability of the Federal Government to repay its debts would adversely affect the economy.

“The inability of the government to pay its debts will have serious effects on our economy. I know that the Federal Government is making efforts to ensure that they pay their debts. That is why they are trying to raise international bonds. I urge them to hurry up so they can pay these debts,” he said.

Adopting the motion, titled “The urgent need for the Federal Government to redeem local contractors’ debts,” the lawmakers expressed worry that the inability of the government to repay the debts is already negatively affecting the economy.

Tinubu said any further delay in servicing these debts might adversely affect business organisations operating in the country, especially banks, owing to the fact that many businesses are indebted to the financial organisations.

“The inability to repay subsisting bank loans may affect the purchasing power of petroleum marketers, thus creating scarcity of petroleum products.“I am further concerned about the alleged failure to pay debts owed to pharmaceutical companies and the impact this may have on the health sector.

“The data released by the Debt Management Office put Nigeria’s domestic debt as at June 30, 2016 at over N10 trillion. Local contractors debt is estimated to amount to an additional N2 trillion.

“Settling these local debts will ensure that affected businesses stay afloat through an increase in the circulation of money in order to bring the current economic recession to an end,” Tinubu explained.

Jibrin Barau said if contractors were paid their debts, it would enable them to repay their loans to banks. He said in turn, banks would be able to give more loans to business owners.

Magnus Abe warned that a repeat of what happened in the past, when banks owed huge debts and went under, must be avoided. He noted that families who were affected by these huge debts were unable to meet their daily obligations. Shehu Sani said as the chairman of the Committee on Local and Foreign Debts, he had been inundated with calls from local contractors.

Meanwhile, Saraki has ordered chairmen of all the standing committees to submit the final copies of budgets of agencies under their purview to the Chairman of the Senate Committee on Appropriation, Danjuma Goje.

Saraki who made the announcement during plenary, said the final copies of the reports must be submitted on or before Friday, 3rd of March, 2017.
The Senate also yesterday directed its Committee on Customs, Excise and Tariff to investigate the recent illegal importation of 661 sophisticated weapons into the country, and other related offences as well as identify the importers and their collaborators irrespective of their status in the society.

The committee was mandated along with that on Interior, to examine all the processes involved in importation of goods and ascertain also who does what and how, in the said process with a view to determining whether the process and its operators are effective, efficient and of required standards.

These resolutions were sequel to a motion titled “Urgent need to stem the proliferation of Small Arms and Light Weapons in Nigeria” moved by Hope Uzodinma (PDP Imo West), in which he noted that the influx of illegal small arms and light weapons into the country was a threat to the peace and security of the country.


Source: The Guardian

NNPC subsidiary to raise its oil production to 500,000 barrels daily.

The Nigerian National Petroleum Corporation, NNPC, says it is determined to raise the crude oil production capacity of its exploration and production subsidiary, the Nigerian Petroleum Development Company, NPDC, to 500,000 barrels per day by 2020.

Besides, the corporation said it would also grow the company’s gas production capacity to 1,500 million standard cubic feet per day of gas within the same period.

The Group Managing Director of NNPC, Maikanti Baru, who disclosed this on Tuesday at the ongoing Nigeria Oil and Gas Conference and Exhibition in Abuja said everything was being done to achieve the set targets.

Mr. Maikanti, who delivered the keynote address titled: “NNPC’s Commercial Strategy and Priorities”, said the corporation hoped to achieve set reserve growth target as well as increase national crude oil production to three million barrels per day from the current 2.2 million barrels per day.

He also said NNPC would sustain frontier exploration in the country’s inland basins to meet government’s aspiration to achieve crude oil and gas reserves of 40 billion barrels and 200 trillion cubic feet respectively by 2020.

The NNPC GMD put the country’s current oil and gas reserves at 37 billion barrels and 192 trillion cubic feet (TCF) respectively.

Besides, efforts are currently ongoing amongst all concerned to reduce the level of gas flare by converting most of the flared volumes to ensure commerciality of the gas resources, he said.

Speaking further on gas commercialisation, Mr. Baru said efforts were on to raise between $3.6 and $4.5 billion to build the Abuja-Kaduna-Kano pipeline to help generate 3.2 gigawatts (GW) of electricity for the country.

“Beyond growing gas for the power sector, there has been a strategic positioning of the sector to support massive gas-based industrialization.

“We will incubate and midwife a portfolio of critical and mutually dependent investments (Central Processing Facilities, CPFs, Fertilizer, Petrochemical, Free Trade Zone, FTZ, infrastructure and Ports) which will jumpstart the gas revolution agenda.

“NNPC intends to develop or take equity in some of these gas-based industries such as fertilizer and others,” he said.

Another priority for the year, according to the GMD, was the rehabilitation of the refineries, adding that his management has secured the approval of the Board to pursue the rehabilitation with a view to increasing their capacity utilization to above 60 per cent.

He expressed confidence that diligent execution of the initiatives would increase the commerciality and profitability of the corporation in the near future.

At the opening of the 2017 Oil and Gas Conference and Exhibition in Abuja, on Monday, Mr. Baru said Nigerian oil and gas industry was on the path of recovery with the current crude oil price in the international market on the rise, and pipeline vandalism on the decline as a result of drop in restiveness in the Niger Delta.

Mr. Baru, who expressed delight that the NOG Conference, which could not hold last year, had returned, at a time hope was rising for the industry

He stated that there were indicators that things were beginning to shakeup for the industry.

The first indicator, according to him, was that cases of pipeline vandalism have reduced with a positive impact on crude oil production.

“We are having a lot of engagements with people in our core area of operations in the Niger Delta and this is bringing a lot of hope. If we go by the number of pipelines vandalism cases, they have dropped to an average of 20 per cent on a month as against a similar period last year. This is an indicator that calm is returning to the r”, he said.

He listed other indicators to include the rise in the price of crude oil in the international market and the renewed confidence in the industry among the international oil companies as a result of the cash call exit agreements which have guaranteed a steady flow of funds.


Source: Premium Times

No more petroleum product import by 2019 – NNPC promises to revamp refineries.

The Nigeria National Petroleum Corporation (NNPC) on Wednesday said it planned to rehabilitate, revamp and upgrade all the refineries so that there would be no more product import by 2019.

Dr Bello Rabiu, NNPC Chief Operating Officer, (Upstream), said this during a panel discussion session at the West African International Petroleum Exhibition and Conference (WAIPEC) organised by the Petroleum Technology Association of Nigeria (PETAN) in Lagos.

NAN reports that the session had the topic: “How Nigerian and West African Market can Better Compete in a Weak and Disruptive Oil Market’’.

According to him, it is imperative to balance high crude output with high refining capacities to reduce imports costs and charges, export charges and subsidy payments.

“This will effectively position us to get more value from the crude fractions as opposed to a single price value for the crude alone.

“It will also ensure that we are less exposed to market fluctuations and then give us control of products marketing and supply.

“As we reduce reliance on imported refined products, we would be more competitive,’’ Rabiu said.

The NNPC upstream chief said there was need for new investments in refining capacity to grow and sustain internal consumption and promote external trade amongst West African countries.

He said that there were plans to increase capacities in Nigeria, Ivory Coast and Niger Republic with regards to the Nigerian private-sector led Dangote Refinery.

The refinery, Rabiu said that the refinery was proposed as a 650,000bopd refinery located in Lekki, Lagos.

“In terms of economic and trade cooperation amongst ECOWAS countries, the recently proposed Niger-Kaduna refinery crude export pipeline offers a panacea for landlocked West African countries.

“Therefore, it should be promoted as it acts as an alternative source of crude supply to an existing ready market.

“Similar infrastructure running from Chad to Cameroun’s Atlantic coast is in operation,’’ he said.

Rabiu said that there was need to diversify the West African economic base to be able to handle shocks caused by oil prices.

The NNPC chief called for harmonisation of tariffs on non-ECOWAS goods to promote better economic cooperation with regards to non-oil exports.

He said that harmonisation would expectedly counter the effects of smuggling across the ECOWAS borders.

According to Rabiu, the tariff harmonisation will spur coastal countries to work towards making their ports preferred import destinations to attract greater trade flows and by extension, fiscal revenues.

“It will promote trade amongst West African countries and by extension ECOWAS can forge partnerships with Europe, Asia, etc. for the export of their agricultural produce.


Source: Guardian

Andrew Yakubu Drags EFCC To Court Over Forfeiture Of ‘His’ $9.7 Million

Mr. Andrew Yakubu, the former managing director of the Nigerian National Petroleum Corporation, whose ‘gift’ of  $9.7million and  £74,000 was hidden in a nondescript house in Sabon Tasha in Kaduna city, has launched a move to have the  seized money returned to him.

The Vanguard reported that Yakubu has filed a petition before a Federal High Court in Kano, urging it  to order the Federal Government to return the money valued at N3billion to him. No date for the hearing was reported.

According to some earlier reports, he told the EFCC that the money was a gift.

The suit was filed on his behalf by Mr. Ahmed Raji, SAN.

Andrew asked the court to set aside the forfeiture order that granted FG ownership of the money which was discovered by operatives of the Economic and Financial Crimes Commission, EFCC, on February 9.

Specifically, he wants the court to set aside the order and return the $9,772,800 and £74,000,000 which he said belongs to him.

The former NNPC boss insisted that the court lacked the jurisdiction to grant FG ownership of his money.

According to him, the court  lacks the  jurisdiction to entertain the motion that culminated to the forfeiture order since it related to a crime that was alleged committed in Abuja.

Raji contended that going by section 45 of the Federal High Court Act, an offence should be tried only by a court exercising jurisdiction in the area or place where the offence was committed.

“No aspect of the perceived offence in respect of which the Order of February 13, 2017 was made, was committed within the Kano judicial division of this Honourable Court”, Raji argued.

He further maintained that FG lacked the locus-standi to seek the interim order of the court granted on February 13.

“By Section 28 of the EFCC Act, only the commission, i.e. the EFCC has the vires to seek an order for the interim forfeiture of property under the Act.

“The power of this Honourable Court to make interim forfeiture order(s) pursuant to sections 28 & 29 of the Economic and Financial Crimes Commission Act, 2004 (herein after referred to a “EFCC Act”) is applicable ONLY to alleged offences charged under the EFCC Act and not to offences cognizable under any other law.

“The ex-parte order of this honourable court dated February 13, 2017, was made in respect of alleged offences under the Independent Corrupt Practices and other Related Offences Commission Act (herein after “ICPC Act”) and not the EFCC Act as prescribed by section 28 & 29 thereof.

“The conditions precedent to the grant of an interim forfeiture order under sections 28 & 29 of the EFCC Act were not complied with by the Applicant (FG) before the Order was made”, he submitted.

Yakubu was Group Managing Director of the NNPC between 2012 and 2014.

He was sacked by the administration of former President Goodluck Jonathan for alleged insubordination and corruption.


Source: Sahara Reporters

Senate challenges EFCC to investigate NNPC, CBN, finance ministry.

A senate committee has challenged the Economic and Financial Crimes Commission to investigate officials of the finance ministry, Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Corporation (NNPC).

The lawmakers threw the gauntlet at Ibrahim Magu, acting chairman of the EFCC, on Monday when he appeared before the senate committee on anti-corruption and financial crimes for the 2017 budget defence.

Isa Misau, a member of the committee, urged the EFCC to pay attention to unoccupied houses in Abuja, saying a lot of transactions are made on them with “ill-gotten money”.

Misau said the $9.8million and other sums recovered at the residence of Andrew Yakubu, former group managing director of NNPC, was one case out of many.

“Today, I am giving it as a challenge to the EFCC to go and see what the NNPC or CBN or the finance ministry is doing,” he said.

“This is an era of whistle-blowing. I am blowing my whistle: go and check CBN. That is the reason why, today, we have (this) recession. Today, dollar, at the parallel market, is N520. And there are allegations against the CBN; the way they give these dollars.

“This committee is challenging the EFCC to go and look at these records: what is our revenue in dollars? Who are the people collecting these dollars?

“Go and see unoccupied buildings in Asokoro, Maitama and Wuse 2 (all in Abuja). For over five years, nobody will be there (in the buildings). And EFCC is not looking at these houses. A lot of transactions are taking place with ill-gotten money to the tune of N2bn or N3bn, and somebody will bring the money in cash to buy a house.

“Without digging into these landed properties and knowing their owners, you may end up being only after somebody who just left office, and arresting and detaining them for one week, and they will get bailed. And the business continues.”

Misau also complained about the short detention period of suspected looters, noting that the senate was ready to work with the EFCC to establish a law that will empower it to detain such persons for up to a year.

He urged the anti-graft agency to go after federal bureaucrats and directors of government agencies, saying most of them were billionaires.

“We want a situation whereby you will get the cooperation of judges. I see no reason why somebody will take (steal) billions and after two days with the EFCC, they will be granted bail,” Misau said.

“If we need another law that once it has to do with government money, we can keep such person with EFCC for one year; if there are certain laws you want, where you can detain somebody for one year, we are ready.

“Go and check the houses in Maitama, Wuse 2 and Asokoro. How did they (the owners) get the money? Check the directors, who are still serving; they are all billionaires. I can mention more than 30 directors; they are still serving and they are billionaires.”


Source: The Cable

SR: Inside The Poor Community Where Ex-NNPC GMD Andrew Yakubu Hid Over N3Bn

Godwin Isenyo paid a visit to the poor community in Kaduna State where operatives of the Economic and Financial Crimes Commission found over N3bn in a house allegedly belonging to a former General Manager of the Nigerian National Petroleum Corporation.

When 30-year-old Ibrahim Alfa first heard that over N3bn was discovered by operatives of the Economic and Financial Crimes Commission in a house somewhere in Kaduna State, he rolled his eyes in disbelief. When he was later told the said sum was found in a house located inside his poor community in Sabo Tasha, Alfa, who holds a Higher National Diploma in Electric Engineering, screamed expletives.

Our correspondent found Alfa on Chikun Street, by the popular Y Junction along the Sabo Expressway, in Sabo Tasha, Chikun Local Government Area of the state. There, Alfa sat outside his one-bedroomed apartment he shared with his friends, talking about his future, which was far from being as bright as the afternoon sun.

“I am short of words. How can one believe that such amount of money was found here, in a place where there is no regular electricity supply, water supply? To think that a man of such immense  wealth has something to do with this community without contributing anything is, to say the least, disheartening,” Alfa said.

Chikun Street has since become popular following the discovery by operatives of the EFCC, on February 9.

Following a tip-off by an informant, operatives of the agency stormed a house in Sabon Tasha, allegedly belonging to the former Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Andrew Yakubu. The anti-graft agency said it found the sum of $9.7m (N2.96bn) and £74,000 (N28.19m), a total of over N3bn hidden in a fireproof safe inside the house.

Yakubu was NNPC GMD between 2012 and 2014 before he was relieved by the administration of former President Goodluck Jonathan for alleged corruption and insubordination. He had worked with the NNPC for over 30 years.

Chikun LGA has an estimated population of over 360,000, with Sabo Tasha and Angwan Sunday having about half of the estimated population.

Alfa said, “As you can see, I am going to the next compound to fetch water from a borehole. This is as a result   of the government’s inability to provide for us. Yet we have somebody who hid money in foreign currencies in our area. This country is sick. Look at the poor drainage system, bad road network and lack of hospital facilities. Many of the residents are not happy with the man (Yakubu) for what he did. People in this community are angry. They wished the money was shared among them. He could not even touch anybody’s life in this community.”

An unexpected find in squalor

Last Friday, a statement from the EFCC spokesman, Wilson Uwujaren, noted that “the surprise raid of the facility followed intelligence which the commission received about suspected proceeds of crime believed to be hidden in the slums of Sabo Tasha area of Kaduna.”

Uwujaren said the caretaker of the house, one Bitrus Yakubu, a younger brother to Andrew Yakubu, disclosed that both the house and the safe where the money was found belonged to his brother, Yakubu.

The EFCC spokesman further said on February 8, Yakubu had reported to the commission’s zonal office in Kano and made a statement wherein he allegedly admitted ownership of the recovered money, claiming it was a gift from unnamed persons.

The discovery by the EFCC has sparked outrage among Nigerians, especially Yakubu’s poor neigbours.

A resident of the area, 30-year-old Celestine Musa, said members of the community were woken up by the unusual presence of operatives of stern-looking EFCC operatives.

Musa said he was shocked that such huge sums could reside in such a poor community where many like him where struggling to eke out a living.

The house where the money was recovered was a stark difference to the amount it carried for months. But for the EFCC revelation, nothing pointed to the fact that N3bn was stashed somewhere in the unimpressive house with drab painting.

Directly opposite the building were shops, where a grinding machine for tomatoes, pepper and other stuff was displayed. To the extreme right was a firewood seller, displaying a hip of firewood.

Our correspondent gathered that the compound, where the money was recovered, had two two-bedroomed flats, self-contained apartments and a room-and-parlour. Two window-sized air conditioners were said to be in the room where the currencies, reportedly stored in an anti-fire safe, were discovered.

When SUNDAY PUNCH visited the house where the money was uncovered, it was learnt the older sister of the former GMD, a retired nurse fondly called “Mama,” resided there with other tenants.

The house is said to be one of the many properties owned by Yakubu. Interestingly, the unimpressive building in question is a kilometre  away from the 29, Bourbillion residence of the  ex-GMD by  Narayi High Cost Junction, an upscale neighbourhood in the state.

However, unlike the largely attractive houses in Narayi, Sabo Tasha has all the trappings of squalor and poverty. The area does not boast of a government primary or secondary school. The less-than-a-kilometre road is untarred and driving during rainy season, according to residents, is hellish.

“It is unfortunate that such an amount was recovered on my street where there is no good road. In fact, I am shocked and angry about the whole situation,” Musa added.

For Mr. Paul Okoye, a 70-year-old welder, said the discovery felt like a scene from a bad movie.

The septuagenarian noted that it was outrageous to trace such an amount of money in “hard currency” to a community lacking in life’s simple comforts.

He said, “Take a look at the deplorable condition of the road in the area. It is only a wicked person that can hide over N3bn in the midst of squalor. Personally, I have decided to refrain from commenting on this matter because it could give me a heart attack. We are hungry and dying of poverty, yet somebody kept such a huge amount of money and can still sleep well with his two eyes closed. It is the height of wickedness. It is unfair.”

A 50-year-old carpenter, who is also a motorbike rider, Mr. Godwin Odoh, echoed the same views.

Odoh has five children. He said he prayed to God to assist him and his family, since the likes of the ex-GMD could not assist the poor in their midst. “I have been living in this area for decades, and I never imagined that that amount of money could be kept in the area, not to mention the type of house where it was found,” he said.

Similarly, a 33-year-old seamstress, Comfort Ojei, whose shop is opposite Yakubu’s house, said she was shocked at the EFCC’s findings.

“It is obvious that we lack the basic amenities of life in this area, such as good roads, functional health care facilities, as well as schools, yet our neighbour was hiding dollars while we were suffering and dying of hunger. We are not happy at all,” the mother of two said.

Another neighbour, Samuel Koro, told SUNDAY PUNCH that he had once approached the Zango-Kataf-born Yakubu for assistance when he was still NNPC GMD. But Yakubu told him that he had no money.

“I had gone to meet him (Yakubu) for N20,000 for payment of my rent, but he said there was no money. Operatives of the Department of State Security guarding him then simply shoved me aside. So, when I heard of the EFCC discovery, that sad encounter flashed through my mind. He was not friendly with us at all,” Koro said.

However, like the saying goes, different strokes for different folks.

Mrs. Habibat Ifijeh, a trader, whose provision store is attached to the building where the money was uncovered, described the former GMD as a kind man who had touched many lives.

“All I can say is that the man is a gentleman. He assisted (my family) with our rent. We are tenants in his house and whenever we couldn’t afford the rent or didn’t have money to pay, he would simply tell us to ‘just forget it.’ I feel bad but I don’t know why he decided to keep the money here. Let the court judge him,” she said.

What we want FG to do with recovered money — Residents

Mr. John Ibekwe, whose one-roomed apartment is not far from the house where the money was recovered, said a fraction of the money would help his family and that of three generations after him.

Ibekwe said, “I am struggling to fend for my family. I cannot afford to pay the school fees of four of my children. I am approaching 48 and the future is still bleak for me and my family. Why should only one man have N3bn in his house when many in the country are suffering? In the past, they said ‘no food for lazy man’; now we work and their is still no food because of bad leaders. My heart bled when I heard of the discovery. We are all here and right under our nose was hidden dollars and nobody knew. Our leaders are wicked.”

Youths in the community are angry at Yakubu, noted Musa. “It is shameful. Only God knows what would happen to him if they should get hold of him. I pray he doesn’t come to this area because he will be lynched,” he said.

Ibekwe urged the Federal Government to use the money recovered for the benefit of the common man in the community and across the state.

“The Federal Government should ensure the recovered money is properly accounted for. Government should identify capital projects to utilise the money for. If the money recovered from looters are judiciously utilised, many Nigerians would be willing to join forces with the government in the fight against corruption in the land,” he said.

Ojei said the former GMD did not help his neighbours. “We want the recovered money shared. We want government to reconstruct our roads, build schools for our children and provide electricity and water for the community with the recovered money. During the rainy season, this road is not motorable,” he said.

Another resident, who refused to give his name, said, “Apart from the bad road which you see and at the same time feel, we don’t have good schools and other social amenities in this area. We can use such money to fix our roads, schools and health facilities. He should simply forfeit the money to the government. Let the government use this to show us that the law is working. We don’t want a situation whereby a court will give him a meagre amount like N100m as fine and ask him to go and sin no more.”

What N3bn can do for Kaduna State, Nigerians

The sum of N3bn recovered from Yakubu would have provided about two percent of the Kaduna State government’s 2017 budget put at about N214bn (made up of N83.46bn in recurrent spending and N131.45bn in capital expenditure), which would have gone a long way to provide several social infrastructure in the community and the state.

Last year, the governor of the state, Nasir el-Rufai, lamented that over 4,000 primary schools in the state were in various stages of disrepair.

Also, the state government is struggling with the school feeding programme; the amount would have fed the estimated 1.9 million primary school pupils in about 4,300 primary schools in the state for one month.

It would also have provided thousands of jobs as the state’s feeding programme is expected to directly create 17,000 jobs for catering vendors and others who would work for them.

The Executive Director, Centre for Creativity and Leadership Development, Kaduna, Abdullahi Ali-Dogo, said the amount could have done more for the state and development of its infrastructure.

“Some of the things the money can provide for this community include a good road network, well-equipped hospital and a borehole for every household. This will go a long way in reshaping the community. I believe the major problems of that community are bad roads and lack of educational facilities. A fraction of that amount can get all the streets there tarred; provide well-equipped health care centres, potable water, as well as primary and secondary schools where children of the poor would be adequately catered for and the children would not have to pay school fees for three years.”

An economist and a former employee of African Development Bank, Yakubu Aliyu, said the recovered N3bn would have provided the country valuable foreign exchange that could also support its external reserves.

“In a way, the continued depreciation of the naira could be linked to such kind of leakages, people holding on to foreign currencies like the dollar without putting it to use. When you convert the money at the parallel market rate, it is closer to N5bn (than N3bn). Many states in Nigeria do not take much in a month from the federation account. So, in effect, a state government could have used that amount to pay salaries, contractors and fund security in a whole month,” Aliyu said.

The economist further said the amount would have also funded capital projects in the country.

He said, “The entire start-up capital of Emirates Airlines, which is now among the top five airlines in the world and employs a staff of over 50,000, was about $10m in 1985. Imagine what that amount could do for many Nigerians two to three decades down the line if it is used to start a profitable venture.

“Also, take the Central Bank of Nigeria/Bank of Agriculture anchor lending to farmers that has now sparked off a real agricultural revolution across the country. The loan per farmer is N250,000. With such an amount stashed away by the former NNPC boss, the scheme could reach about 20,000 farmers. Imagine the huge multiplier effect on food production, stimulation of rural economy and farmers’ incomes. The effect on poverty reduction will be monumental.

On February 14, the Federal High Court sitting in Kano ordered for the temporary forfeiture of $9.8m and the £74,000 recovered from Yakubu to the Federal Government, as had been requested by the anti-graft agency.

Ali-Dogo urged the Federal Government to follow China’s example in punishing looters of public money. “Let’s go the China way, anybody that steals government money or is proven by law to be corrupt should face the death penalty,” he said.


Source: Sahara Reporters

“It is my money”, Ex-NNPC GMD asks court to return $9.7m, £74,000 seized from him

Andrew Yakubu, a former managing director of the Nigerian National Petroleum Corporation (NNPC), has asked the court to return the $9.7 million and £74,000? seized from him by the Economic and Financial Crimes Commission (EFCC).

Yakubu has instituted a suit at the federal high court, Kano, to this effect.

He has requested that the court set aside the order of forfeiture granted to the federal government last week.

He said the court which granted the order had no such jurisdiction.

Ahmed Raji (SAN), filed the suit on behalf of Yakubu, Vanguard reports.

Raji argued that the crime was committed in Abuja, which is outside the territorial jurisdiction of the court in Kano.

“No aspect of the perceived offence in respect of which the Order of 13th February, 2017 was made, was committed within the Kano judicial division of this Honourable Court.

“By Section 28 of the EFCC Act, only the commission, i.e. the EFCC has the vires to seek an Order for the interim forfeiture of property under the Act.

“The power of this Honourable Court to make interim forfeiture Order(s) pursuant to Sections 28 & 29 of the Economic and Financial Crimes Commission Act, 2004 (hereinafter “EFCC Act”) is applicable ONLY to alleged offences charged under the EFCC Act and not to offences cognizable under any other law.

“The ex-parte Order of this Honourable Court dated 13th February, 2017, was made in respect of alleged offences under the Independent Corrupt Practices and other Related Offences Commission Act (hereinafter “ICPC Act”) and not the EFCC Act as prescribed by Section 28 and 29 thereof.

“The conditions precedent to the grant of an interim forfeiture Order under Sections 28 & 29 of the EFCC Act were not complied with by the Applicant before the Order was made.

“In the instant case, no charge was brought against the Respondent/Applicant before the provisions of Section 28 and 29 of the EFCC Act were activated to grant the ex-parte Order of 13th February, 2017.”

According to the EFCC, Yakubu claims that the sums of money found in his house were gifts.

“No law forbids anyone from keeping money at home”, Group defends ex-NNPC GMD.

The Southern Kaduna Coalition of Professionals (SKCOP) has faulted the detention of Andrew Yakubu, a former group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC).

The Economic and Financial Crimes Commission (EFCC) detained Yakubu after allegedly recovering huge sums of money at his house in the Sabo Tasha area of Kaduna state.

Yakubu admitted ownership of the money, but claimed that they were gifts from unnamed persons.

In a statement on Thursday, Sagamu Jaspar, general secretary of SKCOP, wondered if there was a law which forbade anyone from keeping his earnings at home.

He alleged that some persons were plotting to pull down “our illustrious son and sacrifice him to the dogs” as a means of weakening the strong among us ahead 2019 general election.

“We are waiting to see if a court of law can establish that the said amount found in his home is a proceed of crime, or whether there is indeed a law that forbids anyone from keeping his earnings at home,” Jaspar said.

“We suspect that the deliberate negative publicity the EFCC is generating over his arrest and its failure to release him from their detention  after meeting his bail conditions, is more vindictive and political than fighting corruption.

“We condemn the desperate attempts to rubbish Andy Yakubu, (the Iyan of Atyap Chiefdom) by those who think that a man from southern Kaduna has no business becoming the GMD of NNPC started right when he was in office.”

The group said some people were out to tarnish the reputation of the “only man from the middle belt” to have led the oil firm.

It added that in 2014 when Sanusi Lamido, former governor of Central Bank of Nigeria (CBN) raised the allegation of missing $20 billion, the agency which audited the corporation which was led by Yakubu at the time, gave NNPC a clean bill of health.

“In 2014, the then CBN governor Sanusi Lamido Sanusi, raised a bogus alarm that under the watch of Andy Yakubu, $48.9 billion had gone missing at the NNPC. When pressed further, he said it was actually $20 billion. The senate took the matter very serious and instituted its own probe into the clearly silly allegation,” the group said.

“An audit firm of global repute, PriceWaterHouseCoopers was brought in by the federal government. After a forensic investigation, the firm said no such monies were ever missing.

“Still bent on disgracing the only person from the middle belt to ever occupy that position after rising from the ranks, Andy Yakubu was in UK  in June last year, when the EFCC invited him.  With his conscience clean and clear he arrived Nigeria just for the EFCC to clamp him in detention over an alleged criminality in an NNPC subsidiary, NPDC after Yakubu has left office.

Demanding his immediate release, Jaspar challenged the EFCC to parade all those whom the agency recovered money from.

He said failure to do so would confirm the allegation that the commission is “persecuting” the suspect.

“Keeping him in detention for almost two weeks despite the above  is a means of psychologically tormenting him and for the public to prolong their odium on his person, without giving him a chance to state his own side of the story,” he said.

“If Andy Yakubu is not being persecuted because he comes from Southern Kaduna and the Middle Belt, we challenge the EFCC to also parade all the people it claims to have recovered humongous sums of money from. Failure to so would mean the agency is lying, or has two sets of law for two kinds of Nigerians.”

Crude Oil Theft: Navy-EFCC-NNPC And The Web Of Sordid Details – By Ifeanyi Izeze

In his 2017 budget defense at the House of Representatives, the Chief of Naval Staff, Vice Admiral Ibok-Ete Ibas, while presenting the operational scorecard for his service for 2016 disclosed that the Nigerian Navy confiscated crude oil and diesel worth about N420 billion from oil thieves and illegal refinery operators. According to him, the “specific quantity of crude oil and diesel stood at 810,725 and 1,078 metric tons, respectively.”

Using the OPEC conversion factor for Nigerian crude oil, one metric ton has about 7.420 barrels of crude oil while one metric ton of diesel would give 7.22 barrels. So the declared volume of crude oil seized by the Nigerian Navy in 2016 is about 6,015,579.5 barrels. Also for the diesel, one metric ton is approximately 1130 liters. So 1,078 metric tons would be about 1.23 million liters.

Now, as said by the Chief of Naval Staff, the combined proceeds from the sale of the seized crude oil and diesel are about N420 billion. This is just for 2016 alone where we are meant to believe that this administration through its security apparatuses has drastically curtailed the magnitude of the menace. So from 2015 backward, we will be talking of multiples of 6 N420 billion generated from the sale of recovered stolen oil from Nigeria.

Without a doubt, this disclosure is throwing up again very serious issues of accounting for the proceeds from sales of crude and products recovered from oil thieves and pipeline vandals. There is an obvious aberration in the transactions involving the warehousing and selling of recovered stocks.

First, who actually owns these recovered crude oil? This question is pertinent because most of the stolen crude were supposedly tapped from oil facilities, particularly trunk lines belonging to either a foreign international oil companies or a Nigerian indigenous operator or both. So when these crude oils are recovered, whose produced crude account does it go to?  Does it now belong to the government/NNPC or the Navy, or the Economic and Financial Crimes Commission (EFCC)? Are serious efforts actually made to ascribed whatever recovered volumes to the rightful owner – the producer(s)?

Secondly, when the Navy seizes stolen crude oil from oil thieves and pipeline vandals, where does the recovered stock go – to the Navy, NNPC, or EFCC?  Who are the buyers of these seized or rather recovered crude oil – the traditional government certified crude oil marketers, another group of contractors, or the same criminal cartels that also buy from oil thieves that escape the Navy?

If the mind-blowing figures of volumes of crude oil recovered by the Navy have been going to the NNPC, how has it been accounted for – as NNPC productions and from what well/field? These issues need to be explained because severally we have heard of conflicts of interests between the Navy, NNPC and the Economic and Financial Crimes Commission (EFCC) on whose responsibility it is to sell off recovered stolen crude oil.

It would be recalled that at the wake of the Salt Pond crude oil theft scandal, the company involved disclosed that it purchased crude oil legally from the Nigerian government’s Economic and Financial Crimes Commission (EFCC), the authority with primary responsibility for cracking down on financial crimes, as oil theft is classified as one. As said then in a statement issued in Ghana by the chief executive officer of the accused company, Fenix Impex, his company has been one of the official EFCC contractors that help the commission to dispose of (i.e., sell) crude oil consignments seized by the Nigerian military and law enforcement agencies from oil thieves and illegal bunkerers. His words: “The only crude we take from Nigeria…has been seized by the government. We have invoices that we pay to EFCC Nigeria.”

Does the EFCC have offshore or coastal receptor facilities (tank farms/floating storage facilities) where they warehouse recovered crude oil received from the Naval authorities? If yes, where are these facilities located in the entire stretch of the Nigerian coastline?

And if the Navy and the EFCC have no facility to store recovered stolen crude oil from Nigeria, how are the buyers (now the EFCC or Navy or even NNPC contractors) picking up the stock for disposal abroad – onboard naval ships, seized barges/ships/boats/drums in the custody of the Navy? Who ascertains the correct volumes and price before the contractors pick the consignments? We also need to know the actual volumes and dates of the consignment(s) lifted by the contractor(s) on behalf of the federal government (in this instance the EFCC).

Above all, how much has the EFCC, Navy or NNPC generated from the sale of crude oil recovered from oil thieves since this transaction started some years ago? The figure the Chief of Naval Staff dangled at the National Assembly, was it proceeds from sales by the Navy or the EFCC? The monies generated over time from these transactions, where were they lodged? Is the revenue with the anti-graft commission or handed over to the NNPC or transmitted directly to the Single Treasury Account (TSA)? Do we have records of these sales with the Revenue Mobilisation and Fiscal Commission (RMFC) or even the Federation Account?

The federal government seriously needs to address these issues in its efforts to convince Nigerians and even the international community that this administration is sincere in its fight against corruption in the country, especially as it affects the mismanagement of oil proceeds. We need more a serious and detailed explanation of the involvement, if at all, of the Navy, EFCC or NNPC in the serial sale of confiscated crude recovered from oil thieves in Nigeria. It is not enough to tell us that millions of metric tons of crude oil were intercepted and captured by the Navy and then we end the story there. The illegal bunkering economy bleeding Nigeria as ascertained by various respectable international financial and security agencies is estimated to have an average annual value of about $17 billion. So we need accountability and transparency organizations, particularly the Nigerian Extractive Industry Transparency Initiatives (NEITI), to actually live up to their mandates and do the needful. God bless Nigeria!!


Ifeanyi Izeze writes from Abuja. He can be reached at iizeze@yahoo.com

Recovered N3 billion: Angry neighbours mock ex-NNPC boss Andrew Yakubu

Residents of Zaria Road, Sabon Tasha, a poor suburb of Kaduna, have no sympathy for their neighbour from whose house the staggering sum of $9.7million and 74,000 pounds was recovered last week.

The Economic and Financial Crimes Commission, EFCC, last Friday announced it recovered the money (about N3 billion in total) from a house in Sabon Tasha belonging to a former Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Andrew Yakubu.

Mr. Yakubu, who reportedly admitted owning the money, has since been arrested and is in custody of the EFCC.

The Federal High Court in Kano presided over by Justice Zainab Abubakar on Tuesday gave an interim order for the forfeiture of the money to the Nigerian government.

When a PREMIUM TIMES reporter visited the area on Tuesday, the residents generally expressed shock and outrage over the discovery in their neglected community.

Many of the interviewees spoke in a mixture of English and pidgin.

Grace John, a private school teacher, first directed her anger at petty criminals she said daily terrorise ordinary residents of the area instead of going after the likes of the former NNPC boss.

“There is a street nicknamed ‘Black Street’ in this community. There is no kind of crime that does not happen there. Why is it that they didn’t discover that house where this money was hidden?” Ms. John said.

“They should have gone there instead of breaking into the homes of innocent people who struggle everyday to survive the harsh economy caused by people like Andrew Yakubu”.

She could not restrain her disgust for the embattled former boss of the state oil firm.

“The man is wicked. I pray that nemesis will continue to catch up with his likes,” she said, snapping her fingers.

Blessing Luka, a fruit hawker, pointed morosely at the irony of the discovery in a neighbourhood she said is without water, good road and hospital, and has a large number of unemployed and vulnerable youth.

“Yet, the money that would have been used to solve these problems and many other social and economic problems were stolen by one corrupt person and hidden under our nose”, she fumed.

Ms. Blessing, a widowed mother of five, said she knew Mr. Yakubu and had made several attempts to get him to support her trade.

“His boys will tell me come today, come tomorrow. Asheh plenti dollar dey for the house. Na wah ooo, rich people wicked oo!

“Wetin pain me be say this man for give me N10,000 to use am sell orange take feed my children and pay for their school fees and house rent before government collect everything!”

Florence Udogu said she felt bad when she heard the news of the discovery. She said even though it was a stolen money, it should have been invested in establishing an industry.

“He even has the dirty mouth to say it is a gift or a donation. Who is he fooling? He brought all these stolen money and hid it within our reach and left us in poverty and illness. But our God is alive and will continue to expose these corrupt politicians and government officials,” she said indignantly.

“We hear say the man dey save the money to contest Governor of Kaduna State, when even we wey dey stay near him house dey hungry. God catch am. Na for that prison him go die put” Jacob Dominic, a commercial tricycle operator who took our reporter round the slump, said.

“Na so bad name go dey follow him family. Ole! That is why dem wan kill Baba make him no catch them go prison.”

Andrew Abdul, a private legal practitioner who resides in the area, said he was shocked at the the level of corruption in the society, even as he awarded a pass mark to the EFCC as a corruption fighting agency.

He said all stolen money recovered should be invested in the economy and infrastructural development, especially in communities such as where Mr. Yakubu’s loot was discovered.

“The discovery of such huge amount of money hidden in an unexpected location has further exposed the level of selfishness, self-centredness, indifference and greed of some Nigerians”, the lawyer stated.

“Whatever is the source of the money or reason for saving the money is questionable. As a public officer, any money collected as gift should be declared publicly at the point of collecting it,” he said.

He advised the National Assembly to enact a law setting a ceiling on amount a public office holder or an individual could keep in their accounts without investing it into an economic venture.

“If somebody has that kind of looted money or even if it is a gift as Mr. Yakubu claimed, why can’t he help the poor community where he stashed the money?”, said Idibia Gabriel, a journalist who resides in the area.

“Some people said that if they had known about the hidden loot, they would have struggled to get something for themselves before the long arm of the law caught up with the former GMD”, he said, chuckling.

“Some said if they were Mr. Yakubu, they would have invested the money for people to benefit rather than keeping it,” he said.

NNPC: No need for panic buying of fuel.

Nigerians have been advised not to engage in panic buying of fuel as measures are being put in place to ensure constant adequate supply.

The Nigerian National Petroleum Corporation, NNPC, said it would increase the February supply of petroleum products by providing six additional PMS cargoes of 37,000 tonnes each.

The move, among others, is part of measures to sustain supply of Premium Motor Spirit (petrol), Automotive Gas Oil (diesel) and Dual Purpose Kerosene (DPK) nationwide.
A statement by the corporation’s spokesperson, Ndu Ughumadu, said the
plan will also boost the NNPC’s existing national PMS sufficiency of over 32 days.

Other measures put in place, according to the statement, include immediate importation of three additional Automotive Gas Oil (AGO) cargoes before the end of February and an order for massive 250 trucks per day loading of AGO and DPK, from across the three NNPC refineries in Port Harcourt, Kaduna and Warri.

The statement explained further that the acting NNPC Group Managing Director, Saidu Mohammed, who chaired an emergency meeting on the Corporation’s downstream operations where the measures were taken in Abuja, said NNPC would transmit the full list of marketers involved in off-taking AGO and DPK to the Department of State Services, DSS, for appropriate follow-up by the security agency to forestall possibility of any stakeholders engaging in foul play.

“(Mr.) Mohammed said the move to provide additional PMS cargoes of 37,000 tonnes each was to give further comfort and stability to the robust petrol sufficiency nationwide,” the statement said.

“Other measure the Corporation has taken, apart from ramping up fuel supply nationwide, is an expansion of daily truck load-out of petrol, diesel and kerosene, even during weekends to ensure improved products delivery to the hinterland.

“The Corporation would provide additional marine logistics, all geared
toward improving products movements from offshore to land, to cater for additional PMS supply nationwide.”

Mr. Mohammed, the statement added, however, charged downstream operators to immediately implement measures that would sustain adequate supply and distribution of petrol, diesel and kerosene to every nook and cranny of the Country.

It stated further that the NNPC has also made concerted efforts to pay the outstanding bill owed Duke Oil, the Corporation’s trading arm, for products importation, even as it has put in place modalities for transparent accounting practice.

The statement also disclosed that the NNPC plans to obtain a foreign exchange intervention from the Central Bank of Nigeria, CBN, adding that it would convert the existing issued $144m PMS FOREX intervention
to AGO.

“As part of measures to sustain products supply stability across the Country, NNPC planned to obtain, from the Central Bank of Nigeria (CBN), an AGO Foreign Exchange (FOREX) intervention to marketers as well as Depot and Petroleum Products Marketers Associations (DAPPMAN).

“Already, the Corporation would convert the existing issued $144m PMS FOREX intervention to AGO. NNPC has also developed a comprehensive and clear deadline for the completion of the Atlas Cove-Mosimi pipeline and commenced shipment of AGO to Calabar.”

The statement, therefore, enjoined motorists and other consumers of
petroleum products across the country not to engage in panic buying.

“Motorists and other consumers of petroleum products across the Country are enjoined not to engage in panic buying as NNPC has over 32 days sufficiency for petrol, and adequate volumes of diesel and petrol to meet their demand,” Mr. Ughamadu said.

Court orders forfeiture of $9.8m, £74, 000 ‘recovered’ from ex-NNPC GMD.

Zainab Abubakar, a justice of the federal high court, Kano, has ordered the forfeiture of the sums of $9.8m and £74,000 allegedly recovered from Andrew Yakubu, former group managing director (GMD), of the Nigeria National Petroleum Corporation (NNPC).

According to a statement issued by Wilson Uwujaren, spokesman of the Economic and Financial Crimes Commission (EFCC), the order was sequel to an ex parte application the agency filed seeking an interim forfeiture of the monies to the government.

In her ruling,  Zainab held that “the sum of $9,772,000 and £74,000 which are now in the custody of the applicant (EFCC) are in the interim forfeited to the federal government of Nigeria”.

Last Friday, the anti-graft agency said its operatives raided a building belonging to the former NNPC boss and recovered stacks of dollars and pound sterling stashed away in a fire-proof safe.

Yakubu had earlier reported to the commission’s Kano zonal office where he allegedly admitted being the owner of both the house and the recovered monies.

He is still in the custody of the EFCC.

Ex-NNPC GMD, Yakubu claimed $9.8m, £74, 000 found in his house were gifts – EFCC

The Economic and Financial Crimes Commission (EFCC) on Friday said Andrew Yakubu, former group managing director (GMD) of the Nigeria National Petroleum Corporation (NNPC), claimed that the sums of  $9.8m and £74, 000 found in his house were gifts.

Wilson Uwujaren, EFCC spokesman, who disclosed this in a statement, said the money was found in a hidden fire-proof safe.

“A special operation conducted by operatives of the Economic and Financial Crimes Commission on 3rd February, 2017 on a building belonging to a former group managing director of the Nigerian National Petroleum Corporation (NNPC), Dr Andrew Yakubu in Kaduna yielded the recovery of a staggering sum of $9,772,800  and another sum of £74,000 cash,” he said.

“The huge cash was hidden in a fire proof safe.”

Uwujaren said the raid of the facility was sequel to an intelligence which the anti-graft agency received “about suspected proceeds of crime believed to be hidden in the slums of Sabon Tasha area of Kaduna”.

“On arrival at the facility, the caretaker of the house, one Bitrus Yakubu, a younger brother to Andrew Yakubu, disclosed that both the house and the safe where the money was found belong to his brother, Andrew Yakubu,” he explained.

“When the safe was opened it was discovered that it contained the sum of $9,772,800 (Nine Million, Seven Hundred and Seventy Two Thousand, Eight Hundred United States Dollars) and another sum of £74,000 (Seventy Four Thousand Pound Sterling).

“On February 8, 2017, Andrew Yakubu reported to the commission’s Zonal office in Kano and made statement wherein he admitted ownership of the recovered money, claiming it was gift from unnamed persons. He is currently assisting the investigation.”

Yakubu was appointed NNPC GMD in 2012, and he was replaced by Joseph Dawha in 2014.

How EFCC recovered $9.8million from Yakubu, Ex-NNPC GMD.

A special operation conducted by operatives of the Economic and Financial Crimes Commission on February 3 on a building belonging to a former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, in Kaduna, yielded the recovery of $9,772,800 (Nine Million, Seven Hundred and Seven Two Thousand, Eight Hundred United States Dollars) and another sum of £74,000 (Seventy Four Thousand Pound Sterling) cash.

The huge cash was hidden in a fire proof safe.

The spokesperson for the EFCC, Wilson Uwujaren, said in a statement that the surprise raid of the facility was sequel to an intelligence which the commission received about suspected proceeds of crime believed to be hidden in the slums of Sabon Tasha area of Kaduna.

On arrival at the facility, the caretaker of the house, one Bitrus Yakubu, a younger brother to Andrew Yakubu, disclosed that both the house and the safe where the money was found belong to his brother, Andrew Yakubu.

When the safe was opened it was discovered that it contained the sum of $9,772,800 (Nine Million, Seven Hundred and Seventy Two Thousand, Eight Hundred United States Dollars) and another sum of £74,000 (Seventy Four Thousand Pound Sterling).

On February 8, 2017, Mr. Yakubu reported to the Commission’s Zonal office in Kano and made statement wherein he admitted ownership of the recovered money, claiming it was gift from unnamed persons.

He is currently assisting the investigation, Mr. Uwujaren said.

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EFCC uncovers billions in cash from home of ex-NNPC GMD

The Acting Chairman of the Economic and Financial Crimes Commission (EFCC), on Thursday told a committee of the House of Representatives that $9.2 million and 750,000 pounds were recovered from a residence in Kaduna state.

Although he did not indicate precisely when the raid by EFCC operatives was carried out, NAN learnt that the foreign money was recovered from the home of Andrew Yakubu, a former Group Managing Director of the Nigerian National Petroleum Corporation.

The huge cash, which is in excess of N3 billion by official exchange rate, was the largest ever recovered by the agency in recent weeks.

Mr. Magu also disclosed to the House of Representatives Committee on Financial Crimes that N1.25 billion was recovered from a public servant, all in the last two weeks.

Mr. Yakubu, who served as GMD between 2012 and 2014, is already facing trial for money laundering.

He was charged by the EFCC in June 2016.

Mr. Magu was at the House of Representatives to present the Commission’s 2016 budget performance and defend its 2017 budget.

He said the commission recovered N102.91 billion, 8.30 million dollars, GBP 29,155, 12,475 pounds, 117,004 Canadian dollars as proceeds of crime between January and December, 2016.

Other monies recovered during the period, he said, were 806.50 Dirham, 5,000 Francs and 2,000 Rupees.

“Out of the 37 accounts frozen/forfeited, six banks are yet to provide relevant information on the amount accrued into the suspected accounts within the period under review,’’ he said.

The document revealed that the commission secured 135 convictions, out of which 46 were from Lagos zone, 30 from Abuja zone, 22 from Port Harcourt zone, 19 from Kano zone, 15 from Enugu zone and three from Gombe zone during the period.

Mr. Magu acknowledged the support of the committee towards fast-tracking the completion of EFCC headquarters in Abuja.

He disclosed that the Federal Ministry of Finance had listed the payment of N1.8 billion out of N2.9 billion meant for completion of the headquarters.

He, however, added that the commission had resuscitated its offices in Kaduna, Ibadan, Benin and Maiduguri as part of efforts to boost its operations across the country.

Mr. Magu urged the legislature to support the fight against graft, saying “corruption is fighting back”.

On recruitment, he said the commission only recruited 331 cadets on equal quota basis across the country except Lagos, Ekiti, Bayelsa and Rivers with lower numbers.

In a breakdown of the 2016 budget of the commission, Mr. Magu told the committee that total budgetary approval was N18.89 billion, but that N14.74 billion, representing 78.04 per cent, was released.

He explained that N7.62 billion was for personnel cost, overhead was N2.75 billion while capital expenditure was N8.49 billion for the year.

Mr. Magu added that 91.1 per cent component of the released funds had so far been utilised.

Earlier, the Chairman of the committee, Kayode Oladele, said Nigeria had applied to join the Financial Action Task Force (FATF), an international anti-corruption agency.

He said the move was part of efforts to strengthen ongoing anti-corruption crusade in the country.

Mr. Oladele, who lauded the development, expressed optimism that Nigeria would be admitted as “Observer Member’’ by the end of the year and would become full-time member in the nearest future.


Source: Premium Times

Kaduna refinery loses N2.2bn annually to ‘illegal water tapping’ – NNPC

The Nigerian National Petroleum Corporation (NNPC) says its subsidiary, ?Kaduna Refining and Petrochemical Company (KRPC), loses about N2.2 billion annually ?to illegal tapping of its raw water pipeline.

Ndu Ughamadu, group general manager, group public affairs division of the organisation, said this in a statement released on Thursday.?

Ughamadu said the raw water pipeline that runs from Kaduna river generates power for the running of the refinery, serves as coolants for equipment and combats fire outbreaks.
“Sequel to the series of tapping, the refinery now spends more on diesel and other material inputs in the maintenance of its generators and other equipment,” he said.
He said Idi Mukhtar, KRPC managing director, lamented that the consumption of the water by settlers who encroached on the company’s premises was an unnecessary, additional burden to the refinery’s industrial requirements.

?He added that the encroachment slows down the build-up rate of water in the reserve tanks, which endangers the refinery as “the plant is expected to maintain a minimum level of water requirement that is considered safe for operations”.

“The illegal acts are committed mostly in Janruwa, Kamazo, Namaigero and Mahuta areas of Kaduna metropolis, which are the communities along the raw water intake pipeline right of way,” he said.

“We need to put more effort to meet our industrial requirements because of the incidents of illegal tapping of our water pipeline.”

?He explained that Kaduna State Urban Planning and Development Authority and Kaduna State Water Board had been contacted to address the issues of land encroachment on KRPC Right of Way.
Ughamadu advised illegal tappers of the refinery’s raw water pipeline to desist from the act, saying the raw water was not fit for human consumption because it was untreated.
“The daily rate of loading is massive; even, on Sundays products are being loaded to meet the growing demand in the country,” he said.





Nigeria saves $500 million through direct sales of crude oil — NNPC

More than $500 million has been saved through the Direct Sale of Crude Oil and Direct Purchase of Products (DSDP) programme, the Nigerian National Petroleum Corporation, NNPC, has said.

The Group Managing Director of the Corporation, Maikanti Baru, made this disclosure, Thursday, while addressing interested bidders and at the NNPC Towers in Abuja.

A release by NNPC spokesperson, Ndu Ughumadu, stated that no fewer than 128 Indigenous and International Oil and Gas companies have indicated interest to participate in the DSDP programme.

The DSDP arrangement, Mr. Ughumadu said, is a model introduced last year and is carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with equivalent worth of products. The batch over which the bids were opened is scheduled to last for the next one year, starting from April 1, he added.

The statement quoted Mr. Baru as saying that the DSDP had saved over $500 million, particularly through reduction in the amount paid on demurrage by the corporation.

The NNPC boss described the DSDP as a major component of the NNPC’s
petroleum products supply portfolio, stressing that since inception, it has greatly helped in the stabilization of product supply to the nation.

“The DSDP programme has ensured that the supply from the refineries is fully augmented to meet national supply and sustained over 30 days sufficiency of Premium Motor Spirit, PMS, otherwise known as petrol,” he said.

Touting the transparency of the programme, Mr. Baru said the DSDP arrangement was a major instrument of partnership between NNPC and product suppliers, both local and international, adding that over the last one year, significant lessons have been learnt which have been incorporated into the tender process in order to improve quality assurance.

“One of the cardinal principles of NNPC under my leadership is the entrenchment of measures that will ensure transparency, accountability, performance and profitability in line with our FACTI principle of a Focused, Accountable, Competitive, Transparent Organization conducting its business with Integrity as enshrined in our 12 Business Focus Areas (BUFA),” the GMD stated.

According to him, the DSDP programme was a major instrument for the attainment of this cardinal objective which he declared would be guided by the overriding public interest and in compliance with extant laws and regulations.

According to the statement, the Group General Manager, Crude Oil Marketing Division, Mele Kyari, said the tender process was to optimize revenue for the Federal Government in compliance with the anti-corruption drive of the Government, adding that yardsticks for successful bidders would include, possession of financial strength, cognate experience in crude oil business as well as competence to deliver on mandate.

NNPC denies collecting signature bonuses from oil companies.

The Nigerian National Petroleum Corporation, NNPC, has said that it is not involved in the collection of signature bonuses paid by oil companies to the Federal Government upon their successful bid for oil blocks.

Speaking on the role of NNPC in the oil revenue collection process at a hearing of the House of Representatives ad-hoc Committee on Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs), the Group Managing Director of NNPC, Maikanti Baru, said the corporation had no
role in the collection of signature bonus.

A statement by Ndu Ughumadu, NNPC spokesperson, Tuesday, said the GMD who was represented by the Corporation’s Chief Operating Officer, Upstream, Bello Rabiu, noted that it was the Department of Petroleum Resources, DPR, not the NNPC, that was charged with the responsibility of taking receipts of signature bonuses and royalty.

The NNPC boss, according to the statement, explained that the arrangement allowed NNPC to lift the royalty oil from Production Sharing Contracts, PSCs, and remit the proceeds to the DPR, adding
that confirmation and reconciliation of royalty payments to the sister agency were carried out at the monthly meeting between the Office of the Accountant General of the Federation and revenue generating agencies.

“NNPC assured the Ad Hoc House Committee that it would furnish it with all pieces of information on its royalty remittances from the PSCs to the DPR from 1992 till date,” the statement said.

On his part, Chairman of the committee, Gideon Gwani, said the committee decided to invite all the agencies involved in the collection of oil revenues and the Central Bank of Nigeria (CBN) to
resolve the claims and counter-claims regarding the whereabouts of some signature bonuses and other revenues from some OPLs and OMLs.

He explained that the committee was mandated by the House of Representatives to investigate the award of all OPLs and OMLs granted to oil companies by the Federal Government, to, among other things, ascertain whether due process and guidelines for the acquisition of
oil and gas asset were complied with.

Other agencies invited for the hearing included the DPR, CBN, Office of the Accountant General of the Federation and the Petroleum Training Development Fund, PTDF.


Source: Premium Times

NNPC: Inferno at Suleja Depot will not cause fuel scarcity.

The Nigerian National Petroleum Corporation (NNPC) says the fire incident at its Suleja Depot, will not lead to fuel scarcity in Abuja, Niger, Nassarawa and other parts of the country.

The corporation said the fire incident which affected a truck at the Suleja Depot at about 4am on Sunday will by no means affect supply of petroleum products in the country.

Luke Anele, the managing director, Nigeria Pipeline and Storage Company (NPSC), said a team of NNPC and Niger State Fire Service officials rapidly put off the fire, affirming that no depot equipment was damaged during the inferno.

According to a statement by Ndu Ughamadu, the NNPC spokesperson, the truck was burnt at the sump pit of the Suleja Depot while evacuating mixed products meant to be decanted to the slop tank.

Anele clarified that the fire incident did not affect the loading section of the depot, assuring that normal loading, bridging and dispatch of products have continued.

“Facilities in the depots are in good shape,” Anele claimed.

NNPC assured the public of adequate sufficiency in products, urging motorists and other consumers not to engage in panic buying.

NPSC is a subsidiary of NNPC which manages pipelines, depots and pump stations among others across the federation.

FG will NOT increase pump price of petrol, says NNPC

The Nigerian National Petroleum Corporation (NNPC) has advised Nigerians not to engage in any panic buying of petroleum products.

Ndu Ughamadu, spokesman of the corporation, issued a statement late Wednesday to dismiss the report of a likely increase in the price of the products.

He said the corporation had a 1.3billion litres stock of premium motor spirit (PMS), otherwise called petrol, which is sufficient to serve the nation for more than 38 days.

“This plea comes on the heels of reports that some motorists have begun panic buying of petrol, following rumours that the government is about to increase the pump price of the white product from N145 per litre,” the statement read.

“NNPC wishes to assure Nigerians that there is no iota of truth in the rumour that government is scheduled to adjust pump price of petrol.

“Indeed, with the resumption of production by the Corporation’s three refineries in Kaduna, Port Harcourt and Warri, complemented by imports, there is enough stock of PMS, automotive gas oil (AGO), diesel and kerosene.”

Ughamadu said Anibor Kragha, NNPC’s chief operating officer of the refineries, explained the state of refineries to lawmakers when he appeared before the senate on Wednesday.

“Mr. Anibor Kragha briefed the senate committee on petroleum downstream in a presentation on the current status of the refineries at the National Assembly Complex in Abuja,” he said.

“In the presentation, Kragha told the legislators that the nation’s three refineries produced additional volumes of 4.6 million litres of kerosene and 7.7 million litres of diesel, in addition to millions of litres of petrol being refined daily at the nation’s refineries.

“The assurances of availability of stock by the NNPC Chief Operation Officer of the Refineries yesterday still stand.”


Source: The Cable

Cooking Gas: NNPC, Sahara Energy unveil steps to ensure steady supply

The Nigerian National Petroleum Corporation, NNPC, has unveiled two dedicated vessels to help provide a permanent solution to the cooking gas supply logjam in the country.

The corporation said its joint venture company, West Africa Gas Limited, WAGL, in partnership with Sahara Energy, was unveiling two liquefied petroleum gas, LPG, vessels in Ulsan, South Korea to ensure uninterrupted supply of the commodity to the market.

The corporation’s spokesperson, Ndu Ughamadu, described the vessels as “the game changer in the supply network of the gas subsector.”

Mr. Ughamadu said the NNPC Group Managing Director, Maikanti Baru, who spoke at a pre-naming event in South
Korea on Monday, expressed delight that the venture established in 2014 had started recording success within a short span.

He described the unveiling of the two vessels as a significant milestone to boost LPG supply business in Nigeria.

Mr. Ughamadu said as is customary for ships to be named by the “spouses or sponsors,” often referred to as ‘godmother of the vessels’, the Group Managing Direcror, GMD, and the chief operating officer, COO, in charge of Gas & Power would perform the naming ceremony.

He said WAGL JV, which was incorporated in March 2013, would serve as the special purpose vehicle for the off-take, marketing and trading of Natural Gas Liquids, NGLs across Africa and beyond.

“The JV is to be run by two companies, NNPC LNG Ltd, a wholly-owned subsidiary of NNPC, and Sahara Energy’s oil and gas trading arm, Ocean Bed Trading Ltd (BVI),” Mr. Ughamadu explained.

“The Company is expected to take the delivery of two vessels- Halls 8182 and 8183 – from the renowned Korean ship building company,? Hyundai Mipo Dockyard Limited on Tuesday,” he said.

In the past three weeks, consumers of cooking gas have grappled with increase in the retail price of the commodity as a result of supply shortage.

There were reports of a hike by over 57 per cent in the cost of refilling cooking gas cylinders, with consumers paying a price tag of about N5,500, from the previous N3,500 for the 12.5 kilogramme bottle in some parts of the country, including Abuja.

But, the Nigeria Liquefied Natural Gas company, NLNG, which is responsible for producing and supplying the commodity from its facility in Bonny Island in Rivers State, said the scarcity was a temporary disruption in supply as a result of the inability of its vessels to discharge their consignments at the Apapa gas receiving facilities in Lagos.

“The delay, coupled with jetty unavailability, resulted in temporary product shortages in the market,” the company’s General Manager, External Relations, Kudo Eresia-Eke, explained.

He blamed the situation on the priority attention by the authorities at the receiving facilities in Apapa, which are multi-use terminals, to vessels discharging other petroleum products, including petrol, diesel and household kerosine.

NNPC resumes loading of petroleum products as kerosene scarcity continues

The Nigerian National Petroleum Corporation, NNPC, says loading of petroleum products has resumed in its depots across Nigeria.

Ndu Ughamadu, the corporation’s spokesman, said resumption of activities at the depots followed the suspension of a strike action by the National Union of Petroleum and Natural Gas Workers, NUPENG.

PREMIUM TIMES had reported that scarcity of kerosene, a product used by millions of largely poor Nigerians for cooking, hit major cities in Nigeria, causing huge increase in price.

The situation caused some residents to turn to alternatives such as firewood and cooking gas.
Three of the most affected cities are Kaduna and Zaria in Kaduna State and Calabar in Cross River State.

But NNPC in its statement on Saturday noted that with the resumption in production of diesel and kerosene by the nation’s three refineries located in Port Harcourt, Kaduna and Warri, Nigerians should expect the seamless flow of petroleum products to resume.

While pledging its commitment to sustaining harmonious relations with industry unions, the NNPC urged Nigerians not to engage in panic buying as there is adequate supply of white products to meet their needs nationwide.

The corporation, according to the statement, also called on members of the public and other stakeholders to refrain from any act that could impede the supply and distribution of petroleum products in the country.

Meanwhile, checks by PREMIUM TIMES on Saturday revealed that the scarcity of kerosene has crept into some parts of Lagos State.

When our correspondent visited filling stations at Surulere, Yaba and Ikeja areas, none of the stations had kerosene. There were long queues at the gas sections of the stations, as consumers resorted to available alternatives.

Many consumers lamented the scarcity of the product, calling on government to find lasting solutions to the problem.

“This queue is terrible, and the cost of refilling gas too is now slightly increased. A 3kg gas is now refilled at N1,300 as against the N1,000 it used to be. This is not okay,” Yinka Adebajo, a buyer at one of the filling stations in Ikeja, said.

A resident of Surulere, Anne James, said, “There is no kerosene anywhere around here; some of us cannot afford to buy gas. This is unacceptable.”

Earlier, in an interview, Mr. Ughamadu had said that ‘unscrupulous’ oil marketers were responsible for the scarcity and the hike in the prices of kerosene and cooking gas.

Efforts to speak with Chinedu Okonkwo, President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, was futile as his phone number was not reachable. He did not respond to repeated messages sent to the number either.

50 companies bid for NNPC’s boat supply contract

The Nigerian National Petroleum Corporation, NNPC, on Sunday in Abuja said 50 companies had submitted bids for the supply of sea worthy tug boats on charter basis.

NNPC, in a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said the boats would be for the maritime operational requirements of the NNPC in Lagos, Warri and Port Harcourt.

According to the spokesman, the public opening of the bids at the NNPC headquarters had in attendance representatives of the bidding companies and officials of the Bureau of Public Procurement, BPP.

Other agencies of government represented were the Department of Petroleum Resources, DPR; Nigerian Extractive Industries Transparency Initiative, NEITI; Nigerian Content Development and Monitoring Board, NCDMB; and some members of the civil society as observers.

He said that successful companies would be engaged on a two year term contract in the first instance with an option of renewal for a further one year.

Mr. Ughamadu said winners are expected to provide services which include: aiding the berth and un-berth of all ships operating at the NNPC jetties.

They are to also provide logistics support for safe ship-to-ship operations which covers movement of fenders, horses, documents, rigging and unrigging of fenders among other services.

The statement quoted NNPC’s Group General Manager, Supply Chain Management, Shehu Liman, as saying at the bidding ceremony that NNPC management was determined to instil and sustain “the values of transparency, accountability and integrity in the procurement process.”

Mr. Liman said that the bidding process provided a level playing space for all stakeholders, adding that the entire exercise was in conformity with existing Federal Government legislation on procurement.

He said that the process was also based on NNPC’s standing regulations on procurement to ensure transparency and fairness.

He said services to be rendered by successful companies would include stand-by and positioning of vessels at the Single Point Moring (SPM) buoy among other marine services.

NNPC wants Petroleum Minister empowered to fix royalties

The Nigerian National Petroleum Corporation, NNPC, on Thursday proposed that the Minister of Petroleum Resources be empowered to set payable royalties.

Bello Rabiu, NNPC Chief Operating Officer, Upstream, made the proposal in a presentation to the Joint House of Representatives Committees on the amendment of the PSC Act and an Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri.

Mr. Rabiu said the minister should be empowered to set royalties payable for acreages located in deep offshore and inland basin production sharing contracts through regulations based on established economic parameters.

A statement by the corporation’s spokesman, Udu Ughumadu, quoted Mr. Bello as saying that it was important to effect increment in royalties across all categories to increase government take.

The NNPC chief made the proposal as part of key amendments to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act to enable the Federal Government optimize the collection of royalties and other revenue in deep water oil production activities.

“It is our opinion that the proposal to increase the royalty rate for terrains beyond 1000 metres, from zero per cent to three per cent, is commendable. But it is necessary to also make corresponding adjustments in other categories,’’ he said.

The statement noted that under the proposed PSC royalty regime, the calculation of what is due to government shall be based on production and price to guarantee fairness and balance between PSC contractors and government.

“For Royalty based on production within a tranche of 50, 000 barrels of crude per day, the NNPC is proposing a royalty tranche rate of 8.0 per cent.

“Under a production tranche of 50, 000 to 100, 000bpd, the royalty tranche rate would increase to 15.5 per cent and would escalate to 28.0 per cent once the production surpasses the 100, 000 bopd mark,” the statement said.

According to the statement, to calculate royalty based on price, NNPC proposed that under a $ 50 per barrel price regime, the tranche incremental royalty rate shall be zero per cent but the rate would
increase to 0.30 per cent if the price hovers between the $50 to $100 mark.

In the same vein, a price regime of $100-$130 would attract royalty of 0.20 per cent while an increase of price between $130 -$170 translate to royalty rate of 0.10 per cent. A price regime of $170 and above would attract zero per cent royalty payment.

On the provision of investment tax credit, investment tax allowance and associated cost uplift and capital allowances to PSC contractors, the NNPC proposed an outright scrapping of the incentives.

“It is our opinion that these incentives have outlived their usefulness and are now impediments to the Federal Government’s revenue collection efforts. The use of such incentives can be terminated by an
amendment of section 4 of the Act,’’ the Corporation noted.

The Corporation called on the National Assembly to seek relevant input from the Federal Inland Revenue Service, to resolve the divergent opinions regarding the methodology for the computation of the taxes which would arise as a result of the proposed royalty regime.

On the Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, the Corporation however recommended the establishment of the Museum alone with clear budgetary allocation from the Federal Government under the control and management of the National Commission for Museum and Monuments.

“It is better to refine and upgrade the capacity of the Petroleum Training Institute, in Warri and the National College of Petroleum Studies, Kaduna, in order to avoid duplication of functions and more importantly ensure optimal utilization of funds,’’ the statement said.

NNPC to set up oil and gas museum in Oloibiri

The Nigerian National Petroleum Corporation (NNPC) on Thursday unveiled plans to set up an oil and gas museum in Oloibiri, the historic town where oil was first drilled in Nigeria.

This was disclosed by Bello Rabiu, NNPC chief operating officer, Upstream, who said it was part of plans to increase government revenue.

NNPC presented the Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, and recommended the construction of the museum with clear budgetary allocation from the federal government under the control and management of the National Commission for Museum and Monuments.

“It is better to refine and upgrade the capacity of the Petroleum Training Institute, in Warri and the National College of Petroleum Studies, Kaduna, in order to avoid duplication of functions and more importantly ensure optimal utilization of funds,’’ NNPC said.

Oloibiri had been the centre stage for Nigeria’s oil revolution after it moved away from agriculture.

Oil was first drilled in Oloibiri in 1956 before the nation’s independence.

How we will run Nigeria’s petroleum industry in 2017 – Ibe Kachikwu

The Minister of State for Petroleum, Ibe Kachikwu, says the federal government will pass the Petroleum Industry Bill and revamp the nation’s refineries in 2017.

Mr. Kachikwu who made this known while highlighting the plans of the petroleum ministry for 2017, disclosed that government will dissect the nation’s oil and gas policies for optimum productivity.

He also assured that the ministry will accelerate revenue generation by looking into areas the government could make more money, stressing that the plan will enable it support the 2017 financing.

The minister said that apart from completing all outstanding Memoranda of Understanding, MOU, the government will leverage on the relationship the president has built over time to relate with foreign investors.

Mr. Kachikwu said in addition to trips to the United States and China, he will also embark on a roadshow to the gulf so that the Nigeria will cease to be a  forgotten state and become an active participation block where investment can flow into.

“We are going to receive and complete all the MOUs that we began… the one in China…the one in India… we are going to do a roadshow to the UK…for Europe. We are going to do a roadshow to the U.S. with President Donald Trump coming in,” Mr. Kachikwu said.

While commenting on the activities embarked upon in the outgone year, Mr. Kachikwu explained that the government was able to take away fraud impacted volume by reducing the volume of PMS the nation consumes daily from N50 million litres to N28 million litres.

He assured Nigerians that the nation’s oil industry will be run transparently, as against the opaque manner it was run in the past.

Mr. Kachikwu also confirmed that oil blocks will also be allocated in 2017, to partly fund the budget.

Oil refineries

Commenting on the state of the nation’s oil refineries, the minister said the president has given him a matching order to commence refinery revamp. He reiterated the government’s plan to diversify the refining process so that the refineries can work optimally, noting that the process will begin this year.

Mr. Kachikwu also said that the government will work within liberalisation infrastructure such that it will take away the low hanging difficulties in the industry.

“We will focus on downstream issues. Although we have liberalised, there are still some challenges. The reality is that the marketers are still suffering,” he said.

Niger Delta

The minister also pledged to look into security concerns in the Niger Delta region, stressing that government will ensure that the peace efforts put in place are maintained and improved upon.

“We are going to focus on the Niger Delta. It’s been too long a lingering issue. We are going to work with every aspect of the presidency to try and find solutions to this. We are going to work to stabilise oil production… a lot of work is required.”

Mr. Kachikwu also assured industry players that government will develop agreement and opportunities on international oil companies, IOCs, and partners for better collaboration through engaging policies that will bring investment into the country. He said the ministry will run an oil industry that is at par with its counterparts worldwide; adding that efforts will be strengthened on investor relations.

On oil production, the minister said government will begin for the first time to track oil movement from production to destination, noting that there are too many leakages in the oil production chain in Nigeria.

“This year we are going to commit to trying to find a way of tracking our oil so that from the moment when molecule is produced, to the time when it is sold and where it is sold, we will be able to track that. If we do that, we envisage billions of dollars in savings from the federal government.”

Private sector driven industry

While highlighting the challenges associated with public sector driven system, Mr. Kachikwu pledged to ensure that the industry is driven by private hands in 2017. He said that the industry has always been public sector-led and there have been problems.

He also promised to create a “private sector industry player club” to chart 2017 goals and mark out delivery system.

“Public sector is key to be able to regulate the sector and make sure people are operating within parameters; but ultimately, the infrastructure, investment, services and discipline have to be private sector led.

“We will galvanise the energy of the private sector within the first two months,” he said.

Gas revolution

According to the minister, gas revolution will form a key aspect of the government’s policy for the year and it would boost government revenue.

“Gas revolution will be key. First, we are going to track gas flare and commercialise it so that no more flare happen in this country. We have set a 2020 date for ourselves even though the international fora at the UN had set a 2030 date. We are very aggressive about this, we want to make money from flare,” he said.

Mr. Kachikwu also promised that the government will look at the gas infrastructure that are suffering, complete the investment and get gas in every part of the country because it is key to power delivery.

The minister said the nation has four times volume of gas than oil, adding that even though oil has contributed immensely to the nation’s growth, gas is the future. He explained that gas will provide power, clean energy, and day-to-day burning of fuel at homes.

“For so long we have pretended to be an oil producing nation and yes we were; but Nigeria really is a gas nation with a lot of substantial gift of oil.”

Stakeholders’ relations

The minister promised to give priority to stakeholders’ relation in the year, noting that periodicals will be published to highlight activities embarked upon towards achieving the industry’s goals.

He explained that the efforts will begin with a road show with state governments, adding that oil producing states will be brought together to look at long term dynamic investments areas across the states as well as how they engage companies in their states.

“This year we are going to be open, we are going to be as much the manager of the oil resource as I am going to be. We are going to owe the responsibility to the Nigerian nation to deliver on those blueprints that we have set ourselves to deliver.”

EFCC goes after ex-NNPC bosses over Diezani’s $153m theft

The Economic and Financial Crimes Commission (EFCC) has interrogated five former executive officials of the Nigerian National Petroleum Corporation (NNPC) over the questionable transfer of  $153million from the Corporation’s accounts, The Nation reports.

Those  interrogated so far are two former Group Managing Directors (GMDs) and three former Executive Directors (EDs) whose names were withheld so as not to jeopardise the investigation.

Former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke allegedly ordered the transfer of the money.

One of the former executive directors is said to have admitted playing a role in the transfer of the money, the report said, citing an EFCC source.

“We are however not stopping at this bend because we discovered that some of these officials were used for many illicit transactions,” the source said.

“By the time we extend our investigation to crude oil lifting, you will appreciate the sleaze during the tenure of Diezani as minister of Petroleum Resources. A syndicate was used to perpetrate the fraud in the oil firm.”

According to the report, the interrogation of the former officials was confirmed by a source at the NNPC.

The source said: “This corporation is following the development. The EFCC is on top of the $153million palaver; it has actually been inviting some of our past officials for questioning.

“The good thing is that some of these former officials are still on NNPC’s pension roll. They can be recalled at any time for clarification of some issues.”

The source, however, refused to give names of those quizzed by the anti-graft agency, saying he would have to obtain authorization from the administration and security departments.

On the ruling of a Federal High Court on the $153million, the source said the NNPC cannot react to it without  “getting necessary legal advice.”

“Our board is meeting on the $153million saga and other matters on January 30. What we are doing now is to get the proceedings of the Federal High Court of Friday. We have a very articulate Legal Department which will study it.

“NNPC is a corporation with a board and a chairman. The legal advice will determine our next step after the board’s meeting.

“If the court indicts any former officials, the corporation can still exercise disciplinary control on them,” the source added.

Meanwhile, the EFCC has reportedly started the process of seizing large estate in Yenagoa, Bayelsa State traced to Diezani.

It was gathered that the asset will be placed on temporary forfeiture pending the arraignment and trial of the ex-minister either in Nigeria or in the United Kingdom.

An EFCC source was quoted as saying: “Since we recorded the breakthrough, our legal unit has been working round the clock on how to seek the nod of the court for a temporary forfeiture order.

“We have obtained relevant data from Bayelsa State Geographic Information System.  As a matter of fact, the estate is coded as BGIS/OK/02/16/310 by the agency.

“We will file the required application for the seizure of the estate pending the arraignment and the conclusion of the trial of the ex-Minister. This is a standard benchmark allowed by the law. We are certainly heading for the court.”

On Friday, January 6, a Federal High Court in Lagos ordered the temporary forfeiture of the sum of $153,310,000, that Diezani allegedly siphoned from the NNPC.

The money was said to have been stashed in three Nigerian bank accounts.

NNPC to begin comprehensive rehabilitation of Port Harcourt, Warri, Kaduna refineries.

The Nigerian National Petroleum Corporation (NNPC) has slated a comprehensive rehabilitation of the nation’s three refineries located in Port Harcourt, Warri and Kaduna to achieve optimal capacity utilization for next year.

The Chief Operating Officer (COO), Refineries, of the NNPC, Mr. Anibor Kragha, at the Annual General Meeting of the three facilities in Abuja, yesterday, stated that the corporation was determined to move away from the approach of quick fixes and undertake a comprehensive rehabilitation of the plants.

‘’The plan for next year is to get the comprehensive rehabilitation programme done. The situation is like having three cars in your garage that have not been maintained for 15 to 20 years while you expect optimal performance from them. Changing one fuel pump here, one compressor there is not helpful. What we are doing now is to step back and take a holistic approach and do a full rehabilitation of all the refineries”, Kragha stated.

Meanwhile, after one year of experimenting with non-petroleum revenue for budget financing in the country, the managers of the country’s economy have returned to oil reliance budget financing.

The experimentation with the non-oil revenue sources as the cornerstone of budget financing was undertaken in the current 2016 Federal Budget which implementation is expected to wind down in May next year. It was planned to be led by non-petroleum revenue resources projected to fetch the country N1.45 trillion while oil mineral resources was projected at a cautionary level of N820 billion.

Oil mineral proceeds now have a larger projected revenue target of N1.985 trillion, while non-oil conversely now has a lower projection of N1.373 trillion.

Offering more insight into the policy shift at a briefing yesterday, the Minister of Budget and National Planning, Udoma Udo Udoma, said that revenue expectations from the non-oil window fell grossly below their targets and seriously impinged of the implementation of the 2016 budget.

He said: “ The projected independent revenue was N1.1 trillion as against N0.2 trillion realised during the period. The projected revenue for Customs was N0.3 trillion as against N0.2 trillion realised, while the projected non-oil tax receipts for the 1st – Q3 of 2016 is N0.8 trillion as against N0.5 trillion realised during the period.”

NEITI, BudgITng releases report on NNPC’s monthly financial and operational reports

As part of efforts to present its independent Audit reports in a simple, concise and correct format, NEITI has elicited the support of BudgIT a Non- Governmental Organization known for expertise in open data analysis and communication.


The partnership and cooperation follows series of meetings between the Executive Secretary, Waziri Adio and the organization.


As the wind of openness and transparency continues to blow through the extractive industry, the walls of secrecy are tumbling. NEITI in conjunction with BudgIT has release its report on NNPC’s monthly financial and operational reports.


Click here to VIEW the Report.

NNPC supplies 38.7 million litres of aviation fuel in 6 days to curb scarcity.

The Nigerian National Petroleum Corporation (NNPC) yesterday said it had injected another 28.2 million litres of aviation fuel into the market to curb the current scarcity.

It was learnt that the fresh supply brought the total number of aviation fuel influx into the market, from NNPC alone, to 38.7million litres in the last six days.

But the influx has not assuaged the crippling fuel shortage at airports nationwide, as most passengers, till yesterday afternoon, were still stranded at major terminals.

NNPC’s Group Managing Director, Dr. Maikanti Baru, said in the build-up to the Yuletide period, the corporation had exceeded the demand of marketers, noting that it had imported about 38.7 million litres, representing about 26-day sufficiency.

He explained that on December 14 this year, the corporation completed the discharge of 8,800MT, which represented about 10.6 million litres to major terminals in the country. In addition, as at yesterday, 23,500MT representing about 28.2 million litres, were being discharged to the major oil terminals.

In order to sustain the tempo, the NNPC has also secured the supply of additional 30,000MT vessel of ATK (36 million litres) expected to berth Nigerian shores before the end of the year.

The NNPC said it had over 40-day sufficiency for Premium Motor Spirit (petrol), PMS and adequate volumes of Automated Gas Oil (Diesel) AGO and DPK to satisfy national demands throughout the yuletide period and beyond.

Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Obafemi Olawole, recently assured that the marketers had enough supplies till the end of the year, until scarcity erupted from the operators’ end.

Nigeria saves N15.4 billion monthly from fuel subsidy removal – Osinbajo

Vice-President Yemi Osinbajo says the fuel subsidy removal has removed a burden of not less than N15.4 billion monthly from the Federal Government.

Mr. Osinbajo said this in Abuja on Thursday at the 2016 presentation of scorecard of the Ministry of Petroleum Resources and Agreements Signing ceremony for Joint Venture Cash Calls (JVC) exit.

Represented by the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, Mr. Osinbajo said that $15 billion would be injected into the sector.

”I am pleased to be the special guest of honour at the agreements signing ceremony for Joint Venture Cash Call exit and the announcement of $15 billion investments to be done in the sector.

”The oil and gas sector remains very critical to the stability and growth of our economy as it accounts for about 90 per cent of earnings.

”Amongst others, the downstream sector has been deregulated with the elimination of petroleum subsidy.

”This policy has removed from government, a burden of not less than N15.4 billion monthly,” he said.

The vice-president said that government had taken steps to raise the domestic refining capacity for petroleum products by repairing the existing refineries.

”We have also licensed modular refineries and support the development of private refineries one of which is a 650,000 barrel per day capacity,” he said.

According to him, one of the refineries is nearing completion, adding that when completed, it will restore “our pipeline to facilitate crude and products transportation.”

He said that the Federal Executive Council (FEC) had approved new measures aimed at eliminating the burden of JVC and easing future payments in the upstream sector.

Mr Osinbajo commended the World Bank on the global initiative to secure the environment by ending and commercialising gas flares.

”It will boost the discharge of international obligations by Nigeria on climate change and contribute to our national power generation capacity”.

He urged other ministries to come up with score cards of their performances in the last year.

Also speaking, the Minister of State for Petroleum, Ibe Kachikwu, said that when he took over the leadership of the ministry, oil sector was losing N1.2 trillion every year and fuel scarcity was common.

”Today, we have a situation where refined petroleum consumption has gone down from an all-time high of 40 million litres a day to about 28 million litres a day.

”On cash call, the issue was how long the upstream was going to continue to bleed as investments were drying up and activities grinding to a halt.

”For the first time in 2017, you are going to see the Ministry driving an effort with the Department of Petroleum Resources to find leakage areas, essential to cover the gap in the 2017 budget.

”In the Niger Delta, we have brought the all-time low production of 1.3 million barrels per day (mbpd) to 1.8mbpd but for some minor incidents it would be closer to 2.1mbpd or 2.2mbpd.

”We set a zero militancy target in 2017 and we want anything that needs to be done should be done,’’ he said.

On Organisation of Petroleum Exporting Countries, OPEC, he said that he was thrust into the chairmanship of the organisation immediately he was appointed.

He added that he said he had to convince four countries to serve as engine rooms of finding solutions and not bringing the national problems to OPEC.

In her address of welcome, DJamila Shua’ra, said that ”the year started with refineries producing below capacity, high demand for petroleum products and insufficient supplies at depots, forex shortages.

”However, President Muhammadu Buhari believed in our team and our collective ability to find solutions.

”Although, it is not Uhuru yet, there are many more rivers to cross. As we speak, aviation fuel remains a challenge.

”We are yet to pick maximum capacity in our refineries and there is need for more investors to fund massive infrastructural development in the sector”.

The News Agency of Nigeria reports that awards were presented to an outstanding staff each from subsidiaries of the ministry.

NNPC doesn’t know how many oil blocs Nigeria has — COO

The Chief Operating Officer of the Nigerian National Petroleum Corporation set tongues wagging when he revealed to the House of Representatives that he did not know the number of oil blocks Nigeria has.


Bello Rabiu appeared before the House committee investigating the controversial Malabu oil deal and OPL 245 on Tuesday afternoon.


After telling the committee that the NNPC was not directly involved in the controversial deal, Mr. Rabiu was asked to give details of Nigeria’s oil fields.


Razak Atunwa, the chairman of the committee, said he posed the question because he believed it would help lawmakers to determine Nigeria’s oil revenue prospects amidst the lingering financial crisis.


“I don’t know the answer to that question,” Mr. Rabiu said.


Mr. Rabiu said statistics about oil prospecting licences and oil mining licences were not kept with the NNPC, but the Department of Petroleum Resources and directed lawmakers to contact the department for the information.


Mr. Rabiu also told the committee that the NNPC Act gave the Minister of Petroleum the absolute power to exercise discretion on award of oil licences.


“The NNPC Act, even till today, clearly stated that the minister can award oil exploration licences at his discretion,” Mr. Rabiu said.


The licence for the OPL 245 oil field was awarded to Malabu Oil and Gas Ltd. in April 1998 by a former Minister of Petroleum, Dan Etete. The oil firm was later traced to the minister.

$1.6 billion oil scam: Former NNPC boss testifies against Jide Omokore

The trial of the embattled chairman of Atlantic Energy Brass Development Limited and Atlantic Energy Drilling Concept Limited, Jide Omokore, by the Economic and Financial Crimes Commission, EFCC, got underway Thursday.

The case, heard by Justice Nnamdi Dimgba of the Federal High Court sitting in Maitama, Abuja, opened with the prosecutor presenting its first witness, Andrew Yakubu, a former General Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC.

Mr. Yakubu, formerly a co-defendant prior to the amended charge, shed light on the nature of his engagement with the NNPC, which involved the strategic direction of NNPC and all its subsidiaries, including the Port Harcourt refinery, Warri refinery, Kaduna refinery, Pipelines and Products Marketing Company Limited (PPMC), Nigerian Petroleum Development Company (NPDC), Integrated Data Services Limited (IDSL) and National Petroleum Investment Management Services (NAPIMS).

According to him, “in 2013 to 2014, the MD of NPDC, Mr. Victor Briggs (the fourth defendant) came to me and raised some concerns in relation to assets OML 60 series in relation to the strategic alliance agreement between Atlantic Energy Drilling Concepts Limited and NPDC, citing inability of Atlantic Drilling to meet payment obligations. He told me that he was already looking into the issue and will get back to me. I told him to stop further lifting until the issue is reconciled. I called the Group General Manager of Crude Oil Marketing Department (COMD) and told him to stop further lifting until the issue had been resolved”.

He added that, “the Minister of Petroleum Resources wrote a letter to the Permanent Secretary, Ministry of Petroleum Resources and I, and set up a committee to investigate the issue. The fourth defendant (Briggs) was removed from NPDC and reassigned to IDSL. Mr. Membere, who was the Director-General, Exploration and Production; Tony Madichie, the Company Secretary in charge; Acting EG, Dr. Dawa and Company Secretary, Mr. Ike, were also part of the committee that compiled the report. Before they completed, however, I was also retired from service.”

Regarding the complicity of NAPIMS in meeting the funding requirements of the assets, Mr. Yakubu stated that, “We got to know later that NAPIMS made a cash call but I also issued instructions for them to stop. I also made sure that whatever fund that NAPIMS had paid was refunded to the federation account by the NNPC”.

At this point, the defense counsel, Rafiu Lawal-Rabana, applied for an adjournment for cross-examination and he was obliged.

The matter was consequently adjourned to January 20, 2017 and February 3, 2017 for continuation of trial.

Mr. Omokore, who was on November 21, re- arraigned alongside Victor Briggs, Abiye Membere, David Mbanefo, Atlantic Energy Brass Development Limited and Atlantic Energy Drilling Concepts Limited, is standing trial on a 9-count amended charge of criminal diversion of about $1.6 billion alleged to be proceeds of petroleum products belonging to the federal government.

Bourgeoning Cabals In The Oil Downstream Sector: Why President Buhari Must Act Now By Dayo Williams

Since agriculture was advertently or inadvertently side-lined by successive Nigerian governments, most especially when the commercial production of crude oil started in the 1950s, the petroleum sector has been the mainstay of the nation’s economy till today.

In spite of the claims of diversification of the economy by various governments at one time or the other, crude oil remains the main generator of the country’s revenue.

Regrettably, this all-important sector of the economy has been dominated and hijacked by some inglorious cabals who have been feeding large on the weak institutions in the sector from time immemorial.

From the information available to this writer, successive governments have tried to checkmate the nefarious activities of these cabals, but it appears each time the government tries, the cabals always map out new strategies to beat the government. In summary, they are always ahead of the government.

The cabals in the downstream sector could be likened to the proverbial cat with nine lives. The downstream sector has always been in coma even though government always strives to ‘’inject life into a sector that is being dragged back,’’ an independent marketer, who pleaded anonymity for fear of being attacked by the cabals, confided in this writer in the course of gathering information for this piece.

He said: ‘’The efforts of the current government of President Muhammadu Buhari must be applauded, but there is an urgent need to intimate the government on the new way the cabals are thwarting and frustrating the genuine efforts of government at restoring sanity to the hitherto derelict downstream sector that is notoriously known for its corruption, and less popular for playing its expected role of making quality petroleum products available to all Nigerians.”

Still, he asserted: “Although, whenever there is fuel scarcity in Nigeria, members of the public tend to blame the Independent Petroleum Marketers Association of Nigeria (IPMAN). It is true that we control about 85 per cent of petroleum outlets across the country; it is always our desire to make petroleum products available because that is the only time we make profit. We do not make profit when the products are not available.’’

He said that the Nigerian National Petroleum Corporation (NNPC), in collaboration with some cabals in the industry, always wants to create artificial scarcity because ‘’the more the product is scarce, the more the kickback accruable to them.”

Another independent oil marketer, who has been a key player in the downstream sector for decades, said that inasmuch as members of IPMAN are ready to cooperate and support the anti-corruption efforts of the federal government, the government should not be oblivious of certain realities in the sector.

He decried the spate of corruption in the sector and predicted looming scarcity of petroleum products by December this year, if government did not take adequate measures. According to him, “we have to be fair to the government of President Buhari; he has brought relative sanity to the sector. However, the government needs to know that there are some ‘big boys’ in the sector that are still working tirelessly to sabotage the efforts of the government.”

Continuing, he said: “sometime in March, 2016, the NNPC unilaterally and for unfathomable reasons, abruptly withdrew the status of some independent oil marketers through an internal circular but, however, reserved the status for only major marketers and few independent credit oil marketers.”

Based on my findings, in the past, government used to provide credit facilities to independent petroleum marketers with stringent conditions, but the NNPC, through its internal memorandum, has abolished these arrangements and replaced it with a draconian arrangement which favours only the few but powerful oil cabals.

The independent marketer said the decision by the management of NNPC was such that the major marketers and the other few independent marketers, who are beneficiaries of the new draconian policy of the NNPC,  are given monopolistic right over petroleum products marketing in the country, saying ‘’the cabals are re-strategizing, in flagrant connivance with some bad eggs in the NNPC.’’

“There is imminent scarcity of petroleum products. Christmas is around the corner and the cabals are working hard to create artificial scarcity in order to give this government a bad name. The sufferings and the pains of the masses are their gains. The cabals in the downstream sector are used to free lunch and the day subsidy was removed was the day this free lunch was taken away from them.”

“Ironically, the NNPC claims that it wants to open-up the market but this market is only open to few cabals. How can the NNPC open-up the market by according credit right to few major marketers? I have over 40 distribution outlets across the country and about 1000 Nigerians make their livelihood from my chain of distribution. For over 20 years, we have never defaulted our credit status. One of my distribution outlets in the Federal Capital Territory, Abuja, requires a full tank on a daily basis to service our customers. A tank is over 30,000 litres. In all, we require 7 tanks to meet up with the weekly demands of our customers. And for weeks, we have not had supply and this is what the cabals really want. They want queues to return to our filling station, the independent marketer said.

“For weeks, my distribution outlets that service thousands of Nigerians do not have petroleum products. The era of scarcity is gradually returning. Christmas season is fast approaching. The government must act fast,” an independent marketer warned, in a phone exchange with me.

“Although the NNPC claims that it has withdrawn credit sales to all oil marketers across the country, but there are strong indications that the corporation has hand-picked major marketers and few independent oil marketers and accorded them the right to access credits from the government. By according credit right to few oil marketers, the NNPC is perpetrating the monopoly it claims to have curtailed,” he said resignedly.

NNPC set to give environmental preservation priority

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru has stated that the Corporation will henceforth place priority on the preservation of the environment in its business operations.


He added that the NNPC would continue to execute and encourage policies and programmes that enhance health, safety and preservation of the environment in alignment with the conventions of the United Nations Environment Programme (UNEP).

Dr. Baru stated this while delivering the keynote address at the 2016 Health, Safety and Environment (HSE) week with the theme: “HSE Best Practice – A Requirement for Business Profitability and Sustainability,” at the NNPC Towers in Abuja.


“Business sustainability requires processes in which we manage our financial, social and environmental risks, obligations and opportunities to meet the needs of the present without compromising the needs of the future generation. This will ultimately save lives, ensure sustainable development while supporting economic growth and happiness for the future generation,” he said.

Frustrated by pipeline vandals, Buhari seeks crude oil supply from Niger Republic

The Nigeria Petroleum Corporation, NNPC, is exploring the possibilities of piping crude oil from Niger Republic for refining in Kaduna, NNPC Group Managing Director, GMD, Maikanti Baru, said on Friday.

Mr. Baru who visited on Gov. Nasiru El-Rufa’i in Kaduna, said President Muhammadu Buhari was personally committed to the project.

He said it was important to explore alternative crude supply to Kaduna Refining and Petrochemical Company, which has been affected by vandalism of pipelines and age.

“Due to challenges with the aged refinery and crude oil pipelines that had been breached severally, the operations of the refinery has been epileptic.

“This we are determined to resolve through various intervention methods including evaluation of alternative crude oil supply from Niger Republic through building of a pipelines of over 1, 000 kilometers from Agadem to Kaduna.

“That efforts is being championed by Mr. President himself.

“We have already started engagements with the Nigerien Minister of Petroleum and the Chinese that are operating the field at Agadem.”

Mr. Baru also pledged to sustain efforts at enhancing energy supply to power industries in Kaduna through the development of Ajaokuta-Abuja-Kaduna-Kano gas pipeline, as well as development of power plants in Kaduna and Abuja.

“These projects will be given special attention during my tenure,” he said.

The GMD disclosed that the College of Petroleum Resources in Kaduna would start operation on January 1, 2017, and thanked the state government for undertaking to construct internal roads in the school.

He urged the governor to sensitise residents of Kaduna against sabotage of the nation’s oil assets due to its adverse effect on the community, environment and national economy.

Responding, Mr. El-Rufa’i said the corporation has assumed a new toga since Mr. Baru took over, adding that prompt remittances by the corporation to the Federation Account has remained consistent.

“We are very interested in the NNPC because how well you do affects our lives as states and as a country.

“This is why many of us are quite gratified you are in charge, and already results are beginning to show as remittances to the Federation Account are higher, state governors are happier than before,” he said.

The governor pledged to support the gas pipeline project because of its tremendous potentials to the social and economic stability of the state.

He expressed confidence that ongoing reforms of the NNPC would strengthen the corporation to serve Nigeria better.

Mr. El-Rufa’i assured that the government would tackle issues of water supply to KRPC and pipeline security through massive enlightenment and treating those engaged in illegal activities as criminals.

NNPC May Adjust Petrol Pump Price On Falling Cargo Rates- Report

The Nigerian National Petroleum Corporation (NNPC) may undertake a downward review of the pump price of petrol in its retail outlets across the country.

It was gathered from an authoritative source within the corporation in Abuja that this was possible from a reported consistent drop in the historical price of petroleum cargoes from about $600 per metric tonne to an average of $440 per metric tonne.

NNPC had recently adjusted the pump price of petrol at its outlets, thus raising fears of a possible hike. The development also followed claims in August by its former Group Managing Directors that the government’s pricing modulation framework was not economical for the downstream petroleum business.

The source however stated that the cargo price is one of the key elements often considered by the Petroleum Products Pricing and Regulatory Agency (PPPRA) in its calculation of the template for petrol pump price.

This, he noted, has been on the downward trend and could necessitate the corporation reviewing its pump price to reflect the market realities. The other key element being the foreign exchange has been left floating by the Central Bank of Nigeria (CBN).
He also explained that the corporation has spent a lot of energies securing its petrol supplies and distribution networks to keep the country from what he described as system sabotage during the yuletide season by some marketers.

“One of the things we wanted to achieve is to ensure that we do not have queues in this time of the year and a lot of the energies have been spent on securing that. If you look at the market trend at the moment, we have been fortunate. Historically, it is this time of the year that cargo prices are about $500 to $600 per metric tonne, and this is one of the two key elements on the PPPRA templates that nobody controls – it is down to market forces,” he said.

According to him, “The cargo price is usually between $500 and $600 per metric tonne, but this year, we have even had cargoes for $440. The pricing has been good. Our network is a mix of the NNPC and others, because of the open market forex policy, the cost of doing business for others is higher. What NNPC retail has done is to adjust the price to accommodate the additional expense of doing business around this time of the year
“The N145 per litre is not just the margin but includes freights and all sorts of other expenses; we did that to accommodate the expenses and as we get cheaper and cheaper cargoes, we will adjust our prices in accordance.”

Read More: thisdaylive

NNPC, Shell sign MoUs with 8 Nigerian banks.

Shell Companies in Nigeria, supported by the Nigerian National Petroleum Corporation, NNPC, have signed Memoranda of Understanding (MoUs) with eight Nigerian banks under the refreshed Shell Contractors’ Support Fund, the latest milestone in efforts to improve access to finance for Nigerian vendors and suppliers in the oil and gas industry.

Under the MoUs signed in Lagos in November, Access Bank, Skye Bank, Zenith Bank, Stanbic IBTC Bank, First Bank, Standard Chartered Bank, First City Monument Bank and Guaranty Trust Bank have set aside $2.2billion for contract execution by Nigerian firms.

The scheme provides support for contractors to enable them finance projects executed for Shell Companies in Nigeria in line with the aspirations of the Nigerian Content Act. To access these funds, the contractors must have a valid purchase order and meet the banks’ risk assessment criteria. This refreshed version is in response to market realities and will offer loans faster and at cheaper rates.

“Supporting SMEs under this scheme is for the mutual benefit all the parties,” said Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Ltd (SPDC) and Country Chair, Shell Companies in Nigeria at the signing ceremony in Lagos.

“While the scheme reduces the pressure from requests for advance payments from contractors on us, it also ensures optimum delivery by our contractors, leaving the banks with a de-risked client base in addition to the comfort of domiciliation of payments.”

The Finance Manager, Nigeria and Gabon, Guy Janssens, added that funding is key to enable contractors deliver and grow. He also urged the banks to make the scheme work.

The Managing Director, Shell Nigeria Exploration and Production Company (SNEPCo) Bayo Ojulari, advised the contractors to perform in order build trust and grow.

The Group General Manager, NAPIMS, Dafe Sejebo, who was represented by Bunmi Lawson, implored the banks to make the loan facilities available to the vendors when they come for them.

In the same vein, the Chairman of the Petroleum Technology Association of Nigeria, PETAN, Mazi Okoroafor, enjoined the banks to be realistic in their demands in order to engender easier access to the funds.

Responding, one of the contractors, Moritz Abazie of Strides Energy and Maritime Limited, requested that the rates charged should be comparable to that for credit sourced overseas so that they could fairly compete with foreign firms in bidding for jobs.

The idea of a Contractor Funding Scheme started in 2011 with the Shell Kobo Fund, which gave rise to the Shell Contractor Support Fund in 2012. The scheme has been redesigned to address the current economic exigencies and to align it with stakeholder needs by merging the two initial initiatives. To date, the six participating banks have disbursed a total of $1 billion to over 220 vendors.

In 2015, 93 per cent of all contracts awarded by Shell Companies in Nigeria were undertaken by Nigerian companies amounting to $0.9 billion.

Just In: Buhari inaugurates boards of NNPC, others.

President Muhammadu Buhari on Friday inaugurated the governing boards of three parastatals of the Ministry of Petroleum Resources.


The parastatals include the Nigerian National Petroleum Corporation, Nigerian Content Development Monitoring Board and the Nigeria Nuclear Regulatory Authority.


All the boards have the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, as their chairman.


Although he admitted that the task before the boards’ members are enormous, Buhari charged them to be alive to their respective responsibilities.


Kachikwu, on behalf of others, promised to work hard to justify the confidence reposed in them.


Details later…

NNPC sets January 1 deadline to end $9 billion JV funding.

With effect from January 1, 2017 the Federal Government will cease to fund the Joint Venture Cash Calls estimated at $9 billion yearly.


The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, made this known yesterday in Lagos at the yearly conference of the Nigerian Association of Petroleum Explorationists (NAPE) .


According to Baru, aside from the inherited arrears estimated at over $6 billion, the underfunding of NNPC Cash Calls is estimated to be about $2.5 billion in 2016 alone.


The corporation had adopted the same alternative funding of $1.2 billion multi-year drilling financing package for 36 oil wells under the NNPC and Chevron Nigeria Limited Joint Venture. The success of the NNPC/Chevron JV alternative funding may have compelled the corporation to adopt the same process for other International Oil Companies (IOCs) Cash Calls obligations.


Baru explained that the NNPC was exploring alternative funding mechanism that allows the joint venture business finance itself by retaining its operating costs and capital allowances in order to sustain and grow the business.


“The import of the above is that the joint ventures will relieve government of the cash call burden by sourcing its funds for its operations estimated at $7 to $9billion yearly,” he added.


According to the GMD, where the fiscal costs for any year are not sufficient to fund the budgetary requirements of the joint venture, part of the profit margin could be retained to fund the budget and where necessary, external financing could also be sought to finance commercially viable and bankable capital projects without recourse to the government treasury.


He stated: “The JV cash call exit model we are pursuing guarantees government most of the revenue that normally accrues to it from the JV operations by lifting the Royalty and Tax Oil upfront. This contributes 75 per cent to 85 per cent of the accruable revenues to government. Consequently, the effect on government take would be minimised. We are working assiduously to kick-start this from 1st January, 2017.


“The truth is that, it is difficult to deliver the volumes without adequate funding. With an average JV cash call requirement of about $600 million a month, coupled with flat low budget levels over the past years, this had led to underfunding of the industry by government, which has stymied production growth.


“Consequently, managing these funding issues is part of our most immediate challenge. In contrast, production from the Production Sharing Contracts (PSCs) arrangements where NNPC does not provide the funding for the production has increased almost proportionately to the JV production decline over the same period, thereby making the national oil production relatively flat.”


Baru noted that, Unfortunately, unlike the PSC arrangements, the JV system provides more revenue to the government through equity lifting and higher royalties and taxes due to the higher fiscal take from onshore and shallow waters fiscal terms. The low crude oil price regime further amplifies this yearly.


On the security challenges in the Niger Delta, Baru appealed to those behind infrastructure vandalism to desist from the acts of sabotage.


He said that the destruction of critical energy infrastructure was a great threat to the environment and the economy.


He disclosed: “In 2016 alone, we have recorded over 1,500 cases of vandalism of our pipelines, the cost of repairs is quite mind-boggling.


“What are we doing? During my visit to the Chief of Defence Staff a few weeks ago, I informed him of my intention of setting up an all-inclusive advisory council on security mainly to address all security and host community agitations at the industry level.î


In his welcome address, NAPE President, Nosa Omorodion said weak oil prices had cut billons of dollars from revenue streams and continued to put pressures on corporate survival across companies.


“Indeed, only the fittest will survive. Global oil politics and negotiations have done very little to lift the industry out of its current predicament. A lot more trade-off is still required particularly from the big players in ensuring that our industry gets back on the path of growth, he said.

NNPC Redeploys Staff; Promotes 108, Demotes One

The Nigerian National Petroleum Corporation, NNPC, has undertaken a massive reorganization, with the redeployment of key officials.

In the redeployment memo obtained from the NNPC, yesterday, while 108 staff were promoted from Manager and General Manager positions to General Manager and Group General Managers respectively, one was demoted from Executive Director to Group General Managers (GGM).

Why no reason for the redeployment was stated, sources in the NNPC said it was part of ongoing restructuring in the NNPC and as key measures to cut cost, boost profitability and help make the corporation commercially viable.

Specifically, Mr. Chidi Momah, who was formerly GGM, Company Secretary and Legal Adviser, was redeployed to become Secretary to the NNPC, while Hadiza Commasie was appointed Legal Adviser; A.A. Adamu, Sarah Ndukwe and O. Omigie were appointed General Managers in charge of Commercial Law, Litigation & Property Law and Corporate Law respectively.

Esther Ogbue retained her position as Managing Director, NNPC Retail; Felix Wono, Executive Director, Pipeline and Farouk Ahmed, Managing Director, Nigeria Products Marketing Company.

Ndu Ughamadu was redeployed from GGM, Government and Labour Relations to GGM Group Public Affairs Department; Adewale Ajayi Oladapo, formerly GM, Technical Services Limited, was reappointed GM, Capital Projects, while Animashaun Onipeko , formerly GM, Companyb Secretary/Legal, Nigerian Petroleum Development Company, NPDC, was reappointed GM, Board Support.

Okonkwo Chukwuma, formerly GGM, Liabilities Management was reappointed Managing Director, NNPC Capital; Wunti Maijama’a was appointed GM/technical Assistant Downstream from a former position of GM, Efficiency Unit.

Meanwhile, the NNPC posted a trading deficit of N17.18 billion for the month of September 2016, dropping further from a deficit of N11.22 billion recorded in August.



All You Need To Know About The Proposed Scrapping Of NNPC, DPR, PPPRA & Single Oil Sector Regulator

There is an air of upset in the oil sector following the plan by the government to scrap regulatory authorities including the Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR) and Petroleum Products Pricing Regulatory Agency (PPPRA).

This was contained in the draft National Oil Policy document released by the Ministry of Petroleum Resources.

The regulatory bodies will be unified into a single agency to be known as Petroleum Regulatory Commission (PRC).

The PRC will incorporate the activities of the existing petroleum regulatory authorities and will also cover some new regulatory activities not currently covered.

According to the document, the existing “framework was weak, largely ineffective and inefficient, arising from a number of single-issue agencies; overlaps in regulation, gaps in regulation, mixture of policy, regulation and operations; and ineffective regulation.

“Although the agencies generally work well together, their roles, sometimes, overlap and there are significant information gaps within the government as, sometimes, one institution is unaware of what the other is doing.

“At the same time, policy making capacity has been weak, resulting in NNPC and its subsidiaries setting policy and regulation as well as conducting operations in the petroleum sector. The result is an ineffective and inefficient institutional environment in the petroleum sector in Nigeria.

”The new body is also expected to work under the policy supervision of the Minister of Petroleum Resources in order to reduce the inefficiencies in parastatal in the petroleum sector.

The minister of petroleum resources will set and monitor implementation of policies.

“This does not mean that the regulatory authority will report to the Ministry on a day to day basis. The new single regulatory authority will be an operationally independent regulatory institution. The Minister’s involvement will be hands off and just to ensure that the regulatory authority properly carries out its roles of implementing the policy.”



FG to scrap NNPC, DPR, PPPRA, others; to sell unprofitable refineries.

The Federal Government’s draft National Oil Policy has proposed to consolidate Nigeria’s oil industry regulatory authorities into a single agency to be known as Petroleum Regulatory Commission, PRC, while scrapping all other regulators, including the Nigerian National Petroleum Corporation, NNPC, Department of Petroleum Resources, DPR, and Petroleum Products Pricing Regulatory Agency, PPPRA, among others.

According to the document released by the Ministry of Petroleum Resources, last weekend, the new regulator will incorporate the activities of the existing petroleum regulatory authorities and also cover some new regulatory activities not currently covered.

The document revealed that the existing institutional regulatory framework was weak, largely ineffective and inefficient, arising from a number of single-issue agencies; overlaps in regulation, gaps in regulation, mixture of policy, regulation and operations; and ineffective regulation.

It stated: “Although the agencies generally work well together, their roles, sometimes, overlap and there are significant information gaps within the government as, sometimes, one institution is unaware of what the other is doing.

“At the same time, policy making capacity has been weak, resulting in NNPC and its subsidiaries setting policy and regulation as well as conducting operations in the petroleum sector. The result is an ineffective and inefficient institutional environment in the petroleum sector in Nigeria.”

The draft policy is also proposing that, in order to reduce the inefficiencies in parastatals in the petroleum sector, the proposed single petroleum sector regulatory authority will operate under the policy supervision of the Minister of Petroleum Resources.

According to the document, the Minister will set the policy for the PRC; ensure monitoring of the implementation of the policy; and ensure monitoring of the performance of the authority.

“This does not mean that the regulatory authority will report to the Ministry on a day to day basis. The new single regulatory authority will be an operationally independent regulatory institution. The Minister’s involvement will be hands off and just to ensure that the regulatory authority properly carries out its roles of implementing the policy,” it explained.

Automatic oil licence renewal jettisoned

Meanwhile, the Federal Government is considering a policy that would rule out the automatic renewal and extension of oil and gas licenses, while it has listed stringent conditions which would be met before these can be granted.

This was also contained in the draft oil policy which indicated that the new oil and gas licensing processes would become more transparent in respect of allocations of oil blocs, mining licences and leases, while local communities would be able to compete in the bids.

According to the draft policy, licence renewals or extensions will now be based on progress made by licence holders in meeting their exploration or production targets.

It stated that licence holders, who do not meet licence conditions, including oil production, gas flare down, gas supply obligations, will risk losing the licence.

Regulate petroleum revenue spending

In addition, the document is proposing a policy that would ensure that certain percentage of petroleum revenue is set aside for capital expenditure and for savings for future generations.

According to the document, under the new policy, the government will agree to a cap on the proportion of petroleum revenues that can be spent on recurrent expenditure, while setting aside a percentage of the petroleum revenue for capital expenditure items and savings for future generations.

To give vent to this proposal, the document disclosed that appropriate legislation would be passed to back the policy.

Unprofitable refineries to be sold

The draft policy also stated that each of the country’s refineries will be given a transition period within which to become viable and profitable, adding, however, that the government intended to divest, sell off, concession or if necessary, close down any non-performing refinery that failed to make the transition.

It stated: “The aim is to make the NNPC refineries successful, high volume, commercially viable enterprises. They will be encouraged to become so and will be supported as much as it is within the government’s ability to do so.

“Of the three NNPC refineries (Port Harcourt, Warri and Kaduna), Port Harcourt is expected to be the best placed to succeed. It has installed its independent gas-fired power supply; it has undertaken its own turnaround maintenance; it is close to jetties and the pipeline length from crude oil suppliers is short (less of a pipeline security risk); it is operationally ready to produce refined products to international standards, although the cost structure is still not right.

“Of the three, Kaduna, is perhaps, the least ready currently because of its distance from crude oil supplies and reliance on a poorly maintained crude oil pipeline.”

Another measure planned under the new policy for revitalization of the refining sub-sector in Nigeria include the return of storage depot assets to the refineries.

It stated: “The storage depots were originally part of the refineries but had been subsequently transferred from the refineries to the Pipeline and Products Marketing Company, PPMC, (now Nigerian Petroleum Marketing Company, NPMC).

“This arrangement is not considered to have been successful. NPMC has failed to manage the depots effectively and the refineries have been denied an important part of their assets. The storage depots will, therefore, be returned to the refineries.

“In addition, the perimeter fence around the refineries will be set sufficiently far from the operations, including depots to ensure that proper security can be maintained. Everything inside the perimeter fence will belong to the refinery solely and will be on each refinery’s asset register.”

Again, the document noted that as part of their new independence, each of the refineries will be given commercial autonomy, meaning that they will be free to take crude oil from wherever and whoever they can.

According to the draft, they are not constrained to take NNPC deliveries only, as under the new policy, each refinery may choose to deal with any crude oil producer apart from NNPC or National Oil Company of Nigeria, NOCN.

“It should be commercially interesting for an International Oil Company, IOC, which has downstream operations in Nigeria, to have their own crude refined and sold in Nigeria, rather than exporting crude across the Atlantic and the refined product to be shipped back,” the document noted.

The Ministry of Petroleum Resources said the petroleum industry in Nigeria had been involved in the development of the petroleum policy, through their participation in industry fora and seminars, such as the Nigerian Chapter of the Society of Petroleum Engineers, the OPTS and the Petroleum Club.

According to the Ministry, the proposed petroleum policy, while driven by the government, is a joint effort of the government and the petroleum industry community in Nigeria, with domestic and international industry involvement.

PENGASSAN vows to resist sale of NNPC

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has vowed to resist any attempt by the Federal Government to sell its stakes in the Nigerian National Petroleum Corporation (NNPC).

According to Punch, the spokesman of PENGASSAN, Emmanuel Ojugbana said the union’s stand on the issue still remains the same.

This is coming on the heels of a proposal by the petroleum ministry on November 10, 2016, suggesting the sale of the government’s stakes in NNPC.

Ojugbana said “Actually, the government is trying to revisit the Petroleum Industry Bill and that may have to do with the draft document being reported. But we have not engaged with them in order to know the implication of what is in the draft or the bill. However, we have already made our position clear and I’m restating it that we are not in support of any attempt to sell our national assets.

“But if there are other policies of government that will enhance the oil and gas industry, we are in support of that. So, we need to understand what the draft proposal is all about and then we will make our contributions. But as per the sale of assets, PENGASSAN is completely against it and should be counted out.

“We are not in support of the sale of our national assets; we will only give support to policies that aim to create adequate governance structures, as this will provide more business opportunities, which is good for the Nigerian people. In times like this, the government should not consider the sale of assets belonging to the NNPC, for we will oppose it seriously.”

He also added that PENGASSAN will support the Federal Government if it comes up with options that will benefit Nigerians.

Lending his voice, PENGASSAN Secretary-General, Lumumba Okugbawa said the union is looking forward to holding talks with the Federal Government.

Okugbawa also said the government should not be allowed to sell national assets that belong to Nigerians.

He said “Our position still remains the same that they cannot sell our national assets. It is not to be allowed. We don’t have the details of which company they want to sell in the NNPC. Is it the Kaduna, Warri or Port Harcourt refinery? Is it a different subsidiary of the NNPC, or is it the entire NNPC? These are things we need to find out.

“But no matter what it may be, our position stays and it is that the government should not be allowed to sell our collective national assets. There should be better ways to handle things, not by selling our national assets. So, we look forward to having better dialogue with the government.”

 Former President, Olusegun Obasanjo recently called for an urgent reform of the NNPC business operations model.

Kachikwu: We’d review our current template before any fuel price increase

Ibe Kachikwu, minister of state for petroleum resources, says the federal government would review its current pricing template before it can implement any increase in fuel price.

The minister explained that some of the elements of the pricing template still lies within the government’s control, and can be amended to keep retail prices within its current band.

Speaking in Abuja over the weekend, Kachikwu said he was not aware that Nigerian National Petroleum Corporation (NNPC) mega-stations had increased their pump price of petrol to N145 per litre, from N141.

“First, I am not aware that the NNPC has increased its price. I need to look into that, it’s a bit of surprise for me, because there are processes in doing this,” he said.

“If they have done that, it means they are doing it wrongly. Let me find out what the facts are. Having said that, the reality is that what we did at the point where we did some liberalisation was to enable the market float the price.

“Obviously, as you look at foreign exchange differentiations and all that, it would impact the landing cost of petrol.

“The worst thing you could do is to go back to the era where we basically were fixing prices. What we ought to be doing is watching prices, making sure that they are not taking advantage of the common man.”

Currently, NPA, NIMASA charge N1.06 on every litre of petrol coming into Nigeria, but Kachikwu suggested that the government would rather cut its own charges in the template first, before embarking on any increase.

“One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates. There are still areas that are within government control.

“These are payments to the Ministry of Transport and the rest, payments to the Nigerian Ports Authority (NPA) that are foreign-currency denominated.

“We are working on the possibility of being able to shift that out so that you still can modulate the prices within where it is right now. But I would hold a conversation with the industry and see how it is going.”

“At the end of the day, I think PPPRA is the agency that has the authority to say it is time the templates does justify some level of movement, otherwise you have a crisis of individual decisions on pricing.”

We’d Review Our Current Template Before Any Fuel Price Increase – Kachikwu

Ibe Kachikwu, minister of state for petroleum resources, says the federal government would review its current pricing template before it can implement any increase in fuel price.

The minister explained that some of the elements of the pricing template still lies within the government’s control, and can be amended to keep retail prices within its current band.

Speaking in Abuja over the weekend, Kachikwu said he was not aware that Nigerian National Petroleum Corporation (NNPC) mega-stations had increased their pump price of petrol to N145 per litre, from N141.

“First, I am not aware that the NNPC has increased its price. I need to look into that, it’s a bit of surprise for me, because there are processes in doing this,” he said.

“If they have done that, it means they are doing it wrongly. Let me find out what the facts are. Having said that, the reality is that what we did at the point where we did some liberalisation was to enable the market float the price.

“Obviously, as you look at foreign exchange differentiations and all that, it would impact the landing cost of petrol.

“The worst thing you could do is to go back to the era where we basically were fixing prices. What we ought to be doing is watching prices, making sure that they are not taking advantage of the common man.”

Currently, NPA, NIMASA charge N1.06 on every litre of petrol coming into Nigeria, but Kachikwu suggested that the government would rather cut its own charges in the template first, before embarking on any increase.

“One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates. There are still areas that are within government control.

“These are payments to the Ministry of Transport and the rest, payments to the Nigerian Ports Authority (NPA) that are foreign-currency denominated.

“We are working on the possibility of being able to shift that out so that you still can modulate the prices within where it is right now. But I would hold a conversation with the industry and see how it is going.”

“At the end of the day, I think PPPRA is the agency that has the authority to say it is time the templates does justify some level of movement, otherwise you have a crisis of individual decisions on pricing.”

FG is committed to developing Niger Delta – NNPC boss

The Group Managing Director of Nigerian National Petroleum Corporation, Dr Maikanti Baru, has said that the Federal Government was committed to developing the Niger Delta region.

Baru made this known in a statement released to newsmen by NNPC Group General Manager, Group Public Affairs Division, Mr Garba Deen Mohammed, in Abuja on Thursday.

Baru said this when he received the Special Adviser to the President on Niger Delta and Coordinator of the Presidential Amnesty Programme, retired Brig.- Gen. Paul Boroh.

He said that the Federal Government’s amnesty programme was critical toward ensuring lasting peace in the Niger Delta region.

”The Amnesty Programme is key to restoring peace to the Niger Delta and the corporation remains ever committed to collaborating with relevant stakeholders towards developing the Niger Delta region.

”Insecurity has affected NNPC’s operations, especially in the region but with relative peace now coming back to the area, the NNPC will ramp up its oil and gas production to be able to deliver on its mandate to the nation,” Baru said.

Earlier, Boroh told Baru that he was at the NNPC towers to share some of the success stories of the programme, especially in terms of human capital development of the various beneficiaries of the Amnesty Programme.

He intimated Baru that the programme had trained over 15,000 ex-agitators in various skills and trades.

”Fourteen of them graduated with First Class from various universities both in Nigeria and abroad,” Boroh said.

NNPC to Refine Crude in Niger Republic

A technical team to see the possibility of refining crude oil in Niger Republic by the Kaduna Refining and Petrochemical Company (KRPC) may be underway by the Nigerian National Petroleum Corporation (NNPC), it was learnt yesterday.

NNPC’s Group Managing Director Dr. Maikanti Baru stated this after a bilateral discussion with Republic of Niger’s Minister of Energy and Oil Foumakoye Gado in Abuja.

A statement by the corporation quoted the NNPC helmsman as saying: “We plan to set up the technical team to review the possibilities of how crude oil will be supplied to the Kaduna Refinery. Being bilateral, there are going to be two teams as discussed by the Minister of State, Petroleum Resources and the Minister of Energy and Oil of Niger.

“There will be steering committee comprising some Ministers and a technical committee which will involve the NNPC and the Nigerien Ministry of Energy and Oil and their operators.”

According to the statement, Nigeria is to collaborate with its Republic of Niger neighbour in the area of sharing of geological data to further boost the ongoing exploratory activities in the Chad Basin and Benue Trough.

He noted that there is an understanding between the NNPC and the Republic of Niger to share data on the exploratory activities in the Chad Basin and the Benue Trough and to tap into that country’s experience.

The NNPC chief has described the Amnesty Programme as critical towards a lasting peace in the Niger Delta region.

Baru made this known while hosting the Special Adviser to the President on Niger Delta and Coordinator of the Presidential Amnesty Programme, Brig.-Gen. Paul Boroh in his office at the NNPC Towers, Abuja, yesterday.

The GMD told Boroh: “The Amnesty Programme is key in restoring peace to the Niger Delta.”

He restated the Corporation’s commitment to collaboration with relevant stakeholders towards developing the Niger Delta region.

Baru, who observed that insecurity has affected NNPC’s operations especially in the region, stressed further that with relative peace now coming back to the region, the NNPC will ramp up its oil and gas production to be able to deliver on its mandate to the nation.

Responding, the Nigerien Energy Minister said his mission in Nigeria was to discuss issues of interest especially in the area of the oil sector with the NNPC, adding that the procurement of crude oil for Kaduna refinery and its practicability is being worked out.

Gado said: “One of the aims of this visit is to share geological information for us to draw the best profit out of the exploratory efforts.

Speaking earlier, Boroh said they were in NNPC to share some of the success stories of the programme especially in terms of human capital development of the various beneficiaries of the Amnesty Programme.

According to Boroh, the Programme has trained over fifteen thousand ex-agitators in various skills and trades, adding that about 14 of them graduated with First Class from various universities both in Nigeria and abroad.

Pipeline vandalism dropped by 28 per cent in August – NNPC

The Nigerian National Petroleum Corporation (NNPC) says pipeline vandalism across the country reduced by 28 per cent in August.

The corporation made this known in its 13th publication of Monthly Financial and Operations Report released on its website on Thursday.

According to the report, the spate of pipeline vandalism has reduced following the Federal Government and NNPC’s sustained engagements with Niger Delta militants.

“In August, 2016, there was 28.94 per cent drop in the number of pipelines vandalised points relative to July, 2016 which had up to 311 vandalised points,’’ the report stated.

On natural gas supply to power plants, the report stated that it edged up to 469 million standard cubic feet per day (mmscfd) which equalled about 2,083 megawatts of electricity generation in August, 2016.

On refineries’ operations, it report said that the combined value of output by the three refineries “at import parity price’’ for August, 2016 was N50.19 billion.

“Associated crude plus freight cost was N39.77 billion, giving a surplus of N709.21 million after an overhead of N9.71 billion,’’ it said.

The report said that this was made possible in spite of the challenges of irregular crude supply and pipeline vandalism to the refineries.

On naira payments to the Federation Account, NNPC said it transferred N35.05 billion into the account in September from the net domestic crude oil receipt and another N1.80 billion from gas receipts.

It added that its instalment repayment of debt to the Federation Account was also done with N6.33 billion remitted as the 25th instance in the process.

“The domestic crude oil and gas receipt during the month amounted to N96.15 billion, consisting of N1.80 billion from domestic gas and the sum of N88.01 billion from domestic crude oil.

“Of the N88.01 billion receipt from crude oil, the sum of N52.96 billion (about 268.83 million dollars) was transferred to Joint Venture Cash Call (JVCC) being a first line charge.

“It also guarantees a continuous flow of revenue stream to Federation Account,” the report said.

NNPC loses N11.22bn in 1 month – report

The Nigerian National Petroleum Corporation (NNPC) has again reported a month-end trading deficit of N11.22 billion in August.

The figure was obtained on the NNPC website detailing its monthly financial and operations report released in Abuja.

The corporation had posted a trading deficit of N24.18 billion loss in its July report.

NNPC, however, indicated that it was able to cut down on its loss-making by N12.96 billion when compared with its deficits in previous months.

The deficits were recorded even though two of its subsidiaries – the Pipeline and Products Marketing Company (PPMC) and Nigerian Petroleum Development Company (NPDC) – had a good operational outing during the month.

The report also said crude oil production in Nigeria for the period averaged 1.65 million barrels per day (mbpd), representing a 6.47 per cent production decrease from the previous month.

The corporation in May, reported a profit of N273.74 million, thus reversing its reported average monthly losses of N35 billion.

It, however, failed to sustain the profit-making streak, and has in the next two months, recorded deficits.

This indicates a trading deficit of N11.22 billion as against the reported July, 2016 deficit figure of N24.18 billion.

“This remarkable improvement in August 2016 was largely due to increase in PPMC coastal sales and the significant improvement in NPDC’s revenue for the month under review.

“However, it is imperative to note that the existing force majeure declared by SPDC as a result of vandalised 48-inch Forcados export line is a drag to NPDC and the overall group performance.”

“Other factors that negatively impacted on production include force majeure at Qua Iboe terminal following sabotage on the export loading line 2, sabotage of Trans Niger Pipeline, Claugh Creek-Tebidaba pipeline and Escravos terminal delivery pipelines.’’

The Forcados terminal alone accounts for 300,000 barrels per day (bpd).

Productions from the deep-water assets, which are beyond easy reach by militants, have remained steady but that onshore and shallow water assets are the worst hit by security breaches.

It added that securing onshore and shallow water locations had also remained a top priority to restore production levels.

No Plan To Increase Petrol Price, NNPC Tells Nigerians Not To Panic

The Group General Manager, Group Public Affairs Division of the NNPC, Muhammad Garba-Deen, has said there was absolutely no plan by the Federal Government to increase pump price of petrol above N145 maximum level.

He said a statement people were referring to was made within the context of technical explanation, not within the context of downstream operations.

According to him, if there is going to be anything like a price hike, the agency responsible for fixing the price of petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA), will definitely sensitise Nigerians on it and give reasons for the hike.

He added that at present, there was no subsidy on petrol, and that the long-term contracts entered into by the NNPC with buyers and suppliers had addressed the issue of foreign exchange volatility.

“As per this moment, there is absolutely no plan to do that and no need to do that, because we have more than enough supply; we have very robust stock of product in our custody.

“ In addition to that, we also have long term procurement contract with our suppliers.

“The usual reason that would necessitate a review of price at the moment had been taken care of. We have long term procurement contract with our suppliers.

“We have more than enough supply to last us throughout the ember months and beyond,” he said.

Also, the Department of Petroleum Resources, DPR, on Wednesday began investigation into some depot owners in Apapa who sold fuel to marketers above the official ex-depot price of N133.28.

Dorothy Bassey, Assistant Director, Public Affairs, DPR, told the News Agency of Nigeria in Lagos that the agency would sanction depot owners found guilty.

According to Ms. Bassey, there is no reason for any depot to sell petrol above the official ex-depot price.

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No provision for fuel subsidy in 2016 budget – NNPC

The Nigerian National Petroleum Corporation (NNPC), has said it has no plans to increase the pump price of petrol from N145 per litre, neither was it contemplating a return to subsidising fuel.

The rebuttal is coming on the heels of a statement credited to the Group General Manager, Crude Oil Marketing Division, NNPC, Mr. Mele Kyari, that the sale of petrol at N145 was no longer feasible at the current exchange rate.

In a swift reaction yesterday, the NNPC, through its Group General Manager, Group Public Affairs Division, Mr. Garba-Deen Muhammed, said reference of unsustainability of N145 per litre of petrol only relates to possible spike in international market price of petroleum products.

“This has been mitigated by NNPC’s long-term procurement contract plan that guarantees stable pricing.”

Muhammed further stated that it had a robust supply arrangement that can guarantee sustainable supply over a long period of time.

Kyari, on Monday reportedly said that the sale of petrol at N145 per litre was no longer sustainable with the current foreign exchange.

“We have a very difficult business environment. It is impossible today to import products at the current market price, current fixed foreign exchange,” Kyari reportedly said in Lagos.

The corporation, however, promised to sustain the tempo of petroleum products supply throughout the ember months and beyond across the country at the current rate of N145 per litre.

The state oil firm assured that it had resolved all issues that had to do with foreign exchange stability in order to ensure fuel price stability and distribution.

“Nigerians should not engage in panic buying, as there is no cause for alarm with respect to pump price increase or shortage of products,” it said.

Muhammed explained further that if there was going to be any increase in PMS price, the Petroleum Products Pricing Regulatory Agency (PPPRA) would definitely sensitise Nigerians on it and give reasons for it.

“The statement people are referring to was made within the context of technical explanation, not within the context of downstream operations. A new window to make forex available for marketers for their import needs have been opened and they are satisfied with it,” he said.

Muhammad disclosed that there was already PMS glut in the market, as a lot of products were on ground waiting for off-takers, stressing that there was no payment of petrol subsidy by the government on petrol.

It’s impossible to sell petrol at N145 per litre, we need to increase price – NNPC

As Nigerians grapple with recession, the Nigerian National Petroleum Corporation, NNPC, Monday reminded the nation that the sale of petrol at N145 per litre was no longer feasible with the current price of foreign exchange.

The Group General Manager, Crude Oil Marketing, NNPC, Mr. Mele Kyari, stated this at this year’s Oil Trading and Logistics Expo, OTL, holding in Lagos.

He said: “We have a very difficult business environment. It is impossible today to import products at the current market price, at current fixed foreign exchange, FOREX rate. ‘’There is no way today you can take products to retailers and sell at N145. It is not possible. If that is true and I believe that it is, because we all go to the market.

Why can’t we sell above N145? That is where legislation should come in.” Kyari, who explained that the current price was not realistic, however, said that any official increase by the government would not go down well with the citizenry as it will be resisted.

“I also know today that it is impossible for this government to announce tomorrow that petrol is about N150. This government cannot sustain it. That is the truth.

The people will not accept that figure. ‘’That is why suppliers are not importing. It is not FX. We have created a niche market for the FX. I am part of the committee allocating FX. We gave FX. It was rejected. The reason being given is that FX is not enough to import. But that is not true. “The truth is that marketers go back to the market and land it here, that you are required to sell it at N145 maximum. I am sure they won’t make it.

We won’t let you do it today. That is the main reason people are not importing today. It is not FX,” he added. Kyari further expplained that Nigeria was still in a subsidy regime, as the NNPC took the bulk of importation to ensure that petrol was sold at the official rate of N145 per litre. “Today, we are in subsidy regime, absolutely. There is no way you bring product today and sell at N145 and get back your money, and make profit. That is not possible.

You can see some marketers saying that fuel is N138. ‘’It is because they did not import. Somebody has taken the heat off the price. Because we (NNPC) have taken the heat, and you buy from us; you can afford to go to the market and then put a ridiculous price. It is not possible, because they did not import it. It is not FX,” he said. Debunking the notion that marketers were constrained by the unavailability of FX, he accused them of being reluctant to go for it.

He added: “As I speak to you, there is stranded FX that nobody is ready to pick up. We have closed the chapter on FX.’’

NNPC Offers Its Oil At A Discount To Regain Market Share

Nigeria has cut the price of every type of crude it sells in an effort to regain the share of the global oil market at a time when there’s a “huge” glut of cargoes.

The Nigerian National Petroleum Corporation (NNPC) lowered by at least $1 a barrel its official selling prices (OSPs) for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists.

Qua Iboe, Nigeria’s largest export crude under normal circumstances, was reduced by the most since 2014.
The price reductions are due to a “huge cargo overhang” as the country attempts to regain market share, Mele Kyari, Group General Manager for the Oil Marketing Division at NNPC, said by phone.

Like every other producer country, Nigeria is grappling with prices that are less than half what they were in July 2014. What makes the African nation’s situation more acute is a militant campaign that resulted in export flows falling to the lowest in at least nine years earlier this year.
Shipments are gradually resuming, and lower prices are a sign Nigeria is seeking to become more competitive in an already oversupplied global market.

“It is a bearish signal for the light, sweet market,” Eshan Ul-Haq, principal consultant at KBC Process Technology Ltd., said in an e-mail, referencing the types of crude Nigeria mostly pumps. “In order to capture a higher share of the market, OSPs have to come down.”

Read More: thisdaylive

Reps summon CBN, NNPC over forex, aviation fuel.

The House of Representatives Committee on Aviation has directed the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Corporation (NNPC) to appear before it today to explain its role in the challenges facing the aviation sector.

Meanwhile, a leading financial institution, Access Bank Plc, has successfully raised $300 million via a Eurobond from the international bond market.

The aviation sector is currently battling challenges associated with operations of foreign and local airlines in Nigeria.

According to the Chairman of the House committee, Nkeiruka Onyejeocha, who handed down the summons yesterday at the ongoing public hearing on the need to rescue the airline industry from collapse, the apex bank is to specifically explain the foreign exchange instability that is affecting the finances of airlines.

NNPC on its part, according to Onyejeocha, is to explain the lingering scarcity of aviation fuel, especially as some airlines-local and international- are cutting down on their operations.

Already Arik Air, Dana Air and Medview are incessantly cancelling and delaying flights due to the shortage of the product, also known as Jet A1. Emirates Airlines on Tuesday announced the suspension of its Abuja-Dubai operations due to challenges in foreign exchange, low patronage and other operational difficulties.

The committee was however dissatisfied with the assurances of CBN, through its Assistant Director, Infrastructure Finance, Mr. Boma Benebo, who was at the investigative hearing.

Benebo had assured that the apex bank was effecting downward reviews of operational expenses of airlines, such as landing and parking fees and passenger service charges.

The President and Chairman of Council, CIBN, Prof. Segun Ajibola, at the 16th national seminar on Banking and Allied Matters for Judges, in Abuja, lamented that while there are existing laws to deal with these issues, they have continued to rear their ugly heads.

Meanwhile, a leading financial institution, Access Bank Plc has successfully raised $300 million via a Eurobond from the international bond market.

The bank recently assessed the international market to raise the bond with maturity date in October 2021, at a coupon of 10.5 per cent.

This makes Access Bank the first Nigerian bank to raise bond from the international market this year despite the country’s macro-economic headwinds. The successful outcome of the bond also demonstrates the strength, resilience and international endorsement of Access Bank Plc.

Industry analysts perceived the development as a show of support for the Federal Government’s efforts to attract foreign exchange into the country.

The bank currently has two series of Eurobonds in issue – the $350 million maturing in July2017 at a coupon of 7.25% and the $400 million (9.25%), June 2021 maturity date as part of a $1 billion global medium term note programme.

Commenting on the development, Herbert Wigwe, Group Managing Director/CEO of Access Bank, said, “the bond will be for working capital, for lending to investment-grade names, including Nigerian companies seeking to expand their exports.”

He emphasised that the process signifies a significant moment on the bank’s journey to entrench itself as one of Nigeria’s top three banks by 2017.

“It also ensures that we keep our promise of speed, service and security to our customers as we target Africa’s fastest-growing industrial sectors,” he added.

Don’t Sell NLNG, NNPC, Ezekwesili Warns FG

The Senior Economic Adviser of the Africa Economic Development Policy Initiative and the initiator of Bring Back Our Girls (BBOG) project, Dr Oby Ezekwesili, yesterday, joined the  league of prominent Nigerians opposed  to the sale of Nigerian National Petroleum Corporation (NNPC) and Nigerian Liquefied Natural Gas (NLNG).
The former Education Minister in a statement made, said “I am opposed to the sale of any productive assets like the NLNG because there seems to be no clear economic vision and rigorous analytics to serve as the anchor for such a major policy thrust. We need well deliberated policies from our government including the plans for revitalisation of the programme of privatisation being run by BPE to properly situate public debate of economic structural change agenda. After all, even in our country, there is now proof that the economy can relatively respond to deliberate, well thought and rigorous analysis of context and sound policy options in resolving growth and development problems.” But for the refineries, she  said that  the government can proceed urgently through the Bureau of Public Enterprises (BPE) to sell them off, because, according to her, they are  acesspit of corruption in the  petroleum sector, stressing that their sale would amount to fiscal savings and should therefore be supported by all.
Exekwesili however, regretted that at the inception of this administration, on May 29, 2015, when the economy  showed signs of strait, the government did not act fast to prevent the present economic situation.
“The parlous state of the Nigerian economy on May 29, 2015 should therefore have instructed an incisive and urgent macroeconomic stabilisation  programme to realign price levels in the economy. If a menu of sound monetary and fiscal policies that the economy needed on May 29, 2015 had been provided, it would have sent the right signal to players that there was no cause for alarm. Had the government made quick and necessary adjustments that corresponded close enough to the level of impact that a 40 per cent sharp drop in government oil revenue necessitated, the story would most likely be less negative today.”
She further noted that “With inflation- nay, stagflation- now at high double digits of 18 per cent , with the decline of foreign reserve from $37.3 billion at end of 2014 to $25billion in September 2016, with an “administrative-floating ” exchange rate regime that still creates enormous opportunities for corruption and rent seeking arbitrage, with a high interest rate that poses a stress for the financial sector because of deteriorating bank asset quality as well as for limited access to credit by the real sector, with a continuously declining aggregate demand, with a shrinking gross domestic product, with 2016 budget deficit level of $11billion that still has unclear sources of financing…”

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NNPC GMD, Dr. Baru Commissions Tanks 11,12,13 & 22 At NNPC Mosimi Depot

Earlier yesterday,GMD NNPC, Dr. Maikanti Kacalla Baru commissioned the rehabilitated Tanks 11, 12, 13 and 22 at the NNPC Mosimi Depot in Ogun State. Tank 13 was gutted by fire in 1997, while the floating roofs of tanks 11,12 & 22 collapsed in 2001 in addition to excessive base leakages.
The aim of the Project was to restore adequate PMS storage capacity at the Depot to enhance efficient supplies/distribution to Lagos & South West and other parts of the country. Mosimi Depot was constructed in 1978 for the storage and distribution of petroleum products to the western region of the country.
Some pictorial highlights of the auspicious occasion below








FG Receives N18.99 Billion NNPC’s Refund

The Federal Government received N18.99 billion from the Nigerian National Petroleum Corporation (NNPC) during the second quarter of 2016, being installmental refund of the corporation’s indebtedness to the government.


The Central Bank of Nigeria (CBN), which made this disclosure in its second quarter report, added that the sum of N7.86 billion was equally distributed as exchange gain among the three tiers of government as 13 per cent Derivation Fund.


A breakdown of the allocation showed that Federal Government received N3.68 billion; State Governments, N1.87 billion; Local Governments, N1.44 billion; and 13 per cent Derivation Fund (N0.88 billion).


CBN disclosed that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.54 million barrels per day (mbd) or 141.68 million barrels (mb) for the second quarter of 2016.


This, it said, represented a decline of 0.37 mbd or 15.4 per cent, relative to 1.82 mbd or 165.62 million barrels produced in the first quarter of 2016.


It stated that crude oil export stood at 1.09 mbd or 100.28 mb representing a decline of 20.4 per cent, compared with 1.37 mbd or 124.67 mb, recorded in the preceding quarter.


It stated: Supply disruptions owing to continued attacks on oil installations by vandals accounted for the decline in crude oil production. Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 41.40 million barrels during the review quarter.

“At an estimated average of US$46.44 per barrel, the price of Nigeria’s reference crude, the Bonny Light, rose by 35.0 per cent, compared with the level in the preceding quarter. The average prices of other competing crudes, namely the UK Brent at $45.29/b, WTI at $45.18/b and Forcados at $46.05/b exhibited similar trends as the Bonny Light.


The average price of OPEC basket of eleven selected crude streams, at $42.38 per barrel, indicated an increase of 40.5 per cent, compared with the average of $30.16 per cent recorded in the preceding quarter.


It, however, showed a decline of 28.5 per cent, compared with the average of $59.31 per cent recorded in the corresponding quarter of 2015


It disclosed that at 3,156 MW/h, estimated average electricity generation in the second quarter of 2016 fell by 0.19 per cent, compared with the level attained in the preceding quarter.


The apex bank noted that the development was attributed to the fall in power generation in the various power plants due to vandalism.


According to the report, average estimated electricity consumption, at 2,989 MW/h, fell by 0.19 per cent, relative to the level attained in the preceding quarter.

PIB: NNPC Concerned Over Move By Petroleum Ministry To Assume Control Of Proposed IJVs

The attempt by the Ministry of Petroleum Resources to assume control over the proposed Incorporated Joint Ventures (IJVs) and the Asset Management Company to be created by the new Petroleum Industry Bill (PIB) may set the ministry on a collision course with the Nigerian National Petroleum Corporation (NNPC), investigations have revealed.

The original PIB submitted to the National Assembly by the Umaru Musa Yar’Adua administration had provided for the corporatisation of the oil joint venture (JVs) assets held by NNPC and the international oil companies (IOCs) into IJVs.

But the IOCs had opposed the establishment of the IJVs following concerns that the NNPC, which controls majority stake in the existing joint venture oil assets, might insist on operating the incorporated entities.

As a result, the IJVs were removed from the revised reform bill resubmitted by the administration of former President Goodluck Jonathan in 2012 to the National Assembly.

However, the current administration of President Muhammadu Buhari has unbundled the PIB into three legislations for easy passage and also reintroduced the IJVs in the revised bill to resolve the cash call challenged hampering the existing JVs, which have accumulated to unpaid arrears of over $6 billion.

It was also gathered that splitting the PIB was done to ensure that regulatory and fiscal issues are dealt with separately.

The Ministry of Petroleum, it was learnt from a top NNPC source, is in the final stages of completing the comprehensive executive drafts of the split PIB.

It was also gathered that the first of the three pieces of legislation under the revised PIB being prepared by the executive arm of government is called the “Governance PIB”, while the version drafted by the Senate is called the “Petroleum Industry Governance Bill, 2016”.

Investigations have, however, revealed that the NNPC is not happy with the attempt by the Ministry of Petroleum to take over direct control of the proposed IJVs, Production Sharing Contracts (PSCs) and the Asset Management Company.

Read More: thisdaylive

The Truth About The 2016 Budget – Ibe Kachikwu

Ibe Kachikwu, minister of state for petroleum, has spoken up about the 2016 Nigerian budget, saying that the country needs to constantly produce about 900 000 barrels of crude oil per day to catch up with the budget 2016 oil benchmark.


Kachikwu stated this while speaking to Richard Quest on CNN’s Quest Means Business.


Kachikwu further noted that he is does not think OPEC meeting in Algeria in September, can upturn crude oil prices on the globe.


“It is a difficult time, production is about 1.5 million barrels a day, but we intend to get that up. We are putting a lot of energy around it, a lot of dialogue, a lot of engagement, a lot of security meetings to try and resolve it,” Kachikwu said.


“President Muhammadu Buhari is very concerned about these things, a lot of executive time is being given to this. We are expecting that over the next one month, two months, we would find some final solution that would bring production upward.


“Beyond that, the reality is that we have lost a lot quite a lot of months, about five, six months of continuous problems. so it is going to be difficult to catch up with the 2.2 million barrels on which the 2016 budget is based.


“But we are certainly going to try, once things are calmer. We need an average of 900,000 barrels per day, excess production to catch up. That is going to be very tough, but we are going to work on that.”
Read more at http://www.herald.ng/truth-2016-budget-ibe-kachikwu-speaks/#Jph6WDGeMRPEJ1dw.99

Again, Buhari Orders NNPC To Search For Oil In North

For the second time in three weeks, the Nigerian National Petroleum Corporation has received an express order from President Muhammadu Buhari to explore for oil in the North.

This time, the President directed the national oil firm to commence exploration activities in the Benue Trough. The Benue Trough is a major geological formation underlying a large part of Nigeria, extending about 1,000km North-East from the Bight of Benin to Lake Chad.

The Group Managing Director, NNPC, Dr. Maikanti Baru, disclosed the President’s directive on the oil exploration in the North while receiving a delegation from the Benue State Government at the corporation’s headquarters in Abuja.

About three weeks ago, the President had directed the corporation to speed up its prospect for oil in the region, specifically in the Chad Basin and Kolmani River, following the reported discovery of hydrocarbons by Shell in the area.

The 19 northern state governors are also fired up about the prospect of oil production in their domain as they have hired a British firm through the Northern Nigeria Development Company, which they jointly own, to carry out the exploration activities.

But energy analysts and several socio-cultural and other interest groups on Tuesday expressed divergent views on the pressure by the President on the NNPC as regards oil exploration in the North.

The NNPC GMD, in a statement from the corporation on Tuesday, said the new directive was in line with the current efforts to guarantee energy security of the country.

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NNPC Restates Commitment To Profitability.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru, has said the NNPC under his watch will continue with the previous initiatives to further grow the business and increase profitability as envisioned by the founders of the Corporation.


He made this assertion during his maiden town hall meeting with members of staff at the NNPC Towers in Abuja.


“The NNPC is today in transition for positive reform. A transition to autonomy, profitability and growth. This transition is not only inevitable but imperative in the light of current business realities and the onus on NNPC to deliver on its statutory mandate,” Baru declared.


According to him, “we have a collective responsibility to ensure the success of this ongoing reform in NNPC. The task of doing so begins with you and me by changing our attitude; particularly, the way we work and do business.


“We are all required to develop mindsets that emphasise diligence, commitment and sacrifice. Therefore, it is indeed not going to be business as usual”, the GMD stressed.

He noted that in line with the NNPC’s mission statement of being an integrated oil and gas company engaged in adding value to the nations hydrocarbon for the benefit of Nigerians, the Corporation under him would focus on a 12 point agenda to support and drive the actualisation of the mission.


Baru disclosed the theme of the agenda as “Moving NNPC Forward…Together” adding that “in the race to change the fortunes of our dear Corporation for the better, I cannot do it all alone. Therefore, we are all in this together.”


The GMD outlined the agenda to include security, new business models, Joint Venture cash calls, production and reserve growth, NPDC growth, gas development, oil and gas infrastructure, refinery upgrade and expansion.


Commenting on behalf of the staff, the NNPC Group Chairman of the Nigeria Union of Petroleum and Natural Gas (NUPENG), Comrade Mathew, Duru expressed the readiness of the unions to support Dr. Baru and his management team to succeed in their task to reposition the Corporation for growth and profitability.

NNPC Shuts Pipeline’s Valve Over Leak

The Nigerian National Petroleum Corporation (NNPC) has shut a valve in a pipeline in the Niger Delta after a gas leak following an explosion, a community leader told Reuters yesterday.

Militant group, Niger Delta Avengers has claimed it blew up the pipeline.

“At around 4 a.m. we heard the loud noise of an explosion, then a sound like rain so we came out and saw gas gushing out from the NNPC pipeline,but there is no fire there now,” said Nsikak Joshua, a community leader in Ikot-Osute, the site of the blast.

Meanwhile, oil-rich Okpai in Ndokwa east local government area of Delta State, the host community of Agip Independent Power Plant, has decried the alleged abandonment of the shore protection project by the Niger Delta Development Commission (NDDC).

The chairman of Okpai Community Development Committee (CDC), Chief John Emordi, made the claim when he visited Mr Nnamdi Ezechi, the commissioner representing Ndokwa ethnic nationality on the board of Delta State Oil Producing Areas Development Commission (DESOPADEC).

Emordi lamented that that there was nothing to show for the over 50 years of oil and gas exploitation in the community and the peace the exploration companies enjoyed  while operating in the area.

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NNPC Considers Crude Importation From Chad, Niger Republic For Kaduna Refinery

As part of the efforts to address frequent disruptions to the supply of crude oil to the Kaduna Refinery and Petrochemical Company (KRPC) as a result of the Niger Delta militancy, the Nigerian National Petroleum Corporation (NNPC) is considering importing crude oil from Chad and Niger Republic, investigations have revealed.

This is coming as the President of the Organisation of Petroleum Exporting Countries (OPEC) and Qatar’s Energy Minister, Mohammed Al Sada, has stated that oil prices would rebound during the third and fourth quarters of 2016.

NNPC, it was learnt, is also considering the option of using railway transportation to move crude from the Niger Delta to the refinery complex.

A top official of the NNPC, who spoke on the condition of anonymity, disclosed yesterday that the corporation might refit the Kaduna refinery to be able to process Nigerien and Chadian crude grades, following the incessant attacks on the pipelines that feed the plant with Nigerian Bonny Light crude.

According to him, the refinery was originally designed to process Nigerian crude and foreign heavy crude at the ratio of about 70:30.

Read More: Thisday


Again, Avengers Blow Up NNPC Gas Pipeline In Akwa Ibom

Niger Delta Avengers on Sunday night allegedly blew up the Nigeria National Petroleum Corporation, NNPC, gas pipeline at Nsite Ibom Local Government Area, Akwa Ibom State.

The claim has not been independently confirmed, but spokesperson of the militant group, self-styled Brig Gen Mudoch Agbinibo, in a statement, challenged NNPC to “check their pipeline if it is ‘system anomaly.’

” The statement read: “At 11:30pm on Sunday, the NDA blow up Nigerian National Petroleum Corporation (NNPC), gas pipeline at Nsit-Ibom L.G.A, Akwa Ibom state.

NNPC should check their pipeline if it’s “system Anomaly”. Asking the NNPC to check if it was system anomaly is an allusion to the exchange between the militant group and Exxon Mobil, which initially denied an attack on its export line in Akwa-Ibom state, saying that it was a system anomaly, only to declare force majeure days later.

Credit: Vanguard


NNPC Commences Dialogue With PENGASSAN

The Management of the Nigerian National Petroleum Corporation, NNPC on Friday opened discussion with the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The move is to stop the union members from going ahead with their proposed industrial ac­tion.

Group General Manager, Public Affairs Di­vision, NNPC, Garba Deen Muhammad, said in a statement in Abuja Friday that the Corpo­ration has commenced talks with the leader­ship of the Union to address their grievances.

Mohammed further said, NNPC has assured that it is doing everything possible to guaran­tee that the prevailing sanity in the supply and distribution of petroleum products across the country, which was achieved with the recent downstream liberation policy is sustained.

He however, cautioned members of the pub­lic from embarking on any form of panic buy­ing of petroleum products in anticipation of product scarcity due to the strike by members of the union.

He said the corporation has in stock enough products to satisfy local consumption for the next 45 days noting that there is no need for motorists and other users of petroleum prod­ucts to embark on frenzied wholesale purchase in anticipation of scarcity.

Credit: Sun

How ‘Missing’ $12.9bn Was Spent- NNPC

The Nigerian National Petroleum Corporation (NNPC) on Tuesday said parts of the $12.9 billion dividends it received from the Nigeria Liquefied Natural Gas (NLNG) Ltd on behalf of the federation but which it did not remit over a period of eight years was not missing but reinvested into other gas projects.

The corporation also said the balance of the dividend has been moved to the Central Bank of Nigeria (CBN), adding that it was no longer housing the money in line with the federal government’s directive on the Treasury Single Account (TSA).
NNPC stated these in Abuja when the Nigeria Extractive Industries Transparency Initiative (NEITI) convened a stakeholders’ dialogue on the 2013 audit report of activities in Nigeria’s oil and gas industry.

It said that it took and ploughed back parts of the dividends to new trains that were built by the NLNG.

It equally listed the BrassLNG and OlokolaLNG projects, as well as other gas projects it did not mention, as other beneficiaries from the dividend. The BrassLNG and OlokolaLNG projects have however remained on the ground.
NNPC explained that the reinvestment in NLNG was part of its equity share of the cost of such expansion in its trains. The NLNG currently has six trains which produce 22 million tonnes per annum (MTPA) of LNG.

Credit: Thisday

Nigeria Navy Arrests Militants Behind NNPC And Chevron Facilities Attacks

 A militant kingpin who is best described as the coordinator of recent attacks on NNPC and Chevron oil facilities in the region has been arrested by the Nigerian Navy who said it has recorded a major feat in the ongoing military onslaught against Niger Delta militants and pipeline vandals.Briefing journalists while parading the suspects at the Naval Base Warri on Tuesday,Commander, Nigerian Navy Ship (NNS) Delta, Commodore Riami Muhammed, said his men also arrested another militant leader who spearheaded last week’s attack on Shell Petroleum Development Company’s 48inch crude pipeline in Forcados.

It was gathered that the militants’ coordinator, whose name was not disclosed for security reasons, also illegally operates about 35 abandoned oil well heads and crude oil pipelinesin Okpoko and
Obodo creeks in Warri South West Local Government Area of the state.

Commodore Mohammed said the suspects werearrested in collaboration with other security agencies, saying that the arrest was capable of reducing or ending attacks by the rampaging militants.Two suspectThe elated NNS Delta boss said, “Today, I’m pleased to announce that after several weeks of persistent efforts, the Nigerian navy in collaboration with other security agencies has arrested the main coordinator of the attacks on the NNPC and Chevron oil and gas facilities that we have witnessed since May 4, 2016, with the attack on Chevron Okan Valve platform offshore Escravos.“You are aware of the recent series of attacks onoil and gas facilities in the Niger Delta and in Delta State for which some groups/persons have claimed responsibilities.

The Nigerian Navyand other security agencies have been doing their best to curtail these attacks.”He noted that his men were not just after members of the Niger Delta Avengers but everyone suspected to be responsible for the recent attacks on oil facilities in the region.Mohammed said, “It’s important to mention that the suspect is also deeply involved in pipeline vandalism and stealing crude oil. He steals crude oil from about 35 abandoned oil well heads.

The Nigerian Navy believes with the arrest of this suspect, the attacks on Chevron/NNPC facilities will abate.”Two suspectOn the arrest of the suspect behind last week attack on 48-inch Forcados crude line, Mohammed said “He has provided useful information that will assist NNS Delta to arrest other culprits.”While commending the Delta State government for her support, he warned criminal elements in the Niger Delta to desist as Nigerian military were very committed towards flushing out their activities from the region.Two of the suspected militant’s kingpins were shaded from journalists for security reasons while several tools and ammunition used for the attacks were displayed.

Source; Punch

NUPENG Flays NNPC’s Plan To Cut Contracting Cycle

Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, yesterday, in Warri, Delta State, condemned the plan by the Nigerian National Petroleum Corporation, NNPC, to cut contracting cycle in the Nigerian oil and gas industry from its current stretch of between two to four years, to six months, insisting that it would be resisted.

The union, in a statement by its President and acting General Secretary, Achese Igwe and Joseph Ogbebor, contended that the plan was untenable, unnecessary, anti-labour, wicked and would amount to modern day slavery for oil and gas workers.

NUPENG stated that cutting the contracting cycle to six months negated the principle behind the local content policy and the change mantra of President Muhammadu Buhari on job creation and not short-lived contract employment.

They said: “NUPENG notes that NNPC’s position that contract cycle of two to four years was a major contributor to the high cost per barrel of Nigerian crude oil compared to other OPEC member countries amounts to self-service and sounds very unpatriotic. Oil and gas workers in other OPEC countries are given permanent work status with good conditions of service as compared to the modern day slavery practised in Nigeria and encouraged by NNPC that is supposed to be the regulator of operations in the sector. The plan to cut contracting cycle to six months is a stab on the face of oil and gas workers who produce the black gold to be tossed around every half of the year on their contract status.”

Credit: vanguardngr

Fuel Crisis: 39m Litres Of PMS Distributed Nationwide– NNPC

The Nigerian National Petroleum Corporation, NNPC, said, yesterday, 1,194 truckloads of Premium Motor Spirit, PMS, comprising 39.4 million litres of the products were distributed across the country.

The NNPC, in its Daily PMS Supply and Distribution schedule for Tuesday, April 19, 2016, said the product was loaded from various NNPC and major marketers depots nationwide. In addition, the report disclosed that five NNPC and marketers vessels are currently discharging at various depots/jetties nationwide, while seven NNPC import/shuttle vessels have been programmed to do Ship-to-Ship (STS) operation for onward discharge to inland depots.

The NNPC further stated that 21 import vessels laden with a total volume of 844.1 Million litres of PMS have been confirmed to arrive in the month of April, 2016 for NNPC. Giving a breakdown of trucks dispatched to selected states, the NNPC said 467 truckloads of PMS, comprising 15.41 million litres was dispatched to Lagos; 141 trucks, carrying 4.65 million litres was dispatched to Abuja; while Kano, Port Harcourt and Kaduna received 759,000 litres, 957,000 litres and 1.188 million litres respectively.

Ebonyi, Ondo, Sokoto and Borno got 132,000 litres, 495,000 litres, 264,000 litres and 231,000 litres respectively, while Cross River and Plateau received 528,000 litres and 297,000 litres respectively. The NNPC further stated that it has 17 days sufficiency up from three to four days sufficiency in March at the peak of petrol shortage, while it appealed to motorists not to engage in panic buying.

Credit: vanguardngr

NNPC Staff Abducted By Gunmen

A staff of the Nigerian National Petroleum Corporation (NNPC), identified as Yusuf Abdulkadir has been reportedly abducted by unknown gunmen in Kaduna.
Abdulkadir, who is a staff in the NNPC Abuja office was said to have been abducted on Saturday at his residence in Rigachiku, Igabi local government area of Kaduna State.
It was gathered that the incident occurred at about 10pm on Saturday when he was whisked away to an unknown destination.
According to a family source, the gunmen trailed him while he was returning to his house and picked him up.
”They trailed him to the house yesterday dragged him out of his car at gun point and whisked him away.
”He works at NNPC Towers, Abuja, but on weekends, drives to Kaduna, where his family members reside,” the source added.
The matter has been reported to police but efforts to reach the Kaduna Police Public Relations Officer, Zubairu Abubakar on the development proved abortive as his phone was switched off as at the time of filing this report.
Three clergymen, Dr Emmanuel Dziggau, Yakubu Talba Dzarma and Iliya Anto who eventually died in his abductors’ custody, were kidnapped on March 21 while another Colonel Samaila Inusa was abducted and killed on 26th of March, 2016, in the state.

Credit: Nation

NNPC Spends $1.8bn On Fuel Import Per Quarter – Rabiu

The Nigeria National Petroleum Corporation (NNPC) said on Wednesday that it spends $1.8 billion in 90 days to import fuel.

The Group Executive Director Upstream of NNPC, Mr Bello Rabiu, stated this while addressing State House Correspondents.
According to him, the organisation spends between $16 million and $20 million on imports daily totaling about $1.8 billion per quarter.
Rabiu was reacting to the inability of the nation’s refineries to provide the local needs of consumers. He said that the organization had to rely on importation to satisfy local consumption.
He said that import bill depended on both volume and the price adding that a cargo of product, about 40 million litres, as at today costs about $13 million to $14 million dollars.
He said that the country produced about 2.2 million barrels of crude per day but only about one million belonged to NNPC through 60 per cent equity in the Joint Venture.
“The average equity crude for sale is not up to one million barrels which means that the total amount of money we can get is about $40 million dollars’’, he said.
According to him, if half of the amount is used to import products, it leaves a lot of implications for the economy.
He said that the organisation also spent money to produce which reduced the accruals. “We spend about $30 million to produce.
“We try to maximize what is available’’ he said, adding that over 90 per cent of other imports were financed by the oil sector.
“That is why we said we need to diversify, export more and import less’’, he noted.
He said that more countries now produced oil and that some producers that came out of crisis such as Libya had joined in the crude market.
He said it was unfortunate that most of the oil producing countries were import- dependent.
He said that for the local refineries the nation could not get more than 15 million to 20 million litres of PMS out of them but could produce enough kerosene and DPK (diesel) if they operated at 90 percent installation.
The Group Executive Director, Refinery, Mr Anibor Kragha, said the operators were focused on increasing fuel supply to markets outside Lagos and Abuja.
On the pipelines, he said most of them were on pressure testing to ensure safety before pumping through them.
He said that the Enugu depot would take some time to be revived but added that Aba depot was ready to service the entire East.
He said that between Aba and Enugu, a lot of pipelines were removed and taken away by vandals and needed to be replaced.
“We just have to work on that one and we can pipe from Aba to Enugu then to Makurdi and Yola.’’


NNPC’s MD Not Arrested By EFCC

Contrary to reports, the Managing Director, Nigerian National Petroleum Corporation, Retail, Mrs. Esther Nnamdi-Ogbue was not arrested by the Economic and Financial Crimes Commission (EFCC).
A youth group, Young Professional Alliance for Change which denied reports of her arrest said Mrs. Nnamdi-Ogbue was only invited by the EFCC to clarify certain operational issues which she promptly did and was allowed to return home on the same day.
The group in a statement by its General Secretary, Mr. Chukwudi Ifediora, described reports of the NNPC’s top executive as a campaign of calumny by some detractors who were envious of the giant strides and achievements of Mrs. Nnamdi-Ogbue while she presided over the affairs of the Petroleum Products and Marketing Company (PPMC).
It said some mischief makers were uncomfortable with the strides recorded by Mrs. Nnamdi-Ogbue in the NNPC from her days as the General Manager, Board Matters and Management Committee Department (BMMC) in the Corporate Secretariat and Legal Division (CSLD) to the Petroleum Products and Marketing Company, (PPMC) which she headed before her latest promotion.
‘’ Without doubt, Mrs. Nnamdi-Ogbue is one of the shining light of the NNPC and she was very conscious of her duties and discharged them creditably. In fact, she was appointed the Managing Director of PPMC based on her pedigree in NNPC.
” The truth of the matter is that, she was invited and she naturally honored the invitation since she had nothing to hide. Moreover, she is one of the proponents of change in NNPC and her style of administration is still being spoken of in glowing terms in PPMC till tomorrow, ’’ the group stated.

Credit: Nation

Refineries To Resume Operations This Month – NNPC

The Nigerian National Petroleum Corporation, NNPC, on Sunday said refineries will resume operation for local consumption this month so as to end the lingering fuel scarcity in the country.
Addressing newsmen after inspecting some petrol stations in Abuja, the Group Executive Director/ Chief Operating Officer, COO, NNPC, Downstream, Henry Ikem Obih said all the refineries were at various stages of resumption.


Obih also disclosed that NNPC had taken delivery of four vessels of refined petrol that are at various stages of distribution across the country.


“We are working extremely hard to ensure that we eliminate the queues. What we have seen today is encouraging but we are still not there. We will be there when you go into a couple of filling stations and you are able to buy fuel and drive away. Our refineries will commence refining sometime this month,” he said.

Credit : Daily Post

Explosion Rocks NNPC Filling Station In Yola

A deadly explosion has rocked Yola, sending wild flames into the atmosphere. The deadly explosion, which occurred at the Wuro-jobe area of the metropolis, around 8pm is believed to have claimed two cars, which were charred beyond repair, sending motorist who queued around the vicinity to scamper for their dear lives.

No live was claimed in the explosion, eye witness said.

The explosion, according to a military officer who spoke from the scene, was from a filling station belonging to Nigerian National Petroleum Corporation, licensed marketer.

According to him the fire which has been raging for over an hour, has defied the intervention of fire fighters stationed at Faro bottling company located at  wuro-jobe the scene of the incidence.

The cause of the fire still remains unknown at the time of filling this report.

But eye witnesses who rushed to the scene following the explosion, are lamenting the severity of the fire which they claimed had been amplified by the petroleum products contained in underground tank of the filling station.

Credit: Punch

How We Are Going To End Fuel Scarcity- NNPC

The Nigerian National Petroleum Corporation(NNPC) has reassured Nigerians of its commitment to end the persistent fuel scarcity in the country.

This is contained in a statement signed by Mr Garba Deen Muhammed , Group General Manager, Group Public Affairs Division, on Monday in Abuja.

“We wish to re-assure Nigerians that we are on top of the petroleum products supply and distribution situation and we remain committed to eliminating this endemic issue once and for all within the next few days.

“We genuinely empathize with the attendant sufferings and wish to reassure that we are focused and committed to bring an end to this situation within the next few days.

“We kindly call on all Nigerians to partner with us on this journey to allowing the whole process of change come into fruition,” it said.

It said the current administration inherited a huge catalog of issues and problems in the downstream sector not limited to arrears of subsidy payments to Oil Marketers.

Other issues, it said, included corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines and poor performance of refineries, among others.

It noted that a combination of these issues resulted in most oil majors completely pulling out from the importation business .

This, it said, led to NNPC assuming a near 100 per cent importation obligation without the necessary logistics put in place.

It said the NNPC Management had initiated and made progress on various key solutions to providing a lasting end to these issues.

It added that with the firm support of President Muhammadu Buhari and the National Assembly, the debt burden had been reduced since Jan. 1.

“We have been able to eliminate subsidy payments by managing prices at current levels through price modulation.

This has resulted to savings of over N100 billion monthly for the nation.

“Nationwide Petroleum supply and distribution have been ramped up to all states to ensure product availability in the country,” it said .
According to the statement, the current supply to states is in excess of the normal consumption especially in the five major consuming cities.

It added that monitoring had been intensified to ensure full compliance with approved prices adding that violations of approved prices and hoarding of petroleum products attracted penalties.

The penalties include giving out of petroleum products free to the public and sealing off fuel stations found to be hoarding petroleum products and payment of a fine.

Others were withdrawal of Marketer’s Licence and penalising any NNPC, DPR, PPPRA or government agent found conniving and wanting in line with public service guidelines and procedures.

It encouraged the general public to report product hoarders and saboteurs of the change efforts .

“We encourage everyone to shun panic buying and undue return trips as this attitude emboldens marketers to hoard products.

“Supply constraints due to foreign exchange challenges are being resolved through collaboration with the Central Bank of Nigeria on innovative ways of closing the gaps in accessing foreign exchange,” it said.

The statement noted that the major international upstream oil companies had indicated their willingness to support major oil marketing companies with some of the required foreign exchange.

It added that corporation was pursuing an improved model for ‘crude oil for refined product’ exchange (the Direct Sale – Direct Purchase arrangement).

This, it said had eliminated inefficiencies with an attendant cost saving for the nation of about one billion dollars.

It said that the corporation in the medium term was working on sustainable strategies to permanently address the issues and challenges facing the midstream and downstream sectors.

“The overarching objective is to make Nigeria a net exporter of petroleum products as was the case in the 1970’s.

“Our commitment to ramp up our local refining capacity and availability remains unwavered with the ongoing rehabilitation works targeted at running all refineries at a minimum 70 per cent capacity utilisation within the next six to eight months.

“This is in addition to our initiative of increasing the combined capacity of the domestic refineries through co-locating smaller but cost efficient modular refineries within the existing refineries premises within a time frame of 12 to 24 months,” it stated .

It added that NNPC had secured presidential approval to take additional crude oil volume to guarantee national supply of petrol.

To curb storage and logistics challenges, it said, the corporation was working on a joint partnership with technically and financially capable investors.

It said this would help to ensure that petroleum products transportation and storage facilities were efficiently operated on an open-access common-carrier user-tariff basis.

It added that some of these depots would be nominated as strategic reserves while the NNPC would take possession of a strategic reserve vessel in the next three months.

It expressed the hope that tangible results would be delivered within the next three to six months.

Credit: Guardian

Kachikwu Lauded Over NNPC’s Re-Organisation

Niger Delta Indigenous Movement for Radical Change, NDIMRC, has commended the Minister of State for Petroleum and Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachukwu, for the re-organisation of the corporation.


In a statement by its President, Nelly Emma, the group hailed the minister’s action.


It also urged senators and members of the House of Representatives to support the reorganisation and give the minister the necessary backing.


It said: “The action at the NNPC will go a long way in eliminating bureaucracy in the operations of the corporation. As it is now, each of the constituent units in the restructuring will be profit driven.


“We are also in full support of the conversion of the Group Executive Directors, GEDs, by the Minister to Chief Executive Officers, CEOs and their redeployment to the various business components.


“The former GEDs never helped the corporation as they were behind the frequent fuel scarcity in the country and strikes by oil workers. Since the former GEDs have so much money, they used their money to frustrate all plans of the Federal Government to make NNPC a better place. Nigerians are going to reap the benefits of the unbundling of the NNPC very soon.


“All moves made in the past to reposition NNPC for profitability were thwarted by former GEDs.”


They never helped the corporation as they connived with oil majors to create artificial fuel scarcity in the country. They also sponsored strikes by oil workers,” the group claimed.

Ibe Kachikwu Promises End To Petrol Scarcity In Two Days

The Minister of State for Petroleum Resources, Mr. Ibe Kachikwu , yesterday, assured Nigerians that the fuel crisis that appears to be crippling the nation’;s economy would end within the next two days, while he promised to work with the Central Bank of Nigeria, CBN, in addressing the foreign exchange challenges confronting major oil marketers.

Speaking during a tour of petrol stations in Abuja, Kachikwu apologised to Nigerians for the pains brought about by the scarcity, while he stated that the Nigerian National Petroleum Corporation, NNPC, deploys 300 truckloads of fuel to Abuja on a daily basis, while supply has also been increased across the country.

He said, “We have enough coming in. Obviously the two days of strike hit us very badly but we are flooding in, getting an average of 300 trucks a day into Abuja; it’s going to take a bit of while for the queues to finish but we are hoping that between the next one-two days we should have the queues all disappear because we are continuing to pump in, while a lot of the stations are open 24 hours a day.

“I apologise to Nigerians for all the pains; nobody wants to see people spend two hours on the fuel queue. The president is very bothered about the sight of people waiting for fuel. “ He said talks had begun with the CBN to help major oil marketers in Nigeria access foreign exchange to import petrol into the country.” He said,

“We are doing everything we can; NNPC is taking the whole nation on its shoulders while majors are really not bringing in product; but we are working long term solutions to majors to now begin to go back to importation lane and be able to service their own outlets rather than us servicing our outlets, independents, majors and servicing everybody; its a lot of wear and tear on our capabilities as a status.

“Long term obviously we have got to systemically look at how do you prepare this nation in circumstances where there are emergencies to be able to respond; we are obviously not getting that as well as we should.

NNPC Appoints New Unit Heads (See Full List)

The Nigerian National Petroleum Corporation (NNPC) has announced new appointments, redeployment and secondments into key positions of the organisation.

In a press statement by the management of the Corporation, these appointments take effect immediately. The new unit heads are expected to resume fully by April 1 2016”.

The appointments are part of the recent reorganization by the management of the corporation.

They are as follows:

Appointed GEDs/COOs
Upstream – Bello Rabiu
Downstream – Henry Ikem–Obih
Refineries – Anibor Kragha
Gas and Power – Saidu Mohammed
Ventures – Babatunde Adeniran
Finance & Accounts – Isiaka Abdulrazaq
Corporate Services – Isa Inuwa

GGMs Strategy & Execution (Supporting the GEDs/COOs)
Downstream – Surajdeen Afolabi
Refineries – Ugochukwu Afamefuna Vitalis
Gas and Power – Yusuf Matashi
Ventures – Ladipo Fagbola
Finance and Accounts – Ahmadu Sambo
Corporate Services – Modupe Bammake
Strategic Business Unit Heads
Upstream MD IDSL – Roland Ewubare

Downstream MD Retail – Esther Nnamdi-Ogbue
MD Nigeria Petroleum Marketing – Ahmed Farouk
GGM Marine Logistics – Dalhatu Makama

Refineries MD PHRC – Bafred Enjugu
MD WRPC – Adewale Ladenegan
MD KRPC – Idi Mukhtar

Gas & Power MD Gas & Power Investments – Samuel Ndukwe
MD NGMC – Mazadu Bako
MD NGPTC – Babatunde Bakare

Ventures MD Properties – Danny Sokari George
MD Shipping – Saidu Abdulkadir
MD NETCO – Aliyu Sikiru
MD NOFS – Lawrencia Ndupu
GGM RED/Frontier Exploration Services – Rabiu Suleiman
GGM Medicals – Oyetunde Olubunmi Oyekan

GMD’s Office MD Trading – Inuwa Waya
GGM COMD – Mele Kyari

Corporate Services Unit Heads
Finance & Accounts Financial Controller – Mike Balami
GGM Treasury – Dapo Segun
GGM Liabilities Management – Godwin Okonkwo
NNPC Capital – Aliyu Zubair Sambo
MD Pensions – Danbello Naadiyalle
GM Insurance – Mrs. Izilen Okosun

GMD’s Office GGM NAPIMS – Dafe Sejebor
GGM Govt. and Labour Relations – Ndu Aghumadu
GM Efficiency Unit – Bala Wunti
GGM CSLD – Chidi Momah
GGM CSR – Ohi Alegbe

Corporate Services GGM ITD – Inuwa Danladi
GGM HR – Adekemi Akitoye
GGM GPAD – Mohammed Deen Garba
GGM ETD – Farouk G. Sa’id
GM SCM – Sophia Mbakwe
GM Group Security – Sam Otoboeze
GM HSE – Maduebo Mbakwe
GM Group Admin Services – Eziaha Uchendu

GGM NNPC Leadership Academy – Ayatode Oyinlola

E& P Dr M Baru– Technical Adviser Gas (Ministry of Petroleum Resources)
Abubakar Mai-Bornu Sadeeq (formerly MD NPDC to DMD NLNG)
R& T Engr. Nnamdi Ajulu – Consultant Refinery & Infrastructure (Ministry of Petroleum Resources)

Credit: ChannelTv

We Are Not Unbundling NNPC – Kachikwu

The Minister of State for Petroleum Resources, Mr Ibe Kachikwu, on Wednesday in Abuja dismissed the assertion that the Federal Government had commenced the unbundling of the Nigeria National Petroleum Corporation (NNPC).


Kachikwu, who is also the Group Managing Director (GMD) of NNPC, made this known while fielding questions from State House correspondents.


He said that what the corporation did was reorganisation of the corporation to achieve greater efficiency in the oil sector of the nation’s economy.


“We have not unbundled NNPC. We had a press conference yesterday where I explained this.

“What we have simply done is reorganisation. We have five business entities focused on business- Upstream, Downstream, Refineries, Gas and Power, that are there before.

“There is also ventures that capture all our little companies that were not having proper stewardship.

“They are run by individuals who report to the GMD. The NNPC is still a whole. There is nothing new that has happened.

“I have tried to explain this and I am sure the NNPC workers are members of the family, they will understand.

“We are going to have a meeting, and they will be made to understand. Perhaps the engagement has not been good enough.

“NNPC has not been unbundled in the sense of breaking up NNPC into distinct institutions. I am concerned.

“I don’t want the industry shut down. I am sure we are going to resolve the issues very soon,’’ he further explained.


Meanwhile, governors of Benue, Plateau and Bauchi states, Samuel Ortom, Simon Lalong and Abdullahi Abubakar, respectively, on Wednesday, paid condolence visit to President Muhammadu Buhari.
The governors commiserate with Buhari over the death of Minister of State for Labour and Employment, James Ocholi.


Gov. Ortom told State House Correspondents that he did not only commiserated with the president on the death of Ocholi, but also briefed him on the happenings in his state.


“I decided to come and brief Mr President and to appreciate him for standing by Benue in their times of challenge of herdsmen invasion of the state.

“I’m also here to commiserate with the President over the death of our brother, the Minister of State for Labour, the whole of Benue was in mourning state because Ocholi was a very good friend to the entire people of Benue.

“He was with me during the Christmas; he was with me just three weeks ago.

“We prayed that the Almighty God will bless his soul and those of his family members,’’ he said.




‘Why We Are Opposed To The Unbundling Of NNPC’ – Oil workers

NNPC workers who started a national wide strike this morning over the unbundling of the national oil corporation, say they are opposed to the new policy because the Minister of State for Petroleum Resources, Ibe Kachikwu, did not consult with all parties involved in the before announcing the unbundling.

 In an interview with Premium times, the Acting General Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Lumumba Okugbawa, said PENGASSAN, and the National Union of Petroleum and Natural Gas Workers, NUPENG, will not accept the unilateral restructuring

“We do not accept any unilateral and arbitrary restructuring. The minister cannot restructure NNPC without carrying all stakeholders along. The minister cannot run the industry as a private estate. He must carry all Nigerians along. With such a massive decision-making, a lot of things would be affected, particularly its implication on workers interest. We are unaware of what is happening. It is not fair that the workers are hearing about the restructuring in the media just like every other person. He is just creating unnecessary confusion in the polity. If the minister says he wants to restructure NNPC, has he repealed or amended the NNPC Act of 1977? What happens to the PIB (Petroleum Industry Bill), which has NNPC restructuring as one of its key objectives? Has it been jettisoned, or is there a new PIB? These are fundamental questions that the minister has to answer”he said

Fuel Crisis Looms As NNPC Shuts Down Nationwide Over ‘Unbundling’

Oil workers have shut down the operations of the Nigerian National Petroleum Corporation (NNPC) nationwide following Tuesday’s unbundling of the corporation. Members of staff and management of the corporation arrived their various offices on Wednesday morning to discover that they could not gain entrance following the total strike.

The immediate impact of the strike will be nationwide fuel scarcity as products will not be lifted by NUPENG. It is not expected to affect the crude oil export yet except the Department of Petroleum Resources (DPR) joins in solidarity. Ibe Kachikwu, minister of state for petroleum resources who
doubles as the NNPC group managing director, had announced the creation of seven independent units on Tuesday, namely downstream, gas and power, refineries, ventures, corporate planning and services, and finance and accounts.

The group executive committee (GEC) of the the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the National Union of Petroleum and Natural Gas Workers (NUPENG) convened an emergency meeting at 10pm on Tuesday to discuss the development.

At the end of the meeting, GEC sent this message to all members: “The GEC of NUPENG & PENGASSAN at its meeting of 8th March 2016, which started at 10:00pm has extensively discussed the pronouncement of the GMD on NNPC UNBUNDLING. We observed that the GMD/HMSP totally disregarded due process and failed to engage STAKEHOLDERS. Hence, from midnight today, ALL NNPC LOCATIONS will be SHUT DOWN COMPLETELY until further notice.

Further directives will be communicated accordingly.” When TheCable visited the NNPC headquarters on Wednesday, hundreds of the corporation’s staff littered the road causing gridlock on Herbert Macaulay way. Unionists in red were at the scene barricading the entrance to the NNPC building. Also, security agents were on hand to forestall break down of order.

A staff member of the NNPC, who spoke on condition of anonymity, told this newspaper that he was at the corporation’s building as of 7:30am on Wednesday but met “it barricaded by members of PENGASSAN.”

The Cable tried to speak with one of the leaders of the union, but he said: “We are not here for journalists. This is not for the press.” Kachikwu had said the distribution of subsidiary companies of the corporation would further be restructured into direct management of the divisions. Last week, Kachikwu announced that the government was planning to unbundle the corporation into 30 profitable companies.

Source – The Cable

Nigerian Govt Unbundles State Oil Company, NNPC, Into 7 Units

President Muhammadu Buhari on Tuesday approved the immediate unbundling of the Nigerian National Petroleum Corporation, NNPC, into seven independent operational units.

The Minister of State for Petroleum Resources, Ibe Kachikwu, who announced the unbundling of the national oil company in Abuja, said five of the seven operational units will be strictly business-focussed in line with global best practices of national oil companies.

The new units include those for Upstream, Downstream, Gas & Power, Refineries, Ventures, Corporate Planning & Services and Finance and Accounts.

Each of the units would be headed by chief executive officers, namely Bello Rabiu for Upstream; Henry Ikem-Onih (downstream); Anibor Kragha (Refineries); Saudu Mohammed (Gas & Power), while Babatunde Adeniran, Ventures.

The Group Executive Director in charge of Finance & Services would be Isiaka Abdulrazaq, while the Executive Head, Corporate Services will be Isa Inuwa.

All appointments take immediate effect.

Credit: PremiumTimes

NUPENG, PENGASSAN Condemn Moves To Unbundle NNPC

Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, and its Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN counterpart, have said moves to unbundle Nigerian National Petroleum Corporation, NNPC, into 30 companies without following due process by the Federal government, is illegal.


NUPENG and PENGASSAN in separate statements yesterday, said the moves was an attempt to provoke the Oil and Gas workers and cause industrial unrest in the country In the statement by its Acting General Secretary, Joseph Ogbebor, NUPENG said:


“We condemn the unilateral action of the Minister of State, Dr. Ibe Kachikwu, as the decision is not in consonance with the laws establishing the NNPC. The unbundling and rebranding of NNPC as announced by the Minister of State is another public policy change which is not consistent with the Act and Laws establishing NNPC and will be resisted by Oil and Gas workers in the country. ”


NUPENG will not tolerate a situation whereby the unbundled companies will now hide under the cover to start disengaging its workers. Job creation and job security has been the change mantra of the current administration.


The move is to kill the NNPC by all means but that government officials should know that the Corporation is a creation of law and that it will take the repealing of the original Act to effect the changes that they are planning to do. On its part, PENGASSAN in a statement by its Acting General Secretary, Lumumba Okugbawa, said the government’s move is tantamount to a somersault.


He said, “There is an existing NNPC Act of 1977 that set up the NNPC. This Act has many provisions that deal with structure and operations of the corporation. There are many issues such as pensions and transfer of the employees, which are provided for in the NNPC Act of 1977. What will happen to all these provisions of the law?

”For the government to do anything with the current NNPC, the Act must either be repealed or amended to accommodate the planned restructuring. If not done, it will equal to lack of respect for the rule of law on the part of the government.

“The Petroleum Industry Bill, PIB, that is expected to be the legal instrument for the ongoing reforms of the Oil and Gas industry will be meaningless if the Government should introduce plans outside the reforms, The PIB is germane to the development of the nation’s Oil and Gas Industry.”


Credit : Vanguard

$24bn contracts: Diezani Shuns Reps Panel

The immediate past Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, on Wednesday failed to appear before the ad hoc committee of the House of Representatives investigating the crude oil swap contracts of the Nigerian National Petroleum Corporation.

The former minister neither appeared in person nor sent a representative to the hearing of the committee, which is chaired by an All Progressives Congress lawmaker from Kwara State, Mr. Zakari Mohammed.

The committee had summoned Alison-Madueke and a former Managing Director of the Pipelines Product Marketing Company, Mr. Haruna Momoh, in connection with the lifting of crude oil worth $24bn in exchange for refined petroleum products.

Two crude oil trading firms, Duke Oil and Tranfigura reportedly lifted the crude oil between 2011 and 2014 without valid contracts.

The summons were issued after three former GMDs of the NNPC – Mr. Austin Oniwon, Mr. Andrew Yakubu and Mr. Joseph Dawha – had informed the committee that Alison-Madueke “approved” the contracts without signing any valid agreements with the firms.

On Wednesday, however, the former minister failed to show up at the committee’s sitting.

Momoh too did not come.

Instead, he sent his younger brother, Mr. Suleiman Momoh, to inform the committee that he was ill and would not be able to appear before the panel on Wednesday.

Mohammed was left bewildered when he called for appearances and realised that Alison-Madueke was absent.

He said the committee would take the “appropriate steps” to address the absence of the former minister, but he did not elaborate on the nature of the steps.

Mohammed stated, “Anybody who knows the former minister and Momoh should tell them that they are daring the parliament and we will take the appropriate measures against them.”

However, Momoh’s younger brother, Suleiman, rose to register an excuse that his elder brother was ill.

“He is ill and he will not be able to attend this session of the committee,” Suleiman added.

The committee rejected Suleiman’s excuse and directed him to tell Momoh that he must appear before the panel.

Meanwhile, the Federal Inland Revenue Service told the session that Transfigura defaulted in tax payments to the Federal Government to the tune of $642.5m.

The agency disclosed that in 2010, the tax value of the firm’s trading was $613.7m; in 2011, it was $2.7m; and $2.5m in 2012.

It added that the tax value in 2013 was $2.4m; and $2.2m in 2014.

The agency explained that after applying the relevant tax laws to the operations of the firm for the period covered, the total tax liability stood at $642.5m.

In the case of Duke Oil, the FIRS informed the panel that it calculated $4.7m as its total tax liability.

“The computation was based on the commissions Duke Oil charged on its services,” the agency said.

The committee also asked the Nigeria Customs Service to ignore a 2008 directive by the Ministry of Finance that the NCS should not inspect petroleum product cargo declared by importers.

The NCS had told the committee that the directive was given to forestall any possible delay in the offloading of products for distribution downstream.

Mohammed noted, “The Customs and Excise Act is more important than any letter from any ministry in 2008.

“We will invite the Permanent Secretary, who issued that directive, to appear before us and explain why it was necessary.”

“The NCS should ignore that letter forthwith.”

NNPC Takes Delivery Of 4 Petrol Cargoes

The Nigerian National Petroleum Corporation (NNPC) took delivery of four more cargoes of premium motor spirit (petrol) over the weekend to keep the flow of the commodity.

The deliveries which amount to about 180 million litres are part of a new arrangement by the corporation to have a cargo of PMS delivered daily as from March. The NNPC made the announcement in a statement signed by its spokesman, Ohi Alegbe.

 He said the minister of state for petroleum resources, Ibe Kachikwu, had warned depot owners against selling petrol above the approved ex-depot price of N77 per litre.

Credit: dailytrust

NNPC Warns Public Against Fake Recruitment

NNPC has warned the public to disregard any invitation on recruitment exercise. In a statement made available to journalists by its Group General Manager, Group Public Affairs Division, Ohi Alegbe, the corporation called on members of the public to be wary of fraudsters sending letters to unsuspecting individuals inviting them for “the second process of recruitment” billed to hold on February 29, saying it is currently not recruiting. “The scam invitation letters, which directed recipients to pay the sum of N21,500 into a certain account number with Zenith Bank purportedly for ‘onshore and offshore/training kits/materials’ should be disregarded as they were not sent by the corporation,” the NNPC warned. It further warned that “anyone who entertains such invitations or deals with peddlers of such invitations does so at his or her own risk.”

The corporation urged anyone contacted for the purpose of the purported recruitment by the corporation to report such persons to relevant law enforcement agencies. Meanwhile, the Pipeline and Products Marketing Company, PPMC, has assured of ample products supply in the Lagos area following a hitch in the products supply system in the Lagos environs. The PPMC, a subsidiary of the NNPC, says it has intervened in the crisis which is arising from the leadership tussle between the Mobil branch and national office of the Petroleum Tanker Drivers Union. The PPMC stated that it has intervened in the dispute, assuring that normalcy will soon be restored. It further assured that there was sufficient stock of products in Lagos and across the country while advising motorists not to resort to panic buying, stressing that the situation was under control. The corporation further reiterated its commitment to uninterrupted product supply to the general public in keeping with its mandate of ensuring products sufficiency across the country. However, the Independent Petroleum Marketers Association of Nigeria, IPMAN, while insisting that the supply to Lagos is inadequate, has called on NNPC to step up import of Premium Motor Spirit (PMS) also known as petrol to avert another round of scarcity.

Credit: NationalMirror

Oil Benchmark To Stabilise By April – NNPC

The Nigerian National Petroleum Corporation (NNPC), said 38 dollars per barrel oil benchmark is feasible by April as projections suggest that prices will go above the benchmark then.

The Group Executive Director, Finance, NNPC, Isiaka Abdulrazak, stated this while briefing the Senate Committee on Finance in Abuja on Tuesday.

He said based on projections derived from economic activities across the globe, oil prices would not go below 40 dollars per barrel before the end of 2016.


“The winter in the Northern Hemisphere has been very aggressive this year which is good news for us because it is also helping with the oil price. By our projection and the analysis done by international analysts, the oil price should go back to well above 38 dollars per barrel.


Toward the end of the year, the most conservative projection for the end of the year is that the price will not go below 40 dollars per barrel.


So, we are confident that the current price of 38 dollars per barrel is attainable and sustainable from the budget”, he said.

Abdulrazak explained that the economic growth of India and the growth expectations of other economies also suggested that the demand for oil would also increase.

He expressed optimism that the tempo in oil and gas production would be maintained if security situation in the region was maintained.





‘EFCC Is investigating Diezani Alison-Madueke, Kola Aluko’ – Magu

The acting Chairman of the Economic and Financial Crimes Commission EFCC, Ibrahim Magu, says the former Finance Minister Ngozi Okonjo-Iweala, former Minister of Petroleum Resources Diezani Alison-Madueke and her associate Kola Aluko, are all on the investigating radar of the commission.

Magu said this while appearing before the House of Representatives Committee on Financial Crimes to defend the agency’s 2016 budget. He told the committee that the agency will soon move into the petroleum sector.

A member of the committee, Rasaq Atunwa, while speaking to newsmen after Magu’s presentation,

“I said the EFCC has recovered a lot of money for Nigeria and he (Magu) mentioned that in that regard, more sectors of the economy are likely to come under investigative activities. I said ‘will it include the petroleum sector’? He said, ‘yes’. And I said ‘would it include investigating the following people – Diezani Alison-Madueke, Okonjo-Iweala and a particular oil magnate’, and he said ‘yes’; those people are already under their investigative radar.”he said

Alison-Madueke, was last year arrested by the National Crime Agency in the UK over allegations of money laundering and fraud.

NNPC To Establish 800 Retail Outlets

The Nigerian National Petroleum Corporation (NNPC) is set to establish 800 additional retail outlets across the country, Dr Babatunde Adeniran, the Group Executive Director has said.



He spoke on Friday in Ilorin, when he led the NNPC team on a courtesy visit to Gov. Abdulfatah Ahmed of Kwara at the Governor’s Lodge.



He said that out of the 800 stations, three retail outlets would be established across the senatorial districts of Kwara.



Adeniran said already 503 retail stations had been established across the country; while six outlets were in Kwara, with only one solely owned by the NNPC.



He sought for allocation of land in the three senatorial districts to enable the corporation build its outlets in the areas.



Adeniran said that efforts were on to resume full operation at the Oke-Oyi depot, with a view to bringing relief to the oil marketers and the public.



He pointed out that the activities of vandals through Atlascove, Mosinmi and Ibadan had limited upstream activities to Oke-Oyi depot.



In his response, Gov. Ahmed, assured that his government would continue to be supportive of ideas and activities that would create employment opportunities and boost economic activities.



The governor called for efficient and effective distribution system of oil products.



Gov. Ahmed stressed the need for stronger collaboration among security agencies in checking activities of pipeline vandals across the country.



Large Oil Bunkers Depot Discovered In Lagos

An expanse of land hidden at Roberts Island, a village off Lagos waters near Atlas Cove, where oil bunkers perforate oil pipelines and steal oil products, was yesterday discovered and exposed by a team led by the Petroleum Minister, Ibe Kachiukwu.

A search around the place showed equipment used by the oil bunkers to perforate oil pipelines and then store the products in the kegs pictured above.

The kegs and the tools used for vandalization were all found buried in the ground. It appeared all
dwellers in the community had a role in the vandalism as not one of them reported the matter to the police.

Dr Kachikwu could not hide his disappointment as he spoke to newsmen after the discovery.

“I must say that I was very disillusion to find this discovery but much as I was happy that it was found, it just took a lot of wind off my sail in the sense of what next and who knows how many more have not been discovered.? At the end of the day, the responsibility for protecting the assets of Nigerians must lie in the hands of Nigerians. There is no magic that I have that I am going to be able to deliver zero incident environment, given the number of attacks we are getting everywhere but at the end of the day, communities like these ones must begin to rise up and say this is just not right.”?he said

Kaduna, Port Harcourt, Warri Refineries Now Produce 6.76m Litres Of Petrol Daily – NNPC

The NNPC says the Kaduna, Port Harcourt and Warri refineries now produce over 6.76 million litres of petrol per day.


This is contained in a statement issued on Tuesday in Abuja by Mr Ohi Alegbe, NNPC’s Group General Manager, Group Public Affairs Division.


The statement said that the three refineries had been projected to increase combined production to over 10 million litres per day by the end of January.


It said a breakdown indicated that the Port Harcourt refinery, which was re-streamed a week earlier, produces about 4.09 million litres while Kaduna yields 1.29 million litres.


The statement added that Warri refinery, which was re-streamed on Sunday, posts a yield of 1.38 million litres.


It said the volume of petrol from the refineries currently operating at an appreciable percentage of their nameplate capacities would help stabilise supply and distribution in the country.




FG Plans Inter-Ministerial Committee To Fast-Track NNPC Reforms – Buhari

President Muhammadu Buhari said an inter-ministerial committee would soon be established to speed up the re-organisation and reformation of the Nigerian National Petroleum Corporation (NNPC).


The president said this in Abuja at a meeting with the Chief Executive Officer of the International Finance Corporation (IFC), Jin-Yong Cai, at the Presidential Villa, Abuja.


Buhari said that reforming the NNPC had become inevitable in view of the corruption and abuse of its present structure in the recent past.


He also cited Nigeria’s current need to maximise income from every source of revenue as a further imperative for reforming the NNPC.


He said government was making efforts to boost national revenue so that it could effectively implement its programme of change and significantly improve the living conditions of Nigerians.


Cai, who is also the Vice President of the IFC, said with proper reform and re-organisation, NNPC could become Africa’s largest company.


“You have brought monumental changes since you got to power. You have brought in strong leadership and Nigeria has the opportunity under you to become highly reputable.


In NNPC, you can create an entity that is dominant in Africa, and this is the right time to do it, with the momentum you have created,” he said.




NNPC To Announce 85 Naira Fuel Pump Price In January

Minister of State for Petroleum, Dr. Ibe Kachikwu says the NNPC will announce a pump price of 85 naira per litre of petrol in January 2016.

Dr. Kachikwu said that the new pump price is according to a PPPRA template which he signed off on Wednesday which will be the first reflection of the price modulation that will kick off fully in the petroleum sector by January 2016.

Dr. Kachikwu, who took a tour of the refineries in Port Harcourt on Christmas Day, said that the price modulation is to help ensure the fluctuation of prices to reflect the realities of the crude oil market.

He, however, said that all efforts were being made to get the refineries to start up to 60% production also in January that will supply about 11 million litres of petrol daily.

“If you look at the new PPPRA template that we developed and which I just signed off two days ago, when it is announced you will find out that for now (and I use the emphatic word of the President ‘for now’), the price of the refined product will actually be lower than 87 naira, It will be 85. We will probably announce that in January if the prices hold.

“What that does for you is that its modulating. If it goes up you move up, if it comes down you come down. So we take away the fact of having to go find funds to pay for these subsidies that we cannot afford.

“More importantly we try to be as close to the pump price that we have now as possible,” he said.

Credit: ChannelsTv

Fuel Scarcity: 567 Truckloads Of Fuel Dispatched Nationwide – NNPC

The Nigerian National Petroleum Corporation (NNPC) has deployed about 200 truckloads of fuel to Abuja to help reduce the ongoing fuel scarcity and ease Yuletide celebration.


This is contained in a statement signed by Mr Ohi Alegbe, Group General Manager, Group Public Affairs Division, on Monday in Abuja.


“In continuation of the special intervention fuel supply for the Yuletide season, another 567 trucks have been dispatched nationwide today,” it said.


It further stated that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had directed the deployment of NNPC staff to filling stations across the country for effective monitoring of the distribution system.


This, it said, was to ensure the total eradication of queues from fuel stations across the country.


The statement said the minister, at an emergency meeting with senior staff of the corporation, said there were a number of challenges in the supply and distribution system that hampered efficient distribution of products.


According to him, it is time for NNPC to rise above the challenges by ensuring that the special intervention supplies are not diverted or hoarded.


“This calls for effective monitoring of the supply system, especially at the end points, to ascertain that what is trucked out from the depots is delivered at the designated fuel stations and dispensed to the public in the most efficient manner.


” We need you to be out there to help achieve this; we can’t be at ease while Nigerians are going through so much pain to get fuel,” Kachikwu stated.


He challenged the staff to volunteer for the monitoring, adding that standing up to provide creative solutions to challenges was what the new NNPC was all about.


The minister urged the staff to work towards achieving zero-queues at their various stations as soon as possible, adding that they should be ready to sacrifice their Christmas break if need be.


Also, the Group Executive Director, Commercial and Investment, Dr Victor Adeniran, called on staff on monitoring duties to work closely with the Rapid Response Team.


He urged them to report any situation that needed urgent intervention such as low stock, delayed arrival of trucks or any underhand dealing.


He added that the Rapid Response Team comprised Pipe lines Product Marketing Company staff and representatives of law enforcement agencies that could adequately handle any challenge.


He called on the staff to be vigilant and ensure that all the petrol designated for their various stations was delivered and dispensed to members of the public in a most efficient manner.




Accident Leaves 8 Injured At NNPC Mega Station

Two vehicles were on Monday involved in a head on collision near the NNPC Mega Station in Central Business District of Abuja.

The accident involved a Kebbi State Transport Service vehicle and a TATA Indigo saloon car with four passengers aboard each vehicle.

The eight occupants of the two vehicles sustained serious injuries and were conveyed to the Wuse General Hospital for treatment.





FG Orders Deployment Of NNPC Staff To Petrol Stations

The Federal Government, yesterday, ordered the deployment of staff of the Nigerian National Petroleum Corporation, NNPC, to petrol stations across the country to help check sharp practices and ensure the smooth supply and distribution of the product.
This was even as the NNPC stated that about 200 truckloads of fuel have entered Abuja, while another ?567 trucks have been dispatched nationwide under the special intervention fuel supply for the Yuletide season.
This was contained in a statement issued by the NNPC, after ?an emergency meeting between the Minister and senior staff of the NNPC in Abuja.
?The Minister of State for Petroleum Resources and Group Managing Director of the NNPC, Mr. Ibe Kachikwu, who gave the directive during the meeting, stated that the involvement of NNPC’s staff became necessary following the need to ensure total eradication of queues from fuel stations across the country and for effective monitoring of the distribution system.
He urged the staff to be ?ready to sacrifice their Christmas break if need be?, while he called on the staff to work towards achieving zero-queues at their respective stations as soon as possible.
He challenged staff to volunteer for the monitoring exercise, adding that standing up to provide creative solutions to challenges was what the new NNPC is all about.
Kachikwu further stated that though there were a number of challenges in the supply and distribution system that hamper efficient distribution of products across the country, it was time for NNPC to rise above the challenges by ensuring that the special intervention supplies are not diverted or hoarded.
He said, ?“This calls for effective monitoring of the supply system, especially at the end points, to ascertain that what is trucked out from the depots is delivered at the designated fuel stations and dispensed to the public in the most efficient manner. We need you to be out there to help achieve this; we can’t be at ease while Nigerians are going through so much pain to get fuel.”
Credit: Vanguard

Average National Oil Production Stands At 2.1m Barrels Per Day – Kachikwu

Minister of State for Petroleum, Dr Ibe kachikwu, said the average national oil production stood at 2.1 million barrels per day as at July.


This is contained in a statement signed by Ohi Alegbe, Group General Manager, Group Public Affairs Division, NNPC, on Wednesday in Abuja.


He said the Nigerian Petroleum Development Company (NPDC) equity production was 99,000 barrels per day.


He added that the declining Joint Venture reserves were due to inadequate and low investment in the oil assets.


The minister noted that issue of funding which had been identified as a major challenge to the sector would be addressed with adequate collaboration with the private and international investors.


Kacikwu said the average gas to power generation was about 3,000 megawatts and domestic gas supply of one billion standard cubic feet (scf) with the contribution of 600 million standard cubic feet from NPDC.


On the current state of the refineries, he said that two of the refineries might be re-streamed before the end of December.


“Efforts are on to engage private investors to build new refineries within the old ones to enable the refineries share power, pipelines and other resources,” he said.


He added that the new agenda for the Oil and Gas Industry would be centered on having the right people, doing the right things, at the right time.


This, he said, would be for the right purpose to yield the right results.


Kachikwu said the petroleum sector, under his watch, would ensure that the Nigeria Content policy would transform the Oil and Gas industry into the economic engine for job creation and national growth.


He said he was obliged to cancel the Offshore Processing Agreements (OPAs), crude-for-products-exchange arrangement (popularly known swap) and other unprofitable product and crude arrangements, all in a bid to avoid rent seekers.


He said the cancellation would help to add value to the Nigerian hydrocarbon resources.


On the downstream sector, the minister advocated for the introduction of a private sector model that would reinvigorate the efficient supply and distribution of petroleum products, especially in the area of pipeline assets.


“The menace of pipeline vandalism has led to huge losses of crude and petroleum products; 27,967 incidents of pipeline vandalism were recorded in the last few years.” he said.


He noted that unutilised pipelines and poor pipeline integrity also led to high cost of trucking and impact on the roads.




Petrol To Sell For N97 Next Year – FG

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said the country will need to revert to the old pump price of N97 per litre of Premium Motor Spirit, popularly known as petrol, next year.

Kachikwu said the nation’s economy could not adequately support the current price of N87 per litre.

He, however, added that the Federal Government might exit the subsidy regime if the current strategy invariably failed.

The minister stated this on Monday while defending his ministry’s projections as contained in the 2016 to 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper before the Joint Senate/House of Representatives Committee on Finance, Appropriation and Banking, Insurance and other Financial Institutions.

Kachikwu appeared alongside the Minister of Finance, Mrs. Kemi Adeosun; Minister of National Planning, Senator Udo Udoma; Central Bank of Nigeria Governor, Godwin Emefiele; Chairman, Federal Inland Revenue Service, Mr. Babatunde Fowler; and Director-General, Debt Management Office, Dr. Abraham Nwankwo, among others.

On January 18 this year, the former Minister of Petroleum Resources, Mrs. Deizani Alison-Madueke, announced that the Federal Government had approved the reduction of the pump price of petrol by N10 due to the fall in the global price of crude oil.

She stated that in effect, PMS was to sell for N87 per litre and directed all filling stations and the regulatory authorities to effect the change of price immediately.

But on Monday, Kachikwu explained that the Federal Government was considering a reversal to N97 per litre in order to ensure that it would no longer fund the subsidy scheme.

He said the issue of total subsidy removal would come after the nation had been able to convince itself that the reversal to N97 would still be costing the government extra funds.

The minister admitted that the government would pay over N1tn to fund petrol subsidy this year, which according to him, included the N670bn paid to the major oil marketers for the 48 per cent of the product imported, and the 52 per cent brought in by the Nigerian National Petroleum Corporation.

Kachikwu said, “The total subsidy figure for 2015, when taken along with the NNPC’s subsidy payment, will be in excess of N1tn. The current pricing work we are doing has shown that there shouldn’t really be subsidy. The government doesn’t need to fund subsidy.

“There is energy around the removal of subsidy. Most Nigerians we talk to today will say that’s where to go. I have since left the dictionary of subsidy by going to price modulation, which is a bit more technical.

“The price of refined petrol today is N87. It was N97 before it was reduced and we really have to go back to that because we don’t really have the finance to fund it. There are lots of safety barometers between the N87 and N97per litre regime. The government does not have to fund subsidy and yet the prices would have been fairly close to what it is today.

“That is the first mechanism we are going to work. It is when that mechanism fails that we will begin to look at a total subsidy exit. We believe we can achieve that.”

On the issue of daily oil production target, Kachikwu noted that from August this year, the country had been exceeding two million barrels through stringent monitoring of the production process by getting quick fixes for instances of pipeline breaks.

He said the projection for next year was in excess of 2.4 million barrels per day, which would come from enhanced and increased production from NPDC field.

The minister said, “A lot of efficiency has really been applied in this regard. The NPDC will, for instance, be producing 300,000 barrels on its own, while other partners would process at least 2.2 million barrels.

“We would address issues of security and other impediments to the realisation of our target. We are looking at a collective and holistic handling of security issues between the NNPC and the oil majors with us taking the lead.”

On the oil price benchmark of $38 per barrel, Kachikwu said the projection was based on the outcome of the Organisation of Petroleum Exporting Countries’ conference, adding that the conservative price would suffice if the Federal Government did not interfere in terms of production cost.

He expressed confidence that the price of crude oil would increase as from early January to around $50 per barrel in spite of OPEC projections, adding that it might also hit $70 per barrel in 2017.

Speaking on strategy to reduce costs of governance, the Finance minister explained that the Federal Government had taken measures to ensure that all government revenues were accounted for.

She said the days when MDAs would generate revenue and spend 99 per cent out of it were over, because all expenditure would henceforth be captured.

Source – punchng.com