Reps committee invites Emefiele, Kachikwu.

The House of Representatives on Thursday invited the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, and the Minister of State for Petroleum Resources, Ibe Kachikwu to appear before it on Monday, April 7.

The House ad hoc Committee on the Review of Petroleum Pump Price, which issued the summons, said the two were to explain issues over alleged diversion of foreign exchange by some oil marketers between 2016 and 2017.

Also invited are Chief of Naval Staff, Ibok-Ete Ibas, Chief Executive Officers of Keystone Bank and Zenith Bank, which were involved in the allocation of foreign exchange to oil marketers.

The chairman of the Committee, Nnanna Igbokwe, urged the Inspector-General of Police, Ibrahim Idris, to determine the whereabouts of Andrew Alagu, the managing director of HAR Petroleum Resources Ltd, by March 27.

“The invitation is to determine the involvement of the company in alleged diversion of 26 million dollars for importation of Premium Motor Spirit (PMS) under the Direct Sale Direct Purchase (DSDP) arrangement of the Nigerian National Petroleum Corporation (NNPC),’’ Mr. Igbokwe said.

He said the committee disregarded a letter from HAR Petroleum Resources Ltd absolving itself from engaging in importing the product and could not have sourced for and accessed foreign exchange from CBN.

According to Mr. Igbokwe, documents provided by Crude Oil Marketing Department of the NNPC confirm the company’s participation in the business.

“We have it on good authority that in 2014, your company applied and got over 11 million dollars, and in 2015, it got another forex of over 14 million dollars from Zenith Bank for the importation of petroleum products into this country.

“And you now deny ever engaging in product importation or any of such transactions with the NNPC retail outfits.

“Where did the 26 million dollars you took in forex from the bank according to CBN records go to?” Mr. Igbokwe asked the company’s representative, Jefferson Ogunma.

Mr. Ogunma said Mr. Alagu was away on official assignment outside the country and added that the company only handled logistical activities on behalf of Total Nigeria plc.


Source: NAN

Kachikwu wants Nigeria to domesticate bio-fuels initiative

Nigeria’s quest for bio-fuels as alternative to premium motor spirit, popularly called petrol, must ensure the domestication of supplies in the country, Minister of Petroleum Resources, Ibe Kachikwu, has said.

The minister, who spoke in Abuja on Tuesday while declaring open the national capacity building and sensitization workshop on bio-fuels, said changing the previous import-based bio-fuels policy was the best decision by government for the country.

“The Ministry of Petroleum Resources has a seven-point programme to ensure hydrocarbon-based fuels are delivered to customers in a sustainable manner, by removing structural problems in the industry and ensuring efficiency and productivity is brought around issues of fuel management in the country,” Mr Kachikwu said.

The minister, who was represented by his Special Adviser on Fiscal Strategy in the Ministry of Petroleum Resources, Tim Okon, said the country’s bio-fuels policy must consider challenges faced by government in delivering petrol to consumers.

He said the central framework of the bio-fuels policy must focus on delivering to the customer in a manner that was cost effective and removing distribution bottlenecks.

“Bio-fuels policy should reflect the concerns of funding, threats to food security, energy sustainability in the long term and also having an industry that does not create fiscal instability for the country.

“In many countries where fuel is E5 or E10 (that is mixing fuel with five or 10 per cent of ethanol), the industries are domestic. As we learn from many countries in the world how to add bio-fuels to the fuel mix, the industry must be domesticated,” he said.

The minister expressed the hope that bio-fuels policy that would be established would not require the NNPC to modify its import fuel tanks for ethanol and other chemicals that would add significant cost to its ability to deliver on key performance indicators for the ministry.

Besides, Mr. Kachikwu said, the policy must not require additional resources from government, to avoid creating additional macroeconomic instability in the system.

“Once the import-based bio-fuels import policy, which requires dollars to sustain, has been removed, government must avoid creating fiscal instability that it is trying to make uneconomic fuel economy,” he said.

On commerciality, the minister said a significant part of the bio-fuels guidelines must consider financial and business sustainability, pointing out that a viable bio-fuel industry must be accommodated in the market where people could exercise their choices to related fuels.

On the priority between food and fuels, the minister said government must consider the product and ensure that a subsidy scheme was established that would not create famine in Nigeria.

“If you drive resources towards fuel and create an imbalance in the food chain that will be a counterproductive effort. As part of the guidelines, we must look at how we can support a viable industry and at the same time not result in food insecurity.

“We must look at the long-term sustainability of bio-fuels with the perennial issue of oil price. Bio-fuels come in where oil prices are high, fuel prices have gone up and there is an opportunity to blend and still keep the price low. That means prioritisation must be in the context of the outlook of future oil prices.

The Executive Secretary, Petroleum Products Pricing Regulatory Agency, PPPRA, Victor Shidok, said the bio-fuels awareness programme was part of government renewable energy policy to diversify the country’s economy, conserve the forest, contribute to fuel supply stability, while providing clean energy to the country.

The workshop sponsored by the PPPRA in collaboration with Ministry of Petroleum Resources and NNPC, had the theme: “Bio-fuels: Nigeria’s New Economy”.

Adeosun, Kyari, Kachikwu on FG’s committee to ensure fuel remains at N145/litre.

The federal government has set up a committee to see to the coordination of Petroleum Equalisation Fund (PEF), which is aimed at keeping the pump prices of petroleum products at its current prices.

Kemi Adeosun, minister of finance; Abba Kyari, chief of staff to the president; and Ibe Kachikwu, minister of state for petroleum resources, are members of the committee.

This was disclosed by Bashir Dan-Malam, the state chairman of IPMAN, in an interview with NAN in Kano on Friday.

Dan-Malam advised members in Kano state to continue with their normal business, promising that the association would sanction anyone caught hoarding or selling the product above the approved price of N145.

“As leaders of the association, we feel it is necessary to tell our members the truth as the government has no plan to increase fuel price for now,” he said.

“This is a rumour. Anything you did not hear from us, ignore it.”

Dan-Malam said during a meeting with members of the committee, it was resolved that the union should reconcile with the Petroleum Equalisation Fund (PEF) on the outstanding payment of transportation charges.

“During the meeting it was agreed that a committee to be chaired by the Minister of Finance, Mrs Kemi Adeosun consisting of all stakeholders be set up with a mandate to reconcile all outstanding balances,” he said.

“The administration has clearly demonstrated its willingness to create an enabling environment for a viable and sustainable downstream sector in Nigeria and IPMAN is 100 per cent committed to achieving this goal.”

2017: FG to Award Oil Blocks, MarginalFfields, Pass PIB – Kachikwu

The Federal Government has unveiled a number of plans for the petroleum industry under the current fiscal year, which include conducting a new licensing round for the award of oil blocks and allocation of marginal fields in order to raise revenue for the country.

Besides, it promised that the long-awaited Petroleum Industry Bill (PIB), which has been renamed; Petroleum Industry Governance Bill will be passed this year, while also reducing petrol consumption in Nigeria from an estimated 50 million to 28 million litres daily, thereby saving about N3.2 billion daily from unaccounted volumes.

Given the reluctance by the international finance community to grant Nigeria the much-sought after loans amid dwindling oil proceeds, to enable the government execute its socio-economic programmes, the current administration need to rely on other ways and means to raise fund domestically.

Licensing rounds are a veritable avenue to raise quick funds for the government, which award a large expanse of land/oil block to exploration and production companies while also expanding the country’s production capacities, which is also.

The last administration had tried to execute a licensing round, but could not pull it off due to lack of confidence in the process, as it was feared that the oil block usually awarded to oil drilling and exploration companies would end up in the hands of political cronies, who will go hawking the licences.

If the plan works, the country will be on the way to meeting new production targets of 4 million barrels daily and 40 billion oil reserves, which it had consistently missed since 2010.

The PIB on its part is expected to form the nucleus of Nigeria’s aspiration to becoming one of the most industrialised nations in the world by the Year 2020, by boosting investment opportunities in the oil and gas industry, which had hitherto been stalled due to the non-passage of the Bill.

The Minister of States for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who disclosed of the plans in a podcast posted on his Facebook page titled: “Nigeria Petroleum Sector 2017 Outlook,” said the oil and gas sector is expected to run in ‘rocket pace’ this year.

He added that the areas of fiscal policy in the Petroleum Governance Bill is being finalised and would be looked at by the Executives and pushed out as the PIB.

He stated: “We have so much to do. We should be able to gazette our oil and gas policies and pass the PIB. We are going to accelerate Federal Government revenues by looking at more areas where the government can make more money.

“There is going to be improvement in royalty collection, improvement in early renewal of leases and every other area where we feel there is a gap.”

Kachikwu said government also hoped to finalise all the Memorandum of Understanding (MoUs) it entered into with China and India on crude oil export this year, adding that it is planning some road shows in the United Kingdom, Europe and the United States, to attract more investors into the oil industry.

He noted that the industry is expected to witness more activities in the year, while also reaffirming government’s commitment to providing long-term sustainable policies that would move the industry forward.

He said: “We have embarked on market liberalisation in the downstream sector. For the first time in over two decades, petrol is available all over the country and selling at the same price in all the states. We did not have the people in the Eastern parts of the country buying at a higher price while the people in the West buy at lower rate. It has been available all over the country at the same price per litre.

“We noticed that the consumption of Premium Motor Spirit (PMS) has shifted from over 50 million litres a day to about 28 million per day. This means we have been able to take away unaccounted fraud impacted volume of petrol, which is nearly 40 per cent of the country’s consumption.”

On the industry stability, he said Government will continue to look out for policies that would include a well-managed security apparatus that would bring lasting peace in the Niger Delta, adding that the engagement between the Federal Government and the Niger Delta militants has reduced the level of unrest in the region.

This, he said, led to an increase in the country’s crude oil production from 1.3 million barrels per day recorded during the unrest to 1.9 million barrels daily.

Kachikwu halts ExxonMobil’s sack of Nigerian staff

Ibe Kachikwu, minister of state for petroleum resources, has halted the sack of Nigerian employees at ExxonMobil Nigeria, but until January 10, 2017.

Kachikwu met with the the management of the oil company and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Tuesday at the NNPC House in Abuja.

At the end of the meeting, the union and the company, alongside the NNPC and the ministry of petroleum resources, signed a communique, which will be binding on all parties involved.

Mobil Producing Nigeria and PENGASSAN Communique Signing 1

Communique Signing

The communique mandated that “the separation programme is hereby suspended, pending the submission of the report by the ministerial committee and the determination of the issues arising from the report by the honourable minister”.

“It was further agreed that management is free to implement for non-represented employees and any voluntary cases already signed on to,” the communique read.

“The union members involuntarily impacted by the separation programme will remain on Mobil’s payrool but shall not return to work pending the conclusion of the review on the ministerial committee.

Mobil Producing Nigeria and PENGASSAN Communique Signing 2

Communique Signing

The communique also said the committee shall submit its recommendation to “not later than January 10, 2017?, hence, the strike was immediately suspended.

The communique was signed by Francis Johnson, PENGASSAN president, Udom Inoyo, for Mobil Producing Nigeria, Falonipe Amos, with the ministry of petroleum resources, and Isa Inuwa, NNPC’s corporate services chief operating officer.

Niger Delta crisis will be resolved by 2017 – Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has disclosed that Nigeria was at 2.1 million barrels of oil production per day, before the renewed hostilities by militants, but assured that the formula for peace in the Niger Delta region of the country would be found by next year.


Kachikwu, who spoke to Bloomberg on the “turmoil” in the region, asserted that: “Well, I won’t call it turmoil any more, I would call it a bit of disruption.


According to him, “We’ve passed the turmoil stage, we have moved from 1.4 million barrels a day to 1.9.We were at 2.1 before we had the last incident.

“It is work in progress; we are putting every energy we can. President Muhammadu Buhari is very focused on trying to find solutions to these problems, and we are working hard on it. We are seeing solutions come up, we are seeing acceptance to what we are doing.”


He went on to express optimism that the Organisation of Petroleum Exporting Countries, OPEC, deal will become a reality to push oil prices to $50 per barrel, and above.


The Minister, who is currently at the Liquefied Natural Gas, LNG, Producer-Consumer conference in Tokyo, Japan, and presided over OPEC’s 168th ordinary meeting in Vienna, also stated that a failure to reach a deal will crunch prices below $45 a barrel.

Senate summons Kachikwu over multibillion dollars China, India deals

The Senate has summoned the Minister of State for Petroleum Resources, Ibe Kachikwu, over his claims of multibillion dollars oil and gas deals with India and Chinese firms.


Mr. Kachikwu, in an interview with This Day in June, said Nigeria signed Memorandums of Understanding with several Chinese firms during a road show in the Asian country on “$80 billion new investments, spanning five years, in the oil and gas industry covering pipelines, refineries, gas and power, facility refurbishments and upstream financing.”


He also hinted at new investments worth $20 billion from Sinopec and Chinese National Offshore Oil Company in the Nigeria’s oil and gas sector.


In October, Mr. Kachikwu, through a statement by the Director of Press in the Petroleum Ministry, said Nigeria was set to sign with India an investment deal which would see the Indian make an upfront payment of $15 billion to Nigeria for crude purchases.


But on Tuesday, the Senate resolved the Minister should appear before its committees on petroleum, gas and foreign affairs to explain the terms of the deals and the their implications for the economy.


The Senate’s resolution followed a motion by Clifford Ordia (PDP-Edo).


In his remarks, Senate President Bukola Saraki expressed appreciation to Mr. Kachikwu for his initiatives but emphasised the need for transparency.

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…

Dangote’s refinery will make Nigeria’s worthless – Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said Nigeria’s four refineries my become worthless once the refinery being built by the Dangote group begins operation in 2019.


Kachikwu said this at a stakeholders’ consultative forum on the draft National Gas Policy and National Oil Policy in Abuja on Thursday.


The minister said the country’s refineries must be revamped within the shortest possible time to avoid such occurrence.


He said, “Refineries will have to work. It is really not an option anymore. And not only should they work, they have to work very quickly. The reality is that if we do not privatise and we do not concede them, which is not what we are doing now, then we have a responsibility to find private capital to get them to where they should be.


“This is because if we do not get them to work, in 2019, I can assure you that if the Dangote system works well, we will have scrap, we won’t have refineries, because by then it will be too late to do anything.”


Kachikwu also spoke on the deregulation of the downstream oil sector.


He said, “At every given time in the history of every country, you will always have partial deregulation. The reason being that you have to catch up each time and make an amendment, and even if it is just one day, you may have some level of subsidy for that one or two days before it is removed.


“What is important is the goal post, where are we headed? Where we are headed is to try and free the industry so that it can do its own rules and set its own prices. There are few mechanics that we still need to get in place properly. We can’t forget the fact that we still have foreign exchange challenges and that income to the government is still very tight.”

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.”

FG To Review Fuel Price Template– Kachikwu

To eliminate NPA’s transport charges, others I’m not aware of price hike by NNPC stations — Kachikwu Senate demands daily oil, gas production records.

The Federal Government, weekend, said it would undertake a review of the pricing template for Premium Motor Spirit, PMS, also known as petrol, to forestall a further increase in the price of the commodity. Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated this during a grand award ceremony organised by the Petroleum Products Pricing Regulatory Agency, PPPRA, branch of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN in Abuja. Meanwhile the Senate Committee on Petroleum (Upstream), has asked the Department of Petroleum Resources, DPR, to henceforth, prepare and forward to it, the daily product records of oil and gas in the country.

The committee said the record of daily crude oil production must be submitted to the Senate every month. This will include petroleum industry activities, data on seismic activities, crude oil production, liftings, allocations, exports by destination, receipts, gas production, utilization, sales, transmission and exports.

Chairman of the committee, Senator Tayo Alasoadura, who led members of the committee to the headquarters of the Department of Petroleum Resources, DPR, in Lagos on oversight responsibility, said the development would afford the Red Chamber the opportunity to have deeper knowledge of activities of the oil and gas sector in the country.

Alaosoadura, who represents Ondo Central Senatorial District on the platform of the ruling All Progressives Congress, APC, frowned at perceived sidelining of the legislature in the provision of some information on activities by agencies of government, saying the trend must stop.

Speaking on the pending review of pricing template, Kachikwu said it would help cushion the effect of rising foreign exchange rates and the dwindling value of the naira against major international currencies on the price of petrol.

Read More:


Buhari May Cut Fashola’s Ministry To Give Way For Kachikwu

As President Muhammadu Buhari land in the United States of America for the United Nations Assembly summit, a new report has revealed details of a possible ministerial re-shuffling by the presidency.

As Nigerians await the alleged ministerial reshuffling from the presidency, SaharaReporters in a new post on their official Twitter page, has revealed that Babatunde Fashola’s ministry of Works, Power and Housing’s three portfolios might be reduced to give way to Ibe Kachikwu, the minister of state for Petroleum who will now have a full portfolio to himself.

Drop In Oil Production Bad For Nigeria’s Economy- Kachikwu

Minister of State for Petroleum, Dr Ibe Kachikwu, has identified seven key implementation strategies to boost the petroleum industry and enhence export of refined products by 2019.
Kachikwu, who spoke at the Presidential Quarterly Business Forum between the Private Sector and the Economic Management Team (EMT) in Abuja on Monday, listed policy and regulation; business environment and investment drive; transparency and efficiency; stakeholder management and international coordination as of primary concerns of the ministry.
Represented by Mr Johnson Awoyemi,, the Senior Technical Adviser of the ministry, the Minister identified peace and security in the Niger Delta region as being crucial in the programme.
Others, according to him, include engaging in gas revolution as well as increasing refineries and local production capacity.
“Oil and gas will drive diversification but the drop in oil production to 1.56 billion barrels per day from the annual estimate of 2.2 billion barrels per day will negatively affect growth.’’
The Minister stressed the need to empower the Niger Delta region and ensure peace in the region by stopping militancy and enhancing the attainment of national aspirations in oil and gas production.
Kachikwu said that several companies in the sector are indebted in royalties to the tune of about four billion dollars. He said there was need for policies on oil, gas, downstream and fiscal reform, adding that the proposed petroleum industry bill (PIB) had become very imperative.
Kachikwu said there were challenges in the oil and gas sector which led to drop in the nation’s GDP growth from 6 per cent to 4 per cent, stressing that this had led to shortage of funds for providing critical infrastructure.
He explained that the 29 per cent decline in oil production has resulted in the loss of 700,000 million barrels per day.

Read More: sunnewsonline

FG To Unveil Four New Policies On Oil & Gas Sector- Kachikwu

As Nigeria’s oil and gas sector awaits the passage of the Petroleum Industry Bill (PIB) to provide clarity on the terms of investments, the Minister of State for Petroleum, Dr. Ibe Kachikwu, has stated that the federal government would finalise four new additional policies in the sector by the end of October this year.

 Kachikwu has also hinted that the proposed talks on output cuts by the Organisation of Petroleum Exporting Countries (OPEC) to ensure the rebound of oil prices would have limited influence on the prices as the cartel controls only 30 per cent of the global oil output.

Speaking yesterday in Lagos at a conference organised by the National Association of Energy Correspondents (NAEC), Kachikwu stated that the country’s oil and gas sector was faced with myriads of problems that required urgent solutions, stressing that the drop in oil prices was the least of the country’s problems.

Also speaking at the conference, the outgoing Managing Director and Chief Executive Officer of Nigeria LNG Limited, Mr. Babs Omotowa, disclosed that any tinkering of the Nigeria LNG Act of 2004 will violate bilateral agreements with international investors as well as cost the country a huge $25 billion in foreign direct investment (FDI) and fines running in billions at the international courts.

Kachikwu said the issue of cash calls deficiency had been his nightmare with $2 billion shortfalls, which had accumulated to arrears of about $6.2 billion.

 “Every year, we lose 10 to 15 per cent of the joint venture production. There have been no new projects in the last five years and most of the projects touted cannot stand the current economic realities as they were based on $90 per barrel oil price. We are losing investments to our immediate neighbours,” he explained.

According to him, the drop in oil prices is a global problem that is not peculiar to Nigeria, adding that the country has more pressing problems, arising from the renewed attacks on oil facilities by the Niger Delta militants.

Kachikwu, who spoke on the topic: ‘The Urgency of Now’, revealed that while 3,000 cases of pipeline vandalism were recorded in the country from 2010 to 2015, the country had recorded 1,600 incidents between January and June this year, representing over 50 per cent of the incidents that occurred in five years.

He said the incidents of vandalism that occurred in the previous years had led to the loss of 643 million litres of petroleum products, amounting to N51.28 billion lost in 2015.

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.”

Nigeria To Export Refined Petroleum In 2019– Kachikwu

The Minister of State for Petroleum and Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, yesterday in Beijing, China gave assurance that the country will export refined petroleum in the next three years.
He gave the assurance in an exclusive interview with Daily Sun after he addressed the business community and investors in the oil and gas sector in the city.
Kachikwu is in Beijing for the NNPC Roadshow for Investors in Nigeria’s oil and gas sector on Monday where he also hinted that the mission he embarked upon with Executive Directors of the NNPC was already a huge success.
He assured that the responses he has got from the Chinese investors were signs that the mission was a fruitful venture as he was certain that after signing an MoU for investment for about $8 billion and some others lined up for the week, the deals waiting to be executed would not be less than $40 billion with Chinese investors.
In an interactive with Daily Sun after his address to the Forum, he clarified that “although MoU was just an indication of interest and starting point, it is the first and most vital step in the commencement of a venture. We have got positive responses and going by what is on ground, there is no going back on the commitments.
China has over time proven its readiness to do business in Nigeria and that is why we started from here after which we will go to India and the Gulf Region. India had in the past been good partners in our oil business, but going there now might not be for investment. We know India has one of the best and most modern oil refineries in the world, so we would go to tap into their intelligence on how to get it right in refining.
“But in China it is the capital to invest and we are not unaware of this, which is the reason we started here and the enthusiasm has been great.
“Right now, even at short notice, the partners are working so hard to ensure I meet President Xi Jinping this week.”
He also clarified that the visit is part of the implementation and follow-up to the visit of President Muhammadu Buhari two months ago.

Credit: Sun

Kachikwu, Amaechi Disagree On Maritime University

The minister of transport, Chibuike Amaechi, and the minister of state for petroleum, Ibeh Kachikwu, on Monday disagreed on the establishment of a Nigerian Maritime University, proposed for Okerenkoko in Delta State.

Speaking alongside other ministers at a government town meeting in Uyo, Akwa Ibom State, Mr. Amaechi defended the decision of the Buhari administration to scrap the project.

Mr. Amaechi said the previous administration of Goodluck Jonathan had paid too much to acquire a site for the university.

The groundbreaking of the proposed school at Okerenkoko in Warri south-West local government area was done by former President Goodluck Jonathan in 2014.

But addressing the senate committee on maritime on January 19, Mr. Amaechi announced the scrapping of the project, which was to be financed by the Nigerian Maritime and Safety Administration Agency, a parastatal under his ministry.

He cited insecurity in the area, and said the project was a “misplacement of priority” because there are transport institutes in Zaria (Kaduna), and Oron (Akwa Ibom), already.

On Monday, Mr. Amaechi address the case again, in response to a question at the town hall meeting.

The minister said the new government lacked the funds to continue with the university project.

Credit: Premiumtimes

Buhari Has Not Allocated Any Oil Bloc– Kachikwu

Minister of State for Petroleum Resources, Ibe Kachikwu, has clarified that President Muhammadu Buhari has not allocated oil blocs to any individual since he came into office.

The minister made the clarification on Monday in Uyo at the South-South region Town Hall Meeting organized by the Ministry of Information and Culture.

The minister who was responding to questions by some aggrieved participants from the region over alleged un-equitable distribution of oil blocs, said that the Federal Government would be fair and just in giving out such advantages.

“Since we came into office, the government has not allocated any oil bloc.

“The president has said that he will need to correct the mess created by the past administrations before we begin to think of giving out such advantages.

“The president has emphasised to us, the ministers that there should be no unjustifiable favour and any action we take we must be able to defend it.

“When the time for the oil bloc allocation comes, it will follow very clear due process,’’ he said.

Kachikwu stressed that he was one of those who believed that the South-South people should benefit from oil blocs because it would be part of “giving back to the chicken that laid the eggs.’’

He said it would go a long way to empower the people and make them to engage in genuine oil deals, rather than being contractors to oil companies.

The minister, however, reiterated that when government wants to consider the allocation, it would be given to those who have skills and the finance to develop the blocs.

Kachikwu said that the Federal Government had finalised the Integrated Power Project with Mobil Oil Company that would produce 500 megawatts of power as well as gas pipeline project in Akwa Ibom.

He said the total investment for the project, including provision of infrastructure in the area of locations, was seven billion dollar.

The minister promised that the Federal Government would locate oil depots and modular refineries in the state through private capital intervention.

Credit: Leadership

FG Plans Dialogue With Militants To End Pipeline Vandalism – Lai Mohammed, Kachikwu

The Minister for Information and Culture with the Minister of State for Petroleum, Dr. Ibe Kachikwu, Monday, said the Federal Government is considering opening a robust dialogue with the Niger-Delta militants on the need to stop militancy in the oil rich region.


The duo who spoke in an interactive session with a coalition of civil societies in Lagos, chaired by Dr. Moses Ilo, founder of the Pentecostal Fellowship of Nigeria, PFN, stressed that nefarious activities of militants is currently sabotaging efforts being made by the government to revamp the nation’s economy. Mohammed while lamenting the situation said there was no other solution to the issues happening in Niger Delta other than engaging them in meaningful dialogue.


According to Kachikwu the government has come to realize that rolling out military tanks against the militants would not solve the problem. “The military barrels cannot stop or solve problem of militancy in the Niger–Delta region. I will have to go back to my brothers, they are our brothers we will go and dialogue with them,” Kachikwu said.


He said the continued audit of the country’s daily fuel consumption resulted in weeding out 10 million liters of fake petroleum products that was daily subsidized by the previous administration. Kachikwu lamented that the fund spent in subsidizing the pretentious consumption daily could have been used by the Federal Government to fix the refineries, roads and other basic amenities across the country which would have helped improve the Nigeria’s economy.


He said the continued audit of the country’s daily fuel consumption resulted in weeding out 10 million liters of fake petroleum products that was daily subsidized by the previous administration. Kachikwu lamented that the fund spent in subsidizing the pretentious consumption daily could have been used by the Federal Government to fix the refineries, roads and other basic amenities across the country which would have helped improve the Nigeria’s economy.

Credit: Vanguard


Rowdy Session At House Of Reps As lawmakers Block Kachikwu From Chamber

The scheduled appearance of Minister of State for Petroleum, Ibe Kachikwu, at the House of Representatives on Monday has left the lower chamber bitterly divided, as lawmakers bicker over whether the minister should be allowed to enter into the chamber or not.

Mr. Kachikwu was invited to brief lawmakers on the recent increase in the price of petrol.

But when Mr. Kachikwu arrived to honour the invitation, he was met with echoes of anger from lawmakers who started shouting “No! No! No!”

Shortly after noon, House Leader, Femi Gbajabiamila, moved a motion to let Mr. Kachikwu in, but many lawmakers shouted him down.

This prompted the Speaker of the House, Yakubu Dogara, to put the matter up for voice vote.

When Mr. Dogara asked if the lawmakers should allow Mr. Kachikwu to come him, majority of them thundered: “No! No!”

But Mr. Dogara said the “ayes” have it, nonetheless.

But the lawmakers refused to be intimidated, continuing with their chants.

After a few minutes into the commotion, the House demanded that journalists and other observers should excuse them, leaving only members in the plenary to continue what they described as “executive session.”

Why the lawmakers invited Mr. Kachikwu and still declined to give him audience to explain himself has left many in the chambers befuddled.

As at 1:00 p.m., the House has not reopened the plenary to reporters and Mr. Kachikwu’s whereabouts is unknown.

Credit: PremiumTimes

Fuel Price Hike: Reps Convene Special Session, Summon Kachikwu

The House of Representatives has convened a special session at which Minister of State for Petroleum, Ibe Kachikwu, will interact with the lawmakers over the new premium motor spirit price regime hiked to N145 lask week, some lawmakers, including Ahmed Kaita and Akeem Adeyemi.

The special session is slated for today, Monday, at noon – a shift from its regular schedule of plenary which holds Tuesdays, Wednesdays and Thursdays starting.

Last week, Mr. Kachikwu announced the new price regime capped at N145 from a subsidized rate of N86.50.

The Vice President and head of government’s economic team, Yemi Osinbajo, said the new policy became imperative following decline in foreign exchange earning.

“The NNPC exchanges crude from its joint venture share to provide about 50% of local fuel consumption. The remaining 50% is imported by major and independent marketers.

“These marketers up until three months ago sourced their foreign exchange from the Central Bank of Nigeria at the official rate. However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. (In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million!),” Mr. Osinbajo said, in Presidency’s “our story”.

The fuel price hike is expected to worsen Nigeria’s growing inflationary trend which has seen prices of goods, especially food items, skyrocket at a time some states of the federation have not paid workers’ salaries for months.

Ahead of Mr. Kachikwu’s meeting with the House, Mr. Kaita disclosed that “about 68” APC lawmakers had been meeting since Saturday to ensure support for the new policy from the National Assembly end.

Credit: PremiumTimes

How Subsidy Removal Will Benefit Nigerians- Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said that the federal government would have had to cough up N16.4 billion every month to offset the subsidy claims of oil marketers had it not taken the decision to remove the subsidy on petrol.

Kachikwu, in a series of tweets Sunday, explained that at the time the government made the decision, it was incurring about N13.7 kobo as subsidy on each litre of petrol bought by Nigerians.

But his tweet failed to resonate with the major labour union in the country – Nigeria Labour Congress (NLC) – which said yesterday that it had commenced the full mobilization of workers and civil servants for the nationwide strike and complete shutdown of the economy.

This is just as the House of Representatives will today hold a special session to deliberate on the recent removal of subsidy on petrol.

Kachikwu said at the rate of N13.7 kobo per litre as subsidy claims, the government would have paid out N16.4 billion to marketers monthly, adding that the government does not have such funds in its 2016 budget, more so now that the country’s earnings from crude oil have dropped.

He also listed the benefits of the new policy: “There is no provision for subsidy in 2016 appropriation. As of today, the PMS (petrol) price of N86.50 gives an estimated subsidy claim of N13.7 per litre, which translates to N16.4 billion monthly. There is no funding or appropriation to cover this.”

He added: “NNPC has continued to utilize crude oil volumes outside the 445,000 barrels per day, thereby creating major funding and remittance gaps into the Federation Account.”

Credit: Thisday

When Fuel Scarcity Will End, Kachikwu Gives Date

Minister of State for Petroleum, Dr. Ibe Kachikwu, appeared before the Senate Committee on Petroleum Resources ( Downstream ) on Tuesday,  to explain reasons for the acute fuel scarcity across the country and the efforts being made by his ministry to resolve the embarrassing phenomenon.

He lamented the situation and apologised to Nigerians who are really going through difficult situation and promised that the scarcity will end on or before the 7th of April.

He said,  “I share the pains of Nigerians. I feel that pain everyday. Those who are following my trajectories since I resumed office would see that even on the Christmas day,  I was at the refineries. On the Easter day,  I was in Lagos,  monitoring fuel distribution at the depots.

“I have given 24/7 attention to the problem in this industry which were unbelievable. I have continued to work with one sole purpose in mind, which is that every problem will have a solution.

“I do apologise if a comment I made jocularly with my friends in the press about being a magician offends some Nigerians, it wasn’t meant to be. I did go ahead to explain what needed to be done. I didn’t intend to create this kind of hyperbole that it did.

“Let me admit that I am not a typically experienced politician. I am a technocrat,  Some of the phraseologies that I may use while being acceptable in the arena in which I play,  obviously will not be acceptable in the public political arena. If anybody’s sensitivities were offended by that,  I totally apologise, I am a very humble person even imagining the thought that I dictate to Nigerians. I am not somebody like that.”

Kachikwu attributed the current fuel scarcity to lack of importation by the major oil marketers; diversion of the products by marketers; pipeline vandalism; panic buying and non computerisation of distribution network to monitor trucks.

He lamented that since the payment of N600bn arrears of unpaid subsidy which the current administration inherited from the Former President Goodluck Jonathan administration, which ended the subsidy regime, oil marketers had stopped fuel importation.

The development, he said,  had forced the Nigerian National Petroleum Corporation, to overstretched its capacity, human resources and facilities to bridge the gap but it is obvious that it lacked the immediate capacity to handle.

Credit: Punch

Nigerians Should Please Bear With Us On Fuel Scarcity– Kachikwu

At a time Nigerians are expecting respite from the pangs of the lingering fuel scarcity in the country, Minister of State for Petroleum, Mr. Ibe Kachikwu, has dashed their hopes, stating that the current queues at gas stations would persist till late May. The minister, who doubles as Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, added that he was not a magician to make the queues disappear overnight.

According to him, it is even a “magic” that the stations are still getting volume of products they dispense to the public, judging from the prevailing circumstances at NNPC. The minister also revealed that NNPC’s import rates had moved form 50 per cent to all-time rate of 100 percent, saying the 445,000 barrels allocated to crude swap now service 50 to 55 per cent importation of refined product. But giving a glimmer of hope on how to achieve lasting solution to the product scarcity, Kachikwu said government was working to beef up the reserves.

He stated that when the refineries come on full stream, locally refined products would be left unsold in the reservoir to boost supply and availability of the products. The minister was fielded questions from State House correspondents after leading officials of Nigeria Union of Petroleum and Natural Gas, NUPENG, and Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, to a meeting with President Muhammadu Buhari at the Presidential Villa, Abuja,yesterday.

 Kachikwu He said: “One of the trainings I did not receive is that of a magician but I am working very hard to ensure some of these issues go away. And let’s be honest, for the five, six months, we have been here, NNPC has moved from a 50 percent importer of products to basically a 100 percent importer. And the 445,000 barrels that were allocated was to cover between 50 and 55 percent importation.

“So, it is quite frankly sheer magic that we even have some amount of products at the stations. We are looking to see how to get foreign exchange input. The President and I discussed extensively on how to get more crude directed at importation.

“His excellency will rather have less crude but have individuals in the society suffer less with inconveniences than have more crude and have them continue to suffer.

“So, we are going to put a new model to enable us increase the pace and actually get majors as part of the crew of those to bring in more products, so that the NNPC will sort of go back on the capacity of what it used to do and the majors will take over the balance of importation.

“I think if we do that, although I don’t want to put a time frame, but I will expect that over the next two months. Of course, you are aware the SAP programme begins in April. So, over the next two months, we should see quite frankly a complete elimination of this.

“Our strategy is that whatever is produced in the refineries will not go for sale. We are going to keep them in strategic reserve because the key problem here is that there is no reserve. Any time there is gap in supply, it goes off.

“So we are going to dedicate the next couple of months to moving all the products that we produce to strategic reserve so that we can pile up reserves in the nation and that will push up the reserves in the nation.

‘’Believe me, this is giving me and my team sleepless nights and we are working on it and we are committed to making this go away. Nigerians should please bear with us.”

Credit: Vanguard

Oil Price Slump: Nigerian Companies Will Survive — Kachikwu

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, yesterday, allayed fears that the volatility in the price of crude oil in the international market would plunge oil and gas companies and financial institutions in the country into bankruptcy.


According to him, Nigerian companies are resilient and will survive the plunge. Speaking at the closing ceremony of the Sixth African Petroleum Congress and Exhibition, CAPE VI, in Abuja, Kachikwu, however, stated that only companies willing to embrace new technologies and adopt innovation would survive the difficult operating environment.


Kachikwu further noted that as parts of strategies to survive, the Federal Government was driving oil companies operating in the country back to full time work, while also looking at alternative funding sources for some of its oil projects and partnerships.


He said: “I think anybody who wants to survive in this climate today would need to put on the hat of thinking. It is not business as usual, but people are going to survive. “The nice thing about adversity is that you get to make huge successes also.


Companies that are ready to embrace new technologies and strategies and new ways of doing things are going to survive. “It is not going to be for too long. Nigeria, for example, has put its strategies around getting the oil companies back to full time work, and we are still looking at alternative funding sources, we are still looking at diverging more into our gas products to complement our oil production. New ideas of how to survive and how to multiply the sort of income that is available to you is key to survive. I think Nigerian companies are very resilient, they will survive.” On fuel crisis Also speaking on the unending fuel crisis in Nigeria, Kachikwu said the Federal Government was considering deploying information technology in the Premium Motor Spirit, PMS, supply chain to end the perennial fuel queues witnessed across the country.


He said the Federal Government planned to computerize the supply process from export of the product down to the sale of the product to motorists. According to him, computerisation is one of the key initiatives that are being considered in tackling the fuel shortages, especially as it would enable the tracking of products discharged from oil vessels and tankers to depots; then what was loaded from the depots by trucks.


He added that it would also help track what the trucks deliver to petrol stations and what was purchased by motorists.


Credit : Vanguard

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.

It’s Cheaper To Import Than Refine Locally- Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said that at the moment, importing Premium Motor Spirit, PMS, also known as petrol, is cheaper than producing the product in the country’s refineries.

Addressing newsmen in Abuja, Kachikwu disclosed that until the upgrade and total refurbishment of the refineries are concluded, as well as ensuring that the pipelines are fixed, it would be uneconomic and very expensive to refine PMS locally. He maintained that local refining of PMS would make much more economic sense if all the refineries undergo full set of repairs and Turn-Around Maintenance, TAM, and when new refineries are set up in the country through co-locative initiative.

He said: “Most modern refineries are configured in such a way that your stock of PMS outage is a lot higher, 70 to 80 per cent. So when we do import the product, we actually save money; we get it less expensive than when we do it here.

“But having said that, the reality is that until we have alternatives in terms of co-locative refineries which we are looking at; until we finish the total refurbishment to improve and upgrade the refineries, it does not make sense to use it with some of the deficiencies.

“This is because distribution is key. If you have product in Kaduna for example, pumping into the north becomes easy as opposed to moving, as we do whenever we have a crisis – trucks all the way from Lagos and Oghara, out to the north.” Kachikwu further noted that even if the current set of refineries were working on a 100 per cent basis, they would only be able to account for 20 million litres of PMS per day, about 50 per cent of the country’s total consumption.

This means that the country would still resort to importation to meet up with the shortfall. He said: “The way the refineries are configured right now, and until a full set of repairs and TAM are done, they are configured on the basis of 50 per cent of PMS and 50 per cent other products. So even if they were producing on a 100 per cent basis, which they are nowhere near producing right now, PMS output would be less than 20 million litres. Our consumption is closer to 40 million. So we will still have, literarily, 50 per cent gap.”

Credit: Vanguard

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.




Kachikwu Cautions Groups Over Conferment Of Award

The Minister of State for Petroleum Resources, Mr Ibe Kachikwu, on Wednesday cautioned organisations to refrain from giving award to personalities occupying government positions at an early stage of their service.


Kachikwu said this in Abuja while being conferred with the Nelson Mandela Pan-African Exemplary Leadership honour by the African Youth Global Network (AYGN).


Mr Paul Atson Kekeh, Country Representative of AYGN, had earlier said that the award was conferred on the minister in recognition of his service to the nation and being an exemplary and visionary leader.


The minister, however, said that the award was too premature for him.


“Let me start by thanking you for the honour, but my problem is that I have not been able to see myself getting to a point where I deserve an award.

“I think it is coming a bit premature and every attempt to give me an award since September, I have turned down including foreign awards.

“The problem we have in Africa is to celebrate people too early even before they find their feet.

“I have just begun this work, just at the periphery of the performance, and there is a lot to be done.

“I think it is too early, but this being a youth award, the least I could do is to encourage them to aspire and that is why I accepted the award.”


The minister dedicated the award to the staff of the NNPC and called on them to cooperate in achieving its aim of moving the agency higher.



U.S Likely To Resume Buying Nigeria’s Crude Oil- Kachikwu

The Minister of State for Petroleum, Dr. Ibe Kachikwu, has disclosed that Nigeria and its former long-term crude oil trading partner, the United States, may soon rekindle their trading relationship in crude oil.

The minister, who also said in spite of the Nigerian National Petroleum Corporation’s (NNPC) difficulties in meeting its cash call obligations, would not sell some of its stakes in the Joint Ventures (JV) with local and international oil companies (IOCs), added weekend in Kaduna that the United States had made overtures to resume buying Nigeria’s crude oil.

He said the development was a fallout of President Muhammadu Buhari’s July 2015 visit to the US. He, however, did not disclose details of the development but said that the US had indicated its interest in buying “very limited” quantities of Nigeria’s crude and that negotiation on that was ongoing.

The minister, who was in Kaduna to inspect the status of repair works on one of the country’s refineries, noted that irrespective of the renewed interest from the US, Nigeria was still diversifying its crude oil trading destinations deeper into Asia and other parts of the world.

“The fact of US actually being back into the sales of crude market obviously will impact on prices but what you find is that the volume of export that US intends to do is really minimal because there is a lot of local internal consumption and strategically they are still reaching out to buy a couple of Saudi barrels and in fact they are opening up to buy a couple of Nigerian barrels,” Kachikwu said.

He explained that after the president’s visit in July, the US indicated interest in buying very limited quantity of Nigerian oil, partly to support the market, adding that conversations on the overtures were ongoing.

Credit: ThisDay

FG Currently Not Paying Subsidy On Petrol- Kachikwu

Dr Ibe Kachikwu Minster of State For Petroleum on SubsidyThe Minister of State for Petroleum, Dr. Ibe Kachikwu, says the Nigerian government has suspended the subsidy on petroleum products as at today, December 27, as a result of the current low price of crude in the international market.

Dr. Kachikwu said the non-payment of subsidy would remain the same, as long as market trends allow.

He told reporters on Sunday in Kaduna that if crude prices increase, there would be a review which would be tackled under the newly introduced price modulation in the sector.

The price modulation, according to the Minister, is not an outright removal of petrol subsidy.

Credit: ChannelsTv

Kachikwu Orders Special Fuel Supply For Christmas

The Minister of State for Petroleum, Dr Ibe Kachikwu, who is spending time with his constituency in Delta State, has given assurances that from 2016, the country’s oil sector will experience a turn around that will allow the refineries work effectively and then petroleum products will be available to Nigerians at affordable prices.

He said that as a technocrat he would give his best with the opportunity given to him to serve as the Minister of State for Petroleum.

On the current petroleum scarcity, the Minister attributed the situation to panic buying and hoarding, warning all those concerned to demonstrate patriotism.

Meanwhile, Dr Kachikwu has ordered what he called a special petrol supply intervention to ensure a hitch free Christmas and New Year celebration.

This order was given to the Pipeline Products Marketing Company (PPMC) for them to embark on special supply intervention measures to ensure country-wide availability of product ahead of the yuletide and beyond.

The NNPC says that daily fuel trucks which leaves depots to Abuja, Kaduna, Enugu, Kano, Ibadan and Jos has increased significantly.

Credit: ChannelsTv

Petroleum Marketers To Get Outstanding Payment Next Week– Kachikwu

The Minister of State for Petroleum, Dr. Ibe Kachikwu, has assured petroleum marketers that outstanding payment for products imported would be made next week.

Dr. Kachikwu spoke after a tour of service stations and depots in Lagos on Tuesday.

He was accompanied by the Managing Director of Pipelines and Product Marketing Company and Department of Petroleum Resources (DPR) officials.

The Minister said there was enough petrol to dispense and wondered why cases of scarcity persisted.

Dr. Kachikwu, however, admitted that there was a shortfall in supply, as a lot of marketers were not bringing in products because they were owed subsidy money.

Credit: ChannelsTV

Kachikwu Orders DPR To Auction Petrol Hoarded In Stations

The Minister of State for Petroleum, Dr Ibe Kachikwu, has directed the Department of Petroleum Resources, DPR not to seal off any petrol station but instead to auction petroleum products of any marketer found to be hoarding petroleum products at this time.

Dr Kachikwu, who took a monitoring tour of petrol stations in the federal capital, said that the NNPC was deploying all its available resources to bring down the heightening panic buying and appealed to Nigerians to be patient as they bring the situation under control.

Credit: ChannelsTV

Oil, Gas Sector Facing Sharp Low Revenues- Kachikwu

The Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Dr Ibe Kachikwu on Monday said the industry was facing a sharp lower revenues from the country’s oil assets.

Kachikwu said this at the 33rd Annual International Conference and Exhibition organised by Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

The NNPC boss was represented by the Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS), Mr Dafe Sejebor.

Kachikwu said the nation should put up strategies to stay afloat in order to mitigate the impact of the fall in oil price in the industry and on the nation.

“We must renegotiate our contracts to reflect current market realities.

“If the cost/unit barrel remains exorbitant at current low prices, oil production becomes economically not viable; it will simply be left in the ground.

“Portfolios must be re-evaluated because now is the good time to optimise the company’s overall portfolio by restructuring capital allocation away from high-cost, lower-return projects,” he said.

The GMD listed survival strategies to include external financing, operational optimisation, ?review of fiscal terms, strategic merger and acquisition.

Others are re-engineering business models, reduction in operating expenditure cost, and financial resilience.

Credit: Vanguard

Non-performing Refineries Will Be Shut Down In December- Kachikwu

Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr Ibe Kachikwu, said refineries in the country performing below 65 per cent of capacity would be shut down in December, 2015.

Kachikwu, one of the 37 ministerial nominees stated this while responding to questions by some senators during his screening at the Senate on Wednesday in Abuja.

He disclosed that the reality is that functioning refineries were operating at only 25 per cent, contrary to reports that they were doing well.
He said that it was not enough for a refinery to produce at 65 per cent today and at zero per cent the next day, stressing that anytime crude was not utilised by a refinery, the government lost money.

On recurring scarcity of petroleum products, especially petrol and kerosene, Kachikwu said that the situation would continue unless the refineries performed optimally.
“Performance levels are about 25 and 26 per cent; it is not enough to do 65 per cent one day and do zero per cent the next day. We have started a policy of not giving crude to any refinery that is not producing. Port Harcourt refinery is producing at over 60 per cent and we want to drive it to 80 by December.

“Warri Refinery has indicated that it will soon come on stream; we will begin to pump crude to Kaduna Refinery by tomorrow (Thursday) and by the next five days, we will know if they will produce above 65 per cent. Any refinery that does not produce up to 60 per cent is not into production, and at the end of December, we will only allow those who perform optimally. Those that do not, we will shut them down,” he said.

Credit: NAN

Jonathan Discovered Kachikwu To Replace Diezani– PDP

National Publicity Secretary of the Peoples Democratic Party (PDP), Olisa Metuh, said on Monday that it was immediate past President Goodluck Jonathan, and not President Muhammadu Buhari, who discovered the current Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu.

Metuh said Jonathan was preparing Kachikwu as a replacement for ex-petroleum minister, Diezani Alison-Madueke, who headed the ministry till last May.

Metuh made the claims in a Channels Television discussion programme, SunriseDaily, monitored in Abuja.

The PDP spokesman, who was reacting to the decision of Buhari to supervise the Petroleum Ministsery, said that the NNPC helmsman was not a new discovery by the president.

Metuh said that the party would closely monitor Buhari as the minister of petroleum and would not hesitate to expose any wrongdoing in the oil industry under the president.

Metuh said: The PDP under Jonathan discovered the incumbent group managing director of Nigerian National Petroleum Corporation (NNPC), over two years ago.

“Ibe Kachikwu was supposed to be Minister of Petroleum under PDP two years ago; he is not a new discovery.

“If the President handles the petroleum industry and does anything dishonest, we will expose him and tell Nigerians,” Metuh said.”

Read More: vanguardngr

Ministerial list: Fashola, Amaechi, Ngige, Onu, Aisha Alhassan, Fayemi, Malami Abubakar, Kachikwu, 12 others make list

Senate President, Bukola Saraki, on Wednesday received the ministerial nominees list at about 4:56pm from the Presidency but said the content of the presidential communication would be read during plenary next week Tuesday.

The Senate had adjourned plenary at 2:00pm on Wednesday till Tuesday, October 6.

21 names were contained in the list, according to a report by Punch Newspaper which read:

“The PUNCH learnt that a former Lagos State Governor, Babatunde Fashola; and a former Rivers State Governor, Rotimi Amaechi, made the list.

Also said to be on the list are Kayode Fayemi, a former governor of Ekiti State; a former Governor of Anambra State, Chris Ngige; and a one-time Governor of Abia State, Ogbonaya Onu.

Malami Abubakar, SAN, a former National Legal Adviser to the defunct Congress for Progressives Change; Aisha Alhassan, a former governorship candidate of the APC in Taraba State; and Amina Mohammed, a special adviser to the Secretary-General of the United nations, Ban Ki-Moon, also made the ministerial list. Same for a former finance commissioner in Ogun State, Kunle Adeosun.

The Group Managing Director of the Nigerian National Petroleum Corporation, Ibe Kachikwu, is said to be on the list, perhaps to combine his headship of the NNPC with junior petroleum minister. portfolio. Buhari has already announced himself as the substantive Minister of Petroleum.

The Chief of Staff to the President, Abba Kyari, in company with the Senior Special Assistant to the President on National Assembly Matters (Senate), Ita Enang, delivered the list in a sealed envelope to the Senate President in his office.”

Nigeria’s Armed Forces To Guard Oil, Fuel Pipelines- Kachikwu

The Group Managing Director, Nigerian National Petroleum Company (NNPC), Dr. Ibe Kachikwu, has said that the nation’s armed forces will soon be deployed to guarding the nation’s oil and fuel pipelines.

The GMD revealed this last week Wednesday when speaking on the Corporation’s effort to curb the activities of oil thieves in the country.

“Efforts are in top gear to fix all the crude and petroleum products pipelines across the country. The Nigerian Airforce would be engaged to provide aerial survey of the pipelines, the Nigerian Army Engineering corps to fix and police the pipelines and the Nigerian Navy to provide marine surveillance for the network of pipelines,” he said.

Read More: dailytimes

Warri Refinery To Resume Production In November- Kachikwu

Recently shut Warri Refining and Petrochemical Company, WRPC, will not be resuming operation any time soon, Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mr. Emmanuel Kachikwu has disclosed. The refinery will now resume full production in the first week of November. It has the capacity to process 125, 000 barrels of crude oil per day.

Kachikwu disclosed this yesterday during facility tour of the refinery and the adjoining Pipelines and Products Marketing Company, PPMC, Jetty and Depot in Warri, Delta State, According to him, the new date was to enable WRPC carry out temporary maintenance on some facilities explaining that the recent shutdown was due to problem from the Fluid Catalytic Cracking, FCC, Unit at the plant. He said: “WRPC was not shut down because of lack of crude oil supply, neither was crude oil not supply because the refinery was down…”

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$287m Saved In Port Harcourt Refinery Turnaround Maintenance- Kachikwu

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu, has said Nigeria has saved over $287 million from the turnaround maintenance (TAM) of the Port Harcourt Refinery, Eleme.

Kachikwu made the disclosure shortly after an inspection tour of the refinery ON Wednesday.

He said foreign companies had requested to carry out the TAM at a cost of $297 million but the NNPC used its manpower and local oil servicing firms to achieve the maintenance at the cost of less than $10 million.

He said: “The asking price by the original refinery builder was $297 million. The disaster with that was that they were not professionals and they were not ready to give us guarantees. What we have done so far is under $10 million.

“Obviously, had we consistently done this overtime, we would not have the sort of nightmare that we have had today. Whatever it takes, we are going to raise money; we are going to raise some vessels to give them what they need to run this place and run it efficiently.”

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Kachikwu, Marketers Call for Deregulation of Petrol

The Nigerian National Petroleum Corporation (NNPC) and oil marketing companies in the country have insisted that the price of petrol should be deregulated to ensure sustainable development in the downstream oil sector.

The corporation has also restated its commitment to the construction of a 1,350 megawatts (MW) capacity Abuja power plant and a 900MW capacity Kaduna power plant in partnership with reputable international power producers.

Speaking on Thursday in Lagos at the 2015 conference of the National Association of Energy Correspondents (NAEC), oil marketers and the Group Managing Director of the NNPC, Dr. Emmanuel Ibe Kachikwu, said the speedy implementation of deregulation would encourage inflow of private sector and international investment into the country.

In his address titled, “Energy Crisis and Sustainable Development in Nigeria: The Way Forward”, Kachikwu noted that the subsidy regime creates distortions in government revenue distribution as a result of round tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain.

“Furthermore, the federal government is not in control of the factors that influence retail fuel price, particularly fluctuations of crude oil price at the international market. Deregulation policy is essential to the transformation and growth of the downstream sector of the oil and gas industry,” he said.

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NNPC Retires 1000 Staff

Over 1000 workers of the Nigeria National Petroleum Corporation (NNPC) will leave service any moment from now, Daily Trust has learnt.

More than 200 of them are middle level officers that are caught up in the ongoing restructuring that has seen the exit of top management staff and nine heads of the corporation’s subsidiaries.

About 800 others are those that will attain the mandatory retirement age of 60 years or 35 years in service in the next one and a half years.

The new NNPC boss, Dr. Ibe Kachikwu has said all staff retiring by 31st December 2016 should go
now as a result of the downsizing, a source said.

The source said those to be affected are from the subsidiaries, especially  pioneer workers  of the refineries.

As at January this year, the Corporation has about 9,500 workers in its services.

The New Group Managing Director announced the disengagement of 38 management staff last week and said the on-going retirement of the Corporation workers will go down to the lower cadre.

‘It’s A to zero restructuring. I’ve done the first three layers which is going from the Group Executive Directors to Group General Managers and General Managers. You’re going to have a lot more now. The NNPC isn’t public service. It’s a corporation and we run like a company generating money for the people of Nigeria. So, the whole concept of anything goes should stop,” he had said.

Already there is agitation from the staff due to the on-going reforms alleging that it was not following due process.

They cited the example of recruitment of about 12 top management staff into corporation and deploying them in key positions without any employment notice or consultations of relevant stakeholders.

They also accused the new management of punishing some staff that insisted on due process.
Last Friday the two unions in the oil industry, the Nigerian Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association of Nigeria  (NUPENG and PENGASSAN) warned that the reforms are exposing their members to danger.

“The on-going exercise portends a great danger in the Oil and Gas Sector, if workers are meant to bear the brunt of Government current action where the fight on corruption is now used as an act of vindictiveness against workers.”

Meanwhile, the management has scheduled a meeting with the oil unions tomorrow as part of the efforts to carry them along.

The Management further said the reforms were free from ethnicity or any agenda but mainly to enshrine professionalism in the system in a statement issued recently.

I’m Not on Mass Retrenchment Binge – GMD
The Group Managing Director has said his mandate was to put in place efficient, transparent and profit-oriented processes and not to embark on a mass retrenchment of the workforce.

Dr. Kachikwu stated that the mandate given to him by President Muhammadu Buhari is to turn around the entire commercial processes and procedures in order to impact on the growth trajectory and operations of the Corporation.

A statement from the NNPC yesterday said the reduction in the directorate from eight to four (4) at the top management cadre of the NNPC is to refocus and sharpen the business aspiration of the Corporation, adding that training and retraining of members of staff to align with the new vision is the next stage of the ongoing reforms.

The NNPC helmsman noted that all Production Sharing Contracts, Joint Venture Agreements and all other contracts between the NNPC and its various partners would be reviewed to reflect current day realities in the global oil and gas industry.

Dr. Kachikwu reassured that the recent repositioning is to put in place the right set of skills for performance stressing that the new arrangement provides a veritable vista for upcoming professionals in the Corporation to have a speedy career path.

He stated that the NNPC under his watch would put in place mechanisms that would plug all revenue leakages in the upstream, midstream and downstream sectors while adding that all crude oil proceeds due for the Federation Account would be remitted accordingly.

Source: DailyTrust

Strategies For Restructuring NNPC Revealed By New Boss

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu, has given a hint on the three-pronged strategy for the restructuring of the state-run oil firm, adding that this would entail the reorganisation of management personnel, a forensic audit of the firm’s accounts, and a review of its contracts with oil majors and other industry operators.

Kachikwu, who spoke to State House correspondents in Abuja after a meeting with President Muhammadu Buhari, also said more workers might be relieved of their jobs.

Kachikwu said the restructuring going on at the NNPC would be from “A to Z”, meaning from top to the bottom.

“It is an A to Z restructuring. I have done the first three layers, which had to do with the GEDs (Group Executive Directors) and Group General Managers. We are going to have a lot more now – the DGMs (Deputy General Managers) and GMs (General Managers) – as this would take us to the next layer, which is the lower layer.

“The whole idea is to go back to being able to look at the appraisals, how well they have done on the job and if they have done very well, how do we elevate them to positions where they can offer more service.

“If they have not done well enough, and we can retrain them, we will, but if they have not done well enough and there is no possibility of retraining, we will let them go.

“At the end of the day, NNPC isn’t a public service, it is a corporation and it is going to be run like a company, generating money and profit for Nigerians, so that the whole concept of anything goes is going to stop and this is the first stage in that whole process,” he said.

He said his approach to restructuring NNPC was based on a three-pronged process, explaining that there was the people aspect, which is being handled now by “getting the right people in the right places”.

On the second pronged strategy, he said: “We are going to get a forensic audit done so that we know clearly, not the (limited) one done by PricewaterhouseCoopers (PwC), but a proper forensic audit that will cover us all the way to 2014, 2015, and we will be able to say to you this is the state of the corporation and the economy.

“We are going to put processes and controls in place; we are going to do retraining and repositioning and then we are going to engage our (oil) majors and minors, all those who are active in the sector for us to work as a team trying to take Nigeria forward.

“The final stage will be the business stage, looking at all the existing contracts — are they good? Are they ok? Do they need to be redone? Look at the PSCs
(Production Sharing Contracts) and what do we do going forward? Look at the challenges posed by the reducing balancing sheet as a result of $50 or $40 per barrel for dark oil.

“What do we do to energise recovery and the income growth so that the government will have money to work with?

“It is a very intensive and calibrated work. A lot of us are not spending time sleeping, but over the next five to six months you will begin to see a new emergence in the NNPC, a new process of oil administration in the country and obviously giving fillip to Mr. President’s dream of taking the oil industry back to where it should be.”

He explained that a lot of things had been mishandled in the past and that things needed to be corrected.

He said his team was doing a lot of work on repositioning, restrategising and getting the right personnel in key places, and setting a culture for accountability and service delivery.

“I think that the new NNPC that you are going to see going forward will be a different institution all together,” he said.

When asked what would happen to the money in NNPC’s numerous accounts in view of the federal government’s directive that all ministries and agencies should operate a Treasure Single Account (TSA) with the Central Bank of Nigeria (CBN), he said: “All that is being looked at because to run an oil company you need a lot of funds to do so.

“If you don’t, you will close down the corporation and the production system will close down. So we are looking at having merged the need for accountability and openness with the need to make sure that the industry also survives, you cannot throw away the baby with the bath water.”

Also, in furtherance of its reorganisation, NNPC yesterday released the names of 15 new GGMs who were promoted this week to run its subsidiaries and business units.

A statement by the corporation’s spokesman Ohi Alegbe said this followed the recent sack and retirement of key top officials of the corporation in a reorganisation exercise that kicked in with the appointment of Kachikwu as its new GMD.

NNPC said that its reorganisation into a lean, efficient and business-focused organisation commenced with the management’s approval of the retirement of 38 senior managers on Tuesday.

Read More: thisdaylive

NNPC’s Group Executive Directors Sacked

According Sahara Reporters, the sacked GEDs are Mr. Ian Udoh leading Refining and Petrochemicals, Mr. Adebayo Ibirogba leading the Engineering and Technical team, Dr. David Ige leading Gas and Power, Dr. Attahir Yusuf leading Business Development.


Others are Dr. Dan Efebo leading Corporate Services, Mr. Bernard Otti in charge of Finance and Accounts, Ms. Aisha Abdurrahman leading Commerce and Investments, and Mr. Joseph Dawha leading Exploration and Production.

The report also said GMD Kachikwu intends to reduce the number of GEDs to 4 from 9.