Category Oil & Gas

Oil
By Edith Ike-Eboh
Abuja, Feb. 18, 2020 (NAN)The Nigerian National Petroleum Corporation (NNPC) says the nation lost about 750 million dollars to oil theft in 2019.

The NNPC Group Managing Director, Malam Mele Kyari, disclosed this in a statement signed by the Acting spokesman for the corporation Mr Samson Makoji, in Abuja on Tuesday.

Kyari said this when members of the Executive Intelligence Management Course 13 of the National Institute for Security Studies (NISS) visited the NNPC Towers.
He decried the growing activities of oil thieves and pirates which he described as a threat to the operations of the corporation.

The GMD who spoke on the topic: “Piracy in the Gulf of Guinea; Issues, Challenges for International Trade, National Security and Sustainable Development of Member States”, said that any threat to the corporation’s operations was a direct threat to the very survival of Nigeria as nation.

This, he said, was because of the strategic role of the corporation as an enabler of the economy.

He listed other security challenges facing the corporation to include vandalism of oil and gas infrastructure and kidnapping of personnel.

According to him, there is a deep connection between the various shades of insecurity challenges as they were all linked to what is happening in the Gulf of Guinea and the entire maritime environment.

He called for a concerted effort and synergy to secure oil and gas operations for the economic survival of the country.

The NNPC boss reassured that in spite of the increase in demand for fossil oil  crude oil would still remain relevant.

“Even by 2050, fossil fuel would account for 80 per cent of the energy mix, and there would still be consumption of at least, 100 million barrels of oil per day.

” We are determined to remain relevant in the long term,” he assured.

In his presentation, NNPC Chief Operating Officer, Downstream, Mr Yemi Adetunji, said in 2016, the Gulf of Guinea accounted for more than half of the global kidnappings for ransom, with 34 seafarers kidnapped out of 62 cases worldwide.

He said the corporation was working closely with security agencies to tackle the security challenges, and cited the “Operation Kurombe” that was recently conducted by the Nigerian Navy at the Atlas Cove as an example of such collaborative efforts.

Also, the Executive Director, National Institute of security Studies, Dr Ayodele Adeleke, called for synergy among the security agencies to tackle the security challenges not only in the Gulf of Guinea, but in the Nigerian Petroleum Industry generally.

The visiting team was drawn from 18 agencies within and outside Nigeria.(NAN)
ENO/AO/WOJ

Edited by Angela Okisor/Wale Ojetimi

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9 LPG plants underway in Sokoto, Kebbi — DPR

Gas
By Habibu Harisu
Sokoto, Feb. 18, 2020 (NAN) The Department of Petroleum Resources (DPR) says no fewer than nine new Liquefied Petroleum Gas (LPG) plants will commence operation in Sokoto and Kebbi states soon.

Mr Muhammad Makera, DPR Operations Controller in charge of Sokoto and Kebbi states told the News Agency of Nigeria (NAN) on Tuesday in Sokoto.

Makera said that DPR is the only statutory body responsible for registering LPG plants and retailers outlets.

He noted that 10 LPG plants currently exist with about 30 retailer outlets in the two states.

Makera, however, expressed optimism that when the new plants commence operations, more LPG related businesses would be propelled in the state.

He said that about two to four retailers approach the office for registration daily and urged eligible owners to come to DPR for registration and relevant operating licence.

According to him, DPR has intensified surveillance to ensure maximum safety and compliance to regulations in cooking gas retailers business in the two states.

Makera said that DPR inspect all proposed locations and premises to ensure compliance to regulations before issuing license.

”The DPR will continue to ensure that stakeholders in the petroleum sector operate in a safe environment and according to international best practices.

”Sanctions are available for operators that default in their operations, to serve as deterrent to others.

“We urge marketers to align their business values to reflect integrity and the sanctity of human lives and the environment,” Makera said.

He added that enforcement of the regulations was necessary considering the rate at which more LPG shops mostly handled by untrained and unlicensed retailers were coming up.

Makera said that the attendant result of the negligence of enforcement of regulations had led to several fire outbreaks, damage to oroperties and loss of lives.

He noted that the essence of the engaging business owners on safety meeting was to acquaint stakeholders with basic fire fighting skills in case of any fire incident.

He said that some Cylinders were substandard while some had expired and urged retailers to assist DPR in tackling indiscriminate use of substandard and expired Gas Cylinders by consumers.

Makera said that the registration fee for refilling plant is N10,000 while retailer outlet pays N5,000, describing the amounts as affordable.

He said that the retailers union, Standard Organization of Nigeria (SON) and other stakeholders joined hands with the DPR to sanitize the business.

The Controller said that N500,000 penalty charge awaits any plant owner that is found guilty of selling cooking gas to unregistered retailers.

“Retailers should not be located within markets, schools and open places, or near meat (Suya) sellers, beans cake friers and others.

“Retailers should also have bucket of sharp sand, well ventilated shop, display appropriate warning signs and emergency numbers and keep distance from fire sources,” he said.

Makera said that retailers are to operate on regulated time of between 6 a.m to 6 p.m, while physical preventive measures should be provided.

He called on the public to be safety conscious and keep cylinders away from kitchen and direct exposure to sunlight.

He emphasized that using LPG is cheaper and contributed to environmental protection as it reduces indiscriminate tree felling for firewood or charcoal which increases desert encroachment. (NAN)
HMH/KOLE/MZA
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Edited by Remi Koleoso/Maharazu Ahmed

NNPC
By Edith Ike-Eboh
Abuja, Feb. 17, 2020 (NAN)The Nigerian National Petroleum Corporation (NNPC) and its Joint Venture Partners have disbursed 360 million dollars toward the Ogoniland Clean-Up project as recommended by the United Nations Environment Programme (UNEP).

The Joint Venture (JV) Partners are Shell Petroleum Development Company (SPDC), Total Exploration and Production of Nigeria (TEPNG) and Nigerian Agip Oil Company (NAOC).

The Group Managing Director of the Corporation, Malam Mele Kyari, disclosed this in a statement signed by its Acting spokesman, Mr Samson Makoji, in Abuja on Monday.

Kyari spoke during a presentation to the House of Representatives Committee on Environment and Habitat at the National Assembly.

Represented by the NNPC Chief Operating Officer, Upstream, Mr Roland Ewubare, he said that funding was not the challenge of the Ogoniland clean-up project.

He added that NNPC and its JV partners were up to date in their financial remittance to the clean-up project fund based on the United Nations Environment Programme (UNEP) framework.

“Ogoni clean-up is a massive issue and NNPC and its JV partners are ready to fund the project as prescribed by the UNEP Report.

” We have so far disbursed $360million out of the 900million dollars recommended.

“The disbursement was based on the standards set, which required that we release funds based on the implementation parameters of the clean-up exercise,” Kyari said.

He noted that though NNPC and its JV partners were not responsible for the implementation of the clean-up, all stakeholders must come together to ensure that the project was carried out successfully.

Kyari added that the implementation of the clean-up was very important as the exercise would enable the restoration of land, water and the economic well-being of the people in the area.

He decried the misinformation about the Ogoniland clean-up and urged the Hydrocarbon Pollution Remediation Project (HYPREP) to ensure that the narrative was corrected for the effective implementation of the project.

A member of the House Committee who was a former Minister of Environment, Hon. Aishatu Jibrin Dukku, applauded the NNPC and its JV partners for their commitment to the Ogoni clean-up project

She urged all other stakeholders to join hands with HYPREP to ensure the successful clean-up of the area.

Also, Chairman of the House of Representatives Committee on Environment and Habitat, Hon. Johnson Oghuma, expressed commitment of the current leadership to ensure full implementation of the UNEP Report on Ogoniland for the common good of the people of the area.

It would be recalled that the UNEP Report on Ogoniland clean-up had estimated an initial clean-up costs of over 1billion dollars for the first five years of a 25 to 30-year process.( NAN)
ENO/CHOM/WOJ

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Edited by Chioma Ugboma/Wale Ojetimi

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NNPC
By Edith Ike-Eboh
Abuja, Feb. 14, 2020 (NAN) The Nigerian National Petroleum Corporation (NNPC) has recruited 1,050 Graduate Trainees, signaling the successful completion of its 2019/2020 employment exercise.

The corporation made the announcement in a statement signed by its acting spokesman, Mr Samson Makoji, in Abuja on Friday.

It quoted the Group Managing Director, Malam Mele Kyari, as saying that the Human Resources Division of the NNPC had commenced the issuance of provisional offers of employment to the fresh employees.

He described the  recruitment as a very important assignment for the corporation, adding that the outcome of the exercise reflected national spread and complied with all statutory requirements.

The GMD maintained that recruitment in the corporation would be a continuous process.

He noted that the Experienced Hire (EH) component of the exercise would be addressed in due course.

“We look forward to warmly receiving our new team members and working with them to build a corporation that all Nigerians will be proud of,” Kyari added.

It would  be recalled that the 2019/2020 recruitment exercise was advertised in the national dailies on March 13, 2019.

It was followed by shortlisting of qualified candidates on March 27, 2019 with the third phase of Computer Based Test on June 1, 2019 and interview in July of the same year. (NAN)
ENO/CHOM/AFA

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Edited by Chioma Ugboma/Felix Ajide

Licence

By Edith Ike-Eboh

Abuja, Feb. 14, 2019 (NAN) The Department of Petroleum Resources (DPR)  has officially handed over the Oil Mining Licence  (OML) 98 to the Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Speaking at the hand-over on Friday in Abuja, Mr Sarki Auwalu, DRP Director and Chief Executive Officer, said that the licence was revoked from its operators Pan Ocean oil corporation over non remittance of royalties.

OML 98 is the only asset belonging to a Joint Venture (JV) between NNPC and Pan Ocean Oil. OML 98 is located in the onshore Niger Delta.

The acreage was originally awarded to Pan Ocean in 1971 as OPL 71 and was converted into OML 98 in 1975. Production from the JV started in 1976

OML 98 is an asset that is prolific.

The 2P reserve is about 43 million barrels with 20 million barrels of condensates, with over 383 billion SCF of gas.

These assets is supposed to work.

“There is an obligation for each and every company that they need to pay to government; and the first line charge is royalty. If a company is not paying royalty, it means the company is not performing.

“So government is invoke its own right to revoke the asset and give it to somebody that would pay that royalty to the Nigerian people; because royalty is what Nigerians really take out of the business.

“All the investors they would come, we would give them opportunities by giving them the assets; they would put in their money and they would give certain royalties, concession rentals and other revenue to government.

”That is really what government takes from the asset, the resource; whether it is oil, condensates or gas.The reason for the revocation is failure to meet obligations of that asset to government,’’  he said

He said that five other licences that were revoked alongside OML 98 were revoked for the same reason adding that government was looking at for the best people to transfer the assets to for maximum utilisation and benefits.

“Why, because, we want the assets to work and we want Nigerian people  to benefit from the resources they were blessed with ,so, the fate of the others will be similar to this  and government is looking at the best way to operate the assets  for  Nigerians to benefits.’’ he added

He said that NPDC got the asset for its proven confidence in operations over the years.

“This is a company that 15 years ago they could not show  to drill up to 10,000 barrels but now, our NPDC can produced over 150 million  barrel per day .

“It shows that now, Nigeria has come of age, we have company of our own, 100 per cent Nigerians, operate by Nigerians and work for Nigeria and we are ready to transport skills.

“NPDC have fantastic  good skills, there is no white man working in NPDC, drilling, production 100 per cent Nigeria, we are proud of them and we need to support them. This is our own made in Nigeria, by Nigeria and for Nigeria,’’ he said.

According to him, that is why government thought it wise handing over the OML 98 to them as it is our own company to make sure that Nigeria works.

He noted that the handing over of the assets to NPDC means that Nigeria oil and gas sector  had grown adding that the policy idea was to ensure that Nigeria take charge of its resources.

Auwalu urged the company to be responsible and ensure that it operated with ultimate transparency and develop the asset for the benefit of Nigeria.

He noted that government would not spare any body found wanting

Ferdnard Bariwer, General Manager Exploration and Development Division, NPDC said that the company would look at the asset and sort the best things to do to move forward.

“I strongly believe that we are doing more studies already, other activities; we will look at the OMLs and see the quick wins to start producing as soon as possible to meet the expectation of the nation.

“I assure you, I have been in NPDC since 1987 and I know the capability that we have , I assure you the government and everybody that NPDC is capable of handling the OML,’’ he said

He said that currently the company was producing about 200,000 barrel and working hard to move to between 300 and 500 barrel per day.

“Before the year will run, you will hear from us how much we are producing,’’ he said.

Bariwe represented the Managing Director of NPDC, Mansur Sambo.

 Also, Mr  Olajide Ishola, Chief Operation Officer Pan Ocean Oil Corporation said that the asset was  given to Pan Ocean 1973  and production  started in 1976.

“So, we have operated the asset for 43 years, we are a responsible company , however, as thing went the way it went, this revocation is really not new as its been done since March last year.

“ Today, is not a sad day, because since March last year that the revocation has been done, a lot of things has been left in limbo.

”This meeting of today sets the tone for the handover and the future of the asset, and also for those things left in limbo, like what do we do to the staff; the oil that has been produced, that was warehoused and not sold, not shared and all t he rest.

“I want to reiterate that as Pan Ocean, we will cooperate with NPDC and all relevant stakeholders to ensure that the directive is carried out for the benefit of Nigerians,’’ he said

Commenting on the Legacy debts, he said it would d be worked on and sorted by the NPDC as the new operator.

“We would work along and cooperate with them to ensure it is done properly,’’ he added. (NAN)

ENO/SH

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edited by Sadiya Hamza

Retailers urge multinationals to focus on production of LPG materials

Retailers

By Solomon Asowata

Lagos, Feb. 14,2020 (NAN) The Liquefied Petroleum Gas Retailers (LPGAR), branch of National Union of Petroleum and Natural Gas Workers (NUPENG), on Friday urged multinational companies to focus on the production of  LPG materials such as cylinders,  cookers, hoses and burners clips.

Its National Chairman, Mr Michael Umudu, told News Agency of Nigeria (NAN) in Lagos that the LPG sector was in dire need of genuine products to enhance safety of distribution and usage in Nigeria.

Umudu alleged that the regulatory agencies had been given preferential treatment to the multinationals  in finding solutions to the issues affecting the industry.

He said: “A situation where privileged ones are consulted and their input used to determine what affects others is not good for the system.

“They should realise that there is equally what I can call ‘commercial war’ in the sector.

“It is only in Nigeria that you see a multinational scrambling for a space in the street to retail LPG with medium and small scale retailers.

“These multinationals and large indigenous LPG companies should invest in production of LPG and materials such as cylinders, cookers and hoses.”

According to him, the government should encourage such investments instead of focusing totally on eradicating illegal LPG retailers.

He said that the claim that LPG retailers are the major problem affecting the sector was false, noting that all hands must be on deck for sanity to be restored in the industry.

Umudu said LPGAR would continue to sensitise its members and the general public to safe LPG usage to prevent cases of gas explosion which had been on the rise in recent times.  (NAN)

ASO/DCU
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Edited by Donald Ugwu

 

oil
By Edith Ike-Eboh
Abuja, Feb. 12, 2020 (NAN)The Minister of State for Petroleum Resources, Chief Timipre Slyva, said that about one billion Barrels of Crude oil have been discovered in Northeastern part of Nigeria.

Sylva made the disclosure at a news Conference to end the 2020 Nigeria International Petroleum Summit (NIPS), in Abuja on Wednesday.

“The figure we are getting, the jury is not totally out yet but from the evaluation results we are getting the reserve that has been discovered in the northeast is about a billion barrels.
“Those are the kind of figures we are seeing and we are beginning to understand the geological structure of the region,” he said.

According to him, a lot of oil is yet to be found in the country.

He added that there was need for more exploration in the country as more oil would be discovered.

Commenting on passing of the Petroleum Industry Bill ( PIB) by June, he said that he was confident that it would be passed based on cordial relationship between the legislature and the executive.

“We are banking on the fact today to make that promise on the fact that there is a very cordial relationship now between the legislature and executive.

” Today Nigerians all agree that there is a need for us to pass the PIB.

” For so long we have been quivering about the PIB, for more than 20 years. And for so long, we have not been able to attract a lot of investment into the oil sector.

” Let me give you an example, by the year 2002, our oil reserves stood at around 22 billion barrels. We were able to grow that reserve from 22 billion barrels to 37 billion barrels by 2007.

” From 2007 to now, we have only been able to grow our reserves from 37 billion barrels to 37.5 billion barrels, in more than 10 years. Why? Not much investment is coming into Nigeria,” he added.

He noted that  investors could not invest in Nigeria if the fiscal framework was shaking or uncertain.
“If nobody knows when laws will be passed, nobody will want to invest new capital in Nigeria. And that is why you see that we have almost been stagnant in the Nigerian oil industry.

So, we believe today that there is a consensus among all of us – industry, Nigerians and government – that there is a need to stabilise the fiscal framework so that investors will be certain and move their money to Nigeria.

” There are very great opportunities in Nigeria, and I believe if we can only stabilise the fiscal framework and bring peace to Nigeria, investments will flow into Nigeria.

“That is really what gives me the confidence to say that there is a consensus now among all patriotic Nigerians that in six months the PIB will be passed,” he added.

On revamping of the refinery, he said that rehabilitation of Port Harcourt refinery would start in the first quarter of 2020.

 We are going to start the rehabilitation of the port Harcourt refinery which is the biggest refinery in Nigeria, if we are able to finish the port Harcourt refinery we would have achieved a lot as a government. “

“Meanwhile we are also continuing with studies around Warri refinery, we are also continuing discussions around Kaduna refineries,” he said.(NAN)

ENO/DCU 

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Edited by Donald Ugwu

NIPS
Abuja, Feb. 12, 2020(NAN) The Minister of State for Petroleum Resources, Chief Timipre Sylva, has assured that recommendations from the Nigeria International Petroleum Summit (NIPS) will be implemented.

Sylva gave the assurance at the closing ceremony of the 2020 NIPS in Abuja on Wednesday.

“The recommendations from this summit are very vital for policy formulation in the oil and gas sector.

“I want to assure you that we will fast track all the accepted recommendations from this summit and place it high  for implementation,” he said.

He said that the participation in the summit in the past three day was a clear display of the power of partnership between the government and the private sector to make progress.

He added that the signing of the Nigeria Gas Transportation Code at the summit was also a proof of President Buhari’s support to drive industrialisation in the country.

He urged that people should be mindful of the negative things coming out in the media concerning the image of the country.

According to him, although the country is fighting corruption and poverty it is also making tremendous progress.

He said negative reports on the nation affected investments as investors would only want to invest where their investments would be safe.

“We must all contribute to good story about Nigeria. what drives the sector is technical competence and access to capital.

“What makes capital easy to come to Nigeria is what we put out that people read about us,” he added.

News Agency of Nigeria (NAN) report reports that the theme of the summit is: “Widening the integration Circle: Technology, Knowledge, Sustainability, Partnership”. (NAN)

ENO/DCU

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Edited by Donald Ugwu

Funding key to achieving local content — Firstbank

Content

By Edith Ike-Eboh

Abuja, Feb. 12, 2020 (NAN)/Ms Bashirat Odunewu, Group Executive, Energy Infrastructure, CBG, First Bank Ltd. said that funding was key to achieving local content in the county.

Odunewu spoke as one of the panelists at a session at the ongoing Nigeria International Petroleum Summit (NIPS), in Abuja, on Wednesday.

She said that funding projects that had local content remained a big challenge in the industry due to lack of return on investment.

“ Funding is the heartbeat of local content but what we have observed is that people don’t think of funding before signing a contract.

“It is very important to know that once you are pursuing a contract, you should be able to articulate how it will be funded,” she said.

She noted that most local contractors did not make use of professionals to manage finances, hence monitoring cash inflow remained a big challenge.

“I will like to advise contractors that to achieve local content, we must take funding as key.

“Most projects that could drive local content could take between 500,000 dollars and 500 million dollars; it is imperative that they articulate the funding process well to enable the project not to fail.

“Part of why many contracts fail is that when they start and they don’t articulate the funding and management they begin to owe small contractors and eventually the contract will not deliver.

“We must take funding seriously if we want to achieve local content for economic growth and development,” she added.

Also, speaking Mr Bank Anothny Okoroafor, President Petroleum Technologist Association of Nigeria (PETAN), said that establishment of the local content Act was the best thing that had happened to Nigeria’s oil and gas sector.

He said that the  Act had brought several changes and development in the oil and gas sector adding that it had helped in job creation.

“Many Nigerians now own oil rigs, about three million jobs have been created and capacity built due to the Act.

“The Nigeria Content Development and Monitoring Board (NCDMB), should have national award for what it has contributed to the sector,” he added.

Also, Prof. Wunmi Iledare, Former President Nigeria Association of Energy Economies (NAEE), said that local content was about values.

He said that all over the world, Nigeria local content Act had been the banner for its contribution to the sector.

He said that the country had been able to improve the local capacity participation in the industry.

“What we need to do now is to do continuous evaluation of curriculum to enable the industry and the academic to embrace to move the industry,” he added.

He called for more incentives to help motivate more people to study some courses to sustain some areas of study in the industry. (NAN)
ENO/GOM/DCU
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Edited by Gregg Mmaduakolam/Donald Ugwu