• follow us in feedly

Oil and gas suppliers ready to combat adulteration of petroleum products

By News Desk,

Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) says it is ready to partner with the Federal Government in curbing circulation of adulterated petroleum products and pipelines vandalism.

Abdulahi Idris, the Deputy Chairman of NOGASA’s Board of Trustees, made the pledge during the inaugural ceremony of the association held in Abuja.

According to him, government is managing virtually all aspects of oil and gas but a lot of logistic issues are hindering its efforts at achieving the desired goal.

Idris said that collaboration between the association and the government had become necessary because the latter alone could not address all the existing challenges in the oil and gas sector.

“There was increasing population and sustained struggle to keep up with high demographic demands for vital industrial and domestic petroleum product.

“Petrol, diesel, kerosene and domestic gas became difficult to push to end users and consequently private investors and players started coming in to help tackle the challenges.

“Distribution of petroleum products, however, suffered a great deal of obstacles as a result of fragmented and individual engagement of the job.

“We have discovered that the challenges, intrigues and delay have translated our experience to take up our rightful place in the industry,” he said.

The deputy chairman stated that the association had resolved to be a responsible and forthright representative body that would partner with the government, among other objectives, discourage illicit transactions in the downstream sector.

He further stated that the association would avail itself of the benefits and various support provisions such as products, capital, insurance, banking relationship, litigation among others.

In his remarks, the President of the Association, Benneth Korie, said the strategic position of the industry as suppliers of Natural oil and gas in the overall development of economy could not be overemphasised.

Korie called on marketers patronising illegal depots to desist from doing so, saying it would jeopardise the association’s efforts in addition to the frequent damages caused by adulterated products.

DPR licensed 147 filling stations in FCT in 2018 — Controller

By News Desk,

The Department of Petroleum Resources (DPR), said it licensed 147 filling stations in the Federal Capital Territory in 2018.

Abba Misau, the Zonal Operation Controller, disclosed this at DPR Abuja Zonal Celebration of the nation’s 2018 Independence Day, on Wednesday in Abuja.

“We have about 357 filling stations in Abuja, with our surveillance this year, we have licensed 147 filling stations and 83 out of the licensed ones are new stations.

“We also did a raid on 13 illegal filling stations in the territory; right now, five out of them have come to regularise their papers and have been fully licensed; the others are still on the process.

“We equally raided about 11 illegal gas stations  and four of them have also regularized their registration for proper licensing,’’ he said .

He attributed the achievement to the commitment of the staff members adding that the Department would continue to ensure that every operator was properly licensed for business.

He urged members of staff and the general public to report to DPR any illegal gas or filling station for proper sanction.

He said that the DPR would continue to sanction anybody who failed to follow the laid down rules for the sector and would seal any station that did not meet the minimum requirement to operate.

Commenting on the 58th Independence Anniversary, he said that the DPR marked the event to honour the doggedness of Nigerians in sustaining peace in the country.

According to him, it is also an avenue to encourage the staff members for their commitment which translates to the growth and development of the country.

“We should be proud of our country Nigeria; many countries that go through what we have gone through are no longer together.

“But in spite of all the crises we go through, we are still united. For us, it is worth celebrating,’’ he said.

In her remarks, Funmi Olorunfemi, Acting Assistant Director, Services, urged the workers and Nigerians in general to put in their best in the work they do.

She urged Nigerians to adopt good attitude and culture as practiced in developed world to help make Nigeria great.

“The President is fighting corruption seriously, we all are to join in the effort to purge our nation of corrupt practices so that we can be proud of our great nation,’’ she said

Also, Clement Katyen, a representative of PENGASSAN, DPR Branch, urged members of staff to be committed in carrying out their duty.

“Celebrating Independence should be a clarion call for us to continue to work hard for the growth and development of the country,’’ he said.

NNPC records N18.12bn trading surplus in May

By Business Desk,

The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of N18.12bn for May 2018, a performance which is relatively higher than the trading surplus of N17.16bn recorded in April.

Details of the transactions contained in the recently released May 2018 edition of the Monthly NNPC Financial and Operations Reports also indicated that the additional trading surplus of N0.96bn was mainly due to increased performance of some of the corporation’s subsidiaries namely: the Nigerian Petroleum Development Company (NPDC), Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC) and Marine Logistics.

Within the period, the NNPC Group performance was mainly impacted by NPDC which recorded a favourable variance of N18.22bn due to increase in revenue with parallel decrease in expenses. This resulted in N20.93bn net increase in the upstream gas and power surplus.

Overall, the report indicated that the increase in performance was bolstered by the relatively high production volumes of 1.97 million barrels per day in April 2018 which was sold in May, 2018 thereby reducing cost per unit.

Under the national crude oil and natural gas production, lifting and utilisation segment, the report noted that 58.96 million barrels of crude oil and condensate were produced in the month of April 2018 representing an average daily production of 1.97 million barrels. This represents 1.02 per cent increase compared to the preceding month.

A breakdown of the production figure indicated that Joint Ventures (JV) and Production Sharing Contracts (PSC) contributed about 32.82 per cent and 41.77 per cent respectively, while Alternative Financing (AF), NPDC and Independents accounted for 14.68 per cent, 7.65 per cent and 3.08 per cent respectively.

It was also indicated that the NPDC’s cumulative production from all fields within the period amounted to 47,759,229 barrels of crude oil which translated to an average daily production of 120, 909 barrels per day.

In terms of national gas production, the 34th NNPC Financial and Operations Report highlighted that 231.59 Billion Cubic feet (BCF) of natural gas was produced in the months of May, 2018, translating to an average daily production of 7,785.01 Million Standard Cubic Feet per day (MMSCF/D).

In the downstream sub-sector, NNPC continued to ensure increased petrol supply and effective distribution across the country. In May, 2018, 1.19billion litres of petrol were supplied by NNPC, translating to 40.59mn Liters/day to sustain seamless distribution of petroleum products which resulted to zero fuel queue across the nation.

In the month under review, the corporation continued to monitor petrol evacuation figures from depots across the nation, and engaged, where necessary, the Nigerian Customs Service (NCS) and other stakeholders through existing Joint Monitoring Team.

Qatar to produce electric vehicles by 2023

By Business Desk,

The Qatari electric vehicles will be manufactured by the factory which will be established at a cost of nine billion dollars, said “Qatar Tribune” newspaper.

The project will be the first-of-its-kind in the Middle East as it is a whole new brand, said Ali al-Misnad, Chairman of the Qatar Quality company, which is responsible for this project.

Al-Misnad also said that the new giant project aims to manufacture more than 500,000 cars by 2024 with plans to export the electric vehicles to countries all over the world.

As part of the project, the plan will include establishing of six factories and each will be specialised in different production line.

Nigeria set to lose 550,000 barrels of oil by ExxonMobil

By News Desk,

ExxonMobil said  a blockade by former employees threatens crude production at oil facilities in Nigeria, adding that “disruptions to these operations have the potential to significantly impact revenues.”

The company made the announcement in a statement after a six-week blockade by former workers at the oil facilities.

Mobil Producing Nigeria, the ExxonMobil subsidiary that released the statement, produces over 550,000 barrels per day of crude oil, condensates and natural gas liquids, according to the company website.

The blockades were described in ExxonMobil’s statement as the “playing of loud music, defacing of company facilities and intimidation of personnel.”

The “continued denial of access to lproduction facilities could impact the company’s ability to safely continue production operations,” ExxonMobil said.

The protest which began on 17 July was over the sacking of 860 Nigerian workers most of whom had worked with the company for over 22 years without regards for the rule of law.

Rasak Obe, the Chairman of ExxonMobil Branch of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said the  union was shocked by the mass sack of security personnel who had faithfully served the company for many years.

He said the management should immediately reinstate the employees of the security department  and pay all entitlements due to them.

The union leader also urged the management to immediately reinstate the 16 employees purportedly sacked in Dec. 2016 in a similar fashion.

He demanded the immediate release and repatriation of over 20 expatriate personnel in the security department who had been engaged and kept in defiance of extant Nigerian laws and security directives.

According to him, this was an unfortunate situation which the Supreme Court of Nigeria had corrected with its April 20, 2018 judgment.

“This underscored the scale of error in company’s assessment of the reality after the Supreme Court judgment.

“There are tens more who by the judgment are active employees of Mobil Producing Nigeria Unlimited.

“To say the least, this wholesale sack unambiguously conveys management’s disdain for the highest court of the country and mocks its ruling on the subject”.

Obe said the company was quick to indiscriminately sack Nigerians and replace them with expatriates, taking jobs Nigerians have successfully performed over the decades.

He said expatriate security personnel, many of whom were ex-service men, were currently engaged in the security department against the directives of National Petroleum Investment Management Services (NAPIMS) and the Nigerian Defence Ministry.

NLNG remits $6.5b as tax to FIRS

By News Desk,

The Nigerian Liquefied Natural Gas (NLNG) has remitted more than $6.5 billion in taxes to Federal Inland Revenue Service (FIRS) since 2009.

Tony Attah, Managing Director of NLNG, said at the investigative hearing into the proposed sale of the company held by the House of Representatives Committee on Gas Resources, in Abuja.

The hearing was on the need to investigate contract for modification of Escravos Gas Project (EGP) 3B production platform, following the joint ventures agreement between the Nigerian National Petroleum Corporation and Chevron Nigeria Limited.

It is also on the investigation into the contract for the upgrade of OML 58 Upgrade 1 and the building of Obote/Ubeta/Rumuji pipeline.

According to him, since the N LNG became a tax-paying company its contributions are helping to build a better Nigeria even though it does more than financial contribution.

“As a result of Nigeria LNG being in existence, we have helped to reduce gas flaring by more than 65 per cent and will continue to work with our upstream suppliers to mop-up more.

“This is because we produce the opportunity as the biggest gas sink for whatever gas is provided in the country. We have the capacity to receive that gas but I think by far the biggest opportunity is in Nigeria’s brand and reputation.

“Before NLNG, Nigeria was actually No. 2 on the undesired league of gas flaring nations in the world.

“But today, we are No. 7 ahead of other countries such as United States, I mean, United States is flaring more than Nigeria,” Attah said.

He added that the company was spending about $120 million on the construction of Bonny-Bono Road which will connect Bonny to Port Harcourt, slated for completion within 40 months.

On the development plans of the company, Attah unveiled the company’s plan to embark on 6 billion US dollars capacity development project for the Train 7, which had potential of creating 12,000 new jobs in the Niger Delta region.

“The big deal for us in Nigeria LNG is growing capacity. Currently we have six Trains with 22 million tonnes per annum capacity which is 7 per cent of global market share of LNG.

“We want to grow back to the 10 per cent which was what it was before. So we want to grow by about 35 per cent capacity before Australia.

“We want to grow by about 355 capacity, that will come via Train 7 project for which we have commenced the engineering design and we are looking forward to take a final investment decision not too long.’’

He also said NLNG had remitted more than 100 billion US dollars’ as revenue to the coffers of Federal Government and other equity holders in the company.

According to Attah, Federal Government through Nigerian National Petroleum Corporation (NNPC) which owned 49 per cent equity got more than $15 billion dividends.

He said that this positioned the company as the singular highest tax paying company in Nigeria and indeed Africa.

Attah added that other shareholders such as Shell Gass BV owned 25.6 per cent US dollars, Total owned 15 per cent while ENI International owned 10.4 per cent.

On the company’s efforts towards reducing gas flaring in the country, Attah said that a lot of its contributions to the country is monetary, adding that more than $100 billion revenue and about $15 billion dividends had gone to the Federal Government directly.

Contributing, Rep, Randoff Brown (PDP-Rivers) noted that NLNG was the most significant arrow-head of the Federal Government’s quest to eliminate gas flaring and derives value from the country’s 187 trillion cubic feet of proven gas reserves.

“NLNG has covered about 119 Bcm (million standard cubic metres) or 4.2tcf (trillion cubic feet) of associated gas to export as LNG and natural gas liquids thus helping to reduce gas flaring by upstream companies from over 60 per cent to less than 25 per cent.

“NLNG mops up gas that would otherwise be flared, thus making significant contributions to the nation’s income, delivering in the last 13 years over 13 billion dollars on gas purchases from oil producing companies, of which the Federal Government of Nigeria owns 55 per cent – 60 per cent CIT and other taxes,” he said.

Also speaking, Rep. Diri Douye (PDP-Bayelsa), who sponsored the motion on the need to investigate the contract for the modification of the EGP 3B Production platform following the joint venture agreement between Federal Government, NNPC and Chevron Nigeria Limited, frowned at the delay in the completion of the project.

According to him, modification work on all the seven platforms was meant to have been completed by April 31, 2013 at the rate of 64,179,198 US dollars but it was eventually concluded in 2016 at a reviewed cost of 192.7 million dollars.

“The implication being that, whereas, it was awarded the contract on the basis of being the lowest bid it eventually became the highest bid.

“It is also alleged that Prime Source Limited (PSL) was poorly resourced in manpower, logistics, equipment and funding to undertake a job of such description.

“It is also instructive to note that PSL bid for the contract alongside a consortium, i.e Prime Source-Hensteel SOMECO, however, the contract was solely awarded in the name of PSL,’’he said.

While ruling,chairman, House Committee on Gas Resources, Rep. Frederick Agbedi, tasked the company on the need to replicate its model for the country to take its rightful position in the global market and the implementation of developmental projects.

“We join the elders of the Niger Delta, and we are not in support of any contemplation to sell off NLNG.

“The shares held by NNPC on behalf of the country, the people of Nigeria have vested interests in the company, so they are not shares that any government can take in whatever guise.

“You don’t play politics with such investment even if that is the only revenue we can rely on as a nation.

“On that note, the committee will step down the motion for the committee’s consideration. On the other two motions, we are frustrated by the position of the NNPC,” Agbedi said.

Agbedi then expressed concern over the absence of Mr Maikanti Baru, the NNPC Group Managing Director at the hearing.

The committee, however, resolved to adjourn sine die, till the NNPC helmsman appears in person to respond to queries on the 114.580 million US dollars variation on the modification of the EGP 3B Production platform.

NNPC concludes bunkering set-up plans, other service delivery

By NewsDesk,

As part of plan to ensure a transparent government is felt across the nation, the Nigerian National Petroleum Corporation (NNPC), has concluded plans to set up a subsidiary that would provide refueling services to ships and other ocean-going vessels.

Through a statement on Wednesday by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu,  the Group General Manager, NNPC Shipping, Aisha Katagum, said that subsidiary idea would act on order of Group Managing Director (GMD), NNPC, Maikanti Baru, who had also shown keen interest in the plan.

According to her, the GMD directed the Corporate Planning and Strategy (CP&S) Division to come up with a business model for servicing of ships and other ocean- going vessels.

Katagum explained that the bunkering subsidiary was most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shippping, adding that the proposed company would likely be domiciled in the NNPC Shipping Division too.

On the prospect of the company, she enthused: “I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.”

Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping Division. While Nikorma engages in shipping and transportation of energy products, Marine Logistics on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector, with a mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.

The full interview entitled, “Why We Prefer Free on-Board Rule for Shipping Oil – Katagum”, is published in the August edition of NNPC News, a monthly publication of the corporation, currently in circulation.

Total CEO, Pouyanne drives electric car

By Business Desk,

Here is a confession that should make crude oil producers and oil investors worried. The chief executive of French oil and gas giant Total said on Monday that he and his wife drive an electric car.

“It’s a 100 percent e-car. It’s a nice Renault electric car. And I’m driving it every weekend. It’s my private car,” Patrick Pouyanne told an oil conference.

But he added that he uses an official car that relies on fossil fuels.

“Of course I have my company car which is internal combustion. To make long distances I don’t use an electric car.”

When Total took over upstart utility Direct Energie in April, it said the deal was part of its strategy to grow its low-carbon power generating assets to 20 percent of total assets by 2035 from 5 percent today. These include solar, wind and other renewables assets.

Speaking at an oil conference in Norway, Pouyanne said the chief executive of Norway’s sovereign wealth fund, Yngve Slyngstad, had encouraged him to make the most of the “magic of electricity”.

The fund owns 1.79 percent of Total.

Nigeria imports 165.7m litres of gas

By Business Desk,

The National Bureau of Statistics (NBS) has released a report showing that Nigeria imported 165.71 million litres of Liquefied Petroleum Gas (LPG) in the second quarter of 2018.

The NBS disclosed this in its “Petroleum Products Importation and Consumption (Truck Out): LPG (Q2 2018)” report released on Sunday in Abuja.

According to the report, April recorded the highest volumes of LPG imported into the country at 59.89 million litres.

It said 55.37 million litres was imported in May, while the lowest volume was imported in June at 50.45 million litres in the period under review.

The month of March recorded the highest volume of LPG imported into the country in the first quarter at 39.47million litres.

The same volume of 33.83million litres was imported in January and February in the first quarter.

According to the bureau, the statewide distribution of truck-out volume for the second quarter showed that 105.49 million of LPG was distributed nationwide during the period under review. (NAN)

Oil, Gas exhibition holds in South Africa

By Business Desk,

The oil and gas exhibition being put together by Future Energy Africa in South Africa is attracting critical stakeholders across Africa.

The event holding in October in Cape Town, South Africa, will also feature a conference tagged, “ Africa’s Integrated Oil, Gas and Energy Transformation’’.

It is dedicated to advancing future oil, gas and energy solutions for the continent.

It would attract leading governments, national and international oil companies and industry experts to provide in-depth analysis and an honest reflection of Africa’s readiness to revolutionize the future.

With far reaching industry collaboration, under the patronage of the Department of Energy South Africa, the event is slated for October 1 through 3.

One of the media partners and a speaker at the exhibition, Ms Margaret Nongo-Okojokwu, who is the editor of Orient Energy Review, said the exhibition will bring together African leaders and stakeholders in the energy sector.

The intention, she said, is to provide cutting edge solution to the problems confronting the power and energy sector in Africa.

According to her, over 50 exhibitors, 100 critical speakers, including Nigeria’s Minister of State for Petroleum, Ibe Kwachikwu and 50 participating countries from Africa will be at the exhibition with a view to boosting bilateral trades among African countries.

“Africa has become the most sought after bride with many developed countries now looking towards Africa for investments.

“At this exhibition, Future Energy Africa exhibition, provides a platform for leading industry figures to interact at the highest level, privately and securely.” Nongo-Okojokwu said.

She said the conference will also provide exhibitors and conference participants with an indispensable source of information, dedicated platform for on-site interview.

In his own submission, Mayowa Afe, managing director of Danvic Petroleum international, said the exhibition would provide Nigerian energy companies the opportunity of promoting their companies to the outside world as well as the Nigerian local content drive.

He said so many bad stories had been projected to the outside world about Nigeria. The forthcoming exhibition, Afe said would be an ample opportunity to project entrepreneurs from Nigeria, especially those in the oil and gas sector.