NNPC’s boss charges team on 2018 budget effective utility

By NewsDesk, 

As part measure toward ensuring Nigerian economy is given needed force that drive its performing force, the Nigerian National Petroleum Corporation (NNPC) General Managing Director has charged entire  corporation’s management team on need for all hands to be deck to enable 2018 budget of the office was effective put into use.

Baru stated that the corporation was evolving measures to implement its 2018 budget effectively, the move of which was disclosed during a two-day Management Steering Committee Meeting which commenced on Thursday at NNPC office in Abuja to review the first quarter (Q1) performance report and close out on 2017 operations.

Speaking at the meeting, the corporation’s charged participants, including Chief Operating Officers (COOs), Autonomous Business Units (ABU) and Managing Directors, Strategic Business Units (SBUs), as well as Heads of Corporate Services Units (CSUs), to focus more on the implementation aspect of the report.

He said that management would do most of the front-end work by liaising with relevant government officials to see that the corporation’s budget is signed off on time.

“I want us to look at the performance side very closely and channel our contributions on that”, Dr. Baru urged, stressing that there was need to ensure that the steering committee meeting held on schedule every quarter.

“Now that the budget is almost ready, we need all the various departments to get the relevant documents to enable us secure approval for implementation of the capital projects. What we will now do is to commit and get the approvals”, he said.

Besides,  the corporation stated that it was considering expansion of the capacity development arrangement with its Joint Venture (JV) partners to facilitate a more robust cross-posting of staff between the organizations.

The Chief Operating Officer (COO), Corporate Services, Isah Inuwa, while leading staff on secondment from Nigerian Liquefied Natural Gas (NLNG) and Shell during a meeting with Baru, recently, said that the meeting was designed to appraise the GMD on what the staff on cross posting to the corporation had achieved during their assignment.

However, the GMD commended the partners  on their diligence and  ability to achieve significant land mark at face of  challenge of working in an environment different from that of their primary employers.

As gathered, the cross-posting arrangement is a scheme designed to deepen understanding among the JV partners and develop capacity.

NNPC beams light on Niger exploration, leaves opportunities open to university

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In bid to ensure oil discovery are fully utilized, the Nigerian National Petroleum Corporation (NNPC) has beamed opportunity light on Bida Basin, one of the seven inland basins in the country, for oil exploration, charging Ibrahim Babangida University to leverage on available opportunities and collaborate with the corporation.

It expressed satisfaction on initiative of the university in development of renewable energy, just as it disclosed that the corporation had signed an Memoradum of Understanding with four states on the development of renewable energy projects, which when completed, would not only produce fuels, but also generate about 50 megawatts of electricity.

The Group Managing Director, NNPC,  Dr. Maikanti Baru, said that Bida Basin one of the oil dicovery community that the nation was yet to tap into and that it be of great benefit to Nigeria if institution including IBB university could consider bringing good out of the place.

Speaking during Chairman of Council and Members of Governing Board of the University based in Lapai, Niger State visited the NNPC officer recently, Baru commended the institution on the search for oil in the basin, stressing that NNPC was pleased with the excellent services offered by the Ivory tower in that regard.

He informed the management of the university that NNPC was committed to the development of indigenous technology to place the country on the part of economic growth and sustainable development.

The NNPC’s boss, who described universities as centres for research and development, stated that NNPC would collaborate with institutions to benefit from the array of expertise they have.

He added that the position informed the theme of his recent convocation lecture at the Abubakar Tafawa Balewa University, Bauchi.

Speaking earlier,Chairman of Council,  IBB University, Dr. Mohammed Saminu Turaki, commended the GMD for sustaining the exploration activities in the inland basins and development of renewable energy, saying he was delighted NNPC was involved in research into areas complimentary to the hydrocarbon resources.

He said the institution had depth of competence in the renewable energy, while expressing delight that its scope of collaboration with NNPC was beyond hydro carbon.

On his part, Vice Chancellor of the University, Prof. Mohammed Nasirudeen Maiturari, said the collaboration with NNPC had boosted the profile of the university.

He stated that the university’s rapport with the NNPC GMD dated back to the time he was Group Executive Director (GED), Exploration and Production, during which time he offered them technical advice on exploration in the basin.

The Vice Chancellor commended Dr. Baru on his recent Zik prize for Professional Leadership Award, 2017, assuring the GMD that the unflinching support he has been giving for advancing the course of inland basin exploration in Nigeria would outlive him.

Lagos fixes July for 3,000 power project flag off

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The Lagos State Government has disclosed it concluded plan to embark an anticipated Embedded Power Supply Project in July, with aim generating 3,000 megawatts electricity for the State within the next three to five years through the a brain child of the the state government.

It stated that the project, when takes off, would commence the journey to deregulate Nigeria’s power sector from Lagos State and ultimately achieve energy security for the State.

 

The Commissioner for Energy, Olawale Oluwo, stated that the state government has concluded plan to flag the proposed 3,000mw power generation which would supply uninterrupted powere across homes within the state.

Speaking during an ongoing annual Ministerial Press Briefing to mark third anniversary of the state Governor, Akinwunmi Ambode, on Wednesday, Oluwo hinted that the state Power Reform Programme which was the  Embedded Power Project would be taking off by July.

He reminded that the state house passed the law in January and that the state governor rolled the bill into law in February.just as he informed that project implementation committee was already working and lot of work had been going on on field.

“We would do our Expression of Interest sometime in June and that process will kick-start this project,” he added.

The commissioner mentioned that  the 13 locations for the pilot phase of the Embedded Power Project was currently awaiting approval of the State Executive Council and would be released soon.

Oluwo indicated that the power and gas sectors reforms were key interventions of Ambode led administration to correct the structural challenges in the power sector and gradually position the State for 24-hour power supply.

He informed that apart from the reforms in the power sector, the state government had began implementation of other sectoral reforms including the downstream petroleum sector, the gas sector as well as the solid minerals sector and regulatory reforms.

“The essence of all this is that we want to give Lagos, energy security and to achieve this, you must have security of electricity, gas and petroleum products,” he added.

The Commissioner noted that when the reforms got fully implemented in the next three to five years, the state’s reliance on gas from the Niger Delta region would be less critical to the State’s economy.

“The overall objective of the gas reform is to open the Lagos gas market to local and international players in order to make the Niger Delta gas less critical to future of Lagos economy (the ultimate goal is to make Lagos State to be fully independent of Niger Delta gas in three to five years,” Oluwo said.

Oluwo added that plans were already in the pipeline to increase gas supply to Lagos from the present 500 million standard cubic feet (scf) per day to approximately 1.25billion scf per day in three to five years, adding that the State would soon sign long term off-take contracts for gas found in any oil field in Lagos to power the Lagos economy.

He stated that seven agencies would be driving the reform in the gas sector as plans had been concluded for the reticulation of gas to homes starting from Ikoyi, Victoria Island and Ikeja GRA.

NNPC set 30% petroleum market, distribution share for subsidiary

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The Nigerian National Petroleum Corporation’s (NNPC) has disclosed that it Downstream subsidiary, NNPC Retail, would begin working on how it would ensure it has 30 per cent market share of petroleum products distribution business in Nigeria’s Downstream Petroleum Sector by 2020, such that would enable efficient products distribution and price stability across every nook and cranny of the nation.

It explained that the target was to ensure products distribution and price stability meet need of the nation, and as well extend businesses to other neighbouring states in the west African sub-region.

The Group Managing Director, NNPC, Dr. Maikanti Baru, stated that the aim of the corporation on the set target was on solely efficient products distribution and price control across Nigeria and that its subsidiary currently holds about 14 per cent market share of the nation’s products distribution network.

Speaking on the move on Wednesday in Abuja during unveiling ceremony of brand new logos for four of its downstream subsidiaries, Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC), NNPC Retail Limited and NNPC Shipping, Baru hinted that NNPC was taking a huge step towards enhancing its reputation, improved profitability, sustainable growth and most importantly, capture a larger share of the market across the entire downstream value-chain.

According to him, re-branding the four companies also prepares them for more competitiveness in the downstream sub-sector, in line with the corporation’s 12 Business Focus Areas (BUFAs).

He informed that the NNPC was committed to ensuring that PPMC as a flagship national products marketing company becomes more profitable and crucial to meeting the nation’s energy demands.

To him NNPC was working assiduously towards bequeathing an NPSC that would brim with revamped infrastructure for efficient storage and distribution of petroleum products across the nation, thereby ensuring supply reliability and energy security.

The corporation’s boss noted that it was the corporation’s key aspiration to strengthen its shipping outfit to support the downstream growth objectives of its subsidiaries, saying the corporation would not relent until NNPC Shipping becomes the partner of choice in the marine transportation and logistics business.

He said: “The Downstream Sector is one critical aspect of our business upon which we are readily assessed by majority of our stakeholders nationwide and in the international market environment, making it imperative for the corporation’s long-term survival and image.”

On the significance of the unveiling of logos ceremony, Dr. Baru described a company’s logo as the visual cornerstone of the its brand identity, stressing that the logo brings out a company in a crowd.

“Today, corporations and other multinationals don’t even need their names written on their logos before people understand what they stand for”, Dr. Baru stated.

He assured that in no time, the logos would spur and facilitate a great deal of improved brand loyalty towards the PPMC, NPSC, NNPC Retail Ltd and NNPC Shipping.

The GMD stated that he expected the rebranded companies to overcome their current challenges, improve on their performance and become more profitable, all collectively shoring up NNPC’s reputation.

Echoing the Dr. Baru, the Chief Operating Officer Ventures and Chairman of “We Can Develop Our Logo In-House” project, Dr. Victor Adeniran, stated that the unveiling of the logos seeks to rebrand the corporation’s four downstream companies, adding that ultimately the logos would be part of the underlying factors that would change their respective fortunes for the better.

“Let me particularly salute the ingenuity and resourcefulness of the participating staff who came up with these fantastic ideas and concepts, some of which we are unveiling today. This goes to show that the NNPC is indeed blessed with extraordinary hands that are ever ready to address its challenges without recourse to external expertise,” Dr. Adeniran stated.

He disclosed that the first tranche of entries covered PPMC and NPSC logos, of which a total of 59 entries scaled the originality test, while the second tranche covering NNPC Retail Ltd and NNPC Shipping also had 41 entries that scaled the originality test.

“To demonstrate the intensity of the competition, some even sent in multiple entries. Out of these entries, selecting the top three brands for each company was not an easy task”, explained

Two NNPC staff emerged overall winners, with Ibrahim Ahmed’s submissions being selected for the PPMC, while Fasoro Abimbola’s beat other submissions to emerge the best for NNPC Retail Limited and NNPC Shipping.

NNPC, NPA focus on petroleum products hitches free importation across ports

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The Nigerian National Petroleum Corporation (NNPC) and Nigerian Ports Authority (NPA) have announced a working relationship of the duo which aimed at removing obstacles that often cause hitches for importers and vessels that bring petroleum products into various ports across the country, from their ways.

Their commitments, made during visit of the Managing Director, NPA, Hadiza Usman, to the Group Managing Director, NNPC,  Dr. Maikanti Baru, at the NNPC Towers in Abuja on Tuesday, were to ensure there were flow of reception of petroleum product across sea portsin the country.

Baru said that in achievement the set goal of the duo,  NNPC had proposed the establishment of a one-stop-shop at ports with all agencies relevant to clearing of petroleum products vessels to reduce delay and demurrage that usually result in under-recovery for the corporation.

Speaking during the meeting, the corporation’s boss disclosed that NNPC would relocate pipelines along the Escravos Channel to pave the way for the dredging aimed at easing the movement of ships to the Warri Port.

“Because of the sheer number of the pipelines and the criticality of some of the petroleum products they carry, we are looking at the timelines that would span 12 months to relocate some of the pipelines. In some of the critical areas, we have agreed that because of supply situations, they would do an initial dredging that would give us at least 10 metres, especially in the Escravos areas,” Dr. Baru stated.

However, he expressed satisfaction over NPA’s effort in securing approval of Federal Executive Council for dredging of  Escravos Channel, stressing that, the feat would go a long way to buoying economic activities in the area.

The NNPC’s head commended the MD of NPA for the support extended to the corporation during the last bout of fuel supply hiccups, saying that such inter-agency collaboration was needed for the growth of the Nigerian economy.

“The test point for the support of the NPA to NNPC was between December 2017 and February this year because it was really a trying period during the fuel scarcity and the NPA supported us patriotically prompting our coming out of the crisis and it actually helped the nation as well. The MD of NPA was very patriotic, she prioritized ensuring the comfort of the people which, in turn, went a long way in enabling us touched the lives of Nigerians in many positive ways,” Dr. Baru enthused.

In her response, Usman, explained that her interface with the NNPC was geared towards strengthening collaboration with the corporation, especially in the areas of relocation of pipelines at various locations across the operational areas of the Port Authority.

“We are here to strengthen synergy and collaboration between NPA and NNPC. We are about embarking on dredging activities at Escravos and Ejigbo and there are a lot of pipelines that are buried within that location and so we want to work with NNPC on relocating and burying those pipelines deeper so that NPA can dredge and have a deeper draft for bigger vessels to come to Warri and Lagos to enhance the supply of petroleum products and other larger vessels coming into the country,” Hajia Usman affirmed.

NNPC, oil firm target 500mw power generation through gas plant project

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The Nigerian National Petroleum Corporation (NNPC) and its Joint Venture Partner, Nigeria Agip Oil, have disclosed their plans actualizing that Okpai Phase 2 Project served to expected that would jack up current power generation with 500 megawatts.

It indicated that if once the project get completed, it effect would increase power generation by between 10 to 12 per cent.

The Group Managing Director,  NNPC, Dr. Maikanti Baru, said that both the corporation and its partner have focus on generating 500mw through the gas facility which it construction was on going.

Speaking during new Vice Chairman and Managing Director of NAOC, Fiorillo Lorenzo, visit to his in his office at the NNPC Towers on Tuesday, Baru stated that completion of the project would additional 500mw of power, provided transmission was up.

He assured that the project would boost the current power supply to the country by another 10 to 12 per cent of the current generation.

For the GMD, once project is completed, it would also  impact significantly on economic activities of the country, stressing that once power was available, there would be a lot of improvement in the standard of living of Nigerians.

However, Lorenzo, had earlier said that his company had a long-standing partnership with Nigeria and NNPC, it that oil firm would do within its capacity to give Nigeria total concentration.

“We want to grow and we want to build and develop new opportunities for the country and support the country in its energy journey. We want to try to change and improve the energy mix of the country and the Okpai Project is a testament of this commitment of our company,’ Lorenzo affirmed.

Besides, the outgoing Vice Chairman, NAOC, Massimo Insulla, said that the meeting with the GMD was fruitful with the discussion focusing on the opportunities in the Joint Venture (JV) and the Production Sharing Contract (PSC) and taking advantage of the oil price condition to bring additional value to the investment in the Nigeria.

‘We have been working for 15 years to implement the Okpai Phase 2 Project which is very important to the NNPC/NAOC JV, and we have been able to find a way to achieve our target with this administration”, Insulla averred.

Shareholders objects Oando, money laundry linked company reconciliation

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The Oando shareholders has forewarned management of the oil company against moves to reconcile with a company, Ansbury Investments Incorporated, linked to one Gabriele Volpi, who was has case of money laundry with Italian Economic and Financial Crimes Police.

However, the shareholders, Pacesetters Shareholders Association, Distinct Shareholders Association and Sage Shareholders, stated that their objection to the reconciliation moves was based on an ongoing investigation of Volpi for alleged money laundering by Italian authorities.

In a joint statement issued on Wednesday in Lagos, they alleged that Volpi, who was a dual citizen of Nigerian and Italian, was currently under investigation in Italy for alleged tax evasion.

The statement claimed that the investigation which was being conducted by the Italian Economic and Financial Crimes Police also focused on Volpi’s longtime associate, and popular Italian banker, Gaimpiero Fiorani.

It said Volpi must be on the right side of the law before any reconciliation with Oando, which the shareholders described as a law-abiding corporate institution.

“All we are saying is that Volpi should do the right thing by sorting every issue he has with the law before seeking to reconcile with Oando.

“We own Oando and make it mandatory on the board to resist any attempt to reconcile Volpi with our company while he has a case of fraud with the Italian authorities,” said the statement.

The shareholders raised concerns that reconciling Ausbury and Oando may raise fundamental ethical questions on Oando and cause the Italian anti-corruption police to beam its searchlight on Oando.

“This alone may affect not just the reputation of Oando but its share value,” they said.

However, it was gathered that one Dahiru Mangal and Ansbury Inc. on, Oct. 20, 2017 filed a petition alleging infractions and mismanagement against the management of Oando.

Subsequently, the Nigerian Stock Exchange (NSE), on the directive of the Securities and Exchange Commission (SEC), placed a suspension on the trading of shares of Oando effective Oct. 20.

It was followed with a forensic audit of the company but the suspension was lifted on April 12.

However, Oando in a statement on Jan. 22 said it had signed a peace accord with Mangal, one of the aggrieved shareholders, that earlier petitioned SEC.

It said as part of the settlement, Mangal had formally written to Oando informing the company of his significant shareholding, and withdrawal of his petition.

NNPC gas supply increases to about 90% between Jan 2017, 2018

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Mission to safe Nigerian economy after 2015 meltdown has start yielding positive result with Nigerian National Petroleum Corporation (NNPC) disclosing 88.89% increased in supply of gas to power sector between January 2017 to January 2018.

However, the development was released in the corporation’s monthly Financial and Operations report for January 2018 which was released Sund in Abuja.

The report indicated that that gas-to-power supply as at January 2018, stood at 731 million metric standard cubic feet (mmscf) per day as against 387mmscf/d in January 2017, representing 88.89% increase.

It said that an average of 731mmscf/d of gas was sent to over 20 domestic thermal power plants in the month of January 2018, generating a thermal power output of 3,076 megawatts (mw) to the national grid, representing 76.7% of the total national power generation”, the report stated.

The corporation reported that an additional 365mmscf/d of gas was supplied to the industrial sector to power over 50 companies in the period under review to boost the nation’s economy.

According to the report, the total gas production for the month was put at 8,169mmscf/d out of which 14% was supplied to the domestic market, 43% for export, while 31% was re-injected and the balance flared.

“The 30th edition of the monthly Financial and Operations report gave the total crude processed by the local refineries [Kaduna Refining and Petrochemical Company (KRPC) and Port Harcourt Refining Company (PHRC)] for the month of January 2018 as 204,877MT, with KRPC accounting for 183,022MT while a total of 21,855MT was processed by KRPC”, it added.

It noted that production by the two refineries during the period translated into a combined yield efficiency of 89.97 per cent as against the 88.99 per cent in December 2017 and that month under review, 1,463.66million litres of PMS and 33.79million litres of DPK were supplied into the country through the Direct Supply Direct Purchase (DSDP) arrangements, adding that the corporation’s supply of PMS into the country during the period was far above the normal daily supply of 35million litres per day to ensure products availability nationwide.

The report informed that NNPC was inching closer to choosing financiers for its refineries with a view to achieving a 90 per cent capacity utilization per stream day before the end of 2019.

The NNPC monthly Financial and Operations report listed crude oil pipeline vandalism among the biggest challenges that plagued the downstream operations of the corporation in the month of January 2018, saying the malaise put the corporation at disadvantaged competitive position.

It noted that period under review, 194 pipeline points were vandalized, with PHC-ABA and ABA-Enugu pipeline segment of the network accounting for 187 points or 86.57 per cent of the affected pipeline.

The report gave the average international Brent crude price for January 2018 as $69.08/barrel as against $64.37/barrel in December 2017, saying that over the last 12 months the crude oil price had risen to about 26.57 per cent.

From the report, continuing efforts by OPEC and non-OPEC producers to stabilize the market, as well as crude inventory pulls in the middle of the healthy economic growth and improving oil demand were reasons for the stability in the price of the black commodity.

NNPC has been publishing its financial and operations report monthly since late 2015 in furtherance of its commitment to the promotion of transparency and accountability.

NNPC’s boss raises need for Nigerian content implementation, stakeholder synergy

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The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has laid emphasis on need for Nigerian universities and oil and gas industry to come together for increased and sustained synergy such that would harness noticeable gains in implementation of Nigerian content agenda in petroleum sector.

Baru, while delivering speech at 23rd, 24th & 25th combined Convocation Lecture of Abubakar Tafawa Balewa University (ABTU) in Bauchi State over during the week, noted that the Ivory Tower and Industry must seek workable and symbiotic partnership for the good of the institution and the growth of the Industry.

He said that stakeholders must provide answers to riddles incuding collaboration between university and industry work and that of failure of  partnerships meant to yield desired result.

He added that there was need for the concerned people in the industry to find out about companies and their academic partners successfully overcome their inherent differences and what forge a higher level of strategic partnership.

The NNPC’s boss reported that studies conducted on European Universities-Business Cooperation undertaken by a French group proven that it requires strong university leadership, and a faculty that understands business, to emplace incentives and structures for academics to bridge that gap, overcome the cultural divide and make collaboration work.

According to him, the report also argued that the European universities could significantly increase their attractiveness to industry by making industry partnerships a clear priority and by attracting and developing a pool of academics who have worked in industry before.

” The interplay of the role of the university, which includes undertaking scientific research, incubation of technology and breeding of high skilled manpower with that of industry’s promotion of innovation, are both necessary to enhancing the Nigerian Content policy in the oil and gas industry.

To him,  executives and academics managing partnerships must agree on the core elements needed to make a partnership work, noting that leadership, vision and determination are the most essential ingredients in this regard.

In hi explanation, university leadership needs to consider making collaboration with industry a top priority and communicate the message regularly to the entire academic community and to captains of industry whenever the opportunities arise.

“They should headhunt and attract retired industry experts into their fold and get them to teach, research, co-mingle and rub minds thereby achieving what the European researchers advocated as a way to getting maximum university-Industry collaborations, ’’ he said.

Baru indicated that Nigerian Content practice had become fully institutionalized as a National Development imperative which redefined and opened up new frontiers for national economic growth and social stability in the Oil & Gas Industry, there is still a yearning gap to close in respect of instituting sustainable development innovation.

“Strategic partnerships need input at the highest level from both the company and the university. A joint steering team with senior academics and company executives with built-in flexibility is required to sustain long-term strategic partnerships that work best”.

The GMD noted that the first step to a healthy partnership is assessing the core academic strengths of the university and the core research opportunities of the company to identify prospects for collaboration based on shared vision among other measures.

‘’I will recommend that ATBU leadership sets up a university-Industry consultative forum with advisory board from selected industry sectors where they are well positioned to develop partnerships and seek endorsement of institutions across the nation to kick start a sustained dialogue as the first step,’’ Dr. Baru said.

However, the NNPC’s boss urged graduating students to embrace entrepreneurship, noting that the future belongs to innovators who do not need going through the labour market to survive.

Commending the NNPC GMD for his incisive thoughts and presentation, Vice Chancellor, ATBU, Prof. Saminu  Ibrahim, said that the institution was ready to pick up the gauntlet and forge a workable university-industry relationship with the NNPC, especially in the areas of ongoing oil exploration in the in-land sedimentary basin.

The VC noted that the proximity of ATBU to the Chad and Gongola basins offered it immense advantage over other institutions in this regard.

10 petroleum ships, 28 others to start arriving Apapa, Tincan ports

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No fewer than thirty eight ships laden, including that of petroleum products, food items and other goods, have confirmed would be arriving Apapa and Tin Can Island Ports in Lagos from May 11 to May 26.

On their arrivals, the Nigerian Ports Authority (NPA), in a publication, `Shipping Position,’ relased newsmen on Friday in Lagos reported  that a total of 10 of the expected 38 ships would sail in with petrol and that remaining 28 ships contained buckwheat, fertiliser, bulk gypsum, bulk sugar, steel, pet coke, base oil, frozen fish, empty containers, general cargo and containers laden with goods.

The document indicated that seven ships had arrived the ports waiting to berth with bulk sugar, frozen fish, bulk fertiliser and petrol.