NNPC boss reiterates corporation’s commitment toward oil industry productivity

By NewsDesk,

The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru. reiterated how the corporation remained committed to identifying with lofty ideals of the games which he said were aimed not just at mere participation, but fostering unity and cordial relationships among entire oil and gas workforce across the nation.

Besides, the NNPC’s boss charged Oil and Gas workers across the country to work assiduously towards proffering viable solutions to the industry’s numerous challenges.

Dr. Baru, addressing workers during closing ceremony of 17th edition of the Nigerian Oil & Gas Industry Games (NOGIG 2018) heldin Lagos, yesterday also called upon oil workers to get involved in sporting activities towards improving their productivity and service delivery.

He indicated that there were lots of advantages in getting involved in sports and that people who participate in sporting exhibit quality lifestyle both at home and in the workplace.

According to him, since people are more active, their brains proffer some of the most efficient and viable solutions to the challenges of the industry today and a number of ailments are attributable to inactivity characterized by lack of exercise and a care-free lifestyle among people.

The GMD also mplored participants to make integrity and sportsmanship their watchword and that entire workers who were involve in the competition were winners in their respective ways.

“This is because at the end of it all, everyone of you here is considered a winner.”

Congratulating the various sportsmen and women who participated at the biannual sporting showpiece, Dr. Baru called upon them to go back to their respective companies and unleash their potentials towards maximum productivity and effective service delivery for the benefit of the entire Oil and Gas Industry.

He commended the Local Organising Committee for its tireless effort towards ensuring “not only a successful tournament but one that everyone in the industry is proud of”

Earlier in her, the Minister of State for Petroleum Resources and the Director, Safety, Healthy & Environment at Department of Petroleum Resources (DPR), Onyebuchi Sibeudu, who was represented at the event,  described sports as a unifying force among people which should always be encouraged.

She expressed satisfaction over the performance of the sportsmen and women, stressing that some of the talents on display today show that the Oil and Gas Industry has what it takes to take Nigeria to sporting stardom.

Several other chief executive officers of the International Oil Companies (IOCs) operating in Nigeria spoke on the attraction for sports to forge lasting friendship and strategic partnerships amongst oil workers in the country.

At the end of the week-long games, Shell Nigeria emerged as overall winners, clinching nine gold, 10 silver and eight bronze medals to cart home the 2018 trophy.

NNPC placed second with eight gold, 10 silver and 13 bronze medals, while the third place went to Chevron, who amassed seven gold, two silver and five bronze medals.

NLNG beat ExxonMobil to fourth place after winning five gold, five silver and five bronze medals with ExxonMobil, collecting two gold, five silver and six bronze medals. NAOC took sixth position with two gold, two silver and nine bronze.

While Seplat and OVH Energy failed to appear on the medals table, Total, NCDMB, DPR, Eroton and PTI placed 7th, 8th, 9th, 10 and 11th respectively.

The bi-annual tourney, which is the 17th in the series, featured 10 events namely: football, basketball, swimming, 8-ball pool, chess, scrabble, athletics, squash, lawn tennis and table tennis.

Petroleum ministry agencies to undergo PTDF’s data training

By NewsDesk,

The Petroleum Technology Development Fund (PTDF) has disclosed that it would be hosting a two day Organisation of Petroleum Exporting Countries (OPEC) training aimed at enhance data gathering and critical for the sector development.

As informed, the Training which would commence on Monday Feb. 26th is for the purpose of generating data on the country’s crude oil production profile.

Through a statement signed by the body’s Head, Press and Public Relations, Kalu Otisi, Head,on Friday in Abuja, it stated that the training was in line with government effort to collaborate with all stakeholders in the industry.

The participating agencies include NNPC, PPPRA, CBN, DPR, National Bureau of Statistics and Energy Commission of Nigeria.

Others were Nigeria Electricity Regulatory Commission, Debt Management Office, National Population Commission, and the Ngeria Liquefied Natural Gas

“Top Officials from the OPEC Secretariat Vienna, Austria will be arriving Abuja, the Federal Capital this weekend, to facilitate the completion of OPEC Annual Questionnaire by Nigeria for the purpose of generating data on the country’s crude oil production profile.

“The Workshop will acquaint participants on the functionality of the new template for annual questionnaire introduced by OPEC Secretariat for member countries in relation to their crude oil production, proven reserves, export and refining capacity profiles,’’ it said .

According to the statement, OPEC seeks to ensure greater data transparency and increased sharing of information about the oil and gas industry amongst the 13 member countries, and other stakeholders.

It noted that Nigeria was a principal member of OPEC, being among the first 10 highest producers of crude oil globally.

It said that PTDF hosting the workshop was in furtherance to its strategic objective of creating more linkages and engaging in effective collaborations with key local and international oil and gas Industry stakeholders in the implementation of its capacity building mandate.

FG signifies preparedness, support for modular refineries construction

By NewsDesk,

The Federal Government has made assurance that it would throw adequate support behind investment in  construction of modular refineries to ensure success of the initiative, just as it also guarantee crude oil supply to modular refineries in the Niger Delta.

The Senior Technical Adviser to the Minister of State for Petroleum Resources, Rabiu Suleiman, stated that in investing in modular refineries, the Federal Government and its agencies could acquire stakes in the projects.

At the ongoing Nigeria International Petroleum Summit (NIPS) in Abuja on Wednesday, Suleiman indicated that the governmen was already in talks with a number of its agencies and likely financiers including Central Bank of Nigeria (CBN), International Finance Corporation (IFC) and Nigerian Sovereign Investment Authority (NSIA) among others, to provide contributory finance to investors in modular refineries in the Niger Delta region.

Healso noted that the Niger Delta Development Commission (NDDC), and some state governments had equally indicated their willingness to invest in the refineries and take up equity positions in them.

To show government’s commitment to the modular refineries’ initiative, he noted that the government would also be granting custom duties and tax waivers to the investors to ensure the refineries projects take off and remain profitable.

According to him, these were parts of government’s plans to incentivise modular refining and create jobs in the Niger Delta.

He said, “Nobody wants to invest heavy amount of money in places where you are not very sure of doing the business without being interfered in one way or the other.

“ Modular refining is a small ticket business and it has very long impacts.

“We have a lot of programme that will support modular refining initiative, and a lot of incentives have been put together to support this initiatives, right from customs duty waivers.

“Anybody who wants to invest in modular refining in the Niger Delta is going to benefit from such custom duty waivers and tax reliefs that is being discussed at very senior level and we have reached a very serious level and that is going to happen.” he said

On financing, he said government had engaged, the Central Bank of Nigeria, CBN; Bank of Industry, we have engaged Sovereign Wealth Fund and the Infrastructure Bank.

“ We have engaged a lot of them including the IFC and the rest.

“We have all worked with them and they all promised to make contributory finance into that. Only two weeks ago, we engaged with NDDC, the Managing Director made a commitment that they are going to see how they can put in some money even if it means to pick up equity either in one or two or three of the refineries.

“State governments have said they want to be part. So, we are encouraging a lot of financing. In the next two weeks, we intend to call for an investors’ engagement forum that will address some of the funding arrangements that we intend to bring on board.” he said

Suleiman further stated that oil companies would be compelled to sell crude oil to modular refineries operators instead of shipping their crude outside the country.

NLNG pushes for business model replication

By NewsDesk,

The Nigeria Liquefied Natural Gas Limited (NLNG) Deputy Managing Director, Sadeeq Mai-Bornu, has explained that the business model needs to be replicated in order to generate opportunities for power and gas sectors in the country.

At an executive roundtable discussion titled “Africa as an Emerging Gas Producer: Prospects and Opportunities at the first Nigeria International Petroleum Summit (NIPS) in Abuja on Wednesday, Mai-Bornu indicated Nigeria was a gas country with oil and that NLNG was a success story partly due to fact the section was mid-stream and most of the risks have been taken by the upstream companies.

He noted that when NLNG was set up, it had guarantees and incentives that safeguarded investments and returns and that there was also sanctity of contracts.

“But the thing is that there is a market out there. We sign a 20-year contract for the supply of molecules and we can actually go to the bank and get the funding we need.

“ That is what has helped NLNG. This model needs to be developed in the upstream and downstream.

“Let’s bring this closer home,’’ he said

He added that the LPG market was a deregulated space and that NLNG supplied about 50 per cent of the LPG in the country.

“ We see opportunities to do more. People think LPG is just for cooking. The more important use of LPG is as an industrial fuel. LPG has already been used for power in the developed world and even in Nigeria,’’ he added

Mai-Bornu noted that there were vehicles that run on LPGadding that NLNG success story could be replicated in other sectors.

According to him, Part of that success will also be the pricing and the tariff talked about.

He further said that the NLNG currently invested in expansion with a Train 7 project.

This, he said would involve a huge amount of money but because the markets are there, we are in the position to invest up to 5 to 10 billion dollars both in the upstream for the gas supply and in the infrastructure to construct the Train.

“ There is opportunity in that area.

“Globally, markets are being created innovatively. For instance, I am aware that there is a state in Nigeria that is interested in Floating Storage Regasification Unit.

The thing about that is the pricing because production of power through that is a bit more expensive but if you deregulate that sector where there is a willing seller and willing buyer space, that would be something that could make an impact in the future.

We also see opportunities in trucking LNG, bringing industries to life because you can now have some captive power there.

“We also see LNG being used as a marine fuel and that is because there is an increasing clamour for cleaner energy sources. If the NLNG model is picked up, with the full participation of the private sector and the government guaranteeing some risks, this can move the needle a bit,” he said.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N. V. S.àr. l (10.4%).

NNPC imports $5.8Bn fuel for scarcity arrest

By NewsDesk,

The Nigerian National Petroleum Corporation (NNPC) has disclosed that it had spent 5.8 billion dollars on importation Premium Motor Spirit (PMS) so as to enable it combat fuel crisis that has continue lingering since late 2017.

It indicated that the PMS imported was equivalent of 9.8 million metric tons and that it would continue put in strategy to ensure that it removed the persisting suffering.

The Group Managing Director, NNPC, Dr. Maikant iBaru, disclosed that the corporation carried out the massive importation in fulfilment of its statutory role of supplier of last resort and that the measure was to ensure that Nigerians do not suffer as a result of product unavailability.

Speaking during a public hearing by the Senate Committee on Public Accounts at the National Assembly in Abuja on Tuesday, Baru, who was Represented by the Chief Operating Officer, Finance and Accounts, . Abdulrazaq Isiaka,noted the corporation’s provision of 9.8 million metric tons of petrol so far had helped a great deal in ameliorating the suffering of Nigerians.

He said the corporation’s intervention became necessary following the inability of the major and independent marketers to import the product.

He pointed out that cross-border smuggling due to price disparity between Nigeria and neighbouring countries as well as logistic issues in trucking products to different locations across the country remained serious challenges in the quest for fuel queue-free situation in the country.

The Chairman Senate Committee on Public Accounts, Sen. Matthew Uroghide, noted that the public hearing was a part of the Committee’s duty to find lasting solutions to the problem of fuel scarcity in order to make life easy for all Nigerians.

Kachikwu calms Nigerians on declining oil price

By NewsDesk,

The Minister of State for Petroleum Resources, Dr Ibe kachikwu, has disclosed that Federal Government has prepared itself ahead possible price decline which was current the situation, saying it was never at sleep knowing fully well of past event.

He drew cautioned that it was too early to lament over the declining oil price noting that the government was aware of an impending fluctuation and that was not ruffled by the declining price of crude oil in the international market.

Kachikwu, who put minds of Nigerians at rest that the country was on top of the game, while fielding questions from newsmen on Thursday in Abuja, hintedthat government effort was to shift its emphasis to cutting down drastically on the cost of crude oil production to increasing the country’s profit margins from the commodity.

He indicated that there was no need for the country to be panic since the price of oil hit $70 per barrel in December and that it could soon spring back.

“I do not think we need to be panicky about it. We hit an all-time $70 per barrel in December, which surprised a lot of us.

“ And that was because of the huge amount of work done in OPEC. We are not ruffled by it. I know it is coming down to the higher $60s now.

“Shale is going to be active. We know that whenever we are in excess of $65 per barrel, shale gets very active because the fundamentals become much more supportive to more investments and more production lines.” he said

kachikwu noted that it was high time OPEC and its member countries focused on themselves and what each of them needed to do and ignore whatever is happening to shale oil.

He added that every OPEC producer must work hard to become a least-cost oil producer, stating that if shale oil can produce and sell at $65 per barrel, there was absolutely no reason why Nigeria and other OPEC member country should be struggling.

“The fundamentals of our earnings, how efficient we are; our cost of production is work that we need to do internally. That does not depend on OPEC.

“If you look at what is happening at Saudi Arabia and UAE, there is a fundamental rejigging of their production models to ensure that they are getting the very best in terms of their prices and their cost is going down.

“One nice thing about low prices is that it forces everybody to abandon high cost production.

“Even for the projects we are doing today, we are looking at it again to see if it makes sense; whether if the oil in the ground is not going to yield money to the Federal Government.

“We are doing a lot of work on the cost aspect.” He added

The Minister also insisted that more fundamentally, each member countries would need to work internally to ensure they are getting the best margins out of what they are doing.

NNPC cautions motorists, others against fuel tanker drivers threat to stop loading

By Abdulwaheed Usamah, 

The Nigerian National Petroleum Corporation (NNPC) Group Managing Director , Dr. Maikanti Baru, has established that by partnering with private sector to build more pipelines parallel to the corporation’s existing ones would enhance profitability of its downstream subsidiary company .

Urging newly inaugurated board of one of its downstream subsidiary companies, the Nigerian Pipeline Storage Company (NPSC), the Baru stated that NNPC was much disposed to supporting the company efforts in such regard and that the subsidiary would have to double its pipeline network in the next 10 years,

Through a statement released on Tuesday after the new constituted board inauguration, the NNPC stressing that such a target was absolutely necessary and partnership would enhance NPSC’s profitability.


The GMD described pipelines as arteries of the nation’s Oil and Gas Industry, adding that part of the reform process embarked upon by the corporation under his watch was to birth an NPSC that has a clear focus which sees pipeline storage and distribution as real business.

He said: “Your work also is to look at refurbishing these pipelines and storage along a Public Private Partnership (PPP) arrangement by getting willing private companies to invest in these pipelines.

“I have a passion for this company and I believe this firm will be a leader in that segment of our operations. That is why we focused our energy on refurbishing, repairing and re-streaming of our storage facilities and pipelines over the last few months,” Dr. Baru noted.

He charged them to also integrate, through their pipelines resources, the various butanisation depots which are used as reception points for Liquefied Petroleum Gas (LPG).

“We have a lot of LPG that is being exported. This could be utilized domestically in line with our vision of providing alternative energy sources for domestic and industrial use nationwide,” he stressed.

Baru tasked the NPSC management to engage various host state governments towards restoration of the Products Right of Way (PRoW) so as to ensure safety of citizens and products.

He added that most of the state governments were ever-willing to support the corporation in preventing infringements on its PRoW, just as he indicated NNPC readiness to engage security agencies against any act of economic sabotage towards the pipelines.

On his part, the Chairman, NPSC Board and Chief Operating Officer, Corporate Services, NNPC,  Isa Inuwa, pledged readiness of the Board to support the NPSC Management towards achieving its set targets.

“It is our vision to transit NPSC to a market-phasing, competitive and profit-making organisation. We are committed as a Board to deliver on this mandate,” Inuwa stated.

The Managing Director, NPSC company, Engr. Luke Anele, who commended NNPC suggestion, said that the task before his team was huge and that it would leave up to expectations.



Kaduna refinery shuts down operation over non supply of crude oil

By Abdulwaheed Usamah,

Operation at Kaduna Refining and Petrochemical Company (KRPC) has been grounded due to non availability of crude oil has forced the closure, the facility which was confirmed functioning at 60 per cent before its stop production barely two week ago.

It was gathered that the plant was under operation until non availability of crude oil cause it stop it from producing finishing products

The Executive Director, Services, KRPC, Dr. Abdullahi Idris, said that the refinery, whose fuel plant was commissioned in 1980, was functioning at 60 per cent capacity but shut down production recently due to unavailability of crude oil.

Responding to newsmen question on the development in Kaduna on Sunday,  Idris, hinted the lubes plant, which was commissioned in 1983,  the Petrochemical, in 1988, was producing four million petrol per day while it also gives 2.5 million liters of AGO and 1.6 million liters of kerosene.

According to him, before it was shutdown, the KRPC produced four million litres of petrol (PMS) per day and also produces 2.5 million litres of (AGO) Diesel and 1.6 million litres of Kerosene per day.

The plan boss disclosed that refinery had undergone a turn around maintenance in 2013 and currently had a workforce of 1,004 staff.

However, a source at the Warri Refining and petrochemical company (WRPC) told newsment that it was incorporated in 1988 following the merger of the Warri Refinery and Ekpan Petrochemical Plants.

According to the source, WRPC, one of the subsidiaries of the NNPC, produces at installed capacity of 125,000 Barrel Per Stream Day (BPSD).

“The WRPC was incorporated in 1988 following the merger of the Warri Refinery and Ekpan Petrochemical Plants which was producing a nameplate capacity of 100,000 BPSD

“Following the merger, WRPC is now designed to produce installed capacity of 125,000 BPSD,’’ he said.

The source, however, declined comment as to whether the company was currently refining or not.

NNPC’s subsidiary on 500,000 barrels per day crude oil production projection

By Abdulwaheed Usamah 

Before 2022, the Nigerian National Petroleum Corporation (NNPC) upstream subsidiary Nigerian Petroleum Development Company (NPDC) has been put on target of increasing its daily crude oil production to 500,000 barrels per day before the stated time.

The company was also charged to grow the company’s assets aside that it should ensure that the 500,000 barrels per day crude oil production target was met by 2022.

The Group Managing Director, NNPC, Dr. Maikanti Baru, disclosed that the company was currently supplying 50 per cent of the West African Gas Pipeline system gas and that it was putting in efforts to have more gas assets.

Addressing the members during inauguration of  board of directors of company on Thursday in Abuja, Baru commended the company for leaving up to expectations and directed that NPDC’s Memorandum of Understanding (MOUs) with host communities should be tied to availability of lines.

In his remark, the Managing Director, NPDC, Yusuf Matashi, said from the meteoric growth, the company had witnessed since 2016, the GMD’s target of 500,000 barrels per day was realisable by 2022.

He said the board came at an appropriate time as it would address issues of processes and procedures necessary to drive a major oil company like the NPDC, while assuring it of the commitment of the company to the growth target.

The NPDC currently produces about 200,000 barrels per day and going by its work programme, it will increase to 300,000 barrels per day this year.


NNPC hints on regions’ refineries financier move, development

By Abdulwaheed Usamah, 

As part of move to bring lasting solution on lingering fuel issue in Nigeria, the Nigerian National Petroleum Corporation (NNPC) has stated that the corporation was closer to arriving at choice of financiers for the Port Harcourt Refining Company Limited (PHRC), Warri Refining and Petrochemical Company Limited (WRPC) and the Kaduna Refining and Petrochemical Company Limited.

It said that the move, if completely would boost petroleum products supply and distribution in the country, the development of which Nigerians cannot wait to welcome.

The Group Managing Director, NNPC, Dr. Maikanti Baru, disclosed that agreements on  potential financiers for the refineries were being fine-tuned, and that endorsement of the corporation board would be take place in January.

Speaking while briefing members of staff of the corporation on the fuel supply situation in the country during a town hall meeting on Tuesday in Abuja, Baru indicated that the NNPC was already on selection of financier and that other areas including agreements and funding would be dealt with.

“We are pushing towards the final selection of our financiers and we expect that when that is done, we’ll get the agreements and present them to our board, meeting this month to secure their endorsement and once we have the funding, we would start the rehabilitation of the refineries towards a 90 per cent capacity utilization per stream day before the end of 2019,” Dr. Baru affirmed.

He described the procedure for selecting financiers as painstaking and a step necessary to enable a desired closure on the subject, syaing the corporation was also encouraging new refining capacities to come on board, and that two consortia that had indicated interest to co-locate refineries in Warri and Port Harcourt.

The corporation’s boss disclosed that NNPC would provide utility services the companies might require, such as power, processed steam, water and land, stressing that the corporation has agreed in broad terms on areas of collaboration to fast track the development.

“Am happy to inform you that progress has been made, up to the level of an acceptable detailed engineering design and we are in the process of mobilizing some of the refineries already identified for installation in Nigeria,” the GMD informed.

Besides, the GMD revealed that Kaduna State Government was also championing a proposal to co-locate another refinery close to KRPC with the intent of sourcing Nigerien crude for its operations.

Baru maintained that other greenfield refineries were to be brought on board soon, in Kano and Kaduna, and that once the project come in place, the state would source for crude from Niger Republic.

He added that designs for the proposed refineries in Kano and Kaduna were ready and that construction would commence in 2018.

According to him, ministry of petroleum resources and the corporation were collaborating to encourage the establishment of modular refineries in the Niger Delta area to encourage job creation.

“So far, about 35 interests for modular refineries have been declared and the Department of Petroleum Resources (DPR) has issued licenses to about 13 and I have been invited to the ground breaking ceremony of the first one in Bayelsa next month,” Dr. Baru revealed.

The corporation head assured that both Federal Government and the NNPC would continue to encourage private sector initiatives that would bring in competition in the petroleum products supply and distribution network so as to guarantee energy sufficiency for the country.

He informed that the corporation was also exploring other sources of energy that could substitute Premium Motor Spirit (PMS), otherwise known as petrol, in cars and motorcycles, saying the use of Compressed Natural Gas (CNG) to power vehicles in Benin City is the right step in the right direction.

From him,  over 3,000 vehicles were now CNG-powered in the ancient city, making them more secured, more efficient, given that gas was a cleaner source of energy.

“Encouraging the development of infrastructure such as roads, railways and waterways are other means by which NNPC plans to lessen the pressure on PMS consumption, the GMD said.

However, Baru commended federal government for approving the Abuja-Kaduna-Kano pipeline project, stating that the gesture would go a long way in supporting the NNPC’s transmutation into an integrated energy company.

He said the project when completed would create the needed back bone for the Abuja’s 1,350 megawatts power plant, Kaduna’s 900 megawatts power plant and Kano’s 1,350 megawatts power plant.

The GMD said the operations of the corporation were being challenged by incessant vandalism of crude and products pipelines and kidnapping of staff, adding that the corporation would continue to engage members of the host communities to emplace growth and development of the local communities.