The International Society of Petroleum Engineers said on Wednesday that investment in crude oil production over the past five years has witnessed a drop of around 50 percent.
Kamel Ben-Naceur, chairman, said the drop was due to the global outcry over reducing carbon dioxide emissions and the negative impact of the COVID-19 pandemic on the oil and gas industry.
The Nigerian News Agency reports that Ben-Naceur said this while delivering his keynote speech at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, USA.
Ben-Naceur cited 2015 as the start of a slump in investment in the industry's upstream sector, but added that the situation had changed before the global pandemic in 2020.
According to him, upstream investment experienced sharp falls by 26 percent between 2015 and 2016.
“However, investment rose again until 2019 before experiencing a 30 percent drop in 2020.
“If you look at the relative decline in investment in the upstream sector in general, in less than five years, we have reduced upstream investment by 50 percent, which is almost unheard of.
“You have to go back to the mid-1980s to see that kind of trend.
"This came as Nigerian operators are calling for more investment in the sector to drive the necessary development in the sector and impact the country's economy," he said.
The President noted that the COVID-19 pandemic had a unique impact on the energy industry and would pave the way for the energy transition on its way to net-zero emissions.
“The COVID-19 pandemic caused the largest one-year drop in oil demand at 10.4%, while natural gas demand fell by about 2%.
“In addition, the demand for coal and nuclear fell by about four percent. Hydroelectric and renewable energy demand increased, albeit by smaller margins,” Ben-Naceur noted.
He expressed optimism that demand would continue to rise in 2023 as demand for crude oil had returned to pre-pandemic levels, noting that natural gas had done better.
Ben-Naceur said: “The 'most dramatic' increase is in the price of natural gas from April 2020 to the end of 2021, natural gas went from about three or four dollars per MMbtu to about $40 per MMbtu, a dozen increased folds.
"We've never seen that kind of increase in gasoline prices in a one-year period."
He stressed that there were signs that the situation had changed, saying "there has been a significant increase in upstream investment in 2022."
On the reality of the energy transition, Ben-Nacuer said that the energy transition was more like a reality, with sales of electric cars rising from one million to two million before 2018 to nearly seven million, or nine percent of new cars sold in 2021.
“Renewable energy capacity continues to be added, and the industry is always learning about the incentives of decarbonization.
“There are a few different energy transition scenarios predicted by the International Energy Agency, and each one will bring different costs and outcomes.
“For the first time, today's pledges, if implemented in time and fully, will keep the increase in global average temperatures in 2100 below two degrees Celsius.
“Decarbonization will require many factors in combination to be successful, including avoided demand, CO2 capture and storage, hydrogen, bioenergy, technological performance, electrification, other renewables, and other fuel shifts.
“But no matter the mix or the policies, reaching net-zero emissions still requires more investment in oil and gas.
“We still need to invest more than we invest today. Investment in the oil and gas industry will be crucial.
“We are not investing enough in clean energy and that is the big problem facing the world.
“Part of that investment will be in carbon capture and storage, which is projected to expand significantly by 2030.
“The world continues with its need to access energy in a safe, affordable and clean way. Reducing greenhouse gas emissions and burning are critical.
"Accelerating the energy transition will still require a large share of oil and gas," he added.
Meanwhile, stakeholders in the Nigerian oil and gas industry have scrambled to take advantage of the federal government's declaration of the year 2021 to 2030 as a gas decade.
Some Nigerian operators participating in the OTC, such as Lee Engineering and Construction Company Ltd., OILSERV Ltd and Seplat Energy Plc, emphasized the need for local companies to invest in the natural gas sector of the industry.
They also called for more investment, insisting that huge opportunities were available to investors in the sector.
The president of Lee Engineering and Construction Company Ltd., Dr. Leemon Ikpea, emphasized the importance of improving the development of the country's infrastructure.
He stated that his company remained committed to creating much-needed infrastructure, which is why the company had committed more than $100 million to build a manufacturing yard in Warri, Delta, its operating base.
“The project, scheduled for commissioning this year, will ensure the manufacture of any equipment needed in the oil and gas industry locally and across the African spectrum.
"The company will focus on manufacturing and fabricating any equipment needed in the oil and gas industry."
On Nigeria's workforce capacity, he noted that “when I was a manager, I didn't just sit in my office. I took time to understand how the company operated.
“I noticed that many Nigerians were doing various jobs like electricians, welders, etc. The foreigners were there mostly as supervisors. There are many skilled Nigerian workers around.
“The idea of moving from contract hunting to manufacturing the equipment and parts needed by the oil and gas industry has many benefits for the sector. First of all, it generates technology transfer, it saves foreign exchange, it creates capacity along with many other multiplier effects,” he explained.
Ikpea identified the commitment and timely delivery of quality work as some of the qualities that distinguish companies that want to stand out in the development of the sector.
For his part, the Chairman of Oilserv Ltd., Mr. Emeka Okwuosa, said his company's involvement in the construction of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project was an indication of Nigeria's commitment to the energy transition. .
According to him, the collection of natural gas, which is abundant in the country, is key to Nigeria's energy and economic development.
“The AKK project will stimulate the development of gas infrastructure and industrialization in Nigeria.
Okwuosa said: "The AKK gas project, when completed, will boost the agricultural and manufacturing sectors, carbon footprint as part of measures to reduce global warming and provide gas for power generation and gas-based industries." .
He said that the project is aimed at transporting (raw) natural gas, which would allow the production of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), among others.
“The project is important for Nigeria because the gas is what will help Nigeria to develop. Development cannot happen without energy and our largest form of energy in terms of availability is gas.”
For Seplat Energy Plc, there are huge opportunities in the gas business that, when seized, would transform Nigeria and Africa, making it a potential hub of the future.
Regarding the growth expectations of the sector, the executive director of the company, Mr. Roger Brown, reiterated that the development of gas and technology are key to guaranteeing a robust transition.
He said: “As the sector grows and evolves and struggles through transition, we need to be super efficient in what we do, particularly upstream, and technology is very critical to that.
“We believe that IT and cyber support are more efficient technologies that are needed in infrastructure development. We are bringing more technologies to our project such as the use of solar energy, gas. We believe in the gas business since we will develop LPG.
“We will complete the Assa North-Ohaji South (ANOH) gas plant next year and it is a game changer for us. We're also upgrading the Sapele gas plant right now and putting in LPG and expanding that second pillar of our business which is processing gas into electricity.
“We are really looking at what renewable technologies will be adopted in our business that will be the best for Nigeria in the future. Our view from our business model is that solar energy will be the winning game changer.
"For us at Seplat, the investment never stops, as we will be making more investments in the coming months of the year as we expand the scope of the transition."
The Oilserv Ltd., Contractor handling the ongoing Ajaokuta-Kaduna-Kano (AKK) gas pipeline project says the project will stimulate gas infrastructural development and industrialisation in Nigeria.
Mr Emeka Okwuosa, Chairman, Oilserv Ltd., said this on Tuesday, in an interview with the News Agency of Nigeria in Abuja.
The project which spans a length of 614km is being developed by the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) to transport natural gas from Ajaokuta, Kogi through other states and urban centres in Nigeria.
The project which began in 2020 and to be completed by the first quarter of 2023 is a segment of the Trans-Nigeria Gas Pipeline (TNGP) and the Trans Saharan gas pipeline project.
AKK gas project, when completed would boost the agricultural and manufacturing sectors, carbon footprint as part of measures to cut down on global warming and provide gas for generation of power and gas-based industries.
He said that the project aimed at transporting natural gas (raw form) which would enable production of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) among others.
“The project is important to Nigeria because gas is what will help Nigeria to develop.
“Development cannot happen without energy and our greatest form of energy in terms of availability is gas.
“Gas is nothing without transportation you have to send it to where you need it and that’s what we are doing to boost development in the country,” he said.
According to the contractor, the ongoing AKK gas pipeline is a good target to European markets in view of exploring opportunities of gas exportation.
“You can see what is happening in Europe because of Russian gas, everybody is scampering, but we have it,” he added.
Europe, the single-largest buyer of Russian energy, is weighing the likelihood of gas-supply disruptions as the war with Ukraine continues.
As a result of activities around the AKK project, the country will see over eight billion standard cubic feet (scf) of gas injected into the domestic pipeline.
NAN recalls that the Group Managing Director of NNPC, Malam Mele Kyari, in the company of the NNPC board members recently inspected the segment “A” site of the project in Abaji Area Council of the Federal Capital Territory (FCT)
Nigerian National Petroleum Company Limited (NNPC Ltd.) kicked off the week's activities with a tour of the Port Harcourt refinery to determine the level of rehabilitation underway at the plant.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, and members of the NNPC Ltd. Board of Directors who were also on the tour expressed their satisfaction with the progress of work on the Rivers State refinery site.
Sylva, who was elated at the level of progress on the project, said he was particularly impressed with the keen sense of time management exhibited by the team.
He said that the Federal Government was interested in the early delivery of the project to achieve energy security in Nigeria.
Speaking on behalf of Board members, NNPC Board Chairman Senator Margery Chuba-Okadigbo noted that the rehabilitation was aimed at increasing refining capacity in the country and reducing costs.
Chuba-Okadigbo said the rehabilitation also indicates the company's intention to exit from importing petroleum products and challenges related to foreign exchange issues, adding that she was impressed with the work done so far.Senator Margery Chuba-Okadigbo
For his part, Group Managing Director/Chief Executive Officer of NNPC Ltd., Malam Mele Kyari, explained that the project was uniquely designed with efficiency and sustainable maintenance culture in mind to enable the refinery to generate funds.
He assured that the entire process was well thought out and will allow the company to introduce a new business model for the operation of the refinery.
Earlier in his technical report to the visiting team, PHRC's Director General, Mr. Ahmed Dikko, stated that the company was determined to fulfill the mandate.
He acknowledged the support of the NNPC leadership, its Board, the National Assembly and other stakeholders in achieving the current milestones.
Dikko emphasized that the progress made thus far could not have been possible without their cooperation and timely approvals.
The project manager, speaking on behalf of the contractor in charge of the rehabilitation, Tecnimont SpA, Mr. Davide Broggini, said that they would deliver the project in record time.
The visit included a tour of areas one, two and three of the refinery that housed some important plants, including the vacuum and crude distillation units.
Other plants visited were the naphtha hydrotreating unit, the kero hydrotreating and catalytic reforming units, the gas and fluid catalytic cracking unit, and the merox and gas treatment units.
The PHRC, which comprises old and new refineries with a combined refining capacity of 210,000 bpsd, is expected to begin partial operation beginning in the first quarter of 2023,000 barrels per day of current on the market.
The refinery would become fully operational once the rehabilitation project, scheduled for the last quarter of 2024, is completed.
Meanwhile, the House of Representatives said it was committed to ensuring that the new NNPC Ltd. got off the ground on a solid footing without any impediments from the old NNPC.
This was said of the Ad-hoc Committee of Representatives established to investigate the inventory, assets, liabilities and joint ventures of the former NNPC during a monitoring visit.
The visit went to the NNPC Border Exploration Services Division and the Port Harcourt Refining Company (PHRC) recently.
Speaking during the visit, the Committee's chairman, Rep. Uju Chima, said the exercise was not an investigation but a measure intended to help the new NNPC Ltd. get off the ground on a solid footing.
He explained that the duty of the Committee was to know the assets of the former NNPC and ensure that those that should be transferred to the new entity, as provided for in the Petroleum Industry Law (PIA), were duly documented.
“We are only here to help you determine those assets to ensure that valuable assets that are supposed to be transferred or reverted to NNPC Ltd. are not left behind while also helping you determine the value of those assets.” .
He said that the exercise focused not only on assets but also on liabilities.
The chairman of the committee demanded information on the total value of the PHRC houses, the assets, the monetary value of the liabilities and the total amount spent so far on the rehabilitation of the plants.
Chima urged the NNPC to keep up the pace to ensure that the goal of completing the rehabilitation is not lost.
In his response, PHRC Director General Ahmed Dikko praised the National Assembly, especially the House of Representatives, for their support of PHRC.
He said the committee's visit showed support, not only for PHRC, but also for NNPC Ltd.
"We hope that this support will translate into the overall success of the rehabilitation for the benefit of Nigerians in light of the current energy crisis."Port Harcourt Refinery
Dikko assured the committee that the work would be delivered on time and to specification, emphasizing that efforts were already at an advanced stage to introduce an Operations and Maintenance model to ensure the upkeep of the refinery.
Earlier, on a similar visit to the NNPC Border Exploration Services Division in Abuja, the Committee sought to learn about the activities of the Division and its assets and liabilities.
The Chairman of the Committee said that they were interested in the sustainability mechanisms that the Border Exploration Services Division had put in place for the transition.
Group General Manager, Border Exploration Services Division, Mr. Abdullahi Bomai, explained to legislators the operations of the division and explained that the division was in the business of implementing high standard technology for seismic data collection.
It said seismic data collected in the course of the division's operations was part of NNPC's assets.
On the division's liabilities, Bomai said technology needed to be upgraded to allow it to expand its capacity and expressed hope that the provision of 30 percent of the exploration fund in the PIA could help address the challenge.
The Ad-hoc committee at the end of the visit expressed confidence in NNPC's ability to implement a successful transition to a limited liability company.
Also in the week, the NNPC said it would deliver the Ajaokuta-Kaduna-Kano (AKK) Pipeline Project on time with first gas to be delivered in the first quarter of 2023.
Speaking at the project site in Abaji, Abuja, during a tour of the project, NNPC Group Managing Director/Executive Director Malam Mele Kyari said efforts were being made to ensure the project was completed on time.
He said that a critical result of the AKK project was the injection of more than eight billion standard cubic feet (scf) of gas injected into the domestic pipeline to revive dying industries.
Kyari said it would also open up economic opportunities for the country.
He described the AKK pipeline as a flagship project and hinted that it was time for Nigeria to tap into its gas reserves in Africa to develop its economy.
"There is no country that has access to this volume of gas that it has not developed."
In her remarks, NNPC board chair Senator Margery Chuba-Okadigbo expressed optimism that the project could deliver its first quarter of 2023 gas based on the scale of work done so far.
He noted that the country could take advantage of the situation between Russia and Ukraine to provide a solution to the global gas supply challenge.NNPC GMD, Mele Kyari (in denim shirt), Chairman of the Board Senator Margery Okadigbo (center), other NNPC and Oilserv Ltd. officials, during an inspection visit to the AKK pipeline project in Abaji
On the feasibility of achieving the 2023 target, the president of Oilserv, the project's Engineering, Procurement and Construction (EPC) contractor, Mr. Emeka Okwuosa, confirmed his company's readiness to deliver the project on time.
He said that NNPC's interventions in various periods of challenge helped bring the work to the current appreciable level.
It also ensured that the project managers and teams were more than competent to deliver the project in record time.
Also speaking at the KP 171 welding site during the tour, Oilserv General Manager, Mr. Chigozie Obi, and AKK Project General Manager, NNPC, Mr. Barwa Muhammed, explained that in addition to the deployment of modern technologies that guarantee durability, the project had great economic effects for the nation.
Construction of the 614 km AKK pipeline project started simultaneously in the Buhari states of Kogi and Kaduna in 2020 to encourage gas utilization and serve as a springboard for the nation's industrialization.
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Source Credit: NAN
Oilserv Ltd., the contractor handling the ongoing Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, says that once completed, it will stimulate exploration and extraction activities in Nigeria.
The project, which covers a length of 614 km, is being developed by the National Petroleum Company Ltd. (NNPC) to transport natural gas from Ajaokuta, Kogi through the states and urban centers of Nigeria.
Mr. Emeka Okwuosa, Chairman of Oilserv Ltd., said this on Thursday, while inspecting the project site in Abaji, FCT Kyari, Group CEO, NNPC and other dignitaries.
The Nigerian News Agency reports that Kyari was on inspection with her board chair Senator Margery Okadigbo and other board members to assess the level of work done on the project which began in 2020.
Other officials at the inspection included the Group Chief Executive Officer (GED), Fice and Accounts, Mr. Umar Ajiya, GED, Upstream, Mr. Adokiye Tombomieye, and officials from Oilserv Ltd., among others.
The project is expected to be completed in the first quarter of 2023.
Okwuosa described gas as a key factor in the energy value chain in the country, adding that it would bring Nigeria back to industrial growth.
According to him, the AKK gas pipeline system is composed of gas pipelines, Block Valve, Terminal Gas Station (TGS), Metering Station (MS), Block Valve Station (BVS), Intermediate Pigging Station (IPS), Kilometer Post (KP) and other stations.
He said construction of the main line is a third complete, engineering is more than 80 percent complete, while procurement is more than 50 percent done.
“We feel good as a company and we know that what we are doing is historic and very important for the country.
“So, it's not just about the pipeline but about the facilities. So, we feel good that we are moving and we are confident that we will stay on schedule,” he said.Oilserv President Okwuosa (in brown shirt) assesses the AKK project with NNPC GMD Kyari (in blue denim shirt) and other officials
He said pipeline activities involved a lot of planning, core and key engineering design, but the most important thing was putting on the boots on the ground.
“Putting the boots in the ground means taking these pipes through every meter of the 614km, of which we are building 303km,” he said.
He said the challenges he was facing ranged specifically from security, difficult terrain and weather.
“And a project of this magnitude requires a lot of money, but NNPC is up to the task. They have been able to mitigate some of the issues that originally came up.
“So the challenges will be there. But the hardest thing remains the security challenge,” she said.
The AKK pipeline system, when completed, will provide gas for better power generation, develop new industries, increase revenue generation, reduce gas flaring, promote local content, and deepen the local gas market.
Source Credit: NAN
Nigerian National Petroleum Company Limited (NNPC Ltd.) says that the ongoing Ajaokuta-Kaduna-Kano (AKK) pipeline project will be completed in the quarter of 2023.
Malam Mele Kyari, Group Managing Director, NNPC said this on Thursday while inspecting the AKK gas project site in Abaji, Abuja, along with some NNPC Board members, senior officials and other dignitaries.
Some of them are, the president of the board of NNPC, Senator Margery Okadigbo; Group Executive Director (GED), Fice and Accounts, Mr. Umar Ajiya; GED, Upstream, Mr. Adokiye Tombomieye.
Officials from Oilserv Ltd., among others, were also present.
Spanning a length of 614 kilometres, the project is a natural gas pipeline being developed to transport gas from Ajaokuta through various states and urban centers in Nigeria.
The project, whose construction began in 2020 and is estimated at US$2.8 billion, is a segment of the Trans-Nigeria Gas Pipeline (TNGP) project and the Trans Saharan gas pipeline
Kyari, during the inspection, said that the AKK pipeline was a flagship project of President Muhammadu Buhari, a big project to deliver to the country before the end of his term.
He said that more importantly, it would bring great development, progress, creative jobs and stabilized energy, as well as the renewal of industries across the country.
Kari said this was because it would decongest the gas supply network across the country.
According to him, it will serve as a gas supply link to other African countries and Europe once it is completed.
“We are very confident that from 2023 we will put gas in these pipelines. This project will be delivered on time and on time, we are implementing everything necessary to deliver the project.
“We have missed some schedules, but we are catching up, we have put in a number of interventions that are necessary, including the deployment of additional resources needed to deliver the project,” he said.
The NNPC boss, while praising the contractor for his effort, said he should speed up the project because everyone needed gas.
According to the GMD, it is a market opportunity for Nigeria, being the country with the largest gas reserves in Africa.
Also speaking, Okadigbo said she was impressed with the progress made on the project and expressed optimism that it would be completed on time.
Mr. Emeka Okwuosa, President of Oilserv Ltd., the company in charge of the Engineering, Procurement and Construction project, said that with the early intervention of NNPC management, efforts have been redoubled and more capacity has been added to meet the deadline. .
“This is one of the six sites that we are working on, this is one of the automatic welding crews, in relation to the entire scope of the pipeline that we are executing; we have done 120 kilometers of welding and more than 80 percent engineering and procurement,” he said.NNPC GMD, Mele Kyari (in denim shirt), Chairman of the Board Senator Margery Okadigbo (center), other NNPC and Oilserv Ltd. officials, during an inspection visit to the AKK pipeline project in Abaji
Mr. Steve Nnorom, Project Manager, Oilserv Ltd, (segment one AKK pipeline work) reviewed the installation of the pipeline and station, showing progress as of April 11, 2022.
Nnorom explained that he structured the distributed work into three segments, namely Alpha, Bravo and Charlie for construction supervision.
He said he was currently at Bravo, typically welding.
Under the Alpha segment, which comprised surveying, stringing, brush clearing, field joint lining, among others, it said it had cumulatively surveyed 214 kilometers, performed brush clearing and performed a third of continental welding.
In the Bravo segment, he said he had implemented the latest fully automatic and manual welding technology and achieved a third of pipeline and mainland welding, adding that he would cover the entire location within the committed time of his pace.
“We are doing everything we can despite the challenges. The spread we are in now is less challenging.
“Starting from Ajaokuta, we have rocky terrain, 3.2 kilometers of that section is rocky terrain, but we are breaking up the rocks for the secondary activities that we are planning.
“In the next few months we will start digging, lowering and backfilling the pipes. We are also placing an order for other mainland procurement items that will go on the main line,” he said.
Speaking about infrastructure interference, he said the company was aware of it, as power lines along its right-of-way were slowing the project's progress.
"We have an active human environment where people's buildings, markets have not yet been destroyed, but we are working in conjunction with the owners who have issued the right of way to get full compensation to prevent disruption," he said.
Once completed, the AKK gas project would boost the agricultural and manufacturing sectors and reduce the nation's carbon footprint as part of measures to reduce global warming.
It will also provide gas for power generation and gas-based industries.
This will facilitate the development of new industries and also the revival of moribund ones throughout transit towns in Kogi, Abuja, Niger, Kaduna and Kano states.
Source Credit: NAN
La Cámara de Representantes y Nigerian National Petroleum Company Limited (NNPC Ltd) facilitaron la semana pasada un acuerdo entre los comercializadores de productos derivados del petróleo y los operadores de líneas aéreas para mantener el precio del queroseno de turbina de aviación (ATK) en N500 por litro.
El ATK se conoce popularmente como combustible de aviación.
El acuerdo se alcanzó el lunes en el segundo día de la audiencia de investigación del Comité Adhoc de la Cámara de Representantes sobre el Alto Costo del Combustible de Aviación que se llevó a cabo en el Complejo de la Asamblea Nacional, Abuja.
Al presentar los aspectos más destacados del acuerdo, el Director Gerente del Grupo/Director Ejecutivo GMD/CEO de NNPC, Malam Mele Kyari, afirmó que ambas partes estaban representadas.
Los comercializadores de productos derivados del petróleo estuvieron representados por la Asociación de Comercializadores de Petróleo de Nigeria (MOMAN) y la Asociación de Comercializadores de Depósitos y Productos del Petróleo (DAPPMA).
En el otro extremo, las partes interesadas de la industria de la aviación estuvieron representadas por los Operadores de Nigeria (AON) y la Autoridad de Aviación Civil de Nigeria (NCAA), ya que ambos grupos acordaron que el precio de surtidor del combustible de aviación se fije en N500 por litro durante los próximos tres días.
“En los próximos tres días, los representantes de MOMAN, DAPMAN y Airline Operators of Nigeria se sentarán y adoptarán bases de precios transparentes.
“Que, tal como lo solicitaron los operadores de aerolíneas de Nigeria, se les otorgará una licencia para importar también ATK a fin de tener una forma de comparar los precios.
“También tendrán un tipo de cambio de referencia para la naira”, dijo Kyari.
Los interesados también resolvieron comprometerse y acordar una prima que también sería diferente de cliente a cliente dependiendo de los volúmenes que quieran comprar y el límite de crédito que cada comercializador puede permitir.
Se espera que esto ayude a establecer una base transparente para la fijación de precios, elimine las discrepancias de precios y arroje el valor real de mercado del producto.
Anteriormente, el Director Ejecutivo de Sistemas, Almacenamiento e Infraestructura de Venta al por Menor de la Autoridad Reguladora de Midstream y Downstream de Nigeria (NMDPRA), el Sr. Ogbogu Ukoha, destacó algunos de los factores que dispararon el precio de ATK.
“Uno de los principales factores que influyen en el alto costo de ATK sigue siendo el problema de la disponibilidad de divisas, es decir, la fuente de la cual los comercializadores adquieren sus dólares, ya sea del Banco Central de Nigeria (CBN) o del mercado paralelo.
“Cuando eso se suma al hecho de que ATK está desregulado, se convierte en un dilema comercial donde no vender por debajo de cierto precio debido a las barreras de divisas y los desafíos del costo de aterrizaje.
“Sin embargo, los operadores de líneas aéreas insisten en que no pueden comprar productos por encima de una determinada cantidad si las tarifas aéreas siguen siendo asequibles”, dijo Ukoha.NNPC GMD/CEO, Malam Mele Kyari
Hablando de manera similar, el Secretario de DAPPMA, el Sr. Olufemi Adebayo, explicó que la escasez de divisas era un problema importante en el aumento del precio de ATK.
“Si podemos comprar dólares en N410 o N420, el precio será diferente. Desafortunadamente, no podemos.
“Lo que compras en la calle es diferente a lo que obtienes en los bancos; y por dólar, cuanto más lo quieres, más barato no es”.
Por su parte, el presidente de MOMAN, Sr. Olumide Adeosun, afirmó que parte del desafío con la fijación de precios de ATK era el hecho de que es el más difícil de manejar de todos los destilados medios porque requería licencias adicionales para producir.
“Actualmente hay refinerías en Nigeria que producen ATK pero no pueden vender el producto porque tiene que ser autorizado.
“Algunas de las refinerías modulares que producen diésel en el país pueden producir ATK, pero estas refinerías no están certificadas para esa producción”, dijo.
Adeosun también reveló que el método retrospectivo para determinar el precio de ATK en el sector de la aviación se presta a abusos que a menudo quieren aprovechar las variaciones de precios en el mercado.
“El índice de precios del combustible de aviación se determina el promedio del mes.
“Habitualmente, los compradores de productos quieren aprovechar las variaciones de precios en el mercado, que a veces generan pérdidas.
“Puedes comprar productos hoy cuando es caro y venderlos mañana con pérdidas, teniendo en cuenta cómo se determina el índice de precios en retrospectiva”.
Hablando en nombre de AON, el Sr. Allen Onyema, Vicepresidente y Presidente/CEO de Air Peace, expresó su agradecimiento a GMD NNPC y al liderazgo de la Cámara de Representantes por su enfoque directo sobre el problema del aumento de precios de ATK y prometió el compromiso de la grupo al bienestar de los nigerianos.
En sus comentarios de clausura, el presidente del Comité Adhoc y vicepresidente de la Cámara de Representantes, el representante Idris Wase, elogió al GMD NNPC, Malam Mele Kyari y a todas las partes interesadas por sus sacrificios que hicieron posible el acuerdo interino.
Dijo que la Cámara continuaría brindando el apoyo necesario para garantizar el bienestar y la seguridad de los nigerianos.Miembros de los Operadores de Aerolíneas de Nigeria
Aún en la semana bajo revisión, NNPC Ltd. confirmó que remitió la suma total de ₦ 59.8 mil millones a la Cuenta de la Federación de 2010 a 2018.
La Compañía hizo la divulgación en una sesión interactiva con el Comité de Cuentas Públicas de la Cámara de Representantes.
En una presentación a los legisladores, el Director de Finanzas (CFO) de NNPC, el Sr. Umar Ajiya, quien representó al GMD/CEO Kyari, entregó documentos para demostrar que la suma de ₦59.8 mil millones fue remitida después de la conciliación con la oficina del Contador General de la Federación y la Comisión Fiscal y de Movilización de Ingresos.
Explicó que antes de la aprobación de la Ley de la Industria del Petróleo (PIA, por sus siglas en inglés), la NNPC tenía el mandato de remitir ciertos flujos de ingresos a la Cuenta de la Federación y al Fondo de Ingresos Consolidados, y enfatizó que bajo la PIA, la Compañía solo haría remesas a la Federación Cuenta.
Sobre las remesas de ingresos generadas en 2019 y 2020, el CFO explicó que los pagos aún se están conciliando con la Oficina del Contador General y la Comisión Fiscal y de Movilización de Ingresos.
Por su parte, el presidente del Comité, el representante Oluwole Oke, dijo que los legisladores estudiarían los documentos presentados para volver a la Compañía sobre cualquier asunto que necesitara mayor aclaración.
En la sesión interactiva estuvieron presentes representantes de la Contraloría General de la Federación y de la Contraloría General de la Federación respectivamente.
También en la semana bajo revisión, NNPC Limited ha dicho que una de las razones clave por las que las refinerías modulares no pueden producir Premium Motor Spirit es la regulación del precio de venta del producto por parte del gobierno.
La declaración fue hecha por el Director Ejecutivo, Refinación, NNPC Ltd, Sr. Mustapha Yakubu durante una sesión plenaria en la Cumbre Internacional de Energía de Nigeria 2022 recientemente concluida en Abuja.
Una refinería modular es una refinería simplificada que requiere una inversión de capital significativamente menor que las refinerías tradicionales a gran escala. Es una planta de procesamiento de crudo con una capacidad de hasta 30.000 barriles por día.
Nigeria tiene varias refinerías modulares en Edo, Delta, Imo y otros estados, mientras que hay planes para aumentar el número a través de inversiones del sector privado.
El GED dijo que, “Algunas refinerías modulares deberían tomar hasta 50 000 barriles por día, pero debido a la fijación de precios, se puede comenzar con 10 000 barriles y luego escalar gradualmente hasta 50 000 barriles.
“¿Qué necesitas hacer para producir PMS? Preguntó, la respuesta según él, es asegurar una inversión adicional que pondrá en el cracker necesario para producir el PMS”.Ilustración para refinería modular
Todavía hablando de la escasez de PMS, los comercializadores de productos derivados del petróleo han pedido una desregulación total del sector downstream, incluso cuando NNPC Ltd. consideró una nueva inversión en refinerías e infraestructura de gas.
El presidente de la Major Oil Marketers Association of Nigeria (MOMAN) y director general de 11 Plc, Tunji Oyebanji, denunció el aplazamiento de la desregulación total del sector downstream.
Según él, “la medida es un revés importante para la industria”.
Dijo que la liberalización del sector permitiría a los inversores a lo largo de la cadena de valor obtener rendimientos adecuados de sus inversiones.
El director ejecutivo de Rainoil Ltd., Emmanuel Omuojine, dijo que eliminar el subsidio a la gasolina agregaría un valor significativo a las reservas de divisas de Nigeria, especialmente a nivel macroeconómico.
El presidente ejecutivo de OVH Energy Marketing Ltd., Huub Stokman, dijo que el desafío actual con la escasez de gasolina era una clara indicación de que Nigeria necesitaba un buen plan de emergencia.
También hablando en la Cumbre Internacional de Energía de Nigeria (NIES) recientemente concluida, el Director Ejecutivo del Grupo, Refinación, NNPC, Mustapha Yakubu, dijo que los esfuerzos para rehabilitar las refinerías están en marcha, y señaló que la desregulación del sector downstream impulsaría la capacidad de refinación nacional del país.
En otro desarrollo, Nigerian Gas Company Limited (NGC), una subsidiaria de NNPC, emergió como el mejor participante general en la recién concluida 43ª Feria Comercial Internacional de Kaduna.
La compañía también se llevó el “Premio al Mejor Producto Nuevo” en la feria con el tema “Re-estrategia de la Economía de Nigeria para la Competitividad Global”.
Al presentar el premio en la ceremonia de clausura, el Ministro de Comercio e Inversión, Otumba Niyi Adebayo, la secretaria representada, la Sra. Evelyn Ngige, elogió a NGC por su desempeño en el evento.
Anteriormente en el día especial de NGC, el Director Gerente (MD) de la Compañía, el Sr. Seyi Omotowa, dijo que el proyecto del gasoducto Ajaokuta-Kaduna-Kano (AKK) cumpliría su mandato de brindar oportunidades laborales y facilitar un crecimiento económico equilibrado.
El MD que estuvo representado por Igbokwuwe, Gerente General de la División Comercial, dijo que el estado de Kaduna obtendría un gran beneficio económico debido a su ubicación estratégica con respecto al gasoducto AKK.
La 43.ª Feria Comercial Internacional de Kaduna se llevó a cabo del 25 de febrero al 6 de marzo.
Mientras tanto, el Gobierno Federal dijo que trataría con decisión y sancionaría a cualquier Propietario de Depósito que fuera sorprendido vendiendo productos derivados del petróleo por encima del precio Ex-Depósito aprobado en el país.
El Jefe Timipre Sylva, Ministro de Estado, Recursos Petrolíferos, reveló esto en Abuja mientras informaba a los periodistas sobre su esfuerzo por resolver el problema de la escasez de combustible en el país.
Instó al público a denunciar a cualquiera que intentara aprovecharse de la situación para sancionar como corresponde.
En consecuencia, el ministro dijo que los camiones que podían mover productos derivados del petróleo que funcionaban con diésel se vieron afectados y realmente no podían hacer frente a los altos precios del diésel.
Aunque dijo que los productos estaban disponibles en los depósitos, los camiones no podían mover el producto debido al alto costo del transporte.
Esto, dijo, trajo otra dimensión a la crisis.
Dijo que hasta ahora, la administración de NNPC Ltd. y la Autoridad Reguladora del Petróleo de Midstream y Downstream de Nigeria (NMDPRA) habían estado trabajando muy duro.
Según él, la situación se está controlando gradualmente mientras se aumenta el suministro para Abuja.Jefe Timipre Sylva
También en la semana, Nigeria y Guinea Ecuatorial firmaron un Memorando de Entendimiento para el suministro de gas de los campos marinos de Nigeria a la instalación de procesamiento de gas de Guinea Ecuatorial en Punta Europa.
En la ceremonia de firma, el Ministro de Estado de Recursos Petroleros, Jefe Timipre Sylva, declaró que el acuerdo había dado inicio a una colaboración estratégica en todo el Golfo de Guinea.
Explicó que las abundantes reservas de gas natural de Nigeria complementarían la infraestructura de procesamiento y licuefacción de gas de Guinea Ecuatorial.
Sylva agregó que la reciente aprobación de la Ley de la Industria del Petróleo, junto con la iniciativa de la Década del Gas de Nigeria, desencadenó la concepción del proyecto, ya que facilitó una importante afluencia de inversiones de Guinea Ecuatorial a Nigeria.
Dijo que el proyecto también señaló el esfuerzo conjunto de los dos países para trabajar hacia un mundo energético más verde.
Sylva señaló que el proyecto ha previsto el desarrollo de un gasoducto en alta mar y también crearía enormes oportunidades de contenido local en el país para los proveedores de servicios de gasoductos y otras infraestructuras.
Por su parte, el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial, Gabriel Lima, dijo que la ejecución del MoU es un gran ejemplo de la cooperación Sur-Sur entre Nigeria y Guinea Ecuatorial.
Sylva, firmó el convenio en representación del Gobierno Federal, mientras que el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial, Gabriel Lima, firmó en representación de su país.
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State Oil Minister Chief Timipre Sylva(R) with US Secretary of Energy Jennifer Granholm at the ongoing CERAweek 2022, Houston, TexasAbuja, March 10, 2022 Chief Timipre Sylva, Minister of State for Petroleum Resources, has called on the US government to provide financial support to Nigeria to develop its natural gas resources.According to Sylva, this is to allow the sector to serve as an alternative source of energy for Europe.The call comes on the heels of the Russian-Ukrainian crisis, which threatens to cut off gas supplies from Russia to the entire European continent.The minister was speaking at a meeting with US Secretary of Energy Jennifer Granholm on the sidelines of the ongoing CERAweek 2022 in Houston, Texas.Sylva, in a statement on Thursday (Media and Communications) Advisor, Horatius Egua, said that collaboration between the US and Nigeria in this area would be of immense benefit to both countries, as well as to the entire world.According to Sylva, it is in the interest of the world community to have an alternative gas supply to Europe.He said that the challenge for Nigeria to achieve this feat had been the lack of infrastructure and financing to develop the sector, adding that the United States could provide such financing.The minister told Granholm that Nigeria had abundant natural gas resources that could meet European demand for gas, saying the problem had been access to finance.He said that as part of efforts to boost gas supplies across the African continent, Nigeria had embarked on the construction of a 600 km Ajaokuta-Kaduna-Kano (AKK) gas pipeline.This, he said, was designed to bring gas to Europe via North Africa and therefore he asked the US to provide the necessary infrastructure funds for the exploitation of the huge natural gas in Nigeria.“We have access to gas, but access to financing has been the problem.“Our wish is to be able to bring gas from Nigeria through Algeria to Europe. We have already launched the AKK gas pipeline project, and if we have the necessary funds, we can complete that project in two years,” the minister said.According to him, Nigeria has more than 206 tcl of natural gas reserves and an unproved reserve of 600 tcl and with the specific exploitation of natural gas in Nigeria, up to 600 tcl can be produced.The minister said the Russia-Ukraine crisis was a wake-up call for alternative gas sources for Europe, saying situations like this required alternative means.Speaking about the global energy transition, Sylva said that for the energy transition agenda to be meaningful, Africa's unique issues must be taken into account throughout the energy transition agreement.The minister, a supporter of an African solution to the energy transition program, said that “we must be given some special considerations.“I am excited that the world has begun to listen to us. As much as we want to be part of the new economy, we cannot move at the same pace.“We still have people without clean cooking fuels, so we want to achieve our energy base load through a multi-pronged approach. The reality is that we cannot move forward at the same pace. There is a gap between expectations,” he said.He called on the US government to support Nigeria and other African countries in the areas of financing and technology, as collaborations of this kind could accelerate the energy transition agenda.Sylva, however, cautioned that such funds and technology support must be made accessible to interested countries.“We have to find a structured way to access financing. We must create that understanding so that loans are accessible. The sovereign guarantee issue should be removed so that interested countries can easily access financing,” the minister said.Citing the case of the African Growth Opportunities Act (AGOA), Sylva said that since the program came into force all those years ago, no African country had been able to “successfully enter the project to reap maximum benefits”.He said that it had not been easy for Africa to access AGOA and added that Nigeria was interested in the type of funding it could access.In his remarks, Granholm expressed the US's willingness to cooperate with Nigeria to develop its renewable energy sector and noted that his government was not against the development of gas or other energy sources.She said the US government would be willing to support Nigeria in developing its renewable energy sources and therefore called for a coordinated strategy to pinpoint specific areas of focus where funding and other support would be required.“Investors are interested in financing renewable energy in Nigeria, but they are also interested in learning about potential areas of focus. We have to find a structured way to access the fund,” Granholm said.In an earlier meeting with US Under Secretary of State Harry Karman, Sylva expressed Nigeria's willingness to develop different renewable energy sources such as wind, solar and hydrogen.He also spoke about the need to optimize targeted funding, adding that there must be a framework to access funding.Karman in his remarks assured the minister of the US government's readiness to support Nigeria in finding sustainable energy sources for the millions of Nigerians without access to energy.“The United States will be more than happy to help. It is important that we look at the countries and what energy mix will be good for them."It has to be a combination for Nigeria and we have to do a study to determine the source of renewable energy that will be good for the country," he said.
The Ajaokuta-Kaduna-Kano (AKK) natural gas pipeline project has reached 73.3% completion stage, according to Mr. Abdulkadir Ahmad, Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation .
The Nigerian News Agency reports that the AKK project, aimed at transporting natural gas from Ajaokuta, in the state of Kogi, to Kano, in the state of Kano, through several states and urban centers, was approved by the Government .
Ahmed made the revelation on Monday in Kaduna when he was speaking as a guest speaker at a public lecture in honor of Mr. Suleiman Umaru, Emir of Lere in Kaduna State, organized by the Nigerian Society of Chemical Engineers (NSCHE).
Ahmad, Ibokwuwe Representative, General Manager, Commercial, Nigeria Gas Company Ltd, spoke on the topic “Nigeria Gas Master Plan and Opportunities for Northern States”.
“So far we have made great progress as the project is 73.3% complete with only 23.5% remaining.
“We have split the project in two to ensure it is completed as soon as possible as we are working within the 2022 timeline,” he said.
He said that the Federal Government supported the initiative and was obtaining resources so that it would not be truncated.
"The immense opportunities are that Kaduna will have access to 900 megawatts of generated power when the AKK project is completed, and will also have huge access to gas that can support the rise of industries and petrochemical plants," he added.
In addition, Mr. Idris Bugaje, Executive Secretary of the National Board of Technical Education (NBTE), who presided over the occasion, described AKK as an important project and added that, once completed, it would solve the problem of inadequate power supply.
“Most states, especially the northern states, get only one or less than one percent of what TCN transmits, so the AKK project is an opportunity to generate power and distribute it to communities and industries,” said.
Earlier in a welcome speech, Mr. Saidu Mohammed, National President of NSCHE, noted that although there were challenges with the gas sector on which another sector depended, he was optimistic that the desired results would be achieved.
Mohammed congratulated the organizers of the event and urged the participants to make good use of the knowledge gained from the presentations made on the occasion.
In his remarks, Mr. Umaru, Emir de Lere, praised the organizers and called for synergy among the professionals so that they can positively impact the people.
Timipre Sylva, Minister of State for Petroleum Resources, says Nigeria has the ability to become the world's largest producer of petrochemicals.
This, according to him, is possible with the implementation of the Gas Development Decade initiative,
Sylva spoke on Tuesday at the Virtual Nigerian Gas Association, NGA, the 2021 Business Forum and the Annual General Meeting.
The topic of the forum was 'Petroleum Industry Law (PIA): Progress and Opportunities in the Gas Decade'.
Mr. Sylva, represented by his Technical Advisor on Business and Implementation of Gas Policies; Judge Derefaka said Nigeria had 206.53 tcf of proven gas reserves as of January 1, 2021.
He said that the declaration from 2021 to 2030 as President Muhammadu Buhari's `` Gas Decade Initiative '' aimed to transform Nigeria into a gas-powered economy.
The minister said: “The Gas Decade is a decade of eliminating gas flaring, a decade of more national liquefied petroleum gas (LPG) and a decade of a fully gas-powered economy.
“For us as a nation, natural gas is power. It is transported, as in natural gas vehicles (what is popularly known as Auto-gas).
“Gas is a feedstock for petrochemicals. Gas is manufacturing and industries, it is also food, as gas components are used to make fertilizers, helping to feed millions of people.
“The Nigerian agricultural sector, probably the largest contributor of Gross Domestic Product to our economy, would benefit greatly from the increased availability of fertilizers that use gas as a feedstock.
“Given the low concentration of nitrates in our soil and gas as a key raw material for nitrate-based fertilizers, the development of the gas industry could contribute to improving our food security as a nation.
"The gas decade initiative is to ensure that Nigeria has the highest petrochemical production capacity in the world and to catalyze enough change that will position Nigeria as the world's largest urea manufacturing center."
However, Mr. Sylva noted that achieving the goal required the collaboration of all stakeholders.
He said the government, for its part, will continue to undertake policies and programs aimed at using Nigeria's gas resources for national development.
The minister said that the ongoing construction of the 614 kilometers Ajaokuta-Kaduna-Kano, AKK, gas pipelines and the NLNG Train 7 Project would deepen gas utilization in the country.
Sylva said the president's signing of the Petroleum Industry Act, PIA, on Aug. 16 would end the $ 15 billion oil and gas investments that Nigeria loses annually.
He said: “The PIA 2021 has created a fundamental foundation for the much desired industrialization and economic development of this country.
“It also has generous incentives to enable gas development, distribution, penetration and utilization.
"The PIA is part of FG's determination and commitment to building a competitive and resilient oil industry that will attract investment, improve the revenue base, create jobs and support the economic diversification agenda."
The Nigerian National Petroleum Company (NNPC) Limited started its activities for the week at the World Bank Nigeria Development Update in Abuja, with a fresh commitment to the ongoing reform in the oil and gas sector in Nigeria.
The event which held at the Transcorp Hilton Hotel in Abuja saw the Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC, Malam Mele Kyari insisting that the reforms in the oil and gas sector were unstoppable.
Kyari noted that the Petroleum Industry Act (PIA) had provided a clear legal framework for the process.
He explained that the PIA was very comprehensive in its provisions on the operations and responsibilities of the industry players as well as allocation of timelines for the categories of various activities.
“There is a reform going on particularly in the energy sector and no one can stop it,” he said.
The NNPC CEO continued: “For instance, the issue of removal of subsidy is now guided you have to go back to the National Assembly to stop it.
“Also the Act provides for issues around the relationship between the national oil company and other institutions of government in relation to timelines, which is a clear departure from the past,” the Kyari said.
On the issue of subsidy, he noted that it was no longer realistic for the Federal Government to continue to bear the burden of the monthly provision of the sum of N250billion for petrol subsidy.
This, he said was in spite of government’s intention and efforts to continue with the subsidy in the interest of Nigerians.
He added that the new NNPC as established under the PIA would soon resort to invoicing the government to enable it recover the cost of providing the petrol.
On their part, the Minister of Fice, Mrs Zainab Ahmed, and World Bank’s Country Director for Nigeria, Mr Shaudhuri Chaudhuri, said that the removal of petrol subsidy had become inevitable as government requires the funds used for subsidy to invest in other critical sectors of the economy that would make life easier for Nigerians.
Speaking at the event, the Governor of Kaduna State, Malam Nasir El-Rufai and the World Bank’s Lead Economist for Nigeria, Mr Marco Herdez commended the GMD for his forthright leadership in the execution of the oil and gas sector reforms.Gov. Nasir El-Rufai
Meanwhile, the NNPC has called on members of the Independent Petroleum Producers (IPPG) to recommend new strategies to tackle the challenges facing the Nigerian oil and gas industry.
The NNPC GMD/CEO, Malam Mele Kyari, gave the charge while hosting the new executive of the IPPG in his office at the NNPC Towers, Abuja, on Tuesday.
The GMD said that the current reality in the petroleum industry called for a clear understanding and commitment of all players in order to reposition the industry for enhanced performance.
He said though the PIA had eliminated the uncertainty and lack of clarity that had bedeviled the industry in the last 25 years, there was need for practical steps the industry to redress the situation.
“There are immediate problems which we know.
“We found ourselves in this situation because everybody failed, so we have to bring everyone to the table to accept this reality and come up with an intervention that is different, not what we have always done,” Kyari said.
He disclosed that significant progress had been made in reducing the incidences of crude oil theft and called for all hands to be on deck to work towards eliminating the menace.NNPC GMD/CEO, Malam Mele Kyari
On gas pricing, he said though the country was under supplied, the PIA had created an enabling environment for producers to recover their cost through a flexible structure that had been put in place .
He assured the group of NNPC’s readiness to collaborate with them.
Speaking earlier, Mr Isah Abdulrasaq, Chairman of the IPPG which is a group of indigenous oil companies operating in the Upstream sector, commended the GMD for his role in the passage of the PIA and his appointment as the CEO of the NNPC Limited.
He said that as a limited liability company under the Companies and Allied Matters Act (CAMA) the new members of IPPG can engage both parties to learn from each other.
Abdulrasaq called for the inclusion of IPPG on the PIA Implementation Steering Committee in order to facilitate and achieve a collaborative and inclusive approach to the reforms.
On the absence of funding as a result of the global energy transition, Abdulrasaq called for the establishment of an energy bank to provide funding for the petroleum industry.
He disclosed that indigenous players in the industry currently produce 252,000 barrels of crude oil per day and 650million standard cubic feet of gas per day, amounting to about 50 per cent of the nation’s gas requirement.
The IPPG leader called on the government to undertake international advocacy for the consideration and recognition of gas as a transition fuel in order to attract investment into the sector.
The chairman was accompanied on the visit members of the group, including the immediate past chairman, Engr. Ademola Bero.
Also on Tuesday, the Federal Government dismissed reports on plans to hike fuel price.
Chief Executive Officer of the Midstream Petroleum Regulatory Authority, Farouk Ahmed, who made this position known in Abuja on Tuesday, reassured that there were no plans to increase the official price of Premium Motor Spirit (PMS), as being speculated in some quarters.
Ahmed spoke when he fielded questions from State House Correspondents, after he along with the newly appointed Chief Executive Officer of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, were officially presented to President Muhammadu Buhari.
This came just as government through Minister of State, Petroleum Resources, Timipre Sylva, promised to do something drastic concerning the rising cost of cooking gas to address the pains Nigerians were going through, especially this Yuletide season.
The News Agency of Nigeria reports that the Minister of State, Petroleum Resources, Timipre Sylva, presented the two Chief Executive Officers to the President at the Presidential Villa, Abuja, on Tuesday.
Ahmed maintained that the marginal queues being witnessed at filling stations in Abuja and some parts of the country had nothing to do with any supposed plan hike PMS price.
He, however, stated that the queues were caused logistics in U.S. Dollars , and the issue is being addressed .
“Basically, what happened is that some of the depot owners selling Premium Motor Spirit above the official ex-depot price of N148, are selling at N156 or N157.
“The reason is that they are paying for their logistics like shipping and Port charges and Nigerian Maritime Administration and Safety Agency (NIMASA) charges in US Dollars and they have to go to parallel market to source for the Dollars.
“The differential between the official exchange rate and the parallel market is their reason for adding between N9 and N10.
“But we had a meeting on Tuesday, Nov. 9, and the heads of the Nigeria Ports Authority and NIMASA as well as other stakeholders were all there and it was resolved that NNPC excess capacity vessels would be chartered to oil marketing companies and they would be charging in Naira.
“NIMASA and the Ports Authority will also revert back to their supervising ministries and get directives to collect their charges in Naira rather than US Dollars.
“I believe with these, there will be no reason for the depot owners to increase their price beyond the official selling price of N148,” he explained.
Also addressing the State House Correspondents, Sylva said the president was happy with the level of implementation of the Petroleum Industry Act (PIA) 2021.
According to him, President Buhari urged the regulators in the petroleum industry to do what is best for Nigeria.
He said: “The President is happy with the level of implementation of the PIA. A lot is going on, already the agencies created are now in place.
“The President charged us to ensure that we use our best experience to ensure that the industry is on track.
“Luckily for us, we have very experienced people on the saddle, both in the authority and the commission and the President asked us to go ahead and do what is best in the interest of Nigeria at all times.”
On the recent increase in the price of cooking gas in the country, the Minister said “the President is worried over the situation just like all other Nigerians.”
Sylva further said although the price of the essential commodity was not regulated by Nigeria, some steps would be taken internally to provide some relief, ahead of the yuletide season.
On the transition of cars from the use of petrol to gas, he said government needed about N6 billion for the procurement of kits to convert the first one million cars as well as facilitate the procurement of equipment that will enable gas pump stations come on board.
Still in the week under review, the Nigerian Pipelines and Storage Company (NPSC), a subsidiary of the NNPC Limited, donated a block of four classrooms and headmaster’s office to one of its Benin Depot host communities, Ohovbe Community in Ikpoba-Okha Local Government Area of Edo State.
Speaking at the inauguration and official handover of the project, the Managing Director of NPSC, Engr. Mansur Sambo, expressed the company’s commitment to giving back to its host communities through Corporate Social Responsibility (CSR) projects.
Sambo, who was represented Public Affairs, Mrs Ebika Onyema, noted that it had been NNPC-NPSC tradition to always positively impact lives in its host communities.
Earlier in his welcome address, the Enogie of Ohovbe, His Royal Highness, Dr Iduriase Oyenmwensere, expressed gratitude to NNPC Management for the laudable gesture.
Also speaking, the Acting Chairman, Ikpoba-Okha Local Government Area, represented of Administration and General Services, Mrs B.E. Uhunmwangho, stated that the Lcouncil would do all in its capacity to partner with NPSC in sustaining the project.
She urged members of the community to see the project as a donation towards improving the yearnings and aspirations of children within the community and tasked them to contribute their quota towards protecting the project from vandalism.
The Edo State Commissioner for Education, represented Secretary, Mrs Osarogiagbon Isokpan, who officially handed over the project thanked the Management of NNPC- NPSC and prayed that the pupils who would use the classrooms would grow up to become excellent examples in their different career paths.
The Current drive Limited to strengthen gas penetration and utilisation across the country received a major boost within the week with the signing of a Memorandum of Understanding (MoU) for the supply of gas to industries and investors in Nasarawa state.
The MoU which was designed to ensure that the state derives maximum value from the Ajaokuta-Kaduna Kano (AKK) gas pipeline network was signed in Lafia , Gas Aggregation Company Nigeria Limited (GACN) and the Nasarawa State Government, at the Nasarawa Business Roundtable organised to explore investment in opportunities in the gas sector.
The signing of the MoU which was the climax of the Nasarawa Business Roundtable was witnessed State Governor, Abdullahi Sule and the GMD/CEO NNPC Limited, Malam Mele Kyari.
Others in attendance were the Group Executive Director Gas & Power, NNPC Ltd. Mr Mohammed Ahmed, the Group General Manager, Group Public Affairs NNPC, Malam Garba Deen Muhammad, the MD of Nigerian Gas Marketing Company, Eze Justin Ezeala, the Chief Executive Officer (CEO) of Axxela, Mr Bolaji Osunsanya.
The event also had in attendance: Malam Isa Modibo, Chairman, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Justice Sidi Moh’d, the first, Emir of Lafia and Chairman State Council of Chiefs and HRM Alhaji Dr Ahmed Hassan, the Yakanajie of Uke Kingdom, Karu LGC, Nasarawa State.
Providing a status update on the ongoing construction of the 614km AKK pipeline project, Kyari emphasised that Nasarawa State was uniquely positioned to maximise value from the AKK Pipeline as well as gas based business opportunities.
Kyari highlighted and appreciated President Muhammadu Buhari’s unwavering commitment to utilise gas as a major tool to drive economic development.
Also speaking, Gov. Abdullahi Sule appealed to the indigenes of the state to key into the respective opportunities across the gas value chain such as gas distribution, CNG Stations, captive/embedded power generation, LPG marketing, gas flare commercialisation etc.
Speaking at the event, the Managing Director of GACN, Mr Olalekan Ogunleye, said the Gas Supply Collaboration Government, NNPC Ltd. and GACN had set out a clear framework through which investors and projects in the state would access gas immediately via Virtual Pipeline Solutions (CNG & LNG) ahead of the completion of the AKK Pipeline project.
“This is a major step in the Federal Government’s gas utilisation expansion drive being facilitated vigorously GACN.
“This MoU sets out clear deliverables that are time bound based on securing gas both on short, medium and long term basis on competitive terms,” Ogunleye said.
Managing Director of Nigerian Gas Marketing Company (NGMC), Eze Justine Ezeala also spoke on the marketing perspective of the project.
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