Connect with us

NNPC

  •  Oil Mining Leases ExxonMobil optimistic to unlock potential value
    Oil Mining Leases: ExxonMobil optimistic to unlock potential value
     Oil Mining Leases ExxonMobil optimistic to unlock potential value
    Oil Mining Leases: ExxonMobil optimistic to unlock potential value
    General news2 days ago

    Oil Mining Leases: ExxonMobil optimistic to unlock potential value

    The ExxonMobil Nigeria has expressed commitment to maintain a significant Deepwater presence in Nigeria for the next 20 years to unlock potential value in its renewed Oil Mining Leases (OMLs) The Execute Director and General Counsel, ExxonMobil Nigeria, Adesua Dozie, disclosed this to the News Agency of Nigeria on Sunday in Abuja.

    NAN reports that the Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in the OMLs on Friday executed fully termed agreements for renegotiated Production Sharing Contracts (PSCs).

    The renegotiations will put to rest the protracted dispute between the NNPC Ltd. and the Contractor Parties in OMLs 125, 128, 130, 132 and 133, as well as 138 PSCs. Under this development, the ExxonMobil Nigeria renewed its OMLs 133 (Erha) and 138 (Usan) deep-water leases for a further 20-year period.

    The Petroleum Industry Act (PIA) 2021 gave the NNPC Ltd. the legal backing to renegotiate all its existing PSCs in conformance to the provisions of the new Act within a one year period.

    The PIA, in Section 311(2) stipulates that new PSCs agreements under new Heads of Terms should be signed between NNPC Ltd. as Concessionaire and her Contractor Parties within one year of signing the PIA into law.

    This provision paved the way for the resolution of lingering disputes which created investment uncertainty and stifled new investments in the nation’s deep offshore assets.

    The renewed PSCs would generate 10 billion barrels of oil cumulatively, unlock opportunities within the Nigeria upstream sector, enhance revenue, inflow of Foreign Direct Investments and expand access to affordable energy and job creation.

    Speaking with NAN, the General Counsel described the renewed agreements as fantastic and exciting deal, after many years of dispute, adding that it would bring additional investments and spur economic growth.

    She expressed satisfaction over the implementation of PIA 2021 which recognised the potential and future for the deep water businesses in Nigeria.

    “As for my company, what this means is significant deep water presence for our company in Nigeria for the next 20 years,” she said.

    The company, in its twitter handle, @Exxonmobil -NG had announced the renewals of its OMLs 133 (Erha) and 138 (Usan) deep-water leases for a further 20-year period.

    “This includes extensions of Production Sharing Contracts with our partner NNPC Ltd. “These renewals validate ExxonMobil Nigeria’s earlier commitment to maintain a significant deep-water presence in Nigeria, via Esso Exploration and Production Nigeria (Deepwater) Limited (EEPNL),” the company said.

    ELLA
    NewsSourceCredit: NAN

  •  IPMAN threatens to shutdown depots over alleged police harassment
    IPMAN threatens to shutdown depots over alleged police harassment
     IPMAN threatens to shutdown depots over alleged police harassment
    IPMAN threatens to shutdown depots over alleged police harassment
    General news3 days ago

    IPMAN threatens to shutdown depots over alleged police harassment

     The Independent Petroleum Marketers Association (IPMAN), South East Zone, has threatened to shut down depots in Calabar, Port Harcourt and Enugu over incessant police harassment of its leaders.

    Mr Robert Obi, Cross River Chairman, IPMAN, made the threat on Friday in Calabar in an interview with newsmen.

    Obi said the association decided to close all the depots and stations after a series of meetings with some stakeholders over police harassment of its leaders.

    He alleged that there were moves by the Police Legal Unit at the Force Headquarters in Abuja to arrest its executives across the zone and possibly install a factional leadership.

    He said that if the police arrest its leaders in the zone it would create more crisis in the association in spite of various court pronouncements laying the matter to rest.

    Obi said the Attorney-General of the Federation,  in a letter which was copied to Mr Chinedu Okoronkwo and his faction who lost out at the Supreme Court, had acknowledged Alhaji Sanusi Fari as the authentic National President of IPMAN and his depots and units chairmen.

    Obi frowned at the alleged illegal moves by the police authorities and some he described as “disgruntled elements” to either misinterpret the Supreme Court ruling or subvert the will of the people.

    He said their aim was to impose their cronies on the association even when the facts of the matter were very clear.

    “Despite the legal advice, the police are putting all arsenals to arrest the current executives of IPMAN in Nigeria, particularly in Calabar NNPC depot and allegedly hand the leadership of the association to the people of their choice.

    “IPMAN warns that further step shouldn’t be taken by the police to interfere with the current leadership of the association.

    “We will shut down the distribution channels of petroleum and allied products in Nigeria pending when the police do the right thing.

    “IPMAN leadership has resolved to continue with their rights in the constitution and abide by the extant laws and subsisting judgments of the courts in its favour,” he said.

    The News Agency of Nigeria (NAN reports that the zone has been embroiled in leadership crisis which led to various court cases.

    The South East Zone of IPMAN, comprises Enugu, Aba, Rivers, Cross River and Benue with more than 40 depots and 1,000 petrol stations with about 2,000 members.

    The zone has been having a running battle with officers of the Nigeria Police over alleged attempt by the police to force a factional leadership on the association.

    Meanwhile, Force Headquarters spokesman, Mr Olumuyiwa Adejobi, said he was not aware of the matter.

    Earlier, the Cross River Command of the Nigeria Police has said it is not in position to react to the allegation.


    NewsSourceCredit: NAN

  •  NNPC Ltd launches crude theft monitoring applications
    NNPC Ltd launches crude theft monitoring applications
     NNPC Ltd launches crude theft monitoring applications
    NNPC Ltd launches crude theft monitoring applications
    General news3 days ago

    NNPC Ltd launches crude theft monitoring applications

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) on Friday launched  ‘Crude Theft Monitoring Applications’ to curb oil theft and pipeline vandalism.

    The News Agency of Nigeria reports that the launch held in Abuja on the sideline of the signing of renewed Production Sharing Contracts (PSCs) agreements between NNPC and its partners in Oil Mining Leases.

    The portal with the address ‘stopcrudetheft.

    com’ could also be accessed through a mobile phone.

    The portal has application options for reporting incidences, with prompt follow up and responses and another one for crude sales documents validation.

    Speaking during the launch, Malam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd. said ”vandals’ actions on pipelines became a difficult thing to deal with, but it engaged partners to ensure that it responded to the situation.

    ” According to the GCEO, there was involvement of government regulatory bodies, security agencies and host communities while it put up a robust framework to curtail the menace.

    “There are still ongoing activities of oil thieves and vandals on our pipelines and assets, very visible in the form of illegal refineries that are continuously put up in some locations and insertions into our pipeline network.

    “Arrests have been made and vessels have been arrested by Nigerian Navy, I commend the Armed forces, in the last three months, they have done substantive work and had destroyed some illegal refineries,” he said.

    Kyari said international refineries where the stolen crude could be taken to had obligations to ensure they bought Nigerian crude from credible sources which could be validated.

    He said, ”if they refused to do that, they would be held responsible as part of the culprits involved.

    ” He explained that the platforms were created for members of the communities and other Nigerians to report incidences of theft and be rewarded.

    Kyari urged that on the international arena, companies must report suspicious sale.

    He further said,”every product that left the country must have a unique registration number by the NNPC and validated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    “Ahead of this, we are also creating a platform where end-users, particularly refiners and traders can validate the product.

    “We cannot do this without international collaboration.

    It is impossible for any refinery to take a crude they do not know the source, refineries are designed to process certain specific grade of crude.

    “It is their duty to ensure that they validate this, because we have unique number of every crude that leaves this country,” he said.

    The GCEO, while stating that it has a total coordination process now, said it had a line of sites around all marine movement in the country and had created a functional platform.

    “We have visibility around everyone’s operations and the Economic and Financial Crime Commission (EFCC) is following everyone related to those transactions.

    “Wherever there is massive movement of cash, EFCC will follow the person, we believe that the combination of all these will get us back to normalcy,” he said.


    NewsSourceCredit: NAN

  •  Economic Collapse NLC criticises NGF s recommendations to FG
    Economic Collapse: NLC criticises NGF’s recommendations to FG
     Economic Collapse NLC criticises NGF s recommendations to FG
    Economic Collapse: NLC criticises NGF’s recommendations to FG
    General news3 days ago

    Economic Collapse: NLC criticises NGF’s recommendations to FG

    The Nigerian Labour Congress (NLC) has criticised  the Nigerian Governors Forum recommendations to the Federal Government on how to save the country from economic collapse.

    The NLC President, Mr Ayuba Wabba said this in a letter addressed to President Muhammadu Buhari and made available to newsmen on Friday in Abuja.

    The News Agency of Nigeria reports that it was alleged that the governors had proposed the elimination of PMS -recovery estimated at N6-7 trillion.

    They had also proposed early retirement of civil servants from age 50 and above and the implementation of the reviewed Oronsaye Report which suggests ending financing of government’s budgetary expenditures.

    The governors also proposed putting a final stop to fuel subsidy, eliminating NNPC’s federation-funded projects, capping Social Investment Programme (SIP) and  National Poverty Reduction with Growth Strategy budgets at N200 billion among others Wabba had described the governors’ recommendations to the Federal Government as insensitive, selfish and hypocritical.

    “Your Excellency, while we do agree that the economy is in need of revitalisation, we are dismayed by some of the prescriptions of the governors as they smack of extreme selfishness and insensate cruelty.

    According to him, the governors have canvassed for the premature termination of the appointments of public servants from age 50 and above in clear violation of their contracts of employment which is a subsisting law.

    “We find this repugnant, shameful and utterly irresponsible.

    Aside from running contrary to your mission and principle of creating 100 million jobs.

    ”Aside from poverty intervention schemes,this policy is clear invitation to anarchy and damnation.

    “Pursuant to this, if State Governors strongly believe that age 50 is the problem, we demand that all governors, public office holders and politicians above 50, as a mark of good faith, should immediately step aside.

    ”Leading by example would spur  public servants to take a cue.

    “Beyond this however, implementation of this policy in the public sector will give a cue to the private sector to follow suit, with all its attendant devastating consequences,’’he said.

    Wabba also said that Nigerian governors were famous for ”lavish spending and wastage” and there was no assurance that money saved from stopped oil subsidy would be channeled to good use.

    He also said on the issue of removal of fuel subsidy that the congress found it ” unrealistic, insensitive and hypocritical.

    ” ”We find it distasteful that petrol subsidies in Nigeria create distortions in the economy but they do the opposite in US or Western Europe.

    “Truth is that removal of the little benefit the average person in Nigeria enjoys could lead to unintended consequences which we would be better off without.

    ’’.

    He, therefore, said that the solution to subsidy and the increasing deficits laid in domestic refining, effective management of Nigerian refineries.

    Wabba added,” this also to create an enabling environment for effective and efficient public sector leadership in the building and management of local refineries.

    ” Wabba further described as ”heartless,” the recommendation that the planned 22 per cent salary increase for workers be put on hold due to the massive devaluation of the Naira.

    “At over N600 to a dollar, the minimum of N30, 000 amounts to no more than $42.8 for a family of four for 30 days.

    “The implication of this is all too clear to see already, with the rapidly rising crime wave, and the intensifying epidemic of insecurity.

    “While we commend you for your thoughtfulness for a  wage increase, truth of the matter is that given the misfortune that has befallen the Nigerian populace, especially workers with fixed incomes.

    “There is an urgent need for a massive intervention much deeper than the 22 per cent.

    ”We would recommend a 50 per cent salary review across the board given the realities on ground,’’he said.

    On the recommendations for the introduction of  state sales taxes at 10 per cent, Wabba said that this seeks to make the poor pay more taxes while the rich pay little or nothing.

    He added that this was clear violation of the well-known norm of the rich paying taxes to cover up for the poor, adding,” It is a global norm and practice.

    ” Wabba therefore called for a raise in taxes across the board for the rich, including increased taxes on luxury goods and lifestyles.

    “Your Excellency, instead of embracing jobs termination which will compound the existing crises in our country, we should adopt the positives of retaining our best hands as a way of motivating the public service.

    “We find ludicrous the recommendation for the exp
    NewsSourceCredit: NAN

  •  Stakeholder applauds Buhari s directive on audit of HYPREP s accounts
    Stakeholder applauds Buhari’s directive on audit of HYPREP’s accounts
     Stakeholder applauds Buhari s directive on audit of HYPREP s accounts
    Stakeholder applauds Buhari’s directive on audit of HYPREP’s accounts
    Environment5 days ago

    Stakeholder applauds Buhari’s directive on audit of HYPREP’s accounts

    Environmental Rights of the Earth Nigeria on Wednesday applauded directive of President Muhammadu Buhari on audit of accounts of Hydrocarbon Pollution Remedial Project (HYPREP).

    Uyi Ojo, the Executive Director of the foremost environmental Civil Organisation, gave the applause at the official presentation of United Nations Environment Programme (UNEP) assessment report and HYPREP’s performance scorecard to newsmen and members of its affiliates in Benin.

    The News Agency of Nigeria reports that the HYPREP is an agency charged with the cleanup of Ogoniland and the Niger Delta states since its inception in 2016. Uyi urged the president never to allow the directive to go the way of a similar one ordered into the Niger Delta Development Commission (NDDC).

    This audit, he said, was currently in a long-drawn-out process on the work of the commission.

    The executive director noted that apart from the accounts, an audit of the cleanup and remediation work carried out under the project should also be conducted by an independent body.

    According to him, if the Nigerian government, the Ogoni people and partners are going to request the international community to support the continuation of the project, there must be transparency and accountability in the way the initial $1billion fund was utilised.

    “The payment of $1 billion was for cleanup and remediation in the first five years in a cleanup that will last 25-30 years.

    “The agreement between the Federal Government and Shell Petroleum Development on one hand, and the Ogoni community on the other hand, was for the contributing stakeholders to pay $200 million yearly for the initial five years.

    “But for four years after the project was launched, only $360 million has been paid as confirmed by the NNPC during a public hearing at the House of Representatives in Abuja in 2020. “There is no update on whether further transfers had been made for 2021 and 2022,’’ he said.

    The boss also urged stakeholders to remain vigilant to ensure that the directive did not become counterproductive and an unwelcome distraction from the remediation and restoration work that should take place in Ogoniland.

    chief also commended the appointment of Ferdinand Giadom, as the new Coordinator of HYPREP, describing it as a round peg in a round hole.

    The new coordinator, he noted, was an integral part of the UNEP team that conducted the Ogoni environmental assessment study.

    He called on the new coordinator to deliver HYPREP from the brink of disaster, rekindle the hope of the people of Ogoniland and the Niger Delta people that had allegedly been dashed by the previous coordinators.

    Ojo expressed regret that since 1993, over 4,000 Ogoni patriots had paid the supreme sacrifice, with several others becoming internally displaced or refugees in exile.


    NewsSourceCredit: NAN

  •  International energy companies in Angola and Nigeria illustrate the importance of creating enabling environments by NJ Ayuk
    International energy companies in Angola and Nigeria illustrate the importance of creating enabling environments (by NJ Ayuk)
     International energy companies in Angola and Nigeria illustrate the importance of creating enabling environments by NJ Ayuk
    International energy companies in Angola and Nigeria illustrate the importance of creating enabling environments (by NJ Ayuk)
    Africa6 days ago

    International energy companies in Angola and Nigeria illustrate the importance of creating enabling environments (by NJ Ayuk)

    By NJ Ayuk, CEO of the African Chamber of Energy.

    Last fall, I wrote (https://bit.ly/3zPqScP) about the importance of African governments doing everything they can to encourage international oil companies (IOCs) to continue operating in their countries.

    COIs play an important role in supporting economic growth, job creation, skills development and knowledge sharing.

    Currently, two IOCs in particular, Azule Energy in Angola and Shell Petroleum Development Corporation of Nigeria (SPDC), show tremendous promise in delivering those long-term benefits.

    Azule Energy, a newly formed independent joint venture of BP and Eni's Angolan businesses, is now a big player in the oil and gas industry.

    SPDC, the operator of a joint venture agreement between the Nigerian National Petroleum Corporation (NNPC), Shell, Total Exploration and Production Nigeria Limited and Agip Oil Company of Nigeria, is the largest Shell company in Nigeria.

    The potential of the two companies to impact African economies is so significant that the African Chamber of Energy features them both in its recently released State of African Energy Q2 2022 report.

    Azule Energy and SPDC are not the only IOCs contributing to economic growth on our continent, but they are excellent examples of the long-term impact international companies can have and the need to create an enabling environment for them.

    I strongly encourage government leaders in Angola, Nigeria and other oil and gas producing states to continue to take practical steps, from creating favorable tax policies to protecting company assets from theft and vandalism, to encourage ongoing activity of the IOC.

    A new era in Angola The joint venture between the Angolan companies of the British oil major BP and the Italian multinational Eni, completed in early August, is great news in every way.

    Azule Energy is now the largest independently owned oil and gas producer in Angola and, according to our report, is expected to be the second largest producer in the country overall, behind only state-owned Sonangol.

    Our report projects that Azule will produce approximately 22% of Angola's oil and gas production through 2025, surpassing even industry giants such as Chevron and TotalEnergies.

    How much product are we talking about?

    Azule is projected to produce 250,000 net barrels of oil equivalent per day (boe/d) from Angola's upstream sector by 2027, according to BP and Eni. Not only that, but the company has BP and Eni stakes in 16 exploration licences, suggesting a long-term presence in Angola.

    Azule will also have an important role to play in the growth of the Angolan natural gas industry, as a participant in the New Gas Consortium (NGC).

    This joint venture was created by BP, Eni, Chevron affiliate Cabinda Gulf Oil Company Limited (CABGOC), TotalEnergies and Sonangol in late 2019 to explore for and produce gas in Angola and drive economic growth there.

    One of the initial projects of the consortium will be the development of the Quiluma and Maboqueiro gas fields, the first non-associated gas development project in Angola.

    The consortium partners announced a final investment decision in the fields earlier this summer.

    With first gas scheduled for 2026, the fields are expected to produce a combined total of about 4 billion cubic meters (bcm) of gas a year at their peak.

    The project will also supply gas to the Angola LNG (liquefied natural gas) plant.

    Azule Energy's ongoing activity will have a tremendous impact on the people and businesses of Angola.

    Only the new joint venture's natural gas activities will help meet domestic needs, starting with new gas-to-energy programs that will help deliver reliable electricity to more Angolans.

    The gas can also be used as a feedstock for petrochemical plants, leading to further economic growth and diversification, and can help meet the international community's pressing need for natural gas, which has increased since Russia's invasion of Ukraine.

    An example for Africa The leaders of the Angolan government have played an important role in making all this possible.

    For example, under the leadership of Diamantino Pedro Azevedo, the Ministry of Petroleum Mineral Resources has made it a priority to promote exploration and production activities.

    One route the ministry has taken has been to divest Sonangol, the national oil company, of non-core assets.

    That move gave Sonangol the funds it needed to focus on its upstream, midstream and downstream businesses as an operator.

    Angola also introduced licensing rounds several years ago.

    In February 2022, ANPG's third bidding round resulted in proposals from TotalEnergies, Equinor and Eni. As the energy chamber noted at the time, the introduction of the licensing rounds, along with tax reforms, including halving tax royalties and income tax requirements for marginal discoveries, have produced a rebound.

    in international activity in Angola.

    And it created the kind of environment that will foster a healthy and long-lasting working relationship with Azule Energy.

    SPDC's continued role in Nigeria In Nigeria, meanwhile, with over 4 billion boe of potential reserve and the ability to sustain production at over 300,000 boe/d through 2035, SPDC remains very important to the national economy.

    .

    The company's current portfolio, according to estimates in our report, is worth at least $2 billion.

    SPDC, which made its first discovery in Nigeria in 1956, has been the subject of controversy, mainly due to oil spills in the Niger Delta region.

    But the company's presence in Nigeria has also had a positive impact on lives and communities.

    In 2019, for example, the Nigerian Content Development and Monitoring Board (NCDMB) recognized Shell as the country's most impactful IOC for local content initiatives.

    The company is not only known for supporting local vendors and suppliers, but also makes it a priority to employ local people.

    It recently estimated that 96% of its local workforce (currently a total of about 2,500 people) is made up of Nigerians, and 66% are from the Niger Delta.

    The chamber is also optimistic about SPDC's plans to help transform Nigeria into a natural gas hub.

    SPDC Country Head/Corporate Relations Director Igo Weli said Shell companies are working with the Nigerian federal government to build a network of gas plants and pipelines that could boost industrial and commercial development and strengthen exports of liquefied natural gas to meet world demand.

    “In Bayelsa State, Shell Nigeria Gas has signed an agreement with the Nigerian Content Development and Monitoring Board (NCDMB) to provide gas infrastructure to the NCDMB industrial gas park in Polaku,” Weli said.

    "NCDMB estimates that the park could generate more than 30,000 local employment opportunities."

    Then there are the company's educational and skill-building initiatives.

    The NNPC/Shell Cradle-to-Career scholarship is one example.

    Since 2010, 708 young people from the impoverished Niger Delta, where much of SPDC's assets are located, have benefited from the scholarship.

    The program covers the full cost of tuition, room and board, books, clothing, toiletries, health insurance, and visitor care for each recipient for all six years of high school.

    And over the past five years, 184 participants transitioned into SPDC's college scholarship program.

    Recently, Nigeria has seen a growing number of its IOCs divest Nigerian assets: more than 25 oil production licenses in the Niger Delta basin over the last 11 years.

    Shell, in fact, also planned to sell its onshore assets in Nigeria, to help it meet emission reduction targets.

    However, the company put those plans on hold in June to comply with a Nigerian Supreme Court ruling, which said the company would have to wait until SPDC's appeal in a 2019 oil spill case before selling Nigerian assets.

    This would be a good time for government leaders to do everything they can to make staying in Nigeria more attractive to Shell after the court case is over.

    One way they could do this would be to help the company significantly reduce the vandalism and oil thefts that affect its operations.

    As recently as this summer, the company said it had lost more than $1 billion in revenue from crude theft and property vandalism in Imo, Rivers, Abia and Bayelsa states in recent months.

    This is an issue that should concern both the government and Shell, Weli said, because thefts are directly responsible for the majority of SPDC's oil spills.

    “If more than 90% (of) the spills are caused by people with axes, saws and even explosive weapons, then you are creating a problem that will consume the budget that you would have used for education, health, etc,” he said.

    .

    "If you break pipes and pipes leak and it's very expensive to clean up, and the government had to clean up to make the environment safe for us, then you're funneling needed resources to other things."

    I realize that solving the socioeconomic challenges that contribute to these crimes, including unemployment and fuel shortages, is not an easy task.

    Still, Nigeria's leadership should do all it can to help SPDC keep its assets safe in the short term so that the opportunities the company is creating can strengthen local communities in the long term.

    Well worth the time and resources Large international companies like SPDC and Azule Energy have an impact on both national governments and small communities.

    They add to the country's coffers and help young adults develop the skills needed for a prosperous and rewarding future.

    The African Chamber of Energy looks optimistically at both companies and we look forward to seeing more like them across the continent.

    However, making that happen will largely depend on African governments.

    By creating operator-friendly policies and working cooperatively to help COIs address challenges, our leaders can help ensure far-reaching benefits for their countries and their people.

  •  A Z Petroleum Products Ltd urges Reps to help recover N30bn subsidy funds
    A-Z Petroleum Products Ltd urges Reps to help recover N30bn subsidy funds
     A Z Petroleum Products Ltd urges Reps to help recover N30bn subsidy funds
    A-Z Petroleum Products Ltd urges Reps to help recover N30bn subsidy funds
    General news6 days ago

    A-Z Petroleum Products Ltd urges Reps to help recover N30bn subsidy funds

    A-Z Petroleum Products Ltd has urged the House of Representatives to help recover an alleged outstanding debt of N30 billion subsidy differential from the Federal Ministry of Finance.

    The Head of Business Development, Mr Hafford Udochukwu, made the appeal on Wednesday at a public hearing organised by the House Ad hoc Committee in Abuja.

    The committee was constituted to ascertain the actual daily sale of Premium Motor Spirit (PMS) in Nigeria.

    Speaking at the hearing, Udochukwu said that in 2015, the company bought 12 cargos containing 245.89 million litres of PMS, 26.27 million litres in 2017 and 26.64 million litres in 2018. “We have not been paid since 2017, because of that we stopped trading in PMS.

    We are being owed over 30 billion naira by the government for subsidy differentials and because of that we have stopped trading.

    “We have not been trading on PMS; we are kind of handicapped, severally we have written to the ministry, they have paid other, but we have not been paid.

    In fact, we went to court two months ago.

    We are asking the committee to prevail on the Ministry of Finance so that they can pay us the outstanding,’’ he said.

    Udochukwu said that the company has over four thousand employees on its payroll which they have been sustaining all these years, but it was becoming difficult.

    The committee decried the development, saying that it was unacceptable as a lot of money, running into trillions, had been appropriated for the sub-head.

    The Chairman of the Committee, Rep. Abdulkadir Abdullahi (APC-Kano), asked the company to provide the committee with all necessary documents and pledged to look into the matter.

    The chairman directed the management of Virgin Forest Energy and Oando to appear before the committee on Monday, August 15, 2022. He directed that the companies should appear with proof of any payment made and other relevant documents on the quantity of PMS they deal in.

    The committee also summoned the Managing Director of Ash Group Energy Ltd, a member of the DSGP Contract Consortium, which has Jack Energy Solutions Ltd as member, and Vitol AS Ltd as the lead.

    The managing director of the group, it said, was summoned to appear on Aug. 16 to explain its operations and account for the volume of PMS imported.

    Abdullahi said that the committee would request that NNPC should suspend the operations of the consortium pending the outcome of the hearing.


    NewsSourceCredit: NAN

  •  Oil theft Okowa seeks surveillance contract review on facilities
    Oil theft: Okowa seeks surveillance contract review on facilities
     Oil theft Okowa seeks surveillance contract review on facilities
    Oil theft: Okowa seeks surveillance contract review on facilities
    General news1 week ago

    Oil theft: Okowa seeks surveillance contract review on facilities

    Gov. Ifeanyi Okowa of Delta has advocated a review of surveillance contracts on oil facilities to involve host communities in order to check the high rate of oil theft in the country. 

    Okowa  made the call when he received a Federal Government delegation on anti-il theft led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, on Monday in Asaba.

    He said that reviewing oil surveillance contracts based on performance of the contractors and engagement of host communities would ensure effectiveness in securing the nation’s oil and gas assets.

    Okowa said that the challenge of oil-theft was huge, given the level it had assumed, but expressed happiness with steps taken by the authorities to curb the menace.

    “I am glad that we are discussing this hydra-headed issue which impacts directly on our economy and the environment.

    “It impacts on the health of the people and sustainability of the environment and I am glad that we are taking some steps because there are so many issues that led us to this.

    “We went through situations where gaps where created between host communities and oil companies, and unfortunately criminality set in.

    “It has gone so bad but we are doing our best as a state.

    I am also glad with this collaboration,’’ he said.

    The governor said it was pertinence of a review of surveillance contracts of the oil facilities to ensure community involvement.

    Okowa said that it was often difficult to secure the facilities, especially when the persons given the contracts did not have adequate information on the environment or not have the buy-in of host communities.

    “We know that the impact of the nefarious activities on the health of the people cannot be immediately ascertained and this collaboration is, therefore, very imperative.

    “Any measure that will deliberately reduce the level of oil thefts is definitely worth supporting, and as a state government, we pledge our continued support.

    “Why investment of the communities is needed is because there are some parts of the creeks that cannot be accessed by the surveillance contractor.

    “The surveillance contracts should be tied to performance such that when there are oil thefts, you terminate the contract and it is always good that communities are involved because they know the environment better,” he said.

    He, however, flayed the oil companies for not keeping faith with their Memorandum of Understanding (MOUs), thereby making the stakeholders to lose confidence in the system.

    Okowa said that when oil companies failed to sign or implement MOUs, “it becomes very difficult for the state government to mediate when there are issues.

    “The security agencies must heighten their operations and they need to be resourced to enable them to also increase their level of surveillance and for this to succeed, there must be sincerity on the part of all stakeholders.

    ”Earlier, Sylva said that the team was in Asaba to seek the support and buy-in of the state government on measures to be adopted to check oil-theft.

    He said that oil theft had become a national emergency, especially as the nation had not been able to meet its OPEC production quota.

    “As a country we cannot sustain this kind of theft perpetually.

    “Our production has dropped drastically to very unsustainable levels; so, we have decided to take the bull by the horn by putting some structures in place.

    ”Those structures cannot function effectively without the collaboration of the state government,” he said.

    Also, the Chief of Defence Staff, Gen. Lucky Irabor, who is coordinating the security intervention against oil theft, disclosed that in the last five months security agencies had been dealing with issues of illegal refineries and oil bunkering across the Niger Delta.

    He also advocated for the engagement of indigenes and host communities in the fight against the criminal activity.

    On his part, Group Chief Executive Officer of NNPC Limited, Malam Mele Kyari, said that Nigeria was currently losing about two billion dollars monthly to the activities of oil vandals, with its attendant effect on environmental degradation.

    “As a country, we hardly meet our OPEC production quantum of 1.99 million barrels per day with our current production level of 1.4 million barrels per day which is currently being threatened by the activities of these economic saboteurs.

    “This has done extensive damage to the environment and losing 1.9 billion dollars every month is colossal, considering the nature of the global economy at the moment,’’ he said.

    Kyari reinstated that the team needed the support and buy-in of Delta Government “because stopping this oil theft requires the concerted efforts of the Federal, State Governments, oil companies and security agencies”.


    NewsSourceCredit: NAN

  •  Oil theft Nigeria loses 400 000 barrels daily Sylva
    Oil theft: Nigeria loses 400,000 barrels daily – Sylva
     Oil theft Nigeria loses 400 000 barrels daily Sylva
    Oil theft: Nigeria loses 400,000 barrels daily – Sylva
    General news1 week ago

    Oil theft: Nigeria loses 400,000 barrels daily – Sylva

    The Minister of State for Petroleum Resources, Dr Timipre Sylva, has said that the country loses 400,000 barrels of crude daily via oil theft.

    Sylva said this on Monday, when he paid a courtesy visit to Gov. Hope Uzodimma of Imo at the Government House, Owerri.

    He described the development as a “national emergency”.

    He regretted that the nation had fallen short of OPEC daily quota, from 1.8 million barrels to 1.4 million barrels, due to crude theft.

    He warned that such huge economic loss was capable of crippling the nation’s economy, if not given the seriousness it deserved.

    He expressed concern that the menace had persisted, in spite of the efforts by the Federal and State Governments to arrest it.

    Sylva said the problem of crude theft could not be handled in Abuja alone.

    “It is a national emergency because the theft has grown wings and reached a very bad crescendo.

    “This is because the thefts are taking place in the communities that host the oil pipelines.

    “As a result, it has become necessary to involve the stakeholders, especially the host communities.

    “And because of the height and orchestrated nature of the menace, Nigeria could not take the advantage and opportunities that abound in the gas production.

    “This is because no investor would want to invest where there is incessant insecurity and vandalism of the infrastructure,” he said.

    The minister, therefore, appealed to the stakeholders to collaborate to solve the problem.

    He commended the governor for his efforts to ensure that Imo remains safe and the economy not shut down.

    In a remark, the Chief of Defence Staff, Gen. Lucky Irabor, who was in the entourage, thanked Uzodimma for supporting the Armed Forces in the fight against the escalating criminality in the oil-producing areas in the South-East. Irabor called on the State Government, stakeholders and communities to “be involved in the fight against oil theft to a reasonable percentage and leave the rest for the army”.

    He assured the governor that the Army was ready to receive more assistance in the fight against banditry and other forms of criminality in the state and country at large.

    Responding, the governor gave assurance that his administraton would sustain its efforts to arresting the economic sabotage being perpetrated by pipeline vandals.

    He described the consequences of crude theft as ‘’very alarming and too much to be tolerated”.

    He said that the problem did not only result in the drop in oil revenue for the government but also created environmental pollution and other health hazards for the host communities.

    He therefore called for cooperation among the stakeholders, including the Federal and State Governments, NNPC and host communities to effectively fight the scourge.

    Uzodinman commended NNPC for the 200-bed capacity hospital the company was building at the Imo State University Teaching Hospital, Orlu. He appealed to the company to speed up the project to ensure its completion in record time.

    The News Agency of Nigeria reports that the meeting was part of the nationwide intervention efforts to curb crude oil theft.

    Others in the entourage were the Minister of State for Education, Mr Gooduck Opiah, and Group of NNPC Limited, Mele Kyari.

    The meeting was attended by a cross-section of traditional rulers and other representatives of oil producing communities in the state.


    NewsSourceCredit: NAN

  •  How to cushion Nigeria s rising debt portfolio LCCI
    How to cushion Nigeria’s rising debt portfolio — LCCI
     How to cushion Nigeria s rising debt portfolio LCCI
    How to cushion Nigeria’s rising debt portfolio — LCCI
    Economy1 week ago

    How to cushion Nigeria’s rising debt portfolio — LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to adopt measures to increase the country’s revenue and borrow from cheaper sources to cushion Nigeria’s debt portfolio.

    Dr Michael Olawale-Cole, President, LCCI, gave the advice in a statement on Monday in Lagos.

    Olawale-Cole said the advice had become necessary because the country’s rising debt stock was becoming increasingly problematic in the face of dwindling revenue and the unsustainable burden of subsidy payments.

    He said that most recent statistics on government revenues showed poor performance and mounting government costs, making it evident that Nigeria was going through a debt crisis.

    He noted that aggregate expenditure for 2022 was estimated at N17.32 trillion; at the end of April, a revenue of N5.77 trillion was expected but only N1.63 trillion was realised as government’s retained revenue.

    Olawale-Cole added that within the same period, government’s actual spending stood at N4.72 trillion; N1.94 trillion on debt servicing, N1.26 trillion on personnel costs, leaving only N773.63 billion for capital expenditure.

    He further said that the country’s total public debt stock rose from N39.56 trillion in December 2021 to N41.60 trillion by the end of the second quarter of 2022, as revealed by the Debt Management Office (DMO).

    He warned that the borrowings were significantly increasing, and Nigeria was struggling to service these debts due to revenue mobilisation challenges and an increased fuel subsidy burden.

    These developments, the LCCI President said, were disturbing seeing that debt servicing alone was higher than actual retained revenue in the first four months of this year.

    “There are already concerns that most, if not all, of the assumptions in the Medium-Term Expenditure Framework (MTEF) 2023-2025 will be missed as we continue to experience unprecedented levels of disruptions to supply chains and agricultural production.

    “The 2022 budget assumptions have already fallen short in terms of inflation, exchange rate, and GDP growth rate and all of these assumptions have become inadequate.

    “Nigeria’s Debt-to-GDP ratio now stands at 23.27 per cent, as against 22.43 per cent on Dec. 31, 2021. “On the path of caution, we urge the Federal Government to discontinue this unsustainable pattern,” he said.

    The industrialist acknowledged that the level of insecurity in the country had prompted increased spending on defence and security. 

    He said that the deteriorating security situation in the country had also battered investors’ confidence and affected foreign exchange inflows into Nigeria.

    He stressed that with the high component of Eurobonds as part of external debt, the current weakening of the naira signified an exchange rate risk likely to put pressure on inflation and its attendant consequences.

    “Nigeria is the only major oil exporter that hasn’t benefited from the windfall of higher global oil prices.

    “The International Monetary Fund (IMF) has warned that debt servicing may gulp 100 percent of the Federal Government’s revenue by 2026 if the government fails to implement adequate measures to improve revenue generation.

    “In the face of rising debt servicing costs accompanied by a dwindling revenue, the provision of critical infrastructure and amenities like healthcare services, education, power, roads, and security will be hard hit as funding shrinks,” he said.

    He noted that recently, the Debt Management Office (DMO) listed N250 billion Sukuk on the Nigerian Exchange Limited (NGX) as an alternative financing source to bridge the infrastructure gap in the country.

    He said the issuance and subsequent listing of the Sovereign Sukuk on the NGX platform aligned with the Chamber’s persistent call for cheaper government financing away from debts by leveraging innovative and cost-effective revenue sources.

    “The Chamber has consistently advised the government to borrow from cheaper sources and consider deficit financing from equity instead of the expensive debts borrowed and used for recurrent expenditures.

    “The commercialisation model proposed for NNPC Limited is the right direction to go.

    “Once this plan succeeds next year, it should be replicated with other national corporate assets scattered across the country.

    “Nigeria must manage its debt burden to avoid further pressure on revenue.

    He said it was also imperative that more spending was needed in supporting productive infrastructure instead of spending borrowed money on subsidising consumption.

    “Government must rethink its sourcing of debts and spending of borrowed funds,” he said.


    NewsSourceCredit: NAN