Chief Timipre Sylva, Minister of State for Petroleum Resources, says there are about 265 illegal refineries in the Shell Petroleum Development Company (SPDC) corridor alone as Nigeria continues to grapple with oil theft.
The News Agency of Nigeria reports that Sylva spoke at the 60th Anniversary of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) on Thursday in Lagos.
The minister, represented by Mr Kamaru Busari, Acting Permanent Secretary, Ministry of Petroleum Resources, said vandalism and oil theft had resulted in Nigeria producing less than one million barrels of crude oil per day.
Sylva said the country’s inability to meet its Organisation of the Petroleum Exporting Countries (OPEC) quota had deprived it of the much needed oil revenue when oil prices were very high in the international market.
He said, nevertheless, the government was engaging host communities, security agencies and deploying technology to address the issue in order to boost investors’ confidence in the sector.
On his part, Malam Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Ltd. (NNPCL), said the company was not unmindful of the current challenges, particularly security in the operational areas and cash call arrears settlement.
Kyari, represented by Mr Dapo Segun, Deputy General Manager, Treasury, NNPCL, however, maintained that the company was resilient and would work with other stakeholders to overcome the security challenges.
He said: “We have deployed creative solutions to tackle security challenges in the operational areas.
“Technological intervention for both monitoring and prompt intervention would also be set up.
The tackling of the menace is a top priority for NNPCL.
“Also, our new governance framework provides us autonomy and opportunity for self-accounting hence cash-call settlement including arrears would be settled and handled promptly going forward.
” Earlier in his address of welcome, Mr Rick Kennedy, Chairman OPTS, said OPTS had made significant contributions to the development of the Nigerian oil and gas industry over the past 60 years.
Kennedy, represented by Mr Osagie Okunbor, Vice Chairman, OPTS, said OPTS members had demonstrated resilience and commitment in the face of economic, security, environmental and funding challenges.
He said: “We have continued to make significant contributions to Nigeria’s development.
“As a group, OPTS member companies account about 90 per cent of Nigeria oil production and contributes significantly to the domestic and export gas production and supply.
“Over the last decade, OPTS member companies accounted for 40-60 per cent of government revenue and 85 to 95 per cent of export earnings.
“OPTS member companies are also proud to have paid tens of billions of dollars in taxes, levies, royalties, rents, and license fees to the Nigerian government.
” Kennedy, who is also the Managing Director, Chevron -Africa Business Unit, said the OPTS companies had also created over 600,000 direct and indirect jobs for Nigerians.
Also, Mr Bunmi Toyobo, Executive Director,OPTS, thanked the 29 companies who were members of the OPTS for their contributions to its achievements in the past 60 years.
“This celebration is to demonstrate our abiding faith in Nigeria as a group and belief in the boundless growth potential of our country, given the enabling environment,” he said.
The Nigerian petroleum industry on Wednesday in Abuja held a night of tributes for the departed Dr Mohammed Barkindo, the Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC).
The News Agency of Nigeria reports that Barkindo passed on in Abuja on Tuesday at the age of 63.
He was buried on Wednesday in Yola, Adamawa State, in accordance with Islamic rites.
Speaking at the ceremony which coincided with the 2022 Nigeria Oil and Gas (NOG) Award, Mr Mele Kyari, the Group Managing Director, Nigerian National Petroleum Company Ltd., said Barkindo’s demise was a shock to the industry.
Represented by Mr Adetunji Adeyemi, the Group Executive Director, Downstream, NNPC, Kyari prayed God to grant the family the fortitude to bear the loss.
Mr Mike Sangster, the Managing Director, TotalEnergies EP Nigeria Ltd., said the loss was for the family, the country Nigeria, the oil and gas industry and the world at large.
Sangster who was represented by Mr Charles Ebereonwu, the Country Communications Manager, TotalEnergies Nigeria, described Barkindo as a humble and hardworking man who made enormous contributions to the oil and gas industry.
“All we can do is to pray for the family for the fortitude to bear the loss and the Almighty God to grant his soul eternal rest,” he said.
Also, Mr Rick Kennedy, the Chairman, Oil Producers Trade Section (OPTS), described Barkindo as a true giant of the industry.
Kennedy said the contributions of the departed global energy leader could not be overemphasised, adding that his death was a huge loss to the sector.
On his part, Mr Osagie Okunbor, the Country Chair, Shell Companies in Nigeria, said Barkindo was an iconic figure in the oil and gas industry whose death came as a very rude shock to stakeholders.
Okunbor said OPEC was able to overcome multiple crisis due to his outstanding leadership, adding that he made Nigeria and Nigerians proud on the global stage.
In his tribute, Mr Simbi Wabote, the Executive Secretary, Nigerian Content Development and Monitoring Board, said Barkindo was a role model and someone worthy to be admired.
“He was the icon of our time. His death is a great loss to Nigeria. God knows best. When our time is up, there is nothing we can do.
“He has played his part and we can only continue from where he stopped,” Wabote said.
Mr Mike Sangster, the Managing Director, TotalEnergies EP Nigeria Ltd., says crude oil theft has become an organised crime which is costing Nigeria about $10 million daily in accrued revenue.
Sangster made the disclosure at the Nigerian Oil and Gas (NOG) conference and exhibition on Wednesday in Abuja.
The News Agency of Nigeria reports that he spoke during the industry leaders panel session on “The Future of Nigeria’s Energy Sector in the Petroleum Industry Act (PIA) Era.”
He noted that the PIA had made provision for the Host Community Trust Fund which was a step in the right direction to empower the local communities and ensure a clear and consistent framework across the industry.
Sangster said this would not put an immediate end to activities of crude oil thieves and pipeline vandals which had transcended into an organised crime and disrupting the operations of oil and gas companies.
He said that TotalEnergies had declared a force majeure on its OML 58 and had stopped production since Feb. 24 due to the vandalism of its oil and gas infrastructure.
Sangster said: “You can see some of the figures in the press! I mean, maybe it’s up to 100,000 barrels per day, which is being stolen.
“With crude oil selling even at $100 per barrel, that means it’s $10 million per day, which has been lost and mainly to the country because you know, NNPC have 60 per cent of most of the joint ventures and we pay tax at 85 per cent.
“That’s a huge loss for the country. So, I think it really needs to be a priority to look beyond the host communities and how we can address the crude safety and eradicate it once and for all.”
Sangster, therefore, urged the government and industry stakeholders to find a lasting solution to the issue of vandalism in order to make Nigeria an investment destination for oil and gas companies.
Also, Mr Rick Kennedy, the Managing Director, Chevron Nigeria Mid-Africa Business Unit, called the institutionalising of the PIA which would define a clear role for industry stakeholders going forward.
Kennedy, who is also the Chairman, Oil Producers Trade Section (OPTS), said traditional oil and gas businesses had a key role to play in Nigeria’s energy transition journey.
“We’re going to transition to more and more gas. I think that we have all agree with that. That’s our transition fuel and with time, other sources of energy. They’ll become economic, they’ll become readily available,” he said.
Kennedy said the transition would happen at different pace for different countries, adding that Chevron remains committed at present to its traditional oil and gas business.
Chevron Nigeria Ltd. (CNL) says it remains committed in the fight against malaria scourge and other communicable diseases in Nigeria.
CNL’s Chairman and Managing Director, Mr Rick Kennedy made the disclosure in a statement on Monday in commemoration of the World Malaria Day marked annually on April 25.
Kennedy said that Chevron had partnered with the Global Fund, non-governmental organisation to fight AIDS, Tuberculosis and Malaria in building resilient health systems in the country.
According to him, the partnership between Chevron and Global Fund is an example of how Chevron is contributing strategically to the development of Nigeria by helping to improve the health of its people.
‘’The 2022 theme: “Harness innovation to reduce the malaria disease burden and save lives” addresses the imperative of collective action toward achieving the 2030 targets of the World Health Organisation global malaria strategy.
‘’Through partnerships, leadership, and financial resources, CNL continues to assist government and institutions in addressing health issues and has recorded significant success in this regard.
‘’Chevron has been one of the largest Global Fund corporate partners and its partnership focuses on capacity development initiatives, joint advocacy and communications campaigns, and other local initiatives.
“Chevron also encourages its staff to share their skills with the local programmes to help improve grant reach and performance,” he said.
Kennedy said that CNL also partnered with other NGOs such as the Corporate Alliance for Malaria in Africa and PATH through the National Malaria Elimination Programme.
He said that the partnership had helped in enhancing the support of the government’s vision to end malaria in Nigeria.
‘’With a new grant from Chevron Corporation, PATH will support the Federal Ministry of Health to inform their decision to adopt the malaria vaccination programme.
‘’Chevron and PATH view the vaccine adoption decision as key to ensuring that any future introduction of malaria vaccines in Nigeria reaches children in greatest need first, ‘’ he said.
Also, the General Manager, Policy, Government and Public Affairs, CNL, Mr Esimaje Brikinn said the company was committed to adding value to communities where it did business.
Brikinn said: ‘’In this regard, we focus our social investments on health, education, and economic development.
‘’Also, we are always open to partnerships that will add value to the living conditions of Nigerians.”
Nigerian National Petroleum Company Limited (NNPC Ltd.) started its week on a positive note as its corporate services unit achieved ISO certifications in Business Continuity Management System (BCMS) and Quality Management System (QMS).
NNPC's corporate services unit known as National Petroleum Investment Management Services (NAPIMS), acquired the certifications as part of its commitment to deploy automation and set global standards for the Nigerian oil and gas industry.
It also launched an electronic materials management solution (e-MMS), a platform aimed at improving synergy between operators in the upstream to save costs, improve production and ensure process standardization across the industry.
Speaking at the event at NNPC Towers, Abuja, NNPC Ltd Board Chair Senator Margery Chuba-Okadigbo said the new NNPC was focused on strategic positioning that would enable it to compete globally.
He noted that NAPIMS' achievement of ISO certifications in BCMS and QMS further attests to the company's commitment to the principles of the Transparency, Accountability and Performance Excellence (TAPE) agenda.
He stressed that automating the system would reduce costs, ensure smooth inventory sharing among industry players, and encourage the revenue-generating auction system.
In his comments, NNPC GMD/CEO Malam Mele Kyari stated that the company's operation was experiencing massive disruption in the form of pipeline vandalism.
He said that the significant ISO certifications around NNPC's business and e-MMS solution can respond positively by providing containment measures to address industry challenges.
Kyari said that with the current situations around the world, there was a need for NNPC to harness today's abundant hydrocarbon resources to build tomorrow's energy.
He stressed that the NNPC would continue to prioritize the development and utilization of gas on its way to becoming a world-class energy company.
Also speaking at the event, Group Chief Executive Officer, Upstream, Mr. Adokiye Tombomieye, noted that NNPC Upstream identified standardization and digitization processes as key elements needed to achieve cost optimization, production and national reserve aspirations. .Mr. Adokiye Tombomieye
Tombomieye said that the Directorate would continue to bring automation in line with industry best practices to eliminate the impact of discretion in decision-making processes.
He stated that NAPIMS had become the first government-run organization in West Africa to receive ISO-22301:2019 certification for Business Continuity Management from RINA, Italy.
Some of the industry stakeholders at the event included the representative of the Minister of State for Petroleum Resources, Dr. Famous Eseduwo, the Director of Human Resources of the Ministry of Petroleum Resources, Mr. Cosmas Iwueze, who represented the President of OPTS, Mr. Rick Kennedy.
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, pledges his support for NNPC initiatives to move the oil and gas sector forward.
Mr. Bala Wunti, Group General Manager of NAPIMS, said that acquiring the certifications had become a means and not an end because the objective was to institutionalize the best processes and standards to achieve profitability and value creation for the benefit of of the Nigerians.
He said that the e-MMS solution provides a transparent exchange platform that leverages data management to serve the material asset needs of players in the oil and gas business, adding that the milestones achieved in the areas of certification and automation were the result of functional collaboration and support from all stakeholders.
The highlight of the event was the virtual and physical presentation of the Director of ISO certificates, RINA, Mr. Alessandro Momei and Mr. Richard Omale of the 3FM Solution, respectively.
Still in the week under review, NNPC Ltd. reaffirmed its commitment to invest heavily in infrastructure development, especially roads, with a view to building a vibrant national economy.
The company stated this at the 7th edition of the Africa Road Builders Trophee Babacar Ndiaye conference held in collaboration with the Federal Ministry of Public Works and Housing in Abuja.
Speaking on the theme of the conference, “Building Roads, Building Economies”. President Muhammadu Buhari, Representative of Works and Housing, Babatunde Fashola (SAN), emphasized the importance of road construction for the Nigerian economy.
He listed the efforts of the Federal Government in the development of road infrastructure throughout the country.
In his presentation, the GMD/CEO, NNPC Ltd. Malam Mele Kyari, who was represented by the Executive Director of Downstream, Mr. Yemi Adetunji, said that NNPC was committed to building a strong economy for Nigeria.
Kyari said it was doing so by intervening in the construction of critical highways across the country under the federal government's Road Infrastructure Development and Renovation Investment Tax Credit Scheme.
He said the intervention was in fulfillment of his main mandate to ensure energy security through the efficient distribution of petroleum products throughout the country, an activity that relies heavily on road transport.
Stakeholders such as the Nigerian Sovereign Investment Authority (NSIA), the Infrastructure Concessions Regulatory Commission (ICRC), the National Association of Road Transport Owners (NARTO) and the Federal Highway Safety Corps (FRSC) made presentations on ongoing road projects.
The Federal Internal Revenue Services (FIRS), Nigerian Liquefied Natural Gas Ltd. (NLNG), Dangote Group and other partners also made presentations highlighting projects aimed at creating jobs and promoting economic activities in the country.
The highlight of the event was President Muhammadu Buhari's announcement as the winner of the 2021 Great Builder Super Prize, the Babacar Ndiaye Trophy during the inaugural Africa Road Builders conference held in Cairo, Egypt in May 2021.
The Africa Road Builders Trophy is named after Dr. Babacar Ndiaye, President of the African Development Bank (AfDB) from 1985 to 1995, who initiated the conference.
The conference is sponsored by (AfDB), to promote the development of road and transport infrastructure in Africa, as well as to encourage African countries to improve roads and transport.
It is also organized to celebrate good examples and reward an African Head of State who achieved exemplary road and transport success in their countries each year.
In another development, Nasarawa Keffi State University (NSUK) described NNPC Ltd. GMD/CEO Kyari as an innovative and transformational leader.
This commendation was presented at the 6th Combined Convocation Ceremony at Nasarawa State University, Keffi, where Kyari was awarded an honorary Doctor of Science degree.
Presenting the award to Kyari, the university's Chancellor and Emir of Keffi, His Royal Highness Alhaji Shehu Chindo Yamusa III, said the NNPC chief had shown excellent leadership in the oil and gas industry through his transformation of the company into a lucrative entity. .
Kyari was represented by the Executive Director of Corporate Services, Hajiya Aisha Farida Katagum.
Also, on the occasion was the Vice President, Professor Yemi Osinbajo, who as a special guest of honor launched the N4 billion endowment fund for some projects in the university.
The projects include: Research Centers in Chemistry and Production, Fice and Business Studies, Sugar, ICT, Agricultural Value Chain and Climate Change.
The Vice President reiterated the need to coordinate efforts in the advancement of science and technological research while applauding the zeal and determination of the University to venture into innovation and robotics.NNPC GMD/CEO, Malam Mele Kyari
Other dignitaries who were honored with doctoral degrees alongside Kyari include: Federation Attorney General and Minister of Justice Abubakar Malami, Immediate Past Governor of Nasarawa State Tanko Almakura, Alhaji Aliko Dangote, Chief Peter Eloka and Alhaji Ali Abdulrazak Balarabe.
The Governor of Nasarawa, Abdullahi Sule, who congratulated all the graduates and awardees for the well-deserved recognition, assured the citizens of the government's commitment to the development of education in the state.
Other dignitaries at the event included the National Chairman of the ruling All Progressives Congress, Alhaji Abdullahi Adamu, members of the state and federal legislature and traditional rulers.
Present to congratulate the GMD were the Managing Director of PPMC, Mr. Isiyaku Abdullahi; NMSL MD, Dr. Mohammed Zango; GGM/SBA to GMD, Mr. Abubakar Nuhu Mohammed; GGM, GPAD, Mr. Garba Deen Muhammad; GM, Shared Services, FES, Mr. Ahmed Ardo; and GMD Business Advisor Ahmed Ibrahim.
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