NNPC Weekly: NMDPRA, NNPC reassure Nigerians on fuel supply
By Edith Ike-Eboh and Emmanuel Afonne
Abuja, Feb. 13, 2022 (NAN) The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) during the week informed the public of the discovery of methanol quantities above Nigeria’s specification in the supply chain of Premium Motor Spirit (PMS), commonly known as petrol.
Methanol is a regular additive in Petrol and usually blended in an acceptable quantity.
In the statement, the Executive Secretary of the Authority Engr. Faruk Ahmed said that to ensure vehicular and equipment safety, the limited quantity of the impacted product had been isolated and withdrawn from the market, including the loaded trucks in transit.
CEO, NMDPRA, Farouk Ahmed
He said that the Authority’s technical team in conjunction with NNPC Ltd. and other industry stakeholders would continue to monitor and ensure adequate supply and distribution of petroleum products nationwide.
Faruk also revealed that the source supplier had been identified and further commercial and appropriate actions shall be taken by the Authority and NNPC Ltd.
He said that NNPC Ltd. and all Oil Marketing Companies have been directed to sustain sufficient distribution of Petrol in all retail outlets nationwide.
Meanwhile, the NNPC Ltd. intensified efforts at increasing the supply of petrol into the market in order to bridge any unforeseen supply gap as it rallies marketers to normalise fuel supply and distribution.
The Chief Executive Officer (CEO) of NNPC, Malam Mele Kyari said this at the end of a meeting with major oil marketers to resolve the issues generated by recent supply and discharge of methanol blended petrol in some depots.
Kyari stated that defaulting suppliers have been put on notice for remedial actions and that the NNPC Ltd. was working with the NMDPRA to take necessary actions in line with subsisting regulations.
He noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.
Kyari noted that as a standard practice for all PMS import to Nigeria, the said cargoes were equally certified by inspection agent appointed by the NMDPRA.
In the meantime, the Flag Officer Commanding, Western Naval Command, Rear Admiral Jason Gbasa, has tasked security task force team “Operation Awatse” manning the system 2B pipelines, to redouble their efforts to stem the incessant products losses on that axis.
Gbasa made the call while playing host to the Group Executive Director (GED), Downstream, NNPC, Engr. Yemi Adetunji who was on a working visit to Lagos on an inspection of downstream petroleum facilities.
Gbasa reiterated that its mandate of ensuring zero products losses was yet to be achieved.
He urged the team to re-strategise and refrain from any acts that would destabilise its operations.
Earlier, Adetunji said that between September and December 2021, the NNPC lost 44 million litres of petrol on that pipeline axis, describing it as a failure on the part of the security team to fulfil its mandate of securing national assets.
The system 2B pipeline stretches from Atlas Cove, Lagos to Ilorin, Kwara State and it is the major artery for transporting products from Lagos to the north, through llorin Depot.
Operation Awatse is made up of the Nigerian Armed Forces – Army, Navy and Air Force, Directorate of State Security (DSS), Nigerian Security and Civil Defense Corps (NCDSC) and a private security company.
Adetunji had visited the Atlas Cove Jetty for an on the spot assessment of the optimisation project and rehabilitation of the facility.
Addressing the contractors, Adetunji commended the Lee Engineering team on the progress of work and urged the firm to ensure that the March 2022 delivery period was achieved.
He also called for constant interface and collaboration between the contracting company as well as the Engineering and Technical Division (ETD) of the NNPC for effective monitoring and supervision of projects.
It would be recalled that the rehabilitation and upgrade of System 2B facilities code named Atlas Cove Depot Optimisation Project (ACDOP) started on May 17, 2017, when the Federal Executive Council (FEC) approved the project.
The Engineering Design, Procurement Construction Installation, Testing and Commissioning of the three PMS Storage Tanks, of 50,000m3 capacity were awarded to Messrs. LEE Engineering and Construction Company limited.
The NNPC Ltd. posted a total of $224.29 million receipt from crude oil and gas export in August 2021 as against $191.26 million in July 2021.
This is contained in the August 2021 NNPC Monthly Financial and Operations Report (MFOR) released on Wednesday.
A breakdown of the figures captured in the report indicated that export of crude oil amounted to $7.77 million while gas and miscellaneous receipts stood at $65.26 million and $151.26 million respectively.
According to the report, the total crude oil and gas export receipt for the period of August 2020 to August 2021 stood at $1.84 billion.
It noted that in the Gas Sector, a total of 233.57 billion cubic feet (bcf) of natural gas was produced in the month of August 2021.
This, it said translated to an average daily production of 7,534.67 million standard cubic feet per day (mmscfd).
For the period of August 2020 to August 2021, it stated that a total of 2,890.67bcf of gas was produced; representing an average daily production of 7,303.61mmscfd during the period.
It noted that Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 57.51 per cent, 20.88 per cent and 21.62 per cent respectively to the total national gas production.
The report also indicated that out of the 208.64bcf of gas supplied in August 2021, a total of 131.35bcf was commercialised, consisting of 40.22bcf and 91.13bcf for the domestic and export markets respectively.
This, it said translated to an average total supply of 1,297.54mmscfd to the domestic market and 2,939.31mmscfd of gas to the export market for the month.
The report further noted that the total gas supply for the period of August 2020 to August 2021 stood at 2,792.28bcf out of which 537.51bcf and 1,245.93bcf were commercialised for the domestic and export markets respectively.
In the Downstream Sector, the report stated that a total of 1.532 billion litres of white products were sold and distributed by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, in the month of August 2021.
A breakdown of the figure indicates that petrol accounted for 99 per cent of total sales, while Automotive Gas Oil (AGO), also known as diesel, accounted for the rest.
Total sale of white products for the period of August 2020 to August 2021 stood at 20.032 billion with petrol accounting for 99.81 per cent.
In terms of value, it said a total sum of ₦203.43 billion was made on the sale of white products by PPMC in the month of August 2021.
“Total revenues generated from the sales of white products for the period of August 2020 to August 2021 stood at ₦2.619 trillion.
“Petrol contributes about 99.76 per cent of the total sales with a value of ₦2.613trillion,’’ it said.
The report also states that in August 2021, 21 pipeline points were vandalised representing 50 per cent decrease from the 42 points recorded in July 2021.
According to the report, Port Harcourt area accounted for 10 per cent, while Mosimi Area accounted for 90 per cent of the vandalised points.
The August 2021 MFOR, the 73rd in the series, highlights NNPC’s activities for the period of August 2020 to August 2021.
In line with the Company’s commitment to the principles of accountability, transparency and performance excellence, the NNPC Ltd. has continued to sustain effective communication with stakeholders.
This is through the publication of the MFOR on its website, in national dailies, and on independent online news platforms.
Still in the week under review, the National Engineering and Technical Company (NETCO), a subsidiary of the NNPC Ltd. empowered 13 youths of Iruland, Lagos State, with various skills.
The empowerment was done as part of efforts to reduce unemployment in Nigeria was a Corporate Social Responsibility (CSR) policy of NETCO aimed at adding value to its host communities.
Speaking at the graduation ceremony recently in Iru, Victoria Island, Lagos, the Managing Director of NETCO, Engr. Johnson Awoyomi, said that the NETCOPRENEUR programme was designed to equip the youth with requisite skills.
Awoyomi said that the skills would enable them to create job opportunities and render quality services for societal development.
The MD, who was represented at the ceremony by the Executive Director, Services, Mr Ahmad Kigo, stated that the training was one of the company’s many CSR initiatives.
He stressed that NETCO would continue to identify with its host community by building the capacity of youths in various fields.
He emphasised the need for active citizens’ participation in nation-building, as government alone cannot handle the issue of job creation for Nigerians.
In his remarks, the Rector, Oluponna Fish Farming and Resource Foundation (OFFER) Centre in Iwo, Osun State, Rev. Fr Bernard Azeez, confirmed that the graduands received rigorous business development training required to help them run small and medium-scale businesses successfully.
The representative of the Catholic Archbishop of Ibadan Archdiocese, Rev. Fr Felix Akinyode, urged the beneficiaries to emulate the act of giving back to society.
Speaking earlier, the Group General Manager, Group Public Affairs Division of the NNPC, Mr Garba Deen Muhammad, stated that NNPC and its subsidiaries would continue to embark on CSR programmes that impact the lives of millions of Nigerians.
The NNPC spokesman, who was represented by the Manager, Community Impact Investment, NNPC, Mrs Doris Ohia, commended the OFFER Centre for the quality training given to the graduands in preparation for the task ahead.
In a similar vein, the Oniru of Iruland, Oba Gbolahan Lawal, who was represented by Chief Bashir Afolami, lauded NETCO’s positive connection with the community, saying that the community was interested in capacity building initiatives for its youths.
Speaking on behalf of the beneficiaries, Mr Sodiq Malik, thanked NETCO and the OFFER centre for the opportunity given to them, while promising to use the skills acquired to develop themselves and that of the society at large.
In a similar development, over 10,000 Students benefited from the Nigerian Petroleum Development Company (NPDC) Limited annual scholarship Scheme for students in tertiary institutions in its host communities.
Dahiru Abubakar, Manager Community Relations, NPDC, said this in Warri during the recently held examination to select beneficiaries for 2022 edition of the flagship Corporate Social Responsibility (CSR) programme.
Abubakar who was represented by the Supervisor, CSR, Noble Imabibi, stated that the number of beneficiaries would increase to 11,000 before the end of the year.
Abubakar also said that the 2022 edition had 337 students spread across three centres in Warri with 170 candidates, Port Harcourt 143 and Egbema with 22 candidates.
The annual scholarship scheme was designed by NPDC to provide access to quality education and capacity development opportunities for students in the host communities.
The programme had fostered peaceful co-existence between NPDC and the host communities.
The Programme Coordinator, Prof. Tawari Fufeyin, who is the Deputy Vice Chancellor, Administration, Federal University of Petroleum Studies, Effurun, commended the NPDC for the initiative.
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Edited by Ismail Abdulaziz