By Emmanuella Anokam

The Nigerian Association of Road Transport Owners (NARTO) has called off its strike as the Federal Government has announced payment of their bridging claims.

The Federal Government said though NARTO’s issues were purely commercial but its intervention and transportation claims payment (though figure undisclosed) became necessary to ensure fuel availability nationwide and maintain a business friendly environment.

Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), announced this after a meeting with some major oil marketers, hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday in Abuja.

The oil marketers included members of NARTO, Petroleum Tankers Drivers (PTD), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Energies Marketers Association of Nigeria (MEMAN).

Others are: representatives of the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Depot and Petroleum Marketers Association of Nigeria (DAPMAN), among others.

The News Agency of Nigeria (NAN) reports that the meeting was a continuation of the meeting which began on Monday to resolve issues hindering the operations of the oil marketers who embarked on strike.

Fuel queues and emerging scarcity were witnessed at fuel stations in the FCT and nationwide as a result of the suspension of fuel transportation and distribution by NARTO.

The strike was in fulfillment of their threat to suspend lifting of petroleum products nationwide and down tools from Monday due to high cost of operations and maintenance.

NARTO and the oil marketers had complained of the high cost of diesel being used by their trucks to transport products across the country and challenges facing their freight rate payment (bridging claims) among others.

The minister, however, said after due consultation with all stakeholders, they resolved to call off the strike, adding that all the issues they raised had been addressed.

“Going forward we will keep our commitments, we have started payment of some bridging claims as they raised; as we get more money, we will continue to pay them.

“We are also committed; by March we would have been done with the reconciliation to ascertain the level of liability, that will reveal members who have supplied products across the country,’’ he said.

The minister, while thanking the oil marketers for their patriotism and commitment in the industry pledged that the engagement would be sustained to ensure friendly environment for businesses to thrive.

The Chief Executive, NMDPRA, Mr Farouk Ahmed, said the increase in the bridging claims (freight rate) was as a result of the high cost of diesel to fuel trucks to transport fuel.

He said the rate was last increased in March 2022 during the subsidy regime, adding that the price of diesel which was N700 per litre as at that time has increased to N1, 400 currently.

“So, they were requesting increase but as a regulator we are not going to enforce any price increase because the market is deregulated.

“Therefore, they should reach out to the marketers and negotiate on one on one basis. But the marketers were reluctant to negotiate, which resulted to the strike.

“After meeting with the minister, as much as we understand the issues of NARTO, the issues were resolved. We don’t want Nigerians to continue to suffer because they have sacrificed more because of the economic downturn,’’ he said.

Also speaking, NARTO President, Yusuf Othman, said the engagement did not concern pump price of fuel as the price remained the same, but its agitation bothered on freight rate for the transportation of fuel.

“Fuel has to be transported from the depot to stations before being sold, if the amount that is paid is not adequate to move the product to the station you will not find it.

“Going forward, we will continue to negotiate with the marketing companies based on economic realities. The pump price of fuel does not affect the increase in the freight rate,’’ he said.

Othman confirmed improvement in the new rate, though undisclosed, and expressed the hope of receiving the claims before week end.

He urged members to ensure normalcy considering the pains of Nigerians. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on President Bola Tinubu to declare a state of emergency on the country’s refineries, if the economy must be stabilised.

President of NOGASA, Chief Benneth Korie, made the call on Tuesday at a news conference in Abuja, while assessing current developments in the oil and gas sector.

Though the Federal Government had spent about $3 billion in the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, but Korie said that declaring a state of emergency on the nation’s refineries and making them work, would help to retool the economy.

“It is very important that the Nigerian government declares a state of emergency on our refineries. It will help in stabilising distribution price, not just halting importation,” he said.

According to Korie, the Tinubu administration should do whatever is possible to ensure the refineries work and also stabilise the naira against the dollar.

This, he said, was part of the reasons the refineries were yet to work.

“Whatever it will take for the refineries to work, let them work.

“So, the answer to all these increments is for our refineries to start working optimally, and the products should be sold in naira to marketers.

“The reason our refineries are not coming on stream after rehabilitation is the exchange rate.

“They said the Port Harcourt refinery will start working soon. I think that is the reason it has not started refining products.

“Price of the dollar is hampering a lot of things because nobody knows how much to buy and how much to sell.

“They are all waiting for the naira to stabilise against the dollar,” Korie said.

The NOGASA president also called for the reintroduction of bridging claim payment to marketers since the subsidy removal was not yielding any positive result.

He wondered why the government’s projection in the 2024 budget would be N750 to a dollar, while the black market price had moved close to N2,000.

“The dollar might go beyond control if they fail to peg it at the N750 budget estimate.

“We supported the removal of the fuel subsidy but the system is not working well for Nigerians to benefit from it.”

He urged NIMASA and the Nigerian Ports Authority, to henceforth stop demanding payment of services rendered to Nigerians, in dollars.

He said NOGASA members would soon go out of business if things continued the way they were.

“We will all go to jail because of the loans we took from banks with high interest rates of over 30 per cent.

“Move round the country and you will see fuel stations closing shop and being put up for sale; who will buy them? So, the government should look into it before it gets out of control.

“Depot owners are struggling to get money from the banks. Everybody is struggling. Before now, we spent about N1 billion to import a cargo of product, but now, it takes about N15 billion.

“By March 1, we will all run out of business because our members can’t cover their expenses, not to talk about interest; it is a suicide mission,” Korie said.

He urged the government to clear the backlog of unpaid bridging claims still owed oil marketers. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Federal Government has assured to address the concerns of oil transporters and distributors to ensure smooth distribution following the high cost of operations and maintenance of trucks used in the distribution of petroleum products.

Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), made this known Monday in Abuja, when he met with some of the oil stakeholders in the downstream sector.

The stakeholders include members of the Nigerian Association of Road Transport Owners (NARTO), Petroleum Tankers Drivers (PTD), Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

The News Agency of Nigeria (NAN) reports that the meeting became necessary in view of fuel queues which returned to various fuel stations.

This development is as a result of the suspension of operations by NARTO, in fulfillment of their threat to suspend lifting of petroleum products nationwide and down tools from Monday due to high cost of operations and maintenance.

NARTO and the oil marketers had complained of the high cost of diesel which is over N1, 300 per litre required to fuel their trucks for the transportation and distribution of petroleum products nationwide.

A NAN correspondent who went round the city of Abuja disclosed that many fuel stations were not dispensing the Premium Motor Spirit (PMS) known as fuel, while few marketers that were dispensing have long queues and sell between N617 and N675 per litre.

The NNPC Ltd. retail outlets that currently sell at N617 per litre also had long queues, while black marketers were seen on the roads.

The minister however, said the transporters had demonstrated patriotism and assured of constant and sustained engagement to find lasting solutions to their challenges.

“Nigerians are already going through a lot as a result of the circumstances we found ourselves in.

“The issues they raised are basically commercial and as a government, we have to intervene so that Nigerians will not suffer. At the end of the engagement, there will be a solution,” he said.

Speaking with NAN after the meeting, NARTO President, Yusuf Othman, said the meeting was fruitful because the minister appreciated them and assured them of the government’s readiness to tackle their challenges.

“We are not fighting the government and it is not government business anymore to pay us freight rate, rather it is in the hands of the oil marketers.

“The oil marketers also made some increase in the freight rate which should be addressed too. The minister promised to meet with us and the marketers on Tuesday,” Othman told NAN.

NAN reports that the engagement which is expected to find a lasting solution to the challenges continues on Tuesday. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The convener of the Nigeria International Energy Summit (NIES) says it is targeting collaboration among stakeholders for energy sustainability.

James Shindi, Chief Executive, Brevity Anderson, consultant to NIES, said to actualise this objective, the NIES 2024 summit, the seventh in the series, would feature a new session tagged the Nigerian Petroleum Producers’ Forum.

Shindin said in a statement on Sunday that the summit would be a platform for industry leaders to address critical challenges and opportunities facing independent energy producers.

He said it would also be an opportunity to share insights and perspectives on navigating the evolving energy landscape.

He said the session had its sub-theme as “Innovation, Collaboration, and Resilience: Empowering Independent Producers in the Dynamic Energy Era.”

He said this innovative platform would empower independent producers and foster a resilient energy landscape for sustainable growth.

Shindi said the session would address the current challenges faced by independent energy producers, actionable strategies to promote innovation, collaboration and resilience among independent producers.

He said it would also explore innovative approaches to enhance the competitiveness and sustainability of energy producers.

He added that it would highlight the importance of collaboration among stakeholders for mutual benefit and identify policy interventions to support independent producers in navigating the dynamic energy era.

According to him, it will make practical inputs for policymakers to formulate supportive policies and regulations for the independent energy sector; sharing best practices and success stories from different regions.

The event will feature many speakers including Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil) as keynote speaker and Mr Osagie Okunbor, Country Chair/CEO of Shell Companies in Nigeria/Chairman of the Oil Producers Trade Section (OPTS).

Others are: Mr Gbenga Komolafe, Commission Chief Executive Officer of Nigerian Upstream Petroleum Regulatory Commission and the Chairman of the Independent Petroleum Producers Group /Waltersmith Group, Mr Abdulrazaq Isa, who will deliver the opening keynote speech. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Group Chief Executive Officer of Oliserv Group of Companies, Emeka Okwuosa, has highlighted the challenges indigenous oil companies encounter in securing International Oil Companies (IOC)’s divested assets.

Okwuosa listed the challenges in a presentation tagged: “Financing Africa’s Energy Companies”, on Thursday at the ongoing 8th Sub-Saharan Africa International Petroleum and Exhibition Conference in Lagos.

Okwuosa, in a statement identified financial constraints as a major challenge, adding that securing divested assets often involved significant financial resources, upfront payments, investment commitments and OpEx.

Represented by Nnanna Anyanwu, Managing Director of Oilserv, Okwuosa said these had been a hindrance to acquiring those assets, noting that a sizable number of indigenous companies lacked the financial capacity to compete or access financing on favorable terms.

He emphasised the limited access to capital, given the difficulty of accessing capital from traditional sources such as banks, private equity firms, or capital markets who prefer Green energy investments.

“Limited access to capital has drastically affected ability to fund acquisitions, exploration, development, and operational activities.

“Of note, the acquisition of IOC assets often involves a significant technical and operational capacity to effectively optimise fields, facilities, and infrastructure,” he said.

He took a swipe at the regulation and compliance, which he said may have inadvertently added complexity to acquiring and operating divested assets.

“In order to make a success, indigenous companies are to come out with a mechanism to navigate these frameworks effectively in order to secure and maintain ownership of divested assets,” he added.

He also identified inadequate infrastructure, transportation networks, power supply, port facilities, political and security risks which have the potential to affect indigenous companies seeking to acquire divested assets.

“These risks deter potential investors, delay project approvals, increase operational costs, and disrupt development and production.

“Another thorny issue is that of social responsibility . There is need to maintain the balance in the complex community relations and social responsibility issues associated with acquiring and operating divested assets.

“Indigenous player should have significant exposure in terms of engagement and security owing to the historical/legacy matters and socioeconomic challenges.

“There is need for Due Diligence and risk management skills, especially ones associated with acquiring divested assets require robust processes, and access to reliable data,” he said.

Okwuosa said some of these indigenous companies lacked capabilities and resources to perform comprehensive due diligence, assess risks effectively and implement risk mitigation.

Okwuosa, however, challenged indigenous operators on the need to build value and promote investment through capacity building, charging operators to embrace new trends.

“There is need for IOC and government to establish an initiative that will empower and enhance competitiveness, recommending some approaches such as Nigerian Content Development and Monitoring Board (NCDMB),” he said.

The conference was organised by the Petroleum Technology Association of Nigeria (PETAN) with the theme: “The Next Steps: Accelerating African Content”. (NAN)(www.nannews.ng)

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Edited by Vivian Ihechu

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited/TotalEnergies Joint Venture (JV) has achieved zero routine gas flare in all its assets.

This feat was announced on Thursday during an inspection of the Oil Mining Lease (OML) 100 in South-eastern Niger Delta, off Port Harcourt, by a joint NNPC Ltd. and TotalEnergies Team.

The Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye said this in a statement on Thursday in Abuja.

He said the inspection was to ascertain the success of the OML Flare Reduction Project inaugurated in December 2023.

According to Soneye, the achievement is in pursuit of meeting the targets of 20 per cent (unconditional) and 47 per cent (conditional) greenhouse gas emission reduction.

He said the reduction target was contained in the Nationally Determined Contribution under the Paris Accord signed by the President Bola Tinubu administration.

“The NNPC Ltd/TotalEnergies JV, which is the concession holder of four leases, had hitherto achieved zero routine flaring across OML 99 (2006), OML 102 (2014), and OML 58 (2016), leaving OML 100 as the only lease with routine flaring going on.

“The significance of this achievement is that the last routine flare volume of Twelve Million Standard Cubic Feet Per Day (12MMscf/d) of gas, has now been eliminated giving rise to a greenhouse gas emissions reduction of about 341KtCO₂e/yr.

“The achievement is an outcome of a programme introduced by the NNPC Ltd. to galvanise action towards achieving the zero routine flare by 2030 across its portfolio of assets,” he said.

He said the feat achieved was a testament to the NNPC Ltd.’s prioritisation of sustainability anchored on the ‘first R’ of its 5R Strategy (Reduce, Replace, Renew, Re-plant, Repurpose), as it strived to reduce its carbon footprint.

According to him, work is ongoing across all other assets within NNPC Ltd.’s Upstream Directorate to ensure that all assets achieve zero routine flaring by 2030 or earlier. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and Central Bank of Nigeria (CBN) have reviewed the NNPC Ltd.’s decision to domicile a significant portion of its revenues and other banking services with the CBN.

The review was held during a meeting between the Group Chief Executive Officer of NNPC Ltd, Malam Mele Kyari and the Governor of CBN, Mr Olayemi Cardoso, at the NNPC Ltd. towers on Thursday in Abuja.

A statement jointly signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. and Hakama Ali, Acting Director, Corporate Communications Department, CBN, stated that the value created by the decision was for all parties.

According to the statement by Soneye and Ali, the development will provide the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.

“The CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.

“Both parties are also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and to continue to have banking transactions with commercial banks as required,” the statement quoted Soneye and Ali as saying.

Recall that the President had directed that the forex generated from crude oil sales should be deposited directly at the CBN. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne