NNPC Weekly: NMDPRA, NNPC reassure Nigerians on fuel supply

NNPC

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said that to ensure vehicular and equipment safety, the limited quantity of the impacted product had been isolated and withdrawn from the market, including the loaded trucks in transit.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

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, Feb. 6, 2022 (NAN) The Nigeria National Petroleum Company (NNPC) Limited had a busy week following the award of honourary doctorate degree on its Group Managing Director (GMD) and Chief Executive Officer (CEO), Malam Mele Kyari.

The award was bestowed on the awardee by Federal University of Technology (FUT), Minna.

Other prominent Nigerians who received the award with Kyari for their selfless service and contributions to national development include Gen. Abdulsalami Abubakar, a former head of state, Prof. Akinwumi Adesina, President of the Africa Development Bank (AfDB) and former Minister of Agriculture, Abdul Samad Rabiu, President of Bua Group was also honoured.

The awards were the climax of the University’s 38th founder’s Day and 30th convocation ceremonies which took place at the university’s main campus, Minna, Niger.

The Vice Chancellor of the University, Prof. Abdullahi Bala said that the awardees deserved the awards.

In his acceptance speech, Kyari pledged to continue to be an advocate and ambassador of the University in every ramification possible while calling on youths and graduands to embrace technology.

The NNPC GMD who was accompanied to the event by some members of the company’s top management team also took time out to commission the Twin Lecture Theatre of the School of Physical Sciences of the institution.

The occasion was graced by some top dignitaries including Niger Governor, Alhaji Abubakar Sani Bello, the Sultan of Sokoto, His Eminence, Sa’ad Abubakar III, the Etspu Nupe and Chairman of Niger State Council of Traditional Rulers, HRH Yahaya Abubakar, and the Emir of Minna, HRH (Dr) Farouq Bahago.

Also in attendance were the Chancellor of the institution, His Imperial Majesty, Oba Aladetoyinbo Ogunlade Aladelusi-Odundun II, Deji and Paramount Ruler of Akure Kingdom and the Pro-Chancellor and Chairman of Council of the institution, Prof. Olu Obafemi among others.

Meanwhile, the NNPC Limited has positioned itself to lead Africa in energy transition following the increasing conversation around the transformation of global energy sector from fossil-based to zero-carbon by the second half of this century.

Explaining the Company’s strategy for a smooth and realistic energy transition, NNPC CEO, Kyari said the NNPC had set the necessary machineries in motion to lead Africa in transition to low-carbon energy and renewables.

Kyari spoke at the 30th Convocation Lecture of FUT, Minna, while delivering a lecture titled “Energy Transition & Energy Accessibility – The New Paradigm”.

He noted that as transition to cheaper energy gains momentum, especially across the developed countries, oil companies must continuously improve operational efficiency and reduce their costs to remain on the playground.

This, he said would guarantee affordable and reliable energy for rapid industrialisation and improve the economic well-being of the people.

He also said that the NNPC Ltd. had started deepening natural gas utilisation under the National Gas Expansion Programme (NGEP) and was currently extending natural gas infrastructure backbone from Ajaolkuta in Kogi to Kano through Abuja and Kaduna, under the AKK Gas Pipeline Project.

The mega AKK pipeline would be fed by both Escravos-Lagos Pipeline System (ELPS) and Obiafu-Obrikom-Oben (OB3) gas pipelines through Oben node in Edo and deliver 2bscf of natural gas to power plants and industrial off-takers along Abuja, Kaduna and Kano.

“As a National Oil Company and a global player, NNPC Ltd is ready to shift to renewable energy; efforts are ongoing to take a firm position in this transition process by institutionalising the necessary enablers for desired success.

“It is against this background that the company advised against putting Africa in the same energy transition speed as the industrialised nations.

“Any attempt to do this, can result in unanticipated collateral damage that can spark energy crisis and deny developing countries access to available and cheaper energy for growth,” Kyari said.

Kyari further explained that in furtherance of its efforts at taking the lead in Africa’s energy transition, the NNPC Ltd had established a Renewable Energy Division and had completely transformed its erstwhile Research &Development (R&D) Division to NNPC Research, Technology and Innovation Division.

“The company is also currently transiting into Energy Company of Global Excellence and therefore welcomes beneficial relationship with the academia and industry experts who demonstrate capacity for productive research and innovation in the energy sector.

“Considering the financial stretch required to transit at the same pace with the rest of the world, what Africa needs is energy transition that addresses energy poverty across the continent and supports the use of comparative and cheaper available energy resources in Africa.

“Attaining this vision will however, require substantial finance which may have to come from diverse sources globally

“Africa is especially endowed with abundant sunshine that can support massive development of renewable energy enough to put the continent on the map of energy sufficient regions of the world,” he added.

In the meantime, the NNPC Ltd. commenced the process of selecting competent Operations and Maintenance (O & M) firms to manage the Port-Harcourt, Warri and Kaduna Refineries upon completion of the ongoing rehabilitation work.

This became realistic with the public opening of bids from the five firms that applied for the contract.

Mustapha Yakubu, Group Executive Director (GED), Refineries and Petrochemicals, NNPC, said at the virtual bid opening that the exercise was part of ongoing efforts by the NNPC Limited to achieve the objective of boosting in-country refining capacity to guarantee energy sufficiency for the country.

Yakubu who was represented by the Managing Director, Warri Refining and Petrochemicals Company (WRPC), Babatunde Bakare, expressed confidence that the ongoing investments in the refineries would benefit all Nigerians.

Also at the event, the Group Executive Director, Corporate Services, Mrs Aisha Katagum, urged the bidding firms to have faith in the foolproof evaluation process, stressing that all stages of the selection would be carried out transparently.

The Group General Manager, Supply Management, Mrs Sohpia Mbakwe, said the tenders were “double envelop submission” that contained both technical and commercial bids from the participating companies.

She emphasised that each firm’s entry would be evaluated based on the strength of its ability to address the technical and commercial peculiarities of the preferred refinery.

It would be recalled that upon the public advertisement of the exercise on Oct. 8, 2021, a total of 52 companies sent in entries out of which, eight were prequalified and five firms successfully submitted according to specifications.

The five firms that bidded for the O &m service contract are Dovewell/Aramis, Daewoo, Petrofac, Technimont, and Pivot/EPROM.

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Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, Jan. 30, 2021 (NAN) The Nigerian National Petroleum Company (NNPC) Limited started its week with the securing of a 5 billion dollars corporate finance commitment from the African Export Import Bank (Afreximbank) to fund major investments in Nigeria’s upstream sector.

For NNPC, securing the facility is a milestone achievement, especially in its bid to scale up investments in the oil and gas industry.

The loan will provide a veritable platform for the NNPC Limited to successfully implement the Petroleum Industry Act (PIA) in the Industry.

The new legislation has provided business opportunities that will enable the NNPC earn more revenue for the country and attract Foreign Direct Investment (FDI) into the Nigerian energy sector.

The loan will therefore serve as a facilitator for the upcoming projects.

Additionally, the PIA has raised stakeholders’ expectations on the company, even as it has given it a wide room to stimulate investments in the oil and gas industry.

Under the NNPC Ltd funding strategy for selected upstream investments, the Company would be raising between $3.5bn and $5bn as corporate finance to fund major upstream investments.

A major outcome of this partnership with Afreximbank is to support upstream capacity to boost energy supply.

There will be acquisition of interests in quality upstream oil and gas producing assets, just as it is projected that this will help facilitate energy supply and transition.

The NNPC by this funding prospect will take over ownership from non-investing partner through acquisition of pre-emption rights in the Sample Joint Venture.

Furthermore, the NNPC’s strategy will also enable the company invest in assets that will address and reduce the issues of integrity, bottlenecking and growth challenges; it will also support the promotion of rig-less activities and drilling campaigns in the Oil industry.

On funding repayment, it is expected that this will be done within a four to eight years’ period with the objective of ensuring major fiscal obligations and appropriate discharge of operating expenses.

Meanwhile, a fall out of the collaboration will be to explore the innovative idea of establishing a Pan-African Energy Transition Bank; NNPC Limited and Afreximbank have agreed to work out the modalities of achieving this objective.

The importance of an African Energy bank cannot be over stated as there is a need to cultivate a pool of investors who understand and appreciate the importance of oil and gas to the economic development of African nations.

Whilst Foreign Capital is desirable, it has hitherto not been reliable in funding oil and gas investment in Africa.

The establishment of institutions as the African Energy Bank will therefore enable local oil and gas companies boost new and existing projects developments, ensure reliable financing channels for oil and gas and position the continent as a net exporter of hydrocarbons, while creating capital opportunities for renewable energy projects.

Afreximbank is a Pan-African multilateral trade finance institution created in 1993 under the auspices of the African Development Bank with the mandate to finance and promote intra- and extra-African trade using three broad services.

The services are credit (trade finance and project finance), risk bearing (guarantees and credit insurance) and trade information and advisory services.

Afreximbank has 50 African member-countries; as of June 2020, the bank had four regional locations and is in the final stages of establishing a fifth regional office for Central Africa.

The Chief Executive Officer of the NNPC Limited Malam Mele Kyari and the Chairman of the Board of Directors and President of Afreximbank, Prof. Benedict Oramah, sealed the epoch making agreement on behalf of their respective institutions in Cairo, Egypt.

Kyari was accompanied on the trip by the Chief Financial Officer, Umar Ajiya; the Group Executive Director, Upstream, Engr. Adokiye Tombomieye; the Group General Manager, NAPIMS, Mr Bala Wunti; the Managing Director, NNPC Trading, Mr Lawal Sade, and others.

In another development, the Federal Government has proposed to extend the subsidy removal implementation period by another 18 months, in a demonstration of concern for economic wellbeing of its citizens.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, said this during a special briefing on fuel subsidy at the Presidential Villa, Abuja.

Sylva said that the extension would provide all stakeholders with the needed time to put in place necessary steps and palliatives that would cushion the effects of the subsidy removal, in line with prevailing economic realities.

Whilst allaying fears of a possible gradual increase in fuel prices in the coming months, Sylva noted that every measure will be put in place to protect Nigerians from hardship.

Sequel to the Ministerial briefing the Senate President, Sen. Ahmad Lawan had convened a meeting of the critical stakeholders, where he urged the Leadership of the Nigerian Labour Congress (NLC) to cancel the planned protest on subsidy removal.

Speaking at the same meeting, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said that the Federal Government reconsidered the planned subsidy removal due to the already heightened inflation.

According to her, removing fuel subsidy at this time would impose more hardship on Nigerians.

This, she said was against the wish of President Muhammadu Buhari.

The minister said before the removal of subsidy, a number of measures would be put in place to cushion the effects of the removal.

This includes deploying an alternative to petrol and increasing the country’s refining capacity among others.

Ahmed also stated that based on the reconsideration of the subsidy removal, the ministry would make appropriate budgetary provision for subsidy after June 2022.

On his part, the CEO of NNPC, Malam Mele Kyari restated the commitment of the NNPC to the energy security of the country.

Stakeholders at the meeting were Senate Leader Yahaya Abdullahi; Deputy Whip Aliyu Sabi Abdullahi; CEO of the Nigerian Midstream and Downstream Regulatory Authority, Farouk Ahmed;  and CEO of the Nigerian Upstream Regulatory Commission, Mr Gbenga Komolafe, an engineer.

Others are the Special Assistant to the President on Natural Resources, Habib Nuhu; Permanent Secretary, Federal Ministry of Finance, Aliyu Shehu Shinkafi, and Permanent Secretary, Ministry of Petroleum Resources, Nasir Sani-Gwarzo.

Still in the week under review, the Federal Government announced plans for the full deployment of autogas in filling stations and the conversion of 200,000 commercial vehicles to run on gas this year.

This is part of measures to cushion the impact of the proposed removal of subsidy on petrol.

Speaking at the meeting with key stakeholders in Abuja by the Minister of State for Petroleum Resources, Chief Timipre Sylva unveiled the 2022 Framework for the deployment of Compressed Natural Gas (CNG) popularly called autogas in Nigeria.

The minister stated that the government was out to ensure that it made available the alternatives required before the removal of subsidy on Premium Motor Spirit (PMS), stressing that the deployment of autogas was one of such key alternatives.

He also stated that the government would be supporting them with 50 per cent of the conversion kits to fast-track the process, adding that additional support as required would be given, going forward.

In the framework, the minister explained that with abundant gas reserves of about 206.53 trillion cubic feet, a population of about 200 million people, and the enactment of the Petroleum Industry Act, which eliminated the continuous absorption of petrol subsidy, it was now vital to deploy autogas.

Three implementation options were highlighted in the document, as the government stated that in the first option, its target was to convert one million public transport vehicles and install 1,000 refueling centres within 36 months.

For the first 18 months it plans to achieve 500,000 conversions and 580 refueling centres supplied by five Original Equipment Manufacturers, among other targets.

In the plan, the government plans to convert 200,000 commercial vehicles this year, including tricycles, cars, mini-buses and large buses.

The cities captured in Phase 1 of the project include Abuja, Kaduna, Kano, Kogi, Kwara, Lagos, Ondo, Oyo, Edo, Delta, Bayelsa, Niger, and Rivers.

Cities under Phase 2 were listed as Sokoto, Katsina, Jigawa, Borno, Bauchi, Gombe, Yobe, Osun, Ekiti, Enugu, Anambra, Imo, Cross River, Abia, Akwa Ibom and Plateau.

The Phase 3 would take care of cities like Kebbi, Zamfara, Yobe, Gombe, Taraba, Adamawa, Benue and Ebonyi.

On the selection criteria for network operators, the government stated that the marketer must own and/or operate a minimum of 21 stations nationwide.

The dealer must own and/or operate a minimum of five stations in each proposed city and must be willing to demonstrate credit worthiness and the ability to pay back within the stipulated timeframe.

Officials of Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, as well as other key players in the downstream sector attended the meeting.

Meanwhile, the CEO/ GMD of NNPC, Kyari has expressed willingness to partner with the Nigerian Communications Satellite Ltd. (NIGCOMSAT) to secure the oil and gas facilities of the company through the various technological innovations of the Satellite Company.

Kyari made this commitment when he hosted the management staff of NIGCOMSAT in his office led by the MD/CEO, Ms Abimbola Alale.

The CEO/GMD of NNPC had during the discussion reiterated the need for a safe and reliable security services for the NNPC facilities especially those in the remote areas.

The GMD also gave assurances that with the new status of the organisation as a limited liability company, NNPC, under his stewardship and the present administration, would ensure that the company work for the good of all Nigerians and the country.

Some of the key projects proposed by NIGCOMSAT includes Communications on the Move (COTM) solutions that allows vehicles with flat panel antenna connecting to NIGCOMSAT Satellite to deliver services in very remote locations

Communications on the Go that allows field workers to deploy Satellite communications in a backpack.

Dedicated Single Channel Per Carrier link; SCPC, as redundancy (business continuity) the NNPC links

And that NNPC migrates their satellite-based private network to NIGCOMSAT Satellite on the C/Ku bands in a managed-services agreement.

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Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, Dec. 19, 2021 (NAN) The Nigerian National Petroleum Company (NNPC) Limited, started the week on a good note with the Chairman, House of Representatives Committee on Petroleum, Downstream, Rep. Abdullahi Gaya, expressing optimism that rehabilitation of Port Harcourt Refining Company (PHRC) plants would be completed on schedule.

Speaking during an oversight visit of the Committee Members to the refinery, Gaya said the visit was necessitated by the need for the lawmakers to assess firsthand the level and quality of work done so far.

This, he said was to ensure that there was value for money in the execution of the project.

Gaya said that members of the Committee also wanted to ascertain if the work was progressing according to timelines to facilitate timely completion of the project and to check if there was need for further intervention for the general benefit of the nation.

He said that the committee was excited at the appreciable level of activity going on in the plant, especially when compared to level of work during the committee’s visit in 2020.

The Committee Chairman said that with the Petroleum Industry Act (PIA) now in force, and the presidential directive for its full implementation within a year, it is expected that the downstream sector would now be independent.

Earlier, the Managing Director, PHRC, Ahmed Dikko, who took members of the committee on a tour of the plants, said the rehabilitation project was aimed at restoring the plant to a minimum of 90 per cent nameplate capacity utilisation.

According to the MD, the scope of the rehabilitation project which will last for 44 months cuts across Process Areas 1, 2, 3 (NPHR) and 5 (OPHR); Power Plant and Utilities; Offsites; Jetty; Wastewater Treatment Plant; Distributed Control System (DCS); Emergency Shut Down (ESD) and Fire & Gas System (FGS); Technical Buildings; Non-Technical Buildings and Pipelines Repairs, etc.

On Health Safety and Environment (HSE) statistics, Dikko said that over 150,000 man-hours have already been achieved on the project with zero lost time injury, zero fatality and zero damage to property.

The Managing Director also informed the lawmakers that the contractor was complying with the provisions of the Nigerian Content Development Act as there was active participation of Nigerian companies as sub-contractors in the project.

Furthermore, he said MoU was signed between the contractor and the Community Leaders to boost cordial relationship between the company and the host communities, detailing expectations by the communities from the contractor.

Dikko said there was zero unrest so far due to the robust community relation engagement between Owner/Contractor and the host communities.

The PHRC Rehabilitation is in three phases.

The First Phase is the Old Refinery, Area 5 scheduled to be completed in April 2023.

The Second Phase is Area 1 and 2 scheduled to be completed in December 2023 and the Phase 11 scheduled to be completed by December, 2024.

Meanwhile, NNPC has pledged to increase supply of Liquefied Petroleum Gas (LPG), also known as cooking gas, in order to bring down its price across the country

The Group Managing Director (GMD)/Chief Executive Officer (CEO) of the NNPC, Malam Mele Kyari, announced this at the inauguration of a 120-metric tonnes LPG storage and bottling plant by Emadeb Energy Services Limited in Abuja.

He, however, explained that the hike in cooking gas price is international issue.

Kyari said the commissioned plant would help to reduce the cost of energy since LPG was cheaper than any other alternative fuel.

He stressed that the Federal Government was committed to providing gas for its citizenry.

The Managing Director/Chief Executive Officer, Emadeb Energy Services, Mr Adebowale Olujimi, urged the government to support LPG investors considering the capital intensive nature of the sector.

In the meantime, the GMD of NNPC, Malam Mele Kyari, has tasked the management of the National Engineering and Technical Company (NETCO) to take advantage of the opportunities provided by the PIA to increase its profitability.

Kyari gave the charge at a two-day Management Retreat organised by NETCO in Lagos with the theme: “Repositioning NETCO for Growth and Profitability in PIA Times”.

He noted that NETCO and other subsidiaries of the NNPC must key into the new mandate of the organisation following the signing of the PIA by President Muhammadu Buhari on Aug. 16, 2021.

The NNPC helmsman said the national oil company has been transformed into a more competitive and commercial entity which would continue to deliver value and dividends to its shareholders.

He said the oil and gas industry was facing huge challenges due to the COVID-19 pandemic and the global energy transition which has reduced investment in the upstream sector.

Kyari, however, noted that the PIA had provided a lot of opportunities to attract investment to the sector which NETCO and other NNPC subsidiaries should take advantage of to increase their profitability.

Also speaking, the Group Executive Director, Downstream of the NNPC and Board Chairman, NETCO, Adeyemi Adetunji, said that the PIA had codified the regulatory, administrative and fiscal framework for the industry.

He said NETCO’s involvement in the NNPC refinery rehabilitation project had put the company on the world map as one of the reputable companies in refinery rehabilitation.

On his part, the Managing Director of NETCO, Johnson Awoyomi, said the retreat was aimed at brainstorming on how to move the company forward in the PIA era.

Awoyomi noted that to align with the reality of the Act, NETCO would focus on cost optimisation in project execution and expand its business portfolio through diversification into other viable sectors of the oil and gas industry.

He said that the company would also intensify construction management activities, technical collaboration to expand its business frontiers and seek more opportunities outside of NNPC, within Nigeria and overseas.

The MD, who commended the leadership ability of the NNPC GMD, said the declaration of N287 billion profit in 2020 by the corporation was a testimony to the management’s cost effective initiatives.

The Executive Director, Operations, Mr Kanayo Odoe and his counterpart, Executive Director, Services, Mr Ahmad Kigo, also spoke about the retreat.

Still in the week under review, the NNPC Limited recorded ₦141.96billion trading surplus for June 2021, compared to a deficit of ₦37.46Billion in May 2021.

This huge leap was contained in the June 2021 Monthly Financial and Operations Report (MFOR)  of the company.

A trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

In June 2021, NNPC Group operating revenue as compared to May 2021, decreased by 9.07 per cent or N89.27billion to stand at N894.64billion.

Similarly, expenditure for the month decreased by 29.32 per cent or N299.44billion to stand at N721.93billion.

Thus, in the period under review, expenditure as a proportion of revenue was 0.81 per cent compared to the figure in May which stood at 1.04 per cent.

The report also indicated that the increase in trading surplus was due mainly to the increased sales of crude oil and gas by the Nigerian Petroleum Development Company (NPDC), an upstream subsidiary of the NNPC, and the increased gas sales and depreciation postings by the Nigerian Gas Company (NGC).

The positive outlook was further bolstered by the performance of Duke Oil and the Nigerian Gas Marketing Company (NGMC) which also added to the improved bottom line.

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

According to the report, plus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

To ensure continuous supply and effective distribution of petrol across the country, a total of 1.63bn litres of PMS translating to 54.50mn liters/day were supplied in June 2021.

In June 2021, 47 pipeline points were vandalised representing 26.56 per cent decrease from the 64 points recorded in May 2021.

Port Harcourt Area accounted for 43 per cent, while Mosimi and Kaduna Areas accounted for 51 per cent and 6 per cent respectively of the vandalised points.

In the gas sector, a total of 223.77billion cubic feet (bcf) of natural gas was produced in the month of June 2021 translating to an average daily production of 7,459.88million standard cubic feet per day (mmscfd).

The 71st edition of the MFOR highlights NNPC’s activities for the period of June 2020 to June 2021.

In line with its commitment to transparency and accountability, NNPC had continued to sustain effective communication with stakeholders through this report via publications on its website, independent online news portals and in national dailies.

Also in the week, the Minister of State for Petroleum Resources, Chief Timpre Sylva charged members of the PIA Implementation working Group not to rest on their oars in the execution of their mandate.

Speaking at the formal inauguration of the group which commenced work immediately after the Presidential accent of the PIA on Aug. 16, 2021, Chief Sylva said that the team must work had to deliver the desired outcome on schedule.

The PIA Implementation working Group which is an offshoot of the PIA Steering Committee is headed by Dr Bello Gusau, the Executive Secretary, Petroleum Technology Development Fund, with members drawn from the agencies and parastatals of the Federal Ministry of Petroleum Resources.

APPRECIATION

As Christmas approaches, the NNPC Ltd wishes to express its appreciation to Nigerians for always heeding its advisories not to engage in panic buying of petrol.

The NNPC is once again giving Nigerians strong assurance that they have product sufficiency that would last far beyond the festive period.

Indeed, stock had risen from a reserve of 1.7 billion litres to over two billion litres within the last one month.

Thus, NNPC once again urges Nigerians not to engage in panic buying but to fully enjoy the spirit of the festive season as they continue to work tirelessly to ensure sufficient supply of petrol to every part of the country.

Once again the NNPC extends sincere appreciations to all Nigerians for their understanding and support.

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ENO/EMAF/ISMA

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Edited by Ismail Abdulaziz

NNPC weekly: Kyari advocate tackling global energy crises with more investment in oil, gas

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, Dec. 12, 2021 (NAN) The Nigerian National Petroleum Company (NNPC) Limited started activities for the week with its Group Managing Director (GMD), Malam Mele Kyari, advocating for more investments in the oil and gas sector to effectively tackle the current global energy crises.

Kyari who made the call while speaking at the 23rd edition of the World Petroleum Congress held in Houston, United States, spoke on the theme: “Building Partnerships”.

He described the choice of the topic as apt because partnership remained an essential component for creating synergy in the delivery of value to various stakeholders and guaranteeing of energy security.

“Our industry is faced with a multitude of challenges, one of which is the requirement for a careful balancing of the aspirations of energy transition and energy security.

“This balance directly impacts energy investments and capital attraction for the development of fossil fuels. The lack of investment capital for oil and gas is already creating energy crises around the world.

“Who would have ever thought that the price of natural gas could sell as high as $60 per MMBtu.

“It is important to pinpoint the fact that the energy and economic security of many resources rich countries is heavily dependent on the development of their hydrocarbon resources.

“This is an important source of generating revenue, providing employment and alleviating energy poverty in these countries while ensuring that the world never lacks the energy it requires to function effectively.”

Kyari told participants at the event that the challenges facing the sector was stifling supply sources, adding that this was what was creating shortage of global energy supply.

He said time had come for all players in the global oil and gas industry to collaborate in creating partnerships for the development of the technologies and funding required to achieve energy transition, energy security and value to shareholders.

The NNPC GMD further explained that the national oil companies as resource owners, needed investment to derive economic value from those resources while investors needed stable markets and regulations to make healthy returns.

He added, “Today, regulation is creating a capex gap, especially to those of NOCs where we see about 50 per cent reduction in investments.

“As technology, innovation, stiff competition for capital and market volatility continue to generate huge waves, the strength in our partnerships, as we transit, will remain our key survival strategy today and in the future.”

Speaking on the Petroleum Industry Act (PIA) 2021, he said through the legislation, Nigeria has renewed its commitment to attracting investments in the oil and gas industry.

“The Act provides the needed improvements in fiscal and governance frameworks, emphasizes transparency and accountability as well as provides a level playing field for all players.

“This is indeed a new dawn for investors as well as our National Oil Company, NNPC, that is transiting to a commercially oriented limited liability company,” he added.

Meanwhile, Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr Sanusi Barkindo, has said that any talks about oil and gas going into extinction in the coming decades are out of order.

Speaking at the 23rd World Petroleum Congress Plenary Session on “Energy Transition: Scenarios for the Future”, in the United States, Barkindo said that neither science nor statistics support that position.

He said that public discourse around energy, climate and sustainable development continues to be extremely emotive, adding that it was evident in Glasgow, with many voices from the petroleum industry excluded from speaking.

“At times, the narrative around the energy transition has been overtaken by emotional outbursts, with rational discussions based on facts, hard data and science, taking a back seat,” he said.

The secretary general stated that the complexity of the challenge calls for an inclusive approach; not the pursuit of a single ‘one size fits all’ panacea, insisting that to reduce emissions required a delicate balancing act, with all voices heard, and listened to.

He argued that focusing on only one of the issues, while ignoring the others, could lead to unintended consequences, such as market distortions, heightened price volatility and energy shortfalls.

Describing climate change and energy poverty as two sides of the same coin, Barkindo noted that the world needed to ensure energy was affordable for all and a more inclusive transition.

According to him, the world will need more energy in the future, with OPEC’s recently released World Oil Outlook (WOO) 2021 seeing global energy demand expanding by 28 per cent by 2045.

“For oil and gas, there are some who believe that these industries should not be part of the energy future, that they should be consigned to the ‘dustbin of history’, and that the future is one that can be dominated by renewables and electric vehicles.

“It is important to state clearly that the science does not tell us this, and the statistics related to the blight of energy poverty do not tell us this either,” he added.

While admitting that renewables were coming of age, with wind and solar expanding quickly, Barkindo said that even by 2045, it is only estimated to make up around 24 per cent of the global energy mix.

He reiterated that oil and gas combined were forecast to still supply over 50 per cent of the world’s energy needs by 2045, with oil at around 28 per cent and gas at just over 24 per cent.

In terms of electric vehicles, the OPEC helmsman stated there was no doubt that they would continue to see expansion in the transportation sector, but that the share of electric vehicles in the total road transportation fleet was projected to expand to only close to 20 per cent in 2045.

He argued that OPEC fully believed that the oil and gas industries can be part of the solution to tackling climate change, and evolving the energy transition.

He listed carbon capture utilisation and storage as well as blue hydrogen and the promotion of the circular carbon economy, to improve overall environmental performance as key to energy sustainability.

Still in the week under review, Vice President Yemi Osinbajo said Nigeria would require investments of up to 410 billion dollars to achieve net-zero by 2060.

He was quoted as saying this by his spokesperson, Laolu Akande who delivered on his behalf, the keynote address at the World Liquefied Petroleum Gas Association (WLPGA) Forum in Dubai, United Arab Emirates.

The week-long event, themed “Energising Tomorrow”, provided the Vice President the platform to further elaborate on critical role of the natural gas, especially Liquefied Petroleum Gas (LPG) would play in addressing the clean cooking challenge, as well providing grid stability to integrate renewables at scale.

In his address, Osinbajo said LPG and natural gas were sustainable energy fuels that could address both climate change and energy poverty simultaneously.

He said the Federal Government had developed an energy transition plan “which showed that achieving net-zero by 2060 would require investments of about 410 billion dollars, above business as usual.”

“The world should not have to choose between energy poverty and climate change as this could be addressed with both natural gas and Liquefied Petroleum Gas as transition fuels alongside other renewable sources.

On Energy transition, Osinbajo disclosed that Nigeria’s energy transition plan was tied to adopting and domesticating all forms of cleaner energy, adding that the use of LPG as a transition fuel was the viable option for the country to address climate change and energy poverty.

He argued that for a gas-rich country like Nigeria, the most viable option in terms of balancing energy security with environmental sustainability would be the use of LPG as a transition fuel.

To this end, he said Nigeria had developed an integrated energy plan with a clean cooking model, which showcased the clean cooking opportunities across technologies such as electric cooking and LPG.

He noted that for countries like Nigeria, which had ample natural resources but was still energy-poor, energy transition fuels must possess certain qualities including affordability, reliability, equity, and inclusiveness.

He emphasised that the implementation of various initiatives and legal frameworks on LPG elevates it as the fuel of choice compared to other competing fuels.

Osinbajo further explained that the government has “consummated collaboration with the European Union (EU) through a study on CO2 savings based on the National LPG Expansion Implementation Programme for clean cooking.”

He therefore urged that “The world should not have to choose between energy poverty and climate change as this can be addressed with both natural gas and LPG as transition fuels alongside other renewable sources.”

In another development, the NNPC has enlisted 17 assets of its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC) for carbon emission reduction under the Leak Detection and Repair Programme (LDRP).

The development comes ahead of the Federal Government’s commitment to attainment of Net Zero by the year 2060.

The exercise which is being executed under the auspices of the European Union Emission Trading system through the European Fuel Quality Directive (FQD) has the potential of earning about €30million cumulatively at net zero cost.

Engr. Jubrin Lawal, Group General Manager, Renewable Energy Division of the NNPC said that the NNPC, through the Division had lined up a bouquet of innovative solutions to support Nigeria’s quest to reduce greenhouse gas emissions in its operations to meet global standards and achieve the net zero target by 2060.

He listed some of the 17 NPDC assets to include Oziengbe-South OML 111, OML40 Onshore, Kukaku/Yeye OML 64, and OML 66 Onshore among others.      

Also in the week under review, the host communities of the Nigerian Gas Marketing Company (NGMC), northern operations, have commended the company for its sustainable development and empowerment programmes.

The commendation was given at the handing over of starter packs to beneficiaries of the women’s skills acquisition programme organised by the NGMC in Lokoja, Kogi state.

Speaking at the ceremony, Otunba Victor Atteh, from Obajana community, said the NGMC’s commitment to the development of its host communities was unprecedented and urged other corporate bodies to emulate the company.

He thanked NGMC for redeeming its pledge to the communities while urging the management to undertake regular monitoring of the progress of the beneficiaries to ensure the programme’s sustainability.

Speaking also, the Managing Director of NGMC, Justin Ezeala advised the beneficiaries to make judicious use of the materials while restating his company’s commitment to the continuous economic empowerment of its host communities.

Represented by the Deputy Manager, Services, Mr Idorenyin Ekpo, the MD expressed gratitude to the traditional leaders and people of the communities for the cordial relationship with NGMC and protection of NNPC’s facilities in their domain.

On his part, the Lead Consultant, Bernard Emekpe, noted that NGMC had given the beneficiaries a life changing opportunity which should be used to change and improve the economic well-being of their respective families.

He thanked NGMC for living up to its mission statement by responding positively to its host communities.

Some of the beneficiaries also bared their minds on the development.

Other community leaders present at the event were Baba Ismaila–Ofunene, Ajaokuta community and Abdulmalik Muktar, Geregu community leader.

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ENO/EMAF/ISMA

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Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, Dec. 5, 2021 (NAN) The Nigerian National Petroleum Company (NNPC) Limited, started another busy week with its Group managing Director (GMD) and Chief Executive Officer (CEO), Malam Mele Kyari harping on the importance of technology and innovation to the survival of contemporary business organisations.

Speaking at a retreat organised by the Company’s Research, Technology and Innovation (RTI) Division in Abuja, Kyari noted that the survival of NNPC as a limited liability company would depend majorly on the innovative ability of the work force.

He therefore tasked NNPC staff on the need to generate new ideas that would align the company with the present-day realities in the petroleum industry.

He reiterated the need to develop a culture of innovation, where people are allowed to make propositions, improve on processes and speak out freely, adding that there is no way that a culture of innovation can be entrenched without leaning towards technology.

Also speaking at the event, the Group Executive Director, Ventures and Business Development, Dr Billy Okoye said that the NNPC was looking forward to RTI to chart a new course for the growth of the NNPC business in tandem with the global reality.

He said that the retreat would provide an insightful perspective that would shape the evolution of the NNPC Limited into a company that Nigerians would be proud of.

On her part, the Chief Innovation officer, Mrs Betty Ugona urged participants to focus on the key priorities of energy transition with particular focus on NNPC’s business sustainability.

She said the new NNPC with the backing of the PIA is focused on innovation towards the demonstration of extended energy forms away from the fossil fuels via technology that have the potentials to out perform the current market leaders.

The chief innovation Officer noted that innovation was the watchword in every corridor of today’s business, while expressing delight that the NNPC through the RTI was not going to be left behind.

The event also had in attendance, the Group General Manager, NNPC Leadership Academy, Mrs Ada Oyetunji

Meanwhile, the NNPC Limited has urged Nigerians to look inwards for the financing of major projects, as this would help to mitigate the effect of stoppage of funds from the international market

The company was of the view that the current global gas crisis was as a result of shortage of investments in the oil sector as activists, investors, and climate change advocates also continue to mount pressure on banks and oil companies to withdraw funding for fossil fuel related projects.

Speaking at the 10th Practical Nigerian Content (PNC) Conference organised by Nigerian Content Development and Monitoring Board (NCDMB), in Yenegoa, Bayelsa State, Adokiye Tombomieye Group Executive Director, Upstream, NNPC, urged Nigerians to look inwards for financing of major projects.

He said there might be no end in sight to the overheating of the oil market, which could even worsen if the required financing of major oil and gas projects continued to lag.

The event was attended by several industry and non-sector players, including the governor of Bayelsa State, Douye Diri, Group Managing Director and Chief Executive officer, NNPC, Malam Mele Kyari and Simbi Wabote, Executive Secretary NCDMB.

Others present at the event were the Country Chair, Shell Nigeria, Osagie Okunbor; Chief Executive Officer, Nigerian Upstream Regulatory Petroleum Agency (NURPC), Gbenga Komolafe attended virtually

Tombomieye, who was represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS) Bala Wunti, said there had been a downward spiral in investment in the oil and gas industry since 2000. But he stressed that with the Petroleum Industry Act (PIA) things would change from 2022

Tagged, “Driving Nigerian Content in the New Dawn of the Petroleum Industry Act,” the NNPC top official, who spoke during one of the sessions, maintained that there is an on-going trend of upward movement in the industry.

“The reason is not far-fetched,” Tombomieye stated, adding, “We have seen the consequence of uncertainty in the industry. Investment and uncertainty never mix.

“Whether we go ahead with the energy transition or not we have already created a monster and that monster is that we now have finance activists, investment activists that have come into the space to create problems for energy investment.

“Energy investment is being attacked and will continue to be attacked in the fossil fuels industry. Investment capital is now very discriminatory against fossil fuels, but not only that, it has become more and more impatient.”

According to the GED, the crunch on finance and investment has not created the new energy crisis across the globe, but has seen the prices of gas skyrocketing in the last few months.

However, he stated that the situation had also brought about significant opportunities for Nigeria, which would now have to look elsewhere to finance major projects.

He said: “If I’m not getting money from JP Morgan and I’m not getting money from Blackwell, if Shell is running away, where else will the money come from.

“And this is a challenge for the service contractors. We know that there should be active collaborations by the service contractors.”

Also in the week, the NNPC’s Advanced Leadership Class 102 donated a borehole to the Sabo – Ido community, a suburb of Abuja, in the Federal Capital Territory (FCT).

Speaking at the commissioning ceremony, the General Manager, Talent Management Department, NNPC, Mrs Fatima Yakubu described the gesture as a demonstration of true leadership on the part of the class members and a reflection of the values impacted in them by the NNPC.

Commending the Class on the gesture, she noted that the essence of leadership was service through problem solving.

On his part, the president of the class, Mr Suleiman Suleiman said they were motivated by the need to address one of the sustainable development goals which was ensuring availability of water and sanitation for all.

The Head of the Community, Alhaji Yakubu Musa, who spoke in Hausa language commended NNPC and members of the class for the gesture.

Still in the week under review, the GMD of NNPC Limited, Malam Mele Kyari, charged the Upstream Directorate to come up with action strategies toward generating the needed resources for energy transition

Kyari who made this charge recently during a two-day intensive retreat organised by the Upstream Directorate of the NNPC in Uyo, Akwa Ibom State, said the task was in line with the global yearning for cleaner energy.

While addressing participants via virtual platform, the GMD said it was important for all business leaders in the Upstream to understand the enormous responsibility placed on the Directorate in realising the energy transition aspiration.

“The upstream sector of our business is the most challenged. But, the key thing is that we must make the money of today so that we can invest in the future.

“Remember that this company’s future lies in the upstream. The upstream must work and the oil and gas of today must produce the money for energy transition.”

He pointed out that close attention should be given to issues of security of assets, financing and stakeholders’ management for efficient operation that would lead to business growth.

Also speaking at the event, the Group Executive Director, Finance and Accounts Directorate and Chief Financial Officer, Mr Umar Ajiya, said with growing in-country refining capacity, the Upstream would likely defy the limitations posed by OPEC and COVID-19 pandemic to grow production.

He advised the Managing Directors of the different Strategic Business Units (SBUs) to focus more on competence and quality delivery to attract jobs outside the system, stressing that their continued existence in the new NNPC structure would depend on their level of profitability.

On his part, the Group Executive Director, Upstream, Mr Adokiye Tombomieye, harped on cost reduction and improved production as key areas of focus to support the GMD and the NNPC in the new fiscal regime of Petroleum Industry Act (PIA).

He enjoined all staff of the Directorate to adopt the principles of transparency and accountability in the discharge of their daily responsibilities.

Earlier in her welcome address, the Group General Manager, Crude Oil Marketing Division (COMD) of the NNPC, Mrs Rose Eshiett, said the retreat was a strategic engagement platform aimed at extracting viable solutions that would help the Directorate achieve its mandate.

In another development, the NNPC Limited has launched its Central Invoice Processing (CIP) Hub.

This is in line with its commitment to efficient service delivery through the automation of its processes.

The Centre was launched within the week by the Company’s Chief Financial Officer (CFO), Mr Umar Ajiya, at the NNPC Towers, Abuja.

Speaking at the event, the CFO said the launch of the CIP was a further demonstration of the Malam Mele Kyari-led management commitment to the principles of Transparency, Accountability and Performance Excellence (TAPE) and compliance with global best practices.

Ajiya described the launch of the CIT as a milestone in the operations of the Finance and Accounts Directorate.

He added that the processing of invoices for contracts and job orders would now be hitch free, on schedule and timely since the manual transmission of invoices by third parties to end users for payment has been eliminated.

Also speaking at the event, the Group General Manager, Treasury, Mr Adedapo Segun, commended the effort and drive of top management and staff of the NNPC towards making the CIP Hub a reality.

He said all stakeholders, especially customers and contractors, would benefit from CIP, and called on them to comply with the process for efficient service delivery and prompt payments of bills.

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ENO/EMAF/ISMA
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Edited by Ismail Abdulaziz