By Emmanuella Anokam

The Nigerian National Petroleum Company Ltd. (NNPCL) has disclosed that the amount being spent as subsidy on Premium Motor Spirit (PMS), popularly called petrol, had crossed N400 billion monthly.

Malam Mele Kyari, NNPCL’s Group Chief Executive Officer, disclosed this on Friday in Abuja at the ongoing Final Cutover to NNPC Ltd., from being a corporation.

Kyari explained that NNPCL was spending about N202 as subsidy on every litre of petrol consumed across the country.

He added that about 65 million litres of PMS was pumped daily into the market by the NNPCL to keep the country wet.

Kyari said the oil company would continue to meet its obligations by providing PMS for Nigeria, adding that the over N400 billion monthly subsidy had been a severe strain on NNPCL’s cash flow.

According to him, NNPCL is the sole importer of petrol into Nigeria and has continued to play this role for several years running, bearing the huge cost of fuel subsidy.

He said other private oil marketers stopped importing petrol into Nigeria due to the difficulty encountered in accessing the United States dollars, required for the imports of PMS.

“Today, by law and the provisions of the Appropriation Act, there is subsidy on the supply of petroleum products, particularly PMS into our country. In current data terms, three days ago the landing cost was around N315/litre.

“Our customers are here, we are transferring to each of them at N113 per litre.

“That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400 billion of subsidy every month,” he said.

Kyari said that the continuous funding of petrol subsidy by NNPCL had been ongoing without refunds from the Federal Ministry of Finance, Budget and National Planning, despite the fact that subsidy had been budgeted for in the Appropriation Act.

“There is a budget provision for it. Our country has decided to do this. So, we are happy to deliver this, but it is also a drain on our cash flow, and I must emphasis this.

“For as we continue to support this, you will agree with me that it will be extremely challenging for us to continue to fund this from the cash flow of the company when you do not get refunds from the Ministry of Finance,” he said.

He expressed assurance that it would continue to support the country and deliver energy security. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

By Awayi Kuje

The Nigeria National Petroleum Company Limited (NNPC Ltd) will begin drilling of the first oil well in Obi/Keana Nasarawa State on March 21.

Malam Mele Kyari, Group Chief Executive Officer of NNPC Ltd., made the disclosure when he led Management of the Company on a courtesy visit to Gov. Abdullahi Sule on Thursday in Lafia.

Kyari said that the company began exploration activities in the State in 2010 and has technically found petroleum environment in the State.

“We have seen a great potential for finding hydrocarbon in Nasarawa State and to confirm this, we are going to start drilling on March 21.

“We are very optimistic that it would be a successful exercise. It will not end there, once you find oil, you do further works to develop it not just for the benefit of the community around it but for Nasarawa State and the Country,” he said.

Kyari pointed out that the exploration would not be limited to the current Obi/Keana location.

“Once we test this prospect, it opens new roads and we have seen other great prospects across many parts of the State. This will herald history and bring value to all of us,” he added.

The Group CEO thanked the government and people of Nasarawa State for the cooperation and support so far and called for its sustenance.

“Peace and cooperation is essential in oil exploration and we have seen enormous cooperation in this respect – we have seen no danger, no risk to our operation from all stakeholders in our area of operation and we thank them for that,” he said.

He said the company would continue to do its best to bring immediate value to the host community and ultimately to the wider society when oil was found in commercial quantity.

Responding, Gov Sule thanked the NNPC Ltd. boss and his team for the visit and for what they were doing in the State.

He also appreciated the people in the area for their support so far, while urging them to sustain the peace in the area and across the state.

Sule identified insecurity as a major challenge to oil exploration in the country, calling on the people of the state to ensure they maintain peace and support the company for the project to succeed.

He expressed optimism that the drilling of the oil well, named “Ebenyi-A” would be the first in the North Central zone of the country and would bring lots of benefits to Nasarawa State.

In his remarks, Emir of Lafia, Retired Justice Muhammad Sidi-Bage, reassured the NNPC Ltd. on behalf of the people of utmost support towards the success of the project.

“On behalf of our people, we want to say that you will find peace, we have been known for being peaceful, kind and loving. You will not have any reason to feel otherwise within the period of your operation in the state,” Sidi-Bage said.

Also speaking, Sophia Mbakwe, Managing Director, NNPC Energy Services Limited, said the assurances from the government and stakeholders in Nasarawa State was critical to the operation of the company.

“For the right to operate, we need the cooperation, support and blessing of the Governor and the community, and that we have gotten today.

“The intent is that it’s going to benefit both parties and we want to go there to ensure no harm to people, no harm to the environment and be able to commence drilling as planned on March 21,” she said.

The News Agency of Nigeria (NAN) reports that the Mr Muktar Zanna, Executive Director, Frontier Exploration Services of the company had led a team other Executive Directors of the Company on courtesy visit to various Taditional Rulers in the area with hydrocarbon prospects in the State to get their support.

Some of the traditional rulers visited included Alh. Aliyu Dangiwa-Orume, Osuko of Obi; Alh. Abdullahi Agbo, Osana of Keana; Alh. Umar Apeshi, Osoho of Olosoho (Agwatashi), as well as Retired Justice Muhammad Sidi-Bage, Emir of Lafia.

All the Traditional Rulers gave assurances of the peoples’ commitment to peace towards the operations of the company in the state. (NAN)(www.nannews.ng)

Edited by Isaac Ukpoju

By Yusuf Yunus

TotalEnergies Nigeria, said that that it had ended routine gas flaring in Nigeria this year.

Mr Mike Sangster, the Managing Director, TotalEnergies EP Nigeria Ltd., said this at the International Oil Companies (IOC) panel session during the Sub Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos on Wednesday.

Sangster, represented by Mr Victor Bandele, Deputy Managing Director, TotalEnergies EP Nigeria, said that the company had come to stay in Nigeria in terms of gas exploration and production.

The News Agency of Nigeria (NAN) reports that the Sub Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) was organised by the Petroleum Technology Association of Nigeria (PETAN).

Sangster, also in-charge of the Deepwater Assets of Total Upstream Companies of Nigeria, said that TotalEnergies plays active and important role in Gas exploration in Nigeria.

He, however, called on government to create the enabling environment for gas exploration across Africa.

Sangster said that Total changed its name to TotalEnergies to incorporate the entities of the future, adding that it had diversified to Solar Energy Business in Nigeria and Africa.

“We are identifying new opportunities in Nigeria. TotalEnergies is also playing active role in marketing and production as it has 550 filling stations in Nigeria,” he said.

Africa, according to him, is a part of the world that needs energy the most.

“Our company is always committed to working with the government and other stakeholders to actualise the Nigerian government’s goal of net zero emission by 2060.

“TotalEnergies’ own target for net zero is 2050.

“Our path to net zero will involve investment in renewable energies.

“Investments in gas developments as it will serve as transition energy,’’ he said.

He said that company targeted producing low emission oil as it eliminated routine gas flaring in its operations.

“Our plastic recycling plant in Port Harcourt eliminates about 750, 000 cubits of C02 annually, which is equivalent to planning 4,500 trees.

“We have made important investments locally in these areas and implemented several initiatives that are already impacting the Nigerian energy landscape positively.

“In recent years, our projects in Nigeria have been sanctioned with the objective of driving down our green-house gas emissions; and pursuing a zero-flare principle on all our new projects as is evident with OML58 upgrade, Ofon phase 2, Egina, and Ikike.

“Our investment in the NLNG from the beginning till now is partly derived from our commitment to the production of cleaner and better energy.

“Out of our over 530 service stations across the country, more than 112 have been solarised.

“It’s an ongoing programme and our target is to ensure that our stations become fully solarised.

“We have also deployed over 150 residential solar solutions across the country,’’ Sangster added.

He said that over 1.5 million people in Nigeria had been impacted from sale of 400,000 TotalEnergies solar lamps since 2013, according to Global Lighting Off-grid Association estimates.

Sangster added that worldwide, 10 million people had been impacted.(NAN)(www.nannews.ng)

Edited by Gregg Mmaduakolam/Olawunmi Ashafa

By Ella Anokam

The Minister of Information and Culture, Alhaji Lai Mohammed, has underscored the need for Nigerians to understand the beauty and dynamism of culture as a veritable tool for unity and peaceful cohesion.

The minister made this known on Sunday in Abuja at a dinner organised in honour of the Minister of State for Petroleum Resources, Chief Timipre Sylva, on his conferment with a Chieftaincy title of “Sarkin Kudun Hausa” by the Emir of Daura, Alhaji Umar Farouk.

Mohammed said that the honour on Sylva by the Daura Emirate Council was in recognition of his track records in the nation’s oil and gas sector.

He said it was an indication that irrespective of tribe or religion, service to the nation knew no bounds.

Others who gave goodwill messages included the Group Chief Executive Officer, Nigerian National Petroleum Company Limited, Malam Mele Kyari; the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, Mr Gbenga Komolafe; and Crown Prince of Daura Emirate, Alhaji Muhammad Faruk.

They extolled the qualities of the Minister of State for Petroleum Resources, describing him as a loyal ally of President Muhammadu Buhari who has worked for the growth of the nation’s petroleum industry.

Sylva, the “Sarkin Kudun Hausa”, said the honour done to him was beyond his expectation and appreciated all who identified with him.

“From far away Bayelsa State, I was honoured in Daura, Katsina State, an indication that there is a bond cut across culture, ethnicity and religion for national cohesion.

“This is the essence of national unity and diversity. In Nigeria we have programmes like the National Youth Service Corps (NYSC) as a programme which manages our diversity and also Federal Character Commission that manages our diversity too,” he said.

He said the creation of Nigeria by the British amid diverse tribes and religion was no mistake as it was a unifying factor which sustained the nation with its vast and abundant natural resources.

The event was attended by the Chief of Defence Staff, Gen. Lucky Irabor, and Executive Secretary, Nigerian Content Development and Management Board, Simbi Wabote, and other captains of industry.

Others are the two Spokespersons to President Muhammadu Buhari, Malam Garba Shehu and Mr Femi Adesina, the Permanent Secretary in the Federal Ministry of Petroleum Resources, Amb. Gabriel Aduda, and some Royal Fathers.

The News Agency of Nigeria (NAN) reports that Sylva was turbaned on Dec. 22, 2022, as the SARKIN KUDUN HAUSA. (NAN) (www.nannews.ng)

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Edited by Muhammad Suleiman Tola

By Ella Anokam

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will sanction fuel stations that reject the use of Point of Sale (POS) machines or bank transfers at their outlets.

This is contained in a statement by Mr Kimchi Apollo, General Manager, Corporate Communications and Stakeholders Management, NMDPRA, on Thursday in Abuja.

The statement frowned at the act by the retail outlets due to the recent cash crunch brought about by the new Naira design.

“It has come to the attention of the NMDPRA that some retail outlets are not accepting the use of POS machines at their fuelling stations due to the recent cash crunch brought about by the new Naira design.

“The authority frowns at this recent behaviour which is causing untold hardship for Nigerians at a time when all hands should be on deck to assist the government in the transition to the new Naira,” he said.

Apollo therefore directed all retail outlets to ensure the free use of POS and bank transfer for the sale of petroleum products to alleviate the suffering of customers.

He said the authority and security agencies would be at retail outlets to enforce compliance with the directive, warning that defaulters would be sanctioned.

He reitrated commitment of the Authority towards ensuring quality services in the sale and distribution of petroleum products in the country. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

The Federal Government has warned of dire consequences for any individual or groups who attempt to exploit or further cause untold hardship to ordinary Nigerians by disrupting fuel supply and distribution chain.

This is coming on the heels of renewed efforts by the Nigerian National Petroleum Company Ltd. (NNPCL) to maintain the 450.92 million litres weekly evacuation of Premium Motor Spirit to different petrol stations nationwide.

The Minister of State Petroleum Resources, Chief Timipre Sylva, gave the warning on Tuesday in a statement by his Senior Adviser, Media and Communications, Horatius Egua.

Sylva, while reassuring Nigerians of government‘s determination called on security agencies to be on high alert in preventing attempts by subversive elements to cause any disruption during the period of the general elections in the country.

He appealed to Nigerians for understanding, noting that the President Muhammadu Buhari‘s government was sincere with finding permanent solutions to the fuel problems in the country.

He said the government was exploring all options in seeking an end to the fuel problem in the country.

Slyva urged stakeholders in the oil and gas sector to join hands with government in ending the problem.

During a tour of selected petrol stations, in Abuja, on Friday Sylva had expressed government’s satisfaction at the efforts of the NNPCL in ensuring fuel availability to the average Nigerian and urged them to keep up the tempo.

In the last one month, NNPCL has maintained a total weekly evacuation of 450.92 million litres of PMS, a daily average of 64.42 million litres.

Sylva, while calling for a collective support in dealing with the fuel issue said the government felt the pains of the ordinary Nigerian occasioned by the lingering fuel queues.

He said that the relevant government agencies were working round the clock to ensure fuel availability at petrol stations across the country.

“The problems associated with fuel queues in the country is not a problem that came with Buhari’s government but a fallout of long years of rot and decadence in products supply and distribution chain by successive governments.

“Buhari’s administration is addressing the problem holistically, this is the first time in so many years that a government is addressing the problems associated with fuel supply and distribution collectively,’’ he said.

And as part of the move to find lasting solution to the problem, the minister said the Federal Government recently set up a 14-Man committee to get to the bottom of the problem with a view to avoiding future occurrences.

He said the Federal Government had also embarked on refineries rehabilitations neglected over the years with Port Harcourt Refinery at about 65 per cent completion, Kaduna just awarded to Daewo of South Korea and Warri expected to follow soon.

He said the government through the NNPCL acquired a 20 per cent equity stake in the Dangote Refinery had embarked on the licensing of modular refineries.

According to him, it concluded the marginal fields bid and improvement of security along crude pipelines in the Niger Delta region in the last few months, all geared toward increasing crude oil production to meet domestic consumption.(NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

By Ella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says five petroleum industry regulations have been gazetted while six others have been finalised and ready for gazetting.

Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, disclosed this on Monday in Abuja at the third Phase of its Consultation with Stakeholders on Draft Regulations Development as mandated by Section 216 of the Petroleum Industry Act (PIA).

Komolafe listed the regulations gazetted as, the Nigeria Upstream Petroleum Host Community Development Trust regulations; Royalty Regulations; Domestic Gas Delivery Obligation Regulations; Nigeria Conversion and Renewal {Licence and Lease} Regulations and Petroleum Licensing Round Regulations.

The CCE, represented by an Executive Commissioner, NUPRC Mr Habib Nuhu, recalled that thirteen draft regulations were presented for discussion during its first and second phase of consultations with stakeholders in 2022.

He said the inputs of the stakeholders from the engagement were incorporated, where necessary, in the draft regulations.

“Thereafter, the regulations were forwarded to the Honourable Attorney General of the Federation and Minister of Justice for vetting, legislative standardisation, and approval.

“I am happy to inform you that five of the regulations have been gazetted while the remaining six have been finalised and ready for gazetting,” he said.

In furtherance of the above and in compliance with Section 216(4)(g) of the PIA 2021, he said the commission organised yet another Stakeholder Consultation prior to finalising more draft regulations.

He listed them as the Upstream Petroleum Measurement Regulations; Advance Cargo Declaration Regulations; Significant Discovery Regulations; Gas Flaring, Venting and Methane Emissions (Prevention of waste and Pollutions) Regulations and Domestic Crude Oil Supply Obligation Regulations.

The CCE reiterated that the process of formulating the above regulations has been a rigorous and strenuous exercise.

“They are products of critical thinking and evaluation, and hard work by the Commission’s Regulation development Team and the Presidential Implementation Committee on PIA.

“In spite of this however, the process is not complete until the stakeholders’ critical inputs are obtained, discussed, and incorporated, where necessary, in the Regulations,” he added.

He called for a healthy, robust, and intellectual discussion on the regulations during the syndicate sessions to come out with robust regulations with best international best standard.

He said it would ensure that regulations and key policies necessitated by the PIA were developed and gazetted timely so that the industry operators could align their operations with the PIA provisions as quickly as possible.

Mr Kelechi Ofoegbu, Executive Commissioner, Economic Regulation and Strategy Planning, NUPRC, while providing insight into the regulations explained that the measurement regulations would give the regulator the capability of knowing exactly what was produced by different upstream oil operators.

He said, it became necessary to understand the regulation because through the years of production in Nigeria, there has been the quest to know how much we produce and how much we consume, from upstream to midstream to downstream.

“If you ask 10 people in the industry what are your production and consumption numbers, you will get 10 different responses. So nobody takes us seriously, whether is on gas flaring, or whatever. I think that is enough already,” he said.

The engagement had in attendance the Oil Producers Trade Section, Independent Petroleum Producers Association, IOCs, Indigenous Operators among others. (NAN)(www.nannews.ng)

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Edited by Isaac Aregbesola