NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, July 4, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its weekly activities with a resolve to quickly end the incessant queues at various filling stations in the Federal Capital Territory (FCT), Abuja.

By this resolution, the company in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stepped up the supply of Premium Motor Spirit (PMS) to the FCT from 70 to 140 trucks to combat the lingering fuel queues.

Speaking to newsmen during an inspection tour of filling stations in Abuja, NNPC’s Group Executive Director, Downstream, Mr Yemi Adetunji, explained that there were enough petrol in the nation’s strategic reserve to last 32 days.

“We have 1.9billion litres of PMS that can last for 32 day. NNPC is making every effort to ensure energy security for the country.

“We have sorted out Lagos. We are working with all relevant stakeholders to bring the situation in Abuja under control; normalcy will be restored in the next few days.”

Speaking earlier, the CEO of the NMDPRA, Mr Farouk Ahmed, said that the improvement in the supply of products from an average of 70 to 140 trucks was made possible by the Presidential approval of a ₦10 freight rate discount increase to petroleum products transporters as part of solutions to the fuel supply challenge.

He charged marketers to play by the rules as NMDPRA would not hesitate to sanction anyone found to be involved in underhand practices.

“We are doing everything to bring the situation to normal. We also want to state that there is no increase in the pump price of PMS, and any such sharp practice will be sanctioned accordingly by the Authority,” he said.

The tour of the filling stations was to monitor developments and ensure compliance.

In another development, Major stakeholders in the downstream sector of the oil and gas industry have suggested ways to mitigate the continuous rise in prices of diesel and cooking gas in Nigeria.

Among the stakeholders who spoke at a public hearing organised by the House of Representatives Joint Committees on Downstream and Gas Resources in Abuja were the Chief Executive Officer of the NMDPRA, Mr Farouk Ahmed and the Group Managing Director/CEO of NNPC Ltd, Malam Mele Kyari.

Leaders of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Independent Petroleum Marketers Association Of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Liquefied petroleum gas (LPG) Gas Marketers Association, among others, were also in attendance.

Fielding questions from members of the committee, Ahmed said that the current geopolitical crisis in Ukraine and Russia had affected the global crude oil supply resulting in the increase of petroleum products prices across the globe.

Ahmed said that the rise in the prices of petroleum products was a global phenomenon and not a local problem peculiar to Nigeria.

He added that the landing cost of petroleum product was also a major factor affecting the price of petroleum products.

“We need to see what can be done to alleviate the suffering of the people.

“If our refineries come back on stream and make foreign exchange available at the official rate of N400 per dollar, things will definitely improve.

“We also need to address the issue of vandalism,” he said.

On his part, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the only way to tackle the rising price of diesel and cooking gas was to increase the production of crude oil.

Kyari said that acts of vandalism of oil facilities have been responsible for the decline in production which in turn was responsible for the unavailability of foreign exchange.

He disclosed that 27,000 barrels were lost in a recent attack on one of the company’s facilities.

According to him, besides the Russia-Ukraine war which is affecting the supply of products across the world, most major oil companies are also shutting down in keeping with global emphasis on the shift from fossil fuels over environmental concerns.

“No one can guarantee stability of petroleum products supply; the world has never seen this kind of uncertainty. Today, countries are stockpiling products.

“Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil but with the ongoing intervention, by the end of July we will restore production to a level that is reasonable.”

The Chairman, House Committee on Downstream, Rep. Abdullahi Gaya, said that there was need to find solution to the high cost of diesel and cooking gas in order to alleviate the hardship on Nigerians.

Some of the lawmakers said that although Kyari and Ahmed candidly presented the worrisome situation the industry was faced with, they, nevertheless unanimously expressed confidence in their ability to bring the situation under control.

The stakeholders present at the hearing include the Independent marketers, suggested a short, medium and long term solutions to combat the challenges.

They also pledged to work with the NNPC and the regulatory agency to redress the situation.

NMDPRA NNPC Proffer solution to Rise AGO LPG Prices.mp4

Meanwhile, the Management of NNPC Ltd. sensitised members of staff to the challenges and opportunities inherent in the transition from a corporation to a limited liability company.

This was in continuation of its stakeholders’ engagement to achieve a smooth transition.

The NNPC GMD/CEO, Kyari, said at a town hall meeting which held at the NNPC Towers, that it was imperative for all staff to embrace the change with courage and look beyond the temporary discomfort to the huge opportunities that lie ahead of the new NNPC.

He commended President Muhammadu Buhari for the courage to have signed the Petroleum Industry Act (PIA) into law, pointing out that the lack of effective regulatory framework and unbridled government interference were responsible for NNPC’s losses in the past.

“NNPC is now free of burden.

“Nigerians are looking up to us, they expect NNPC to lead the way in making profit and adding value for the benefit of the over 200 million stakeholders.”

Kyari said that given the volume of the Company’s assets that was signed and transferred officially on July 1, 2022, by the Ministers of Petroleum Resources and Finance respectively, the new NNPC would be the most capitalised company in Africa and would be poised to announce its first Initial Public Offer (IPO) in the next three years.

He also informed that the company’s financial statement for the year 2021 would be better than that of year 2020 when NNPC reported a profit after tax of 287 billion naira.

In her remarks, the Chairman of the NNPC Ltd., Sen. Margery Chuba-Okadigbo, assured of the Board’s continuous support towards the realisation of the goals of the new NNPC Ltd., while encouraging members of staff to imbibe the concepts of dynamism and creativity required for global competitiveness.

She said that deducing from her experience at the helm of the NNPC Board, she had conviction to endorse the GMD’s policies on transparency and accountability, noting that the company as envisioned by the PIA can only achieve its objectives through firm commitment to excellence on the part of the entire workforce.

NNPC Enlightens Staff on significance of Transition

Also in the week under review, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the marginal oil fields bid rounds kick-started in the year 2020 with the award of Petroleum Prospecting Licences (PPLs) to 161 successful companies.

The commission also officially unveiled the Host Communities Development Regulations and model PPLs.

Speaking at the event in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the presentation of the Licences was part of the implementation of the PIA 2021.

He also noted that the category was being handled for the first time.

The minister who commended the management and staff of the NUPRC for ensuring the successful completion of the process, described the conclusion of the process as a giant milestone for the administration.

“The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.

“As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.

“It is my strong belief that the awardees will take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.

“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,” Sylva said.

He added that the development would boost activities in the oil and gas sector, increase production output and create additional employment opportunities for Nigerians.

On his part, the Chief Executive Officer of NUPRC, Mr Gbenga Komolafe, said that the Marginal Field Bid Round was one of the major tasks inherited by the commission on its inauguration in 2021.

He listed some of the constraints that caused the delay in the conclusion of the exercise to include, the interruption brought about by the COVID-19 pandemic, partial payment of Signature Bonuses by some awardees, and the unwillingness of some co-awardees to work together in forming SPVs for field development.

Recounting the history of the marginal field’s award initiative, Komolafe said that the process which began in 1999 was borne out of the need to entrench the indigenisation policy of the Federal Government in the upstream sector.

He also said that the aim was to boost local content, stressing that since its inception, a total of 30 fields had been awarded with 17 currently producing.

He disclosed that the 2020 Marginal Field Bid Round exercise raked in revenue of about 200 million naira and 7 million dollars into the Federal Government coffers.

Komolafe added that the conclusion of the 2020 Marginal Fields Bid Round brought to an end the era of Marginal Field awards as stipulated by the PIA.

“Section 94 (9) of the Act states that no new marginal field shall be declared under this Act.

“Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act.”

He urged the winner of the marginal fields to take advantage of the current market realities and quickly bring their fields to production, stressing that Nigeria was not benefiting much from the upswing in crude oil prices because of production disruptions occasioned by sabotage, theft, and other operational challenges.

A total of 57 marginal fields were presented in the 2020 bid round out of which 41 were fully paid for and 37 fields were issued with the PPL, having satisfied all conditions for award.

Out of the 665 firms that expressed interest in the exercise, 161 emerged as potential awardees.

Some of the successful companies that received their licences include: Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd., Sigmund Oil Field Ltd., and Shafa Exploration and Production Company Ltd., among others.

Marginal Fields NUPRC Awards Licence to 161 Companies

Still in the week, NNPC Ltd. said it was committed to fast-tracking efforts to identify new gas resources and develop existing ones amidst current global yearning for cleaner fuels.

NNPC also said it was making efforts to identify new gas resources to boost revenues for investment in other sectors of the economy as part of its preparation for the global energy transition.

The NNPC GMD/CEO, Malam Mele Kyari, stated this in a keynote address at the First E&P’s 10th Year Anniversary event which held in Lagos.

The GMD, who was represented virtually by NNPC’s Chief Financial Officer, Mr Umar Ajiya, delivered the address with the theme, “Scarcity in Abundance: How Gas can Enable Energy Access in Nigeria and Africa”.

He said that though Nigeria remains determined to achieve net-zero carbon emission by 2060, there was absolute need to harness the country’s abundant hydrocarbon resources to actualise that objective.

He emphasised that with the enactment of the PIA, and the introduction of such initiatives as the Decade of Gas and the Gas Transportation Network Code, Nigeria sought to open up robust and quick business opportunities for both indigenous and foreign investors in the gas sector.

“I make bold to say that harnessing our abundant resources remains Nigeria’s major pathway towards leveraging gas, the least carbon-emitting fossil fuel, as a transition fuel.

“To this end, massive gas development efforts are ongoing, including the construction of a 614km gas pipeline which is aimed at enabling gas transportation to the North of the country and ultimately beyond Nigeria.”

Kyari also congratulated the Board, Management and Staff of First E&P on the 10th anniversary of the company which he described as “historic milestone”.

NNPC Restates Commitment to Gas Development for Economic Diversification

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

============

Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, June 27, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started it activities for the new week with words of commendation from the Nigeria Extractive Industries Transparency Initiative (NEITI).

The Executive Secretary of NEITI, Dr Ogbonnaya Orji, stated at the first National Extractives Dialogue (NED) held in Abuja, that the NNPC Ltd. was now compliant with transparency regulations and that they had become more responsive to audit queries.

The event was co-hosted by NEITI and Spaces for Change (S4C), an indigenous civil society organisation, with support of the Ford Foundation.

It was designed to provide stakeholders in the extractive industry a platform to discuss the issues of contract transparency, extractive resources benefits sharing and energy transition in West Africa.

In his opening remarks, Orji said NIETI was proud to see that some of the legal reforms it clamoured for were now being implemented in the oil and gas industry with NNPC now more compliant than ever.

“In Nigeria, we have clamoured for reforms; we are proud to witness some of the legal reforms we clamoured for now taking place.”

He stated that the involvement of Spaces for Change in the programme was in line with NEITI’s objective of deepening engagements with credible civil society organisations.

Speaking at the event, the GMD/CEO of NNPC Ltd, Malam Mele Kyari, said that the company had done so much to keep to the tenets of transparency in every area of its operations.

Kyari, who was represented by the Group General Manager, Governance, Risk & Compliance, Mr Chris Akamiro, said NNPC now implements audit recommendations and was keen on expanding the frontiers of its engagement, by reporting information on upstream costs and revenues.

He said that the ongoing transition to a limited liability company was aimed at repositioning the Company in line with global best practices and in preparation for energy transition.

Kyari stated that the natural resources from the extractive industries were only beneficial when they were extracted in a responsible and cost-effective manner, and the revenues accruing were promptly remitted to the coffers of government.

He said that the low performance of the industry in terms of profitability and contribution to the economy was due to opacity which he said prompted the call for action by stakeholders on the need for a more transparent and accountable industry.

In the meantime, the NNPC Greenfield Refinery Ltd. a subsidiary of the NNPC Ltd. revved up engagement with a Chinese firm, Sedin Engineering to set up a 100,000 barrel per stream day co-located refinery at the complex of the Warri Refining and Petrochemical Company (WRPC), Ekpan, Delta State.

The move was part of efforts by the NNPC to boost the nation’s refining capacity with a view to exiting importation and turning Nigeria into a net exporter of petroleum products.

Speaking at the meeting, the Group Executive Director, Refining and Petrochemicals, Mr Mustapha Yakubu, disclosed that engagement with Sedin Engineering had been on for over two years and that the original plan was for the company to establish a number of brownfield refineries across the country.

He said that the original plan had been modified and streamlined over the series of previous engagements to arrive at the establishment of a single 100,000bpsd at the WRPC complex.

He stressed that the firm had commenced feasibility study and that it was the hope of Management to conclude all necessary negotiations speedily so that the project can take off.

In a presentation at the meeting, the Manager, Technical, NGRL, Mr Samuel Ajayi, stated that apart from the proposed co-located refinery by Sedin Engineering, NGRL was working in partnership with other companies to set up two other co-located refineries.

Ajayi said one would be located at WRPC, while the other would be located at the Port Harcourt Refining Company complex in Port Harcourt, Rivers State.

He also said that there would be four condensate refineries and a modular refinery.

The Sedin Engineering Team was represented by Mr Shagaya, Mr Ma and Ambassador Rasak  Lawal, Chairman of Ram Energy.

Also in the week, the GMD/CEO, NNPC, Malam Mele Kyari, reassured the leaderships of the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) that no staff of the company would lose their job on account of the transition.

Kyari gave the assurance at a Transition Consultation Engagement with the national leaders of the unions led by the President of PENGASSAN, Mr Festus Osifo, and President of NUPENG, Mr William Akporeha, which held at the NNPC Towers, Abuja.

This development came ahead of the July 1 date for the commencement of operations as a limited liability company.

According to Kyari, consultations with labour Union is a continuous process as they are critical stakeholders whose input is required to achieve the desired objective of establishing a commercially focused limited liability company with a top-class governance structure.

Kyari said efficient regulatory framework that guarantees energy security, creates prosperity for the common good and benefit of all and sundry.

“The law under new transition guarantees that no one will lose his entitlement, it guarantees a fluid industry to create value chain and add value system that will benefit others more than oneself.”

He informed the labour leaders that the most significant aspect of the NNPC transition was that power should be returned to the workers such that no one can single-handedly take any major decision.

He added that it placed workers and other stakeholders at the centre of the decision-making process for the common good.

In his response, the President of PENGASSAN, Mr Festus Osifo, commended Kyari for piloting the NNPC transition with a human face.

He expressed satisfaction that priority was being given to issues of employees’ happiness and remuneration in the transition process, noting that they were key to the organisation’s output.

Osifo also pledged the total support of PENGASSAN to the NNPC transition process.

“We will partner with you GMD; we are hundred per cent prepared to partner with you to ensure that the transition goes smoothly.

“We have made that commitment that we are going to walk side by side to ensure that all the wonderful and lofty visions that are behind the laws of the PIA, are well delivered.”

Speaking in similar vein, the President of NUPENG, Comrade William Akporeha, expressed total confidence in the capacity of Kyari to give due consideration to matters that were germane to workers’ wellbeing and welfare having been a former union leader himself.

Akporeha also pledged the full support and commitment of NUPENG to the NNPC transition and for all the steps being taken towards guaranteeing energy security to Nigerians.

Still in the week under review, the NNPC Ltd. again applauded the security agencies for their respective roles in ensuring the smooth business operations of the company.

The General Manager, Group Security Department, Abba Mohamed, gave the commendation at the 2nd Quarter 2022 Security Stakeholders’ Meeting organised by the Group Security Department (GSD) of the Company at the NNPC Towers, Abuja.

In his opening remark, Mohamed expressed appreciation to the security agencies for all the efforts made to secure NNPC’s businesses, personnel and facilities.

He said that NNPC cannot do it alone and would continuously require the assistance and collaboration of the security agencies and urged them to continue to support the company, especially at this time of its transition.

He noted that there had been noticeable improvement in the security around NNPC and its businesses since the inception of the quarterly meetings with security agencies.

In attendance at the meeting were representatives of the Nigerian Police Force, the Nigerian Army, Department of State Services, Nigeria Security and Civil Defence Corps, National Drug Law Enforcement Agency, Central Bank of Nigeria’s Security Department and Federal Fire Service.

OPEC Secretary General, Dr Mohammed Barkindo was honoured with the Republic of Austria’s prestigious silver decoration in acknowledgement of his achievements during his two terms as Secretary-General.

The honour which involves a decoration with sash was conferred on Barkindo by the Austrian President, Alexander Van der Bellen, for enhancing the bilateral ties between the Organisation, its host country and the City of Vienna.

The decoration was presented during a visit by the Secretary-General to HE Alexander Schallenberg, Austria’s Federal Minister of European and International Affairs.

The decoration is bestowed on citizens and foreigners who demonstrate outstanding merits and achieve exceptional accomplishments.

It is known in German as ‘das Grosse Silberne Ehrenzeichen am Bande für Verdienste um die Republik Österreich’.

Minister Schallenberg emphasised OPEC’s special position globally as well as in the international community in Vienna.

The Minister also commended the Secretary General on the role he played and the contributions he made to strengthening relations between Austria and OPEC.

In return, the Secretary-General expressed deep appreciation for the decoration and thanked the Austrian Government and people for their continuous support over the last six years, while highlighting Austria’s role as a host in this successful period of the organisation’s history.

“Austria is and will continue to be my second home,” he said.

Barkindo stated that “it is the honour of a lifetime to receive such a decoration.

“This special recognition is bestowed on all Member Countries of the Organisation and the gallant staff of the OPEC Secretariat in Vienna”.

OPEC enjoyed close relations with Austria since it moved its headquarters to Vienna in 1965, five years after the founding of the Organisation.

Meanwhile, the quest by the NNPC Limited to revive the nation’s refining capacity through the rehabilitation of the existing refineries received a boost with the award of the contract for the rehabilitation of the Warri Refinery to Daewoo Nigeria Ltd.

There was also a promise to get the plant back on stream before the end of 2023.

The Managing Director of the Warri Refining and Petrochemical Company (WRPC), Mr Babatunde Bakare, disclosed this at the Quick–Fix Maintenance Service Contract Award Signing ceremony held in Abuja.

He said that the timeline for the completion of Areas 1 and 2 was 12 months from the commencement of work, adding that the refinery would operate at sixty per cent of its installed capacity after the completion of the Fluid Catalytic Cracking Unit, FCC.

Speaking earlier, the NNPC Ltd. GMD, Malam Mele Kyari, tasked the contracting company, Daewoo Nigeria Ltd., on the timely completion of the rehabilitation project.

The GMD who was represented by the Group Executive Director, Refineries and Petrochemicals, Mr Mustapha Yakubu, expressed confidence in the capacity of Daewoo to execute the contract, stressing that getting the refinery back on stream was very important to the economy.

On his part, the chief executive officer of Daewoo worldwide, Baek Jung Wan, who spoke through an interpreter, said his company was willing to work with NNPC to realise the objective of revamping the Warri Refinery.

Baek said that local processing of petroleum products was very critical to the Nigerian economy.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

===========

Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, June 20, 2022 (NAN) The activities of the Nigerian National Petroleum Company Limited (NNPC Ltd.) for the new week started with a cheering news that the company would begin operation on July 1 as a limited liability company.

The operation as a limited liability company is under the Companies and Allied Matters Act (CAMA) and would commence upon the signing of the assets transfer documents by the Ministers of Petroleum and Finance the same day.

The development is in line with the provisions of the Petroleum Industry Act (PIA).

Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC Ltd, Malam Mele Kyari, said at an engagement session with business leaders across the company’s value chain in Abuja that they were working to comply with the provisions of the PIA.

He said NNPC is doing everything possible to ensure compliance with the provisions of the Petroleum Industry Act (PIA) with regards to guidelines and timelines for action.

Kyari said that the new company would become operational with the transfer of verified assets from the Corporation to the NNPC Ltd. by the Ministers of Petroleum and Finance.

He explained that with the level of assets available combined with the new fiscal regime, NNPC Ltd. was set to become the number one energy company in Africa, noting that global brands interested in doing business with the new NNPC Ltd. needed to be sure of the company’s asset base.

On the objective of the session, Kyari stated that it was organised to engage business leaders on issues of change management strategies required to achieve the new business realities as a limited liability entity.

He added that the success or otherwise of the company depends heavily on how the change is managed.

In his presentation, the Chairman of the NNPC PIA Implementation Team and Group Executive Director, Downstream, Mr Yemi Adetunji, said that all was set for the presidential unveiling of the NNPC Ltd., scheduled for July 19.

In the meantime, the Nigerian Gas Company, a subsidiary of NNPC Ltd. has donated state-of-the-art health centres to two of its host communities in Delta State.

This is in line with the company’s Corporate Social Responsibility policy of improving the quality of life of members of its host communities.

The two beneficiary communities, Umu-Eziogoli and Umuseti-Ogbe, in Ukwuani and Ndokwa West Local Government Areas are along the Obiafu-Obrikom-Oben (OB3) gas pipeline project.

Speaking at the inauguration of the health centres, the Managing Director of NGC, Mr Seyi Omotowa, who was represented by the Executive Director, Services, Mrs Uche Ossai, said the company viewed its host communities as partners.

In his remarks, the Secretary to Delta State Government (SSG), Chief Patrick Ukah, represented by Mrs Gladys Priegere, commended NGC for its commitment to the well-being of its host communities through the provision of social and health facilities.

In their goodwill messages, the Chairmen of Ukwuani and Ndokwa West Local Government Areas, who were represented by Mr Okpor Ellais and Hon. Augustine Okom respectively, applauded NGC for contributing its quota to the development of the communities.

They pledged to work in synergy with the State Primary Healthcare Board to ensure that both facilities were put to good use and well maintained.

The traditional rulers of both communities, the Okpala-Ukwu of Umu-Eziogoli, Ossai Uku Okuya, and the Okpala-Ukwu of Umuseti-Ogbe, Sunday Eboh Ogwe, in their separate remarks, appreciated NGC for bringing development to their communities and promised to ensure that members of their communities derive maximum benefit from the facilities.

Also in the week, the NNPC Ltd. called on labour unions in the oil and gas sector to rethink their priorities and engagement model in the light of the PIA and the changes it had brought about in the sector.

The call was made at the 5th Quadrennial Delegates Conference of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), NNPC Corporate Headquarters Branch, Abuja.

Speaking at the event, the GMD of the NNPC Ltd., Malam Mele Kyari, who was represented by the Group Executive Director, Corporate Services, Hajiya Aisha Katagum, urged NUPENG to continue to work with the NNPC Management to consolidate on the gains already achieved so far to ensure a successful transition.

On her own part, the GED, CS, applauded members of the union for their resilience, peaceful conduct and cooperation with the management during the COVID-19 pandemic and helping the company to weather the business storm that adversely affected many organisations globally.

Also speaking at the conference, the National President of NUPENG, Mr Williams Akporeha, commended the management of NNPC Ltd. under Kyari’s leadership for promptly attending to the union whenever the need arises.

Highpoint of the conference was the election of a new Branch Executive Council (BEC) in which Mr Essienette Basseye emerged as the Chairman.

Other members of the new BEC include: Mr Ajibade Oluwaseun who emerged as Vice Chairman, while Mr Mohammed Zakari Ya’u was elected as Secretary.

Positions of Treasurer, Trustee, Financial Secretary, Auditor, Public Relations Officer, and Welfare Officer were also contested and won.

The National President NUPENG, Akporehe, called on the newly elected officers to always have the interest of members of the union at heart and work towards strengthening the cordial relationship between the union and management.

In his remarks, the newly elected Chairman, Basseye, promised to consolidate on the gains achieved by his predecessor in fostering good industrial relations.

Awards were given to various staff of the NNPC Ltd. in recognition of their support for the union.

In the meantime, Libya, a fellow OPEC member country and one of the top oil producers in Africa, called on Nigeria for support to forge a common front on how to react to the move to migrate from dependence on fossil fuels to renewable energy,

The migration from fossil fuels to renewable energy had posed a threat to oil rich nations.

Libya’s Minister of Oil and Gas, Mohamed Aoun, made the call during a visit to the Minister of State for Petroleum, Chief Timipre Sylva at the NNPC Towers.

Aoun noted that there was pressure from all sides by the developed nations to force African nations into the energy transition race in order for them to abandon their abundant energy resources.

“I think definitely there are a lot of areas for cooperation between us because we are some of the countries that have high levels of production.

“With the expertise we have developed over the years, we believe that there is a lot of room for cooperation especially now that the whole world is going into this so-called energy transition.

“They may put us in a difficult situation. They are rushing us into the energy transition while we still have a lot of resources in oil and gas.

“Even the manufacturing equipment that is related to the oil sector may become difficult to obtain. That is also another way to put pressure on us.

“We need a lot of cooperation and unity in the continent to have one voice in this regard.”

Responding, Sylva said Nigeria was already in the forefront of the advocacy not to hurry African nations into energy transition and was in total support of the move to rally African nations to have a common position on the issue.

“I agree with you completely on this issue of energy transition. We have to do it on our own, not what is imposed on us.

“We have a lot of this crude in the ground and even gas, but at the same time we don’t have energy sufficiency, a lot of our people are living without energy.

“They cannot just crowd us out of this sector and move us to the next level. We cannot move at the same pace with the rest of the world. I think we have made this sufficiently clear and they have heard us loud and clear.

“But for me, what is left is to take our destiny into our hands, now it behoves us as Africans to ensure that we have our own source of funding.

“We should also get to the point where we are not dependent on their equipment and equipment suppliers.”

He assured that other oil producing countries in the continent were on the same page and called for more regular meetings under the aegis of the African Petroleum Producers Organisation (APPO) to work out a strategy to tackle the challenges.

The Chairman of the Board of Directors of the NNPC Ltd., Sen. Margery Chuba-Okadigbo called for the participation of more women in the nation’s oil and gas industry.

Chuba-Okadigbo made the call at the Nigerian Content Consultative Forum (NCCF) Diversity Working Group’s Conference in Lagos.

She appealed to the NCDMB leadership to consider replicating its flagship capacity building programmes, Project-100 Module, for the empowerment of Nigerian women in oil and gas industry.

Project 100 is an initiative of the NCDMB in conjunction with the Ministry of Petroleum Resources that seeks to identify and nurture 100 wholly indigenous oil and gas companies to the next level.

This is by enhancing their capacities, supporting them financially through the Nigerian Content Intervention Fund and helping them to find opportunities in the industry, in collaboration with the NNPC.

According to Chuba-Okadigbo, it is imperative to encourage the participation and involvement of women in the oil and gas sector as it is one of the most challenging for women professionals to thrive even though it is a significant contributor to the Nigerian economy.

“I am appealing to the NCDMB leadership to consider a replication of the NCDMB Project 100 Module for women in oil and gas business. We believe this will further help to encourage more women participation in the industry.”

The NNPC board chairperson said there was no better time to promote the conversation around empowering women in oil and gas than now, especially with the passage of the PIA, and with President Muhammadu Buhari graciously appointing women including herself into strategic board positions and executive management positions.

She listed the various barriers to the advancement of women not only in the business world and expressed optimism that the outcome of the conference would lead to significant improvement in the opportunities available to women in the oil and gas industry.

“With these opportunities created from the passage of the PIA and with the sterling support from the public and private sector of the oil and gas industry also partnering with various women groups across the country, I believe it would garner more support for women in the industry.”

The Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Dr Mohammad Barkindo, said that the organisation remains committed to its core values since inception in spite of the challenges in the oil industry.

Barkindo stated this in his keynote address at the Mediterranean Gas (MedGas) event Dinner, at Athens, Greece.

The OPEC helmsman said that over the last six years, the oil industry and OPEC had been faced with a range of challenges, complex and confounding in equal measure.

“Yet, we never wavered from the core values at the heart of OPEC, respect among nations, cooperation, dialogue, and working towards collective solutions.

“I have no doubt that these values can carry us forward to a brighter tomorrow.

“In a few weeks from now, I will complete my assignment as OPEC secretary-general, which began six years ago, on Aug. 1, 2016.

“The pace of change in world events over that time has been staggering. These changes have had major ramifications for the energy industry.”

Speaking on the dislocation that the COVID-19 pandemic caused to the global supply chain system, Barkindo recalled that there was a lot of discussion on nearshoring, onshoring and reshoring, as well as on the impact of rising interest rates and an end to the era of cheap borrowing.

He added that nothing had changed that would be more than the war in Ukraine and the subsequent geo-political fallout, adding that investment patterns that dominated the last three decades were also being put to the test.

The OPEC secretary-general listed the patterns as the idea of corporations opting for cheap offshore manufacturing, slick global supply chains holding costs down and keeping inflation levels low.

“The question now is whether the momentum behind globalisation is shifting toward local sourcing.

“Attention in public discourse has gravitated toward issues such as so-called ‘supply chain sovereignty’ and domestic production facilities.

“The deployment of sanctions and attempts to sever some countries from the global economic system has seen fractures in geopolitics spill into the economic sphere.

“And we should not be under any illusion that the attempt to ‘decouple’ economies or reverse globalisation is a product of the 2020s.”

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

==========

Edited by Ismail Abdulaziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, June 5, 2022 (NAN) The weekly activities of the Nigerian National Petroleum Company Limited (NNPC Ltd.) started with one of its subsidiary, the Petroleum Products Marketing Company (PPMC), brandishing an impressive financial record of N12.95 billion profit.

The profit was for the year ended Dec. 31, 2021 representing a 260 per cent increase over its net profit of N3.59 billion in 2020.

Mr Umar Ajiya, the Alternate Chairman of PPMC Board of Directors and Chief Financial Officer (CFO) of NNPC Ltd., disclosed this during the company’s 32nd Annual General Meeting (AGM) which held in Abuja.

Ajiya said that the leap in profit was due to the adoption of a commercial mindset in the company’s operation, a quality he said was required for survival in today’s business environment.

He disclosed that the company also achieved 85 per cent reduction in demurrage cost from 64.9 million dollars in 2020 to 9.46 million dollars in 2021 due to effective vessels/cargo programming and increased PMS demand.

He noted that the figure surpassed the target of 50 per cent demurrage cost reduction that had been set for the year.

Ajiya listed some of the company’s achievements for the 2021 financial year to include sustenance of products supply sufficiency, zero fuel queues throughout the year with peaceful industrial harmony, and automation of business processes.

On the outlook for the future, the CFO informed that PPMC was looking at expanding its products portfolio.

Also in the week the NNPC Ltd. got the green-light to sign an agreement with the Economic Community of West African States (ECOWAS) for the construction of the Nigeria-Morocco Gas Pipeline.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, who disclosed this said the Federal Executive Council (FEC) gave the approval at its weekly meeting presided over by Vice-President Yemi Osinbajo in Abuja.

Speaking at a press briefing after the meeting, Sylva explained that the cost of the Nigeria-Morocco Gas Pipeline was yet to be determined as it was still at the Front End Engineering Design (FEED) stage which normally precedes cost evaluation.

“The ministry of petroleum resources presented three memos to the council.

“In the first memo, the council approved for the NNPC Ltd. to execute MoU with ECOWAS for the construction of the Nigeria-Morocco gas pipeline.

“This gas pipeline is to take gas to 15 West African countries and Morocco and through Morocco to Spain and Europe.”

According to the Minister, FEC also approved the sum of N3.8 billion for the construction of a switch-gear room and installation of power distribution cables and equipment for the Nigeria Oil and Gas Park in Ogbia, Bayelsa State.

He said the park was designed to support local manufacturing of components for the oil and gas industry.

He said the third memo approved by FEC was for various contracts including the construction of an access road and bridges to the Brass Petroleum Product Terminal (BPPT) in the Niger Delta for N10.5 billion including 7.5 per cent Value Added Tax (VAT).

Still in the week under review, the Federal Government gave the assurance that works on two of the roads funded by the NNPC Ltd. under Tax Credit Scheme would be completed between January and May 2023.

The projects are Section II of the Suleja – Minna Road and the Agaei – Baro Road which are for dualisation and construction respectively.

Director Highways Construction and Rehabilitation, Federal Ministry of Works and Housing, Mr Folorunsho Esan, gave the assurance during an inspection tour of the roads.

A statement by the Director of Press and Public Relations, Ministry of Works and Housing, Blessing Lere-Adams, disclosed that the Ministry was satisfied with the pace and quality of work on the roads.

On the Suleja – Minna Road, Esan was quoted as saying: “My impression is that the contractor is on the site making progress and we can see the various aspects of work, the earthwork, the pavement work and even the asphalt laying is going on smoothly.

“The only challenge is that of security but it is being taking care of with the presence of security agents”.

Speaking on the 52-kilometre Agaei – Baro Port Road which connects the Lambata – Bida highway, Esan said: “Work is progressing, 14kilometres have been asphalted, earthwork is up to 32 kilometres and the rest which is about 18 kilometres is still outstanding but we have the assurance that the work will be delivered on target”.

The Director said the road when completed would boost the economy of the North Central region in particular and the nation in general as it led to the Baro Port through which goods and services can be brought into the country and exported to other countries.

The two roads were among the other 21 critical roads selected for funding by the NNPC because of their importance to the economy of the nation, especially in terms of the movement of petroleum products across the country.

The contractors working on both projects also expressed confidence that the projects would be completed and delivered on target as funding was readily available.

The Chief Financial Officer of the NNPC Ltd., Mr Umar Ajiya, said within the week that the NNPC-Gas and Power Investment Company (NGPIC) would leverage on the opportunities provided by the Presidential Power Initiative (PPI) roadmap for the electricity sector to boost company’s cash flow.

This is in line with the current reality of the Petroleum Industry Act (PIA),

Speaking at the 2nd Annual General Meeting (AGM) of the NGPIC, Ajiya, who is also the Chairman of the company’s Board of Directors, said NGPIC was determined to harness the potentials in both brownfield and greenfield portfolios to expedite business growth.

He disclosed that having achieved significant milestones in the Brass Fertilizer and Petrochemical Project, NGPIC would soon sign the Financial Closure agreement to commence the Engineering Procurement and Construction (EPC) of the integrated 10,000 Metric Ton Per Day (MTPD) Methanol Plant.

While commending the management and staff of the company for their commitment to the growth and development of the company, Ajiya urged all stakeholders to put in more effort towards improving on the current profit after tax, which stood at 1.81 billion naira for the year ended Dec. 31 2021.

Ajiya listed some of the achievements of NGPIC to include, completion of its 2nd Audited Financial Statements with improved profitability; completion and successful synchronisation of two Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant at Kwale, Delta State.

Others were the production of additional 320MW from the Phase 2 of the 450MW IPP ready to be wheeled into the national grid; and the take-over of management of Okpai and Afam VI JV IPPs for business profitability, among others.

Speaking on the contributions of the company to the overall objective of the NNPC, the Managing Director of NDPIC, Dr Jamari said efforts were on to position the business entity towards becoming strategic revenue stream, emphasising that NGPIC had enough potentials to increase the bottom line of the nation’s oil company.

“One thing I will assure the public is that by the time we conclude our activities in terms of acquiring some additional power plants and building some others, this and company will be the strongest company in future in the portfolio of subsidiaries of the NNPC Ltd”.

NNPC Gas Power Investment Company Ltd. (NGPIC) is a subsidiary of the NNPC Ltd.

It was incorporated on July 21, 2016 and commenced business in 2020 with main focus on power generation and other gas and power investment services.

In the meantime, CEO/GMD NNPC Ltd, Malam Mele Kyari, reiterated his commitment to sustain the strategic energy partnership between Nigeria and Spain.

Kyari disclosed this while addressing Nigerian and Spanish business leaders on investment opportunities in the Nigerian Oil and Gas Industry, in Madrid, Spain, on the sidelines of President Muhammadu Buhari’s state visit to Spain, Wednesday.

Buhari had earlier met with the Spanish President, Pedro Sanchez, King of Spain, His Majesty, King Filipe VI, and gave a speech at the headquarters of the World Tourism Organisation (WTO), in Madrid.

During the visit, Buhari said Nigeria looked forward to increasing bilateral relations with Spain, even as he signed bilateral agreements and Memorandum of Understanding (MoUs) with the Spanish leader, covering areas of prisoner transfer, sports and culture and the economy.

Describing the partnership between Nigeria and Spain as an important one for the NNPC, GMD/CEO said “26 per cent of all LNG produced in Nigeria end up in Spain, while 14 per cent of all Crude Oil produced in Nigeria end up in this country; clearly for us as a business, it is an important market for my company.”

Kyari explained that the world would need energy for today and for the future, in industries such as power, IT and automobile.

“We know that energy transition is real. We know that net-zero by 2050-2060 is real.

“But it doesn’t mean zero hydrocarbons in 2050-2060; it means that you are going to have a cleaner use of hydrocarbons,” Kyari added.

He said investors must see where their money can come out from and when they invest, they must see that they can recover their cost and make some margin from it.

While noting that in line with global acceptance of gas as a transition fuel, Nigeria had since declared 2021-2030 as the decade of gas.

“In our country today, we have a legislation that has clearly created a commercial National Oil Company which will be unveiled by our President in the coming days.

“Together with the Spanish business community, I am confident we can build this industry,” Kyari said.

Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) raised Nigeria’s oil production quota from the 1.772 million barrels per day (mbpd) target approved in June to a new target of 1.799mbpd for July.

A statement issued by OPEC said the decision was taken at its 29th OPEC and non-OPEC Ministerial Meeting.

The new target is 27,000bpd higher than the approved quota for June.

According to the statement, OPEC+ also adjusted upward the monthly overall production by 648,000bpd for the month of July with a target production of 43.206mbpd.

The statement said: “The 29th OPEC and non-OPEC Ministerial Meeting was held via videoconference on June 2.

“The meeting noted the most recent reopening from lockdowns in major global economic centres. It further noted that global refinery intake is expected to increase after seasonal maintenance.

“The meeting highlighted the importance of stable and balanced markets for both crude oil and refined products”.

It said the meeting extended the compensation period until the end of December as requested by some underperforming countries, and requested that underperforming countries submit their plans by June 17.

The statement added that the meeting directed that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

The figure is 70,000bpd higher than the average crude oil production in April, which stood at 1.35mbpd.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

============

Edited by Ismail AbdulAziz

NNPC

By Edith Ike-Eboh/Emmanuel Afonne

Abuja, May 29, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the new week with a meeting with major marketers of petroleum products in the nation’s downstream sector.

The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid diversion of petroleum products.

The meeting which held at the NNPC Towers, Abuja, had in attendance the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Independent Marketers, on the need to curb products diversion.

The Group Executive Director, Downstream who was represented by the Managing Director (MD), Petroleum Products Marketing Company (PPMC), Mr Isiyaku Abdullahi, said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce burden of high evacuation costs on government in terms of under-recovery.

Abdullahi said that the company was concerned that in spite of the high truck-out of Premium Motor Spirit (PMS) from depots across the country, the market was still experiencing shortfalls, noting that diversion of products had been identified as a likely reason for the gap.

He appealed to the marketers to activate the Corporate Social Responsibility (CSR) component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria.

Abdullahi stressed that such gesture would help in cushioning the effect of the current global energy crisis.

On his part, the Executive Secretary of MOMAN, Mr Clement Isong, said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products, especially at a critical time when the world faced inflationary problems.

Speaking in a similar vein, the Executive Secretary of DAPPMAN, Mr Clement Isong, expressed satisfaction with the outcome of the meeting, assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country.

Meanwhile, the NNPC Ltd. cautioned that the current price volatility in the global energy was likely to worsen if banks and other financial institutions continue to avoid funding gas projects.

The Group Managing Director/Chief Executive Officer of NNPC Ltd., Malam Mele Kyari, gave the warning at the 28th World Gas Conference 2022 which held at Daegu, South Korea.

Kyari who spoke against the backdrop of stifling funding for new oil and gas projects due to environmental concerns said: “In many jurisdictions, gas is nearly always associated.

“So, you have to turn the table to see if you can get non-associated gas so that banks and financial institutions can put their money into it.

“If that doesn’t happen, then you sure have the constraints of financing and the opportunity will now turn into a crisis.

“I think that is what we are trying to solve to see how we can turn this so that the facility that we are building or the facilities we are going to build will have enough gas to process and deliver into the market.

“Honestly, it is a huge opportunity for the financing sector, I know for sure in our own perspective we have seen a number of projects that can come up very quickly.

“Mostly, the LNG facilities where you can convert gas to chemicals and these are really coming up in their numbers across many National Oil Companies (NOCs) that I am aware of.

“The immediate future is getting the right financing, the right mix, and also for the finance institutions to recognise that except they invest today, what we are seeing today in terms of pricing can be something much more to manage in the next two three years to come.”

Kyari said the NNPC Ltd. was not averse to the push for carbon neutrality, adding that funding gas projects was a vital decision to be made to avert future crises.

At the 26th Conference of Parties (COP26) which held in Glasgow, Scotland in 2021, African countries advocated for energy justice in the drive for transition to cleaner fuels.

In another development, the NNPC Ltd. set record as the first exploration and production company to acquire environmental audit certification in the Federal Capital territory, Abuja, since the Environmental Impact Assessment (EIA) law was establishment about 30 years ago.

The attainment of this feat by the Company was disclosed by the Permanent Secretary of the Federal Ministry of Environment, Mr Hassan Musa, during the presentation of a certificate of Environmental Audit to the NNPC at the NNPC Towers, Abuja.

The Permanent Secretary who was represented by the Director, Environmental Assessment, Dr Abbas Suleman, commended the NNPC for its consistency and commitment to environmental global best practices.

Hassan stated that though environmental audit was a legal requirement by federal law, the bold step taken by the current NNPC Management to carry out an environmental impact assessment of the NNPC Towers reinforces the company’s reputation as a law abiding and responsible corporate citizen.

Narrating his experience with the company during the audit exercise, the Permanent Secretary said that he saw firsthand the Management’s commitment to performance excellence, adding: “NNPC does its things gently, quietly and steadily with the whole idea of achieving positive results”.

Speaking at the event, the Group Executive Director (GED) Corporate Services, Mrs Aisha Katagum, who was represented by the Group General Manager, Human Resources, Mr Yinusa Yahaya, appreciated the Federal Ministry of Environment for the honor of implementing the audit process.

She also appreciated the award of the certification to NNPC, especially at this crucial stage of the Company’s transition from a corporation to a limited liability company.

Still in the week under review, the NNPC Ltd. and its partner, Sahara Group, took delivery of two 23,000cubic meters Liquefied Petroleum Gas (LPG) vessels for their joint venture company, WAGL Energy Ltd.

The event which held at the Hyundai MIPO Shipyard in Ulsan, South Korea, also witnessed the official naming of the vessels as Mt Sapet and Mt BaruMK.

Speaking at the occasion, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the investment in the LPG carriers was part of efforts to deepen domestic gas utilisation in keeping with the Federal Government’s aspiration to use gas as the linchpin to drive the nation’s economic and industrial growth.

He disclosed that an order for three additional new vessels was at an advanced stage, adding that “we have a target of delivering 10 vessels over the next 10 years”.

On his part, the Executive Director of Sahara Group, Mr Temitope Shonubi said WAGL successfully operated two mid-sized LPG Carriers – MT Africa Gas and MT Sahara Gas in the region and had delivered over six million CBM of LPG across West Africa, while keeping to global standards.

“With the new vessels, we are set to promote and lead Africa’s march towards energy transition,” he said.

The two new vessels, Mt Sapet and Mt BaruMK, were expected to sail out in June and September 2022 and would increase WAGL’s total fleet to four.

All four vessels were built by Hyundai MIPO Dockyard, a foremost global manufacturer of mid-sized carriers.

WAGL Energy Limited is a joint venture company between NNPC and Oceanbed (a Sahara Group Company) which is driving NNPC’s five-year $1 billion investment plan announced in 2021 to accelerate the decade of gas and energy transition agenda.

Also, at the event were the Ambassador of Nigeria to South Korea, HE Aliyu Magashi; NNPC Group Executive Director, Gas & Power, Mr Mohammed Ahmed and Group Executive Director, Upstream, Mr Adokiye Tombomieye, and other dignitaries.

In a related development, the GMD/CEO of NNPC Ltd, Malam Mele Kyari called on oil and gas companies operating in Nigeria to invest more in gas transportation in order to boost the nation’s gas exports to the global market.

Kyari made the call at an agreement signing ceremony between Hyundai Mipo Dockyard Company Limited, Temile Development Company and NLNG Ship Management Limited (NSML) for the construction of a 23,000 M3 LPG/NH3/VCM Carrier and the supervision of the ship construction work on the sidelines of the 28th World Gas Conference 2022, in Daegu, South Korea.

He said it had become imperative for Nigeria to develop more channels for getting gas into the international gas market considering the pivotal role gas had assumed in the global march towards cleaner energy sources.

According to him, there is need for Nigeria to take advantage of the global acceptance of gas as a transition fuel by massive investment in gas transport infrastructure.

“We expect to see more and more Nigerians coming forward to build a transportation medium for gas and other liquid that we handle,” Kyari stated.

He assured investors of NNPC’s support, saying: “We are here to support you, we are not in competition. We are here to make sure that you succeed so that our country will succeed and prosper into what we visualise and contribute globally to energy sale”.

Also speaking at the event, the Executive Secretary, Nigerian Content Development Monitoring Board, Mr Simbi Wabote, commended the project partners for their various activities in Nigeria which he said were in alignment with NCDMB’s strategic objective of maximising the potentials in the Midstream and Downstream Sectors of the Nigerian oil and gas industry to actualise the Decade of Gas policy of the Federal Government.

“I am delighted that this project will bring invaluable local content opportunities in technology and innovation, human capital development as well as research and development,” he said.

The event was attended by the Chairman of the Board of Directors, NNPC Ltd., Mrs Margery Chuba-Okadigbo and representatives of Hyundai, NSML and Temile Development Company.

Also in the week, Sonangol Group, the national oil company of Angola, Africa’s second largest oil producer, expressed desire to collaborate with NNPC Ltd. in the downstream sector reforms in Angola.

This was disclosed by a delegation from Sonangol on a benchmarking visit to the NNPC to understudy the company’s downstream operations and lay the foundation for new partnerships.

Speaking at a brief welcome ceremony held for the delegation at the NNPC Towers, Abuja, the head of the delegation and member of Sonangol’s Executive Committee in charge of Distributions, Ana Paula Marranjal Mesquita Do Carmo, said that the Delegates were in Nigeria to understudy NNPC’s downstream logistics and mechanisms of sales and distribution of petroleum products.

According to her, Angola was already transiting from a monopolistic market to a competitive market and Sonangol needed to learn from an established and functional system like NNPC.

Speaking earlier, the GMD/CEO of NNPC Ltd. who was represented by the Chief Financial Officer, Mr Umar Ajiya, welcomed the guests as partners, adding that NNPC was committed to working with African companies to add value to their hydrocarbon value chain and create energy security for the continent.

He assured them that NNPC would share its experience with the group, stressing that the visit was timely as NNPC was currently transiting to a limited liability company with its business processes changing to become more commercially focused and efficient.

In a presentation to the delegation, the Group Executive Director, Downstream, who was represented by the Managing Director, PPMC, Mr Isiyaku Abdullahi took them through the gamut of NNPC’s downstream operations with special focus on NNPC Retail and its business model.

He assured them that NNPC was willing to answer all their questions and avail them of any information relating to downstream operations.

The Sonangol team was taken on a tour of a number of NNPC’s downstream facilities in Abuja, Lagos and Ogun State.

In another development, Federal Government called for synergy among stakeholders in the midstream and downstream sectors of the oil and gas industry.

The Minister of State Petroleum Resources, Chief Timipre Sylva, made the call at the opening ceremony of a two-day dialogue organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos with theme: “Maximising Potential in the Midstream and Downstream Oil and Gas sector – a Local Content Perspective”.

According to the Minister, one of the key objectives of the Ministry of Petroleum Resources under the Next Level Agenda of the President Muhammadu Buhari administration is to increase the nation’s domestic refinery capacity.

Sylva noted that synergy in the Midstream and Downstream oil and gas sector would further strengthen local content development and boost the country’s domestic refining capacity.

He noted that government’s effort at boosting domestic refining capacity led to NCDMB’s partnership with local companies such as Waltersmith Refinery, Azikel Refinery, and Atlantic Refinery in furtherance of its role as a catalyst for capacity development in the Nigerian oil and gas industry and its linkage sectors.

Sylva said the dialogue “would serve as a platform to sensitise and enlighten stakeholders about the Board’s capacity building intervention initiatives in support of Nigerian Content Development in the midstream and downstream sectors.”

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

=========

Edited by Ismail AbdulAziz

NNPC Weekly: High expectations as Buhari unveils new NNPC

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, May 22, 2022 (NAN) Activities for the week at the Nigerian National Petroleum Company Limited (NNPC Ltd), started with a cheering news that President Muhammadu Buhari will unveil the new NNPC on July 18.

This was disclosed within the week by the Group Managing Director/Chief Executive Officer of NNPC, Malam Mele Kyari, at the opening ceremony of the 8th African Petroleum Congress and Exhibition (CAPE VIII) which held in Luanda, Angola.

Kyari said the unveiling was in furtherance of the implementation of Section 53(1) of the Petroleum Industry Act which provides for the establishment of a new corporate entity known as NNPC Ltd.

Delivering a goodwill message at the conference, the GMD highlighted the revolution currently taking place in the Nigerian oil and gas industry through the implementation of the PIA.

He called on the industry leaders and other participants at the conference to join him and the NNPC family for the unveiling of the new NNPC.

He said the CAPE VIII was coming at a time when the world stood between the challenge of energy security and the necessity for energy transition in the context of energy justice.

Kyari stressed that there was need for all stakeholders to find amicable solutions to the challenges facing the sector.

He also called for collaboration between African oil producers, national oil companies and the multinationals to seek ways to sustainably finance the growth of the oil and gas industry; thereby ensuring the economic progress of African countries.

The African Petroleum Congress and Exhibition (CAPE) is a triennial initiative of the African Petroleum Producers Organisation (APPO), an intergovernmental organisation established in 1987 to serve as a platform for African petroleum producing countries to cooperate, collaborate, and share knowledge and competences.

The aim was to maximise the developmental and welfare benefits accruable from petroleum exploitation activities in its 15 member countries.

The 8th edition of the conference was organised by APPO in conjunction with the Government of the Republic of Angola, and AMETrade.

Also on a cheerful note, the Federal Inland Revenue Service (FIRS) commended the NNPC Ltd. for being the highest tax paying company in the country in the 2021 fiscal year.

The FIRS gave the commendation in a statement issued by its Executive Chairman, Mr Muhammad Nami, to celebrate its landmark achievement of generating over 6 trillion Naira in tax revenue for the first time in its history.

According to the FIRS, the feat defies the harsh global economic conditions imposed by the lingering COVID-19 pandemic to produce a heroic performance in tax payment and compliance.

“The FIRS is pleased to celebrate the top-performing taxpayers who contributed to her success in 2021. The Service surpassed its tax collection target in 2021, and in doing so, crossed the N6trn threshold for the first time.

“The feat recorded by the Service was also made possible by the uncommon leadership of the Commander-in-Chief of the Armed Forces of Nigeria President Muhammadu Buhari.

“It was also made possible by the active support of our supervisory Ministry, the backing of the National Assembly and its leadership, as well as the cooperation of all other stakeholders in the tax area.

“To everyone who contributed to FIRS’ success in 2021, we say thank you.

“Of particular importance was the contribution of our much-esteemed taxpayers, they defied the harsh global economic conditions imposed by the lingering COVID-19 pandemic to produce a heroic performance in tax payment, compliance and support.

“The combined efforts of all taxpayers made it possible for the Service to achieve the tax revenue collection of 2021 which provided revenue to our government,” the FIRS stated.

NNPC Ltd. had last year presented a symbolic cheque of N621 billion under the tax credit scheme to the ministry of works and housing for the construction of 21 selected roads across the country.

The Company had also in October last year expressed interest to invest in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.

The road construction initiative executed under the tax credit scheme is being funded through the FIRS in accordance with President Muhammadu Buhari’s Executive Order 7.

Under the programme, the NNPC would construct a total of 1,804.6 kilometres of roads at a total cost of over 621billion naira.

The FIRS also recognised the Nigeria Liquified Petroleum Gas Company Ltd. as the Most Supportive Taxpayer.

It listed Shell Petroleum Development Company Ltd, MTN Nigeria Communications Plc, and Chevron Nigeria Ltd. and a subsidiary of the NNPC Ltd, Nigeria Petroleum Development Company (NPDC) among the Top-Performing Taxpayers for the year.

Still in the week under review, the GMD/CEO of NNPC Ltd., Malam Mele Kyari was honoured with the Chief Executive Officer (CEO) of the Year Award for 2021 by the Leadership Newspaper.

Also honoured by the Leadership Newspaper at its Annual Conference and Awards which held in Abuja, were Vice President Yemi Osinbajo and Dr Ngozi Okonjo-Iweala who were conferred with the 2021 Leadership Persons of the Year Award.

According to the newspaper’s Editorial Board, Kyari merited the award because of the high degree of transparency and accountability he brought to bear on the management of the NNPC, adding that under his watch, NNPC became an incorporated entity in line with the PIA.

“Kyari played a major role in turning NNPC into a profit-making national oil company and is instrumental in driving the present administration’s gas revolution, among other innovations,” the Leadership Board stated.

In his acceptance speech delivered virtually from Luanda, Angola, where he was attending the African Petroleum Congress and Exhibition (CAPE VIII), Kyari expressed profound appreciation to the Leadership Newspaper Group for recognising the efforts of the NNPC, adding that such an honour was a call to do more.

The award was received on his behalf by the Group Executive Director, Corporate Services, Mrs Aisha Katagum.

On his part, the Vice President, Prof. Yemi Osinbajo, noted that integrity was part of the core values that the late publisher of the Leadership Newspapers, Mr Sam Nda-Isaiah, stood for.

Osinbajo added that he was satisfied that his legacies were being maintained by the organisation.

Other dignitaries honoured at the event were, Minister of State for Petroleum Resources, Chief Timipre Sylva; Governor of Sokoto State, Alhaji Aminu Tambuwal; Governor of Akwa Ibom State, Mr Udom Emmanuel; Governor of Gombe State, Alhaji Muhammad Yahaya and the Governor of Bauchi State, Alhaji Bala Muhammed.

Also in the week, the Federal Government and the Nigerian NNPC Ltd. commended Seplat Energy Plc for taking practical steps to reduce the emission of carbon dioxide in line with the agenda to achieve net zero by 2060.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, gave the commendation at the launch of the Tree for Life initiative by Seplat Energy Plc in Abuja.

Speaking at the event designed by the company to plant trees and keep the environment healthy as part of its carbon count, Sylva applauded Seplat for coming up with a practical way to reduce carbon dioxide from the environment.

He said that the promise made by President Muhammadu Buhari committing Nigeria to 2060 as the date for Nigeria to achieve net-zero carbon emission was a goal every Nigerian should work towards achieving.

Sylva noted that Seplat was already working towards that through the launch of the Tree for Life initiative.

He challenged other oil and gas companies in the country to take advantage of the various projects and corridors opened up by the Federal Government in the gas sector to reduce the nation’s carbon footprint, stressing that Nigeria had adopted gas as it’s the transition fuel to net-zero situation.

Speaking in similar vein, the GMD/CEO of NNPC, Kyari who spoke virtually from Luanda, Angola, where he was attending the African Petroleum Congress and Exhibition (CAPE VIII), said that NNPC was completely in support of Seplat in the Tree for Life initiative.

Kyari urged other operators in the oil and gas industry to toe similar path in tackling compliant issues.

In her remarks, the Chairman of the Board of Directors of NNPC Ltd., Sen. Margery Chuba-Okadigbo, said it was a great development for energy companies to be at the forefront of solving the global energy conundrum of heavily depending on fossil fuels for economic development yet wanting to get rid of it fast.

Speaking earlier in his opening remarks, Chairman of Seplat, Dr ABC Orjiako, said the Tree for Life project was a promise kept as it was a follow up on the promise made last year at the company’s Energy Summit to always conduct a carbon count in its operations.

The tree planting launch was performed by Sylva alongside Seplat’s Chief Executive Officer, Mr Roger Brown, Sen. Margrey Okadigbo, the NNPC Board Chairman and Dr ABC Orjiako, Chairman, Seplat, among others.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

==========

Edited by Ismail AbdulAziz

NNPC Weekly: NNPC Ltd. intensifies efforts to address Africa’s energy poverty

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, May 16, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the new week with a call on stakeholders to intensify efforts to address abject energy poverty in Africa.

The GMD/CEO of NNPC, Malam Mele Kyari, made the call at the 2022 Africa Infrastructure Solutions Summit which recently held in Abuja.

At a panel session on Energy Transition at the summit organised by the Africa Finance Corporation (AFC) with the theme: Africa’s Energy Conundrum: A Pragmatic Approach to Net Zero, Kyari joined other energy experts to advocate for a practical approach to energy transition to guarantee cheap access to energy in Africa.

According to him, there should be a slow but proper energy transition process in Africa with emphasis on access rather than net zero status.

He called on developing countries to form a common front to address the irrational expectations of transiting to net zero, adding that African leaders must insist that there must be energy justice.

He said NNPC was at the forefront of efforts by Nigeria to rally the needed support and cooperation among African countries to promote gas sufficiency in order to eliminate energy poverty.

Kyari also canvassed for the integration of Africa’s infrastructure in the region.

The Session was moderated by AFC’s Executive Director for Financial Services, Mr Sanjeev Gupta.

Other panelists in the session include, Prof. Carios Lopez of the Mandela School of Public Governance of the University of Cape Town, South Africa, and Mr Temitope Shonubi, Executive Director, Sahara Group.

According to the panelists, there is need for African countries to reduce their dependence on foreign funds for projects and start looking inwards for financing.

For Shonubi, he spoke on the need for effective communication strategy during the campaigns with the African populace and the transition process just as he said that poverty needs to be addressed.

Meanwhile, the NNPC Ltd. has reiterated its commitment to ensuring that Nigeria enjoys energy security, especially in the area of petroleum products availability.

The GMD/CEO of NNPC, Malam Mele Kyari made the commitment at an aviation sector stakeholders’ meeting held at the instance of the leadership of the House of Representatives.

The meeting was to find solution to the lingering challenge of astronomical rise in the price of Aviation Turbine Kerosene (ATK) also known as aviation fuel or Jet A1.

It would be recalled that Nigerian airlines under the auspices of the Aviation Operators of Nigeria (AON) had threatened to withdraw their services over what they considered as arbitrary increase in the price of aviation fuel which had created operational difficulties for the airlines.

In a swift move to resolve the crisis, the Speaker of the House of Representatives, Rep. Femi Gbajabiamila, convened a stakeholders’ meeting to x-ray the issues with a view to averting the strike and finding lasting solutions to the challenges bedeviling the sector.

Addressing the gathering, Kyari explained that NNPC was doing everything within its powers to make petroleum products available for the smooth operations of every sector of the economy, including aviation.

According to him, there were lots of factors responsible for prices of petroleum products, stressing that in the case of aviation fuel which had been deregulated since 1999, there was nothing NNPC can do as its price was strictly determined by market forces.

Speaking earlier, the Vice President of Aviation Operators of Nigeria and Chairman of Air Peace, Mr Allen Onyema, highlighted the challenges that airline operators have been facing with aviation fuel marketers in terms of price of the product which he said has since exceeded the global threshold of 40 per cent of operation cost of airlines.

He said the AON could not follow through with the resolution of the last intervention by the House of Reps to apply for a license to import aviation fuel directly.

This he said was because they saw it as a long term solution which would involve huge infrastructural outlay like construction of tank farms and other storage facilities at the airports

On his part, the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, said the CBN was ready to provide financial assistance to the airlines on the condition that they met the credit criteria set by their respective banks.

Rounding off the meeting, the Speaker of the House of Representatives, summed up the resolution and urged the airline operators to cancel the strike altogether, rather than just suspend it.

In the meantime, NNPC GMD/CEO, Kyari assured members of the House of Representatives Ad-hoc Committee on the State of Refineries that the NNPC has nothing to hide.

Kyari gave the assurance at an investigative hearing of the committee into the state of the refineries.

Fielding questions from members of the committee, the GMD who went into the history of the maintenance of the refineries disclosed that the refineries had not been properly maintained over the past 20 to 25 years leading to a situation where they had to be shut down because they were no longer adding value.

On the current stage of the rehabilitation work and the process of awarding the contract, the Group Executive Director, Refineries and Petrochemicals, Mr Mustapha Yakubu, said everything was on track.

Chairman of the Committee, Rep. Ganiyu Johnson, said the leadership of the House of Representatives felt there was need to understand exactly what was happening with the refinery rehabilitation considering how much money was voted for the project.

He requested NNPC to furnish the committee with more documents relating to the surveys carried out on the plant before the rehabilitation contract was awarded and status report on work done and payments made so far.

Johnson stressed that the committee was ready to work with NNPC to come up with legislations that would support its growth.

Managing Directors of Kaduna and Warri Refineries, Mr Babatunde Bakare and Mr Ezekiel Osarolube, were with the GMD at the investigative hearing.

Group General Manager Public Affairs Division, Garba Deen Muhammad; Technical Adviser to the GMD on Refineries, Mr Ibrahim Onoja and the General Manager, External Relations, Mrs Iyabode-Ayobami Ojo, were also at the hearing.

Meanwhile, the GMD has assured that the queues at fuel stations in Abuja would soon clear with the measures put in place to ensure robust supply of petrol to the city.

Kyari said the queues were not as a result of scarcity of petrol as NNPC currently had enough fuel in the country to last 47 days even if no product was imported in the intervening period.

Still in the week under review, the Federal Government said the country would continue to partner with stakeholders to improve the West African Gas Pipeline (WAGP) Project.

This was disclosed by the Minister of State for Petroleum Resources, Chief Timipre Sylva, at the meeting of the Committee of Ministers of the West African Gas Pipeline Authority (WAGPA) project which held in Abuja.

WAGPA is an international institution established by the treaty on the West African Gas Pipeline (WAGP) Project signed by the Heads of States of Benin, Ghana, Nigeria Togo.

Sylva said the Nigerian government had over the years shown leadership in ensuring that WAGPA was properly positioned to guarantee the achievement of its objectives.

The minister described the meeting as a commitment to the success of the project – a true proof of economic integration and cooperation in the sub-region.

According to him, the meeting is holding at a very critical time when the socio-political landscape is changing due to the Russian-Ukrainian war that has put pressure on global gas demand across Europe.

He listed some of the achievements of the WAPGA Committee to include, Open Access which was implemented in 2012; Improved Gas Availability; the Takoradi-Tema Interconnection Project (TTIP), which had significantly increased gas flow through the WAGP.

Other achievements were lifting of Force Majeure by the Nigeria Gas Company (NGC) between June 2013 and October 2020, Reforms of the Access Code to the WAGP network code; and the ongoing amendment to the WAGP Act and the WAGP Regulations.

He said the amendment of the WAGP Act and the WAGP Regulations would ultimately give licensing power to WAGPA to oversee the activities of the shippers as related to the WAGP for a free and fair business environment.

“However, there are more to achieve and we are determined to get to the zenith of our targets, which are to deepen gas supplies and utilisation within the ECOWAS sub-region.

“The global community has classified gas as part of renewable energy.

“Since we cannot but join the global energy transition train we must hurry to exploit the abundant natural gas deposits within the borders of our respective countries.”

On the institutional level, he said the meeting was a follow-up on the extraordinary meeting of the committee held in Accra, Ghana on Nov. 16, 2021, to consider issues related to the appointment of the director-general of WAGPA.

He said the solution that emerged from its discussions in Accra, in November 2021 to move ahead with the appointment of a Nigerian as director-general for WAGPA was very critical.

“In the circumstances, therefore, I will seek the understanding and cooperation of all to be guided by the provisions of the AGPA Treaty in reaching a sustainable, profitable and fair decision on this matter,” he said.

Furthermore, he appreciated the effort of its partner, the West African Gas Company Ltd. (WAPCo), as operator of the pipeline to implement the International Project Agreement and assure transportation of natural gas from entry points to customers in the state parties.

He said the ECOWAS commission had initiated the West African Gas Pipeline Expansion Project (WAGPEP) and was currently working with the Nigeria-Morocco Gas Pipeline (NMGP) Project for possible synergy between the two projects.

“I also know that WAPCo and WAGPA are working closely with the entities to provide technical assistance and experience to achieve the synergy to increase the potential to deliver natural gas for more countries in the ECOWAS sub-region and beyond,” he said.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

==========

Edited by Ismail AbdulAziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, May 9, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its week with high optimism that its plan for gas development would turn around the fortune of the country economically.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, shared this view at the 2022 Annual Public Lecture of the Nigerian Society of Engineers (NSE), Bwari Branch, Abuja.

The theme of the lecture was “Inclusive Energy Transition: Key Issues, Investment Opportunities and Barriers Towards Achieving the Decades of Gas Initiative in Nigeria”.

Sylva said he is optimistic that the plan by European Union (EU) to designate natural gas as ‘green energy’ would guarantee access to more funding for gas development projects in the country, to power its “Decade of Gas Initiative”.

The Minister stated that the chances of accessing the needed funding to boost gas production to meet domestic and export demands are getting brighter with the series of requests by European nations for more gas supplies from Nigeria.

It would be recalled that recently, EU delegation made up of top diplomats from Spain, Portugal, Italy, France and Belgium visited Sylva and the Chief Executive Officer (CEO) of NNPC, Malam Mele Kyari, on quest for more gas supplies from Nigeria.

According to Sylva, the EU’s request came with a proposal to rebrand gas as ‘green energy’.

“And luckily for Nigeria, the European Union has proposed labelling natural gas as a ‘green energy’ source, a development that could translate into huge economic value for Nigeria.

“The decade of gas is a decade of opportunities – ranging from a decade of elimination of gas flaring, a decade of more domestic Liquefied Petroleum Gas (LPG), a decade of fully gas-powered economy and natural gas”.

He stated that government had a key role to play in facilitating the right atmosphere for the private sector to thrive so that Nigeria’s economy can compete in the global sphere.

He listed the three major priorities of the Federal Government in energising the economy to include: security of supply, economic competitiveness, and a reduction of greenhouse gas emissions.

“At present, only gas can meet all three priorities simultaneously.

“This puts Nigeria with approximately 206.53 trillion cubic feet (TCF) of proven gas valued at over $803.4 trillion and a potential upside of 600TCF of gas, the most extensive in Africa, and in the top 10 globally”.

The Minister explained that Nigeria was following a transition pathway that combines technology, investment, business strategies, and government policy to transit from its current energy system to a low-carbon system with natural gas playing a pivotal role over the next decade.

He stressed that that is the idea behind the “Decade of Gas Initiative” of the Federal Government.

Sylva noted that in spite of the constantly changing technology, Nigeria had huge natural gas reserves and highly skilled workforce that had positioned it to pioneer future natural gas technology and compete in global markets.

To achieve this, he said that individuals, corporate Nigeria and professional associations like the NSE, as well as governments at all levels, must promote a new awareness, an energy literacy that includes a profound understanding that energy pervades all aspects of life.

He said that engineering skills were required to achieve the aspirations of many of the 17 Sustainable Development Goals (SDGs), especially goal No. 7 that called for “affordable, reliable, sustainable and modern energy for all” by 2030.

He called on members of the NSE to leverage on the existing and future technologies, including next-generation mobile broadband, the Internet of Things (IoT), artificial intelligence, 3D printing and others, to provide the tools for integrated solutions for the decade of gas.

“The NSE needs to lend its voice to the contributions of engineers in progressing the decade of gas initiative through its network of national and international engineering member institutions.

“The NSE should contribute to the discourse on the role of engineering and engineers in the development of technologically and environmentally feasible solutions for Nigeria.

“We need to partner in this journey to deal with the energy poverty in the country.

“We must find a way to unlock the natural gas potential of Nigeria and drag millions of our people out of energy poverty”.

Sylva insisted that the president’s assent to the Petroleum Industry Bill (PIB) on Aug. 16, 2021, had marked the end of decades of inaction, ambiguity, indecision, and under-investment in Nigeria’s petroleum industry.

He reiterated the need for Africa to establish an African Energy Bank (AEB) to address its own peculiar energy related crisis and take Africans out of the doldrums of energy poverty in line with SDG 7.

Meanwhile, Chairman, Board of the NNPC Ltd., Sen. Margery Chuba-Okadigbo, commended the Nigerian delegation at the 2022 Offshore Technology Conference (OTC) in Houston, Texas, United States.

Chuba-Okadigbo gave the commendation while declaring open the OTC Nigerian exhibition pavilion at the conference.

She said it is a thing of joy and pride that Nigeria was well represented at the conference.

“I am delighted to declare this exhibition open. Again, it’s a thing of joy and pride to see you Nigerians well represented in foreign countries”.

Earlier in his remarks, Chairman of the Nigeria Pavillion Opening Ceremony at the OTC, Mr Chinedu Maduakoh, said time had come for Nigeria and other African nations to pursue their energy transition dreams.

He said: “The clean energy transition debate, no doubt, presents an opportunity for many African countries to chart sustainable energy systems of their own, but capital is an enormous mitigating factor which calls for strengthened regional action to address existing barriers and identify practical steps which regional governments can take to promote capital deployment and adopt the technologies best suited for their region.

“Africa, home to one-sixth of the global population and accounting for less than 6 per cent of the global energy consumption and 2 per cent of cumulative global emissions according to reports, still has a comparative advantage and potential growth in the energy sector even as fossil fuels remain our enduring source of government revenue.

“However, bridging the finance gap, embracing new technologies, and replicating successful models in other sectors can help to further increase value-retention along the global value chain.

“It will also deepen the process of economic integration in alignment with the African Continental Free Trade Area (AfCFTA) Agreement which has the potential to lift more Africans out of the vicious cycle of poverty and inter-generational dependency”.

On his part, the Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr Nicolas Odinuwe, said that the theme of the Nigerian exhibition pavilion, “Energy Transition and the Future of Africa” was carefully chosen to reflect the current realities in African oil and gas industry.

Odinuwe called on leaders of the Nigerian oil and gas industry to continue to echo PETAN’s called to deepen Nigerian content as always and implored the Board of the NNPC Ltd. to collaborate with the association.

“OTC means different things to different people. But thanks to PETAN’s focused participations.

“PETAN and Nigeria have built capacities, capabilities and visibility. PETAN has been the host of the Nigerian Pavilion for over 15 years.

“And we have been fully supported by the NNPC (now NNPC Limited) which is in transition.

“We are here to continue to propagate, advocate and advance technology that has led to Nigeria being the only country in Sub-Saharan Africa with a robust exploration and production service industry”.

According to the chairman, OTC gives all its participants access to leading-edge technical information and opportunity to showcase companies’ capabilities to over 1,000 delegates and over 250 companies in the oil and gas Industry.

He said that PETAN had been responsible for leading and hosting the Nigerian government agencies, stakeholders, oil and gas companies and investors at the OTC yearly.

Odinuwe added that Nigeria had the fifth largest representation of over 60 participating countries in 2019.

PETAN is an association of indigenous Technical Oilfield Service Companies.

Still in the week under review, the Port Harcourt Refining Company (PHRC) recorded a 1,689 per cent increase in the value of its assets from N15billion to N268billion as at Dec. 31, 2021.

This was disclosed at the 15th Annual General Meeting of the company which held at the NNPC Towers, Abuja, with some virtual participation.

Speaking at the meeting, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, who is the Chairman of PHRC’s Board of Directors, explained that the astronomical rise in the value of the company’s assets was attributable to NNPC Management’s decision to transfer previously held SBUs assets to the respective subsidiaries.

This, according to the GMD, who was represented by the Group Executive Director, Gas and Power, Mr Mohammed Ahmed, saw the transfer of the refining plant with a net book value of N255bn to PHRC and was reported in its books accordingly for the first time in the history of the company.

He stated that the singular act of transferring the assets to the company had increased the financial portfolio of PHRC and would stimulate the interest of foreign investors as well as increase its capacity for external funding whenever the need arises.

The GMD also reiterated the commitment of NNPC to ensuring constant and copious availability of petroleum products in the country after the rehabilitation of the Port Harcourt Refinery to avert a repeat of the supply hitch experienced recently.

He also disclosed that PHRC was totally poised to “strategically leverage on the benefits accruing from the restoration of capacity utilisation upon the successful completion of rehabilitation to attain optimal, competitive and profitable operation in a global commercial environment”.

Kyari said the refinery would operate at a minimum of 90 per cent capacity post-rehabilitation, adding that refining would be accorded greater attention in keeping with the objectives of the PIA which seeks to reposition the oil and gas industry in conformity with global practices.

The immediate past Managing Director of the NNPC Retail Ltd., Mrs Elizabeth Aliyuda, had described the recent declaration of profit by the NNPC Ltd. as the most memorable moment in her 35 years of service to the company.

The former NNPC Retail helmsman said that she was delighted to have witnessed the turnaround in the fortunes of NNPC during her tenure as Managing Director, NNPC Retail Ltd.

Commenting on the concerns raised by some stakeholders regarding the effects of the PIA on the fortunes of operators in the industry, Aliyuda admonished staff members to embrace the new fiscal regime with courage and confidence.

She stressed that if the NNPC could make N287billion profit prior to the enactment of the legislation, a greater future lies ahead for the company and other operators in the PIA era.

She advised staff of NNPC to remain committed to the implementation of policies that would open up viable business opportunities for the company’s steady growth and profitability.

Some of the dignitaries that attended the event were the CEO, Nigerian Upstream Regulatory Commission (NUPRC), Mr Gbenga Komolafe and CEO, Nigerian Midstream, Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed.

Others were GED, Downstream, Mr Yemi Adetunji; GED, Refineries and Petrochemicals, Mr Mustapha Yakubu and former GED Venture/ Former MD, NNPC Retail, Sir Billy Okoye.

In another development, the Organisation of the Petroleum Exporting Countries (OPEC) raised Nigeria’s crude oil production quota to 1.772mbpd for June 2022 from 1.735 million barrels per day (mbpd).

The approval was for May 2022.

A statement by the organisation stated that the decision was taken at the 28th OPEC and non-OPEC Ministerial Meeting.

Consequently, the new target for Nigeria going forward stood at 19,000bpd higher than the approved quota for May 2022.

OPEC also adjusted upward the monthly overall production by 432,000bpd for the month of June 2022 with a target production of 42.558mbpd.

“Following the conclusion of the OPEC 28th and non-OPEC Ministerial Meeting, held via videoconference on May 5, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market.

“It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic,” the statement said.

Meanwhile the Secretary-General of OPEC, Mohammed Barkindo lamented the negative effect of the ongoing war in Ukraine on the global energy market.

Speaking at the virtual 62nd meeting of the Joint Technical Committee (JTC) of the organisation, Barkindo said the Russia-Ukraine war had caused huge volatility in the global energy market.

The organisation also called for sustained investment in the oil sector to expand production and ensure adequate spare capacity.

Barkindo said the conflict had compounded the uncertainties related to the pandemic.

“It has heralded in further economic volatility, elevated risk premiums for oil, as well as many other essential commodities, given that both the Russian Federation and Ukraine are key global exporters, including of essential agricultural goods,” Barkindo said.

“From the oil market perspective, however, what is clear is that Russia’s oil and other liquids exports of more than seven million barrels per day cannot be made up from elsewhere.

“The spare capacity just does not exist.”

He said the potential loss through either sanctions or voluntary actions was rippling through energy markets.

“The crises we face are causing huge volatility, with daily price swings of more than 5 dollars per barrel occurring on 13 occasions across March and April,” he added.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

===========

Edited by Ismail AbdulAziz

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, May 2, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the week with the good news that Vanguard Newspapers nominated the company’s Group Managing Director (GMD) Malam Mele Kyari, for its 2021 Man of the Year Award.

The Chairman Editorial Board of Vanguard Newspapers, Ochereome Nnanna, disclosed this when he led other members of the company’s management team to present the letter of nomination to the GMD.

Nnanna said that the selection of the Vanguard Man of the Year award was usually a very competitive and difficult process because of the stringent criteria deployed to arrive at the choice of the beneficiary of the award.

He noted that as a result of this painstaking process, there were years in the past when the organiser could not find anyone fit for this category of award.

The GMD appreciated the newspaper for nominating him for the award, adding that the award was coming at a time when the NNPC was undergoing huge transformation in line with the provisions of the Petroleum Industry Act (PIA).

Kyari said there was an urgent need to focus on gas investment, adding that as the economy was currently facing a challenging time, such investment would help to guarantee energy security for the country.

The GMD explained that the NNPC has been transparently managed, adding that it remained the only company in the world that publishes its monthly financial report.

In a related development, the Management of Leadership Newspapers has also named Kyari as the CEO of the Year 2021.

The notice of the nomination was conveyed to the NNPC helmsman by the Editor-in-Chief of Leadership Newspapers, Mr Azu Ishiekwene, during a visit to the NNPC Towers.

Responding, Kyari said it was a privilege to be recognised by a reputable media organisation like Leadership.

Meanwhile, the Minister of State for Petroleum Resources, Chief Timipre Sylvia, has been nominated by the Leadership Newspapers as its 2021 Public Service Person of the Year Award.

The Management of the newspaper led by the Vice Chairman of the Leadership Group, Mr Mike Okpere, made this known during a visit to present the letter of nomination to the Minister.

Speaking at the event, Okpere said that the award was in recognition of Sylva’s determination and resilience in pushing for the passage and signing into Law of the PIA and its aggressive implementation for the betterment of the oil and gas industry and the nation.

Receiving the notification letter, the Minister described the award as an incentive that would spur him and the ministry to do more to continually improve the operational environment of the oil and gas industry and ultimately boost the nation’s economy.

Sylva expressed gratitude to Leadership Newspapers for recognising the modest contributions made by him and other members of the ministry.

“I really thank you for the award and I accept it because for me it’s an endorsement of some of the humble contributions we’ve made.

“Coming from a very reputable Nigerian newspaper like Leadership deems it fit to give me an award makes me feel that at least my little efforts are being recognised.

“The efforts I made I did not expect anyone to notice them but when such efforts are noticed by an organisation such as yours, it gives us reason to be glad and it is an incentive for us to do more”.

Also in the week, the Ministry of Petroleum Resources unveiled plans for the 6th edition of the Nigeria International Energy Summit (NIES 2023).

It informed that the annual Conference themed “Global Perspectives for a Sustainable Energy Future” would hold in Abuja between April 16 and April 20.

The Ministry explained that the theme of the summit was informed by the speed of change projected in the fossil fuels segment as the world pursues the energy transition agenda.

According to the Event Consultant and Managing Director of Brevity Anderson, Mr James Shindi, “NIES 2023 will put on the front burner overarching global energy trends and perspectives.

This, Shindi said would ensure that policy makers and other players in the sector can easily understand latest developments and the best roadmap to drive the energy transition”.

In an online media Broadcast, Sylva said “NIES 2023 was primed to be a show-stopper as it would be the valedictory edition of this administration.

“The event will provide the platform for the administration to present its scorecard in the energy sector and also provide the opportunity to offer a roadmap for the next administration.

“It is therefore an epoch and a must-attend event for all the stakeholders in the industry.

“As a tradition, NIES 2023 will feature the highest level of attendance by top decision makers, industry leaders and all stakeholders from both the public and private sectors from across Africa and the global energy community.

“There will be a special dinner and other networking events with attendee ministers from other oil producing countries and heads of government delegation from other countries.

“With the full backing of the Federal Government of Nigeria, NIES has over the years witnessed the highest level of attendance by top decision makers, industry leaders and all stakeholders from both the public and private sectors.

“NIES has grown from year to year and remains the definitive platform, not just for Nigeria, but also for Africa to engage the global energy community,” Shindi said.

NIES is a federal government of Nigeria’s official energy industry event with the Federal Ministry of Petroleum Resources and all its parastatals including the NNPC and Nigerian Content Development and Monitoring Board (NCDMB).

Others are Nigerian Upstream Petroleum Regulatory Commission (NURPC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Petroleum Technology Development Fund (PTDF) and Petroleum Training Institute (PTI) as joint hosts.

Still in the week under review, the House of Representatives commended the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC Ltd., for the prompt provision of information on its assets and liabilities.

The House of Representatives Ad-hoc Committee on Inventory, Assets, Liabilities and Joint Ventures of the NNPC gave the commendation during its oversight visit to NAPIMS.

The visit was part of its task of verifying NNPC’s assets and liabilities with a view to determining which of the assets that would be transferred to the new NNPC Ltd. as stipulated in the PIA.

Explaining the rationale behind the establishment of the Committee, the Chairman of the Committee, Rep. Uju Kingsley Chima, said the leadership of the House of Representatives believed that there was need for the assets of the old NNPC.

And that all its subsidiaries must be effectively verified for proper documentation prior to their transfer to the NNPC Ltd., to ensure the take-off of the new company on a sound footing.

The lawmaker expressed satisfaction with the presentations made by NAPIMS officials regarding its assets, liabilities and challenges, stressing that it would cumulatively help the committee to make appropriate recommendations to the during plenary.

He also said that the Committee would create time to visit the locations of some of the assets to assess their true state before preparing its report.

Earlier, members of the Management Team of NAPIMS took turns to make presentations to the Committee on the various aspects of the agency’s operations as well its existing assets and liabilities.

In her vote of thanks, the General Manager, External Relations, NNPC, Mrs Iyabode Ayobami-Ojo, expressed delight at the sustained support NNPC enjoyed from the legislature, especially at this period of its transition from Corporation to limited liability company following the passage of the PIA.

In another development, the Organisation of Petroleum Exporting Countries (OPEC) commiserated with the people and government of Imo State, over last weekend’s fire which was reported to have consumed no fewer than 100 people at a site of an illegal refinery.

Many victims were burnt beyond recognition during the incident which occurred after an illegal refinery exploded at Abaezi forest in the Ohaji-Egbema Local Government Area of the state.

In a letter to the Governor of Imo State, Sen. Hope Uzodinma, OPEC’s Secretary General, Dr Sanusi Barkindo, decried the scale of destruction caused by the incident, saying that the oil producers’ organisation, received the sad news with deep shock.

Barkindo stressed that the loss of lives at the site was difficult to accept.

He commiserated with the “heroic” people of Imo state over the deaths and injuries suffered by those impacted by the blast.

“It was with deep shock and sadness that I received the news of the tragic loss of lives following a fire at an illegal oil refining depot close to the border with Rivers State.

“On behalf of OPEC, I would like to extend our deepest sympathies to you and the people of Imo State at this difficult time.

“Loss of life on this scale is very difficult to comprehend and our thoughts and prayers go to the families and friends of those afflicted by this tragedy, as well as those recovering from their injuries.

“We stand shoulder-to-shoulder with all who grieve at this difficult time. We will also pray for the safety of the emergency response teams.  May the Almighty give the bereaved the fortitude to bear this unbearable loss.

“Please accept, Your Excellency, the renewed assurances of my highest consideration and esteem,” Barkindo said.

While offering his condolences to the families of the victims earlier, President Muhammadu Buhari demanded that those responsible for the explosions must be arrested and brought to justice.

The President also ordered security forces to intensify efforts to shut the illegal refineries.

It is noted that in recent times, the GMD/CEO NNPC Ltd, Malam Mele Kyari had been advocating the support of the authorities, security agencies, host communities, Nigerian Parliament and all stakeholders to curb the menace of crude oil theft, proliferation of illegal plants where stolen crude oil are refined and pipeline vandalism that is causing the Nigerian nation huge revenue losses.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

=========

Edited by Ismail AbdulAziz 

NNPC Weekly: PIA takes effect in upstream oil sector regulation

NNPC

By Edith Ike-Eboh and Emmanuel Afonne

Abuja, April 25, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the week with a move by stakeholders to begin the implementation of the Petroleum Industry Act (PIA) in the upstream sector of the nation’s oil and gas industry.

Minister of State for Petroleum Resources, Chief Timipre Sylva said at a 2-day upstream stakeholders’ forum organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja that the process of ratifying the first set of regulations was on.

Sylva said the regulations would govern the sector in line with Section 216 of the PIA and that the forum was convened to enable stakeholders provide inputs to fine-tune key regulations as prepared by the NUPRC and the Presidential Steering Committee.

“It is believed that a robust engagement such as this will create the platform for all of us to brainstorm in a constructive manner.

“It will also harness the necessary inputs from various stakeholders to further clarify the draft regulations and the eventual firming up of the final regulations for use.”

The Minister stated that though the PIA had removed the uncertainties that hampered investments in the sector, strong regulations were required to keep the industry vibrant and relevant.

He called on the stakeholders to embrace innovation in their operations to enable the industry survive the challenges imposed by the global energy transition.

“However, the challenge posed by the huge divestments in the hydrocarbon explorations by oil majors in the country in the past as a result of the global energy transition calls for more innovative ways in the exploitation and exploration of fossil fuel in the country.

“If we must continue to be relevant at the global stage, we must, in designing any regulation, put in focus how we can balance the energy base-load for Nigeria.

“This will ensure that we will not be left behind in the energy transition train while still harnessing our rich natural hydrocarbon reserves.”

Speaking earlier, the Chief Executive Officer of the NUPRC, Mr Gbenga Komolafe, explained that the forum had become a statutory prescription and a critical milestone in the implementation of the PIA.

He said that as a law-abiding agency, it was binding on the NUPRC to work expeditiously towards finalising the regulations for the upstream sector of oil and gas industry.

This, he said would help in keeping with specific timelines as provided in the PIA.

“Also, aside from the statutory imperative on the part of the commission to have the regulations finalised in time-specific manner, there is also the compelling need for us as a nation to conclude the regulation-making process for implementation of the PIA.

“This will ensure that the PIA is in full throttle and in a manner that will enable Nigeria hedge against the impact of energy transition while taking advantage of the oil and gas supply gap resulting from the current developments in Russia and Ukraine.”

He listed the six draft regulations up for review at the forum to include: the Nigerian Upstream Fee and Rent Regulations, the Petroleum Licensing Round Regulations and the Domestic Gas Delivery Obligations Regulations.

Others are the Nigeria Conversion Regulations, the Nigeria Royalty Regulations and the Nigeria Host Community (Commission) Regulations.

He said that the commission would carry out other similar stakeholders’ engagements in the course of the implementation of the PIA.

Still in the week under review, the NNPC Ltd. and its partners – TotalEnergies, China National Offshore Oil Corporation, Prime 130 and Sapetro inaugurated four projects in Cross River, Delta and Rivers in line with their Corporate Social Responsibility (CSR) policies.

The projects which include a maternal and child referral centre located in the University of Calabar Teaching Hospital (UCTH), Cross River, boreholes and water treatment plants at Ikiri, Rivers State, Warri in Delta State, and Odukpani, in Cross River, were all recently inaugurated and handed over to the beneficiary communities.

Speaking at the event, the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr Bala Wunti, said that the NNPC Ltd. was committed to the implementation of projects that guarantees sustainable development of its host communities.

“These projects were borne out of the need to mitigate the obvious gaps in healthcare, quality education, water, and women and youth empowerment as stipulated by the relevant Sustainable Development Goals (SDGs).

“NNPC and its partners are socially responsible organisations that are committed to improving the livelihood of the citizens of our great country,” Wunti said.

On his part, Managing Director, TotalEnergies upstream companies in Nigeria, Mr Mike Sangster, said that the projects were designed to reduce the negative impacts of the lack of qualitative and technical education.

Sangster said that the projects were also designed to reduce maternal and child health, access to clean water, and women and youth empowerment.

He also stated that the projects’ sites were carefully chosen for maximum impact, as derived from the needs’ assessment carried out prior to their conception and subsequent deployment.

“It is important to note that the implementation of these projects was achieved through the novel “Project Managers” approach.

“This approach which is new in the industry permits the delivery of projects in remote and challenging environments while ensuring the use of local expertise and stakeholder engagement.

“I am very happy that the pilot projects are successfully executed. We are using the Return on Experience, to improve our processes and deliver our second and third phases faster and better,” Sangster said.

in a related development, NNPC and its partner, Shell Nigeria Exploration and Production Company Limited (SNEPCo), donated a state-of-the-art Information and Communication Technology (ICT) Centre to the Federal University of Petroleum Resources, Effurun, Delta State.

The 100-seater One-Storey building was built and equipped by the NNPC and SNEPCo Joint Venture to promote research, teaching and learning in a conducive environment.

Speaking at the inauguration of the project, the Governor of Delta State, Dr Ifeanyi Okowa said the facility would go a long way in expanding the capacity of the students and staff of the university and enable them compete locally and globally.

The Governor, who was represented by the state Commissioner for Science and Technology, Jennifer Adesen-Efeviroro, applauded NNPC and SNEPCo for their intervention.

“An ICT Centre in the modern world has an immense economic significance and prudent application of the facility to research, teaching and learning would catalyse innovations that would stand the university out among its peers.

The Group General Manager of NAPIMS, Mr Bala Wunti described the project as a delight to NNPC.

Wunti noted that NNPC was committed to making significant impact in the lives of every Nigerian through the delivery of life enhancing projects as the ones being inaugurated.

“We are keen on touching lives in many positive ways and this intervention, like many others delivered through our partners, will go a long way in grooming Nigerian youths for the technological evolution in the world,” he said.

Wunti, who was represented by the Deputy Manager, External Affairs, NAPIMS, Mrs Edith Lawson, said that the ICT Centre would help create a pool of IT savvy professionals whose skills would be of high necessity and demand globally.

The ICT centre is equipped with 100 computers with licensed software, a WIFI lounge, computer laboratories, conference rooms, a lecture hall, office spaces and equipment rooms.

The facility also included smart interactive boards, and a 100KVA generator.

Meanwhile, the Minister of State for Petroleum Resources, Chief Timipre Sylva, called for increased investments in the nation’s oil and gas industry to boost gas development and supply as European countries turn to Nigeria for their gas supply needs.

The Minister made the call during a visit of the delegation from the Kingdom of Belgium led by its Ambassador to Nigeria, Mr Daniel Dargent.

While welcoming the Belgian delegation, Sylva said that with its abundant natural gas resources, Nigeria was well positioned to fill the current gas supply gap being experienced in parts of Europe.

He, however, said that there was need to increase investments in gas development in the country to fully achieve the aspiration of boosting gas exports.

The Minister also urged investors to explore the opportunities in the nation’s downstream sector, especially in the areas of gas plants and pipelines to support the promotion of Federal Government’s plan to introduce Auto-gas.

Speaking earlier on the purpose of the visit, Dargent said the Kingdom of Belgium was interested in importing more gas from Nigeria and would like to know what challenges the country had in achieving that.

He promised to provide the Minister with a list of potential investors by June 2022 and to follow up with discussions in October when the group of Belgian investors were expected to be on ground in the country.

Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)

ENO/EMAF/ISMA

==========

Edited by Ismail AbdulAziz