September 16, 2021

NEWS AGENCY OF NIGERIA

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NNPC weekly Review: FG, OPEC forge ties to ensure global oil market stability

OPEC Scribe Mohammad Barkindo and Minister of State for Petroleum Resources Chief Timipre Sylva

The Federal Government has given assurance of its readiness to support every move that will bring about stability in the global oil market

By Edith Ike-Eboh & Emmanuel Afonne

The Federal Government has given assurance of its readiness to support every move that will bring about stability in the global oil market

This was reiterated at a visit by Dr Mohammad Barkindo, the Nigerian born Organisation of Petroleum Exporting Countries (OPEC) Scribe, to the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja.

They both expressed their readiness to work hand-in-hand to ensure stability of the global crude oil market.

Sylva said that Nigeria, as one of the leading oil and gas producing nations in Africa, would continue to abide by the Declaration of Cooperation (DOC) which has gone a long way in stabilising the market for the collective good of the producing and consuming nations.

On his part, Barkindo applauded Nigeria for the key role it has been playing in the global crude oil market, noting that the 50 years partnership between OPEC and Nigeria has impacted the crude oil market positively.

He presented a book entitled “Nigeria and OPEC: 50 years of Partnership,” to mark the golden anniversary of its membership in the Organization of Petroleum Exporting Countries (OPEC).

In the week under review, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Malam Mele Kyari also assured that Ajaokuta, Kaduna and Kano (AKK) Gas Pipeline project would be completed within the estimated time frame

He said that the ongoing 614kilometres AKK gas pipeline project would be delivered on schedule, create prosperity through massive job opportunities and guarantee peace for the country.

Kyari gave the assurance at Gas Sector Stakeholders’ Forum in Kano, organised by the Gas Aggregation Company Nigeria (GACN) with the theme: “Optimising the Economic Development Capacity of Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project”.

In a paper titled: “The AKK as an Economic Development Game-Changer – NNPC’s Vision, Contributions, & Plan Forward,” Kyari, stated that the AKK gas project would help revamp about 232 industries creating massive employment opportunities and prosperity for the people.

He said it would also serve as gas supply link to other African countries and Europe on completion.

“This project has been on the drawing board for 30 years and the dream was to have gas delivered to Europe across the Trans-Sahara route.

“What we are seeing today would deliver at least two billion standard cubic feet of gas to the domestic market at the first instance with the potential to increase it. What this means is that it will debottleneck the gas supply network in the entire country,’’ he said.

He said the AKK gas project would also lead to the development of three Independent Power Plants (IPP) in Abuja, Kaduna and Kano, adding that the IPPs would boost electricity supply and promote the growth of small and medium scale enterprises in the Nigeria.

“I want to state clearly that this gathering would not have been possible if we don’t have a line of sight to the completion of the AKK gas pipeline project.

“This is possible because of the clear direction that Mr President has shown on the need to deepen domestic gas consumption with a view to creating prosperity out of the enormous gas resources we have as a nation.

“He has given us all the necessary support and incentives to deliver on this project,” he stated.

The GMD further said the AKK gas project would also boost the Agricultural, Industrial, Manufacturing and Power Sectors for the overall growth of the nation’s economy.

Also, the corporation in the week inaugurated Board of the OSNO Sunshine Biofuels Company Limited, a Biofuel Company to help combat global climate change.

This, it said was in line with the Corporation’s resolve to give full expression to the National Automotive Biofuels Programme of the Federal Government that would help to jump start the production of biofuels in the country.

Speaking at the inauguration ceremony in Abuja, Kyari described the incorporation of the OSNO and the inauguration of its board as a major milestone in the Corporation’s energy transition journey in response to the global shift to cleaner energy.

OSNO Sunshine Biofuels Company Limited is jointly owned by the NNPC, Ondo State Government and Obax Worldwide Ltd.

Kyari explained that the company is designed to leverage on the agricultural sector to produce environmentally safe energy in furtherance of the Paris Accord signed by President Muhammadu Buhari in 2015, to help combat climate change.

He commended the Ondo State Government and the Management of Obax Worldwide for the provision of land at Okeluse and the huge investments in the project.

The Chairman of the Board of OSNO Sunshine Biofuels Company Limited, the Chief Operating Officer,Ventures and Business Development, NNPC, Engr. Adeyemi Adetunji, said his appointment was an opportunity to serve and midwife one of the first biofuel projects in Nigeria.

He commended the GMD for the efforts put in to nurture the project from conception to its fruition.

Also, the President and Chairman of Obax Worldwide Ltd., Arc. Patrick O’Basuyi, and the Chief Executive Officer of the Ondo State Development and Investment Promotion Agency, Mr Boye Oyewumi, who are also members of the Board, expressed their commitment to the success of the project.

Other members of the Board include: Mr Raphael Imhansi-Jacob of Obax Worldwide Ltd as Managing Director of OSNO Sunshine Biofuels Company Ltd., NNPC Chief Financial Officer, Mr Umar Ajiya, Mr Runsewe Temitope and Mr Bukar Abdullahi, both of the Obax Worldwide Ltd.

On the rehabilitation of Refineries, NNPC says the ongoing rehabilitation of its midstream subsidiaries, the Port Harcourt Refining Company Limited (PHRC), Warri Refining and Petrochemical Company Limited (WRPC) and Kaduna Refining and Petrochemical Company (KRPC) were on course, assuring that the rehabilitation programme of PHRC will be concluded on schedule.

Kyari disclosed this at the 14th Annual General Meeting (AGM) of the PHRC and the 18th AGM of WRPC which held virtually.

Kyari, who doubles as Chairman of the Board of the two refineries, was represented by the Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu.

He said the plants were deliberately shut down to give room for the full rehabilitation, noting that in 2020, the plants did not process any crude oil due to the ongoing rehabilitation exercise.

He further noted that the full rehabilitation of the PHRC has commenced while efforts were on to secure required approvals for the commencement of the rehabilitation of the WRPC.

The NNPC GMD said already, Technimont SpA has commenced rehabilitation work on PHRC with a completion timeline of 44 months while the old Port Harcourt Refinery is scheduled to commence operation in the next 18 months.

“Our External Auditors confirmed that proper book of accounts was kept in PHRC and WRPC for the year 2020.

“The AGM is in line with the Companies and Allied Matters Act (CAMA) which is also in tandem with the Corporation’s Management policy of Transparency, Accountability and Performance Excellence (TAPE).

He expressed optimism that with the introduction of the Operations and Maintenance model for the management of the refineries on completion of the rehabilitation, they would run sustainably as going concerns in the years ahead.

In their separate remarks, the Managing Director of WRPC, Babatunde Bakare, and his PHRC counterpart, Ahmed Dikko, said the companies were committed to the rehabilitation exercise, applauding the support of the in-house unions and the host communities.

Also, the Chairman of its Board of Directors and GMD of NNPC, Kyari, who was represented by the Chief Operating officer, Corporate Services, Mr Mohammed Ahmed, said the pre-rehab maintenance work carried out on the plant has primed it up for rehabilitation.

He said the plant would achieve 90 per cent capacity utilisation after its rehabilitation.

On his part, the Managing Director of KRPC, Ezekiel Osarulobe, commended the GMD for his determination to go through with the rehabilitation exercise, adding that the management and staff of the company were solidly behind him on the project.

The External Auditors of the refineries affirmed that they were satisfied with the statement of accounts of the companies.

On revenue generation, in the week under review, the NNPC subsidiary NIDAS in charge of crude oil and petroleum products haulage, has ended its 2020 financial year on a positive note posting a total revenue of 243, 443,219.00 dollars.

The Chairman of the company’s Board of Directors and NNPC’s Chief Operating Officer, Ventures and Business Development, Mr Adeyemi Adetunji, disclosed this at the company’s Annual General Meeting which held virtually in Abuja.

Giving a breakdown of the company’s performance, the Chairman of the Board stated that three subsidiaries of the company did well in their own right in spite of the Covid-19 pandemic which took a toll on businesses across the globe.

According to him, NIDAS Marine Limited earned operating revenue of 67,265,000.00 dollars (equivalent to N25.6billion naira) and recorded a profit before tax of 3, 729,000.00 dollars (equivalent to N1.4billion Naira).

While NIDAS Shipping Services Limited recorded a total revenue of 174,903, 280 dollars and a profit before tax of 1,956,145.00 dollars, NIDAS Shipping Service Agency (UK) Limited posted a total revenue of 1,450,219 dollars and profit before tax of 14,152 thousand  dollars .

Adetunji said there was hope that the company’s performance would improve with global market surge expected by the turn of the year as a result of the roll -out of COVID -19 vaccines.

He commended the management of the company on the performance in spite of the challenges.

The Managing Director of the company, Mrs Christiana Onabu, thanked the staff for the performance, describing the year as a difficult one while assuring the shareholders of a better performance in the years ahead.

 

What you need to know

 

  1. That the Petroleum Products Marketing company Limited (PPMC) is a 100 per cent owned downstream subsidiary of the NNPC emanating from the unbundling of Pipelines and Products marketing company into three entities
  2. The PPMC is mandated to profitably and efficiently market refined petroleum products and ensure security of petroleum product supply and distribution to the nation.
  3. The vision of PPMC is to be the preferred supplier of refined petroleum products in the Nigerian Domestic market and Exploit opportunities in the sub-Saharan region.
  4. The mission of PPMC is to provide excellent customer service in marketing petroleum products to domestic and international markets in an efficient, profitable and competitive manner.
  5. That PPMC has positioned itself to function as a preferred marketer of choice through digital transformation and ISO certification of its business processes.

On global Crude Oil Outlook, Oil prices climbed after industry data showed United States of America crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.

Brent crude futures rose 38 cents, or 0.5 per cent , to 74.86 dollars per barrel, after shedding 2 cents in the first decline in six days.

United States of America West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6 per cent, at 72.07 dollars  per barrel, reversing 0.4 per cent decline.

Meanwhile, the Market Intelligence Department of NNPC’s London Office reported that the United States of America gasoline futures contracts were a bright spot in a lackluster oil market recently, but gasoline touching a multiyear high and closing higher failed to lift the rest of the oil complex as crude and diesel contracts in the US and Europe barely budged. (NAN) (www.nannews.ng)

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