Otedola Bridge Explosion: NNPC Commiserates With Victims, Lagos Govt

Mele Kyari. MD, NNPC
Mele Kyari. MD, NNPC
The Nigerian National Petroleum Corporation has commiserated with the Government and people of Lagos State and especially the victims over the unfortunate tanker explosion which occurred on the Otedola Bridge, in Lagos, in the early hours of Saturday.
According to reports, the unfortunate incident occurred when a container truck loaded with fabric experienced a brake failure and collided with a 33,000ltrs fuel tanker loaded with Premium motor spirit (PMS), belonging to a downstream operator, the impact of which resulted in the fire outbreak.
A press release by the Corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that while the Group Managing Director, Mallam Mele Kyari commiserates with the victims, the Lagos State Government and Lagosians in general, he feels particularly sad about the re-occurrence of these events which could have been avoided.
The GMD admonished motorists and downstream operators to continue to ensure strict adherence to safety rules and regulations in order to avoid these unfortunate incidents that always lead to loss of lives and property.

NNPC Refutes Claims Of Bribe To NANS, For Vote-Buying In Ondo

N824.7 Billion of Oil Revenue Withheld by NNPC Within 6 Months Of Buhari’s Govt
N824.7 Billion of Oil Revenue Withheld by NNPC Within 6 Months Of Buhari’s Govt
The Nigerian National Petroleum Corporation has refuted reports in a section of the media alleging that it paid bribe to the National Association of Nigerian Students (NANS) and provided funds for the All Progressives Congress (APC) to buy votes in the just concluded Ondo State gubernatorial election.
In a press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, the Corporation described the reports as mischievous and contrived allegations, without any substance in truth, ostensibly designed to serve the selfish ends of their sponsors to bring NNPC to disrepute and tarnish the Corporation’s image.
On the alleged bribe or Covid-19 palliative to NANS published by Saharareporters, NNPC confirmed that it received a letter dated April 22, 2020, from NANS signed by one Comrade Danielson Akpan, requesting for financial support to enable the association provide palliatives to students who were stranded at various schools during the lockdown, a request the Corporation could not honour due to the peculiar circumstances and financial constraints thrown up by the global oil market meltdown.
Concerning the allegation of providing funds to support a political party, the All Progressives Congress (APC), in buying votes during the Ondo State gubernatorial election published by Nairaland, the Corporation explained that the NNPC is owned by the Federation and indeed, all Nigerians, hence, it is non-partisan and does not engage in sponsorship of political parties or causes.
NNPC called on Saharareporters and Nairaland to retract the reports failing which it would be forced to seek legal redress as appropriate.
It also urged members of the public to discountenance the reports, stressing that they were a crass display of unprofessionalism with predetermined conclusions aimed at serving the selfish purposes of their sponsors.

NNPC Records 99.7% Loss Reduction In 2019 Audited Financial Statement

NNPC
NNPC
Barely five months after publishing its 2018 Audited Financial Statement, the Nigerian National Petroleum Corporation (NNPC) has released its 2019 Audited Financial Statement with a 99.7% reduction in its loss profile from ₦803bn in 2018 to ₦1.7bn in 2019.

A statement by the Corporation’s spokesman, Dr. Kennie Obateru, quoted the NNPC Chief Financial Officer (CFO), Mr. Umar Ajiya, as saying that the 2019 Audited result, which was concluded five months after the release of the 2018 Audited Financial Statement, will be published on the Corporation’s website for all to see in keeping with Management’s commitment to transparency and accountability and in consonance with the principles of the Extractive Industries Transparency Initiative (EITI) of which it is a partner.
Giving further insight into the 2019 AFS, the CFO disclosed that general administrative expenses also witnessed a 22% dip from ₦894bn in 2018 to ₦696bn in 2019.
According to Ajiya, majority of the subsidiaries posted improved performance namely, the Nigerian Petroleum Development Company Limited (NPDC) which recorded ₦479Billion profit in 2019 compared to ₦179Billion in 2018 representing 167% increase; the Integrated Data Sciences Limited (IDSL) recorded ₦23Billion profit in 2019 compared to ₦154Million in 2018 representing 14966% increase; the Petroleum Products Marketing Company (PPMC) recorded ₦14.2Billion profit in 2019 compared to ₦9.3Billion in 2018 representing 52% increase; while the Refineries have maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimization drive.
The CFO explained that the improved performance in the 2019 financial year was driven mainly by cost optimization, contracts renegotiation and operational efficiency. He said “the 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability and Performance Excellence (TAPE) while the outlook for 2020 looks promising in view of the Management’s strong drive to prune down running cost and grow revenues.”
It would be recalled that the Group Managing Director of NNPC, Mallam Mele Kyari, had promised to sustain the publication of the Corporation’s Audited Financial Statement as part of efforts to deepen transparency and accountability and keep stakeholders abreast of NNPC operations.

NNPC Says ANOH Gas Projects to Produce 600MSCFD Equivalent of 2.4GW of Electricity

Mele Kyari. MD, NNPC
Mele Kyari. MD, NNPC
As part of concerted efforts to ramp up gas-to-industries and gas-to-power in the country, the Nigerian National Petroleum Corporation (NNPC) has revealed that the Asa North-Ohaji South (ANOH) gas project, one of the largest green field gas condensate development projects ever undertaken in Nigeria, was expected to produce 600million standard cubic feet of gas per day, an equivalent of approximately 2.4gigawatts of electricity for the country.
Group Managing Director of the NNPC, Mallam Mele Kyari, made this known while delivering a goodwill message at the 2020 South East Gas Utilization Forum in Owerri, Imo State.
In a press statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru, Mallam Kyari was said to have commended the imminent completion of the landmark Obiafu-Obrikom-Oben “OB3” gas pipeline project which would help commercialize over 2billion cubic feet of gas per day and generate billions in revenue as well as create thousands of employment opportunities for Nigerians.
Mallam Kyari, who was represented at the occasion by the Corporation’s Chief Operating Officer, Gas and Power, Engr. Yusuf Usman, said “NNPC as an enabler organization has since realized the obvious economic importance of gas and has consistently made concerted efforts towards delivering the right infrastructure and commercial structures, in a bid to deliver value to customers and all stakeholders,”.
He stated that the laudable initiative of the Gas Aggregation Company of Nigeria (GACN) aimed at facilitating the optimal use of natural gas to drive industrial and economic growth aligns completely with President Muhammadu Buhari’s aspirations of prioritizing gas development for economic growth, power generation and the eventual industrialization of Nigeria.
In his keynote address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that the best way to diversify Nigeria’s economy would be by driving the development and utilization of the nation’s abundant gas resources, describing the South East as a region where an industrial miracle was about to happen.

DPR Sets New Rules For Gas-Dispensing Companies

DPR
DPR
The Department of Petroleum Resources (DPR) has declared that any company that wants to set up gas-dispensing facilities will henceforth get three approvals and licenses, and scale other regulatory hurdles before obtaining the go-ahead to begin operations.

According to DPR, “Companies intending to establish these facilities must satisfy all necessary requirements stipulated by DPR and obtain the underlisted applicable approvals: Site suitability approval; Approval to Construct (ATC)/Approval to Install; and Licence to Operate.

A statement by the DPR head, Sarki Awalu notes that “Necessary amenities and equipment’s like functional automated/manual leak tester, functional fire alarm system, and mounted gas detectors, adequate fire water storage and sprinklers, perimeter fence with fire wall amongst others must be provided in the facilities.”

The policy shift is coming days after a gas explosion at Baruwa, Ipaja, Lagos resultedin the death of a number of locals and spurred collateral damages that affected over 20 buildings.

While taking stock of the accident, the DPR observed the facility was unlicensed and had been running illegitimately, Mr Auwalu said, citing this as the ground for the inferno.

The new operational framework entails preconditions and terms for running Liquefied Petroleum Gas refilling plants and retail outlets, and for setting up autogas refuelling stations, add-on gas facilities as well as gas storage and utilisation.

The DPR head disclosed that the policies aim at deepening gas penetration and utilisation as well ad firming up operational safety and the ease of doing business in the energy industry.

Baruwa Gas Plant Fire: NNPC Commiserates With Lagosians

NNPC Towers
NNPC Towers
The Nigerian National Petroleum Corporation has commiserated with the Government and people of Lagos State, and particularly the residents of Baruwa area, on the gas plant fire incident that ravaged the community in the early hours of Thursday.
A press statement by the Corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, expressed the NNPC’s sincere sadness at the loss of lives and property, caused by the incident barely a few weeks after a similar incident at Iju Ishaga area of the state.

It assured that though NNPC’s pipelines were not anywhere close to the location of the incident, the Corporation swiftly mobilized its Health, Safety and Environment (HSE) Team, in collaboration with other relevant agencies of Lagos State Government and ensured that the situation was promptly brought under control.
It called on operators of gas plants and other petroleum products facilities in the Country to ensure strict adherence to safety rules and regulations to avoid incidents of this nature and the unnecessary loss of lives and property.

Downstream Sector Deregulation Will Boost Investment In Refining – Kyari

Mele Kyari, GMD, NNPC
Mele Kyari, GMD, NNPC
The deregulation of the downstream sector of the oil and gas industry in Nigeria will increase investment in the refining business and facilitate exponential growth in the nation’s refining capacity.
This was the submission of the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, at the opening ceremony of the African Refiners Association (ARA) Week 2020 which held virtually with the theme: “Towards Cleaner Fuels for Cleaner Air.”
A statement by the Group General Manager, Group Public Affairs Division of NNPC, Dr. Kennie Obateru, revealed that the GMD delivered a keynote address entitled, “Vision for the Downstream Sector on the Continent,” at the event in which he advocated deeper collaboration among downstream players across the African continent to provide solutions to challenges of substandard fuels.
Mallam Kyari said though the idea of price stabilization which led to the introduction of fuel subsidy in the 1970s was noble, it had grown into a huge financial burden on the nation’s treasury over the years, necessitating its removal in March 2020. He stressed that the move will not only free up much-needed cash to fund infrastructural development, but will also eliminate market distortion, foster competition between operators, get more private sector players to build refineries in the country and promote efficiency across the entire value chain.

He said increasing Africa’s refining capacity as well as quality of fuel required respective refineries to implement sustainable, coordinated pan-African solutions that would meet the target fuel specifications and thus protect the health and wellbeing of African nations and their citizenry.
“It is important to note at this point that the future of our continent does not just lie in our ability to unlock value from our vast natural resources or powering an industrial and economic revolution, but also in our ability to implement proven refining solutions that consider the broader public health implications of our business decisions,” the GMD stated.

He said NNPC was making concerted efforts to carry out holistic rehabilitation of its refineries in Port Harcourt, Warri and Kaduna, noting that it was also collaborating with relevant stakeholders to establish modular and condensate refineries as well as supporting private sector establishment of refineries.
“These projects will be in line with the AFRI standards of AFRI-4 specifications of 50 particles per million for diesel and 150 particles per million for gasoline by 2020, and AFRI-5 specification of 50 particles per million of sulphur in gasoline and diesel by 2030 respectively. Considering that revamp of petroleum products storage depots and associated pipelines is key to optimal operations of the refineries, the Corporation has decided to use a Build, Operate and Transfer (BOT) strategy to restore these facilities using private sector financing,” Mallam Kyari informed.
According to him, this process has progressed significantly as the process of partner selection was ongoing to ensure sustainability of the refineries post rehabilitation.

Nigeria, he maintained was intensifying the use of natural gas to ensure lower emissions, adding that natural gas has been identified as the fuel of choice for the future as it has the full credentials to support the achievement of the Sustainable Development Goals (SDGs).
The NNPC helmsman also disclosed that the outlook for the downstream sector both in Nigeria and across the African continent looks bright with attractive market conditions, large market, significant crude distillation capacity additions from various refinery projects, improvement of the distribution network and the use of natural gas.
He called on the refining professionals across the continent to utilize the abundant opportunities for strategic collaboration across the entire downstream value chain towards delivering value for the continent.
On his part, the Executive Secretary of ARA, Engr. Anibor Kragha, applauded the NNPC for its efforts to bolster the continents’ refining capacity, assuring that the Association along with other stakeholders would support the Corporation to achieve its noble objectives.

How NIMASA  Will Check Engagement Of Unregistered Vessels

NIMASA DG - Dr. Bashir Jamoh
NIMASA DG – Dr. Bashir Jamoh
The Nigerian Maritime Administration and Safety Agency (NIMASA) has issued a three-month ultimatum to companies engaged in Cabotage trade in Nigeria to register all vessels used in coastal and inland waters trade.

At  the expiration of the three months, NIMASA would notify relevant government authorities and International Oil Companies (IOCs) to bar vessels without valid Cabotage certificates.     

 Speaking shortly after the Agency released a Marine Notice by the Agency to announce the decision, Director-General of NIMASA, Dr. Bashir Jamoh, explained that the notice was part of efforts to ensure strict enforcement of the Coastal and Inland Shipping (Cabotage) Act 2003 and Guidelines on Implementation of the Coastal and Inland Shipping (Cabotage) Act 2003.   

Jamoh reiterated that the Cabotage Act provided that every vessel intended for use in domestic trade must be duly registered by the Registrar of Ships. 

The NIMASA DG, maintained that vessels without registered certificates will not be allowed to operate in line with the requirements of the Guidelines on Implementation of the Cabotage Act 2003.   

He said, “The law provides that every vessel intended for use under the Cabotage Act must be duly registered in the appropriate register and the operational certificates be renewed annually. We are out to ensure strict implementation of NIMASA’s mandate under the law. 

“Ultimately, our intention is to build and continue to enhance the capacity of Nigerians in the shipping industry in line with relevant international regulations.” 

NNPC Committed To Aggressively Grow Domestic Gas Utilization. …As Kyari Urges Speedy Passage Of PIB

Mele kyari
Mele kyari, GMD, NNPC
In its determined effort for balanced economic growth, the Nigerian National Petroleum Corporation (NNPC) is focusing on growing the nation’s domestic gas utilization.
This measure is inkeeping with the objectives of the United Nation’s 2030 Agenda for Sustainable Development and the Paris Climate Accord,
Group Managing Director of NNPC, Mallam Mele Kyari, disclosed this Tuesday at the BusinessDay Energy Series Summit which held virtually with theme: “Nigeria at 60: Harnessing Nigeria’s Energy for the Future”.
A press release by the Corporation’s spokesman, Dr. Kennie Obateru, quoted the GMD as restating NNPC’s commitment to the aggressive implementation of the Nigerian Gas Master Plan as a way of stimulating massive and sustainable economic development using natural gas which the nation has in abundance.
Mallam Kyari, who spoke on the topic: “NNPC’s Perspectives on Nigeria’s Gas Sector Development,” said apart from the Corporation’s commitment to deliver key gas infrastructural projects such as the Escravos-Lagos Pipeline System II (ELPS II), the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, and Central Gas Processing Facilities (CGPFs), NNPC was working on growing domestic gas utilization to 5billion standard cubic feet of gas per day (scf/d) and developing 5gigawatts (GW) of power generation by 2022.
“At the NNPC, we are aggressively pursuing other gas development initiatives with the aim of improving Nigeria’s economy using the appropriate fuels. In terms of Gas and Power, we are developing and integrating gas and power infrastructure networks (increase interconnectivity) as well as stimulating gas demand (power generation, feedstock and transport, etc.),” the GMD informed.
He said NNPC was also exploring partnerships and investments in transmission to unlock evacuation and improve power distribution across the country, stressing that the Nigerian Liquefied Natural Gas (NLNG) Train 7 would be delivered by 2024.
“We are equally collaborating among key industry players and government agencies on key sectors even as we are developing energy related policies and investment packages to attract Foreign Direct Investment (FDI),” the NNPC boss stated.
He said the focus on the development of key areas will not only expand the Corporation’s domestic gas footprints, but also support the development of petrochemicals, fertilizer, methanol and other gas-based industries that will generate employment and facilitate balanced economic growth.
He applauded the support of President Muhammadu Buhari and the efforts of the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, in driving initiatives aimed at positioning natural gas for sustainable development, noting that a number of the Federal Government’s gas initiatives such as the 7 Big Wins, the National Economic Recovery and Growth Plan (ERGP 2017-2020), the National Gas Policy (2017), have helped a great deal pushing the gas development agenda
“I would not end this discussion without emphasizing the need for proper legislation. The passage of Nigeria’s Petroleum Industry Bill (PIB) is long overdue. It is one piece of legislation that will expand economic growth via improved revenue flows from the oil and gas sector and make the industry efficient and competitive. NNPC is committed to supporting a sustainable legislation that will bring transformation to the industry, promote transparency and accountability across the value chain,” Mallam Kyari posited.

NNPC To Be Commercialized Not Scrapped Under PIB – Sylva

Timipre Sylva, Nigeria's Petroleum Minister
Timipre Sylva, Nigeria’s Petroleum Minister

The Minister of State for Petroleum, Timipre Sylva has dismissed media reports that the new draft Petroleum Industry Bill (PIB) sent to National Assembly has recommended the scraping of the NNPC.

The minister allayed the fears while fielding questions from journalists at the National Assembly after an interactive session with the leadership of the assembly.

He, explained that the new PIB draft sought to commercialise and not to scrap the NNPC.

According to him, “We have heard so much noise about NNPC being scrapped but that is not being envisaged by the bill at all.

“NNPC will not be scrapped but commercialised in line with deregulation move being made across all the streams in the sector comprising of upstream, downstream and midstream.

“We have said that NNPC will be commercialised.

“But if you are talking about transforming the industry, the only new thing that we are introducing is the development of the midstream, that is the pipeline sector.

“So we have provided robustly for the growth of the midstream sector.

“Through commercialisation, the required competitiveness in the sector, will be achieved,” he said.

Sylva said that the host communities would also have the best deal from the bill.

Sylva insisted that via the PIB, the industry will be transformed and the Petroluem Equalisation Fund (PEF)and the Petroleum Products Pricing Regulatory Agency (PPPRA) will not exist in the same form that they exist currently.

“But I don’t want to go into the details of the bill until it is read on the floor of the Senate,” he stated