NNPC Announces $120.49m Crude Oil Receipt in September

The Nigerian National Petroleum Corporation (NNPC) has announced a total export receipt for crude oil and gas valued at $120.49 million for the month of September 2020.

A press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru, stated that the figure is contained in the September 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The $120.49 million crude oil and gas export receipt is a 16.28 per cent improvement on the $100.88 million posted in August 2020.
The report showed that out of the figure, proceeds from crude oil amounted to $85.40 million while gas and miscellaneous receipts stood at $25.31 million and $9.78 million respectively.
The September 2020 MFOR also indicated a trading surplus of ₦28.38 billion slightly lower than the ₦29.60 billion surplus in August 2020.
The marginal reduction in surplus, according to the report, was as a result of lower contribution from the Nigerian Petroleum Development Company (NPDC) which recorded zero crude oil lifting from the Okono Okpoho facility during the month due to ongoing repairs.
However, other NNPC subsidiaries namely the Integrated Data Services Limited (IDSL), National Engineering and Technical Company Limited (NETCO), Nigerian Gas Marketing Company (NGMC), Petroleum Products Marketing Company (PPMC) and NNPC Retail posted impressive trading results recording 268%, 234%, 21%, 422% and 41% trading surpluses respectively over their previous month’s performance.
In the gas sector, a total of 223.82billion cubic feet (bcf) of natural gas was produced in the month under review translating to an average daily production of 7,460.80million standard cubic feet per day (mmscfd).
For the period September 2019 to September 2020, a total of 3,039.05bcf of gas was produced representing an average daily production of 7,730.35mmscfd during the period. Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.10%, 20.29% and 10.61% respectively to the total national gas production.
Out of the 221.91bcf of gas supplied in September 2020, a total of 140.45bcf was commercialized, consisting of 36.37bcf and 104.08bcf for the domestic and export markets respectively.
This translates to a total supply of 1,212.17mmscfd of gas to the domestic market and 3,469.45mmscfd of gas supplied to the export market for the month.
This implies that 63.29% of the average daily gas produced was commercialized while the balance of 36.71% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 6.66% for the month under review (i.e. 492.93mmscfd compared with average gas flare rate of 5.84% i.e. 439.90 mmscfd for the period of September 2019 to September 2020).
To ensure effective supply and distribution of Premium Motor Spirit (PMS) across the country, a total of 0.59bn litres of PMS translating to 19.59mn liters/day was supplied for the month in the downstream sector.
During the period under review, 21 pipeline points were vandalized representing about 43% decrease from the 37 points recorded in August 2020.
Of this figure, Mosimi Area accounted for 90% of the vandalized points, while Port Harcourt Area accounted for the remaining 10%. NNPC, in collaboration with the local communities and other stakeholders, continuously strive to reduce and eventually eliminate this menace.
The 62nd edition of the MFOR highlights NNPC’s activities for the period of September 2019 to September 2020.
In line with the Corporation’s commitment of becoming more accountable, transparent and driven by performance excellence, the Corporation has continued to sustain effective communication with stakeholders through the MFOR and other reports published on its website and in national dailies.

96 Reputable Firms Submit Bids For NNPC  Downstream Infrastructure Rehab.

NNPC
NNPC
Buoyed up by the culture of Transparency, Accountability and Performance Excellence (TAPE) of the current NNPC management, no fewer than (96) prominent and reputable companies from various jurisdictions have indicated interest in undertaking the rehabilitation of the Nigerian National Petroleum Corporation’s (NNPC) downstream infrastructure ranging from critical pipelines to depots and terminals through the Build, Operate and Transfer (BOT) financing model.
This was disclosed at a virtual public bid opening exercise which held at the NNPC Towers, Abuja for the pre-qualification of companies for the contract.
A press statement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, explained that the public opening of the bids for the contract was in keeping with the NNPC Management’s commitment to transparency and accountability in all its processes and transactions.
Speaking at the event, the Managing Director of the Nigerian Pipelines and Storage Company (NPSC), Mrs. Ada Oyetunde, disclosed that the exercise was in conformity with the mandate of the Federal Government to prioritise the rehabilitation of critical downstream infrastructure across the country.
She listed the facilities that would be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots, and terminals, stressing that the objective is to get them ready to support the refineries when they become operational after their rehabilitation.
“An open tender for pre-qualification of interested companies was published in August 2020 in the national dailies, for the rehabilitation of NNPC downstream critical pipelines and associated depots and terminal infrastructure through Finance BOT to cover the 4 lots namely: Lot 1: Port Harcourt Refinery related infrastructure, Lot 2: Warri Refinery related infrastructure, Lot 3: Kaduna Refinery related infrastructure and Lot 4: System 2B related infrastructure,” Mrs. Oyetunde stated.
The NPSC boss said that the BOT arrangement would provide a reliable pipeline network and automated storage facilities for effective crude feed, product storage and evacuation from the nation’s refineries post-revamp through an open access model and charge market reflective prices and tariffs to recover the investment.
Earlier, the Group General Manager, Supply Chain Management, Mrs. Aisha Katagum, commended the Infrastructure Concession Regulatory Commission (ICRC), and the Bureau of Public Procurement (BPP) for providing guidance for the project and assured the bidding firms of a fair, equitable and transparent selection process.
On hand to observe proceedings at the public bid opening exercise were representatives of the ICRC, BPP, the Nigeria Extractive Industries Transparency Initiative (NEITI) and Civil Liberties Organisations (CLOs).
Highpoint of the event was the display of the 96 companies that submitted bids for the rehabilitation projects.

NNPC To Focus More on Gas Condensates for Revenue Growth As It Commits To OPEC+ Agreement

Mallam Mele kyari
Mallam Mele kyari
The Nigerian National Petroleum Corporation (NNPC) has reiterated its commitment to abide by the output cut agreement of the Organization of the Petroleum Exporting Countries (OPEC) and its allies aimed at stabilizing the global oil market.

Group Managing Director of the Corporation Mallam Mele Kyari, stated this Wednesday while speaking at the ongoing virtual Gulf Intelligence “Global” UAE Energy Forum 2021.
Mallam Kyari noted that despite the negative effects of the production cut on government revenue, it was the best step towards redeeming the value of hydrocarbon resources at the global market in the interest of all.
Speaking on the topic, “Outlook for Africa/Nigeria’s Oil & Gas Sector in Post-Covid Era”, he said NNPC was hopeful that by the end of the year demand for crude oil would pick up and there would be a marginal increase in output, stressing that the Corporation was focusing more on gas, condensate and other revenue streams to tackle the revenue challenge arising from the OPEC+ production cut arrangement.
He explained that gas proved to be a steady and reliable revenue stream during the height of the Covid-19 pandemic in 2020, adding that gas production and utilization would remain a key priority for the Corporation in 2021.
Earlier in his presentation, the Minister of Energy & Agriculture, United Arab Emirates (UAE), H.E. Eng. Suhail Mohamed Al Mazrouei, appealed to all oil producing nations not to flood the market with crude oil.
He said the UAE was at the moment is more concerned about balancing the market forces of demand and supply in the global market than growing market share.

NNPC Appoints Implementation Programme Manager To Deepen Compliance with EITI Standards

In keeping with its resolve to deepen its compliance with the transparency standards dictated by the Extractive Industries Transparency Initiative (EITI) as a Supporting Company, the Nigerian National Petroleum Corporation (NNPC) has announced the appointment of Ms. Murjanatu Ibrahim Gamawa as EITI Implementation Programme Manager to help drive speedy attainment of the EITI requirements across its operations.
A press statement by the group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, revealed that Ms. Gamawa’s appointment which will take effect from January 2021 was a practical step towards entrenching the culture of transparency in the Corporation.
Ms. Gamawa, a petroleum geologist, was until her appointment, the EITI Country Manager in charge of coordinating implementation of EITI standards across Anglophone Africa.
She also worked at the Nigeria Extractive Industries Transparency Initiative (NEITI) as a petroleum analyst and team lead of the Oil and Gas Team.
Gamawa’s wealth of experience across the Oil and Gas industry and in EITI mandate implementation is expected to boost the Corporation’s compliance strategy and roadmap.

NNPC Explains PHRC EPC Rehabilitation Contract Tender

NNPC Towers
NNPC Towers
The Management of the Nigerian National Petroleum Corporation (NNPC) has condemned in the strongest term possible, the unwarranted attack on the well-conceived and appropriately articulated rehabilitation programme of the nation’s refineries by some nondescript characters under the questionable cognomen of “Buharites Solidarity Project” just to attract undue attention and relevance.

The group according to the NNPC in a publication attempted unsuccessfully to cast aspersion on the entire system in an unmistakable attempt at disrupting the ongoing process for the award of the Engineering Procurement and Construction (EPC) contract for the rehabilitation of the Port Harcourt Refinery.

The publication, the Corporation further stated reveal a poorly choreographed attempt to create a wedge of discord between the Management and Board of the NNPC by spewing a cocktail of illogical tales and obvious lies.

NNPC said it is of public knowledge that the Management of the Corporation under the able leadership of Mallam Mele Kyari has demonstrated an impeccable capacity for transparency and accountability in the operation of the National Oil Company.

Needless to highlight that the processes and procedures leading up to the bid cum tendering exercise for the award of the PHRC Rehabilitation EPC contract have not only remained in the realm of public scrutiny but have been heavily subjected to all statutory provisions as provided in the Public Procurement Act and with all relevant agencies of government carried along.

For the purpose of clarity and in deference to the over 200 million Nigerians who we regard as our shareholders, the insists it is necessary to provide a timeline of activities relating to the matter below:

The Corporation explained that on October, 2016, NNPC sought approval to engage Original Refinery Builders (ORB), JGC Corporation, to rehabilitate the Port Harcourt Refining Company (PHRC) to optimal performance and commercial profitability.

JGC Corporation instead proposed a joint execution approach and thus nominated Messrs Tecnimont SpA Italy (TCM) as its representatives on the Rehabilitation project.
The submissions by the Messrs Technimont was extremely exorbitant as a result of that single sourcing strategy used. Therefore, NNPC sought and obtained Mr. President’s gracious approval on 22nd May, 2020, for the change of strategy from Original Refinery Builders (ORBs) to selective tendering of Global reputable Engineering Procurement and Construction (EPC) Companies including the ORBs to tender for the Refineries rehabilitation projects.
The NNPC Tenders Board (NTB) on Friday, 19th June, 2020 approved the shortlist of Thirty (30) Global Reputable EPC companies including the ORBs; ranked by a globally recognized resource tool of the Refining and Petrochemical Middle East for the selective tendering of the EPC phase of PHRC Rehabilitation Project.
(https://www.refiningandpetrochemicalsme.com/lists/top-30-epc-contractors-2019).

At the deadline of bid submission, the NNPC Said only Ten (10) companies responded to the Prequalification Request out of which Messrs. Linde Engineering & Messrs. Chiyoda Corporation declined to participate in the tendering process, while Messrs. DAEWOO Engineering and Construction only indicated interest as a Sub-Contractor.
· Only seven (7) EPC Companies made submissions and their bids were virtually opened and endorsed via Microsoft Teams/Zoom on Friday, 24th July, 2020 in the presence of the bidders, Infrastructure Concession and Regulatory Commission (ICRC), Bureau of Public Procurement (BPP), Nigeria Extractive Industries Transparency Initiative (NEITI) and other Internal NNPC stakeholders.
The bids were, thereafter, evaluated in line with the approved evaluation criteria by the approved evaluation sub-committee (inclusive of external Representative) from the 27th to 29th July 2020. A cut-off mark of 75% was required to progress to the next stage of the tendering process.

THE PREQUALIFIED BIDDERS
Subsequently NTB approved the 7 underlisted ( Prequalified bidders)EPC companies to progress to the technical/Unpriced and commercial.
TechnipFMC, Saipem, Marie Tecnimont, Hyundai Engineering Company Ltd, Petrofac,Tecnicas Reuinidas and Worley Parsons were listed.
A Certificate of “No objection” to the Contract strategy was requested for and obtained from BPP on 14th August 2020.
The Technical/Unpriced and priced commercial was published to the EPC companies on the 14th September 2020 with a bid closing deadline of 23rd November 2020.
A total of 4 EPC companies declined further participation arising from their inability to submit competitive tenders due to a variety of reasons including challenges with their sub-contractors, the COVID-19 and the tight bid submission period.
Meanwhile, following Clarification Meetings held with the bidders, the bid closing deadline was extended to 30th November 2020. Along the tendering process, 12 clarification requests were received from the bidders and responded to accordingly. However due to requests from the bidders for submission of alternative bids, the ITT document was amended to accommodate alternative bids and communicated to the bidders. Furthermore, the PHRC Technical Audit Report was shared to all the 7 EPC Companies as well.
At the bid submission deadline of 30th November 2020, only one company, Messrs Technimont, submitted a proposal for the Refinery Rehabilitation.
The submission of a proposal by just one company was considered not satisfactory by NNPC.

Hence the NNPC Management in line with the PPA 2007, approved the re-tender of the project to all the prequalified 7 EPC Companies with a bid submission deadline of 7 January, 2021 to enable NNPC have a competitive commercial offer; also to ensure transparency and fairness of the process and to all bidders.

From the foregoing, it could be seen that the insinuation that the entire contracting process was ‘dubious’ or ‘rigged in favour of Technimont’ was nothing but a figment of the imagination of the faceless ‘Buharites Solidarity Project’ which, clearly, lacks any understanding of the ongoing process and refused to educate themselves nor get an update on the current position of things; all in an attempt to malign the reputation of the Corporation and its able leadership.

The Corporation and its leadership will, however, not be deterred and will remain focused in the pursuit of excellence and taking the Corporation to greater heights, the NNPC added.

NNPC Assures Of Lower Cost Of Production, Remaining Competitive

Mele kyari, GMD, NNPC
Mele kyari, GMD, NNPC

The Nigerian National Petroleum Corporation (NNPC) has, for the umpteenth time, pledged its commitment to bringing down the unit cost of oil production in the country to $10 per barrel, so as to remain competitive in the Industry and deliver value to all Nigerians.

A statement from the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the Group Managing Director of the Company, Mallam Mele Kyari, as making the pledge during the 20th Nigeria Oil and Gas Conference (NOG) themed: “Fortifying the Nigerian Oil & Gas Industry for Economic Stability & Growth” which held virtually.

Kyari projected that the global demand in the oil and gas industry will remain suppressed substantially till the end of 2020 but, however, noted that despite all the forecasts, oil will continue to play a significant role in the energy mix till 2050.

“So, it doesn’t mean oil will vanish. What it means is that in terms of its significance, in terms of the volumes of contribution, it will reduce as the years go by. It is also true that many countries have made significant business decisions in the use of fossil fuel, including the United Kingdom, which has said that no car will run on fossil fuel in the next 10 years. This portends a huge change in the way we consume fuel and as we progress, many countries may follow suit,” Kyari stated.

The NNPC helmsman observed that the ensuing global oil challenge will have an impact on NNPC’s production, which means that the Corporation must become more cost-efficient and be quick to the market.

“As a National Oil Company (NOC), looking forward to 2021 means we have to be more resilient and efficient in our operations. As a country, we have decided to bring down the cost of our oil production so as to remain competitive, be able to get to market earlier and remain in this game and ultimately, return value to our shareholders,” the GMD added.

He explained that the NNPC was already working hard to deepen domestic gas utilisation by emplacing the right fiscal environment and the right infrastructure in order to generate more employment and broaden Nigeria’s economy.

According to the GMD, the Petroleum Industry Bill (PIB) was the key enabler that would ensure NNPC’s fiscal environment becomes more competitive and transparent, where investors can project into the next 30 years.

Also in attendance at the event were some prominent Oil Industry personalities which include the Minister of State for Petroleum Resources, Chief Timipre Sylva; the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Mr. Mohammed Sanusi Barkindo; the Director of the Department of Petroleum Resources (DPR), Mr. Sarki Auwalu; Managing Director, Nigeria LNG, Mr Tony Attah and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote.

In his remarks at the occasion, Chief Timipre Sylva, assessed the state of the sector, agreeing that urgent steps must be taken to ensure its survival.

“For us in the Ministry of Petroleum, we are looking at the National Gas Expansion Programme (NGEP), which will boost the use of natural gas in the short and medium terms. It is also part of the plan by the federal government to shift from crude oil to gas. We have initiated actions to improve gas accessibility and availability, and promote gas-based industrialisation as well as economic diversification,” Sylva stated.

On his part, OPEC scribe Barkindo, noted that in the last couple of months, the oil and gas industry in Nigeria has rebounded by over 116 per cent due to the robust decisions taken by key stakeholders, including President Muhammadu Buhari, who he said played a pivotal role in the OPEC Declaration of Cooperation (DoC) document.

Kyari Pledges NNPC’s Support for Indigenous Shipping Coys.

 

    GMD,,NNPC, Mallam Mele Kyari (right) with Mr. Hassan Bello, Chairman of the Nigerian Fleet Implementation Committee Committee at a meeting in the NNPC Towers, Abuja.,GMD,,NNPC, Mallam Mele Kyari (right) with Mr. Hassan Bello, Chairman of the Nigerian Fleet Implementation Committee Committee at a meeting in the NNPC Towers, Abuja.,

The Nigerian National petroleum Corporation (NNPC) has expressed its readiness to support indigenous fleet owners to enjoy greater patronage and participation in the oil and gas maritime business in Nigeria.
The Group Managing Director of NNPC, Mallam Mele Kyari, gave the assurance while playing host to members of the Nigerian Fleet Implementation Committee who paid a working visit to the NNPC Towers, Abuja, recently.
Mallam Kyari said with the scale of the Corporation’s activities in the maritime sector, NNPC would get more active in the affairs of the Fleet Management Committee with a view to strengthening the synergy between the Corporation and the private sector.
“We believe in this process, we will ensure that Nigerian ships enjoy a greater patronage in the business henceforth,” Kyari assured.
Speaking earlier, Chairman of the Committee, Mr. Hassan Bello, said Nigeria was losing $1.9bn to foreign ship owners annually while appealing to the GMD to encourage NNPC subsidiaries to always engage indigenous shipping companies in their businesses.
He urged NNPC to grant local shipping companies the right of first refusal in crude oil lifting contracts, saying it would help grow the economy and sustain their businesses.
The Chairman noted that the Committee was set up three years ago by the Federal Ministry of Transportation with a mandate to promote Nigerian ownership of ships and vessels to enable local companies take control of the shipping business which is in line with the economic diversification policy of the Federal Government.

SEPLAT To Challenge Sealing  Of Head Office  Building In Court.   

Seplat-logo
Seplat-logo

SEPLAT Petroleum Development Company says it will vigorously defend against the improper action of 3rd 2nd December 2020, wherin the building in which SEPLAT Corporate Headquarters is located, at 16A Temple Road, Ikoyi, Lagos, was sealed in connection with a court case by Access Bank against Cardinal Drilling Services Limited (“Cardinal Drilling”), a third party providing drilling services to SEPLAT.

A statement from  Dr.Chioma Nwachuku – GM, External Affairs & Communications, Seplat Petroleum Development Company Plc/ read ” We understand that Cardinal Drilling has outstanding loan obligations to Access Bank. However, SEPLAT is neither a shareholder in Cardinal Drilling, nor has outstanding loan obligations or guarantees to Access Bank and did not at any time make any commitments or guarantees in respect of Cardinal Drilling’s loan obligations to Access Bank. SEPLAT strongly believes that there is no merit or justification for this action against it and has taken prompt legal action to vacate the court order pursuant to which the building was sealed.”

The action, the statement further adds was taken by Access Bank without any prior notice to SEPLAT, as required under Nigerian law.

To this end SEPLAT has vowed to vigorously defend against the improper sealing of its head office premises located at 16A Temple Road, Ikoyi, Lagos to the full extent of the law as well as seek all appropriate legal remedies.0

House Of Reps Hails NNPC’s Strides In Transparency At 2021 Budget Defense At NASS

 

Mele Kyari. MD, NNPC
Mele Kyari. MD, NNPC

The House of Representatives Joint Committees on Petroleum (Upstream, Downstream and Gas) have applauded the Nigerian National Petroleum Corporation (NNPC) for breaking new grounds in its commitment to transparency and accountability.

Chairman of the Joint Committees, Hon. Musa Sarki Adar, gave the commendation at a 2021 Budget Defense hearing, which held at the National Assembly Complex, where the Group Managing Director of NNPC, Mallam Mele Kyari, defended the Corporation’s 2021 Budget.

A press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru, stated that the Committee commended the Management of NNPC for defending the Corporation’s budget at the National Assembly in a timely manner.

“We have the GMD and his management team here to defend their budget, we appreciate this. We have witnessed what this parliament has never seen before, I stand to be corrected” Hon. Adar remarked.

The Chairman, who said he was initially skeptical about the GMD’s TAPE agenda, explained that he was beginning to see its positive impact through the GMD’s performance so far, adding that Kyari has done a lot for the country within a short time.

Responding, Mallam Kyari said upon his assumption of office as GMD, he was determined to turn the Corporation around for the benefit of all Nigerians by making it responsible and accountable to the people.

He said the courage to publish the 2018 and 2019 Audited Financial Reports of the Corporation was borne out of the support and encouragement given to him by President Muhammadu Buhari and his determination to leave a legacy of openness in NNPC.

Speaking further, he said Nigeria was capable of meeting the 3 million barrels per day oil production target, while decrying low investment in the oil and gas industry.

The NNPC helmsman appealed on the legislators to expedite action on the passage of the Petroleum Industry Bill (PIB) in order to attract investment to the oil and gas industry to help boost job creation.

 

Senate Lauds NNPC On Gas Projects, Financial Audit Report

NNPC Towers
NNPC Towers
The Senate Committee on Gas has commended the Nigerian National Petroleum Corporation (NNPC) on the various gas development projects it has undertaken, especially the Ajaokuta- Kaduna- Kano (AKK) gas pipeline project.
Speaking during the 2021 Budget Defense and Performance Appraisal meeting with officials of the Corporation which held at the National Assembly Complex, Chairman of the Committee, Senator James Manager, expressed satisfaction with the various gas development projects embarked upon by the NNPC despite the impact of Covid-19 on the oil and gas industry, saying: “We are proud of the AKK and some of your other projects”.
He said the interface between the committee and the NNPC would have been more frequent but for the lockdown due to the Covid-19 pandemic. He seized the opportunity to reassure the Corporation that his committee would undertake an oversight visit to the projects for proper assessment soon.
On his part, a member of the Committee, who is also the immediate past Chairman of the Committee, Senator Albert Akpan Bassey, said NNPC under the leadership of Mallam Mele Kyari has taken the Corporation to a new height by publishing the 2018 and 2019 Audited Financial Statements and for reducing losses by over 95 per cent.
“I want to commend the team led by the present GMD, a team of dedicated and passionate Nigerians. If they can reduce losses drastically within such a short time, I am sure the next report will reveal huge profit to the country. We must give them our support and cooperation,” he stated.
Speaking earlier during a presentation, the Group Managing Director of the NNPC, Mallam Mele Kyari, who was represented by the Chief Operating Officer, Gas and Power, Engr. Yusuf Usman, attributed the success of the Corporation in the gas sector to the support and cooperation of the Committee and the entire legislature.
He said gas supply to power has improved significantly, which was evident in the improved power supply currently being witnessed in the country.
“We have significant gas in the network currently, but the challenge however, is transmission,” the COO stated.
On the AKK pipeline project, Engr. Usman told the lawmakers that it was designed to supply 2billion cubic feet of gas per day (2bcfd), stressing that it would be the primary source of gas for the power plants currently being developed in Abuja, Kaduna and Kano.