NNPC report

Nigeria’s Competitiveness In The Oil Market Will Depend On Technology – Seplat CEO

Roger Brown, Seplat CEO

Technology will play a key role in ensuring Nigeria stays cost competitive in today’s oil market, Mr. Roger Brown, Chief Executive Officer of Seplat Plc, has said.

The Seplat CEO said this in his keynote address titled, “Oil Market Forum: Who Is In Control?” at the ongoing 2021 Nigerian International Petroleum Summit (NIPS) in Abuja.

With the International Energy Agency (IEA) setting out a road map to what it believes is required to achieve net carbon zero 2050 coupled with oil prices rising on COVID-19 pandemic recovery, traders betting on sustained revival in oil demand and the activities of OPEC/OPEC+, Brown noted that the end consumers, suppliers of energy, governments / regulators and providers of capital could b said to be in control of market outcomes.

Given the current market realities, he said Seplat has identified cost savings initiatives, flexibility to scale projects, promotion of innovation and gas resource development as major value drivers for all its stakeholders.

Brown therefore urged operators and other stakeholders to heighten their priority to increase operational efficiencies and reduce costs, ensured the implementation of high caliber remote working technologies, and adopt new systems, new habits and new patterns that have emerged and impacting work processes.

The Seplat CEO added: “There is the need for pursuit of strategic new opportunities and streamlining operations . Portfolios have been reshaped and capital reallocated to the highest-return opportunities, that is, those best aligned with future value creation and sources of distinctiveness.

“Environment, Social and Governance (ESG) principles are now key drivers in how companies plan for long term growth; thus the responsibility of companies to undertake gap analyses and ensure that sustainability thinking is embedded across the organization is very critical at this time.”

On oil and gas engagements, Brown urged Nigeria to reduce operational costs, aim to be lowest quartile producer, drive technological development using Artificial Intelligence; ensure lower costs to market, promote free market pricing for domestic gas with the right fiscal or other incentives, and balance LNG development with Domestic Gas – developing both.

On electricity, he advised that the country move away from off grid diesel generation, improve electricity supply chain and develop on grid gas as a catalyst for on-grid renewable energy.

While for biomass, Roger called for the development of the LPG and CNG markets, and reduction of reliance on biomass, that is, arresting deforestation. He also advocated for a balance of Environmental and Social development whilst delivering the 17 Sustainable Development Goals (SDG).

In embracing changes and controlling its future, he said Seplat was investing in its people and motivating them by providing a safe working environment and career development opportunities; pursuing profitable and sustainable new opportunities; driving energy transitions in its sectors and improving access to affordable and greener energy; and being a responsible and accountable corporate citizen, understand local issues and positively contributing to host communities.

According to him, Seplat is also improving profitability, maintaining strict cost control and implementing the most appropriate technologies whilst creating value for all stakeholders.

Senate Commends NNPC Anti-Corruption Efforts And  Profitability Drive


NNPC Towers

The Nigerian Senate has commended the Nigerian National Petroleum Corporation (NNPC) for its efforts towards entrenching transparency and stamping out corruption from its system.

The commendation was given by the Chairman of the Senate Committee on Anti-Corruption and Financial Crimes, Senator Suleiman Abdu Kwari, at a hearing which held at the National Assembly Complex, Abuja, to assess the level of implementation of the National Anti-Corruption Strategy by government agencies and parastatals.
Speaking at the hearing, Senator Kwari, said it is heartwarming to learn that the NNPC was making great strides towards profitability and urged the Corporation to sustain the gains recorded so far for the good of the country.
In his presentation at the hearing, the Group Managing Director of NNPC Mallam Mele Kyari, said the Corporation was championing the fight against corruption in the Oil and Gas Industry by emplacing measures to curb incidences of corruption across its various business portfolios and by enlisting as a partner company of the Extractive Industries Transparency Initiative (EITI).
He said the Corporation, as part of its commitment to the war against corruption, has set up processes and structures that are irreversible which would ensure transparency and accountability.
“We have created an anti-corruption desk in NNPC that engages the Economic and Financial Crimes Commission (EFCC) and other anti-corruption agencies on a regular basis. The desk ensures that in all our operations, every staff complies to the code of conduct procedures with consequence management. We have established regulatory compliant governance charter and transparency policy, this is a mark of our compliance to the anti-corruption strategy,” Mallam Kyari informed.
The NNPC helmsman maintained that the Corporation has automated its business operations thereby reducing opportunity for discretion to the barest minimum as part of measures to promote institutional framework for entrenching the culture of transparency in its operations.
The GMD disclosed that the Corporation, on its own, has reported several incidences of infractions such as products diversion and crude oil theft to the police, the EFCC and other investigating agencies of the Federal Government to stem corruption within the Oil and Gas Industry.
“For the first time in 43 years, NNPC, as a part of the evolving culture of transparency and accountability, published its Audited Financial Statements for 2018 and 2019. We are going to publish that of the 2020. The AFS is the only document that tells how a company does its transaction. We are happy that by the time the 2020 AFS will be published, Nigerians will see the dividends of our accountability. Mr. Chairman, no National Oil Company does what we are doing today,” Mallam Kyari enthused.
He said the Corporation, in collaboration with security agencies, has reduced the incidences of pipeline vandalism to four per cent across the country, but decried the rise in smuggling of petroleum products which he said has become a national challenge that must be addressed urgently to stem the huge loss to the nation.


World Environment Day: NNPC Committed To Sustainable Environment

Mele Kyari,GMD, NNPC
Mele Kyari,GMD, NNPC

The Nigerian National Petroleum Corporation (NNPC) says it remains committed to the promotion of sustainable environment across it operations, stressing that its energy transition programme and support for carbon neutral projects are proofs of that commitment.

The Group Managing Director of the Corporation, Mallam Mele Kyari, stated this at an event organized by the Group’s Health, Safety, Environment Department to mark this year’s World Environment Day.
He said the oil and gas industry and particularly the NNPC were conscious of the impact of their operations on the environment, hence, have been at the forefront of efforts to preserve the environment wherever they operate.
Mallam Kyari said it was in keeping with the philosophy of environmental sustainability that the oil and gas industry is leading a move towards energy transition and embracing carbon neutral activities.
“The oil and gas industry is also leading a move towards transition of energy where our activities become carbon neutral. It means that we have more respect for the environment, we carry out our activities in such a way that impact on the environment is at the barest minimum’’ Kyari stated.
The GMD said NNPC and its partners across the industry have succeeded in minimizing oil spills and emplaced measures to ensure that even when spills occur, they are immediately contained, adding that restoration of the environment was now a first line activity in the oil and gas industry.
He said NNPC would continue to engage stakeholders, regulatory institutions and global partners to ensure that the environment is preserved for generations to come.
Earlier in a key note address, the GMD congratulated Pakistan for hosting this year’s World Environment Day and expressed hope that Nigeria would be the first African country to host the global event.
In his address, the Chief Operating Officer, Corporate Services, Mr. Mohammed Ahmed, said NNPC would strive to carry out its business in alignment with the ecosystem and the theme of the 2021 World Environment Day: “Ecological Restoration and Resetting Our Relation with Nature”.
Also speaking at the occasion, the General Manager, Group Health, Safety, Environment and Quality, Engr. Hussaini Alli, said there was need for everyone to work towards preserving and sustaining the environment, stressing that the objective of the World Environment Day is to sensitize and galvanize people to take positive action for the sustenance of the environment.
The World Environment Day is observed on June 5th every year.
Pakistan was the global host of this year’s event which saw the launch of the United Nation’s Decade on Ecosystem Restoration.

NNPC Announces 314% Upswing In Trading Surplus In February

NNPC Towers
NNPC Towers

The Nigerian National Petroleum Corporation (NNPC) has announced a ₦39.85billion trading surplus for the month of February 2021 representing a massive 314.24% leap from the ₦9.62billion surplus it recorded in January 2021.

This is contained in the February 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a press release by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru. 

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.
According to the report, in February 2021, NNPC Group operating revenue as compared to January 2021, increased by 35.64% or N152.07billion to stand at N578.79billion. Similarly, expenditure for the month increased by 29.21% or N121.83billion to stand at N538.94billion. The expenditure for the month as a proportion of revenue was 0.93% as against 0.98% the previous month.
The significant increase in trading surplus is attributed mainly to reconciled accounts by the Corporation’s downstream subsidiary, the Petroleum Products Marketing Company (PPMC), using the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template.
Other factors that boosted the trading surplus figure, according to the Corporation, included the performance of Duke Oil, Nigerian Gas Company (NGC) and Nigerian Gas Marketing Company (NGMC) which recorded robust gains as a result of increased debt collection and cost optimization measures.
Conversely, during the period under review, 54 pipeline points were vandalized representing 50% increase from the 27 points recorded in January 2021.
The Warri Area accounted for 50% and Mosimi Area accounted for 39% of the vandalized points while Kaduna and Port Harcourt Areas accounted for 7% and 4% respectively.
NNPC continues to work in collaboration with the local communities and other stakeholders to eliminate the menace of pipeline vandalism.
In the period under review, the Corporation supplied a total of 1.41bn litres of Premium Motor Spirit (petrol) translating to 50.52m litres/day.
In terms of natural gas offtake, commercialization and utilization, out of the 206.05Billion Cubic Feet (BCF) produced in February 2021, a total of 133.06BCF was commercialized consisting of 40.15 BCF and 92.91 BCF for the domestic and export market respectively.
This translates to a total supply of 1,433.75Million Standard Cubic Feet Per Day (mmscfd) of gas to the domestic market and 3,318.25mmscfd of gas supplied to the export market for the month.
This implies that 64.48% of the average daily gas produced was commercialized while the balance of 35.52% was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 7.67% for the month under review (i.e. 565.52mmscfd) compared with average gas flare rate of 7.12% (i.e. 529.20mmscfd) for the period of February 2020 to February 2021.
The February 2021 NNPC Monthly Financial and Operations Report is the 67th in the series. It is published in keeping with the Corporation’s commitment to transparency and accountability.

OML 118: NNPC, SNEPCo, Others Sign Multibillion Dollar Deep-Water Agreement

L-R: MD, Nigerian Agip Exploration Ltd, Mr. Roberto Daniele; MD, Shell Nigeria Exploration and Production Company Ltd (SNEPCo), Mr. Bayo Ojulari, GMD, NNPC, Mallam Mele Kyari, MD, Total Exploration and Production Nigeria Ltd, Mr. Mike Sangster; and MD,Esso Exploration and Production Nigeria Ltd, Mr. Richard Laing, displaying the agreements signed on the resolution of disputes to give OML118 a new lease of life… Tuesday.
L-R: MD, Nigerian Agip Exploration Ltd, Mr. Roberto Daniele; MD, Shell Nigeria Exploration and Production Company Ltd (SNEPCo), Mr. Bayo Ojulari, GMD, NNPC, Mallam Mele Kyari, MD, Total Exploration and Production Nigeria Ltd, Mr. Mike Sangster; and MD,Esso Exploration and Production Nigeria Ltd, Mr. Richard Laing, displaying the agreements signed on the resolution of disputes to give OML118 a new lease of life… Tuesday.

The Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners – Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) – have executed agreements to renew Oil Mining Lease (OML) 118 for another 20 years.

The five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
A statement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, quoted the Group Managing Director of the Corporation, Mallam Mele Kyari, as saying that over $10bn of investment would be unlocked as a result of the agreements which signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC) and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria.
According to him, this is an indication of “a renewed confidence between NNPC and her partners; between the Government and the investing communities which include NNPC. It produces value for all of us by providing a clear line of sight for investment in the Bonga bloc of around $10billion,” Mallam Kyari stated.
He disclosed that the deal would yield over $780million in immediate revenues to the Federal Government while it would also free the parties from over $9billion in contingent liabilities.
“Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business,” the GMD enthused.
He thanked President Muhammadu Buhari, the Minister of State for Petroleum Resources, Chief Timpre Sylva, and the NNPC Board of Directors for enabling the Corporation to achieve this laudable landmark.
Also speaking at the event, the Country Chair of Shell Companies in Nigeria, Mr. Osagie Osunbor, said the OML 118 renewal agreement would remain a watershed in the history of deep-water investments in Nigeria, assuring that the giant stride would further bolster investor confidence in the country.
Speaking in a similar vein, the Managing Director of SNEPCo, Mr. Bayo Ojulari, noted that the agreements marked the end of a twelve-year dispute that had marred business relationship and affected trust and investment.
“Today, we have signed agreements that define the future of deep-water for Nigeria. This is the first deep-water block that was developed in Nigeria and it is also the first one that we are resolving all the disputes that will lay the foundation for the resolution of other PSCs,” the SNEPCo helmsman stated.
On their parts, the Managing Directors of Total, Mike Sangster, Exxonmobil, Richard Laing and NAOC, Roberto Danielle, all applauded the GMD NNPC, Mallam Kyari, for providing leadership which engendered the resolution of the disputes, assuring that the agreements would attract more investments into the Nigerian Oil and Gas Industry.

No Fuel Price Increase In June

Amidst fears of a possible increase in the price of petroleum products across the country, the minister of petroleum resources, Timipre Silva has assured that the will be no increase in the price of petrol in the month of June

A press statement signed by the
Hon. Minister of State for Petroleum   and made available to BudinessUpdate says “Once again, it has become necessary to assure Nigerians that despite the huge

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

burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.”

The minister maintained that the current price of petrol will be retained in the month of June until the ongoing engagement with organized labour is concluded.
He insisted that the  clarification became necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.
Timipre Silva further stated, “In this regard, I would like to strongly urge petroleum products marketers not to engage in any activity that could jeopardize the seamless supply and distribution system in place.
I also urge members of the public to avoid panic buying because the Nigerian National Petroleum Corporation (NNPC) has enough stock of petroleum products to keep the nation wet.

Seplat: Shareholders’ Approve Name Change …$344 million Dividend Paid Since 2014

Seplat logo
Seplat logo

Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), held its hybrid 8th Annual General Meeting (AGM) with shareholders, auditors, regulators, company directors, and the media, amongst other stakeholders joining physically and virtually.

Addressing shareholders and other stakeholders during the AGM, Dr. ABC Orjiako, the Chairman of Board, Seplat, said the company’s cash position remained strong in the full-year of 2020 and the $318 million of cash it generated from operations was significantly more than the $150 million invested for future growth.
The company’s capital expenditure in the 2020 business year was higher than the $125 million spent in 2019, which demonstrates the company’s commitment to growth; as it voluntarily repaid $100 million of its Revolving Credit Facility and ended the year with $225 million in cash and net debt of $440 million.
The company’s average working interest production was 51,183boepd, including 33,714bopd of liquids and 101MMscfd gas (17,469boepd).
He said: “Of this, our Eland assets contributed 8,855bopd, or 26% of total liquid volumes. Our financial performance enabled us to maintain our commitment to paying dividends. While other companies were cutting back or cancelling payments for the 2019 financial year, because of prevailing uncertainties, we honoured our commitment and paid a final dividend of US$0.05, for a total dividend of US$0.10 for 2019.
“In October 2020, we announced an interim dividend of US$0.05 and the Board has since approved an additional top-up of US$0.05, maintaining our US$0.10 dividend for the 2020 financial year. Since we raised $535 million at our initial public offering in May 2014, we have returned $344 million to shareholders in the form of dividends.
“The strengthening of our Board is part of our ongoing desire to achieve world-class governance of our company. Six of our 13-member Board are independent and we continue to work towards increasing diversity. In addition, as we announced in March, we have taken the bold decision to eliminate all Related-Party Transactions – a move that exceeds the requirements of the UK Code of Corporate Governance.”
According to Dr. Orjiako, it is the responsibility of the Board to plan for the long-term sustainability of the company, as scenario analyses on Seplat’s assets have been conducted under different climate change and demand scenarios, whilst looking towards a future in which Seplat is much more involved in promoting low carbon environment in its operations and the company adopting Seplat Energy as its new name following the passage of the resolution at its AGM.“Such a transition will involve significant new innovations, technology, skills and relationships, compared to our existing expertise of subsurface exploration, drilling and hydrocarbon processing, but we are determined to be a major part of Nigeria’s future energy mix and help drive the country towards more sustainable energy generation,” the Seplat Chairman emphasized. 

He added: “Our ANOH Gas Processing Plant will be a major step forwards in Nigeria’s drive to reduce carbon emissions, replacing potentially millions of small-scale, inefficient, and polluting generators with cleaner utility-scale power generation fired by Nigeria’s natural gas. In addition, we intend to increase our disclosure of environmental, social and governance (ESG) data, by adopting the recommendations of the Task Force on Climate-related Financial Disclosures and will commit to reporting CO2 emission data to the Carbon Disclosure Project in the near future.
“Helping our communities as part of our ESG commitment,5 is already apparent in the long-term projects we implement in our host communities. As the Covid-19 pandemic struck Nigeria, it was our duty to help our host communities and States in whatever ways we could.”
In the same vein, Mr. Roger Brown, Chief Executive Officer, Seplat, said there is pressure to reduce oil extraction and the carbon emissions it creates; but that, he noted, depended on the rest of the world adopting less oil-intensive ways to travel and generate power.
He explained: “Nigeria’s per-capita energy consumption and carbon emissions are actually very low, and its national electricity grid is still very poorly developed. This is why the country is so reliant on small-scale diesel generation to satisfy its energy needs and this is the problem we need to address most urgently.
“It’s important to recognise that Nigeria is a developing country with low access to energy and a rapidly growing young population. Hydrocarbons are the country’s main resource and provide significant help for its economy. The proceeds from the oil industry fund a wide range of Sustainable Development Goals (SDGs) and are crucial to the country’s societal development.
“Nigeria needs to achieve significant growth in its capacity to deliver education and health services, food production and energy security. Without the development of its indigenous oil and gas industry these goals will become very difficult to achieve and so in Nigeria, the industry remains not just relevant but essential.”
According to Mr. Brown: “Seplat is embracing climate change opportunities on two fronts. Firstly, we continue to invest heavily in expanding our domestic gas business in line with the Government’s strategy to achieve universal access to electricity, and to make that energy cheaper and cleaner by replacing diesel generation, which is very damaging to the environment and the economy. Gas is clearly the next step for Nigeria, and we have a leading position domestically with the Nigerian Government declaring the ANOH project as one of the seven critical gas development projects for the country.
“Secondly, we have created a New Energy unit to focus on lower carbon to zero carbon fuel sources and the natural extension beyond gas is for Seplat to participate in renewable energy, such as solar power, and in emerging technologies such as carbon capture and storage. Our view is that Nigeria will benefit from being able to deploy renewable energy on its electricity grid rather than solely developing an off grid renewable solution. By providing a base load of cheaper, lower carbon gas on the grid, the acceleration of grid-based renewables will be possible, which is why we are currently focusing on accelerating our midstream gas business and additionally expanding into LPG, which is a good fuel source for cooking, preventing deforestation.”
“The priority for 2021 is to address our responsibilities as part of the global energy transition and to set realistic targets for how we as a company evolve to drive that transition along. Having survived the worst year in the history of the oil and gas industry, the actions we’ve taken before and during 2020 have left us in a position of strength and I am confident that as demand recovers and the imperative for gas increases, Seplat will exit 2021 a larger, stronger, more profitable company and strengthen its position as Nigeria’s indigenous energy leader.”
To this end, Mr. Emeka Onwuka, Chief Financial Officer, Seplat, said the company’s robust financial performance in 2020 demonstrated the importance of a prudent approach to managing its finances, focusing on capital allocation, revenue diversification, cost control, hedging and debt management.
He added: “Despite a challenging year, we repaid $100 million debt, invested $150 million for growth and maintained our dividend at $0.10 per share for the year.
“Financial sustainability begins with the decisions we make about capital allocation and the priorities we consider when using cash. Our aim has always been to maintain a healthy balance sheet, focusing on cash generation first and foremost so we can build up a large reserve for future deployment and protect ourselves against the kind of downturns the world experienced in 2020.

NNPC Reassures Nigerians On Port Harcourt Refinery Rehab  ..Says We Can’t Afford to Fail

L-R, Chief Operating Officer, Refineries and Petrochemicals, Engr Mustapha Yakubu, representative of Techimont S.P.A. ( the contractor), Mr. Masu Alberto  and Managing Director, Port Harcourt Refining Company, Engr Ahmed Dikko pledging to make the rehabilitation project a success...Thursday.
L-R, Chief Operating Officer, Refineries and Petrochemicals, Engr Mustapha Yakubu, representative of Techimont S.P.A. ( the contractor), Mr. Masu Alberto and Managing Director, Port Harcourt Refining Company, Engr Ahmed Dikko pledging to make the rehabilitation project a success…Thursday.

The Nigerian National Petroleum Corporation (NNPC) has kicked off construction work in the Port Harcourt Refinery rehabilitation project with a firm commitment not to fail Nigerians.
A statement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, quoted the NNPC Chief Operating Officer, Refineries & Petrochemicals, Engr. Mustapha Yakubu, as saying that everything was being done to ensure that the project is delivered hitch-free and on schedule.
Speaking at the Technical Kick-off Meeting for the project which held at the Port Harcourt Refinery Complex, Alesa Eleme, Rivers State, Engr. Yakubu said everything about the project had been carefully worked out to ensure that the target of at least 90% refining capacity is achieved when operational.
“It must be hitch-free and that is why we are engaging the host communities appropriately. 200 million Nigerians are looking up to us and we can’t afford to fail. We’ve been on this journey since 2019,” he said.
The COO disclosed that the project would require 3,000 workers at the peak of activities, stressing that out of that number there would be only 70 expatriates while the balance would be sourced locally in line with the local content policy.
He expressed gratitude to the Federal Government for approving $1.5 billion for the project.
Speaking earlier via a message delivered on his behalf by the Chief Financial Officer of the Corporation, Mr. Umar Ajiya, the Group Managing Director of NNPC, Mallam Mele Kyari, assured Nigerians that the Port Harcourt Refinery Company (PHRC) would roar back to life on or before April 5, 2023, when repairs would have been completed on the old refinery also known as Area 5.
He said the target was to fix the old refinery first so that local refining can resume as soon as possible, adding that NNPC management would do everything to support the contractor, Maire Technimont SPA, to ensure prompt delivery of the project.
“We are happy we have the contractor onboard. With strong collaboration of all parties involved, we will achieve the desired results. We have both government and private sector financing. We have the finance ministry, NEITI, labour unions and other stakeholders on board this project. They want to see transparency so they can report same to Nigerians and this is one of the most transparent processes ever”, he stated
In his presentation, the Managing Director of PHRC, Engr. Ahmed Dikko, said that all the process plants have been made hydrocarbon-free to enable the contractor carry out the rehabilitation work safely.
On his part, the representative of Maire Technimont SPA, Mr. Masu Alberto, said that the rehabilitation journey started in 2017 with integrity test of the refinery. “In 2019, we did work on it and then now. We’re deploying a good number of engineers”, he said.
He listed some of the key activities that will be carried out in the project to include refurbishing of the technical building, replacement of the fire-fighting and deluge sprinkler systems, refurbishing of 24 offsite tanks, replacement of electrical equipment in substation, installation of primary earthing integration and new lighting system.

He said the project would also involve the replacement of pumps, turbines, one expander, boilers, three compressor fans and blowers, tanks, vessel and drums among other items equipment.

NNPC Clears The Air On Its Financial Standing,   …Pledges To Optimize Cost, Boost Remittance To FAAC



The Nigerian National Petroleum Corporation (NNPC) has clarified that the revenue projection contained in the letter to the Accountant General of the Federation being cited in the media pertains only to the Federation revenue stream being managed by the Corporation and not a reflection of the overall financial performance of the Corporation.

A press statement by the Corporation’s spokesman, Dr. Kennie Obateru, disclosed that the clarification became necessary in the light of media reports insinuating that the Corporation was in financial straits.

NNPC maintains that it is conscious of its role and was doing everything possible to shore up revenues and support the Federation at all times.
“The shortfall will be remedied by the Corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the Corporation. The NNPC remains in positive financial trajectory for the period in question,” it stated.

The Corporation pledged to continue to pursue and observe its cost optimization process with a view to maximizing remittances to the Federation Account.

It would be recalled that NNPC, in a letter to the Accountant General of the Federation entitled: Re: Impact of Hike in Crude Oil Prices on the Deregulated Downstream Sector: Projected Remittance to the Federation Account for April to June 2021, which was inappropriately shared by unscrupulous persons, had projected that it would deduct the sum of N112bn from Oil and Gas proceeds for the month of April 2021 to ensure continuous supply of petroleum products to the country and guarantee energy security.

This has fueled reports of impending revenue shortfalls with dire consequences for the various tiers of government.

NNPC, however, assures that it would continue to meet its financial obligations to the Federation

Seplat, Board Chairman Win Most Profitable Company, Board Chairman Of The Year

Dr. A.B.C Orjiako, Chairman SEPLAT
Dr. A.B.C Orjiako, Chairman SEPLAT

Seplat Petroleum Development Company Plc has emerged the Most Profitable Company (Oil & Gas: Exploration and Production), with Dr. ABC Orjiako, Chairman SEPLAT emerging the Board Chairman of the Year at the Nigerian Investor Value Award (NIVA) organized by BusinessDay Media Limited in conjunction with the Nigerian Exchange Limited.

As the Most Profitable Company (Oil & Gas: Exploration and Production), SEPLAT was recognized for recording the highest percentage growth in profits year-on-year in its sector. The Company was said to have achieved this feat, while experiencing faster growth relative to its peers, and maintaining a relatively high operating performance.

“In 2020, like in previous years, SEPLAT has shown that its high profit margins are sustainable. Its strong profit position is not a flash in the pan, neither is it likely to be frittered away in coming years. This consistency has enabled the company to pay dividends regularly, service debts taken for recent strategic acquisitions, and underwrite new investments, while maintaining positive credit ratings,” the organizers explained.

In the same vein, the Board Chairman of the Year award recognizes a non-executive chairman or lead director who has demonstrated a passion for advancing the principles of good governance. Dr. Orjiako, according to the award organizers, have demonstrated the ability to objectively solve the most difficult boardroom challenges, with the proven experience to offer independent, sound guidance when the company faces hurdles and opportunities.

“Dr. A.B.C. Orjiako is selected as the winner of this award for leading the board of directors to set a strong corporate governance culture, and support for the executive management team in the enhancement of economic value with drive for Nigeria’s energy transition to gas fueling 30 per cent of Nigeria’s electricity supply,” the organizers noted.

The SEPLAT Chairman was said to have distinguished himself by: superintending a seamless CEO transition with the exit of Mr. Austin Avuru, who completed a very successful tenure, and appointment of Mr. Roger Brown; overseeing the selection of a new Chief Financial Officer (CFO), Mr. Emeka Onwuka, who is a seasoned executive that brings experience from the highest levels in financial services to his new position.

He was said to have supported the Board refreshment with the onboarding of Mr. Olivier de Langavant, CEO of Maurel & Prom as a Non-Executive Director, following the retirement of Mr. Michel Hochard, who also represented the interests of Maurel & Prom; as well as the Board’s commitment to payment of dividends despite COVID-19 and sharp drop in global energy demand.

In the same year, the Board of Directors of the company also appointed Ms. Arunma Oteh and Mr. Xavier Rolet as independent non-executive directors.

The award also lauded Dr. Orjiako’s presentation of one of the most lucid Chairman’s letters in recent history by educating shareholders on the company’s operating environment, choices, strategy, and opportunities in a style that is both engaging, and transparent; and leading the board-approved plan to eliminate Related-Party Transactions (RPTs), surpassing even United Kingdom regulations on RPTs.

In his address, the Chief Executive Officer, the Nigerian Exchange Limited, Temi Popoola, said the list of companies awarded showed a display of extraordinary courage and strength in a very challenged time.

In his remark, the Publisher, BusinessDay Media Limited, Mr. Frank Aigbogun, said the awards were indeed apt given the unprecedented challenges posed by the Covid-19 pandemic last year. According to him, the award recognized organisations that had displayed resilience and tact in the midst of adversity and uncertainty.

Commenting on the awards, the Director, External Affairs and Communications at SEPLAT, Dr. Chioma Nwachuku, on behalf of the Board, management and staff of the Company, thanked BusinessDay and the Nigerian Exchange for the honour and recognition accorded SEPLAT. She expressed the Company’s appreciation, saying the awards highlight the hard work and resilience displayed in the 2020 business year despite the challenges posed by Covid-19.

Dr. Nwachuku added: “Since inception, SEPLAT has continued to strive for operational excellence and sustainable value creation for all our stakeholders. The awards will continue to propel SEPLAT to greater achievements.”