Connect with us

Oil & Gas

NNPC targets China to boost Crude oil reserves

Published

on

The Nigerian National Petroleum Corporation(NNPC) says strategic partnership and new investments in the Upstream Petroleum Sector are essential to actualise the growth of the nation’s crude Oil reserves .

Group Managing Director of NNPC Malam Mele Kyari, disclosed this when the Executive Vice President of China National Offshore Oil Corporation (CNOOC), Mr Lu Yan Ji, paid him a courtesy visit in Abuja, on Thursday.

Mr Ndu Ughamadu, spokesman for the corporation said in a statement that the partnership would also help to achieve three milliion barrels per day oil production target by 2023.

He added that there was need to improve the nation’s revenue profile through new investments in the Petroleum Sector.

He commended CNOOC for its plan to expand its investment in the Nigerian Petroleum Industry and assured it of the corporation’s support.

“To have investment of  16 billion dollars in Nigeria is clearly an indication of your confidence in us.

“We have a target to grow production to three million barrels per day by 2023, to do that, we need partners like you. You can count on us because we have common interest, ” he said

In his remarks, Lu said Nigeria was one of his company’s largest investment destination with investment outlay standing at about 16 billion dollars.

He called for NNPC’s support in securing the investments, adding that there was need for both National Oil Corporations to work closely together.

He disclosed that CNOOC currently produces 800,000bpd worldwide with a target to hit 1.2 million barrels per day, adding that Nigeria was one of the targeted places to actualize the target.

CNOOC started business in Nigeria in 2005.

It currently has interest in Oil Mining Lease (OML) 130 in partnership with NNPC, Total and Petrobras.

ENO/SH

edited by Sadiya Hamza

Oil & Gas

OPEC congratulates Sylva, Minister of State Petroleum

Published

on

The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Mr Mohammad Barkindo, has congratulated  Mr Timipre Sylva on his appointment as Nigeria’s Minister of State for Petroleum Resources.

Barkindo disclosed this in a statement issued on Wednesday.

He described  the newly-appointed minister is a veteran of the oil industry in Nigeria, where he served as adviser to former Petroleum Minister, His Royal Highness, Dr Edmond Dakouru.

“He will bring his rich experience to bear on his new and heavy responsibilities.

“OPEC looks forward to working with him to advance the implementation of the historic Declaration of Cooperation and Charter of Cooperation,” he said.

It will be recalled that Slyva contributed profoundly to the institution of the Amnesty programme in the Niger Delta region which, over time, has led to restoration of peace in the oil producing areas of Nigeria.

Nigeria News Agency reports that Sylva from Bayelsa State was born July 7, 1964.

He holds a Bachelor’s degree in English Language and Linguistics from the University of Port Harcourt in 1986.

He began his working career with National Minority Business Council as Executive Secretary before his foray into politics and subsequent election into Rivers State House of Assembly in 1991.

He was elected Governor of Bayelsa in 2007.

Before his nomination as Minister he was Chairman, Governing Board of Oil and Gas Free Zone Authority.

Edited by Donald Ugwu

Continue Reading

Oil & Gas

692m barrels of crude oil produced in 2017 – Report

Published

on

The Nigeria Extractive Industries Transparency Initiative (NEITI) says that 692 million barrels of crude oil was produced in the country in 2017.

NEITI disclosed this in its report, entitled, “pilot study on commodity trading for 2017” and  released in Abuja, on Thursday.

“The total crude oil production for 2017 was 692 million barrels. Out of this volume, the share that went to the federation was 240.9 million barrels representing 35 per cent of the total crude oil production for the year 2017.

“ A trend analysis for the year under review shows that the 2017 federation share was four per cent higher than the 231.6 million barrels in the same category for 2016 but was 19 per cent lower than the 297.8 million barrels for 2015.’’

According to the report, it shows slight improvement on the figure for 2016, a year characterised by vandalism and sabotage of oil facilities.

It noted that crude production for 2017 was about a fifth less than the 2015 level.

The report further showed that out of 240.9 million barrels federation share for 2017, Domestic Crude Allocation (DCA) had 105. 9 million barrels or 44 per cent while FIRS Liftings got 57.3 million barrels or 24 per cent of the share.

Also, Federation Export got 50. 2 million barrels or 21 per cent of federation share.

Third Party financing, 17.6 million or 7 per cent of federation share and DPR liftings was 9.9 million barrels or four per cent of federation share.

On the 105.9 million barrels DCA crude assigned for local supply of refined products, Direct Sale Direct Purchase (DSDP) got 72. 8 million barrels or 69 per cent.

Refineries got 26. 5 million barrels or 25 per cent, Product Exchange received 4.7 million barrels or four per cent while Export (unutilised portion of DCA) got 1.9 million barrels or two per cent, the report said.

“The total revenue from sale of federation share of oil and gas for 2017 was 14.5 billion dollars—13.18 billion dollars or 90.8 per cent from crude oil and 1.32 billion dollars or 9.1 per cent from gas.

“NNPC deducted N297 billion from earnings from the Domestic Crude Allocation as costs and losses,’’ it added.

A breakdown of the deduction indicated that N141.6 billion was for under-recovery on petroleum products, N25 billion for crude and product losses and N130.4 billion for pipeline repairs and maintenance.

“The Sum of N77.92 billion was under-remitted by NNPC to the Federation Account from Domestic Crude Allocation in 2017.

“NNPC acknowledges the under-remittance and states that there is an on-going reconciliation to net off the N77.92 billion from the established Federation indebtedness to the Corporation of N797bn arising  from KPMG Forensic audit of the Corporation at the instance of the Federation,” it noted

On crude destination in 2017, the reports showed that the federation crude went to 29 destinations.

It noted  that the top-five destinations were India with 41.3 million barrels (17.12 per cent}, the U.S.,  30.6 million (12.72 per cent), local refineries, 26.5 million barrels (10.98 per cent),  Netherlands, 22.9 million barrels (9.5 per cent)  and Spain, 21 million barrels (8.83 per cent).

It added that 60 individuals and consortiums were buyers of federation’s crude in 2017 with  the top five buyers as Duke Oil Company, the trading arm of NNPC, which lifted 29.3 million barrels (12.16 per cent}.

NEITI said the report did not cover other revenue streams from the sector, such as Petroleum Profit Tax (PPT), royalties, signature bonuses, dividends, penalties and fees, statutory payments, among others.

Commenting on the report, NEITI Executive Secretary Waziri Ado, said other details on production and processes would be in the 2017 NEITI oil and gas industry report to be released soon.

He said that the pilot study which was conducted by BDO, an international auditing and advisory firm, covered four government agencies and 73 companies.

“ The 73 companies were six bilateral companies, 13 international trading companies, four trading arms of international oil companies, 25 Nigerian trading companies, two NNPC trading companies, nine refineries, and 14 DSDP contractors,’’ he said

ENO/JCE

Edited by Chukwudi Ekezie

Continue Reading

Oil & Gas

Niger Delta community demands payment of outstanding N6.9bn from SPDC

Published

on

The indigenes of Opolo community of Bayelsa are demanding the payment of outstanding N6,938,899,900 from Shell Petroleum Development Company (SPDC) being amount of unpaid rentals, expired leases and re-acquisition fees.

 

The indigenes, who staged a protest in Abuja on Thursday, were demanding payment of the amount, saying they were being cheated by the multinational company.

 

Mr Hezekiah Odede, Chief of Opolo Community, Bayelsa, who spoke on behalf of the community, also called on President Muhammadu Buhari to intervene to avoid crisis in the region.

CUE IN AUDIO – Odede

According to him, shell is paying Port Harcourt and other region N600,000 per hectares of land used but refused to pay Bayelsa, rather they are paying us N200,000 per hectares of our land used by them.

“We produce oil in manifold surplus and they are still paying us N200,000 per hectares.

“So, we are saying enough is enough, if the SPDC can help us to sack the MD of Shell, Mr Osagie Okunbor and the head of lands because they take our money to do other things.

 

“In Niger Delta, particularly in Opolo community, we didn’t stop any work any day but we just want the government to know that the rig is in Opolo community land where they are drilling.

 

“We went there to stop their operations, except they refuse to pay us our balance, if not we will go there to stop them with our youth.

 

“We just want Nigerians and the government to know that we are not violent but Shell always make us to be violent.

 

“When we leave here without any resolution, we will go there and stop the operation.

 

“In 2017, we went to the National Assembly, they even pass a verdict that they should pay.

 

“They don’t respect any Nigerian man because we don’t know what we are doing. The National Assembly passed a resolution for them to pay this money, till now they refused,” he said.

CUE OUT AUDIO

Also, Mr Shedrack Ayiba, an indigene of Azagbene community, Bayelsa, said that the Shell Company had never respected the laws by the Nigerian government.

 

Ayiba said on their part, the leaders of the communities had visited Shell, adding that they had refused to obey despite all pleas.

 

He, therefore, appealed to President Buhari to look at their demand to prevent the people of Niger Delta region from taking actions to stop the oil company from working.

 

Nigeria News Agency reports that the National Assembly in March passed a resolution for SDPC to pay a uniform rate of N600,000 per hectare of land as rent per annum for all loss of used surface rights from 2014.

 

Some of the inscriptions on the placards during the protest reads: SPDC obey court judgement; Shell stop operations in the Niger Delta Now; Shell stop cheating land owners in Niger Delta, among others.

Edited by Felix Ajide

Continue Reading

Oil & Gas

Local production: FG begins overhaul of refineries to meet target

Published

on

 The  Federal Government on Thursday said it had begun the overhauling of its refineries commencing with the Port Harcourt Refinery to achieve its 2023 target of ensuring that local refineries operate optimally.

 

The Group Managing Director of the NNPC, Mr Mele Kyari, disclosed this while speaking on ‘Harnessing oil and gas potential for national development.’

 

He spoke at the Annual Conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.

 

Kyari said that the Nigerian National Petroleum Corporation (NNPC) had given itself a three-year deadline to review the operations of its refineries, support condensate plants and open up the midstream sector.

 

He said that Nigeria had remained a net- importer of petroleum product.

 

He said this was due to the current state of its refineries and the long absence of private investment in the refining sector.

 

“Thus, we require more investment to revamp and expand our domestic refineries and associated infrastructure to support the growth of the downstream sector and guarantee energy security to the nation.

 

“In this respect, NNPC under my purview will leave no stone unturned to ensure our 445,000-barrel per day refineries in Port Harcourt, Warri and Kaduna work to an appreciable level or capacity.

 

“We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products.

 

 

“Our plan is for Nigeria to become a net exporter of petroleum products by 2023,” he added.

Kyari, however, emphasised the need for an enabling environment to attract the right investment which he said was being subdued by the nation’s fiscal regime.

 

According to him, the Petroleum Industry Bill (PIB) must run its full cycle under this 9th National Assembly, implying that there is absolute need to fast track its enactment processes.

 

“Related to this is the fact that we need to build on the security of the nation’s Industry assets across the country.

 

“As stakeholders in the commonwealth, we must ensure that we keep away miscreants from our pipelines to pave the way for efficient operations in the sector,” he added.

 

On his part, Mr Paul McGrath,the Chairman of Oil Producers Trade Section (OPTS) and Managing Director of ExxonMobil Nigeria, expressed concerns about the cost of doing business in the country.

 

He added that the cost of maintaining security around their operations was becoming higher.

 

McGrath urged government and operators to explore modalities and mechanisms for cost reduction.

 

He also advocated the need for stable and competitive fiscal policies as well as a healthy-contract-integrity culture.

Continue Reading

Oil & Gas

Special agric zones to attract $4b investments -NGF

Published

on

The Nigeria Governors’ Forum (NGF) has said that the establishment of Special Agro-processing Zones (SAPZs) in Nigeria has the potential of attracting between one to four billion dollars investments into the country.

The Chairman of the forum and Governor of Ekiti, Dr Kayode Fayemi, disclosed this while briefing newsmen after the forum’s 4th meeting on Wednesday in Abuja.

Fayemi explained that all states were potential beneficiaries of the SAPZs initiative, which would bring together the farming and the processing community.

“The Forum was briefed by its Deputy Chairman, Gov. Aminu Tambuwal of Sokoto state on the meeting between the Forum and the AfDB. The officials came in company of existing and potential Chinese investors in Nigeria.

“The meeting was part of a series of high-level engagements driven by the AfDB to promote the establishment of SAPZs in Nigeria.

“This SAPZs which will bring together the farming and the processing community have the potential of attracting about one billion dollars from the AfDB and up to 4 billion dollars with the entry of private sector investors.”

Fayemi said that the governors already agreed with AfDB that a tasks desk for the initiative would be at NGF Secretariat to coordinate interest expressed from various states.

On the issue of health, he said that members of the forum resolved to continue to support the actualisation of universal health coverage in Nigeria.

This according to him followed update from the NGF Secretariat on Basic Health Care Fund (BHCF), State Health Insurance Agency and the fact that Nigeria had been polio-free for three years and on the verge of being certified polio free.

“The Governors expressed willingness to prioritize routine immunization coverage in the States which will ensure that Nigeria is declared polio free and ensure sustainability moving forward.”

Asked of the governors’ decision on the Nigerian Financial Intelligence Unit (NFIU) directive on local government funds, Fayemi said the governors were exploring available means to settle the matter.

“NFIU is a matter that is on our agenda consistently, but as you may be aware we are also in court.

“We are exploring all other initiatives in order to ensure that we come to a clear conclusion on NFIU matter.”

The chairman said that the governors during the meeting also received a presentation on Polio eradication from Rotary International Nigeria PolioPlus Committee, led by its Chairman, Dr Tunji Funsho.

“Rotary have been active in the dedication of polio for a considerable length of time.

“The briefing is about the work that have been done and the need to sustain progress and keeping our state forces on eradication of wide polio virus intact.”

Fayemi said that the forum also received a presentation on the forthcoming “State of the States Conference” scheduled to hold from Nov. 26 to Nov. 27, from Scott Sheldon, the Managing Director of CWC.

He said that the governors pledged to work with the team from CWC to deliver on the objectives of the conference.

“The forum also resolved to participate in UN General Assembly on the Sustainable Development Goals (SDGs) and Climate Change; as well as the Tokyo international conference on Africa which will come up on Aug. 28 to Aug. 30 as well as Sept. 23 to Sept. 27 respectively.”

Some of the governors in attendance were Okezie Ikpeazu (Abia), Umaru Fintri (Adamawa), Udom Emmanuel (Akwa Ibom), Willie Obiano (Anambra), Samuel Ortom (Benue), Bala Mohammed (Bauchi), Godwin Obaseki (Edo).

Others were Ifeanyi Ugwuanyi (Enugu), Abdullahi Ganduje (Kano), Darius Ishiaku (Taraba), Abubakar Badaru (Jigawa), Ifeanyi Okowa (Delta), Emeka Ihedioha (Imo), Seyi Makinde (Oyo), Aminu Masari (Katsina), Bello Matawalle (Zamfara), Babagana Umara (Borno) and Cross River Deputy Governor, Prof. Ivira Esu.

OBE/IS

Edited by Ismail Abdulaziz

Continue Reading

© 2019 NNN NEWS NIGERIA. All Rights Reserved.