Oil
P-Harcourt, Warri refineries to produce 8.5m litres of petrol per day – NNPC
ABUJA — The Nigerian National Petroleum Corporation, NNPC, stated yesterday that the Port Harcourt and Warri refineries are expected to contribute about 8.5 million litres of Premium Motor Spirit, also known as petrol, per day to the country’s fuel supply, in the next couple of days.
The NNPC also disclosed that it has successfully recovered the System 2B pipeline which was breached last week at Arepo, Ogun State.
This was even as the Department of Petroleum Resources, DPR, yesterday, stated that it has shut down 22 filling stations in Abuja and environs for one month for undue profiteering.
The DPR, in a statement in Abuja, signed byMohammed Saidu, Head, Public Relations, stated that 19 of the petrol stations were sealed for selling above N87.00 per liter, two were sealed for diversion of petroleum products while the remaining one was grossly under-dispensing and selling products massively in jerry cans.
According to the DPR, the stations are to remain sealed for at least one month in addition to forfeiting their bridging claims as directed by the Federal Government.
Prominent among the petrol stations sanctioned are Conoil, Gwagwalada; Oando, Herbert Macaulay Way, Abuja; A.A. Rano Nigeria Limited, Abuja-Keffi Road, Nyanya, among others.
P-H, Warri refineries successfully re-streamed
On the issue of the refineries, the NNPC in a statement signed by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, stated that the Port Harcourt and Warri refineries have been successfully re-streamed after a nine-month phased rehabilitation exercise conducted by its in-house engineers and technicians.
According to Alegbe, the Port Harcourt refinery is projected to boost the nation’s local refining capacity with a product yield of five million litres of petrol per day while Warri refinery would contribute 3.5 million litres of petrol to local refining capacity.
He stated that both plants have commenced preliminary production of petroleum products after successful test-runs, noting that while Port Harcourt Refineries Company, PHRC, is ramping up its operation to about 60 percent of its 210,000 barrels per day (bpd) name plate capacity, Warri refineries and Petrochemical Company, WRPC, production is projected to hit 80 per cent of its installed 125,000 bpd capacity.
Giving an insight into the rehabilitation exercise, Alegbe noted that the NNPC had to adopt the phased rehabilitation strategy after the Original Refinery Builders, ORB, who were initially contacted for the project came up with unfavourable terms.
He said: “Though a decision was taken in 2011 to rehabilitate all the refineries using the ORB of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms.”
He further stated that the nominated partners, as sole-bidders came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations, adding that the proxies were also unwilling to provide post rehabilitation performance guarantees.
“The phased rehabilitation strategy which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation,” he explained.
He also stated that the phased rehabilitation programme, which started in October 2014 after the required funding stream was established created a 70 percent reduction in costs which helped largely in mitigating the financing challenges of refinery rehabilitation.
Alegbe further noted that with the successful re-streaming of the PHRC and WRPC, attention has now moved to the 110,000 barrels per day Kaduna Refining and Petrochemicals Company which is billed to come on stream soon.
On Arepo pipeline fire
Commenting on the recovery of the Arepo pipeline, Alegbe stated that its team of engineers who were deployed to the scene of the incident was able to access the pipeline after the fire was put out and commenced repair work immediately.
He said: “We wish to announce that the vital System 2B pipeline which was breached at Arepo last week has been fixed and brought back on stream. Pumping of products through the system commenced on Monday upon successful completion of repair work over the weekend.
“We also wish to call on all those engaged in the criminal acts of pipeline sabotage and oil theft to desist in order to avoid such horrendous deaths as was witnessed in the recent incident.”
NNPC didn’t remit $11.63bn to FG Account, NEITI tells El Rufai
Meanwhile, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Hajiya Zainab Shamsuna Ahmed, yesterday told Governor Nasir el-Rufai of Kaduna State that between 2009 and 2012 alone, about 160 million barrels of oil valued at $13.7 billion was stolen under the watch of the NNPC.
Shamsuna who disclosed this when she paid a courtesy call on Governor El-Rufai then handed over to him a supposed dossier of corrupt practices by the NNPC.
El-Rufai is one of the four governors appointed by National Economic Council to scrutinise the accounts of the NNPC and the Excess Crude Account, ECA managed by the last administration to unravel N3.8 trillion not remitted to the Federation Account by the NNPC between 2012 and May 2015 as well as $2.1bn said to have been deducted from the ECA.
She said: “Between 2009 and 2012 alone, about 160 million barrels of oil valued at $13.7 billion was stolen under the NNPC watch. I am calling on the Federal Government to privatise the nation’s refineries. The subsidy payment from 2005 to 2012 showed that $11.631 billion has been paid to the NNPC, however there is no evidence of the money being remitted to the federation account.
“Crude Product Swap valued at $866 million was also lost from 2009 to 2011 and $8243 million in 2012. Total amount expended in subsidy payment from 2005 to 2012 as captured showed that $11.631 billion have been paid to the NNPC, however there is no evidence these amounts were remitted to the federation account.”
Responding, Governor El-Rufai said since he called for the scrapping of NNPC, the corporation has been sponsoring articles in the media to attack him but declared that he will continue to fight on till NNPC dies.
He said: “NNPC will pay all the monies it is owing before its final death. NNPC has become a monster and too powerful. I will continue to fight NNPC till it dies for Nigeria to survive. It is either Nigerians kill NNPC or NNPC will kill Nigeria.
“Since, I called for the death of NNPC, the corporation sponsored articles attacking me but I am telling them my skin is thicker than an elephant. The NNPC can’t bribe any of the four governors appointed to investigate it.”
Announces ambitious expansion plans
Platform Petroleum says the company is targeting a billion-dollar investment as it announces an ambitious strategic plan to bring 3 marginal fields into production by 2025, with a target of 10,000 barrels of oil and at least 50 billion standard cubic feet of gas per day.
Speaking on the sidelines of the 2024 Offshore Technology Conference (OTC) in Houston, USA, Chief Dumo Lulu-Briggs, Chairman of Platform Petroleum said that the company has scheduled a roadshow in London this June 2024 to raise extra funding to finance their ambitious expansion plans.
“The upcoming roadshow aims to attract equity partners and prepare for future opportunities, targeting a billion-dollar investment. We are seeking partners ready to invest in Nigeria’s oil and gas potential.
Our goal is to showcase the country’s vast opportunities and its potential to international investors” Lulu-Briggs said.
Platform Petroleum’s roadshow in London will highlight the company’s efficient production, upgraded flow stations, increased capacity, and achievements in nearly zero emissions.
With about one percent gas flare currently, Platform aims for zero gas flares by the last quarter.
“Nigeria is a vast market, and Platform Petroleum is thinking big. With the government’s ambitious plans, such as the Lagos-Calabar coastal line, Platform is poised for growth; pushing itself to the next level, building on a strong foundation and following Seplat’s successful precedent”, Lulu-Briggs said.
Despite being a small company, he emphasized that Platform Petroleum has demonstrated significant success and efficiency, showcasing that smaller oil and gas entities can indeed achieve remarkable feats adding that he believes that the company deserves recognition and more assets.
“Platform Petroleum is ambitious, aspiring to become a tier-1 company akin to international oil companies (IOCs) or a tier-2 company like Seplat. Interestingly, Seplat originated from Maurel & Prom, Shebah Petroleum, and Platform Petroleum, and today stands as a major player in the industry.
This history underlines Platform’s potential for substantial growth”, Lulu-Briggs said.
Furthermore, the Platform Petroleum Chairman said that the Offshore Technology Conference (OTC) is a crucial event for promoting Nigeria’s significant market potential.
“Partnering with the Petroleum Technology Association of Nigeria (PETAN) at OTC is key to attracting investment. The current proactive government understands the necessity for economic growth, and Platform is prepared to leverage every opportunity in the oil and gas industry to contribute to this expansion”, he concluded.
The Nigerian National Petroleum Company (NNPC) Limited has revealed the detection of more than 4,800 unauthorized connections on oil pipelines within the country, painting a troubling image of the nation’s primary source of revenue.
Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, communicated this information to the Senate Committee on Appropriations last Friday.
He said, “We have over 4,800 illegal connections on our pipelines. That means in some lines, within 100 kilometres of pipelines, you have as much as 300 insertions.
“Therefore, even when you produce the oil, you cannot deliver them at the required pressure and therefore the volume will also be less.”
As per the NNPC Ltd chief, individuals from various regions enter the Niger Delta, inserting unauthorized connections on pipelines in Nigeria’s oil-producing area.
This recent revelation follows a prior discovery of 295 illegal connections to the pipelines by the firm a year ago, underscoring the escalating issue of crude oil theft in Nigeria.
Two years earlier, Kyari had highlighted the country’s daily loss of 200,000 barrels of oil, amounting to $13 million due to theft and vandalism.
He further stated “We have two sets of losses, one coming from our products and the other coming from crude oil. In terms of crude losses, it is still going on. On the average, we are losing 200,000 barrels of crude every day.”
After the discovery, Nigeria’s security forces pledged to enhance security around the country’s pipelines.
To bolster this, the Federal Government granted a multi-billion naira pipelines surveillance contract to Tantita Security Services, headed by former militant leader Government Ekpemepulo, also known as Tompolo.
Despite facing criticism for this decision, Senator Heineken Lokpobiri, the Minister of State for Petroleum, remains convinced that it was the appropriate course of action.
In August, following a tour of oil facilities in the Niger Delta, Senator Heineken Lokpobiri expressed gratitude to Tantita, commissioned by NNPC Ltd, for their ongoing work.
He also hinted at plans for further extensive endeavors in the future.
In 2021, after extensive debate and delays, the Petroleum Industry Bill was finally passed to attract increased foreign investment into the oil sector through amendments to regulations, royalties, and taxes.
Nigeria’s colossal $19 billion Dangote Refinery, after encountering several setbacks, is on the verge of kickstarting fuel production.
This achievement is heralded by the arrival of the first crude shipment, transported by the OTIS tanker carrying 950,000 barrels of Nigeria’s Agbami crude.
S&P Global, citing industry sources and tanker tracking data on spglobal.com, reported the tanker’s departure on December 6, en route to Lekki, the nearest land port to Dangote’s offshore crude receiving terminal.
Scheduled to reach its destination around 8 PM on December 7, the arrival of this shipment signifies the commencement of crude supplies for the refinery’s operations.
Chartered by the state-owned Nigerian National Petroleum Company (NNPC), the Suezmax tanker is an emblem of the initial crude supply to Dangote’s cutting-edge refinery, as disclosed by a West African oil trader familiar with the matter in the S&P report.
Even though the refinery was officially completed in May, the absence of domestic crude feedstock had hindered oil product manufacturing.
To address this, the NNPC, holding a 20% stake in the refinery, struck an agreement to provide 6 million barrels of crude oil as feedstock to the Dangote refinery in December.
This move aims to jumpstart operations and overcome the previous impediments.
Agbami, operated by Chevron, holds a prominent position among Nigeria’s major deepwater developments, producing around 100,000 barrels per day in the central Niger Delta.
Known for its light sweet crude qualities, with a specific gravity of 47.9 API and a low sulfur content of 0.04%, Agbami produces substantial amounts of naphtha and kerosene.
NNPC has chartered additional shipments from different Nigerian offshore fields to the refinery, marking the start of a sequence of planned crude supplies for the month, as mentioned by the oil trader.
Located on the outskirts of Lagos, Nigeria’s commercial hub, the Dangote Refinery encountered repeated delays since its 2013 announcement, despite significant installation progress in 2019.
The refinery, designed to handle multiple crudes simultaneously, targets three Nigerian crude grades—Escravos, Bonny Light, and Forcados. When operating at full capacity, it aims to produce 327,000 barrels per day (b/d) of gasoline, 244,000 b/d of gasoil/diesel, 56,000 b/d of jet fuel/kerosene, and 290,000 metric tons per year of propane/LPG.
Dangote’s operations starting signify Nigeria’s hopes to lessen its reliance on gasoline imports, addressing the deficiencies of its existing refineries undergoing repairs. This shift is poised to reshape Nigeria’s oil industry, potentially leading to gasoline self-sufficiency by the 2040s.
Dangote officials anticipate an initial output of 370,000 barrels per day (b/d), emphasizing jet fuel and diesel production.
Industry analysts, however, project the refinery to reach its full operational capacity by mid-2025, although potential delays remain a looming concern.
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