Connect with us

Oil

Pipeline vandals may cripple Nigeria’s downstream oil sector- NNPC …….Mosimi-Ibadan-worse hit on system 2b

Published

on

By Joseph BAMIDELE

LAGOS: The Nigerian National Petroleum Corporation, NNPC on Wednesday decried the unending incidents of pipeline hacking and product theft which is currently posing great danger to the efficient distribution and supply of petroleum products in most parts of the country threatening that the sub-sector may be further crippled by acts of these hoodlums if left unchecked.
This is coming on the heels of the corporation’s disclosure that the strategic system 2b which convey refined products from atlas cove, offshore Lagos to Ilorin recorded its worst hit points between Mosimi depot and Ibadan, the Oyo state Capital with 421 ruptured points.
Speaking against the backdrop of the recent pipeline break in Ije-ododo community in Ojo Local Government Area of Lagos State, Engr. Andrew Yakubu stated that if left un-checked, the nefarious activities of pipeline marauders could cripple the smooth operation of the downstream sector of the industry.
Engr. Yakubu who declared open the 3rd Triennial Delegates Conference of the Petroleum and Natural Gas Senior Staff Association, PENGASSAN, in Abuja noted that less than one week after the vital system 2B was restored after extensive repair work on the ruptured Arepo point, the Corporation has been compelled to shut the line owing to Monday’s attack on the Ije-ododo point.
“We had over 774 break points since August 2012 from Atlas Cove to Ilorin depot. Between Atlas Cove and Mosimi depot, we recorded 181 break points, from Mosimi to Ibadan, we had 421 ruptured points and from Mosimi to Ore, we recorded 50 vandalized points. Also between Ibadan and Ilorin we had a total of 122 break points,’’ the GMD stated.
He informed the gathering that though the NNPC is working hard to ensure effective distribution of petroleum products across the country through increased trucking, the trucking option comes with enormous cost which is totally unsustainable.
“PIB or no PIB, privatization or no privatization, no industry can survive under this kind of arrangement,’’ he said.
Records indicate that with the incessant attacks on the nation’s vast artery of pipelines about 70 percent products distribution is through trucking or what is known in the industry parlance as bridging into the hinterlands. This requires massive fleets of petroleum product trucks of up to 1,212 trucks load out from the depots every day to meet the daily estimated national consumption.
At an average vehicle turnaround of about 8-10 days from the South to the North and re-turn, a minimum of 10,000 trucks are required to ply the roads daily.
Despite the challenge posed by the shut- down of the system 2B line as a result of the attack, the GMD remains optimistic that Nigerians would not suffer undue hardship during the yuletide season.
“We have a fallback strategy which we have already activated to ensure un-interrupted supply of products. Don’t forget that we had the worst time when the line was shut completely in August after the Arepo incident but we have restored the lines and it started working and Nigerians felt the impact, only for the vandals to strike again. But we will do our best to sustain supply,’’ he said.
Engr. Yakubu called on Nigerians across board from the community to local government and up to state government levels to embrace protection of pipelines.
“These are critical national assets and we must begin to see them in that light,’’ the GMD said.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

Published

on

In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

Continue Reading

Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

Published

on

By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

Continue Reading

Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

Published

on

As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.