Connect with us

Energy

Dangote, Regulators Face-Off: Oil Producing Communities Group Threatens To Seal Oil Pipeline Facilities

Published

on

 

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), has threatened to renew agitation for greater autonomy and control of their natural resources, if the Nigerian National Petroleum Corporation Limited (NNPC Ltd) and the International Oil Companies (IOCs) fail to sell and supply crude oil to Dangote Refinery and other local refineries.

It was gathered that this was borne out of the group’s to ensure that Nigeria is energy-secure and becomes self-sufficient in local production of Premium Motor Spirit (PMS) and diesel.

HOSTCOM, comprising all the states producing oil and gas in Nigeria, over the weekend, lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products.

According to them, this persistent issue, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who are intent on maintaining the status quo of exporting crude oil while importing refined petroleum products.

HOSTCOM warned that it will not hesitate to publicly name these identified cabals if necessary.

READ ALSO: BREAKING: Peterside Faults Narrative On Crude Resale By Dangote

Biztellers reports that the National President of HOSTCOM, Dr. Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta region, toured the Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex.

Notable traditional rulers included the Chairman of the Niger Delta Monarchs Forum, HRM Frank Okorakpo; Deputy Chairman of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria (TROMPCON), HRM Obafemi Ogaro; and Egbesuwei Gbanraun X Agadagba Pere, HRM (Capt) Frank Okiakpe, among others

The National President, Dr. Tamaramiebi said, “Our visit today to the largest and magnificent 650,000 bpd private Refinery in Africa (Dangote Refinery) has opened our eyes to several ills, particularly to the monumental corruption going on in Nigeria’s oil and gas industry.

“It is obvious why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars spent on the so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria oil sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues.”

While emphasising on the need for Nigeria to refine its crude locally, HOSTCOM urged the Federal Government to back the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to end the nation’s persistent reliance on imported petrol, diesel, and other refined products.

He also called for nationwide support for Dangote Petroleum Refinery and other modular refineries to eliminate the need for imported refined products. It expressed gratitude to the National Assembly and Nigerians but warned against any sabotage that could hinder the country’s progress towards self-sufficiency in refined products.

“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We at HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria,” stated the group.

HOSTCOM, which emphasised that every Nigerian’s aspiration is for the country to refine its own crude oil for the benefit of its people, warned that any individual who opposes this national desire will face the wrath of the masses.

The group also lampooned the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over his recent statement that the government would not halt the importation of refined petroleum products.

HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.

“We unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he as the CEO of NMDPRA is responsible for issuing import licences to his cronies outside the government to continue to import sub-standard refined petroleum products into the country. This is not surprising given that he has served on the boards of some downstream companies in the past. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict,” the group added.

The group praised the President of Dangote Industries Limited, Aliko Dangote for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavour has significantly contributed to the country’s economic growth and development. It emphasised that the refinery is crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products.

The group urged President Tinubu to support the project, highlighting that it will enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities, among other positive effects.

“We call on President Bola Tinubu to support and sustain this refinery which is in his own state. He must do away with the cabals holding the oil sector to ransom,” it added.

The group further asserted that the President must not tolerate the economic sabotage being carried out by the IOCs operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.

“We call on Mr. President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021 particularly section 109(4)(b) which states that “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,” it added.

It also pointed out that, despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. The group warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.

The Vice President (Oil & Gas) at Dangote Industries Limited, Devakumar Edwin, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.

Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He said that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.

Energy

NNPC Ltd/TotalEnergies’ $550m Ubeta Upstream Gas Project Takes Off

Published

on

 

The $550 million upstream gas project between the NNPC Ltd and TotalEnergies on the development of the Ubeta field has taken off, the Presidency announced on Tuesday.

This was contained in a statement in Abuja, on Wednesday, by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.

ALSO READ: NNPC Confirms Petrol Purchase From Dangote In Dollars, Naira Transactions Commence Oct

According to Soneye, the Special Adviser to the President on Energy, Olu Verheijen, made the disclosure during an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.

“The signing ceremony of the 550 million USD Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June, this year,” he stated.

The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.

It was gathered that at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, Verheijen revealed that the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.

Verheijen added that major energy reforms introduced by President Bola Ahmed Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners, including the US government.

She said the key reforms had improved the viability of the gas-to-power value chain of the country.

The reforms, according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.

She added that the President issued five new executive orders to support the reform efforts, aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.

The presidential aide said the directives are aimed to immediately unlock up to $2.5 billion in new oil and gas investments in the country.

Responding, the U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.

“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonisation, and economic growth goals,” he said.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event.

Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited were also in attendance.

The U.S. delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.

Continue Reading

Energy

Uniform Pricing Of Local, Imported Fuel Is Fraudulent – NLC

Published

on

Joe Ajaero, the President of the Nigeria Labour Congress (NLC), has criticized the Nigerian government for its role in the current pricing dispute between the Nigeria National Petroleum Corporation Limited (NNPCL) and the Dangote Refinery, attributing it to erratic government policies.

In a press briefing at Murtala Muhammed Airport Terminal Two on Wednesday, Ajaero condemned the situation as fraudulent and argued that a deregulated market should encourage competition and consumer choice, not impose restrictive pricing.

He asserted that the attempt to regulate Dangote’s pricing or influence private sector costs undermines fair market practices.

Related News: Fuel Crisis Looms As NCSCN Urges Dangote Refinery To Address Fuel Pricing, Supply Issues

Ajaero called on Nigerians to voice their concerns, claiming the government’s actions are undermining the private sector’s ability to set prices.

He said, “For a product produced here, he didn’t import with dollars, there was no landing cost, and they want him to sell it at the same cost as what they are bringing from abroad. That is fraudulent and unacceptable.”

Additionally, Ajaero criticized the government for not repairing the refineries as promised in August of the previous year, noting that no progress has been made as of September 2024.

On the subject of the N70,000 minimum wage, Ajaero assured that implementation is on track according to the agreement made on April 18, 2024.

He confirmed that the National Assembly has approved the bill, and the committee on consequential adjustments is actively working on its rollout.

Continue Reading

Energy

Energy Reform Group Warns Of NNPC’s Alleged Plot To Thwart Dangote Refinery

Published

on

The Coalition of Energy Reforms Lawyers and Activists (CERLA) has raised serious allegations against the Nigerian National Petroleum Company Limited (NNPC Ltd), accusing the state-run oil firm of attempting to sabotage the operations of Dangote Refinery.

In a recent press briefing, CERLA claimed that the NNPC Ltd falsely reported that Dangote Refinery was selling Premium Motor Spirit (PMS) at ₦868 per litre.

Read Also: Ighodalo Sues Oshiomhole Over Ponzi Scheme Allegations

The coalition’s spokesperson, Okwa Dan, condemned these actions, labeling them as a deliberate move to obstruct the progress of Dangote Refinery while fostering corruption within Nigeria’s energy sector.

“The NNPCL has consistently acted as a barrier to transparency in the sale and distribution of crude oil in Nigeria,” Dan remarked.

He further criticized the company for favoring the importation of low-quality fuel, which he described as both “fraudulent and counterproductive.”

Dan also accused the NNPCL, under the leadership of Mele Kyari, of sustaining a fuel subsidy scam that has kept the country dependent on imported PMS.

According to CERLA, the latest actions against Dangote Refinery are part of a broader scheme to stifle locally operated refineries.

“The NNPCL’s operations remain opaque, and we question why it has been designated the sole off-taker of PMS from Dangote Refinery,” Dan said, further arguing that the NNPCL’s claims of high PMS prices are misleading, as Dangote’s crude stock is priced in dollars.

CERLA has called on the NNPCL to cease what it terms a “slander campaign” against Dangote Refinery and has threatened legal action if the issue persists.

The coalition emphasized that the Nigerian public has suffered enough from the NNPCL’s lack of transparency and demanded accountability from the corporation.

Dan concluded by suggesting that the NNPCL’s discomfort stems from the emergence of the Dangote Refinery and urged the government to intervene in the matter.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.