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Corruption in oil industry exaggerated, says Kachikwu

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ABUJA-THE Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said corruption in the oil and gas industry was overblown.

Kachikwu said this in Abuja on Thursday at a news briefing shortly after the launch of the new roadmap tagged “The 7 Big Wins”.

He said, “I think sometimes the corruption indices in Nigerian National Petroleum Corporation are overblown, because sometimes people do not understand the technicalities of what is going on and the short answer is corruption.

“I do agree that there were all kinds of sleaze stories in the past, but if you look at the last one year and in the last 13 months, those have dramatically disappeared.

Nigeria's Petroleum Minister Dr. Ibe Kachikwu

Nigeria’s Petroleum Minister Dr. Ibe Kachikwu

“The TSA definitely helped, being able to suck in all our funds in one pond, being able to look at long term focus.

“The fact that we have saved over a billion dollars through the Direct Sale Direct Purchase programme, it is something. Otherwise, it would have gone into private pockets.

“There are good people in the NNPC.” Kachikwu said that in spite of doom stories that abound in the country, the petroleum industry was one sector that had said “there is hope, we can find solutions; we can solve problems.

He said, “The only thing that we must hold high is commitment and collegiality in trying to fix things. I believe if the petroleum ministry works, the rest of the country will work.”

On the issue of refineries, he said that the fact that they were working today was because there were local engineers who were able to resuscitate them.

He said, “The feeling of the Federal Executive Council and the President is that we should first get the refineries to be efficient before we talk about privatisation, otherwise, we will be selling scraps.

“In their present state, nobody is going to offer you serious money. A huge amount of investment is going into this. “Secondly, there are union issues; we do not just take decisions, not recognizing that people work there.

“If you privatise in a hurry and are sucked into union issues, that closes the place and it does not function for years.”

The 7 Big Wins is a roadmap the petroleum ministry has embarked on to focus on short and medium term priorities to grow Nigeria’s oil and gas industry between 2015 and 2019.

The focus of the roadmap is Niger Delta and Security, Policy and Regulation, Business Environment and Investment Drive and Transparency and Efficiency.

It also includes Stakeholder Management and International Coordination, Gas Revolution and Refineries and Local Production Capacity.

-PUNCH

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Energy

UNDC Assures on Readiness to Protect Oil, Gas Pipelines

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Pipeline contract

The Niger Delta Youths are primed to assume national responsibilities in critical areas of the economy by protecting vital oil and gas assets in the region.

The United Niger Delta Congress (UNDC) gave the assurance at a media briefing in Abuja, over the weekend, adding that the youths of Niger Delta were ready to work with the federal government in this regard.

The group maintained that youths in the region have shown that such responsibilities, including the security of pipelines, can be entrusted to them.

Speaking at the news conference, Niger Delta Youth activist, Mallam Julius Obi, said the Niger Delta is safer while the nation’s crude is flowing based on the fact that youths in the region are doing the job.

He said that being a youth should not be a disqualification from strategic national assignments but when matched with preparation and character, a national asset.

“We are calling on the federal government to note that Nigeria is full of young men and women who are prepared, disciplined and ready to carry out national responsibilities.

“We urge the federal government to keep opening the doors of strategic national service to young Nigerians who have earned trust the only way it can be earned, by delivery,” Obi said.

READ ALSO: JUST IN: Ex-Delta Governor Emmanuel Uduaghan Is Dead

The group commended President Bola Tinubu for sustaining the security reforms in the oil and gas industry and the the National Security Adviser (NSA), Mallam Nuhu Ribadu, for coordinating the protection of the nation’s pipelines, and the management of NNPCL for providing the enabling environment.

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Energy

Ambakederimo Questions NNPC Over Crude Oil Sales, Upfront Payments

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Joseph Ambakederimo, convener of the South-South Reawakening Group, has questioned the accountability of Nigeria’s crude oil forward sales, demanding clarification on the volume of crude lifted, outstanding balances and the use of upfront payments.

Speaking during an interview on Arise TV on Sunday, Ambakederimo expressed concern over the monitoring of crude oil transactions, questioning who was responsible for tracking deliveries and providing feedback on the arrangements.

“We don’t even know who is monitoring and giving us the feedback of the barrels of crude that have been lifted on forward sales basis,” he said.

SEE MORE: South-South Group Opposes Coastal Road Alignment With East-West Road

He challenged the Nigerian National Petroleum Company Limited (NNPC) to provide details of the transactions, including the quantity of crude already lifted, the outstanding balance and whether the agreed deliveries had been completed.

“Today, can we get this from NNPC? How much have they lifted? What is the balance remaining? Have they been completed?” he asked.

Ambakederimo also questioned how the money collected upfront under the arrangements had been spent, demanding an explanation of its use.

“That money that was collected upfront, what was the use of the money? Can you justify it?” he asked.

He argued that Nigeria should make better use of its natural resources to accelerate infrastructure development and improve living conditions.

Citing land reclamation projects in the United Arab Emirates, Ambakederimo said Nigeria could explore similar opportunities to create additional land for residential and other developments.

He recalled seeing a signpost while travelling from Dubai to Abu Dhabi describing a project to reclaim land from the sea, using the example to highlight the development possibilities he believes Nigeria could explore.

The South-South Reawakening Group convener also argued that Nigeria could reclaim land in suitable areas, provided environmental concerns were properly managed.

He called for the country to translate its natural resource wealth into infrastructure and improved living conditions, stressing the need for greater accountability in crude oil transactions.

 

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Energy

IEA Puts UAE’s Oil Output at 5.3mbpd for September

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Oil output from the United Arab Emirates (UAE) rose to record levels in September, underscoring its resilience even amidst the Middle East crises and liberation from OPEC+ limits.

The International Energy Agency (IEA) issued the data in its monthly report, adding that Abu Dhabi raised total oil production, including condensates, by 400,000 bpd to 5.3 MMbpd.

According to the IEA, the UAE bolstered crude output to more than 4.4 MMbpd, nearing its maximum capacity, which surpasses the previous highs for total oil in August, and crude oil in June.

READ ALSO: Africa’s Energy Security Conversations Pull Industry Executives Together

The UAE has been one of the most successful among regional producers in restoring flows through the Strait of Hormuz, by drawing on a fleet of tankers to discreetly shuttle cargoes through the chokepoint and then transfer them onto other vessels. In addition, the country’s decision to leave the Organization of the Petroleum Exporting Countries (OPEC) as of May has freed it from the group’s output caps, a source of frustration for years.

Its gains contributed to a wider recovery in flows from Gulf producers, which reached more than 75% of pre-war levels in September, led by Saudi Arabia, according to the Paris-based IEA.

Still, it’s unclear how far the regional rebound has withstood a new wave of Iranian attacks on tankers transiting Hormuz, and escalating hostilities carried out by the Houthi rebel faction in Yemen.

The UAE depleted its observable above-ground inventories at a record pace of more than 270,000 bpd in September, drawing them to an all-time low, according to the IEA.

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