Energy
How Executive Rascality Fuels Energy Crisis In Nigeria – Afe Babalola
The lingering energy crisis in Nigeria has been traced to executive rascality, which has seen the Federal Government turn blind eyes to extant provisions of the Petroleum Industry Act, 2021 (PIA), which the Nigerian National Petroleum Company Limited (NNPC Ltd) appears to be breaching.
Legal luminary, Afe Babalola shared these views in an article in the Vanguard Newspapers, under the topic, ‘The NNPC Limited and Dangote Refinery Limited (2)’.
He pointed out that though section 64(c) provides that the NNPC Ltd has the power to lift and sell royalty oil, profit oil and tax oil on behalf of Nigeria, going by section 31(g) of the Act, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also has the mandate to ensure the supply of crude oil to local refineries.
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After considering relevant provisions of the Act, the industrialist asserted that “The powers of the NNPC Limited (are) restricted to dealings in royalty oil, profit oil and tax oil only.”
He sees no reason why the relevant organs of the Nigerian government should look away while the NNPC Ltd, usurps the legal duties of the NMDPRA, which he views as “an unpardonable anomaly”, that tends to defeat the idea of free market economy.
He maintained that the seeming connivance of government has created “unfavourable market conditions,” in the energy sector, particularly on the pricing of the Premium Motor Spirit (PMS), also known as petrol, which “is against the intentions of the PIA”.
He noted that government’s undue and illegal interference in the pricing of petrol in the domestic market tends to support imported products as against locally manufactured ones, as typified by the relationship with the Dangote Petroleum Refinery and Petrochemicals.
Babalola pointed out that forcing the Dangote Refinery to import crude was another way of making sure that its products to hit the local market at higher prices, while paying subsidy on imported refined products, ‘smelt like sabotage’.
The “Federal Government of Nigeria should terminate the payment of subsidies on imported petroleum product since it is not paying any subsidy on petroleum products from Dangote Refinery. This will give both products a level playing ground in the market,” Babalola wrote.
He also averred that the FGN and NMDPRA “should call the NNPC Ltd to order for the sake of the Nigerian economy and collective good.
Babalola urged the powers that be to “put mechanisms in place to curb the powers of the NNPC Ltd to sabotage the purchase of PMS from Dangote Refinery.”
In what sounded like despair, Babalola lamented, “Unfortunately, these anomalies have gone unremedied, leading to unfair market practices in a free-market economy like Nigeria.”
Energy
Port Harcourt Refinery Shuts Down, CDU Unit Operating Without PMS Production
The Nigerian National Petroleum Company Limited (NNPCL) has confirmed the shutdown of operations at its Port Harcourt refinery, with only the Crude Distillation Unit (CDU) currently running.
While the CDU continues to produce naphtha, kerosene, and diesel, it is unable to produce the necessary components for Premium Motor Spirit (PMS), commonly known as petrol, sources within the refinery disclosed to SaharaReporters.
This development follows weeks of conflicting reports about the refinery’s operational status.
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As recently as Tuesday, NNPCL had claimed that the refinery was fully operational and producing PMS.
However, reports revealed that only the outdated section of the refinery was running, and instead of producing petrol, it was blending “Crack C5” with naphtha to create a blended form of gasoline, which refinery staff warned could negatively affect vehicles.
Although blending is a standard industry practice, experts explained that the secondary units necessary for producing reformate – a key component of gasoline – have yet to be commissioned at the refinery.
“The CDU is still running but the operation of the depot is shut down at the moment,” a senior refinery official told SaharaReporters on Saturday.
“The CDU produces naphtha, diesel, and kerosene but cannot produce the component for the production of PMS.”
The refinery, with a 150,000 barrels-per-day capacity, is not expected to reach full production until 2026, contingent on securing the necessary funding.
“At the moment, the project has exceeded $2 billion,” the official added, pointing out that even if the CDU operates at full capacity, it can only produce limited quantities of these products, which are insufficient to meet national fuel needs.
Recall that on Tuesday, NNPCL had confirmed earlier reports that only the old Port Harcourt Refinery was operational and producing blended gasoline rather than actual PMS.
In a statement, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed that the refinery was running at 70% of its installed capacity and producing 1.4 million liters of Premium Motor Spirit (PMS) daily, blended with Crack C5, a component sourced from Indorama Petrochemicals.
“It is worth noting that the refinery incorporates Crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications,” Soneye said.
“Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes.”
Despite these efforts, the continued shutdown of the refinery’s non-CDU units and the limited scope of its operations have raised concerns about Nigeria’s ability to meet its fuel demands.
NNPCL has reassured the public, however, that work on the new Port Harcourt refinery is progressing, with plans to bring it online in the near future.
Energy
NNPC Ltd’s New EVP Upstream, Charges Stakeholders On Corp Governance, Transparency
A call has gone to upstream stakeholders in Nigeria’s oil and gas industry to strengthen corporate governance, transparency and efficiency in their operations.
The charge was made on Tuesday, in Lagos, by the Executive Vice President, Upstream, The NNPC Ltd, Udobong Ntia.
Ntia shared his views during an Upstream Governance, Risk and Compliance Workshop themed “Enhancing Governance, Risk and Compliance in Nigeria’s Upstream Sector”.
Delivering his opening remarks at the workshop, Ntia stressed that governance, risk management, and compliance are at the foundation of NNPC Ltd’s core values of Integrity, Excellence, and Sustainability.
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He commended the upstream leadership and regulators for supporting the initiative to assemble stakeholders to discuss issues that have a bearing on individual and collective success towards attaining the clear mandate of sustainably ramping up the nation’s crude oil production.
The EVP also reiterated his readiness to provide enablers within his purview that will accelerate the implementation of initiatives that will enhance governance, risk management and compliance in the upstream sub-sector.
The workshop had in attendance NNPC Ltd’s Chief Compliance Officer, Nasir Usman; NNPC Ltd’s Chief Upstream Investment Officer, Bala Wunti; representatives of industry regulators such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC); the Nigerian Content Development and Monitoring Board (NCDMB) and over 20 upstream operators from International Oil Companies in Nigeria.
Energy
Asharami Synergy Unveils Fuelling Solutions In Omagwa
In line with its commitment to driving access to quality petroleum products, Asharami Synergy Limited, a leading Sahara Group downstream company, has said the public can now access exceptional fuelling solutions at its newly commissioned retail station in Omagwa, Rivers State.
Situated strategically along the Airport Road in Omagwa, the station, which features a storage capacity of 45,000 litres each for Automotive Gas Oil (AGO, also known as diesel) and Premium Motor Spirit (PMS, also known as petrol) is equipped with two pumps and four discharge nozzles for PMS and AGO.
The facility also has ample space for sundry services in a bid to ensure consumers get more “miles and smiles” as well as the energy to “go further” with Asharami’s world-class products.
“The Asharami Omagwa Retail Station is fully operational, offering a range of premium products and services. It’s a one-stop shop that also gives our esteemed customers eat-in and take-out restaurant services, shopping, as well as the Asha lubricants and Asha Service experience which will ensure premium care for all classes of automobiles and engines,” said Oladimeji Williams, Head, Government Relations and Business Development at Asharami Synergy.
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At the Commissioning, Willaims said the new station represents an important step in Asharami Synergy’s expansion plan aimed at reaching and serving more communities responsibly. “This station is strategically positioned close to the airport, serving as the gateway for powering socio-economic development in the community and those close to it, while enabling Asharami Synergy integrate all aspects of its downstream business towards ensuring efficiency and value for our customers,” he stated.
Williams commended the Federal Airport Authority of Nigeria (FAAN) and the Omagwa community leaders for their support and collaboration throughout the project’s duration, describing it as a “seamless and productive process that highlights Asharami’s corporate stewardship and social impact” in the community.
Similarly, Ifesinachi Ezike, Regional General Manager (South South), FAAN, emphasized the broader significance of the new station, stating, “This occasion marks a significant milestone not just for Asharami Synergy but for the airport and the entire community. It marks not just an opening of a new facility but the beginning of a renewed commitment to enhancing the travel experience of all our passengers and stakeholders”.
In a move that underscores its commitment to sustainability and community development, Asharami Synergy also commissioned a solar-powered borehole during the launch. The borehole is set to improve access to clean and reliable water for residents, marking a tangible contribution to the local community.
“At Sahara, we are always making a difference—not just through our business operations; we are unwavering in our commitment to driving sustainable development and building partnerships that enhance the well-being of our host communities,” Williams added.