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.”
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
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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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.”
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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.