Oil
PTDF revokes contracts over abandonment on NIPPS project
The PTDF boss further disclosed that the Fund has so far spent about N17 billion in the educational, organizational and infrastructural upgrade of the Petroleum Training Institute, Effurun, Warri for enhanced training of middle-level manpower for the industry.
The Executive Secretary of the Petroleum Technology Development Fund, PTDF, Engr. Muttaqua Rabe Darma has ordered the revocation of contracts of two contractors for abandoning their jobs at the site of the National Institute of Petroleum Policy and Strategy.
Darma gave the order after an inspection visit on Thursday to the site of the project and meeting with some of the contractors on the project site located on over 100 hectare of land in Kaduna, Kaduna State.
Speaking to journalists at the end of the meeting, Darma stated that the two contractors, Dekit Construction Nigeria Ltd and Messrs Garcos Nigeria Ltd, had brought so much embarrassment to the Fund by failing to meet their obligations to construct roads and residential accommodation within the Institute even after collecting reasonable advance payments on the over N10.4 billion project.
He said, “This project has been behind schedule for more than a year, and some of the contractors are not showing commitment to its completion. In fact, these two have outrightly abandoned the site after collection of their advance payment.
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“We have analysed the commitment of the contractors and found out that more than 80 percent of the contractors on site were not committed to achieving the project. They just collected their advance payment and disappeared into thin air.”
Darma noted that PTDF was not under any obligation to give advance payment, but went on to do so to ensure that the work is done professionally and on time.
“One of the sub-contractors working with Dekit Construction has invited taken the matter to the Independent Corrupt and other Related Practices Commission (ICPC), and it has caused us so much embarrassment,” he stated.
He added that the Fund was would pursue legal determination as well as accounting determination of the revoked contracts, according to the contract management procedure.
He further disclosed that the Fund has issued letter of warnings to more than half of the contractors, indicating its displeasure with the pace of work and demanding more commitment otherwise they would be dropped.
Darma noted that the contractors have given numerous reasons for the delay in the completion of the project including the beginning of the rainy season, the post-election violence in parts of the North, and threats by some of the land owners over compensation issues.
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“We have listened to their worries and have received their assurance that they would give more time and resources towards the achievement of the first phase of the project by the beginning of next year. In fact, we have told them that the first phase of the project must be completed on or before March 31, 2012, preparatory for commissioning between April and June of next year,” he added.
The Federal Executive Council had in 2009 approved about N15 billion for the upgrade of the 16-year old National College of Petroleum Studies, in Kaduna, Kaduna State, which has been renamed National Institute for Petroleum Policy and Strategy.
Darma explained that the project when completed will become the flagship institution for training senior management personnel in the industry to become general management staff.
He said, “This institute would represent to the industry what the National Institute for Policy and Strategic Studies is to the public service and the National Defence College to the military.”
Darma further disclosed that the upgrade of the college, originally established by the Nigerian National Petroleum Corporation (NNPC) in 1992, would involve equipping it with relevant facilities, including a world-class laboratory for analytical work and research in oil as gas.
PTDF had set a target of 97 weeks from July 1, 2009 for the completion and commissioning of the project to upgrade the National College of Petroleum Studies.
Darma noted at the signing of consultancy agreements for the supervision of the project by selected consultants, that the deadline was derived from the work plan submitted by the contractors considered for the award of contracts for the project.
He urged the contractors and consultants to apply professional skills to ensure that the project is delivered on time and in good quality.
Darma gave assurance that the Fund would not delay in paying contractors as and when certificates are raised having regard to the provisions of the Public Procurement Act.
The PTDF boss further disclosed that the Fund has so far spent about N17 billion in the educational, organizational and infrastructural upgrade of the Petroleum Training Institute, Effurun, Warri for enhanced training of middle-level manpower for the industry.
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.
Business
Dangote not truthful on petrol prices in Saudi Arabia- Findings
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Oil
Why Dangote’s PMS Prices Can’t Be Reduced In Nigeria – Adeoye
It is no longer news that Nigeria reached a major milestone with the launch of the Dangote Refinery, allowing the country to produce its own petrol instead of importing it.
Consequently, Nigerians expected fuel prices to drop, which would help lower the rising costs of goods caused by the high price of petrol, but that has not been the case.
Recall that the first batch of PMS from the Dangote Refinery hit the market on Sunday as promised by the federal government.
However the smiles on Nigerians faces quickly wore off and their hope on the refinery for a reduced fuel price after recent increment of pump price was dashed with the price sold to the Nigerian National Petroleum Company Limited (NNPC Ltd).
Many Nigerians who had anticipated a lesser price compared to the present market price of between N855 and N950 were jolted when the NNPC Ltd released a price template for the stock received from the refinery.
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By implication, the price of Dangote PMS is over N100 costlier than the existing market price from NNPC retail stations and other major stations which has caused more fumes and complains by Nigerians.
Shedding light over the issues surrounding petrol price, an energy policy analyst, Yemi Adeoye while speaking on Friday at TVC Business News explained why PMS cannot be sold at lesser price by Dangote.
Adeoye explained that the NNPC is not the regulator of PMS if not an official announcement should have been made instead of Dangote’s instead NNPC is operating as a joint venture with Dangote like it is with every other international oil operating companies in Nigeria, which has come down to the relationship between Dangote Refinery and the NNPC. NNPC supplies Dangute crude oil, while the latter come back with refined PMS.
He also noted that the average price for gas everywhere in the world as well as U.S. is $3.33 in gallons, which amounts to N5,279 in Naira. He explained that a gallon is 4 liters and breaking it down per liter is N1,019.75, which Dangote would have been selling their PMS if allowed to function as a business entity. Therefore, the normal price should have been nothing less than N1,300 per liter without the regulation.
Explaining further, Adeoye said, “Nigeria produces crude oil but refining it requires several steps. First, crude oil must be extracted, which necessitates the use of an oil rig. The cheapest oil rig available costs around $100,000 to $150,000 per day. These factors, among others, contribute to the pricing of Premium Motor Spirit (PMS) because it is an international commodity.” while noting that Dangote would not have announced the price without the regulation of the NNPC.
Adeoye said the commitment of NNPC towards this is supplying crude oil to Dangote in naira instead of dollars which is fair.
“If Dangote should sell PMS as it should, it will be nothing less than N1300. The united state is the highest producer of crude oil with 32 refinaries and sells at N1,319 per liter talkless of Nigeria who owns just one refinary, he added.
Finally, Adeoye said PMS hike is a global phenomenal and it is affecting everything.