The Pacesetter Frontier Magazine

Tag: Nnpc

  • NNPC Takes Over Addax Petroleum Assets

    NNPC Takes Over Addax Petroleum Assets

    NNPC Limited remains the Concessionaire of the assets in line with extant laws and regulations.

    The Nigerian National Petroleum Company (NNPC) Limited has taken over the assets of Addax Petroleum Development (Nigeria) Limited.

    This is coming three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks, OMLs 123/124 & 126/137, operated by the company.

    NNPC Chief Corporate Communications Officer, Garba Deen Muhammad, in a statement on Tuesday, all closing obligations have been concluded and the Assets have been transferred to the Concessionaire, NNPC Limited.

    “Consequently, NNPC has taken necessary steps to take over the assets and oversee a clean, amicable, and speedy exit for Addax Petroleum Ltd., operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor while NNPC Limited continues to remain the Concessionaire of the assets in line with extant laws and regulations,” the statement partly read.

    “Exit negotiations and formalities have been concluded and NNPC Ltd. in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC have agreed on the clean and amicable exit for Addax by resolving all the PSC contractual issues, including litigations that culminated in the execution of a Transfer, Settlement, and Exit Agreement (TSEA) on the 1st of November 2022.”

    NNPC Ltd also announced the appointment of the Transition Team lead, Sagiru Jajere. NNPC Ltd said the much-needed investments will be deployed to the Assets while prudently conducting petroleum activities and creating value.

    (Channels TV)

  • Challenging times for FG, states, as NNPC again fails to remit, despite N470.61bn revenue

    These are challenging times for the federal and state governments as one major source of income to the federation account seems to be totally cut off.

    On Monday, The National Petroleum Company Limited (NNPC) revealed it failed to remit monies to the federation account in May 2022 despite making N470.61 billion.

    This is the fifth straight month NNPC has failed to credit the federal account while exporting crude at an average price of $100 per barrel.

    Details of the June FAAC report obtained by Ripples Nigeria showed NNPC since the start of the year made N1.897 trillion, over N234.1 billion more than the expected revenue.

    Sadly, however, NNPC said all the revenue had gone into various expenditure which includes petrol subsidy, oil search, Pipeline Security & Maintenance cost, National Domestic Gas Development and Nigeria Morocco Pipeline cost among others.

    As expected, the bulk of the expenditure, N1.27 trillion, went toward recovery (also known as petrol subsidy).

    In fact, NNPC said it has budgeted another N617 billion for petrol subsidy in June.

    The report reads: “The Value Shortfall on the importation of PMS recovered from May 2022 proceeds is N327,065,907,048.06 while the outstanding balance carried forward is N617bn .”

    “The estimated Value Shortfall of N845,152,863,012.97bn (consisting of arrears of N617bn plus estimated May 2022

    Value Short Fall of N227,721,200,478.23) is to be recovered from June 2022 proceed due for sharing at the July 2022 FAAC Meeting,” it added.

    The development means states have a tough road ahead and will have to look inwards to cover for the drop in federal allocations.

    Already, some states have announced plans to slash workers’ salaries over dwindling income.

    Kano Sate has already announced plans to slash workers’ salaries, following in the foot steps of the Ekiti State government that announced civil servants’ and political appointees’ salaries will be slashed in response to the present economic reality in the country.

    Ekiti went further to suspend minimum wage implementation with no date of resumptions.

    Ripples Nigeria had recently reported that pension contribution from governments dropped to a 16-year low in the first quarter of 2022.

    From recent developments, it is more likely the figure will tank further.

    (Ripples)

  • NNPC increases daily loading of Truck from 550 to 1661 across the Country

    THE Nigerian National Petroleum Corporation, NNPC, Tuesday, increased the daily loading of Premium Motor Spirit, PMS across the country from 550 to 1,661 trucks in order to eliminate long queues in Abuja and other parts of Nigeria.

     

    A statement by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the Managing Director of the Petroleum Products Marketing Company (PPMC), Mr. Musa Lawan, as stating that there are about two billion litres of PMS in strategic depots across the country to keep the nation well supplied for two months if no drop of fuel was imported in that period.

     

    Specifically, he stated: “We have embarked on massive load out. Today, we trucked out 1,661 trucks from all depots across the country. Reports reaching us show that they have already started arriving at the filling stations. We believe that this would ease out the queues.”

     

    Lawan disclosed that a 24-hour situation monitoring committee has been set up to track the movements of trucks from the depots to the various filling stations across the country, assuring that the queues will thin out in the next few days.

     

    The PPMC boss explained that the disruption in the distribution chain was caused by the strike embarked upon by Petroleum Tanker Drivers (PTD) over compensation.

     

     

    He assured that with the suspension of the strike upon the intervention of the Group Managing Director of NNPC, and the resumption of loading, coupled with the extension of loading time, normalcy would soon return to the filling stations.

     

    It would be recalled that the GMD’s intervention yesterday led to the suspension of the strike by the PTD for one week.

     

    Speaking in a similar vein at the State House after a meeting with the President, the Group Managing Director of NNPC, Mallam Mele Kyari, assured that with the resumption of loading, normalcy would soon return to the fuel situation across the country.

     

    He said the ex-depot price of petrol would remain the same for the month of May, urging marketers not to engage in an arbitrary price increase.

     

    He urged motorists to avoid panic buying in order not to compound the situation.

     

    He called on all relevant stakeholders in the downstream sector to collaborate with the NNPC to ensure a quick return to the zero-fuel queues situation that Nigerians had been enjoying before the unfortunate disruption of the distribution chain.

     

     

     

     

     

     

    Source: www.vanguardngr.com

  • NNPC Accused of illegally Deducting N1.3tn, Must Give Account -House Of Reps

     

    The House of Representatives Committee on Public Accounts has stated that the Nigeria National Petroleum Corporation must account for the alleged illegal withdrawals from the Federation Account in 2017, totaling N1.3tn.

     

    Chairman of the committee, Oluwole Oke (PDP-OSUN), stated this in Abuja on Tuesday at the committee’s investigative hearing on audit queries issued by the Office of the Auditor General of the Federation against ministries, departments, and agencies of the Federal Government.

     

     

    The committee had grilled the representative of the Accountant General of the Federation, Mr Ezeh Ekwueme, who appeared before the panel to explain the unauthorised deductions from Federation Account by revenue-generating agencies in the year under review.

     

    Oke stated that it was improper for the NNPC to take the monies without being queried by the appropriate agencies.

     

    He said, “They just take the money and nobody to ask questions. Even the Accountant General of the Federation cannot ask questions. NNPC has to account for the money. Aside illegally taking the money, which violates Section 162 of the constitution, they should render an account. What did they do with the money?”

     

     

    The committee also queried the accountant-general over the lack of full details on the aids and grants released to agencies, amounting to N6.6bn in the same year.

     

    Consequently, the lawmakers asked the accountant-general to provide a comprehensive list of beneficiaries of the donations.

     

    Oke also directed the clerk to write to the beneficiaries to forward briefs of the aides and grants and what they were used for, based on the queries issued by the AUGF and the response by the ACGF.

     

    The committee had on Thursday grilled top officials of the NNPC, warning the corporation against deducting from revenue from sales of petroleum products before remitting same to the Federation Account, threatening punitive action if the action was repeated.

     

     

    The committee had summoned the Group Managing Director, NNPC, Mr Mele Kyari, as well as the head of the corporation’s subsidiaries.

     

    One of the queries against the NNPC is alleging under remittance of revenue from domestic crude oil sales totalling N3.878tn.

     

    The OAUGF issued another other query against the NNPC bothering on the non-collection of miscellaneous gas receipts for some months in 2015, asking the corporation to refund N450bn to the Federation Account; another refund of N1.8tn as well as unpaid gas revenue without details worth $198,919,212.27 (N37,189,084,819.19).

     

    Kyari is particularly expected to respond to the audit query on “payment through Nigeria Gas Limited Funding Account $30,963,894.01 (N16,099,887,119.77) as well as misapplication of Joint Venture Cash Calls for other purposes, $292,094,405.82 and N2,474,295,000.

     

    Chairman of the committee, Oluwole Oke, gave the directive when the management of the NNPC appeared before it to defend a series of audit queries.

     

    On Thursday, the committee asked the corporation to account for unremitted gas revenue of about $228.9m and another N3.878tn from the sale of domestic crude.

     

     

    Source: www.punchng.com

  • Crude Oil: NNPC sales of petroleum products increases by 92% in October 2020

     

    The Nigerian National Petroleum Corporation (NNPC) has announced that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), recorded a total of ₦158.04 billion from the sales of white products in the month of October 2020.

    The Corporation disclosed this on its October Monthly and Financial Operation Report (MFOR) in Abuja, on Thursday.

     

    It said the amount represented 92 per cent increase over the ₦80.15 billion sales in September 2020.

     

    The report indicated that total revenues generated from the sales of white products for the period October 2019 to October 2020 stood at ₦1.95 trillion, with Premium Motor Spirit (PMS) accounting for about 99.07 per cent of the total sales with a value of over ₦1. 9trillion.

     

    In terms of volume, the October 2020 sales figure translates to a total of 1.224.54 billion litres of white products sold and distributed by PPMC within the period compared with 603.39 million litres in the month of September 2020.

     

    This, it said, comprised 1.224.20 billion litres of PMS, 0.31 million litres of Automotive Gas Oil (AGO) also known as diesel and 0.033 million litres of Dual Purpose Kerosene (DPK).

     

    “Total sales of white products for the period October 2019 to October 2020 stood at 16.462.50 billion litres and PMS accounted for 16.344.36 billion litres or 99.28 per cent,’’ it said.

     

    On pipeline vandalism, it noted that 23 pipeline points were vandalised in the month under review, representing about 10 per cent increase from the 21 points recorded in September 2020.

     

    “ Of this figure, Mosimi area accounted for 83% of the vandalised points, while Port Harcourt Area accounted for the remaining 17 per cent,’’ it said.

     

    In the Gas Sector, the report revealed that a total of 214.07 billion Cubic Feet (bcf) of natural gas was produced in the month October 2020, translating to an average daily production of 6,908.34 Million Standard Cubic Feet per Day (mmscfd).

     

    It noted that the daily average natural gas supply to power plants increased by 8.60 per cent to 745mmscfd, equivalent to power generation of 2,801 Megawatts.

     

    “For the period of October 2019 to October 2020, a total of 3,018 BCF of gas was produced, representing an average daily production of 7,658.88 mmscfd during the period,’’ it said .

     

    The MFOR also indicates that period-to-date gas production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 68.18 per cent , 20.12 per cent and 11.70 per cent respectively to the total national gas production.

     

    It adds that in terms of natural gas off take, commercialisation and utilisation, out of the 208.96 BCF of gas supplied in October 2020, a total of 118.40 BCF of gas was commercialised, consisting of 38.07 BCF and 88.90 BCF for the domestic and export market respectively.

     

    This, it said, translated to a total supply of 1,269.03mmscfd of gas to the domestic market and 2,870.57mmscfd of gas supplied to the export market for the month.

     

     

     

    Source: www.vanguardngr.com

  • NNPC: Nigeria generated $120.49m in September from oil exports

    The Nigerian National Petroleum Corporation on Sunday announced a total export receipt for crude oil and gas valued at $120.49m for the month of September 2020.

    NNPC’s Group General Manager, Group Public Affairs Division, Kennie Obateru, said the figure was contained in the September 2020 edition of the corporation’s Monthly Financial and Operations Report.

    He said in a statement issued in Abuja that the $120.49m crude oil and gas export receipt was a 16.28 per cent improvement on the $100.88m posted in August 2020.

    The report showed that out of the figure, proceeds from crude oil amounted to $85.40m, while gas and miscellaneous receipts stood at $25.31m and $9.78m respectively.

    The September 2020 MFOR also indicated a trading surplus of N28.38bn, lower than the N29.6bn surplus in August 2020.

    The reduction in surplus, according to the report, was as a result of lower contribution from the Nigerian Petroleum Development Company, which recorded zero crude oil lifting from the Okono Okpoho facility during the month due to ongoing repairs.

    Other NNPC subsidiaries including the Integrated Data Services Limited, National Engineering and Technical Company Limited, Nigerian Gas Marketing Company, Petroleum Products Marketing Company and NNPC Retail recorded 268, 234, 21, 422 and 41 per cent trading surpluses respectively over their previous month’s performance.

    In the gas sector, a total of 223.82 billion cubic feet of natural gas was produced in the month under review, translating to an average daily production of 7,460.8 million standard cubic feet per day.

    From September 2019 to September 2020, a total of 3,039.05bcf of gas was produced, representing an average daily production of 7,730.35mmscfd during the period.

    Period-to-date production from Joint Ventures, Production Sharing Contracts and NPDC contributed about 69.1 per cent, 20.29 per cent and 10.61 per cent respectively to the total national gas production.

    Out of the 221.91bcf of gas supplied in September 2020, a total of 140.45bcf was commercialised, consisting of 36.37bcf and 104.08bcf for the domestic and export markets respectively.

    This translates to a total supply of 1,212.17mmscfd of gas to the domestic market and 3,469.45mmscfd of gas supplied to the export market for the month.

    ‌

    This implies that 63.29 per cent of the average daily gas produced was commercialised, while the balance of 36.71 per cent was re-injected, used as upstream fuel gas or flared.

    Gas flare rate was 6.66 per cent for the month under review, representing 492.93mmscfd when compared with average gas flare rate of 5.84 per cent i.e. 439.90mmscfd for the period of September 2019 to September 2020.

     

    To ensure effective supply and distribution of Premium Motor Spirit across the country, a total of 0.59 billion litres of PMS translating to 19.59 million litres/day was supplied for the month in the downstream sector.

    During the period under review, 21 pipeline points were vandalised. This represents about 43 per cent decrease from the 37 points recorded in August 2020.

    Of this figure, Mosimi Area accounted for 90 per cent of the vandalised points, while Port Harcourt Area accounted for the remaining 10 per cent.

    The NNPC stated that it was collaborating with the local communities and other stakeholders to reduce and eventually eliminat e the menace of pipeline vandalism.

     

    Source: www.punchng.com