edith.ike-eboh

<h1>The Nigerian National Petroleum Corporation (NNPC) says it will build three Independent Power Plants (IPP), with a combined capacity of 4,000 megawatts of electricity in Abuja, Kaduna and Kano states.</h1>

The corporation disclosed this in a statement issued by its spokesman, Mr Ndu Ughamadu, in Abuja, on Tuesday.

It said the NNPC also plan to set up a fertilizer plant in Brass, Bayelsa State, to boost agriculture in the South-South and other regions of the country.

Chief Operating Officer, Gas and Power of the corporation, Mr Saidu Mohammed, said that the planned power projects would be driven by the coming on stream of the NNPC Power subsidiary, Gas and Power Investment Company (GPIC).

Mohammed spoke at the inaugural board meeting of the GPIC

He said the company would help the NNPC transform into an integrated energy company with the production of 4,000 megawatts of power at strategic locations.

He added that all relevant stakeholders in the power sector were in alignment with the NNPC with the establishment of the GPIC.

Also, Chief Financial Officer of the NNPC and Chairman of the Board of the GPIC, Mr. Isiaka Abdulrazaq, said the GPIC was established as a subsidiary under the Gas and Power Directorate to enable the corporation monetize the abundant gas resources in the country for the benefit of the nation’s economy.

Abdulrazaq said the GPIC was a very strategic company through which the NNPC would create more value for the country.

He added that by the time the IPPs come on stream in Abuja, Kaduna and Kano, the Small Medium Enterprises, SMEs, in the areas would be better for it.

“The GPIC is a company which the NNPC has set up basically to focus on how it can create value and monetise the country’s abundant gas resources.

“The company will also be focused on developing power stations, fertiliser plants as well as petrochemical plants across the states.” he said

He noted that the NNPC had set up the Board to enable the company achieve its set targets within a very short period.

“The Board meeting has mapped out strategies to properly guide the company to enable it achieve its Key Performance Indicators,,” he added

He said that the initiative would add value in terms of payment of taxes and generating more revenue for the country, as well as more job opportunities for Nigerians.

The Group Managing Director (GMD), NNPC, Dr Maikanti Baru,

The corporation disclosed this in a statement issued by its spokesman, Mr Ndu Ughamadu, in Abuja, on Tuesday.

NNPC to build Power Plants in 3 states, fertilizer plant in Bayelsa

<h1>The Nigerian National Petroleum Corporation (NNPC) says it has recovered assets worth over N771 million from some marketers who under-paid for petroleum products supplied to them.</h1>

The corporation disclosed this in a statement issued by its spokesman, Mr Ndu Ughamadu, in Abuja, on Tuesday, and said that the marketers got the products from Kaduna Depot of Petroleum Products Marketing Company (PPMC).

Chairman of NNPC Anti-Corruption Committee, Mr Mike Balami, said that the recovery was made by the committee in collaboration with Federal Government’s intelligence and anti-corruption agencies.

He named the agencies as Department of State Services (DSS), Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Balami said that the committee brought in forensic experts to uncover the shady deals by some of the marketers affected.

He disclosed that some of the assets recovered included filling stations, water factories and six sports utility vehicles.

He added that the forensic investigation would be extended to other depots across the country to stop the bleeding of the national oil company.

The chairman noted that it had been established that the affected marketers lifted petroleum products from the Kaduna depot without evidence of payment.

According to him, when they were confronted with the evidence, they admitted to the offence but failed to pay their liabilities.

He said that NNPC’s Group Managing Director, Dr Maikanti Baru, was passionate about stopping all the leakages in the corporation.

Balami announced that the recovered assets would be handed over to NNPC Corporate Asset Boarding and Disposal Committee (CABDC) for immediate disposal.

He said that investigation into lifting of petroleum products without evidence of payment was continuing, and urged relevant stakeholders to support the committee in its onerous task of recovering all its monies outside NNPC’s system.

He said that this was the first time that NNPC would be taking over assets forfeited by marketers who defaulted in their terms of engagement.

The Group Managing Director of NNPC, Maikanti Baru

Chairman of NNPC Anti-Corruption Committee, Mr Mike Balami, said that the recovery was made by the committee in collaboration with Federal Government’s intelligence and anti-corruption agencies.

NNPC recovers assets worth N771m from defaulting marketers

<h1>The Nigeria Extractive Industries Transparency Initiative (NEITI)said that Nigeria lost at least $16 billion in ten years due to non-review of the 1993 Production Sharing Contracts, (PSC), with oil companies.</h1>

This was one of the highlights of the latest report by NEITI released in Abuja Sunday. It was tagged “The Steep Cost of Inaction”.

It said that the losses were recorded between 2008 and 2017.

The study done in conjunction with Open Oil, a Berlin-based extractive sector transparency group, found that the losses could be up to $28 billion if, after the review, the Federation were allowed to share profit from two additional licenses.

NEITI, therefore, called for an urgent review of the PSCs to stem the huge revenue losses to the Federation.

It added that the review was particularly important for Nigeria because oil production from PSCs had surpassed production from Joint Ventures (JV) with PSCs now contributing the largest share to federation revenue.

“Between 1998 and 2005, total production by PSC companies was below 100 million barrels per year while JV companies produced over 650 million barrels per year.

”By 2017, total production by PSC companies was 305.800 million barrels, which was 44.32 per cent of total production.

”Total production by JV companies was 212.850 million barrels, representing 30.84 per cent of total production.” It said.

NEITI stated that the Deep Offshore and Inland Basin Production Sharing Contracts provided for a review of the terms on two conditions.

“The first review was to be triggered, if oil prices exceeded 20 dollars per barrel.

“Section 16 (1) of the Deep Offshore and Inland Basin Production Sharing Contracts specifies that: The provisions of the Act shall be subject to review to ensure that if the price of crude oil at any time exceeds 20 dollars per barrel, real terms, the share of the Government of the Federation in the additional revenue shall be adjusted under the Production Sharing Contracts to such extent that the Production Sharing Contracts shall be economically beneficial to the Government of the Federation.”

NEITI observed that this review should have been activated in 2004 when oil prices exceeded the 20 dollars per barrel mark.

It added that although the review was not done in 2004, the judgement of the Supreme Court in October 2018 had mandated the Attorney General of the Federation to work together with the governments of Akwa Ibom, Rivers and Bayelsa States to recover all lost revenues accruable to the Federation with effect from the respective times when the price of crude oil exceeded $20 per barrel.

It further stated that the second review was to be activated 15 years following commencement of the PSC Act, where Section 16 (2) states that “Notwithstanding the provisions of subsection (1) of this section, the provisions of this Decree shall be liable to review after a period of 15 years from the date of commencement and every 5 years thereafter”.

The transparency watchdog disclosed that at inception in 1993, the PSC terms were drawn up to attract oil and gas companies to invest in the exploration and production of offshore fields considering the risks involved coupled with low oil prices.

“Thus the PSC contracts were supposedly more beneficial to the companies. However, the Law anticipates that the companies would have recouped their investments when oil price increases and after many years of operations, hence the two trigger clauses in the Act.

“Since the Supreme Court judgement has addressed the condition for the first review, this second review was the focus of NEITI’s Policy Brief.

” This second review should have happened in 2008 and informed why it chose 2008 as the the start date for commencement of estimated losses in the model,” NEITI noted.

It explained that to determine the losses, the analysis was conducted for the seven producing fields of the 1993 PSCs, which are Abo (OML 125): operated by Eni; Agbami-Ekoli (OML 127 &amp; OML 128): operated by Chevron; Akpo &amp; Egina (OML 130): operated by Total and South Atlantic Petroleum; and Bonga (OML 118): operated by Shell.

Others, it said are Erha (OML 133): operated by ExxonMobil; Okwori &amp; Nda (OML 126): operated by Addax; and Usan (OML 133): operated by ExxonMobil.

It said that the losses were recorded between 2008 and 2017.

Nigeria loses $16bn to PSC – NEITI

<h1>President Muhammadu Buhari has called on African leaders to support whatever will help drive infrastructure development in the oil and gas sector in the region.</h1>

Buhari gave the advice at the opening ceremony of the second edition of the Nigerian International Petroleum Summit (NIPS) in Abuja on Monday.

The Theme of the summit was “ Shaping the Future through Efficiency and Innovation.’’

The President, represented by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said that infrastructure development in the sector would help to boost various economies in the continent.

“The theme of this particular conference is one, Africa, two collaboration, three futuristic. The sheer fact of collaboration in Africa is something that should be of concern for African leaders.

“In the last three days, delegation from African countries, represented by some of their minister here, were here to attend African Petroleum Producers Organisation (APPO) exra-ordinary meeting."

“That meeting was dedicated to finalising the prototypes of reforms we want to bring into APPO."

According to him, the meeting came up with the idea of expanding the role of the financial body – “African Energy Investment Corporation”.

President Buhari said that the idea was to mobilise about two billion dollars to begin to fund all the essentials that were necessary for proper collaboration in Africa.

He said that it was unfortunate that most African countries were operating in silos in building pipelines and gas plants, among others.

“If we are able to extend the hands of infrastructural development in Africa, build pipelines, joint plants, refineries and begin to protect African market, we would have taken a huge step not only for Africa, but stabilisation of independence of African countries,’’ he said.

He said that APPO had signed a resolution on major projects and would soon commence implementation.

The president said that Africa had no option than to focus on what needed to be done to secure the future of the region.

He said that Africa was still faced with the challenge of Shale, oil pricing, investment limitation and so many others.

“When you look at the opportunity side, so much are going on like Egina project by Total Nigeria, Shell is getting ready for Bonga, Agip is working right now with Zabazaba, that is all in Nigeria.

“But all over Africa, discoveries are abound and suddenly, we find out that opportunities are coming with huge challenges, challenges relating to production.

“You cannot produce oil like before, people have to check the environmental impact of what they do, host community challenges are not just becoming just vociferous, but militant in nature,’’ he said.

He said the means of getting finances were also getting tighter, adding that most emerging economies finding oil were also faced with huge challenges.

Buhari said that unless polices, market place, collaborative mechanism and infrastructure, the continent would continue to be faced with huge challenges.

He said that independent producers were contributing 12 per cent of the nation’s production, but needed to be improved to 30 per cent.

“We need to create models that would encourage them to invest their money, seek resources and refinances,’’ he said.

The President said that there was the need to harness human capabilities in the country for the benefit of the continent.

Dr Maikanti Baru, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), said that summit was a veritable platform to discuss African challenges,

“This is a good platform to share ideas that will help African economies and move the continent forward,’’ he said

According to him, issues on infrastructure, transparency and regulatory framework remain the focus in the drive for collaboration in the region.

He said that Nigeria and Morroco had signed an MOU on gas pipeline which would connect about 15 countries and even serve gas demand of the Europe.

“The feasibility study has been concluded, the pre-Final Investment Destination (FID) is ongoing. When concluded, it will help to boost industrialisation which will take Africa to the next level.

“Africa needs to collaborate and trade with each other," he said.

Baru urged participants to actively participate for greater result that would bring about growth and development in the oil and gas sector and the continent at large.

Buhari gave the advice at the opening ceremony of the second edition of the Nigerian International Petroleum Summit (NIPS) in Abuja on Monday.

Buhari challenges African leaders on development

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edith.ike-eboh

Articles written by the author

NNPC to build Power Plants in 3 states, fertilizer plant in Bayelsa

NNPC recovers assets worth N771m from defaulting marketers

Nigeria loses $16bn to PSC – NEITI

Buhari challenges African leaders on development