By Martin Paul, Abuja
Newly appointed Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, will today assume office, taking over from Dr Maikanti Baru.
The outgoing Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, has urged his successor, Malam Mele Kyari, to exceed the milestones recorded by his management.
A statement issued by NNPC Group General Manager, Group Public Affairs, Mr Ndu Ughamadu, yesterday in Abuja said Baru advised his cussessor to perform above his achievements in the corporation.
Baru said this when he received Borno State Governor, Babagana Zulum, who led a delegation from the state on a courtesy visit to him.
He expressed optimism that Kyari, as a thorough-bred professional and product of the NNPC system, would deploy his cognate experience, expertise and exposure to deliver greater achievements.
Baru noted that the incoming GMD played critical roles in delivering various projects that had reformed the corporation within a short period, adding that being part of the corporation’s new vision, Kyari is in a vantage position to perform better.
“We came in at a time when the country was experiencing low production, low staff morale and high rate of pipeline vandalism. However, we worked hard as a team, surmounted the challenges and finished strong.
“I am, therefore, glad that one of us, with professional competence and experience, will be taking over from me,” he said.
Commenting, Zulum congratulated Kyari on his appointment and expressed gratitude to President Muhammadu Buhari for finding a son of Borno State worthy of the honour.
He called on the GMD-designate to discharge his duties to the best of his ability without compromising national interest.
The governor appreciated the outgoing GMD for his mentor-ship and training that had prepared Kyari for the enviable position in the nation’s largest oil and gas company.
FG Awards Licences for 161 Marginal Fields as 13 Remain Dormant
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has awarded Petroleum Prospecting Licences (PPLs) to 161 successful 2020 marginal fields awardees.
The commission also officially unveiled the Host Communities Development Regulations and model Petroleum Prospecting Licences (PPLs).
Chief Timipre Sylva, the Minister of State Petroleum Resources, at the unveiling and licences presentation on Tuesday in Abuja said the maiden presentation of the PPL was part of the implementation of Petroleum Industry Act (PIA), 2021.
This is as the Federal Government revealed that 13 out of the 30 marginal fields awarded since 1999 were not producing crude oil, as only 17 of the fields were currently meeting the target of crude oil production, adding that a total of N202.91bn was raked in by the government from the just concluded 2020 marginal field bid round.
The award, the government said was pursuant to the provisions of the Petroleum Industry Act 2021.
This came as successful awardees, such as Matrix Energy Group, Petrogas Energy, among others, promised to begin oil search from the fields in earnest to boost the country’s crude oil production.
In his address at the event, the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stated that one of the major tasks inherited by the NUPRC upon its inauguration last year, was the need to conclude the 2020 bid round.
“Consequently, we pursued the matter frontally and are delighted to inform you that the exercise which commenced in June 2020 is being concluded today,” he stated.
Komolafe explained that historically, the marginal fields award initiative began in 1999 and was borne out of the need to entrench the indigenisation policy of government in the upstream sector of the oil and gas industry and build local content capacity.
He said, “Besides, the initiative was also targeted at creating employment opportunities and encouraging increased capital inflow to the sector.
“Since its inception, a total of 30 fields have been awarded, with 17 currently producing. A breakdown of the allocation of the fields to indigenous operators is as follows: two fields awarded in 1999, 24 in 2003/2004, one each in 2006 and 2007, and two in 2010.
He added, “Ten years after, in 2020, 57 fields were put up for bidding. Again, it is noteworthy that the 2020 marginal field bid round exercise in respect of which PPLs are being issued today has attracted government revenue of about N200bn and $7m (N2.91bn at official exchange rate of N415.64/$) respectively.”
Speaking to journalists on the sidelines of the event, the Group Chief Executive Officer, Matrix Energy Group, Adisa Aliu, said successful investors in the bid round would commence oil search as fast as possible.
Aliu, who’s company emerged successful in the exercise, said the contributions of marginal field operators would help the country in meeting the monthly oil production quota approved for Nigeria by the Organisation of Petroleum Exporting Countries.
For several months running, Nigeria has been failing to meet its crude oil production quota approved by OPEC, a development that has further depleted the country’s revenue from oil.
“We are delighted at the conclusion of this exercise and we are ready to contribute our quota in assisting to meet the target approved for Nigeria and as well help in shoring up revenue for our county,” he stated.
He, however, noted that security should be improved in the Niger Delta, as this had been a challenge to not just the production of crude oil, but to the meaningful progress of the sector.
Meanwhile, the NUPRC in its presentation at the event, stated that the passage of the Petroleum Industry Act had brought an end to the era of marginal field awards.
Section 94(9) of the Act stated that “No new marginal field shall be declared under this Act”.
The agency stated that the Minister of Petroleum Resources shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act.
It urged the new investors to hit the ground running in developing their awarded assets in line with industry best practices.
“Also, we shall continue to provide a predictable and enabling regulatory environment to operators in line with our technical and commercial statutory
mandates with a view to optimising the development and exploitation of the nation’s hydrocarbon resources,” it stated.
It said it was worthy of note that the average price of crude oil in recent months had been above $100/barrel, adding that investors in the fields should take advantage of this upward swing in market fundamentals, caused by the Russian/Ukraine conflict.
Breaking: Reps Raise Crack Team to Probe Oil Subsidy Regime Under Buhari
By Ubong Ukpong, Abuja
The House of Representatives yesterday, raised a crack adhoc committee, to Probe the petroleum Products subsidy Regime in the last five years, from 2017 to 2021
The committee was given eight weeks to carryout this investigation and report back to the House for further legislative action.
The decision was sequel to a motion on the “Need to Investigate the Petroleum Products Subsidy Regime in Nigeria from 2017 to 2021”, brought before the Honda by Hon.
The lawmaker had said that his motion was informed by section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria (As Amended) , which empowered the National Assembly to conduct investigations into the activities of any authority executing
or administering laws made by the National Assembly;.
He also noted that Section 32 of the Petroleum Industry Act, 2021 saddled the Petroleum Midstream and
Downstream Regulatory Authority with the task of regulating and monitoring technical and commercial
midstream and downstream petroleum operations in Nigeria.
Ogun informed the House that as of 2002, the NNPC’s purchase of crude oil at international market prices stood at 445,000 barrels per day in order to enable it to provide petroleum products for local consumption.
He was concerned that as at 2002, the installed capacity of Nigeria’s local refineries stood at 445,000 barrels per
day, however, their capacity utilization began to nosedive and eventually fell completely to zero due to the
ineffectiveness and alleged corruption of critical stakeholders in the value chain.
The lawmaker said he was aware that due to the decline in the production capacity of the refineries, NNPC found it more convenient to export domestic crude in exchange for petroleum products on trade by barter basis described as Direct Sales Direct Purchase (DSDP) arrangement.
He said he was further aware that component costs in the petroleum products subsidy value chain claimed by the NNPC was highly over-bloated while the transfer pump price per litre used by the NNPC in relation to PPMC was
underquoted as N123-N128 instead of N162-N165 and this fraudulent under-reporting of N37-N39 per
litre translates into over 70 billion naira a month or 840 billion naira a year.
The legislator worried that the consumption rate of Premium Motor Spirit (PMS) was 40million to 45million litres per day, however, the NNPC used 65 million to 100 million litres per day to determine subsidy as discoverable
from NNPC’s monthly reports to the Federal Allocation Committee (FAAC).
He also worried that the subsidy regime has been unscrupulously used by the NNPC and other critical
stakeholders to subvert the nation’s crude oil revenue to the tune of over 10 billion US dollars, with records
showing that as at 2021, over 7 billion US dollars in over 120 million barrels have been so diverted.
The lawmaker was disturbed that “there exists evidence that subsidy amounts are being duplicated, thus subsidy is charged against petroleum products sales in the books of NNPC as well as against crude oil revenue in the books
of NAPIMS to the tune of over N2 trillion.”
Wabote Tasks Security Agencies on Enforcement of Nigerian Content in Oil and Gas Sector
From Tayese Mike, Yenagoa
The Nigerian Content Development and Monitoring Board (NCDMB) has tasked security agencies in the country to intensify their efforts in the enforcement of the Nigerian Content in the oil and gas sector in other to boost the local participation in the sector.
Executive Secretary of the board, Engr Simbi Wabote, stated this during a sensitization workshop for law enforcement agencies on the approach to Nigerian Content enforcement in the oil and gas industry yesterday in Yenagoa.
He explained that the workshop becomes imperative to sustain the achievements made by the board in boosting indigenous participation in the oil and gas industry.
He said it was significant to enlighten stakeholders on how to encourage the indigenous participation in the oil and gas sector.
“With the results we have been able to achieved in boosting indigenous participation in the oil and gas industry, it is pertinent to enlighten law enforcement agent on how to enforce the NOGIC act.
“We have custom, EFCC, ICPC, DSS, and these are all law agents that all have a role to play as we implement the NOGIC act, that is why we schedule the workshop,” he said.
Head, Legal Services of NCDMB, Barrister Naboth Onyesoh, said the essence of the workshop was to bring in relevant stakeholders to support local content in the implementation and enforcement of the Nigerian Content act.
The workshop is part of the national economic agenda gear towards employment, creating industrialization, ensuring capital retention in the country and so many other activities revolving around the oil and gas industry.
Representatives of the security operatives from Nigerian Army, Customs, police, EFCC, ICPC, DSS, and several others attended the workshop.
Katsina-Ala Catholic Diocese, Installs Dugu, New Bishop
Share Post Views: 28 From David Torough, Makurdi Most Reverend Isaac Dugu was on Friday installed the new Bishop of...
Economic Group Backs FIRS on Unremitted Revenue Recovery From States, LGAs
Share Post Views: 38 An economic policy think tank group, Global Economic Policy Initiative (GEPiN), yesterday said that the powers...
2023 Presidency: PDP, APC Chieftains Bicker Over Atiku, Tinubu Chances.
Share Post Views: 32 The Ondo Central Senatorial Candidate on the platform of the Peoples Democratic Party (PDP), Mr Ifedayo...
Nigerian Households Spend $14bn Annually to Fuel Generators
Share Post Views: 33 Over 40 per cent of households in Nigeria own and use generators to meet their electricity...
APC Upholds MacDonald’s Exco in Imo
Share Post Views: 36 By Jude Opara, Abuja The All Progressives Congress (APC) yesterday upheld the MacDonald Ebere led State...
Free Medical Outreach in Nasarawa
Share Post Views: 46 Tatara community in Panda Development area has praised the executive chairman of Karu Local government area,...
NPC Commissioner reaffirmed Plans for a Paperless Census in 2023
Share Post Views: 54 The federal commissioner representing Nasarawa state at the National Population Commission Abuja, Silas Ali Agara, has...
4, 770 Terrorists, Families surrender to Nigerian Troops, 11 arrested – DHQ
Share Post Views: 55 By Gom Mirian, Abuja The Defence Headquarters said a total of 4, 770 Boko-Haram terrorists and...
2023: Umahi’s Deputy Governor, Igwe speaks on his Defection from APC to LP
Share Post Views: 49 Godwin Okeh, Abakaliki Ebonyi state deputy governor, Chief Kelechi Eric Igwe has few months to the...
Troops arrest 10 Robbers, rescue 3 Victims in Kaduna
Share Post Views: 59 By Gom Mirian, Abuja The military high command, yesterday said its troops deployed on internal operations...