Connect with us

Oil & Gas

NNPC Targets 3m bpd Crude Oil Production

Published

on

Malam Mele Kyari
Share

The Federal Government says it will increase crude oil production to the national target of three million barrels per day and reserves of 40 million barrels before 2023.

Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said this while addressing the House of Representatives Committee on Petroleum Upstream chaired by Rep.

Musa Adar (Sokoto-APC) on Monday.

According to Census and Economic Information Centre (CEIC), Nigeria’s crude oil production was reported at 1,866 barrels/day in August, recording an increase from the previous number of 1,780 barrel/day for July.

The data reached an all-time high of 2,496 barrels/day in Nov.

2005 and a record low of 1,419 barrels/day in Aug. 2016.

Also, according to NNPC, reserves of crude oil stand at 28.2 billion barrels.

“It is true that our production target has not materialised over the years and indeed the national target of three million barrels/day and 40 million barrels of reserve has not been attained.

“What I can assure you is that we are very focused today, we know this is possible and we have taken steps to realise this before the end of 2023,” he said.

The GMD said that a number of interventions were ongoing to ensure increase in the production of crude oil.

According to him, there are issues around security across the areas of our operations and that has hindered some intervention in some of the onshore assets; it is, however, not left unattended.

“There are ongoing engagements by our security agencies in collaboration with stakeholders and it has come to the bearest minimum.

“Also, some stealing of crude is going on and there are efforts on it to stop this and we believe that within record time, this will be contained so that you will see incremental value in the production numbers that we have.

“We know that this (production) will grow because of the interventions we are doing and resolution of issues that we are doing with our partners,” he said.

Kyari said that partners were going back to exploration and production but urged the National Assembly to put the petroleum legislation in place that would encourage more investment in the industry.

“Snce 2007, there is no significant investment decision made by this industry in our country and the highest that was done was an investment increase of about $500 million and that means there is something responsible for it.

“One of them is fiscal clarity. As you are aware Mr. Chairman, efforts to bring the petroleum legislation on the table has not materialised and I know today that this Assembly is very determined to ensure that the legislation is put in place.

“That will address the issue of fiscal stability because investors must be convinced that your laws will not change, you have stable fiscal regime and they know the basis of their investment.

“I believe that when we restore the issue of fiscal legislation, it will be a mighty step towards getting our partners to invest in our country.”

Kyari also said the NNPC was working on modalities to get refineries in the country working again, which would contribute to the reduction in the cost of production.

According to him, the refineries did not fail because there were no skills but because we were unable to take care of them and we do not want to give excuses.

“We can blame anyone but what we have decided to do is to make them work; there is no scarcity of skilled people and the will is there today.

“Our plan subsequently, at the right time, we will get them to you and I assure you that the plans we have in place will deliver these refineries,” he said. (NAN)

Oil & Gas

Why we are Recording Increased Oil Production – Edun

Published

on

Share

The Federal Government says improved security in the Niger-Delta is responsible for the increased crude oil production to 1.65 million barrels per day as against the 1.25 million bpd previously recorded.

Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated this in Abuja at a Podcast hosted by Bruit Costaud in collaboration with Ballard Partners of U.

S.A.

Reports says the immediate past Minister of Information and Culture, Alhaji Lai Mohammed is the Managing Partner of Bruit Costard, a lobbyist and public relations firm and an affiliate of Ballard Partners.

According to Edun, the quickest way to get revenue for critical infrastructure is to shore up oil revenue.

“This is quickest way of giving the government the needed revenue to address our urgent needs.

“The government doesn’t have enough revenue for critical infrastructure and social services which are crucial to Nigerians now.

“The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day.

“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary,’’ Edun said.

Edun added that non-oil revenue as well as revenues from taxation were also critical to government.

“If you know about Mr President’s antecedent, the first thing he did in Lagos as governor was to get hold of the revenue.

“What he did was to deploy digitisation.  He used the latest technology to block the leakages and to improve the efficiency of monitoring and collection.

This is exactly the same thing we are doing at the federal level now.

“The revenue of the Federal government has been totally revamped.

“There has been application of technology to ensure what is due to the federal government, particularly from its various revenue-earning arms,  agencies,  companies, and enterprises is not taken,’’ he said.

The minister said that plans were ongoing to give incentives to small, medium and larger businesses. (NAN)

Continue Reading

Oil & Gas

Dangote Petroleum Refinery Begins Production of Diesel, Aviation Fuel – Official

Published

on

Share

Dangote Petroleum Refinery has commenced production of diesel and aviation fuel.

Mr Anthony Chiejina, Group Head, Corporate Communications, Dangote Group, confirmed this in a statement to newsmen in Lagos.

Chiejina quoted the President of Dangote Group, Alhaji Aliko Dangote, to have elatedly thanked President Bola Ahmed Tinubu for his support, encouragement and thoughtful advice towards the actualisation of this project.

Dangote also thanked the Nigerian National Petroleum Company Ltd.

, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerians for their support and belief in the historic project.

According to him, “We thank President Tinubu for his support and for making our dream come true.

“This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to details.

“His intervention at various stages cleared all impediments, thereby accelerating the actualisation of the project.

“We also thank the NNPCL, NUPRC and NMDPRA for their support.

“These organisations have been our dependable partners in this historic journey.

“We also thank Nigerians for their belief and support in this project,” he said.

Dangote said: “We have started the production of diesel and aviation fuel, and the products will be in the market before the end of the month.

“This is a big day for Nigeria. We are delighted to have reached this significant milestone.

“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.

“This is a game changer for our country, and I am very fulfilled with the actualisation of this project.

“The refinery has so far received six million barrels of crude oil at its two SPMs located 25 kilometres from the shore.

“The first crude delivery was done on Dec. 12, 2023, and the 6th cargo was delivered on Jan. 8, 2024,” he added.

He said that the refinery can load 2,900 trucks a day at its truck-loading gantries.

He added that the products from the refinery will conform to Euro V specifications.

Dangote boss said that the refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms. State-of-the-art technology.

“I must extend our sincere appreciation to our Bankers and financiers, both local and offshore, who demonstrated a great deal of patience, in seeing us through many difficult times.

“In the same vein, we thank the Government of Lagos State, under the leadership of Babajide Sanwo-Olu, who has been incredibly proactive in ensuring that the many challenges we encountered in the course of executing this project were quickly resolved.

“I thank him immensely.

“I also sincerely thank our host communities and their traditional leaders for their sustained patience, forbearance, and admirable willingness to work with us to find amicable and win-win resolutions to the many issues we have had to deal with as the construction of this huge facility progressed.

“Our staff have also contributed so immensely to the success of this project. I thank them profusely,” Dangote added.(NAN)

Continue Reading

Oil & Gas

Refinery Rehab: Don’t Expect Immediate PMS Price Crash, Experts Tell Nigerians

Published

on

Share

Some Oil and Gas Experts have said that the coming on stream of both Port Harcourt and Dangote refineries may lead to some marginal reduction in the cost of petroleum products and not a significant price crash.

The experts made this known in an interview on Sunday in Abuja.

According to them, some ancillary costs such as freight and port charges, among others would have been eliminated to achieve the marginal reduction.

The Federal Government had on Dec.

21, announced the mechanical completion and flare start-up of the Port Hacourt Refining Company Limited (PHRC) and the subsequent streaming of its phase two in 2024.

This, according to the Minister of State Petroleum (Oil), Sen.

Heineken Lokpobiri, will herald the commencement of the production of petroleum products after the Christmas break.

The PHRC comprised of two refining units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.

Reacting to the development, an Associate Professor of Energy and Natural Resources, University of Abuja, Olanrewaju Aladeitan, said there should be some marginal reduction in petrol prices as some ancillary cost would have been eliminated.

However, he explained that the price of petroleum products may not come down significantly as to describe it as crashing.

“The price may not come down significantly considering the fact that crude oil and condensates supply for the domestic market under the Petroleum Industry Act is going to be based on a willing supplier and a willing buyer basis.

“And the fact that the supply of crude oil will be commercially negotiated having regard to prevailing international market price for similar grades of crude,” he said.

With this provision, he said there would be no dedicated percentage of crude for local refineries.

“Hence international market price which of course is denominated in dollars will still be the determinant of cost of the crude oil that would be refined.

“So I do not see how the price of Petroleum products will crash,” Aladeitan said.

Also speaking, Mr Yushau Aliyu, an Economic Expert, said reaching to a mechanical test of the refinery after a very long fruitless effort was an indication that part of our refined Premium Motor Spirit (PMS) deficit would be attended.

Aliyu described it as a good signal of recovering in the forex deficit which dominated the dwindling liquidity crisis.

“In addition, the new Nigerian National Petroleum Company Limited (NNPC Ltd.) is responding to the immediate solution for availability of PMS in the economy.

“We are expecting the NNPC Ltd.’s retail stations to reduce their pump price due to absence of landing cost in the short term effects,” he said.

Another oil and gas expert who preferred to remain anonymous said it was obvious that some people in the oil and gas sector were engaged in an act of sabotage.

He frowned at the situation where the government preferred to spend so much, including foreign currency, to import fuel, rather than fix it refineries.

“They claim that the 60,000 barrels capacity refinery in Port Harcourt is back on stream, while the 150,000 barrels capacity will work soon.

“We are waiting to see them work, including that of Warri and Kaduna. When they are put to use, let’s see why fuel prices will not crash,” the expert said.

NAN reports that pump price of PMS has increased to N660 per litre at various fuel stations, while NNPC Ltd.’s retail outlets sell at N617 since the removal of subsidy in May 2023 due to high crude cost and high foreign exchange rate.

The after effect of the removal and high cost of fuel brought untold hardship and suffering on Nigerians due to inflation, increase in goods and services, among others. (NAN)

Continue Reading

Read Our ePaper

Top Stories

Afreximbank Afreximbank
Business News12 hours ago

Afreximbank Closes $282 million India-focused Club Deal

ShareBy Tony Obiechina, Abuja  The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal...

NEWS12 hours ago

Tinubu Mourns Ex-Minister, Ogbonnaya Onu

SharePresident Bola Tinubu has extended his deepest condolences to the Onu family over the passing of Chief Ogbonnaya Onu, a...

Business News13 hours ago

Geregu Power Earns N50.4bn From Electricity Sales, Capacity Charges 

ShareBy Tony Obiechina, Abuja  Geregu Power Plc has generated N50.4bn on electricity sales and capacity charges to Nigerians in the...

Foreign News18 hours ago

U.S. not Expecting to be Drawn into War but Predicts Attack by Iran Against Israel

Share The United States expects an attack by Iran against Israel but one that would not be big enough to...

NEWS18 hours ago

Akpabio Mourns Ex-minister, Ogbonnaya Onu

Share Senate President Godswill Akpabio has condoled with the family of Dr Ogbonnaya Onu, the first civilian Governor of Abia,...

Foreign News18 hours ago

Russia Sends Air Defence System, Soldiers to Niger

Share Russia has sent an air defence system and 100 military trainers to Niger Republic in West Africa. Military personnel from...

NEWS18 hours ago

Minister Commiserates with Ex-Gov of Kogi over Son’s Death

Share The Minister of Steel Development, Prince Shuaibu Audu, has commiserated with a former governor of Kogi State, Ibrahim Idris,...

NEWS18 hours ago

Recent Deaths in Movies Industry has Robbed the Nation of Legendary Filmmakers,  says Ali Nuhu

ShareThe Managing Director of the Nigerian Film Corporation (NFC), Mr Ali Nuhu , has said that recent deaths in the movie industry...

NEWS19 hours ago

Dosumu Market: 6 Buildings Collapsed, 16 others Impacted by Fire – LASEMA

Share The Lagos State Emergency Management Agency (LASEMA) said the fire that engulfed Dosunmu Market on Lagos Island led to...

Metro19 hours ago

Home Owners Protest Against Alleged Exploitation by Estate Developer

ShareResidents of Urban PrimeTwo Estate at Ogonbo road, Abraham Adesanya in Ajah, Lagos, have staged a peaceful protest against alleged...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc