Connect with us

Oil & Gas

NNPC, US Trade Agency to Sign $1.16m Power Generation Deal

Published

on

Share

By Tony Obiechina, Abuja

The Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) have concluded arrangement to sign a 1.16 million dollar grant as part funding for the NNPC-Abuja Independent Power Project (IPP).

Acting Spokesman for the Corporation, Mr Samson Makoji disclosed this on Thursday in a statement issued in Abuja.

Makoji stated that the arrangement was the outcome of a business meeting between the Management of NNPC and the USTDA at the NNPC Towers.

He said that both parties agreed to close out the deal on Dec. 1, adding that the IPP was modeled to generate 1,350 megawatts of electricity to alleviate the power challenge in the country.

The spokesman quoted the Group Managing Director of the NNPC, Malam Mele Kyari, as saying that the plan by the corporation to build the 1,350mw power plant in Abuja was part of the national strategy to monetize the abundant natural gas resources in the country.

He added that the USDTA grant was to complement the ongoing feed project in order to make the Abuja IPP initiative more bankable for strategic investors’ participation.

“As a state-owned oil company and enabler organisation, we know that our investment in the Abuja 1,350mw IPP will increase energy supply level with great impact on the nation’s economy.

“Therefore, the USTDA grant is timely to make it a bankable project that would attract foreign direct investment into the country,” he said.

The GMD assured the U.S. team that every money given as grant to the corporation would be fully utilised and accounted for.

“This company is focused on making our systems and processes transparent and accountable and that is why we are engaging world class institutions with good track record in execution of our projects,” the GMD explained.

He called on the USTDA to look beyond feasibility studies to actual delivery of the project, stressing that the power plant project has a lot of viable investment opportunities.

In her remark, the Country Manager, Power Africa and the leader of the USTDA delegation, Jullian Foerster, stated that her organisation was determined to work with the corporation to sign off on the grant not later than Dec.1.

She said that USTDA was open to other business opportunities in the coming year, 2020, noting that NNPC’s strategic role as a key player in the oil and gas industry made the U.S. Agency to “jump at the opportunity to work on this deal” of providing support in the form of a grant. (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

NEWS49 mins ago

Insecurity: Govt to Begins Boundary Demarcation Between Benue, Cameroon, others in April 

ShareFrom Attah Ede Makurdi The federal government is to commence the boundary demarcation between Benue, Taraba, Cameroon, Ebonyi and Nasarawa...

NEWS52 mins ago

Gov Alia  Swears in BSIEC Chairman, other Commissioners

ShareFrom Attah Ede Makurdi  The Benue State governor, Rev. Fr. Hyacinth Alia, on Thursday swore in the newly-appointed chairman of...

NEWS55 mins ago

Gov Alia shuns APC National Leadership  Peace moves in Benue, Inaugurates parallel State Secretariat, Excos 

ShareFrom Attah Ede Makurdi The crisis rocking the ruling All Progressives Congress,APC in Benue State, on Thursday took another dimension...

Metro1 hour ago

Wike Approves Deployment of FCTA’s Pioneer Perm. Secs

ShareThe Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, has approved the deployment of the 10 pioneer Permanent...

NEWS1 hour ago

MTN, Tier-1 Banks’ Stocks Lift NGX Gains by N157bn

ShareRenewed interest in MTN Nigeria, alongside sustained interest in Tier-one banks’ stocks on Thursday further raised the equity market higher...

NEWS1 hour ago

Naira Falls Against Dollar by 0.7%

ShareThe Naira experienced a slight depreciation at the official market, trading at N1,309.39 to a dollar on Thursday. Data from...

dailyasset-greetings dailyasset-greetings
BUSINESS1 hour ago

CBN Unveils New Minimum Capital Requirements For Banks

ShareGives Them 24 months To Recapitalise By Tony Obiechina, Abuja   Days after urging Nigerian banks to expedite action on the...

NEWS1 hour ago

ShareNAFDAC Intercepts Psychoactive Drugs, Bursts Beverage Factories in Southeast The National Agency for Food, Drugs Administration and Control (NAFDAC) has...

NEWS18 hours ago

FCT HOS: Why President Tinubu Extends Atang’s Tenure By 6 Months

ShareBy Laide Akinboade, AbujaPresident Bola Ahmed Tinubu, has approved the extension of Atang Udo Samuel, as the the Head of...

NEWS18 hours ago

FGGC Benin Emerges Winner of 2023 National Senior Secondary Schools’ Debate

ShareBy Tony Obiechina, AbujaThe Federal Government Girls College, Benin has emerged overall winner of the 2023 National Senior Secondary Schools’...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc