Oil & Gas
NNPCL Has Spent $1bn on AKK Gas Pipeline Project – Kyari
The Nigerian National Petroleum Company Limited (NNPC Ltd) says it has so far spent over 1.1 billion dollars on the ongoing construction of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and Station project from its cash-flow.
The NNPC Limited GCEO, Malam Mele Kyari said this on Monday while touring some of its project sites in Kogi, with newsmen and other stakeholders.
Kyari was accompanied by some top officials of the NNPC Limited and Oilserv Limited, (Pipelines and Facilities), the contractor of the project.
Kyari said the company would continue to fund the massive project which it was delivering in phases and has been active even though it did not have third party finance for the project.
“So far, NNPC Ltd has funded over 1.1billion dollars on the project and to date none of the project activities is abandoned as reported and we reassure all stakeholders that we have a line of sight to project delivery on schedule.
“NNPC Limited remains highly committed towards the delivery of strategic National infrastructure projects through responsive project delivery, active collaboration with government security agencies and communities as well as deployment of technology for delivering the project.
“This is is one of the most massive projects of proportion value to our country for economic growth. It is a must-deliver project and we have continued to fund in spite of not having third party finance support, we will deliver this project.
“We do not owe a dollar to our contractors, there are over 30 sites that are active today in this project, we are very hopeful and optimistic to deliver this project,” he assured.
The GCEO decried the fact that due to insecurity, it had lost some site workers thereby expressed sadness over thier demise and consoled their families whom he said the company shared in their grief.
He said 70 per cent of the welding work had been completed adding that once welding was completed, it could actually flow gas through the pipeline.
He said on completion the pipeline would deliver two billon cubic feet of gas, powering industries, powering power plants and creating gas based industries.
He said the entire welding work would be completed by the third quarter of 2023 then it would actually energise the pipeline.
Kyari further said that the gas pipeline was projected to support power plants with a total of 3,645 Mega Watts, adding that it would soon begin constrution of Abuja- Kaduna power plants in ernest.
Earlier, Mr Steve Nnorom, Project Manager, Oilserv Ltd explained that there were three schematic of the pipeline and station installations which included Brovo, Chalie and Alpha spread segment, that showed progress of the project.
He said they were currently doing full auto welding, completed 73 per cent of its mainland welding works and had done 222 kilo metres remaining 27 kilo metres of welding work to complete.
“We are crossing rivers, railway, existing pipelines. We have other sites where various work activities are ongoing, our target is that concurrently all works will be going on at different spread,” he said
Nnorom, while noting that the project has been active and fully financed said that it has purely 100 per cent Nigerian workers. (NAN)
Oil & Gas
Why we are Recording Increased Oil Production – Edun
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)
Oil & Gas
Dangote Petroleum Refinery Begins Production of Diesel, Aviation Fuel – Official
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)
Oil & Gas
Refinery Rehab: Don’t Expect Immediate PMS Price Crash, Experts Tell Nigerians
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)