Breaking: NUPENG, PENGASSAN write Tinubu, seek probe of alleged IOCs against Dangote Refinery

The Nigeria Union of Petroleum and Natural Gas Workers, NUPENG and its Petroleum and Natural and Senior Staff Association, PENGASSAN, have written to President Bola Tinubu, demanding a high powered investigation into the allegation that the International Oil Companies, IOCs, are plotting to undermine and destabilize the Dangote Refinery and Petrochemicals. In a written through the Chief of Staff to the President, Mr Femi Gbajabiamila, dated July 1, 2024, the oil workers demanded among others, that the findings of such investigation must be made public to ensure transparency and maintain public trust. The letter signed by the NUPENG’s General Secretary, Afolabi Olawale and his PENGASSAN’s counterpart, Lumumba Okugbawa, read “The leadership and members of our great Union and Association profoundly appreciate your commitment and dedication to restoring the economic growth and prosperity of our dear Nation and we are also fuly mobilized and committed to supporting al your laudable thoughts and hard decisions towards these lofty goals. “Unfortunately, we are deeply concerned and shocked by the recent unusual allegations by the Dangote Refinery and Petrochemicals Company of a deliberate plot by some International Oil Companies (IOCs) to frustrate their business efforts and continued existence. “These sabotaging actions reportedly include denying the Refinery crude oil supply and artificially inflating market prices of the crude oil to the Company, thereby forcing Dangote Refinery and Petrochemicals Company to source crude oil from other countries, even as far as the United States of America with attendant high operating costs and logistics. “The Dangote Refinery is not only a critical National asset but also a beacon of hope for our energy security, economic growth, and employment opportunities. The economic benefits of a Local Refinery with such capacity as the Dangote’s to Nigeria, can never be overstated. “This is why for several decades now, NUPENG and PENGASSAN have campaigned vigorously that Nigeria should make ti a pre-requisite condition that Companies that want to benefit from JVC arrangements with Nigeria, to set up a Refinery/Petrochemical Company ni Nigeria. “Unfortunately, no sucessive Governments summoned enough political and patriotic courage to take that logical and pragmatic policy direction. The survival of companies that have braved ti up and invested hugely ni refining crude ni Nigeria thus saving our Nation from wasteful product importations that profit other countries and cost us forex, should be of great interest to us as a Nation because of the enormous economic benefits involved. “Our demands are as follows: Immediate Investigation: The Federal Government should set up an independent panel ot investigate the claims of sabotage by some International Oli Companies. This investigation should be compreensive and transparent, ensuring that al parties involved are held accountable. “Public Disclosure: The findings of this investigation must be made public ot ensure transparency and maintain public trust. Nigerians deserve to know the truth about the actions of these International Oil Companies and the impact on our National interests. “Legal Action: Should the allegations be substantiated, we expect the Government to take decisive legal action against the entities involved. This must include sanctions, penalties, and any other measures necessary to deter future acts of economic sabotage. “Support for Dangote Refinery: The Government should provide al necessary support to ensure the uninterrupted commencement and operation of the Dangote Refinery. This includes ensuring security and stability around the Refinery’s operations. “Your Excellency Sir, we trust your courage and unwavering commitment to the Nigerian project and we believe that the Presidency wil take decisive action to safeguard the Dangote Refinery and ensure its successful operation for the benefit of our Nation.

NNPCL, NCDMB Sign Cost Reduction, Efficiency Pact With IOCs

The Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Content Development Monitoring Board have signed a Memorandum of Understanding with major oil companies to reduce cost, drive efficiency in Nigeria’s oil and gas industry. The agreement, which was signed on Monday, would enable the implementation of the industry framework which was developed by the IJC to achieve an optimal contracting cycle of not more than 180 working days. Key benefits of the framework in the MoU include a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively compared with the current best effort performance of 327, 333, and 185 working days respectively. The framework is in line with the Nigerian Upstream Cost Optimization Program (NUCOP) and in consonance with President Bola Tinubu’s directive for NNPC Ltd and NCDMB to engage the industry with the objective of improving the performance of the petroleum industry. An optimized contracting cycle is expected to improve the ease of doing business, reduce cost, and drive efficiency which will eventually translate to production growth, increased revenues, and ultimately improved profitability. The MOU is one of the many collaborative solutions between the major industry players that will contribute significantly to the double-digit economic growth rate agenda of the Government and generate tremendous value for all the stakeholders including the investors, the companies, the community, and the country at large. The move is in line with one of the key mandates of NNPC Ltd as the National Energy Company in article 53 (7) of the Petroleum Industry Act (PIA) to conduct its affairs on a commercial basis in a profitable and efficient manner. The mandate for efficiency requires that NNPC Ltd is committed to working with its partners in ensuring key processes, procedures, and timelines that drive major business activities such as contracting are structured in a manner that engenders efficiency and drives profitability. NNPC Vice President, Upstream, Oritsemeyiwa Eyesan, signed on behalf of the National Oil Company while the Executive Secretary NCDMB, Simbi Wabote signed on behalf of the Board.