Fuel Scarcity: Avoid Panic Buying, NNPCL Tells Nigerians
The Nigeria National Petroleum Corporation (NNPC) Limited has moved to quell concerns of an impending fuel scarcity in Nigeria by assuring the public that it currently holds a 30-day supply of fuel. The company also urged Nigerians to refrain from engaging in panic buying, emphasizing that the recent sporadic queues observed in some parts of Lagos and Abuja are due to specific logistical challenges that have already been addressed. In a statement posted on its official social media handle, NNPC Retail Limited acknowledged the appearance of fuel queues in certain regions, which were primarily attributed to a temporary reduction in depot loadout in Apapa, Lagos, over a short period. However, the company is keen to stress that there is no need for alarm as the situation is under control. The statement from NNPC Retail Management stated, “We assure all Nigerians that there is ample supply with sufficiency of at least 30 days. Motorists are advised to desist from panic buying as distribution will normalize over the next couple of days.” The statement became necessary to prevent unwarranted panic buying and ease the concerns of the public regarding fuel availability. With the assurance of a 30-day fuel supply and ongoing efforts to address the supply chain challenges, the company said it is committed to maintaining a stable and reliable fuel distribution system across the nation.
Court To Decide Fate Of Ex-NNPC GMD, Andrew Yakubu’s Seized $9.8m November 1
The former Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, will learn his fate on November 1 regarding a lawsuit seeking the release of his $9.8 million cash seized by the Economic and Financial Crimes Commission (EFCC) from his Kaduna residence in 2017. Yakubu filed a suit against the EFCC, Central Bank of Nigeria, and a commercial bank, alleging their refusal to release the money after an Abuja high court had discharged and acquitted him of money laundering charges brought against him by the agency. Justice Inyang Eden Ekwo has scheduled November 1 to deliver a judgment on the money seizure case after Monday’s hearing. In March 2022, a Federal High Court in Abuja quashed the money laundering charges against Yakubu, which were brought after the EFCC discovered $9,772,800 and £74,000 in an apartment linked to him in 2017. Yakubu’s lawyer has returned to court, claiming that the monies have not been released as directed by the court, and is seeking an order for their release or, alternatively, for the money to be deposited with the Federal High Court Registrar pending the suit’s determination. The EFCC, represented by Faruk Abdullah, objected to the application, citing appeals filed in the Court of Appeal in Abuja against the judgment of the Federal High Court. Justice Ekwo, after hearing arguments from all parties involved, set November 1 as the date for a verdict on compelling the EFCC to release the money.
No Plan To Increase Petrol Pump Price –NNPCL
The Nigeria National Petroleum Company Limited (NNPCL) has said it has no plans of increasing the pump price of petrol. In a statement posted on its verified X handle, and signed by the company’s Retail Management, it urged Nigerians to ignore speculations about a possible increase. NNPC Limited GCEO, Mele Kyari, had repeatedly stressed that the company would not increase the price of petrol from its present N617 per litre. “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated. “Please buy the best-quality products at the most affordable prices at our NNPC Retail Stations nationwide,” the statement read.
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.
NNPCL Retail Records N18.4bn Profit
NNPC Retail made N18.4 billion in the first quarter of 2023, after acquiring OVH Energy in 2022, Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) has said. Kyari, who said this on Friday when he addressed the House of Representatives Ad-Hoc Committee on the OVH Acquisition by the company, added that since the acquisition of the OVH, NNPCL’s profit margin has grown. In October 2022, NNPC Limited acquired Oando retail brand, OVH Energy Marketing. According to the NNPCL GCEO, the profit would not have been possible if the company had not acquired the retail company. “NNPCL is a creation of the federation with over 200 million Nigerians as shareholders. The Petroleum Industry Act (PIA) also grants us the mandate to guarantee national energy security. On this basis, it is duty-bound on us to increase our market share. “Allegations against the acquisition of OVH are painful because they are not true. We believe that the only way we can grow our market share is by expanding our business. Since the acquisition of OVH, the profit margin of NNPC Retail has jumped. “In every merger and acquisition, there is a transition period. We are rising to those challenges brought about by the transition. We are also ensuring that none of our staff at NNPC Retail is victimized. Staff are placed where they are best fit towards optimum performance.”
We’re not opposed to Agip Oil share sales to Oando -NNPCL
The Nigerian National Petroleum Company Limited (NNPCL) has said that it was never opposed to the sale of the shares of Agip Oil Company to Oando Plc. In a statement signed by the Chief Corporate Communications Officer of the company, Garba Deen Muhammad said the letter to Agip Oil did not indicate it was opposed to the deal. In a letter to the Managing Director of Nigerian Agip Oil Company Ltd, dated September 4, and signed by Managing Director of NNPC E&P Limited, Ali Muhammed Zarah, NNPCL said if the deal goes through, it would have far-reaching contractual/legal implications in relation to the joint Operating Agreement dated July 1991 governing the operations of the NAOC/NEPL/OOL Joint venture. NNPCL said in the letter that its consent as a member of the joint venture member operating ENI’s onshore asset, was not obtained before the planned divestment to Oando. This it said was against contract rules governing the joint venture operation, and could affect the deal. The statement reads, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct. “NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter. “NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.” Oil major Eni had in a press release saying that it had signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.
NNPCL raises concerns over Eni Sale
Nigeria National Petroleum Corporation Limited (NNPCL) has raised reservations about Eni SpA’s sale of a subsidiary to local producer Oando Plc which could complicate the transaction. The Italian firm announced on September 4 an agreement to sell to Oando one of its units that has a 20 per cent operating stake in four onshore oil and gas blocks. The deal is the latest in a string of asset sales concluded by international producers in onshore and shallow-water areas of the Niger Delta. The failure to obtain the NNPCL’s prior authorization for the sale “constitutes a grave breach” of the contract governing the joint venture that holds the four permits, the state-owned company said in a letter to the Eni subsidiary, which was dated September 4 and confirmed by Bloomberg. The NNPCL “reserves its rights in relation to the said breach” including an entitlement to invalidate the agreement, the letter said. The letter is “not an objection to the transaction,” NNPCL spokesman Garba Deen Muhammad said by text message on Wednesday. It is “only drawing attention to certain important clauses” in the joint venture agreement that “might have been overlooked in error,” he said. “Adherence to those clauses will protect the transaction now and in the future.” Oando already had a 20 per cent interest in the licenses before the deal was agreed, while the NNPC holds a 60 per cent stake. An Oando spokeswoman declined to comment on the letter because it was addressed to Eni. She said the companies had agreed to the sale of shares in a subsidiary rather than the assignment of an interest in the joint venture. Eni denied committing any breach of the joint venture agreement in selling the subsidiary to Oando. While NNPC has pre-emption rights, Eni had no obligation to inform the state firm in advance of the announcement, the Rome-based company said in a statement Thursday. “Preemption procedures and other consents will be duly and carefully followed,” it said. Oando said in a statement on September 4 that completion of the transaction is subject to ministerial consent and other regulatory approvals. The Nigerian Upstream Petroleum Regulatory Commission and a spokesman for President Bola Tinubu didn’t immediately respond to requests for comment. Oil majors have been offloading onshore and shallow water blocks — located in a challenging operating environment where infrastructure damage from crude theft is a regular occurrence — to domestic producers for more than a decade. The trend is accelerating as international firms focus on deep-water projects in the West African country. Shell Plc and Exxon Mobil Corp. are also working to finalize sales that stalled under former President Muhammadu Buhari, who was succeeded by Tinubu in late May. A lawsuit over alleged pollution in the Delta is holding up Shell’s deal, while the NNPCL has opposed Exxon’s agreement with Seplat Energy Plc and asserted a right to acquire the permits itself.
HEDA writes NNPCL, seeks clarity on $3bn naira stabilisation loan
The Human and Environmental Development Agenda (HEDA Resource Centre) has initiated a formal information request to the Nigerian National Petroleum Corporation Limited (NNPCL). According to Chairman of HEDA Resource Centre, Olanrewaju Suraju, the request pertains to the recent acquisition of a $3 billion emergency crude oil repayment loan. HEDA Resource Centre is a preeminent non-profit organization devoted to championing transparency, accountability, and robust governance in Nigeria, He said, “This action is aligned with the provisions of the Freedom of Information (FoI) Act, 2011, underscoring HEDA’s unwavering dedication to ensuring judicious resource utilization and safeguarding the nation’s interests.” The obtained loan, secured from the African Export-Import Bank (AFRIEXIM), is intended to fortify the Naira and reinforce the foreign exchange market. Concurrently, HEDA acknowledges the potential merits of this endeavor while simultaneously expressing apprehensions about its possible implications for Nigeria’s economy, natural resources, and future prospects. Furthermore, the civil society group is keen to understand the specific oil grades or categories being utilized for the negotiation of the loan; the exchange rate to dollar being employed in the terms of the agreement for the crude oil repayment loan; and providing the quantity of oil that is being sold or used as collateral for this particular transaction. Manifesting its vigilant oversight role in managing public resources, HEDA through its Freedom of Information has presented a series of pertinent inquiries to NNPC, designed to elucidate the ramifications of the $3 billion crude oil repayment loan. The organization’s overarching objective is to acquire a comprehensive comprehension of the motivation behind the deal and its plausible effects on Nigeria’s economic landscape. “As champions of accountability, we firmly believe that these inquiries will serve to illuminate the rationale underpinning the recent loan agreement, along with its potential ramifications for our nation’s economic well-being and overall prosperity,”
Our gas transportation projects will bring affordable, cleaner energy- NNPCL
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) has emphasized the company’s commitment to vigorously pursue its gas development and gas transportation projects. This declaration was made on Monday during a keynote address at the Society of Petroleum Engineers’ Annual International Conference and Exhibition, which centers around the theme “Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa.” Represented by the Executive Vice President, Upstream, NNPCL, Mr. Adokiye Tombomieye, the CEO expressed that the gas projects will significantly enhance energy accessibility, affordability, and sustainability for Nigerians. Nigeria holds vast natural gas reserves, totaling about 209.5 trillion cubic feet, with the potential for up to 600 trillion cubic feet. This abundant resource is expected to drive a cleaner and more affordable energy vision. While acknowledging alternative energy sources like solar and wind, the CEO pointed out their technological limitations, high cost, and inability to meet the robust energy demands of industries, cities, and remote areas. Gas, on the other hand, holds the potential to address these challenges effectively. The CEO appreciated the Society of Petroleum Engineers for consistently leading the way in assembling pivotal industry professionals. However, he highlighted the trilemma situation faced by African countries, striving to balance energy accessibility, affordability, and sustainability while aligning with the United Nations Sustainable Development Goals. He emphasized that achieving this delicate balance requires political will, technological innovation, effective market mechanisms, well-crafted policy interventions, and capacity building. A multi-stakeholder approach, involving government, the private sector, civil society, host communities, and the public, will be pivotal in achieving these goals. The Nigerian energy industry has witnessed strategic transformation in recent years, leading to viable industry legislation with the Petroleum Industry Act (PIA) and a long-term gas-centered energy transition plan. Additionally, the PIA has enabled NNPC Limited to venture into the renewable energy business, while the Nigerian Climate Act has mainstreamed climate change actions for sustainable development. The proactive measures undertaken by the Nigerian energy sector hold the promise of bringing affordable, cleaner energy to the nation while ensuring a greener and sustainable future.
Electronic Cars: NNPCL to install charging ports at gas stations nationwide
The Nigerian National Petroleum Company Limited (NNPCL) has said it plans to install charging ports at its gas stations around the country for the charging of electric vehicles. Managing Director of NNPC New Energy Ltd, Kanayochukwu Odoe who disclosed this in the Company’s quarterly publication, stated that the business will invest in electric vehicles to suit local demand. Commenting on the plans of the oil firm in promoting the use of electric vehicles in Nigeria, Odoe said: “There are two things we are looking at. There is a start-up from Maiduguri that is into renewables and electric vehicles. It’s a Nigerian start-up. “We are currently discussing with them to expand their capacity to meet local demand in Nigeria. It’s something I believe we should invest in not just because it’s our own, but also because they are doing something that hasn’t been done before, at least, in this part of the world. So, when we invest in the company, we can have a foothold in the electric vehicles market. “The next part will be how to provide access to charging ports for the electric vehicles. We have NNPC Retail stations scattered around Nigeria, we are currently having a discussion on how to install charging points in the stations to serve electric vehicles. These are some of the things we are doing in that area.” Odoe said it was looking at embarking on solar projects to supply power to the masses, especially in areas where the services of power distribution companies were in short supply. “We are looking particularly at disadvantaged areas where the services of the electricity distribution companies are not present. We want to bridge that gap. “Now, when we supply solar power to those disadvantaged areas, we will charge electricity bills. That’s something different that we are bringing on board that hasn’t been done before. “On the second aspect of the policy, we are now charting a proper cause to streamline ways to meet our global obligations as stipulated in the treaties and conventions that the government has committed to,” he stated.