Chevron Confirms Protests In Escravos, Terminal, Jetties

*Affirms Collaboration With Host Communities Chevron Nigeria Limited (CNL) has confirmed ongoing protests at its terminal and Escravos Gas-To-Liquids jetties in Warri, Delta State. According to a statement by General Manager, Policy, Government and Public Affairs of Chevron, Esimaje Brikinn, the protesters are demanding for the renaming of the Warri Kingdom Onshore Host Community Development Trust (HCDT) and involvement in the nomination of additional persons for inclusion on the Board of Trustees (BOT) of the HCDT. In addition, they are requesting for mobilization of their community workers for the EGTL Turn Around Maintenance (TAM) activities. CNL confirms that at about 7am on November 21, 2023, boats conveying some protesters started patrolling along CNL’s Terminal and Escravos Gas-To-Liquids (EGTL) jetties and subsequently blocked access to Escravos Terminal (including EGTL jetty) in CNL’s Western area of operations. The company is operator of the joint venture between the Nigerian National Petroleum Company Limited (NNPCL). The CNL spokesman insisted that the company operates in strict compliance with applicable laws and regulations. He said, “CNL is committed to the operationalization of the HCDT in compliance with the Petroleum Industry Act, 2021 (PIA). CNL continues to collaborate with the relevant stakeholders, including Ugborodo community leaders and traditional rulers towards the operationalization of the HCDT. Also, CNL is committed to ensuring the participation of community workers for the EGTL TAM in line with the manpower mobilization plan.” He stated that CNL continues to engage with relevant stakeholders including the protesters, community leaders, traditional rulers, the BOT of the HCDT, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Delta State Government, and other critical stakeholders to ensure the peaceful vacation of the protesters from CNL’s Terminal and EGTL jetties. “CNL places the highest priority on and remains committed to the safety of people, the environment and its assets,” Esimaje noted.

NNPCL Working With NEITI, Others To Reconcile NEITI’s 2021 Report

The Nigerian National Petroleum Company Limited (NNPCL) will continue to collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and all relevant stakeholders in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile the financial records on alleged indebtedness to the Federation by both NNPC Limited and Federation Accounts Allocation Committee, FAAC. A statement signed by Chief Corporate Communications Officer NNPC Limited, Olufemi O. Soneye, on Monday night in Abuja, said, this comes on the heels of calls by a non-governmental organisation for a probe of several monies allegedly owed to the Federation by the national oil company. NNPC Ltd states that the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd. NNPC Ltd had severally explained that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value, a development that gave rise to an average of N400bn monthly subsidy bill, which subsequently put a strain on its revenues and finances. NNPC Ltd further stated “that subsidy bill accumulated to N3.736 trillion as of May 31st 2023.” The oil company said that the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the Federation. “Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount to $712million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the Federation account. “While the Federation owed NNPCL the sum of N 4.207 trillion as net indebtedness, the Company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties and Petroleum Profit taxes (PPT). “We would like to also use this opportunity to clarify that over the years, our relationship with NEITI has been very cordial, as seen in August 2020 when we became an EITI supporting company in 2020, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations. “Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September this year, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative,” it said.  The state oil company averred that it’s book remains open as it remain committed to delivering value to Nigerians with integrity and as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company.

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.

Port Harcourt refinery to resume operations by December -FG

*We’re committed to ending fuel importation, says Minister The Federal Government has reiterated its commitment to ending petroleum product importation soon, as efforts are being redoubled to restore the nation’s local refining capacity. According to a statement on hits X handle, Chief Corporate Communications Officer NNPC Ltd. Garba Deen Muhammad, said the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known during an inspection tour of the rehabilitation work progress at the Port Harcourt Refining Company (PHRC) Ltd. plant, in Port Harcourt on Friday. The Minister, who was in the company of his counterpart, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo; Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Gabriel T. Aduda, and the Group CEO, NNPC Ltd., Mr. Mele Kyari, said considering the level of progress recorded in the PHRC rehabilitation project, the plant will come back on stream by December this year. “Our objective in coming here today is to ensure that in the next few years, Nigeria stops fuel importation. From what we have seen here today, Port Harcourt Refinery will come on board by the end of the year, Warri will come on stream by the end of the first quarter of next year, and Kaduna will also come on board towards the end of next year. If you add that to the Dangote Refinery, we will be able to stop fuel importation, and Nigerians will enjoy the full benefits of deregulation,” the Minister assured. The Minister also said he was satisfied with the ongoing rehabilitation work at the Port Harcourt refinery, noting that once all the refineries are back on stream, Nigerians will enjoy a better supply of petroleum products, and foreign exchange will be domesticated, leading to an improved economy. Earlier in his remarks, the Group CEO, NNPC Ltd., Mr. Mele Kyari, said bringing back the refineries to their optimal levels is a national aspiration, and the Company remains focused on delivering that. “We are aware of our nation’s challenges in terms of fuel supply. But we are not here to give excuses. We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products,” Kyari stated. Also speaking, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo said: “We are here to go into the field. Yesterday was the era of subsidies. Today, we don’t have subsidies. Today, people are in a desperate situation to heave a sigh of relief; and see how to live. You all know that petrol is very vital to our economy. All hands must be on deck to ensure that the refineries are working,” he stated. During the visit, the two Ministers also participated in the Refineries’ Rehabilitation Steering Committee meeting and held a meeting with the refinery’s Engineering, Procurement & Construction (EPC) Contractors.