Oil & Energy
Lukman Reads Riot Act To NNPC…Threatens Sanctions
The Minister of Petroleum Resources, Dr Rilwanu Lukman, has ordered the management of the Nigerian National Petroleum Corporation (NNPC), to bridge the yawning gap in the supply of petroleum products to filling stations, and thus, make the products available to Nigerians or face serious sanctions.
The petroleum minister, who gave the order last Thursday at a crucial meeting with top management of the corporation in Abuja, insisted that the Federal Government has become increasingly embarrassed by the deteriorating situation of petroleum products supply and distribution across the country.
Lukman stated that it was unacceptable to the government, that majority of Nigerians queue at filling stations for days in order to get petroleum products, especially fuel and kerosene, saying that the anomaly in the products supply chain must be rectified within seven days.
He directed the management of NNPC to ensure that enough petroleum products were made available to filling stations to enable them dispense the products to their immediate customers.
The minister, who looked livid at the meeting, also directed the management of Pipeline Products Marketing Company (PPMC) to immediately swing into action and ensure that all trucks with products’ allocations were loaded without delay, while making sure that all pipelines for products distribution to depots across the country were properly supplied with required products.
The former president of Organisation of Petroleum Exporting Countries (OPEC) and presidential adviser also directed the Petroleum Products Prices Regulatory Agency (PPPRA) to ensure the tightening of all surveillance activities and compliance with all regulations relating to products supply, distribution and pricing, to mitigate any leakages in the system that may trigger price hike in any part of the country.
Lukman further assured that the co-operation and support of leadership of Independent Petroleum Marketers Association of Nigeria (IPMAN) has been elicited, adding that they have already keyed into the government’s position on the matter.
While warning that the grueling hardship faced by Nigerians as a result of the artificial scarcity of petroleum products must stop now, Lukman noted that government could not fold its arm and watch hapless Nigerians resign to a state of hopelessness, when they were supposed to live in hope of better days ahead in a thriving democracy.
The minister further warned the management of NNPC to brace up to the challenge, otherwise, the government may be forced “to take very drastic action, if necessary”, to get NNPC “to bring the situation under control”.
According to him, “we have directed the management of the NNPC to come together and deal with the situation immediately. It is now a very difficult situation for everybody in the country. It is already a very serious drain on the economy. It is also becoming an emergency situation and a very serious security issue.
“So, we have directed all agencies to swing into action, and remedy the situation within seven days otherwise something drastic would be done”, to the NNPC management “to restore normalcy to the products supply chain,” and recoup the confidence of Nigerians in the ability of government to deal with the situation, he added.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor