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NNPC Moves To Check Fuel Scarcity

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In a bid to end the current fuel scarcity in some parts of
the country, the Nigerian National Petroleum Corporation (NNPC) said it had
increased daily loading of petroleum products by trucking following the damage
of system 2B distribution pipeline at Arepo in Ogun State.

Attributing the
recent scarcity of petrol experienced in major parts of the south from Lagos to
IIorin and beyond to this damage, Mr Fidel Pepple, NNPC’s spokesman said in a statement
that the move was part of measures to end the scarcity witnessed in these
areas.

Pepple said daily supply of products to marketers have
increased as follows: folawiyo tank farm from 150 to 250 trucks; MRS from 100
to 200 trucks; Capital Oil increased to 300 trucks; AITECO and NIPCO 100 and 70
trucks respectively.

“The current scarcity was due to shut down of system 2B, a
major pipeline that evacuates between 9 to 11 million litres of fuel from Lagos
to Ibandan, Ilorin, and the North due to vandalism by oil thieves some weeks
ago”, he noted.

Consequent upon this, the corporation had to resort to
products distribution by trucking he explained and assured that “NNPC has
stepped up fuel supply to marketers and distributors for effective and
efficient supply of fuel”.

He also said just as bridging to the North had been beefed
up, fuel delivery and supply to Port Harcourt, Aba and Calabar depots were also
being augmented.

On the vandalism of Arepo pipeline where three NNPC
engineers were also killed, the corporation’s spokesman said NNPC was
collaborating with security agencies to repair the pipeline so as to restore
normal fuel supply to the areas affected.

According to him the safety and security of oil pipelines
were the collective efforts of all citizens and enjoined Nigerians to be on the
alert and contribute to make oil installations
in the country safe and secure.

In another development the Pipelines and Products Marketing
Company (PPMC) has increased petroleum products supply to private depots to ease
distribution challenges in the country.

Mr Nasir Imodagbe, Manager, Public Affairs and External
Relations disclosed this in an interview in Lagos recently.

He said that the PPMC had also increased the allocation of
five private depots from 100 trucks to 300 trucks daily.

The manager said that two new private depots had also been
engaged to distribute 200 to 300 trucks of petrol to coastal areas such as Port
Harcourt and Aba, as well as to the Northern part of the country.

“We have increased petrol supply to Capital Oil and Gas
Industries Ltd, MRS Oil and Folawiyo Energy from 100 trucks a day to 300 trucks
to ease distribution challenges.

“ We also engaged new private depots to commence
distribution of about 250 to 300 trucks of petrol on daily bases to the coastal
areas,’’ he said.

Imodagbe, who assured that the country had sufficient
petroleum products, however, identified vandalism of the system 2B network at
Arepo as the major problem inhibiting distribution of the products.

“We have sufficient products, but we are having distribution
challenges in getting the products to other states and final destination.

“Another constraint facing the distribution is that it is
only NNPC that is supplying petrol to the market, no marketer is importing and
supplying to the market,’’ he said.

The spokeman said “for now, nobody can go into the
vandalised pipeline area to commence repairs without adequate security and
assurance.

“We have to beef up security and assured workers before
anything can be done in the place.

“In the interim, we have provided adequate measures to see
that petrol flood all the states without any delay”, he said.

 

Vivian-Peace Nwinaene

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Oil & Energy

BUA Group, A’Ibom Sign MoU For Refinery’s Access Road

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Bua Group has signed a memorandum of understanding, (MoU), with Akwa Ibom State Government, and the host communities in Ibeno Local Government Area, for the construction of access road to the proposed Bua Refinery and Petrochemical plant site in Ibeno, last week.
Akwa Ibom State Commissioner for Power and Petroleum Development, Dr. John Etim, who presided over the signing of the MoU, applauded BUA for their commitment to the project, prompt documentation and the preparation of the site towards the construction of the refinery.
Etim said that the refinery project will bridge the gap between host communities and Akwa Ibom State, thereby bringing about more developments in the oil and gas sector of the State.
The Commissioner called on all parties concerned to be committed to the terms of agreement and to ensure that peace dominates their relationship, while appealing to the host communities to protect the facilities which is now in their custody
“The refinery and petrochemical project is in line with the Governor’s vision to industrialise the State, develop local capacity in key industries where value can be added and raw materials sourced locally.”
Speaking shortly after the MoU signing, the Chairman of Ibeno local government, Williams Mkpa, expressed delight over the development, describing it as a giant stride in the industrialisation vision of the Akwa Ibom State Government.
The paramount ruler of the area, Owong Effiong Archianga, assured the company of his people’s unalloyed support and cooperation to see to the actualisation of the project.

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Oil & Energy

CSO Urges Oil Communities To Challenge PIA In Court

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A Civil Society Organisation, Policy Alert, has faulted President Muhammadu Buhari’s signing of the Petroleum Industry Act 2021, urging communities to test the provisions of the Act before the courts.
President Buhari had signed the erstwhile Petroleum Industry Bill, PIB, into law last Monday amidst protests from community groups and many other stakeholders that the Bill do not adequately cover the rights and interests of the host communities.
In a statement signed by its Communications and Stakeholders Engagement Officer, Mrs. Nneka Luke-Ndumere, Policy Alert, which is working for economic and ecological justice, described the presidential assent to the PIB as “grossly insensitive and problematic.
“It is sad that the bill has been assented to in the most controversial manner despite its many obvious flaws and its rejection by many stakeholders,” the statement read.
It added: “For example, the controversial provision for a direct payment of 30 percent profit oil and profit gas to the Frontier Exploration Fund potentially shortchanges the oil producing states and local governments of some of its thirteen percent derivation as it bypasses the requirement in section 162 (2) of the 1999 Constitution (as amended) which provides that all revenues be channeled through the federation account.
“This is most unfair, viewed against the ceding of only three percent of previous years’ operating expenses to the Host Communities Development Trust Fund and the punitive provision to charge costs of any damage to facilities against the community’s Fund, among other obnoxious provisions.
“That Mr. President has gone ahead to give assent to these vexing provisions only reinforces the politics of exclusion and expropriation that has for long characterised the relationship between the Nigerian state and the oil producing communities.
“We are also concerned that the host communities’ component of the legislation flies in the face of one of its stated objectives to address tensions between host communities and companies as it has all the ingredients for escalating rather than abating such conflicts.
“At a time when fossil fuel investments are being deprioritised elsewhere as a result of the global energy transition, it is unfortunate that this Act failed to provide a bridge between the current era of fossil fuel dependency and the low-carbon energy future that Nigeria aspires to within the framework of government’s much vaunted commitments under the Paris Agreement.”
The statement also said: “Granted, the new legal framework introduces some predictability and clarity to the governance and fiscal arrangements in the oil and gas industry. We are also not oblivious to certain clauses that respond to some of our earlier demands, such as those providing that the Board of Trustees of the Host Communities Development Trust will now be determined in consultation with the host communities, with  membership drawn from community members. But that is just as far as it goes.
“As a tool for improved benefit sharing to host communities, the Act falls flat on its face. It actually ridicules the exertions of the host communities and advocacy groups that have clamoured over the years for a law that yields some space for participation, direct socio-economic benefits and environmental remediation for oil-rich communities.
“The theatre of action will now have to move to the communities and the courts of law. As implementation of the Act gets underway over the next 12 months, we urge host communities and civil society groups to begin to seek interpretation of some of its more controversial provisions before the courts.”

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Kyari Tasks Greenfield Refinery On Fuel Importation

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The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has charged members of the Board of the NNPC Greenfield Refinery Limited (NGRL), to explore all available options to bring an end to the current challenge of petroleum products importation.
Mallam Kyari gave the charge Thursday while inaugurating the Board of the newly incorporated subsidiary of the Corporation, NNPC Greenfield Refinery Limited (NGRL), at the NNPC Towers, Abuja.
The NNPC Greenfield Refinery Limited is a subsidiary of the Corporation set up in December 2020 with a mandate to oversee the establishment and operation of new refineries.
The GMD, who is also the Chairman of the NGRL Board, challenged members of the Board to focus on profitability in order to remain afloat and avoid liquidation.
“As a business, this is a big opportunity for us and this company’s balance sheet must change positively. Going forward, with the Petroleum Industry Act (PIA), I can tell you that if you continue to post negative for three years, you are out. So, there is really no excuse”, Mallam Kyari stated.
He urged the Board and Management Team of the new company to set up a proper structure with the required skills, technology and financing to drive the company’s operations, adding that he was optimistic that the company would be able to achieve its mandate.
“Our company must grow and we can’t do well except we are able to process our production whether it is the liquid or gas. If we don’t monetise it then we have done nothing. This is really a new chapter and we are committed to making it work,” he said.
The NNPC helmsman stated that all the Corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy security for the country.
In his remarks, the Alternate Chairman of the Board and Group Executive Director, Refinery and Petrochemicals, Engr. Mustapha Yakubu, declared that the operations of the company would be guided by the principles of cost effectiveness in line with the new Petroleum Industry Act (PIA), noting that profitability would be the key focus.
Speaking in similar vein, the Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Engr. Bege Talson, disclosed that the Division was working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000barrels per stream day (bpsd).

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