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Ribadu Wants FG To Fund Joint Ventures

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The Management and staff of Bua Group, Port Harcourt in a walk-out during their Health, Safety and Environment (HSE) week at Port Harcourt Port Complex, recently.

The Federal Government, has been enjoined to put in place a coherent solution that allows government to fund its obligations under the Joint Venture JV Contract if it intends to increase its revenue from the oil and gas industry.

Mallam Nuhu Ribadu, commenting on the recommendations of the report by the Petroleum Revenue Special Task Force at the Council Chamber of the Presidential Villa, Abuja over the weekend said funding government obligation will unlock additional capital from JV partners which will over time increase government’s revenue from the proportionate additional balance of crude oil revenues and royalties on the entire production and taxes on taxable income.

Ribadu urged the federal government to take action on issues of outstanding royalties, petroleum revenue tax and various penalties citing gas flaring penalties as an instance.

His words: “Mr. President, the companies that are operating in Nigeria today are making huge money from our country. A lot of them are going out and investing in other parts of the world. The least they can do is to give us our own entitlement. We have found out that so many of them, even simple thing as royalties, they don’t pay. We need the money. We need them here. We need them to continue to do business, but also let them look at us and give us what is certainly our own entitlement.”

He also, highlighted on the use of traders to sell our crude stressing that other than Congo, Nigeria was the only country the world over that sells its crude through traders otherwise called term traders.”

The report noted that some international oil traders who were not “on the approved master list of customers” had been sold crude oil. “Without a formal contract” so little could be obtained about the details of these deals which can be worth hundreds of millions of dollars thus serve to reduce margins obtainable on sale of crude oil.

It therefore, recommended the direct sale of the nation’s crude like other countries were doing.

The report also pointed out the grave consequence of crude oil theft describing it as a national tragedy and stressed the need for government’s urgent action noting that it was one of the reasons the country was losing those who had interest of coming in to do business as they now have the option of going to other countries within the region that have just discovered crude oil.

Stating that the recommendations of the committee would strengthen institutions responsible for the management of the Petroleum industry, Ribadu who is the chairman of the committee said, “Most of the recommendations are about management, about people and about how we run our own affairs. It propably may not have to do with the law.

PIB or no PIB, some of these things right now can be implemented and if PIB comes it will still be very important in getting the result.”

The committee’s deputy chairman, Steve Orosanye, however, challenged the process of compilation of the report arguing that the process adopted by the committee at arriving at it the report was flawed.

Submitting the report to the President, the Minister of Petroleum, Mrs. Diezani Allison-Madueke called on Nigerians to down play the disagreement between the members of the committee and focus on the salient recommendation contained in the report.

“I will not allow this to reduce the extent of hard work that this people of integrity has put into all the work. They have done a good work. It is more critical to concern ourselves about how well we will move forward when we finalise,” she said.

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Oil & Energy

Motorists Want NNPC Mega Filling Station In Bori

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Motorists plying the Ogoni axis in Rivers State have urged the Nigeria National Petroleum Corporation, (NNPC) and the Department of Petroleum Resources, (DPR) to make real their promise of establishing at least one of the mega filling stations in Bori, headquarters of Khana Local Government Area to give the people access to the facility.
Some of the motorists and residents of Bori who spoke with The Tide said the absence of the NNPC filling station in Bori has made them to continue to suffer exploitation in the hands of private filling station owners who inflates their prices at will.
A commercial motorist,  Mr Paul Ndeemua  who spoke with our reporters said motorists plying the Bori route were excited when they heared of plans by government  to build a mega filling station in Bori, but they were surprised that there was no trace of the project in Bori long after the plan was made public through the media chat.
He said:  “ We commercial motorists operating within the Bori axis were happy when we learnt sometime ago that the government was going to build mega filling station in Bori like other parts of the state were they are located, but it’s unfortunate that almost three years after the plan was announced, nothing has happened. I want to use this opportunity to call on the NNPC and the DPR to fulfill their promise by building the filling station in Bori. The project will go a long way to help commercial motorists in the area, especially in terms of access to products.”
Another commercial motorist, Mr Akanimo Udosen who spoke with The Tide also decried the conspicuous absence of the NNPC  Mega Filling Station in Bori despite its location in other places.
Resident of Bori also called on the Government to build a mega filling station in Bori to serve the people of the area. Apart from assess to petroleum products, the student said the project will also give a face lift to Bori.
He called on the Rivers State Government and stakeholders in ogoni to address the rising challenges of insecurity in Khana LGA to attract investment in the area.

 

Taneh Beemene

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Oil & Energy

PPPRA To Audit Infrastructure In Downstream Oil Sector

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The Petroleum Products Pricing Regulatory Agency (PPPRA) says it will commence a comprehensive audit and survey of downstream oil and gas logistic facilities in the country.
Mr Abdulkadir Saidu, PPPRA executive secretary, disclosed this in a statement issued in Abuja last Saturday.
He said that the state of infrastructure in the downstream of the Nigerian oil and gas sector largely was a reflection of profitability and proficiency of the market.
He added that the aim of the audit was to assess the state, adequacy and identify the infrastructure gap in the sector.
“ The PPPRA recognises that the state of infrastructure in the downstream requires constant assessment to ensure uninterrupted supply of products in addition to providing up to date data for operation in the sector.
“Oil and gas processing, storage and distribution facilities, jetties downstream and pipelines, retail outlets for oil and Liquified Petroleum Gas (LPG)  will be the focus of the survey.
“ The audit also aimed at assessing the impact of government policy and regulation on the sector’s operating environment and viability, with a view to addressing identified loopholes,” he said
According to him, the exercise, which is expected to commence in the second half of 2019, is a long awaited exercise by operators and other stakeholders.
He noted that the outcome of the exercise would contribute to policy formulation and impact investment decision-making by investors.
Saidu said that the management of the PPPRA would champion the exercise, noting that it was in furtherance of the reform programme of Mr President in the oil sector.
“All oil and gas depot owners, marketers, retail outlets and LPG plant owners are stakeholders in this exercise.
“The ultimate objective of which is to enhance the commercial viability of the sector and improve its level of attractiveness as investment capital destination of choice for would-be investors.
“We therefore wish to solicit the cooperation and support of all stakeholders in ensuring its success,” he said.

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NNPC, NOSDRA Move To Check Oil Spills

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The Nigerian National Petroleum Corporation (NNPC) and the National Oil Spill Detection and Response Agency (NOSDRA) say they would partner to check the incidences of oil spill across the country.
Group Managing Director of the NNPC, Malam Mele Kyari made this known when he received the Director-General of NOSDRA, Mr Idris Musa at the NNPC Towers in Abuja on Wednesday.
In a statement signed by Mr Ndu Ughamadu, the spokesman for the corporation, Kyari said that as a national oil company, the NNPC pipelines, flow stations and assets across the country were jointly owned by the federation.
He maintained that the corporation produces crude oil to maintain a balance sheet for the nation.
“We have taken a number of steps to stem oil spill by deploying technology in order to make sure that whenever there is an oil spill incidence, it is contained almost immediately.
“We contain the incidences of oil theft, pipeline vandalism and acts of saboteurs and we intend to bring it to the barest minimum,” he said.
Kyari noted that the NNPC operated both crude oil and petroleum products pipelines, adding that the corporation was collaborating with its partners to curb incidences of oil spill in its areas of operations.
He said the corporation would also forge closer ties with NOSDRA to proactively forestall oil spill in areas that were prone to incessant incidences.
Earlier, Musa said the agency was prepared to partner the NNPC in mitigating oil spill in all areas of its operations.
He added that the partnership would ensure a good operating environment for the operators and the communities.
He added that breaking of petroleum products pipelines did not provide food, water and good environment for the people.

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