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NNPC Intensifies Oil Search In Gongola, Other Inland Basins

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The Nigerian National Petroleum Corporation (NNPC) has embarked on a more rigorous exploration for oil in the Gongola and other inland basin using the latest seismic data gathering technology .
A statement by NNPC’s Group General Manager,Group Public Affairs Division, Garba Deen Muhammad, made this known in Abuja on Saturday
The NNPC Group Managing Director, Dr Maikanti Baru, the statement said, made the disclosure when he paid separate visits to the governors of Bauchi and Gombe States.
Baru said that the latest technology was similar to the ones used by neighbouring countries to discover oil in their countries..
He said the exploration was in strict compliance to President MuhammaduBuhari’s mandate.
NNPC, he said, had therefore commenced activities in the Gongola Basin by awarding the contract for seismic data acquisition of over 500KM2 3D seismic data in the first instance.
“NNPC is deploying state of the art technology in the present data acquisition and we are confident that these efforts will lead to clearer definition of the prospectively of the basin.”
He said that the contractors awarded the contract for the seismic data acquisition in the Gongola Basin, was Integrated Data Service Limited (IDSL).
Baru said the contractor was a subsidiary of the NNPC and Bureau for Geophysical Prospecting, a subsidiary of Chinese National Petroleum Corporation (BGP/CNPC) were mobilising to commence the project.
The GMD said that the seismic data acquisition activities and exploration well drillings would provide employment opportunities for the youths.
Baru said the multiplier effect of the envisaged employment would contribute to the economic empowerment of the surrounding communities and the nation at large.
He said that NNPC was in the process of awarding the Environmental Baseline Studies (EBS) and Environmental Impact Assessment (EIA) to Abubakar Tafawa Balewa University, Bauchi and Modibbo Adama University of Technology, Yola.
In their separate remarks, the governors of Bauchi an Gombe, Mohammad Abubakar and Ibrahim Dankwambo applauded the president for the pragmatic move to rigorously commence exploratory activities in the area.
They both stressed that the move would further grow the nation’s oil and gas reserves.
“I want to assure you of the unflinching support of Bauchi State and its good people towards this project.
“We are ready to provide offices and accommodation for all NNPC staff that will work on this project,” Abubakar said.
“Already, we have assigned two ministries that will work with your team on this laudable project.
“ I will work with my colleague Governors in the North- East to galvanize support from our people towards this project,” Dankwambo said.
Dankwambo also called on the media to support this renewed oil search in the area.
Giving their royal endorsements, the Emirs of Bauchi and Gombe reassured the Federal Government of their readiness to support the project, mobilise their subjects against interrupting the smooth operation of the exploratory activities in their domains.

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Foreign Exchange Inflow Falls To $4.97bn

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Foreign exchange inflow into the economy fell by 59.8 per cent in April according to figures obtained from the Central Bank of Nigeria (CBN) monthly report on ‘Foreign exchange flows through the economy’.
Part of the report read, ‘Aggregate foreign exchange inflow into the economy declined sharply, reflecting tepid global economic recovery, which undermined foreign trade and capital flows across countries, despite the COVID-19 vaccination drive.
“Foreign exchange inflow through the economy dropped by 59.8 per cent to $4.97bn in April 2021.
“The decrease was attributed, largely, to a sharp decline in autonomous inflow, particularly invisible purchases and official non-oil receipts, which declined by 63.1 per cent and 75.2 per cent, to $2.95bn and $0.81bn, respectively, in April 2021.”
According to the report, a breakdown of activities showed that foreign exchange inflow through the CBN was $1.66bn in April 2021, a decrease of 55.8 per cent below the $3.76bn in March 2021.
It added that inflow through autonomous sources, at $3.31bn in April 2021, was 61.6 per cent below the level in March 2021.
The CBN also said that aggregate foreign exchange outflow through the economy fell by 13.7 per cent in April 2021.
Aggregate foreign exchange outflow through the economy fell by 13.7 per cent to $2.74bn, below the $3.18bn in the preceding month.
Outflow through the CBN declined by 10.4 per cent to $2.58bn, compared with the $2.88bn in the preceding month, due largely to the bank’s policy on foreign exchange market.
It added that outflow through autonomous sources, at $0.16bn, decreased by 46.0 per cent in April 2021, compared with March 2021.
Overall, it said, the country recorded a lower net inflow of $2.23bn in April 2021, compared with a net inflow of $9.19bn in the preceding month.

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NNPC Denies Funding 2019 Elections With Oil Traders’ Bribes

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The Nigerian National Petroleum Corporation (NNPC) has  reacted to an allegation that fees that trading firms paid agents to win oil contracts from the corporation might have raised funds for the country’s past two elections.
Nigeria’s past two general elections held in 2015 and 2019.
The contest for the presidential seat was mainly between ex-President Goodluck Jonathan and President Muhammadu Buhari in 2015, while it was between Buhari and former Vice-President Atiku Abubakar in 2019.
Buhari was declared winner in the two elections.
Citing lawsuits in London and New York, Bloomberg had reported last Friday that an ex-BP Plc oil trader alleged that cargo allocations by the NNPC could have contributed to preparations for general elections in 2019.
The report said a former Glencore Plc employee in July admitted paying a middleman $300,000 to secure a crude shipment from the NNPC, understanding the money would be spent on the nationwide election that took place four years earlier.
The NNPC, through its Direct Sale of Crude Oil and Direct Purchase of Petroleum Product scheme, awards contracts that allow companies, including international trading houses and indigenous firms, to lift crude oil in return for the delivery and supply of petroleum products. The contracts are usually for one year. 
The Group General Manager, Group Public Affairs Division, NNPC, Mr Garba-Deen Muhammad, has, however, refuted the allegation.
“[It’s] not true, and I think that is obvious if you read the story with an open mind,” he said via a text message to a national daily. 
Jonathan Zarembok, who left BP’s West Africa desk last year, was quoted as saying in the suit that he suspected that fees paid by the United Kingdom energy giant to obtain NNPC contracts would go toward the 2019 elections.
He filed an employment claim against BP, alleging that he was fired for raising concerns about the large sums being transferred to intermediaries to win business in Nigeria.
Zarembok was quoted as saying in a witness statement made public this month that emails sent in 2017 by a BP executive in Nigeria were a “clear red flag” and implied “there would be pressure to pay bribes”.
According to Bloomberg, the emails discussed how preparations for elections would get underway in 2018.
“We understand what that means,” the executive wrote.
He said the company then wired $900,000 in fees to a local agent after securing two oil cargoes from NNPC.
“BP is defending in full and denies all allegations made by the claimant,” Bloomberg quoted the company as saying in a statement.
It said BP declined further comment while Zarembok’s case at a London employment tribunal continues.
The report noted that similar details emerged two months ago, when Anthony Stimler, who left Glencore in 2019, pleaded guilty to corruption and money-laundering charges.
It said Stimler was notified in September 2014 that “Foreign Official 1” was asking all NNPC clients to pay an advance on each cargo “in connection with a then-upcoming political election,” according to US court filings.
He then had Glencore wire $300,000 to an intermediary company, which prosecutors said was used “to pay bribes to Nigerian officials.”
US prosecutors outlined how Stimler and others paid bribes worth millions of dollars in several countries, including to NNPC officials, between 2007 and 2018, according to the report.

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VAT War: PNG Backs Southern Govs -Says It’s Part Of Restructuring

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The Convener of Pro-Nigeria, Mr. Lai Omotola, has broken silence on the Value Added Tax (VAT) war currently going on between the Federal Inland Revenue Service (FIRS) and five southern states. 
The five southern states include Rivers, Lagos, Ogun, Ekiti, and Akwa-Ibom states.
From the time a Federal High Court in Portharcourt gave a ruling that state governments, and not the FIRS, have the constitutional power to collect VAT, the Rivers State and Lagos State had quickly passed bills authorising the states to collect VAT.
Reacting to the development, Omotola, in a statement, said that PNG was in full support of states collecting VAT.
“We in PNG support the development and the subsequent stand by Lagos State and Rivers State in creating a law to enable their states to collect VAT. Others who have joined in the bid are states like Ogun, Ekiti and Akwa-Ibom states.
“This is a welcome development because we feel that it is lawful and it is in sync with the intention of our founding fathers that every state should be collecting VAT.
 “It will also show fiscal restructuring towards economic development and at the end, Nigeria as a country will be better for it”, PNG posited.
The group also condemned the reception given by President Muhammadu Buhari to the former Minister of Aviation, Femi Fani-Kayode at the Presidential Villa following the defection of the latter to the ruling All Progressives Congress (APC), recently.
According to Omotola, the President should show reason why Nigeria should still believe in his fight against corruption and believe him as the upholder of basic morals on the account of his red carpet reception to Femi-FaniKayode at the Presidential Villa. 
“Our concern is that this same man is currently having a battle with the Nigerian state via the Economic and Financial Crimes Commission (EFCC) on corruption charges.
“Although the law states that one is innocent until proven guilty, it is morally unjust for a President to receive with a red carpet and stand beside a person against whom the EFCC has established a case, stating unequivocally that he had defrauded Nigeria; and the same matter is still in court; therefore, to now see him being honoured by the President has thrown hope for this country into the wind”, the statement added.

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