Connect with us

Oil & Energy

IPMAN Calls For Overhaul Of Oil Sector

Published

on

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for the total overhaul of the nation’s oil sector.
The National Public Relations Officer of IPMAN, Mr Chinedu Ukadike, made the call during a chat with newsmen in Port Harcourt, recently.
Ukadike regretted that the nation was more interested in enriching foreign lands while making Nigeria a dumping ground for poor quality petroleum products.
According to him, “we create opportunities for foreign countries to use Nigeria as a dumping ground for petroleum products. Most times, they dump ethanol instead of PMS”.
The IPMAN spokesperson said the Federal Government ought to have taken steps to revamp the finished product subsector of the petroleum industry before embarking on full deregulation of the sector.
He observed, “it is very very important that the Federal Government does first thing first before talking about its deregulation, put all our refineries in order and show that the refineries are working at least 70 per cent capacity so that whatever they would bring in as imported products is just to complement our supply.
“Then they should also ensure that all the pipelines are put in place and in good condition. Building modular refinery is another way of helping us”
He expressed displeasure over the N30 billion Petroleum Equalisation Fund (PEF) allegedly owed the marketers even after the Acquilla System was introduced.
Ukadike advocated the use of Pipeline Strategic Data Tracking System as a key component of the oil pipeline industry’s Environmental and Safety Initiative for tracking vessels and pipelines to equalise the price of petroleum products.
He decried the frequent lack of products at Pipeline and Product Marketing Company (PPMC), a subsidiary of the Nigeria National Petroleum Corporation (NNPC).
He wondered why Nigeria as an producing country would continue to import petroleum products at a very high cost.
“Why we would depend on the importation of petroleum products to service domestic consumption? We have three (four) refineries, we have the Port Harcourt Refinery, we have the Kaduna Refinery, we have the Warri Refinery, none of these refineries is producing”, he lamented.

 

By: Tonye Nria-Dappa

Print Friendly, PDF & Email
Continue Reading

Oil & Energy

NCDMB Lauds TotalEnergies On Ikike’s First Oil

Published

on

The Nigerian Content Development and Monitoring Board (NCDMB) has lauded management of TotalEnergies EP Nigeria Limited for achieving first oil from the Ikike offshore project.
Recall that The Tide source reported that TotalEnergies’ Ikike project which had its investment decision in 2019 had achieved first oil last month, without any lost time injury or incident and with significant local content milestones.
Ikike, located within OML99, is 15km North of Amenam and 20km offshore, will increase TotalEnergies’ crude oil production within the oil block.
Commending the French multinational, the Executive Secretary of NCDMB, EngrSimbiWabote, noted that TotalEnergies has demonstrated true leadership of Nigerian Content development by continuing to invest in Nigeria and achieving great strides in Nigerian Content when other operators were divesting from fields in Nigeria.
Wabote spoke recently at the ground-breaking ceremony of human capacity development projects for Government Technical College in Port Harcourt, Rivers State.
“Let me at this juncture thank the management of Total Energies for demonstrating faith and commitment to the betterment of Nigeria. Let me also congratulate the management of Total for achieving the first oil of the Ikike project.
“But Total Energies has demonstrated that indeed they are a true leader of Nigerian Content Development, and when many other operators are divesting from fields in Nigeria, Total has continued to invest in Nigeria and achieving great strides in Nigerian Content.”
Wabote, represented by the Director, Planning, Research and Statistics, Mr. Patrick Obah, said the Board had developed a guideline that allocates 60 percent of the Human Capacity Development budget on major oil and gas projects to the strengthening of training institutions.
Under the guideline, according to the NCDMB boss, a large chunk of the HCD commitments on projects will be channeled towards the upgrade and provision of facilities in institutions that train relevant workforce for the oil and gas industry.
The remaining percentages of the HCD budget, he said, will be applied to other human capacity programmes, stressing that the Board has placed emphasis on human capital development.

Print Friendly, PDF & Email
Continue Reading

Oil & Energy

NNPC Renews Oil Production Contracts For Five Deepwater Blocks

Published

on

The Nigeria National Petroleum Corporation Limited (NNPC), has renewed oil Production Sharing Contracts (PSCs) with International Oil Companies (IOCs) and local firms for five deep water blocks, which could produce up to 10 billion barrels over the next 20 years.
The renewal ceremony on Friday was attended by officials of the NNPC and the affected oil companies.
Bala Wunti, head of the National Petroleum Investment Management Services (NAPIMS), an NNPC subsidiary, said the renewed agreement should lead to the production of 10 billion barrels of oil.
NNPC jointly and separately owns the Oil Mining Leases (OMLs) 128, 130, 132, 133, 138 blocks with oil majors Shell, Equinox, Chevron, ExxonMobil, China’s Sinopec and Nigerian firm, South Atlantic Petroleum.
Nigeria, a member of the Organization of Petroleum Exporting Countries (OPEC) is heavily reliant on oil for its revenues, but has been unable to get the full benefit of a surge in energy prices this year as years of underinvestment have prevented it from meeting its OPEC output targets.
MeleKyari, Managing Director/CEO, NNPC Ltd, said investment had been slowed by disputes over revenues and taxes that stemmed from previous contracts.
Protracted negotiations had reduced “all ambiguities” to a minimum for the new 20-year contracts and any disputes related to past contracts had been settled amicably”, he said.
Under the new contracts, the NNPC will work alongside local and international energy companies.
The international companies attended Friday’s signing ceremony but made no comment.
The most common partnerships used by Nigeria are joint ventures and production-sharing agreements, which were first introduced in 1993 and have cumulatively accounted for about 40% of Nigeria’s oil production, NNPC said.
The companies pay the government in the form of royalties and tax as well as providing the state with oil and gas.

Print Friendly, PDF & Email
Continue Reading

Oil & Energy

‘Seplat’s $1.28bn ExxonMobil Assets Acquisition, Contempt Of Court’

Published

on

The Akwa Ibom State Government says President MuhammaduBuhari’s consent for Seplat Energy to acquire shallow water assets of Mobil Producing Nigeria Unlimited (the Nigerian arm of ExxonMobil Corporation) amounts to contempt of court.
Recall that President Buhari on Monday granted consent to the acquisition of Exxon Mobil’s Nigerian unit by Seplat Energy in a $1.28 billion deal announced in February.
But, the AkwaIbom State government said the transaction was subject to restraining orders of injunction of the High Court of Akwa Ibom State, sitting in Uyo in Suits No. HEK/56/2018, between Attorney General of Akwa Ibom State V. Mobil Producing Nigeria Unlimited and HU/209/2020, Mobil Producing Nigeria Unlimited V. Governor of Akwa Ibom State and three others.
The Attorney General and Commissioner for Justice in Akwa Ibom State, Uko Essien Udom, explained that ExxonMobil, Seplat Energy, NNPC Ltd and the Federal Government were all aware of the court order, as they were all served.
Udom expressed regret that President Buhari’s interference with the judicial process of a court of competent jurisdiction was sad and ill-advised, and was contemptuous of the High Court of Akwa Ibom State.
He warned that anyone who deals with the shares or assets of Mobil Producing Nigeria Unlimited during the subsistence of the said orders and in the pendency of the above suits, was doing so at his or her own risk.
“ExxonMobil, Seplat Energy, NNPC Ltd and the Federal Government of Nigeria, all have actual knowledge of the court orders, having been duly served with the orders and/or various newspaper publications of same.
“This executive interference with the judicial process of a court of competent jurisdiction is sad and ill-advised, and is contemptuous of the High Court of Akwa Ibom State.
“The State urges the Nigerian Upstream Petroleum Regulatory Commission to take the above facts into consideration as it considers its position in this matter.
“Take notice, therefore, that anyone who deals with the shares or assets of Mobil Producing Nigeria Unlimited during the subsistence of the said orders and in the pendency of the above suits does so at their own risk. Let the buyer beware,” he said.

Print Friendly, PDF & Email
Continue Reading

Trending