Business

Investments: NNPC Boss Tasks Firms On Collaboration

Published

7 years ago

February 24, 2017

The Group Managing Director (GMD) of NNPC, Dr Maikanti Baru has advised indigenous oil companies to collaborate to drive oil and gas investments.
Baru gave the advice during the first edition of West African International Petroleum Exhibition and Conference (WAIPEC) organised by Petroleum Technology Association of Nigeria (PETAN) in Lagos last Wednesday.
The NNPC chief gave a keynote speech on ”Collaboration and Local Capacity Development as an Enduring Strategy in a Low Oil Price Environment’’.
Baru, who was represented by Dr Siky Aliyu, Managing Director, National Engineering and Technical Company (NETCO), said that indigenous companies should work together to weather the ongoing low oil prices.
According to him, the only way to weather the oil and gas sector challenges and stiffer international competition from international companies is for indigenous companies to collaborate.
He said that collaboration was also imperative for indigenous companies to reduce their cost of production and prices.
“Local companies must emulate the engineering companies in effective collaboration as there is the need to come together to position themselves for effective competition with international companies.
“The Nigerian oil and gas industry has been fortunate to have had previous and current regimes that recognised and promoted the establishment of institutions and enacted laws,’’ the NNPC chief said.
According to him, the success story of the Detailed Engineering Design (DED) of Topside of TUPNI’s Egina FPSO project delivered safely on time and within budget was an example of effective collaboration.
“A consortium of Nigerian engineering companies led by NETCO is a good example of successful collaboration and capacity development.
“Hitherto, no engineering project of this magnitude has been handled locally because no single local company had the capacity to do so.
“The NNPC management, in its wisdom, approved for three local companies to collaborate and support the local execution of this project.
“This decision paid-off.
“It has placed on record that over 80 per cent of the associated man-hours which was in excess of one million man-hours on a single project can be effectively executed in one project location in Nigeria.
“The collaborative success story of the DED of Egina FPSO project, which represents only a maximum of 10 per cent value chain of the FPSO, has indeed repositioned the Nigerian engineering companies.
“Rather than being the traditional competitors, they are now partners in progress and they are expanding their synergetic arrangements in readiness to take up other projects of this magnitude,’’ Baru stressed.
He listed other upcoming collaborative projects to include: SNEPCO’s Bonga South-West FPSO projects, NAE’s Zabazaba FPSO project, ExxonMobil’s Bosi FPSO Project, NLNG Train 7 or NLNG Debottlenecking Project.
“So much was achieved with DED which represents just about 10 per cent of a typical FPSO project.
“One can only imagine what other opportunities exist in the remaining 90 per cent of the project value chains in the procurement and construction scope of work,’’ the NNPC chief noted.
Baru said that the key to successful collaborations was to set shared goals, agree on rules of engagement at the onset and play by the rules to achieve a successful outcome.
Mr Anthony Okoroafor, the PETAN Chairman, said that the essence of the conference was to promote the region’s oil and gas industry.
Okoroafor said that it was also to set and seek industry best practices as well as to develop commercial opportunities for business and international investments.
He said the association appreciated the support of all exhibitors, adding that they were working to provide a cost-effective business platform.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

2 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

6 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu