The weekly activities of the Nigerian National Petroleum Corporation (NNPC) started on a cheering note as the Federal Government assured the Corporation of maximum security as it returns to the Chad Basin for exploratory activities.
President Muhammadu Buhari gave the assurance during his recent visit to Borno State, following the improvement of security in the area.
The president tasked the NNPC to expedite action towards the delivery of 50 megawatts power plant in the state to ensure the prompt restoration of electricity to Maiduguri and its environs.
Still on a cheering note, the House of Representatives Committee on Upstream commended the National Petroleum Investment Management Services (NAPIMS), a corporate Service Unit of the NNPC for efficient management of the nation’s Joint Venture Operating Agreements with the International Oil Companies in Nigeria.
Rep Musa Adar, Chairman of the Committee, who gave the commendation during a recent oversight visit by the committee in Lagos noted that NAPIMS had demonstrated capacity and efficiency in the management of the nation’s hydrocarbon resources.
Speaking earlier, Group General Manager, NAPIMS, Mr Bala Wunti, urged the National Assembly to pass the Petroleum Industry Bill (PIB) to create a competitive oil and gas industry for the country.
Also in the week under review, NNPC struck a partnership deal with the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), and the Nigeria Security and Civil Defence Corps (NSCDC).
The deal with was struck with other relevant downstream and upstream stakeholders in the petroleum industry was to curb smuggling and crude oil theft which had negatively impacted the nation’s economy.
The Group Managing Director of the NNPC, Malam Mele Kyari, said the move was at the instance of President Muhammadu Buhari who had ordered a stop to crude oil theft and illicit truck-out of petroleum products to other countries.
Kyari said the president had urged the Corporation of every stakeholder to ensure that the daily national petroleum products consumption which shot up to 102million litres in May was brought down to realistic levels of around 60million litres.
“We will all agree that smuggling is not a business that should be condoned because even for deregulated petroleum products it brings extra cost burden on this country both in terms of safety and security of supply and in securing of foreign exchange.
“It even constitutes more burden to this country when the product involved is a regulated product like Premium Motor Spirit (PMS).
“We all know that our daily consumption is not up to 60million litres. We all know that, and that is why we have to pull it down. We will pull it down by every means necessary,” Kyari said.
He said NNPC would commence Advanced Cargo Declaration in line with global best practices to tackle the menace.
EFCC Chairman, Abdulrasheed Bawa, said the Commission would work with NNPC to ensure perpetrators of the act were brought to justice.
The Major Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), assured NNPC of total support towards the fight.
The Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) and all the other stakeholders also pledged their support to fight smuggling.
The NNPC Gas and Power Investment Company (NGPIC), a wholly owned subsidiary of the NNPC, launched an initiative tagged “Hazard Hunt Awareness” aimed at curbing harmful incidents in and around the workplace.
NGPIC is a subsidiary of the NNPC with the responsibility to promote domestic gas utilisation and maximise value from investments across the LNG and power value chains as well as the gas-based industries.
The event which was held at the NNPC Towers Abuja saw the Chief Operating Officer, Gas and Power, Yusuf Usman, saying that the initiative was in line with NNPC Top Management’s drive towards becoming a company of global excellence.
“Safety is an aspect that we in the oil and gas industry should pay serious attention to for sustainable operations.
“The Hazard Hunt Initiative which we are launching today, is an awareness programme to help us to promptly identify unsafe acts and conditions so that we can curtail incidences and accidents in our operations,” Usman said.
Earlier in his remarks, the Managing Director of NGPIC, Mr Salihu Jamari, who was represented by the General Manager, Commercial, Mr Justin Ezeala, said that the initiative was a result of research and consultations with stakeholders.
Jamari stated that the programme would assist the NGPIC Management to deliver on its key performance indicators (KPIs) for 2021, pointing out that a company that operates safely would always have motivated staff strength driven towards profitability.
On his part, the General Manager, Group Safety, Health, Environment and Quality (GHSEQ), Mr Hussaini Ali, tasked every staff to be involved in identifying potential hazards and flagging them for prompt action in the interest of the organisation.
Still in the week under review, the NNPC through its Advanced Leadership Programme (ALP) class 095 donated a block of renovated three (3) classrooms, two (2) staff rooms and a borehole to Chachi community, in Tafa Local Government area of Niger state.
The donation was part of the Corporate Social Responsibility project of ALP Class 095.
The General Manager, Talent Management Department, Fatima Yakubu, represented by Mr John Ogbe, commended class 095 for supporting the community’s educational and water needs and encouraged members of the community to take proper care of the facilities for their good.
President of the class, Mr Ogunlolu Olumuyiwa, said Class 095 CSR focused on the renovation of the classrooms and staff rooms because of the dire need to encourage education in the country.
Olumuyiwa added that the borehole would also meet the water need of the community.
The Chairman of the CSR committee of the class, Mr Okeme Aliu, noted that the project was in consonance with the strategic directions of NNPC in ensuring CSR in its host communities.
The Dagachin Chachi, Alhaji Musa Abubakar, spoke in Hausa, and expressed gratitude to the NNPC and the class for supporting the growth and development of the community.
The NNPC also in the week explained the importance of Oil Mining Lease (OML) 118 which was discovered in 1996.
The Corporation while signing a partnership deal for another 20 years said the OML 118 covered approximately 60 sq km in an average water depth of 1,000 metres.
The deal was between NNPC and its Production Sharing Contract (PSC) partners including Shell Nigeria Exploration and Production Company (SNEPCo), and Total Exploration and Production Nigeria Limited (TEPNG).
Others were Esso Exploration and Production Nigeria Limited (EEPNL) and the Nigerian Agip Exploration (NAE).
The five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
NNPC GMD Kyari said over 10 billion dollars of investment would be unlocked as a result of the agreements which signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC).
He disclosed that the deal would yield over 780 million dollars in immediate revenues to the Federal Government while it would also free the parties from over 9 billion dollars in contingent liabilities.
“This is an indication of a renewed confidence between NNPC and her partners; between the Government and the investing communities which include NNPC.
“It produces value for all of us by providing a clear line of sight for investment in the Bonga bloc of around 10 billion dollars.
“Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business,” Kyari said.
NNPC partners applauded the Corporation for the unprecedented progress in the oil and gas industry that necessitated the deal.
On the global scene, Oil prices rose after industry data showed United States crude inventories fell more than expected, reinforcing views of a tightening supply-demand balance with road and air travel picking up in Europe and North America.
Brent crude futures jumped 42 cents or 0.6 per cent to 75.23 dollars per barrel, after giving up 9 cents.
United States West Texas Intermediate (WTI) crude futures jumped 33 cents or 0.5 per cent to 73.18 dollars per barrel, after falling 60 cents.
The American Petroleum Institute industry group reported crude stocks fell by 7.2 million barrels for the week ended June 18, according to two market sources.
Meanwhile, the Market Intelligence Department of NNPC’s London Office reported that Officials from several Organisations of the Petroleum Exporting Countries (OPEC)-plus countries are holding informal consultations.
The consultations include discussing the possibility of a further increase in the alliance’s oil production.
OPEC-plus is due to hold its next ministerial meeting on July 1 and scenarios prepared for the meeting by the OPEC secretariat pointed to growing demand for oil in the second half of this year.
That could support the case for a further gradual increase in the alliance’s production ceilings, the delegates said.
Oil Prices Back at Pre-Pandemic Levels as Brent crude oil futures have rallied since last fall and touched 75 dollars per barrel amid expectations that demand would continue to recover in the second half of this year.