Category: News

The National Leadership of the Nigeria Union of Petroleum and Natural Gas Workers has directed petroleum tanker drivers to withdraw their services from Lagos State with effect from Monday.

NUPENG said on Friday that the directive followed the failure of various authorities in the state to address three major issues that had severely caused petroleum tanker drivers pains and harrowing experiences in the state for several months now.

It said this in a statement signed by the National President, Williams Akporeha, and the General Secretary, Olawale Afolabi, with the title ‘NUPENG leadership directs withdrawal of services by petroleum tanker drivers in Lagos State with effect from Monday, August 10, 2020.’Ad

The union said, “The entire rank and file members of the union are deeply pained, frustrated and agonised by the barrage of these challenges being consistently faced by petroleum tanker drivers in Lagos State and are left with no other option but to direct the withdrawal of their services in Lagos State until the Lagos State Government and other relevant stakeholders address these critical challenges.

“It is sad and disheartening to note here that we had made several appeals and reports to the Lagos State Government and the Presidential Task Force for the decongestion of Apapa on these challenges but all to no avail.”

NUPENG said it had made wide consultations with various leadership organs of its union and with other key stakeholders in the oil and gas industry.

It said it “resolved to embark on an indefinite strike beginning from 12 am, Monday, August 10, 2020, if there are no decisive and convincing actions from the Lagos State Government to address these concerns and challenges.”

source: Punch

A modular refinery, expected to process 5500 barrels of crude oil per day in Edo is about 70 per cent completed, the State Governor, Godwin Obaseki said yesterday.

Being constructed by the Edo Modular and Refinery Company Limited, and AIPCC Energy, Obaseki said the project would recalibrate the state’s industrial base, birthed through a Memorandum of Understanding (MoU).

Obaseki, was quoted in a statement that the refinery located at Ologbo in Ikpoba Okha Local Government Area (LGA), would produce from its feedstock 50 per cent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres), and 20 percent of fuel oil (200,000) litres. The crude would be sourced from the Nigerian Petroleum Development Company’s (NPDC) facility – oil mining lease (OML) 111, near Benin City.
Obaseki added that the Chinese consortium handling the construction of the refinery is made up of Peiyang Chemical Equipment Company of China (PCC), Sinopec International Petroleum Service Corporation (SIPS), and African Infrastructure Partners (AIP).

To him, the modular refinery is among the growing list of ongoing legacy projects through MoU with local and international private investors, which include the already completed 55MW CCTEC Ossiomo Power Plant; the ongoing Benin Enterprise and Industrial Park; and the Benin River Port, for which preliminary works are ongoing.

“The local content component of the refinery project ensures that Edo citizens are trained in welding, refinery operation and fabrication work to enable them to participate in the construction of the refinery as well as its operation, post-commissioning. The refinery is at 70 percent completion and we are very sure that it will soon be ready for commissioning,” Obaseki was quoted.

The actualisation of the project he said was premised on smart thinking and financial savviness.The state had earlier approved the release of N700 million as redeemable preference shares (investment) in the refinery and Petrochemical Company Limited.

The venture is expected to create legitimate employment opportunities thereby reducing poverty, provide job opportunities for teeming youths in the communities, facilitate the establishment of a fabrication yard as proposed by the promoters, and create a basis for expertise, professionalism and further training in the oil and gas industry.

Source: TheGuardian

The South West chapter of Independent Petroleum Marketers Association of Nigeria (IPMAN) has directed all its members in the zone to increase the dispensing pump price of Premium Motor Spirit (PMS) otherwise known as petroleum from N143 to N150 in their respective filling stations.

IPMAN South-West Zonal chairman, Alhaji Dele Tajudeen who spoke with journalists on Thursday in Abeokuta, said the directive became necessary in order to avert the planned shutdown of petroleum filling stations across the zone.

He explained that the decision to increase the dispensing price followed a new price regime announced by the Petroleum Product Pricing Regulatory Agency (PPPRA) which increased the depot price of the product from N133. 72k to N138. 62k without consulting with other critical stakeholders like IPMAN.

While berating the PPPRA for what he described as “policy inconsistency”, Tajudeen further told journalists that PPPRA’s new depot price has subjected IPMAN members to a serious dilemma and after careful deliberations and consideration of many factors, IPMAN zonal Executive Committee arrived at the conclusion of increasing the pump price to N150 rather than joining saboteurs at creating artificial scarcity of the product.

It would be recalled that the Downstream Subsidiary of NNPC, Petroleum Products Marketing Company ( PPMC) on Tuesday in a memo signed by its Manager, Sales, Mohammed Bello fixed ex-Depot of petrol to 138.62 per litre with directive to take effect from August 5th 2020.

According to the memo, ex-depot price of diesel was fixed at N160 and N165 per litre for Lagos and Oghara respectively, while ex-depot for kerosene was 160 per litre.

But the zonal chairman further stated that the new price regime of N138. 62 as announced by the government, came as a surprise to his members who were not given any directive as to what the new pump price should be even after 48 hours of waiting for the PPPRA and its parent body, the Nigeria National Petroleum Corporation (NNPC).

“After careful deliberations and consideration of many factors, the IPMAN Zonal officers hereby declared that all its members should henceforth increase their pump price to N150 and shelves the plan of total close down of petrol stations across the South West.More in Home

He said the PPPRA is not consistent and in organise in dealing with the stakeholders, saying that the normal thing to have done was to involve marketers, and other parties before announcing any increment.

“Even after announcing the new ex-depot price they should have fixed the pump price for markers to prevent unnecessary debt”, Tajudeen stated.

He further expressed dissatisfaction at PPRA’s action which he said failed to consider the welfare of its members, most of whom he claimed conduct their businesses with bank loans.

“It is very disheartening to hear that a new price regime is coming to effect, without considering the plight of marketers who bought these products at an expensive price

“And Federal Government needs to know that some of us obtained loans from banks to run this business and we have to pay interest on them.

“We are still struggling with debts incurred before this increase with nothing to show for it, or how can somebody work with only N2.00, and yet we will pay workers, maintain the loan and also fulfill our obligations to the government.

“Yes, it is mandatory that we meet the needs of FIRS, pay State taxes, DPR fees, pay Weight and measure fees, pay salaries of our workers, pay Union dues, pay our insurance fees and of course, buy diesel to power generators at our various filling stations. So, when we removed all these expenses we are left with almost nothing”. IPMAN chairman stated emotionally.

Vanguard News Nigeria

Barring last-minute interventions from the Presidency over the new adjustment in the prices of petroleum products in the country, the Nigerian National Petroleum Corporation, Petroleum Products Pricing Regulating Agency and Petroleum marketers are set on a collision course that is likely to affect the distribution of products in the country.

According to the top industry stakeholder, “though it is not something that should cause any worry ordinarily, under the current situation, those who are in the office cannot just pick their pen and endorse advice that can cause major harm to those who are dealing directly with consumers.

“There is an N3:80k deduction from what is due to the Marketers which the PPPRA had wrongly advised the NNPC to implement and it is a cost which the Marketers are unwilling to transfer to the consumers.

“We expect the government to wade into the matter and settle it among us amicably so that the distribution of products would not be affected in any way.

“Ordinarily, what the marketers expected was not a deduction but an improvement in what the Marketers were getting as the margin, but you would be shocked that what we are getting is to go and work with a reduction in what is due to us.

“Meanwhile, the screaming headlines in the media are calling out Marketers as if we were the ones making life unbearable for Nigerians.” the sources submitted.

“You will observe that since I called you, I have told you that I am a Stakeholder but I did not tell you if I was speaking for MOMAN or IPMAN.

“Just go and see the headlines in some national papers today, Marketers are being called out on the issue of the new pump prices and not those who are in the boardroom and deciding the fate of everyone else, including the consumers.

“We do hope that those who appointed them will step in and resolve the grey areas so that we can prevent unnecessary tension in the country.

“It does not make any business sense for any Marketer to invest in outlets and deliberately take steps that would affect the flow of supply in the outlets.

“Whether Marketers are members of Major or Independent Marketers Association, they are both in the business of product distribution and are both facing the same challenges from the Depot to their outlets.

In his words, “honestly my brother, I cannot make comments now because as we speak, I am even bereaved. I lost my father on Sallah day and we are still on family matters.

“We all saw the new pricing regime in the media while we were still away on holidays, and my family engagements have made me stay away from Abuja longer than I had planned.

“As soon as I get any information that the media can use on the matter, I will surely get back to you.

Source: vanguardngr.com

The Nigerian National Petroleum Corporation has increased the prices at which two of the country’s major crude oil grades would be sold in August.

Most of the country’s September loading programmes emerged on Monday, but traders were still waiting for Angolan allocations, according to Reuters.

The NNPC on Monday raised its August official selling prices for Bonny Light and Qua Iboe crude oil to dated Brent plus 61 cents and plus 65 cents per barrel respectively.

The loading programmes for Bonny Light and Forcados will both have seven cargoes, Bonga will have four and Qua Iboe six.

Total loadings for the four key grades will be at 756,000 bpd in September up slightly from 743,000 in August.

As for the smaller streams, there will be three Akpo cargoes including one partial cargo, four Egina cargoes including one partial, three cargoes of Amenam, one cargo each of Yoho, Usan and EA as well as two Erha.

Bonny Light and Qua Iboe were being offered at about dated Brent plus 90 cents to plus $1.00.

The international oil price benchmark, Brent crude, rose by $0.14 to $43.28 per barrel as of 8pm on Monday.

Source: Brandinfo.com.ng

Little trading or price movement occurred on Monday as faster buying earlier in the trading cycle lapsed into a lull.

Offers for West African grades, even ones which had recovered significantly in previous weeks, remained stuck at
current levels.

BP last offered a cargo of Angolan Girassol at dated Brent plus $3.30. Freight rates from the region to eastern markets hovered
around the lowest levels since the outbreak of the coronavirus outside China in March.

Contango structure in the crude futures market also narrowed to the lowest levels since around the same time, limiting the incentive for buyers to snatch up and store physical crude.

Analysts and traders still predict the structure may last for months, making certain small draws on floating storage in
China and Singapore an exception to the trend.

An Eastern customer said the abundance of supply, in the form of unsold crude for later delivery and oil already in floating storage provided more buying options.

Source: Reuters

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THE Federal Government has paid N168 billion outstanding subsidy debt to oil marketers, as part of measures targeted at stimulating activities in the downstream sector of the petroleum industry. Investigation by Vanguard indicated that the payment was made through promissory notes, which the major and independent marketers started to collect on June 1, 2020.

However, the notes would not be turned into cash until the next three to four years, meaning that the poor financial situation of the downstream sector would not improve in a short term. The Operations Controller, Independent Petroleum Marketers Association of Nigeria, IPMAN, Mr. Mike Osatuyi, who confirmed the development in a telephone interview with Vanguard yesterday, said: “The government does not owe anymore. We have started collecting promissory notes for the last segment of the subsidy payment. However, it should be noted that we would not be able to cash it until the next three to four years.”

Mr. Osatuyi, who confirmed the marketers have not been able to embark on fuel importation, barely one month after the government had permitted them do so, added that marketers were still constrained by many problems, including lack of funds and uncertainty over inadequate foreign exchange. He said: “It is not that we do not want to import, after all we imported in the past. The fact is that, there are many constraints affecting our operations at this time. These include lack of funds, huge subsidy debts and uncertainty over foreign exchange.”

COVID-19 delays engagement

Osatuyi, who noted that marketers planned negotiation, was being stalled by the coronavirus pandemic, said: “We need to settle down, review and resolve these issues with the relevant government agencies. We need to have a clear idea about the direction, before we delve into fuel importation.

“Unfortunately, we cannot hold the planned engagement immediately because of the coronavirus pandemic, which has restricted the movement of persons from one place to another. We look forward to holding it once the pandemic is over.”

Private sector input

Similarly, speaking at a webinar in Lagos, chairman, Major Oil Marketers Association of Nigeria, MOMAN, Mr. Adetunji Oyebanji, said: “We are aware of the recent pronouncements to the effect that there is no longer going to be anything like subsidy anymore to more recent comments, stating that the sector had been deregulated.

As far as we are concerned, there is a need for the private sector to make input, while such policy is being put in place so that at the end of the day, we would have a policy that is beneficial not only to the industry, but to the economy as a whole.”

“We believe that the market forces should be allowed to determine the prices, particularly the price of Premium Motor Spirit, PMS, and there are several reasons that support that, but I think the most important point, I will like to put across is that we require very significant investment in distribution facilities, especially pipelines, trucks and refineries to create an environment of certainty for the operators.

“The downstream needs even more investment and we believe that creating that kind of environment where the market determines the prices will give operators the kind of certainty they require and this is all through the value chain, right from the refinery gate all through the dealers, the retailers at the end of the station. Uncertainty is not a friend of investment.”

Inconsistent policies

Also, Managing Director, NorthWest Petroleum & Gas Limited, Dame Winifred Akpani, stated: “There has been many investments in depot constructions across Nigeria because opportunities presented themselves for people to make such investments at the time. Initially, it was worthwhile because there were so many things going on at the same time. But subsequently over the years, as government has continually overtaken the whole operations in the downstream sector to a large extent it has been very difficult for a lot of depot owners to survive especially those who had not made further investments into other areas of the downstream.

“On the average, we have each depot costing between N3 billion to N5 billion at the minimum. For some they were able to make subsequent investments into retail, marine vessels, pipelines and others. For these set of people it has not been so bad in the sense that they have been able to continue to operate.”

Deregulation

Furthermore, Akpani maintained: “Deregulation, as we know it now, is a complete removal of government regulations or control, especially with regard to pricing or product as we know them. For the depot operators, over the years with NNPC taking over 100 per cent of import until recently and then fixing very little margins for operators who take on these products for distribution, the operators have not been able to operate.”

Source: Vanguard

The President of African Development Bank (AfDB), Akinwumi Adesina, a former Minister of Agriculture in Nigeria, is enmeshed in allegation of corruption, leading to a pressure probe from the United States of America.  

AfDB board agreed to an independent probe of its president after the U.S. rejected an internal investigation that cleared him of allegations of favoritism.

Africa’s largest multilateral lender decided on the inquiry after several governments backed U.S. Treasury Secretary Steven Mnuchin’s criticism of a bank-led examination into the allegations. Adesina, who has repeatedly denied wrongdoing, may have to step back from the role until the probe is completed.

According to reports, unidentified whistleblowers accused him of handing contracts to acquaintances and appointing relatives to strategic positions. Hence only fair, transparent and just processes would confirm his innocence of allegations on corruptions.

The proposed investigation comes three months before the bank’s annual meeting, at which Adesina is the sole candidate to extend his five-year term. The AAA-rated lender’s 80 shareholders in October pledged to provide funding that will help to more than double its capital base to $208 billion.

Denmark, Sweden, Norway and Finland are among countries that wrote to the AfDB to back the Mnuchin’s demands for professional outsiders to look into the allegations.

Mr. Mnuchin expressed reservations about the integrity of the lender’s ethics committee for giving Adesina clean bill of health with regards to the allegations.

The scope and detail of the allegations are serious enough for a further inquiry to ensure the AfDB’s shareholders have confidence in the bank’s leadership, Mnuchin said in a letter addressed to Niale Kaba, the chairwoman of the bank’s board of governors.

The United States is the second largest investor and biggest shareholder with 6.5% after Nigeria. The demands for an independent probe are aimed at ensuring that if the allegations are baseless, the process of reaching that conclusion is public and transparent.

Shareholders of the AfDB include 54 nations on the continent and 27 countries in the Americas, Europe, Middle East and Asia. It has an AAA rating from Fitch Ratings, Moody’s Investors Service and S&P Global Ratings.

S&P Analyst Alexander Ekbom said, “If there are questions from major shareholders on the appropriateness of an internal process, clearly it’s not harmful if that is put into a different light and looked at from the outside world with fresh eyes.”

Prior to Mnuchin’s letter to the board, African leaders including South African President Cyril Ramaphosa and his Nigerian counterpart, Muhammadu Buhari, expressed support for Adesina and commended him for his efforts to help secure funds for Africa to deal with the fallout from the disease.

U.S. criticism of the bank’s internal processes follows comments by World Bank President David Malpass in February that multilateral lenders including the AfDB tend to provide loans too quickly, and, in the process, add to African nations’ debt problems. The bank rebutted the statement, saying it undermines its governance systems, impugns its integrity and that there is no risk of “systemic debt distress” on the continent.

In March, the lender issued a $3 billion social bond to help African countries deal with the fallout from the coronavirus pandemic. The bank also launched a $10 billion crisis-response facility for African nations.

However, some political watchers believe the AfDB president could have fallen out of favour from the US as he was so close to China, and with election coming in the US, while Trump seeks re-election bid, there was need to change the bank’s president.

source: energyfocusreport

Nigeria LNG Limited (NLNG) on Sunday, 24th May, 2020, received the Honourable Commissioner for Health, Rivers State, Professor Princewill Chike, who led a delegation to inspect the company’s medical facilities and to assess its readiness in the fight against COVID-19 pandemic in the State.

The Commissioner, who was received by NLNG’s General Manager Production, Adeleye Falade, inspected the Holding Centre at NLNG Residential Area Hospital and the Bonny Zonal Hospital Holding Centre, which was recently donated by NLNG.

Professor Chike commended NLNG for being responsive to the needs of the State in the containment efforts against COVID-19 and assured of the State Government’s continuous support for its operations.

He condemned the use of social media to create unnecessary panic on the Island and urged all those who are in the habit of posting unverified stories on social media to desist from the practice.

He remarked that health officials were in Bonny to examine and take samples from persons who were alleged to have reported symptoms consistent with a resistant strain of malaria and typhoid, adding that the results will be ready soon. He said the causes of malaria and typhoid are well known and advised anyone who feels unwell to visit the hospital for investigation and treatment.

Unveiling the plaque for the Bonny Zonal Hospital 10-Bed Holding Centre to formally declare it open for public use, he described it as a well-equipped centre that can be upgraded to a treatment centre in the future.

The Commissioner stated that the facilities were adequate for handling any Covid-19 case ahead of evacuation to a designated treatment facility.

Welcoming the delegation, Falade said the holding centres were part of the company’s response to COVID-19. He commended the State Government for supporting the actions meant to help manage the pandemic.

He added that NLNG’s contribution to the fight against the Corona Virus is in line with its vision of “…helping to build a better Nigeria”.

Other programs to boost the healthy well-being of residents of Bonny Island include the Bonny Malaria Eradication Programme, instituted in 2019 to reduce malaria-related mortality among women and children between the ages of zero to five and to make Bonny Island Nigeria’s first malaria-free zone, and the Bonny Community Health Insurance Programme, a scheme established to ease financing and access to quality health care on the Island. Some 1,393 residents have enrolled in the insurance programme.

Other members of the NLNG delegation at the visit include the manager Community Relations and Sustainable Development, Mr Godson Dienye; the Chief Medical Director, Dr Okuns Ohiosimuan; and Head, Government Relations, Rivers State, Michael Igoni.

source: energyfocusreport

One of Shell’s major project in Nigeria, Bonga crude oil export terminal has begun routine maintenance in order to meet record time.

The Shell Nigeria Exploration and Production Company (SNEPCo) said that maintenance on the Bonga floating production storage and offloading unit (FPSO) began on May 21.

SNEPCo made it known that, “The scope includes statutory recertification and critical asset integrity activities and will run until July during which there will be a few days of total shutdown.”

The company said it was working to complete the maintenance “safely and in record time.” This was disclosed by a source that the FPSO would be closed for two weeks.

Bonga was scheduled to load four cargoes in June, or 127,000 barrels per day (bpd), up slightly from May at 123,000 bpd.

The Bonga FPSO like its Egina counterpart, is expected to add significant production of crude to Nigeria.

source: energyfocusreport