Mele Kyari: Nigeria will stop importing fuel by 2023
Mele Kyari, the group managing director of the Nigerian National Petroleum Corporation (NNPC), says the country will stop fuel importation by 2023.
Kyari was speaking after signing the condensate refinery strategy programme front end engineering design; a project that is expected to deliver 20 million litres of petrol when it is completed.
“For a country that has been producing oil for over 50 years, it is really a difficulty to explain why we are still importing petroleum products,” he said.
“We have a clear mandate of Mr President to stop this and we believe this can be done between now and 2023; it is not a political deadline, it is a realistic, technical deadline that we can deliver on this.
“First, we will deliver on our refineries to make them work and significant work has gone into that and we believe that we can deliver on this.
“Secondly, we will support our partners to deliver on their projects that will make gasoline and other products available which is essentially the many other refinery projects intervention that are going on that we know and we support all of them, particularly the Dangote refinery, we will help them in any way possible to support them to deliver on that.
“Thirdly, which is where we come in, in the upstream as we all know, we haven’t done well, we are busy exploring for oil-producing wells but we haven’t bothered to say what additional value we can add to this country and that’s where the condensate refinery comes in.”
This is not the first time Kyari is speaking on ending the importation of petroleum products, at the valedictory service organised for Maikanti Baru, former NNPC GMD, he promised that all the country’s refineries would be fixed before 2023.
Nigeria’s Omar emerges secretary-general of African Petroleum Producers’ Organisation
Omar Ibrahim, a Nigerian, has emerged secretary-general of the African Petroleum Producers’ Organization (APPO).
His appointment was ratified at the extraordinary session of the APPO council of ministers, which held in Abuja, on Thursday.
Ibrahim took over from Mahaman Gaya whose tenure ended same day.
The Nigerian, with a focus in international energy relations, has served as governor of the Organisation of Oil Exporting Countries (OPEC) for Nigeria since 2015.
He retired as group general manager in charge of international energy relations of the Nigerian National Petroleum Corporation (NNPC).
In a statement, Ibrahim was commended for the good representation of Nigeria in the comity of other countries in the continent.
“With this new appointment, Nigeria has firmly solidified its position in both Africa and the Global Oil and Gas Scene as an Industry Leader. In consolidation, it is important to note that the current Secretary-General of OPEC, H.E. Mohammad Sanusi Barkindo, is also a Nigerian,” the statement read.
“Nigeria’s Minister of State for Petroleum Resources and the immediate past President of the African Petroleum Producers’ Organization (APPO), H.E. Chief Timipre Sylva, has continued to effectively provide the unparalleled leadership that has rightly emplaced Nigeria as an Industry Leader.”
FG releases list of real owners of oil companies, licences
The federal government, in collaboration with the Nigeria Extractive Industries Transparency Initiative (NEITI), has released a beneficial register which contains the list of the real owners of oil assets and companies.
A website (bo.neiti.gov.ng) which contained the list was unveiled in Abuja on Thursday.
According to Waziri Adio, NEITI’s executive secretary, the website contains a list of the owners of 270 licences in the mining sector, and the owners of 61 assets and 56 companies in the oil and gas sector.
He also said the register, which would be free for anyone to access through electronic means, would continuously be updated as more information becomes available and would periodically be upgraded to allow for better user-interface.
“Legitimate businesses and most businesses also stand to benefit from knowing who they are doing business with, from reduced exposure to reputational risks, from having a level-playing field, and from improved trust in their operating environment.
“So let me say this upfront: this beneficial ownership register is not against businesses. Rather, it is for the good of businesses as it is for the good of countries, and it is for the good of civil groups, the media, and individuals. So there is nothing for anyone, especially anyone engaged in legitimate businesses, to be jittery about.
“In a short while, the beneficial ownership register for the extractive sector in Nigeria will go live. At the touch of a button, anyone with internet access can find out, for free, the owners and the ownership structure of extractive assets that are in production in Nigeria. These are the assets covered within the scope of the NEITI audits.
“In this free electronic register, you will find the owners of 270 licences in the mining sector, and the owners 61 assets and 56 companies in the oil and gas sector. The register will continuously be updated as more information becomes available and will periodically be upgraded to allow for better user-interface.”
Adio said the register is in fulfilment of the commitment that President Muhammadu Buhari made at the London Anti-Corruption Summit in 2016, and fulfilment of Nigeria’s commitment under the Open Government Partnership and to the EITI.
Report: Nembe Creek trunk line was Nigeria’s most vandalised pipeline in 2019
Nembe Creek Trunk Line suffered the most vandalism attacks in 2019.
This is according to a paper presented by Godwin Obaseki, governor of Edo state, at the inaugural policy dialogue of the Nigeria Extractive Industries Transparency Initiative (NEITI).
The policy dialogue was themed ‘Stemming oil theft in Nigeria’.
“In our assessment, NNPC reported that Nigeria in 2019 recorded a loss of 22.64million barrels of crude oil valued at $1.35billion for the half-year and $2.7billion for the full year at a global oil price of USD60 per barrel,” he said.
“The losses were recorded on the following pipelines:
- Nembe Creek Trunk Line (NCTL) – 9.2 million barrels
- Trans Niger Pipeline (TNP) – 8.6 million barrels
- Trans Forcados Pipeline (TFP) – 3.96 million barrels
- Trans Escravos Pipeline (TEP) – 877 thousand barrels
This data, he said, was the findings of the national economic council ad-hoc committee on crude oil theft, prevention and control.
Obaseki said the committee recommended that the federal government repossess key pipelines as national assets in the short term and then offer them out through lease agreements or other feasible terms.
The governor also said there is a “need to expand the scope of the National Social Investment Programmes in the oil-producing communities to engage the unemployed youths in those areas to redirect their energies to productive use and avert them from being used for bunkering and oil theft”.
It also recommended that contract agreements for surveillance be put in place in addition to the establishment of a task force and special courts to prosecute offenders.
Oil prices down as US crude inventories shock markets
Oil prices fell on Wednesday after industry data showed an unexpected build-up of US crude inventories and as investors waited to see if a fresh round of US tariffs on Chinese goods would come into force on Sunday.
Brent futures fell lost $1.20 to trade at $63.14 set for their biggest daily fall since December 2.
West Texas Intermediate crude slipped 89 cents to $58.35.
US crude stocks clocked a surprise rise in the most recent week while gasoline and distillate inventories also rose, data from industry group the American Petroleum Institute shows.
Crude inventories rose by 1.4 million barrels in the week to December 6 to 447 million.
US-China trade tensions continue to cloud the outlook for demand, with a December 15 deadline for the next round of U.S tariffs on Chinese imports approaching.
“The post-OPEC bullish jolt is all but a distant memory,” PVM oil market analysts said referring to a decision last week by OPEC and its allies to deepen supply cuts amid a weak outlook for oil demand growth next year.
“Oil prices have struggled for traction this week as demand concerns returned to the fore. The cautionary mood is likely to prevail as investors await fresh cues on the trade front.”
On the supply side, the United States is on track to become a net exporter of crude and fuel for the first time on record on an annual basis in 2020, the Energy Information Administration (EIA) said, due to a production surge that has dramatically reduced its dependence on foreign oil.
Timipre Sylva, Mele Kyari to discuss crude theft at NEITI’s policy dialogue
Timipre Sylva, the minister of state for petroleum resources, and Mele Kyari, the group managing director of the Nigeria National Petroleum Corporation (NNPC) will lead the conversation at the upcoming dialogue on combating crude oil theft and petroleum products losses in Nigeria.
The dialogue, which is organised by the Nigeria Extractive Industries Transparency Initiative (NEITI), will hold on Tuesday at the Transcorp Hilton in Abuja.
NEITI said the decision to convene the dialogue is informed by its recently published report which disclosed that Nigeria lost $41.9b between 2009 and 2018 to crude oil theft and product losses.
Godwin Obaseki, the Edo state governor, who also chairs the national economic council’s committee on crude oil theft, prevention and control, will deliver the keynote address at the event.
The dialogue is designed to feature panel discussions by experts on the subject matter who have been carefully selected across the value chain in Nigeria’s oil and gas industry.
The event will also attract senior officials from key security agencies; oil industry regulator, oil companies; industry unions; and chairmen of national assembly’s relevant committees.
Other participants, excluding Waziri Adio, NEITI’s executive secretary, expected at the event are representatives of relevant government agencies; civil society organizations, media, academia, and development partners.
The outcome of the dialogue is expected to contribute to ongoing efforts by the government to sustainably address the scourge of crude oil and petroleum products theft in Nigeria.
OPEC’s new production quota may reduce Nigeria’s budget benchmark by 580,000 barrels
The Organisation of Petroleum Exporting Countries (OPEC) may deepen its production cuts by 580,000 barrels at its ongoing meeting in Vienna.
This would be in addition to the earlier 400,000 barrels cut agreed on in December 2017, which saw oil producers keep production at 1.8 million barrels per day.
OPEC began its meeting in Vienna on Thursday followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday.
OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world’s biggest producer and is not taking part in cuts.
By 2020, rising production in non-OPEC countries such as Brazil and Norway threatens to add to the glut.
The current deal expires in March and two OPEC sources told Reuters that it would be extended at least until June.
Mohammed al-Rumhi, Oman’s oil minister, said his delegation would recommend extending cuts until the end of 2020.
Thamir Ghadhban, Iraq’s oil minister, said the new cuts could be expanded to 1.6 million bpd while OPEC sources said Riyadh is pressing Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 bpd.
Not all OPEC members were convinced of the need to cut deeper, however. One OPEC delegate said the move would boost prices and help spur a new phase of U.S. oil output growth.
Non-OPEC Russia has yet to agree to extend or deepen cuts from its current pledge of 228,000 bpd as its companies are arguing they are finding it tough to reduce output during winter months due to very low temperatures.
Alexander Novak, Russia’s energy minister, said Moscow has not finalised its position.
Aiteo: We’ve lost 4m barrels of crude oil to theft in 2019
Aiteo Eastern Exploration and Production, operators of OML 29, says the activities of oil thieves have assumed alarming proportions, leading to loss of about four million barrels of crude in 2019.
Victor Okoronkwo, the managing director of the oil firm, spoke on the sidelines of the ongoing Practical Nigerian Content Exhibition and Conference.
Okoronkwo said attacks by oil thieves on the 117-kilometre Nembe Creek Trunk Line (NCTL) have adversely affected crude export from the oilfields in Bayelsa which had been shut for two months in 2019.
He regretted that despite the enormous investment in technology and security on the assets, the sabotage was yet to abate, adding that the development required decisive action by all stakeholders.
He noted that the losses in oil output caused by oil theft were responsible for revenue shortfalls expected by the three tiers of government.
“One of the biggest challenges we face in our operations is the security of our pipelines and oil facilities,” he said.
“Our pipelines and flow-lines are constantly vandalized by unscrupulous elements tagged ‘crude oil thieves’ attempting to cause economic sabotage to our company and the people of this great country.
“Despite our efforts in raising NCTL uptime from 60 per cent to over 80 per cent since the acquisition, we have recorded more shutdown days in operations due to third party infractions for over two months this year, compared to previous years.
“This has resulted in a loss of revenue and deferments estimated at about 4 million barrels so far this year.
“Also worrying is the amount of crude loss recorded even when the pipeline is operational, usually in the range of 25 to 35 per cent.
“More worrisome is that even when the perpetrators of these acts are caught and handed over to security agencies, we are yet to witness any convictions.”
He noted that the interruptions cut across the industry, as NCTL also served four other oil companies namely Eroton, Newcross, Belema Oil and Shell, who took turns to export their crude output from the export line.
NEITI: FG to publish names of actual owners of oil and gas companies Dec 12
Waziri Adio, executive secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), says the federal government will publish the beneficial ownership register for the oil and gas industry on December 12.
The beneficial ownership register is expected to contain information on the actual owners of the extractive industries companies, irrespective of the names of those who manage them in trust for their principals.
NAN reports that Adio was addressing journalists after a meeting with Mark Robinson, head of the international secretariat of the global Extractive Industries Transparency Initiative (EITI), who is on a working visit.
Adio said that the meeting was organised for journalists and civil society groups to exchange views on EITI implementation in Nigeria, and the ongoing reforms in the oil, gas and mining sectors.
Adio was represented by Orji Ogbonnaya Orji, NEITI’s director of communications and advocacy.
In his remarks, Robinson commended Nigeria for the effort it was making to ensure transparency in the oil and gas, mining sectors operations.
Robinson said the group managing director of the Nigerian National Petroleum Corporation (NNPC) informed him that the corporation was looking into remediation that had been reoccurring in the NEITI audit reports.
Also speaking, Dieter Bassi, NEITI’s technical director, said that NNPC had been very helpful to the watchdog organisation in its operation.
He said that there were community development agreements that had been signed by the companies and there were always issues about who signed on their behalf.
According to Bassi, NEITI’s reports cover revenue from the minerals sector however, there are limitations to accessing the location of illegal miners, so the reports concentrate on companies that make regular payments.
NEITI, NNPC set up joint committee to resolve outstanding revenue issues
The Nigeria Extractive Industries Transparency Initiative (NEITI) and Nigerian National Petroleum Corporation (NNPC) has constituted a joint committee to address the issues raised in reports published by NEITI.
According to Waziri Adio (pictured), NEITI’s executive secretary, the committee will look into issues like outstanding revenues to be remitted to the federation account, the methodology being used in the pricing of federation equity crude and issues surrounding the management of the daily allocation of 445,000 barrels of crude oil to the NNPC for domestic use.
There is also the issue of divestment of Nigeria’s share in some joint venture assets. The joint committee is also to examine NEITI’s expectation from the NNPC on proactive disclosure of information and data on its operations in an open and accessible format.
“This is a win-win for all. It is good for the corporate image of the NNPC, good for NEITI and good for Nigeria. It is not really good for NEITI to be seen as an island of transparency and the rest is seen as the landscape of opacity. We need everyone to embrace and practice transparency,” Adio said.
“We have moved from open hostility to grudging acknowledgement to where we are now. It took NEITI and the NNPC 15 years to get to this point. That is what EITI is about – collaboration and not antagonism”.
“This new spirit of collaboration and working together to solve problems, of pushing the frontiers of transparency and accountability for the greater good of our country should be sustained.”
In his remarks, Mele Kyari, the group managing director of the NNPC, said the new relationship between both entities is based on mutual respect for good governance and extractive revenue transparency in Nigeria.
“We are part of the working group on commodity trading and many other EITI interventions globally. We are committed to ensuring that the observations in the NEITI reports do not repeat themselves many of which are due to lack of communication. We have a responsibility to manage the resources of this country in an equitable and responsible manner,” he said.
“This is a problem-solving exercise, not a confrontation or entrenched position. Ask questions where necessary and provide answers where needed. Clarify issues, because this is a national challenge and changes must be effected,” Kyari charged the joint committee.
Dieter Bassi, the director of technical services, will lead NEITI’s team while NNPC’s team is led by Sunday Fakasi of the governance, risk and control division.
The committee is expected to validate documentary evidence on issues that have been resolved, identify outstanding remedial issues and areas of disagreement between NNPC and NEITI.
The committee is also expected to provide contextual information on NNPC’s platforms and develop a work plan with realistic targets for addressing unresolved issues.
The joint committee has one month to complete its assignment.