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Economic Sabotage: Count us out – NNPCL, NMDPRA, others tell Senate as Dangote says 60% of its crude oil comes from NNPCL

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Nigeria Senate

The Nigerian National Petroleum Company Limited (NNPCL), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and some other critical stakeholders in the Petroleum industry, declared on Wednesday that they should be counted out of any act of economic sabotage in the sector.

This is as Dangote Refinery perceived to be at logger heads with NNPCL on seamless operations, openly stated that 60% of its crude oil is provided for, by NNPCL.

Rebuttal of alleged economic sabotage was publicly made by the Minister of State , Petroleum, Senator Heineken Lokpobiri, the Group Chief Executive Officer of NNPCL , Mallam Mele Kyari and the Chief Executive Officer of NMDPRA , Engineer Farouk Ahmed during presentations before Senate Ad-hoc Committee investigating alleged economic sabotage in the Petroleum Industry.

Specifically the Minister of State for Petroleum in his remarks at the interactive session the Committee had with stakeholders in the sector, said a lot of misinformation has been churned out to the public on roles being played by his Ministry and other agencies in making it inclusive for interested investors.

The planned public hearing by the Committee according to him, would afford Nigerians to know the truth on happenings in the sector.

“Please do us a favour by televising the planned investigative hearing on the alleged economic sabotage in the Petroleum Industry live “, he said.

In his own remarks, the Group Chief Executive Officer of NNPCL, said the Company owned by over 200million Nigerians should be counted out of any act of sabotage.

“We are faithful, loyal and committed to the greatness of this country. We are not criminals, thieves or saboteurs as being alleged through wrong narratives .

“NNPCL under our management and by operational guidelines or relevant provisions of PIA, CAMA etc , is today a profit making company after about 43 years of loses .

“Today from 1.4million barrels it was, months back , production level , has increased to 1.65million barrels per day and will soon hit the expected 2Million barrels per day .

” There is nothing for NNPCL to sabotage because we are out to maximize value and profits for the country . We are not against any domestic refinery because the laws are clear as far as processes and procedures are concerned.

” As requested for by the Hon Minister of State for Petroleum, the planned public hearing on alleged sabotage in the sector , should be televised live , for Nigerians to know the truth of situations on ground “, he said.

Similarly the Chief Executive Officer of NMDPRA, Engr Farouk Ahmed in his brief remarks said the planned public hearing should be televised live for Nigerians to know those indulging in the alleged economic sabotage in the sector.

“A lot of negative stories and narratives have been written and published against us in NMDPRA on how we are carrying out our regulatory functions without us saying telling our own story.

“Gratifyingly, the planned public hearing will give us the appropriate platform of laying our fact bare to Nigerians for them to know who is sabotaging who.

“The investigation should be public and televised live”, he stressed .

In his presentation, the Group Chief Strategy Officer of Dangote Refinery, Aliyu Sulaiman , said out of the 5million crude oil they got in recent time , NNPCL gave them 60% , 20% imported and 20% purchased .

He commended the NNPCL for making the huge supply to Dangote but added that the refinery is a baby that should be supported by all relevant stakeholders to grow and not die.

However in his presentation,a subtle attack was made against Dangote by the National Chairman of Depot and Petroleum Marketers Association of Nigeria ( DAPMAN) Abdulkabir Adisa Aliyu who said Dangote declared N133billion profit on Sugar sales in Nigeria within the last six months .

He said such a feat was made possible for Dangote for allowing him monopolized the Sugar business in Nigeria.

The Petroleum sector he added, should not be allowed to be monopolized by any person or company, saying ” Monopoly kills business .

Similarly, the National President of Independent Petroleum Marketers Association of Nigeria ( IPMAN) , Alhaji Abubakar Shettima in his presentation , loudly admonished the committee against monopoly in the petroleum sector .

” The current value chain in the downstream should be sustained to allow other investors to participate .

” NNPCL is doing its best but should please improve on supply of products to retail outlets across the country to end the incessant queue at filling stations “, he said.

In his opening remarks, the Chairman of the Ad – hoc Committee, Senator Micheal Opeyemi Bamidele ( APC Ekiti Central) , said the committee was not out to witch-hunt any body or group of persons but to unravel identities of those sabotaging the petroleum sector .

He specifically mentioned the alleged importation of hazardous petroleum products and substandard diesel into Nigeria arising from non functionality of government owned refineries in Nigeria .

“In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.

“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving”, he said .

The committee has fixed the public hearing for September 10 to 12 , 2024 along with their counterparts from the House of Representatives .

Oil and Gas

NIES 2025: NLNG says energy security should be a priority

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The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.

Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.

Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.

Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.

Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.

Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.

Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.

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Oil and Gas

$200 billion required to be injected into development of gas infrastructure – NEITI

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The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.

He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.

He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.

Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.

Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.

Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.

Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.

They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .

Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.

“This definitely must not continue, there must be complete overhaul of the sector “, he said

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Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping

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The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.

NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.

A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”

The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.

The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.

“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”

NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.

It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.

The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.

“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.

“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.

“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.

“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”

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