Refineries: Senate probes NNPC over $396m maintenance fee

“Nigeria, through NNPC, has, in the past 25 years, spent billions of US dollars in Turn-Around Maintenance of the refineries, the latest being over $396m spent between 2013 and 2015.”       The Senate, yesterday, resolved to probe the Nigerian National Petroleum Corporation (NNPC) over the sum of $396 million allegedly expended on Turn-Around Maintenance (TAM) of refineries in Nigeria between 2013 and 2015. The Senate, therefore, directed its Committee on Petroleum Downstream, Upstream and Gas, to investigate the Turn-Around Maintenance (TAM) expenditures and the current state of the…

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Downstream, a sub-sector in crisis

The poor profit margin in downstream sub-sector of Nigeria’s oil and gas industry is pulling the sector into bankruptcy. Adeola Yusuf reports how heavy reliance on fuel importation makes the business become bearish   The downstream sub-sector of the oil and gas industry manifested ailments akin to a not-well-to-do business at the weekend. The Nigerian National Petroleum Corporation (NNPC), the sole importer of petrol into Nigeria for major part of 2019, it was, that first hinted that it incurred about N1.5 trilliion under-recovery in one year due to epilepsy of…

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Yuletide: NNPC vows to sustain products sufficiency nationwide

Respite may soon come the way of commuters at the Ijegun-Egba axis of Lagos State following a move by the Nigerian National Petroleum Corporation (NNPC) to partner with the Lagos State Government, depot owners and petroleum tanker drivers to address infrastructural challenges that have perennially hampered products evacuation from the area. This was disclosed by the Group Managing Director of the corporation, Mallam Mele Kyari, during separate visits to tank farms at the Ijegun-Egba corridor as well as the Lagos State Government House in Ikeja, Lagos, yesterday. He said as…

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NNPC, NISS partner to safeguard oil assets

The Nigerian National Petroleum Corporation (NNPC) and the National Institute for Security Studies (NISS) have stepped up inter-agency collaboration to contain the spate of insecurity of lives and property in the cause of the national oil company’s operations. The Group Managing Director of the NNPC, Mallam Mele Kyari, while receiving the delegation from the NISS on Friday in Abuja, said that security of workers and capital-intensive equipment in the oil and gas industry were critical areas of priority that would always attract the corporation’s management attention. A release by the…

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NNPC generates N2.8bn, spends N34.1bn on refineries in two months

The Nigerian National Petroleum Corporation (NNPC) made N2.837 billion revenues on its ailing refineries and expended a whooping N34.094 billion on the same assets in two months. The Monthly Financial and Operational Reports (MFORs) for the months of June and July released by the Corporation, which showed this, noted that NNPC suffered a whooping N31.256 billion deficits on the three inefficient refineries located in Port Harcourt, Warri and Kaduna. Although, NNPC had for a long time been suffering deficit on the refineries, the deficit recorded in June was about N5…

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NNPC moves for transparency in fuel imports, consumption

The Federal Government has reconfirmed that Nigeria is yet to know the actual volume of fuel imports and consumption as it inaugurated a team of 89 persons drawn from five key agencies to, among other things, authenticate the actual volume of products imported and consumed in the country. Minister of State for Petroleum Resources, Chief Timipre Sylva, who inaugurated the initiative code-named ‘Operation White’ in Abuja, maintained that the team is to also ensure transparency and accountability in the distribution of petroleum products across the country. Speaking at a brief…

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NNPC imports N250.85bn worth of fuel in one month

The Nigerian National Petroleum Corporation (NNPC) imported over N250.85 billion worth of premium motor spirit (PMS) also known as petrol in 31 days. The state-owned oil firm, which gave this hint in its July Monthly Financial and Operational Report (MFOR) released yesterday, noted that it supplied a whopping 1.73 billion litres of the product in July alone. With the average of $56 per barrel price, the landing cost of the product was more than N145 per litre during the period under review. NNPC has, for over one year, been the…

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FG plots end to oil industry skill gap

The Federal Government yesterday declared plans to end in-country skill gap rocking the Nigeria oil and gas industry. The Nigerian National Petroleum Corporation (NNPC), which said this, according to a statement, announced plans to collaborate with Oil and Gas Trainers Association of Nigeria (OGTAN) to boost the number of Nigerians who were core professionals in the industry. Speaking through its Group Managing Director, Mele Kyari, the corporation said it would continue to work with OGTAN using the guidelines of the Nigeria Content Development and Monitoring Board (NCDMB) to bridge the…

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Security hitches mar NNPC’s $2.5bn Chad re-entry

We’re making significant progress in inland basin exploration –Kyari   The plan by the Nigerian National Petroleum Corporation (NNPC) to reenter the Chad basin for oil search has suffered a fresh setback. The corporation has expended over $2.5 billion on the preliminary work including seismic evaluation and mobilisation of men and materials for the oil search. The setback suffered by NNPC, investigation by New Telegraph showed at the weekend, was buoyed by the inability of the corporation to secure clearance from security agencies for its geologists and petroleum engineers to…

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US judge saves Nigeria from another $1.8bn penalty

* Denies effort by Exxon, Shell to restore arbitration awarded against NNPC A U.S. judge on Wednesday rejected Exxon Mobil Corp’s and Royal Dutch Shell Plc’s effort to revive a $1.8 billion arbitration award against Nigeria’s state-run oil company, which stemmed from a dispute over a 1993 contract to extract oil near the African country’s coastline. U.S. District Judge William Pauley in Manhattan cited public policy and due process considerations in deciding not to enforce the October 2011 award against Nigerian National Petroleum Corp (NNPC), which was subsequently set aside…

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