NNPC

Abuja, Sept. 26, 2023: The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with the Nigerian Content Development and Monitoring Board (NCDMB) and International Oil Companies for optimal contracting cycle in the industry.

The MoU will implement industry framework, focused on processes and timelines for achieving optimal contracting cycle of not more than 180 working days in the Nigerian petroleum industry.

Speaking at the signing of the MoU on Monday in Abuja, Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd, listed key benefits of the framework in the MoU.

Represented by Mrs Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPC Ltd, Kyari included reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days, compared to the current best effort performance of 327, 333, and 185 working days, respectively.

“An optimised contracting cycle is expected to improve the ease of doing business, reduce cost, and drive efficiency which will eventually translate to production growth, increased revenues, and ultimately improved profitability.

“You will agree that one of the biggest challenges in the industry is contracting. And we see this as an enabler to increase production in the sense that once you have your contracts in place, nothing stops you from performing.

“Today, we have witnessed a collaborative effort by all the major stakeholders. We have come together to reaffirm that we are ready to work together to shorten the timeline for contracting and you can imagine reducing 320 days to 180 days, that is monumental.

“So efficiency is going to be instilled in the process and will ultimately deliver more production. We will deliver cost efficient operations and boost the economy,” he said.

The GCEO described the MoU as a collaborative solutions between the major industry players for double-digit economic growth rate agenda of the government and to generate tremendous value for all the stakeholders including the investors, the companies, and community.

Also speaking, Mr Simbi Wabote, Executive Secretary, NCDMB recalled that 15-DAY Rule to the industry was introduced in 2017 and later formalised it with Service Level Agreement (SLA) in May 2017 with NLNG leading to record breaking approvals in respect of NLNG Train7 project.

Wabote said the industry found the outcome impressive leading to Independent Petroleum Producers Group (IPPG) signing the SLA in 2018 and Oil Producers Trade Section (OPTS) thereafter.

He expressed delight that NNPC Ltd has now joined as a key party on the agreement being the senior partner of the Joint Ventures and concessionaire of the Production Sharing Contract (PSC) arrangements.

“The overall goal is to wrap up our tendering to contract award processes within six months. I have no doubt that this is doable with all key parties now on board with today’s execution of the SLA.

“This SLA will not be an exception as you can count on us to deliver our part of the deal,” he said.

In a remark, Mr Osagie Okunbor, Managing Director, Shell Nigeria, expressed satisfaction over the development in view of the long time the issue which was consistent had taken before being actualised.

Okunbor, while stating its commitment, said that apart from the MoU framework, the enablers were critical and should be seen as an attachment to the MoU, adding that work on the enablers should be concluded immediately after the MoU endorsement to ensure six months contracting cycle.

CEOs and representatives from other IOCs including the ExxonMobil, Chevron Nigeria, TotalEnergies and ENI also endorsed the MoU framework and expressed willingness towards an effective implementation.

Earlier, Mr Bala Wunti, Chief Upstream Investment Officer, NNPC Ltd, in an overview said three things identified as the major challenges of the sector included struggle to convert PIB to PIA which had been settled, security issues which had made business ineffective and cost element which could be addressed through contracting.

These, he said, made the sector globally not competitive hence the current industry collaborations on the MoU framework became necessary to tackle the problems.

“We have worked over one month, our team of experts in supply chain compliance and other supporting professionals will generate Service Level Agreement (SLA) to be executed differently from the previous SLA between the stakeholders to accelerate contracting timeline,” Wunti said.

The framework is in line with the Nigerian Upstream Cost Optimisation Programme (NUCOP), and in consonance with President Bola Tinubu’s directive for NNPC Ltd and NCDMB to engage the industry with the objective of improving performance.

As a demonstration of his resolve to the efficiency mandate in the PIA, Kyari took the lead in constituting an industry joint committee (IJC) comprising NNPC Ltd, NCDMB, and IOCs in developing an industry framework for an optimised contracting cycle.

Abuja, Sept. 24, 2023: The Nigerian National Petroleum Company (NNPC) Limited. has signed up as a participant of the United Nations Global Compact, thereby becoming the first state-owned oil company to join the global initiative.

Malam Mele Kyari, Group CEO of NNPC Ltd., signed the Letter of Commitment, at the ongoing UN General Assembly (UNGA), signifying its participation in the UN Global Compact in New York.

A statement by the NNPC Ltd management, on Thursday, said the company signed up in a short ceremony on the sidelines of President Bola Tinubu’s session during the Global Africa Business Initiative (GABI) at the ongoing general assembly.

Speaking shortly after the signing, Kyari said the NNPCL’s participation in the UN Global Compact was a further testimony to Nigeria’s commitment to work with global partners towards attaining a just Energy Transition.

Kyari added that with this development, NNPCL supports the Ten Principles of the UN Global Compact on human rights, labour, environment, and anti corruption.

He described the NNPCL as a dynamic global energy company with businesses and operations across the entire spectrum of the energy value chain.

“We are committed to making the UN Global Compact and its principles part of our strategy, culture and day-to-day operations of our Company.

“We will engage in collaborative projects which advance the broader development of goals of the United Nations, particularly the Sustainable Development Goals (SDGs),” Kyari added.

Earlier in her remarks, the Executive Director, UN Global Compact Network, Nigeria, Ms Naomi Nwokolo described NNPCL’s move to become a participant of the UN global initiative as pivotal step in fostering a culture of ethical business conduct, environmental stewardship, and social responsibility.

With Nigeria being one of the largest producers of crude oil in Africa, a transition from an energy system driven by fossil fuels to one based on renewable energy will have far reaching positive impact, serving as a catalyst for sustainability in-country, on the continent and the world at large.

The UN Global Compact, formally inaugurated in July 2000, is a voluntary UN agreement designed to encourage companies around the world to develop, implement, and disclose responsible and sustainable corporate policies and practices.

Abuja, Sept. 16, 2023: The Nigeria National Petroleum Company (NNPC) Ltd. has denied speculations that it  plans to move its headquarters in Abuja to Lagos.

Mr Mele Kyari, the Group Chief Executive Officer (GCEO) NNPC made the denial at the resumed investigative hearing of the ad hoc committee on the acquisition of OVH Energy by NNPCL on Friday.

Kyari said that contrary to the petition by petitioners, the company had no plan of moving its headquarters to Lagos, adding that this was in spite of its present status of a private company, registered with the Corporate Affairs Commission.

He said the insinuation might not be unconnected with the fact that 70 per cent of its operations were in Lagos, adding that moving the headquarters would incur additional cost on the company.

He said the NNPC Ltd. had merged its operations and moved the right people where they were required to function.

According to him, the registered headquarters of NNPC Ltd. is in Abuja, the mere fact that the GCEO sit with the operations staff does not mean it had moved to Lagos.

According to him, those making the allegation were doing so because they don’t want to move; this is the challenge of merger and acquisition all over the world. We have given them option to resign.

“The company cannot keep them where they are not needed; this is what the petitions are all about.”

He noted that in every merger and acquisition, the dominant culture must be allowed to take over such as service, adding that this was exactly what the NNPC Ltd was doing.

“Merger and acquisition comes with challenges but we are minimising the impact, we have to make the business happen.

“We are doing everything possible to ensure that it has no negative impact and we will ensure it creates value,” he said.

Speaking on the need to retain expatriates, he said there was no national oil company of  limited liability that does not have expatriates, adding that it took him many days of engagement to make the expatriates stay.

“We don’t have the capability and there is no way we can progress without having inclusion of people that can create values,” he said.

Kyari said that the NNPC Ltd. needed to be the national oil company that people could deal with, adding that international partners always looked at inclusion and the NNPC must get expatriates to live and work with it.

He, however, said that Nigerians must learn to thank him for a job well done, saying, “I must say that this country should thank me, and I say that without reservation.

According to him, in the first quarters of 2023, we made N18.4 billion profit and before we acquired OVH, we couldn’t make it.

He added that before now, the NNPC Ltd. struggled to control 15 per cent of OVH, disclosing that now they were now in control of 30 per cent.

Rep.  Hassan Na’laraba, the Chairman of the committee, commended the GCEO for the clarification, adding that they were issues based to wade off corruption.

He said the GCOE could be re-invited for further clarifications because the committee still had a week to submit its report, adding that there was need to have an interface with him in the course of oversight.

Lagos, Sept. 1, 2023: Mr Huub Stokman, the Managing Director of NNPC Retail Ltd.,  has been appointed as the new Chairman of Major Oil Marketers Association of Nigeria (MOMAN).

The association made this known in a statement on Friday in Lagos.

The association  said Olumide Adeosun, the Chief Executive Officer of Ardova Plc and the outgoing Chairman of MOMAN, completed his term on Thursday, Aug. 31.

It said that Stokman who is the Managing Director of NNPC Retail Ltd., will assume the leadership role for the next two years effective from Sept. 1.

The statement read:” Under the guidance of Olumide Adeosun, MOMAN has thrived as a cornerstone of the Nigerian energy landscape, fostering growth, innovation, and collaboration within the petroleum marketing sector.

“MOMAN achieved remarkable milestones during his tenure, advocating for industry excellence, sustainability, and regulatory advancements.

“Olumide Adeosun’s visionary leadership has been instrumental in steering MOMAN through a dynamic period marked by transformative changes in the energy sector.

“His commitment to driving operational excellence, regulatory adherence, and community engagement has set a solid foundation for the association’s future endeavours.”

According to the association , the new chairman, Stokman, brings a wealth of experience to the role.

The group said that as the managing director of NNPC Retail Ltd., he had  demonstrated exceptional leadership in managing complex operations, optimising business strategies, and fostering strategic partnerships.

The association said that his deep understanding of the petroleum retail landscape uniquely positions him to lead MOMAN into the next phase of its journey.

“MOMAN expresses its profound gratitude to Adeosun for his dedicated service and outstanding contributions during his tenure as chairman,” it said.

The association said Adeosun’s legacy would  continue to inspire and guide members as they navigate the evolving energy landscape and pursue new horizons.

“Huub Stokman’s appointment as chairman ushers in an exciting chapter for MOMAN.

“His expertise, vision, and commitment to industry excellence align seamlessly with the association’s mission to drive sustainable growth, advocate for regulatory advancements, and champion the interests of its members,” MOMAN said.

Mr Clement lsong, the Executive Secretary/Chief Executive Officer of MOMAN, was also reappointed for a second term of five years.

According to Isong, MOMAN looks forward to a seamless transition and a new era of innovation and growth under Stokman’s leadership.

He said the association remained  dedicated to promoting the highest standards of business practices, fostering collaboration, and contributing positively to Nigeria’s energy sector and economy.

Abuja, Aug. 17, 2023: The Nigerian National Petroleum Company Limited (NNPC Ltd) and Afreximbank have jointly signed a commitment letter and term sheet for an emergency three billion dollars crude oil repayment loan.

The signing took place on Wednesday in the bank’s headquarters in Cairo, Egypt, according to a statement by the NNPC Ltd.

The deal will cushion the effect of fuel price jump and scarcity of forex, associated with the free float of the naira, in line with President Bola Tinubu’s promise of harmonising various exchange rates.

The naira float had seen the currency plunge from below N500 per dollar on the official exchange windows to a record low of about N900 naira.

Petrol now sells at N617 from the first increment of N540 per litre since May 29, when Tinubu announced that fuel subsidy was gone.

And oil marketers in several reports said there might be another round of pump price increase as crude price further increased in the international market.

On Monday, the National Bureau of Statistics (NBS) reported that Nigeria’s Consumer Price Index (CPI) rose to 24.08 per cent in July from the 22.41 per cent recorded in June 2023.

On this background, the NNPC Ltd in the statement explained that the emergency three billion dollars crude oil repayment loan would provide some immediate disbursement.

It said the disbursement would enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.

Tinubu had on Tuesday assured Nigerians that there will be no further increase in the pump price of petrol, in spite of the fuel subsidy removal.

The president’s reaction through his Special Adviser on Media and Publicity, Ajuri Ngelale to journalists in Abuja followed the announcements by NNPC Ltd that there would be no increase in the pump price of petrol anywhere in the country.

Tinubu, who acknowledged that there were inefficiencies within the downstream sector, contributing to the fuel price controversy, however, assured that loopholes associated with smooth delivery of petroleum products would be addressed without delay.

Labour unions’ had also threatened to embark on strike any moment.

Meanwhile, Mr O’tega Ogra, Senior Special Assistant to the President on Digital/New Media via his twitter handle explained that the deal with Afreximbank would enable NNPC Ltd to defray taxes and loyalties in advance.

Ogra said it would also provide the government with dollar liquidity to stabilise the naira with limited risk.

He further gave an insight saying that the emergency three billion dollars crude oil repayment loan was not a crude-for-refined products swap but an upfront cash loan against proceeds from a limited amount of future crude oil production.

He said it would not pose any risk, adding that the exposure for NNPC Ltd. is very limited, covering just a fraction of their entitlements.

“Additionally, there are no sovereign guarantees tied to this loan,” he said.

On the benefit of the loan to Nigerians, Ogra said it would assist NNPC Ltd. in settling taxes and royalties in advance and also equip the Federal Government with the necessary dollar liquidity to stabilise the Naira, with limited risk.

Ogra said the funds would be released in stages or tranches based on the specific needs and requirements of the Federal Government.

“A strengthened Naira as a result of this initiative will lead to a reduction in fuel costs.

“This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted.

“A stronger Naira will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged,” Ogra added.

The Nigeria National Petroleum Corporation Limited (NNPCL) has dispelled rumours that it has planned to increase the pump price of petrol again.

In  terse statement on Monday, NNPCL said: “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated.

“Please buy the best quality products at the most affordable prices at our NNPC Retail Stations nationwide.’’