NNPCL

Abuja, Feb. 9, 2024: The Nigerian National Petroleum Company Limited (NNPC Ltd.) and Central Bank of Nigeria (CBN) have reviewed the NNPC Ltd’s decision to domicile a significant portion of its revenues and other banking services with the CBN.

The review held during the meeting of the Group Chief Executive Officer of NNPC Ltd, Mallam Mele Kyari, and the Governor of CBN, Mr Olayemi Cardoso at the NNPC Ltd towers on Thursday in Abuja.

A statement jointly signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. and Hakama Ali, Acting Director, Corporate Communications Department, CBN noted the value created by the decision for all parties.

According to Soneye, the development would provide the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.

He said the CBN had provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.

He said both parties also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited.

According to him, the NNPC Ltd. continues to have banking transactions with commercial banks as required.

 Recall that the President had directed that the crude oil sales forex proceeds should be deposited directly to the CBN.

Abuja, Dec. 20, 2023: The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with TotalEnergies for adoption and deployment of Airborne Ultralight Spectrometer for Environmental Application (AUSEA) in its upstream operations.

The agreement is a direct benefit from the Company’s participation at the recently concluded United Nations Climate Change Conference (COP28) in Dubai, UAE.

A statement on Tuesday by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd, stated that with the agreement, the company would be able to deploy the TotalEnergies AUSEA, known as methane detection technology on its upstream operations sites.

This, will ascertain the level of methane emissions from them, with a view to working out emission curtailment measures to help in combating global warming and climate change.

The MoU was signed by  Oritsemeyiwa Eyesan, NNPC Ltd’s Executive Vice President, Upstream,  and Managing Director and Country Chair, TotalEnergies EP Nigeria, Matthieu Bouyer, on behalf of their respective companies.

Putting the deal in proper perspective, the NNPC Ltd’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, said the pilot phase of the TotalEnergies AUSEA deployment would be on NNPC Ltd’s owned operations.

Eyasan added that the deal would enable the company to deploy methane abatement measures.

Other benefits of the TotalEnergies AUSEA technology include identification of unaccounted emission sources, establishment of a basis for querying and improving current emission reporting processes.

It will aid in provision of data to review operational system and implement corrective actions, and estimation of flare combustion efficiency.

The agreement was signed under the watch of the Group Chief Executive Officer (GCEO) NNPC Ltd, Mele Kyari, and Chairman and Chief Executive Officer of TotalEnergies, Patrick Pouyanné.

Speaking at the event, Kyari described TotalEnergies as a great and reliable partner over the years with whom the company was looking forward to exploring greater opportunities in the nation’s energy sector.

On his part, Pouyanné said his company was offering the technology to NNPC Ltd, in keeping with its commitment to promote responsible production of hydrocarbons.

He applauded NNPC Ltd for its successful transition into a limited liability company, stressing that he could feel the energy that the reforms have brought about, not only in the company but also in the sector.

Abuja, Dec. 19, 2023: President Bola Tinubu has urged the Board of the Nigerian National Petroleum Company Limited (NNPCL) to immediately get to work, warning that non-performance would not be tolerated.

Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, in a statement, said Tinubu said this while inaugurating the Board of the NNPCL at the State House, on Monday in Abuja.

Tinubu also said that conducts suggesting a sense of entitlement would not be tolerated, warning that the Board could be dissolved without prior notice to members over non-performance.

“The challenge is corporate governance. Yes, we will improve the security situation. We are working very hard. Sincerely, the Chief Executive Officer, Kyari, is doing very well, and doing all that I know.

“But you could be suddenly dissolved if there is no sustained excellence in performance. It is my honour to inaugurate this Board, which has people of great integrity. I am honoured that we are doing this. I recognize all of you,’’ he said.

Tinubu said corporate social responsibility for the Niger Delta must be taken seriously, considering the devastating effects of oil exploration and exploitation on the environment.

“Niger Delta must be seen as the goose that lays the golden egg, and we must treat that region with the deserved respect and care. It is not asking for too much to ensure quality and constant water supply, schools, medical facilities, and roads.

“It is not about us. It is about the well-being of the entire country and the lifeblood of the nation. We should care more about the environment. We will do more for security to minimise stealing and vandalisation,’’ he stated.

The President directed that more attention should be given to gas as Nigeria transitions to cleaner energy, adding: “We need to show that we are committed to the welfare of our country.

“Take a look at the Petroleum Industry Act (PIA), and know what the pitfalls are. The Cabinet members and Board should decide what we can do differently for production increase, profitability, and governance. It is in your hands. I will work with you,’’ he said.

In his remarks, the Chairman of the Board, Chief Pius Akinyelure, commended the President for the removal of petrol subsidy, noting that the nation would have drowned in debt, but for his decisiveness.

“Our focus is to increase production. We must address the problem of stealing and pipeline vandalisation in the Niger Delta. We are aware of the efforts in the past, but we will do more,’’ he said.

Shettima counsel investors on new opportunities in energy

Abuja, Dec. 19, 2023: Vice President Kashim Shettima has urged domestic and international investors to avail themselves of the new opportunities created by power deficit in the country.

Shettima stated this on Monday at the opening of the financial bid for the privatisation of the five National Integrated Power Project (NIPP) Plants in Abuja.

Represented by the Deputy Chief of Staff to the President (Office of the Vice President), Sen. Ibrahim Hadejia, Shettima said the event serves as a robust assurance to bidders and the start of an investment with promising returns.

He emphasised the need for investors to take advantage of the Federal Government’s bid to drive additional investments in Nigeria’s energy sector.

Shettima pledged the commitment of President Bola Tinubu’s administration to address the country’s energy deficiency.

Similarly, the vice president said that Tinubu’s administration remains focused on enhancing ease of doing business.

“Nigeria’s power deficit extends an open invitation to domestic and international partners. We are here to urge collaborative efforts to craft enduring solutions.

“The government remains resolute in addressing the energy deficiency and is focused on enhancing the ease of doing business.”

The vice president, however, urged prospective investors to “bear the weight of trust in utilizing these resources for the greater good of the nation.”

Shettima implored them to adhere to the highest standards of best practices “if we must pursue a shared objective.

“National Council on Privatisation and the Bureau of Public Enterprises are prepared to ensure that what we do has an effect on President Tinubu’s comprehensive eight-point plan, and a meticulous and transparent privatisation scheme within the power sector inspires confidence in our operations.

“As regulators, our commitment remains steadfast – we must persist as facilitators of these reforms. There are no shortcuts on the path to realizing the dream we’ve promised our beloved nation.”

Shettima noted that the success of the ‘pivotal moment’ underscores government’s commitment, “not just as a friend to our enterprises and investors but also as a facilitator of growth and development.

“We are here to fulfil our pledge to the nation and reassure them of our resolve to support initiatives that foster economic vibrancy and sustainability.”

Lagos, Nov. 28, 2023: Some stakeholders in the oil and gas industry have commended the reappointment of Malam Mele Kyari as the head of the National Petroleum Company Ltd. (NNPCL).

They gave the commendation on Monday in Lagos, while calling for the full commercialisation of the company.

President Bola Tinubu on Monday reappointed Mele Kyari as the Group Chief Executive Officer (GCEO) of the NNPC) Ltd.

Tinubu had also approved the appointment of a new board and management team for NNPCL with effect from Dec. 1.

Dr Omar Ibrahim, Secretary General of the African Petroleum Producers’ Organisation (APPO), described Kyari’s reappointment as “a result of hard work, commitment and efficiency that saw him pushing the Petroleum Industry Bill (PIB) through.

“Kyari also stabilised the NNPCL; I believe the president took the best decision for the NNPCL and for the country.

“It Kyari was who saw to the realisation of the Petroleum Industry Bill (PIB) after many years in limbo.

“He midwifed the NNPCL. He is still working to stabilise the company,” Ibrahim said.

He also said that Kyari had chosen a team of true professionals who were transforming the industry in Nigeria.

Ibrahim noted that during the last forum of CEOs of APPO-Nigerian Oil Companies (NOCs) in Brazzaville, Nigeria’s transformation of its NOC was a subject of discussion.

He explained that the discussion indicated that the NNPCL had the potential to become an exemplary company comparable to the best in the world.

Ibrahim said he expected that the NNPCL would be transformed into a truly international NOC, expanding its operations across Africa, especially in West Africa and Central Africa.

He said Kyari had the focus and understanding to achieve this.

“I know that Kyari understands this area too well,” he emphasised.

He advised Kyari to remain focused and acknowledged that the task ahead would not be easy.

“I wish him Allah’s guidance as he proceeds. And I pray that those who appointed him will support him to succeed by not making impossible demands on him,” APPO secretary added.

Also, Mr Tunji Oyebanji, the Chief Executive Officer of 11 Plc, expressed confidence in the reappointed NNPCL board, especially with Mele Kyari as the Group Chief Executive Officer.

Oyebanji commended Kyari’s experience and knowledge in the industry, stating that Kyari would perform well.

According to Oyebanji, one can expect Kyari to focus on fully commercialising NNPCL and positioning it for a successful future.

He said, “Kyari will put NNPCL in a competitive position among major National Oil Companies like Aramco and PETROBRAS.

“He should maintain open communication and interaction with Upstream, Midstream, and Downstream operators. He should also prioritise transparency and fairness in dealings with various stakeholders.”

He emphasised the importance of ensuring that NNPCL’s growth and success do not come at the expense of other players in the industry.

NNPCL board consists of Chief Pius Akinyelure, Non-Executive Board Chairman, Kyari as the Group Chief Executive Officer, Alhaji Umar Ajiya, Chief Financial Officer, and Mr Ledum Mitee Non-Executive Director.

Others included Mr Musa Tumsa, Mr Ghali Muhammad, Prof. Mustapha Aliyu, Mr David Ogbodo, and Ms Eunice Thomas as Non-Executive Directors.

Abuja, Nov. 28, 2023: President Bola Tinubu has approved the appointment of a new Board and Management team for the Nigerian National Petroleum Company Limited (NNPCL) with effect from Dec. 1.

A statement issued by Chief Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, announced this on Monday in Abuja.

He said that this was in compliance with Section 59 (2) of the Petroleum Industry Act, 2021.

The appointees are: Chief Pius Akinyelure — Non-Executive Board Chairman, Malam Mele Kolo Kyari — Group Chief Executive Officer, and Alhaji Umar Isa Ajiya — Chief Financial Officer.

Others are Mr Ledum Mitee — Non-Executive Director, Mr Musa Tumsa — Non-Executive Director, and Mr Ghali Muhammad — Non-Executive Director.

The rest are Prof. Mustapha Aliyu — Non-Executive Director, Mr David Ogbodo — Non-Executive Director, and Ms Eunice Thomas — Non-Executive Director.

He said that the president also approved the appointment of two Permanent Secretaries.

They are Mr Okokon Ekanem Udo for Federal Ministry of Finance and Amb. Gabriel Aduda for Federal Ministry of Petroleum Resources.

Tinubu urged the appointees to comply with the performance-driven and results-oriented mandate of his Renewed Hope administration in the implementation of energy policy.

“This will monetise all available oil and gas resources of today while paving the way for the total exploitation of new and cleaner energy sources of tomorrow by this distinguished team,” the statement said.

Abuja, July 21, 2023: Facts have emerged from the operations of the NNPC Ltd. Indicating insight into the activities of the company, affirming that the firm actually made a whopping profit of N674.1 billion in 2021.

The new facts appear to contradict some views by notable individuals and institutions on the activities of the company in recent years.

Sources familiar with NNPC Ltd. and its operations said in Abuja on Thursday that the available facts had laid bare some key issues for better understanding of the activities of the company.

One of the sources described the N674.1 billion as the highest profit figure to be recorded by the organisation in its 46-year history.

The source also said that the emerging facts were released to provide current and true information, to redirect and educate the public adequately for a better understanding of issues in the company.

Some highly placed individuals and institutions have pilloried the NNPCL in recent times, “churning out inaccurate information on the operations of the company, to de-market the establishment’’.

The source noted that the development had visibly put the company in the eye of the storm, stoking confusion and misleading stakeholders and the general public on the activities of the company at present.

According to emerging facts, the NNPCL posted its first profit in 44 years in 2020, recording a profit of N287 billion from a loss of N803 billion posted earlier in 2018.

The company had similarly, recorded a loss of N1.7 billion in 2019 before it returned to profit-making in recent years, arising from critical business strategies adopted by the company’s management lately.

The emerging facts detailed what it described as speculative and misleading allegations that needed to be explained for better understanding of the role of the NNPCL in nation building.

It cited what it described as untrue that “the NNPCL has been notorious for befuddled accounting, waste, losses, run-down refineries and non-remittances of cash, due to the federation account’’.

The emerging facts explained that the essence of the making the facts public was to bring out basic truths on various issues agitating the minds of people and to keep the records straight.

It also explained that the NNPCL had posted all its financial statements from 2015 to 2022, noting that certain claims could be verified in the office of the auditor-general of the federation, rather than misinforming the public.

On the allegation that the President Muhammadu Buhari administration wasted $19 billion to rehabilitate four state-owned refineries without result — the same amount the Dangote Group had invested in its 650,000-barrels per-day refinery, the emerging facts described the allegation as an attempt to mislead Nigerians.

“The totality of the spending inclusive of salaries and wages of workers can’t be compared with what it will cost to set up Dangote refinery,’’ a source in NNPC argued.

Another source also shed light on a statement that the Goodluck Jonathan administration had said it would borrow $1.6 billion for Turn Around Maintenance (TAM) but that under Buhari, the NNPCL also borrowed additional $1.5 billion for the same TAM.

The source explained that the figures were wrong, saying that the company, which represented the Federal Government in its efforts to rehabilitate the refineries through an Engineering Procurement and Construction (EPC) contract with its partners had spent only its approved counterpart funding.

It added that the details were clearly spelt out in the memorandum of understanding signed for the respective refineries.

“For the records, the cost approved by the Federal Government for the rehabilitation of the nation’s three refineries are $1.5bn; $740m and $548m for Port Harcourt, Kaduna and Warri refineries, respectively.

“The two EPC contractors are Tecnimont (France), which handles the Port Harcourt Refinery rehabilitation and Daewoo (South Korea) which oversees the quick-fix projects at both Kaduna and Warri refineries.

“Under President Goodluck Jonathan, no money was borrowed for turn-around maintenance. Under President Buhari, only $1 billion was borrowed. Rehabilitation is still on-going.’’

The source also dismissed allegations by a committee of the House of Representatives that the company failed to transfer N2 trillion to the federation account after the Petroleum Industry Act (PIA) came into effect in 2021 and that Buhari unveiled a company worth $64 billion (N28 trillion at N450/$1), but that only $58.8 billion or N26 trillion was transferred.

It disclosed further that the net book value of assets transferred to NNPCL as at July 1, 2022 amounted to $58.8 billion worth of assets and not cash.

“This figure is without the Nigerian Pipeline and Storage Company (NPSC) which has all the depots and pipeline network that was transferred to NNPC in 2022.

“That figure didn’t include NPSC which wasn’t moved initially at the time of being a limited liability company. So how much are we worth in asset?’’

On another allegation by members of the House of Representatives that equipment worth $250 million the NNPC ordered for the Port Harcourt Refinery years ago had not been accounted for, the source explained that over 100 containers with materials meant for the refineries were left to rot at Nigerian Ports.

“This was before Buhari’s administration and it was attributed to the reckless procurement process in the past.

“Things started to change for the better with the rehab programme in 2021. This follow-up also led to the reduction in the cost of turnaround maintenance,’’ according to the source.

Lawmakers had also alleged that NNPC Ltd. had claimed to have 25 subsidiaries, whereas on record only 21 could be accounted for.

However, the source explained that there were 25 subsidiaries in NNPC Ltd. prior to re-organisation.

“All unviable subsidiaries were shut down in a bid to reduce overhead cost and optimise revenue.

“Businesses with duplicated functions were merged for economies of scale and optimisation and new units were created like new energies, leading to reduction in the number of subsidiaries from 25 to 21,’’ the source disclosed.

Abuja, July 21, 2023: High-level sources in NNPC Ltd. have come out in full force, to explain the operations of the company against the backdrop of “blatant misinformation’’ on the activities of the firm.

The gesture is aimed at facilitating better understanding of the activities of the 46-year-old energy giant.

A source in the company said that the essence of the explanation was to highlight some knotty issues that had been misunderstood or misinterpreted by some institutions, individuals and stakeholders in recent years.

On the recent allegation by the Nigeria Extractive Industry Transparency Initiative that Nigeria lost N16.25 trillion to oil theft in the 12 years to 2021 and that the NNPC should quit the downstream, the source dismissed the allegation, saying that oil theft had been a major issue in Nigeria for decades.

“In 2022, production levels fell below one million barrels a day, owing to shut-ins to curtail theft. This denied Nigeria the opportunity to benefit from the rise in crude oil prices.

“But an industry-wide security apparatus launched in 2022, backed by the establishment of the command-and-control centre helped change our trajectory for the better.

“We revamped crude oil production from as low as 900 thousand barrels a day to over 1.6m barrels a day in less than a year.

“And, despite the losses recorded within this period, NNPC Ltd. has continued to meet its obligations to contractors working on major projects and the Federal Government through taxes, ’’ the document stated, in a rare opening up on the activities of the firm.

The source also gave an insight on allegations that Nigeria imported petrol with $11.3 billion in 2021 and that the total annual import bill for all refined products had soared to $28 billion.

The source dwelt further on the allegation made by some analysts and lawmakers that subsidy bill was N3.7 trillion from January to June 2023 and that in 2011, Nigeria `scandalously’ incurred N2.53 trillion on subsidies for real and fictitious products.

Describing the allegations as malicious accusations, the source noted that ongoing reconciliation of the company’s financial transactions would eventually reveal the truth.

“The validation of import and evacuation is done by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Those in doubt should reach out to the regulator or carry out a forensic audit.’’

The source also commented on allegations by oil industry experts, who are complaining that the NNPC is the only major oil company in the world that sells all its crude through middlemen, fuelling illegal arbitrage and corruption as well the company maintaining secret accounts.

According to the source, a new trading company, known as NNPC Trading Ltd. has been established to manage sale of crude oil.

“NNPC as an oil company, owns refineries and a trading arm where you can buy and sell.

“When trading, you can sell to an end-user, which is the refinery and you can decide to sell to someone who can resell to an international company.

“That’s the beauty of buying and selling where you can even take advantage of arbitrage. You as a trader can hedge.

“For instance, if OPEC had said last month that they had decided to curtail volume among OPEC plus producers; as a trader you can now envisage that when it comes close to winter there will be high demand because of heating oil.

It said: “If today as a national oil company I decide to set aside a certain quantity for my refinery and produce some more, I can hedge and trade it for future demand and prices.

“Instead of selling at $80 today, if it will sell at 120 in three months, I could just hedge. People misuse the term middlemen without proper understanding.

“International oil companies like Aramco, Pantamina and even BP reach out to us to come and bid for their cargoes. They also reach out to buy. It’s a willing buyer, willing seller arrangement.

“So we sell crude to our local traders who are also into the business.

“Considering the trade terms, if I were to sell to an end-user with a refinery in Spain, if the terms of payment are not favourable to me, like late payment, which will affect my delivery to shareholders, if I find a Nigerian company willing to pay me in 30 days, I will sell to the Nigerian company and pay my obligation to shareholders.

“This arrangement is probably what they mistake as middlemen,’’ the NNPC source explained.

On calls that President Bola Tinubu should privatise the refineries speedily as the lack of domestic refining was the main cause of the subsidy regime and to foster competition in the downstream the source argued said that NNPC Ltd.’s management was not averse to privatisation.

“We need to bring it back to operational levels to avoid selling it as scrap. The PIA has also said the company would be sold to Nigerians through public offering,’’ the document stated.

The source also commented on allegations that Chinese contractors abandoned the Ajaokuta-Kaduna-Kano Natural Gas Pipeline project, owing to inflation in contract figures.

It explained that the project was initially approved at $2.8 billion and that following the refusal of the Chinese to finance the project, owing to the country’s limitation on external exposure, the NNPC re-engaged OILSERV and Brentex, to convert the contract from BOT to EPC, leading to re-negotiation of the contract to $2.5 billion.

According to the source, the renegotiation of the contract saved some $300 million for Nigeria.

“Since then, NNPC has been funding the contractors with its cash flow to the tune of $1.2 billion.

“The project and construction work has not stopped for one day and out of 614 kilometres of pipes to be covered, 460 kilometres have been welded so far.’’