…Saves FG N92bn Nigerian Electricity Liability Management Company (NELMCO) said that it has concluded the clearing of PHCN liabilities that accumulated before privatising the power sector in 2013, and in the process saved the federal government about N92 billion.
During the presentation of a report on Self-Assessment Tool (SAT) of the Bureau for Public Service Reform (BPSR), the managing director of NELMCO, Mr Adebayo Fagbemi, stated that the bureau awarded a Gold Level Award to the agency for scoring over 86% on its transparent operations and liabilities’ management.
“We have been able to save N89 billion for the federal government with the methodology we put in place, and we saved N1.8 billion with the triangular verification model we put in place. With this, we have saved a total of about N92bn,” he said.
He explained that NELMCO was the first agency to deploy SAT in the power sector, and noted that the strength of the agency derives from other all other agencies in Nigeria. With the proper management of the liabilities, Fagbemi said there were no complaints from power firms about PHCN liabilities affecting their operations.
According to Fagbemi, rather than having NELMCO liabilities increase, the agency has been able to manage it because of the methodologies put in place. The agency also said it had an approved four-year projection on how it would clear all liabilities by 2022 to end its operations.
The Director-General of BPSR, Mr D. I. Arabi, while presenting the NELMCO SAT report said, FG had introduced the tool to enable agencies to understand their strengths and weaknesses, and improve their performance.
He said BPSR validated the report, with NELMCO scoring excellently on the exercise. “The most critical organisation goals were met. We are pleased to give the Gold Level Award – a public service agency that ‘meets expectations’. We have seen a performing MD that works efficiently to manage his human resources very well.”
The permanent secretary, federal ministry of power, Didi Walson-Jack, lauded NELMCO for the feat. “I am glad to know that NELMCO is the first agency that presented itself for this exercise. It is our delight that an agency of the ministry of power has received the gold level certificate,” she said.
A new market-based research has said that in 2019, around 109 GW of new solar PV capacity was added worldwide, about the same as in 2018.
It said that the rapid installations were primarily due to policy support and a sharp decline in technology costs and growing environmental concerns.
Most of the insights in the report, according to Business Wire, are derived from proprietary databases, and offerings. The insights include market data, installation data and capacity additions data, policies and regulations, project data, company profiles, and competitive landscape analysis.
The report said that in the last decade, solar power capacity has grown tremendously to become the fastest-growing source of renewable energy in the world.
However, with the economic downturn induced by the outbreak of COVID-19, demand from the residential PV segment will be severely affected due to the financial uncertainty faced by the customers.
The medium said commercial and industrial installations are expected to be negatively affected as discretionary spending will be delayed, and preserving short-term cash flow will become a priority.
Further, in the utility segment, supply chain disruptions and weaker investment will lead to delays in project commissioning.
According to the publisher, despite the slowdown expected in 2020 due to the corona virus pandemic’s challenges, the outlook for solar remains strong in the medium term, and the market is expected to expand during the forecast period as the cost of generation from solar PV is increasingly becoming cheaper than its alternatives.
The report provides a comprehensive analysis on the historical development, the current state of solar power installation scenario, and its outlook. It also covers market dynamics, growth potential of the photovoltaic (PV) and concentrated solar power (CSP) markets, economic trends, and investment and financing scenario in Nigeria.
Further, the report looks at the current state and assesses the potential of residential, non-residential, and utility-scale solar PV deployment. Special attention is given to depicting the impact of the ongoing COVID-19 pandemic, national solar PV production/manufacturing scenario, and the country’s imports and exports.
The Nigerian National Petroleum Corporation (NNPC) has signed a preliminary agreement to end the dispute with two energy firms, China’s CNOOC Ltd. and Lagos-based South Atlantic Petroleum Co. The NNPC did not however give details of the deal.
The deal Orient Energy Review learnt was signed to settle all disputes regarding the OML 130 Production Sharing Contract.
The national oil corporation said by the signing deal, it is intervening in all disputes relating oil exports involving oil majors on revenue from several offshore oil fields.
In a twitter last weekend, NNPC confirmed the signing of a deal with the firms to “settle disagreements over the production-sharing contract signed on Oil Mining Lease 130.
Both the NNPC and the Department of Petroleum Resources had previously raised cases of “under-declarations” of crude exports against the companies between 2011 and 2014. The NNPC said the deal is “a major milestone towards the resolution of all disputes,” with energy companies operating in Nigeria.
The offshore license holds the Akpo field that started production in March 2009 and the Egina field that started production in December 2018. CNOOC holds 45% interest of OML 130 and SAPETRO holds 15% stake in the block.
Other partners are French Major, Total and Brazil’s Petrobas.
Nigeria also has differences with oil majors including Royal Dutch Shell Plc, Total SA, Eni SpA and Chevron on the quantity of crude exported from their fields.
The Nigerian officials claimed five years ago that the companies either failed to declare or under-declared more than 57 million barrels of oil exports.
But the oil majors, who pump about 80 per cent of Nigeria’s oil output, always denied the allegation. The disputes are currently before a Federal High Court in Lagos, where NNPC is seeking at least $12.7 billion in payments.
Chevron Explores Renewable Base Oil Production Chevron Products Company, a division of Chevron U.S.A. Inc., and Novvi LLC has said that production of 100 per cent renewable base oil is part of the company’s aim to find more reliable, affordable and ever-cleaner solutions that scale.
Last week Chevron announced the first production of 100% renewable base oil from Novvi’s Deer Park, Houston Facility, highlighting its commitment to their investment in and technology development with Novvi LLC.
Chevron Lubricants President, Colleen Cervantes, was quoted in a statement, “This milestone reflects the focus in our partnership despite the recent pandemic-related downturn, and we are excited about the future.”
Chevron is an equity investor in Novvi LLC, a California-based company that engages in the development, production, marketing, and distribution of high-performance base oils from renewable sources. The agreement was announced in 2016, the statement said.
This development is the latest in a series of Chevron announcements signaling its commitment to the energy transition and climate change focused on three areas: 1) lowering carbon intensity cost efficiently, 2) increasing renewables in support of its business, and 3) investing in the future targeting breakthrough technologies.
“Novvi is focused on delivering renewable solutions—essential chemicals and products for the industrial fluids and lubricants markets without trade-offs in performance, price, or availability,” the statement quoted Novvi President and CEO, Jeff Brown.
Chevron is a leading manufacturer of premium base oil and one of the world’s largest suppliers of finished lubricants. It has one of the world’s largest base oil manufacturing platforms through its own refining network and its base oil licensing technology position.
The company said the Chevron-Novvi partnership leverages the complementary technologies of Chevron’s long-standing expertise in hydroprocessing, particularly ISODEWAXING, with Novvi’s innovative use of renewable feedstocks to produce and market high-performance, synthetic and renewable premium base oil.
Chevron markets ISODEWAXING technology worldwide through its joint venture partnership with Lummus Technology, Chevron Lummus Global, and has a long history of leadership in enabling premium base oils production for the lubricants industry since its invention in 1993.
The unique production process and molecules are expected to offer even higher performance than conventional and synthetic base oils, with the advantage of being produced from renewable feedstocks.
Novvi has developed renewable products through its technology platform that are also applicable in plastics, rubber, personal care, wax, and electric vehicle fluids. The invention and scale of this technology is designed to provide more choice to manufacturers aiming to improve performance and reduce the carbon intensity of their products.
Chevron Products Company, a division of Chevron U.S.A. Inc., is a wholly-owned subsidiary of Chevron Corporation, one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, Chevron Corporation is involved in virtually every facet of the energy industry.
The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company’s operations.
…Experts say global oil market still faltering This week, the Organisation of Petroleum Exporting Countries (OPEC) will likely resume some of the crude output halted during the depths of the pandemic. World Oil said in a report yesterday that this comes on the heels of a faltering recovery in global oil demand amid the resurgence in coronavirus.
While this poses a particularly delicate challenge for the OPEC cartel and its partners, the alliance is eager to ramp up oil sales after successfully reviving prices. The relapse in the world economy means that extra supply is arriving at a fragile moment, and could send the market lower again.
World Oil quoted Alex Booth, head of research at market intelligence firm Kpler SAS, “We’re in quite a finely balanced place in terms of the scope to increase production. You have to have quite a bullish view on the demand recovery to be able to justify any significant increase.”
The OPEC+ alliance led by Saudi Arabia and Russia — took a record 9.7 million barrels of daily output, or roughly 10% of global supply, offline when demand plunged over the spring. They intend to restart about 1.5 million barrels next month. In theory, it’s reasonable for the 23-nation coalition to open the taps a little.
Their stringent cuts have almost tripled international crude prices from the lows struck in late April, lifting Brent crude futures to $43 a barrel. That’s thrown a lifeline to countries reliant on energy sales to finance government spending, and companies like Exxon Mobil Corp. and BP Plc.
Global oil markets have swung into deficit after months of surplus, with demand exceeding supply in July by about 2 million barrels a day, according to Rystad Energy A/S, a consultant based in Oslo. That’s paring some of the inventory glut amassed during the first half of the year.
The inventory decline for the quarter as a whole could be twice as steep, averaging 4.4 million barrels a day, even if OPEC+ revives production, according to the International Energy Agency in Paris.
Yet, there are signs the tightening of the market is beginning to slacken, the report said. “The markets are gradually recovering, but there are two major uncertainties,” Fatih Birol, the IEA’s executive director, said in an interview. “One is the shape of the economic recovery globally, and in some of the key areas. And the second one is whether or not we are going to see a second wave of coronavirus.”
The death toll has reached a record 150,000 in the U.S., where the economy suffered its sharpest downturn since at least the 1940s in the second quarter. Gasoline demand remains well-below average despite even as the summer peak approaches, while data from TomTom Traffic Index show that road traffic in cities such as Los Angeles and Miami is less than half pre-pandemic levels.
In Asia, countries that successfully suppressed the first wave of infections, such as Hong Kong, are struggling to contain new outbreaks.
All of which is keeping inventories bloated. The world’s largest independent oil storage company, Rotterdam-based Royal Vopak NV, says that it’s almost run out of available space. Rystad predicts supply will exceed demand by 700,000 barrels a day next month, and by 2 million a day in September.
Prices are wilting in response. The rally that more than doubled Brent futures since late April has lost momentum, leaving the international benchmark stuck near $40 a barrel. It was down 2.6% at 4:51 p.m. London time on Thursday following weak U.S. economic data. A discount on early deliveries, which OPEC sought to eliminate, has only deepened.
“OPEC’s experiment to increase production could backfire as we are still nowhere near out of the woods yet in terms of oil demand,” said Bjornar Tonhaugen, the consultant’s head of oil markets. “The balances look to be heading towards a mini supply glut for the next three to four months.”
Saudi Arabia says the impact of its own extra production will be neutralized as it burns the additional barrels at home, where demand for air conditioning surges during the summer. It is also pressing OPEC’s habitual quota cheats, like Iraq and Nigeria, to refrain from increasing production now as a gesture of atonement.
If that doesn’t work, OPEC+ could always rethink its current course. Key ministers from the coalition will hold a monitoring meeting on Aug. 18. “If oil prices suddenly do tank to the low $30s or something, that would not be tolerable for Riyadh,” said Tonhaugen. “If there is this glut in the next month or two, we might see OPEC+ throttle back a little bit.”
The Nigerian National Petroleum Corporation (NNPC) has confirmed that the total revenue generated from the sales of white products in May 2020, stood at ₦2,393.88billion, where PMS contributed about 98.84% of the total sales with a value of ₦2,366.15billion.
According to the NNPC Monthly Financial and Operations Report (MFOR), during the month under review, N92.58 billion was realized from white (refined) products in the month of May, 2020 by Petroleum Products Marketing Company (PPMC).
The report further said the sales came from 950.67million litres of PMS only with no Automotive Gas Oil (AGO) or Dual Purpose Kerosene (DPK), adding that there was no sale of special product in the month.
Total sale of white products for the period May 2019 to May 2020 stood at 19,865.80million litres and PMS accounted for 19,704.49million litres or 99.19 per cent.
It stated that 950.67million litres of white products were sold and distributed by the corporation’s downstream subsidiary, during the month in review.
In the gas sector, natural gas production in May 2020 increased by 2.38 per cent at 226.51Billion Cubic Feet (BCF) compared to output in April 2020; translating to an average daily production of 7,480.36million Standard Cubic Feet of gas per day (mmscfd).
Likewise, the daily average natural gas supply to gas power plants increased by 5.87 per cent to 834mmscfd, equivalent to power generation of 3,128MW. The report stated further that the Group’s operating revenue, compared to April 2020’s, increased by 15.33% or N31.68billion to stand at N238.33billion, while expenditure for the month decreased by 0.76% or N1.81Billion, to stand at N235.66billion.
The May 2020 report indicated a trading surplus of ₦2.68billion compared to the ₦30.81billion deficit posted in April 2020 when the effect of COVID-19 was at the peak, leading to reduced demand with fluctuating prices.
The NNPC report said the 109 per cent upturn in revenue this month is the cumulative result of improved performances by some of the corporation’s Strategic Business Units.
While the Nigerian Petroleum Development Company (NPDC) posted a surplus due to substantial growth in the market fundamentals as demand began a slight recovery; the Nigerian Gas Marketing Company (NGMC) recorded 257 per cent increased profit attributed to improved debt collection.
PPMC’s surplus rose 250% from investment dividend received and significant drop in average product landing cost. Corporate Headquarters deficit ebbed by 47% in May, compared to the preceding month.
NNPC Retail, Integrated Data Services Limited (IDSL), NNPC Shipping and Ventures also contributed positively to the month’s performance, leading to the significant NNPC Group surplus position during the period under review.
NNPC said it recorded an encouraging 43% drop in cases of willful damage of its oil pipeline infrastructure by suspected oil thieves in May, 2020, highlighting that 37 pipeline points were vandalized representing about 43% decrease from the 65 points recorded in April 2020.
The Mosimi-Ibadan pipeline axis accounted for 38% of the vandalized points while Atlas Cove—Mosimi axis recorded 19% of the breaks. Suleja-Kaduna logged 16% of the breaks, while other locations make up for the remaining 27%
Shell companies in Nigeria have over the years shown atypical commitment to the growth and development of Nigerian economy as well as the Nigerian people.
Over the decades, Shell through its various social investment programme continued to stimulate economic growth and improved quality of life for Nigerian people.
In its 2020 Nigerian Briefing Notes, Shell disclosed that its social investment in Nigeria in 2019 stood at $40 million. It stated that the investments were done through its three subsidiaries – Shell Petroleum Development Company (SPDC), Shell Nigeria Exploration and Production Company (SNEPCO), and Shell Nigeria Gas (SNG).
According to the multination oil and gas company, this makes Nigeria the largest concentration of social investment spending in the Shell Group. It stated that the investments were channeled in the provision of access to affordable healthcare, supporting education, enterprise support, accelerating access to energy, assistance and safety.
Shell further explained that while $40 million went into direct social investment in 2019, it equally invested $252 million into community-driven programmes with 667,000 people benefiting from its mobile health outreach. It also disclosed that it has given out 6,000 university grants since 2011.
According to Shell, Nigeria is a thriving and vibrant country, offering opportunities for people to improve their livelihoods, adding that the scale of the opportunity was mirrored by the scale of the challenges to provide affordable energy, education, healthcare and conditions for local businesses to grow.
The multinational company hinted that it undertake two types of social investment activities – direct social investment across Nigeria. This, it said focuses on community and enterprise development, education, community health, access-to-energy, road safety and since 2018, biodiversity.
The second type of Shell’s investment is the community-driven development programmes and initiatives in the Niger Delta. In this, the choice and type are determined by benefitting communities and delivered through a Global Memorandum of Understanding (GMoU).
Active GMoUs
There are 39 active GMoUs in Abia, Bayelsa, Delta, Imo and Rivers States. “In 2019, three new GMoUs were deployed and 10 GMOUs renewed. The GMoUs provide a secure five-year funding for communities to implement development projects of their choice.
“GMoU projects cover community health, education, enterprise development and social infrastructure, such as improved water and power supply, and sanitation. Since 2006, a total of $252 million has been disbursed to communities through these GMoUs.”
Healthcare Support
For Shell, affordable quality healthcare is a critical enabler to any community. It improves health indicators and outcomes, strengthens families, educational attainment and business opportunities, it reiterated.
“Shell has supported community health programmes in Nigeria since the 1980s with equipment and pharmaceutical donations, emergency care and screening services, hospital maintenance and focused interventions on HIV/AIDS, malaria, cancer and vision care.
“Shell continues to work with key stakeholders to achieve universal health coverage by increasing access to health and the uptake of services in the communities.
The SPDC JV and SNEPCo support 20 healthcare centres and signature intervention projects throughout the country. They include: Health-In-Motion community care programme, Community Health Insurance Scheme, and Oloibiri Health Programme (OHP)
Health-in-Motion (HIM) is a mobile health outreach programme that takes free medical services to where people live and work. Funded by the SPDC JV and SNEPCo, it reaches an average of 50 communities annually.
“In 2019, HIM services benefitted 27,490 individuals in Imo, Bayelsa, Delta, Rivers and Ogun States. Since its launch in 2010, more than 667,000people have benefitted from the programme”
Community Health Insurance Scheme
The Community Health Insurance Scheme (CHIS) is a partnership between SPDC, Rivers State Government and local communities. The programme aims to provide affordable, quality healthcare to the people of Rivers State.
Launched in 2010 at Obio Cottage Hospital, CHIS costs individuals $30 per year and covers about 95% of people’s health care needs. Since 2010, more than 67,000 people have been enrolled.
“In 2019, nearly 8,500 new clients registered. The hospital has also seen an increase in the uptake of services. For example, the average number of patients using the facility increased from about 600 at inception to about 7,700 per month in 2019, making Obio one of the most utilised health facilities in the region.
This successful pilot has now been expanded to three other locations, highlighting the possibility for extended healthcare coverage in Nigeria.
Oloibiri Health Programme (OHP)
“The Oloibiri Health Programme is a Shell-sponsored local government initiative in the Ogbia area of Bayelsa State. It is designed to improve health outcomes in an innovative and holistic way. The initiative included a full refurbishment of the Kolo General Hospital, which was inaugurated in July 2019.
“The programme has seen a five-fold increase in service utilisation to 4,210 patients in 2019 from an average 833 patients in 2017. It has also provided training for over 130 health workers at community, local and state government levels. In addition to this, it has trained 117 volunteers as facility-based extension workers in house-to-house healthcare.
“To anchor the sustainability of the OHP, the initiative aims to establish the Oloibiri Health Foundation that will institute the Ogbia Health Insurance Scheme akin to the scheme in place at the Obio Cottage Hospital.
“The scheme will be launched with a one-time contribution from Shell and the Bayelsa State Government.”
Support in Education
Reiterating the key role of education in the overall development of Nigeria, Shell said, “Educating Nigeria’s young population is critical to the success of the country. Shell Companies in Nigeria have along history of supporting education through scholarships and other initiatives.
“Since the 1950s, the Shell scholarship schemes have supported several thousands of students many of whom are among Nigeria’s business, political and social leaders.
“In 2019, the SPDC JV and SNEPCo invested $7.8 million in scholarships. Since 2011, the schemes have awarded more than 9,400 secondary school grants and over6,000 university grants to students.
Shell Education Support
Industrial Work Experience Programme.
The Shell Niger Delta Post Graduate scholarship programme was established to promote the emergence of industry-ready graduates at university level. It offers one-year scholarships to three UK universities for studies related to the oil and gas industry.
This is in addition to Shell’s investments in specific initiatives at Nigerian universities such as the SPDC JV funding of Centre of Excellence (CoE) in Geosciences and Petroleum Engineering. It has also collaborated with the Rivers State University to set up a CoE, which specialises in Marine and Offshore Engineering.
“The CoEs offer specialized post-graduate degrees in Geosciences, Petroleum Engineering and Marine and Offshore Engineering respectively. Each programme lasts for 18 months and culminates in a six-month internship with an oil and gas company, some within Shell.
“By the end of 2019, over75 students had graduated from the programmes and over 81% of these graduates are currently employed, the report revealed.
Enterprise Support
In the area of Enterprise support, the multinational oil and gas company said: “Shell works to improve the chances for Nigerians to achieve their ambitions. In addition to providing access to loans to small and medium businesses which could become Shell suppliers and contractors, there is also the LiveWIRE youth enterprise development programme.
“LiveWIRE was launched in Nigeria in 2003 and provides training and finance to young people between the ages of 18-35 to start or expand their own businesses.
“In 2019, 140 people benefitted from the LiveWIRE programme, receiving training in enterprise development and management, as well as business start-up grants. More than 7,000 Nigerian youths have so far been trained under the programme and almost 4,000 young entrepreneurs were provided with business grants
Assistance and Safety
In humanitarian assistance, it stated that “for many years, Shell has sustained a culture of care by supporting humanitarian programmes in Nigeria to save lives, especially during crisis and disaster. In 2017, a contribution of more than $3 million to the
“Mercy Corps and Family Health International programme benefitted over 70,000 displaced persons in north eastern Nigeria. Then in 2018, SPDC provided relief materials worth $1 million to communities hit by floods in the Niger Delta and two other severely impacted states in the country.
In road safety and firefighting, it said “in 2019, SNG continued to demonstrate its commitment to road safety in Nigeria by extending existing collaboration with the Federal Road Safety Corps in Ogun State to Rivers State.
“The campaign has held 26 road safety awareness events and reached more than 5,000 people since its launch in 2007.
“SNG also held a one-day hydrocarbon training for firefighters from Abia and Ogun States to further strengthen their capability.”
Humanitarian Relief in the North East
Since 2018, SPDC and SNEPCo have committed $6 million to the government-driven strategic intervention projects for Internally Displaced Persons (IDP) in Yobe and Borno States.
The projects it said focus on immediate relief and critical support development related to health, water and sanitation, education and shelter.
“By the end of 2019, the SPDC JV and SNEPCo completed the distribution of food, essential hygiene kits and other relief items to over 5,500 vulnerable households in IDP camps and impacted communities.
“SPDC also commenced project work on school reconstruction, and teacher training, upgrading of a Primary Health Care Centre and water and toilet facilities in Yobe State.”
Accelerating Access to Energy
According to Shell, enterprise development, opportunities for education and access to affordable healthcare hinge upon being able to have reliable and cost-effective energy.
It however, noted that despite Nigeria’s oil and gas resources, the country has one of the highest levels of energy poverty in the world.
As result, Shell hinted that it targets to provide a reliable electricity supply to 100 million people, primarily in Africa and Asia by 2030. Nigeria features in that vision.
“In addition to investing in Nigeria’s gas development and distribution network, Shell has established All On to boost off-grid supply to homes and small businesses in the Niger Delta.
“All On, an impact investing company, became operational in 2017 and is an independent Nigerian company that works with partners to increase access to commercial energy products and services. In December 2019, Shell made a significant additional long-term financing commitment to All On.
“Nigerians deserve more reliable energy. Positive change is coming. Already, All On has invested in 21 off-grid energy companies and two funds, leading to 21,000 new connections for low income households and businesses. The journey is just beginning,” the report stated.
The Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari have applauded Rainoil Limited for its efforts in deepening in-country gas utilization.
Speaking at the launch of Rain Oil Liquified Petroleum Gas (LPG) facility with a tank capacity of 8000MT and a fleet capacity of about 40 LPG trucks on Friday, the Minister commended Rainoil for partnering with the government in gas utilization and development of the gas sector in the country.
The Minister described Rainoil as a leading integrated company operating in the downstream sector of the Nigerian oil and gas industry. He said that Rainoil is working in tandem with the vision of the federal government, in making gas a preferred fuel in the country.
‘I am excited at what I am seeing here today. Everything can speak for itself. As you can see, energy is very important in the global economy. I am glad that Nigerian’s are playing key roles in the oil and gas industry.
He noted that Rainoil’s investment in gas development aligns with President Buhari’s agenda in the National Gas Expansion Programme (NGEP), adding that the government has declared 2020 as “the year of gas”.
He stated that the country has sufficient gas reserves to meet its energy needs and was happy to see Rainoil align with the governments drive to deepen LPG penetration and attain 5 Million MT of LPG consumption by 2022.
Reiterating that Nigeria is a net importer of petroleum products, Kyari announced that NNPC is ever ready and willing to support all the companies that are making effort in accomplishing the federal government developmental agenda.
‘We believe that gas is our next instrument for developing our economy, and we commend Rainoil in its effort in ensuring the use of gas in the country.
Earlier in his speech, the Group Managing Director, Rainoil Limited, Dr. Gabriel Ogbechie said that the decision to invest in growing the LPG sector started in 2018.
According to him, ‘Rainoil GaS will meet the energy needs of customers at the retail end in the coming months. There are filling plants in process where LPG can be supplied in cylinders to consumers’.
Ogbechie believes that the expansion of Rainoil Limited perfectly aligns with the company’s vision and mission to continually proffer solutions to fill the voids in the energy sector.
He hinted that Rainoil Gas will provide direct and indirect employment opportunities, including training, skills acquisition and enhancement. Its operations also have an added environmental protection benefit as it reduces gas flaring and encourages the use of cleaner fuels
He said that Rainoil Limited has grown over the last 20 years to include: 3 ultra-modern petroleum product storage depots- 50 million litre capacity each in Delta State, Cross River State and Lagos State; over 81 retail outlets across the country; a fleet of over 100 tank trucks for efficient delivery of products and 1 shipping vessel with a total capacity of over 20,000 metric tonnes.
Rainoil Limited remains a wholly indigenous company.
The National Oil Spill Detection and Response Agency (NOSDRA) disclosed that the value of gas flared by oil and gas companies from January to June 2020 worth about $445.7m.
NOSDRA stated that 222.8 billion standard cubic feet (bscf) of gas was flared during the period.
This was contained in a report by the agency as parts of effort by the federal government to utilize gas and curb gas flaring in the country.
According to NOSDRA, the $445.7 million represents the fine accruable to the government from the flare of $222.8bscf of gas.
The gas flare tracker report showed that in the six months period, the majority of the flares were from onshore oil and gas sites, which accounted for 60.9 per cent of total gas flared, while offshore sites accounted for 39.1 percent of the total.
The report indicated that 135.8 billion standard cubic feet of gas was flared on the onshore sites in the six months period, while 87 billion standard cubic feet of gas was flared offshore.
On the impact of the flares to the environment, the report further stated that the volume of gas flared in the six-month period is an equivalent of 11.8 million tonnes of carbon dioxide (CO2) emissions, and is capable of generating 22,300 Gigawatts-Hour (GWh) of electricity.
The breakdown showed that the 135.8 billion SCF of gas flared onshore, is valued at $475.5 million, an equivalent of N171.18 billion; would fetch a penalty of $271.7 million, an equivalent of N97.81 billion; translated to 7.2 million tonnes of CO2 emissions and capable of generating 13,600 GWh electricity.
At the onshore sites, the NOSDRA report stated that Delta State suffered the most from this practice in the six-month period, as it accounted for 38.4 percent of total gas flared onshore and 23.4 percent of total gas flared offshore.
It was disclosed that 52.2 billion SCF of gas was flared by the oil and gas companies operating in Delta State, translating to CO2 emissions of 2.8 million tones and an equivalent of 5,200 GWH of electricity. The volume of gas flared in the state is valued at $182.6 million and would fetch the companies, penalties of $104.4 million.
Rivers State followed with 38.5 billion SCF of flared gas, valued at $134.9 million; Bayelsa recorded gas flare totaling 27.1 billion SCF valued at $94.7 billion; while 9.9 billion SCF of gas was flared in Edo state, valued at $34.5 million.
Imo State recorded 6.0 billion SCF of flared gas valued at $21.1 million; Akwa Ibom 1.8 billion SCF, valued at $6.3 million; Abia 357.5 million SCF valued at $1.3 million and Anambra, 23.2 million SCF valued at $0.08 million.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, has said that more private and public sector collaboration will be encouraged as Nigeria steps up effort to realise its target of boosting domestic gas utilisation.
Sylva made this known on the Twitter account of the Nigerian National Petroleum Corporation (NNPC) on Friday while inaugurating the Rainoil Limited Liquefied Petroleum Gas (LPG) facility with a tank capacity of 8,000MT in Ijegun, Lagos.
He said the facility which also has about 40 LPG trucks would help to deepen cooking gas penetration in the country in line with the vision of the Federal Government.
Sylva said Rainoil Limited had strengthened its partnership with the government in gas utilisation and development of the gas sector in the country with the establishment of the facility.
He said : “Rainoil is really working in tandem with the vision of the federal government, in making gas a preferred fuel in the country.
” I am excited at what I am seeing here today. Everything can speak for itself. As you can see, energy is very important in the global economy and I am glad that Nigerian’s are playing key roles in the oil and gas industry.”
Sylva noted that Rainoil’s investment in gas development aligns with President Buhari’s agenda in the National Gas Expansion Programme (NGEP), adding that the government has declared 2020 as “The Year of Gas”.
He said Nigeria had sufficient gas reserves to meet its energy needs as the government intensifies efforts to deepen LPG penetration and attain five million MT of LPG consumption by 2022.
Speaking at the inauguration, Mr Mele Kyari, Group Managing Director NNPC said the corporation was ready and willing to support all the companies that are making effort in accomplishing the federal government developmental agenda.
We believe that gas is our next instrument for developing our economy, and we commend Rainoil in its effort in ensuring the use of gas in the country, ” Kyari said.
On his part, the Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, said that the decision to invest in growing the LPG sector started in 2018.
Ogbeche said : “Rainoil Gas will meet the energy needs of customers at the retail end in the coming months. There are filling plants in process where LPG can be supplied in cylinders to consumers.
” The expansion of Rainoil Limited perfectly aligns with the company’s vision and mission to continually proffer solutions to fill the voids in the energy sector.
“Nigeria has the fastest growing LPG sector in the world with a projected LPG market size of $10 billion, with the domestic demand seeing an increase of 40 per cent.”
He said the company would continue to support the government’s policy on deepening LPG penetration and will improve domestic consumption of LPG nationwide.
According to him, the business will increase domestic storage flexibility of LPG and provide direct and indirect employment opportunities, including training, skills acquisition, transfer and enhancement.
He said its operations also have an added environmental protection benefit as it reduces gas flaring and encourages the use of cleaner fuels.
Oriental Energy Resources Limited, an indigenous oil producer in Nigeria, has donated food items to its host communities in Mbo Local Government Area, Akwa Ibom State, to cushion the effects of COVID-19 pandemic.
According to the company’s Head of Community and Government Relations, Dr. Uwem Ite, the food distribution was part of company’s initiatives to alleviate the hardship caused by the pandemic in the communities.
He made this disclosure at the presentation of the palliatives to the state government.
statement quoted Ite to have said: “Distribution of the palliatives consisting of rice, garri and vegetable oil is one of the many areas in which Oriental Energy plans to support the social development efforts of the state government this year.”
Receiving the food items on behalf of Akwa Ibom State Government, Secretary to the State Government and the Chairman of the State COVID-19 Management Committee, Dr. Emmanuel Ekuwem, expressed gratitude to Oriental Energy for the gesture, saying: “On behalf of the State Governor, Mr. Udom Emmanuel, we appreciate the gesture of Oriental Energy Resources Limited. The Governor oversees everything that goes on in the state as far as the COVID-19 pandemic is concerned, little wonder that the Director General of Nigerian Centre for Disease Control, Dr. Chikwe Ihekweazu, commended the Governor for making the state a reference point in the fight against the coronavirus pandemic”.
Ekuwem, emphasised that Governor Emmanuel was resolute in his commitment to salvage the state from the viral disease and as such put facilities in place to ensure that the life of no Akwa Ibom person or resident was lost on account of the pandemic.
He said the state-of-the-art Isolation Centres, the PCR Laboratory, Emergency Operations Center, as some of the commendable programmes of the Administration to contain the spread of the virus in the State.
Also, on hand to receive the Oriental Energy delegation was the Commissioner for Information and Strategy, Mr. Ini Ememobong and Commissioner of Health, Prof.Augustine Umoh.
While expressing his appreciation, the Chairman of Mbo Local Government Area, Mr. Asuquo Eyo said, “Oriental Energy is the only company operating with a human face in Mbo LGA.”
At the community level, Oriental Energy team was received by the people of Effiat during the handing over of the food items for distribution to the respective families and households in Effiat communities. Chief Mathais Okon Nta, Chairman, Effiat Clan Council of Chiefs, led other members of Effiat Clan Council to appreciate and receive the food items from Oriental Energy delegation.
Earlier, Oriental Energy team paid a courtesy visit to the Paramount Ruler, Mbo Local Government Area, His Royal Majesty, Ogwong Okon A. Abang. The Royal Father was informed that the distribution of the food items comes on the heels of the company’s 2020/2021 University Scholarship Scheme targeted at supporting eligible students from Akwa Ibom State, particularly indigenes of Effiat and Mbo communities.
In Akwa Ibom, Oriental Energy Resources concentrates its social investments on education, community health and enterprise development. In 2019, more than 4,000 people including children benefited from its annual medical outreach in Mbo Local Government Area. Similarly, several students from the same communities have benefitted from yearly scholarships since the award scheme commenced in 2009.
The oil firm has recently completed a multi-purpose printing and reprographics facility located at Enwang. Construction work at a science laboratory complex at Community Grammar School, Ebughu in Mbo LGA, is in advanced stages of completion. The solar-powered building and associated infrastructure will be provided with WAEC-standard equipment and accessories for the study of Biology, Chemistry and Physics.
The international oil benchmark, Brent crude, rose on Wednesday to its highest since early March after a large decline in the United States’ crude inventories and supported by a weak dollar.
Brent, which plunged to as low as $15.98 per barrel in April, its lowest since June 1999, has continued to rise in recent months on the back of the production cuts by the Organisation of Petroleum Exporting Countries and the gradual easing of lockdowns by many countries.
But mounting coronavirus infections had investors worried about the demand outlook, according to Reuters.
Brent, against which Nigeria’s crude is priced, was up $1.51, or 3.4 per cent, at $45.94 a barrel by 11:13 a.m. ET. US West Texas Intermediate rose by $1.52, or 3.7 per cent, to $43.22 a barrel.
US crude inventories fell by 7.4 million barrels in the week to July 31 to 518.6 million barrels, the Energy Information Administration said. That exceeded the draw of three million barrels analysts predicted in a Reuters poll.
A weaker dollar, which makes oil cheaper for holders of foreign currencies, also supported prices.
“There’s no escaping the benefits of a weaker dollar in the commodity space and oil is certainly basking in its decline,” senior OANDA analyst, Craig Erlam, said.
Oil also drew support from signs that talks between Democrats in Congress and the White House on a new coronavirus relief package are making progress, although the sides remain far apart.
US factory data this week also showed an improvement in orders, which some analysts took as a hint of economic recovery.
The Independent Petroleum Marketers Association of Nigeria, South-West chapter has been directed its members to to sell Premium Motor Spirit, aka fuel at N150 per litre in their filling station.
The new price represents a N5 increment from the official pump price of N145.
IPMAN South-West Zonal chairman, Alhaji Dele Tajudeen, on Thursday, said the directive became necessary in order to avert the planned shutdown of the filling stations across the zone.
According to Tajudeen, the decision was in response to the new price regime announced by the Petroleum Product Pricing Regulatory Agency.
He said, PPPRA had increased the depot price of the product from N133.72k to N138.62k without consulting with other critical stakeholders like IPMAN.
Condemning PPPRA for what he described as “policy inconsistency”, Tajudeen lamented that PPPRA’s new depot price has subjected IPMAN members to a serious dilemma.
He said that IPMAN zonal Executive Committee arrived at the conclusion of increasing the pump price to N150 after careful deliberations and consideration of many factors. Adding that instead of joining saboteurs in creating artificial scarcity of the product, the zonal executive thought it wise to increase the price.
The Downstream Subsidiary of NNPC, Petroleum Products Marketing Company had on Tuesday, in a memo signed by its Manager, Sales, Mohammed Bello, fixed ex-Depot of petrol to N138.62 per litre with effect from August 5, 2020.
Tajudeen said, “After careful deliberations and consideration of many factors, the IPMAN Zonal officers hereby declared that all its members should henceforth increase their pump price to N150 and shelve the plan of total close down of petrol stations across the South West.
“The PPPRA is inconsistent and unorganised in dealing with the stakeholders. The normal thing to have done was to involve marketers, and other parties before announcing any increment.
“Even after announcing the new ex-depot price, they should have fixed the pump price for marketers to prevent unnecessary debt.
“It is very disheartening to hear that a new price regime is coming to effect, without considering the plight of marketers who bought these products at an expensive price.”
The ADIPEC Strategic and Technical Conference will take place virtually between November 9 and 12, 2020, DMG Events, the organiser of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) has announced.
This follows a directive from Abu Dhabi’s Department of Culture and Tourism that events should not take place in light of Covid-19 restrictions. The next full in-person annual exhibition and conferences will take place from 8-11 November 2021.
ADIPEC’s chairman, Omar Suwaina Al Suwaidi, said: “Despite COVID-19’s global challenge, we are delighted that ADIPEC’s strategic and technical conferences will be held virtually this year, allowing leaders across the oil and gas industry to come together to share ideas and connect with a range of major industry trends, challenges and opportunities.
“All ADIPEC participants’ health and welfare is our highest priority, and we look forward to welcoming all visitors to the full exhibition and conference in person at ADIPEC 2021. Looking to the future, collaboration, technology, and innovation will be crucial levers as we continue to identify new opportunities for smart growth across the global energy landscape.”
The virtual conference will bring together ministers, CEOs and leaders of the global industry to evaluate the collective measures that the industry is putting in place to continue recovery after COVID-19.
Dmg Events Global Energy President, Christopher Hudson, said: “We are committed to ensuring ADIPEC remains at the heart of the global oil and gas landscape, driving forward the conversations, collaborations, and connections that address key challenges and fuel innovative ideas and strategies that shape the industry.
“By staging a concentrated and abridged virtual conference programme this year, ADIPEC will utilise cutting-edge technology that has evolved exponentially over the past four to five months, to ensure the industry and its community has a voice to discuss and share the learnings of this year and into the future.”
ADIPEC is a leading global event for the oil and gas industry. Attracting more than 155,000 attendees and 2,200 exhibitors in 2019, the event brings together Energy Ministers, global CEOs and leading decision makers alongside the businesses that shape the future of oil and gas supply across four days of focused commerce, dialogue and knowledge transfer that address today’s energy needs and define tomorrow’s energy landscape.
Climate financing by seven of the world’s largest multilateral development banks (MDBs) totalled $61.6 billion in 2019, the African Development Bank has revealed.
According to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance, $41.5 billion (67%) was in low- and middle-income economies,
The study expands the scope of reporting for the first time to all countries with multilateral development bank operations. It now provides data on MDB climate finance commitments beyond those directed solely at developing and emerging economies, but with the focus remaining on low- and middle-income countries.
This year the report combines data from the African Development Bank, the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB Group), the World Bank Group (WBG).
The Islamic Development Bank (IsDB) joined the working group first time in October 2017. In 2019, the Asian Infrastructure Investment Bank (AIIB) also joined MDB working groups, and its data is presented separately within the current report.
The 2019 report shows that $46.6 billion, or 76% of total financing for the year, was devoted to climate change mitigation investments that aim to reduce harmful greenhouse gas emissions and slow down global warming. Of this, 59% went to low- and middle-income economies.
The remaining $15 billion, or 24%, was invested in adaptation efforts to help countries build resilience to the mounting impacts of climate change, including worsening droughts, extreme flooding and rising sea levels. Ninety-three percent of this finance was directed at low- and middle-income economies.
Additional climate funds channelled through MDBs, such as the Climate Investment Funds (CIF), the Global Environment Facility (GEF) Trust Fund, the Global Energy Efficiency and Renewable Energy Fund (GEEREF), the European Union’s funds for Climate Action, and the Green Climate Fund (GCF), play an important role in boosting MDB climate financing.
In 2019, the MDBs report a further $102.7 billion in net climate co-finance – investments from the public and private sector – taking the total of climate activity financed in the year to $164.3 billion.
The MDBs have reported on climate finance since 2011, based on a jointly developed methodology for climate finance tracking.
The 2019 edition of the Joint Report on MDBs’ Climate Finance is published in the midst of the COVID-19 pandemic, which has caused significant social and economic disruption, temporarily reducing global carbon emissions to 2006 levels.
Dr. Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank, noted: “Our investments that contribute to the goals of the Paris Agreement continue to grow. The climate finance provided by the Bank increased from $3.2 in 2018 to $3.5 billion in 2019 – representing 35% of total project approvals worth $10.2 billion.” The largest climate finance investments were made in the energy, agriculture and transport sectors.
Importantly, the Bank exceeded its target of achieving parity between adaptation and mitigation finance by allocating 55% of its climate finance resources to adaptation and 45% to mitigation, whereas globally more than 70% of climate finance is allocated to mitigation. More global efforts are needed to build climate change resilience and adaptation in Africa.
“As African economies face the devastating impacts of the COVID-19 pandemic, slacking action or redirecting financial resources from climate change will further compound these impacts in a diverse and complex manner,” Dr. Nyong cautioned.
The U.S. Trade and Development Agency (USTDA) has awarded a grant to Abuja-based Konexa for a feasibility study that will evaluate Nigeria’s access to reliable, privately-generated renewable electricity.
The study, according to the USTDA, will help Konexa enhance electricity distribution for residential, commercial and industrial customers in Kaduna state using U.S. technological solutions.
In a statement yesterday, the USTDA’s acting director, Thomas R. Hardym, said the project will support the development of critical energy infrastructure and an innovative business model to improve Nigeria’s electricity generation, transmission and distribution as well as enhance the supply of energy to off-grid customers.
“It demonstrates USTDA’s commitment to supporting Nigeria’s economic growth while creating opportunities for U.S. companies to develop world-class infrastructure.
“Specifically, USTDA’s grant will help define the technical specifications, project economics and regulatory and legal requirements to develop 2.5 megawatts of solar photovoltaic energy, as well as procure and distribute 30 megawatts of hydroelectricity within the service area,” he said.
According to the release, A United States firm will be selected on a competed basis to carry out the study. USTDA’s partner, Konexa, is a Nigerian entity established to develop viable business models to accelerate energy access in developing countries.
“We are proud to be partnering with USTDA on this innovative project that has the potential to catalyze large scale private sector investment to make the distribution sector in Nigeria financially viable,” the statement quoted Pradeep Pursnani, Konexa’s CEO.
This project also supports Prosper Africa, a U.S. government initiative to substantially increase two-way trade and investment between the United States and Africa.
…Demands focus on development of Ilaje land by government
The Ilaje Development Summit Group (IDSG) has congratulated the Governor of Ondo State, Arakunrin Oluwarotimi Odunayo Akeredolu (Aketi) on his choice of a distinguished Ilaje son, Hon. Lucky Aiyedatiwa, as his running mate in the coming governorship election in Ondo State.
The Group in a statement by its Executive Administrator, Rev Sola Adebawo commended Governor. IDSG said His Excellency’s choice of Aiyedetiwa as a running mate represents a clear recognition of the Ilaje son’s capacity as well as the critical place of Ileja in Ondo State’s sustainable success.
“This represents a clear recognition of both the obvious capacity of our brother and son to perform in this huge role. It is also a strong indication of an acknowledgment of the critical place of Ilaje in the sustainable success of our dear Ondo State.”
According to IDSG, it also represents the beginning of a new era of Ilaje playing in the mainstream of governance in Ondo State. It hinted that the choice of the Ilaje’s son sits well with what “our fathers fought relentlessly to help create, and which our resources have helped to sustain over the years.”
“As we approach the elections, we demand for a genuine focus on Ilaje for sustainable development of neglected infrastructures and other key areas such as health, education, economy, electricity etc. as a matter of commitment and not mere campaign rhetoric.
“IDSG is a citizen-led initiative to engineer coordinated sustainable development of Ilaje land through participatory partnership of all groups, associations and individuals working for the development of Ilaje land.
Though neither apolitical nor irreligious, IDSG is an inclusive organisation with no exclusive political or religious affiliation.
The organization is made up of the most accomplished Ilaje sons and daughters in Nigerian and in different countries around the world; and we therefore parade some of the finest minds in Ilaje land.
“IDSG convened the much-talked about first-of-its-kind Ilaje Development Summit on november 23, 2019, at the Dome Akure, with participation by the Ondo State Government and Ilaje sons and daughters from different countries around the world, where the first Ilaje Regional Development Plan (a 50-year strategic plan for development of Ilaje land) was launched.
“As a global organisation of most outstanding Ilaje sons and daughters across all walks of life, IDSG seeks to partner with government at all levels and other critical stakeholders to engender sustainable development of Ilaje land, which has been obviously neglected by successive administration in the State,” the statement read in part.
Nigeria’s Department of Petroleum Resources (DPR) has said that the construction of Dangote Refinery is now 71% complete.
The refinery is expected to become Africa’s largest oil refinery and the world’s biggest single-train facility upon completion.
The $12-billion Dangote Refinery will have the capacity to refine 650,000 barrels per day. Dangote Industries Executive Director Devakumar Edwin says the facility is set to be operational early next year.
It was also recently reported that Dangote Group’s fertilizer plant, will be ready to start production late this year, according to contractor Saipem SpA. The facility will have a capacity of 3 million tons a year of urea and ammonia, making it the world’s largest.
The chief operating officer of Saipem SpA, Maurizio Coratella, was quoted as saying that, “Train two commissioning and testing will start soon, as such activities will be overlapped with train one. The project is planned for completion within the end of 2020, with train one starting production within weeks and train two following soon after.”
Nigeria’s existing refineries have remained moribund for some time now, thereby leaving the country to virtually depend on importation for all its petroleum products consumption.
However, the Director of the Department Petroleum Resources, Auwalu Sarki is optimistic that Nigeria’s local refining capacity will soon exceed her consumption. According to Auwalu, the various reforms currently being embarked on by the Federal Ministry of Petroleum Source are capable of driving the change.
Dangote Refinery is expected to commence operations with a capacity of 650,000 b/d of crude oil.
The Refinery is touted to have the capacity to meet 100 per cent of the domestic requirement of all liquid petroleum products (Gasoline, Diesel, Kerosene and Aviation fuel), leaving the surplus for export.
The International Energy Agency (IEA), in its Oil 2019 Report, said an increase in the number of new refining capacity, expected to extend till the end of 2024, signifies major competition ahead for the oil industry.
Operators at the Ladol Free Zone have lamented the exorbitant cost of land per square meter, and high cost of boat services in the zone, a development that has scared potential investors willing to take advantage of the strategic location of the zone to bring in Foreign Direct Investments (FDIs).
They said the cost of land per square meter and the cost of boat services within LADOL are the highest compared to what investors pay in the other zones. According to them, the zone operator demands $15 free zone entry and exit fee per person per day; and annual passenger jetty service fee of $6,000,000 even when the value of the jetty itself is less than $1 million.
Each investor operating at the free zone is also required to pay $160,000 annual fee to station four armed guards in the free zone while the zone operator spends less than $10,000 on these guards, operators observe.
Maritime operators argued that unlike other free zones in the country, LADOL base is under lease to a private zone operator, which compels potential investors to negotiate with the zone operator instead of the Nigerian Ports Authority (NPA).
This development has led to investors paying exorbitant charges to the zone operator, compared to the “pittance” the zone operator paid to the NPA for the lease. The operators called on the Nigerian maritime authority to look into the high charges, it said has led to gross under-utilisation of the large expanse of land, despite its attractive, strategic location.
Some of the operators pointed out that the high charges imposed on oil and gas industry stakeholders at the Lagos free zone are passed on to the Nigerian National Petroleum Corporation (NNPC) by the free zone operator and subsequently paid by the federal government.
Commenting on the development, a maritime expert, Mr. Kingsley Omose, said the federal government to reduce the cost of producing crude oil, it must check the high charges imposed on the operators doing jobs at the free zones.
“If the federal government and the NNPC want to slash production cost for a barrel of crude oil, they should look at the operations and charges of the likes of Intels and LADOL who are tenants of NPA but whose exorbitant charges are paid by federal government through NNPC’s majority stakes in the joint venture oil operations of the international oil companies (IOCs).
For the Production Sharing contracts the reason why federal government’s take from offshore oil production is little or nonexistent is due to the high charges, which Intel’s and LADOL incorporated and which must be deducted by IOCs before sharing the balance oil with the federal government”.
“You can see that with the Samsung situation – where what they were charged by NPA is pittance compared to what they’re paying LADOL. That is the story of Nigeria, where public officials constantly put the interest of others and themselves before the Nigerian state”.
Nigerian National Petroleum Corporation (NNPC) has recorded a 43% drop in cases of malicious damage to oil pipeline infrastructure in May 2020.
Details of the report is contained in the May 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report indicates that 37 pipeline points were vandalized representing about 43% decrease from the 65 points recorded in April 2020.
Further breakdown showed that Mosimi-Ibadan pipeline axis accounted for 38% of the vandalized points while Atlas Cove—Mosimi axis recorded 19% of the breaks.
Suleja-Kaduna logged 16% of the breaks, while other locations make up for the remaining 27 per cent. NNPC stated in the May report that in collaboration with the local communities and other stakeholders, it would continuously strive to bring the malaise under control.
The apex oil company said it had continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), to achieve smooth distribution of the products to ensure zero fuel queue across the nation.
The report also said that towards this end, 950.67million litres of white products were sold and distributed by the corporation’s downstream subsidiary, the Petroleum Products Marketing Company (PPMC) in May, 2020. This comprised 950.67million litres of PMS only with no Automotive Gas Oil (AGO) or Dual Purpose Kerosene (DPK), adding that there was no sale of special product in the month.
Total sale of white products for the period May 2019 to May 2020 stood at 19,865.80million litres and PMS accounted for 19,704.49million litres or 99.19%.
The report stated that ₦92.58billion was made on the sale of white products by PPMC in May 2020. Total revenue generated from the sales of white products for the period May 2019 to May 2020 stood at ₦2,393.88billion, where PMS contributed about 98.84 per cent of the total sales with a value of ₦2,366.15billion.
In the gas sector, natural gas production in May 2020 increased by 2.38% at 226.51billion Cubic Feet (BCF) compared to output in April 2020; translating to an average daily production of 7,480.36million Standard Cubic Feet of gas per day (mmscfd).
Likewise, the daily average natural gas supply to gas power plants increased by 5.87% to 834mmscfd, equivalent to power generation of 3,128MW.
The NNPC Monthly Financial and Operations Report for May stated further that the group’s operating revenue, compared to April 2020’s, increased by 15.33% or N31.68 billion to stand at N238.33 billion, while expenditure for the month decreased by 0.76% or N1.81 billion, to stand at N235.66 billion.
The May 2020 report indicated a trading surplus of ₦2.68 billion compared to the ₦30.81 billion deficit posted in April 2020 when the effect of COVID-19 was at the peak, leading to reduced demand with fluctuating prices. The NNPC report said the 109 per cent upturn in revenue this month is the cumulative result of improved performances by some of the corporation’s strategic business units.
