Nigeria’s oil reserve rises by 0.37% to 37.04bn barrels

By Favour Nnabugwu

 

 

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has said hat Nigeria’s oil reserve grew by 0.37 percent in the past one year to hit 37.046 billion barrels from 36.910 billion barrels .

The Commission’s Chief Executive, Engr. Gbenga Komolafe told journalists in Abuja today that natural gas reserves also grew by 1.01 percent to 208.62 trillion cubic feet from 206.53TCF reported a year ago.

Engr. Komolafe explained that the latest reserve figures were based on reports filed by 61 operating companies as at January 1, 2022.

With Nigeria unable to boost oil production despite high prices at the international market, he explained that the commission would tackle all factors militating against efficient and effective exploration and production operations in the country.

According to him: “The Commission recognizes that the formulation of all-inclusive strategies to increase crude oil and gas reserves (from 37 billion barrels and 208.62 TCF) requires thorough consideration of all factors militating against efficient and effective exploration and production operations, and identification of low hanging fruits or opportunities.

“We have therefore become more deliberate and swifter in implementing strategic actions and initiatives aimed at increasing our crude oil and gas reserves and production.  The Commission has initiated a massive campaign dedicated to the identification of oil and gas wells producing below capacity, through:

“Inventorisation of shut-in wells and analysis of the inventory to map the reasons for shut-in and devise measures for quick reopening;
Using well and reservoir surveillance activities in identifying poorly performing wells and work over candidates for quick intervention;
Embracing and adopting new technologies and advanced recovery techniques for unlocking some identified stranded oil and gas resources.

“The conflict between Russia and Ukraine and the attendant disruptions to the global gas demand-supply chain has provided Nigeria with a unique opportunity to fill this gap through the implementation of several natural gas developmental initiatives.

“As the Federal Government has declared the years 2021 – 2030 to be the Decade of Gas, the Commission is taking steps to expand and develop the Nation’s huge gas resources through enhanced gas exploration, development and utilization schemes which will lead to gas reserves growth, increased gas production, maturation of domestic and export gas market, as well as gas flare elimination.

“The Commission is currently engaging all lessees on their Natural Gas Flare Elimination and Monetisation Plan to ensure compliance with Section 108 of the PIA and boost supply to the rapidly growing gas market.

“Furthermore, in the face of the global energy transition and the need for cleaner sources of energy, gas is being positioned as our immediate transition fuel to lower the Nation’s carbon emission footprint in line with our climate change commitment.

“Additionally, we are encouraging investors to leverage on the generous gas fiscal incentives in the PIA such as zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others to take Final Investment Decisions on their proposed upstream projects”.
Questioned on when the Host Community Fund provided for the Petroleum Industry Act 2021 would commence, Engr. Komolafe said guidelines for the operationalisation of the Fund would be ready in June.

“We have had several stakeholders forum on new guidelines for the PIA and they were well attended. This I want to believe is on the basis of the fact that the issue of host community is a very good interest to all those members of oil producing states. As a matter of fact, the stakeholders meeting was well attended but specifically the implementation of the host community will begin in full swing once the regulation becomes operational.

“I actually gave a timeline as to when that will become operational, I gave the status of where we are as a commission in trying to finalise the regulation because it’s the regulation that will give meaning to the intent of the law. It will give a guide on how the host community will be formed and will be implemented. So, we believe, again, maybe like I said, before the end of the month of June, the regulations guiding the condition of the host community would be fully replaced and the implementation of the host community would be in full swing”.

NNPC’s revenue hits N894.6bn, records N141.96bn surplus

By Favour Nnabugwu

The Nigerian National Petroleum Company (NNPC) Limited revenue for the month of June, 2021 stood at N894.64 billion, a 9.04 percent drop from the May figure.

Despite the drop however, the Corporation returned to trading surplus of N141.96 billion following trading deficits recorded in May.

A statement by NNPC’s Group General Manager Group Public Affairs Division, Mr. Garba Deen Muhammad explained that data was contained in the June 2021 figures of the NNPC Monthly Financial and Operations Report (MFOR).

The Corporation yesterday reported a deficit of N37.46Billion in May 2021.

“A trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review”, the Corporation explained.

It added that “In June 2021, NNPC Group operating revenue as compared to May 2021, decreased by 9.07 percent or N89.27 billion to stand at N894.64 billion. Similarly, expenditure for the month decreased by 29.32 percent or N299.44 billion to stand at N721.93 billion.

“Thus, in the period under review, expenditure as a proportion of revenue was 0.81 percent, compared to the figure in May which stood at 1.04 percent.

“The report also noted that the increase in trading surplus was due mainly to the increased sales of crude oil and gas by the Nigerian Petroleum Development Company (NPDC), an Upstream subsidiary of the NNPC, and the increased gas sales and depreciation postings by the Nigerian Gas Company (NGC).

“The positive outlook was further bolstered by the performance of Duke Oil and the Nigerian Gas Marketing Company (NGMC) which also added to the improved bottom line.

“Trading surplus or trading deficit is  derived after deduction  of the  expenditure
profile from the revenue for the period under review”.

NNPC also disclosed a total of 1.63 billion litres of Premium Motor Spirit (petrol) was distributed across the country, translating to 54.50mn litres/day were supplied in June 2021.

Also, the report indicated  47 pipeline points were vandalized representing 26.56 percent decrease from the 64 points recorded in May 2021. Port Harcourt Area accounted for 43 percent, while Mosimi and Kaduna Areas accounted for 51 percent and 6 percent respectively of the vandalized points.

“In the gas sector, a total of 223.77billion cubic feet (bcf) of natural gas was produced in the month of June 2021 translating to an average daily production of 7,459.88million standard cubic feet per day (mmscfd).

“For the period of June 2020 to June 2021, a total of 2,890.11bcf of gas was produced representing an average daily production of 7,321.36mmscfd during the period.

“Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed 59.84%, 20.26% and 19.90% respectively to the total national gas production”, it added.

FG Urged to declare Power Supply as Matter of National Emergency

 

By admin

 

Chairman, Association of Licensed Telecom Operators of Nigeria, Mr. Gbenga Adebayo, has urged the federal government to declare the power supply as a matter of national emergency in order to save nation’s businesses from collapse.

He also appealed to the government to ensure protection of all telecommunications infrastructures in the country so as to boost its operational service delivery.

Adebayo who is also the Chief Executive Officer (CEO) of a privately owned radio station, Royal FM, 95.1 Ilorin, Kwara State, stated this yesterday on the occasion of the 10th year anniversary of the establishment of the radio station.

According to him, the epileptic power supply in the country has become a threat to the growth of the businesses in the country.

Adebayo who said that this ugly development has hindered many businesses to grow especially in the operational duties of radio stations added that, “On many occasions we have been running our radio station on diesel and this is not economical at the end of the day.”

He noted that, “In my radio station, I have five generators that I have been using and these consumed a lot of diesel when the power supply was not available for service.

“Out of the 10 years, for the last six years we have been running generator permanently.

“And this is not good for growth at all because the money being committed to the buying of diesel can be used to invest in another business that can still be useful for the masses.

“It is also worrisome now that, no employment opportunities in public service again and the private investors that are employing people should be encouraged by making sure all the necessary needs that can improve their businesses must be provided.”

While calling on the federal government to declare power supply as a national emergency, Adebayo said that the development would go a long way to stabilise the business activities and improve the economic growth of the nation.

Adebayo who used the occasion to laud the support of the workers of the Royal FM, Ilorin, for their commitment and unalloyed support for the growth of the radio station noted that their support has pushed the radio station into a national pedestal.

He also commended the listeners for their advices and ideas which according to him have continued to serve a tonic towards the development of the station

Adebayo, however, called on the government to protect the telecom infrastructures located across the nation so as to avoid being vandalised by men of the underworld.

He pointed out that the development would also assist the Telecom providers to serve the people of the country and also boost the economic activities of the society.

Again, IMF urges FG to remove petrol, electricity subsidies

By Favour Nnabugwu

 

 

The International Monetary Fund (IMF), yesterday, acknowledged efforts by the Federal Government to fast-track growth but warned that the “reemergence of fuel subsidies and slow progress in revenue mobilisation” exposes the country’s fiscal outlook to significant risks.

The observations were contained in a statement on preliminary findings by IMF staff at the end of an official staff visit (otherwise described as mission) to its member countries to monitor economic development.

The institution noted that the views expressed in the statement did not necessarily represent the position of the IMF’s Executive Board, saying another report would be prepared by the staff for the Executive Board’s “discussion and decision.”

The statement also observed that the continued dependence on administrative measures to address lingering foreign exchange (FX) shortages has a negative impact on confidence building.

The IMF, World Bank and other international institutions had previously called for broad reform of the FX market to achieve market-led and more dynamic operations.

In yesterday’s statement, IMF reiterated that there was a need for the urgent FX market, fiscal, trade and governance reforms to rescue the economy from muted recovery.

“Without urgent fiscal and exchange rate reforms, the medium-term outlook faces sub-par growth. There are significant downside risks to the near-term outlook arising from the uncertain course of the pandemic and the domestic security situation.

“In the medium term, there are upside risks from faster-than-expected reaching of the Dangote refinery’s production capacity along with the effective implementation of the 2021 Petroleum Industry Act in terms of higher manufacturing production and investment in the oil sector; major reforms in the fiscal, exchange rate, trade and governance are needed to alter the long-running lacklustre growth path.

“On the immediate front, fiscal and external imbalances require removal of regressive fuel and electricity subsidies, tax administration reforms and installing a fully unified market-clearing exchange rate. Over the medium term, moving away from inward-looking policies through trade, monetary and foreign exchange reforms, enhancing public trust through governance and fiscal transparency reforms and improving welfare through job creation and agricultural reforms are priorities.”

The Fund noted that the fiscal deficit could worsen in the near term and remain elevated over the medium term. According to the statement, the fiscal deficit is projected to widen in 2021 to 6.3 per cent of the Gross Domestic Product (GDP) despite the bullish oil prices.

IMF also called for aggressive tax reform to boost revenues, saying: “Nigeria will have to adopt tax rates compared to its peers in the Economic Community of West African States (ECOWAS) to raise revenues to levels targeted in the 2021-25 National Development Plan.”

The institution, however, commended the country’s “pro-active approach” in managing the COVID-19 crisis. The efforts, it admitted, has contained the infection and fatality rate.

“The COVID-19 pandemic has been well managed but there is a lasting imprint on the vulnerable. Like much of the rest of Sub-Saharan Africa (SSA), Nigeria underwent a third wave of the pandemic in August 2021. The authorities’ proactive actions, including a robust infection tracking system and a national strategy for vaccine procurement and rollout, have helped keep infection rates and fatalities lower than in many other countries,” it added.

Five died from industrial gas explosion in Mushin

By Favour Nnabugwu

 

Five people have allegefly died from the industrial gas cylinders explosion tragedy that struck yesterday at Papa Ajao in Mushin Local Council of Lagos State,

The deceased are three male adults, a woman and a male teenager. Eye witnesses said the incident occurred when the cylinders stocked at No 33/35, Ojekunle Street in  Papa Ajao area of  Mushin were being refilled  from a cylinder when it ignited fire from a woman frying buns close to the cylinders.

The National Emergency Management Agency (NEMA),  Lagos State Fire Service, Police Disaster Management Unit and Lagos State Emergency Management Agency  (LASEMA), immediately responded to the distress call and were able to contain the fire within an hour

According to a source, four of the victims died on the spot, while the teenager was pulled out of the scene but died on the way to the hospital.

The explosion also affected three houses opposite the scene, which LASEMA) officials said would undergo integrity test to determine their fitness for habitation.

Speaking on the incident,  the Managing Director of LASEMA, Oluwafemi Oke-Osanyintolu said: “At 7:50 a.m, we received a distressed call and we activated all our  emergency responses. With a combined effort, we were able to put out the fire within an hour.

“After the rigorous effort to put off the fire, we were able to pull out ten persons and five of them had already died, while five others survived, the survivors were treated on the spot and were released immediately

“We are going to constitute a panel to look into this holistically so that such incident will not occur again. I appeal to Lagosians to abide by the rules and regulations . “ However, we sympathise with families of those who lost their lives and I can assure you that we will secure life and property in the area.”

Also, South West Coordinator of NEMA,  Ibrahim Farinloye said the authority’s investigation showed that the shop was earlier sealed because the side of the street was dedicated as a mechanic village, which was not accessible to other users.

Farinloye said after some time, the seal and lock were removed before the incident occurred. Narrating the incident, the Public Relations Officer, ASPADA Union, Ojekunle, John Ikemefuna, said: “I was in my shop when the incident happened. It happened during refilling of gas from one cylinder to another. The owner of the gas plant is my friend. The woman is a very known person because we normally buy buns from her every morning.”

Also, the chairman  of Mushin Local Council , Emmanuel Bamigboye , who arrived the scene by 12:26 p.m, promised to set up a committee to investigate the incident.

He said: “This is an unexpected occurrence and it is very unfortunate. A lot of things have been destroyed here, but we are going to investigate. We are going to set up a committee to investigate the incident

FG signs fuel transportation, storage deal with Niger Republic

The Federal Government has signed a Memorandum of Understanding, MoU, with the Republic of Niger for the transportation and storage of petroleum products

Group General Manager/Special Adviser on Media to the Minister of State for Petroleum Resources, Garba Deen Muhammad in a statement in Abuja yesterday, said the MoU was reached following bilateral agreements between President Muhammadu Buhari and President Mahamadou Issoufou of Niger.

According to Muhammad, talks had been on-going between the two countries for over four months – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), on petroleum products transportation and storage.

He explained that Niger Republics Soraz Refinery in Zinder, some 260 kilometers from the Nigerian border, has an installed refining capacity of 20,000 barrels per day, the country’s total domestic requirement is about 5,000 barrels per day, BPD, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

Muhammad, stated that the MoU was signed by the GMD NNPC, Mallam Mele Kyari and the Director General of SONIDEP, Mr. Alio Toune under the supervision of the two countries’ Ministers of State for Petroleum, Çhief Timipre Sylva and Mr. Foumakoye Gado, respectively with the Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim in attendance.

Speaking shortly after the MoU signing, Sylva expressed delight over the development, describing it as another huge step in developing trade relations between both countries.

He said: “This is a major step forward. Niger Republic has some excess products which needs to be evacuated. Nigeria has the market for these products. Therefore, this is going to be a win-win relation for both countries. My hope is that this is going to be the beginning of deepening trade relations between Niger Republic and Nigeria.”

Also commenting on the development, Secretary General of African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim said he could not be happier with what he witnessed in terms of co-operation and collaboration between the two APPO member countries in the area of hydrocarbons.“

I want to commend the Federal Republic of Nigeria and the Republic of Niger and their leadership for this milestone, he added.

The Group Managing Director of the NNPC, Mallam Mele Kyari in his remarks, said the two countries have had long engagements in the last four to five months with a view to restoring the importation of petroleum products (excess production) from Niger into Nigeria.

He said:“With this development, we hope to have a long-lasting and sustainable commercial framework to having a pipeline from the Soraz Refinery in Zinder (Niger) into the most proximate Nigerian city so that we can develop a depot”

“We are happy that we have reached that conclusion and our two ministers have endorsed this framework. We are also working on detailed MoU between our two companies so that we can continue the execution process immediately.”

Kyari further noted that being the most experienced of the two oil companies, the NNPC would support SONIDEP in terms of training and capacity building.

Premium Motor Spirit, also known as petrol will now sell at between N168-N170 per liter.

This is as because the Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, has increased the ex-depot price to N155.17 per litre from N147.67 per litre.

The PPMC disclosed this in an internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, and signed by Tijjani Ali.
 
The memo, a copy of which was seen by our correspondent, said the new ex-depot price would take effect from Friday.

The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.

It said the estimated minimum pump price of the product would increase to N161.36 per litre from N153.86 per litre.

The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, in a telephone interview with our correspondent, said the over N7 increase in ex-depot price would translate into an increase in pump prices.

NNPC records 99.7% in loss profile

By Favour Nnabugwu
The Nigerian National Petroleum Corporation (NNPC) says it has recorded a 99.7 per cent reduction in its loss profile from ₦803billion in 2018 to ₦1.7billion in 2019.
NNPC in its 2019 Audited Financial Statement, released by Dr kennie Obateru, spokesman for the corporation, in Abuja, on Thursday.
The corporation in May published its 2018 AFS and assured of the quick release of the 2019 report.
This, According to NNPC Group Managing Director Malam Mele Kyar, was in line with the effort to ensure transparency and accountability in its operations.
Obateru, quoted the NNPC Chief Financial Officer, Mr Umar Ajiya, as saying that the 2019 AFS was concluded five months after the release of that of 2018.
A breakdown of the report disclosed that general administrative expenses also witnessed a 22 per cent dip from ₦894bn in 2018 to ₦696bn in 2019.
According to Ajiya, the majority of the subsidiaries posted improved performance.
The subsidiaries are the Nigerian Petroleum Development Company Limited (NPDC) which recorded ₦479 billion profit in 2019 compared with ₦179billion in 2018, representing 167 per cent increase.
“The Integrated Data Sciences Limited (IDSL) recorded ₦23billion profit in 2019 compared with ₦154million in 2018, representing 14966 per cent increase and the Petroleum Products Marketing Company (PPMC) recorded ₦14.2billion profit in 2019 compared with the ₦9.3billion recorded in 2018, representing 52 per cent increase.
“Also, the refineries maintained the same level of losses as in 2018 but which will reduce significantly in 2020 due to cost optimisation drive,” the CFO said.
He further explained that the improved performance in the 2019 financial year was driven mainly by cost optimisation, contracts renegotiation and operational efficiency.
“The 2019 AFS goes further to demonstrate our unwavering commitment to the principle of Transparency, Accountability, and Performance Excellence while the outlook for 2020 looks promising in view of the management’s strong drive to prune down running cost and grow revenues,” he said.