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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.

Patoma Admin by — November 19, 2020 in Oil & Gas 0

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.

Patoma Admin by — November 13, 2020 in Oil & Gas 0
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.
Patoma Admin by — October 15, 2020 in News 0