Connect with us

Business

For the seventh time, Port Harcourt refinery misses production rollout deadline

Published

on

 

The Nigerian National Petroleum Company Limited has again failed to begin fuel production at the Port Harcourt refinery in Rivers State.

This is despite the refinery failing to commence operations after about six postponements as of August 2024.

 

It would be recalled that promises made to Nigerians by the Federal Ministry of Petroleum Resources and NNPC about the refinery have continued to hit brick walls.

 

After the failure of the early August promise, the Chief Financial Officer of the NNPC, Umar Ajiya, said the Port Harcourt refinery will commence operations in September 2024.

Speaking to journalists in August, Ajiya had said petroleum products would be ready for testing before being supplied to the domestic market in September.

As September ended yesterday, the NNPC did not give an update about the refinery.

 

Maire Tecnimont SpA, the contractor overseeing the rehabilitation of the Port Harcourt refinery, said it would provide details on the project’s completion by or before October 2.

The contractor conveyed this through a law firm, Olajide Oyewole LLP, in response to a letter from a Senior Advocate of Nigeria, Femi Falana, who had inquired about the completion timeline for the refinery’s rehabilitation.

In reply to Falana’s request, the law firm stated that its client received his letters dated September 17 and 24, regarding the contract with the NNPC and is considering the inquiries.

READ  Tinubu won’t intervene in NNPC, Dangote refinery disagreement over petrol price, says Presidency

 

“Our client is considering your letters and they intend to get back to you on or before 2 October 2024,” the law firm had said.

 

Since December 2023, NNPC, which is in charge of all the government refineries, has given Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon.

 

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August.

 

The same Kyari said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration.

 

While appearing before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

 

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”

 

However, the promise was not fulfilled in August which was the sixth postponement.

 

Though the NNPC said it was on course, the refinery has yet to commence operations.

READ  RACKETEERING: NNPC, marketers inflated imported petrol figures under Buhari, Jonathan – Sanusi

 

The 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

 

Later in January, Kyari said the refinery was being tested and would be ready by the end of January.

 

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production was set to commence.

 

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

 

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

 

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

 

As the April deadline elapsed, independent petroleum marketers told The PUNCH that the facility would begin production by the end of July.

 

READ  NNPC records 218 incidents of crude oil theft in one week

Commenting on this, NNPC’s Chief Corporate Communications Officer, Soneye, said regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

 

Some Nigerians have expressed disappointment that the nation’s refineries have remained moribund for years. The country has since depended on imported fuel due to a lack of refining capacity, spending up to N2tn monthly.

 

The President of the Dangote Group, Aliko Dangote, said $4bn had been spent by the Federal Government in an attempt to revive the nation’s refineries.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

 

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery; a move that was criticised by former Vice President Atiku Abubakar, who advocated the sale of all government refineries.

 

While reacting to the plan to hand the refinery over to private managers, Atiku tackled former President Muhammadu Buhari and the incumbent President Bola Tinubu for failing to heed his advice that the refinery and others owned by the government should be sold to private individuals.

Meanwhile, Nigerians are hopeful that the refinery will begin operations so that the country can stop fuel importation and witness a crash in the pump prices of petrol.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Dangote refinery, IPMAN reach agreement to lift petrol, diesel directly

Published

on

By

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says an agreement has been made with Dangote Petroleum Refinery to lift premium motor spirit (PMS), also known as petrol, and diesel directly.

Abubakar Garima, national president of IPMAN, spoke on Monday after a meeting of the national working committee of the association in Abuja.

Garima said the partnership will ensure a steady, affordable supply of PMS products nationwide.

“After meeting with Aliko Dangote and his management team in Lagos, we’re pleased to announce that Dangote Refinery has obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets,” he said.

“That the Dangote Refinery That this new arrangement with the Dangote Refinery will ensure steady and ceaseless supply of PMS products all over Nigeria, at an affordable rate for Nigerians also.”

The IPMAN president also urged members to support the Dangote refinery, citing backward integration benefits and positive impacts on Nigeria’s foreign exchange market.

READ  Good morning! Here Are Some Major News Headlines In The Newspapers Today: P’Harcourt refinery begins test-run, Rivers, 11 others get supply soon

“IPMAN members should rely on Dangote Refinery and Nigerian Refineries for white products, creating more job opportunities and supporting President Bola Tinubu’s renewed hope agenda,” he added.

‘NEGOTIATION WITH DANGOTE REFINERY WILL LEAD TO LOWER PRICES’

Regarding pricing, Garima said he is confident that negotiations with Dangote would yield lower rates.

On compressed natural gas (CNG), Garima said the association is preparing for a seamless transition to CNG refill stations nationwide.

“I would also like to call on all our members at IPMAN to begin to put all machineries in place for a successful transition of the Federal Government’s plans to initiate CNG refill stations in all our outlets,” he said.

“Truly there is no doubt that CNG has the potential to rejuvenate our economy for a better life for Nigerians, and IPMAN is ready to give her all to support the CNG initiative.

“We are also calling for a partnership with the federal government of Nigeria to hasten the quick success of the CNG initiative for Nigeria.

READ  NNPC cuts price for marketers to end petrol scarcity

“We believe that for the CNG initiative to succeed, there must be a credible partnership between IPMAN and the PCNGI, without which Nigerians would not have ready and near access to CNG outlets.”

On October 29, Aliko Dangote, founder of Dangote Industries Limited (DIL), said the refinery currently holds over 500 million litres of petrol, but oil marketers are not buying the product.

In a counter-response, the IPMAN said its members had been unable to load petrol from the Dangote refinery for days.

Garima had said the association paid N40 billion to the Nigerian National Petroleum Company (NNPC) Limited, but still cannot source the product – but the refinery said it has not received any payment from the IPMAN for refined petroleum products.

The controversy, however, did not end there, Yakubu Suleiman, national assistant secretary of IPMAN, in an interview on Arise Television on November 1, said it is more expensive to buy petrol from the Dangote refinery than other places.

READ  BREAKING: Buhari makes U-turn, give in to regulator’s rejection of Seplat’s purchase of ExxonMobil asset

Suleiman said members go for more affordable options at other depots across Nigeria than the high logistical costs associated with buying petrol from the Dangote refinery.

However, Dangote refinery said its ex-depot price of petrol was set at N990 per litre for sale into trucks, and N960 for ships, adding that any oil marketer that sells petrol cheaper than the price it offers is importing substandard products.

But marketers rejected the claim, saying that they never sold substandard products.

Continue Reading

Business

NDIC to commence sale of Heritage Bank assets December 4

Published

on

By

The Nigeria Deposit Insurance Corporation (NDIC) says the sale of Heritage Bank assets will begin on December 4, 2024.

In a statement on Sunday, Bashir Nuhu, NDIC’s director of communication and public affairs, said the commission has started the process to sell off landed properties belonging to the defunct bank.

Nuhu said the exercise conforms to the corporation’s statutory powers as the liquidator of failed banks in the country.

He said interested bidders should submit bids at designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt.

“In a bid to ensure timely declaration of liquidation dividends to uninsured depositors of the failed Heritage Bank, the Nigeria Deposit Insurance Corporation (NDIC) has commenced process for the sale of landed properties of the defunct bank,” the statement reads.

“The exercise is pursuant to the Corporation’s statutory powers as liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023.

“The sale of assets is by competitive bidding and will take place at the 36 affected locations of the bank across the country, from Wednesday 4th December, 2024.

READ  More troubles for state govts as NNPC plans N328bn deduction in April

“Buyers who wish to participate in the auction are expected to follow laid down guidelines aimed at ensuring transparency, fair competition, equity and accountability to enable recovery of commensurate values from the exercise. This is vital for the payment of liquidation dividends to eligible claimants.

“In order to allow the continuation of provision of financial services to the Nigerian public at the locations of the closed bank towards bolstering financial inclusion, preference shall be given to financial institutions who are willing to buy any of the properties at the highest auctioned prices along with all the physical assets at wholesale value.”

‘CORPORATE BODIES, PRIVATE INDIVIDUALS ELIGIBLE TO BID’

Nuhu said corporate bodies and private individuals interested in the bidding are eligible to participate without prejudice, assuring that the auction will be open and competitive to all bidders.

He added that bidders will be allowed to inspect the properties and chattels across all locations prior to disposal.

READ  NNPC releases 2022 financial statement, reports N8.8trn revenue

“For full details check our website, social media platforms and Newspapers,” Nuhu said.

On June 3, the Central Bank of Nigeria (CBN) revoked the licence of Heritage Bank Plc with immediate effect.

The regulator, in a statement, said the revocation was necessary due to the bank’s inability to improve its financial performance, a situation which constitutes a threat to financial stability.

Following the revocation, the NDIC announced the commencement of verification and payment to depositors.

At a media briefing on June 5, Bello Hassan, NDIC’s managing director, promised to settle insured customers within one week, adding that the total bank deposits at Heritage Bank stood at N650 billion while its loan portfolio was above N700 billion.

Hassan said the bank’s total depositors are 2.3 million, with 99 percent of them having total balances of less than N5 million.

On June 13, the NDIC announced the national listing of the bank’s assets for sale, including 48 properties and various chattels such as vehicles, office equipment, plant and machinery located in 62 locations nationwide.

READ  Many feared dead in multiple petrol tanker explosions in Rivers

Continue Reading

Business

OANDO Wins Deal of The Year Award at Africa Energy Week 2024

Published

on

By

 

Oando Plc, Africa’s leading energy solutions provider listed on the Nigerian Stock Exchange (NGX) and Johannesburg Stock Exchange (JSE) has emerged winner of the ‘Deal of the Year’ award at Africa Energy Week (AEW) 2024.

 

The Africa Energy Chamber (AEC), the organisers of the annual week-long oil and gas conference, hosted and recognised different stakeholders at a Gala and Award night, held at the Cape Town International Conference Centre (CITCC), on Tuesday, 5 November, 2024.

 

In a category comprising other high-profile deals in the sector and across Africa, Oando won the award in recognition of the Company’s recently completed landmark $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from the Italian Energy firm Eni on 22 August, 2024.

This acquisition, 10 years in the making since Oando’s initial entry into the ConocoPhillips/NAOC/NNPC Joint Venture (JV) in 2014 when the Company acquired ConocoPhillips Nigeria business, doubled the company’s stake in the JV to 40% and operator of the assets.

 

In receiving the award, the Company’s Group Chief Executive, Wale Tinubu, remarked “We are delighted and honoured to receive the ‘Deal of the Year’ award from Africa Energy Week. It’s been a remarkable year on many fronts.

READ  World university ranking: Only one Nigerian institution makes top 1,000 list

‘ First, we marked our 30th anniversary as a business, then concluded our strategic plan to acquire our second IOC in a decade, Nigerian Agip Oil Company (NAOC) and step up to the role of operator.

“This award is more than just an accolade for a successful deal closure; it represents a public acknowledgement of the culmination of 30 years of grit, hard work, resilience, and sheer belief in our vision.

‘ It is a testament to my belief that with the #HumansOfOando, impossible is nothing. I’d like to thank the dream team, the #HumansOfOando, our financiers, and partners for their belief and role in making this award a reality.”

The acquisition is the culmination of a decade of preparation, strategic planning, and unwavering commitment to a vision of becoming Africa’s first indigenous International Oil Company.

It is a testament to the organisation’s 30-year journey spanning the entire energy value chain, with consistent and deliberate actions at each stage that have led to the advancement of indigenous participation in the industry.

READ  BREAKING: Tribunal affirms Oyebanji as Ekiti governor, dismisses Segun Oni’s petition

 

The Deal of the Year award “recognises the most transformative and impactful deal in the energy sector – honouring excellence in negotiation, strategic alignment, innovation and collaboration – and celebrates deals that drive advancements in energy and economic growth.”

With this year’s AEW theme of “Invest in Africa Energies: Energy Growth Through an Enabling Environment”, the AEC, through the AEW Awards 2024, recognised other persons, International (IOCs) and National Oil Companies (NOCs) across the continent through awards in 10 categories.

Tinubu, at the event, also delivered a key note address with the topic, Transforming Africa’s Oil and Gas landscape through strategic Merger and Acqusition.

During the address he noted that indigenous companies contribute approximately 30% of the country’s crude oil production and hold around 40% of the total oil reserves.

Additionally, they account for 60% of the country’s gas production and approximately 32% of gas reserves. This data underscores the growing significance of local players in the African oil and gas sector.

READ  Fuel price: NNPC denies adjusting pump prices of petrol, diesel

He also highlighted improvements in the business environment, citing the improved Ease of Doing Business driven by recent reforms that have attracted increased investments in energy. Tinubu pointed to the successful Implementation of the Petroleum Industry Act (PIA), which has established a regulatory framework that enhances transparency and boosts investor confidence.

 

Tinubu’s remarks included a call for enhanced collaboration among policymakers, investors, and oil and gas companies to foster the growth of indigenous firms through supportive regulations, financing access, and technology transfer. He urged stakeholders to focus on leveraging M&As to diversify and expand capabilities within the sector while emphasizing the need to strengthen Africa’s institutional and financing capacity for local firms.

 

As Oando continues on its growth trajectory, Tinubu’s insights served as a powerful reminder of the strategic importance of indigenous companies in Africa’s energy transformation and the collective effort required to drive sustainable development across the continent.

Continue Reading

Trending News