Oil and Gas

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clip Federal government insists on N145/litre of petrol
January 06, 2018, 03:48:13 AM by Isaac Adeniran
Federal government  insists on N145/litre of petrol

The Federal Government on Friday said it had commenced a review of the pricing template for Premium Motor Spirit, popularly known as petrol. It noted, however, that the price of the product would remain unchanged.

According to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, the review became necessary following the various pricing concerns surrounding the actual cost of a litre of PMS.

This is coming as President Muhammadu Buhari, as well as the Federal Executive Council, had directed the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation not to allow the price of petrol to go beyond N145/litre.

Kachikwu, who spoke to journalists during the ongoing oil sector stakeholders meeting at the headquarters of the ministry in Abuja, also insisted that the pump price of petrol was N145/litre and stated that the Petroleum Products Pricing Regulatory Agency was working on a new pricing template for PMS.

The minister, however, did not explain how the PPPRA would review the template and keep the cost of the commodity at N145/litre, considering the fact that the landing cost of PMS was currently around N171/litre.

Kachikwu, who only allowed and responded to two questions from journalists, noted that the aspects of the template that had to do with logistics, profit margins for operators, among others, were being reviewed in the pricing template by the PPPRA.

The minister said, “PPPRA obviously develops the templates and helps us to monitor importation into the country. The template has always been an issue because as prices change in the international market, some of these templates get question mark.

“There are two lines as regards this template; there is the actual cost of landing the product, on the template, and there are other ancillary charges that deal with logistics, profit margins for the operators and all of that.

“As part of this committee’s work, we are also reviewing that template to see whether there are things we need to do to help us ensure that we can accommodate sales at the N145/litre window. So, that is also going to be looked into. The PPPRA is working on that and is heading a special committee on it.”

However, marketers wondered how the template would be reviewed to retain the cost of petrol at N145/litre, considering the price of the commodity in the international market.
clip FG seals over 62 petrol stations, arrests seven
December 29, 2017, 10:48:01 PM by Isaac Adeniran

FG seals over 62 petrol stations, arrests seven

The Federal Government, through the Department of Petroleum Resources, has sealed over 62 petrol stations across the country.

The petrol stations were shut down due to varying acts of malpractices, including selling the Premium Motor Spirit, otherwise known as petrol, far above the N145 official price.

Since fuel scarcity started nationwide some days before Christmas, several filling stations had started selling fuel as high as N300 per litre.

Speaking to one of our correspondents, the Head of Operations, DPR, Kwara State, Mr. Oyedele Ibitayo, said the agency had sealed no fewer than 10 petrol stations in the state for varying acts of malpractices and infractions since the fuel crisis started.

Ibitayo listed the petrol stations that allegedly flouted regulations to include Korrect Petroleum at Agbabiaka Road, Ilorin; Alhaji M. Oyetunji Petrol Station at Ajase; Golden Mother Petrol Station at Agbabiaka; Haflum Petrol Station at Babaoko; and the Nigerian National Petroleum Corporation retail outlet at Okoolowo.

He stated that their offences ranged from under-delivery, over-pricing and product diversion. He added that one of the stations sold petrol as high as N250 per litre.

Ibitayo said punishments meted out to the defaulters varied depending on their offence.

He said while some were shut down for between two and six months, some were asked to pay a fine of N200,000 and sign an undertaking that they would not be involved in such sharp practices again.

In Edo State, the DPR said it had sealed 23 petrol stations for indulging in sharp practices.

This is just as the state Commandant of the Nigeria Security and Civil Defence Corps, Mr. Makinde Ayinla, said that the agency was collaborating with the DPR to check malpractices among the oil marketers.
clip Nigeria to expand crude exportation to more countries – NNPC Trading
September 24, 2017, 09:20:21 AM by naijatowns
Nigeria to expand crude exportation to more countries – NNPC Trading

The Managing Director, NNPC Trading Limited, Ibrahim Waya, said the Corporation has set the necessary machinery in motion to expand Nigeria’s crude export to more countries, The Guardian reports.

He disclosed: “We are currently negotiating with Pertamina, Indonesia’s state oil company, and we are also in talks with them for supply of Nigerian crude oil grades. We have started discussing with Serak Refinery in Congo Republic, because they have undertaken an expansion programme in their refinery that would see them take an additional 500,000 barrels per day of crude, and we want to take up that contract.”

“Our vision is for us to go as far as Mexico to bid for term contracts, go to Brazil [for companies] like Petrobras to bid for term contracts, go to Norway just like Statoil is coming here to bid for contracts, we want to go to Norway and do the same,” he added.
clip Dangote begins installation of oil refinery equipment
April 20, 2017, 12:09:10 AM by Isaac Adeniran
Dangote begins installation of oil refinery equipment

Dangote Oil Refining Company Limited has said the installation of equipment for the crude oil refinery being built in Lagos will begin this month.

The Head, Quality Assurance/Quality Compliance and Construction, DORC, Mr. Rama Putta, told our correspondent, who visited the site of the plant, that the 650,000-barrels-per-day refinery would come on stream by September 2019.

According to him, the basic engineering work has reached 98 per cent completion; the detailed engineering, 90 per cent; 3D modelling, 80 per cent; long lead items ordering, 100 per cent; bulk plates ordering, 90 per cent; equipment and bulk items, 50 per cent; and construction activities, 25 per cent.

He said the sand filling of the site was completed six months ago, adding that 60 per cent of the land was swampy.

Putta said bringing the land to three metres above the mean sea level was the biggest challenge, adding, “The sand is tightly compacted and ready for the erection of the equipment. No flood can affect our area. The surrounding area is only one metre above the mean sea level. The entire Lagos is only 1.5 metres above the main sea level.
xx How Modular refinery will end illegal oil bunkering in Niger Delta
April 02, 2017, 08:39:41 AM by Isaac Adeniran
How Modular refinery will end illegal oil bunkering in Niger Delta

The Federal Government has restated its commitment to encourage both local and foreign investors to key into its plans to grant licence for the establishment of modular refineries, adding that such establishment would end illegal oil bunkering in the oil-rich Niger Delta region.

It noted that President Muhammadu Buhari was deeply worried about the activities of illegal bunkerers in the region whose actions were causing huge environmental degradation and pollution thus has decided to encourage most especially local investors to key into the project instead of involving themselves in actions that are detrimental to the general wellbeing of the region.

xx Petroleum tanker drivers threaten nationwide strike on Monday
April 01, 2017, 04:07:04 PM by Isaac Adeniran
Petroleum tanker drivers threaten nationwide strike on Monday

The Petroleum Tankers Drivers arm of the Nigeria Union of Petroleum and Natural Gas Workers have said they would commence nationwide strike on Monday.

NUPENG’s President, Mr. Igwe Achese, announced this in a signed communique on Friday in Lagos, at the end of its Central Working Committee meeting held at the union’s secretariat in Yaba.

The communique said the strike would draw the attention of the Federal Government and other stakeholders to some unresolved issues bordering on the welfare of workers, such as bad roads, poor remuneration, insecurity and the alleged excesses of some security agencies.
xx Nigerian oil firm former boss in $10 cash probe
February 14, 2017, 05:48:31 AM by Isaac Adeniran
Former boss of Nigerian oil firm in $10m cash probe

A former head of Nigeria’s state-run oil firm is under investigation after almost $10 million in cash was found at a property he owns.

Anti-corruption agency the Economic and Financial Crimes Commission (EFCC) said it had seized $9.8 million (9.2 million euros) from a house belonging to Andrew Yakubu.

A further £74,000 ($92,700, 87,300 euros) was also found at the property in the northern city of Kaduna.

Images of the money — stacked in neat bundles and allegedly discovered in a safe — have featured prominently in the country’s media for several days.

Nigeria is currently in recession and desperately in need of cash, having been hit hard by the slump in global oil prices since mid-2014 that has squeezed revenue and pushed up inflation.

Politics watchers have pointed out the money could have financed a string of much-needed conventional and renewable power projects outlined in the 2017 federal budget.

EFCC spokesman Wilson Uwujaren refused to be drawn on what would happen next. “We are still investigating the matter,” he told AFP.

“At the end of our investigation we shall decide on our next line of action… Nothing is ruled out.”

In his defence, Yakubu has denied any wrong-doing. He admitted the money belonged to him but said it was a gift from friends.

xx Shell profit after tax more than doubled in 2016
February 02, 2017, 04:31:24 AM by Isaac Adeniran
Royal Dutch Shell on Thursday said profit after tax more than doubled in 2016, helped by a recovery for oil prices in the fourth quarter.

Net profit for the full year came in at $4.58 billion (4.23 billion euros) compared with $1.94 billion for 2015, the Anglo-Dutch energy giant said in an earnings statement.

The earnings take into account also the integration of smaller British rival BG Group, which Shell acquired one year ago in a mega takeover.

clip 3,000 oil workers sacked
October 26, 2016, 05:03:15 PM by abejoye
The Nigeria Union of Petroleum and Natural Gas Workers on Wednesday issued a 21-day ultimatum to the Federal Government, urging it to prevail on international oil companies operating in the country to stop the ongoing mass retrenchment of oil workers to avoid further loss of jobs.

National President of NUPENG, Mr. Igwe Achese, stated this on Wednesday at the end of a meeting of the Central Working Committee of the union held in Effurun, Uvwie Local Government Area of Delta State.

May 11, 2016, 03:28:04 PM by naijatowns
(As read by Kachikwu not quite long)

We have just finished a meeting of various stakeholders presided over by His Excellency, the Vice President of the Federal Republic of Nigeria.
The meeting had in attendance the Leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN).

The meeting reviewed:

1. The current fuel scarcity and supply difficulties in the country.

2. The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently.

3. The meeting also noted that the main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.

Following a detailed presentation by the Honorable Minister of State for Petroleum Resources, it has now become obvious that the only option and course of action now open to the government is to take the following decisions:

1. In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.

2. All Oil Marketers will be allowed to import PMS on the basis of FOREXprocured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.

Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.

We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.

We share the pains of Nigerians but, as we have constantly said, the inherited difficulties of the past and the challenges of the current times imply that we must take difficult decisions on these sorts of critical national issues. Along with this decision, the federal government has in the 2016 budget made an unprecedented social protection provision to cushion the current challenges.

We believe in the long term, that improved supply and competition will drive down prices.

The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products.

Thank you.

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