The Nigerian National Petroleum Corporation (NNPC) has said money alleged to have been diverted from the dividend from the Nigeria Liquefied Natural Gas (NLNG) company was a revolving loan to fund subsidy payments.
According to the NNPC, the $1.05bn revolving loan obtained from the dividend of the NLNG prevented petroleum products’ chaos in the country, adding that the loan was used to subsidise the cost of Premium Motor Spirit, popularly known as petrol, in 2018.
The corporation also said that it was unfortunate for the National Assembly to commence a probe into the use of the NLNG dividend.
It would be recalled that the Senate, on Tuesday, commenced an investigation of the alleged diversion of $1.05bn from the Nigerian Liquefied Natural Gas dividend account by the NNPC.
The Group General Manager of NNPC, while commenting on the development on Saturday in Abuja, said the probe by the Senate was wrong as the $1.05bn loan saved Nigeria from chaos.
He said: “The Senate got it wrong. Based on newspaper reports, the Senate said it was $3.5bn subsidy fund, whereas we do not have anything like subsidy fund. What we have is that we sourced for revolving loan based on the Nigeria LNG dividend to NNPC.
“And this is because NNPC is a major shareholder in NLNG and inter-party agencies are managing this and the figure is $1.05bn. There is nothing like $3.5bn because anything subsidy must be appropriated by the National Assembly.
“Now, it is important to state that if we didn’t source for that revolving loan, the nation would have been in chaos. They are not looking at that but claim we spent $3.5bn when there is nothing like that. You can’t place something on nothing.
“If we wanted to play safe, we would just appear before the Senate and when they say what of the $3.5bn, we will say nothing like that and that will be all. But for the sake of responsibility, we went further to clarify issues and told them what we have.”
Ugbamadu insisted that there would have been crisis across the country if the NNPC had not taken the step.
He said further: “So, the investigative panel, set up by the Senate on the Nigeria LNG dividend, is unfortunate because NNPC is the major shareholder and we utilise the dividend paid to the NNPC for importation of products and it is a revolving loan.
“Meaning – the NNPC is going to pay it back and if we didn’t obtain that and if the National Assembly has a leeway, it should recommend to the NNPC on what should be done because the price of petrol at N145 per litre is fixed.
“Major and independent marketers are not importing and you expect the NNPC to concentrate on the importation of products, which is not our core business! And if that is not done, the entire nation will be in chaos; you and I will be affected, including members of the National Assembly.
“It was the same National Assembly that said NNPC should do everything within its reach to ensure that the last fuel challenge is wiped out and that is exactly what we have done.”
Ugbamadu however said he could not provide the exact amount the NNPC is currently incurring as ‘under-recovery’ on petrol.
“The point is that I don’t have the figures here, but you know it varies depending on the international price of products. Except I source the figures from the PPMC (Pipelines Product Marketing Company).
Ughamadu said, “It is for a year. It is for 2018. That is another reason why we are not going to see queues during the Yuletide and beyond because we are augmenting what is imported with our local production. So, Nigeria will not experience fuel shortage this festive period.”The corporation’s spokesperson said it was unfortunate for the Senate to set up an investigative panel on the NLNG dividend as the NNPC controlled the largest stake in the gas company.
The Nigerian National Petroleum Corporation (NNPC) has said its crude oil and gas export sale in August 2018 was $470 million, indicating an increase of about $78 million when compared with July oil and gas export figures of $391.91 million.
In a statement by NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu, the figures were contained in the corporation’s Monthly Financial and Operations report for August 2018 released on Wednesday in Abuja.
The report, which is the 37th in the series, indicated that crude oil export sales contributed $337.62 million, representing 71.83 percent of the dollar transactions compared with $283.43 million contribution in the previous month.
It stated further that the export gas sales during the period amounted to $132.38 million, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26 billion.
The NNPC report explained that based on the above sales figures, a total export receipt of $450.24 million was recorded in August 2018 as receipt against $382.65 million in July 2018.
Contribution from crude oil during the period amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33 million and $12.48 million, according to the report.
A further breakdown of the figures showed that out of the export receipts, $142.31million was remitted to the Federation Account, while $307.93 million was remitted to fund the JV cost recovery for the month of August, 2018 to guarantee current and future production.
The state-owned oil firm said the total export crude oil & gas receipt for the period August 2017 to August 2018 stood at $5.23 billion out of which $3.74 billion was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.
On Naira payments to the Federation Account, the report informed that NNPC transferred N128.40 billion into Account for the month under review. It also explained that from August 2017 to August 2018, the Federation and JV received N879.02 billion and N651.4 billion respectively.
Providing insight into the corporation’s remittances to the national treasury, the NNPC explained that the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by corporation and the proceeds remitted into the Federation Account.
It informed that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).
The corporation explained that domestic crude oil of 445,000 barrels per day was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management costs incurred during the period.
The Nigerian National Petroleum Corporation (NNPC) and some companies in the oil and gas sector of the country have failed to remit a total revenue of $22.06 billion and N481.75 billion to the Federation Account.
This is contained in the latest report by the Nigerian Extractive Industries Transparency Initiative (NEITI) on Monday.
The report, which summarises unremitted revenue, losses and unreconciled differences from operations and transactions in the oil and gas sector, indicates that only NNPC defaulted to the tune of $19.04 billion and N424.57 billion.
It further shows that oil and gas producing companies were still withholding $152.69 million and N5.2 billion; companies involved in offshore processing contracts, $498.6 million; and Nigerian Petroleum Development Company (NPDC), $2.38 billion and N51.95 billion.
The report puts the total losses to the federation from crude oil production, processing and transportation at $3.04 billion and N60.99 billion, while unreconciled differences from the allocation, sale and remittance of proceeds from domestic crude allocated to NNPC was put at N317.48 billion.
In July, Ripples Nigeria reports that NNPC failed to remit a total of N198 billion to the Federation Account in 2016, an amount which brought the total under remittance of revenue from domestic crude oil sales by the corporation to over N4 trillion in the year.
“It was observed from the examination of NNPC report to Technical Sub- Committee of Federation Account Allocation Committee meeting held in December 2016 that accumulative total of N4,076,548,336,749.75 remained unremitted to the Federation Account by NNPC as at 31st December 2016.
“The total revenue unremitted as at 1st January 2016 from amounts payable into the Federation Account by NNPC was₦3,878,955,039,855.73. The sum of N1,198,138,355,860.30 was due in revenue to the Federation Account out of the total generated in 2016, however, NNPC paid the sum of N1,000,545,058,966.20 resulting in an amount withheld of N197,593,296,894.02.
“This brought the total amount withheld by NNPC from the Federation Account as at 31 December 2016 to N4,076,548,336,749.75,” the Auditor-General of the Federation, Anthony Ayine, stated in his 2016 annual report.
The Nigerian National Petroleum Corporation (NNPC) has said it recorded a trading surplus of ₦17.16 billion in April.
In a statement on Thursday in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the surplus indicated a ₦5.43 billion improvement, representing 46.29 percent on the trading surplus recorded in March.
According to him, the trading surplus was part of the highlight of the corporation’s Monthly Financial and Operations Report for April, 2018.
He said the report is the 33rd edition since NNPC commenced the publication of its financial and operations report on a monthly basis as part of efforts to instill a culture of transparency and keep stakeholders and the general public informed of its activities.
The NNPC boss added that the trading surplus was achieved through a combined higher performance by the upstream, midstream (refineries) and downstream sectors as well as a reduction in Corporate Headquarters’ operational expenditure.
He quoted the report to have said, “This enhanced performance is attributable to robust revenues from sales of crude oil and petroleum products by NPDC and PPMC as well as the upsurge in refineries’ performance, particularly in the Port Harcourt Refining Company (PHRC).”
On the gas production and supply front, the report indicated that the average daily production for April, 2018, stood at 8,054.46 billion cubic feet (bcf), out of which an average of 835.27 million metric standard cubic feet (mmscf), equivalent of 3,283 megawatts of electricity, was supplied to the power sector daily during the period under review.
“The result when compared with that of April, 2017, implies an increase of 496mw of power generated relative to same period last year,” Ughamadu said, quoting the report.
It further showed that in the period under review, a total of 1.61 billion litres of Premium Motor Spirit (petrol) was supplied by NNPC in furtherance of the zero fuel queue policy of the Federal Government.
The NNPC said it recorded a 48.21 percent reduction in the rate of pipeline vandalism which fell to 166 from 224 vandalized points in the previous month.
According to the report, the Aba-Enugu pipeline segment accounted for 78 vandalized points, representing 84.78 percent of total vandalized points on the nation’s network of products pipelines.
The Minister of State for Petroleum Resources, Ibe Kachikwu, on Tuesday said there were no plans by Federal Government to sell its stakes in the Nigerian Liquefied and Natural Gas (NLNG) Limited.
The Federal Government has 49 percent equity holding in the NLNG, Shell Gas B.V owns 25.6 percent, Total has 15 percent of the shares, while Eni international owns 10.4 percent share holding.
The minister made the disclosure while answering questions from the House of Representatives Committee on Gas Resources and Allied Matters in Abuja.
Kachikwu, who was represented by the Director of Gas Resources in the ministry, Esther Ifejika, noted that the ministry was not aware of any plan to sell the company.
According to the minister, “The ministry is not aware of any plan by the Federal Government to sell the NLNG.”
In May, the House had ordered an investigation into the allegation, the order followed a motion raised by Hon Randolph Oruene-Brown over plans by the Federal Government to generate money to inject into the nation’s economy.
“(The House is) aware that the Minister of Budget and National Planning, Udoma Udo-Udoma, stated that one of the ways to fund the plan would be through the sale of some national assets and the proceeds reinvested in the economy to raise the needed capital for infrastructural development.
“(The House is) also aware that the NLNG is one of the most successful ventures that Nigeria has embarked upon when it started from train one through to the sixth train and now the seventh train in the offing.
“The House is worried that the Revenue Mobilisation Allocation and Fiscal Commission and the Nigeria Labour Congress, among other organisations, have seriously frowned on this move and warned the Federal Government against the proposed sale of national assets, especially the NLNG,” Oruene-Brown had said.
NNPC, Nigeria’s cash cow refused to release oil money for sharing
The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to set up a subsidiary to provide refueling services to ships and other ocean-going vessels.
A statement by its spokesman, Mr. Ndu Ughamadu, in Abuja on Wednesday, said the move was to consolidate its foothold on the shipping business in Nigeria and boost profitability.
It said the Group General Manager, NNPC Shipping, Mrs. Aisha Katagum, disclosed this in the corporation’s in-house journal. She said: “Actually, the NNPC Group Managing Director (GMD) is also very keen on that.
“He has directed the Corporate Planning and Strategy (CP&S) Division to come up with a business model for us to see how it could operate.”
According to her, the bunkering subsidiary is most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shipping Division. She added that the proposed company would likely be domiciled in the NNPC Shipping Division too.
“I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.” She said
Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping Division. While Nikorma engages in shipping and transportation of energy products, Marine Logistics on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector.
The Marine Logistics have the mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.
Indications have emerged that the nation may soon begin to earn less from crude oil as the monthly volume of Nigerian oil imports into the United States dropped to 2.89 million barrels in May, the lowest since February 2016.
Crude oil accounts for over 70 percent of the Nigeria’s revenue and more than 95 percent of its foreign exchange earnings, while the United States (U.S) was the country’s fourth largest export destination, according to a recent Foreign Trade Statistics by the National Bureau of Statistics (NBS).
The latest data obtained by our correspondent from the US Energy Information Administration (EIA) during the weekend showed that the United States reduced its importation of Nigerian crude oil by 62.65 percent from 7.75 million barrels recorded in April.
Nigeria may start earning less as U.S slashes oil importation by 62%
The depreciation in the demand of the commodity, which was the largest monthly decline in more than three years, was occasioned by the increase in the production of the U.S crude.
Read Also: Nigeria earns $26bn from oil in 7 months as oil prices rise
An analysis of the data from the statistical arm of the U.S Energy Department revealed that, the country imported 10.03 million barrels of Nigerian crude in January.
It, however, reduced the importation of the commodity for the first time this year from 10.34 million barrels in February to 3.92 barrels in March, indicating 62.08 percent drop. In April, 2018, the U.S bought 7.7 million barrels of the commodity.
Within the first five months of 2018, the total Nigerian crude imports by the U.S stood at 34.93 million barrels, this is over 20 percent drop from 43.83 million barrels imported in the corresponding period last year.
The U.S crude imports from Nigeria was on a steady decline since it peaked 368.42 million barrels in 2010, it fell to 21.46 million barrels in 2014 and 19.86 million barrels in 2015 following the drop in the prices of crude oil in the international market.
However, the oil imports rose to 75.81 million barrels in 2016 and further increased to 112.92 million barrels in 2017.
But since crude oil production in the U.S began to boom in recent months, reaching 10.9 million barrels per day (mbpd) in June and 11 mbpd two weeks ago from 2.33 mbpd in April, the country has continued reduce its crude importation.
The EIA had reported last week that the U.S net import of the commodity fell by 1.05 mbpd to an average of 6.36 mbpd, with 10.7 mbpd and 1.7 mbpd as projections for the country’s crude oil production for 2018 and 2019, respectively.
The Nigerian National Petroleum Corporation (NNPC) has announced plans to relocate a brownfied refinery from Turkey to Nigeria.
The refinery, which is expected to be sited near the Port Harcourt Refinery in Rivers State under the NNPC refinery collocation initiative, would have a capacity of 100,000 barrels per day (bpd).
In a statement on Tuesday, the corporation’s spokesman, Ndu Ughamadu, said the Group Managing Director of NNPC, Maikanti Baru, made the disclosure while speaking on efforts being made to achieve self-sufficiency in local refining besides the rehabilitation of the refineries.
Baru hinted that a group of investors had commenced the process of relocating the refinery that used to be owned by BP to Nigeria from the Asian country.
The NNPC helmsman explained that a similar plan to establish a brownfield refinery near the Warri Refinery was also in the offing.
According to the statement, the effort was part of the corporation’s refinery collocation initiative designed to boost local refining capacity to end the era of petroleum products importation.
The statement quoted Baru as saying, “Our collocation initiative aimed at getting private sector investors to bring in brownfield refineries so that they can share facilities is also yielding results.
“For example, there is one that is going to be brought in from Turkey to be located near the Port-Harcourt Refinery. It’s not a modular refinery; it’s a normal refinery with about 100,00bpd capacity. It was owned by BP, but it has been sold off now to the companies that want to bring it over from Turkey to install it here.
“There is another one of about the same size being looked at to be sited near the Warri Refinery. But the one for Port-Harcourt is at a more advanced stage. Our drive at the NNPC, as a leader in the industry, is to expand our local refining capacity and make Nigeria a global refining hub.”
The United State (U.S) product imports from the Organisation of the Petroleum Exporting Countries (OPEC) member countries dropped by 23 thousand barrels per day (tbpd) compared to a month before to stand at 301 tbpd.
Besides, OPEC has raised world oil demand by 1.65 million barrels per day (mbpd) in 2018 in its July monthly market report, unchanged from the previous month’s report, with expectations for total world consumption at 98.85 mbpd.
According to OPEC in its July oil market report, this represents a 14 per cent share of total US product imports.
In terms of the product supplier share, Canada and Russia maintained their position as first and second supplier to the US with shares of 25 per cent and 10 per cent, respectively.
However, imports from both countries were lower than the previous month by 121 tbpd and 86 tbpd, respectively.
India was the third largest product supplier to the US, up by 65 tbpd from the previous month.
Canada remained the top supplier to the US in April, accounting for 45 per cent of total U.S. crude imports.
Canada’s crude exports to the U.S. were up by 6 per cent, or 199 tbpd, compared to the previous month.
Saudi Arabia was the second largest supplier to the US with an 11 per cent share of total crude imports, closely followed by Iraq at 10 per cent.
Imports from Saudi Arabia were 138 tbpd higher m-o-m, while imports from Iraq were up by 122 tbpd.
Crude imports from OPEC Member Countries rose in April by 712 tbpd, or 28 per cent, compared to the previous month.
Imports from OPEC Member Countries accounted for 39 per cent of total US crude imports.
On crude oil demand projection, OPEC said the initial projection for 2019 indicates a global increase of around 1.45 mbpd, with annual average global consumption anticipated to surpass the 100 mbpd threshold.
Based on the first forecast for demand and non-OPEC supply for the year 2019, the demand for OPEC-15 crude next year is projected to decline by 0.8 mbpd to average 32.2 mbpd.
The Organisation for Economic Co-operation and Development (OECD) is once again expected to remain in positive territory, registering a rise of 0.27 mbpd with the bulk of gains originating in OECD America.
It noted that the non-OECD region is anticipated to lead oil demand growth in 2019 with initial projections indicating an increase of around 1.18 mbpd, most of which is attributed to China and India.
Additionally, a steady acceleration in oil demand growth is projected in Latin America and the Middle East.
According to secondary sources, OPEC crude production averaged 32.4 mbpd in first quarter of 2018, which is 0.1 mbpd higher than the demand for OPEC crude.
The report stated that in the second quarter, OPEC crude production stood at 32.2 mbpd, which is 0.3 mbpd lower than the demand for OPEC crude.
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has said that Nigeria will rely on Nigerian Gas Processing and Transportation Company (NGPTC), a subsidiary of the NNPC, to deliver a 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
The project, expected to be executed with about $3 billion, includes other key projects that will see the country expending over $38.5 billion on oil, petroleum products and natural gas pipelines between 2018 and 2022, according to data company, GlobalData.
Speaking on the sidelines of the 2017 Annual General Meeting (AGM) of the company, Baru, who also functioned as the chairman of the AGM, said the corporation was relying on the NGPTC’s competence to deliver the 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
He said apart from the AKK gas project, the company was also busy putting together new pipelines like the OB3 projected to come into operation later in the year alongside other significant gas pipeline projects across the length and breadth of the country designed as an integral part of the bigger trans-Nigerian gas pipeline system.
The NNPC boss commended the management and members of staff of the company for recording a profit after tax of N6.11 billion in its first year of operation under the new structure.
He said the NNPC management was looking forward to a bright future for NGTPC as it continued to show great promise and positive performance despite operating in an environment laden with incessant pipeline vandalism and condensate evacuation challenges.
Chief Operating Officer, Gas and Power and Chairman of the NGPTC Board, Saidu Mohammed, said the NGPTC was focused on consolidating on its strength and grow to bigger levels, noting that by 2019, the company would have leapfrogged into the big league with most of its ongoing gas infrastructure projects coming on stream.
Also, Managing Director of the company, Babatunde Bakare, said the 2017 AGM result showcases the corporation’s resolve to align with the prime objective of the Federal Government to harness the nation’s gas resources for the overall benefit of the Nigerian economy.
In another development, the Minna Depot of the Nigerian National Petroleum Corporation (NNPC) in Pogo, near Minna in Niger State, was gutted by fire yesterday.
The fire, which started exactly at 11.00 a.m., created panic along the ever-busy Minna-Paiko road, leaving commuters stranded.
A resident of the area, Malam Ibrahim Paiko, who spoke with The Guardian in Minna, said the leakage started since Saturday but the scooping by the boys started around 2.00 a.m. yesterday.
According to him: “When the leakage started early this morning, it ran through the gutters which made black marketers scoop from it.
Besides, the Public Relations Officer (PRO) of the NSCDC, Malam Ibrahim Yahaya, who spoke with The Guardian, said: “For now, we have not been able to ascertain whether there is any casualty.”
Also, the Director-General, Niger State Emergency Management Agency (NSEMA), Ahmed Ibrahim Inga, who confirmed the incident, said: “We thank God everything has returned to normalcy. Evacuation measures have been put in place and thank God the situation is now calm.