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‘Dangote Refinery ‘ll be sector’s game-changer’ for Nigeria’s oil industry

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Ghana’s Deputy Minister for Energy (Petroleum),  Mohammed Adam, has said the 650,000 barrels per day (bpd), refinery being built by Dangote Refinery and Petrochemical Company, will be a game-changer for Nigeria’s oil industry.

The refinery, estimated to cost over $14 billion, according to Adam, will attract global attention and market. He added that the initiative has raised hope for other African countries on the viability of investing in a huge refinery.

Adam spoke at the just-concluded 2017 African Downstream Oil Trading and Logistics (OTL) Expo in Lagos. The Expo’s theme was: “Downstream-Renewed Opportunities”.

He said the refinery would  open a sub-regional market with a West African price index for countries in the sub-region.

He said when the refinery becomes operational, Nigeria’s import of products would stop or reduce drastically, and the cost of products imports from Europe and Asia by smaller consuming countries around Nigeria would be expected to increase.

This is because Nigeria’s large petroleum imports, which are hugely subsidised and taken across the borders, would no longer be there for sub-regional neighbours.

Adam said: “The development in Nigeria reinforces my conviction that there is strong basis for shared infrastructure in our sub-regions, as this could integrate our industries, lower cost of business and reduce the prices of petroleum products.

“Transportation of fuels across the continent is largely by bulk road vehicles. It increases substantially, the cost of petroleum products for our people. It is possible working with the private transportation companies in our markets to build enduring Private-Public partnerships to build the railways and the pipelines that will cost-effectively deliver petroleum products across the regions while building substantial economic value for the states, the business and the people across this continent.”

According to him, developing an African market no doubt imposes greater demand for skills, adding that there is the need to readjust the educational curriculum and open new centres of excellence to provide relevant skills to the youth and prepare them for a very demanding industry.

Adam also said there was the need to harmonise policies and opportunities to allow the African downstream to deliver the infrastructure and services required by African economies.

To him, the drive to move from “dirty fuels” to “cleaner fuels” has resulted in most countries opting to tighten the specifications for gasoline and gasoil. He noted that the transition to low-sulphur fuel is the most topical issue that must be discussed at all levels on the African downstream industry.

Nigeria, Ghana, Kenya and other African countries had specified sulphur levels for diesel imported, Adam said, supporting the call for African countries to move to cleaner fuels as it presents an opportunity for investments in domestic refineries to meet national specifications, allowing the downstream to be supportive of the development goals of African economies.

According to him, following the sustained lower oil price environment of the last three years, there has emerged what is called “petro-democracy” in which citizens’ demand for greater accountability from their governments and players in the petroleum industry have improved. The demand for domestic prices to follow a symmetrical trend with international prices led to downward adjustments in prices in some countries.

According to Adam, one of the greatest challenges confronting the downstream petroleum industry was the inability to match the upstream industry in the area of safety and security. He noted that operating at the very end of the petroleum value chain, proximity to human populations, their health and safety, and consequently, their property, the requirements for improved safety standards placed on Nigerian and other African countries the duty to be more responsible.

( THE NATION)

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#NNPC: You Are Likely To Spend Up To 8 Hours Buying Fuel Today

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#NNPC

#NNPC: You Are Likely To Spend Up To 8 Hours Buying Fuel Today—-According to Independent research carried out by Newsmen last week and over the weekend has revealed that the average motorist in cities like Lagos and Abuja will likely spend up to 8 hours to get fuel today.

Peak periods: As observed by Newsmen, between the hours of 4 am and 7:30 pm from Monday to Sunday, the peak periods, which signify longer hours at filling stations across several locations in Lagos and Abuja are:

Mondays:

4:30 am to 9:00 am

12 noon to 2 pm

4 pm to 7 pm

Tuesdays:

5 am to 10 am

12 noon to 2 pm

4 pm to 7 pm

Wednesdays:

5 am to 9:30 am

11:30 am to 2 pm

3:30 pm to 7 pm

Thursdays:

4 am to 10:30 am

12 noon to 3 pm

3 pm to 7 pm

Fridays:

4 am to 12 noon

1 pm to 7 pm

Saturdays:

4 am to 12 noon

1 pm to 7:30 pm

Sundays:

8 am to 12 noon

2 pm to 7:30 pm

Growing trends

Motorists favor NNPC filling stations in Abuja: Newsmen research showed that filling stations owned by the Nigerian National Petroleum Company (NNPC) in suburbs like Kubwa, Karu, and Wuse in Abuja usually sell fuel from morning till nightfall, giving motorists the chance to buy fuel at N180 per liter.

Auwal Mohammed, a Lagos-based civil servant told Newsmen that he only buys fuel from NNPC because their fuel prices are less than what other stations are selling, but he suffers a lot for it because NNPC queues are longer. But in the end, he can fill up his tank at the rate they are selling.

As noticed by Newsmen, customers spend up to 8 hours in never-ending queues at NNPC stations, which impacts productivity. Some motorists have on occasion, had to sacrifice work hours just to get fuel directly from filling stations.

Nigerians are leaving their cars at home: Some have left their cars at home and tried to use the public transportation system, where they encounter exorbitant prices due to fuel scarcity. Tunde O, an Abuja-based motorist who spoke to Newsmen said he had abandoned his car at home in favour of the public transportation system for his work commute from Mararaba to Garki Area 8. He said he pays an average of N1000 for his daily commute now and that the drivers of the Hiace buses he uses are uncompromising when it comes to fare charges. He said:

  • “That’s how I know that fuel scarcity is a big challenge for them. There is no fuel and some filling stations have started locking up even before nightfall, so some of these bus drivers have to patronise the black-market traders and from what I hear, some of them sell as high as N600 per liter, depending on the location.”

Adapting to the situation: Jonathan Useni, an Abuja-based contractor told Nairametrics that the population is larger in areas like Nyanya, Mararaba and One-man Village compared to places like Asokoro, Wuse, Garki and Maitama. So, he and some other motorists, who live in Nyanya have worked out a system.

  • “Around 6 pm on weekdays, when we are sure that many people have closed from work and are on their way home and a lot of vehicles are locked in traffic, we drive from our areas in Nyanya to places like Wuse, Maitama, and surrounding areas to buy fuel. This is because those stations usually do not have long queues like you would see in the areas I mentioned, especially in the evenings. We can encounter queues or even locked stations, but, in the end, we must buy fuel.

Some filling stations are not serving motorists: Newsmen also noticed that some filling stations usually lock up during supposed work hours. It was revealed that owners/managers of these stations restrict sales due to the exorbitant prices they have to pay to private depot owners to get fuel. Nairametrics had earlier reported that private depot owners sell fuel to independent marketers at N195 to N210 per liter, as opposed to N148 per liter. Private depot owners are complaining about the cost of transportation from the mother vessel to their private depots because of the escalation of the cost of the dollar, as they buy their dollars at the black-market rate.

Nigerians are desensitized: Nigerians are stressed out from the fuel scarcity challenge, however, there are scarce complaints across the board. Chukwudi Nelson, a commercial driver in Lagos told Nairametrics that Nigerians are no longer complaining because they know that the powers that be do not care, so they just tighten their belts and move on.

For the record: November 23 data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that the country had over 388 million liters of land-based stock of fuel as of November 22, 2022.

 

CREDIT: NAIRAMETRICS

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Sylva: FG To Grow Oil Reserves To 40Billion Barrels By 2025

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FG To Grow Oil Reserves To 40Billion Barrels By 2025

Sylva: FG To Grow Oil Reserves To 40Billion Barrels By 2025—-Chief Timipre Silva, Minister of Petroleum Resources, says one of the key mandates of the ministry is to grow oil reserves from the current 37 billion barrels to 40 billion barrels by 2025.

Sylva said this on Tuesday at the official ground-breaking of the Oil Prospecting Licenses (OPLs) 809 and 810 at the Kolmani River II well located at a border community between Bauchi and Gombe states.
The Kolmani Integrated Development Project was inaugurated by President Muhammadu Buhari with some top government officials including governors, cabinet members, captains of industry and Nigerian National Petroleum Company Ltd. (NNPCL) officials, among others in attendance.
He said he was particularly excited at the partnership between NNPCL, Sterling Global Oil, and New Nigeria Development Commission (NNDC), to carry out the drilling campaign.
“This is a testimony of the fact that the hydrocarbons sector still holds promise of returns on investment, highlighting the role that this resource will continue to play in the global energy mix,” Sylva said.
He recalled that in 2019 when the NNPC announced that it had encountered oil in ‘commercial quantities’ at the Kolmani River well II, the nation celebrated the news as a fitting outcome for years of geological investigations.
“In spite of the enormity of challenges that NNPC was confronted with, the day has come when we can collectively witness and celebrate drilling for hydrocarbons in the North of our dear country,” he said.
He said the ministry was committed to finding and developing ways to end energy poverty, create shared prosperity and enthrone sustainable development.
Sylva said the Petroleum Industry Act (PIA) provided regulatory support and framework for achieving this mandate by providing Frontier Exploration Fund which the NNPC could utilise to deploy world-class cutting-edge technologies to de-risk exploration in frontier basins.
“The commencement of drilling of Kolmani fields which could hold as much as one billion barrels crude oil reserve, will significantly contribute in boosting our oil reserves and ensuring our continuous energy sufficiency,” he said.
He thanked the President for demonstrating his commitment to the uninhibited development of the petroleum industry.
In a remark, the  Group Chief Executive Officer, NNPCL, Malam Mele Kyari, said the discovery of commercial oil and gas deposit at Kolmani oil field in 2019 was further appraised and validated by Kolmani team.
Kyari, while thanking the Bauchi and Gombe states governments and their partners  said development of framework was put in place to guarrantee financing and technology required to deliver the integrated project.
He assured the President that it would leverage every mechanism including asset based financing framework for delivery of the project for it to stand out as the administration’s lasting legacies.
Dr Ahmad Lawan, the Senate President, also lauded the President for achieving a landmark feat, adding that the Petroleum Industry Act (PIA) provided in section nine, five and four 30 per cent of profit from oil exploration.
Lawan said that Bauchi and Gombe states would soon be benefiting from the 13 per cent derivation and the host community development fund which would have serious impact on the lives of the host community dwellers.
He urged the government to use revenue generated from oil to improve livelihood of the dwellers and also to ensure deployment of  technology as well as ensure safe environment.
The senate president,  while decrying the worrisome sight of Niger-Delter region, especially Ogoni Land advised operators of the oil fields to avoid contaminating the environment.
In an address, the Group Managing Director, NNDC, Shehu Mai-Borno, pledged commitment toward the realisation of the integrated development project.
Also speaking, the Managing Director,  Sterling Oil Exploration and Energy Production Company Ltd., Mr Mohit Barot,  presented a short video indicating the project overview.
Barot, while thanking the Federal Government for finding the company as a reliable partner for achieving energy security said it had secured requisite financing required for the project.
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JUST IN: #NNPC And #DAEWOO Group Sign MoU For Rehabilitation Of Kaduna Refinery

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#NNPC And #DAEWOO Group

JUST IN: #NNPC And #DAEWOO Group Sign MoU For Rehabilitation Of Kaduna Refinery—President Muhammadu Buhari has expressed delight as he witnessed signing of the Memorandum of Understanding (MoU) between Nigerian National Petroleum Company Ltd and Daewoo Group for the rehabilitation of the Kaduna refinery.

Mr Femi Adesina, the President’s Special Adviser on Media and Publicity, confirmed this development in a statement on Thursday in Abuja.

Adesina said the president was particularly excited as the signing came against the back of ongoing rehabilitation works at Warri refinery by same Daewoo Group of South.

According to the presidential aide, the Warri refinery rehabilitation works, when completed, will at the first instance, deliver fuels production before the first half of 2023.

Adesina quoted the Nigerian leader as saying: “Daewoo Group has massive investments in the automobile, maritime and other sectors of our economy.

”I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners.”

The president said he looked forward to the delivery of ongoing projects, especially at the Warri and Kaduna refineries, and the NLNG Train Seven.

”This no doubt will open many more windows of opportunities for Daewoo and other Korean companies in Nigeria.

“I thank you for your faith in Nigeria,” Buhari told the Korean conglomerate at the end of the significant ceremony on the last day of his visit to the Asian country to attend the First World Bio Summit.

The News Agency of Nigeria (NAN) reports that President Buhari is expected back to Abuja from Seoul, South Korea, on Thursday night. (NAN)

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