NNPC: Pipeline vandals could cripple downstream sector

The Nigerian National Petroleum Corporation has said the activities of vandals who break into pipelines to steal petroleum products could cripple the downstream sector of the industry if left unchecked. The Group Managing Director, NNPC, Mr. Andrew Yakubu, was quoted as saying in a statement that in less than five months, the corporation’s pipelines were broken in 774 places by vandals.

Yakubu said this at the 3rd Triennial Delegates Conference of the Petroleum and Natural Gas Senior Staff Association in Abuja. According to him, less than one week after the vital System 2B was restored through extensive repair work on the ruptured Arepo point in Ogun State, the corporation was compelled to shut the line again due to Monday’s attack on the Ije-Ododo point in Lagos State.

He lamented the unending incidents of pipeline hacking and product theft, which he said posed great danger to the efficient distribution and supply of petroleum products in some parts of the country. If left unchecked, he added, the nefarious activities of pipeline marauders could cripple the smooth operation of the downstream sector of the industry.

Records indicate that with the incessant attacks on the nation’s vast artery of pipelines about 70 per cent of products distribution is through trucking or what is known in the industry as bridging into the hinterlands. This requires massive fleets of petroleum product trucks of up to 1, 212 trucks load out from the depots every day to meet the daily estimated national consumption. At an average vehicle turnaround of about eight to 10 days from the South to the North and return, a minimum of 10,000 trucks are required to ply the roads daily.

FG to spend N251bn on repair of three refineries

The Federal Government plans to spend N251.2bn on the repairs of three refineries. The Minister of Petroleum, Mrs. Diezani Alison-Madueke made the disclosure when she appeared before the Senate Committee on Petroleum (Downstream). The minister was at the Senate with the Group Managing Director of the NNPC, Andrew Yakubu, and the Managing Director of Pipeline and Products Marketing Company, Mr. Haruna Momoh. They were summoned to explain the continued scarcity of Petroleum Motor Spirit and the increase in the price of the product by marketers.

Alison-Madueke said the government would be spending N251.2b on the Turn Around Maintenance of the three refineries in the country, adding that there were some adjustments in the timelines for executing the TAM. She noted that although there were plans to build new refineries, existing ones would still be maintained.

Crude Oil Production Drops to 2.4mbpd

After recording an all time high crude oil production figure of 2.7 million barrels per day (mbpd) late July, Nigeria’s production of crude oil now averages at 2.4 mbpd. According to a statement from the acting General Manager, Public Affairs of Nigerian National Petroleum Corporation (NNPC), Mr. Fidel Pepple, the latest production figure was made known by the Group Managing Director of NNPC, Mr. Andrew Yakubu, at a function in Kaduna.

If the trend persists, it may affect the Federal Government’s revenue projection for 2013 for which the nation hopes to spend N4.929 trillion. 

The Federal Government in the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper that President Goodluck Jonathan submitted to the National Assembly in July had hinged revenue projection on the production of 2.53 mbpd of crude oil.

NNPC eyes Asian LNG Market

The Nigerian National Petroleum Corporation (NNPC) has said it is commencing a new trading strategy for forthcoming Liquefied Natural Gas (LNG) projects in Nigeria. The new marketing strategy for LNG, according to the Group Managing Director (GMD), Mr. Andy Yakubu, included capturing and retaining global high value LNG markets like the Asia-Pacific market as well as improved participation in the downstream segment of the LNG value chain.

 In his presentation at the maiden edition of LNG Producers-Consumers Conference, which was organised by the Government of Japan, the GMD said the corporation was compelled to expand its LNG trading strategy to include the competitive Asia market following changing market conditions in the Atlantic Basin which it services.

He stated the country’s LNG production capacity had grown from a modest two train base LNG project of 8 million tonnes per annum (mtpa) in 1999 to the current six operating train capacity of 22 mtpa, adding that the six trains exported about 22 mtpa of LNG, which represents 10 per cent of world LNG production in 2011.

Disclosing that the country’s overall target  was to immediately take a Final investment Decision (FID) on the Brass LNG’s 10mtpa project as well as a FID on the 7.8mtpa seventh train of Nigeria Liquefied Natural Gas (NLNG) and thereafter OKLNG, Yakubu said that with all these in place, Nigeria would comfortably service LNG needs of Atlantic and Pacific Basins respectively.

NNPC makes Oil discovery In Lake Chad Basin

Nigerian National Petroleum Corporation (NNPC) has announced the discovery of crude oil in about 3350 square metres in the Lake Chad Basin.

Vice President Sambo said during a meeting convened with experts within the NNPC and other public sectors at the State House, Abuja that the federal government is happy that surveys have indicated the presence of oil in the Chad Basin. Sambo expressed the appreciation of the Federal Government to the NNPC in the positive progress they are making in the exploration of hydrocarbon at the Lake Chad Basin. He noted that the budget provision is based on activity assessment and that the efforts so far expended and the achievements recorded so far will lead to the realization of the targeted goal.

The Group Managing Director of NNPC, Mr. Andrew Yakubu said that on the submission of the report of the investigation into the exploration of oil in the area, NNPC commissioned its subsidiary and consultants to start the exploration. The consultants include Chinese companies that had worked in similar ventures in Niger and Chad where crude oil has been found in commercial quantity. He noted that due to the high technology employed for the exploration, the area was divided into four phases and that work is currently ongoing on the fifth phase. Yakubu further added that three major sub-basins in the Lake Chad area namely Biu, Maiduguri and Barga had been identified and marked as low risk while work is currently going on in that area. But he pointed out that lack of security and adequate funding are the major challenges being faced in the speedy execution of the project.

The Lake Chad Basin, in the far North Eastern Borno State of Nigeria, is the hotbed of terror attacks and other forms of violence by the Islamic sect, Boko Haram.