Oil & Energy
Lawmakers Task Coys, Nigerians On Solutions To Adulterated Fuel
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Following the influx of adulterated fuel products into Nigeria, the House of Representatives’ Joint Committee on Petroleum Resources (Midstream and Downstream) has called on oil companies and stakeholders in the nation’s oil and gas sector to among other things submit proposals highlighting how to address and combat the menace.
The proposals are needed ahead of the lawmakers’ public hearing, following the committee’s forensic investigation into the challenges affecting the midstream and downstream petroleum sectors in Nigeria.
The call was made in a Press Release signed by the Spokesman of the committee, Rep. Akin Rotimi, and published on the Committee’s Facebook page on Thursday, August 1.
According to the release, Chairman of the Joint Committee of the House, Ikenga Imo Ugochinyere, disclosed that the joint committee was investigating allegations of production and importation of substandard fuel products and non-supply of crude to domestic refineries.
He said the initiative was empowered by Sections 88 and 89 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), which authorizes the National Assembly to conduct investigations.
Ugochinyere also stated that the investigation followed a resolution of the House on July 9, 2024, mandating the inquiry to address issues within these critical sectors.
“In view of this, the Joint Committee (Midstream and Downstream) invites stakeholders, petroleum industry experts, private oil companies, and the general public to submit memoranda to assist in this comprehensive investigation”, the statement partly reads.
It continued that “Issues each proposal should address include: Resurgence of fuel queues at petrol stations; unavailability of fuel stock for downstream domestic refineries; disruption of the distribution of PMS products; unfair subsidization of PMS and other petroleum products, racketeering, and favoritism in the Pro Forma Invoice (PFI) system; Indiscriminate issuance of licenses and importation of refined petroleum products.
“Alleged return of PMS price intervention; Allegation of product unavailability to marketers from NNPC Retail, endless shifting of timelines for refinery rehabilitation, and nefarious activities at petrol depots; unavailability of laboratories to check adulterated products; influx of adulterated products into the country; allegation of non-domestication of profits realized from crude marketing sales in local banks, and abuse of the PFI regime.
“Importation of products already being produced in Nigeria; use of international trading companies to resell fuel stock to local refineries.
“Also is the allegation of the return of subsidy on downstream PMS products; Unclarity about the exact landing cost of PMS reduction in retail price and its impact on downstream operations; Allegation of importation of substandard products and high-sulphur diesel into Nigeria; sale of petroleum products below fair market value impacting downstream and local refineries, and sources of funds for price interventions; Lack of support for local crude refiners”.
It also included “high cost of Premium Motor Spirit (PMS) and lack of clarity on PMS landing costs; Allegations of unfair subsidization, racketeering, favoritism in the Pro Forma Invoice (PFI) system, and abuse of the PFI regime.
“Presence of middlemen in trading; Importation of locally produced products like jet fuel and AGO; alleged return of PMS subsidy and issues surrounding the subsidy regime; Importation of substandard/high-sulphur diesel; failure of regulators like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce compliance and standards; forward sales, revenue from it, and its impact on domestic crude availability; sustainability of the ongoing endless turnaround maintenance of refineries.
“Alleged non-completion of the merger of OVH and NNPCL retail, and other challenges in the merger; Allegation of introduction of monopoly in petroleum products production; Sharp practices at depots and non-availability of petroleum products after payment; main causes of fuel availability crises, high costs, and alleged racketeering by marketers; demand for a ban on the importation of PMS and other petroleum products”.
The lawmakers stressed that the memoranda should highlight concerns, challenges, and proposed solutions to the issues.
“Submissions must be delivered in 10 hard copies, accompanied by two flash drives, to the office of the Clerk, Committee on Petroleum Resources (Downstream), Room HB. 44, White House, National Assembly, Abuja, by Wednesday, August 14, 2024.
By: Lady Godknows Ogbulu
Oil & Energy
FG, MEMAN Chart Ways To Safe Petroleum Products Delivery
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The Federal Government and key Petroleum Products marketers have proposed new measures to help curb rising cases of road accidents involving petrol tankers.
This followed recent incidents of road accidents resulting in cremation of hundreds of lives and causing extensive damage to properties.
Speaking at the Discourse organised by Mejor Energy Marketers Association of Nigeria (MEMAN) in Lagos, Thursday, with the theme “Improving Safe Transportation of Petroleum Products”, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, noted with dismay the number of casualties the country recorded recently due to tanker accidents.
Lokpobiri stressed the need for an enhanced training for tanker drivers, installation of detection leak devices as well as other safety systems that can assist drivers.
He called on Marketers and Federal Road Safety Commission (FRSC) to strengthen collaboration with stakeholders, especially in the training of tanker drivers.
On his part, the Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo, reaffirmed government’s commitment to providing enabling environment to ensure safety of petroleum products transportation.
Ekpo, who was represented by Engr. Abel, said consideration should be given to more safety means of transporting products like the pipelines and railway line.
He stressed the need for better training for drivers and implementation of safety regulations within the industry.
Earlier, Chairman, MEMAN, Huub Stokman, said the Association has elaborate training manual for members truck drivers.
Stokman insisted that more training programmes and consistent adherence to safety measures would help to curb road accidents involving tanker drivers.
Also speaking, the National President, Nigerian Association of Raod Transport Owners (NARTO), Yusuf Lawal Othman, called for support.
Oil & Energy
Benue To Pioneer Gas Production From Coal – NGEP
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The Chairman, National Gas Expansion Programme (NGEP), Prof. Mohammed Ibrahim, has said that the production of coal bed methane, an unconventional form of natural gas extracted from coal, is set to begin in Benue State.
Prof. Ibrahim staed this while addressing newsmen at the end of a joint meeting of the National and State gas expansion committees with Benue State Governor, Hyacinth Alia.
He said the Federal Government is committed to expanding gas availability in Nigeria for domestic use and mobility.
Ibrahim added that extracting gas from unconventional coal sources rather than traditional hydrocarbon reserves is a way to boost gas availability.
“Essentially there are four areas of implementation that the committee has identified. One is to pioneer the production of gas from what you call coal bed methane, which means that Benue is going to pioneer in the country the production of gas not from conventional hydrocarbon, but from non-conventional coal just so that the nation will have an alternative source to gas availability”, he said.
Also speaking, the Chairman, Benue State Gas Expansion Programme, Dr. Emmanuel Chenge, said the gas expansion initiative would contribute to the economic transformation of Benue State.
“The good news is that Benue is set to join the league of gas-producing states and if we are conversant with what being a member of the gas-producing state is, it shows that Benue State will start getting derivatives from that sector of the economy”, Dr Chenge stated.
The National Gas Expansion Programme (NGEP) was established to boost the exploration and utilisation of gas in Nigeria and make Nigeria a gas-based industrial nation by increasing the use of gas for transportation, cooking, and industrialization.
Oil & Energy
NNPC Debunks Explosion Claim In Warri Refinery
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The Nigeria National Petroleum Company Limited (NNPCL) has said there was no explosion at the newly refurbished Warri Refining and Petrochemical Company (WRPC).
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, made this known in a statement issued on Friday night.
Soneye said reports claiming that there was an explosion at the Warri refinery were false and should be ignored and disregarded by the public.
According to him, the refinery was undergoing routine maintenance.
His statement read, “NNPC Ltd. wishes to clarify that there was no explosion at the Warri Refining and Petrochemical Company (WRPC). Any reports suggesting otherwise are completely false.
“On January 25, 2025, operations at WRPC Area 1 were intentionally curtailed to carry out necessary intervention works on select equipment, including field instruments that were impacting sustainable and steady operations.
“These intervention works are essential to ensure the production of on-specification finished and intermediate products, particularly Automotive Gas Oil (AGO) and Kerosene (Kero).
“The routine maintenance is progressing as planned, and Area 1 will be back in operation within the next few days.
“Despite ongoing interventions, over the past 11 days, AGO loading has been maintained at an average of eight trucks per day, with a sufficient supply available to sustain ongoing truck load-out operations”.
Soneye added that the NNPCL was committed to ensuring an uninterrupted supply of petroleum products from the refinery.
He said the company “appreciates the patience and cooperation of all stakeholders as it completes these essential maintenance activities”.
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