Tag: Crude oil

  • $2.4bn Crude Oil Diversion Claim Baseless – AGF, Malami

    $2.4bn Crude Oil Diversion Claim Baseless – AGF, Malami

    The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami says the allegation of loss of over 2.4 billion dollars from illegal sale of 40 million barrels of crude oil is baseless.

    He stated this on Thursday when he appeared before the House of Representatives Adhoc Committee which is investigating the matter.

    According to Malami, after investigating the allegation, it was observed that the origin of the crude allegedly lost in China was unknown, this was communicated to President Muhammadu Buhari.

    The AGF also informed the lawmakers that details of whistle blowers as requested by the committee cannot be disclosed at a public hearing because it breached confidentiality and indeed the whistle blower policy.

    With regard to details of accounts into which recovered monies were paid, he said the Central Bank of Nigeria (CBN) maintained these accounts which are operated by the Ministry of Finance, maintained in the apex bank and that the AGF is not a signatory.

  • Naval Chief:  Some personnel colluding with criminals to steal crude oil

    Naval Chief:  Some personnel colluding with criminals to steal crude oil

    The Chief of Naval Staff (CNS), Vice Admiral Awwal Gambo has hinted that some personnel are colluding with criminal elements to sabotage efforts of the Nigeria Navy at curbing illegal bunkering and crude oil theft in the country.

    Channels TV reports that he made the disclosure at the decoration of the newly promoted Rear Admirals in Abuja, where he warned that any personnel caught would be made to face the stiff penalty of the law.

    Meanwhile, the Chief of Defence Staff, General Lucky Irabor, who was at the event, tasked the Navy with the elimination of crude oil theft in the country.

    A total of 30 Commodores were promoted to the rank of Rear Admiral, and each of them was decorated by a member of their family alongside an officer. In the midst of the celebration, the CNS urged them to remain loyal to the President and the country as a whole.

    He said the Nigerian Navy has recorded achievements in the fight against illegal bunkering and oil theft. However, Gambo disclosed that some personnel are colluding with criminal elements to sabotage the efforts of the navy.

    He warned that any personnel caught sabotaging the measures that have been put in place by the navy will meet a stiff penalty and the wrath of the law.

  • Oil and gas can no longer sustain Nigeria – Ex-president 

    Oil and gas can no longer sustain Nigeria – Ex-president 

    Former President Olusegun Obasanjo has said the oil and gas sector can no longer sustain the nation in the face of burgeoning population.

    Obasanjo said this when he hosted the leadership of the apex socio-cultural group of the Tiv from Benue State, Mzough U Tiv (MUT) at his Olusegun Obasanjo Presidential Library (OOPL) penthouse in Abeokuta, the Ogun State capital, at the weekend.

    He urged fellow Nigerians to see the country as one for all “to save it and restore to what God has created it to be”.

    The elder statesman, who was responding to a speech by MUT’s President General, Chief C. P. Iorbee Ihagh, noted that only more farming and modernised agricultural businesses could solve the food needs of Nigeria’s growing population.

    In a statement by his Special Assistant on Media, Kehinde Akinyemi, the former President and renowned farmer advised the Tiv nationality to focus on farming and agricultural businesses.

    The elder statesman said he had treated the burning of his farm in Benue State as an act of fate, hinting that he might establish an industry in the state next year.

    Obasanjo said he supported the change of the country’s leadership from the North to the South while, adding that the Middle Belt should continue to call for rotational presidency.

    “If Nigeria is ready to get it right, the 2023 election should be a turning point. We should not go for emotion that will destroy us,” he said.

    The ex-President, who was conferred with the title of a “Great Warrior” of Tiv land by MUT, warned that voting for candidates on the basis of emotions would be destructive.

    Ihagh said the group’s friendship visit “is basically to interface with you as our former Head of State, a political pillar, a nationalist, and an elder statesman, to appreciate your overwhelming love, passion and he concern you have demonstrated over the Tiv people”.

    The MUT president general listed three prayers for the former President’s consideration, including the need for the establishment of a fruit juice industry in Benue State and inclusive national politics.

    He reminded Obasanjo of Fulani herders’ attacks on TIV land and the group’s position on the need for a power sharing formula among the nation’s diverse ethnic nationalities.

    “With regard to the current power equation in the country, we in the Mzough u Tiv, in conjunction with the Middle Belt Forum, had unanimously resolved for power shift from the North to the South for fairness, justice and a true federalism.

    “We want to call on Your Excellency and other well-meaning Nigerians to strictly adhere to the principle of rotation and distributive justice.

    “If this is enforced, the Middle Belt would also be assured of producing the next President in Year 2031,” Ihagh said.

  • How Crude Oil Thieves Used Technology To Lay Pipelines – Mele Kyari

    How Crude Oil Thieves Used Technology To Lay Pipelines – Mele Kyari

    The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mallam Mele Kyari, has lamented the spate of oil theft in the country, saying those that engage in the act use technology to lay pipelines.

    Kyari, who spoke on Newsnight, a pre-recorded programme on Channels Television, said thieves succeeded in stealing the nation’s crude oil due to collaboration with government and security officials.

    Noting that collaboration within the system has aided crude oil theft for a while, the NNPC boss said the extent of such collaboration is unknown to the authorities.

    “When you introduce technology into stealing and this is precisely what they did and when there is a collaboration of people who should not be part of that transactions, you can lay pipelines and no one will see it,” he said.

    “You can do it in the night if you have the abilities and ultimately, this is what we think happened. You can lay pipelines for the wrong reasons to abandon or active assets. You will see end-to-end collaboration either by people who are around those assets, people operating the assets or people supposed to provide security.

    “You can eliminate anything. When you find collaborators in the system, then you can get anything done. We didn’t know because the extent of collaboration is unknown to us.”

    On the way forward, the NNPC boss noted that the government has stepped up efforts to tackling the scourge of crude oil thefts.

    One of the measures, he explained, is that the authorities backed by other stakeholders now have full surveillance of the nation’s oil infrastructure and are facing this challenge squarely.

    Kyari stated that the Federal Government has deployed helicopters for 24-hour surveillance to monitor and protect pipelines.

    Oil theft has become a malignant cancer in Nigeria for years with unimaginable volumes of oil being lifted by some cabals in the oil sector. Recently, the Nigerian National Petroleum Company (NNPC) Limited said it uncovered an illegal oil connection from Forcados Terminal that operated for nine years with about 600,000 barrels per day of oil lost in the same period.

    Similarly, a former militant leader, Government Ekpemepulo, popularly known as Tompolo, said about 58 illegal oil points have been discovered so far since the operation to end oil theft on the waterways of Delta and Bayelsa states began.

  • BREAKING: Nigeria Records  Lowest Oil Output at 972,394 bpd

    BREAKING: Nigeria Records Lowest Oil Output at 972,394 bpd

    More worries for the Nigerian government as crude oil production dropped below the one million mark in August 2022.

    Reports showed that oil output averaged 972,394 barrels per day (bpd) for the month, hitting an all-time low.

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for August 2022.

    According to the report, the drop is more than 10 percent compared to July 2022 production at 1.08 million barrels a day and lower than the 1.8 million bpd production quota set by the Organisation of Petroleum Exporting Countries (OPEC).

    With condensate, production averaged 1.18 million barrels a per day for the month.

    Nigeria had been struggling to meet over 1.8 million barrels per day production quota of the Organisation of Petroleum Exporting Countries (OPEC) occasioned by oil theft and pipeline vandalism.

    It also affected the country’s earnings, resulting in a significant drop in monthly allocation to the federation account.

    On Wednesday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said its members would withdraw services if there is no traceable progress in tackling oil theft.

    Oil producers in Nigeria had also asked the federal government to tackle the menace of illegal oil bunkers, especially in the Niger Delta.

    They said oil thieves are raking in ‘petrodollars’ while the country is bedevilled by low production.

  • SERAP Sues Buhari For Spending N1.48 Trillion On Maintaining Refineries With No Crude Oil

    SERAP Sues Buhari For Spending N1.48 Trillion On Maintaining Refineries With No Crude Oil

    Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Muhammadu Buhari “over his failure to probe allegations that over N1.48 trillion reportedly spent on maintaining the country’s four refineries between 2015 and 2020 may have been stolen, mismanaged or diverted into private pockets.”

    The government reportedly spent N10.23 billion in June 2020 on three refineries that processed zero crude. Also in 2021, the government approved $1.5 billion (about N600 billion) to repair the Port Harcourt refinery. Despite the huge spending, the refineries are still not working while fuel scarcity persists.

    In the suit number FHC/L/CS/806/2022 filed last week at the Federal High Court, Lagos, SERAP is seeking “an order of mandamus to direct and compel President Buhari to investigate the spending on Nigeria’s refineries, and alleged mismanagement of public funds budgeted for maintaining the refineries since 1999.”

    SERAP is also seeking “an order of mandamus to compel President Buhari to ensure the prosecution of anyone suspected to be responsible for the importation and distribution of dirty fuel into Nigeria and to identify and ensure access to justice and effective remedies to affected victims.

    SERAP is arguing that “It is in the public interest to ensure justice and accountability for alleged corruption and mismanagement in the oil sector, which has resulted in the importation and distribution of dirty fuel and protracted fuel scarcity in the country.”

    According to SERAP, “Nigerian Constitution 1999 [as amended], and international standards impose clear obligations on the Buhari administration to take effective accountability measures to weed out, expose, and punish allegations of corruption in the oil sector, and to ensure effective remedies for victims.”

    SERAP is also arguing that “Ensuring justice and accountability in the spending of public funds on refineries would improve the availability of petrol and the enjoyment by Nigerians of their right to natural wealth and resources.”

    “Impunity for alleged corruption in the oil sector has contributed to the importation and distribution of bad fuel, violating the human rights of many users, including to a safe, clean, healthy and sustainable environment.

    “The Buhari administration has legal obligations under Section 15(5) of the Nigerian Constitution to abolish all corrupt practices and abuse of power, and article 26 of the UN Convention against Corruption to ensure effective prosecution of allegations of corruption.

    “Alleged corruption and mismanagement in the oil sector and the importation and distribution of dirty fuel have continued to deprive Nigerians of economic opportunities, subjecting them to cruel and degrading treatment.”

    The commission is seeking “an order of mandamus to direct and compel President Buhari to instruct appropriate anti-corruption agencies to jointly track and monitor the spending of public funds to rehabilitate, operate, and maintain Nigeria’s refineries.”

    Joined in the suit as Respondent is Mr Abubakar Malami, SAN, Attorney General of the Federation and Minister of Justice.

    The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Ms Adelanke Aremo, read in part: “Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. These commitments ought to be fully upheld and respected.”

    “Directing and compelling President Buhari to probe allegations of corruption and mismanagement of the money meant to repair the country’s refineries would advance the rights of victims of corruption to restitution, compensation and guarantee of non-repetition.”

    “Combating the corruption epidemic in the oil sector would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the government to meet its human rights and anti-corruption obligations.”

    “Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from their own natural wealth and resources, primarily because of widespread grand corruption, and the impunity of perpetrators.”

    “High-ranking public officials, including officers of the Nigerian National Petroleum Company Limited suspected of complicity in the allegations of corruption and mismanagement in the oil sector, and the importation and distribution of adulterated fuel have continued to enjoy impunity.”

    “Under Section 16(1) of the Constitution, the government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

    “Under article 24 of the African Charter on Human and Peoples’ Rights, Nigerians have the ‘right to a general satisfactory environment favourable to their development.’”

    “According to reports, petroleum products with methanol quantities above Nigeria’s specification were recently imported into the country.”

    “The Nigerian National Petroleum Corporation (NNPC) reportedly stated that the methanol-blended petrol was imported into the country by a few suppliers through four premium motor spirit cargoes under its Direct Sales Direct Purchase (DSDP) arrangement.”

    According to further reports, for every 200 litres of the adulterated product, 800 litres of petrol with good quality would be required for the blending to be done.

    “The government spends over N264 billion annually to operate and maintain the country’s refineries. Successive governments have reportedly spent trillions of Naira to rehabilitate, operate and maintain the refineries that have produced little or no fuel.”

    “The government reportedly spent $396 million for maintenance of the country’s refineries between 2015 and 2020 alone. Despite this huge spending, millions of Nigerians continue to lack access to a full and unhindered supply of fuel.”

    “About N82.82 billion was reportedly spent in 2015; N78.95 billion in 2016; N604.127 billion in 2017; N426.66 billion in 2019; N218.18 billion in 2019, and N64.534 billion expenditure was recorded from January to June 2020.”

    A date for the hearing of the suit is yet to be fixed.

  • NNPC Confirms $224.29m Receipt From Crude Oil Export in August

    NNPC Confirms $224.29m Receipt From Crude Oil Export in August

    The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it received $224.29 million from crude oil and gas export in August 2021 as against $191.26million in July 2021.

    The Corporation in a statement by its Group General Manager, Group Public Affairs Division, Garba Deen Muhammad on Wednesday said export of crude oil amounted to $7.77million while gas and miscellaneous receipts stood at $65.26 million and $151.26million respectively.

    It also disclosed that total crude oil and gas export receipt for the period of August 2020 to August 2021 stood at $1.84 billion.

    Mr. Muhammad said the information contained in the August 2021 NNPC Monthly Financial and Operations Report (MFOR) also revealed that in the gas sector, a total of 233.57 billion cubic feet (bcf) of natural gas was produced in the month of August 2021 translating to an average daily production of 7,534.67million standard cubic feet per day (mmscfd).

    “For the period of August 2020 to August 2021, a total of 2,890.67bcf of gas was produced representing an average daily production of 7,303.61mmscfd during the period.

    “Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 57.51 percent, 20.88 percent and 21.62 percent respectively to the total national gas production.

    “The report also indicates that out of the 208.64bcf of gas supplied in August 2021, a total of 131.35bcf was commercialized, consisting of 40.22bcf and 91.13bcf for the domestic and export markets respectively.

    This translates to an average total supply of 1,297.54mmscfd to the domestic market and 2,939.31mmscfd of gas to the export market for the month”, he added.

    NNPC also stated that total gas supply for the period of August 2020 to August 2021 stood at 2,792.28bcf out of which 537.51bcf and 1,245.93bcf were commercialized for the domestic and export markets respectively.

    It said in the downstream sector, “a total of 1.532 billion litres of white products were sold and distributed by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, in the month of August 2021.

    “A breakdown of the figure indicates that petrol accounted for 99 percent of total sales, while Automotive Gas Oil (AGO), also known as diesel, accounted for the rest.

    “Total sale of white products for the period of August 2020 to August 2021 stood at 20.032billion with petrol accounting for 99.81 percent.

    “In terms of value, a total sum of N203.43billion was made on the sale of white products by PPMC in the month of August 2021.

    “Total revenues generated from the sales of white products for the period of August 2020 to August 2021 stood at N2.619 trillion with petrol contributing about 99.76 percent of the total sales with a value of N2.613trillion”.

    The Corporation also reported that 21 pipeline points were vandalized during the month representing 50 percent decrease from the 42 points recorded in July 2021.

    “Port Harcourt area accounted for 10 percent, while Mosimi Area accounted for 90 percent of the vandalized points”, it added.

  • Navy Recovers 3m Litres of Crude Oil, Arrests 13 Pipeline Vandals

    Navy Recovers 3m Litres of Crude Oil, Arrests 13 Pipeline Vandals

    Troops of the Nigerian Navy Ship (NNS) Pathfinder have arrested 13 persons suspected to be pipeline vandals and recovered about three million litres of crude oil and diesel in a major operation in Rivers.

    The Base Operations Officer, NNS Pathfinder, Port Harcourt, Cdr. Umar Sidi, told newsmen during the destruction of two illegal refining sites in Abise community, Akuku Toru LGA, on Friday.

    He said the suspects were arrested in Akuku Toru by troops attached to ‘Operation River Dominance,’ launched by the navy in support of Rivers Government’s campaign against illegal refineries.

    “We arrested the 13 suspects since we began the operation 13 days ago (Jan. 18), to support the Rivers State Government’s fight against illegal refineries causing soot pollution in the state.

    “So far, we have destroyed over 44 illegal refineries and seized 14 large wooden boats and three barges carrying a combined three million litres of both crude oil and diesel.

    “Currently, we are gaining more grounds as we dismantle more illegal refining sites in the ongoing operation,” he said.

    Sidi attributed the successful conduct of the ongoing operation to the support of other security agencies and both the state and local governments.

    According to him, the establishment of riverine command posts and water board guard posts within waterways by NNS Pathfinder contributed largely to the achievements recorded.

    “The establishment of these posts denied freedom of action to the economic saboteurs by stopping them from moving the illegally refined and stolen petroleum products.

    “Stopping the movement of illegal artisanal refiners is key in attaining our collective objective of fighting economic saboteurs in Rivers.

    “The base is also pleased with the level of cohesion between the navy, local civil authorities and other security agencies,” he added.

    Speaking, the Chairman of Akuku Toru Local Government Council, Mr Rowland Sekibo, said the activities of illegal refiners had destroyed both the ecosystem and aquatic life in the area.

    He said the local government area was home to several illegal bunkering sites before Governor Nyesom Wike’s directives to clampdown on activities of oil thieves.

    “So, we have raided two clusters (of illegal refineries) and we are currently at the third cluster in Abise community to destroy all identified illegal refineries in the area.

    “Land is the first right of man, and as such, when the land is destroyed, it leads to poverty and suffering.

    “It is alarming to note that this (Abise) environment has been completely destroyed because of greed by criminals,” he said.

    Sekibo commended the Navy for its massive deployment of patrol gunboats and troops, to effectively end illegal refining of crude oil which is responsible for soot pollution in the state. (NAN)

  • Crude Oil Price Tops $93 a Barrel, Highest in Seven Years

    Crude Oil Price Tops $93 a Barrel, Highest in Seven Years

    Crude oil prices spiked above $93 a barrel on Friday, the highest since October 1, 2014.

    Brent crude futures, the global oil benchmark, rose more than 2.9 percent to $93.54.

    Similarly, West Texas Intermediate (WTI) crude futures increased 2.5 percent to $92 a barrel.

    Over the past months, oil prices have continued to surge as countries relaxed lockdowns and dropped travel restrictions.

    On Wednesday, the Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, agreed to increase output by 400,000 barrels per day (bpd).

    Carsten Fritsch, a commodity analyst at Commerzbank, told Reuters that “the latest upswing was triggered by a cold snap in Texas, which is fuelling concerns about production outages in the Permian Basin, the largest U.S. shale play”.

    A massive winter storm had swept across central and north-east regions of the United States on Thursday, knocking out power in parts of six states.

    The oil market also gained support from tensions surrounding the Ukraine crisis, which raised concerns about potential supply disruptions.

    The rise in global crude oil prices should portend an upturn for Nigeria’s revenue — but subsidy payments shortchanged the government.

    In December 2021, subsidy payment gulped N270 billion, amounting to N1.43 trillion in annual expense, shrinking revenue accrued to the federation account.

  • BREAKING: Oil prices fall 4% amid surge in Omicron variant

    BREAKING: Oil prices fall 4% amid surge in Omicron variant

    Crude oil prices fell by 4 percent on Monday over rising cases of the Omicron coronavirus variant in Europe and the United States.

    Brent crude futures, the global benchmark, dropped by $3, or 4%, to $70.58 a barrel by 11:00 GMT+1 while U.S. West Texas Intermediate (WTI) crude futures fell $3.1 or 4.4%, to $67 a barrel.

    Over the weekend, the US Center for Disease Control and Prevention said the Omicron variant of COVID-19 will become the “dominant strain” in the coming weeks.

    The World Health Organisation (WHO) had said Omicron cases are doubling every 1.5 to 3 days with documented spread.

    Market analysts believed that the new cases could pose new restrictions on businesses and hit fuel demand.

    More to follow…