Nigeria's NNPC 'failed to pay' $16bn in Oil Revenues

Nigeria's state-owned oil company has failed to pay the government $16bn (£11bn) in a suspected fraud, according to an official audit.

 

The Nigerian National Petroleum Corporation (NNPC) provided no explanation for the missing funds, the auditor general told MPs.

Oil revenue accounts for two-thirds of the government's funding.

President Muhammadu Buhari has promised to crack down on corruption since coming to office last May.

Federal Government Forecasts Zero Fuel Subsidy In This Year

The Federal Government has said that the novel price modulation mechanism currently in place will ensure that it records zero expenses on fuel subsidy in 2016.

The Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Emmanuel Ibe Kachickwu, said this last week, at the 45th Convocation Lecture of the University of Nigerian Nsukka, Enugu State. He spoke under the theme: The Petroleum Industry and the Future of the Nigerian National-Oil Resource Management and the Implication for National Security & Economic Survival. 

Kachikwu said the zero fuel subsidy will be sustained based on prevailing modified pricing template for petroleum products, which has eliminated extraneous cost elements. According to him, “Without necessarily removing subsidy the government will spend zero amounts in subsidy in 2016. This may sound unbelievable to some people but that is part of the change agenda of the present administration of President Mohammadu Buhari.” He also disclosed that large chunks of vandalised pipelines are being recovered which will supply more crude to the refineries. 

FG, IOCs, Banks in Talks over $4bn Debt

Nigeria is in talks with oil majo rs and banks to raise capital for new drilling and to repay up to $4bn in debt that the Nigerian National Petroleum Corporation has accumulated over years of mismanagement.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu

The Minister of State for Petroleum, Dr. Ibe Kachikwu, told Reuters that he wanted to increase crude oil output to 2.5 million barrels per day by the end of this year. Currently, the country pumps 2.3 million bpd.

Nigeria losing N80bn daily to petroleum products smuggling — NISA boss

Chairman of the Nigeria Shipowners Association, NISA, Capt. Niyi Labinjo,  has said that the country is losing N80 billion daily to petroleum products smuggled into the country.

 

In an exclusive interview with Vanguard, Labinjo explained that half the 1.8 million litres daily national need of Premium Motor Spirit, PMS, is smuggled into the country.

The NISA boss noted that the Nigerian National Petroleum Corporation, NNPC, said the daily PMS need of the country is 1.8 million litres and that it (NNPC) only supplies half the quantity while the other half is smuggled into the country.

Indigenous Operators Produce 6% of Nigeria’s oil

Independent and marginal oil fields’ operators as at the end of the third quarter, Q3, accounted for about 5.72 per cent of total crude oil and condensates production, according to the Nigerian National Petroleum Corporation, NNPC financial statement.

 

 The NNPC, in its Monthly Financial and Operations Report for October 2015, said the Independents/Marginal Fields operators produced 32.825 million barrels of crude oil and condensates in the nine-month period, compared to total production of 574.325 million barrels between January and September 2015.

Using an average oil price of $53.78 per barrel, as stipulated in the NNPC report, the 32.825 million barrels of crude oil and condensates produced by the Independents/Marginal Fields operators translates to $1.765 billion, an equivalent of N353.07 billion.

The report gave the production breakdown as follows:

NNPC, Shell to promote clean operations in Nigeria

The Nigerian National Petroleum Corporation, NNPC, and Shell Petroleum Development Company of Nigeria, SPDC, have reiterated their commitment to promoting sustainable development in the area of their operations across the country.

Speaking at the 2015 SPDC Joint Venture External Relations Road show and Exhibition in Abuja, the Group Executive Director, Exploration & Production, NNPC, Dr. Maikanti Baru, emphasised the need for organisations to operate and deliver services in a manner that is efficient and effective, with minimal impact on the environment.

 

Baru, who was represented by the General Managing, Planning, Nigeria Petroleum Investment Management Services, NAPIMS, Mr. Dung Gwom-Bot, maintained that while businesses should strive to be socially equitable and economically viable, they should also focus on meeting the basic needs of the population and future generation.

NNPC Sets $1bn Baseline Capacity Condition For OPA Offer

The Nigerian National Petroleum Corporation (NNPC) has set stringent conditions which includes that a company must have a minimum of $1 billion turnover to qualify for the new Offshore Processing Agreement (OPA) contract.

 

Also, the Corporation said before a company could be considered, it must have a refinery, affiliated to a refinery or access to a refinery, in addition to showing concrete plans to train and transfer knowledge to Nigerians who work in the companies.

NNPC Monthly Financial records N378bn loss in 8 months- Report

The Nigerian National Petroleum Corporation, NNPC, has announced a loss of N378.49 billion in its operations for the first eight months of the year.

 

One of NNPC’s subsidiaries, the Products and Pipeline Marketing Company Limited, PPMC, accounted for majority of the losses, as it spent over N300 billion on subsidy and in the repairs and management of its pipelines between January and August.

NNPC Appoints Four New Group Executive Directors

The Management of the Nigerian National Petroleum Corporation (NNPC) has appointed four new Group Executive Directors to man the four new Directorates that have been approved by the Presidency.

 

The new Group Managing Director, Emmanuel Ibe Kachikwu,

Oil projects above $17 per barrel not sustainable, says NNPC

New and existing oil projects that exceed $17 per barrel are not sustainable at the current average crude oil price of about $50 per barrel, says the Nigerian National Petroleum Corporation (NNPC).

 

Speaking at the 2015 Oloibiri lecture series and energy forum (OLEF), Timothy Okon, group coordinator, corporate planning & strategy, NNPC, said that beyond 33 percent cost-price ratio, the industry will suffer, adding that low cost-price ratio must be adhered to so that operators can make profit and pay government entitlements and taxes.