THE management of the Nigerian National Petroleum Corporation, NNPC, has said the vandalised Benin-Warri and Kaduna-Jos pipelines have been repaired and the pumping of petroleum products has resumed.
Tumini E. Green, the acting group general manager, Group Public Affairs Division, made this known on last Tuesday in a press statement. Green condemned the persistent attacks on PPMC pipelines, stressing that pipeline vandalism has cost the corporation several billions of naira that would have impacted positively on the national economy.
“As soon as we got wind of attacks on our Benin-Warri pipelines and Kaduna-Jos pipelines, we mobilised to the areas affected and as we speak, the lines have been repaired and we have resumed pumping of petroleum products through those pipelines. Unfortunately, these vandals attacked our personnel who were on hand to effect repairs on the vandalised pipelines,” Green disclosed.
She said that even though two lives were lost in the Kaduna-Jos incident, no life was lost in the Benin-Warri incident, adding that the two injured and were responding to treatment.
The NNPC spokesperson called on the state governments, local governments, community leaders, relevant stakeholders and the public to join hands in protecting the PPMC pipelines and other infrastructure in order for the federal government to generate sufficient revenue that would be used in providing infrastructural facilities as well as curtail environmental degradation.
NNPC to Oshiomhole: You Lied
THE management of the Nigerian National Petroleum Corporation, NNPC, has refuted a statement credited to Adams Oshiomhole, Edo State governor, that the corporation owes the federation account N2.3 trillion. In a statement issued by Tumini Green, acting group general manager, public affairs, NNPC, the corporation expressed dismay at what it called the increasing unwarranted and unfounded accusations against it by otherwise informed persons in the polity.
“We wish to state without any equivocation that we do not owe the Federation Accounts any money as at today, taking into account outstanding subsidies and other associated costs of operations and losses. We have consistently paid all monies due to the Federation Account into its CBN account as we receive them,” it said.
The statement explained that not all revenues collected by the NNPC were paid directly into the federation account with the Central Bank of Nigeria, CBN. It noted that some of the monies were paid into the accounts of the relevant government agencies, like the Federal Inland Revenue Service and the Department of Petroleum Resources, also with the CBN. It said that another important issue which was not taken into account by critics, who reel out figures without cross-checking, was the outstanding debts owed the NNPC by the federal government, especially from subsidy.
“Nigerians may wish to recall that in the wake of the January 2012 subsidy saga, there was no budgetary provision for subsidy to the NNPC. And again, in 2013, there was no budgetary provision for subsidy to the Corporation. The NNPC has not received one kobo from the Federal Government in the name of fuel subsidy. Yet, Nigerians also know that the NNPC has been the major supplier of petroleum products to the nation during this period and before. Indeed, for the whole period that the subsidy saga continued, the NNPC was the sole supplier of PMS across the country, and we never failed to ensure that every nook and cranny of Nigeria was wet with PMS,” it said.
According to the statement, in addition to the outstanding payments, there are material loses that the Corporation incurs on almost a daily basis from crude oil theft, products theft, pipeline vandalism and other acts of sabotage which are beyond the control of the NNPC. “It is therefore imperative for all state governments, local government and authorities at all levels to join the NNPC to stem the incessant tide of crude oil theft, pipeline vandalism and other economic sabotage against the nation.”
Contributors to Global Oil Outages
NIGERIA is ranked fourth in the league of countries that contribute to global oil supply outages. A report by Deutsche Bank shows that the country loses over 200,000 barrels of crude oil per day to pipeline vandalism, crude oil theft and spillages. According to estimates, total global outages amount to 3.15 million bpd, about 3.5 percent of daily world oil demand of 90 million bpd.
Nigeria, Africa’s top oil producer, grapples with upsurge in crude oil thefts and force majeure, resulting in frequent production shutdowns and massive oil leakages in recent time. Italian oil major, Eni last month lifted a force majeure it imposed on its Nigerian Brass River crude oil production in March. In August, the company said oil theft, sabotage and adverse natural events such as flooding have hurt its operations in Nigeria, amounting to a daily loss of 30,000 barrels of oil equivalent in the first half of the year, that’s equivalent to two percent of the company’s overall production in the period.
The analysis shows Libya as the country with the biggest outages, losing 1.2 million bpd due to strikes and protests, followed by Iran with 1.1 million bpd as a result of the US and European sanctions over nuclear programme. In Syria, outages amount to 300,000bpd caused by the civil war and Iraq lost 200,000bpd due to disruption of its Northern pipeline. The estimates, compiled by Reuters, show South Sudan as having the least supply outages with 150,000bpd occasioned by political tension with Sudan.
Economic Confidential reports that crude oil theft has continued to thwart Nigeria from coming near the 2.53 million bpd estimate in the 2013 budget, with huge revenue losses estimated at over $1.23 billion (N190bn) in the first quarter, according to the Nigerian National Petroleum Corporation.
Nigeria, which earns more than 90 percent of its foreign exchange and about 80 percent of government revenue from its oil industry, has seen a decline in production and revenue in recent times. Government’s gross revenue dropped 42 percent month-on-month to N497.98 billion ($3.1bn) in July from N863.02 billion received in June, because of disruption to oil production caused by thieves hacking into pipelines.
World Bank’s Unprecedented Investment
THE World Bank group is to undertake its biggest financing programme in Nigeria’s power sector. Bernard Sheahan, director, infrastructure department, International Finance Corporation, IFC, a subsidiary of the World Bank Group, said the World Bank planned to provide financing for a number of the power projects, such as providing funding for some of the transmission cost and guaranteeing some of the risks in the sector.
“The World Bank will provide funding for some of the transmission costs. The Partial Risk Guarantee programme that the World Bank is planning for Nigeria will be the largest of such programme anywhere in the world. This integrated business plan for the power sector by the World Bank Group is something we have never tried anywhere else. We are doing this because of the magnitude of the needs here and we think that it will potentially payoff, both for Nigeria and for opening up a really important market for investors,” he said.
He said the IFC is already in discussion with the federal government of Nigeria, on how best to set up the next stage of the power reforms programme. He also said that the IFC has started disbursing some money as co-developers to one of the first Independent Power Projects, IPPs, with the hope of bringing the project to financial closure soonest.
Sheahan noted that in the past, the role of the IFC and other agencies of the World Bank, was mainly advisory, adding that at the moment, they are moving into the financing phase, through the IPPs and eventually some of the distribution companies, as well. He expressed support for the tariff system, saying it is a critical part of a system intending to grow that will ensure transparency and will enable the distribution companies to generate enough cash to expand their network and grow capacity.
Compiled by Anayo Ezugwu
— Oct. 21, 2013 @ 01:00 GMT