3 months ago
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…We got 60% of our crude supply from NNPC – Dangote Refinery
By Tunde Opalana, Haruna Salami
Nigerian National Petroleum Company Limited (NNPCL), and other regulatory agencies have absolved themselves from shady deals in Nigeria’s oil industry capable of sabotaging the nation’s economy.
Also the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pledged commitment to ensuring realisation of set goals of the Tinubu administration in reshaping the oil and gas industry.
They pledged their allegiance to support genuine efforts of the Federal Government in positioning the nation’s sector to earn maximum revenue and foreign earnings from her abundant oil and gas resources.
Minister of State, Petroleum, Senator Heineken Lokpobiri, the Group Chief Executive Officer of NNPCL, Mallam Mele Kyari and the Chief Executive Officer of NMDPRA, Engineer Farouk Ahmed, all made this commitment on Wednesday during presentations before Senate Ad – hoc Committee investigating alleged economic sabotage in the Petroleum Industry.
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Specifically Lokpobiri said a lot of misinformation has been churned out to the public on roles being played by his Ministry and other agencies in making it inclusive for interested investors.
The Group Managing Director of NNPCL specifically said the company should be counted out of any act of sabotage.
Kyari said: “We are faithful, loyal and committed to the greatness of this country. We are not criminals , thieves or saboteurs as being alleged through wrong narratives .
“NNPCL under our management and by operational guidelines or relevant provisions of PIA, CAMA etc , is today a profit making company after about 43 years of losses .
“Today from 1.4million barrels it was, months back, production level has increased to 1.65million barrels per day and will soon hit the expected 2 million barrels per day .
“There is nothing for NNPCL to sabotage because we are out to maximize value and profits for the country. We are not against any domestic refinery because the laws are clear as far as processes and procedures are concerned.
“As requested by the Hon Minister of State for Petroleum, the planned public hearing on alleged sabotage in the sector , should be televised live , for Nigerians to know the truth of situations on ground “, he said.
The Chief Executive Officer of NMDPRA, Engr Farouk Ahmed in his brief remarks said the planned public hearing should be televised live for Nigerians to know those indulging in the alleged economic sabotage in the sector.
“A lot of negative stories and narratives have been written and published against us in NMDPRA on how we are carrying out our regulatory functions without us telling our own story.
“Gratifyingly, the planned public hearing will give us the appropriate platform of laying our facts bare to Nigerians for them to know who is sabotaging who.
“The investigation should be public and televised live “, he stressed.
Aliyu Suleiman, Group Strategy Officer, Dangote Refinery in his submission said since the refinery started full trial production in January and then full time production started in March this year, it has processed about 50 million barrels of crude, produced about five million tons of petroleum products and that these petroleum products have been sold to various parts of the country.
He commended the NNPCL for major supply of its petroleum products intake.
“Right now, we bought about 50 million barrels of crude. About 60% of that comes from NNPC. We are thankful to them for their support,” said Suleiman.
Essentially, he said what Dangote refinery asked for is “let’s be very clear, we are happy to pay fair prices. We hope that we’ll work with the regulator and we’ll get their support so that the refinery can get 100% of its crude from Nigeria and buy the crude from companies that produce it in Nigeria not from international middlemen.”
Counting on support of the committee, the regulators and other stakeholders to ensure that the refinery succeeds, he said “because if it does, aside from the other obvious benefits, like forex generation, job creation and the rest, most importantly, there is the psychological benefit of making, giving Nigerians, Africa in general, the confidence that we can succeed.”
National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Shettima demanded from the Senate ad- hoc committee, a level playground for all stakeholders in the industry while promising that the Association will sustain the value chain system.in the downstream sector.
He said IPMAN is enjoying a hearty relationship with the NNPCL through its subsidiary, NIPCO.
Shettima assured Nigerians that IPMAN will deliver all products allocated to it for delivery across nooks and crannies of the country.
Speaking on behalf of the government, the coordinating minister for the economy and Finance Minister, Mr. Wale Edun said the country is presently producing below optimal target of 1.7 million barrels per day but the ultimate aim of the government is to reach a 2 million barrel per day mark.
He advised that every stakeholder must ensure that the NNPCL performs optimally while private investors should also contribute maximally to reach the goal.
The minister said the nation will be able to stabilize foreign exchange rate and attract more direct foreign investment if the oil sector is in good shape.
On his own part, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri said the ministry will provided needed information to smoothen the assignment of the ad- hoc committee.
For the emphasis of transparency, the minister demanded live broadcast of the public hearing to the glaring of Nigerians.
Lokpobiri promised that “as a government , we are committed to protecting local industry, to providing the same standard of protection to every stakeholder.
“We are committed as a country to complete the rehabilitation of our refineries to reduce cost of importation of products.
“We are committed to protecting Dangote refinery”.
Earlier in his welcome address, chairman of the Senate Ad- hoc committee and Leader of the Senate, Opeyemi Bamidele while laying the foundation for the interactive meeting in his welcome address, urged all opposing parties to sheath their swords, set aside accusations and counter – accusations while assuring all stakeholders of a thorough investigation.
Bamidele said the interactive engagement “marks the commencement of the Senate investigation into allegations of economic sabotage in our petroleum industry”
“Our investigation would seek to identify and hold accountable all parties involved in the importation and distribution of the adulterated petroleum products, especially Premium Motor Spirit and Automotive Gas Oil and such other acts that are detrimental to the operations of the petroleum industry.
“This includes suppliers, importers, regulatory bodies, and any other entity that may have contributed to lapses in the petroleum industry. We will conduct a thorough review of current regulatory frameworks and procedures to identify deficiencies and recommend necessary reforms to prevent such occurrences in the future.”
Setting the tone for a collaborative engagement amongst stakeholders, the ad- hoc committee chairman urged all parties “to set aside the ongoing accusation and counter- accusations as we embark on a journey towards uncovering the truth behind these matters of economic importance.
“We are therefore appealing to all the stakeholders to cooperate with this Committee and put the national interest above any form of parochial interests. We are not on a self-serving mission, and we shall never be. Rather, we are on a national mission that will significantly redefine the future of our dear country.
“Our mission is never to witch hunt any individual, corporate entity or government agency, but to unravel the root causes of fundamental challenges within the petroleum industry and devise a functional legislative framework to discourage the activities of some rogue actors in the industry.
“This task is urgent, and we are ready to carry it out with all senses of honour and responsibility. We are also taking it seriously with a view to addressing fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation. In line with our mandate, we will definitely unravel factors and forces aiding sabotage in our petroleum industry.
“From our findings, we will craft a legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.”
The public hearing will take place between September 10 and 12, 2024.
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