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IOC Assets Divestment Good for Local Players – Alison-Madueke

Contrary to the apprehension in some quarters that the recent spate of assets divestments by international oil companies (IOCs) operating in Nigeria could create crisis in the oil and gas industry, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, noted that the trend actually provides opportunity for indigenous oil and gas companies to become active players in the upstream sub-sector of the industry.

At an investment luncheon organized by the Petroleum Technology Association of Nigeria (PETAN) during the recent Offshore Technology Conference in Houston, Texas, The Minister explained that with the divestments indigenous oil and gas companies now have opportunity to acquire the assets being divested as springboard for the development of local capacity.

Speaking on “Assets Divestments in the Nigerian Oil and Gas Industry: Opportunities and Challenges”, the Minister who was represented by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu, stated that the divestments by the IOCs were creating opportunities for indigenous oil and gas companies to partake of the upstream sector of the industry and grow capacity.

“Let me allay your fears that the spate of divestments would not lead to crisis in the nation’s oil and gas industry, rather the divestment by the majors is changing the onshore corporate landscape and creating material brownfield opportunities for upstream players looking to enter the Nigerian upstream space,”Alison-Madueke noted.

She observed that the divesting IOCs were not leaving the country but only shifting their focus from onshore to the more challenging frontiers of deep offshore which currently accounts for 60% of Nigeria’s production.

The IOCs remain very much present in Nigeria. Shell still retains ownership of 34 onshore blocks while Total, ExxonMobil, and Chevron are still committing large amounts of capital to assets offshore Nigeria,” she explained.

Highlighting the opportunities inherent in the divestment, Alison-Madueke stated: “The indigenous Nigerian companies have been presented with the opportunity to develop local operatorship capacity as well as boost local production and consequently grow into major upstream players”.

She cited the Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), as an example of indigenous Nigerian company that has tapped into the opportunity provided by the divestment to transform from a small time player with a production of 60,000 barrels per day (bpd) in 2007 to a mid-size player with a current production of over 140,000 bpd through the assignment of 55% equity in 8 divested blocks.

She disclosed that NPDC has grown to become the biggest producer and supplier of gas to the domestic market through its aggressive development of the assets assigned to it from the divestment process, adding that the Federal Government was ready to strengthen and support the company toachieve its medium term objective of growing production to 250,000 bpd.


Group General Manager

Group Public Affairs Division

Nigerian National Petroleum Corporation

NNPC Towers, Abuja.


Press Release - NNPC Urges Nigerians to Embrace Usage of Cooking Gas
Press Release - NNPC Urges Nigerians to Embrace Usage of Cooking Gas

The Management of the Nigerian National Petroleum Corporation, NNPC, has expressed its readiness to reinvigorate and increase the domestic consumption of the liquefied natural gas otherwise known as cooking gas across the length and breadth of the country.

The Group Managing Director of the Corporation, Engr. Andrew Yakubu made this commitment while delivering a key note address at the combined graduation ceremony of Chief Officers Management Development programme of batches 069 to 072 at the NNPC Towers, Abuja.

Engr. Yakubu noted that as part of efforts to reduce the pressure on kerosene consumption, the NNPC is refocusing its strategy to encourage and aggressively grow the consumption of LPG which provides a cleaner and cheaper energy alternative.

“NNPC’s footprint in the domestic gas market has attained unprecedented growth. With the commissioning of the NPDC’s 100 million standard cubic feet of gas per day Oredo gas processing facilities and the acquisition of the new assets, NPDC is now the biggest producer and supplier of gas into the domestic market, contributing over 400 million standard cubic feet of gas per day,” Engr. Yakubu posited.

He stated that the Nigerian Petroleum Development Company, NPDC, is being repositioned to become a medium sized independent Exploration and Production Company with a production capacity of at least 250,000 barrels per day by the year 2015.

According to him, today, NPDC assets base has grown with the assignment of new oil mining leases stressing that the management under his watch is determined to further pursue new strategies to grow production to the target of 250,000 bpd by 2015 from the current level of 130,000bpd.

The NNPC helmsman said in line with the strategic direction to support the Federal Government to increase national crude oil reserve and producibility to 40 billion and 4 million barrels per day, there is aggressive exploration campaign in offshore, onshore and the inland basins of Chad, Anambra, Benue, Bida and Sokoto Dahomey.

“We are as well carrying out infield developments which have resulted in increased reserve and with the intensified approach, including the expedited action on new projects like Egina etc the reserve and production targets is realizable,” Engr. Yakubu affirmed.

The GMD revealed that over 1,000 square kilometres of seismic data have been acquired in the Chad Basin in spite of the security situation in Borno State.

Engr. Yakubu said revamping of the Corporation’s critical downstream facilities such as the refineries, depots, pipelines and jetties have remained the focus of the management stressing that these spirited efforts will ensure seamless supply and distribution of petroleum products nationwide.

He implored the graduands to deploy their expertise to enhance the efficiency of the Corporation stressing that integrity, accountability and transparency must be their watch word.

In his welcome address, the Group Executive Director Corporate Services, Dr. Dan Efebo reiterated the determination of the NNPC to the training and retraining of the workforce saying the members of staff remain the cornerstone of any business concern.

The COMDP was established 24 years ago by the Group Learning Department of the NNPC and has recorded a total of 3,521 participants so far. The programme is designed to impart managerial skills to members of staff who are promoted from senior staff cadre to management cadre.

Mr. Ohi Alegbe

Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

23rd April, 2014.

OTC a blessing to Indigenous Companies – Engr. Yakubu

Published in Latest News Thursday, 11 September 2014 10:20
OTC a blessing to Indigenous Companies – Engr. Yakubu
OTC a blessing to Indigenous Companies – Engr. Yakubu

The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engr. Andrew Yakubu has described the participation of Indigenous oil and gas companies at the annual Offshore Technology Conference, OTC, in Houston Texas, USA as a big boost which has provided the platform for the acquisition of technology and diverse skills for local players.

Speaking after inspecting the pavilions of the various Nigerian oil and gas companies participating in the 2014 OTC with the theme: “Asset Divestment in the Nigerian Oil and Gas Industry: Opportunities and Challenges,” Engr. Yakubu noted that the exposure offered by the OTC has made the companies better organized and more efficient.

He explained that the fallout of the regular participation of Nigerian Oil and Gas Companies at the previous conferences has led to the massive acquisition of expertise in drilling, well testing, surface maintenance, drilling services and other contemporary technology that have taken the petroleum industry to its current level.

“From what you have seen in terms of showcasing the gains of the various outing in the OTCs, you have clearly seen that today, the level of expertise and technology that our indigenous companies have acquired is quite significant. They are able to participate in virtually the entire spectrum of the oil and gas services. These are expertise that were purely resident outside the country in the past, but from the fallout of our outings, there have been significant acquisition of technology that have enabled our indigenous players to work without importing these technologies,”Engr. Yakubu averred.

He informed that in the last few years, the country has ramped up gas supply from 300 million standard cubic feet per day to 1500 million standard cubic feet per day as a result of the current fiscal regime introduced by the present administration stressing that the growth by any global standard was quite impressive.

“As at today, the NNPC is the largest producer of gas for domestic use. The NNPC produces over 400 mscfpd and plans are underway to increase it by 250mscfpd before year end,” Engr.Yakubu stated.

The NNPC GMD commended President Goodluck Ebele Jonathan and the Honourable Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke for their massive support, adding that a lot is going on to actualize the Federal Government Gas-to-Power initiative in the country.

Commenting on the scheduled Turn Around Maintenance (TAM) of the state owned refineries, Engr. Yakubu submitted that already the NNPC has gone ahead to place order for some of the vital components of the Port Harcourt Refinery and that negotiations were still on to ensure that the TAM is carried out as scheduled.

The NNPC helmsman said the Petroleum Industry Bill, PIB, currently before the National Assembly is geared towards improving the business environment of the Nigerian Oil and Gas Industry, adding that when finally passed it would improve government’s take from the petroleum industry.

The Offshore Technology Conference started 45 years ago with the aim of fostering offshore technologies and sharing of ideas on how to grow and develop the oil and gas industries of participating countries all around the world.


Group General Manager

Group Public Affairs Division

NNPC, Abuja

6th May, 2014.

No Rift Between Petroleum Minister, GMD Says NNPC

Published in Latest News Thursday, 11 September 2014 10:18


The Nigerian National Petroleum Corporation, NNPC, has said that the Minister of Petroleum Resources and Chairman of NNPC board, Mrs. Diezani Alison-Madueke and the Group Managing Director of the Corporation, Engr. Andrew Yakubu are in harmonious working relationship and dismissed insinuations in some quarters of a phantom frosty relationship between the two key figures in the oil and gas industry.
The Group General Manager, Group Public Affairs Division of the NNPC, Mr. Ohi Alegbe described the reports as a figment of the overheated imagination of the authors.
Mr. Alegbe said the Minister of Petroleum Resources and the NNPC in the last few months have heeded countless number of summons from the National Assembly wondering why the media would go to town with the report that the Petroleum Minister was doing everything to thwart the proposed investigation into the alleged N10billion purportedly expended on the charter of jets by the Corporation.
The NNPC spokesman maintained that the Minister and the Corporation are putting together all the documents that the House of Representatives Committee on Public Account had requested for, stressing that at the end of the probe, the Minister and the Corporation would be vindicated.
Mr. Alegbe averred that the GMD of the Corporation was in London last week for the board meeting of the Nigerian Liquefied Natural Gas, NLNG, saying the NNPC would remain focused on its core mandate of guaranteeing energy sufficiency for the country.
The NNPC Spokesman dismissed the reports in its entirety and implored media practitioners to adhere to the ethics of journalism which holds facts as sacred and recommends that when in doubt, leave out.
Meanwhile In a deft move aimed at sanitizing the nation’s fuel supply and distribution channel, the Minister of Petroleum Resources has reeled out measures to ensure round the clock availability of petrol across the country.
Under the arrangement, the Minister has approved the allocation of a total volume of 1, 854, 314 metric tonnes of premium motor spirit known as petrol as supplementary volumes for first quarters 2014 and second quarter 2014 June only delivery.
Mr. Alegbe, explained over the weekend that the supplementary volume for Q1 quota is 750, 000 Mt and the Q2 June only volume is 1, 104, 318. He noted that whilst the first quarter supplementary volume is designed to complement the earlier allocation in addition to covering any under delivery by marketers due to unforeseen financial challenges, the Q2 (June only) quota is in consonance with the national consumption pattern of 40 million litres per day.
The NNPC Spokesman also noted that the Q2 quota also captures a 23 percent upper tolerance in the event of default or slippage into July.
``There are 27 oil marketing companies with proven performance records enlisted in respect of Q1 deliveries. For Q2 (June only), there are 40 marketers with good performance records and whose facilities are functional. The idea of June only is to revert back to the normal quarterly sequence, i.e. July-September and October-December,’’ he said.
On measures to ensure full compliance in line with the aspiration of zero fuel queues, Mr. Alegbe noted that the Petroleum Products Pricing Regulatory Agency, PPPRA, the body with the statutory responsibility in this regard has inserted a provision in the allocation document which allows for the deduction of equivalent volume from the defaulting marketer’s subsequent allocation in event of slippage or default.
He noted that the PPPRA, NNPC and its downstream subsidiary the Pipelines and Products Marketing Company, PPMC, as well as the Department of Petroleum Resources, DPR, are working in concert with other key downstream operators to ensure the realization of the zero fuel queues aspiration of the Petroleum Resources Minister.

Nigeria’s economic growth is hinged on the development of its abundant natural gas resources, Group Managing Director of the NNPC, Engr. Andrew Yakubu has stated.

Engr. Yakubu disclosed this during a Combined Opening Ceremony of the 073-079 batches of the Chief Officers’ Management Development Programme (COMDP) at the NNPC headquarters in Abuja, Thursday.

“Without any doubt, harnessing our gas resources will bring about an unquantifiable value to our economy. Talk about our power aspirations, job creation and entrepreneurship, gas is the real stimulant for our economic growth and development,” Engr. Yakubu stated.

The GMD further observed that the NNPC is fully committed to the actualization of the Federal Government’s Gas Revolution Agenda particularly with the opening up of several gas-based industrialization programmes across the country.

“The Gas Industrial Park Complex at Ogidigben in Delta State is a pointer in that regard as it will house a petrochemicals plant, a fertilizer plant, an IPP and a Central Processing Facility (CPF),” he said.


According to Engr. Yakubu, the complex would stimulate several gas-based industrialization initiatives across the country, with robust multiplier effect that will significantly generate employment and positively impact the gross domestic product of the nation.

In his paper titled: “Gas Commercialisation and Nigerian Economic Growth: Issues and Challenges,” the Lecturer at the occasion, Professor Pat Utomi of the Lagos Business School emphasized the need to utilize the nation’s abundant gas resources to create a plethora of opportunities for Nigerians, especially in the gas value chain.

He said: “Nigeria’s hope is in gas. Nigeria’s gas value chain has to be the key driver of our economy going forward. In this regard, we must marry our gas commercialization initiatives with the right policies.


Utomi charged the course participants to be “rapid learners of the rapidly changing business environment of oil and gas” so as to help the NNPC realize its full potentials.


The COMDP is an intensive, 7-week programme which has over the years, proven to be a veritable platform for the development of managerial and leadership talents and skills for the Corporation.


Now in its 24th year, the batches 073-079 comprise of 375 participants who were drawn from all Strategic Business Units (SBUs) of the entire Corporation.



Ohi Alegbe

Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

24th April, 2014.

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