News Room

ONIKAN PRIMARY HEALTH CENTER ENDORSES IBILE MAX 2050 AS LUBRICANT FOR ITS FLEET VEHICLES AND AMBULANCES.

Onikan Health Centre, one of the Lagos State Government public health facilities officially announced IBILE Oil and Gas Corporation (IOGC)’s IBILE MAX 2050 engine oil as its preferred lubricant for ambulances and fleet vehicles. This happened on Thursday 19th of August 2021, when the two parties both agreed on terms for the deal to make IBILE MAX 2050 the official lubricant of the health outfit. Initially, there was a discussion at hand before the partnership was officially unveiled.

In a bid to cub break-down of vehicles in the cause of emergency duties, the health Centre decided to make an engine oil with zero record of deficit their top notch to have more effective and excellent services.

This partnership is the first its kind, with IOGC making plans to rapidly sign on more health outfits across the five divisions of Lagos State.

A driver from the Centre gave his own verdict about the authenticity of the oil, noting that; “The first time I used this IBILE MAX 2050 engine Oil, has been the very moment I have vouched never to stop using it, because it has made my driving experience easier for me and other drivers could attest to it”.

An auto mechanic from the company also gave his own testimony, that “IBILE MAX 2050, was introduced to him by one of the company’s drivers and that he could confidently recommend the oil to his customers”.

Ambulances being emergency vehicles need quality and reliable engine oil/lubricant for effective and smooth operation of the health facility and the lubricant which must be used in that regard should be one that meets all requirement for vehicles working under the Nigerian weather, said IOGC management.

Having signed a contract with Onikan Health Care Centre, the management of IBILE Oil and Gas Corporation (IOGC), gave praises to the consistency in quality health delivery to the entire public by the health facility, promising not to decline from the pace at which the company gives excellence.

NNPC Floats New Subsidiary to Oversee Refineries, inaugurates board, plans 250,000 bpd facility.

The Nigerian National Petroleum Corporation (NNPC) on Saturday 21st of August 2021 inaugurated the board of Greenfield Refinery Limited (NGRL), a subsidiary of NNPC, to oversee the establishment and operation of new refineries. Group Managing Director of the corporation, Mallam Mele Kyari, while swearing in the new board members in Abuja, charged them to explore all options to bring an end to the current challenge of petroleum products importation.

A statement by the Group General Manager, Group Public Affairs Division, Mr. Garba Muhammad, quoted Kyari, who is also Chairman of the NGRL board, as having challenged members of the board to focus on profitability in order to remain afloat and avoid liquidation.

Mr kyari stated that as a business this was a big opportunity for them and the company’s balance sheet must also change positively. He said with the Petroleum Industry Act (PIA), there is no excuse to continue to post negative going forward. He urged the board and management team of the new company to set up a proper structure with the required skills, technology and finance to drive the company’s operations, adding that he is optimistic that the company would be able to achieve its mandate. Kyari said, the company must grow and can only do well if the productions can be processed, whether liquid or gas and montising the process is equally as important. He added that this was a new chapter and they are committed to makingit work. The NNPC helmsman stated that all the corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy and security for the country.

In his remarks, Alternate Chairman of the board and Group Executive Director, Refinery and Petrochemicals, Mr. Mustapha Yakubu, declared that the operations of the company would be guided by the principles of cost effectiveness in line with the new Act, noting that profitability would be the key focus.

The Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Mr. Bege Talson, also disclosed that the division was working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000 barrels per stream day.

PIA: FG, labour negotiate to minimise effects of subsidy removal – PPPRA.

Following the enactment of the Petroleum Industry Act (PIA), the Petroleum Products Pricing Regulatory Agency (PPPRA), Executive Secretary, Abdulkadir Saidu said the ongoing Federal Government’s negotiation with Labour on subsidy removal, will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses.

He said in a statement at Abuja that the PIA signals the implementation of full deregulation of the downstream sector. He further emphasized that it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.

The head of PPPRA, Mr Saidu, has hinted that the current market price will remain as it is until the completion of talks with the trade unions in order to minimise the impact of a market-based pricing policy on the masses. The agency commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu mentioned that the PIA, which provides legal, governance, regulatory and fiscal framework for the petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

He noted that delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy and that the implementation of the PIA will foster greater investment to the sector.

The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will clearly outline the roles of industry operators and regulators.

HERE ARE 5 TIPS FOR KEEPING YOUR ENGINE OIL IN GOOD CONDITION.

 

  • Check your engine oil level at every fuel fill

Vehicles are more fuel efficient than ever and sometimes it can be 1,000kms or more between fill-ups.

Vehicle manufacturers have different criteria for normal oil consumption, ranging from 1 litre per 1,000 to 2,500kms.

If you don’t check your oil level between oil changes, you could be running dangerously low on oil, or even causing damage unknowingly.

  • Check the visual condition of the oil

New engine oil is a golden honey brown colour and a properly maintained engine will keep the oil brown until near its oil change interval.

Once the oil starts to get almost or fully black, your engine is telling you it’s time to change the oil.

On diesel engines however, the oil may appear black almost instantly. This is due to the increased carbon content created by the combustion temperature compared to a petrol engine.

It may be difficult to determine the condition of the oil just by looking at it, so if it smells like diesel fuel or looks dilated, it may be time for an oil change.

  • Check the smell and feel of the oil

Engine oil in need of changing smells overpoweringly burnt when you sniff it on the dipstick.

It can also feel slightly abrasive when you rub it between your fingers. If it smells burnt or feels gritty, plan to change the engine oil sooner rather than later.

  • Know your maintenance interval

Some engines require oil changes every 5,000kms, while others may require it less frequently at 10,000 or even up to 20,000kms between changes.

Other vehicles feature oil life monitors to tell you when the vehicle needs an oil change. Know what your car requires and book ahead for its service.

  • Be aware of the right grade and viscosity of oil for your car

Does your engine need synthetic oil, semi-synthetic, or will conventional oil suffice?

Make enquiries about it from our personnel at IOGC, Use the proper grade of oil for your engine to get the longest life and best performance from your engine.

NIGERIA’S NNPC POSTS 43.57BN TRADING SURPLUS FOR APRIL

The Nigerian National Petroleum Corporation (NNPC) on Sunday declared a trading surplus of ₦43.57 billion in April 2021 representing a 23.64% increase over the ₦35.24bn surplus it recorded in the previous month of March 2021.

Spokesman of NNPC, Dr Kennie Obateru said the figure came from the April 2021 edition of its Monthly Financial and Operations Report (MFOR).

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

According to the report, the NNPC Group operating revenue in April 2021, as compared to March 2021, increased by 17.73% or N80.67bn to stand at N535.61bn.

Similarly, expenditure for the month increased by 17.24% or N72.34bn to stand at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as last month.

The report attributed the rise in trading surplus to the activities of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.

The positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).

In the Downstream, to ensure uninterrupted supply and effective distribution of fuel across the country, a total of 1.67 billion litres of Premium Motor Spirit (PMS) translating to 55.79mn liters/day were supplied in the month under review.

The report also showed a 34.29% reduction in the number of pipeline points vandalized from 70% in the previous month of March 2021 to 46% in April 2021. While Port Harcourt area accounted for 54%, Mosimi area accounted for 46% of the vandalized points.

In the Gas sector, a total of 209.27billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72 million standard cubic feet per day (mscfd).

For the period of April 2020 to April 2021, a total of 2,902.52 bcf of gas was produced, representing an average daily production of 7,369.76mscfd during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07%, 19.95% and 17.98% respectively to the total national gas production.

In terms of natural Gas off-take, commercialization and utilization, out of the 206.40 bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.

This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94 mscfd of gas supplied to the export market for the month.

This implies that 61.45% of the average daily gas produced was commercialized while the balance of 38.55% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74% for the month under review (i.e. 670.19 mscfd) compared with average gas flare rate of 7.42% (i.e. 542.22 mscfd) for the period of April 2020 to April 2021.

A total of 795 mscfd was delivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.

NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series. It is published in line the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders and the Nigerian public.

BUHARI SIGNS PETROLEUM INDUSTRY BILL INTO LAW

The President has signed the Petroleum Industry Bill 2021 into law.

Special Adviser to the President on Media and Publicity, Femi Adesina, made this known in a statement on Monday 16 August 2021.

The presidential spokesman said his principal signed the controversial bill into law while working from quarantine. “Working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday, August 13, the President assented to the Bill Monday, August 16, in his determination to fulfill his constitutional duty.

The ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation would have been fulfilled. The Petroleum Industry Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.

“The Senate had passed the Bill on July 15, 2021, while the House of Representatives did same on July 16, thus ending a long wait since early 2000s, and notching another high for the Buhari administration”, Adesina said.

The recently assented PIB had been heavily criticized by stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and other groups in the South-South, South-West and South-East describing its provisions as “unjust, satanic and provocative”.

It was earlier reported that Southern governors last month in Lagos rejected the proposed allocation of at least 30 per cent of the profit generated by the proposed Nigerian National Petroleum Company Limited for the exploration of oil in ‘frontier basins’ as identified by Section 9 of the PIB.

The 17 governors, in a communiqué signed by the Governor of Ondo State, Oluwarotimi Akeredolu, at end of their July meeting in Lagos, said, “The Forum rejects the proposed 3% and support the 5% share of the oil revenue to the host community as recommended by the House of Representatives.

The forum also rejects the proposed 30% share of profit for the exploration of oil and gas in the basins.

“The forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited. The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority since all tiers of Government have stakes in that vehicle.”

The frontier basins include Chad Basin, Gongola Basin, Sokoto Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.

Currently, crude oil is obtained from eight states in the Niger Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers States.

 

SOURCE: THE PUNCH NEWS

WHAT YOU NEED TO KNOW ABOUT NIGERIA’S NEW PETROLEUM INDUSTRY BILL

President Muhammadu Buhari has sent a new PIB to the bicameral National Assembly, where the Senate, along with the House of Representatives, must sign off on it before it can become law. The bill passed its first reading in the Senate on October 1.

What changes under the new bill?

The new bill could offer a radical departure from past norms. The bill plans for the selling of shares in a reformed NNPC, the replacement of regulatory bodies, and the reduction and streamlining of royalties.

The legislation suggests the NNPC should become “a commercially oriented and profit-driven national petroleum company” independent of government and audited annually, although no dates are yet given for a share sale. The PIB could also boost the amount of money companies pay to local communities and for environmental cleanups, introduce new dispute-resolution mechanisms between government and oil companies, and set up a midstream government infrastructure fund.

“It would play a key role in addressing inefficiencies, from slow approval for oil projects to budget shortfalls that hinder the ability to pursue public-private partnerships. What’s more, the bill would create a supportive environment for both International oil company (IOCs) and indigenous petroleum companies, help protect the environment and the interests of host communities, support economic diversification in Nigeria, and critically important, promote transparency in Nigeria’s administration of petroleum resources,” writes NJ Ayuk, Executive Chairman of the African Energy Chamber.

Given the PIB’s tangled history, the passage of the bill would represent a remarkable political victory for the current administration and send a message to international investors. Furthermore, the plunge in global oil prices brought about by the Covid-19 pandemic, which has seen crude trading at less than $40 a barrel and triggered a 60% slump in Nigerian government revenues, may give renewed impetus to reform efforts.

Yet the complexity of the legislation remains a problem. The latest PIB comprises one version separated into four chapters, unlike previous failed versions in which the bill itself was separated. The Senate house speaker has resolved to pass the bill as quickly as possible but emphasized that it would not “sacrifice thoroughness at the altar of speed” – comments which may raise eyebrows among long-term industry observers.

OIL MAJORS, OTHERS, RAISE CONCERNS AS NATIONAL ASSEMBLY BEGINS HEARING ON PIB, PETROLEUM INDUSTRY BILL.

Some major oil-producing companies and other players in the industry have raised concerns over some provisions of the Petroleum Industry Bill (PIB), 2020. This was at the first day of the public hearing, a necessary stage of the consideration and passage of the bill.

The legislation, which was transmitted to the National Assembly last year after it had suffered setbacks for about 20 years, proposes the scrapping of the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Product Pricing Regulatory Agency (PPPRA). It also proposed the creation of the Nigerian National Petroleum Company Limited – after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.

The PIB also seeks to establish the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

At the hearing organized by the Joint Committee on Petroleum Upstream, Downstream and Gas, was the Oil Producing Trade Section (OPTS) who expressed dissatisfaction with some provisions of the bill.

The chairman of OPTS, Mike Sangster, made his presentations on behalf of Total, Chevron, Exxon Mobil and Shell companies.

Major concerns

Top of their concerns was Deepwater developments, which he said have contributed significantly to maintaining Nigeria’s oil production levels by offsetting the decline in the Joint Venture production.

Mr. Sangster complained that the PIB shows that the Deepwater provisions do not provide a favorable environment for future investments and for the launching of new project.

To ensure investors are encouraged to finance Deepwater projects, ‘the PIB should grant Deepwater oil projects a full royalty relief during the first five years of production or a graduated royalty scheme as detailed in their submission’, he said. He also proposed that PIB should remove Hydrocarbon Tax considering that companies will still be subject to CIT.

The group said the bill does not address the key challenges facing gas development in Nigeria, such as inadequate midstream infrastructure, regulated gas pricing, huge and long outstanding debts, etc., thereby potentially jeopardizing the realization of the government’s aspirations for domestic gas sector. It therefore suggested that PIB “provide a clear path for transitioning to free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply and allow pre-existing contracts and agreements to run their course”.

The PIB, Mr. Sangster continued, “does not clearly preserve the terms of existing investments”.

“OPTS recognizes the government’s right to change laws. However, to maintain Nigeria’s reputation amongst investors, it is important for the PIB to explicitly preserve base businesses and rights for existing Joint Venture licenses and leases and Production Sharing Contracts, which form the basis for future growth.

“Operators should be allowed to retain the entirety of their lease areas and new terms should apply only to new contracts, licenses and leases,” he added.

 

For a section of the bill which proposes that companies operating consolidated upstream and midstream assets separate and incorporate their midstream assets as distinct legal entities, he said “an imposed segregation along upstream and midstream for existing assets could jeopardize the integrity of past investments for assets that were technically and commercially designed to operate on an integrated basis”.

The OPTS said the PIB should include a savings provision to allow post-conversion continuity of activities undertaken by a single legal entity, instead of being segregated as independent companies.

“Where assets are required to be segregated, a provision for the specific exemption of associated taxes should be considered such as Capital Transfer Tax, Capital Gains Tax.

“PIB should consider harmonizing the taxes into a single tax system and allow for consolidated filing and tax reporting and also seek to harmonize tax practices and ensure capital allowances and allowable deductions are consistent with existing tax legislations, Companies Income Tax Act (CITA).”

Other concerns

The Women in Energy Network were also present to state their concerns. The group, among others, noted the absence of gender participation in the bill.

They cited Sections 3, 14, 15, 18, 22, 26, 37, 41 and 71, among others as they asked the lawmakers to change words like ‘he’, ‘his’ and ‘him’ to ‘they’, ‘their’, and ‘them’.

Funmi Ogbue, who made the presentation, said women have a role to play not just in technical aspects but in ensuring good governance.

This is even as she proposed that 35 per cent of the board be made up of women and the members should consist of women from the host communities (with the right qualifications).

She said the provision that oil companies should contribute 2.5 per cent of their operating cost to the host community development trust fund is exorbitant in view of other taxes they are presently paying.

“WIEN believes that 2.5 per cent is too expensive. WIEN posits that a total of not more than 1 per cent consistent with other statutory provisions like the Nigerian Local Content Act 2010 replace the current figure captured in the PIB.

“And the PIB include alternative sources of energies such as renewables.”

Meanwhile, in his opening remarks, the Senate President, Ahmad Lawan, explained that the National Assembly’s determination to pass the Bill is driven by the need to “overhaul a system that has refused to operate optimally in line with global standards, resulting into loss of continental competitiveness, transparency, accountability, good governance and economy loss for the petroleum industry and the country”.

NO INCREASE IN FUEL PRICE YET – NNPC

The Nigerian National Petroleum Corporation (NNPC) against the backdrop of the new guiding price for Petroleum Motor Spirit (PMS) released by the Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no increase in its ex-depot price for the month of March.

This was even as it stated that the question of if the Federal Government is now paying subsidy on the commodity, was a matter of simple “logic and arithmetic.”

The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru made the clarification. According to him, despite the increase in oil price at the international market, its ex-depot price remains unchanged since February.

The group GM said regardless of the PPPRA’s guiding price template, the NNPC remains the current sole importer of fuel in the country. we are not going to increase, so irrespective of what the PPPRA has said, that is still our position” he said.

DPR REAPRAISES FIVE PSCS FOR GAS DEVELOPMENT

The Department of Petroleum Resources (DPR) has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country. Sarki Auwalu, the Chief Executive Officer, revealed this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday, the 8th of March, 2021.

The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”

He said DPR had considered and reviewed five terms for gas development in PSC and the terms included duration, cost of gas, tax gas, royalty and profit gas.

“These five terms, we believe when considered, will definitely make it robust and enable the provisions that were made in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns,” said Auwalu.

He explained that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.

According to him, others were signed in 1993 with oil majors, and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.

1029MW OF ELECTRICITY STRANDED DUE TO GAS SHORTAGE, UNPAID INVOICES

Eight of the power plants on the national grid suffered gas constraints on Wednesday the 3rd of March 2021, amid concerns by gas producers over unpaid invoices in the Nigerian electricity supply industry.

A total of 1,029.80 megawatts of generation capacity was idle as of 6am on Wednesday because of gas constraints.

The nation’s total unutilized electricity generation capacity stood at 2,119.8MW as of 6am on Monday, with low load demand by the distribution companies and water management stalling the generation of 1,090MW.

The power plants affected by gas constraints included Omotosho I, Olorunsogo I, Omoku, Afam VI, and Geregu II (NIPP). Others were Omotosho II (NIPP), Gbarain NIPP and Trans-Amadi, according to data obtained from the Nigerian Electricity System Operator.

Total power generation in the country stood at 4,775.8MW as of 6am on Wednesday, compared to 4,751.8MW on Tuesday.

The Oil Producers Trade Section, comprising international and local operators in the Nigerian oil and gas industry, has decried the unpaid gas invoices in the power sector.

In its presentation at the international conference of the Nigeria Gas Association, the OPTS said, “We must of a necessity repay all outstanding gas invoice arrears. Some companies are being owed as far back as 2015-2016. This is not sustainable; we must be able to get assurance that when we produce the gas, we will get paid for it. So, we must of a necessity quickly settle all outstanding debts, and make sure that we establish bankable credit support that will make the gas business to grow so that investors can develop more gas resources.

PIA: FG, labour negotiate to minimise effects of subsidy removal – PPPRA.

Following the enactment of the Petroleum Industry Act (PIA), the Petroleum Products Pricing Regulatory Agency (PPPRA), Executive Secretary, Abdulkadir Saidu said the ongoing Federal Government’s negotiation with Labour on subsidy removal, will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses.

He said in a statement at Abuja that the PIA signals the implementation of full deregulation of the downstream sector. He further emphasized that it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.

The head of PPPRA, Mr Saidu, has hinted that the current market price will remain as it is until the completion of talks with the trade unions in order to minimise the impact of a market-based pricing policy on the masses. The agency commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector. Saidu mentioned that the PIA, which provides legal, governance, regulatory and fiscal framework for the petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

He noted that delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy and that the implementation of the PIA will foster greater investment to the sector.

The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will clearly outline the roles of industry operators and regulators.

HERE ARE 5 TIPS FOR KEEPING YOUR ENGINE OIL IN GOOD CONDITION.

 

  • Check your engine oil level at every fuel fill

Vehicles are more fuel efficient than ever and sometimes it can be 1,000kms or more between fill-ups.

Vehicle manufacturers have different criteria for normal oil consumption, ranging from 1 litre per 1,000 to 2,500kms.

If you don’t check your oil level between oil changes, you could be running dangerously low on oil, or even causing damage unknowingly.

  • Check the visual condition of the oil

New engine oil is a golden honey brown colour and a properly maintained engine will keep the oil brown until near its oil change interval.

Once the oil starts to get almost or fully black, your engine is telling you it’s time to change the oil.

On diesel engines however, the oil may appear black almost instantly. This is due to the increased carbon content created by the combustion temperature compared to a petrol engine.

It may be difficult to determine the condition of the oil just by looking at it, so if it smells like diesel fuel or looks dilated, it may be time for an oil change.

  • Check the smell and feel of the oil

Engine oil in need of changing smells overpoweringly burnt when you sniff it on the dipstick.

It can also feel slightly abrasive when you rub it between your fingers. If it smells burnt or feels gritty, plan to change the engine oil sooner rather than later.

  • Know your maintenance interval

Some engines require oil changes every 5,000kms, while others may require it less frequently at 10,000 or even up to 20,000kms between changes.

Other vehicles feature oil life monitors to tell you when the vehicle needs an oil change. Know what your car requires and book ahead for its service.

  • Be aware of the right grade and viscosity of oil for your car

Does your engine need synthetic oil, semi-synthetic, or will conventional oil suffice?

Make enquiries about it from our personnel at IOGC, Use the proper grade of oil for your engine to get the longest life and best performance from your engine.

NIGERIA’S NNPC POSTS 43.57BN TRADING SURPLUS FOR APRIL

The Nigerian National Petroleum Corporation (NNPC) on Sunday declared a trading surplus of ₦43.57 billion in April 2021 representing a 23.64% increase over the ₦35.24bn surplus it recorded in the previous month of March 2021.

Spokesman of NNPC, Dr Kennie Obateru said the figure came from the April 2021 edition of its Monthly Financial and Operations Report (MFOR).

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review.

According to the report, the NNPC Group operating revenue in April 2021, as compared to March 2021, increased by 17.73% or N80.67bn to stand at N535.61bn.

Similarly, expenditure for the month increased by 17.24% or N72.34bn to stand at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as last month.

The report attributed the rise in trading surplus to the activities of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.

The positive outlook was further consolidated by the robust gains of two other subsidiaries namely: Duke Oil and the National Engineering and Technical Company (NETCO).

In the Downstream, to ensure uninterrupted supply and effective distribution of fuel across the country, a total of 1.67 billion litres of Premium Motor Spirit (PMS) translating to 55.79mn liters/day were supplied in the month under review.

The report also showed a 34.29% reduction in the number of pipeline points vandalized from 70% in the previous month of March 2021 to 46% in April 2021. While Port Harcourt area accounted for 54%, Mosimi area accounted for 46% of the vandalized points.

In the Gas sector, a total of 209.27billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72 million standard cubic feet per day (mscfd).

For the period of April 2020 to April 2021, a total of 2,902.52 bcf of gas was produced, representing an average daily production of 7,369.76mscfd during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07%, 19.95% and 17.98% respectively to the total national gas production.

In terms of natural Gas off-take, commercialization and utilization, out of the 206.40 bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.

This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94 mscfd of gas supplied to the export market for the month.

This implies that 61.45% of the average daily gas produced was commercialized while the balance of 38.55% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74% for the month under review (i.e. 670.19 mscfd) compared with average gas flare rate of 7.42% (i.e. 542.22 mscfd) for the period of April 2020 to April 2021.

A total of 795 mscfd was delivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.

NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series. It is published in line the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders and the Nigerian public.

BUHARI SIGNS PETROLEUM INDUSTRY BILL INTO LAW

The President has signed the Petroleum Industry Bill 2021 into law.

Special Adviser to the President on Media and Publicity, Femi Adesina, made this known in a statement on Monday 16 August 2021.

The presidential spokesman said his principal signed the controversial bill into law while working from quarantine. “Working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday, August 13, the President assented to the Bill Monday, August 16, in his determination to fulfill his constitutional duty.

The ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation would have been fulfilled. The Petroleum Industry Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.

“The Senate had passed the Bill on July 15, 2021, while the House of Representatives did same on July 16, thus ending a long wait since early 2000s, and notching another high for the Buhari administration”, Adesina said.

The recently assented PIB had been heavily criticized by stakeholders in Southern Nigeria with the Pan-Niger Delta Forum and other groups in the South-South, South-West and South-East describing its provisions as “unjust, satanic and provocative”.

It was earlier reported that Southern governors last month in Lagos rejected the proposed allocation of at least 30 per cent of the profit generated by the proposed Nigerian National Petroleum Company Limited for the exploration of oil in ‘frontier basins’ as identified by Section 9 of the PIB.

The 17 governors, in a communiqué signed by the Governor of Ondo State, Oluwarotimi Akeredolu, at end of their July meeting in Lagos, said, “The Forum rejects the proposed 3% and support the 5% share of the oil revenue to the host community as recommended by the House of Representatives.

The forum also rejects the proposed 30% share of profit for the exploration of oil and gas in the basins.

“The forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited. The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority since all tiers of Government have stakes in that vehicle.”

The frontier basins include Chad Basin, Gongola Basin, Sokoto Basin, Dahomey Basin, Bida Basin, Benue Trough, amongst others.

Currently, crude oil is obtained from eight states in the Niger Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers States.

 

SOURCE: THE PUNCH NEWS

WHAT YOU NEED TO KNOW ABOUT NIGERIA’S NEW PETROLEUM INDUSTRY BILL

President Muhammadu Buhari has sent a new PIB to the bicameral National Assembly, where the Senate, along with the House of Representatives, must sign off on it before it can become law. The bill passed its first reading in the Senate on October 1.

What changes under the new bill?

The new bill could offer a radical departure from past norms. The bill plans for the selling of shares in a reformed NNPC, the replacement of regulatory bodies, and the reduction and streamlining of royalties.

The legislation suggests the NNPC should become “a commercially oriented and profit-driven national petroleum company” independent of government and audited annually, although no dates are yet given for a share sale. The PIB could also boost the amount of money companies pay to local communities and for environmental cleanups, introduce new dispute-resolution mechanisms between government and oil companies, and set up a midstream government infrastructure fund.

“It would play a key role in addressing inefficiencies, from slow approval for oil projects to budget shortfalls that hinder the ability to pursue public-private partnerships. What’s more, the bill would create a supportive environment for both International oil company (IOCs) and indigenous petroleum companies, help protect the environment and the interests of host communities, support economic diversification in Nigeria, and critically important, promote transparency in Nigeria’s administration of petroleum resources,” writes NJ Ayuk, Executive Chairman of the African Energy Chamber.

Given the PIB’s tangled history, the passage of the bill would represent a remarkable political victory for the current administration and send a message to international investors. Furthermore, the plunge in global oil prices brought about by the Covid-19 pandemic, which has seen crude trading at less than $40 a barrel and triggered a 60% slump in Nigerian government revenues, may give renewed impetus to reform efforts.

Yet the complexity of the legislation remains a problem. The latest PIB comprises one version separated into four chapters, unlike previous failed versions in which the bill itself was separated. The Senate house speaker has resolved to pass the bill as quickly as possible but emphasized that it would not “sacrifice thoroughness at the altar of speed” – comments which may raise eyebrows among long-term industry observers.

OIL MAJORS, OTHERS, RAISE CONCERNS AS NATIONAL ASSEMBLY BEGINS HEARING ON PIB, PETROLEUM INDUSTRY BILL.

Some major oil-producing companies and other players in the industry have raised concerns over some provisions of the Petroleum Industry Bill (PIB), 2020. This was at the first day of the public hearing, a necessary stage of the consideration and passage of the bill.

The legislation, which was transmitted to the National Assembly last year after it had suffered setbacks for about 20 years, proposes the scrapping of the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Product Pricing Regulatory Agency (PPPRA). It also proposed the creation of the Nigerian National Petroleum Company Limited – after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.

The PIB also seeks to establish the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

At the hearing organized by the Joint Committee on Petroleum Upstream, Downstream and Gas, was the Oil Producing Trade Section (OPTS) who expressed dissatisfaction with some provisions of the bill.

The chairman of OPTS, Mike Sangster, made his presentations on behalf of Total, Chevron, Exxon Mobil and Shell companies.

Major concerns

Top of their concerns was Deepwater developments, which he said have contributed significantly to maintaining Nigeria’s oil production levels by offsetting the decline in the Joint Venture production.

Mr. Sangster complained that the PIB shows that the Deepwater provisions do not provide a favorable environment for future investments and for the launching of new project.

To ensure investors are encouraged to finance Deepwater projects, ‘the PIB should grant Deepwater oil projects a full royalty relief during the first five years of production or a graduated royalty scheme as detailed in their submission’, he said. He also proposed that PIB should remove Hydrocarbon Tax considering that companies will still be subject to CIT.

The group said the bill does not address the key challenges facing gas development in Nigeria, such as inadequate midstream infrastructure, regulated gas pricing, huge and long outstanding debts, etc., thereby potentially jeopardizing the realization of the government’s aspirations for domestic gas sector. It therefore suggested that PIB “provide a clear path for transitioning to free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply and allow pre-existing contracts and agreements to run their course”.

The PIB, Mr. Sangster continued, “does not clearly preserve the terms of existing investments”.

“OPTS recognizes the government’s right to change laws. However, to maintain Nigeria’s reputation amongst investors, it is important for the PIB to explicitly preserve base businesses and rights for existing Joint Venture licenses and leases and Production Sharing Contracts, which form the basis for future growth.

“Operators should be allowed to retain the entirety of their lease areas and new terms should apply only to new contracts, licenses and leases,” he added.

 

For a section of the bill which proposes that companies operating consolidated upstream and midstream assets separate and incorporate their midstream assets as distinct legal entities, he said “an imposed segregation along upstream and midstream for existing assets could jeopardize the integrity of past investments for assets that were technically and commercially designed to operate on an integrated basis”.

The OPTS said the PIB should include a savings provision to allow post-conversion continuity of activities undertaken by a single legal entity, instead of being segregated as independent companies.

“Where assets are required to be segregated, a provision for the specific exemption of associated taxes should be considered such as Capital Transfer Tax, Capital Gains Tax.

“PIB should consider harmonizing the taxes into a single tax system and allow for consolidated filing and tax reporting and also seek to harmonize tax practices and ensure capital allowances and allowable deductions are consistent with existing tax legislations, Companies Income Tax Act (CITA).”

Other concerns

The Women in Energy Network were also present to state their concerns. The group, among others, noted the absence of gender participation in the bill.

They cited Sections 3, 14, 15, 18, 22, 26, 37, 41 and 71, among others as they asked the lawmakers to change words like ‘he’, ‘his’ and ‘him’ to ‘they’, ‘their’, and ‘them’.

Funmi Ogbue, who made the presentation, said women have a role to play not just in technical aspects but in ensuring good governance.

This is even as she proposed that 35 per cent of the board be made up of women and the members should consist of women from the host communities (with the right qualifications).

She said the provision that oil companies should contribute 2.5 per cent of their operating cost to the host community development trust fund is exorbitant in view of other taxes they are presently paying.

“WIEN believes that 2.5 per cent is too expensive. WIEN posits that a total of not more than 1 per cent consistent with other statutory provisions like the Nigerian Local Content Act 2010 replace the current figure captured in the PIB.

“And the PIB include alternative sources of energies such as renewables.”

Meanwhile, in his opening remarks, the Senate President, Ahmad Lawan, explained that the National Assembly’s determination to pass the Bill is driven by the need to “overhaul a system that has refused to operate optimally in line with global standards, resulting into loss of continental competitiveness, transparency, accountability, good governance and economy loss for the petroleum industry and the country”.

NO INCREASE IN FUEL PRICE YET – NNPC

The Nigerian National Petroleum Corporation (NNPC) against the backdrop of the new guiding price for Petroleum Motor Spirit (PMS) released by the Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no increase in its ex-depot price for the month of March.

This was even as it stated that the question of if the Federal Government is now paying subsidy on the commodity, was a matter of simple “logic and arithmetic.”

The Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru made the clarification. According to him, despite the increase in oil price at the international market, its ex-depot price remains unchanged since February.

The group GM said regardless of the PPPRA’s guiding price template, the NNPC remains the current sole importer of fuel in the country. we are not going to increase, so irrespective of what the PPPRA has said, that is still our position” he said.

DPR REAPRAISES FIVE PSCS FOR GAS DEVELOPMENT

The Department of Petroleum Resources (DPR) has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country. Sarki Auwalu, the Chief Executive Officer, revealed this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday, the 8th of March, 2021.

The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”

He said DPR had considered and reviewed five terms for gas development in PSC and the terms included duration, cost of gas, tax gas, royalty and profit gas.

“These five terms, we believe when considered, will definitely make it robust and enable the provisions that were made in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns,” said Auwalu.

He explained that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.

According to him, others were signed in 1993 with oil majors, and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.

1029MW OF ELECTRICITY STRANDED DUE TO GAS SHORTAGE, UNPAID INVOICES

Eight of the power plants on the national grid suffered gas constraints on Wednesday the 3rd of March 2021, amid concerns by gas producers over unpaid invoices in the Nigerian electricity supply industry.

A total of 1,029.80 megawatts of generation capacity was idle as of 6am on Wednesday because of gas constraints.

The nation’s total unutilized electricity generation capacity stood at 2,119.8MW as of 6am on Monday, with low load demand by the distribution companies and water management stalling the generation of 1,090MW.

The power plants affected by gas constraints included Omotosho I, Olorunsogo I, Omoku, Afam VI, and Geregu II (NIPP). Others were Omotosho II (NIPP), Gbarain NIPP and Trans-Amadi, according to data obtained from the Nigerian Electricity System Operator.

Total power generation in the country stood at 4,775.8MW as of 6am on Wednesday, compared to 4,751.8MW on Tuesday.

The Oil Producers Trade Section, comprising international and local operators in the Nigerian oil and gas industry, has decried the unpaid gas invoices in the power sector.

In its presentation at the international conference of the Nigeria Gas Association, the OPTS said, “We must of a necessity repay all outstanding gas invoice arrears. Some companies are being owed as far back as 2015-2016. This is not sustainable; we must be able to get assurance that when we produce the gas, we will get paid for it. So, we must of a necessity quickly settle all outstanding debts, and make sure that we establish bankable credit support that will make the gas business to grow so that investors can develop more gas resources.