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JUST IN: NNPCL reduces petrol price to N1030/l for marketers

by Folarin Kehinde
written by Folarin Kehinde

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has revealed that the Nigerian National Petroleum Company Limited (NNPCL) has reduced its price for the Premium Motor Spirit (PMS) petrol to marketers from N1,045 per litre to N1,030 per litre.

The association’s National President, Dr. Billy Harry disclosed this at its strategic meeting and award presentation in Abuja yesterday.

He said: “Today, NNPCL has reduced their price to 1,030 Naira”

He added that the marketers are still pressing the state-owned firm to further drag down the price.

“We are still hoping and pushing that it will still come down low,” he said.

Recalled that NNPCL major competitor, Dangote Refinery and Petrochemicals sells the product at N970 per litre to the marketers with a ceiling of a minimum of two million litres while NNPCL has not limited its volume to the marketers.

Explaining the implication, Harry said the turn over rate from buying from NNPCL will be higher despite its higher rate.

His words, “Because most of our members are going to be struggling to get 50 million Naira, or thereabout, or even N60 million to buy products.

“Now, that is not what is easily affordable. So, we, as retail outlet owners, you can see why we are very close to NNPC.

“Because we can go there and buy one product, sell, quickly turn it around, and then come back. But then, if we have to buy 2 million liters, we must go together.”

He disclosed that NNPCL has opened its their portal for marketers to start lifting products since the day on Wednesday.

According to him, the competition emanating from the free market operation will certainly bring down petrol prices further.

He said “And as I speak to you, they (NNPCL) are already programming for us on the current price.”

He also disclosed that owing to the need to patronize domestic refineries, the association has suspended its plan to import the products.

Harry said, “So, we are not going to start importing if there is product available. So, wherever is best, we are not going to be looking for dollars to start importing when we can get a Naira-dominated transaction from Dangote, from Port Harcourt Refinery, from Warri Refinery, from all the refineries in Nigeria.”

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NNPC Driver arrested for Stealing 10,000 Litres of Fuel

by Folarin Kehinde
written by Folarin Kehinde

Afeez Adegbala, a driver attached to the Nigerian National Petroleum Company Limited has been arrested for allegedly diverting 10,000 litres of petrol belonging to the company.

Adegbala was arrested on Friday alongside his two motor boys by personnel of the Nigeria Security and Civil Defence Corps, Osun Command.

While parading the suspect, the NSCDC state commandant, Igbalawole Sotiyo, said the driver and his boys were arrested at about 8.21 pm with the NNPCL truck.

According to Sotiyo, the driver loaded 40,000 liters of petrol at Pinnacle Distribution Depot in Eleko, Lagos State for delivery at the company’s mega stage ion in Osogbo.

He, however, delivered onky 30,000 liters of fuel to the station.

He was further arrested while discharge the remaining 10,000 at TEMPOLA filling station in Ikirun, Ifelodun Local Government area of the state.

He said, “It is an act of sabotage and stealing against the state. They are saboteurs and anti-state.

“NSCDC is using this medium to warn all the stakeholders involved in the distribution of petroleum products nationwide that anyone caught sabotaging the government would be apprehended and prosecuted.

“NSCDC uses this medium to request NNPCL Managers/Supervisors nationwide to work with the NSCDC to ensure saboteurs are brought to justice,” he said.

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NNPCL Breaks Silence on Alleged New Fuel Price Hike

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company Limited (NNPCL) has addressed circulating rumours of a new increase in fuel prices, affirming that the pump price of Premium Motor Spirit (PMS) has not changed.

NNPCL spokesperson Olufemi Soneye stated, “There is no increase in gasoline price that I am aware of,” countering speculation that prices had risen from N1,030 to N1,060 per litre in Abuja.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, echoed Soneye’s sentiments regarding NNPCL’s ex-depot prices, stating, “NNPCL still sells to us at the same price.”

He noted, however, that independent marketers are currently facing a fresh price hike. “For Port Harcourt, it is N1,040 per litre; Abuja and Lagos are around N990 per litre,” he added.

This clarification follows an earlier price increase by NNPCL on 9 October 2024, when petrol was raised to N1,030 per litre.

The comments come at a time when the President of Dangote Group, Aliko Dangote, has expressed concerns about petroleum marketers overlooking the company’s refinery capacity of 500 million litres of fuel.

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NNPCL Dedicates 8 Million Barrels Monthly To Offset $8.8bn Loan Repayment

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company Limited (NNPC) has committed 272,500 barrels per day of crude oil in exchange for loans totaling $8.86 billion through a series of crude-for-loan agreements.

This commitment translates to roughly 8.17 million barrels of oil per month dedicated to various loan deals, as revealed by an analysis of reports from the Nigeria Extractive Industries Transparency Initiative and NNPC’s financial statements.

Some of the major initiatives financed by these deals include Project Panther, Project Bison, Project Eagle Export Funding, Project Yield, and Project Gazelle.

NNPC has already repaid $2.61 billion, or 29.4% of the total loan, leaving $6.25 billion outstanding. Of the $8.86 billion facility, $6.97 billion has been received so far across seven crude-for-loan agreements.

One key project, Project Panther, is a joint venture between NNPC and Chevron Nigeria Limited, secured through international and local banks. It obtained a $1.4 billion loan backed by 23,500 barrels per day (bpd), with repayments starting after a moratorium period. Financing terms include SOFR plus a 5.5% margin and a liquidity premium.

Project Bison involved NNPC’s acquisition of a 7.25% stake in the Dangote Refinery, backed by a $1.04 billion loan from Afrexim Bank with 35,000 bpd pledged. NNPC fully repaid this loan by June 2024.

Project Eagle Export Funding consisted of three loans. The initial $935 million loan, taken in 2020 and secured by 30,000 bpd, was repaid by September 2023. A second loan of $635 million was also repaid within the same period, while the third, worth $900 million and secured by 21,000 bpd, is set for repayment starting in June 2024, with full maturity expected by 2028.

Project Yield, aimed at revamping the Port Harcourt Refinery, was financed with a $950 million loan, secured by 67,000 bpd. The loan, obtained in 2022, will begin repayment in December.

Despite this, the refinery has yet to commence production as of August, with delays persisting despite assurances from the Federal Ministry of Petroleum Resources and NNPC.

Lastly, Project Gazelle was designed to stabilize Nigeria’s foreign exchange market. In December 2023, NNPC secured a $3 billion forward sale agreement, pledging 90,000 bpd from Production Sharing Contracts. By the end of 2023, $2.25 billion had been drawn, with repayments set to begin mid-2024.

These crude-for-loan arrangements come at a time when Nigeria is grappling with efforts to boost its oil production.

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Business

NNPCL announces pump prices nationwide after lifting Dangote Refinery petrol

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company has released a breakdown of estimated prices of Premium Motor Spirit (Petrol) from Dangote Refinery in retail stations across the country based on September 2024 pricing.

The Spokesperson of NNPCL, Olufemi Soneye disclosed this in a statement on Monday.

The company confirmed that it is paying Dangote Refinery in United States Dollars for the September 2024 PMS offtake.

The state-owned company stressed that the Dangote Refinery Petrol gantry was bought at N898.78 per liter.

Consequently, the estimated cost price of petrol in Lagos, plus logistics, will stand at N950.22 per litre.

In other locations like Federal Capital Territory (Abuja), Sokoto, and Kano states, petrol will be sold at estimated prices of N999.22 per litre.

Rivers, Bayelsa, Akwa Ibom, Imo, and other states stood at N980, while Oyo State stood at N960.22.

Lastly, the highest pump price will be in Borno State which stood at N1,019.22 per liter.

“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by the Government, but negotiated directly between parties at an arm’s length.

“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 percent to the general public.

“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing”, he stated.

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Dangote Refinery free to sell petrol directly to marketers, says NNPCL

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company Ltd (NNPCL) has said Dangote Refinery and other domestic refiners are “free to sell directly to any marketer on a willing buyer, willing seller basis”, thereby dismissing the allegation of the national oil company becoming a sole offtaker.

The NNPCL was reacting to the Muslim Rights Concern (MURIC’s) claim that the organisation hiked the price of Premium Motor Motor Spirit, aka petrol, to undermine the efforts of Dangote Refinery to reduce the price of petroleum products in the country.

MURIC in a statement signed by its Executive Director, Professor Ishaq Akintola, also advised NNPCL to allow Dangote Refinery to operate freely without undue interference.

But the Chief Corporate Communications Officer at NNPCL, Olufemi Soneye, in a statement, on Saturday, took a swipe at MURIC, describing its position as “entirely flawed” and the one that is capable of inciting ordinary Nigerians against the NNPC Ltd.

Soneye said the NNPCL is not the sole offtaker while maintaining that the market remains open to lower prices from any domestic refinery.

“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces. The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.

“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market,” he explained.

Sonoye emphasised that “there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.”

He said “The NNPC Ltd will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.”

He also declared that “The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake.”

“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.”

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BREAKING: Get Ready for More Fuel Scarcity — NNPCL Tells Nigerians

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company Limited (NNPCL) has warned Nigerians to prepare for more fuel scarcity.

The warning was given by Adedapo Segun, Executive Vice President of NNPCL (Downstream), during a televised interview on Thursday.

Segun’s warning comes on the heels of the recent fuel price hike, which has already caused widespread hardship across the country.

The NNPCL executive said there is need for a perfectly competitive market to ensure stable fuel prices and supplies in Nigeria.

More to follow…..

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We’ll export our petrol if you fail to patronize us – Dangote Refinery warns NNPCL, marketers

by Folarin Kehinde
written by Folarin Kehinde

The Dangote Petroleum Refinery has vowed to ship its petroleum products to other countries if the Nigerian National Petroleum Company Limited, NNPCL and other oil marketers in the country fail to patronise it.

The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, made this known during an appearance on the live broadcast of the Brekete Family Show on Monday.

Leading reporters learnt that the President of Dangote Refinery, Aliko Dangote, on Tuesday announced the rollout of Petrol from the 650,000 barrels per day refinery.

He had in an earlier report said that the Premium Motor Spirit (Petrol) from the refinery will be available in the Nigerian market in 48 hours depending on the Nigerian National Petroleum Company Limited, NNPCL.

Edwin said, “We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS.

“So, that was the last stage. The only thing now left out is petrochemicals.

“So, the good news for the country is we have started producing PMS from our refinery since yesterday (Sunday).

“Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it), and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.

“But if the traders or NNPCL are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel.”

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Nigeria's NNPC spent $10 billion on fuel subsidy in 2022 paid to WHO Leading reporters
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NNPCL Announces Launch of New Utapate Crude Oil Blend, Targets 50,000bpd

by Leading Reporters
written by Leading Reporters

NNPC has launched a new crude oil blend with a current production of 28,000 barrels per day, aiming for 50,000.

The Nigerian National Petroleum Company Limited (NNPCL) on Monday announced the introduction of Utapate crude oil blend, a new crude grade into the international oil market.

The new blend is from Oil Mining Lease (OML) 13 and is fully operated by NNPC Exploration and Production (NEPL), the national oil company’s upstream subsidiary.

A statement by the Chief Corporate Communications Officer of the NNPC, Olufemi Soneye, said that the Utapate crude oil blend commenced operations in July 2024, with its first cargo headed for Spain.

Located offshore Akwa Ibom State in Nigeria, Utapate’s current crude oil production is at 28,000 barrels per day, the NNPC said, with potential to increase it to 50,000 barrels per day.

In addition, the national oil company stated that the sulphur content of the new crude is 0.0655 per cent.

According to the NNPC, Spanish oil giant Repsol, won the tender for the initial cargo of the new crude blend which is comparable to the much sought after Amenam crude.

Besides, it noted that Gulf Transport and Trading, another leading crude oil dealer, had also secured the cargoes’ tenders for August and September 2024.

During the Argus European Crude Conference in London last year, NNPC  announcedthe launch of Nembe crude oil, produced by the NNPC/Aiteo operated OML 29 Joint Venture (JV).

“Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

“This remarkable achievement signals the commitment of the NNPC to increase Nigeria’s crude oil production and grow reserves through the development of new assets,” the statement added.

Although there are three key crude oil blends, namely: West Texas Intermediate (WTI), Brent Crude and UAE Dubai Crude, there are tens of other little known grades.

Typically, crude oil is grouped according to its chemical properties, that is mainly  byits density and sulphur content. Crude is said to be sweet when it has a sulphur content of less than 0.5 per cent and sour if it’s higher than 1.0 percent.

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EVP Gas at NNPCL foresees revenue surge through gas commercialization in Nigeria 

by Leading Reporters
written by Leading Reporters

Mohammed Ahmed, the Executive Vice President of Gas, Power and New Energy at the Nigerian National Petroleum Company Limited (NNPCL) has said that upcoming gas projects in the country will generate a lot of revenue for the government through taxes and royalties. 

He said this in an interview last week during the NNPCL program; Energy and You, airing weekly on the Nigerian Television Authority (NTA) Network. 

According to him, Nigeria is aiming for gas commercialization through various projects that will see the populace making use of gas for industrialization, cooking and auto use, as opposed to flaring it. 

He said the NNPCL is working to ensure that those who produce the gas will have visibility as to the revenue they will get from their investments and customers will also be sure that once they begin to use gas, there is affordability and sustainability.    

He said: 

  • “The gas, power and new energy directorate in the Nigerian National Petroleum Company Limited’s basic objective is to ensure the commercialization of our gas assets across the country and this is not only for the domestic market but for exports. 
  • “In doing that we also have the new energy attached to it, we look at renewables and hydrogen, and all these come together to form what we call the energy transition mix.  
  • “Our focus is to ensure that there is gas availability, sustainability and affordability across the country.”  

According to him, there are various projects that are expanding the horizon of gas supply in the country, through functioning infrastructure that will take more gas into the domestic market.  

He said: 

  • “The Ajaokuta-Kaduna-Kano (AKK) gas pipeline corridor for instance has three major power plants, the minimum of which is 900 megawatts (MW), these power plants are aimed at sucking up available gas, putting it into use and generating power. 
  • “This will go a long way to ensuring that industries and factories that are facing the challenge of energy availability, will be happy to suck up the energy from these power plants.”  

He also spoke about upcoming gas projects like the Assa North Ohaji gas project.

He said that the project has the capacity to produce Liquefied Petroleum Gas (LPG), thereby making firewood as cooking fuel a thing of the past in the country.  

He also said that the project will help to further commercialize the gas that is available in the domestic market. Note that in its latest clean cooking report, the International Energy Agency (IEA) stated that LPG as a cooking fuel in Africa has gained some ground in countries like Kenya, and Nigeria.  

However, a lack of natural gas storage and distribution systems in many urban areas in Africa, makes LPG a lower-cost solution than building new pipelines.    

During the interview, Mr. Ahmed said that the NNPCL has received several requests from developed and developing countries who wish to collaborate with NNPCL, to produce liquefied natural gas (LNG) in Nigeria. 

This is because Nigeria Liquefied Natural Gas Limited is incapable of converting all the country’s gas into LNG.  

According to him, several gas projects will help transition Nigeria from a petrol-dependent country to a gas-dependent country. 

Note that this has been the aim of the government from the administration of former president Muhammadu Buhari who signed off on the decade of gas initiative in 2021.  

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