PETROL:NIGERIANS ENJOYS LOWEST COMPARATIVE PRICES IN WEST AFRICA-NNPC GMD KYARI.
Nigerians pay lower price for fuel in West Africa, especially Niger Republic,the Group Managing Director of the Nigerian National Petroleum Corporation,Mele Kyari has said.
Specifically,Kyari said fuel price is as high as N464/litre in Niger and more than double Nigeria’s N160/litre range in most West African countries.
He disclosed this in Abuja at the NNPC’s parley with energy journalists in Abuja,where he promised that the corporation would continue to ensure Nigerians benefit from lowest comparative prices in West Africa and beyond.
He also said the NNPC is in the process of strengthening the products distribution system by revamping our pipeline network through a Build, Operate and Transfer (BOT) model whose process is already at an advance stage
He added:”The vision of revamping the pipelines is in tandem with the Refineries Rehabilitation Project which we have promised to deliver by 2023. I am happy to announce that the funding challenge which had stalled the second phase of the rehabilitation of the Port Harcourt Refinery has been resolved. The contract for the second phase will soon be awarded and
“In the meantime, we are supporting private sector investors who are driving a number of refinery projects across the country to promote local refining with a view to attaining self-sufficiency in refining and transforming Nigeria into a net exporter of petroleum products”.
Kyari said the COVID-19 pandemic and the subsequent OPEC-Plus agreement to cut production has impacted our plans and activities with regard to production growth, but much has been achieved by Nigeria.
He disclosed that the NNPC is investing aggressively in gas to take advantage of the energy transition and get Nigeria ready for the future in the face of the dwindling fortunes of petroleum liquids.
He added:”You may be aware of the NLNG Train 7 and other gas infrastructure projects such as the Escravos-Lagos Pipeline System Phase 2, Obiafu-Obrikom-Oben (OB3) gas pipeline, Ajaokuta-Kaduna-Kano (AKK) gas Pipeline. While the Integrated Gas Handling Facility in Edo State is billed for commissioning soon.All these projects are aimed at ensuring that Nigeria takes its rightful place in the emerging global energy order where natural gas is envisaged to play a pivotal role.
“Our downstream operations is also experiencing an upswing with the introduction of Operation White which has helped us in streamlinin g petroleum products importation, supply and distribution across the country.I can assure you that the arrangement we have in place to sustain fuel supply across the country is solid and we are sure of maintaining zero fuel queues throughout the Christmas and New Year festive season into 2021.
He said as part of measures to raise national reserves to 40billion barrels and production to 3million barrels per day,the NNPC has revved up exploration work in the inland basins culminating in the oil find in commercial quantity, in the Upper Benue Trough.
He said the drilling of Kolmani River III Well is ongoing with very high prospect of oil find,adding that seismic data collection is ongoing in the Bida Basin and we are re-launching exploration work in the Chad Basin.
He added that the corporation has resolved a number of disputes that hampered production activities with a view to boosting production to meet the 3million barrels per day production target.
Key among these are dispute involving Shell and Belema Oil that shut in over 30,000barrels per day production in OML 25.
He said:”We have also executed the Abo OML 125 Heads of Terms leading to the resolution of the issues around most of the deep offshore production sharing contracts, paving way for eventual renewal of OML 125 and further investment in exploring the lucrative field.We have also secured a number of alternative funding facilities for the NPDC and some of our Joint Ventures to facilitate the development of some of our assets. These include: the N875.75m NPDC OML 65 Alternative Funding and Technical services package with CMES-OMS Petroleum Development Company, the $3.15bn Alternative Financing Package with Sterling Exploration and Energy Production Company Limited (SEEPCO) and other partners for the development of NPDC’s OML 13.
” OML13 First oil of about 7,900bpd was achieved from the project on 1st April, 2020, while production is expected to peak at 94,000bpd and 542mmscfd within four years”
He said despite these achievements, the year 2020 has been a difficult year for the industry and the world economy.
According to him,the industry fundamentals have changed, and a lot of companies are struggling to adapt to the new normal.
He said:”The impact on oil and gas operations is tremendous as crude oil price turned negative for the first time in history, with rigs disappearing from oil fields.According to industry analysis carried in Q1, 2020, E&P Companies are at risk of losing about $1 trillion in revenue by the end of 2020.
“With new lockdown orders due to resurgence of COVID-19 in Europe and other industrial Nations, the estimated revenue shrinkage may likely grow above Rystad Energy estimates by the close of 2020. This financial impact and the resultant poor liquidity position is making funding of both existing and new projects more difficult as companies cut spending and defer projects.
“As a national oil company, our natural response to situation like this is not to shut down operations owing to the linear relationship between the oil industry and our Nation’s economy. What therefore first come to mind is how to survive and sustain our operations.