Business

NNPC uncovers 72 illegal refineries in one week

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3 weeks ago

August 30, 2024

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The Nigerian National Petroleum Company Limited (NNPCL) said that at least 72 illegal refineries were uncovered within a week across three states: Rivers, Delta, and Abia.

In a video report released by NNPCL, the company detailed the discovery of these illegal refineries.

On August 18, members of Operation Delta Safe apprehended a vessel with 12 suspects on board in the Southern Ijaw area of Bayelsa State.

The NNPCL reported that the tugboat was found carrying stolen Shell Petroleum Development Company flow lines.

“The tugboat was caught loaded with stolen Shell Petroleum Development Company flow lines, which shows that not only did the thieves break the pipelines in order to connect their pipes, but they also harvested oil pipelines as well,” the NNPC said.

The thieves not only broke into the pipelines to siphon oil but also removed sections of the oil pipelines themselves.

The 12 suspects are currently in custody for further investigation.

Additionally, NNPCL disclosed that 46 automatic identification system infractions were recorded at sea, and 24 wooden boats carrying stolen crude were intercepted in Rivers and Bayelsa States.

On land, several vehicles transporting stolen crude oil were also seized in Delta, Rivers, and Bayelsa States.

During the same week, 33 illegal oil connections were discovered in the three states.

Eight incidents of oil spills, attributed to vandalism, were recorded, and 12 sites used for storing stolen crude and illegally refined products were uncovered.

“From August 17 to 23, 204 incidents of oil theft were recorded by different incident sources.

“47 of the incidents took place in the deep blue water, 10 in the western region, 100 in the central region and 47 in the eastern region,” it was disclosed.

In connection with these incidents, a total of 42 suspects have been arrested.

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Business

It is illegal for NNPCL to fix price of Dangote petrol – Falana

Published

3 days ago

September 17, 2024

Ekwutos Blog

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Human rights lawyer, Femi Falana, SAN, says it is illegal for the Nigerian National Petroleum Company Limited, NNPCL, to determine the price of Premium Motor Spirit, also known as petrol, for the Dangote Refinery after deregulation.

Falana, who said this in a statement on Tuesday, added that the action of the NNPCL contravenes Section 205 of the Petroleum Industry Act, PIA.

“On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act, PIA.

“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces.

“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. The action of the NNPCL is a violent contravention of section 205 of the PIA, which stipulates that the prices of petroleum products shall be determined by market forces.

“Furthermore, since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc,” he said.

Falana’s outburst followed the commencement of PMS lifting by the NNPCL from the Dangote Refinery.

DAILY POST recalls that as soon as lifting commenced, NNPCL announced that the product would sell for N950 per litre in Lagos State and its environs, and above N1,000 per litre in states such as Borno.

Reacting, the Independent Petroleum Marketers Association of Nigeria, IPMAN, on Monday, criticised NNPCL, saying it was not right for petrol lifted from the Dangote Refinery to cost higher than imported ones.

Business

Dangote refinery: Naira transaction for PMS to begin October 1st – NNPC

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4 days ago

September 16, 2024

Ekwutos Blog

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The Nigerian government has announced that it will begin paying Dangote Refinery in Naira for petrol supply starting October 1st.

This decision was made after a meeting with the Implementation Committee on the Naira crude oil sale.

The government also disclosed that the Dangote Refinery and other local refiners in Nigeria will begin to buy crude oil from the Nigerian National Petroleum Company (NNPC) Limited on October 1, 2024.

The NNPC will supply approximately 385,000 barrels per day of crude oil to the Dangote Refinery, which will be paid for in Naira.

Business

Dangote Refinery plans sea transport for 75% of local supply, targeting Warri, Port Harcourt, and Calabar

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4 days ago

September 16, 2024

Ekwutos Blog

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Dangote Refinery has announced plans to transport 75% of its local petroleum product supply via sea routes, targeting key locations like Warri, Port Harcourt, and Calabar.

This shift to sea transportation aims to reduce the higher costs associated with road distribution.

The refinery has the capacity to load 83% of its products by road, but it is ramping up efforts to evacuate nearly all production by sea.