Senate probes NNPC GMD Baru over allegations of corruption, insubordination

Nigerian Senate on Wednesday set up an ad-hoc committee to carry out “holistic investigation” into allegations of corruption against Maikanti Baru, the Group Managing Director, GMD, of the state oil firm, NNPC.‎

The Senate also charged the nine-member committee to investigate a letter written by the Minister of Petroleum, Ibe Kachikwu, to President Muhammadu Buhari accusing Mr. Baru of illegal actions and insurbodination.

The Senate committee is to be chaired by Aliyu Wamako while its members include Tayo Alasoadura, Akpan Bassey, Samuel Anyanwu, and Ahmed Ogembe. Others are Chukwuka Utazi, Rose Oko, Baba Garba and Kabir Marafa.

Presenting the motion, Samuel Anyanwu emphasised the need for the Senate to investigate Mr. Baru’s involvement in alleged corrupt activities of Duke Oil, a component of the NNPC Trading Limited.

Mr. Anyanwu noted that the company was incorporated in 1989 in Panama and therefore,does not pay tax in Nigeria.

He said further that the company enjoys massive support of NNPC in trading of crude oil in the international market in spite of grappling with the basics of what it was registered to do.

“The Senate is aware of the decision of the current GMD to allocate almost all products to Duke Oil, this is in addition to its automatic inclusion in the lifting of crude oil, gas etc, which thus, makes Duke Oil a money spinning outfit.

“The Senate is aware that Duke Oil remains the sole importer of AGO to PPMC and Retail, which it does through third party since it cannot import by itself, this contributes in slowing the growth of our indigenous companies that are making giant strides in the sector.”

Mr. Anyanwu alleged that the general lack of transparency and level playing field have combined to make Duke Oil the highest money earner and at the same time, the highest money “waster” due to corruption in its operations.

Concerned that this relationship has stifled the growth of indigenous companies operating in the sector, the Senate resolved to constitute a committee to investigate the policy introduced by the current GMD of allocating products to Duke Oil and carry out a holistic investigation into the activities of NNPC Trading Company.

The lawmakers also resolved to investigate the letter written by Mr. Kachikwu.

Mr. Kachikwu in a letter dated August 30 which surfaced in the internet on Tuesday had criticised Mr. Baru over illegal practices and appealed to President Buhari to take urgent steps to address his concerns.

NNPC SETS UP EIGHT COMMITTEES TO REHABILITATE REFINERIES

The Nigerian National Petroleum Corporation, NNPC, has inaugurated eight committees charged with returning the nation’s three refineries to their nameplate capacities by the year 2019.

A statement by Ndu Ughamadu, NNPC spokesperson, said the move was in line with the presidential mandate of rehabilitating the nation’s three refineries.

The statement noted that the Group Managing Director of the Corporation, Maikanti Baru, charged the committees to deploy “out of the box solutions” to ensure that the refineries return to their good old days of top class performance.

“I am convinced that the teams we have selected here today will give the necessary direction towards returning the refineries back to their optimal levels of performance,” Mr. Baru said.

The GMD explained that in executing the assignment, the committees were expected to deliver well and within schedule as according to him, time was of the essence. He noted further that although the target for the refineries rehab was to return them to 90 per cent capacity utilisation before the end of 2019, but with more commitment from the committees, 100 per cent capacity utilisation was achievable.

“We want to show everyone that we can fully run the refineries. You must all work together to operate them at 100 per cent capacity as this was the only way to ensure profitability,” Mr. Baru stated, adding that “we can fix the refineries but without the right people to operate them, they would go back to where they were or even worse.”

In his remarks, the Chief Operating Officer Refineries and Petrochemicals, Anibor Kragha, informed that the 2019 target was the first time in 20 years that there was both the political will and the economic climate to ensure effective retrofitting of the refineries.

He further said that over 28 Expressions of Interest had been received so far for the financing of the rehabilitation project and that the goal was to get more by the end of the year.

“Payment is therefore hinged on performance, ensuring a win-win situation for Nigeria”, Mr. Kragha said.

NNPC TARGETS $30 BILLION REVENUE FOR FG IN 10 YEARS

THE Nigerian National Petroleum Corporation (NNPC) has disclosed that the four major investments it recently embarked upon with key upstream joint venture partners are capable of providing incremental revenue to the national treasury by over $30 billion within the next 10 years.

Speaking at the inauguration of the reconstituted NNPC Anti-Corruption Committee in Abuja on Monday, Group Managing Director of the Corporation, Dr Maikanti Baru, said the investments which attracted a haul of close to $3.8 billion in foreign direct investments would serve as vehicle to fast-track the prevailing post Cash-Call exit era.

The GMD listed the critical Joint Venture alternative financing upstream investments to include: The $1.2 billion multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited, codenamed project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800 million alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.

Also listed are the agreements executed in London last week for the $1billon NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, hitherto financed through JV Cash Call.

Dr Baru commended the NNPC finance and technical teams for being able to attract the much needed foreign investment at a period when it has become increasingly difficult to attract foreign credit facilities.

“These four projects alone are going to raise incremental revenues to Nigeria of over $30 billion over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting JV Cash Calls. We have to pay our arrears of about $6billion that were incurred pre-2016 and we are also paying up a tranche of about $1billion 2016 arrears. We started in April 2017 with the payment of $400million and we will pay the balance before the anniversary of the first payment,” he said.

The GMD explained that the arrangement would allow the Corporation to subsequently operate from the production revenue less the first line charge to government which is the royalties and petroleum profit tax.

He said that whatever profit that accrues afterwards would be remitted to the government after deduction of production cost.

Drawing a correlation between the quest for revenue and the anti-corruption campaign, the GMD said members of staff must never allow corrupt practices to distract from the great task ahead.

The GMD traced NNPC’s involvement in the anti-corruption campaign to the year 2000 when the Federal Government directed all its Ministries, Departments and Agencies (MDAs) to establish in-house Anti-Corruption Committees.
“NNPC was the first to put one in place within a month, precisely in October 2000,” he noted
Dr Baru was a chairman of the committee.

He noted that since then, the NNPC Anti-Corruption Committee had consistently carried out its mission of eradicating corruption in NNPC through organizing sensitization campaigns, workshops, seminars and Federal Government publications on issues concerning corruption and economic crimes.

While thanking the former committee members that served at various times for a job well done, Dr Baru urged the new members to surpass the achievements of the past committees in line with the present administration’s anti-graft agenda.

He emphasized that with the prevailing global economic reality; the only survival strategy at a time like this was to change from old ways of doing business and embrace the best practice of transparency, accountability and honesty with integrity.

The new NNPC Anti-Corruption Committee is headed by Mr Mike Stanley Balami, a Group General Manager in the Finance and Account Directorate and a veteran anti-corruption crusader.
Mr Balami pledged the readiness of members of the committee to work in harmony towards achieving a corruption-free NNPC.

He urged all heads of Strategic Business Units and Corporate Services Units to reconstitute and inaugurate their Anti-Corruption units to work closely with the Corporate Anti-Corruption Committee to ensure a corruption-free NNPC.

NNPC AMBUSH: 'NOBODY WAS RESCUED' SAYS UNIMAID VC

The Vice Chancellor of the University of Maiduguri, Abubakar Njodi, on Friday lashed out at the military over claims it made that it had rescued oil workers that were recently ambushed and captured by Boko Haram fighters.

The crew of geologists and their aides were from the university and were subcontracted by the Nigerian National Petroleum Corporation, NNPC.

Mr. Njodi had earlier said the institution had been engaged in providing consultancy services to the NNPC in the Lake Chad region.

A livid vice chancellor, whose brother was among those killed, faulted claims made last Wednesday by the spokesperson of the Nigeria Army, Sani Usman, who had told the media that soldiers had rescued the kidnapped officials.

Speaking during a condolence visit paid on him by officials of the federal ministry of petroleum, the vice chancellor said he still could not understand why the Nigeria Army chose to mislead the world with the spurious claims.

“The military said it has rescued all the geologists working for NNPC. I wonder how can the recovery of corpses be referred to as being rescued,” he said.

Mr. Njodi said his staff were out in the danger zone carrying out the oil exploration services after the security operatives had assured them of their safety.

“We are all at liberty to guess now as to whether security was provided or not,” he said.



“We have lost four vibrant members of our academic staff in that incident. None of the affected lecturers put in less than ten years in the university. For me to get a replacement for them would be difficult. We are talking of a department that has about 12 to 13 members of academic staff. Four of them are no more.”

The Minister of Petroleum, Ibe Kachikwu, had on Thursday also said the exploration only continued after security assurances by the military.

Mr. Kachikwu also announced a halt to oil exploration in the Lake Chad Basin until the military assures of better security in the area.

The leader of the visiting delegation to the vice chancellor, Saidu Muhammed, who is the Chief Operation Officer of Gas and Petroleum services of the petroleum ministry, had earlier delivered a condolence letter on behalf of the minister of petroleum to the vice chancellor.

He said the ministry would continue to strengthen its partnership with the university despite the “hiccups” that happened this week.

Earlier, during a similar courtesy visit by the Minister of Education, Adamu Adamu, Mr. Njodi confirmed to journalists that the deceased were two geologists, two technologists and a driver from the institution. PREMIUM TIMES had reported the burial of the driver, who was a brother to the vice chancellor.

Mr. Njodi added that four other staff were still missing: two lecturers, one technologist and a driver.
He explained to the education minister why the university had entered into a partnership with the NNPC.
“In our commitment to contribute to the country’s economic development, we defied the odds and joined the operation. Initially, we reluctantly accepted to go back and joined the operation, but we were assured of adequate security.

“The deceased (victims of the insurgency) should be immortalised, they deserve the national honour,’’ he added.

Boko Haram gunmen had on Tuesday attacked a crew of geological scientists from the University of Maiduguri who were assisting the NNPC in carrying out surveys in the Lake Chad region where the federal government believes there are chances of getting new deposits of crude.

The military had said it lost 9 soldiers and that the missing NNPC officials were rescued.
However, even the military casualty is believed to be higher as about 18 corpses of soldiers who lost their lives in the bloody rescue mission were said by hospital officials to have been brought into morgues in Maiduguri alongside about 30 other civilians casualties. The total unofficial death toll is believed to be 48.

The attack came few days after the Nigeria Chief of Army Staff, Tukur Buratai, issued a 40-day ultimatum for the commanders of the counterinsurgency operation to secure the arrest of the Boko Haram leader ‘dead or alive.’

A rattled President Yemi Osinbajo on Thursday night directed that all the service chiefs relocate to Maiduguri to personally supervise the counterinsurgency operation.

$9.7m loot: Yakubu drags EFCC to court, seeks N1bn damages

Former Group Managing Director of NNPC, Mr Andrew Yakubu has taken the Economic and Financial Crimes Commission to court and wants the Federal High Court Abuja to award N1 billion in his favour against the anti-graft agencies as damages and compensation for violation‎ of his right.
Counsel to Yakubu, Mr Adeola Adedipe told the court that the matter was brought pursuant to Order 8 Rule 4 of the Fundamental Rights Enforcement Procedure Rules.
Yakubu also prayed the court for a declaration that he was entitled to the dignity of his person, personal liberty, freedom of movement, private and family life as enshrined in the 1999 Constitution.
Yakubu joined the EFCC and the Attorney-General of the Federation as first and second respondents in the suit.

He also prayed the court to declare that his continued detention by the EFCC without charging him to court or allowing him to complete his medical procedure in the United Kingdom was a violation of his rights.
The former NNPC boss asked the court to declare that his continued detention was also an infringement on his rights to dignity of human person.
He subsequently, prayed the court for an order enforcing his rights to personal liberty, dignity of human person, freedom of movement, private and family life.
This, he said, was by directing his immediate release from EFCC custody or admitting him to bail on liberal terms and allowing him to complete his medical treatment in the United Kingdom.
Yakubu also prayed for an order of perpetual injunction restraining the EFCC from further detaining him unlawfully.
He urged the court to compel the respondents to tender a public apology to him in two widely published national daily newspapers for the violation of his rights.

GE Proposes Investment in Nigeria’s Three Refineries

General Electric, GE, a US multinational company, Tuesday in Abuja, proposed to invest in the nation’s three refineries located in Port Harcourt, Warri and Kaduna.

GE, in a presentation to NNPC GMD, Dr. Maikanti Baru and his team stated that the company’s teams of partners, including its consortium involving the Engineering, Procurement and Construction (EPC) partners, off-takers, traders and some financiers would be engaged in the initiative.

GE, which Headquarters is in Boston, Massachusetts, is worth 493 billion dollars in asset and its business focus areas include oil and gas, power, water supply, aviation, healthcare, transportation and capital.

‘’We were involved in the tenders that started around last year which was subsequently withdrawn but our commitment to bringing the refineries on-stream is still very deep and we are very serious about it. We propose that work commences either with the Warri or Port Harcourt Refinery as a pilot, as we set a target to improve the refinery capacity before the end of 2017,’’ the Company stated in its presentation.

GE’s desire to partner with NNPC on the rehabilitation of the three refineries came on the heels of a similar proposal by the Italian company, Eni, to establish cooperation with NNPC for the Rehabilitation and enhancement of Port Harcourt Refinery as contained in the company’s release in Rome yesterday July 23, 2017.

Leading a high powered delegation to the NNPC Towers, Jeff Immelt, GE Global Chairman and Chief Executive Officer, said as part of the offering, GE and NNPC have identified some major national power projects in the country and are currently developing the scope of intervention in the projects which have a potential combined capacity of about 4.4 gigawatts.

GE further pledged its readiness to work with the NNPC to make production in the Off-shore fields profitable for the benefit of both companies and other stakeholders, expressing the hope to consolidate on its existing working relationship with the Corporation to expand the prevailing power business and help NNPC achieve its vision of becoming the leading power company in Nigeria.

Welcoming the GE team to the NNPC Headquarters in Abuja, Group Managing Director of the Corporation, Dr. Maikanti Baru expressed delight in the interest GE had to intervene in some vital operational areas of the Corporation.

Dr Baru noted that GE’s offer of a package that includes projects financing would greatly improve collaboration and initiate the power projects rapidly.

The NNPC GMD also welcomed GE’s offer for support to boost the nation’s offshore production and raise crude oil reserve ratio replacement, urging the company to also tap into the opportunities on offer in medical supplies as the NNPC moves to commercialise the services of its 52 hospitals and clinics spread across the country in the years ahead.

 Ndu Ughamadu
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation
Abuja
24/01/17

NNPC to refine crude in Niger Republic

A technical team to see the possibility of refining crude oil in Niger Republic by the Kaduna Refining and Petrochemical Company (KRPC) may be underway by the Nigerian National Petroleum Corporation (NNPC), it was learnt yesterday.

read more

Fuel Scarcity Bites Harder, Petrol Now N400 Per Litre.

The ongoing scarcity of Premium Motor Spirit also known as petrol is biting harder in the country as users are forced to pay far above the recommended price of N87 per litre in most of the filling stations that sell the product, SUNDAY PUNCH has found out.

read more

1.4bn Litres Of Petrol Available For November, Mega Stations ToCommence 24-hour Service- NNPC

The Nigerian National Petroleum Corporation (NNPC)has assured that it has enough volume of petrol in stock to satisfy the nation’s domestic consumption requirement, noting that the prevailing fuel queues in some major cities across the country have nothing to do with the lack of supply of petroleum products according to reports by THEWILL.
read more

Nigeria Hits Goldmine, Finds Crude Oil In Lake Chad Area – NNPC

Nigeria is “on the verge of a significant oil find” in the Lake Chad area of the northeast, NNPC managing director Ibe Kachikwu was quoted as saying in a statement issued by the state oil company on Sunday.
read more

Benue State Gov.Inaugurates 200 KVA Transformer Donated By NNPC ApirDepot.

The Benue state government has inaugurated a 200 Kva transformer donated to the Mbasombo-Mbagba community in Benue State by the NNPC/PPMC makurdi depot.

The Gov was representated by the SSG Barr Targema Takema and the Special Adviser on Rural Dev.and Cooperatives Hon Tsenongo Abancha.

read more

REVEALED: Oil Worth $13.7b Billion Stolen Under NNPC!

NNPC

The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, Hajiya Zainab Shamsuna-Ahmed, on Wednesday said between 2009 and 2012, about 160 million barrels of oil valued at $13.7bn was stolen under the watch of the national oil giant, Nigerian National Petroleum Corporation.

read more

Buhari To Split NNPC Into Two …Plans Fresh Bid Round For Oil Blocks.

President Muhammadu Buhari has finally revealed what will be the fate of the Nigerian National Petroleum Corporation, saying the national oil company will be divided into two successor entities under his administration.
read more

Nigeria’s Auditor General Blames Inability Of Auditor Gen's Office To Publish NNPC Forensic Audit Report On Presidential Interest.

The Auditor General of the Federation (AuGF), Samuel Ukura, on Tuesday blamed the inability of his office to publish the report of the forensic audit on the Nigerian National Petroleum Corporation (NNPC) over the missing $20 billion oil fund on presidential interest. read more