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NNPC terminates crude oil delivery contracts to refineries

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 The corporation also announced the termination of the Offshore Processing Agreements entered into in January, 2015, with three companies, namely Duke Oil Company Inc., Aiteo Energy Resources Limited and Sahara Energy Resources Limited.
Under the agreement, NNPC allocates a total of 210,000 barrels of crude oil per day for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.
According to the corporation, the decision to cancel the oil delivery contracts to refineries was taken after proper evaluation of the contract terms, and cancellation was due to exorbitant cost and inappropriate process of engagement.
The firm said the new measures were aimed at cost reduction and strengthening of operational efficiency across its value chain.

 

 

The corporation noted that as a stop-gap measure, NIDAS Marine Limited, a subsidiary of the NNPC, had been engaged to provide crude delivery service on negotiated industry standard rate pending the establishment of substantive contract.
The corporation, in a statement issued by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said, “We have also commenced a rigorous and transparent process of securing capable and competitive contractors for the delivery of crude oil by marine vessels to Port Harcourt and Warri/Kaduna Refineries pending the restoration of the crude pipeline infrastructure.”
The NNPC explained that it resorted to the delivery of crude oil to the refineries by marine vessels following incessant attacks on the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines by vandals and oil thieves resulting in the complete unavailability of the pipelines in 2013.
On the OPA arrangement, the firm said the current agreement was not in the interest of Nigeria and the national oil firm, a development that led to its cancellation.
The firm said, “However, after detailed appraisal of the operation and its terms of agreement, the NNPC is convinced that the current OPA is skewed in favour of the companies such that the value of product delivered is significantly lower than the equivalent crude oil allocated for the programme.”
The NNPC also observed that the structure of the agreement did not guarantee unimpeded supply of petroleum products as delivery terms were not optimal.
To address these lapses, the NNPC informed that it had commenced the process of establishing alternative OPA based on optimum yield pattern with tender processing fees.
It said, “After due appraisal of performance trajectory, we have invited Oando, Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total Trading to bid for the new Offshore Processing Agreement, while we have engaged AITEO, Sahara Energy and Duke Oil to exit the current OPA.”
On the status of the crude for product exchange agreement, otherwise known as SWAP, which was reportedly entered into by the NNPC and some oil traders, the corporation said the last SWAP arrangement lapsed in December, 2014 and was never renewed.
The NNPC also stated that it had obtained the permission of President Muhammadu Buhari to kick-start the tendering process for the 2015/2016 Crude Oil Term Contract for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.
It noted that the process, which would commence with the advertisement of the crude oil term contract in both national and international print media for a period of one month, had been carefully structured to weed out “briefcase companies” and rent seekers.
President Buhari had recently effected some massive managerial restructuring at the corporation after sacking the former Group Managing Director of the firm and replaced him with Dr. Ibe Kachikwu

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Deborah Samuel: Gov Tambuwal relaxes curfew

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Governor Aminu Tambuwal of Sokoto State government has relaxed the 24-hour curfew he imposed on the state capital following violent protest over the arrest of some youths allegedly involved in the killing Deborah Samuel, a 200-level student.

Tambuwal in a statement issued by his Commissioner for Information and Orientation, Isah Bajini, said the revised curfew will now be from dusk to dawn in Sokoto township.

The statement noted that “Sequel to the briefing by the security heads in the State, the State Governor, Rt Hon Aminu Waziri Tambuwal has ordered the relaxation of the 24-hour curfew in force in Sokoto metropolis

“The revised curfew will now be from dusk to dawn in Sokoto township. This is with a view to affording people the window to pursue their legitimate businesses and other means of livelihood.”

Recall that following the lynching of the 200-level student for allegedly insulting Prophet Mohammed, the State’s police command arrested some persons linked to the incident.

However, a large number of Muslim boys who were angered by the arrest, stormed the streets in the State on Saturday, demanding the release of the suspects.

The development, which triggered tension in several parts of the State, made the Governor to impose the curfew.

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Arsonists burn down LG secretariat, Magistrate Court in Anambra

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Suspected arsonists have burnt down Idemili North Local Government secretariat in Ogidi and a Magistrate Court in the area.

Sources said the arsonists entered the premises on Sunday night to perpetuate the act, burning down all files, properties in the secretariat, including the secretariat building.

Videos and pictures circulating online showed that the entire buildings were reduced to rubbles, while vehicles parked inside the Local Government secretariat were also burnt to ashes.

The State Police Command has also confirmed the development, attributing it to unidentified arsonists.

DSP Toochukwu Ikenga, the spokesperson of the State Police Command said: “Yes, the incident was confirmed, and our men were there to restore normalcy.

“Right now, the fire has been put off, and calm has been restored to the area,” Ikenga said.

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National Assembly transmits amended Electoral Act to Buhari

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Senate

The National Assembly has transmitted the amended Electoral Act 2022 to the Presiden Muhammadu Buhari for assent.

The bill was transmitted to the Presidency on Friday.

Sources in the Presidency and the National Assembly confirmed the transmission.

A source in the Presidency, who spoke on the condition of anonymity as he had not been authorised to announce the development officially, said, “Yes, it has been transmitted. But wait till Monday when it may be announced when the President will sign it.”

Another source in the National Assembly said, “It was transmitted on Friday. I needed to confirm it before saying anything.”

It was further learnt that Buhari would sign the amendment ahead of primaries of political parties beginning next week.

The Senate and the House of Representatives had last week passed an amendment to the Act to recognise statutory delegates at primaries, congresses, and conventions of political parties.

The lawmakers particularly amended Section 84(8) of the Act to provide automatic or statutory delegates, ahead of the forthcoming party primaries, from where candidates would emerge for the 2023 general elections.
In March, the National Assembly had passed the bill for the Act while the President signed it into law.

While political parties are close to conducting primaries to elect candidates for the 2023 general elections, the Act did not allow members elected into public offices and executives of the parties, known as statutory delegates, to participate and vote in the conventions, congresses, or meetings of parties.

The chambers had described the omission as “a fundamental error.”

Without the provision by the law, Buhari; the Vice-President, Prof Yemi Osinbajo (SAN); members of the National Assembly, governors and their deputies, members of the State Houses of Assembly, chairmen of local government areas, councillors, executives of political parties, amongst others, would have been disenfranchised.

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