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BIG STORY

FG Reaches Agreement With Oil Producers On Supply Of Crude Oil To Local Refineries

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The federal government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), has struck a deal with oil producers to sell crude oil to local refiners at market prices, resolving a longstanding supply dispute that had strained relationships with international oil companies.

NUPRC CEO Gbenga Komolafe stressed that pricing issues should no longer hinder domestic refining, paving the way for a more harmonious and market-driven approach to crude oil sales.

“We will never allow price strangulation to disincentivise our domestic refining capacity optimisation,” said  Komolafe.

Komolafe highlighted the commission’s commitment to preventing “crude supply profiteering” while ensuring that oil production remains profitable.

To ensure transparency, the NUPRC has requested monthly cargo price quotes on crude oil supply and delivery from both producers and refiners.

The NUPRC aims to balance upstream development with a sustainable domestic energy supply chain, reinforcing its role in fostering a fair and profitable oil production environment.

Recall that earlier in the year, the NUPRC directed local and international oil companies to prioritise the supply of crude oil to local refineries. The regulator further set a target of 483,000 barrels to local refineries with the Dangote refinery expected to receive 325,000 barrels daily.

Additional refineries expected to benefit from the crude oil supply include the Warri and Port Harcourt refineries, which are slated to receive 75,000 and 54,000 barrels of crude oil per day, respectively. Meanwhile, smaller refineries such as Waltersmith, OPAC, and Niger Delta Petroleum Refinery, among others, are set to receive 10,000 barrels per day or less.

Later in April, the NUPRC mandated all oil companies in Nigeria to supply crude oil to domestic refineries that are unable to source it locally. Only after meeting these domestic supply obligations are producers allowed to export crude oil. The Petroleum Industry Act (PIA) mandates that international oil companies must first meet local demand by supplying crude oil to domestic refineries before exporting any surplus.

However, last month, Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited (DIL), accused International Oil Companies (IOCs) in Nigeria of deliberately attempting to undermine the Dangote Oil Refinery and Petrochemicals.

Edwin asserted that the IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates. This forces the refinery to import crude from distant countries such as the United States, resulting in significantly higher costs.

Nigerians expected the 650,000 barrels Dangote refinery to significantly or end the country’s petrol import dependence in the era of post-subsidy removal.

BIG STORY

Port Harcourt Refinery: Low-Key Operation Begins, Marketers Oppose N1,030 Per Litre

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The Port Harcourt Refining Company has clarified that its operations were not entirely halted but temporarily scaled down to allow for improvements at the facility.

The company made this clarification on Sunday after the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated it would not purchase fuel from the Port Harcourt refinery if the Nigerian National Petroleum Company Limited (NNPCL) sold the product at an inflated price.

Oil retailers had alleged that NNPCL was selling petrol from the refinery at N1,030 per litre, about N60 higher than the price of fuel produced by the Dangote Petroleum Refinery. While NNPCL denied this claim, it did not provide the actual price of petrol produced at the recently rehabilitated Port Harcourt refinery.

During a guided tour of the refinery, led by the Managing Director, Ibrahim Onoja, the Executive Director of Operations at Nigerian Pipeline and Storage Company Limited, Moyi Maidunama, confirmed that the plant was operational.

Maidunama told journalists that there was a temporary hitch in operations, but explained that the reduction in operations was necessary to address technical issues and enhance capacity.

He said, “So, the operations were not halted. It was obviously reduced due to some improvements that we needed to make. We are managing the process with the number of trucks available today, using a few loading arms for evacuation. This should be resolved soon.”

He assured all that product distribution was ongoing, with several trucks loading refined products, and added that the process would continue uninterrupted.

The Terminal Manager, Port Harcourt Depot, Worlu Joel, confirmed that the facility had commenced the distribution of products, including Premium Motor Spirit, kerosene, and diesel.

He, however, expressed concerns over the low turnout of tanker drivers.

He said, “We have surplus products available and operational loading arms, but we’ve had to beg tanker drivers to come and evacuate products. We’ve loaded more than ten trucks already and expect to dispatch at least 15 before the day ends.”

Joel noted that the depot operates with 11 functional loading bays, but only three are currently in use due to their high efficiency. Each bay, he explained, can load three trucks in just 15 minutes.

“If you give us 100 trucks today, we can evacuate them in less than five hours,” he assured.

Highlighting the strides made at the refinery, the Managing Director, Ibrahim Onoja, said the plant had undergone extensive upgrades to improve efficiency and reliability.

“The plant is running, and we are trucking out our products. We’ve carried out a massive revamp, replacing most of the equipment, including pumps, instrumentation, and cables. What we’ve done here is a significant upgrade of the facility,” Onoja stated.

The PHRC team reiterated its commitment to maintaining consistent product distribution while ensuring that ongoing improvements enhance the refinery’s overall operations.

  • IPMAN Reacts

The Independent Petroleum Marketers Association of Nigeria said it would not buy from the Port Harcourt refinery if NNPCL sells the fuel at an expensive rate.

IPMAN said it was not expecting the Port Harcourt refinery’s petrol to be more expensive than that of the Dangote refinery or to be at par with the imported one.

The spokesperson of the association, Chinedu Ukadike, while speaking in an interview with our correspondent on Saturday, said fuel from the Port Harcourt refinery should be more affordable.

Ukadike was reacting to claims by the Petroleum Products Retail Outlet Owners Association of Nigeria that the NNPC would sell its PMS at N1,030 per litre.

He said the price was not acceptable to independent marketers so they would have to stay with another petrol source.

“If the Port Harcourt refinery’s PMs price is truly N1,030, it is unacceptable to us independent marketers. We will not buy from them. We will buy where it is cheap,” he said.

Ukadike, however, expressed hope that NNPC would review the price.

They promised to review the price. We will wait till then, but now we will buy from where it is cheaper,” he stated.

Recall that the NNPC has said it has not started selling PMS from the Port Harcourt refinery to outsiders, its products are exclusively for its retail stores at this stage.

NNPC spokesperson, Olufemi Soneye, said the price would be reviewed based on operational realities.

“Our pricing is reviewed and adjusted periodically as necessary to reflect operational realities,” he stated.

  • CORAN Comments

The Crude Oil Refineries Owners Association of Nigeria said the blended PMS from the refinery should be cheaper than the one produced directly.

CORAN National Publicity Secretary, Eche Idoko, said “It should be very cheap.”

Giving insights into the blending of petroleum products, Idoko explained that naphtha is a flammable liquid hydrocarbon mixture used as a feedstock for producing petrol, diesel, and other petroleum products. In contrast, Cracked C5 is used to break down heavier hydrocarbons into lighter ones.

He said the NNPC’s decision to blend naphtha with cracked C5 to produce petrol is likely aimed at increasing petrol production, improving petrol quality or reducing production costs.

“Blending naphtha with cracked C5 might be more cost-effective than using other feedstocks or production methods,” he stated.

However, he said some concerns have been raised about blending, including environmental impact due to the blending process releasing harmful emissions or pollutants.

He also added that the blended petrol might not meet international standards, potentially affecting vehicle performance, emissions, and safety.

He warned that if the naphtha as well as other feedstocks needed for the blending is imported, the exercise might not be sustainable in the long term.

“It’s essential to note that the NNPC’s decision to blend naphtha with cracked C5 is likely driven by various factors, including economic, logistical, and technical considerations,” Idoko explained.

  • N860 Per Litre

An Energy Consultant, Henry Adigun, said the PMS from the Port Harcourt refinery should be around N860 to N870 because it was blended.

Adigun said the Port Harcourt refinery is not a blending plant, but the facility is yet to attain the level where it would produce petrol directly without any need to blend.

According to him, straight-run gasoline has higher sulphur content and it must be blended to get the required standard.

“The straight-run gasoline only means gasoline with higher sulphur content. It is not illegal to blend. They blend everywhere in the world, just ensure everything is normal,” Adigun said.

Asked if the facility is more or less a blending plant rather than a refinery, he replied in the negative.

“It is not a blending plant. It’s a refinery. A refinery can also be a blending plant,” he said.

Speaking on why the refinery could not produce standard petrol that would not require any blending component, the expert explained, “They have not got to that point. Where they are now is not the stage where they can produce petrol directly. There are different refinery stages. That is the stage they are now.

“The blended product will be (more) cheaper. It should be between N860 and N870,“ Adigun disclosed.

 

Credit: The Punch

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BIG STORY

59-Yr-Old Brazil-Based Business Man Arrested For Allegedly Smuggling 700 Grams Of Cocaine 

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A 59-year-old Nigerian businessman, Sylva Ezeokoli, has been arrested by operatives of the National Drug Law Enforcement Agency for allegedly smuggling 700 grams of cocaine concealed in his stomach.

The arrest occurred on Friday at the E-Arrival hall of the Murtala Muhammed International Airport, Ikeja, Lagos.

Ezeokoli, who had spent 35 years in Brazil, was returning to Nigeria aboard an Ethiopian Airlines flight from São Paulo via Addis Ababa.

The NDLEA spokesperson, Femi Babafemi, in a statement on Sunday, said a body scan conducted by its officials revealed foreign objects in his stomach, which were later confirmed to be cocaine.

“As a result, he was placed under excretion observation, during which he expelled 29 wraps of substances that tested positive for cocaine, weighing 700 grams,” Babafemi added.

He said the suspect claimed that he wanted to sell the drugs in Nigeria to boost his business.

Babafemi stated, “In his statement, the suspect claimed he operates an African store in Brazil where he sells provisions, shoes, and clothes. He added that he bought the illicit consignment in São Paulo to resell in Nigeria to raise substantial capital to boost his business.”

The NDLEA spokesperson also mentioned that two consignments containing cocaine and pentazocine injection, destined for the United Kingdom via a courier company in Lagos, were intercepted on November 26.

He said, “Meanwhile, the NDLEA officers of the Directorate of Investigation and General Investigation, on Tuesday, November 26, intercepted two consignments containing cocaine and pentazocine injection going to the United Kingdom via a courier company in Lagos. While the cocaine weighing 200 grams was concealed in local fabrics, 40 ampoules of pentazocine injection weighing 110 grams were hidden in cartons.”

In Kano State, Babafemi reported that the NDLEA operatives on November 28 arrested three suspects: Jamilu Adamu, 38; Umar Musa, 32; and Bunu Ali, 27, with 2,000 ampoules of pentazocine injection and 3,135,000 Exol-5 pills at Gadar Tamburawa, Zaria Road.

Additionally, he stated that a strong strain of cannabis produced in Ghana was recovered at Ilesan Beach in Lagos.

Babafemi said, “No fewer than two 120 kilograms of Ghanaian Loud, a strong strain of cannabis produced in Ghana, were intercepted by the NDLEA operatives at Ilesan Beach, Lagos, on Thursday, November 28. A suspect, Onibogi Muftau, was arrested in connection with the seizure, while four vehicles that were to convey the shipments from the waterfront were also recovered.”

“This came on the heels of the seizure of 472kg of the same psychoactive substance at Idi-Iroko, Imeko area of Ogun State on Monday, November 25.”

Babafemi further disclosed that in Edo State, the NDLEA operatives conducted an intelligence-led raid on Ukuwague Street, Benin City, on Thursday, November 28, resulting in the arrest of two suspects, 60-year-old Monday Onyenemue and 42-year-old Evans Omogiede.

He added that during the operation, officers recovered 185.6 kilograms of cannabis and a Toyota Previa bus with registration number BEN 06XL used to transport the illicit substance.

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BIG STORY

Ogun Man In Police Net For Raping, Attacking Neighbour With Grinding Stone

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Michael Akinmolayan has been arrested for allegedly raping a female neighbour in the Sango-Ota area of Ogun State.

It was gathered that during the incident on Thursday, Akinmolayan allegedly struck the survivor on the crown of her head with a grinding stone, causing severe injuries.

The Ogun State Police Command confirmed the incident on Saturday, stating that officers from the Sango-Ota Division swiftly responded to the scene after receiving a report and took Akinmolayan into custody.

It was gathered that the survivor was immediately rushed to the hospital for medical attention.

The state command’s spokesperson Omolola Odutola explained, “On November 28, the survivor’s brother, Ogundimu, who resides in Mushin, Lagos State, reported the crime. He was informed by neighbours in Sango-Ota that his sister had been seriously injured by Akinmolayan.

“The suspect inflicted head injuries during the assault. Detectives visited the scene, took photographs, and transported the survivor to Banuso Clinic, Ota, for medical treatment.

“Evidence, including blood-stained clothing and the grinding stone allegedly used in the attack, was recovered. A preliminary investigation is underway.”

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