Additional Company Information
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Four New Deputy Directors Appointed for DPR
1st March, 2010
The Honourable Minister of State for Petroleum Resources, Mr. Odein Ajumogobia, SAN, recently approved the appointment of four new Deputy Directors in the Department of Petroleum Resources (DPR). These appointments take effect from January 1, 2010.
The newly appointed Deputy Directors, are; Oliver Chukwu Okparaojiako, Head , Gas Monitoring & Regulation Division; John Olawale Biya, Head, Upstream Monitoring & Regulation Division; Belema Osibodu (Mrs.), Deputy Director, Public Affairs, and Aliyu Halidu, Deputy Director, Services.
The Director of Petroleum Resources, Mr. Billy Agha on behalf of the DPR Management and staff heartily congratulates our new Deputy Directors and wishes them a very successful tenure of office.
Deregulation: Government Removes $1 Million Performance Deposit for Private Refineries
1st March, 2010
In line with the impending deregulation of the downstream sector of the oil and gas industry, the Federal Government has announced the removal of the statutory $1m performance deposit required from investors, for the establishment of private refineries in Nigeria .
This revelation was recently made by the Honourable Minister of State for Petroleum Resources, Mr. Odein Ajumogobia, SAN, who stated that government had realized that the deposit requirement was a disincentive to investors who were willing to establish refineries in the country. The requirement which is contained in the “Guidelines for the establishment of hydrocarbon processing plant (Refinery & Petrochemicals) in Nigeria ”, states that a $1m refundable deposit was to be made by an investor for every 10,000 BPSD refinery capacity to be established.
Mr. Ajumogobia further stated that this move was part of government's strategy to encourage private sector participation in crude oil refining and also her desire to locally refine 50% or more of Nigeria 's crude oil. He however reiterated that all other requirements listed in the guidelines for the establishment of refineries, such as license to establish, approval to construct and other milestones expected to be achieved were still very much in place.
It would be recalled that the DPR revoked earlier licenses issued to investors in 2004 citing lack of credible milestones by the companies, and introduced the 2007 revised guidelines which contained the $1m refundable deposit requirement.
DPR SETS UP CONTROL CENTRES FOR MONITORING / COMPLAINTS
1st March, 2010
In view of the ongoing fuel crisis, and the need to stem sharp practices, the Honourable Minister of State for Petroleum Resources, Mr. Odein Ajumogobia (SAN) has ordered 24 hours surveillance by the Department of Petroleum Resources, to deal decisively with the menace of wayside/street peddling and restricted sale of fuel at Filling Stations to the public, as well as any form of hoarding.
The Director of Petroleum Resources (DPR), Mr. Billy Agha, has thus constituted staff of DPR nationwide into teams with control centres in Lagos , Abuja , Port-Harcourt, Warri, Owerri, Calabar, Kaduna and Maiduguri .
The Director, DPR, appeals to:
• The Major and Independent marketers to cooperate with the government and DPR to ameliorate the problem as they are great stakeholders.
• Dealers at Filling Stations not to sell petroleum products in Jerry-cans and to deploy all available pumps to dispense any available fuel in their Stations.
• The Nigeria Police to kindly assist in arresting and prosecuting any individual selling petrol at the wayside or Street as such premises are not licensed for that purpose.
• In view of the foregoing, the DPR directs:
• That selling of petrol in Jerry-cans at Filling Stations is prohibited.
• That any Station found selling petrol in Jerry-cans, profiteering or taking advantage of the public will be sanctioned.
• That any available petrol in the system should be sold in Filling Stations.
• Kindly contact the following control centres for complaints:-
Lagos
Hotline: Mrs. Belema Osibodu (08058298820)
Mr. Gbenga Koku (08058298857)
Mr. Timothy Ogunsola (08055129955)
Abuja
Mr. Tony Nwaokoagbara (08058298853)
Mr. Alfred Ohiani (08058298823)
Port Harcourt
Mrs. Buchi Sibeudu (08056099183)
Warri
Dr. Henry Oke (08058298824)
Mr. Sanya Bajomo (08024302113)
Owerri
Mr. Noel Idiodi (08058298851)
Calabar
Mr. Frank Umoeka (08058298867 or 08038770222)
Kaduna
Alhaji Mustapha Jahun (08052298860)
Maiduguri
Alhaji Mohammed Usman (08058298865)
Federal Government Renews Efforts to End Deep Offshore Gas Flaring
1st March, 2010
The DPR has met with deep offshore operators and strategies to end gas flaring, were reviewed.
One of the major highlights of the meeting was to remind the operators that their individual Field Development Plans (FDP) were approved on the premise of no routine gas flaring. The breach of this contract necessitated the government to impose a penalty of $3.50 per 1,000 scf.
The erring operators were reminded of the need to pay up or be ready to face stiff sanctions such as the withdrawal of their concession, as stipulated in the Associated Gas Re-injection Act of 1979.
The companies were also reminded of the need to report all increased gas flaring resulting from equipment failure and routine maintenance to the Department within 24 hours as stipulated by the law. Failure to report such incidences within the stipulated period would also attract sanctions.
These efforts by government are geared towards compelling the deep offshore operators to play by the rules. Although it has been a major challenge, government intends to pursue a new course for the Nigerian Oil Industry thereby conserving our natural resource for generations yet unborn.
The Deep offshore operators in attendance at the meeting included, ESSO, NAE, SNEPCO, STARDEEP and TOTAL.
13 th Oil & Gas Industry Games Concluded in Lagos
1st March, 2010
The 13 th edition of the Oil & Gas Industry games, which commenced 13 th February, was brought to a close in a colourful closing ceremony on Saturday 20 th February, 2010 after one week of keen competition between sportsmen & women representing the 10 companies that participated in this edition.
The companies which participated were, DPR, NNPC, Shell, ExxonMobil, Chevron, Total, NAOC, NLNG, Addax and PTI.
This edition was DPR's second participation in the biennial event, and two medals were won; the silver in 8-ball pool, and a bronze medal in table tennis, placing it 9 th in the final classification. Mrs. Gladys Elesha of Technical Services, Headquarters, won the bronze medal in table tennis while Osagie Imasuen also of the Downstream Division, Headquarters won the silver medal in 8-ball pool.
In the overall rating, Shell came first with a medals haul of 12 gold, 15 silver and 6 bronze medals, while NNPC and Mobil came second and third with; 7 gold, 6 silver, 12 bronze and 5 gold, 7 silver and 14 bronze medals, respectively.
Earlier on before the competition proper, an organizing committee under the chairmanship of Peter Odjoji of NNPC had been inaugurated comprising members from DPR, NNPC, PTI, Addax, and NAOC, who worked tirelessly to ensure a successful outing.
DPR Director Reveals Preparedness for Deregulationl
1st March, 2010
Mr. Billy Agha, the DPR Director has informed that the DPR is well prepared for the impending deregulation of the downstream sector of the Oil and Gas Industry, by the Federal Government, when it comes into effect.
He said that DPR had outlined the following measures to assist it in coping with the challenges of a deregulated downstream sector:
• All operators and retail outlets are to be captured in DPR database through the Geographic Positioning System (GPS) by first quarter, 2010
• DPR would take the lead in bulk certification of petroleum products through our well equipped laboratories nationwide
• An acceptable and effective technology for pump seal / lock and automatic volume count mechanism to check sharp practices would be proposed by DPR for the sector
• All existing sanctions and penalties for infringement on provisions of regulations by operators would be appropriately reviewed
• Any retail outlet found hoarding would be sanctioned by auctioning of product and dealer fined twice the amount of product
• DPR website would be upgraded to permit the public post comments on activities of retail outlets
• Nationwide road-shows to enlighten the public on DPR's licensing and permitting requirements for downstream activities
• Finally, DPR will ensure capacity building & provision of adequate material resources
Ag. Director of DPR Addresses Products Supply Concerns
23rd October, 2009
The Acting Director of DPR, Mr. Godwin Billy-Agha recently at a briefing in Lagos appealed to chief executive officers of major & independent marketing companies to complement Government's efforts in ensuring adequate supply of petroleum products, particularly PMS as we approach the year-end festive period to avert shortages and the attendant hardship on Nigerians.
He informed them of Government's preparedness, through the NNPC, to meet this expected increase in demand by placing orders for 66 PMS and 7 DPK cargoes meant for the 3 rd quarter of 2009. In addition, orders were being placed for extra 24 PMS, 21 DPK & AGO cargoes to cover the country's requirements well into 2010.
Furthermore, Mr. Billy-Agha assured the executives of Government's resolve to prime the sector for accelerated growth & increased efficiency by making the deregulation policy a reality very soon. He therefore enjoined them to make effort to improve their receiving & distribution facilities in order to ensure uninterrupted availability of products nationwide.
Petroleum Products Supply to the Nation
23rd October, 2009
A SPEECH BY THE DIRECTOR, DEPARTMENT OF PETROLEUM RESOURCES (DPR) TO CHIEF EXECUTIVE OFFICERS OF MAJOR AND INDEPENDENT MARKETERS COMPANIES ON MONDAY 19 TH OCTOBER, 2009.
Distinguished Guests, Ladies and Gentlemen.
It is with great pleasure that I welcome and thank you for honoring our invitation to this meeting, convened to discuss a number of issues critical to the supply and availability of petroleum products in our country.
As you are aware, we are approaching the end of year, with its usual hype in activities and the attendant elevated quest for consumption of petroleum products. Coupled with this, is the Government aspiration on the deregulation of the Downstream Petroleum Sector.
It is my intention in this address to inform you of Government concerted efforts to ensure the availability of petroleum products during this critical period, and the need to pro-actively identify and check-mate any obstacles that may lead to supply distortion, and successful introduction of the impending deregulation regime.
I have the honour to inform you that the NNPC has graciously informed DPR that they have placed orders for 66 PMS and 7 DPK cargoes meant for Third Quarters (Q3), 2009. In addition, orders were being placed for extra 24 PMS, 21 DPK and 10 AGO cargoes to cover the country's requirements for these products, well into 2010. NNPC has indicated that their coverage of the market is premised on the fact that there may not be supplies coming from third parties, while assuring sufficient and robust supply of the indicated products within this critical period.
If we recall, the local production of petroleum products has generally continued to fall as the refineries are operating under very low capacity utilization. We are happy to note that the NNPC has given assurance to restream the Warri and Kaduna refineries ahead of the 2009 festive periods and year end holidays.
However, laudable as the above proposals may look, we are uncomfortable to observe from our records the sharp decline in the number of applications for permits to import PMS and DPK by the Major and Independent Marketers who hitherto had greatly augmented the efforts of the NNPC. It is our fear that in the event of not being able to flood the markets, as anticipated, during this critical period, the supply chain will be affected which may lead to scarcity, hoarding of products diversion and other associated ills of scarcity, the most notable of which is the reduced trucks load-out from storage depots/facilities; (which was almost the case in the last two weeks whereby scarcity was reported in some parts of the country)
It will interest you to note that the DPR, in anticipation of these issues, has already apprized itself with the expected challenges during this critical period. DPR has taken steps to deploy resources at its disposal to ensure that products distributed to dispensing points are monitored and made available to the public as intended. Part of these efforts is to constructively engage all stakeholders, Independent and Major Marketers, in meetings like this to solicit their understanding and cooperation in ensuring that fuel supply and distribution activities are conscientiously conducted within the provision of the petroleum laws and regulations.
We wish to appeal to all marketers to as a matter of fact to have the interest of the public at heart, and to shy away from actions that are inimical to the successful distribution of petroleum products in the country. The DPR would not hesitate to impose the necessary sanctions on erring marketers found violating the laws.
Also, the DPR wishes to appeal to the general public to not engage in panic buying measures as the NNPC has assured of sufficient and robust supply of products.
Distinguished guests, ladies and gentlemen, we are aware that the dawn of the deregulation of the downstream petroleum sector is already around the corner. Government intention to deregulate the Sector and evolve a structure characterized by absence of monopoly and freedom of several competing marketers to import and export products cannot be overemphasized. Marketers would have the opportunity of direct importation into their installations, depots and Jetties, which would be sold at competitive prices to the public.
The enthronement of the deregulation policy therefore, would bring about remarkable improvement in petroleum products supply and distribution in the country, as the obstacles attributable to the stunted growth of the downstream sector would be removed. Marketers are hereby enjoined to step-up improvement of their receiving and distribution facilities so as to ensure steady availability of products nationwide.
We believe that at the appropriate time, Government policy framework on the deregulation will provide the guidance for implementation.
On our part, however we shall intensify monitoring efforts and implement actions geared towards avoiding products scarcity, diversion, adulteration, smuggling and hoarding during this transition period and beyond into 2010,
The public is hereby assured that the DPR is capable and will not spare any marketer who decides to jeopardize Government aspiration in ensuring products supply to all nooks and cranny of the country.
Thank you for listening
G.U. Billy-Agha, Fnape
Acting Director, DPR
DPR Makes a Case In Support of Bill to Amend Associated Gas Act
July 22th, 2009
The Acting Director of Petroleum Resources, Mr. Godwin Billy-Agha recently made a presentation to the House of Representatives on a Bill for an Act to amend the Associated Gas Re-Injection Act, No. 99 of 1979, CAP A 25 Laws of the Federation of Nigeria.
In the presentation, Billy-Agha proposed the following amendments;
• Temporary Gas Flaring Penalty:- A penalty fee of US$3.50 per 1000 scf should be surcharged for gas flared in excess of approved gas volumes during pre-commissioning & commissioning operations, equipment maintenance & operations upset
• Gas Flaring Fine: - Any operator involved in routine or continuous gas flaring will be liable to pay a fine determined by the international gas market, as this is strictly prohibited
• Posting of Incorrect Gas-Flared Volumes: - A fine of US$100,000 (One hundred thousand Dollars) will be charged any operator who posts incorrect gas-flared volumes. In addition, the company shall pay the international gas market price for the difference in declared volumes
• Enforcement of Government's Right to Take Gas at Flare:- Any operator who impedes a third party authorized by government to take gas at flare from its facility/field will have such facility shut-in
• Reporting of Emergency Gas Flaring: - Emergency gas flaring due to equipment failure problems should be reported by the operator to the Director of Petroleum Resources within 24hrs, failure of which will attract a fine of $500,000 (Five hundred thousand Dollars) or as may be determined by Director of DPR from time to time
• Permit for Temporary Flaring: - Application for permit to flare during pre-commissioning & commissioning operations, equipment maintenance, and operations upsets shall be accompanied with a processing fee of N 100,000 (One hundred thousand Naira)
• Oil Production Without Gas Facilities in Place: - No approval should be granted to any operator to produce oil without associated gas utilization facility in place.
DPR Relocates Abuja Zonal Office
July 22th, 2009
The Abuja zonal office of the Department of Petroleum Resources has relocated to a new premises, 7, Sylvester Ugoh Crescent, Cadastral Zone (behind MR. BIGGS) Jabi, Jabi district, Abuja.
The new office which is a three story building designed to accommodate all staff in a conducive working environment will enable us serve the public better, and enhance DPR's corporate image as a world class regulator.
Acting Director Reviews First Quarter Activities
July 22th, 2009
The Acting Director of Petroleum Resources, Mr. Godwin Billy Agha recently hosted a media parley in Lagos where he reviewed the Department's achievements in the first quarter of 2009.
Speaking at the media forum, Mr. Agha highlighted DPR's activities covering all facets of its operations within the period under review.
In the area of revenue, the acting Director informed that DPR contributed over N 90 Billion to the federation account during the first quarter of this year. He explained that the revenue was generated from royalty payments, gas-flare penalty & concession rentals.
Mr. Agha further informed that about 1001 permits and licenses were issued by the Department within the review period and that the National Data Repository (NDR) within the same period assisted the oil and gas industry with the provision of seismic processing and interpretation for independent assessment of oil and gas blocks.
However, the Department faced challenges in crude oil production, seismic data acquisition, gas production due to the Niger Delta crisis and other operational challenges.
FG Approves New Strategies to End Gas Flarings
July 22th, 2009
The Federal Government has approved new strategies aimed at ending gas flaring in Nigeria . One of the strategies will be for some companies in the sector to mop up the gas from the wells and convert to uses other than flaring, consequently, government has shortlisted sixteen indigenous companies for this programme.
Speaking recently at a media briefing in Lagos , the Acting Director of Petroleum Resources, Mr. Godwin Billy-Agha, made this revelation and added that government was also looking at boosting the nation's revenue base by ensuring that defaulting operators pay a penalty fee of $3.50 per 1000 scf of gas flared.
Mr. Agha explained that these measures will go a long way in complementing DPR's flare reduction achievement of 120.15 bcf down from 197.17 bcf within the year 2008.
The Acting Director further noted that the initiative by government to implement a zero-flare policy for all upcoming offshore oil projects ab-initio will give added impetus to the new strategy.
