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<p>We take you through the heart of Nigeria&#8217;s energy landscape, bringing you NNPC&#8217;s story of resilience, challenges, rewards and milestones in 2023.</p>


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NNPC 2023: A Chronicle of Success

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<p>The Nigerian National Petroleum Corporation says it is engaging the Dangote Group for the possible acquisition of a 20 per cent minority equity stake in the Dangote Refinery. Meanwhile, the Nigerian government says it is expecting the first oil from the marginal fields by Januray 2022. Joining CNBC Africa for more is Oyeyemi Oke, an Oil and Gas Lawyer and a Partner at A02 Law.</p>


NNPC seeks to acquire 20% stake in Dangote Refinery

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<p>Managing Director of Nigeria&#8217;s state-owned oil company, the NNPC says the approved plan to rehabilitate the 210 000 barrel-per-day Port Harcourt Refinery is a worthy undertaking. Kayode Akindele, Partner at TIA Capital joins CNBC Africa for more.</p>


NNPC: $1.5bn Port Harcourt Refinery rehabilitation a worthy undertaking

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<p>Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva says the heavily criticised plan by the government to resume fuel importation from its neighbour Niger Republic, should not be seen as an embarrassment’ but as a means of promoting intra-regional trade. In the same breath, the National Petroleum Corporation (NNPC) says Nigeria would be a net exporter of petrol by 2023. Joining CNBC Africa for more is Oyeyemi Oke, Oil and Gas Lawyer and Partner at A02 and Kayode Akindele, Partner at TIA Capital.</p>


Nigeria’s downstream sector sees renewed activity


<p>LAGOS/LONDON (Reuters) &#8211; Nigeria’s state oil firm NNPC has signed a $1.5 billion prepayment deal led by Standard Chartered and backed by oil traders Vitol Group and Matrix Energy, two sources close to the matter said, the first such agreement since the coronavirus pandemic.</p>



<p>The deal provides OPEC-member Nigeria with much-needed cash after its finances were hit by the oil price crash in April as COVID-19 lockdowns erased nearly one third of global oil demand.</p>



<p>The financing package called Project Eagle was also backed by African Export Import Bank (Afrexim) and United Bank for Africa. Vitol and Matrix will each get 15,000 barrels per day (bpd) of crude as repayment over five years, starting in August. Nigeria’s crude production is nearly 2 million bpd.</p>



<p>Nigerian trader Matrix confirmed its participation in the deal. Vitol, the world’s biggest independent oil trader, declined to comment. A spokesman for Standard Chartered declined to comment. Afrexim did not have an immediate comment.</p>



<p>UBA and NNPC did not immediately respond to requests for comment.</p>



<p>Prepayments with traders are widely used in commodity finance as banks consider them to be one of the more secure forms of lending in countries viewed as risky.</p>



<p>For trading firms such as Vitol, these loans are ideal for securing long-term supplies and boosting razor-thin margins.</p>



<p>NNPC has been trying to raise cash through prepayments with traders for years. However, the firm’s opaque finances and costly gasoline subsidies have made it tough for it to secure private financing on attractive terms. Nigeria announced the end of subsidies earlier this year.</p>



<p>NNPC will use a large portion of the money to pay taxes owed by its subsidiary NPDC, the sources said. The remainder will go towards operational expenses and capital expenditure. One of the sources said money from the pre-payment could fund an upgrade of the Port Harcourt refinery.</p>


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Nigeria in $1.5 bln oil prepay deal with traders Vitol, Matrix

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<p>Lawmakers in Nigeria have directed Committees on Petroleum Downstream, Gas Resources and Petroleum Upstream to investigate the Lagos pipeline explosion and urged the Nigerian government contribute to the emergency relief fund created for residents. This follows initial steps taken by Lagos and Nigeria&#8217;s state-owned oil company NNPC&#8217;s explanation even as residents debate the cause of explosion. CNBC Africa&#8217;s Christy Cole has been following the story.</p>


Nigeria to begin investigation into Lagos explosion

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<p>As residents and Nigeria’s state-owned oil company NNPC contest the cause of Sunday’s explosion, Lagos State Governor, Babajide Sanwo-Olu says the state has set up a fact-finding committee on the incident. CNBC Africa caught up with him at the site of the incident where he shared plans to open an emergency two billion Naira fund, and disclosed that the state may have to adjust its 2020 budget.</p>


Lagos investigates gas plant explosion

Lagos investigates gas plant explosion, may review 2020 budget

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<p>An explosion at a gas processing plant in Lagos has left at least 15 people dead and destroyed about 50 buildings. For more on this story, The Acting Coordinator of the Lagos Territorial Office of National Emergency Management Agency, Ibrahim Farinloye joins CNBC Africa for more.</p>


NNPC: Lagos fire at gas plant likely triggered by gas explosion

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<p>Nigeria’s National Petroleum Corporation (NNPC) says it has discovered oil and gas deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North- Eastern part of the country. To discuss this story and global response to oil dynamics, Abiodun Adesanya, CEO of Dege Conek joins CNBC Africa.</p>


Nigeria discovers oil & gas deposits in Benue


<p>YENAGOA (Reuters) &#8211; A gas pipeline in Nigeria’s Delta state was shut down on Friday following a breach, according to state oil company NNPC and local authorities.</p>



<p>Locals in Otu-Jeremi in Ughelli South area of Delta state reported an explosion on the pipeline, though NNPC said the pipeline was shut down following a leak. Police said they were investigating the situation.</p>



<p>Two local residents said there was an explosion.</p>



<p>“NPDC are saying that it was a rupture and not fire, but my men have gone there to find out,” said Adeyinka Adeleke, a senior police officer in Delta state.</p>



<p>NNPC spokesman Ndu Ughamadu said the company had ordered the pipeline closed following a leak and that repair works would commence soon.</p>



<p>The pipeline flows from Oil Mining License 34, which is owned by Nigeria Petroleum Development Co, a subsidiary of NNPC, and Nigerian company ND Western.</p>



<p>OML 34 produces an average of 390 million standard cubic feet per day of gas, and 17,000 barrels per day of oil and condensates.</p>



<p>Gas processed from the field goes into the Escravos-Lagos Pipeline, which feeds Egbin power plant, the largest in Nigeria.</p>



<p>Reporting by Tife Owolabi in Yenagoa; writing by Libby George; Editing by Leslie Adler</p>


A gas pipeline in Nigeria’s Delta state has been shut down, here’s why

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<p>As the new Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) assumes office today, Ayodele Oni, Chair and Partner of Energy &#038; Natural Resources at Bloomfield Law Practice joins CNBC Africa for more.</p>


Unpacking NNPC’s new agenda as Kyari steps in

<p>Refinery overhaul projects will begin in Nigeria as soon as the second quarter, an official from state oil company NNPC said on Tuesday.</p>
<p><img loading="lazy" decoding="async" class="wp-image-42820 size-full alignleft" src="http://cnbc.africa/wp-content/uploads/2017/02/nnpc_logo.jpg" alt="Nigeria's state oil firm to be split into 30 companies: NNPC head" width="400" height="400" /></p>
<p class="">NNPC is in the final stages of talks with consortiums including top traders, energy majors and oil services companies to revamp its long-neglected oil refineries in an effort to reduce its reliance on imported fuel.</p>
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<p class="">“We believe that by the second quarter of this year we will &#8230;start getting the ball rolling on the refurbishment and rehabilitation exercise and believe this will run to the end of next year,” said Anibor O. Kragha, NNPC’s chief operating officer of refineries and petrochemicals.</p>
<p class="">“We are working with consortia right now, negotiating terms, trying to finalise the time sheets so that we can access the money&#8230; through the end of 2019 when we believe we will have the minimum 90 percent capacity utilization in place,” he told delegates at the African Refiners Association conference in Cape Town.</p>
<p class="">NNPC has three oil refineries with a total capacity of 445,000 barrels per day (bpd), but they struggle to run anywhere near that level due to years of neglect. According to NNPC reports, the highest capacity utilization last year was just under 37 percent, and it fell as low as 5.92 percent in November.</p>
<p class="">The government plans to give Nigeria’s refineries until 2021 to meet lower sulphur fuel requirements that will start phasing in this year for imports.</p>
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<p class="content_27_rw">Reporting By Wendell Roelf, writing by Libby George; editing by John Stonestreet</p>
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Nigeria’s refinery overhaul projects to start in second quarter: NNPC

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<p>The Nigerian National Petroleum Corporation recently announced that the cost of producing a barrel of crude oil from Nigeria’s oil fields has further dropped to 20 dollars and that it is targeting to lower it further to 15 dollars per barrel soon.</p>


NNPC plans to cut crude production cost to $20/barrel

<p>Nigeria’s state oil firm said on Tuesday it had spent $5.8 billion on fuel imports since late 2017, as it combats a fuel shortage that has left people queuing for hours at filling stations and hobbled an already-struggling economy.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-42869 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/oil_picture_wikipedia.jpg" alt="Nigeria's president plans to split state oil company into two entities" width="600" height="350" /></p>
<p class="">“The corporation’s intervention became necessary following the inability of the major and independent marketers to import the product because of the high landing cost which made cost recovery and profitability difficult,” the Nigerian National Petroleum Corporation (NNPC) said in a statement.</p>
<p class="">The price of gasoline is a highly charged subject in Nigeria, Africa’s largest oil exporter. President Muhammadu Buhari in 2016 raised the top gasoline price to 145 naira ($0.4603) per litre, a 67 percent hike, but did not remove a cap for fear of hurting people on low incomes.</p>
<p class="">The price cap makes it tough for many importers to profit from gasoline and NNPC has imported as much as 90 percent of the nation’s gasoline needs over the past year. Fuel shortages have gripped much of the country in the last few months.</p>
<p class="">An economic body that advises Nigeria’s government has been in discussion with the state oil company to determine whether gasoline is appropriately priced in the country, a state governor said last week.</p>
<p class="">The relatively cheaper cost of Nigerian fuel combined with crude oil price rises in the last few months mean smugglers can make more money selling fuel intended for the Nigerian market across borders, creating shortages in the West African giant.</p>
<p class="">Nigeria’s refining system means it is almost wholly reliant on imports for the 40 million litres per day of gasoline it consumes.</p>
<p class="">Efforts by Buhari’s predecessor, Goodluck Jonathan, to end expensive subsidies in 2012 led to riots in the streets because the move would have doubled gasoline prices, angering citizens who see cheap pump prices as the only benefit from living in an oil-rich country.</p>
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<p class="Attribution_content_27_rw">Reporting by Paul Carsten, editing by David Evans</p>
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Nigerian state oil firm spent $5.8BN on fuel imports since late 2017

<p>An economic body that advises Nigeria’s government is in discussion with the state oil company to determine whether gasoline is appropriately priced in the country, a state governor said on Thursday.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-287234 size-full" src="http://cnbc.africa/wp-content/uploads/2017/10/Nigeria-Flags-Shutterstock.jpg" alt="" width="730" height="480" /></p>
<p class="">The price of gasoline is a highly charged subject in Nigeria, Africa’s largest oil exporter. President Muhammadu Buhari in 2016 raised the top gasoline price to 145 naira ($0.4603) per litre, a 67 percent hike, but did not remove a cap for fear of hurting people with a low income.</p>
<p class="">The price cap makes it tough for many importers to profit from gasoline and NNPC has imported as much as 90 percent of the nation’s gasoline needs over the past year. Fuel shortages have gripped much of the country in the last few months.</p>
<p class="">A committee of the National Economic Council (NEC), which advises the government, has been in talks with officials at the Nigerian National Petroleum Corporation (NNPC) “with a view to determining the correct price for PMS [petrol]”, said Mohammed Abubakar, governor of the northern state of Bauchi.</p>
<p class="">He said the NEC committee and NNPC would look at gasoline prices while considering the price of fuel in neighbouring countries because price differences encourage smuggling out of Nigeria.</p>
<p class="">The relatively cheaper cost of Nigerian fuel combined with crude oil price rises in the last few months mean smugglers can make more money selling fuel intended for the Nigerian market across borders, creating shortages in the West African giant.</p>
<p class="">Nigeria’s refining system means it is almost wholly reliant on imports for the 40 million litres per day of gasoline it consumes.</p>
<p class="">Efforts by Buhari’s predecessor, Goodluck Jonathan, to end expensive subsidies in 2012 led to riots in the streets because the move would have doubled gasoline prices, angering citizens who see cheap pump prices as the only benefit from living in an oil-rich country.</p>
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<p class="Attribution_content_27_rw">Reporting by Felix Onuah; Writing by Alexis Akwagyiram, editing by David Evans</p>
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Nigerian economic body and state oil firm discuss gasoline price change

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<p>Deremi Atanda, Executive Director of SystemSpecs joins CNBC Africa to assess the compliance level to the government&#8217;s Treasury Single Account policy.</p>


Treasury-Single-Account in Nigeria: The key issues you need to know

<p data-reactid="35">Nigerian energy company NNPC is relying heavily on swapping its crude for products such as gasoline as its refineries struggle to run, but an official at the state firm said its access to oil is limited.</p>
<p data-reactid="43">While other importers also supply the nation with fuel, Nigeria caps its gasoline prices, preventing private importers from bringing the product in when international prices exceed local ones. The swap program has accounted for as much as 90 percent of gasoline imports, industry sources told Reuters.</p>
<p>“The entire NNPC organization is focused on ensuring that there are no queues and that the country stays wet,” said Henry Ikem-Obih, group executive director and chief operating officer for downstream operations with NNPC. He added it was “the key objective, all the way from the president to the minister”.</p>
<p data-reactid="46">But only the Port Harcourt refinery is currently running. The Warri refinery is expected to come back from maintenance within a few weeks, but the Kaduna plant will be down for “a few more months”, Ikem-Obih said.</p>
<p data-reactid="47">Ikem-Obih said the so-called direct sale, direct purchase deals that enable NNPC to exchange crude for imported fuels were keeping the country running, but that it was a “very painful task”, made more difficult by limited access to oil.</p>
<p data-reactid="48">“The challenge you always have of course is that crude is not limitless,” he said at the OTL Expo in Lagos. “There are times when we actually run out of crude.”</p>
<p data-reactid="49">He said the oil swap contract holders had been “very supportive”, at times agreeing to pre-deliver oil products and get their payment in crude later. But he said NNPC was working to alleviate that issue.</p>
<p data-reactid="50">“The task for the organization is to go and look for more crude &#8230; whatever crude we can find.”</p>
<p data-reactid="51">Ikem-Obih said NNPC was working to find private capital to help revamp its refineries and fix its pipelines and depot system to help it produce more fuel. He said only about 75 percent of its 5,120-km pipeline network was operational, but much of it was undergoing repairs.</p>
<p>Among these are efforts to place pipelines roughly 50 meters underground to make them less susceptible to theft and vandalism.</p>
<p>“We’re lean on capital, which is why we’re hoping that the private-sector people come and partner with us,” he said, adding: “A lot of work is going on.”</p>
<div class="Attribution_attribution_o4ojT" data-reactid="53">
<p class="Attribution_content_27_rw" data-reactid="54">Reporting by Libby George; Editing by Dale Hudson</p>
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NNPC

NNPC 2023: A Chronicle of Success

NNPC seeks to acquire 20% stake in Dangote Refinery

NNPC: $1.5bn Port Harcourt Refinery rehabilitation a worthy undertaking

Nigeria’s downstream sector sees renewed activity

Nigeria in $1.5 bln oil prepay deal with traders Vitol, Matrix

Nigeria to begin investigation into Lagos explosion

Lagos investigates gas plant explosion, may review 2020 budget

NNPC: Lagos fire at gas plant likely triggered by gas explosion

Nigeria discovers oil & gas deposits in Benue

A gas pipeline in Nigeria’s Delta state has been shut down, here’s why

Unpacking NNPC’s new agenda as Kyari steps in

Nigeria’s refinery overhaul projects to start in second quarter: NNPC

NNPC plans to cut crude production cost to $20/barrel

Nigerian state oil firm spent $5.8BN on fuel imports since late 2017

Nigerian economic body and state oil firm discuss gasoline price change

Treasury-Single-Account in Nigeria: The key issues you need to know

Nigeria’s NNPC says oil access is ‘not limitless’ for fuel swaps

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NNPC

NNPC 2023: A Chronicle of Success

NNPC seeks to acquire 20% stake in Dangote Refinery

NNPC: $1.5bn Port Harcourt Refinery rehabilitation a worthy undertaking

Nigeria’s downstream sector sees renewed activity

Nigeria in $1.5 bln oil prepay deal with traders Vitol, Matrix

Nigeria to begin investigation into Lagos explosion

Lagos investigates gas plant explosion, may review 2020 budget

NNPC: Lagos fire at gas plant likely triggered by gas explosion

Nigeria discovers oil & gas deposits in Benue

A gas pipeline in Nigeria’s Delta state has been shut down, here’s why

Unpacking NNPC’s new agenda as Kyari steps in

Nigeria’s refinery overhaul projects to start in second quarter: NNPC

NNPC plans to cut crude production cost to $20/barrel

Nigerian state oil firm spent $5.8BN on fuel imports since late 2017

Nigerian economic body and state oil firm discuss gasoline price change

Treasury-Single-Account in Nigeria: The key issues you need to know

Nigeria’s NNPC says oil access is ‘not limitless’ for fuel swaps

News Tips

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