DPR Director Reveals Preparedness for Deregulation
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
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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.
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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.
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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)
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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.
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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.
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