The Nigerian National Petroleum Corporation announced on Thursday that 132 firms had submitted bids for the 2019 crude oil-for-product swap programme, called the direct sale of crude oil and direct purchase of petroleum products scheme.
Under the DSDP scheme, selected overseas refiners, trading companies and indigenous companies are allocated crude supplies in exchange for the delivery of an equal value of petrol and other refined products to the NNPC.
The corporation said it had saved $2.2bn through the scheme since its inception.
It also announced the inauguration of the Asa North/Ohaji South Gas Processing Company, a partnership between the NNPC and Seplat Petroleum Development, adding that the company would deliver 300 million standard cubic feet of gas per day to the domestic market.
In his address at the bid opening ceremony for the 2019 DSDP in Abuja, the Group Managing Director, NNPC, Dr Maikanti Baru, noted that the initiative was introduced in 2016.
Baru said, “The third public bid opening ceremony for the DSDP tenders is fully in line and in demonstration of President Muhammadu Buhari’s transparency and anti-corruption initiatives, which the NNPC has imbibed and championed relentlessly.
“The DSDP scheme was introduced in 2016 with efficient and cost-effective systems and processes to plug the value-eroding loopholes of the January 2015 OPA (Offshore Processing Agreement) contracts.”
He added that from the inception of the scheme in April 2016 to March 2019, 29.5 million metric tonnes (39.6 billion litres) of petroleum products had been supplied, representing over 90 per cent of the national requirement.
“The scheme prides itself with a competitive pricing framework lower than the PPPRA (Petroleum Products Pricing Regulatory Agency) benchmark, which over the years has ensured a significant reduction in product demurrage cost in the range of 84 per cent and cost savings of about $2.2bn,” Baru added.
On the gas processing company, the NNPC stated that the project, which it described as an integral part of its seven critical gas development project, was designed to bridge the estimated 3.4 billion scfd shortfall that could arise.
According to the corporation, gas demand is expected to increase to about 7bcf/d by 2020.
Baru urged board members of the company to sustain the momentum and ensure timely delivery of the project not just within budget but below the budget, without compromising the industry best practices of zero incidences.
He said, “We believe that a private sector driven project should deliver much faster, hence we came up with a structure outside the existing joint venture with the intent of getting the appropriate entities to participate in the project.’’
The NNPC boss emphasised that the corporation was fully committed to the initiative and would do everything possible to keep the dream alive and ensure smooth delivery of the project.
Price of Cooking Gas Hits N7,000 As NLNG Rues Poor Facilities
The management of the Nigeria LNG Limited has said that marketers do not have enough infrastructure to take up its Liquefied Petroleum Gas supply.
In an earlier PUNCH report, the Independent Petroleum Marketers Association had said that the major cause of the rising cost of cooking gas was lack of adequate supply.
The marketers claimed that foreign investors underestimated demand in the Nigerian market resulting in marketers venturing into importation of the product.
They advocated that the government should let NLNG supply more gas to the market to reduce the costs.
Reports from consumers revealed that the cost of refilling a 12.5-kilogramme cylinder of LPG had risen to as high as N7000 in some states.
The marketers had also urged the government to remove cooking gas from the list of commodities subject to the payment of value added tax.
The marketing manager of NLNG, Austin Ogbogbo, in a response to the claim made by the IPMAN said that the marketers did not have enough infrastructure to take up the gas the company supplied.
He said, “NLNG has grown its capacity from 50,000 metric tonnes per annum to 450,000 metric tonnes per annum of LPG in the past 14 years.
“Nigeria needs 1.2 million metric tonnes per annum, but even the 450,000 we produce cannot be absorbed by the market’s current infrastructure.
“We only operate in the midstream sub sector of the industry so we are only responsible for supplying to the market.
“The downstream players are responsible for the distribution to the end users, and also building the infrastructure to ensure it is done efficiently. It is out of our scope.”
He assured the public that the company would grow its LPG capacity if it confirmed that distributors could take up additional supply.
FirstBank Expands International Money Transfer Network, Reinforces Commitment to Customer Service
In furtherance of the need to expand diaspora remittance inflow into the country, First Bank of Nigeria Limited has increased its network of International Money Transfer Operators (IMTOs), targeted at easing the accessibility of its customers to receive money from close to 100 countries across the world in a safe and secured manner. With over 750 branches across the country, customers can receive money from the nearest FirstBank branch closest to them.
Over the years, FirstBank has been in partnership with Western Union, MoneyGram, Ria, Transfast, and WorldRemit. The bank is also in partnership with other IMTOs which include Wari, Smallworld, Sendwave, Flutherwave, Funtech, Thunes and Venture Garden Group to promote remittance inflow into the country, thereby putting Nigerians and residents at an advantage in receiving money from their families, friends and loved ones across the world.
Beneficiaries can receive remittance in US dollars in any of our over 750 branches spread across the country. Customers without an existing domiciliary account can have dollar account automatically created for their remittances. You can also receive inflow directly into your account through Western Union.
In addition, FirstBank has launched its wholly owned remittance platform named First Global Transfer product to promote the international transfer of funds across its subsidiaries in sub-Saharan Africa. These subsidiaries include FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.
Reiterating the Bank’s resolve in promoting diaspora remittances, regardless of where one is across the globe, the Deputy Managing Director, Mr Gbenga Shobo said “at FirstBank, expanding our network of International Money Transfer Operators is in recognition of the significant roles diaspora remittances play in driving economic growth such as helping recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses and debt servicing.
We are excited about these partnerships, as it is essential to ensure our customers are at an advantage to receive money from their loved ones and business associates, anywhere they are, across the world.”
FirstBank pioneered international funds transfer and remittances over 25 years ago and has been at the forefront of promoting cross border payments in the country, having started the journey with Western Union Money Transfer. The Bank’s wealth of experience and operation in over 750 locations nationwide gives it the edge in the market.
Unity Bank Collaborate to Fund N15.5bn Equipment for Julius Berger
Unity Bank Plc, in company of other banks has facilitated a credit facility of N15.5bn for the acquisition of trucks and equipment to Julius Berger Plc.
The group Managing Director and Chief Executive Officer of SCOA Nigeria Plc, Dr Massad Boulos, has appreciated the gesture.
A statement from SCOA said that SCOA presented 33 MAN platform trucks and equipment to Julius Berger to be deployed for the construction of the 380 kilometre Abuja-Kaduna-Kano roads.
The banks that funded the acquisition were Unity Bank Plc, Heritage Bank Limited, Zenith Bank Plc, Providus Bank Limited, Wema Bank Plc, United Bank for Africa Plc, Union Bank Plc and Coronation Merchant Bank Limited.
Boulos said, “I commend Unity Bank, their MD and the members of the executive management; and the entire team of banks who have worked closely with us on this project.”
Mr Ralph Brendicke, the representative of the MD of Julius Berger Nigeria Plc, Dr Lars Richter, said the trucks and other equipment would help the company expand its field capacity and increase the speed of execution leading to timely completion of the highly anticipated project.
The MD/CEO of Unity Bank Plc, Mrs Tomi Somefun, represented by the Directorate Head, Lagos and South West Zone, Mr Wale Ogunride, was quoted as saying, “We looked at the strategic importance of this project and how such infrastructure could contribute to stimulating economic activity and decided that Unity Bank must play its part.
“Unity Bank will continue to provide support to such projects as we have been doing in other critical sectors of the economy such as agriculture.”
In a separate statement, the Executive Director of Wema Bank, Mr Oluwole Ajimisinmi, was quoted as saying that his bank was delighted to be one of the institutions to support SCOA in the project.
He also encouraged and solicited for more local content in order to create more jobs.