Tag: DPR

The Department of Petroleum Resources (DPR) in Nasarawa State has sealed 7 filling stations for various offences from January to date.

Alhaji Ahmed Gwaram, the state DPR Comptroller, disclosed this in Lafia on Tuesday.

Gwaram said that the offences committed were under-delivery, diversion of product, lack of safety and related offences.

According to him, the affected filling stations included two unlicensed filling stations in Awe Local Government Area, while the rest were from other parts of the state.

He said that the affected stations were fined but were unsealed after the payment of the fines to the Federal Government.

The comptroller said that the erring stations were punished for breaching the laws guiding their operations, warning that DPR would not compromise the set standard for filling stations’ operation.

He said that surveillance teams were deployed to monitor proper fuel dispensing according to the regulated price.

He cautioned marketers against flouting government regulations, and urged them to ensure proper dispensing at regulated price approved by the federal government.

Gwaram also admonished motorists to steer clear of illegal filling stations, and should always patronise those selling unadulterated petroleum products.

“If there is fuel at the filling stations, why do you have to patronise black markets whose products may have been adulterated,” he said.

“If you buy fuel from a filling station and your car develops any fault from it, you can report the problem to that filling station, but you cannot do that if you buy fuel from the roadside unregistered market,” he said.

The Department of Petroleum Resources (DPR) has given a three months window for owners of petroleum products retailing outlets in Lagos Zone to renew and regularise their operating licences.

Mr Ayorinde Cardoso, Zonal Operations Controller, DPR, Lagos, confirmed the development to the News Agency of Nigeria on Wednesday in Lagos.

Recently, DPR taskforce team had during a surveillance exercise shutdown a total of 140 filling stations and 27 gas plants for operating without valid licences.

However, Cardoso said the DPR decided to permit the owners of the petroleum products retail outlets to reopen for business following interventions by industry stakeholders.

He said the regulatory agency had met with the representatives of the Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) over the issue.

“The affected operators have been given a three months window for the renewal/regularisation of their operating licences within the zone.

“This is in line with the department’s drive of being business enabler and opportunity house,” Cardoso said.

He added that the DPR would continue to ensure safety in selling and distribution of petroleum products to reduce incidents of explosion in the state.

The DPR taskforce teams had during the two-day exercise visited a total of 380 facilities and had sealed 140 of filling stations and 27 gas plants for operating without valid licences.

The Department of Petroleum Resources( DPR) has listed five ways to fortify the Nigerian oil and gas sector for economic stability and growth.

The Director and Chief Executive Officer of DPR, Mr Sarki Auwalu, made the suggestion while presenting a keynote address at the 20th Nigeria oil and gas conference, in Abuja on Tuesday.

The theme of the conference is: “Fortifying the Nigeria oil and gas sector for Economic Stability.”

Auwalu said the DPR would remain committed to the development of oil and gas sector for economic growth and development.

“For us in the DPR, we contemplate five broad areas in which the industry needs to support the nation for economic growth and stability.

” The areas are legal, institutional, financial, in-sector diversification and indigenous capacity.

“And I have to say that with the focused leadership of President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, the key fundamental issues on growth are being addressed, “he said.

According to him, under the legal front, the long-awaited Petroleum Industry Bill (PIB) that has been passed will enhance clarity in legislative, regulatory, fiscal and administrative frameworks.

He said that evolving commercial institutions would be strengthened for efficiency, prudent management, financial stewardship and operational management.

“At the same vein, the regulatory institutions should be strengthened to streamline roles, prevent duplication and promote ambition that will promote regulatory clarity in rules of doing business.

“The overall industry financial provision must be improved for sustainability to protect the oil and gas production level, “he said.

Auwalu noted that millions of dollars were required for investment in infrastructure in the deep offshore, inland basin, frontier basins, marginal field development and gas infrastructure, among others.

He added that investments in the NLNG train 7, AKK gas pipeline project, among others were an indication of an improved business model in the country.

He noted that a stable and legal fiscal operation was critical for improved investment in businesses in Nigeria.

” We have confidence that with the passage of the PIB, existing operators and second generation International Oil Companies will have the reason to consolidate their business in the country.

“In a related sense, the concept of in sector diversification must take on to add impetus to economic stability and growth,” Auwalu added.

He noted that economic diversification entails many things adding that the industry must look inwards to drive value for growth and stability.

Commenting on gas, he said that Nigeria must work hard to ensure it witnessed all the benefits of huge gas deposit in the country.

” We need to benchmark our country with the other Organisation of the Petroleum Exporting Countries, espcially with their contributions to the Gross Domestic Product. We know that most of them are far in their contributions than us.

“Gas is everywhere and using it as a transition fuel, we must use it to add value, create wealth and build
indigenous capacity, “he said.

The Department of Petroleum Resources (DPR) says request for daily stock of products supplied is a statutory regulatory requirement for any retail outlet license holder at no cost to marketers.

The Department disclosed this in a statement signed by Head of Public Affairs, Mr Paul Osu, in Abuja, on Sunday.

It said the request enables DPR to provide accurate petroleum products consumption data for the country.

“Our attention has been drawn to a misunderstanding over the request for daily stock records by the Department of Petroleum Resources, DPR.

“This development follows an online publication on allegations of extortion against the DPR by the Independent Marketers Association of Nigeria, IPMAN, Suleja/Abuja branch on the stock request.

“We want to state for the records that request for daily stock of products supplied is a statutory regulatory requirement for any retail outlet license holder, which enables DPR to provide accurate petroleum products consumption data for the country.

“This regulatory oversight is at no cost to the retail outlets,’’ he said

He said that the provision of the daily stock report, which was also applicable to petroleum products depots also enabled DPR to provide investment guide to investors in line with its role as a buisness enabler and opportunity house for the oil and gas industry.

“The Department wishes to inform all marketers that all applications and applicable statutory fees for retail outlet operations have been migrated online- www.dpr.gov.ng in furtherance of the federal government’s ease of doing buisness policy.

“The Department charges all marketers to report any noticeable infraction or perceived illegality by our officers, as we will continue to engage all our stakeholders in ensuring energy security for Nigerians,’’ he said.

Mr Sarki Auwalu, director, Department of Petroleum Resources (DPR) has urged Africa to rise to the challenge of harnessing its oil and gas reserves for the development of the continent.

Auwalu spoke on Wednesday at the opening ceremony of the 5th Edition of the Sub-Saharan African International Petroleum Exhibition and Conference organised by the Petroleum Technology Association of Nigeria (PETAN).

The three-day virtual conference has as its theme: “Post COVID-19: From Global Crises to Global Opportunities.”

He said: “Indeed, for a better and secured future, Africa must rise to the challenge of harnessing its over 125 billion barrels of proven oil reserves and 625 trillion cubic feet of natural gas for the development of the continent.

“Africa must not be cowed to abandon its quest to grow its economies by the ‘doomsday’ narrative of ‘end of oil’ era and jettison the development of its resources.

“Africa’s resources must be used to fuel Africa’s development; the same
way other continents utilised dirtier fossil fuels to fuel their economic transformation.

“To achieve this, we must take our destinies in our hands and join hands across all spectrum – technical, economic, legal, commercial, operational, financial, and political – drive regional energy security and economic sustainability.”

According to him, Nigeria recognises the reality of energy transition and is committed to accelerated development of its petroleum resources through the emplacement of appropriate legal framework to support upstream asset acquisition, development, production and exports.

“However, we are putting increased emphasis on midstream investments and gas-focused infrastructural development for domestic value addition via the Refinery revolution and Decade-of-Gas Initiatives.

“The Decade-of-Gas Initiative will leverage Nigeria’s 203 TCF of natural gas reserves for domestic gas supply (Gas-To-Power), Alternative fuels (Gas-To-People) and Gas Based Industrialisation (Gas-To-Derivatives) elements of the Gas-fired Industrial economy agenda within this decade.

“All these efforts will significantly increase the quantum of in-country value addition to drive the contribution of oil and gas to Gross Domestic Production, employment generation and poverty eradication,” he said.

Also, Mr Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), said the coronavirus pandemic provided a sad realisation of the importance of local content in the oil and gas industry.

Wabote said the NCDMB would continue to deploy strategies to promote local content in Nigeria and within the African continent to provide jobs, support businesses and protect investments.

Earlier, Mr Nicolas Odinuwe, Chairman, PETAN, said the aim of the conference was to offer direct access to the primary stakeholders and key players across the entire Sub-Saharan African supply and value chain.

Odinuwe stressed the need for continued collaboration by African countries to foster development of the continent through the utilisation of its oil and gas resources.

The Department of Petroleum Resources (DPR) has pledged support to the hitch-free completion of Nigeria’s first floating Liquefied Natural Gas (LNG) production plant.

Mr Sarki Auwalu, Director, DPR gave the assurance at the online contract signing of an agreement by an indigenous oil and gas company, UTM Offshore Limited and its partners on the project on Tuesday.

The pre-front end engineering design (Pre-Feed) agreement was signed between UTM and JGC Corporation (UK) Limited.

UTM also signed a contract with KBR Engineering Company for the third-party review of the Pre-Feed deliverables from JGC.

Auwalu said that the DPR had in February, issued a Licence to Establish (LTE) to UTM for the project and that it is expected to be completed in 2025.

He said that the project was in line with the vision of the Federal Government to transform Nigeria into a gas-based economy by 2030.

He noted that the declaration of 2021 – 2030, by President Muhammadu Buhari as the decade of gas, was becoming a solid reality with the commencement of preliminary engineering of this LNG project.

He said the DPR, under the leadership of the Minister of Petroleum Resources, had continued to implement policy and regulatory reforms driven by a commitment to attract investments.

According to him, the reforms will also
create value and improve the contributions of the oil and gas sector to Nigeria’s Gross Domestic Product (GDP).

“The DPR will continue to provide opportunities and enable the businesses of promoters and investors in the oil and gas industry for the economic growth, stability and sustainability of Nigerian and for the mutual benefit of all investors and industry participants.

“Our licences, permits and approvals will continue to serve as stimulants for
value addition and enablers of development.

“Please be assured of the Department’s
unflagging support to see you through the successful execution of this landmark project in a safe, cost-effective and timeline manner,’’ Auwalu said.

He added that the DPR would ensure adherence
to laws and regulations, all in a bid to ensure successful development and optimum return on
investment.

The director also called on industry stakeholders to take advantage of the recently inaugurated National Oil and Gas Excellence Centre to promote safety, value and cost efficiency in the sector.

On his part, the Managing Director of UTM Offshore Ltd, Mr Julius Rone, thanked Muhammadu Buhari’s administration for creating an enabling environment for indigenous oil and gas companies to thrive.

Rone expressed optimism that the project would be completed within the stipulated time frame.

He noted that the plant, when operational, would be processing 176MMcfd natural gas and condensate.

He said that it would help create job opportunities for Nigerians and boost the country’s economy.