Kerosene: NNPC now produce 60% of local Consumption – Baru

Group Managing Director of the NNPC, Dr. Maikanti Baru
  • As NipeX Boss rallies support for Snake Island Free Zone

The Nigerian National Petroleum Corporation (NNPC) on Sunday indicated that the Corporation now supplies five million litres of Dual Purpose Kerosene (DPK), which amounts to 60 percent of DPK being consumed in the country.

The corporation’s Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu stated this in Abuja, attributing it to a statement by the NNPC Group Managing Director, Dr Maikanti Baru’s remark at a two-day Investigative Public Hearing of the House of Representative Committee on Petroleum Resources (Downstream).

”The nation’s three refineries in Port Harcourt, Kaduna and Warri produce five million liters of kerosene daily, representing more than 60 per cent of the national daily consumption requirement of eight million litres.

”The balance of three million litres of the product is being imported by private petroleum products marketers,” the statement said, adding that kerosene and other petroleum products supplied by the Corporation were of high quality and met safety standards.

”The NNPC ensures that the entire refining output in Nigeria through its refineries and any products imported by it to make up for market supply -shortfalls meet the specifications of the Nigerian Institute of Standard and Standards Organization of Nigeria.

”NNPC will not compromise safety and quality in its products and processes.

”All depots in the country have laboratories for quality checks to ensure safety of consumers,” Baru stated,  assuring Nigerians that in keeping faith with its avowed commitment to the safety of consumers, the Corporation has investigated the recent incident of kerosene explosion in Calabar.

(5th right) GM NIPEX Mr. Kanayo Odoe; Group Corporate Affairs Director Joy Okebalama (4th right); Human Capacity Development Manager, Emeka Anazia (3rd right) and other key staff during the tour of the Nigerdock Training and Development Academy at Snake Island Integrated Free zone.

It, however, could not trace the truck that delivered the adulterated product in any of its depots loading schedule.

He advised the committee to contact the Department of Petroleum Resources (DPR), which is the petroleum Industry regulator, to investigate the source of the adulterated kerosene among the private depots.

Baru called on relevant authorities to empower the DPR to carry out its responsibilities more diligently by ensuring that petroleum products imported by marketers met the required quality and safety standards as NNPC could not guarantee the quality of products imported by other market players.

“The quality of kerosene being sold to the general public require regular inspection to ensure that it meets health, safety, environment and quality standards at all times.

This is to avert any regulatory breaches or threat to lives and properties of the general public and consumers of the products,” Baru said.

Baru was represented at the hearing by the NNPC Chief Operating Officer, Downstream, Mr Henry Ikem-Obih.

The statement also reported the House Committee Chairman, Rep. Joseph Akinlaja, as saying the Committee was deeply concerned about the high cost of kerosene in the market and incessant explosions due to adulteration.

Akinlaja said the committee was mandated by the House to, among others, work out a clear cut policy framework on deregulation of kerosene to avert the current challenges faced by the masses in procuring the product;

It is also empowered to arrest the resurgence of kerosene explosion with attendant fatalities and investigate the disappearance of ₦11 billion worth of petroleum products belonging to the NNPC

In the meantime, General Manager of Nigerian Petroleum Exchange (NipeX), Mr. Kanayo Odoe has identified the Nigerdock, and the facility at the Snake Island Integrated Free Zone (SIIFZ) as a paradigm of Nigeria’s great prospects and impact on Africa.

Kanayo Odoe stated this during his recent courtesy visit to SIIFZ, the location of Nigerdock’s world class facility, stressing the need for Nigerian stakeholders to support the SIIFZ, in the overall interest of Nigeria.

Mr. Odoe noted that Nigerdock and its activities on SIIFZ represent the prospects of Nigeria across Africa.

“Snake Island is a manifestation of all that is good in this great country Nigeria.  It is my earnest hope on behalf of the people of this great nation that all the support we can muster to make the organisation great will be given to your good organisation. Be reassured of our highest support and commitment in bolstering your organisation for the overall benefit of Nigeria. Keep up the good work”, he observed, highlighting how impressed he was with the in-country capacity and capability available at Nigerdock.

He was conducted on a tour of the facility by Group Corporate Affairs Director, Joy Okebalama; Nigerian Content Manager, Nigerdock, Ifeanyi Chime; Senior Project Manager, Nigerdock, Temitope Odulate, among others.

The tour covered various areas of Nigerdock’s diverse business operations such as Logistics Base Infrastructure (Quaysides, Marshalling Yard, Water and MGO Storage, Laydown areas, Warehouses, Accommodation, Related Equipment, etc.); Ship Repair and Maintenance Facilities (Dry Dock and Floating Dock, Cranes, Workshops, etc.), Offshore Fabrication Facilities (Covered Fabrication Workshops, Coating Shops, Warehouses, Laydown and Erection Areas, etc.), the  recently rebranded Nigerdock Training and Development Academy and a  significant array of equipment such as various specifications of Cranes, SPMTs, Fabrication Equipment, etc.

“The facility is great and offers world class standards. It is quite remarkable that apart from the fact that Nigerdock is impacting on Local Content through the training and development academy, it is also gratifying to know that a lady who heads the Machining Workshop has spent over 24years in the organisation.”

During a brief presentation to the NipeX GM, Mrs. Okebalama explained that SIIFZ has a significant number of Free Zone Enterprises currently operating within the zone. These enterprises provide a wide range of activities including full EPCIC contract delivery, manufacturing, offshore logistics support services, pollution management and recycling, aviation services, engineering/design services, construction, fabrication, ship maintenance & repairs along with an array of maritime support services thereby making it a one stop shop for oil and gas related activities. These enterprises operating in SIIFZ have brought and will continue to bring significant added value to SIIFZ and the Nigerian Economy.

SIIFZ is strategically located at Snake Island Apapa, with immediate access to the open sea, and within proximity to Tin Can Island Port Apapa SIIFZ was established in January 2005 when Presidential Approval was granted for the commencement of Free Trade Zone operations on Snake Island.

While commenting on the impact of NipeX to the oil and gas industry, Mr. Odoe noted that free and fair tendering process, healthy competitive environment and high confidence and trust have been established in the oil and gas industry through NipeX.

NipeX is an electronic one-stop transaction centre that improves on value procurement in the oil and gas industry and institutionalizes world-class contracting processes in Nigeria. NipeX is a division of NAPIMS, a Corporate Service Unit of NNPC.