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Unscheduled shutdown of the refineries which results in disruption of products
The Nigerian National Petroleum Corporation (NNPC) was established on 1st supply.
April, 1977 Difficulty in establishing Letters of Credit for Offshore purchase of critical spare
parts.
Some Investors are apprehensive about the Niger Delta crises, what do you think Frequent invitation by members of the National Assembly
government can do to curb the crises? Favour seekers from powerful and influential Publics.
Government is already addressing the issues with emphasis on the development It is widely alleged that PPMC staff connive and aid pipeline vandals in their
of the region through a comprehensive Niger Delta Master Plan. Besides, nefarious act of vandalism.
Government recently established a Ministry of Niger Delta to coordinate Pipeline Vandalism is a criminal offence for which nobody is immuned against.
development of the oil producing region. This is in addition to the Niger Delta Available records have shown that over 5000 (five thousand) arrests have been
Development Commission (NNDC) which has been in existence close to a decade made across the Country and to date, No, PPMC staff have either been arrested
and currently making appreciable impact in the lives of the people of the Niger or implicated. The allegation is therefore unfounded.
Delta. Above all, Government also recently granted amnesty to the militants in
the region, a unique move that may enhance peace in the region. It is also believed that PPMC Management especially those in Marine or Supply
and Distribution aid and abet demurrage on coastal Vessels that supply products
Corporate Social Responsibility (CSR) has become a vehicle to attract goodwill and to the Country.
attention to an organization, are you doing anything in this regards? Demurrage are paid directly to ship owners whom neither staff nor Management
PPMC is a responsible Corporate Organization which has identified with its Host have access to. Nigeria also charges the lowest demurrage as its demurrage
Communities through community assistance & sustainable development projects. calculations are based on (AFRA) Average Freight Rate Assessment London tanker
It also carries out special programmes aimed at endearing her to her host brokers’ panel as against the Spot rate charge (Platts). The difference between
Communities. the two is about 10,000 USD. Ship owners are usually reluctant to come to
Nigeria, because of this price differential. Again a number of agencies have roles
What measures should be taken in the Nigerian Oil and Gas industry to ensure to play before a vessel is discharged such agencies include NPA, Customs, DPR
that capacity building in engineering and fabrication is increased in the Oil and and Navy.
Gas Industry?
Strict compliance with the Local content initiative of the Federal Government, Product allocation is widely believed to be a source of quick and easy money in
Deployment of the state of the art I.T infrastructure and Human Resources PPMC. How can one get this product allocation?
Development. There are different types of products. The white products i.e PMS ‐ Petrol, HHK –
House Hold Kerosene, ATK ‐ Aviation Turbine Kerosene, AGO – Diesel. These are
What are the major challenges of PPMC? allocated to Major and Independent Marketers. They sell these products in their
Pipeline vandalism various outlets.
Subsidy on imported products – loss in revenue
Cash crunch However, in the past these Marketers use powerful and influential members of
Obsolete/old equipment the public to obtain allocation for products they do not actually require, and turn
Continued encroachment on pipeline right of way around to sell the products to those who actually need it. There are other
Lack of prerequisite number of personnel products mainly for Industrial users who have operational facilities. These
products such as LPFO, SRG, Bitumen & LPG are allocated to users directly. Apart form the use of pipelines, how does PPMC transport her products?
However, some of these industrial users prefer to sell the allocation instead of PPMC transports products using road tankers and coastal vessels.
using the product in their factory. Machinery has been put in place to identify
specific industries engaged in this bad practice for appropriate sanction. HPFO is How can one buy Kerosene from PPMC?
mainly for export. One can buy Kerosene from PPMC only if one has authorized storage facility and
How many Pump Stations does PPMC have in Nigeria? is a registered marketer with PPMC.
PPMC has 15 Pump Stations out of which
8 are standing alone Pump Stations Why does PPMC grant credit facility to some marketers?
3 are tied to the Refineries and PPMC grants credit facility to some marketers it adjudged to be credit worthy in
4 are tied to the Depots terms of their capacity.
Does PPMC transport different products through different pipelines?
PPMC transport all refined products through the same pipelines except Mosimi – What is community relations and how is it done?
Satellite product line where you have different pipelines for different products. A Basically, Community Relations is the process of building and sustaining a good
different pipeline is used for transporting Crude. relationship between NNPC and its host communities in order to provide a
conducive environment for its operations.
Does PPMC own and operate Product Shipping Vessels?
PPMC only chatter Vessels to Ship products. It also owns some Vessels. Regular meetings are held with the communities to identify their needs and
decide how best to assist them in actualizing their aspirations.
How does PPMC secure her pipelines? What is sustainable community development?
PPMC secure her pipelines through the use of Community guards, Nigeria Mobile Any community relation strategy that is adopted must be sustainable enough to
Police Force, Nigeria Military, National Security and Civil Defence Corp also assist. meet the requirements of the present generation without compromising the
rights of future generations to available resources.
How does PPMC distribute products to the riverrine areas?
PPMC distributes products to the riverrine areas through floating Mega Stations Programmes and infrastructure must be such that they are self sustaining over
and some filling stations with authorized licence to sell petroleum products in the time and adopt a holistic approach that recognizes the need to sustain the
Area. environment and the involvement of communities in the decision making process.
Does PPMC market LPG? It seeks to provide a framework that gives impetus to the communities to drive
Yes, PPMC markets LPG (Liquefied Petroleum Gas) and take ownership of the development process.
What is CSR and how does it work?
Does PPMC also export petroleum products? It means corporate social responsibility. CSR is just another name for good
Yes, PPMC exports, HPFO and sometimes other products when they are surplus. corporate citizenship, where a corporate organization endeavors to identify and
meet the social needs of communities in its area of operation. This may be in the
Does PPMC market Crude Oil? form of community assistance, infrastructure development or human capacity
No. PPMC does not market Crude oil. building.
How are the projects for any particular community selected? which results in more complete fuel combustion thereby reducing
Basically, all NNPC strategic business units (SBUs) or or subsidiary companies are harmfulemissions.
required to set up a Joint Community Relations Committee (JCRC) with their host
communities. It is the responsibility of this committee to deliberate and select What is the acceptability level of E10 as a form of fuel from the consumer and
viable and sustainable projects for their communities subject to available funds. Environment stand points?
E10 is an environmentally friendly form of fuel that has been very well accepted
Usually a basket of possible projects is developed and prioritized. Selection is in other countries, e.g. Brazil, India, Thailand, USA, Germany etc. The key to
often based on the order of priority for the identified projects. successfully market E10 is to prevent water contamination. These procedures will
Is there any legislation that compels oil and gas companies to provide assistance be applied all along the value chain from the export terminal to the import
for their host communities? terminal to the depot and service stations storage tanks. Trucks and pipelines will
There is currently no legislative backing for community based programmes and also be subject to new procedures. Here, proven quality assurance procedures
projects embarked upon by oil and gas companies in Nigeria. It is purely at the developed by Petrobras will come in handy.
discretion of the operating companies. However the proposed oil and gas industry
reforms will address some of these issues in the Petroleum Industry Bill (PIB) How will PPMC role be affected by the introduction of E10 to the Nigerian
which is currently before the National Assembly market?
Nothing really changes at least in the early stages except that with the
What is upstream/downstream investment? introduction of E10, PPMC now has a new supplier it needs to interact with, i.e.,
Upstream investment is the investment in oil exploration and production while the import traders. Refineries will continue to supply PPMC based on same
downstream investment is the investment in every other sector of the oil industry processes as before however, there may be the need to adapt refinery facilities to
that has to do with LNG, refining, marketing, distribution etc handle ethanol especially when the programe is expanded. In terms of how
supply and demand management processes are concerned, there will be no
What is the relationship between National Petroleum Investment and change.
Management Services Division – NAPIMS and the Commercial and Investment
Division of NNPC? What is the colour of E10?
National Petroleum Investment and Management Services (NAPIMS) is the The colour of E10 is green connoting environmental friendliness.
Corporate Strategic Unit (CSU) that manages the Federal Government’s
Investment in the upstream Petroleum industry while the Commercial Investment What is Green House Gases (GHG)?
Division manages NNPC core investments in the service and Downstream sector. GHGs are gases such as carbon mono‐oxide and carbon dioxide whose presence
in the atmosphere results in the earth’s surface being warmer than it would
What is renewable energy? otherwise be (Global warming).
Renewable is energy from a source which can be managed, so that it is not
subject to depletion in a human time scale. Why make Ethanol from biomass?
The essence of making ethanol from biomass is to integrate the Agricultural
What is E10? How is it different from PMS? sector with the Petroleum sector of the economy. This would enable Nigerians
E10 is a blend of 10% by volume Ethanol and 90% by volume Gasoline. E10 reap the benefits of job creation.
gasoline (also referred to as Gasohol) differs from PMS in that it contains oxygen
What is the yield of ethanol from Biomass? What are the efforts put in place to reduce high demurrage in relation to
One (1) ton of sugarcane yields approximately 95 liters of Ethanol while one (1) importation of Petroleum Products?
ton of cassava can yield up to 150 liters but sugarcane fermentation is easier than Provision of N3.00 by Petroleum Product Pricing Regulatory Agency (PPPRA) to
cassava. pay for Private Depots facilities in the interim.This is to enable big vessels
discharge on time and depart.
What is PPMC?
The Acronym: PPMC means Pipelines and Products Marketing Company Limited. How do we determine the Government subsidy?
It was incorporated in Nov. 1988 as a wholly owned subsidiary of NNPC. It The total landing cost ex‐filling station minus fixed pump price by PPPRA plats.
commenced operation in Jan. 1989
What is PPMC doing to encourage people to use liquefied Petroleum gas (LPG)
What is the relationship between PPMC and NNPC? and what is the PPMC price?
PPMC is a subsidiary of NNPC. NNPC is a Federal Government Corporation created PPMC is carrying out a campaign to encourage members of the public through
by the merger of Nigeria National Oil Company (NNOC and Ministry of Petroleum participation in Trade fairs and exhibitions. PPMC price is N55.56 per litre.
Resources through decree 33 of 1977.
What is the volume of LPG in 12.5kg cylinder?
What are the major functions of PPMC? 21.875 litres.
PPMC supplies Crude Oil to Refineries for refining and evacuates Petroleum
Products from the Refineries for distribution to the domestic markets. It also What is PHRC installed capacity?
ensures that daily National demand for Petroleum Products are met by PHRC, 210,000bp/d
augmenting local supplies from Refineries with import. In addition, PPMC markets What are the products of PHRC?
other special products such as HPFO, LPFO, Bitumen etc. PMS, Ago, DPK, fuel Oil and LPG.
How can one be a Marketer of PPMC’s products? What are the factors that hamper PHRC smooth operation?
Marketers are first licenced by DPR, armed with the licence, bulk purchase Mainly, aged parts, infrequent TAM and activities of the militants.
agreement is entered into with PPMC.
What is the production capacity of WRPC?
How can one get allocation for Petroleum Products like, LPFO, HPFO, Bitumen 125,000bp/d
etc?
LPFO is Low Pour Fuel Oil mainly used in Industries as fuel for generation of What is the acronym NETCO?
power or for firing their heaters. Allocation is made to industries through National Engineering and Technical Company Limited, it is a subsidiary of NNPC
Marketers. HPFO is mainly exported while Bitumen is allocated to construction
Companies as well as the FMWH, SMWH etc. What gave birth to NETCO and in what year was it established?
The drive for Federal Government to own and have an indigenous engineering
How can one set up a filling Station and begin to get Products from PPMC? capability to design and build plants and facilities for the nation’s oil and gas and
The first port of call will be the DPR which will license the prospective marketer other allied industries. Also, it is the premier indigenous engineering company
and then sign bulk purchase agreement with PPMC.
with strategic vision of providing basic and detailed Engineering. NETCO was
established in 1989. Who are the producers?
The producers are the major international oil companies, e.g. SPDC (Shell), CNL
What are the contributions NETCO renders to NNPC and Nigeria? (Chevron), etc, which are involved in major oil prospecting and oil production in
Rendering services in the oil and gas industry; Nigeria.
Feasibility studies, conceptual design, basic and detailed engineering design.
Procurement, construction, supervision and project management. Which of this gas does NGC market: Propane, Brutane or Acetylene?
Quality assurance, quality control and environmental consulting. Methane.
Facilitation of local content.
When did NETCO commence commercial operation? How do you transport your gas to the users?
August 1990. Gas is transported through the pipelines.
Who are NETCO major clients/customers? What are the advantages of natural gas over liquid fuel?
ExxonMobil, Chevron, Shell, AMEC, KBR, Nigeria Agip Company, Saipem, Addax, Natural gas is safe, clean, cheap, and environmental friendly.
TSKJ Consortium, TechnipCoflexip, NLNG, Ecergy among others are the main
clientele of NETCO. NNPC EXECUTIVE MANAGEMENT
Dr. Maikanti Kacalla Baru ‐ Group Managing Director
What is the meaning of NGC? Bello Rabiu ‐ Chief Operating Officer, Upstream
Nigerian Gas Company Limited. It was established in 1984. with a vision to be the Sa’idu Mohammed ‐ Chief Operating Officer, Gas & Power
preferred Gas Company to its present and future customers. Anibor Kragha ‐ Chief Operating Officer, Refining
Henry Ikem Obih ‐ Chief Operating Officer, Downstream
Natural gas! Where do you get it from? Babatunde Victor Adeniran ‐ Chief Operating Officer,Ventures
Natural gas is derived from crude oil wells and natural gas wells underground the Isiaka Abdulrazaq – Chief Finance Officer, Finance & Accounts
bowels of the earth in the reservoir. Isa Inuwa ‐ Chief Operating Officer,Corporate Services
Chidi Momah ‐ Secretary to the Corporation
Do you get gas from the earth structure like crude oil?
Yes. We have natural gas in two forms. One is associated and the other is non‐ NNPC BOARD
associated gas. Dr. Emmanuel Ibe Kachikwu ‐ Hon. Min. of State for Pet. Res. Chairman
Dr. Maikanti Kacalla Baru ‐ Group Managing Director, NNPC
What is the difference between the two types of gas? Mallam Abba Kyari ‐ Chief of Staff to the President, Federal Republic of Nigeria
Associated gas comes from crude oil wells along with other hydrocarbon and Dr. John M.A Thomas ‐ Member, NNPC Board
impurities like mud, water, sand, etc. While non‐associated gas comes from dry Dr. Pius O. Akinyelure ‐ Member, NNPC Board
gas well with little or no impurities. Dr. Tajuddeen Umar ‐ Member, NNPC Board
Mallam Mohammed Lawal ‐ Member, NNPC Board
Do you produce gas or how do you get it? Mallam Yusuf Lawal ‐ Member, NNPC Board
No, we do not produce gas, we buy gas from gas producers. Alh. Mahmoud Isa Dutse ‐ Permanent Secretary, Federal Ministry of Finance
NNPC CORPORATE INFORMATION NNPC: MISSION, VISION AND CORE VALUES
The Nigerian National Petroleum Corporation (NNPC) is the state oil corporation Mission: NNPC is an integrated Oil and Gas Company, engaged in adding
which was established on April 1, 1977. In addition to its exploration activities, value to the nation’s hydrocarbon resources for the benefit of all
the Corporation was given powers and operational interests in refining, Nigerians and other stakeholders.
petrochemicals and products transportation as well as marketing. Between 1978 Vision: NNPC will be a world‐class oil and gas company driven by shared
and 1989, NNPC constructed refineries in Warri, Kaduna and Port Harcourt and commitment to excellence.
took over the 35,000‐barrel Shell Refinery established in Port Harcourt in 1965. Core Values: Respect for the Individual
Staff development and growth
In 1988, the NNPC was commercialised into Strategic Business Units, covering the Integrity, transparency and accountability
entire spectrum of oil industry operations: exploration and production, gas Professional Excellence
development, refining, distribution, petrochemicals, engineering, and commercial
investments, namely: NNPC EXECUTIVE MANAGEMENT
Nigerian Petroleum Development Company (NPDC) Dr. Maikanti Kacalla Baru ‐ Group Managing Director
Nigerian Gas Company (NGC) Bello Rabiu ‐ Chief Operating Officer, Upstream
Pipelines and Products Marketing Company (PPMC) Sa’idu Mohammed ‐ Chief Operating Officer, Gas & Power
Integrated Data Services Limited (IDSL) Anibor Kragha ‐ Chief Operating Officer, Refining
National Engineering and Technical Company Limited (NETCO) Henry Ikem Obih ‐ Chief Operating Officer, Downstream
Hydrocarbon Services Nigeria Limited (HYSON) Babatunde Victor Adeniran ‐ Chief Operating Officer,Ventures
Warri Refining and Petrochemical Company Limited (WRPC) Isiaka Abdulrazaq – Chief Finance Officer, Finance & Accounts
Kaduna Refining and Petrochemical Company Limited (KRPC) Isa Inuwa ‐ Chief Operating Officer,Corporate Services
Port Harcourt Refining Company Limited (PHRC) Chidi Momah ‐ Secretary to the Corporation
NNPC Retail Limited
Duke Oil NNPC BOARD
Dr. Emmanuel Ibe Kachikwu ‐ Hon. Min. of State for Pet. Res. Chairman
In 2016, following the repositioning efforts of the Corporation to become a global Dr. Maikanti Kacalla Baru ‐ Group Managing Director, NNPC
energy company, the PPMC and NGC were restructured to give birth to new Mallam Abba Kyari ‐ Chief of Staff to the President, Federal Republic of Nigeria
commercial entities as follows: Dr. John M.A Thomas ‐ Member, NNPC Board
Nigerian Gas and Marketing Company (NGMC) Dr. Pius O. Akinyelure ‐ Member, NNPC Board
Nigerian Gas Processing and Transmission Company (NGPTC) Dr. Tajuddeen Umar ‐ Member, NNPC Board
Gas and Power Investment Company (GPIC) Mallam Mohammed Lawal ‐ Member, NNPC Board
Nigerian Products and Marketing Company (NPMC) Mallam Yusuf Lawal ‐ Member, NNPC Board
Nigerian Pipelines and Storage Company (NPSC) Alh. Mahmoud Isa Dutse ‐ Permanent Secretary, Federal Ministry of Finance