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Fuel Scarcity And The State Of Our Petroleum Sector - Business - Nairaland

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Fuel Scarcity And The State Of Our Petroleum Sector by somze(f): 11:27am On May 31, 2011
I read an article on the developments in the Petroleum sector by GEJ and his minister. It was a long read by the way, so I summarized it below.

1. Before May 6, 2010, when GEJ became substantial President we experienced product scarcity and long queues in filling stations.

2. During the military regimes prior to democracy the following were widespread - pipeline vandalization by host communities, fire outbreak as a result of such vandalization leading to refinery shutdown.

3. During Obasanjo's regime Nigeria still witnessed  - long queuing for fuel, product hoarding, product adulteration and black market selling. Obasanjo increased the pump price of the product a number of times to stem the issue. 

4. Late President Yar'adua, during his era, initiated measures to revive the refineries but couldn't enforce sale of petrol at approved pump price. In North and East fuel sold btw N70 and N80 while Gas and Kerosene remained scarce.

5. When GEJ came along, he appointed an expert to lead the industry - Mrs Diezani Alision Madueke ( who was once the 1st female Executive Director of Shell Petroluem Development Company).

6. Her Actions - She revitalized the Warri, Kaduna and Port Harcourt refineries conducting turn-around maintenance among others. Major repairs of Product Evacuation Infrastructure was undertaken.

7. NNPC always has in its depots a quantity that is greater than demand (around 30 days). This has stabilized pump price across the country.

8. To sustain petrol supply and distribution, NNPC is working towards increasing refining capacity through the building of three Greenfield refineries as well as the massive expansion of its retail outfit (NNPC Filling stations) to check the incidence of artificially-induced fuel scarcity.

9. She supported the GEJ's drive to resolve Epileptic Power supply caused by Gas shortage. Gas prices were too low and gave producers no incentive to make huge investments required to increase supply of product. New pricing was proposed and implemented leading to increase in gas production and supply. Pan Ocean Gas project is now completed and ready to supply additional 60mmcf/d of gas as soon as power sector is ready.

10. She opened access to petroleum marketing and distribution. Before her period, 3 major companies were getting 90% of allocations of petroleum products from NNPC. The cartel was broken and the downstream sector was opened up and now more companies are participating in the sector. Of course this has angered members of the cartel who have resorted to sponsoring smear campaigns against the minister.

11. Massive transformation of NNPC, passage and implementation of Nigerian Content Act, the push for the passage of Petroleum Industry Bill, implementation of Gas master plan, improved relations with critical stakeholders across the oil and gas value chain.

12. Currently, gas supply has surpassed the requirement of the existing thermal power plants. The surplus is now being exported and with the coming on stream of Alaoji Power Plant and other thermal plants, all the gas produced would be adequately utilized to avoid waste

13. There is, however, little investment in the upstream sub-sector when compared to the gas sector due to its capital intensiveness and length of time for ROI. Investors want to first consider the laws governing the sector (PIB bill).

14. Thanks to Nigerian Content Act being passed into law, over 30,000 direct employments and training opportunities have been created for Nigerians.

15. Petrochemical and fertilizer projects is expected to attract more than $10bn foreign direct investment between 2012 and 2014. The Gas revolution launched recently is expected to provide over 500,000 jobs.


Source
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 1:09pm On May 31, 2011
Good! Very good! But despite all these:
1. Malnourishment still kills a lot of children on a daily basis.
2. There is no healthcare insurance that covers about 90% of the population.
3. Educational system and ministry is in tatters.
4. Unemployment rate is more than 30%.
5. The country's total power supply output can only supply roughly 10% of the nation.
6. Portable water is a pipedream.
7. Crime rates seem to skyrocket by the day.
8. Corruption by the elected leaders still goes unchecked n unhampered, hence impoverishing the country.
Going by these and many more, it is clear to see that all the above achievements are but a flash in the pan.
This is my 2kobo.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Rorhymes(m): 2:00pm On May 31, 2011
Didn't know all that was achieved. But for a fact I know that the fuel queues are gone. That's two thumbs up

I'm sure we were talkn abt fuel wat is dis pornodude talkn about? How does any of that affect the petroleum minister?
Re: Fuel Scarcity And The State Of Our Petroleum Sector by dustydee: 2:11pm On May 31, 2011
Rorhymes:

Didn't know all that was achieved. But for a fact I know that the fuel queues are gone. That's two thumbs up

I'm sure we were talkn abt fuel wat is dis pornodude talkn about? How does any of that affect the petroleum minister?
Indeed, what about the long queues three weeks ago?
Re: Fuel Scarcity And The State Of Our Petroleum Sector by somze(f): 2:26pm On May 31, 2011
Only Abuja had fuel queues weeks back. I traveled to Lagos and PH and everything was fine. I hear problem was due to the crisis after election among other issues.

In truth, we have had 2 or 3 incidences that led to queuing but these were all artificial. I believe they were caused by NLC or was it PHCN workers strike and then NARTO strike. Product was present (quantity that covered for 30 days in NNPC depots) but black marketers and retailers took advantage of the situation. Both cases were quickly dealt with by the govt and lasted for about 2 days. Compare that to scarcities we've had for weeks or months before GEJ because of unavailability of product or debts owed to product marketers.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Bawss1(m): 2:58pm On May 31, 2011
Interesting piece. It was a long read by the way so I summarized it below:

1.Since GEJ came to power our petroleum industry is seeing better days. smiley
Re: Fuel Scarcity And The State Of Our Petroleum Sector by nsiadi: 12:48am On Jun 01, 2011
One wonders what the 4mer dead woods in the petroleum ministry were doing. We are really pleased wt the giant strides of d last minister. There is no reason why she shouldn't return to continue with d good work. I know some bad belle people will now come up with d rubbish of zoning it out. She should continue 2 stoutly say no to d cartel. We fully understand the blackmail. Nigerians are wiser. Those defeated @ d polls will even try to pull their own strings. It should be expected.

The good thing about GEJs single term is he wont look @ peoples faces. He isnt looking 4 their votes in 4 yrs time so he can afford to step on peoples toes. We wont mind as long as he doesn't deviate from serving the general good.

We have nice materials. Our man can fish them out, the way Jega was thrown-up. Diezani isnt the only jewel. They abound. Pat Utomi can be useful. Winner takes all is a bad credo. So far so good
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 2:57am On Jun 01, 2011
I think Nairaland is becoming like a campaign vehicle for some, just saying. Enough already, I wish GEJ had signed a bill that said penalty for any public officer found guilty of corruption was death by firing squad like they have in china, instead of passing the not so needed (at least while we have more pressing issues) FOI act.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 3:01am On Jun 01, 2011
Didn't Bankole just misappropriate some money recently whats gonna come of that. Can someone ask MR. PRESIDENT about this?? What his he gonna do about Mr. Bankole Isn't his offense punishable by at least Jail term Is anyone above the LAW He inflated some bonuses by 150% or something like that and his excuse was he thought the budget could support it, With the Millions of Nigerians that cannot afford one square meal. Sometimes i wonder where people's hearts are, just to dey chop sha!
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Beaf: 3:06am On Jun 01, 2011
engineerd:

Didn't Bankole just misappropriate some money recently whats gonna come of that. Can someone ask MR. PRESIDENT about this?? What his he gonna do about Mr. Bankole Isn't his offense punishable by at least Jail term Is anyone above the LAW He inflated some bonuses by 150% or something like that and his excuse was he thought the budget could support it, With the Millions of Nigerians that cannot afford one square meal. Sometimes i wonder where people's hearts are, just to dey chop sha!

My broda, this has nothing to do with petroleum or the topic at hand.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by SU2011: 3:22am On Jun 01, 2011
Sometimes I wonder whether some people drink kerosene before coming to nairaland. How can you be asking what GEJ will do about Bankole. Is he the police or the high court. If you feel Bankole has done anything wrong and you have evidence, please sue him all the way to supreme court. The president has his work cut out for him. I feel some people will even call GEJ to come and change the light bulb in their house.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by MeGaStReEt: 3:30am On Jun 01, 2011
engineerd:

I think Nairaland is becoming like a campaign vehicle for some, just saying. Enough already, I wish GEJ had signed a bill that said penalty for any public officer found guilty of corruption was death by firing squad like they have in china, instead of passing the not so needed (at least while we have more pressing issues) FOI act.

Bros you be Muslim
Re: Fuel Scarcity And The State Of Our Petroleum Sector by shogbenga: 4:07am On Jun 01, 2011
i am sure this thread is being sponsored by the minister. talking about tackling scarciy of fuel in nigeria, u cant take the credit away from obasanjo. he fought the oil mafians in the north.maybe jonathan improve on that, i dont know. some of us live in the north and we knew what it takes to get fuel before obasanjo came in.
on her achievements, well someone needs to tell me the criteria for measuring achievement. i believe strongly that the woman should be fired. i have not seen what she has done except on paper.

all of us should go to the fiiling station today and see if we can get kerosene to buy. if we get it, is it at 50 naira?this is what the common man uses. 2 weeks ago, i personally bought kerosene for 120 naira per litre, so where is her achievement. nothing.

she was works minister, what was her achievement, nothing. just political patronage
we should stop deceiving ourselves
Re: Fuel Scarcity And The State Of Our Petroleum Sector by BetaThings: 4:20am On Jun 01, 2011
MeGaStReEt:

Bros you be Muslim
What about the Chinese, Singaporeans, Thais etc who have the death penalty in their books
People are still sentenced to death for some crimes in the US
Are they muslims
We need that punishment
I know that a lot of criminals come online to tell us that death penalty solve nothing
Some lawyers also hold that illogical view
That is a lie. Those white collar robbers would not dare steal in the face of near-certain death
Re: Fuel Scarcity And The State Of Our Petroleum Sector by BetaThings: 4:25am On Jun 01, 2011
somze:

I read an article on the developments in the Petroleum sector by GEJ and his minister. It was a long read by the way, so I summarized it below.

1. Before May 6, 2010, when GEJ became substantial President we experienced product scarcity and long queues in filling stations.

2. During the military regimes prior to democracy the following were widespread - pipeline vandalization by host communities, fire outbreak as a result of such vandalization leading to refinery shutdown.

3. During Obasanjo's regime Nigeria still witnessed  - long queuing for fuel, product hoarding, product adulteration and black market selling. Obasanjo increased the pump price of the product a number of times to stem the issue. 

Propaganda right from day 1
PIB - introduced by Yaradua government
Pipeline vandalisations tackled largely by amnesty programme - Yaradua idea
Tell us about Deziani's activities in Works (meaningless crying) and Steel ministries
Afterall she is not the only one not posted to her area of competence at one time or the other
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 6:31am On Jun 01, 2011
SU2011:

Sometimes I wonder whether some people drink kerosene before coming to nairaland. How can you be asking what GEJ will do about Bankole. Is he the police or the high court. If you feel Bankole has done anything wrong and you have evidence, please sue him all the way to supreme court. The president has his work cut out for him. I feel some people will even call GEJ to come and change the light bulb in their house.
Either this was a failed attempt at a joke or you are simply an . Maybe they drink kerosene in your father's house. How is it any of your business if i asked about what GEJ is gonna do about Bankole?? Instead of wasting 3 lines of your life ranting bull, don't you think contributing a sensible line to the question i raised (although it might be a digression) would have been a more positive thing You are an slowpoke to say the least!
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 6:35am On Jun 01, 2011
Beaf:

My broda, this has nothing to do with petroleum or the topic at hand.

Why don't you just ignore me rather than taking the time to remind me "My broda" That this has nothing to do with petroleum or the topic at hand?? Must you respond to other people's digression Typical Nigerian!
Re: Fuel Scarcity And The State Of Our Petroleum Sector by debosky(m): 7:03am On Jun 01, 2011
The refineries have NOT been 'revitalised', as of December 2010, NONE of them were working due to multiple pipeline vandalisation, some even occurring on a weekly basis in Port Harcourt, so I see absolutely no achievement there.

Any responsive organisation/minister would have a specialised pipeline repair team on standby to repair vital pipelines to the refineries, not waiting 18-24 months to do repairs.

Even before the pipeline issues, the refineries were struggling to meet 60% capacity, which still left over 80% of Nigeria's petroleum product requirements to be imported.

PIB was not Allison's idea at all, it was initiated by Rilwan Lukman, who devised the bill along with the reorganisation of the NNPC into a focused oil producing company to give it teeth to one day become like Petrobras and Statoil.

This same Allison Diezani has been implicated as being one of the Shell informants in government that are working to frustrate the PIB bill that Yar'adua initiated. The bill has subsequently been watered down to meet the desires of the IOCs, and yet has not been passed.

Simply engaging in massive importation of petroleum products is not much of an achievement in my view.

I am highly sceptical of the claims of improving gas supply - everyone knows that these projects take time to execute, and most of them were already in progress, so coming to commission existing projects, some of which were started when OBJ was in government (but delayed by unrest in the Delta) is misleading at best and outright dishonest at worst.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by debosky(m): 7:28am On Jun 01, 2011
To hear another opinion beyond the blatant propaganda in the source article, read below

Diezani Alison-Madueke


Diezani Alison-Madueke, 49, has got a pretty face. but what launched her into fame was the theatrics she displayed on the Lagos-Benin Expressway where she launched a high profile visit to prove that, as a minister of transport, she wasn’t just going to sit in the office and look pretty like a flower vase.


Alison-Madueke, for good measure, broke down in tears at the Ore section of the highway and gave a well rehearsed apology on behalf of the Federal government for the state of the road and promised that the expressway would soon be expeditiously revamped. Well, as the minister of transport, she was expected to show more zeal than tears. She didn’t quite do so but as reward for her (non)efforts, she was redeployed to the mines and steel development ministry in December 2008 and subsequently ‘promoted’ to Minister of Petroleum, becoming the first woman to do so.


According to whistleblower, WikiLeaks, her family has an entrenched interest in Royal Dutch/Shell, suggesting that her coming is like a strategic return of the oil giant to the mainstream. What seems to be most important, however, is that since then, a lot has happened. Within 60 days of her leadership, the Nigeria National Petroleum Corporation got two group managing directors, with speculations that the appointees were her cronies.


She has twice been indicted by the Senate for fraud. The first was in 2008 and the indictment was about ‘irresponsible and reckless’ spending concerning the illegal transfer of $263m, from the account of the ministry within just three days - December 26-31, 2007.


The second indictment came less than two years after the first probe. In October 2009, the Senate indicted her and recommended that she be tried for allegedly transferring N1.2bn of a toll company into her private account without due process and in breach of concession agreement.


While campaigning for President Goodluck Jonathan, she kept assuring Nigerians that their administration had done well by ensuring that people no longer queued for petrol. She, however, has no answer for the scarcity and costliness of diesel and kerosene currently biting the polity.


Alison-Madueke has been credited with working on the oncoming Gas Revolution or for steering the Nigeria oil and gas industry towards the path of transformation and sustainably growth. In fact, much of the achievements credited to her has either been that she is a female or for projects that are yet to be realised. In terms of concrete achievements, she has very little to show for the past four years in governance.

http://www.punchontheweb.com/Articl.aspx?theartic=Art20110524383568
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Konnekt(m): 7:55am On Jun 01, 2011
Yes GEJ tried to have made the liquid treasure available unlike before. But he should look beyond that to think of building a refinery of our own. We need one, or don't we?
Re: Fuel Scarcity And The State Of Our Petroleum Sector by erastus75: 8:15am On Jun 01, 2011
Pornodude:

Good! Very good! But despite all these:
1. Malnourishment still kills a lot of children on a daily basis.
2. There is no healthcare insurance that covers about 90% of the population.
3. Educational system and ministry is in tatters.
4. Unemployment rate is more than 30%.
5. The country's total power supply output can only supply roughly 10% of the nation.
6. Portable water is a pipedream.
7. Crime rates seem to skyrocket by the day.
8. Corruption by the elected leaders still goes unchecked n unhampered, hence impoverishing the country.
Going by these and many more, it is clear to see that all the above achievements are but a flash in the pan.
This is my 2kobo.

Oga do u think with ur head or yansh? Do you want GEJ to perform miracle when the country economy has been destroyed since the 80s, often said "easier said than done" however I dont blame you shaaa, armchair critic
Re: Fuel Scarcity And The State Of Our Petroleum Sector by VINDYLOMO(m): 8:35am On Jun 01, 2011
Konnect yuo are very correct, Not until a new refinery/refineries are built, the problems in the sector will continue to be off and on. GEJ and Petroleum minister has not be able to address the KEROSENE the common man most important needs. Let encourage him to build new refineries.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by babaowo: 8:40am On Jun 01, 2011
hmmm true ,but time will tell
Re: Fuel Scarcity And The State Of Our Petroleum Sector by adebayo111: 8:46am On Jun 01, 2011
Pls ask the fool that open this thread if he is living in thesame Nigeria that am living.
can u guess the price of diesel and kerosine that is used by ordinary Nigerians. And somebody is here telling me its an achievement. Achievement my ass. Say something else.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by mithel(m): 9:00am On Jun 01, 2011
Why do we love mediocrity in this country like this.chai,its looking like nigeria is getting worse nt cos of our leaders but we the citizens.

Now at OP,how can we be celebrating the availability of petrol in an oil rich country like nigeria?and the fact that it is only petrol that is available makes it worse,are we daft or something.

Okay,fine petrol dey,wetin happen to kerosine,diesel n cooking gas.just yesterday,i went t6 the filling station to get kerosine,and they were charging 180.now tell me how in a nation where about 40 to 50% live below 2 dollars per day can afford that.diesel was a NO NO too,cos they were charging 150 and it wasnt even readily available.i hope say we no dey craze for this country sha.we seem to think we are niger or chad where dey av nothing under the ground.

I no get light since may 29 and i live in ikorodu near Egbin Power Station,but we no dey get lyk,i nw wonder hw ppl in ketu ,ibafo,mowe live.

NAWA FOR WE NIGERIANS O. D.AFT PEOPLE,YEYE COUNTRY.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by namdo(m): 9:05am On Jun 01, 2011
for the records:
27/05/2011
Shell-JV has signed two major agreements to sell gas to the domestic market under the Nigeria Gas Master Plan (NGMP). The Gas Sale and Aggregation Agreement (GSAA) is executed between Shell, TEPNG and NAOC (collectively as Sellers), PHCN and Egbin (jointly as Buyer), and the Strategic Aggregator for supply of 90 MMscf/d of gas from SPDC-JV’s Utorogu gas plant to PHCN’s Egbin Power Plant for 10 years. The GSAA is backed by a Seller’s Representative Agreement (SRA) between the Sellers and NNPC, for Sellers to represent NNPC in the sale of its equity share of gas in SPDC-JV.

The signing ceremony was hosted by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke in Abuja on 27th of May 2011, and attended by the Minister of State for Power, Mr. Nuhu Wya and the Group Managing Director of NNPC, Mr. Austin Oniwon as well as SPDC-JV partners. Mrs. Alison-Madueke commended SPDC and the other IOCs for the Agreements.

Shell’s Vice-President – Gas (Sub-Saharan Africa), Osten Olorunsola said "This Agreement will assure regular supply of gas to Egbin and result in an improved electricity supply in the country. We are keen to continuously strengthen our partnerships with the Federal Government as well as other stakeholders to grow Nigeria’s domestic gas and power sectors, and are committed to participating actively in the Federal Government’s Gas Revolution.”

The GSAA will define the framework and terms for the negotiation by SPDC-JV of all subsequent domestic gas supply arrangements under the NGMP. This Agreement further demonstrates SPDC Joint Venture’s support, as well as leadership for the Federal Government’s aspiration to increase domestic gas utilisation, especially for electricity generation, to catalyze Nigeria’s economic growth.

Shell Joint Venture also owns and operates the 650 MW Afam VI Power Plant in Rivers State, which at present generates 15-20% of Nigeria’s total electricity supply.

, they are still trying, let's support them instead of running them down. we have lots of bad, evil people in this country who only aim at rubbishing other people's efforts and sabotaging good efforts and plans for their own selfish interests. That is why we still have rackets/profiteering in the system.

?? what is your own advise for the president and his various ministers for a better country??
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 9:08am On Jun 01, 2011
Let forget all these lies this is the fact:
Diesel now sells for N165 per liter. Kerosene is not even available. There is still looooooooooooooong queues in warri and parts of Abuja. OP might want to verify.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by adebayo111: 9:30am On Jun 01, 2011
Do the OP knows the multiplier effect of petroleum products scarcity? Most especially kerosene and diesel. Scarcity or hike in price of diesel bring about high cost of productiön thereby increasing the cost of goods. Where in the case of kerosene, among other effects, since the hike in the price of kero people have shifted to the use of charcoal and firewood thereby causing deforestation, which damage the environment. And also a hike in the price of kero will lead to people storing the product at home thereby causing havoc. Not forgetting adulteration.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Nobody: 9:35am On Jun 01, 2011
As far as the OP is concerned scarcity is all about PMS, how myopic.

Diesel (AGO) is now N170/ltr. Mind you diesel is the fuel for power generation by homes and companies in Nigeria.

On the other hand kerosene(DPK), which is used by the common man, is nowhere to be found.

Yeye dey smell.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by FKseun(m): 9:36am On Jun 01, 2011
Food for thought:
Allison-Madueke was appointed Transport Minister in July 2007. In June 2008 she was subject to a Senate probe after it emerged that as Transport Minister she had paid $263 million to contractors between December 26 and 31 2007.

She was appointed Minister of Mines and Steel Development in 2008.  In October 2009, the Senate of Nigeria indicted her and recommended prosecution for the alleged transfer of N1.2 billion into the private account of a toll company without due process and in breach of concession agreement.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by nateevs(m): 9:50am On Jun 01, 2011
Somze has bought into the propaganda. What a shame!.
Re: Fuel Scarcity And The State Of Our Petroleum Sector by Bensonite: 9:52am On Jun 01, 2011
engineerd:

Didn't Bankole just misappropriate some money recently whats gonna come of that. Can someone ask MR. PRESIDENT about this?? What his he gonna do about Mr. Bankole Isn't his offense punishable by at least Jail term Is anyone above the LAW He inflated some bonuses by 150% or something like that and his excuse was he thought the budget could support it, With the Millions of Nigerians that cannot afford one square meal. Sometimes i wonder where people's hearts are, just to dey chop sha!
Why do people reason with their yansh instead of head. Go and ask Presido yourself.

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