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Tag: Opposition

  • We’re not opposed to Agip Oil share sales to Oando -NNPCL

    We’re not opposed to Agip Oil share sales to Oando -NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has said that it was never opposed to the sale of the shares of Agip Oil Company to Oando Plc.

    In a statement signed by the Chief Corporate Communications Officer of the company, Garba Deen Muhammad said the letter to Agip Oil did not indicate it was opposed to the deal.

    In a letter to the Managing Director of Nigerian Agip Oil Company Ltd, dated September 4, and signed by Managing Director of NNPC E&P Limited, Ali Muhammed Zarah, NNPCL said if the deal goes through, it would have far-reaching contractual/legal implications in relation to the joint Operating Agreement dated July 1991 governing the operations of the NAOC/NEPL/OOL Joint venture.

    NNPCL said in the letter that its consent as a member of the joint venture member operating ENI’s onshore asset, was not obtained before the planned divestment to Oando. This it said was against contract rules governing the joint venture operation, and could affect the deal.

    The statement reads, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct.
     

    “NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter.

    “NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.”

    Oil major Eni had in a press release saying that it had signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

  • IPMAN opposes state governments’ bid for downstream regulatory control

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed strong disapproval towards the recent endeavours of various State governments to assume the role of regulators in the Southeast’s downstream petroleum operations.

    Mr. Chinedu Anyaso, the Chairman of IPMAN’s Enugu Depot, which oversees Anambra, Ebonyi, and Enugu States, conveyed these concerns during an interview in Awka on Sunday.

    Anyaso underscored that State governments lack the necessary standardized and approved equipment essential for accurately measuring dispensing machines.

    Moreover, he asserted that these governments do not possess the authority to oversee the intricate operations within the downstream petroleum sector.

    IPMAN has vehemently criticized the actions of state governments, which have involved entering marketers’ establishments under the pretense of price enforcement and dispensing machine monitoring.

    Anyaso highlighted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) remains the sole constitutionally-empowered entity responsible for regulating downstream sector activities. He emphasized that if states intend to collaborate in this sphere, they should work in conjunction with NMDPRA.

    In his explanation, Anyaso reinforced that state governments lack the requisite authority to perform regulatory functions concerning downstream operators. Their lack of expertise is evident, and even the instruments they employ—termed “seraphim bottles”—have not been certified as properly calibrated for accurate measurements.

    “NMDPRA is the only body empowered by the Petroleum Industry Act (PIA), Sec 48 (1), to carry out all the regulatory activities in the sector.

    “IPMAN Enugu depot condemns the invasion of our filling stations; Anambra government did it and we protested but most recently, the Enugu State government is doing the same thing with deliberate effort to blackmail some of our members.

    “This is sheer overzealousness on the part of some aides of governors. We call on our governors to call these people to order, to avoid putting IPMAN on a collision course with state governments,” he warned.

    Anyaso said IPMAN was not absolving its members of sharp practices but insisted that state governments should collaborate with NMDPRA, established by the Federal Government to supervise the sector if the need arises.

    “IPMAN is not by any means saying that all our members are free from malpractice. We are not holding brief for them either; all we are saying is that things should be done properly by the appropriate authority.

    “NMDPRA has offices in almost all the states, so state governments should work with them. On our part, IPMAN has a taskforce as an internal mechanism to check infractions by our members,” he said.