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NNPC to obtain gas from PH refinery during repairs – GMD

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  • Says $1.5bn project for rehabilitation, not turnaround maintenance

The Nigerian National Petroleum Corporation (NNPC) has said in 18 months gas will be obtained from the Port Harcourt refinery while the plant is still undergoing a total rehabilitation.

It said this would eventually scale up until the contractors leave the site, unlike a new one requiring the whole plant to be completed before it could start functioning.

The Group Managing Director of the corporation, Mele Kyari, said this in Abuja on Monday, while reacting to controversies and claims by some Nigerians on the $1.5bn meant for the rehabilitation project.

He said the $1.5 billion approved for refinery project was for its total rehabilitation and not turnaround maintenance

He said that the refinery would work in optimal capacity at the completion of rehabilitation programme.

According to him, the loan will be repaid as soon as the refinery becomes functional, adding that a refinery can produce a margin of $4-$7 per barrel which will be used to finance the loan.

“We are not doing turnaround maintenance; we are doing rehabilitation of the refinery, and it is very different; it means that we are replacing certain major components.

He disclosed that the actual cost of the project is about $1.34 billion, noting that the additional expenses include taxes and other duties that could come up.

Kyari said, “The real cost is $1.34 billion. Even then you could argue and say why you wouldn’t build a new refinery. We have also seen some curious comparisons that shell sold one of its refineries for $1.2 billion and that it’s even better than our own.

“This is mundane. Even a Google search will reveal that it was built in 1915 and it’s a 107,000 barrels per day refinery. It has been on shut down by the regulators since early last year. Not only that, when you buy a refinery you buy its assets and the liabilities.”

He maintained that many people do not know the financial transactions that go into some negotiations, saying that it is needless to compare a combined refinery of 210, 000 barrels to a much smaller and much older refinery which has many issues with regulators.

“Simple due diligence was not conducted before those comments were made. They have asked why we don’t just build a new one. What does it take to build a refinery of this status today? It’s anywhere between $7 billion to $12 billion to construct a refinery of this nature. This is what we call battery limit construction. That’s the estimate you see in the public space.

“There are things you do outside the battery limits like the tank and other utilities that are never accounted for when the estimates of this nature are done. That’s about 25 per cent of the total cost. So, when you say refineries can be built for $6 billion or even $10 billion, you should also think about the 25 per cent you will add to it,” Kyari said.

He said that another option would have been to scrap the current one and build a new one, but added that the resources are not available while the banking sector is not ready to put in the money because they no longer fund oil projects of that magnitude.

Kyari said that the refineries are national assets that must be used to ensure energy security for the country, maintaining that if a new refinery is started, it cannot become functional in less than four years, which means Nigeria will keep importing in the next four years.

According to him, even for national strategic purposes, that would be a wrong decision, with the last turn-around-maintenance of the Port Harcourt having been done 21 years ago.

The GMD stated that the current huge cost of rehabilitation was because the last turn-around-maintenance was badly carried out.

He said all stakeholders and agencies of the government were involved in the process leading to the award, saying that it wasn’t a TAM that was currently being carried out but total rehabilitation, which means that major components will be replaced, new items will be introduced and an upgrade of the plant.

Kyari argued that the process went through the Bureau of Public Procurement and other such bodies, saying that he was confident that the best decision was taken after the tender process.

He stressed that the process was delayed for the past 10 years because of unwarranted interferences and strategy problems, including going to the original refinery builders, which he said was the wrong thing to do.

Kyari said that the borrowing angle was introduced because typically, lenders will give conditions, one of which is an Operations and Maintenance contract arrangement, meaning that NNPC will not operate the plant, as it will be done in consonance with what he described as the best global practice.

Business

Osinbajo launches Kemi Adeosun’s online thrift-for-charity initiative

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Former Minister of Finance, Kemi Adeosun, has launched “Dash Me Store”, an online thrift-for-charity initiative, with Vice-President Yemi Osinbajo as a special guest.
The store, inaugurated on Sunday and established to mobilise resources for distribution to vulnerable people in the society through grassroot charities, provided an opportunity for the former minister to make her first public appearance after leaving office in 2018.
Adeosun resigned as minister in 2018 over a case of a forged National Youth Service Corps (NYSC) certificate she presented as part of her credentials.
She had maintained a low profile after the incident.
She established the Dash Me Foundation, a vehicle being used for the online charity initiative.
In her remarks, Adeosun said the organisation would work closely with charitable organisations in the grassroots to ensure that funds and other materials donated via the Dash Me Store would get to actual beneficiaries.
Speaking at the event, VP Osinbajo said one factor responsible for the impactful implementation of the social investment programmes of the Federal Government was the realisation that one could not reach Nigerians without a plan for the grass roots.
The vice-president lauded Adeosun for the initiative which he described as the first of its kind in the country.
“I am excited to be here for several reasons, but most of all because of Mrs Adeosun’s commitment to the notion that all service to man is actually service to God, and she took that very seriously,” he said.
The VP also said, “This is why, as minister, she prioritized the Social Investment Programmes, when for the first time, the country voted almost N500bn of our annual budget to welfare programmes which are called the Social Investment Programmes, which involved engaging 500,000 young men and women, and also giving microcredit to about two million traders and a home-grown school feeding programme for 9.5 million children daily in public schools across the country.
“I am therefore really not surprised that she has decided to use some of her enormous talent and influence to establish an organization that raises funds and provides resources for indigenous grassroot charities working with orphaned and vulnerable children, disadvantaged youth, and victims of domestic violence.
“What I think is happening here is that philanthropy is not like it used to be when all you needed was a good and kind heart and you didn’t need to plan or organize as you would a business for-profit.
“What Kemi and her team have done is to bring the new notion of social enterprise to this project. Philanthropy runs with the discipline, attention to detail, and financial prudence of a successful business, and she can do all of that, and I am sure her team is imbibing that, given her background in finance in both private and public sector.”
Osinbajo added, “The idea of this thrift-for-charity store is brilliant and the first of its kind in Nigeria. It is a unique model which does not just give to the needy in the conventional way of merely handing out donations.
“It is an innovative and structured way of aggregating donations to earn income to transform the lives of the vulnerable and needy while creating jobs in the process.”

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Full operation begins on Lagos-Ibadan rail line tomorrow – NRC

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The Nigerian Railway Corporation has said it will begin full operation on the standard gauge rail line from Lagos to Ibadan on Tuesday.
The NRC said this is a statement signed by the Lagos District Manager, Mr Jerry Oche, in Lagos on Sunday.
According to him, the Lagos Ibadan Train Services will now be available in the mornings from Tuesday.
“The updated timetable for Tuesday to Friday is as follows: Lagos to Ibadan: 8:00 a:m from Mobolaji Johnson Station at Alogo megi Ebute – Meta Lagos. Also, the train will take off from Ibadan to Lagos: 8:00 am from Obafemi Awolowo Station at Moniya.
“The train will take off from Lagos to Ibadan: 4:00 pm from Mobolaji Johnson Station Alagomji, while from Ibadan to Lagos: 4:00 pm from Obafemi Awolowo Station at Moniya.
“The standard gauge train schedule on Saturday from Lagos to Ibadan: 8:30 am from Mobolaji Johnson Station at Alagomeji while the train will leave from Ibadan to Lagos: 8:30 am from Obafemi Awolowo Station at Moniya.
“For Saturday evening from Lagos to Ibadan: 6:00 pm from Mobolaji Johnson Station at Alagomji, while the train will take off from Ibadan to Lagos: 6:00 pm from Obafemi Awolowo Station at Moniya,” Oche said.
He said that the Alagomeji, Abeokuta, and Moniya were still the stop stations of the Lagos Ibadan Train Services.

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Business

Lagos, Coscharis, Samsung woo more passengers into water transportation

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L:R: General Manager, Marketing and Corporate Communications, Coscharis Group, Abiona Babarinde, General Manager, Lagos State Consumer Protection Agency, Afolabi Solebo, Senior Legal Officer, Lagos State Lotteries and Gaming Authority, kanyinsola , Managing Director, Lagos Ferry Services, Ladi Balogun, Chairman, Ikoyi Obalende LCDA, Rauf Atanda Lawal, General Manager Lagos State Waterways Authority, Damilola Emmanuel and MD, energicity elivate 9ja, George Ogan during a press conference on lagferry " smilin and sailing raffle promo" at the five cowries terminal Falomo.

As part of efforts to decongest the road and increase the number of commuters of water transport, the Lagos State Government has kick-started a raffle promo, Sailing and Smiling raffle to encourage more people to embrace water transportation.

Speaking at a press conference held at the Five Cowries Terminal to commence the promo at the weekend, the Managing Director, LAGFERRY, Ladi Balogun, said commuters stood to win a lot of prizes when they purchased Lagos Ferry Services (Lagferry) tickets.

He said the mega promo being held in conjunction with a private firm, Elivate9ja, and supported by other companies such as Coscharis Group and Samsung, was designed primarily to attract more commuters into waterways travel as well as reward them for their patronage.
His words: “As you are all aware, we recently took delivery of seven additional new boats to increase our fleet to 20. These boats will be deployed in several routes within the state. We will have more capacity to ferry more people; so we decided to use this promo as an incentive to attract more Lagosians to embrace a means of transportation that is safe, fast, devoid of traffic and very reliable.”
Balogun, who used the opportunity to reel out some of the agency’s achievements in the last one year, informed that they had moved about 502,000 passengers across the waterways between February 2020 and now.
He said, “Since commencement of operation, the agency has never recorded any accident. We are enabling commerce by providing logistics solution to business owners, moving their trucks and cargoes through the waterways within Apapa. We are the only operator that can boost of having 20 number of boats in its fleet, thanks to Mr Babajide Sanwo-Olu who is showing unrivalled commitment to improve water transportation. “And of course, we are promoting tourism through regular charter services and we recently ferried the Nigeria male soccer team, the Super Eagles, to Benin Republic for their AFCON tournament.”
In his goodwill message, the General Manager of LASWA, Mr Oluwadamilola Emmanuel, commended the collaboration from both the public and private sector, adding that no single sector could harness its potential alone.
While calling for more private sector participation in the water transportation business, he commended Lagferry for the initiative and the support of other agencies to making the promo possible.
On why the ultimate weekly price is a car, Emmanuel explained that the government was trying to promote the “park and ride” culture, “where you drive to any jetty in the state, park your car at the ample park space provided at the jetty and board a boat to your destination, come back, pick your car and head home.
“The Lagos State Government is committed to the intermodal transport system of road, rail and water, all to be connected through one means of payment system called the cowry card.”
He said
Also speaking, the General Manager Lagos State Consumer Protection Agency, Mr Afolabi Solebo, said that with the involvement of consumer protection agency that it had showed the level of sincerity of all the stakeholders involved in the promo.
Solebo assured passengers of protecting their rights to the last minute and urged them to embrace water transportation as alternative to road.
The Chief Executive Officer, Lagos State Lottery and Gaming Authority, Mr Bashir Are, represented by Senior Legal Officer, Oyinkan Kusamotu, said they would ensure compliance to the promo rules.
He commended the Lagferry for creating awareness for Lagos residents to shift from road to water transportation in the state.
Chief Executive Officer of Elivate 9JA, Mr George Ogan, said the partnership would bring excitement for ferry users through the buying of Lagferry tickets.
He explained that there were lots of prizes such as microwaves, washing machines, television sets and cars.
Ogan said that there would be refreshment for early passengers of Lagferry during the promo.

 

 

 

 

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