• Seek dollars to stockpile petrol ahead of Christmas, decry multiple taxation • NNPC: Egina to add 200,000bpd to Nigeria’s oil output by 2018
Despite
the preferential foreign exchange rate given to oil marketing firms by
the international oil companies (IOCs), aimed at sustaining the
importation of petrol into the country, the Major Oil Marketers
Association of Nigeria (MOMAN) has decried the non-allocation of the
same preferential FX rate for the importation of aviation fuel.
MOMAN
has equally condemned the multiple levies, taxes, fees and charges on
imported products by agencies of the same or different tiers of
government, and urged the federal government to summon the courage to
halt the annual fuel crisis during the yuletide season by empowering
marketers and importers with the required FX to stockpile products ahead
of the Christmas and New Year festivities.
In
a communiqué issued yesterday by the committee of chief executives of
Forte Oil Plc, Mobil Oil Nigeria Plc, Total Nigeria Plc, Oando Plc,
Conoil Plc and MRS, the marketers stated that the cost of petrol at the
international market had soared to $548 per tonne and called on the
federal government to ensure that the dollar/naira parity should stay at
a level that would sustain the sale of petrol at the open market price
band of N135-N145 per litre.
Owing
to the scarcity of FX, the Minister of State for Petroleum Resources,
Dr. Ibe Kachikwu, a few months ago, negotiated a deal with the IOCs that
prioritised oil marketers and allows the oil multinationals to sell FX
directly to their downstream counterparts at a preferential rate in
order to maintain the peg on the price of petrol at N145 per litre.
In
the communiqué, the major oil marketing companies yesterday
acknowledged what they described as the serenity in the supply of petrol
in the country and extended their appreciation to the Ministry of
Petroleum Resources, the NNPC and all other stakeholders.
“We
note that there are some few glitches here and there and we call on the
regulatory agencies to face these challenges with a view to nipping all
nefarious activities associated with supply and distribution in the
bud.
“Unknown
to the general public, the private sector has depended on foreign
exchange supplied into the system by the IOCs (international oil
companies) through the intervention of the Hon. Minister of State
Petroleum Resources.
“In
order for the private sector to continue to play its role in the
importation of PMS (petrol), the dollar/naira parity should stay at a
level that will ensure that the open market price band of N135-N145 is
maintained. This is especially so because the CIF price of petrol is
rising in the international market. Today it is approximately $548 per
tonne,” the CEOs explained.
They
applauded the effort of the petroleum minister, but drew the attention
of government to the product situation during the winter months, which
coincide with reduced output of petrol in refineries abroad and
increased activities of motorists in Nigeria as a result of the dry
season and festive period.
In
this regard, the oil marketers urged the government to summon the
required courage to halt the annual ritual of product outages during the
yuletide season.
According
to MOMAN, the federal government should empower marketers and importers
with the required FX to stock pile products in the country well ahead
of the Christmas and New Year festivities.
The
association also blamed the intermittent tightness in the supply of
aviation fuel to the airlines, to the non-allocation of FX for the
importation of jet fuel.
This situation has defeated the government’s intention of making Nigeria the aviation hub of the sub-region, they said.
On
the issue of multiple taxes, the marketers noted that the government
has the right to apply legitimate taxes, levies, fees and charges on
goods and services.
The
companies, however, condemned a situation where two agencies of the
same state government apply the same law to charge different taxes or
the states and federal governments are charging the same taxes on the
same goods and services, and described the multiple taxes and levies as a
disincentive to business.
The
communiqué, which was signed by the Executive Secretary of MOMAN, Mr.
Obafemi Olawore, also urged all tiers of government to review their tax
policies and apply a single tax regime for the same service provided.
The
committee of CEOs also lamented the deplorable condition of roads and
charged the government to quickly fix the roads which have become traps
leading to the loss of lives and property.
“We
wish to draw the attention of stakeholders and regulators to safety
regulations especially in the gross tonnage of tankers and the ability
of the road to absorb the weight of loaded tankers.
“We
also wish to appeal to the government to reduce the import duty on
these haulage trucks to enable transporters meet the new replenishment
policy which forbids the engagement of old or used trucks.
“The safety implications of not replenishing an aging truck fleet cannot be over-emphasised,” said the oil firms.
The
oil marketing firms also called on the relevant agencies of government
to review, monitor and enforce set standards in line with international
best practices in the standardisation of trucks, retail outlets and
products specifications.
Egina to Add 200,000bpd by 2018
In
a related development, NNPC yesterday projected that Nigeria’s crude
oil production was expected to increase by 200,000 barrels per day (bpd)
by the first quarter of 2018.
This,
according to the state-run oil firm, would be made possible with the
commissioning of the Umbilical Flow-lines and Risers (UFR) for the Egina
Deep Offshore Project.
Speaking
during the load-out ceremony of the UFR for the Egina project by Saipem
Contracting Nigeria Limited in Port Harcourt, Rivers State, the Group
Managing Director of the NNPC, Mr. Maikanti Baru, also restated the
commitment of the corporation to the development of local content in the
oil and gas industry.
A
statement by NNPC said Baru disclosed that the module would guarantee
the drilling of the first oil from the 200,000bpd Egina field by the
first quarter of 2018.
He
commended Saipem for the successful completion of the Egina UFR
project, including the engineering, procurement, construction,
installation and pre-commissioning of 52 kilometres (km) of oil
production and water injection flow-lines; 12 flexible jumpers; 2km of
an oil export line; 20km of gas export pipelines alongside the
installation; and commissioning of 80 kilometres of steel tube umbilical
and mooring of the FPSO and offshore loading terminal. (OLT).
He
said: “What is being celebrated is the efficacy of the Nigerian Content
Act and the NNPC is strongly committed to the successful implementation
of all provisions of the Act.”
Also
speaking, the Managing Director of Total, Nicholar Terahz, said the
Egina project was the largest contributor to the development of the
Nigerian content in the oil industry, being the largest offshore project
currently going on in the country.
He
noted that the employment opportunities and technology transfer the
project generated contributed significantly to the nation’s economy.
In
his remarks, the Managing Director of Saipem, Guido D’Aloisio, said the
performance of Nigerian engineers on the project was commendable,
adding that the country would be proud of it.
The
Executive Secretary, Nigerian Content Development and Monitoring Board,
Simbi Wabote, who was represented by the board’s Director, Planning,
Research & Statistics, Daziba Patrick Obah, said that the quality of
jobs done on the project by Nigerians and the gains thereof would
further deepen Nigerian content in the oil industry.
Discovered
in 2003, the Egina field is located at some 20km from the Akpo field
within Oil Mining Lease (OML) 130 and is situated in a water depth of
1,750m.
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