Speaking at the 2014 budget
performance and 2015 budget defence presentation before the House of
Representatives Joint Committee on Petroleum Resources-Upstream, Downstream and
Gas Resources, Mrs. Alison-Madueke stated that the ministry will expand its
revenue frontiers by enhancing gas operations, expanding retail outlets and
increasing refineries’ capacity utilization while at the same time minimizing
the losses.
The Petroleum Minister noted that
the year 2014 was packed with several industry activities, the most apparent
being the upsurge in divestment and acquisition transactions that are boosting
the number of Nigerian upstream operations.
‘’However, the petroleum ministry
still faced a number of challenges, such as pipeline vandalism, crude oil
theft, declining crude oil prices, inadequate funding. Notwithstanding, with
all hands on deck and the support of the National Assembly, the industry
performed well in 2014,” Mrs. Alison-Madueke said. The minister listed some of
the achievements of the industry in 2014 to include: the increase in
In the production capacity of the
National Petroleum Development Company, NPDC from 130, 000 barrels per day to
205, 007 bpd, the sustenance of crude oil production at an average of over
2.24million barrels per day in spite of all the attendant challenges of crude
oil theft and pipeline vandalism, growing of NPDC into a mid-size Exploration
and Production Company and major gas supplier to the domestic market with over
600 Million Standard Cubic Feet of gas per day supplied through Oredo, Ughelli
and Utorogu gas plant.
Also listed as achievements within
the period are; the enhancement of gas infrastructure through the addition of
new Central Processing Facilities along critical gas pipelines, restructuring
of the upstream gas sector by increasing the delivery price and transmission of
gas with a view to boosting investment in the sector, collaboration with the
Central Bank of Nigeria, CBN to settle outstanding indebtedness of the Power
Sector to upstream gas suppliers in order to ensure continuity of supply,
boosting of gas supply to power with
current ability to support 5, 800 MW of generating capacity with all completed
power plants connected to permanent gas supply lines as well as the attainment
of an average Gas Production of over 8.6 billion cubic feet of gas per day and
over 7.6 bcfd utilization at the end of 2014.
The Petroleum minister said that in
2014 the ministry through the Nigerian National Petroleum Corporation commenced
the critical expansion and construction of major backbone infrastructure which
led to the expansion of Escravos –Lagos pipeline to 2 billion cubic feet per
day capacity, the East-West OB3 Pipeline as well as the Calabar-Ajaokuta-Kano
Pipeline utilizing Eurobonds and IFC Funding.
“ within the period we embarked on
aggressive Gas infrastructure delivery which resulted in the completion of over
450km of gas pipeline, additional 377km pipeline construction is ongoing plus
another 1, 400km at developmental stages expected to commence in 2015, ” she
said. In the downstream sub-sector, NNPC Retail increased operational stations
from 432 in 2013 to 496 in 2014 while stability in the supply and distribution
of petroleum products was achieved within the period.
“After many years of being
inoperable due to pipeline vandalism, we have upgraded many of the our
pipelines and products Marketing Depots across the nation, namely: Port
Harcourt-Aba product; Warri-Benin; Kaduna-Gusau; Suleja-Minna; Kaduna-Jos,
Jos-Gombe, only last week, the Aba Enugu pipeline. All these depots are now
fully operational and will enhance the stable supply of petroleum products
across the country despite the challenges of vandalism,” she said.
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