Basically, Community Relations is the process of building and sustaining a good relationship between NNPC and its host communities in order to provide a conducive environment for its operations.

Regular meetings are held with the communities to identify their needs and decide how best to assist them in actualizing their aspirations.

Any community relation strategy that is adopted must be sustainable enough to meet the requirements of the present generation without compromising the rights of future generations to available resources.

Programmes and infrastructure must be such that they are self sustaining over time and adopt a holistic approach that recognizes the need to sustain the environment and the involvement of communities in the decision making process.

It seeks to provide a framework that gives impetus to the communities to drive and take ownership of the development process.

It means corporate social responsibility. CSR is just another name for good corporate citizenship, where a corporate organization endeavors to identify and meet the social needs of communities in its area of operation. This may be in the form of community assistance, infrastructure development or human capacity building.

Basically, all NNPC strategic business units (SBUs) or or subsidiary companies are required to set up a Joint Community Relations Committee (JCRC) with their host communities. It is the responsibility of this committee to deliberate and select viable and sustainable projects for their communities subject to available funds.

Usually a basket of possible projects is developed and prioritized. Selection is often based on the order of priority for the identified projects.

There is currently no legislative backing for community based programmes and projects embarked upon by oil and gas companies in Nigeria. It is purely at the discretion of the operating companies. However the proposed oil and gas industry reforms will address some of these issues in the Petroleum Industry Bill (PIB) which is currently before the National Assembly

Upstream investment is the investment in oil exploration and production while downstream investment is the investment in every other sector of the oil industry that has to do with LNG, refining, marketing, distribution etc

National Petroleum Investment and Management Services (NAPIMS) is the Corporate Strategic Unit (CSU) that manages the Federal Government’s Investment in the upstream Petroleum industry while the Commercial Investment Division manages NNPC core investments in the service and Downstream sector.

Renewable is energy from a source which can be managed, so that it is not subject to depletion in a human time scale.

E10 is a blend of 10% by volume Ethanol and 90% by volume Gasoline. E10 gasoline (also referred to as Gasohol) differs from PMS in that it contains oxygen which results in more complete fuel combustion thereby reducing harmfulemissions.

E10 is an environmentally friendly form of fuel that has been very well accepted in other countries, e.g. Brazil, India, Thailand, USA, Germany etc. The key to successfully market E10 is to prevent water contamination. These procedures will be applied all along the value chain from the export terminal to the import terminal to the depot and service stations storage tanks. Trucks and pipelines will also be subject to new procedures. Here, proven quality assurance procedures developed by Petrobras will come in handy.

Nothing really changes at least in the early stages except that with the introduction of E10, PPMC now has a new supplier it needs to interact with, i.e., the import traders. Refineries will continue to supply PPMC based on same processes as before however, there may be the need to adapt refinery facilities to handle ethanol especially when the programe is expanded. In terms of how supply and demand management processes are concerned, there will be no change.

The colour of E10 is green connoting environmental friendliness.

GHGs are gases such as carbon mono-oxide and carbon dioxide whose presence in the atmosphere results in the earth’s surface being warmer than it would otherwise be (Global warming).

The essence of making ethanol from biomass is to integrate the Agricultural sector with the Petroleum sector of the economy. This would enable Nigerians reap the benefits of job creation.

One (1) ton of sugarcane yields approximately 95 liters of Ethanol while one (1) ton of cassava can yield up to 150 liters but sugarcane fermentation is easier than cassava.

The Acronym: PPMC means Pipelines and Products Marketing Company Limited. It was incorporated in Nov. 1988 as a wholly owned subsidiary of NNPC. It commenced operation in Jan. 1989

PPMC is a subsidiary of NNPC. NNPC is a Federal Government Corporation created by the merger of Nigeria National Oil Company (NNOC and Ministry of Petroleum Resources through decree 33 of 1977.

PPMC supplies Crude Oil to Refineries for refining and evacuates Petroleum Products from the Refineries for distribution to the domestic markets. It also ensures that daily National demand for Petroleum Products are met by augmenting local supplies from Refineries with import. In addition, PPMC markets other special products such as HPFO, LPFO, Bitumen etc.

LPFO is Low Pour Fuel Oil mainly used in Industries as fuel for generation of power or for firing their heaters. Allocation is made to industries through Marketers. HPFO is mainly exported while Bitumen is allocated to construction Companies as well as the FMWH, SMWH etc.

Marketers are first licenced by DPR, armed with the licence, bulk purchase agreement is entered into with PPMC.

The first port of call will be the DPR which will license the prospective marketer and then sign bulk purchase agreement with PPMC.

Petrol or PMS is about 30 million litres per day,
AGO = 12 million litres per day
DPK = 8 million litres per day
ATK = 2 million litres per day
LPG = 192,000 Kg per day 15,360 cylinders of 12.5kg capacity

We have 22 depots across the Country some are not functioning due to lack of products occasioned by pipeline vandalism and other supply challenges.

Inadequate supply of products due to frequent breakdown of the local refineries, incessant pipeline vandalism and bureaucratic delays in discharging imported products, strike actions by labour unions, product hoarding and diversion by unscrupulous marketers, Government’s policy on subsidy. Dependence on imported products and changes in market fundamentals of Crude Oil and Refined products in the International Markets.

Integrity survey of the pipelines are being carried out to determine those needed to be changed due to age. Government is also currently considering coming up with a master plan on pipelines protection. Ensuring that PROW is clearly delineated. Also, Nigerians need education and enlightenment to appreciate the importance for the protection of the pipelines and other public facilities.

PPMC has a full fledged department with responsibility for enforcement of HSE Industry Regulations with Slogan “SAFETY FIRST” supported by an annual safety week awareness campaign.

PPMC will always be relevant in the transport energy sector since it is already keying into the biofuel development.

Government is already addressing the issues with emphasis on the development of the region through a comprehensive Niger Delta Master Plan. Besides, Government recently established a Ministry of Niger Delta to coordinate development of the oil producing region. This is in addition to the Niger Delta Development Commission (NNDC) which has been in existence close to a decade and currently making appreciable impact in the lives of the people of the Niger Delta. Above all, Government also recently granted amnesty to the militants in the region, a unique move that may enhance peace in the region.

PPMC is a responsible Corporate Organization which has identified with its Host Communities through community assistance & sustainable development projects. It also carries out special programmes aimed at endearing her to her host Communities.

Strict compliance with the Local content initiative of the Federal Government, Deployment of the state of the art I.T infrastructure and Human Resources Development.

1. Pipeline vandalism
2. Subsidy on imported products – loss in revenue
3. Cash crunch
4. Obsolete/old equipment
5. Continued encroachment on pipeline right of way
6. Lack of prerequisite number of personnel
7. Unscheduled shutdown of the refineries which results in disruption of products supply.
8. Difficulty in establishing Letters of Credit for Offshore purchase of critical spare parts.
9. Frequent invitation by members of the National Assembly
10. Favour seekers from powerful and influential Publics.

Pipeline Vandalism is a criminal offence for which nobody is immuned against. Available records have shown that over 5000 (five thousand) arrests have been made across the Country and to date, No, PPMC staff have either been arrested or implicated. The allegation is therefore unfounded.

Demurrage are paid directly to ship owners whom neither staff nor Management have access to. Nigeria also charges the lowest demurrage as its demurrage calculations are based on (AFRA) Average Freight Rate Assessment London tanker brokers’ panel as against the Spot rate charge (Platts). The difference between the two is about 10,000 USD. Ship owners are usually reluctant to come to Nigeria, because of this price differential. Again a number of agencies have roles to play before a vessel is discharged such agencies include NPA, Customs, DPR and Navy.

There are different types of products. The white products i.e PMS - Petrol, HHK – House Hold Kerosene, ATK - Aviation Turbine Kerosene, AGO – Diesel. These are allocated to Major and Independent Marketers. They sell these products in their various outlets.

However, in the past these Marketers use powerful and influential members of the public to obtain allocation for products they do not actually require, and turn around to sell the products to those who actually need it. There are other products mainly for Industrial users who have operational facilities. These products such as LPFO, SRG, Bitumen & LPG are allocated to users directly. However, some of these industrial users prefer to sell the allocation instead of using the product in their factory. Machinery has been put in place to identify specific industries engaged in this bad practice for appropriate sanction. HPFO is mainly for export.

PPMC has 15 Pump Stations out of which
8 are standing alone Pump Stations
3 are tied to the Refineries and
4 are tied to the Depots

PPMC transport all refined products through the same pipelines except Mosimi – Satellite product line where you have different pipelines for different products. A different pipeline is used for transporting Crude.

PPMC only chatter Vessels to Ship products. It also owns some Vessels.

PPMC secure her pipelines through the use of Community guards, Nigeria Mobile Police Force, Nigeria Military, National Security and Civil Defence Corp also assist.

PPMC distributes products to the riverrine areas through floating Mega Stations and some filling stations with authorized licence to sell petroleum products in the Area.

Yes, PPMC markets LPG (Liquefied Petroleum Gas)

Yes, PPMC exports, HPFO and sometimes other products when they are surplus.

No. PPMC does not market Crude oil.

PPMC transports products using road tankers and coastal vessels.

One can buy Kerosene from PPMC only if one has authorized storage facility and is a registered marketer with PPMC.

PPMC grants credit facility to some marketers it adjudged to be credit worthy in terms of their capacity.

Provision of N3.00 by Petroleum Product Pricing Regulatory Agency (PPPRA) to pay for Private Depots facilities in the interim.This is to enable big vessels discharge on time and depart.

The total landing cost ex-filling station minus fixed pump price by PPPRA plats.

PPMC is carrying out a campaign to encourage members of the public through participation in Trade fairs and exhibitions. PPMC price is N55.56 per litre.

21.875 litres.

PHRC, 210,000bp/d

PMS, Ago, DPK, fuel Oil and LPG.

Mainly, aged parts, infrequent TAM and activities of the militants.

125,000bp/d

National Engineering and Technical Company Limited, it is a subsidiary of NNPC

The drive for Federal Government to own and have an indigenous engineering capability to design and build plants and facilities for the nation’s oil and gas and other allied industries. Also, it is the premier indigenous engineering company with strategic vision of providing basic and detailed Engineering. NETCO was established in 1989.

1. Rendering services in the oil and gas industry;
2. Feasibility studies, conceptual design, basic and detailed engineering design.
3. Procurement, construction, supervision and project management.
4. Quality assurance, quality control and environmental consulting.
5. Facilitation of local content.

August 1990.

ExxonMobil, Chevron, Shell, AMEC, KBR, Nigeria Agip Company, Saipem, Addax, TSKJ Consortium, TechnipCoflexip, NLNG, Ecergy among others are the main clientele of NETCO.

Nigerian Gas Company Limited. It was established in 1984. with a vision to be the preferred Gas Company to its present and future customers.

Natural gas is derived from crude oil wells and natural gas wells underground the bowels of the earth in the reservoir.

Yes. We have natural gas in two forms. One is associated and the other is non-associated gas.

Associated gas comes from crude oil wells along with other hydrocarbon and impurities like mud, water, sand, etc. While non-associated gas comes from dry gas well with little or no impurities.

No, we do not produce gas, we buy gas from gas producers.

The producers are the major international oil companies, e.g. SPDC (Shell), CNL (Chevron), etc, which are involved in major oil prospecting and oil production in Nigeria.

Methane.

Gas is transported through the pipelines.

Natural gas is safe, clean, cheap, and environmental friendly.