The Nigerian National Petroleum Corporation (NNPC) has said it recorded a trading surplus of ₦17.16 billion in April.
 
In a statement on Thursday in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the surplus indicated a ₦5.43 billion improvement, representing 46.29 percent on the trading surplus recorded in March.
 
According to him, the trading surplus was part of the highlight of the corporation’s Monthly Financial and Operations Report for April, 2018.
 
He said the report is the 33rd edition since NNPC commenced the publication of its financial and operations report on a monthly basis as part of efforts to instill a culture of transparency and keep stakeholders and the general public informed of its activities.
 
The NNPC boss added that the trading surplus was achieved through a combined higher performance by the upstream, midstream (refineries) and downstream sectors as well as a reduction in Corporate Headquarters’ operational expenditure.
 
He quoted the report to have said, “This enhanced performance is attributable to robust revenues from sales of crude oil and petroleum products by NPDC and PPMC as well as the upsurge in refineries’ performance, particularly in the Port Harcourt Refining Company (PHRC).”
 
On the gas production and supply front, the report indicated that the average daily production for April, 2018, stood at 8,054.46 billion cubic feet (bcf), out of which an average of 835.27 million metric standard cubic feet (mmscf), equivalent of 3,283 megawatts of electricity, was supplied to the power sector daily during the period under review.
 
“The result when compared with that of April, 2017, implies an increase of 496mw of power generated relative to same period last year,” Ughamadu said, quoting the report.
 
It further showed that in the period under review, a total of 1.61 billion litres of Premium Motor Spirit (petrol) was supplied by NNPC in furtherance of the zero fuel queue policy of the Federal Government.
 
The NNPC said it recorded a 48.21 percent reduction in the rate of pipeline vandalism which fell to 166 from 224 vandalized points in the previous month.
 
According to the report, the Aba-Enugu pipeline segment accounted for 78 vandalized points, representing 84.78 percent of total vandalized points on the nation’s network of products pipelines.
 
 
Source: The Ripples

French oil major, Total and the Nigerian National Petroleum Corporation (NNPC) as well as their project partners will launch Egina crude at this year’s Asia Pacific Petroleum Conference (APPEC) in Singapore later this month.

This was contained in a copy of an invitation to the conference on Wednesday, Reuters reports.

The Singapore’s APPEC, scheduled to hold between September 24 – 26, is one of Asia’s biggest annual petroleum industry gatherings, during which producers, refiners and merchants sign and renew supply deals and exchange information.

Last month, a $3.3 billion worth Egina Floating Production, Storage and Offloading (FPSO) had sailed from LADOL Island in Lagos to its oil field located in Oil Mining Lease (OML) 130 located some 130 kilometers off the coast of Nigeria at water depths of over 1,500 meters.

The oil field was projected to raise Nigeria’s crude oil production by 200,000 barrels per day, an approximate of 10 percent of the country’s total oil production output, when it comes on stream in December.

The project, built by Samsung Heavy Industries of Korea (SHI) for the Egina oil field was primarily operated in Nigeria by the global oil giant, Total, at a cost of $16 billion.

In October last year, the Egina FPSO had sailed from the quayside at Samsung Yard in Geoje, South Korea, before arriving at the Samsung Yard (SHI-MCI FZE quayside) in Lagos in January 2018.

Thereafter, it was fabricated and integrated locally at the yard by Samsung Heavy Industries Nigeria Limited to accelerate the pace of Nigeria’s industrial fabric, transfer of technology and make the nation the hub of FPSO integration in Africa.

The FPSO, weighing close to 220,000 metric tons and measuring 330 meters long by 60 meters wide, is reputed as the largest ever built by Total.

Also, Saudi Arabia’s state-owned oil giant Aramco will team up with South Korean refiner S-Oil Corp for a joint reception at the conference, according to two industry sources.

Aramco became the single largest shareholder of S-Oil in January 2015, part of its drive to expand its footprint in the downstream petroleum sector and establish commercial offices in global oil trading hubs like Singapore.

   

Vanguard...

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Tuesday said there were no plans by Federal Government to sell its stakes in the Nigerian Liquefied and Natural Gas (NLNG) Limited.
 
The Federal Government has 49 percent equity holding in the NLNG, Shell Gas B.V owns 25.6 percent, Total has 15 percent of the shares, while Eni international owns 10.4 percent share holding.
 
The minister made the disclosure while answering questions from the House of Representatives Committee on Gas Resources and Allied Matters in Abuja.
 
Kachikwu, who was represented by the Director of Gas Resources in the ministry, Esther Ifejika, noted that the ministry was not aware of any plan to sell the company.
 
According to the minister, “The ministry is not aware of any plan by the Federal Government to sell the NLNG.”
 
In May, the House had ordered an investigation into the allegation, the order followed a motion raised by Hon Randolph Oruene-Brown over plans by the Federal Government to generate money to inject into the nation’s economy.
 
“(The House is) aware that the Minister of Budget and National Planning, Udoma Udo-Udoma, stated that one of the ways to fund the plan would be through the sale of some national assets and the proceeds reinvested in the economy to raise the needed capital for infrastructural development.
 
“(The House is) also aware that the NLNG is one of the most successful ventures that Nigeria has embarked upon when it started from train one through to the sixth train and now the seventh train in the offing.
 
“The House is worried that the Revenue Mobilisation Allocation and Fiscal Commission and the Nigeria Labour Congress, among other organisations, have seriously frowned on this move and warned the Federal Government against the proposed sale of national assets, especially the NLNG,” Oruene-Brown had said.
 
 
Source: Business Insider
NNPC, Nigeria’s cash cow refused to release oil money for sharing
 
The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to set up a subsidiary to provide refueling services to ships and other ocean-going vessels.
 
A statement by its spokesman, Mr. Ndu Ughamadu, in Abuja on Wednesday, said the move was to consolidate its foothold on the shipping business in Nigeria and boost profitability.
 
It said the Group General Manager, NNPC Shipping, Mrs. Aisha Katagum, disclosed this in the corporation’s in-house journal. She said: “Actually, the NNPC Group Managing Director (GMD) is also very keen on that.
 
“He has directed the Corporate Planning and Strategy (CP&S) Division to come up with a business model for us to see how it could operate.”
 
According to her, the bunkering subsidiary is most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shipping Division. She added that the proposed company would likely be domiciled in the NNPC Shipping Division too.
 
“I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.” She said
 
Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping Division. While Nikorma engages in shipping and transportation of energy products, Marine Logistics on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector.
 
The Marine Logistics have the mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.
 
 
NAN..
Indications have emerged that the nation may soon begin to earn less from crude oil as the monthly volume of Nigerian oil imports into the United States dropped to 2.89 million barrels in May, the lowest since February 2016.
 
Crude oil accounts for over 70 percent of the Nigeria’s revenue and more than 95 percent of its foreign exchange earnings, while the United States (U.S) was the country’s fourth largest export destination, according to a recent Foreign Trade Statistics by the National Bureau of Statistics (NBS).
 
The latest data obtained by our correspondent from the US Energy Information Administration (EIA) during the weekend showed that the United States reduced its importation of Nigerian crude oil by 62.65 percent from 7.75 million barrels recorded in April.
 
Nigeria may start earning less as U.S slashes oil importation by 62%
 
The depreciation in the demand of the commodity, which was the largest monthly decline in more than three years, was occasioned by the increase in the production of the U.S crude.
 
Read Also: Nigeria earns $26bn from oil in 7 months as oil prices rise
 
An analysis of the data from the statistical arm of the U.S Energy Department revealed that, the country imported 10.03 million barrels of Nigerian crude in January.
 
It, however, reduced the importation of the commodity for the first time this year from 10.34 million barrels in February to 3.92 barrels in March, indicating 62.08 percent drop. In April, 2018, the U.S bought 7.7 million barrels of the commodity.
 
Within the first five months of 2018, the total Nigerian crude imports by the U.S stood at 34.93 million barrels, this is over 20 percent drop from 43.83 million barrels imported in the corresponding period last year.
 
The U.S crude imports from Nigeria was on a steady decline since it peaked 368.42 million barrels in 2010, it fell to 21.46 million barrels in 2014 and 19.86 million barrels in 2015 following the drop in the prices of crude oil in the international market.
 
However, the oil imports rose to 75.81 million barrels in 2016 and further increased to 112.92 million barrels in 2017.
 
But since crude oil production in the U.S began to boom in recent months, reaching 10.9 million barrels per day (mbpd) in June and 11 mbpd two weeks ago from 2.33 mbpd in April, the country has continued reduce its crude importation.
 
The EIA had reported last week that the U.S net import of the commodity fell by 1.05 mbpd to an average of 6.36 mbpd, with 10.7 mbpd and 1.7 mbpd as projections for the country’s crude oil production for 2018 and 2019, respectively.
 
 
Ripples news.
 
Nigeria’s revenue from oil export hit an estimated $26 billion between January and July this year as the price of global oil benchmark, Brent crude, rose to the highest level in two weeks on Wednesday.

According to the new OPEC Revenues Fact Sheet recently released by the Energy Information Administration (EIA), revenue from oil export rose by 30 percent to $34 billion in 2017 from $26 billion in 2016.

The oil price appreciation followed a sharp drop in the United States crude inventories and the country’s sanctions on Iran, the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), causing tighter supply of the commodity.

The price of Brent crude, against which Nigeria’s oil is priced, rose by $1.38 to $74.19 per barrel, the highest since August 8, while US West Texas Intermediate (WTI) gained $1.28 to $67.12 per barrel.

Nigerian economy was battered due to the fall in the prices of crude oil in the international market in 2014, at the end of 2017, a development which led the country into its worst economy crisis since 1987 in 2016.

However, the country officially emerged from recession in Q3 2017 after two consecutive positive GDP growth. The economy shock occasioned by the drop in crude price prompted the Federal Government to devise other means to diversify the economy away from oil into solid minerals, agriculture, among others to forestall a recurrence of the 2016 economic distress.

But while the Mining and Quarry sector of the economy grew by 14.85 percent (year-on-year) in Q1 2018, 30.25 percentage points and 4.14 percentage points higher than the same quarter of 2017 and Q4 2017, the agriculture sector grew by 3.00 percent (year-on-year) in real terms in the review quarter, a decrease by 0.38 percentage points from the corresponding period of 2017 also a decrease by 1.23 percentage points from the preceding quarter.

Currently, Nigeria still rely on crude oil as its major source of revenue, accounting for about 70 percent of its total revenue and over 90 percent for its export earnings.

The Brent crude price rose to $66.87 per barrel from around $53 per barrel at the beginning of the year.

In May 2018, Brent rose above $80 per barrel for the first time since November 2014 but dropped afterward amid rising US crude inventories.

 

Source: The Ripples

 
A ship captain and 9 screw members of a local vessel, MV Peace, were on Monday sentenced to 12 years imprisonment by a Federal High Court in Lagos, Nigeria for oil theft.
 
The convicts are Captain James Abatan, Wasiu Owonikoko, Patrick Ameh, Johnson Ademola, Felix Otto, Chigozie Oguike, Olu Salisu, Jomo Gadagbe, Kunle Oba Saheed and Rasheed Adio.
 
The Economic and Financial Crimes Commission, EFCC which filed the charges against them alleged the crew members engaged in the dealing of 200 metric tons of petroleum product without lawful authority.
 
Justice Mohammed Idris sentenced each of the 10 crew members to a jail term of 12 years.
 
He ordered that the vessel and the recovered petroleum product should be forfeited to the Federal Government.
 
In the course of the trial, the EFCC called three witnesses and tendered eight exhibits to prove the charges against the convicts.
 
In his judgment on Monday, Justice Idris said the prosecution proved the allegation against the convicts beyond a reasonable doubt.
 
The judge held, “The prosecution has been able to lead overwhelming evidence against the defendants. The defendants have not been able to adduce evidence capable of puncturing the evidence put forward by the prosecution. I, therefore, find all the defendants guilty as charged.”
 
In his allocutus, counsel for the convicts, Dada Awosika, pleaded with the judge to temper justice with mercy, saying his clients were victims of circumstances.
 
“They only acted on the instruction of the vessel owner. They are mechanics, stewards, generator repairers. None of them gave evidence of having an interest in the product,” the defence counsel said.
 
But the prosecutor urged the judge to reject the plea for leniency and impose the maximum penalty, so as not to encourage others to engage in the criminal act.
 
Ruling, Justice Idris held, “I have listened to the plea of allocutus; there is no doubt that they (convicts) are first-time offenders. It should be noted that this crime is rampant and it is almost crippling the economic survival of the country.
 
“In this view, I hereby sentence the convicts to five years on count one of conspiracy, five years on count two of dealing in petroleum product without an appropriate licence, and two years on count three. The jail terms are to run concurrently.”
 
 
Vanguard.
The United State (U.S) product imports from the Organisation of the Petroleum Exporting Countries (OPEC) member countries dropped by 23 thousand barrels per day (tbpd) compared to a month before to stand at 301 tbpd.
Besides, OPEC has raised world oil demand by 1.65 million barrels per day (mbpd) in 2018 in its July monthly market report, unchanged from the previous month’s report, with expectations for total world consumption at 98.85 mbpd.
 
According to OPEC in its July oil market report, this represents a 14 per cent share of total US product imports.
 
In terms of the product supplier share, Canada and Russia maintained their position as first and second supplier to the US with shares of 25 per cent and 10 per cent, respectively.
 
However, imports from both countries were lower than the previous month by 121 tbpd and 86 tbpd, respectively.
 
India was the third largest product supplier to the US, up by 65 tbpd from the previous month.
 
Canada remained the top supplier to the US in April, accounting for 45 per cent of total U.S. crude imports.
 
Canada’s crude exports to the U.S. were up by 6 per cent, or 199 tbpd, compared to the previous month.
 
Saudi Arabia was the second largest supplier to the US with an 11 per cent share of total crude imports, closely followed by Iraq at 10 per cent.
 
Imports from Saudi Arabia were 138 tbpd higher m-o-m, while imports from Iraq were up by 122 tbpd.
 
Crude imports from OPEC Member Countries rose in April by 712 tbpd, or 28 per cent, compared to the previous month.
 
Imports from OPEC Member Countries accounted for 39 per cent of total US crude imports.
 
On crude oil demand projection, OPEC said the initial projection for 2019 indicates a global increase of around 1.45 mbpd, with annual average global consumption anticipated to surpass the 100 mbpd threshold.
 
Based on the first forecast for demand and non-OPEC supply for the year 2019, the demand for OPEC-15 crude next year is projected to decline by 0.8 mbpd to average 32.2 mbpd.
 
The Organisation for Economic Co-operation and Development (OECD) is once again expected to remain in positive territory, registering a rise of 0.27 mbpd with the bulk of gains originating in OECD America.
 
It noted that the non-OECD region is anticipated to lead oil demand growth in 2019 with initial projections indicating an increase of around 1.18 mbpd, most of which is attributed to China and India.
 
Additionally, a steady acceleration in oil demand growth is projected in Latin America and the Middle East.
 
According to secondary sources, OPEC crude production averaged 32.4 mbpd in first quarter of 2018, which is 0.1 mbpd higher than the demand for OPEC crude.
 
The report stated that in the second quarter, OPEC crude production stood at 32.2 mbpd, which is 0.3 mbpd lower than the demand for OPEC crude.
 
Source: The Business Insider
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has said that Nigeria will rely on Nigerian Gas Processing and Transportation Company (NGPTC), a subsidiary of the NNPC, to deliver a 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
 
The project, expected to be executed with about $3 billion, includes other key projects that will see the country expending over $38.5 billion on oil, petroleum products and natural gas pipelines between 2018 and 2022, according to data company, GlobalData.
 
Speaking on the sidelines of the 2017 Annual General Meeting (AGM) of the company, Baru, who also functioned as the chairman of the AGM, said the corporation was relying on the NGPTC’s competence to deliver the 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
 
He said apart from the AKK gas project, the company was also busy putting together new pipelines like the OB3 projected to come into operation later in the year alongside other significant gas pipeline projects across the length and breadth of the country designed as an integral part of the bigger trans-Nigerian gas pipeline system.
 
The NNPC boss commended the management and members of staff of the company for recording a profit after tax of N6.11 billion in its first year of operation under the new structure.
 
He said the NNPC management was looking forward to a bright future for NGTPC as it continued to show great promise and positive performance despite operating in an environment laden with incessant pipeline vandalism and condensate evacuation challenges.
 
Chief Operating Officer, Gas and Power and Chairman of the NGPTC Board, Saidu Mohammed, said the NGPTC was focused on consolidating on its strength and grow to bigger levels, noting that by 2019, the company would have leapfrogged into the big league with most of its ongoing gas infrastructure projects coming on stream.
 
Also, Managing Director of the company, Babatunde Bakare, said the 2017 AGM result showcases the corporation’s resolve to align with the prime objective of the Federal Government to harness the nation’s gas resources for the overall benefit of the Nigerian economy.
 
In another development, the Minna Depot of the Nigerian National Petroleum Corporation (NNPC) in Pogo, near Minna in Niger State, was gutted by fire yesterday.
 
The fire, which started exactly at 11.00 a.m., created panic along the ever-busy Minna-Paiko road, leaving commuters stranded.
 
A resident of the area, Malam Ibrahim Paiko, who spoke with The Guardian in Minna, said the leakage started since Saturday but the scooping by the boys started around 2.00 a.m. yesterday.
 
According to him: “When the leakage started early this morning, it ran through the gutters which made black marketers scoop from it.
 
Besides, the Public Relations Officer (PRO) of the NSCDC, Malam Ibrahim Yahaya, who spoke with The Guardian, said: “For now, we have not been able to ascertain whether there is any casualty.”
 
Also, the Director-General, Niger State Emergency Management Agency (NSEMA), Ahmed Ibrahim Inga, who confirmed the incident, said: “We thank God everything has returned to normalcy. Evacuation measures have been put in place and thank God the situation is now calm.
 
Source: The Guardian
MT Sahara Gas, the newly built vessel acquired by the West Africa Gas Limited (WAGL), has delivered 7,000 metric tonnes (MT) of Liquefied Petroleum Gas (LPG), in its historic maiden voyage to Nigeria, to boost availability and safe access to the commodity widely referred to as cooking gas.
 
WAGL is a Joint Venture (JV) between Nigerian National Petroleum Corporation (NNPC), and leading energy conglomerate, Sahara Group. The JV is run by two companies, NNPC LNG Ltd., a wholly-owned subsidiary of NNPC, and Sahara Energy’s oil and gas trading arm, Ocean Bed Trading Ltd. (BVI).
 
WAGL in January 2017, acquired two new vessels, MT Africa Gas, and MT Sahara Gas, in its bid to reduce transportation bottlenecks, add value to the Nigeria economy through exporting the commodity, deepen the LPG market in West Africa as well as enhance access to clean and safe energy.
 
The acquisitions were also a strategic response to the lingering challenges of supply, affordability and fraudulent activities motivated by scarcity of LPG also known as cooking gas.
NNPC’s Group Managing Director, Dr. Maikanti Baru, said in keeping with the Federal Government’s economic growth plan, WAGL remained committed to stabilising the market and ensuring sustainability of the commodity through strategic deliveries within the sub-region.
 
“This is a historic achievement for the NNPC and Sahara Group that showcases a truly successful partnership by all global standards.
 
The quest is to achieve uninterrupted supply of the commodity and address infrastructural limitations as we continue to implement our zero tolerance policy against adulterated products and their promoters across the nation.”
 
Baru said the NNPC/Sahara Group partnership remained a model for successful JVs, adding that both parties were considering various strategies to optimise the delivery of the product across West Africa.
 
Speaking aboard the vessel, the Managing Director, Petroleum Products Marketing Company (PPMC), Umar Isa Ajiya, said it was a significant and important milestone not only for Nigeria, but also for Africa and the entire shipping and maritime industry.
 
“We have a brand new LPG vessel, built by 100% fully owned Nigerian entities and it has picked up LPG from Bonny and brought it to Lagos.
 
This is the first time we are having a wholly owned shipping vessel bringing product to our shores.
 
This is an opportunity to grow and deepen the LPG market in Nigeria such that the use of firewood will come to an end sooner than later.
 
 
Source: The Guardian
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