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

Twenty four states of the federation sold Petroleum Motor Spirit (PMS), otherwise known as petrol, at an average price of over N145 per litre in August, according to a new report by the National Bureau of Statistics (NBS).

Recall that the Minister of State for Petroleum Resources, Ibe Kachikwu, had in May 2016 announced an upward review of PMS pump price by the Federal Government from N86.50 to N145.00, and directed filling stations across the country not to sell the product above the fixed price.

According to Kachikwu, the hike was the only way out of the exorbitant prices of N150 to N250 Nigerians were subjected to at many filling stations across the country during yuletide.

But in the latest PMS Price Watch report for August by NBS, only thirteen (13) states including the Federal Capital Territory (FCT), Abuja, complied with the directive, while the pump price of the product remained above the fixed price in other states in the review month.

According to the report, the average price paid by consumers for petrol increased by 1.7 percent to N146.90 per litre in August 2018 when compared with the same month in the previous year.

It said states with the highest average price of PMS in the review month were Borno, Kebbi and Kwara, which sold a litre at N157.00, N152.94 and N152.86, respectively.

It added that states with the lowest average price of the product for August 2018 were Ekiti, Katsina and Bauchi which sold at N144.23, N144.08 and N143.89, respectively.

Across geo-political zones, the North East zone recorded the highest average price of N148.81 per litre, while the South West zone sold the product at an average price of N145.01 per litre for the month under review.

 

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

The Nigerian National Petroleum Corporation (NNPC) has announced plans to relocate a brownfied refinery from Turkey to Nigeria.

The refinery, which is expected to be sited near the Port Harcourt Refinery in Rivers State under the NNPC refinery collocation initiative, would have a capacity of 100,000 barrels per day (bpd).

In a statement on Tuesday, the corporation’s spokesman, Ndu Ughamadu, said the Group Managing Director of NNPC, Maikanti Baru, made the disclosure while speaking on efforts being made to achieve self-sufficiency in local refining besides the rehabilitation of the refineries.

Baru hinted that a group of investors had commenced the process of relocating the refinery that used to be owned by BP to Nigeria from the Asian country.

The NNPC helmsman explained that a similar plan to establish a brownfield refinery near the Warri Refinery was also in the offing.

According to the statement, the effort was part of the corporation’s refinery collocation initiative designed to boost local refining capacity to end the era of petroleum products importation.

The statement quoted Baru as saying, “Our collocation initiative aimed at getting private sector investors to bring in brownfield refineries so that they can share facilities is also yielding results.

“For example, there is one that is going to be brought in from Turkey to be located near the Port-Harcourt Refinery. It’s not a modular refinery; it’s a normal refinery with about 100,00bpd capacity. It was owned by BP, but it has been sold off now to the companies that want to bring it over from Turkey to install it here.

“There is another one of about the same size being looked at to be sited near the Warri Refinery. But the one for Port-Harcourt is at a more advanced stage. Our drive at the NNPC, as a leader in the industry, is to expand our local refining capacity and make Nigeria a global refining hub.”

 

NAN

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
Danvic Petroleum International Corporation has unveiled plans to establish a privately owned Petroleum Institute/University to bridge the skill gap in the Nigeria’s oil and gas sector.
Besides, the company has produced the second set of graduates from the Danvic Petroleum Training Centre after six months of practical geosciences training.
 
The Managing Director of the company, Dr. Mayowa Afe, made this disclosure at the 2nd graduation ceremony of Danvic Petroleum Centre in Lagos on Tuesday.
 
According to him, the petroleum university is expected to bridge the gap between the Nigerian university theory and the practical knowledge needed in the oil and gas industry.
 
He disclosed that the university would also contribute to the course of local content development in Africa by grooming students to become employable in the oil and gas sector, particularly in the geosciences and petroleum engineering.
 
Afe said that geoscience graduates from Nigerian universities are lacking in the necessary skills and exposure that oculd guarantee their employability in a multi-task world-class geoscience environment.
 
He said that this unfortunate scenario over the years before the advent of the Nigeria Government local content policy has led to many international oil and gas companies who are in the country for business to source for personnel abroad.
 
Afe who is also the President, Oil and Gas Trainers Association (OGTAN), said that some Nigerian students studying abroad were proffered to detriment of their colleagues studying in Nigerian universities.
 
This, he said, led to the establishment of Danvic Petroleum Training Centre, which would soon attain the status of a university with the aim of boosting the Nigerian government local content policy and interventions in the oil and gas industry.
 
Speaking on the training programme, Afe explained: “The Danvic Petroleum School is a six months intensive programme designed for graduates and young professionls of geoscience to take courses on all aspect of oil and gas ranging from exploration to production stages.
 
The six months courses are divided into four modules.
 
Module one and two comprises general lectures and theory while module three involves practical sessions taught by practicing geoscientists and engineers from eh oil and gas industry.
 
 
Credit: The Conversation
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