×

Warning

JUser: :_load: Unable to load user with ID: 59

Displaying items by tag: Nigeria Oil Production

Thursday, 30 August 2018 20:39

No plan to sell NLNG, says Kachikwu

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
Published in Business
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..
Published in Business
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.
 
Published in News Economy
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

Published in News Economy
 
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.
Published in Business
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
Published in Business
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
Published in News Economy
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
Published in Business
The Group Managing Director of the Nigerian National Petroleum Corporation, (NNPC) Maikanti Baru, has said a Final Investment Decision (FID) on the additional eight Million Tonnes Per Annum Nigeria LNG Train 7 Plant will be reached before the end of this year.
This is not the first time NNPC is making this claim, as indeed, attempts to make a final decision on the additional plant has been stalled for many years, dating back to the former President Olusegun Obasanjo’s regime.
 
However, speaking at the ongoing Nigerian Oil and Gas (NOG) conference & Exhibition in Abuja, Tuesday, Baru said the country is keen on driving investment in its oil and gas sector without disclosing further details as to when exactly the decision will be made.
 
He said: “On the expansion of our existing 22 metric tonnes per annum (MTPA) NLNG plant, we are on the verge of taking Final Investment Decision (FID) this year for additional eight MTPA NLNG Train 7 Plant.”
 
With six trains currently operational, NLNG’s plant on the Bonny Island in Rivers State, is capable of producing 22MTPA of LNG, and 5 MTPA of NGLs (LPG and Condensate) from 3.5 billion (standard) cubic feet per day (Bcf/d) of natural gas intake. If the seventh train is completed, total production capacity would be lifted to 30MTPA.
 
To him, with NNPC’s upstream subsidiary – The Nigerian Petroleum Development Company (NPDC), the group would grow production to 500,000 bopd of oil, and 1.5bscfd of gas by 2020.
 
“Furthermore, in terms of frontier exploration, we are optimistic that in the Benue trough, we will drill an appraisal well in Q3 2018 to test the extent of the Kolmani Structure in the Benue Trough. Recall that Kolmani River-1 exploration well drilled by Shell in 1998 encountered 238ft net hydrocarbon interval.
 
“In NNPC, we believe that the downstream sector holds the future. The plan to become a net exporter of refined products by year-end 2019 is on course. Based on this timeline, the revamping of our four refineries are our topmost priorities in NNPC for the midstream segment. Alongside this, we are also progressing with the revamping and rehabilitation of all our pumping stations, pipelines, and depots across the country,” the GMD said.
 
The Secretary General, Organisation of the Petroleum Exporting Countries (OPEC), Mohammad Barkindo, reiterated the need for more investment in the global oil and gas sector.
 
He noted that the lack of investment in the sector poses serious repercussions for future consumers, especially given the increase in world oil demand, which is expected in the long term.
 
According to him,  from 2014 to 2016, during the last industry downturn, world oil supply growth outpaced demand, with supply growing by 5.8 million barrels per day, while demand increased by 4.3 million barrels per day.
 
He therefore argued that extreme volatility in the crude oil market has very negative consequences for such consumers and producers.
 
“Low oil prices are bad for producers today and create situations that are bad for consumers tomorrow. And high oil prices are bad for consumers today and lead to situations that are bad for producers tomorrow,” he said.
 
The OPEC scribe said nearly $1trillion in investments were frozen or discontinued, while thousands of high quality jobs were lost, adding that volatility remained a key challenge for investment into the sector.
 
He revealed that a record number of companies in the petroleum industry had filed for bankruptcy because of the level of shortfall in the price of the product.
 
He said: “According to OPEC’s World Oil Outlook, long-term oil demand is expected to increase by 15 mb/d, rising from 94.5 mb/d in 2016 to 111.1 mb/d in 2040. To meet the projected increase in global oil demand, investments worth an estimated $10.5trillion will be required.
 
“Investment is also necessary to offset the impact of natural decline rates, which can be as high as five per cent per year. To maintain current production levels, the industry might need to add upwards of four million barrels per day each year.”
 
Source: The Guardian
     
 
Published in Business

The Federal Government of Nigeria received N3.211 trillion as Petroleum Profits Tax (PPT) and Royalties from the third quarter of 2015 to third quarter of 2017, according to the Economic Report of the Central Bank of Nigeria (CBN).

Breakdown of the revenue to the government showed that the country received N495.39 billion as PPT/royalties in third quarter of 2015; N388.66 billion, in fourth quarter of 2015; and N314.04 billion during first quarter of 2016.The revenue from PPT/royalties declined in second quarter of 2016 to N212.78 billion; later increased to N392.38 billion in third quarter of 2016; and decreased to N273.13 billion in fourth quarters of 2016.

There was a rebound of revenue to N325.38 billion in first quarter of 2017; N320.49 billion in second quarter and N489.41 billion during the third quarter of 2017. The CBN report for the third quarter of 2017 released recently, revealed that N103.46 billion was allocated to the 13 per cent Derivation Fund for distribution among the oil producing states. 

analysing the report, CBN disclosed that oil receipt at N1.27 trillion during the quarter under review was lower than the proportionate quarterly budget estimate by 6.2 per cent, but was above the receipts in the preceding quarter by 59.7 per cent. According to the CBN, the decline in oil revenue relative to the proportionate quarterly budget estimate was due to the shortfall in receipts from crude oil/gas exports, owing to the decline in crude oil production, arising from leakages and shut-ins/shut-downs at some NNPC terminals.

It disclosed that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.83 million barrels per day (mbd) or 168.36 million barrels (mb) in the review quarter.This, it noted, represented an increase of 0.17 mbd or 10.2 per cent, compared with 1.66 mbd or 151.06 mb recorded in the preceding quarter. The development was due to sustained peace in the oil production region.CBN said that crude oil export stood at 1.38 mbd or 126.96 mb, representing 14.0 per cent increase over 1.21 mbd or 110.11 mb in the preceding quarter.

The development, it hinted, was due, mainly, to reduced activities of vandals in the Niger Delta region.Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 41.40 million barrels in the review quarter.

Nigerian National Petroleum Corporation (NNPC) Chief Operating Officer, Upstream, Malam Bello Rabiu, proposed some key amendments to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act to enable the Federal Government optimize the collection of royalties and other revenue in deep water oil production activities.He noted that it was imperative to effect increment in royalties across all categories to increase government take.

“It is our opinion that the proposal to increase the royalty rate for terrains beyond 1000 metres, from zero per cent to three per cent, is commendable but it is necessary to also make corresponding adjustments in other categories,’’ he said.He argued that in the alternative, the graduated royalty scale as provided in the Act should be removed while the Minister of Petroleum Resources should be empowered to intermittently set royalties payable for acreages located in deep offshore and inland basin production sharing contracts through regulations based on established economic parameters.

“It is our opinion that these incentives have outlived their usefulness and are now impediments to the Federal Government’s revenue collection efforts. The use of such incentives can be terminated by an amendment of section 4 of the Act,’’ the Corporation noted.He called on the National Assembly to seek relevant input from the Federal Inland Revenue Service, to resolve the divergent opinions regarding the methodology for the computation of the taxes which would arise as a result of the proposed royalty regime.

Source: The Guardian

Published in Bank & Finance
  1. Opinions and Analysis

Calender

« June 2021 »
Mon Tue Wed Thu Fri Sat Sun
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30