The Organization of the Petroleum Exporting Countries, OPEC, and its partners, led by Russia, will meet in Vienna, Austria, on Thursday to discuss crude oil production plan for the coming year.

The two-day meeting, holding November 6-7, will discuss cutting output, just months after agreeing to pump more oil.

A recent survey by Reuters showed that OPEC’s November production fell from a two-year high due to U.S. sanctions on Iran, although most of the output gap left by Iran was plugged by Saudi Arabia and the UAE in response to calls from U.S. President Donald Trump.

The 15-member body pumped 33.11 million barrels per day in the month, down 160,000 bpd from October, which was the highest by OPEC as a group since December 2016.

The survey adds to indications that OPEC output remains ample despite U.S. sanctions imposed on Iran last month. Oil prices have slid 30 percent since early October on worries a new glut may emerge.

With Saudi Arabia and Russia pumping at record rates, U.S. output surging and forecasts pointing to lower demand in 2019 due to a slowing economy, some analysts are sceptical the producers will avoid generating a surplus.

“The most likely outcome of next (this) week’s OPEC meeting is a fudge,” said Stephen Brennock of oil broker PVM. “Russia and Saudi Arabia will agree to curb production but by less than is needed to prevent a supply imbalance in early 2019.”

OPEC, Russia and other non-members agreed in June to return to 100 percent compliance with output cuts that began in January 2017, after months of underproduction in Venezuela and Angola that had pushed adherence above 160 percent.

In November, the 12 OPEC members bound by the supply-limiting agreement boosted compliance to 120 percent as production fell in Iran, from a revised 110 percent in October, the survey found.

Qatar’s decision to quit OPEC shows the frustration of small producers at the dominant role of a Saudi and Russia-led panel, a top Iranian official said, adding that any supply cuts should come only from countries that had increased output.

The comments underline tensions within the Organization of the Petroleum Exporting Countries ahead of this week’s meeting to discuss curbing output and prolonging a supply-limiting pact with Russia and other non-members into 2019.

Iran has been angered by higher production from Saudi Arabia and Russia, which chair a panel called the Joint Ministerial Monitoring Committee (JMMC), after calls from U.S. President Donald Trump to pump more oil to offset a drop in Iranian exports hit by U.S. sanctions.

“There are many other OPEC members frustrated that the JMMC is deciding on production unilaterally and without the required prior consensus of OPEC.”

Oil prices have fallen from a four-year high above $86 a barrel in early October on concerns over excess supply. OPEC and its allies, which have had a supply pact since 2017, meet in Vienna on Thursday and Friday to discuss supply cuts.

“With this behavior, for small producers there is no merit to stay in OPEC.”

Iran believes that any supply reduction should come from those who pumped more – Saudi Arabia and Russia have provided the largest increases – rather than all 25 OPEC and non-OPEC countries involved in the current accord.

• Reuters

Oil marketers in the country have issued a 7-day notice to the Federal Government to settle all outstanding debts, including foreign exchange differentials and interest rate components, owed marketers in cash.

The ultimatum is coming following inability of the Federal Government to pay the outstanding debts of over N800 billion despite pleas by the oil marketers.

The marketers, under the aegis of the Major Oil Marketers Association of Nigeria, MOMAN; Depot and Petroleum Products Marketers Association, DAPPMA; and the Independent Petroleum Products Importers, IPPIs, said that failure to meet the deadline, will force its members to disengage their workers, and loading of petrol at depots would automatically seize.

Mr Patrick Etim, the Legal Adviser to IPPIs, who confirmed the development in Lagos on Sunday, said the 7-day ultimatum became necessary as all investments and assets of oil marketers were being taken over by banks, while payment of workers’ salaries remained a serious dilemma for the oil firms.

According to Etim, marketers have asked their workers to stay at home from December 1 as salaries could not be paid due to the huge debts owed by the government on subsidy.

Etim said several thousand jobs were on the line in the oil and gas industry, as oil marketers have begun to cut down their workforce due to inability to pay salaries

The counsel disclosed that the current administration paid part of the debts with a substantial portion of the subsidy interest and foreign exchange differential still pending, in spite the then acting President Yemi Osinbajo call for urgent intervention and directive to the former Minister of Finance, Mrs Kemi Adeosun, to work towards the settlement of the debt.

Similarly, Executive Secretary, DAPPMA, Olufemi Adewole, confirmed that oil marketers had given government 7-day ultimatum to pay all outstanding debt owed marketers.

Adewole disclosed that the ultimatum letter was served on November 28 to the Debt Management Office, Minister of Finance, Chairman, Senate Committee on Petroleum (Downstream), Department of State Services and the Minister of State for Petroleum Resources.

Nigerian ranks eleventh position on a top-20 list of countries with largest proven oil reserves.

Data sourced from World Atlas puts the country with a reserve of 37,062 billion barrels on the eleventh position after the United States of America with 39,230 billion barrels on the tenth position.

Despite the impressive attainment on the list, Nigeria’s crude oil reserve has remained stagnant at 37 billion barrels for the past ten years due to low exploration for new discoveries.

Nigeria’s crude oil is one of the most preferred due to its low sulfuric content, and low corrosiveness to refinery infrastructure. It also has a lower environmental impact of its byproducts during the refinery process, putting its grade, Bonny Light as one of the most expensively priced and sold at the international market.

1. Venezuela – 300,878 billion barrels
With 300,878 billion barrels of proven reserves, Venezuela has the largest amount of proven oil reserves in the world. The country’s oil is a relatively new discovery. Previously, Saudi Arabia had always held the number one position.

The oil sand deposits in Venezuela are similar to those in Canada. Venezuela also boasts plenty of conventional oil deposits. Venezuela’s Orinoco tar sands are significantly less viscous than Canada’s, so the oil sands there can be extracted using conventional oil extraction methods, giving it a considerable advantage over the Northern American rival in terms of capital requirements and extractions costs.

2. Saudi Arabia – 266,455 billion barrels
The Kingdom of Saudi Arabia has for many decades been viewed as the modern state most iconic of oils equation to opulence and influence in global politics. However, Saudi Arabia is no longer the world’s leader in oil potential.

While the Saudis’ 266,455 billion barrels of proven oil reserves are marginally smaller than those of Venezuela, all of Saudi oil is in conventionally accessible oil wells within large oil fields. Moreover, Saudi Arabia’s reserves are considered to comprise a fifth of the entire globe’s conventional reserves. There are many who also believe that, with further exploration, Saudi Arabia will surpass Venezuela at the top of the proven oil holdings charts. For example, the US Geological Survey estimates that there are well over 100,000 billion barrels lying undiscovered beneath the arid sands of Saudi deserts.

3. Canada – 169,709 billion barrels
Canada has almost 170,000 billion barrels of proven oil reserves, of which the most significant proportion is in the form of oil sands deposits in the province of Alberta. Furthermore, most of the country’s conventionally accessible oil reserves are located in Alberta.

As extracting oil from the vast majority of Canada’s oil reserves is a labor and capital-intensive process, production tends to come in sporadic bursts rather than steady streams. Oil companies, therefore, begin by extracting lower density, higher value oils first, and directing their efforts into extracting crude deposits only in times of high commodity prices.

4. Iran – 158,400 billion barrels
Iran has close to 160,000 billion barrels of proven oil reserves, making it considerably wealthy in terms of global oil resources. When looking at the most easily accessible reserves (excluding many of the unconventional, difficult-to-extract reserves in Canada), Iran falls right behind Venezuela and the Kingdom of Saudi Arabia.

Oil in Iran was first produced in 1908 and, at its current rate of extraction, Iran’s oil will last close to 100 years more. Unlike Saudi oil, which is spread throughout a few huge and very rich oil fields, Iranian oil is found in close to 150 hydrocarbon fields, many of which have both petroleum crude oil and natural gas.

5. Iraq- 142,503 billion
Despite shaky political situations in its recent history, the country of Iraq sits upon some of the world’s largest proven reserves of petroleum crude oil. As a matter of fact, owing to the civil unrest and military occupations which have characterized the national scene over the last few decades, it was not possible to do any meaningful exploration of Iraq’s oil reserves. As a result, even the data used to determine Iraq’s global oil holdings ranking is at least three decades old and based on 2D seismic surveys. Nevertheless, a period of relative calm over the last couple of years has given increased hope for developing the country’s oil infrastructure.

6. Kuwait – 101,500 billion barrel
While a small country in terms of land area, Kuwait holds more than a fair share of the world’s petroleum oil reserves. Over 5 bbl of reserves lie within the Saudi-Kuwaiti neutral zone which Kuwait shares with Saudi Arabia, while over 70 billion barrels of Kuwaiti oil are in the Burgan field, the second largest oil field in the world.

7. United Arab Emirates – 97,800 billion barrels
The United Arab Emirates (UAE) sources most of its oil from the Zakum field, which has an estimated 66 billion barrels, making it the third largest oil field in the region, behind only Ghawar Field (Saudi Arabia) and Burgan Field (Kuwait). Roughly 40 percent of the country’s GDP is based on oil and gas output and, since its discovery there in 1958, has enabled the UAE to become a modern state with a high standard of living.

8. Russia – 80,000 billion barrels
Russia is a country filled with natural resources for energy use, most notably the country’s massive oil reserves under the vast Siberian plains. Russian oil output fell considerably after the collapse of the former Soviet Union, but the country has revamped production in the past few years. The nation may further boost its reserves of oil and gas in the future as exploration continues beneath its holdings of arctic waters and ice.

9. Libya – 48,363 billion barrels
Libya has the largest oil reserves in Africa and the ninth largest globally. It has the potential to have a greater reserve of fossil fuel than we currently know of, as it remains largely unexplored as a result of past sanctions against foreign oil companies. Libyan oil accounted for 98% of government revenue in 2012 but, due to recent political instability, Libya’s power as an oil producer has been significantly hampered. Eventually, it is expected that untapped oil reserves will foster more economic investment as the political situation stabilizes.

10. United States – 39,230 billion barrels
U.S. oil reserves soared to new heights in recent years due to increased usage of unconventional drilling methods that enable extraction of more shale oil and gas than was previously possible. As a result of these, especially fracking and horizontal drilling, U.S. reserves surpassed 36,000 billion barrels in 2012 for the first time since 1975. Still, proven U.S. oil reserves are but a fraction of the reserves of the global petroleum leaders such as Venezuela, Saudi Arabia, and Canada.

Despite shaky political situations in its recent history, the country of Iraq sits upon some of the world’s largest proven reserves of petroleum crude oil. As a matter of fact, owing to the civil unrest and military occupations which have characterized the national scene over the last few decades, it was not possible to do any meaningful exploration of Iraq’s oil reserves. As a result, even the data used to determine Iraq’s global oil holdings ranking is at least three decades old and based on 2D seismic surveys. Nevertheless, a period of relative calm over the last couple of years has given increased hope for developing the country’s oil infrastructure.

Countries With The Largest Proven Oil Reserves
Rank Country Barrels (Billions of Barrels)
1 Venezuela – 300,878
2 Saudi Arabia – 266,455
3 Canada – 169,709
4 Iran – 158,400
5 Iraq – 142,503
6 Kuwait – 101,500
7 United Arab Emirates – 97,800
8 Russia – 80,000
9 Libya – 48,363
10 United States of America – 39,230
11 Nigeria – 37,062
12 Kazakhstan – 30,000
13 China – 25,620
14 Qatar – 25,244
15 Brazil – 12,999
16 Algeria – 12,200
17 Angola – 8,273
18 Ecuador – 8,273
19 Mexico – 7,640
20 Azerbaijan – 7,000

The Shell Petroleum Development Company of Nigeria, SPDC, and its joint partners have signed a gas supply and aggregation agreement that will support the 140 Megawatts Aba Integrated Power Project in Abia State.

The agreement, signed on Friday in Abuja, was between SPDC, Geometric Power Aba Limited (GPAL); and Gas Aggregation Company of Nigeria (GACN).

By the agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers States to the power producer, Geometric Power Aba Limited (GPAL) via a gas pipeline network which is already installed.

“This is a further demonstration of our commitment to supporting Nigeria’s industrialisation through gas,” said the Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

Okunbor, who was represented by SPDC’s General Manager, Business and Government Relations, Bashir Bello, noted: “For more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge gas resources and it is good to see more players joining the fray to grow the gas market and help improve lives and the earnings in Nigeria.”

Speaking at the agreement signing ceremony, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, described the Aba Independent Power Project as a potential catalyst for opening up the Aba market for economic growth.

Represented by his Special Adviser on Fiscal Strategy, Dr. Tim Okon, the minister said the government was determined to ensure commercial sustainability of any such project with the potential to grow the gas market.

Chief Executive Officer of GAPL, Prof. Bath Nnaji said the project was structured to incentivise gas suppliers to invest in gas production for the domestic market, adding: “We are confident that the structure will serve as a model for other gas-to-power-projects in Nigeria.”

The Managing Director of GACN, Morgan Okwoche, who signed on behalf of the company described the project as the foremost private off-grid gas supply and aggregation agreement that would enhance industrial growth and economic development.

Those who witnessed the signing ceremony included the General Manager Petroleum Engineering of the Nigeria National Petroleum Corporation, Muazu Awaisu, who represented the Group Managing Director of NNPC; and the General Manager Gas Portfolio of SPDC, Yemi Famori.

The SPDC JV owns the 650MW Afam VI power plant in Afam, River State which in 2017 supplied 15% of Nigeria’s grid-connected electricity.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said there are strong indications that three modular refineries, out of 40 licenses issued, will likely come on stream by end of 2019.

Kachikwu disclosed this at the 3-days Biennial International Conference for Health, Safety, and Environment, HSE organised by Department of Petroleum Resources, DPR in Lagos on Monday told participants that “out of the 40 private licenses issued to private investors to build refineries, only 10 have shown signs of progression.

“Out of the 40 licenses issued, only 10 have shown progress by submitting their programmes and putting something on the ground”.

“By end of 2019, we are assured that three private modular refineries would come on stream,’’ he said.

The minister said that the conference is a renowned and highly-professional forum for pooling ideas and research findings for the incubation of enduring and game-changing oil and gas policy initiatives.

“Perhaps this edition of the conference could not have come at a better time, first to allay the popular fear that the days of oil and gas as an international commodity and energy source are over.

“And secondly, to stimulate new ideas on sustainable ways of developing this resource in a manner that will both prolong its acceptability as an energy source and also help the nation reap optimal benefits,” he said.

According to Kachikwu, environmental sustainability is a key component of the Seven Big Wins initiative of the President Muhammadu Buhari Administration for the oil and gas Industry.

He said with the continuous inflow of statistics from the DPR highlighting the gory state of affairs on gas flaring and the failure of previous efforts to end the menace, the ministry had to come up with new initiatives to truly incentivise the flare-out policy by creating the new National Gas Policy.

The policy he said, is aimed at ensuring that all currently flared gas, including those previously considered as non-technically feasible and non-commercially viable, is gathered and utilised for various economic utilities that are financially rewarding to the producers, adding that the collectors and interested investors can then convert it for power generation, petrochemicals, and other beneficial uses.

“ Aggressive efforts are being made within the ambits of HSE sustainability to convert more gas to LNG through new and existing investors to retain Nigeria in its currently threatened fourth position as an LNG exporter.

“Our push for the increased investments in modular and conventional refineries is not only targeted at helping the nation benefit from its resources by providing products to the entire West African sub-region.

“But also essentially to stop the scourge of local unconventional artisanal refineries that have led to massive oil spills that have been hard to manage for nearly a whole decade.

“ And, indeed, if anyone has new innovative ideas for improving the science of local refining initiatives, the DPR has been directed to listen to same, improve and license it, perhaps we may end up developing local technologies that can be exported, provided the HSE content meets acceptable international standard ,’’ he added.

Meanwhile, the Director of Department of Petroleum Resources, DPR, Mr. Modeccai Ladan, urged stakeholders to galvanise efforts at maximising Nigeria’s production and minimise wastage.

Ladan explained that the oil and gas industry seems to be under a new threat, which is the renewed dislike and global war against fossil fuels and the quest for renewable and cleaner energy, purely for environmental considerations, chief among which is the concern about global warming.

According to him, “Over the years, the threat against fossil fuels had always been on paper, but today, it is more real than ever, based on some clear evidence I like to draw our attention to.

“Three among the biggest technology companies have made attempts at electric cars to replace gasoline and diesel engines.

“While the attempt of Apple may not have made it to production yet and that of Google was suspended after clearly successful street trials that of Tesla actually took the world by surprise.

“Not only did the first two releases of Tesla outsell sales forecasts, but they were also actually oversubscribed, and the demand keeps rising while new models are being added,’’ he said.

Ladan said; “As we speak, some of the big International Oil Companies (IOCs) here seated are funding gigantic researches into alternative fuels, which include the use of cheap, common algae.

“ As sweet as Nigeria’s crudes are renowned to be globally, we have recently lost our most valued customers and our gas buyers are themselves now competing with us in the same market space as suppliers.

“Ladies and gentlemen, all of these points to one fact, namely, if Nigeria is to continue to benefit from its vast petroleum resources, now than ever is the time to build sustainability into its prospecting, drilling, production, transportation, and usage.

“As well as management of its wastes. And this task rests on the shoulders of not only the DPR but all stakeholders.

“Little wonder then that we have chosen a befitting theme for this current edition of the conference, which is: “Driving Sustainability in the Oil and Gas Industry through Improved Stakeholders’ Environmental Stewardship,” he added.

By Kenechukwu Obiajuru, Yenagoa

A youth group under the aegis of Niger Delta Youths Coalition for Peace and Progress (NDYCPP) on Tuesday applauded the Nigeria Liquified Natural Gas (NLNG) for its strategy of involving Nigerians in its Train-7 expansion project.
President of NDYCPP, Mr. Tiedor Olayinka on Tuesday, said that the plan to implement the Nigerian Content Policy in the gas production expansion project would serves as catalyst for economic development.

Olayinka, who was reacting to the assurances made by the Managing Director of NLNG, Mr Tony Attah that the firm was banking on Nigerian firms to build the NLNG Train-7.
NLNG Train-7, is a gas production expansion project valued at over 7 billion dollars, located in Bonny Island in Rivers.
NLNG is targeting to increase its gas production capacity by 35 per cent from 22 million tonnes per annum (MTPA) to 30 million MTPA, a project officials said would cost over four billion dollars

It will be recalled that Attah, NLNG’s Managing Director had on Nov.22 in Port Harcourt at a public workshop titled: “Nigerian Content for NLNG’s Train 7 Development.”, assured that the Nigerian Content Policy will drive the project.
According to Attah, the project will be delivered with full participation of competent Nigerian companies in compliance with the Federal Government’s Local Content Act 2010.

Olayinka noted that the policy of involving Nigerians in the multibillion dollar project would trigger business opportunities in the Niger Delta and provide jobs for the skilled youth population in the area.
He noted that the Train-7 would increase the nation’s gas exports and increase Nigeria’s influence in the world energy market and place Nigeria amongst the top three gas exporting nations.

He said that gas was increasingly preferred as one of the cleanest fuels and expanding production would guarantee a steady source of revenue for the government

“We in Niger Delta Youth Coalition for Peace and Progress received the news by NLNG MD with enthusiasm as this would be a lifeline to most oil and gas entrepreneurs who have remained idle due to lull in the sector.

“We applaud the NLNG led by Mr Tony Attah, Nigerian Content Development and Monitoring Board piloted by Mr Simbi Wabote and Dr Ibe Kachikwu, Minister of State for Petroleum.
“Under Wabote, the real capital retention in the industry by patronizing Nigerian made components was pushed from about 10 per cent to 30 percent and he has rolled out an ambitious plan to hit 70 per cent by 2017.
“It should be noted that these three Niger Delta sons have worked silently and turned things around in the oil and gas sector and implemented reforms that pulled the country out of recession.

“The role played by NLNG in the heat of the recession by boosting government’s revenue saved the country from distress and this is due to the expertise of the NLNG management led by Attah.

“We wholeheartedly welcome the invitation to participate in building the NLNG Train-7, and we are following up with a Business roundtable on the NLNG Train-7 to be held in Bonny Island.
“We are mobilizing oil and gas entrepreneurs for the roundtable and we strongly believe that these three accomplished experts, Kachikwu, Wabote and Attah would mentor and inspire our youths.

“To us, hosting these three oil and gas industry icons in Bonny would provide the youths with success tips and nuggets to uplift their businesses and enhance their competitiveness when bidding for contracts in the Train-7.
“The decision to ensure participation of host communities in the LNG Train-7 will enhance security and success of the project,” Olayinka said

The Federal Government in its efforts to achieve a standardised oil and gas industry will on Monday in Lagos, launch three regulatory guidelines to that effect.

The regulatory guideline which  will be launched by the Minister of state for Petroleum Resources, Dr. Ibe Kachikwu according to the Deputy Director, Department of Petroleum Resources (DPR), Dr. Musa Zagi is aimed at standardising the nation’s oil and gas industry.

Zagi disclosed this in Lagos, yesterday, during the unveiling of the forthcoming 18th edition of the International HSE Biennial Conference on the Oil and Gas Industry in Nigeria scheduled for November 26th – 28th, 2018.