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OPEC has become an indispensable ‘organ of stability’ in the oil market – Barkindo

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OPEC has become an indispensable ‘organ of stability’ in the oil market, Mohammad Sanusi Barkindo, OPEC Secretary General said at the Algeria Future Energy Summit in Algiers, Algeria. He noted that though some sceptics have imagined a diminished global role for the organization, OPEC has instead demonstrated permanence and longevity.

“It has been transformed. In this process of transformation, OPEC has not only acquired a new image but has shown that it can adapt like the most nimble of corporations. Whether one admits it or not, OPEC has taken centre stage – probably more than at any other time in its history,” said the secretary general.

Barkindo pointed out that there are also ongoing transformations at the level of OPEC’s member countries. “OPEC, in short, has become an indispensable ‘organ of stability’ in the oil market – continuously breaking new frontiers and establishing energy dialogues with the EU, Russia, China, India and the US,” he added.

 

Source: Hellenic Shipping News

NNPC Prepares For Yuletide, Signs Petrol Supply Deal With BP

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The Nigerian National Petroleum Corporation on Thursday announced that it had signed a six-month Direct Sale-Direct Purchase agreement with the British Petroleum’s trading arm, BP Oil International Limited, for the supply of Premium Motor Spirit, popularly known as petrol.

According to the corporation, the agreement is part of measures aimed at sustaining the supply of petroleum products across the country, especially going into the Yuletide period and beyond.

The agreement will represent 20 per cent of the NNPC’s total PMS supply under the DSDP arrangement, which allows the corporation to exchange crude oil with international traders for imported petroleum products over a period of time.

In his speech after the signing of the agreement at the NNPC headquarters in Abuja, the Group Managing Director of the corporation, Maikanti Baru, said it became necessary as the national oil firm was the products’ supplier of last resort.

He stated that the NNPC was committed to products’ availability by inviting new and old players to play in the Nigerian oil sector.

Baru noted that over the years, BP had demonstrated the capacity and robustness to augment the forecasted shortfall by the NNPC, especially as the winter period approaches and as the nation’s elections get underway early next year.

The GMD was quoted in a statement issued by the spokesperson of the NNPC, Ndu Ughamadu, as saying, “As a reliable supplier, we think BP is a brand that we can always partner. We trust the company and we have a good relationship with it.

“We also believe in the company’s commitment towards the development of local content.”

Baru also commended BP for choosing to partner AYM Shafa, a local oil firm, which he said had been expanding its downstream footprints across the country.

“BP’s partnership with AYM Shafa towards delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period. In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide,” Baru added.

The Head, Marketing and Origination, BP’s oil trading business, John Goodridge, said it was a great honour for the company to be trusted by the NNPC as one of its strategic suppliers.

“We are delighted to have the opportunity to work more closely with the NNPC. Going forward, we hope to grow this mutual relationship to greater things,” Goodridge added.

He assured the corporation that his company had a global network of refineries capable of generating the products to meet the specifications of the NNPC.

He said the ultimate was to ensure that over the next six months, Nigeria did not witness any shortage in the supply of petroleum products.

Introduced in 2016, the DSDP arrangement is a model executed through direct sale of crude oil to refiners or consultants, who in turn supply the NNPC with equivalent worth of products.

The NNPC stated that since its inception, the DSDP model had saved it millions of dollars that would have been paid as demurrage.

It also stated that the model had proved to be a major component of the corporation’s petroleum products’ supply portfolio, which ensured stability in supply nationwide.

Culled from PUNCH

Baru tasks engineers on renewable energy development

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The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has challenged Nigerian engineers to come up with technologies to help deepen the development of renewable energy in the country.

The NNPC helmsman threw the challenge during a courtesy call on him by members of the executive committee of the Nigerian Society of Engineers (NSE), Abuja Branch, led by its Chairman, Engr. Chinasaokwu Okolie.

The GMD highlighted some of the corporation’s strides in the development of renewable energy across various states of the country using abundant natural resources like palm oil, cassava, and sugarcane.

He said the projects would help create the much needed linkage between the energy and agricultural sectors and urged members of the NSE to come up with technologies and strategies to enhance the integration process for the growth of the economy.

He congratulated Engr. Okolie on his emergence as chairman and commended the branch for its good work in training members and making engineering attractive especially at the grassroots.

He said NNPC was committed to producing clean hydrocarbons in an environmentally friendly manner for the benefits of all Nigerians.

On his part, Chairman of NSE Abuja Chapter, Engr. Okolie, commended the GMD for his purposeful leadership which has led to greater investor confidence and growth of daily crude oil production from about 1.5 million barrels per day (mbpd) to the current 2.3mbpd.

The highpoint of the visit was the presentation of a plaque to the GMD in recognition of his efforts in the development of the oil and gas industry.

 

Source: NNPC

Libya Lifts Oil Production After Restarting Fields

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Libya has restarted three small oil fields and added around 10,000 bpd to its oil production—which has been steadily rising over the past two months—a spokesman for Libya’s National Oil Corporation (NOC) had told Reuters on Wednesday.

Late on Tuesday, Libya restarted the al-Bayda oil field, an engineer told Reuters, while the NOC spokesman confirmed that the company also gave instructions for oil production at the Tibesti and Dor Marada oil fields to resume.

NOC has moved to resume oil production at these three small fields in south-eastern Libya, which were shut in June when armed groups attacked the eastern oil ports in Libya, forcing a large part of Libya’s oil production to shut in and NOC to declare force majeure for several weeks.

The port closure for more than two weeks in June-July blocked 850,000 bpd of Libya’s oil (nearly all Libyan production) from being exported from four ports. As a result, Libya’s oil production slumped to just 673,000 bpd in July, as per OPEC’s secondary sources. In August, production recovered to an average 950,000 bpd, while Libya’s production in September further jumped by 103,000 bpd to average 1.053 million bpd, OPEC said in its October Monthly Oil Market Report.

As of the end of September, Libya’s oil production hit its highest level since 2013, NOC’s chairman Mustafa Sanalla said, adding that if the security situation in the country improves, Libya’s production could further rise from the recent 1.278 million bpd.

NOC is holding talks with international oil companies that could result in increased investment and production in Libya’s oil industry, if security across the country improves, Sanalla said last month.

Earlier this month, Sanalla told Bloomberg that Libya’s oil production could rise by several hundred thousand barrels daily when BP and Eni resume production at a shared field.

BP and Eni will begin exploratory drilling in Libya in the first quarter of next year, BP’s chief executive Bob Dudley told Reuters last week.

Culled from Oilprice

Alternative Energy Adoption on the Rise as Total Opens Solar-Powered Service Station in Zaria

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As part of its expansion drive, Total Nigeria Plc has inaugurated its 30th solar serviced station, five years after it opened the first one in Lagos.

The new service station on Court House Road, Zaria, boasts 11.7 Kilowatt peak, kWp with 36 Sunpower E327 Panels and a PV-diesel hybrid architecture.

According to the International Energy Agency, the current installed solar capacity would enable the firm to generate enough energy to power the equivalent of 460 average Nigerian households.

Since the company inaugurated the Onigbagbo solar service station in 2013, the first ever to be installed in Nigeria, it has been able to save 340,000 litres of diesel and has offset approximately 900 tons of carbon dioxide emissions.

Solar installations designed and managed by Total Nigeria Plc, the Nigerian downstream affiliate of the Total group, have now reached a combined capacity of 1 megawatt installed (MW) and has produced more than 1-gigawatt hour (GWh) of clean electricity.

Speaking on the development, the Managing Director of the firm, Imrane Barry said that, “This project is in line with the group’s ambition to become the responsible energy major with a commitment towards developing solar energy. It reduces our CO2 emissions while decreasing our electricity bill each year.”

He added that “As an organization committed to a worldwide solarisation programme, Total has the ambition to equip 5,000 of its service stations worldwide with solar panels by 2021, with the goal of offering affordable, reliable and clean energy solutions for all.

For the past 60 years, the organisation has demonstrated leadership traits in the downstream sector of the Nigerian oil and gas industry with an extensive distribution network of over 550 service stations nationwide and a wide range of top quality energy products and services.

Source: energynews

African Power Platform Launches Comprehensive Library of Energy Information

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With the APP library, individuals can learn about conventional methods of producing energy, renewables, micro-grids, solar home systems, and how those methods and strategies might be combined to best serve the unique and increasing power needs in each of Africa’s countries.

Nairobi, Kenya (October 29, 2018) – Jorge Lascas, founder and managing director of the African Power Platform (APP), announced that stakeholders and other interested parties can now access the APP’s extensive library of articles, studies and relevant documentation about all aspects of the power sector in Africa.

An estimated 600 million people don’t have access to electric energy and even for those that do, power is often unreliable. Electricity is an essential service that enables businesses to be more productive, children to be educated, and improve the lifestyle of every individual. It also allows for the free exchange of ideas and innovations that can lead to unprecedented breakthroughs.

The launch and availability of the APP library, counting with over 300 reports, articles and studies published, is vitally important to keep people informed and can be a launching point for new ideas, resources and solutions.

Individuals can learn about conventional methods of producing energy, renewables, micro-grids, solar power, and how those methods and strategies might be combined to best serve the unique and increasing power needs in each of Africa’s countries.

Africa is home to a variety of different landscapes, and visitors to the online library will have the opportunity to learn about the challenges and opportunities of developing infrastructure in those areas. Individuals also have access to special events, webinars and awards. The APP library also features interviews and explores various energy sources that include fossil fuels and hydropower, and the challenges inherent in utility digitization.

Through the comprehensive library of the African Power Platform, individuals can learn about grants, renewable energy laws, pilot programs, and techniques that have worked in other countries that have the potential to be deployed in Africa. Materials in the APP library address power challenges within all areas of Africa.

The APP library is a unique opportunity to learn about the difficulties, opportunities and innovations available that can benefit the people of Africa. Electric power is an essential element for business growth, education, and the development of strong infrastructure and empowerment in multiple sectors.

About African Power Platform:

Founded by Jorge Lascas, the African Power Platform aims to connect private and government stakeholders in Africa’s power sector. The platform helps circulate and propagate tenders, intelligence and business opportunities to its members. Developers, power producers, ministries, utilities, regulators, financiers, and other like-minded individuals can join APP to share possible solutions and ideas on how to solve Africa’s lack of electricity.

Shell explains its local content strategy for Nigeria

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Image with Shell

The Shell Nigeria Exploration and Production Company (SNEPCo), says its local content strategy was built around the national framework as developed by the Nigeria Content Development and Monitoring Board.

Bayo Ojulari, its Managing Director, who stated this at the company’s recent local content exhibition in Lagos, also explained that the strategy places strong emphasis on research and development, promotion of local manufacturing, indigenous asset ownership, and human capacity development.

He added, “Shell recognises the significant role that a viable and competitive manufacturing sector plays in the economic development of a country. Therefore, we actively seek opportunities to support and showcase strides made by Nigerian companies in the manufacturing of import-substituting goods and services, especially those required for oil exploration and production.”

He cited some ongoing initiatives by the company to further support local capacity such as the collaboration with University of Ibadan and University of Port Harcourt on research into synthetic base fluids for drilling operations using local raw materials. “This is expected to substitute imported fluids and stimulate industrial production,” he said.

DPR to limit supply of petrol to Nigeria’s border areas

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The Department of Petroleum Resources (DPR) in Adamawa on Wednesday said it would limit supply of petroleum products to border areas to control the illegal exportation of products.

Mr Ibrahim Chiroma, the Controller of Field Operations of DPR in Adamawa, made this known in an interview in Yola. Chiroma said that smuggling of petroleum products outside the country was a major challenge to adequate distribution of the products in the area.

The controller, who recently assumed duty in the state, said that the issue of under dispensing of petrol by marketers would also be stopped. According to him, measures will be stepped up to enforce the pump price to the letter.

Chiroma said that no defaulter would elude stringent sanctions for both diversion of products and under dispensing of products. He said that the department would collaborate with security agencies and other critical stakeholders to avert supply shortage of petrol during and after the coming Christmas.

 

Source: NTA

Nigeria has lost $10bn revenue in 18yrs to obsolete hydrocarbon laws – Senate

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The Chairman, Senate Committee on Petroleum Resources, Upstream, Donald Omotayo Alasoadura, has said that Nigeria has lost no less than $10 billion revenue in the last 18 years due to obsolete laws in the sector.

Alasoadura, the senator representing Ondo Central Senatorial District, stated this Thursday in Akure, Ondo State while delivering the 12th Annual Lecture of the School of Engineering and Engineering Technology of the Federal University of Technology, Akure (FUTA).

Alasoadura said the present law in the petroleum sector was passed in 1950 and is ineffectual. He said the country may lose more if the four bills presented before the National Assembly are not passed and assented to by the president.

According to the senator, the four bills before the National Assembly, which aim to reform the oil sector, included Petroleum Industry Governance Bill, Petroleum Industry Administration Bill, Petroleum Industry Fiscal Bill and Petroleum Host and Impacted Communities Bill.

Source: THIS DAY

IMO Adopts Ban on Carriage of Non-Compliant Fuels

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The IMO’s Marine Environment Protection Committee (MEPC 73) adopted today the MARPOL amendment to prohibit the carriage of non-compliant fuel oil on board ships.

The ban relates to fuels intended for combustion purposes, propulsion or operation on board a ship, the IMO informed. The entry-into-force date is March 1, 2020.

The measure exempts ships that are fitted with exhaust gas cleaning systems or scrubbers.

The key issues being tackled by MEPC 73 since Monday, October 22, included reduction of greenhouse gas emissions from ships, further work on energy efficiency of ships, implementation of sulphur 2020 limit, and ballast water management treaty implementation among other things.

On Monday, the committee approved the follow-up program for IMO’s strategy on reducing greenhouse gas emissions from ships. The  program is intended to be used as a planning tool in meeting the timelines identified in the initial IMO strategy, which includes a range of candidate short-, mid- and long term measures yet to be considered.

However, the committee turned down the proposal for the introduction of an experience-building phase on the 2020 sulphur cap prohibiting ships from burning marine fuels with sulphur content higher than 0.5 pct. Instead, the IMO called for proposals on issues regarding fuel quality concerns to be submitted by May, 2019.

Source: World Maritime News

Revamping of Refineries: Port Harcourt Refinery Gets Financier

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PORT HARCOURT REFINERY

The Nigerian National petroleum Corporation (NNPC) has said that some of the financing companies it approached to revamp the country’s refineries have shown interest in Port Harcourt refinery.

Mr Ndu Ughamadu, Group General Manager, Group Public Affairs Division, disclosed this in an interview with the Newsmen on Friday in Abuja.

He said that a team of engineers from the corporation had gone abroad to source for financiers to ensure revamping of the major refineries in the country.

“About three financing companies have indicated interest but their names are yet to be made public but they have shown interest for Port Harcourt, Warri and Kaduna refineries

“ But they showed the most interest for the Port Harcourt refinery.

“Efforts are on, our team of engineers are abroad, seeking financing. What we want to do with refineries is to bring in financiers’ that will put in their money for rehabilitation instead of the NNPC.

“By doing that, they will source their funds from what we produce,’’ he said.

He reassured that with the ongoing commitment, the projected timeline of the Minister of State for Petroleum Resources Dr Ibe Kachikwu for the refineries to be up and running by 2019 would be achieved, particularly with the coming on stream of the Dangote refinery.

It will be recalled that Kachikwu said that the NNPC was expected to sign agreements with third-party financiers and contractors for the revamping of its 445,000 barrel per day (bpd) combined capacity refineries in Kaduna, Warri and Port Harcourt by October.

He also stated that the processes to ensure that the NNPC moves the combined production capacities of the refineries to 90 per cent were largely concluded.

He added that the signing of the agreements would soon follow.

Baru commends NPDC on 100% local content on gas facility

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The Nigerian National Petroleum Corporation (NNPC) has commended the Nigerian Petroleum Development Company (NPDC), for achieving 100 per cent local content input in the development of Oredo Integrated Gas Handling Facility (IGHF).

Dr Maikanti Baru, the Group Managing Director of NNPC, made the commendation when he visited NPDC, its upstream subsidiary on Wednesday, a statement released by the Corporation, on Thursday in Abuja said.

The GMD toured the NPDC’s Oredo Flow Station, Oredo Gas-to-Pan-Ocean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, all in Edo.

He said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC.

“From engineering, construction to erection of the various units, we feel very encouraged by the huge man-hours which you are putting in here, day and night, with full local content,” Baru told over 500 workers at the site.

“The IGHF is currently at 80 per cent completion. “ When completed in December, it will make provision for dehydration of gas and liquid extraction.

“ It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS),’’ he said

He described the Oil Mining Lease (OML) 111, where the gas projects were located, as one of the most significant assets of the NPDC.

According to him, it is where the corporation’s staff members and their contractors design, build and operate facilities hitherto operated by the International Oil Companies (IOCs).

“You could see that right from the well-design through to reception of the various liquids to the processing and disposal of the various outputs, it is fully indigenous. So, it cannot be better than this,” he added.

He said as a National Oil Company (NOC), the corporation was using this to showcase its ability to intervene.

“We are not just a player, we are also building capacity that can enable us intervene by taking over any assets whenever any contractor decides to opt out,” he said

Baru stated that the project’s funding constraints would be addressed soonest and noted that NNPC was considering alternative means to support and complete the project.

“All these projects are located within OML 111, one of our critical assets which we are keen on deriving maximum benefits from,” he stated.

Earlier, the Managing Director of the NPDC, Mr Yusuf Matashi, thanked the NPDC Board led by the GMD, for coming down to inspect the gas facilities, saying it was the first time the company was witnessing a highly-synchronised support towards the projects.

He said the LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.

“Another advantage is that it will ensure ease of distribution and penetration into the market. You can take LPG to every nook and cranny of the country from here. So, it is quite strategic,” he noted.

He said in line with NPDC’s Corporate Social Responsibility (CSR) efforts, the company had engaged the youth within the host community area, with a number of them fully involved in the local contracts around the project as well as the pipeline Right Of Way (ROW).

“We have also completed a Skills Acquisition Centre which is currently being furnished in line with the component of the project.

“We intend to commission the centre even before the project is completed.

“From our records, this is one project that has engendered cordial relationship with the Oredo community and we hope to replicate similar understanding in other areas within the Niger Delta,” he said

Also, the NNPC Chief Operating Officer, Upstream, Malam Bello Rabiu, expressed happiness that the project would be delivered within time and budget.

He also charged the workers to double the over one million man-hours achieved so far in the project without any incidence.

Located 34km southeast of Benin City, the OML 111 is an onshore field comprising five fields viz: Oki-Oziengbe-South, Aroh North, Koko, Oghama as well as Oredo, which has 12 out of its 15 wells currently producing.

(NAN)

US Confers Kachikwu with Multiple Honorary Citizenship Awards

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The Minister of State for Petroleum, Dr Ibe Kachikwu, was on Thursday, conferred with multiple honours, including honorary citizenship of the State of Georgia in the U.S.

Kachikwu was also conferred with honorary doctorate degree by the Trinity International University of Ambassadors, and Keys to the State of South Carolina and City of Stonecrest, State of Georgia.

The event, which held at the Capitol Hill of the state in Atlanta, also featured the declaration of Oct. 25 as `Emmanuel Kachikwu Day’ by the State of South Carolina.

Senatorial and Legislative hosts, the Black Caucus of the State Legislature, took turns to eulogise Kachikwu’s “unimpeachable” reputation for integrity, intelligence, fairness and kindness.

The legislators – Gloria Butler, Michael Rheft, Donzella James, Roger Bruce, Billy Mitchel, Howard Mosby, Erica Thomas, Sandra Scotts, Pam Stevenson, Jason Lary, and John King, also expressed pride at their African heritage.

State of Georgia has the largest Black Caucus in the U.S. hosting 60 members, and is described as the ‘heartbeat of African-Americans, with about 3.2 million black population.

Ms Dawkins Haigler, Chair Emeritus of the Black Caucus, and most of the other legislators, said they had done their ancestry tests, which confirmed that they were between 65 per cent and 85 per cent Nigerians.

The lawmakers said they always knew they were Africans and were proud to identify with their motherland, adding that they had sponsored several trips to Nigeria.

Responding to the awards, Kachikwu, who was visibly elated at the honours, said he was “extremely humbled” and dedicated the honours to President Muhammadu Buhari.

“Usually I don’t lack words but today, I think I do by the happenstance of today. I think the award is fantastic but what I think is more important is the symbolism of the awards.

“The fact that citizens of the United States, especially our Black brothers and sisters, decided today to recognise a very humble nation that has nearly half of the population of Africa and commands the great economic heights of Africa and is bound to be the leader of tomorrow in the world.

“That country is Nigeria; and for those of you who haven’t been there, you should be there; you should be in a hurry to get there.

“You will attest to the fact that it is only a matter of time before Nigeria finds its feet and finds its own and become a power to recognise.

“I thank President Muhammadu Buhari who gave me the opportunity to serve in various capacities that are bringing some of these awards today.

“Not only for his self belief but his determination as the leader to go outside the political mainstream and pick somebody he believed could help in the arduous task of trying to change the oil environment.

“It is still work in progress; there’s still a lot of work to be done but we’re very committed.

“The problem with Nigeria isn’t the disagreement that we have, it isn’t the things that we have not achieved, it isn’t the sometimes black sheep name that pervades all over the world about Nigeria that is not the problem with Nigeria.

“The problem of Nigeria is the unwillingness of the young and the old to forge collectively in a very transparent manner, to shake up what is vibrantly sleeping giant.”

According to him, Nigeria is primed for growth, success, generative leadership and to hopefully be the sitting home of most Black Americans.

Kachikwu said he was always very humbled to be called a Nigerian because “despite its challenges, it is the most wonderful place in the world to be in”.

The minister also said he was always proud to be called a ‘minister’ in the sense in that it was not different from an ordained pastor there to serve his people with a lot of transparency.

“Quite frankly, I’m nothing more than a humble servant. And if there’s something this President has achieved, it is the fact that ministers have become commonplace people, no longer the ego-strapped people to be celebrated.

Kachikwu recalled the challenges the administration was confronted with when it came on board, including the crash of oil price, the lowest crude production in decades, and recession.

He, however, commended management and staff members of the ministry who worked assiduously with him.

According to him, they set ambitious goals, and expressed pride that most of the targets are being met.

“So, today, the recognition that I get, I receive in honour of the President of the Federal Republic of Nigeria, President Muhammadu Buhari.

“Also, in honour of my colleagues who have worked very deeply with me and I think some of the things that we’ve achieved over the last three years, we didn’t think were possible.

“Into the next five years, I see a Nigeria where there will be power available for all nationals, where our refineries will work so we do not have to import petroleum products, where young people can set up businesses and do not need to know anybody in the system to be able to make that business grow.

“A Nigeria where irrespective of where you come from – North, South, East and West – we will become brothers,” he said.

Among the dignitaries who attended the event were the Permanent Secretary of the ministry, Mrs Folashade Yemi-Esan, Directors, heads of agencies of the ministry, Nigerian officials in the U.S., and members of the Nigerian community, among others.

Culled from Vanguard

Why Nigeria will remain an important player in global oil market — OPEC Rep

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Nigeria’s representative in Organization of Petroleum Exporting Countries (OPEC), Mele Kyari, has said the country cannot be ignored in the global oil market due to the growing positive outlook of its oil output.

Mr Kyari, who is also the Group General Manager, Crude Oil Marketing Division, Nigerian National Petroleum Corporation (NNPC), was speaking on Thursday at a conference organised by Argus Media in Le Richemond, Geneva, Switzerland.

Nigeria’s crude oil from Forcados, Qua Iboe, Escravos, and Bonny oil fields commonly referred as “sweet crude” is a special blend of crude generally sought after by consumers for its low sulphur content.

Despite fears about possible output cut as a result of insurgency and vandalism in the Niger Delta, Mr Kyari said Nigeria understands its important position and has taken steps to consolidate its role in the global demand and supply oil market balancing.

Nigeria is very conscious of the fact that what happens in her oil industry could potentially impact the global demand and supply balance. We have taken steps to correct the issues that affected investments and production growth in recent years,” he said.

Nigeria has the second highest crude oil reserves in sub-Saharan Africa (about 37 billion barrels of proven oil), after Libya. That means if Nigeria continues to produce at the current level, even without doing anything, it will still be producing in the next 35 to 40 years.

This means for the period, Nigeria will continue to be a relevant supplier of at least two million barrels of crude oil into the international oil market every day. So, Nigeria cannot be ignored in the global oil market for a long time.”

In January 2017, Nigeria and Libya were granted exemption from the output cut resolution by OPEC to stabilise global oil prices.

During the period, due to rising incidences of attacks and sabotage of oil facilities by armed Niger Delta militants, daily oil output averaged 1.7 million barrels.

But, Mr Kyari said since 2017 Nigeria’s oil production climbed to about 1.8 million barrels per day, and about 2 million barrels by the end of September 2018.

He said the outlook of the country’s production appears brighter with the Egina, a deep offshore oil field being developed by Total Nigeria, on course to commence production by December 2018 or latest by the first quarter of 2019.

About 200,000 barrels of crude oil would be expected from the oil field, to boost Nigeria’s output from 2 million barrels in 2018 to about 2.2 million barrels by the first quarter of 2019.

Another 200,000 barrels per day production is also being expected from Agbani production.

“What that means is that government and the market can plan with that production figure. Besides, it is certain Nigeria can easily produce about 2.3 million barrels a day in 2019,” Mr Kyari said.

On why Nigeria was not investing for over five years until 2015, the OPEC representative said it was not lack of money, but due to the production arrangements involving government contribution to the cash calls pool jointly funded by the joint venture partners.

Under the arrangement, Mr Kyari said Nigeria under-invested its share of the cash call in joint venture operations by about $8billion by middle of 2015.

Similarly, he said JV partners were no longer contributing to the cash call, as they could afford to risk their resources, resulting in exploration activities and final investment decisions (FIDs) being scaled down over time.

Following a change in government and the management of the oil industry, Mr Kyari said a new approach resulted in an agreement with the JV partners for a five year plan on the liquidation of the legacy debts.

Since the new arrangement, Mr Kyari said cash call payment has been regular, with investment and exploration returning gradually, along with FIDs as well as resolution of integrity issues around onshore operations.

On insurgency and vandalism in the Niger Delta, which resulted in crude oil theft, the OPEC representative said a new government security structure now allows engagement with the communities as interest groups in monitoring and protection of the pipelines.

“With all these arrangements, the country has not reported any outages as a result of activities of vandals in the last six months. Integrity issues, which came as a result of lack of investments, have been addressed, allowing our assets to come back to the appropriate production environment.

“As a result, there is a change in confidence by our partners in our system and also Nigerians, such that by the end of the day, we see a gradual return of stability in the Niger Delta region.

“So, there is a real possibility the numbers being thrown around for outages from Nigeria may not happen in 2019 and 2020, because of what the country is doing,” he said.

Culled from Premium Times

Discos Huge Indebtedness Stifling GENCOs, APGC cries out

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Oge Obi

The Association of Power Generation Companies (APGC) has said that discos continuous failure in their monthly remittances to the NBET is badly hurting power generating companies (Gencos).

According the APGC, the Discos have continuously defaulted in their monthly remittances to the NBET.

The Executive Secretary of APGC, Dr. Joy Ogaji disclosed this on Wednesday in a response to questions emailed to her by a Correspondent with Punch Newspaper.

Citing reports from the NBET, the Executive Secretary stated that out of the N44.85bn invoice sent to the Discos in January, only N6.08bn was received from four firms, while seven others paid nothing.

She further disclosed that the Discos’ monthly revenue remittance as of Thursday was below 30 per cent.

“The Gencos have not been paid since June 2018. How then can the Gencos pay their gas suppliers? So, right now, we are being owed and our gas suppliers are also being owed over N1tn,” Ogaji said.

She stated that it was important for Federal Government to take cognisant of the impact of the non-payment of gas cost “even as thermal plants’ supply forms about 80 per cent of electricity in the sector.”

She further remarked that poor gas supply as a result of the non-payment of invoices would seriously affect power supply in the country.

According to the ES, the outstanding payments include the balance due to the Gencos under the Central Bank of Nigeria’s N213bn Electricity Market Stabilisation Facility; unpaid invoices from January 2015 to December 2016, with accrued interests; and interest payments due on the outstanding invoiced amounts.

“The terms of the Power Purchase Agreement between the Gencos and the NBET clearly provides for interest payment on invoices not paid within the period (45 days) stipulated by the PPA. “Furthermore, it is a commercial aberration for a party in a commercial transaction, who is owed and denied the benefit of its money, not to be entitled to interest payment.

“The Gencos’ PPA with the NBET also provides for capacity payment, which is not being made. Capacity payments are global norms in the electricity supply industry and play critical roles in enabling the Gencos to optimise their power generation capacities and making such capacities available when called upon. Beyond available capacity, the Gencos are also entitled to payment for deemed capacity.

“The result of the foregoing is that the Gencos have not been receiving full payment for the electricity supplied by them, while the gas suppliers have also not been receiving full payments for the gas supplied to the Gencos. This has accounted for the sub-optimal growth, inefficient operation and the current dire situation of the Gencos, which has huge negative impact on the entire power sector.”

ExxonMobil Resumes Talks in Ghana

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ExxonMobil Corp. has reportedly resumed talks with local Ghanaian oil firm, Ghana Oil Co. (GOIL). The talks revolve around the US firm’s need to find a local partner as the deadline looms near.

If talks between the two firms bear fruit GOIL will end up with a 5% stake in the Deepwater Cape Three Points block. Talks had previously stalled after the government opposed a tie-up. The government holds a 34% stake in GOIL. Some stakeholders are concerned that stakes between the two oil firms would give the private sector in Ghana little opportunity to benefit from the exploration activities.

According to a Bloomberg report, ExxonMobil moved on to propose a transaction with Sam Jonah, the Ghanaian chairman of Jonah Capital. This tie-up was also resisted by some government officials on the grounds that a deal wouldn’t be broad-based or encourage the transfer of exploration skills to local professionals, said the people.

After further talks in which Exxon expressed frustration about the objections against its proposals, the government agreed that it would prefer a deal with GOIL over Jonah, so the talks resumed

Youths Vow to Resist SNEPCO’s Movement out of Onne

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Youths in Rivers State have restated their opposition to the alleged plans by Shell Nigeria Exploration & Production Company to relocate its Supply Base from Onne, Rivers State, to Lagos, vowing to stop any ship that tries to load the property of the company from sailing.

The threat is coming as part of the stiff opposition to the alleged planned relocation of the SNPECO supply base to Lagos by several groups, including the Rivers State Youth Federation, Onne Youths Council, Ijaw Youths Council, the Concerned Community Women of Rivers and the Rivers State Government.

Workers at the supply base; the Paramount Ruler of the Onne community, King Dennis Osaronu; as well as former Niger Delta warlord and the Amanyanabo of Okochiri Kingdom, Okirika Local Government Area of Rivers State, King Ateke Tom, have called on SNEPCO to shelve the planned relocation in the interest of peace in the Niger Delta region.

The President, OYC, Philip Tenwa, said no ship would be allowed to leave Onne with the property of SNEPCO because the relocation of the company would lead to the loss of more than 5,000 direct and indirect jobs in the community.

He also warned against surreptitious removal of the company’s property from Onne, saying this would be counterproductive.

Tenwa alleged that SNEPCO recently directed that all its property and equipment, including turbines, engine spares and miscellaneous equipment spares be loaded into containers and moved out of the Onne Port, where it has operated for more than 20 years, to another port in Lagos.

The OYC leader stated that apart from the small entrepreneurs and contractors, whose businesses would be affected by SNEPCO’s relocation, moving the supply base out of the Onne Free Zone would negatively affect the economy of Rivers State and the larger Niger Delta region.

“It will also put the means of livelihood of many families and the future of our children at risk as well as further swell the growing unemployment market in the Niger Delta region,” he added

Earlier this month, the IYC had said it would not allow the 2019 general elections in the Niger Delta region if SNEPCO failed to reverse the relocation of its logistics base from Onne to Lagos.

The IYC President, Oweilaemi Pereotubo, maintained that the company’s resolve to move vital equipment, including turbines to Lagos from the Onne Free Trade Zone, where it has been operating for over 20 years, would lead to loss of thousands of jobs.

Pereotubo said, “We are totally against the relocation of SNEPCO out of Niger Delta to Lagos. If they claim the Niger Delta is not safe for them to live, it will also not be safe for them to carry out their oil and gas exploration and exploitation works.

“Our position on the relocation is irreversible and we are demanding that if they do not relocate to the Niger Delta between September 2018 and January 31, 2019, the Ijaw will ensure that there are no elections in the South-South come 2019.”

Don’t Hoard Fuel, We Have Enough in Stock, NNPC Warn Consumers

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Oge Obi

In a proactive step to discourage petroleum products consumers from hoarding products as the festive season approaches, the Nigerian National Petroleum Corporation (NNPC) has warned consumers across the country to desist from hoarding and mishandling of the products as dry season sets in.

NNPC gave the warning in a statement signed by the Corporation’s spokesman, Mr. Ndu Ughamadu on Wednesday in Abuja.

He said that experience had shown that at this time of the year, commuters stock petroleum products at home or moved about with them in their vehicle boots, thereby exposing themselves and others to serious dangers.

Recalling a recent fire incident involving a car laden with fuel that went up in flames while in motion at Umuode community, Osisioma Ngwa Local Government Area of Abia State; Ughamadu said that the incident showed the danger of transporting inflammable petroleum products in vehicle not made for such purpose.

He also advised communities hosting NNPC facilities to desist from taping products from NNPC pipelines or engaging in activities that might lead to spill of petroleum products.

He said, “Individuals involved in such an act may suffer untold casualties,”.

He encouraged communities in NNPC’s areas of operations to report suspicious movements around the corporation’s facilities to the law enforcement agencies.

He noted that observing basic safety rule of keeping away from areas where inflammable petroleum products’ spills had occurred could save lives and property.

Meanwhile, the NNPC Group Managing Director, Dr Maikanti Baru, has assured motorists and other consumers of petroleum products of availability of white products for their comfort as the yuletide draws near.

Baru explained that NNPC has 37 days fuel sufficiency adding that strategies had been put in place to ensure that Nigerians experience a hitch-free festive period.

JMMC expresses satisfaction with developments in the oil market

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No 22/2018
Vienna, Austria
25 Oct 2018
The Joint Ministerial Monitoring Committee (JMMC) reviewed the monthly report prepared by its Joint Technical Committee (JTC), including the overall conformity levels of the countries participating in the ‘Declaration of Cooperation’, during the month of September 2018, as well as the short-term prospects of the global oil market.

 

The JMMC noted that countries participating in the ‘Declaration of Cooperation’ achieved a conformity level of 111% in September 2018, which shows significant progress towards the goal set at the 4th OPEC and non-OPEC Ministerial Meeting of 23 June 2018.

The Committee expressed overall satisfaction with the collective performance of Member Countries in the month of September. The Committee also reviewed recent market fundamentals, which showed a very comfortable supply level relative to demand. The committee however expressed concerns about rising inventories in recent weeks and also noted looming macro economic uncertainties which may require changing course.

The JMMC directed the JTC to continue to monitor oil fundamentals and market conditions as well as conformity levels in its efforts to maintain market balance.  It further directed the JTC to continue to study the 2019 outlook and present options on 2019 production levels to prevent re-emergence of a market imbalance.

The next meeting of the JMMC is scheduled to take place on 11 November 2018 in Abu Dhabi, UAE.