Brent crude led oil prices higher, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed U.S. inventories fell to a 3-1/2 year low.

Brent crude futures had risen 66 cents, or 0.9 percent, to $74.59 a barrel by 0019 GMT, after gaining 0.7 percent on Wednesday.

U.S. West Texas Intermediate crude futures were up 22 cents at $69.52 a barrel, after climbing more than 1 percent in the previous session.

Saudi Arabia, the world’s biggest oil exporter, said on Thursday that it was “temporarily halting” all oil shipments through the strategic Red Sea shipping lane of Bab al-Mandeb after an attack on two big oil tankers by Yemen’s Iran-aligned Houthi movement.

Saudi Energy Minister Khalid al-Falih said in a statement that the Houthis had attacked two Saudi Very Large Crude Carriers (VLCCs) in the Red Sea on Wednesday morning, one of which sustained minimal damage.

“Saudi Arabia is temporarily halting all oil shipments through Bab al-Mandeb Strait immediately until the situation becomes clearer and the maritime transit through Bab al-Mandeb is safe,” the minister said.

Most exports from the Gulf that transit the Suez Canal and the SUMED Pipeline also pass through Bab al-Mandeb strait.

An estimated 4.8 million barrels per day of crude oil and refined petroleum products flowed through this waterway in 2016 toward Europe, the United States and Asia, according to the U.S. Energy Information Administration.

The Bab al-Mandeb strait, where the Red Sea meets the Gulf of Aden in the Arabian Sea, is only 20 km (12 miles) wide, making hundreds of ships potentially an easy target.

Prices were also supported by official data showing U.S. crude oil inventories last week tumbled more than expected to their lowest level since 2015 as exports jumped and stocks at the Cushing hub dropped.

Crude inventories fell 6.1 million barrels in the week to July 20, compared with analyst expectations for a decrease of 2.3 million barrels, the EIA said on Wednesday.

At 404.9 million barrels, inventories, not including the nation’s emergency petroleum reserve, were at their lowest level since February 2015.

• Reuters

Rivers State Governor, Chief Nyesom Wike, says the state is acquiring mobile cancer screening equipments to detect cancer-related ailments arising from the air pollution from hydrocarbon soot in the state.

Black soot in Rivers State is believed to be caused by incomplete combustion of hydrocarbons by artisanal oil refiners and security agencies who sets ablaze stolen petroleum products, while multinationals oil companies operating in the state have also been fingered.

Governor Wike, speaking at the 58th Annual General Meeting and Scientific Conference of the Nigerian Medical Association, NMA, in Port Harcourt, said the state government was taking lead role to curb activities leading to the soot.

Wike, represented at the event by the State Commissioner of Health, Dr. Princewill Chike, explained that the state government was currently collecting data, procuring equipment and carrying out research on how to end the soot.

He frowned at the high level of environmental degradation in some communities in Degema, Gokana, Asari Toru and Akuku Toru Local Government Areas of the state, where illegal refining activities were taking place and called on security agencies to support the fight against illegal refineries.

“The ministry of health has taken the bull by the horn by initiating investigations and study to look at the respiratory system at designated cancer screening centres so that related cancer disease, which we believed are associated with this soot, can be handled effectively.

“So far, we are not relenting, we are involving specialists in different fields to also assist us.”
Earlier, the convener of StopTheSoot Campaign, Mr Eugene Abel, accused the Rivers State chapter of NMA of not doing enough in the face of the soot menace, especially as  those treating the final consequence or victims of the pollution.

However, NMA Chairman in Rivers State, Dr. Datonye Alasia, debunked the accusation, saying the cause of the pollution will be unravelled in due course as investigations and research are ongoing.

It should be noted that the theme of the 58th Annual General Meeting and Scientific Conference of the Nigerian Medical Association, is “Healthcare Delivery in Rivers State, a Situation Analysis.”

The Department of Petroleum Resources, DPR, has said it approved 16 new oil and gas fields’ development plan, FDP, in 2017.

According to a document obtained from the agency on Thursday at the ongoing three-day workshop for media practitioners in Lagos, the approval of the new fields will increase the nation’s oil and gas production by 560,463 barrels per day when the fields are fully commissioned.

The DPR is the regulator responsible for ensuring the sustainable development of Nigeria’s oil and gas resources across the value chain for sake of stakeholders through effective regulation and entrenchment of world-class professionalism, accountability and transparency.

In May, the Ministry of Petroleum said it had approved the recommendation by DPR, to revoke three Oil Mining Leases, OMLs, operated by Shell Petroleum Development Company, a local arm of the Royal Dutch Shell, the Anglo-Dutch major, according to Africa Oil and Gas report.

Shell had submitted 17 OMLs for renewal and these are OMLs 11, 17, 20, 21, 22, 23, 25, 27, 28 31, 32, 33, 35, 36, 43, 45 and 46. The properties were due to expire in 2019.

Three of the acreages – OMLs 31, 33 and 36 – were revoked.

Licenses for 13 of the remaining 14 leases were renewed but the DPR proposed that OML 11 be split into three because it was too large (2,800sq km). Those renewed have a new lease of life for another 20 years.

Royal Dutch Shell plc today announces the immediate start of a share buyback programme in accordance with authority granted by shareholders at the company’s 2018 Annual General Meeting1.

Chief Executive Officer Ben van Beurden commented: “Today we are taking another important step towards the delivery of our world-class investment case, with the launch of a $25 billion share buyback programme.

Our financial framework remains unchanged. Our free cash flow outlook and the progress we have made to strengthen our balance sheet give us the confidence to start our share buyback programme.

Our intention remains to buy back at least $25 billion of our shares over the period 2018-2020, subject to further progress with debt reduction and oil price conditions.”

The maximum number of ordinary shares which may be purchased by the company under the buyback programme is 834 million, which is the maximum pursuant to the authority granted by shareholders at the company’s 2018 Annual General Meeting1.

In the first tranche of this buyback programme (the ‘initial programme’) the company has entered into an irrevocable, non-discretionary arrangement with a broker to enable the purchase of A ordinary shares and/or B ordinary shares up to and including October 25, 2018. The aggregate maximum consideration for the purchase of A ordinary shares and B ordinary shares under the initial programme is $2 billion. The shares bought back under the initial programme will be whichever of the A ordinary shares and/or B ordinary shares is economically the least expensive on a given trading day.

The broker will make its trading decisions in relation to the company’s securities independently of the company. The initial programme will be carried out on the London Stock Exchange and/or on CBOE Europe Equities and will be effected within certain pre-set parameters. It will be conducted in accordance with the company’s general authority to repurchase shares granted by its shareholders at the company’s Annual General Meeting held on May 22, 2018 [1], and in line with Chapter 12 of the Listing Rules, Article 5 of the Market Abuse Regulation 596/2014/EU dealing with buyback programmes and the Commission Delegated Regulation (EU) 2016/1052.

The purpose of the initial programme is to reduce the issued share capital of the company to offset the number of shares issued under the Scrip Dividend Programme and to significantly reduce the equity issued in connection with the company’s combination with BG Group. All shares repurchased as part of the initial programme will be cancelled.

Any further tranches of the buyback programme, which may be conducted after completion of the initial programme, will be announced in due course.

The existing shareholder authority to buy back shares granted at the company’s 2018 Annual General Meeting expires at the earlier of the close of business on August 22, 2019, and the end of the date of the company’s 2019 Annual General Meeting. The company expects to seek renewal of shareholder authority to buy back shares at subsequent Annual General Meetings.

The Board of Directors of Chevron Corporation has declared a quarterly dividend of one dollar and twelve cents($1.12) per share, payable September 10, 2018, to all holders of common stock as shown on the transfer records of the Corporation at the close of business August 17, 2018.

Shell Exploration and Production Mauritania (C-10) B.V. and Shell Exploration and Production Mauritania (C-19) B.V. (“Shell”) today signed two Production Sharing Contracts with the government of Mauritania for the exploration and potential future production of hydrocarbons in the offshore blocks C-10 and C-19.
“This move represents Shell’s entry into the West African Atlantic Margin exploration basin, which has significant potential,” said Andy Brown, Shell’s Upstream Director. “We look forward to working with the government and people of Mauritania as we bring our expertise and technical capability to help develop the country’s emerging energy sector.”

The Mauritanian Minister of Oil, Energy and Mining, Mohamed Ould Abdel Vetah, said: “Shell’s new entry in the Mauritania offshore area represents an important added value to the exploration activities and will contribute to maintain the momentum for developing the energy sector in Mauritania.”

Following the customary government approvals of the contracts, Shell will set up an office in Nouakchott and begin exploration activities, starting with reprocessing and analysis of existing seismic data and acquisition of new data.

Shell will operate the exploration programme with a 90 percent interest. Société Mauritanienne des Hydrocarbures et de Patrimoine Minier, the national oil company of Mauritania, holds a 10 percent interest.

Additionally, Shell and the government of Mauritania have agreed in a Memorandum of Understanding to jointly evaluate further offshore exploration opportunities, examine new ways of meeting the country’s domestic energy needs, and build capability in the energy sector.

Blocks C-10 and C-19 are located offshore Mauritania in water depths ranging from 20 to 2,000 metres. The total area of two blocks is approximately 23,675 square kilometres.

The new block C-10 consists of three previous blocks – C-10, C-28 and C-29.

Shell Exploration and Production Mauritania (C-19) B.V. has agreed with Chariot Oil & Gas Investments (Mauritania) Limited, a wholly owned subsidiary of Chariot Oil & Gas Limited (AIM: CHAR), a back in right for a working interest of between 10% to 20% equity in the C-19 block at a future date, subject to the customary regulatory approval by the Mauritanian Ministry of Petroleum, Energy and Mines.

Oil prices stabilised on Monday as worries over production losses were outweighed by concerns that trade disputes would reduce economic growth and hit global energy demand.
Benchmark Brent crude oil LCOc1 was up 15 cents at 73.22 dollars a barrel by 7.50 GMT while U.S. light crude CLc1 was unchanged at 68.26 dollars.

Finance ministers and central bank governors from the world’s 20 biggest economies ended a meeting in Buenos Aires over the weekend calling for more dialogue to prevent trade and geopolitical tensions from hurting growth.

“Downside risks over the short and medium term have increased,” the finance leaders said in a statement.

The talks occurred amid escalating rhetoric in a trade dispute between the United States and China, the world’s largest economies, which have already slapped tariffs on 34 billion dollars worth of each other’s goods.

President Donald Trump threatened on Friday to impose tariffs on all 500 billion dollars of Chinese exports to the U.S. unless Beijing agreed major changes to its technology transfer, industrial subsidy and joint venture policies.

Economic and oil demand growth are closely correlated as expanding economies support fuel consumption for trade and travel, as well as for automobiles.

Worries over the impact of a trade war have balanced concerns over production losses and lack of supply at a time of rising demand.

U.S. energy companies last week cut the number of oil rigs by the most since March following recent declines in oil prices.

Drillers cut five oil rigs in the week to July 20, bringing the count down to 858, Baker Hughes energy services firm said on Friday.

The U.S. rig count, an early indicator of future output, is higher than a year ago, when 764 rigs were active as energy companies have been ramping up production in anticipation of higher prices in 2018 than previous years.

Hedge funds and money managers cut their bullish wagers on U.S. crude for the first time in nearly a month, a further sign of weaker sentiment for the market, the U.S. Commodity Futures Trading Commission said on Friday.

Most of the reduction occurred as money managers reduced their long position, or bets that oil prices would rise.

The market seemed unperturbed after Trump warned Iran not to threaten the U. S. or face consequences, with oil prices little changed after he sent a tweet – written all in uppercase – directed at Iranian President Hassan Rouhani.

Nigeria and the Republic of Niger, Tuesday signed an agreement for the construction of a petroleum pipeline and refinery.

The Memorandum of Understanding, MoU, for the project was signed by Nigeria’s Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and Niger Republic’s Minister of Energy, Foumakaye Gado, at a ceremony in Abuja.

The pipeline is expected to run from Niger to Katsina State, where the new refinery would be sited.

Ahead of the signing ceremony, President Mahammadou Issoufou of Republic of Niger arrived in Abuja on Monday, and witnessed the signing of the MoU with President Muhammadu Buhari.

President Buhari, at the ceremony, said Nigeria and Niger Republic have “excellent relations for several decades as neighbours”, and share common cultural and historical ties.

He said: “Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a “win – win” for both nations”.

President Buhari also said the new project will not only provide a reliable market for the stranded crude from the Niger Republic but will also provide petroleum products for Nigeria, as the country “aggressively pursues its aspiration on petroleum product self-sufficiency”.

He was of the hope that the current exploration efforts in the Northern part of Nigeria, including (Chad Basin, Gongola Basin, Sokoto Basin, Bida Basin and Benue trough) will also result in the provision of additional hydrocarbon inflow to the corridors of the proposed pipeline and a potential refinery around Kaduna State.

“I am happy that several productive engagements held between the Nigerian and Nigerien authorities have resulted in the positive agreements to progress with activities on this important project. This project will be private sector driven with the full support of the governments of both countries and I am happy to understand that several expressions of interest from prospective investors are already being received,” he said.

Speaking earlier, Dr. Kachikwu said Buhari has personally driven the initiative to have the pipeline and the refinery.

He said Buhari was propelled by ”the sole desire to create a more favourable investment opportunity in Nigeria’s downstream sector.”

He said as part of the strategy to reposition the Nigerian oil and gas industry, a roadmap of short and medium term priorities tagged “7big wins” was developed.

Shortly after the signing of the MoU, Buhari inaugurated a Steering Committee for the projects which is to be co-chaired by the Nigerian and Nigerien ministers.

President Buhari also inaugurated a separate team to develop the implementation roadmap and strategy for both the refinery and pipeline projects.

BMI Research announced Thursday that it has revised up its oil price outlook for the next two years.

In a report sent to Rigzone, the research firm revealed that it now forecasts an annual average for Brent crude oil of $75 per barrel for 2018 and $80 per barrel for next year.

“This compares to our previous forecast of $73 per barrel and $78 per barrel, respectively,” oil and gas analysts at BMI Research said in the report.

“The revision is being driven by the supply side, as we factor in the impact of the US’ decision to re-impose secondary sanctions on Iran, renewed global supply outages and shrinking spare capacity,” the analysts added.

“The decision by OPEC+ to begin returning cut barrels to the market and emergent headwinds for demand have prevented a larger hike in the forecast,” the analysts continued.

On the demand side, BMI said its outlook remains “broadly bullish” but warned that risks are rising.

“Global GDP growth has desynchronized, with the Eurozone and Japan disappointing expectations and a number of EMs [emerging markets] showing signs of strain. Several factors signal a more challenging backdrop is forming, including slowing credit growth, a rising dollar and tightening monetary conditions,” BMI analysts said in the report.

“Sweeping subsidy reforms across Latin America, Africa, Asia and the Middle East may also weigh on demand,” the analysts added.

The Nigeria Customs Service (NCS) says it has embarked on Time Release Study (TRS) to measure the efficiency of its trade facilitation scheme and reduce the time of cargo clearance.

Mr Wale Adeniyi, Deputy Commandant, Customs Training College, Gwagwalada, Abuja, disclosed this in an interview with the News Agency of Nigeria (NAN) at a workshop on TRS in Lagos on Thursday.

NAN reports that the workshop, organised in conjunction with World Customs Organisation (WCO), was attended by clearing agents, freight forwarders, terminal operators and government agencies operating at the ports.

Adeniyi, coordinator of the study, said WCO had deployed some tools to test the efficiency of customs administration in Nigeria.

According to him, TRS is a scientific way of measuring the time it takes between the time of arrival of goods and the time of clearance.

“To do this, the Comptroller-General of Customs (CGC), Retired Col. Hameed Ali, has set up a working group comprising representatives of all stakeholders that have anything and everything to do with the clearance of goods.

“The group’s mandate is to design the scope, methodology, sampling method and how to publicise the results that will come out of the study.

“The group will also make recommendations and will implement the recommendations that will come from the study.

“The NCS is working in partnership with the World Customs Organisation that is providing technical expertise and training of working group members,” he said

Adeniyi said that the group had been able to validate the business process involved in clearance of goods and accessing online tools for conducting TRS.

He explained that the group would fix a date to design and test the questionnaire it collected from the data.

The deputy commandant said that to achieve Federal Government’s Executive Order on Ease of Doing Business at the ports, government agencies had constituted the port procedures into a single platform.

He said that both customs and terminal operators were working towards 24-hour cargo clearance to make Nigeria the hub in West and Central Africa region.

Earlier at the workshop, Nigerian Ports Authority (NPA) Harbour Master, Capt.  Uduiguomen Eboreime, said it took a vessel less than an hour to berth after arrival at Apapa port.

Eboreime said that before any vessel could berth at the ports, such vessel would have paid NPA bills before the agent could have access to the cargo.

Mr Collins Farinto, Deputy President, Association of Nigerian Licensed Customs Agents (ANLCA), said that efficient cargo clearance procedures could facilitate quick clearance of goods at ports.

He urged customs authorities to improve on educating the public on clearing procedures to reduce the time spent in cargo clearance.

In his closing remarks, Apapa Port Customs Area Controller, Jibrin Musa, urged all stakeholders to comply with government regulations concerning cargo clearance.

Musa also urged stakeholders to support the comptroller-general of customs’ revenue generation and trade facilitation mandate.

As a country, Senegal had largely been overlooked by the oil and gas industry

In 2014, Cairn and its joint venture partners made one of the world’s biggest oil discoveries and this was followed by Kosmos with significant gas discoveries.  “The region has now evolved from a frontier to an emerging hydrocarbon opportunity attracting the attention of the global industry,” Eric Hathon, exploration director at Cairn Energy, said. “In the last three years we have operated three safe and successful drilling programmes and laid the foundation for a multi-phase development plan.”

Dakar, where Cairn has an office and also built a supply base in the international port, is an attractive and exciting place to operate.  “We have been greatly encouraged and supported by the Senegalese authorities who fully recognise that a sustainable industry is potentially transformational for the country” Hathon added.

Developing region

Given that the industry is relatively new, local industry expertise is just starting to develop and creating capacity through training and education is a key part of operations.  “We are committed to delivering lasting and social economic benefits in Senegal, including, energy security and revenues, employment, development of an infrastructure and social investment,” Hathon continued. “Cairn’s belief is that the discovery and development of sustainable oil production will greatly benefit the national economy and local population. The President of Senegal, who has an industry background having led the national oil company, Petrosen, has established Cos-Petrogaz to advise the government along with the Energy Ministry on the strategic direction and policy for the development of hydrocarbons.”

Since Cairn’s initial investment and the major discoveries, Senegal has moved from having no oil presence to becoming established as one of the top ten countries for oil and gas resources in Sub-Saharan Africa in the last five years. “We are proud to have opened up a new oil province and look forward to continuing to work with the government to deliver lasting and positive social and economic benefits,” Hathon said.

Can you tell me how the operation is progressing?

The field development concept for the SNE discovery has been selected and the joint venture is now focused on development, planning milestones leading up to first oil expected in 2021-2023. “We are focused on the Evaluation Report, which will outline the basis of commerciality of the project,” Hathon explained. “Key work is also progressing on detailed concept and front-end engineering and design with preferred contractors beginning in the second half of 2018. The Exploitation Plan, outlining the full life of the development plans and options is also targeted for submission in the second half 2018. Government approval is targeted for the end of 2018, with the final investment decision thereafter.”

Cairn is currently operating with 40 per cent working interest in the three blocks alongside Woodside with 35 per cent, FAR with 15 per cent and the Senegal National Oil Company, Petrosen with 10 per cent.

According to Hathon, the Atlantic margin is a key area of exploration focus and Cairn continually review suitable opportunities in the wider region.

As part of its commitment to impacting communities, Lumos, a solar power and off-grid solar home systems provider has donated 100 units of customized Solar Powered Systems to the Nigerian Army.

The presentation which took place at the Monguno Army Barracks, Borno State, was part of activities to mark the 2018 Nigerian Army day celebrations. At the event, Ojoma Okotie, Sales Director, Lumos Nigeria, while speaking on behalf of Houssam Azem, CEO Lumos Nigeria, pointed out the obvious synergies between the Lumos mobile electricity system and the mobility of a modern fighting force, such as the Nigerian army.

She said: “As a highly mobile and proficient force, we are excited that the noiseless, smokeless and solar powered systems could become part and parcel of the Nigerian Army’s deployment kit going forward. This is part of our ongoing social investments into the communities where we do business, what better way to flag this off than by supporting our troops?”

Source: Oriental News

The Nigerian National Petroleum Corporation (NNPC) has commenced comprehensive community integration and stakeholders’ engagement to sensitize dwellers of Iwure, Ojor and Osomba/Akin communities of Cross River State ahead of planned oil palm-based biodiesel project in that part of the state.

A release by Corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said the 26, 000 hectares facility was designed to accommodate an oil palm plantation co-located with bio-diesel, crude palm oil co-generation plants and other facilities.

Already, officials of the corporation’s Renewable Energy Division (RED) have embarked on the sensitization campaign across affected communities, providing information on the rationale and projected benefits of the biofuels projects in the state.

The NNPC Research and Development Division (R&D) is also being engaged for the conduct of Environmental and Social Impact Assessment (ESIA) for the projects.

The release said that the plant was projected to generated about 14 megawatts of electricity from empty fruit bunches and the residue from oil palms.

Under the arrangement, the oil palm would be processed into fuel grade Biodiesel and industrial crude palm oil as by-products. The Biodiesel will be blended with diesel in a mix of 20 per cent biodiesel and 80 per cent diesel and sold as B20 in the domestic market. Any utilized biodiesel quantity would be exported to the international market.

The NNPC Cross River bio-fuel project is in tandem with renewed drive by the corporation to develop biofuels in Nigeria through partnership with core investors to create a low carbon economy and link oil and gas sector to the agricultural sector. This is also to mitigate the adverse effect of climate change and the transformation of NNPC into an integrated energy company with diverse portfolio.

The business model would involve a Special Purpose Vehicle (SPV) comprising NNPC, State Government and the Core-investor. The state Government is expected to provide land as equity while core investor takes more than 50 per cent equity and operate the venture leaving NNPC and state Government with minority share of less than 50 per cent.

So far, Kebbi, Ondo, Taraba, Benue, Jigawa, Kogo, Adamawa have shown interest in partnering with NNPC in biofuels projects.

Source: NNPC