Despite the subsisting order of a Federal High Court that all parties should maintain the status quo, General Electric (GE) International Operations Nigeria Limited has directed Arco Petrochemical Engineering Company Limited to demobilise from the multi-million dollar maintenance service contract for gas turbines and related equipment for OB/OB, Ebocha and Kwale Gas plants in Delta State.
Another gale of oil block divestment may hit Nigeria very soon, as Eni SpA, Italy’s largest oil company, is considering selling part or all of its onshore Nigerian operations as it seeks to divest peripheral businesses amid a drop in oil prices, people familiar with the matter say.
If this happens, analysts say it would boost local capacities of Nigeria in the upstream sector of the oil and gas industry
The Nigeria Liquefied Natural Gas Company (NLNG) is expected to take delivery of four LNG carrier ships before year-end and another two next year, its chief executive said, positioning the state-backed gas exporter to expand its share of the growing market.
NLNG signed agreements with South Korea’s Samsung Heavy Industries and Hyundai Heavy Industries in 2013 to acquire six LNG carrier ships, costing more than $1.2 billion, to boost its fleet of 23.
The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, Hajiya Zainab Shamsuna-Ahmed, on Wednesday said between 2009 and 2012, about 160 million barrels of oil valued at $13.7bn was stolen under the watch of the national oil giant, Nigerian National Petroleum Corporation.
She also said that subsidy payment from 2005 to 2012 indicated that $11.63bn had been paid to the NNPC but that “there is no evidence of the money being remitted to the federation account.”
The Nigerian National Petroleum Corporation has announced the successful re-streaming of the Port Harcourt and Warri refineries after nine months of phased rehabilitation conducted by its in-house engineers and technicians.
The national oil company made the announcement on Wednesday through a statement.
The United States of America has handed over the names of Nigerian oil thieves to President Muhammadu Buhari, a member of the President’s entourage during last week’s visit to the US confided in the Punch on Tuesday.
“I can tell you that the President already has the list of names of the people engaging in the stealing of Nigeria’s oil. The list, when released by the President, will shock Nigerians. But let’s wait and see first,” the source said. Read more @ Punch Online
Total Nigeria Plc has posted 10 per cent drop in profit before tax for the half year ended June 2015. In a filing with the Nigerian Stock Exchange (NSE), the company’s pre-tax profit declined from N2.178 billion during the comparable period of 2014 to N1.967 billion, accounting for a drop of 10 per cent. Gross earnings of the fuel marketer also dipped to N111.974 billion from N120.157 billion in the previous year.
Total had reported 79 per cent drop in net earnings for the first quarter ended March 31, 2015.
With 188 trillion standard cubic feet (SCF), of gas resources, making Nigeria the seventh most endowed gas nation in the world and number one in Africa, the nation could have been immuned from the plummeting crude oil business if strategies focus had been made on this strategic option
Oil and gas experts believed that Nigeria could even earn more from full utilisation of gas resources than what it is currently been realised from crude oil exports.
The decision to split the Nigerian National Petroleum Corporation (NNPC) was taken by the management of the corporation under former Group Managing Director, Andrew Yakubu but the plan did not materialise before he was eased out of office last year.
So, the plan to split the corporation unveiled by President Muhammadu Buhari during his state visit to the United States of America is indeed not new.
The Department of Petroleum Resources (DPR) has stated that Nigeria’s gas reserves of 188 trillion cubic feet (TCF) would be exhausted within 79 years from January 1, 2015.
Speaking at a recent meeting of the Nigerian Gas Association (NGA) in Lagos, DPR’s Deputy Director in charge of Gas Monitoring and Regulation, Mr. Antigha Ekaluo noted that 52 per cent of Nigeria’s gas is Associated Gas (AG), while 48 per cent is Non-Associated Gas (NAG)
Nigeria’s dollar reserves are to increase in the medium term as the Nigerian National Petroleum Corporation (NNPC), continues to move dollar denominated deposits out of commercial banks into the Central Bank of Nigeria (CBN).
This is being complimented by efforts to block leakages, which helped to shore up government revenues for the month of June.
A massive oil spill from the Ossiama-Ogboinbiri and Ogboinbiri-Tebidaba pipelines of Nigerian Agip Oil Company has devastated the environment of Keme-Ebiama, Okpotuwari and Ondewari communities in Southern Ijaw Local Government Area of Bayelsa State.
It was gathered at the weekend that the oil leak, which spewed volumes of crude oil from the ruptured spot on the oil-bearing pipe was reported by community people on the July 14,2015.
Italy’s largest oil company, Eni SpA, has joined Shell and Chevron in the sale spree of its onshore assets in Nigeria. It was gathered that the company’s subsidiary in Nigeria, Nigerian Agip Oil Company (NAOC) has already set a target of $5 billion that it would realise from the sale of the onshore assets it operates in Nigeria.
“Nigerian Agip Oil Company, which operates under a joint-venture agreement with Nigerian National Petroleum Corporation (NNPC) and ConocoPhillips, is already at the second critical stage of the sale,” a source disclosed.
Workers in the oil and gas industry under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have called on the federal government to put machinery in place for the payment of billions of dollars in cash call arrears in the Nigerian National Petroleum Corporation (NNPC) Joint Venture (JV) operations with the oil companies Read more @ The Guardian
One of the rather more intriguing issues in the nation’s capital, Abuja, is the origin of the recent Presidential directive reflected in a memo by an official of the Nigerian National Petroleum Corporation (NNPC) banning 113 vessels from crude oil/gas loading activities in any of the 27 terminals in Nigeria “until further notice.” The ban, however, is causing ripples in the international oil and gas industry.
Despite a population of over 170 million and the largest economy in Africa, chronic
lack of electricity prevents Nigeria from achieving its potential economic and
social status.The wide gap between
electricity demand and supply adds greatly to the cost of operations by forced
reliance on diesel generators at four times the cost of normal grid power as
well as major lost work-time.From a
personal standpoint, there is a universal reduction in quality of life due to
the lack of dependable electricity to homes and places of work.
governments have generally responded to this electricity debacle by announcing
new targets for electricity capacity, along the lines of “10,000 MW by the end
of the year”.In the last 15 years,
public money spent in the electrical sector has accumulated to nearly $30
billion and two years have passed since the privatization of the Generation
Companies (GENCOs) and Distribution Companies (DISCOs).Yet
despite these major efforts, the daily electricity distributed remains almost
unchanged between 2500 – 4000MW and Nigerians see little or no improvement. Electrical capacity has physically increased,
only for the owners to discover there is not enough gas to run them.Even if there was enough fuel, as the Vice
President Professor Osinbajo noted recently, the transmission capacity is only
about 5000 MW.
before and after privatization, Nigerian electrical supply has been underpinned
by two sources:
the hydro-power facilities that despite problems
with water level, partly due to global warming,remain a dependable core supplier;
the dependable operation of the two
combined-cycle power plants in the Niger-Delta that belong to two Joint
Ventures (JVs) of the International Oil Companies (IOC) and NNPC.
two IOC/NNPC power plants have been the workhorses of the existing gas-fired
capacity.With the right policy support,
the number and capacity of IOC/NNPC power plants could expand significantly and
continue to play a core role in the nation’s electricity. Importantly, several IOC/NNPC
JVs already have plans and designs in place to increase the capacity of
existing facilities and to build new ones. The merits of the IOC/NNPC JV power plants derive
from several key factors – gas supply certainty, advanced technology, available
financing, and extensive expertise.
reliable domestic gas supply continue to be major challenge due to the lack of
gas infrastructure, often poor maintenance, and deliberate vandalism.These IOC/NNPC plants avoid these supply problems
by being located on the oil block that produces the gas, and the operators provide
both the gas supply and the infrastructure to treat and connect the gas to the
power plant, thus allowing uninterrupted supply.Being located within the oil block, on-going
maintenance and security are provided by the operators.
the IOC/NNPC operators are technologically advanced companies, expert in the
design and implementation of major capital investments. These companies have chosen to use combined
cycle gas technology that use one third less gas to produce a kWh of
electricity – thus reducing both gas needs as well as carbon and local
emissions.While combined-cycle gas
power plants are the international norm, only one other power plant in the
country uses this level of technology.A
priority for the country should be to build the electrical infrastructure to be
in line with best international standards, which allows for major benefits to
economic well-being and long-term competitiveness.
while many of the new GENCOs have financing constraints, IOC/NNPC JVs have a much
stronger financial balance sheet that allows them to fund new, high-quality investment
in the electrical generation sector.Indeed to ensure that the electrical capacity can be utilized, some of
these JVs are willing to undertake substantial investments on transmission
facilities to secure that power from these lines reach the grid.
these companies have the experience as well as the procedures and capacity
in-place to implement such projects on a timely and reliable basis.They
routinely manage multiple large-scale projects of this magnitude.Given that such projects require
negotiations and contributions from a wide range of international companies
both technical and financial, a large global presence is a distinct advantage.
is no easy fix to Nigeria’s power dilemma and a proper response needs to be
wide-ranging and multi-faceted.The
country has moved in the right direction with the Electric Power Sector Reform
(EPSR) Act of 2005 and the creation of the Nigerian Electricity Regulatory
Commission (NERC), have been a major steps.The privatization process, which saw the emergence of the GENCOs and the
DISCOS, is clearly positive.These
policies have encouraged other meaningful, privately-owned systems, for example
one company in the Delta which has integrated gas supply with transmission infrastructure
and entered into firm contracts with power producers.The on-going initiative on embedded power in
Lagos State is another useful example. The
new owner of one of the GENCOs in Delta State has almost tripledgenerating capacity within the first six
months of operations, showing that some new entrants can act decisively. Renewables such as solar could have an
important space, if given the right policies and incentives.
the electricity demand in the country has to be built on the foundation of a
conductive investment environment that supports and builds a modern, efficient
electrical system.The IOC/NNPC JVs are
one group of private actors that has contributed substantially to the
electrical sector and could contribute substantially more. The Government needs to be pro-active toward
these companies, indeed all companies, in the policies and incentives put in
place to ensure a positive investment framework and ensure that implementation
occurs in the timeliest manner.
Experts in the petroleum industry have admonished the administration of President Muhammadu Buhari to ensure continued existence of the Nigerian National Petroleum Corporation (NNPC), just as they canvassed structural reform for the oil giant.
The experts’ position came on the heels of a recent call by the Governor of Kaduna State, Mallam Nasir El-Rufai, for scrapping of the NNPC, to foil alleged corruption in the corporation, believed to have seriously hampered growth of the nation’s economy.
The relative stability enjoyed from the recent fuel supply crises across the country may have been worsened by the Arepo pipeline explosion on the system 2B that allegedly claimed over 100 lives on Tuesday.Due to the crisis, the Nigerian National Petroleum Corporation (NNPC) took up the challenge to cover up the importation gap created by the aggrieved marketers
Plans by the Nigerian Liquefied Natural Gas Limited (NLNG) to site its proposed shipyard in Lagos State rather than its key operational base in Bonny Island, Rivers State, are a great injustice to the people of the area, the chiefs and lawmakers in Bonny Kingdom have said.
The people described as “a grand conspiracy against the people of Bonny Kingdom and the Niger Delta region the planned relocation,” adding that it violates the Nigerian Content Act, 2000, is disappointing and condemnable.
Total said it has started production from Dalia Phase 1A, a new development on the offshore operated Block 17, located 83 miles off the coast of Angola.
The Dalia Phase 1A project involves the drilling of seven infill wells tied back to the Dalia Floating Production Storage and Offloading (FPSO) unit. The project will develop additional reserves of 51 million barrels and will contribute 30,000 barrels per day to the Block’s production, according to Total.
The Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) have both validated the rights of Geometric Power Aba Limited, to generate, transmit and distribute power to and within the Aba and Ariaria districts in Abia State.
This is coming after months of legal wrangling between Geometric and another private power firm, Interstate Electrics, over who owns the rights to operate in the area.
For the umpteenth time, another explosion was recorded on Wednesday at one of the pipelines of the Nigerian National Petroleum Corporation (NNPC) at the Arepo area of Ogun State and purportedly killed several pipeline vandals.
The incident, which is merely one in a series of acts of pipeline vandalism at the Arepo area, occurred after some vandals exchanged gunfire.
Nigeria's economy may face tougher times this year due to a cocktail of challenges assailing the country’s crude oil business. The country has been contending with the plummeting crude oil prices and the United State’s shale boom, which resulted to total halt in import to U.S.Besides seeing its oil revenue drastically reduced in the wake of global oil price slump and domestic production shortfalls due to oil theft and pipeline vandalism, Nigeria has been struggling to find buyers for its premium quality Bonny Light crude in recently times.
ExxonMobil, Chevron and Total have opted out of Mexico’s historic oil auction because the fields are too small. None of the 14 shallow-water prospects in the Gulf of Mexico holds more than 384 million barrels of crude, according to Mexico’s National Hydrocarbons Commission. That is far short of the billion-barrel finds prized by major international oil producers, according to analysts.
As the scarcity of petrol persists across the country, marketers of the commodity have denied allegation of product diversion levelled against them by the Nigerian National Petroleum Corporation.
This is coming as the Pipelines and Products Marketing Company, a subsidiary of the NNPC, announced on Tuesday that it had revoked the licences of three marketers allegedly involved in the diversion of products.
Global LNG trade increased by 2.4% on year to the LNG equivalent of 333.3 Bcm of gas in 2014, partly offsetting weakness in global pipeline gas trade, which fell by 6.2% to 663.9 Bcm, the largest decline on record, BP said Wednesday in its latest annual statistical review.
The increase in global LNG trade was largely driven by higher imports by China (up 10.8%) and the UK (up 20.1%) as well as the start-up of the 6.9 million mt/year Papua New Guinea LNG project. Read more @ Platts online
Indigenes of Koroama community, which is host to Shell’s Gbarain-Ubie Integrated Gas Plant in Bayelsa State have shut down operations at the gas field and are demanding electricity supply from the power plant component of the facility.
President Muhammadu Buhari has been urged to urgently unveil a policy direction and action his government will take to eradicate oil theft.
An anti-oil theft initiative, ‘Seal the Crude,’ which made the call in a statement by its Programme Officer, Stephen Hemba, said the problem was no longer tolerable and since it is a recurring issue passed on to the Buhari administration, the President must waste no time in outlining a policy thrust to address it.
Nigeria could lose about N333billion in crude oil revenues by year end, following the nuclear deal reached with Iran by world powers on Tuesday July 14, 2015.
The reduction in earnings will come from a further drop in crude oil prices in the international market, due to an exercabation of the supply glut, as Iran increases its crude oil exports, resulting in lower demand by Nigeria’s clients.
Mobil Producing Nigeria (MPN) said yesterday that it has donated over N19billion globally to the fight against Malaria, with Nigeria haviing over N3billion.
The multinational oil firm’s Group Medical Director, Dr. Mohammed Bello spoke in Lagos at the inauguration of the Victoria Island Primary School sick bay donated by the Daniel Ogechi Akujobi Memorial Foundation (DOAMF).
Holidaying former President Goodluck Jonathan has dashed into Abuja to launch a protest, The Nation has learnt.
Dr Jonathan is disturbed by the determination of President Muhammadu Buhari to probe how $2.1billion was illegally withdrawn from the Excess Crude Account (ECA), sources said yesterday, pleading not to be named “because of the sensitivity of the matter”.
Lecturers representing geoscience departments of thirty Nigerian universities completed a workshop in sequence stratigraphy in Lagos last week.
The five-day intensive course on “Sequence Stratigraphic Concepts and Principles” was organized through collaborative efforts between the American Association of Petroleum Geologists (AAPG), Africa Region and ExxonMobil Nigeria.
A director of the Nigerian National Petroleum Corporation has said that operatives of the Department of State Services have interrogated him 11 different times since May over crude oil swap deals with traders.
Last month President Muhammadu Buhari dissolved the board of the NNPC, and more sackings are expected. Meanwhile, the Department of State Services (DSS) intelligence agency has been carrying out investigations.
Nigeria and her Joint Venture (JV) partners which include ExxonMobil, Shell, Chevron, Agip, Total and others, earned $3.44 billion from crudeoil export in June 2015 going by the daily production output of 1.903 million bpd at the monthly average price of $60.21 per barrel for the month of June.
State-owned PetroVietnam and US' ExxonMobil expect to produce first gas from the Ca Voi Xanh gas field off central Vietnam by 2021, PetroVietnam said in a statement on Thursday.
"Under the most favorable conditions, the project can pump first gas by about 2021," PetroVietnam said. PetroVietnam Chairman Nguyen Xuan Son discussed the project with ExxonMobil Vice President Raymond E Jones in Washington on Wednesday. Read more @ Platts Online
The Ojodu Local Council Development Area of Lagos State on Monday apprehended a middle-aged man Innocent Nwevo, with 47 kegs of Premium Motor Spirit (PMS) otherwise known as Petrol in Ogba area, Lagos State.
Executive Secretary of the Council, Mallam Ahmed Moyosore Jaji, said a combined team of members of the Caretaker Committee and Men of the Nigerian Security and Civil Defence Corps attached to the LCDA arrested the culprit.
People of Goi community in Gokana Local Government Area of Rivers State have sued Shell Petroleum Development Company (SPDC) and others over alleged exclusion from a recent payment of £55 million as compensation to residents of Bodo community.
A United Kingdom-based law firm, Leigh Day, had, in 2011, represented Bodo community in an appeal before a London court for the oil company to pay about £300 million in compensation to its clients for the spillage of 500,000 barrels of oil into their environment in 2008/2009.
President Muhammadu Buhari has ordered the review of crude swap deals initiated by the Nigerian National Petroleum Corporation, NNPC, with several companies for refined products.
Meanwhile, The governor of Kaduna State, Nasir el Rufai, has said Nigeria must do away with its “corrupt” oil company, the Nigerian National Petroleum Corporation, NNPC, or stand the risk of itself being destroyed.
The Presidency on Monday said President Muhammadu Buhari would consider the All Progressives Congress’ call for the probe of former President Goodluck Jonathan’s administration over $5.5bn dividends said to have been paid to the Federal Government by the Nigeria Liquefied Natural Gas Limited.
The Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said this in an exclusive interview with our correspondent.
Victims of the Agip pipeline explosion that claimed 12 persons along the Tebidaba-Clough Creek line in the Azuzuama area of the State were on Sunday identified.
Among them were staff of the Bayelsa State Ministry of Environment and the National Oil Spill Detection and Response Agency (NOSDRA), six staffers of a maintenance team of a local oil servicing company known as M.G Vogas Nigerian Limited, two members of Agip staff and a soldier.
The announcement that Nigeria local refineries will commence operation by July 2015 is a welcome development but what the refineries will offer if allowed to work at full capacity should be an issue for consideration.
Several times in the past, the four local refineries have undergone turn around maintenance which has gulped money from the country.
Civil Society Network Against Corruption (CSNAC), a coalition of over 150 anti-corruption organizations has petitioned the Economic and Financial Crimes Commission (EFCC) demanding an investigation into a $USD600million deal that resulted in the renewal of three oil mining leases ( OMLs 67, 68 and 70) for Mobil Producing Nigeria.
Amid sustained low oil prices in the international market, Nigeria saw a significant decline in the import of its crude by some of the main buyers, including India, in the first quarter of the year.
The Federal Government and oil companies in the country may have lost at least N67bn ($339m) in February and March this year as the country’s crude oil exports dropped by 1.860 million barrels and 4.085 million barrels respectively, compared to the January export level
The Nigerian government’s ambitions for improving electricity supplies are “not remotely realistic”, a report by experts advising the presidency says, an early blow to one of President Muhammadu Buhari’s most important reform promises.
Chronic power shortages are one of the biggest constraints on investment and growth in the country. Fixing the problem was one of the key battlegrounds during campaigning ahead of a presidential election Buhari won in March.
In a bid to end the fuel shortages across the country, the federal government has approved fuel import allocations for the third quarter of 2015 to 29 oil marketing and trading companies. The 29 marketers include the Nigerian National Petroleum Corporation (NNPC), which in the last couple of months has struggled to sustain supply.
It was learnt that the approval was given by President Muhammadu Buhari to the Petroleum Products Pricing Regulatory Agency (PPPRA) to allow NNPC and other oil marketers to import fuel into the country this quarter.
The absence of a bankable commercial framework continues to pull the plug on huge gas investments badly needed to meet the country’s growing power supply needs, industry experts have said.
Nigeria, Africa’s top oil producer, is estimated to have at least 185 trillion cubic feet in natural gas reserves, making it the most endowed country on the continent in terms of gas reserves, ahead of Algeria, Egypt and Libya.
Despite assurances by the Nigerian National Petroleum Corporation that the Port Harcourt Refining Company Limited will start refining crude oil by the end of last month, findings have shown that the plant has yet to start delivering on the target. This is coming as civil society organisations have called on the Federal
Government to cut down the volume of crude being supplied to the four refineries based on the fact that the facilities are producing far below the 445,000 barrels, which they get on a daily basis.
During the early 1970s, Saudi Arabia cut production as a reminder that it held the cards to the world’s petroleum resources. What the swing country did not count on was the slew of development and production that would subsequently take place in the North Sea. As a result, a new oil supply was born far away from the Middle East. Fast forward to today: With oil saturating the market again, Saudi Arabia has kept its spigots on this time to try and prove once again its place on top of the hydrocarbon pyramid.
Twelve maps of different geographic locations in Nigeria have been published by the Nigerian Geological Survey Agency (NGSA), as a result of the University Partnership Programme (UPP) of Esso Exploration & Production Nigeria Limited (EEPNL), a subsidiary of ExxonMobil subsidiary.
Director General of the agency, Mr. Alex Ndubuisi Nwegbu, disclosed this at the recent 2015 UPP presentation ceremony in Abuja.
Stakeholders in the downstream sub-sector of Nigeria’s petroleum industry say the silence of the President Muhammadu Buhari-led Federal Government on policy direction is causing more harm than good for the segment and the nation’s economy at large.
They said the President’s muteness over critical issues like the subsidy arrears owed oil marketers, the future of the subsidy regime for Premium Motor Spirit (petrol), the Petroleum Industry Bill and other matters bordering on the general regulation of the downstream petroleum business, was unhealthy for the country.
The Federal Government has reportedly agreed to pay outstanding subsidy claims of N159bn to oil marketers, who import refined petroleum products into the country although some of the marketers say the debt has climbed to N300bn.
“They (government) agreed to pay the remaining balance last week. Nothing has come yet but maybe this or next week. It is N159bn” the spokesperson for the Independent Petroleum Marketers Association of Nigeria, Yakubu Suleiman.
The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has kicked off the second phase of its grassroots campaign against crude oil theft and illegal oil refining activities in Ogoni land. The first phase of the campaign in 2014 reached over 7,000 community people from Eleme, Gokana, Khana, and Tai local government areas.
There are indications that Nigeria’s crude oil export would spike up in August against the previous months, even as some overhang July cargoes struggle to find buyers. The provisional August loading programme already showed that about 58.6 million barrels of crude would be shipped on 64 cargoes at a rate equivalent to 1.89 million barrels per day (bpd), while the planned shipment for Bonny Light is yet to emerge.