Tag: Chevron

  • Niger Delta: Civil rights leader confirms attack on Chevron facility

    A Nigerian civil rights leader and a Niger Delta resident confirmed on Thursday that militants had attacked a Chevron oil facility in the region.

    A militant group called Niger Delta Avengers said late on Wednesday that it had blown up the main electricity feed pipeline leading to the Escravos tank farm.

    “The attack truly happened,” Reuters quoted Eric Omare, spokesman for the Ijaw Youth Council, as saying on Twitter.

    Resident Zebo Austin, who lives nearby, also confirmed there had been an explosion.

    “We heard a loud blast at the Abiteye to Escravos crude pipeline which was blown up last night by yet-to-be identified militant group,” he told Reuters.

    There was no immediate confirmation of the attack from Chevron.

    The Avengers, who said they are fighting for a greater share of oil profits, an end to pollution and independence for the southern region, had told oil firms to leave the Delta before the end of the month.

    The Federal Government has responded by moving in army reinforcements, but British Foreign Minister, Philip Hammond, said this month President Muhammadu Buhari needed to deal with the root causes of the conflict.

     

  • Another explosion rocks Chevron facility in Warri

    Another explosion rocked Chevron Nigeria Limited’s facility in the oil rich Niger Delta on Friday.

    The company had in the last few weeks recorded several attacks on its facilities.

    Friday’s attack occurred in the Marakaba line operated by the oil firm in Warri, Delta State.

    The Nation gathered that unknown persons detonated explosive on oil well head 10 on the Makaraba line.

    Sources said Chevron had declared force majeure on the facility since last Wednesday’s attack on the offshore Okan manifold.

    Friday’s attack, our correspondents gathered, was carried out by persons specifically engaged by contractors to work on damaged oil pipelines in the area.

     

  • NUPENG condemns attack on Chevron platform

    NUPENG condemns attack on Chevron platform

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has condemned the blowing up of Chevron Valve Platform in Abiteye in Warri North Local Government Area of Delta State.

    The union said the attack by militants was not in good taste.

    In a statement by the NUPENG General Secretary, Comrade Igwe Achese, the union appealed to the militants to sheath their swords and stop the destruction of oil installations and pipelines.

    Achese said the blow-up would cost the joint venture partners billions of naira as it will affect crude oil supplies and gas distribution to thermal stations.

    He called on the militants to desist from the act as it draws the economy back and affects the climate and lives of the citizens of the host community.

    “We urge the militants to stop the dastardly act as it affects the ecosystem through the destruction of aquaculture, farmlands, water, and river pollution arising from the spillage,” he said.

    It added that the Federal Government should intensify effort to set up the proposed pipelines protection agency as indicated by the Vice-President, Prof. Yemi Osinbanjo, who said the agency will be equipped with modern day technology to stem the tide of vandalism.

    The union reiterated that the security agencies must re-double their efforts 24/7 with equipment installed with night visions to put a stop to such surprise attacks on oil installations and pipelines.

  • ExxonMobil, Chevron profits slide on low oil prices

    ExxonMobil, Chevron profits slide on low oil prices

    ExxonMobil reported a 63% slide in first quarter profits following low crude oil prices and weak refining margins.

    It reported a profit of $1.8bn (£1.24billion), a sharp decline from $4.94billion for the same period last year and its lowest quarterly profit since 1999.

    Revenue dropped 28% to $48.7bilion, but it had strong results from its petrochemicals division.

    Rival Chevron faired even worse, with a quarterly net loss of $725million.

    That compared with a net profit of $2.57billion for the same period in 2015 and was worse than analysts had expected.

    John Watson, Chevron chief executive, said: “We are controlling our spend and getting key projects under construction online, which will boost revenue.”

    Shares in ExxonMobil rose 1.4% in New York on Friday, while Chevron fell 0.6%.

    Meanwhile, oil prices hit their highest levels of the year on Friday, driven up by lower US production and a weak dollar.

    Brent crude was up 12 cents at $48.26 a barrel in afternoon trading, while US oil rose 57 cents to $46.60.

    US oil production has continued to fall in recent months, easing concerns about oversupply, while the dollar has lost almost 2% of its value against other global currencies in the past week.

    A weaker US dollar typically contributes to a rise in oil prices, because oil is priced in dollars. When the dollar weakens against other currencies, oil becomes cheaper to buy, pushing up demand.

    However, the latest rise in oil prices may be limited by a future increase in Middle East production, according to a note released by Deutsche Bank.

    Iraq and the UAE are likely to raise production after maintenance issues are resolved, Deutsche indicated, and Saudi Arabia may also increase production significantly.

    “A sustainable rise in Opec production may be just around the corner, and… the rally may pause,” Deutsche analysts said.

    But this may be tempered by events in Latin America, where Venezuela is struggling to maintain its crude output, according to a report from Eurasia Group.

    The organisation reported that low oil prices over the past two years have meant Venezuela’s government is running out of cash to keep its state-owned oil pumps operational.

    Hamza Khan, senior commodity strategist at ING, said: “The issue is that we haven’t seen price rallies … correlate with fundamentals. The fundamentals – high stocks, high production – haven’t changed.”

    The oil price has fallen dramatically over the past two years since Brent crude hit a peak of $115 a barrel in June 2014.

    One factor behind the fall has been slowing demand from China and other developing economies.

    Supplies have also increased, most notably from new sources of US shale oil.

    In addition, big producers such as Saudi Arabia have not reduced output to try to push up prices.

    Earlier this month, a meeting of the world’s leading oil exporters failed to agree a cap on production.

    Saudi Arabia appeared willing to freeze output only if all members of the Opec oil producers’ cartel agreed, including Iran.

    But Iran maintained it would continue the increase in oil production it has followed since economic sanctions were lifted earlier this year.

  • Appeal Court adjourns Cheveron’s appeal against Britannia-U

    Appeal Court adjourns Cheveron’s appeal against Britannia-U

    The Court of Appeal sitting in Lagos will on November 22 hear an appeal on whether the Federal High Court can assume jurisdiction in a suit by Britannia-U Nigeria Limited against Chevron Nigerian Limited.

    Britannia-U is praying the lower court to restrain Chevron from divesting its interests in Oil Mining Leases (OML) 52, 53 and 55 to Seplat Petroleum Development Company Limited.

    The appellate court refused to entertain the appellants’ (Chevron and BNP Paribas SecuritiesCorp’s) motion for stay of proceedings. It said it would abide the outcome ofthe main appeal.

    The court, however, granted the appellants’ motion for extension of time to compile and transmit additional records of appeal and motion for leave to appeal on grounds other than law, as well as leave to amend their Notice of Appeal.

    The appellants were given seven days to file their amended Notice of Appeal. Brittania-U’s counsel withdrew an application seeking todismiss the appeal for want of diligent prosecution.

    Britannia-U had through its lawyers, Mr.Ricky Tarfa (SAN) and Abiodun Owonikoko (SAN), sued Chevron in 2013 along withfour others, namely Chevron USA Inc, BNP Paribas Securities Corp., Mr. HermantPetel and Seplat Petroleum.

    The Federal High Court had adjourned the suit sine die (till further notice) due to several appeals, one of which was decided by the Supreme Court on January 29.

    Brittania-U’s motion on notice for interlocutory injunctionagainst the defendants are still pending at the Federal High Court.

    Chevron had offered for sale OMLs 52, 53 and 55 and invited bids from interested firms. The assets’ sale became controversial after Chevron allegedly failed to make a public announcement of a winner, a reserve bidder and unsuccessful bids.

    It then allegedly turned its back on the highest bidder, Brittania-U, and began to deal with Seplat behind the scene.

    Brittania-U went to court to contest Chevron’s action of not declaring it winner after it posted a $1.67 billion bid for the three assets,an amount later revised to $1.015 billion after both companies’ officials met in Houston, United States.

    Seplat was said to have posted a bid of $630 million for the same assets.

     

  • Chevron eyes $17-22b annual capex for 2017-18

    Chevron eyes $17-22b annual capex for 2017-18

    American oil giant, Chevron Corporation, has said it intends to achieve capital spending budget of between $17 billion and $22 billion yearly for 2017 and 2018.

    The oil firm’s executives at its yearly security analyst meeting in New York reiterated priorities, expressed confidence in the company’s near term outlook and emphasised an advantaged position when markets rebound. They also highlighted upcoming project completions and shale drilling efficiency.

    “We’re completing major projects that have been under construction for several years. This enables us to grow production and reduce spending at the same time, which should improve our net cash flow significantly,” said John Watson, Chevron’s chairman and chief executive officer.

    Watson reiterated the importance of dividend growth and maintaining a strong balance sheet in the company’s financial priorities, noting the company’s record of 28 consecutive years of dividend increases, and plans to limit debt increases beyond 2016.

    “Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we’ll be well positioned when they do. We have an excellent upstream and downstream portfolio, and we are driving operating and administrative efficiencies across the company,” he added.

    The Executive Vice President, Upstream, Jay Johnson, highlighted key plans. “We’re focused on safe, reliable operations and effective project start-ups and ramp-ups. At Gorgon, we’re producing LNG and the first cargo is expected to ship next week. With an advantaged position in the Permian and a deep portfolio of operating assets, we’re transitioning our spending to more short-cycle, higher-return activity that utilises existing infrastructure. We have a portfolio of assets that should allow production growth through the end of the decade, even at moderate prices,” he said

  • NUPENG cautions on sack in Chevron, Shell

    NUPENG cautions on sack in Chevron, Shell

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) is worried over the purported sack threat by Chevron and Shell that will affect about 18,500 workers globally.

    NUPENG, in a statement, signed by its National President, Comrade Igwe Achese, said it is a sack too many. He described the sack threat, adduced to dwindling oil prices, as alarming.

    He called on the Federal Government to halt the threat of loss of jobs in Nigeria by multinational companies. He wondered why Chevron and Shell should sack workers when they have fully divested from on-shore oil fields.

    The unions added that it would be morally unjustified for Chevron and Shell to retrench oil workers in Nigeria, as they are carting away profits made from deep oil shores and joint venture gas projects.

    NUPENG, therefore, condemned in its entirety the impending sack, noting that it would not work with the efforts of the Buhari administration to generate employment instead of job losses.

    NUPENG added that it would amount to derailing the efforts of the government to provide jobs for Nigerians. It stated that the oil giants should cut cost by employing Nigerians in positions where expatriates hold sway and are paid 10  times what Nigerians are paid.

    The union warned that it might be forced to embark on industrial action if the Federal Government, through the regulatory agency, Nigerian National Petroleum Corporation (NNPC) fails to stop Chevron and Shell from sending oil workers in Nigeria to the unemployment market.

  • Nigerdock, HHI complete Chevron’s $30m oil platform

    Nigerdock, HHI complete Chevron’s $30m oil platform

    •Set for installation offshore 

    The 2,700 ton Sonam Non-Associated Gas Wellhead Platform (Sonam NWP) built by Hyundai Heavy Industries in partnership with Nigerdock in Lagos for the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited (CNL) Joint Venture, has been completed and ready for load out and sail to Sonam field for installation.

    Speaking at its inauguration at Nigerdock’s fabrication yard on Snake Island, Apapa, Lagos, the Chairman/Managing Director, Chevron Nigeria Limited, Clay Neff, represented by the company’s Director for Business Services, Emmanuel Imafidon, said the project accomplished in over 2.8 million man-hours, was done without injury or incident.

    Neff said the Sonam non-associated gas (NAG) platform will enable the delivery of up to 300 million standard cubic feet per day (mmscf/d) of gas from Sonam to Escravos gas plant. This project will enable delivery of additional gas supply to the domestic market, which will help to significantly boost the Nigerian economy, he added.

    “In addition to the impressive safety record of over 2.8 million cumulative man-hours without an injury or incident, the Sonam NAG Well Platform project, as one of CNL’s Domestic Supply Gas Obligation (DSO) projects, has and is still contributing immensely to the development and sustenance of Nigerian content,” he added.

    The Chairman of Nigerdock and Jagal Group, Mr. Anwar Jamarkani said the platform has a height of 28 metres, width of 40 metres and a length of 50 metres, making it the largest topside module ever built in Nigeria. Because of the volume of gas the platform will produce, he said the project is a major milestone as it will provide feedstock for the much needed power generation.

    He said: “The project will boost power generation ability and provide the much needed power for Nigeria’s domestic and industrial needs. It will significantly eliminate gas flaring from the project in fulfillment of government’s gas flaring policy, and attract gas investment opportunities thereby boosting this administration’s effort to diversify the economy from dependence on crude oil proceeds.

    “The DSO project is a major milestone in government and industry’s quest towards achieving increased local content in the nation’s oil and gas sector. In the course of the project, Nigerdock recorded several remarkable achievements leveraging Nigerian human and material resources, and maintaining its commitment to investment in equipment, infrastructure and technology.

    “We are truly humbled to play a part in such landmark achievements which will no doubt have a transformative effect on our country. However, we believe we can do much more and raise the bar.”

    The Minister of State for Petroleum Resources and Group Managing Director of NNPC, Dr. Ibe Kachickwu represented by General Manager, JV Oil Operations, National Petroleum Investment Management Services, Mrs. Kate Iheme said the project created not only jobs but also skills for Nigerians. “Manpower is a crucial aspect of oil and gas projects, and we in NAPIMS are committed to capacity building in Nigeria. Investments in projects such as Sonam will address the issue of skilled capacity deficit,” she added.

    The representative of Director, Department of Petroleum Resources, Antiga Ikhalo and the Executive Secretary, Nigerian Content Development and Monitoring Board, Denzil Kentebe, lauded the project and urged other multinational oil companies to do their projects in-country.

    Kentebe said achievement recorded in Sonam topside was no surprise as in the past few years, the Board had been to Nigerdock to celebrate many outstanding projects such as Usan and Ofon for Total, Abang and Itut topsides for Exxonmobil and Meren and Sonam topsides for Chevron just to mention a few.

  • Full scale war brew in N’Delta as militants attack more facilities

    Full scale war brew in N’Delta as militants attack more facilities

    The Niger Delta region was on the verge of full scale war on Saturday after unrestrained attacks on oil facilities by armed youths believed to be loyalists of leader of the defunct Movement for the Emancipation of the Niger Delta (MEND), Government Ekpemupolo (alias Tompolo).

    It was gathered that Saturday’s attacks were carried out in fast boats fitted with General Purpose Machine-gun (GPMG) and several frigates carrying heavily armed youths.

    Residents of the riverside communities said the militants paraded weapons more in numbers and sophistication than those used in previous crisis.

    Oil and gas pipelines in the creeks of Gbaramatu and Ugborodo areas of Warri South West and those in Egbema, North local government areas respectively of Delta state were affected in Saturday’s attacks.

    A source said, “The gas pipeline which from Olero creeks to Escravos were destroyed in the latest attack. Several crude lines were sabotaged while Makaraba, Otunana (Uton-Nana), Abiteye and Dibi flow stations were bomb.

    “The pipeline, which conveys gas from Saghara to Chevron was also destroyed and there are several persons trapped in the communities.

    “The kind of explosives and bombs they used are not like those of before; the effects were felt in several communities as they went off intermittently,” a local source told our reporter.

    The facilities destroyed included those of the Nigerian Gas Company, Chevron NIGERIA Limited and NECONDE among others.

    Our reporter learnt that the attacks could spread to Bayelsa and other states of the region within days, as the perpetrators plan to cripple crude oil production and export.

    There were indications that some operations of CNL were disrupted by the latest attacks.

    The company was forced to airlift its workers on Friday after militants blocked the waterways and restricted movement of transport boats, including Chevron’s Jascon transport boat.

    Although the Joint Task Force in the Niger Delta was said to be fully prepared to deal with the onslaughts, the militants operated unhindered for several hours on Saturday.

    It was gathered that the attacks started in the wee hours of Saturday and lasted for several hours.

    “The sheer force of the explosion shook several communities and there were several explosions. There is panic everywhere and the waterways have again been taken over by armed gangs.”

    The Joint Media Campaign Centre Coordinator of the JTF, Col Isa Ado, was incommunicado since the onslaught began; dozens of telephone calls and SMS to his mobile line were answered.

    The incident came after Saturday’s attack on a strategic gas trunk line around Warri River on Friday morning, barely10hours after a Federal High Court ordered the arrest of Tompolo in connection with an ongoing N34billion fraud case at the Nigerian Maritime Administration and Safety Agency (NIMASA).

    Although Tompolo had disowned the latest insurgence, security sources insisted that he is directly controlling the operation along with some of his close allies and his nephew who reportedly led the destruction of oil facilities in Warri North LGA on Saturday morning.

    At the time of this report, it was gathered that several former militants had returned to the creeks of Warri, in what is believed to be preparation for a major onslaught on oil facilities, security operatives and communities.

    Similarly, it was learnt that bunkers housing sophisticated arms and ammunition are being unearthed and deployed.

    A source said, “Boats are freely moving in and out of (an Ijaw community) with guns and other weapons. Boys are coming in from all over the region and they are being given their assignments and directives.

    “There is a stockpile of arms and petrol and boats are being fueled intermittently. This is not an ordinary operation, it is well planned and there seems to be several options and alternative plans,” one of the sources who fled the town, said.

    Conversely, as the militants are moving into the creeks, panicky inhabitants of the riverside communities, comprising mostly women and children continued the flight for safety in upland communities like Warri, Sapele and Ogbe-Ijoh, among others.

    Some of the fleeing locals were unhappy about their fates, with some lamenting that although they did not benefit from the largess from militancy they are made to face its consequences always.

    “We are tired of running like this always. In 2009, it was because of the killing of soldiers, today it is because of Tompolo and EFCC. We didn’t benefit from the NiIMASA money, there were individuals who got billions, others millions but how much did we get? Nothing! Yet we are the ones who are always the victims,” a middle-aged woman lamented in smattering English.

    Similarly, it was gathered that some Gbaramatu leaders have called Tompolo to caution him about the implications of engaging in a full blown war with federal forces.

    It was gathered that at least 10 very high ranking traditional titleholders have distance themselves from the attacks.

    “Most of our leaders are too afraid to speak out, while others cannot talk because they are benefiting one way or the other,” a youth leader told our reporter on condition that he would not be named.

  • Chevron commits N1.9b to  community development projects

    Chevron commits N1.9b to community development projects

    Chevron Nigeria Limited (CNL) has provided over $10 million (aboutN1.9 billion), to fund various infrastructural and non-infrastructural community development projects in its operational areas in Nigeria in the last one year under its Global Memorandum of Understanding (GMoU), its Manager, Communications Policy, Government & Public Affairs, Mr. A. O. Adebawo, has said.

    He spoke at the company’s headquarters in Lagos during the presentation of a prize to the Nigerian Media Merit Award (NMMA) 2015 winner of ‘Chevron Prize for Oil & Gas Reporter of the Year,’ to The Nation’s Assistant Editor Chikodi Okereocha.

    He said under the GMoU, which improves local participation in determining the needs Chevron’s programs should address by giving host communities a greater role in managing their development through Regional Development Councils (RDCs), the company had spent over $10million in the last one year.

    Adebawo said on the strength of the GMoU, which has brought peace and stability to areas where Chevron operates, several communities have benefited from projects including water supplies, rural electrification projects, school building, cottage hospital, road and drainage networks, town halls, housing for displaced people, scholarship, and micro-credit scheme among others.

    CNL endowed the Chevron Prize for Oil & Gas Reporter of the Year category.

    Adebawo said Chevron’s GMoU, a new and innovative approach to engagement with host oil communities, has significantly improved relationship with host communities.

    He explained that GMoU, a Nigerian National Petroleum Corporation (NNPC)/Chevron Joint Venture, is a deal between Chevron and RDCs – a governance structure in each cluster made up of community representatives, NGO representatives, and government and company representatives.

    The model engages host communities through the RDCs to manage participatory development initiatives funded by Chevron.

    According to Adebawo, this was a paradigm shift from the old method where host oil communities were given handouts. The Chevron chief, who described the approach as an intant success, said this was why shortly after the company introduced the GMoU engagement model in 2005, Shell Nigeria followed suit in 2006, while many other oil companies – indigenous and international – also adopted it.

    He said GMoU was so successful that the former Managing Director of Shell, Mr. Mutiu Sunmonu described it as ‘product of superior thinking.’