Researchers at the Ibrahim Badamasi Babangida (IBB) University Research Institute, Lapai in Niger State, say they have discovered crude oil in the Bida River Basin in Niger State.
The institute’s Director, Prof. Nuhu Obaje, stated this at an exposition of raw materials and locally made products held in Lagos Saturday.
Obaje said the university had notified the federal government and relevant agencies of the find and that the discovery was made using new technologies invented by the institute which made crude oil discovery and drilling “quicker”.
The institute, he added, had also invented technology to convert water lily to bio-gas and another that reduces pollution in coal.
He said: “We have technology that finds crude oil faster. We found crude oil at Bida River Basin and we used our technology to locate more areas. We have communicated it to the Nigerian National Petroleum Corporation (NNPC), the state government and soon, the drilling machine will muster to site.
“They will use our research and produce oil faster and in abundance. Already, Niger State Governor, Bello Sani, has written to The Presidency. We are aware that they have acted on it. The ball is in the NNPC’s court because we are waiting for them, although the response has been good so far.”
On the exploration of solid mineral deposits he said: “We are hoping that solid minerals and agriculture will compliment crude oil as we are keying into the Federal Government’s policy of diversification.
“We are here on the vision of our Vice Chancellor, which is to develop research at IBB University. We have moved to another level of application, innovation and domestication. We are here to demonstrate the researches we have been doing over the years.
“We have developed a new technology of using clean coal for electricity generation, smokeless fuel production and power generation.
“We are using clean coals to stop the generation of fumes that are dangerous, so that people can use it without it being injurious to their health.
“Ordinarily, coal emits green house gases that affect the climate but at IBB University Research Centre, we have had that dangerous part of the coals removed.”
Also speaking, Deputy Director, Dr. Naomi Dadi-Mamud said they were using oil and dead plants to generate bio-gas.
She said: “My research on bio-gas renewable technology was to convert such invasive plants on water bodies, like water lilies, to something useful.
Tag: Crude oil
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Varsity ‘discovers crude oil’ in Bida River Basin
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Navy intensifies fight against crude oil theft, illegal refineries
The Flag Officer Commanding (FOC), Eastern Naval Command, Rear Admiral James Oluwole, was at the Nigerian Navy Ship (NNS) Pathfinder, Rumuorlumeni, Port Harcourt, Rivers State on February 4 this year, where he briefed reporters on the successes recorded during the strategic Operation River Sweep 1.
He disclosed that his command pioneered a new strategy of using swamp buggy to completely crush, mangle and bury the destroyed equipment of illegal refiners in the crude oil and gas-rich Niger Delta region.
Rear Admiral Oluwole revealed that illegal refineries worth N3 billion were destroyed in the Operation River Sweep 1.
The FOC, who is also the Commander Task Group for Operation River Sweep 1, during the February 4 new declared that there was no going back in the fight against crude oil theft and illegal refiners in the Niger Delta, revealing that between N15 million and N25 million would be needed to set up illegal refineries in the creeks, making crushing the illegal refineries the best decision of the Eastern Naval Command and that without site to refine the stolen crude oil, the illegal activities would become impossible.
Rear Admiral Oluwole, who was accompanied at the news conference by the Command Operations Officer of the Eastern Naval Command, Commodore Razak Babalola, and the Commander of NNS Pathfinder, Commodore Williams Kayoda, among other senior naval officers, assured that the navy would win the war against oil thieves and illegal refiners, which he said had just started.
The Eastern Naval Command comprises Rivers, Akwa Ibom and Cross River States, with Operation River Sweep 2 ongoing in Central Naval Command, which consists of Bayelsa, Delta and Edo States, while Operation River Sweep 3 will later hold in the Western Naval Command.
Rear Admiral Oluwole also stated that with further support to the Nigerian Navy, in terms of provision of additional appropriate assets, the service would even do more in protecting the economic lifeline of Nigeria.
He noted that stopping the activities of illegal refineries required one to either block the siphoning source, destroy their operation areas or markets for their products.
The FOC said: “In the last 28 days, the participating units arrested three vessels engaged in various maritime crimes. Two of these vessels: MV Lewis Ejiro and MV Lady Swithin, were arrested laden with illegally-refined AGO (diesel). 40 illegal refineries, 60 large wooden boats, each with capacity for 33,000 litres, depending on size, 5,240,000 litres of illegally-refined AGO and four speed boats were destroyed. The total estimated loss for the destroyed illegal refineries is about N3 billion. Items recovered include 3 generators, 16 pumping machines, 2 welding machines, 3 outboard engines and 2 hoses. 5 suspected vandals were arrested.
“The activities of oil thieves and sea robbers have been effectively checked. The well-planned and coordinated patrol activities have denied the criminals freedom of action within the Onne creeks and environs. The resultant effect is the drastic reduction in cases of sea robbery, pipeline vandalism and operation of illegal oil refineries.
“Illegal bunkering activities have also been reduced to the barest minimum within the area of operation. The colossal losses of boats and the oil products in recent times are discouraging illegal bunkering in the affected areas.”
Rear Admiral Oluwole also disclosed that the operation was successfully conducted between January 8 and February 4 this year, with two ships in the Eastern Naval Command’s fleet: NNS Ologbo and NNS Burutu, in addition to eight patrol boats from NNS Pathfinder and the Forward Operating Base (FOB), Bonny, as well as one naval helicopter (NN 231) from the Naval Flying Unit, Port Harcourt.
He accused most people of the communities in the Niger Delta of shielding the illegal refiners and other criminals, who he insisted were well known to the leaders/elders of the various communities, while declaring that naval personnel would continue to destroy, crush, mangle and bury the equipment of the illegal refineries, thereby running the criminals out of business.
He said: “The successes were made possible through the use of a new strategy, initiated and employed by the Eastern Naval Command, for stopping proliferation of illegal refineries and other crimes in our maritime domain.
“The Nigerian Navy, as a major stakeholder in the protection of the maritime environment, uprooted, destroyed and disposed all illegal-refinery equipment, in a manner that is consistent with global environment best practices.”
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NNPC names 39 crude oil off-takers for 2017/2018
The Nigerian National Petroleum Corporation (NNPC) on Wednesday released names of 39 bidders for the sale and purchase of Nigerian crude for 2017/2018.
Announcing the results on its Website, the Group General Manager, Crude Oil Marketing Division NNPC, Mr Mele Kyari, said the contract would run for one year effective from Jan. 1 for consecutive 12 circles of crude oil allocation.
The list comprises 39 winners with 18 Nigerian companies, 11 International Traders, five foreign refineries, three National Oil Companies (NOCs) and two NNPC trading arms.
It said all the contracts were for 32,000 barrels per day except Duke Oil Ltd, an oil trading arm of the NNPC, which shall be for 90,000 barrels per day.
It would be recall that during the bid opening on Nov. 26, 2016, the Group Managing Director of the corporation, Dr Maikanti Baru, assured the public that NNPC would ensure due process, transparency and fairness in the selection process.
Also, a total of 224 bids were submitted by companies seeking to purchase and lift Nigerian crude oil grades for the period 2017/2018.
The indigenous beneficiaries are Oando, Sahara Energy, MRS Oil and Gas, AA Rano, Bono, Masters Energy, Eterna Oil and Gas, Cassiva Energy, Hyde Energy and Brittania U.
Others are NorthWest Petroleum, Optima Energy, AMG Petroenergy, Arkiren Oil and Gas Limited, Shoreline Limited, Entourage Oil, Setana Energy and Prudent Energy.
The international beneficiaries are Trafigura, ENOC Trading, BP Trading, TOTAL Trading, UCL Petroenergy, Mocho, Tevier Petroleum, Heritage Oil, Levene Energy, Glencore and Latasco Supply and Trading.
The five foreign refineries are Hindustan Refinery, Varo Energy, Sonara Refinery, Bharat Petroleum and Cepsa while the NOCs are India Oil Company, China (Sinopec) and South Africa (Saccoil).
The NNPC trading arms are Duke Energy and the Carlson Hyson. (NAN)
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Again, crude oil prices crash
Oil prices fell slightly at the weekend, remaining near the previous day’s highs, on the prospect of talks by exporters about ways to prop up a market grappling with a supply overhang.
Brent crude futures were down 19 cents a barrel higher at $45.84 per barrel by 1000 GMT (0600 ET), from a three-week high of $46.66 earlier in the day.
United States West Texas Intermediate (WTI) crude stood at $43.41 a barrel, down by 8 cents after touching its highest level since July 25, at $44.17 per barrel.
Both price benchmarks rose more than 4 per cent last Thursday after Saudi Arabia’s energy minister Khalid al-Falih said oil producers would discuss potential action to stabilise oil prices during a meeting next month in Algeria.
“Yesterday (Thursday) was a big move in reaction to the Saudi oil minister’s comments. Now today (Friday) there is a reassessment, but the comments are probably not enough to trigger a sustained rally,” Olivier Jakob of consultancy Petromatrix in Zug, Switzerland said.
An outlook published by the International Energy Agency (IEA) that said it expected the supply and demand balance to tighten towards year-end also supported prices.
Traders said a drop of 8.1 per cent in China’s oil output in July, to a five-year low of 16.72 million tonnes, also lifted prices because it would mean Asia’s biggest economy has to import more crude.
Despite the output fall in China, the world’s biggest energy consumer, the market impact is mixed as its refined product exports are increasing.
“To be bullish, there would also need to be a drop in refining output,” Jakob of Petromatrix said.
Oil prices are still more than 12 per cent below their last peak in June, as brimming storage tanks and production that exceeds consumption weighs on markets.
Iran slashed its September official selling price for light crude to Asia by $1.30 a barrel, the latest sign that exporters are willing to accept discounts in return for market share.
AB Bernstein said global oil production rose almost 0.8 million barrels per day (bpd) in July from the previous month, to 97.01 million bpd, while commercial inventories increased by 5.7 million barrels to 3.09 billion barrels in June.
Despite cheap crude feedstocks prices, analysts said refinery margins, known as cracks, were poor as refiners continued to make more fuel than the market can absorb.
For July, Bernstein put Brent cracking margins at $3.02 per barrel (down $1.83 from June); U.S. Gulf Coast cracking margins at $5.06 a barrel (down $0.03).
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Crude oil price rises to $43
Brent crude prices yesterday rose to a four-month high as a rally in wider commodities markets encouraged buying ahead of a meeting of oil producers in Doha next Sunday.
The meeting is aimed at freezing current output… -
Buhari approves additional crude oil to end fuel scarcity
The Nigerian National Petroleum Corporation (NNPC) Tuesday said that President Muhammadu Buhari has given approval for the corporation to take additional crude oil volume to guarantee the country’s supply of Premium Motor Spirit (PMS) petrol.
In a statement titled “NNPC determined to end fuel scarcity,” its Group General Manager, Group Public Affairs Division, Garba Deen Muhammed, said that due to the challenges that “major oil marketers face in contributing their supply quota due to constraint in accessing foreign exchange and outstanding subsidy obligations, NNPC is burdened with the obligation to guarantee almost 100% in the national supply, since the domestic crude oil supply (445,000 bbls/d) can only guarantee about 50% of the 45 million litres national requirement for petrol; we have secured presidential approval to take additional crude oil volume to guarantee national supply of petrol.”
Explaining the causes of the scarcity, the spokesman noted that in continuing with our desire to keep Nigerians abreast of the key actions taken in the downstream petroleum sector, NNPC re-assured Nigerians that it was on top of the petroleum products supply and distribution situation, and it remained committed to eliminating this endemic issue once and for all within the next few days.
According to the statement, the current administration inherited a huge catalog of issues and problems in the downstream sector not limited to arrears of subsidy payments to Oil Marketers, corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines, refineries poor performance, among others.
It added that; “A combination of these issues resulted in most oil majors completely pulling out from the importation business and NNPC assuming a near 100% importation obligation without the necessary logistics put in place.
“In line with the change agenda of this Administration, NNPC Management initiated and made progress on various key solutions to providing a lasting end to these issues.
“The unpaid arrears arising from the subsidy regime had necessitated most oil marketers to stop all forms of involvement in petroleum products imports. Thankfully, with the firm support of Mr. President and the National Assembly, we greatly reduced this debt burden and since January, 1st 2016 we have been able to eliminate subsidy payments by managing prices at current levels through price modulation. This has resulted to savings of over 100bn Naira monthly for the nation.
“Nationwide Petroleum supply and distribution have been ramped up to all states to ensure product availability in the country. The current supply to States is in excess of the normal consumption especially in the five major consuming cities.”The spokesman said that the corporation has intensified monitoring to ensure full compliance with approved prices.
Violations of approved prices and hoarding of petroleum products attract the following penalties, he vowed.
The penalties, according NNPC, include giving out of petroleum products free to the public, sealing off fuel stations found to be hoarding petroleum products and payment of a fine.
The corporation also vowed to withdraw Marketer’s License, stressing that “Any NNPC, DPR, PPPRA or Government Agent found conniving /wanting will be sanctioned accordingly in line with public service guidelines and procedures.
“As partners in progress, we encourage the general public to report product hoarders and saboteurs of this Administration’s change efforts as they are wittingly fighting every bold change effort currently being put in place. We encourage everyone to shun panic buying and undue return trips as this attitude emboldens marketers to hoard products.”
The statement noted that supply constraints due to foreign exchange challenges are being resolved through collaboration with the Central Bank of Nigeria on innovative ways of closing the gaps in accessing foreign exchange. It said that as a result of credible leadership provided by the Minster of State, Petroleum Resources/Group Managing Director, NNPC, Dr. Emmanuel Kachikwu and the major international upstream oil companies have indicated their willingness to support major oil marketing companies with some of the required foreign exchange.
Continuing, the statement noted that “We are vigorously pursuing an improved model for ‘crude oil for refined product’ exchange (the Direct Sale – Direct Purchase arrangement) which eliminates inefficiencies with an attendant cost saving for the nation of about $1 billion. This will guarantee sustainable product supply to the nation.
“In the medium term, NNPC is working on sustainable strategies to permanently address the issues and challenges facing the midstream and downstream sectors. The overarching objective is to make Nigeria a net exporter of Petroleum products as was the case in the 1970’s.
“Our commitment to ramp up our local Refining capacity and availability remains un-waivered with the ongoing rehabilitation works targeted at running all Refineries at a minimum 70% capacity utilization within the next 6 – 8 months. This is in addition to our initiative of increasing the combined capacity of the domestic refineries through co-locating smaller but cost efficient modular refineries within the existing refineries premises within a time frame of 12-24 months.
“To curb Storage and Logistics challenges, we are working on a joint partnership with technically and financially capable investors to ensure that petroleum products transportation and storage facilities are efficiently operated on an open-access common-carrier user-tariff basis.
“Some of these Depots will be nominated as strategic reserves while we take possession of a strategic reserve vessel in the next 3 months. Tangible results will be delivered within the next 3 – 6 months.
“Changes usually take time, effort and a lot of focus. We understand the plight of Nigerians and the impact on the overall economy. We genuinely empathize with the attendant sufferings and wish to reassure that we are focused and committed to bring an end to this situation within the next few days and we kindly call on all Nigerians to partner with us on this journey to allowing the whole process of change come into fruition.”
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China seeks more crude oil export from Nigeria
China is seeking more crude oil exports from Nigeria in spite of the recent changes in oil prices, the Chinese Embassy’s Economic and Commercial Counsellor, Mr Zao Ling Xiang, said at the weekend
“The total amount of export to China is only about one million barrels in 2015 that was just 1.3 per cent of Nigerian annual oil export.
“In my opinion, it really doesn’t matter whether Iran comes back or not; Chinese companies want to import more crude oil from Nigeria,” Lin Xiang said.
The trade volume between both countries stands at $14.94 billion (2014), making Nigeria China’s third largest trade partner in Africa.
The economic counsellor added that Nigeria’s trade figure was 8.3 per cent of China’s total trade volume with Africa and 42 per cent of the total trade volume between China and Africa.
Besides, both countries have made “remarkable achievements” in infrastructure cooperation.
Lin Xiang said President Muhammadu Buhari’s planned visit to China next month will facilitate the implementation of agreements reached at the 2015 China-African Summit in Johannesburg.
He said China also sought to explore other areas of cooperation with Nigeria, adding:
“China is the largest developing country in the world and Nigeria is the largest developing country in Africa and both countries have complementary advantages in natural and human resources, funds and markets.
“Right now, the Nigerian Government is trying to diversify its economy, which is fully in line with the 10 China-Africa cooperation plans announced at the summit on China-Africa trade in Johannesburg in 2015.
“There are great potential for cooperation between China and Nigeria in the fields of industrialisation, agricultural modernisation, infrastructure construction, financial services, trade and investment facilitation, among others.”
LinXiang explained that the total investment volume between China and Africa exceeded 100 billion U.S dollars in 2015, in spite of the decline in imports from Africa.
His words: “The amount in import from Africa to China declined but did not decline remarkably. Moreover, the economic and trade cooperation between China and Africa is not only about trade but technical cooperation as well.
“China’s total investment volume in Africa last year increased by 100 times more in a short span of 10 years, which shows that cooperation between both parties is moving to a new level.”
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Army ready to combat crude oil theft
The Commander of the 2 Brigade, Port Harcourt, Brig.-Gen. Stevenson Olabanji, has said his men are ready to combat crude oil theft, pipeline vandalism and other criminal activities in the Niger Delta.
The Army in Port Harcourt has trained 200 soldiers to carry out special marine operations and rescue missions in the Niger Delta.
Brig.-Gen. Olabanji spoke at the graduation of soldiers of 73 Regular Recruit Intake in Harry’s Town, Degema Local Government at the weekend.
The commander said the exercise by the Operation Pulo Shield, Sector 2, was aimed at equipping soldiers with the requisite marine skills and boost troops’ readiness at combating oil theft, pipeline vandalism and others.
He noted that the Army took training seriously, following the security challenges confronting Nigeria and Nigerians in the Northeast and other parts of the country.
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Crude Oil– Bane of Nigeria’s economic growth
Global oil prices have been fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations. From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June last year, prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009. The reasons for this change are twofold – weak demand in many countries due to insipid economic growth, coupled with surging US production. Added to this is the fact that the oil cartel – the Oil Producing and Exporting Countries (OPEC) – is determined not to cut production as a way to prop up prices.
However, not all within OPEC are equal. Some OPEC members need oil to be above $100 a barrel to avoid hard spending choices. Alongside Saudi Arabia, Gulf producers such as the UAE and Kuwait have also amassed a considerable foreign currency reserve, which means that they could run deficits for several years if necessary. Other OPEC members such as Iran, Iraq and Nigeria, with greater domestic budgetary demands because of their large population sizes in relation to their oil revenues, have less room for maneuver. They have combined foreign currency reserves of less than $200bn, and are already under pressure from increased US competition.
Nigeria, which is Africa’s biggest oil producer, has seen growth in the rest of its economy but despite this it remains heavily oil-dependent. Energy sales account for up to 80% of all government revenue and more than 90% of the country’s exports. The current oil price which is on a free fall (at about $34 per barrel presently), has brought about the presently witnessed dire implication for a Nigerian economy which runs mainly on a single commodity. These implications on our economy include the current exchange rate volatility being witnessed in the country. Since 95% of our foreign exchange earnings is tied to oil and with shortened revenue in dollars terms, the Naira is under continuous pressure. At over N280 to a dollar presently and despite devaluation, Nigeria is currently earning less revenue from oil and gas exports and imports of household items has become more expensive, with the burden passed on to Nigerians.
Also, stagnation in savings is currently being witnessed as a result of the depletion of the excess crude account. Declining oil prices means that Nigeria is not able to add additional revenue due to pressure from states that also run high recurrent expenditure. It’s also becoming difficult for the Federal Government to save funds in the sovereign wealth fund, considering the austerity measures of the times. Accretion to the external reserve is expected to slow with falling crude oil. Similarly, capital expenditure is under threat by lower oil prices as government strives to keep its deficit within the limits of the fiscal responsibility act whilst ensuring it meets its day-to day obligations. Unless drastic reforms such as downsizing personnel, sharp cuts in overhead costs occur, spending on recurrent items will remain, as they are fixed charges. Furthermore, employment/job creation is being adversely affected. Since the public sector is undoubtedly the largest employer of formal labor, cuts in government expenditure due to falling oil prices would lead to cuts to a number of new jobs. Unless the private sector steps up, this can lead the way for employment opportunities in Nigeria.
Crude oil more than anything else has been a major curse to Nigeria; breeding corruption, indolence, greed, and other ill vices. The current declining oil price is the boost Nigeria needs to wake up from its slumber and diversify its economy. We have as a nation relied too heavily on oil. Even while relying on crude oil export, we have failed to recognize the added value to it, because there are lots of bye-products. We take the oil in its raw form, export it and use the proceeds from it to buy finished products. This is indeed very sad. This is akin to a cassava farmer who harvests his cassava and takes it to the market to sell, using the proceeds to buy garri.
Agriculture has always been a huge potential in bringing in much needed revenue for the development of the country. In fact before the discovery of crude oil, agriculture was the mainstay of the Nigerian economy. Nigeria was once famous for her agrarian economy through which, cash crops like; palm produce (oil and Kernel), cocoa, rubber, timber. Groundnut etc. were exported, thus making Nigeria a major exporter in that respect. The exportation of this agricultural products helped Nigerian in taking gigantic strides towards her economic growth. This sector offers vast opportunities and can employ over 70% of the Nigerian labour force. Added to it is the provision of the basic food requirements for the country, as well as providing raw materials for local industries.
Alas, upon the discovery of crude oil and its subsequent exportation, there was a boom on the economy of Nigeria as it accounted for over eighty percent (80%) of the country’s foreign exchange earnings. The discovery to some extent assisted the country’s economic prosperity, but has now become the bane of Nigeria’s economic growth. The fact being that, the money earned by a country with less or little effort; through petroleum, resulted in the abandoning of the agricultural sector. Sadly, the agricultural sector presently provides employment for about 15-30% of the population and agricultural holdings are small and scattered, and farming is carried out with simple and archaic tools. Large-scale/mechanized agriculture is not common. Also, Nigeria’s abundant mineral resources can serve as a good source of income for the country. However, the mining of minerals in Nigeria currently accounts for less than 0.3% of its GDP, due to the influence of oil resources. The domestic mining industry is currently underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt or iron ore.
Affluence is not a function of the availability of resources at one’s disposal, rather, an effectiveness in utilization of the so – called “resources” to meet the social and psychological needs of individuals, persons or nation in general. If that is case, it is really quite sad for a country like Nigeria; that is endowed with untapped minerals, fertile and available land coupled with good climatic conditions, turns from being a producer and exporter to one of the largest importers of food products.
Nigeria needs to urgently begin looking beyond oil. Years of our over-reliance on oil has led to the current dismal and sordid state we’ve found ourselves in. Governments’ at all levels in the country should and must restructure other sectors like industries, tourism among others, and fully utilize and harness available resources to meet the demand of the present time. The habitual lip-service of diversifying the economy by previous governments should be a thing of the past. Adequate measures has to be put in place and must begin for the actual diversification of our economy if Nigeria wants to survive the ongoing shortfall that has been caused by the over-reliance of oil and running a mono-dependent economy.
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Crude oil price crash a blessing, says Ahmed
Kwara State Governor Abdulfatah Ahmed has said the slide in crude oil price can translate into good tidings for Nigeria, if the country develops its potential in the non-oil sector.
The governor, who spoke when a team of Course 38 of the Armed Forces Command and Staff College, Jaji, Kaduna State, visited him, said a shift of focus on a product economy through exploration and exploitation of potential in agriculture and other natural resources would cushion the harsh economic realities.
He said the country was passing through the danger of dependence on mono-culture economy, adding that the survival of the economy lies in diversification.
Ahmed, who hailed the Armed Forces for protecting the country, called for their involvement in nation building under a democratic dispensation.
The leader of the course, Brig.-Gen. Moshood Jimoh, said the team was in the state for a study of its non-oil sector potential.
Jimoh, who said the theme of the course was: ‘Repositioning Nigeria’s non-oil sector as a major source of revenue’, noted that the country could no longer depend on oil for its survival.
He said governments should explore potential in the non-oil sector to drive the economy.