The Nation Newspaper

Tag: oil trade

  • Shipowners kick against foreign domination of oil trade

    Can indigenous shipowners match their foreign counterparts in the capital intensive crude oil lifting business? Yes, says the Nigeria Shipowners Association (NISA), which has launched a campaign to be involved in the business.

    The association says its involvement in the trade would be in national interest.

    Its participation would reduce youth unemployment, generate revenue and ensure security, its General Secretary, Captain Niyi Labinjo, told The Nation.

    Labinjo said it was more profitable for a Nigerian ship to lift crude as the country was losing by using foreign vessels.

    “We will gain about N968 million a day if we use our own indigenous ships to lift crude oil. This is because Nigeria carries about 2.5 million barrels of crude a day at the rate of $2.50 per barrel,” he said, adding that the huge sum would have accrued to Nigeria and created employment for at least 5,000 professionals in the sector. The advantage is that indigenous ships will get their water, food, tug boats, chandelling, engineers and rags from Nigeriam he noted.

    Labinjo said there are many qualified Nigerians in these fields who have no jobs, adding that using foreign vessels was not in the best interest of the nation because when the dependent country has crisis, Nigeria may have challenges lifting its crude.

    He said as at the last count, indigenous investments in the sector have created over 40, 000 jobs across the hydrocarbon value chain.

    Meanwhile, the Shippers Association, Lagos State has attributed the drop in the revenue collected by the Nigerian Customs Service (NCS) to inconsistency in government policies.

  • Shipowners kick over foreign domination of oil trade

    Shipowners kick over foreign domination of oil trade

    Can indigenous shipowners match their foreign counterparts in the capital intensive crude oil lifting business? Yes, says the Nigeria Shipowners Association (NISA), which has launched a campaign to be involved in the business.

    The association says its involvement in the trade would be in the national interest.

    Its participation would reduce youth unemployment, generate revenue and ensure security, its General Secretary, Captain Niyi Labinjo, told The Nation.

    Labinjo said it was more profitable for a Nigerian ship to lift crude as the country was losing using foreign vessels.

    “We will gain about N968 million a day if we use our own indigenous ships to lift crude oil. This is because Nigeria carries about 2.5 million barrels of crude a day at the rate of $2.50 per barrel,” he said, adding that the huge sum would have accrued to Nigeria and created employment for at least 5,000 professionals in the sector. The advantage is that indigenous ships will get their water, food, tug boats, chandelling, engineers and rags from Nigeriam he noted.

    Labinjo said there were many qualified Nigerians in these fields but they have no jobs, stating that using foreign vessels was not in the best interest of the nation because when the dependent country has crisis, Nigeria may have challenges lifting its crude.

    The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, said in Abuja last month that indigenous shipowners lift about 60 per cent of Nigeria’s crude. She said over 60 per cent of the 2014 /2015 annual term contracts for the lifting of Nigeria’s crude have been awarded to local firms.

    She said  as at the last count, indigenous investments in the sector have created over 40, 000 jobs across the hydrocarbon value chain.

    Meanwhile, the Shippers Association, Lagos State has attributed the drop in the revenue collected by the Nigerian Customs Service (NCS) to inconsistency in government policies.

  • ‘Foreigners dominate oil trade’

    Only 60 of the 600 vessels in the upstream oil sector  are owned by indigenous operators, the General Secretary of the Indigenous Nigeria Shipowners Association (NISA), Captain Niyi Labinjo, has said.
    He said a vessel on offshore operations makes about $5,000 daily, which is the least amount made by a foreign vessel doing business in Nigeria, he added.

    He said because of the lack of indigenous ships, the country losses about N2 trillion yearly.

    “We have plenty of hydrocarbons. As at today, it is 37 billion barrels, but our government is working towards making it 40 billion barrels. That is our proven reserves. We are said to be the 10th world’s producer of oil. The world uses 84 million barrels per day of oil and Nigeria produces 2.5 million barrels every day. For gas, we have 24 trillion reserves.

    “We have the best shrimps in the world, called tiger shrimps. That is why you have many Indian fishing companies in Nigeria. All the tiger shrimps are exported. We import into Nigeria every five million metric tonnes of cargo and 100 million metric tonnes of goods. We also import 65 million litres of petroleum products every year.”
    Labinjo urged the government to assist his members to participate in the oil business.

    “In the oil and gas industry, Nigeria has about 500 oil wells. For each well, there is a rig, which is supported by a minimum of five ships, and they are called oil support vessels.”
    He said a foreign ship earns $5,000 while others earn N150,000 per day.

  • ‘Foreigners dominate oil trade’

    Only 60 of the 600 vessels in the upstream oil sector are owned by indigenous operators, the General Secretary of the Indigenous Shipowners Association of Nigeria (ISAN), Captain Niyi Labinjo, has said.

    He told The Nation that a vessel on offshore operations makes about $5,000 daily, saying it is the least amount made by a foreign vessel doing business in Nigeria.

    He said because of the lack of indigenous ships, the country loses about N2 trillion yearly.

    “We have plenty of hydrocarbons. As at today, it is 37 billion barrels, but our government is working towards making it to 40 billion barrels. That is our proven reserves. We are said to be the 10th world producer of oil. The world uses 84 million barrels per day of oil and Nigeria produces 2.5 million barrels every day. For gas, we have 24 trillion reserves.

    “We have the best shrimps in the world, called tiger shrimps. That is why you have many Indian fishing companies in Nigeria. All the tiger shrimps are exported. We import into Nigeria every five million metric tonnes of cargo and 100 million metric tonnes of goods. We also import 65 million litres of petroleum products every year.

    “In the oil and gas industry, Nigeria has about 500 oil wells. For each well, there is a rig, which is supported by a minimum of five ships, and they are called oil support vessels.”

    He said a foreign ship earns $5,000 while others earn N150,000 per day.