The Nation Newspaper

Tag: Oil

  • Nigerian oil shipments to dip in February

    Nigerian oil shipments to dip in February

    • Oil prices fall 3%

    Exports of four main Nigerian crude oil grades in February are set to average about 657,000 barrels per day (bpd), according to preliminary programmes, down slightly from the previous month.

    The scheduled loadings of Bonny Light, Bonga, Qua Iboe and Forcados crude oil streams stood at 792,000 bpd for January, according to Reuters calculations.

    Meanwhile, oil prices fell three per cent yesterday as more shipping companies said they were ready to transit the Red Sea route, easing concerns about supply disruptions as Middle Eastern tensions stay elevated.

    The more active Brent crude futures for March delivery were down $2.35, or three per cent, at $77.19. Brent futures for February delivery, which expire after Thursday’s settlement, fell 1.6per cent to $78.40 a barrel.

    U.S. West Texas Intermediate crude futures fell by $2.21 or three per cent to $71.90 a barrel. On Wednesday, oil prices dropped nearly two per cent as major shipping firms began returning to the Red Sea.

    Denmark’s Maersk will route almost all container vessels sailing between Asia and Europe through the Suez Canal from now, and divert only a handful around Africa, a Reuters breakdown of the group’s schedule showed.

    Read Also: Oil firm lifts Lagos community at Yuletide

    France’s CMA CGM is also increasing the number of vessels travelling through the Suez Canal, it said earlier in the week.

    “The perception is that the Red Sea route is reopening and will bring supply to market weeks faster,” Price Futures Group analyst Phil Flynn said.

    Major shipping companies stopped using Red Sea routes and the Suez Canal earlier this month after Yemen’s Houthi militant group began targeting vessels.

    At the same time, a U.S.-led coalition to quell tensions in the Red Sea has yet to yield the coordinated action that had been hoped for.

    A week after the launch of the maritime force, many allies do not want to be associated with it, partly reflecting the fissures created by the conflict in Gaza, which has seen the U.S. maintain firm support for Israel even as international criticism rises over its offensive.

    Oil prices found some support after the U.S. Energy Information Administration (EIA) reported a much larger-than-expected draw in U.S. crude oil inventories last week.

    U.S. crude stockpiles fell by 7.1 million barrels in the week ended Dec. 22, EIA data showed, while analysts polled by Reuters had expected a draw of 2.7 million barrels.

    Investors expect interest rate cuts in Europe and the U.S. in 2024, which could boost oil demand.

  • Off-World Oil Operations: Strategic Insights into Martian Market Speculations

    Off-World Oil Operations: Strategic Insights into Martian Market Speculations

    The concept of extracting oil on Mars may sound like science fiction, but it represents a potential avenue for human expansion beyond Earth. As we explore the Red Planet and prepare for future colonization, understanding the feasibility and implications of off-world oil operations becomes increasingly important. In this article, we delve into the strategic insights surrounding the speculative Martian oil market, examining the challenges, opportunities, and ethical considerations that accompany this audacious endeavor. The petro momentum serves as a vital link connecting those interested in investment with knowledgeable educational firms. The platform doesn’t act as a teacher but functions as a crucial connector. Additionally, it strives to assist individuals in grasping the fundamentals of investment and the significance of market movements.

    The Martian Environment: A Unique Challenge

    Overview of Martian Surface Conditions

    Mars presents a unique set of challenges for any industrial operation, including oil extraction. With its thin atmosphere, extreme temperatures, and radiation exposure, the Martian environment is vastly different from Earth’s. These conditions require innovative solutions to protect both equipment and personnel.

    Impact on Off-World Oil Operations

    Oil extraction on Earth typically occurs in more hospitable environments, but on Mars, we must contend with the harsh realities of space. Dust storms, low atmospheric pressure, and limited sunlight can affect the efficiency and safety of oil operations.

    Technological Adaptations Required

    Successful Martian oil operations necessitate groundbreaking technological advancements. Developments in materials science, robotics, and energy generation are crucial to overcoming the Martian environment’s unique challenges.

    Oil on Mars: Availability and Composition

    Prospects of Finding Oil on Mars

    Speculating about the presence of oil on Mars is not unfounded. Geological evidence suggests that Mars may have had liquid water in its distant past, a prerequisite for hydrocarbon formation. However, confirming the existence of Martian oil requires further exploration and drilling.

    Geological Factors Influencing Oil Formation

    Understanding Martian geology is key to identifying potential oil reservoirs. Geological surveys can help pinpoint areas with sedimentary rock formations that might contain oil. Mars’ geological history, including the presence of ancient riverbeds, is a promising sign.

    Analysis of Martian Crude Oil Composition

    Martian crude oil, if it exists, would likely differ from Earth’s oil in composition. Analyzing the chemical makeup of Martian hydrocarbons is essential to assess their suitability for various industrial applications and energy production.

    Challenges of Extracting Martian Oil

    Drilling Techniques on Mars

    Conventional drilling techniques used on Earth are not directly transferable to Mars. Drills must be designed to operate under lower gravity and in the presence of abrasive Martian dust. Innovative drilling solutions will be essential for success.

    Extracting and Transporting Martian Crude Oil

    Extracting oil is just one part of the equation; safely transporting it back to Earth or a Martian colony poses additional challenges. Secure and efficient pipelines, storage facilities, and transport systems will be vital components of Martian oil operations.

    Environmental Considerations and Ethics

    Environmental ethics are paramount in space exploration. Before proceeding with off-world oil operations, we must carefully consider the impact on the Martian environment and potential consequences for future colonization efforts. Sustainable practices and responsible resource management must guide our actions.

    Economic Feasibility and Investment Opportunities

    Cost-Benefit Analysis of Off-World Oil Operations

    The economic feasibility of Martian oil operations hinges on numerous factors, including exploration costs, infrastructure development, and the market price of Martian crude oil. A thorough cost-benefit analysis is necessary to assess the viability of such endeavors.

    Market Potential and Speculations

    The Martian oil market is purely speculative at this stage, but it has captured the imagination of entrepreneurs and investors alike. Market speculations will influence the level of investment and interest in Martian resource exploitation.

    The Role of Public and Private Sector Investments

    Public-private partnerships and government incentives may play a pivotal role in driving Martian oil operations forward. Collaboration between space agencies and private companies could accelerate progress while sharing the financial burden.

    Legal and Ethical Implications

    International Space Law and Martian Resource Exploitation

    The Outer Space Treaty and related international agreements govern space activities. Clarifying how these treaties apply to Martian resource exploitation is essential to avoid legal disputes and ensure responsible behavior in space.

    Environmental Stewardship and Sustainable Practices

    As Earth’s stewards, we must apply the principles of sustainable development to our activities on Mars. Minimizing environmental impact, protecting fragile ecosystems, and adhering to ethical guidelines are fundamental considerations.

    Ethical Concerns Surrounding Off-World Oil Operations

    Balancing the pursuit of resources with ethical concerns is a critical aspect of Martian oil operations. Questions about equity, resource allocation, and the impact on Martian society and culture must be addressed.

    Read Also: Nigeria’s oil production dips to 1,466,185b/d

    Future Prospects and Sustainability

    Long-Term Viability of Martian Oil Operations

    The long-term viability of Martian oil operations hinges on our ability to adapt to changing conditions, develop sustainable practices, and ensure the responsible use of Martian resources. Success could pave the way for a self-sustaining Martian economy.

    Potential for Resource Depletion and Alternatives

    Resource depletion is a genuine concern, even in the vastness of space. Research into alternative energy sources and materials must run parallel to oil operations to ensure a stable Martian future.

    Role in Advancing Space Exploration

    Martian oil operations could serve as a stepping stone for more ambitious space endeavors, such as human missions to the outer solar system or interstellar exploration. Their contribution to advancing our understanding of space cannot be underestimated.

    Conclusion

    In conclusion, the prospect of conducting oil operations on Mars marks a captivating frontier in the realm of human exploration. As we embark on our cosmic journey, it is imperative that we remain acutely attuned to the myriad challenges, abundant opportunities, and ethical dilemmas that lay before us. Through the application of prudent and conscientious strategies in the realm of Martian resource utilization, we have the potential to play a pivotal role in fostering the sustainable evolution of our species beyond the boundaries of Earth.

  • Nigeria’s oil production dips to 1,466,185b/d

    Nigeria’s oil production dips to 1,466,185b/d

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday revealed that the country produced 1,466,185 barrels of crude oil and condensate per day in November 2023, The Nation learnt.

    It was a decline from the 1,562,315b/d the country produced in the previous month of October, 2023.

    The commission noted that the production dipped by 96,130b/d in the period under review.

    In its report tagged “Crude Oil and Condensate Production November 2023,” the commission noted that in the month under review crude oil output was 1,250,299 bpd.

    The report further said 49,426b/d of blended condensate was produced in the period under review.

    According to the data, Nigeria produced 166,429b/d unblended condensate in November 2023.

    From the report, it is an indication that the country failed to meet its Organization of Petroleum Exporting Countries (OPEC) quota of 1.8mb/d in 11 successive month in 2023.

    Recalled that Nigeria could not meet the production quota the cartel approved for it last year.

    Crude oil theft, pipeline vandalism have been blamed for the downtime the country is grappling with.

    Last week, The Nation reported that the Nigerian National Petroleum Company Limited (NNPCL) cried out that it recorded 389 incidents of crude oil theft in two weeks.

    The record emanated from the company’s bid to eradicate crude oil theft from the country.

    Meanwhile, the Minister of State Petroleum Resources, Senator Heineken Lokpobiri on Monday rekindled the country’s hope for improved petroleum production.

    He vowed that Nigeria will not only meet the 1.7 million barrels per day (bpd) crude oil production benchmark in 2024 budget but it will also surpass it.

    Speaking at a Stakeholder’s Interactive Session on Creating Value and Enabling Investments in Nigeria’s Oil and Gas Sector organized by Chevron Nigeria Plc, he also said the country has the capacity to increase crude oil production to 2 million bpd.

    He expressed his commitment to fostering collaboration with stakeholders to enhance the country’s oil and gas sector amidst his ambitious target for the year 2024.

    Read Also: Crude oil production price benchmark for 2024 budget realistic – NNPC

    His Special Adviser on Media and Communication, Nneamaka Okafor made this disclosure in a press statement yesterday.

    She quoted the minister as saying, “The success of the upstream sector will determine the success of the midstream and the downstream and as a government, we are willing to sustain that engagement with the stakeholders so that in the year 2024 and beyond, we will together ensure that we produce not just the 1.7 million bpd that we need for our budget but ensure that we produce what is needed to meet the local demand.”

    The Minister outlined the trajectory of sector growth since the current administration took office, starting at about 1 million barrels per day and steadily increasing to 1.4 million barrels per day. He expressed his ambition to continue this upward trajectory, highlighting the government’s commitment to creating an enabling environment for stakeholders to thrive.

    “As a new government that is business-friendly, with a clear mandate to ramp up production, we are willing to ensure that our fiscal regime is competitive globally. My appeal is that this old marriage let us manage it, sustain it and improve on it. Whatever your concerns may be, let us put them on the table to disagree to agree,” stated Lokpobiri.

    He reassured stakeholders that the government is working diligently to address the challenges facing the sector and is committed to providing the best playing field for both International Oil Companies (IOCs) and independents to make the necessary investments.

    “As a country, we have the capacity to produce more than 2 million barrels per day. We have identified the issues bedeviling the sector and are already working on them. I would replicate this program with all the IOCs and independents so that we can make the sector work for all of us and Nigerians at large, and I know that 2024 will be a much better year,” he added.

    The minister also highlighted ongoing efforts to rehabilitate refineries and ensure the functionality of modular refineries to enhance the country’s refining capacity, meet local and regional demands, and thrive internationally.

    The Minister concluded by inviting stakeholders to join hands in building a robust oil and gas sector that contributes significantly to the economic growth and development of Nigeria.

  • NOGASA, PETROAN to fight oil-related crimes

    NOGASA, PETROAN to fight oil-related crimes

    The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have pledged to combat crimes in the oil and gas sector.

    They also resolved to partner the state government and relevant security agencies to create enabling environment for legitimate business to thrive in the sector.

    This is as the new leaderships of the organizations were jointly inaugurated at Ibom Icon Hotel, Uyo Akwa Ibom State yesterday.

    The National President of the organization, Mr Kenneth Korie charged them to create enabling environment for seamless distribution and marketing of petroleum products in the state.

    He said: “This long awaited inauguration will bring positive waves to the oil and gas suppliers and distribution sector in Akwa Ibom State. I charge you to create enabling environment for distribution and marketing of the products.

    “Petroleum products remain the livelihood of the Nigerian Economy and we the marketers have a responsibility to protect that without compromising quality service to the people of this great country.

    “NOGASA remains resolute and committed to ensuring smooth operations of the oil and gas in our nation, we are here to help customers get to best value for their money and our work is to assist and enhance relationship between our members’ suppliers and end users of our products.”

    In the same vein, the National President of PETROAN while inaugurating the state leadership led by Mr Udeme Eset, underscored the importance of the joint inauguration, describing it as unique in the annals of the history of the two organisations.

    Read Also: PETROAN: Pressure on us to receive cargoes<br>to adulterate petrol

    He said it’s only when the two organisations work together and act together that they would be able to overcome the challenges in the sector and ensure that Nigeria returns to the time when petroleum products is sold at a price that a common man can afford.

    “What we are doing today is unique, it’s epic and it’s the first in the annals of the history of the downstream sector. We are going to make it unique throughout the country because together we can make sure that the importation of petroleum products is reduced to the barest minimum

    “Together we can make sure that our refineries are working again, together we can get back to the time when petroleum products are sold at what the common man can afford. They say in Nigeria, anything that goes up will not come down again, but I can tell you with the synergy that is coming from retail outlet owners and the suppliers association of Nigeria, this is going to be something that is going to change the landscape of the economy and the economic activities of the downstream. So, take this meeting as history”

  • Nigeria oil production dips to 1,466,185b/d in November

    Nigeria oil production dips to 1,466,185b/d in November

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that the country produced 1,466,185 barrels of crude oil and condensate per day in November 2023, The Nation learnt.

    It was a decline from the 1,562,315b/d the country produced in the previous month of October 2023.

    The commission noted that the production dipped by 96,130b/d in the period under review.

    In its report tagged “Crude Oil and Condensate Production November 2023,” the commission noted that in the month under review crude oil output was 1,250,299 bpd.

    The report further said 49,426b/d of blended condensate was produced in the period under review.

    According to the data, Nigeria produced 166,429b/d unblended condensate in November 2023.

    From the report, it is an indication that the country failed to meet its Organization of Petroleum Exporting Countries (OPEC) quota of 1.8mb/d in 11 successive months in 2023.

    Recalled that Nigeria could not meet the production quota the cartel approved for it last year.

    Crude oil theft, and pipeline vandalism, have been blamed for the downtime the country is grappling with.

    Last week, The Nation reported that the Nigerian National Petroleum Company Limited (NNPCL) cried out that it recorded 389 incidents of crude oil theft in two weeks.

    The record emanated from the company’s bid to eradicate crude oil theft from the country.

    Meanwhile, the Minister of State Petroleum Resources, Senator Heineken Lokpobiri on Monday rekindled the country’s hope for improved petroleum production.

    He vowed that Nigeria will not only meet the 1.7 million barrels per day (bpd) crude oil production benchmark in the 2024 budget but it will also surpass it.

    Speaking at a Stakeholder’s Interactive Session on Creating Value and Enabling Investments in Nigeria’s Oil and Gas Sector organized by Chevron Nigeria Plc, he also said the country has the capacity to increase crude oil production to 2 million bpd.

    He expressed his commitment to fostering collaboration with stakeholders to enhance the country’s oil and gas sector amidst his ambitious target for the year 2024.

    His Special Adviser on Media and Communication, Nneamaka Okafor made this disclosure in a press statement yesterday.

    She quoted the minister as saying, “The success of the upstream sector will determine the success of the midstream and the downstream and as a government, we are willing to sustain that engagement with the stakeholders so that in the year 2024 and beyond, we will together ensure that we produce not just the 1.7 million bpd that we need for our budget but ensure that we produce what is needed to meet the local demand.”

    The Minister outlined the trajectory of sector growth since the current administration took office, starting at about 1 million barrels per day and steadily increasing to 1.4 million barrels per day. He expressed his ambition to continue this upward trajectory, highlighting the government’s commitment to creating an enabling environment for stakeholders to thrive.

    “As a new government that is business-friendly, with a clear mandate to ramp up production, we are willing to ensure that our fiscal regime is competitive globally. My appeal is that this old marriage, let us manage it, sustain it and improve on it. Whatever your concerns may be, let us put them on the table to disagree to agree.”

    He reassured stakeholders that the government is working diligently to address the challenges facing the sector and is committed to providing the best playing field for both International Oil Companies (IOCs) and independents to make the necessary investments.

    Read Also: ‘Nigeria will meet 1.7m bpd budget oil benchmark’

    “As a country, we have the capacity to produce more than 2 million barrels per day. We have identified the issues bedeviling the sector and are already working on them. I would replicate this program with all the IOCs and independents so that we can make the sector work for all of us and Nigerians at large, and I know that 2024 will be a much better year,” he added.

    The minister also highlighted ongoing efforts to rehabilitate refineries and ensure the functionality of modular refineries to enhance the country’s refining capacity, meet local and regional demands, and thrive internationally.

    The Minister concluded by inviting stakeholders to join hands in building a robust oil and gas sector that contributes significantly to the economic growth and development of Nigeria.

  • Nigeria loses $10b yearly to foreign welders in oil, gas sector

    Nigeria loses $10b yearly to foreign welders in oil, gas sector

    The Federal Government yesterday said it loses about $10billion yearly to the influx of foreign welders in the oil and gas sector.

    The government which vowed to pay special attention to the sector said the emphasis on international certification has marginalized local welding professionals, depriving them of opportunities to contribute their expertise.

    Minister of Science and Technology, Chief Uche Nnaji said despite having over one million welders, Nigeria still loses an estimated $10 billion annually in revenue by importing welders with international certification, displacing local service suppliers due to the lack of acceptable accreditation.

    He spoke in Abuja at the launch of the National Policy on Welding and Welding-Related Fields and presentation of its Strategy Implementation Action plan.

    He said: “It is concerning that the lack of internationally recognized certification of industry practitioners has prevented our indigenous welding sector, which should be making a substantial contribution to Nigeria’s economy, from exploiting myriads of opportunities, particularly in the oil and gas industry and exporting them to an influx of foreign welding personnel.

    “The global welding market emphasizes international certification of its service suppliers, there is little room for our local welding professionals to showcase their talents and potential unless we consciously and progressively certify existing capacities and regulate the practice. Consequently, we have introduced the National Policy on Welding and Welding Related Fields to address this issue and promote the use of local welding personnel in critical economic sectors.

    “Despite having over one million welders, Nigeria still loses an estimated $10 billion annually in revenue by importing welders with international certification, displacing our local service suppliers due to the lack of acceptable accreditation. Research has shown that welders’ contribution to all fabricated products exceeds 70per cent, with most welder-wage components unwittingly exported.

    Read Also: Nigeria, Saudi Arabia sign MoU on oil, gas investment

    “The influx of foreign welding personnel, particularly in the oil and gas industry, demands special attention. The emphasis on international certification has marginalized local welding professionals, depriving them of opportunities to contribute their expertise. The recent approval of the National Policy on Welding and Welding-Related Fields is a crucial step towards addressing this issue by promoting the utilization of local welding personnel in critical sectors of the economy.”

    Board Secretary, Nigerian Institute of Welding, Dr. Solomon Edebiri said the policy when implemented, will provide the right platform for the development of technology, small and medium enterprises (SMEs), informal sector, human capacity, infrastructure across all sectors, equipment manufacturing and quality control improvements.

    He said there is no doubt that proper implementation of this policy will save the country over $10billion lost annually due to capital flight arising from the importation of various cadres of Welding personnel into the country for some unjustifiable reasons.

    Dr. Edebiri also said the reason given are either for reason of equity funding on projects or in the name of technical partners’ interest. Most times, they adduce this to lack of competencies in specific welding processes.

  • Oil, bank, electricity workers, others join nationwide strike

    Oil, bank, electricity workers, others join nationwide strike

    The Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and the National Union of Electricity Employees have asked their members to join the nationwide strike declared by the two labour centres – the Nigeria Labour Congress and Trade Union Congress of Nigeria to protest the assault on NLC President, Joe Ajaero.

    Also, the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and the National Union of Banks Insurance and Financial Institutions Employees (NUBIFIE) have joined the strike.

    Federal workers have also been asked to join the nationwide strike which commenced on Tuesday.

    General Secretary, Association of Senior Civil Servants of Nigeria, Joshua Apebo directed federal workers to withdraw services nationwide.

    However, on Tuesday, some federal workers showed up for work. 

    For example, at the Federal Ministry of Education, offices were opened as workers went about their business.

    In the education sector, the Academic Staff Union of Universities (ASUU); National Association of Academic Technologists (NAAT); Senior Staff Association of Nigerian Universities (SSANU); Academic Staff Union of Polytechnic (ASUP); Colleges of Education Academic Staff Union (COEASU) and the Senior Staff Association of Nigeria Polytechnics have asked their members to stay away from work.

    Labour unions in the maritime and health sectors also asked their members to comply with the directive reached at the joint National Executive Council of the two labour centres.

    The health sector is not left out as the nurses union has asked their members to downtool.

    Acting General Secretary, Medical and Health Workers Union of Nigeria, Salihu Abubakar asked workers to join the nationwide strike.

    Also, the National Association of Nigeria Nurses and Midwives asked its members to comply strictly with the NEC directive.

    Read Also: Tinubu committed to improving lives of vulnerable communities – Shettima

    Judiciary workers Union has also asked its members to join the strike.

    Despite the ruling of the National Industrial Court, organised labour on Tuesday called put workers for a nationwide strike.

    The NLC president, Ajaero had led workers to protest against the Imo State government where violence broke out and was beaten in the process.

    Ajaero said he was handed over to thugs allegedly by the police and was “beaten like a common criminal.”

    The NLC president, while narrating his experience, said he was “dragged on the floor like a common criminal.”

    Angered by the assault on the NLC President, labour demanded for the redeployment of the Commissioner of Police in Imo state.

    The Inspector General of Police has met the demand by redeploying the commissioner of police.

    Some of the demands are: redeployment and investigation of the Commissioner of Police, Imo State Command; the sacking of the Area Commander of the Nigeria Police Force and all other Officers and Men in Owerri through whom the Police Commissioner supervised the brutalisation and humiliation of Comrade Ajaero and other workers and Mr Nwaneri Chinasa, Adviser on Special Duties who supervised the terror on workers and bestial brutality meted out to Congress President, Comrade Joe Ajaero be arrested immediately and prosecuted for his crimes against workers and the President.

    Others are: an immediate, independent and unbiased thorough professional medical examination of Comrade Ajaero in light of the physical and psychological injuries inflicted on him; other workers and journalists subjected to inhuman treatment by the Police and the Hope Uzodimma’s goons be treated by the State and all the properties lost be restored immediately and the mplementation of all outstanding Industrial Relations issues as previously agreed with the Imo state Government.

  • Nigeria’s oil supply to Europe hits 730,000bpd

    Nigeria’s oil supply to Europe hits 730,000bpd

    • Crude supply drops in Asia

    The Nigerian National Petroleum Company Limited (NNPCL) has said the country’s supply of crude oil to European buyers has jumped to 730,000 barrels per day (bpd) this year following strong demand caused by the Russian war on Ukraine.

    Executive Director, Crude & Condensate, NNPC Trading Limited, Maryamu Idris said the oil flow to Europe rose to fill supply gaps left by the ban on Russian crude following its invasion of its eastern European neighbour on February 24, 2022.

    Idris, who spoke during a panel presentation at the Argus European Crude Conference in London, noted that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710, 000 bpd six months later and 730, 000 bpd so far this year.

    She said: “This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners.

    “Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel.

    “Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket. This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade.”

    Idris said this was gradually compensating for the dip in demand for Nigerian crude oil at the Asian market in the wake of the war.

    Read Also: Nigeria, Saudi Arabia sign MoU on oil, gas investment

    She noted that India – one of the primary destinations for Nigerian crude – abandoned it for Russian crude which is being sold at discounted prices because of the war.

    “To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 bpd in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterwards. And so far this year, only around 120, 000 bpd of Nigerian crude volumes have made their way to India,” Idris said.

    On production challenges, Idris stated that like many other oil-producing countries, Nigeria had faced production challenges aggravated by the COVID-19 pandemic, including reduced investment in the upstream sector, supply chain disruptions impacting upstream operations, ageing oil fields, and oil theft.

  • Reps vow to recover $30b accrued fees, bonuses from oil firms

    Reps vow to recover $30b accrued fees, bonuses from oil firms

    The House of Representatives has said it had taken steps to recover over $30 billion in accrued fees and bonuses from mergers of multinational oil companies operating in the country.

    In a resolution that followed a motion sponsored by the member representing Somolu Federal Constituency, Ademorin Kuye, the House asked its relevant committees to conduct an investigation into the issue and recover the money for the country.

    Kuye said the oil industry experienced several lateral mergers/buy-overs/takeovers of companies in the same oil and gas exploration, prospecting, production and marketing in the ‘90s.

    According to him, Section 2 of the Petroleum Act, 2014 – the extant law applicable under which the merger took place – provides that the oil exploration licences, oil prospecting licences and oil mining licenses may be granted to only Nigerian citizens or companies incorporated in Nigeria, implying that mergers that resulted in a corporate body not indigenous to Nigeria in their incorporation would exclude the new entity from the scope of companies that could be given a licence or lease under the Petroleum Act.

    Kuye explained that the June 1984 merger of Gulf and Chevron, which he said brought Chevron through the backdoor to inherit Gulf Oil operations in the country, was not approved until July 1991.

    Read Also: Imo/Bayelsa/Kogi polls: Tinubu appeals for free, fair process

    The lawmaker said this only happened after careful consideration and bargaining that still shortchanged the country to the tune of $65 million at that time.

    He noted that other mergers between Exxon and Mobil to form ExxonMobil; Elf, Total and Fina to form TotalFinaElf, and between Chevron and Texaco to form ChevronTexaco, resulted in new entities and companies that should have been subjected to certain procedures and processes.

    The processes, Kuye said, are applications for assignment of interest in each block; payment of reserve value in each block; payment of a sign-on or signature bonus in respect of each block; fresh registration at the Corporate Affairs Commission (CAC); and fresh commitment to social, community and environmental policies in Nigeria that were not done.

    The lawmaker expressed concern that the mergers, though increased assets of foreign oil multinationals in the country, resulted in the layoff of hundreds of Nigerian professionals and brought some companies through the backdoor.

    He cited the example of Exxon and Fina, which he said were not physically present in Nigeria in their registered names and identities.

    Kuye also expressed concern that the proper sign-on of the oil block inherited as assets was not done, thus costing the country millions of dollars in signature bonuses and reserve value payments that should have been paid.

    He stressed that as a result of the anomaly, the country bled a revenue of over $30 billion in signature bonuses, reserve values and assignment fees of 43 oil blocks where merging companies operate.

  • Oil communities urge settlors on agreements, others to reduce face-off

    Oil communities urge settlors on agreements, others to reduce face-off

    Indigenes of host communities across Delta State have called on oil firms to abide by the agreements, interact with the right leaders and tackle pollution, in order to reduce conflicts and ensure smooth oil and gas operations in the Niger Delta.

    They spoke at a Peace Building and Conflict Management training organised by the Partnership Initiatives for the Niger Delta (PIND) Foundation in Ekpan, Uvwie Local Government of Delta State.

    The 20 participants drawn from selected oil host communities, while identifying issues that caused face-off between them and oil companies (both multinational and indigenous firms), mentioned bad community leadership.

    A participant, Peter Satu, said delay in payment for executed contracts by companies often led to disruption of oil operations.

    Another participant identified as Femi said execution of substandard projects in the communities due to “lack of monitoring and inspection by the oil companies and no rise in pay, despite the current economic realities, are among concerns of the host communities.

    Yet another participant, Perez, noted that throwing only “casual jobs at indigenes, when there are qualified persons to take up technical jobs”, brings strife.

    Read Also: Peter Obi: I’m not a saint, there is nothing wrong with Nigeria

    Stanley Boyo and Oyen Omawumi decried the environmental degradation across the oil producing areas and the seeming lack of will by the settlors to address the situation.

    They said fishing, a major means of survival in the communities, had become unproductive due to the polluted waters.

    However, Solomon Ofoaramieyere pointed accusing fingers at the indigenes and their penchant for holding on to power.

    He recalled the early 1990s when issues concerning oil operations were tabled at town hall meetings with every community member present to give their input in decisions to be taken.

    Steven Etsano lamented that despite promising to convert to staff, community workers who have been with Chevron Nigeria Limited for many years, the company has failed to do so, leading to protests.

    The participants were, however, optimistic that if the findings of the training were acted upon, there would be “peace and harmony” among stakeholders.

    In a chat with reporters, Dr. Chukwudi Njoku, the capacity building coordinator for PIND Foundation, said the training and interaction would improve the capacity of the participants in peace building, as well as conflict management and prevention in their communities.