Tag: Oil

  • Oil palm growers excited over Otu’s plans

    Oil palm growers excited over Otu’s plans

    Oil Palm Growers Association of Nigeria (OPGAN) has expressed appreciation over plans by Cross River State Governor Bassey Otu to provide 3.5 million free oil palm seedlings for oil palm farmers.

    It said the plan by the governor to ensure that Nigeria Institute for Oil Palm Research (NIFOR) had a permanent branch office in Cross River State to guide farmers to have quality yields was a positive move.

    OPGAN National President Mr. Joe Onyiuke said at a town hall meeting with state leaders and members of OPGAN in Cross River that “it takes a governor who means well for the ordinary citizen to commit investment to the oil palm industry and economy.

    He said OPGAN members were excited because genuine farmers had been given the needed lift to grow and expand for the general good of the economy of the state and nation.

    Read Also: Tinubu celebrates NUPRC boss Komolafe at 60

    He said the governor in a speech he delivered to mark his 100 days in office affirmed that his administration was in partnership with OPGAN, and had begun the planting of 3.5million hybrid oil palm seedlings in 13 identified locations across the state.

    The OPGAN national president likened what Governor Otu was doing in Cross River State to what the late Michael Okpara did with oil palm in the defunct Eastern Region.

    He said OPGAN was encouraging family cooperatives and group cooperatives so that when finances were accessed for expansion and growth, sustainability would be ensured.

    The state Chairman of OPGAN, Mr. Nyaim Bisong, said oil palm growers were not only going to remain growing, but would also participate in the value chain of oil palm produce, as planned by the governor.

  • Deal decisively with oil thieves, terrorists, others, CDS orders field commanders

    Deal decisively with oil thieves, terrorists, others, CDS orders field commanders

    The Chief of Defence Staff (CDS), Gen. Christopher Musa, has ordered Commander of Operation Delta Safe, the joint military operations in the Niger Delta region, to deal decisively with oil thieves and other economic saboteurs in the region.

     He also ordered the Commander of Operation Hadin Kai and other field commanders to do the same to terrorists, bandits  and other security threats in their areas of responsibility.

     The CDS gave the order yesterday while delivering his speech at the closing ceremony of Defence Headquarters Joint Task Force Commanders Conference, in Abuja.

     He said the DHQ would reform the structure of various operations to meet the evolving security threats.

     “The security landscape is ever-evolving, and we must continuously assess and improve our strategies, tactics, and capabilities to effectively counter emerging threats,” the CDS said.

    Read Also: Military highly united to protect democracy, says CDS

     “Embracing new technologies, fostering a culture of innovation, and promoting a learning mindset are essential for maintaining our operational edge.”

     He said the DHQ would upscale the number of troops and equipment to further improve the effectiveness of its operations across the country.

     The CDS charged the commanders to be innovative, adaptable and foster the culture of cooperation, collaboration, and synergy among the troops.

     “By breaking down barriers, sharing resources, and leveraging each other’s strengths, we can maximize our collective impact and achieve our shared objectives,” he said.

  • DHQ, police turn heat on oil thieves, economic saboteurs

    DHQ, police turn heat on oil thieves, economic saboteurs

    • 1m litres of stolen crude seized in one week •IG orders clampdown on firearms production

    The pressure piled on oil thieves, economic saboteurs and bandits by the military and the police have started yielding results.

    The nation’s security has raised the tempo  of their battle against those they described as enemies of the government’s plan to improve the economy.

    The Defence Headquarters (DHQ) and the police yesterday gave insights into the results of their declaration of war on the criminals.

    Acting Inspector – General of Police (IGP) Kayode Egbetokun and Director of Defence Media Operations  Maj-Gen. Edward Buba spoke at different events.

    They warned  that there would be no hiding place for anyone  whose goal  is  to thwart the nation’s renewed drive for economic recovery.

    Oil theft, which slowed down the country’s ability to meet its oil quota allocated by the Organisation of Petroleum Exporting Countries (OPEC) has been curtailed by improved security activities.

    Gen. Buba said troops recovered 1,205,950 tonnes of stolen crude  in one week in the Southsouth. Egbetokun  said  the Police would deal decisively with any one that  plans  ” to sabotage the economic revival that our country is about to witness.”

    The IG also banned the production and sales of illegal firearms.

    Read Also: Military recovers one million stolen crude in one week, says DHQ

    The Defence spokesman also said that troops of Operation Delta Safe  recovered 452,910 litres of illegally refined diesel, 22,650 litres of petrol  and 3,000 litres of kerosene   in the Southsouth   in the past one week.

    The troops, he added,  destroyed 89 illegal refining sites, 21 dugout pits, 56 boats, 138 storage tanks. They also arrested 59 suspected oil thiefs and other criminals.

    In the Northeast,  troops of Operation Hadin Kai   killed 44  terror suspects, arrested one terrorist’s logistics supplier and   21 other criminals.

    Four kidnapped hostages were rescued by them, said Gen. Buba.

    The Defence spokesperson  explained  that men  of Operation Safe Heaven  and Operation Whirl Stroke   in the Northcentral killed 31 terror suspects, arrested 22 others and rescued two kidnap victims.

    In the Northwest, 35  terror suspects were killed  and  eight arrested by troops who also rescued 17 kidnapped persons.

    Read Also:

    Gen. Buba said: “ Troops of Operation Hardin  Daji neutralised 18 terrorists, arrested five terrorists and rescued 10 kidnapped hostages.

    “In addition, troops of Operation Whirl Punch eliminated 17 terrorists, arrested three suspected terrorists and rescued seven kidnapped hostages.

    “Troops also recovered 34 assorted weapons, 399 Improvised Explosive Device  (IED) detonator primers, one vehicle and two motorcycles.”

    The Defence spokesperson  added that   operatives   also recorded some successes in the Southeast .

    “In the conduct of operations, troops of Operation Udoka  neutralised 17 terrorists, arrested 11 suspected criminals and rescued two kidnapped hostages,” he said.

    Gen Buba said that  a large cache of arms and ammunition were seized  during the different  operations across the country in the past two weeks.

    “All recovered items, arrested suspects and rescued hostages were handed over to the relevant authority for further action,” he  said.

    IGP Egbetokun directed all Police commissioners and  tactical commanders   to deal decisively with any ”attempt by unscrupulous person(s) to sabotage the economic revival” policies of President Bola Tinubu.

    Egbetokun told them  to emplace   ”adequate security “   in their operational  areas/commands  to ensure that such persons did not succeed.

    He also ordered a clampdown on firearms fabricators,  unauthorised sellers and users.  

    Egbetokun spoke at a meeting with senior officers where he highlighted policies and  achievements  of the Police under his leadership  in the last five weeks.

    The IG announced that  288 armed robbery suspects were arrested  and  127 firearms recovered during the period (five weeks). He added that the Force  recorded fewer violent crimes/ major offences across the country.

    He said: “We are all aware of recent government efforts towards economic recovery and growth through local and international engagements with investors and technocrats, the Nigeria Police Force is poised to support the efforts of government by providing the needed security and enabling environment for all legitimate businesses and other economic activities.

    “We are not leaving any stone unturned and will continue to be on our toes in ensuring that we play our role well in the efforts towards achieving economic recovery, growth, as well as social and political development of our nation.

    “A total of 127 firearms of different calibres, 612  assorted ammunition, and 89 stolen vehicles were recovered nationwide while 71 kidnap victims were rescued unhurt and subsequently reunited with their families and loved ones within the same period of five weeks.”

    The IG enjoined  all individuals in   possession of illegal firearms and light weapons to submit  them  at   police stations nearest to them to avoid  sanction.

    He said: “All state  Police commissioners   and supervising Assistant Inspectors – General of Police in charge of Zonal commands, as well as tactical commanders are by this announcement mandated to immediately commence a total clampdown on the illegal fabrication, sales, possession  and use of prohibited firearms.

    “All Nigerians are hereby urged to report all suspicious firearms related activities to their local police stations. They can also report through the various NPF social media platforms for prompt response and action.”.

    On the Central Motor Registry (CMR) which was recently automated and rolled out, the police boss said the development has revolutionised police response to the challenge of stolen vehicles .

    The platform, according to him, affords Nigerians the opportunity to register their vehicles online  for safety.

    Egbetokun  said   that in the period under review, 1,244  vehicles had been registered  on the paltform,  of which  234  were found to have been reported stolen. Eighty nine of the stolen vehicles were  recovered in the last five weeks.

    The IGP “encourage members of the public to access the platform at cmris.npf.gov.ng and register their vehicles.”

    Egbotokun also revealed  that through the deployment of the Nigeria Police Force – National Cybercrime Centre (NPF-NCCC),  10 notorious cybercriminals were arrested in the Federal Capital Territory(FCT) within four days last month.

    He said: “Building on the  initiative (NPF-NCCC),  a well-coordinated, intelligence-led operation was initiated, resulting in the apprehension of 10 notorious cybercriminals.

    “This operation conducted from August  16th to 20th, 2023, was in direct response to the emergence of a novel cyber threat characterised by the creation of cloned banking websites facilitating high-yield investment scams and money laundering.

    “The arrested suspects, all male residents of the Federal Capital Territory (FCT), have provided confessions regarding their varying degrees of involvement in these criminal activities.”

    Following the completion of the investigation, they have been charged to court accordingly.”

    The meeting also availed  the officers the opportunity to enumerate some operational plans towards policing the off-season gubernatorial elections in Bayelsa, Imo and Kogi states in November.

  • Oil sector growth expected in Q3

    Oil sector growth expected in Q3

    After 13 consecutive quarterly decline, Nigeria’s oil sector is poised to restart growth this quarter.

    The government’s efforts at curbing oil thefts and steady production cycle have been identified as the combination to lift the oil sector.

    A breakdown of the latest Gross Domestic Products (GDP) report released by the National Bureau of Statistics (NBC) showed that the oil sector recorded a negative growth of -13.43 per cent in second quarter 2023, a further depression on -4.21 per cent recorded in first quarter 2023.

    The oil sector contributed 5.34 per cent to GDP in third quarter, down from 6.21 per cent reported in first quarter of the year. Oil sector to GDP was 6.33 per cent in the second quarter of last year.

    The negative performance of the oil sector has been moderating the country’s overall GDP performance, which commendably has sustained growth on the back of impressive non-oil sector growths.

    The real GDP rose by 2.51 per cent in second quarter 2023 as against 2.31 per cent in first quarter 2023, driven mainly by the non-oil sector, which grew by 3.58 per cent in second quarter 2023 from 2.77 per cent in first quarter 2023.

    Analysts however expected the oil-sector to halt its long-running decline and resume growth in the third quarter, providing further impetus for stronger overall GDP performance during the period.

    Read Also: ECOWAS denies approving transition proposal for Niger

    Oil and gas analysts at Cordros Capital said the performance of the economy had been “capped by the lingering underwhelming oil sector’s performance”, noting that the second quarter economic performance fell below estimate due primarily to “higher-than-expected oil sector’s contraction”.

    Cordros Capital estimated that while many downside risks remain, Nigeria’s crude oil production will average 1.41 million barrels per day (mbd) in the third quarter 2023, after crude oil production fell by 12.6 per cent from 1.48mbd in June 2023 to 1.29mbd in July 2023. The estimated average production in third quarter is expected to translate to a 14.50 per cent annualized growth for the sector.

    With the expected improvement in oil sector, Cordros Capital estimated that Nigeria’s GDP will grow by 2.95 per cent in third quarter, 44 basis points increase on second quarter growth of 2.51 per cent. The previous quarters are however expected to moderate full-year 2023 GDP growth to about 2.67 per cent.

    Analysts at Financial Derivatives Company (FDC) underscored the importance of the oil sector growth to the Nigerian economy.

    They said: “Whilst the Nigerian economy has reduced its output dependence on oil, its revenue and export earnings still remain heavily reliant on the commodity. This sector has been witnessing negative growth for 13 quarters, essentially being in recession for the past three years.”

    According to them, the oil sector, a major source of revenue and foreign exchange earnings, has been in recession since 2020, due primarily to lower oil production occasioned by persistent oil theft, pipeline vandalism, and force majeure.

    Oil price inched close to $84.72pb yesterday amid concerns over risks of lower oil production and energy disruptions. Gabon, an oil producing country and member of the OPEC, was seized by military coup yesterday, raising concerns about the stability of the country.

  • Nigeria’s Q2 oil production drops to 1.22 mbpd

    Nigeria’s Q2 oil production drops to 1.22 mbpd

    The Nigerian Bureau of Statistics (NBS) has said the country was only able to record an average daily oil production of 1.22 million barrels per day (mbpd).

      Compared to same period last year, this translates to a drop of 0.22 mbpd and 0.29 mbpd in the first quarter of this year.

      Daily oil production averaged  1.43 mbpd and 1.51 mbpd in the second quarter of last year and the first quarter of the year production.

    The NBS data also indicated that the real growth of the oil sector was 13.43 per cent (year-on-year) in Q2 2023, indicating a decrease of 1.66 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-11.77 per cent).

    Read Also: Bus fare rises by 97.88% in one year, says NBS

    Growth also decreased by 9.22 per cent points when compared to Q1 2023 which was –4.21 per cent.

    Quarterly, the oil sector recorded a growth rate of -14.12 per cent in Q2 2023 and contributed 5.34 per cent to the total real GDP in Q2 2023, down from the figure recorded in the corresponding period of last year and down from the preceding quarter, where it contributed 6.33 per cent and 6.21 per cent.

    The agency further said the non-oil sector grew by 3.58 per cent in real terms during the reference quarter (Q2 2023). This rate was lower by 1.19 per cent points compared to the rate recorded in the same quarter of last year and 0.81 per cent points higher than the first quarter of the year.

    This sector was driven in the second quarter of the year mainly by Information and Communication.

    In real terms, the non-oil sector contributed 94.66 per cent to the nation’s GDP in the second quarter of 2023, higher than the share recorded in the second quarter of 2022 which was 93.67 per cent and higher than the first quarter of 2023 recorded as 93.79 per cent.

    “The Mining & Quarrying sector consists of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying and other Minerals sub-activities. This sector grew nominally by -7.11 per cent (year-on-year) in Q2 2023.

    Metal Ores exhibited the highest growth rate of all the sub-activities at 186.40 per cent followed by quarrying and other minerals activity at 60.83 per cent.

    However, Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 85.80 per cent in Q2 2023.

    Comparing Q2 2023’s rate of growth relative to Q2 2022 and Q1 2023 growth rates, there was a decline of 56.86 per cent points and a fall of 3.59 per cent points respectively.

    The Mining & Quarrying sector contributed 6.58 per cent to the overall GDP in the second quarter of 2023, lower than the contributions recorded in 2022 second quarter at 8.20 per cent and lower than the previous quarter at 6.73 per cent.

    In real terms, the Mining and Quarrying sector grew by –12.16 per cent (year-on-year) in the second quarter of 2023. Compared to the same quarter of 2022 and the first quarter of 2023, it was lower by 1.07 per cent points and lower by 8.20 per cent points respectively. Quarter- on- quarter, the growth rate recorded was -11.11 per cent during the quarter. The contribution of Mining and Quarrying to Real GDP in the quarter under review stood at 5.58 per cent, lower than the rate of 6.51 per cent recorded in the corresponding quarter of 2022 and lower than the 6.26 per cent recorded in the first quarter of 2023.

  • Nigeria still losing 400,000 barrels of crude oil daily – NSA

    Nigeria still losing 400,000 barrels of crude oil daily – NSA

    The National Security Adviser (NSA), Malam Nuhu Ribadu, says the country is still losing 400,000 barrels of crude oil daily to local and international thieves despite efforts to end the menace.

    Ribadu confirmed this when he led a presidential delegation to inspect oil and gas facilities at Owaza in Abia and Odogwa in Etche Local Government Area of Rivers on Saturday.

    He said the activities of oil thieves and pipeline vandals had impacted negatively on the nation’s economy and were partly responsible for the rising cost of living in the country.

    “It’s unfortunate that few individuals would steal our common resources, and in the process cause unbelievable loss to both the nation, communities and the people.

    “Nigeria has the capacity to produce 2 million barrels of crude daily, but we are currently producing less than 1.6 million barrels due to theft and vandalism of pipelines.

    “So, we are talking about 400,000 barrels of crude oil going to waste with few criminals and economic saboteurs not even getting much out of it,” he said.

    Ribadu said the operators of artisanal refineries collect a small quantity of crude oil when they broke the pipelines while larger volumes of oil were spilled on the environment.

    Read Also: NSA probes another vessel held with stolen crude

    “The value of 400,000 barrels of oil today is about 4 million dollars, and every day, we lose this amount because of this irresponsible behaviour.

    “If you multiply 4 million dollars by 365 days (one year), you will see that it is a lot of money running into billions of dollars.

    “Currently, the country is in desperate need of money as the Naira is continuously losing its value because we earn less money.

    “If we earn more money, it will not only help strengthen our currency but reflect in everything, including cost of living in the country,” he added.

    The NSA said that the President Bola Tinubu administration was concerned about the development and was already taking actionable steps to address the matter.

    He said huge investments made by the government in building infrastructures for the common good of all were being destroyed by few individuals, and in the process, destroying the environment.

    Ribadu called for a united front to tackle oil theft and end decades of attacks on the nation’s oil and gas infrastructures.

    “We are working hard with the security forces and those employed by the Nigerian National Petroleum Company (NNPC) Limited to secure our facilities and end this madness called oil theft,” he said.

    The News Agency of Nigeria (NAN) reports that on the presidential delegation with the NSA were the Minister of Defence, Baduru Abubakar, and Chief of Defence Staff (CDS), Gen. Christopher Musa.

    Others included the Chief of Air Staff (CAS), Air Marshal Hassan Abubakar; Minister of State for Defence, Bello Matawalle, and Minister of State (Oil), Petroleum Resources, Heineken Lokpobiri.

    The Minister of State (Gas), Petroleum Resources, Ekperipe Ekpo, and senior management officials of the NNPCL as well as other top security personnel were part of the team.

    (NAN)

  • Fire in the house: Oil, war and Iran

    Conflict is assured once power is in the hands of the greedy and the absurd.

    This week was to feature the last installment of our trilogy on the global economy. However, the flame of momentous events hijacked that plan. First there was the ouster of the maniacal John Bolton as the National Security Advisor to President Trump. Bolton’s exit demanded a sigh of relief. The man was a ceaseless merchant of war; his departure hopefully diminished the American rush to military conflict against any number of possible targets from Venezuela to Iran. Trump has named another NSA. The new pick will never be mistaken for a pacifist as the current American government is nothing if not a machine of war; but the incoming advisor will find it nigh impossible to surpass the fidelity the rapid Bolton paid to his favorite deity, Mars, the god of war.

    Then came the attack against the Saudi Abqaiq oil facility causing such damage as to cut by half Saudi’s enormous 10 million barrel daily oil production. This audacious breach of the world’s largest facility panicked oil markets, shaking an already wobbly global economy. Worst, it seemed to pull an already tense region onto that narrow perch separating war from peace.

    Yemen’s Houthi rebels claimed responsibility and recounted how they did it. United States Secretary of State Pompeo publicly disbelieved them, instead pointing an accusing finger directly at Tehran. President Trump hectored that he was ready to strike Iran once given the green light from Riyadh.

    Afraid that oil supplies might dry, the Europeans, who were previously trying to mediate between the United States and Iran, got weak in the knees. They quickly moved to express support for the Saudis. All prior wrongs, including the ghoulish beheading of people for relatively harmless offenses from drug possession to advocacy of Shi’a Islam, were washed clean on the altar of oil.

    The Saudis were no longer unpleasant ogres to be tolerated because of their indispensable economic function; economic necessity had magically transformed them into sympathetic victims. Warms the heart to see that European leaders remain as pragmatically nimble and short-sighted as their predecessors who a few generations ago arbitrarily carved from the rotting Ottoman Empire the contentious nation states we see today.

    The Saudi Defense Ministry gave a long September 18 press briefing to assert Iran was indeed the culprit. Pointing to an array of scrap metal that would make an energetic, self-respecting junkyard owner proud, the Saudi spokesperson claimed the attack did not come from the direction of Yemen; thus, the Houthis were not source. Instead, he said it came from the north, meaning either Iraq or Iran was the launch site. He also asserted the evidence adduced from the ballistic fragments suggested Iranian manufacture.

    The aggrieved Saudi leadership adeptly reached out to any government that would listen, contending the attack was not only against Saudi but the whole world. Witnessing a nearly 20 percent spike in oil prices, few nations were in a position to argue with that statement. Iran had effectively been placed in the docks as the accused and accursed for a crime it vehemently denied.

    It would be easy to join the growing congress of those blaming Iran. However, let’s not be content with doing what is easy. Let’s seek to do what is right.

    We must start with what we know then seek to answer what we don’t. We know the facility was damaged. What we don’t know is who did it and how. (Once you know who, you will easily determine why!) Notwithstanding the adamant nature of Saudi and American claims, we cannot take such claims at face value for three reasons. First, both Washington and Riyadh have blatantly misled the world community in the recent past. Second, the attack does not conform to Iran’s traditional caution. Iran has assiduously avoided the military offensive precisely to avoid giving the stronger U.S. a pretext to launch a broad strike against it. Iran well understands the power differential it suffers compared to the U.S. Iran has played the role of the weaker antagonist with skill and patience. There is no discernible reason why Tehran would deviate from this tried, proven policy in such a reckless manner.

    Third, the muted, relatively diplomatic response of Saudi Arabia and the softening of America’s initial martial vocalizing are out of character. The leaders of the two nations are both impulsive men inclined toward rash action. Instead of gathering around the negotiating table, they would rather throw bombs — or resort to a hacksaw if the victim is within arm’s reach. This is the same Saudi government that lured the dissident journalist Jamal Khashoggi into a consulate to torture and dismember the man for merely publishing a few harsh words against the government.

    Given the lack  of mercy shown Khashoggi and the benighted tactics applied in the war in Yemen, the Saudis now show an extraordinary restraint in the face of a provocation that will costs billions of dollars and that dwarfs any insult the now dismembered Khashoggi or the  straggling Houthis may have tossed at them. For them to hew the route of diplomacy at this instance is as much out of character for the Saudis as committing the attack is against the grain of normal Iranian behavior. The near preternatural calm exhibited by the Saudis seems almost pre-planned, leading one to, at least, question whether they knew beforehand what was to come.

    For now, the Saudis eschew military retaliation and that is a good thing. Their present goal is to isolate Iran diplomatically which has always been a prime goal. Some nations will be so relieved the Saudis did not pine for war that they will unquestioningly support the Saudis on this more modest objective of isolating Iran. The fact that there is no compelling evidence against Tehran will not bother most nations; they just want to get back to a normal flow of oil. Ostracizing Iran seems a rather small price to pay to secure this essential.

    To the extent the Saudis can isolate Iran, the world will be assured that, at some future moment of their choosing, the Saudi government and its American ally will use force against a friendless Iran. As such, the Saudi government is using this incident to construct an elaborate, delayed trap for Iran, not dissimilar to the one used to fatally snare the contumacious journalist.

    Like most aggressive governments, neither the Saudis nor the Americans are to be taken at their word. Any nation willing to transgress another will not allow the truth to prevent the incursion. A discerning person must remember the outrageous explanations issued regarding the Khashoggi murder. America’s perfidy in fashioning pretexts to launch war is the meat of legend.  From Vietnam to Iraq, almost every major American military engagement was based on one false premise or another.

    More recently, America created the perverse tale that Gaddafi was so wickedly prescient that he stockpiled stores of Viagra in Libya. He then dispensed the pills to his youthful fighters so they could inflict themselves on women. This canard was published by senior American officials as a rationale to bomb the once prosperous nation. Gaddafi did not send his fighters to rape women. However, America spread this tale that it might rape Libya of its independent future.  On more than one occasion America fudged the truth about chemical weapons attacks in Syria, blaming the Syrian government when it knew others were more likely at fault.

    Before we summarily conclude on such an important matter, we should more closely analyze the political terrain. Instead of focusing solely on one player, let us expand our study to encompass all the usual suspects.

    1. The Houthis: They claim responsibility and they have strong motive to inflict pain on Saudi given the cruelty of Riyadh’s hand in Yemen. On the other hand, one must question how the Houthis acquired the aerial weapons used in the attack. This attack was significantly more complex than any the Houthis had before tried against Saudi territory. Either the Houthis purchased these weapons from the illicit market or obtained the assets from an ally. It is possible that ally was Iran. Whether the supplier knew the specific target that was envisioned is another material question to which there likely will never be a clear answer.
    2. Iran: This nation had little to gain and much to lose from the brash attack. Causing no long-term damage to the kingdom, the attack risked precipitating a full-fledged military retort by the American-Saudi alliance with Israel sure to join the fracas for good measure. Such a muscular response could cripple Iran’s defensive and other national infrastructure. This, in turn, might foment internal instability by weakening the government in the eyes of the people.

    Moreover, Iran and Russia are helping Syria break the last extremist redoubt in Syria. A cautious Iran would hardly embark on the Abqaiq caper when so close to long-awaited victory in Syria. The Iranians also would have gauged that the attack would dangerously isolate it by undermining the ability of Russia and China to offer them needed diplomatic support and cover. The attack would also alienate European opinion, thus chasing Europe into the hands of the Americans. This would contravene the established, partially successful strategy of exploiting the policy differences between the US and Europe.

    For these reasons, it seems unlikely the Iranian civilian authorities would have embarked on this unwise roll of the dice. Iran’s posture has perennially been a defensive one. Noting in the alignment of the stars or of that nation’s vital interests recommends such an abrupt change of policy. Like any nation, Iran has hardline war hawks.  These ruffians have been effectively caged and seem not to be on the ascendance. Possibly a group of frustrated hardliners went rogue and engineered this attack in hope of actually sparking a generalized war. Or perhaps they may have reasoned they could get away with such an attack because President Trump would recoil from a protracted military engagement due to next year’s election in America. While this cannot be ruled out, the gamble is so reckless as to be unlikely.

    1. Saudi Arabia: A false flag against its most vital facility? At first flush, the idea seems preposterous. The more thought it is given, the less far-fetched it sounds. This would help to explain why Saudi’s vaunted, costly billion dollar air defense system failed to detect this attack.

    At first, the Saudis claimed the damage from the attack was vast; repair would take the longest time. Once those statements had the desired effect on world opinion and global energy markets, the Saudis walked back the story. Now they claim the fixes will be completed by month’s end. This means the attack was not as destructive as initially asserted. It is within contemplation that the limited damage was because this was a controlled attack.

    The theory of a controlled attack also explains the measured, diplomatic Saudi response, traits not ordinarily attributed to the current Saudi leadership. The aim of the operation would be to isolate Iran. If the world community can castigate Iran for this attack, the world will more readily indict Iran when the next inexplicable attack takes place. Having cornered Iran like a hunted animal, Saudi and its allies hope to later pounce on the harried nation without so much as a finger or a plaintive word being lifted by another nation to protect Iran from the coming onslaught.

    1. United States: Much the same as 3 above.
    2. Israel: Much the same as 3. Also, the Israelis have the capacity to mimic Iranian weaponry so that the remnants of the assets used in the attack bear a distinctively (but forged) Iranian signature, thus implying Iranian guilt.

    Before us stands one of the most extraordinary alliances of all times. Pundits speak daily of a clash of cultures and civilizations. The truth is more nuanced. This tripartite grouping features America, where right wing Christians are a major wheel of the ruling party, Saudi Arabia where extremist Wahhabism has great say in governance and Israel where secular and religious Zionism are the most potent political notions in the land.

    Christian, Islamic and Jewish extremism meet and support each other, especially in their animus toward the descendants of the Persian Empire, that bastion of Shi’a Islam.

    However, it is not the Persians’ choice of religion that is the grist of contention; the heat is caused by the inevitable consequences of Iran’s geopolitical position. The combine of America, Israel and Saudi is glued together by oil, land, money and power. These things trump faith. In fact, they are the faith of the amorally pragmatic and of those overly driven by a sleepless ambition.

    Nestled beneath the waters of the Persian Gulf between Iran and Qatar, sits a rather large reservoir of natural gas. Iran wants to construct a pipeline north through its territory then west through friendly Iraq and Syria to the Mediterranean to feed European energy consumption. This would strengthen Iranian influence in region and also in Europe. Saudi wants none of this. It wants the pipeline to drive south into its lands. To halt the Iranian plan, the Saudis financed and supplied the radical extremists fighting Syria’s Assad government. A pipeline cannot be constructed through a nation seemingly at war with itself. Saudi engagement in Syria was to stop Iran; its opposition to Assad was a mere byproduct of this larger game. One of the unstated reasons America reneged on the Iranian nuclear deal was to turn the proposed Iranian pipeline into an empty pipe dream.

    Israeli interests coincided with Saudi’s. Israel seeks to hold the Golan Heights, partially as a security buffer and an imperfect roadblock to Iranian supply routes to Hezbollah in Lebanon. Israeli interests also focus on water resources and now the significant oil reserves discovered in the Golan. Unsurprisingly, and though the land is not theirs, the Israelis granted oil exploitation rights to a recently-formed American firm owned by former VP Dick Cheney and other influential members of the American national security establishment.

    Much like Saudi, Israel believes if Syria cannot be engineered into friendly hands then it should forever be in turmoil. America has always reserved Syria for the chopping block. Thus, it was willing to join forces with any group, from the Saudis to Al Qaeda affiliates, to overturn the Syrian government.

    However, due to Russian and Iranian support for Syria, the plan to break that government seems headed toward resounding failure. With that, attention will refocus on Iran as a source of the failure in Syria and as an ever present threat to other aims in the region. Joining them again, America has a longstanding grievance with the Iran. Washington would like nothing better than to cart away the extant Iranian government in a tumbrel.

    The lesson from all of this is that nothing is at it seems. Iran possibly could have authored the Abqaiq attack. However, Tehran’s culpability is not a foregone conclusion. It is also plausible the event was a false flag caper intended to secure the diplomatic isolation of Iran so that it can later be attacked without so much as a whimper from the world community.

    President Trump seeks to avoid war for now. A military excursion would hurt his reelection bid next year. Thus, there is time and space to avert conflict. However, the clock is ticking and the door is closing on the prospects for peace. Somewhere John Bolton sits quietly, smiling to himself, secure in his belief that blood as much as oil will eventually flow. It would be nice I peace prevailed to wipe that smirk from the warmonger’s visage.

    0806034025 sms only

  • ‘Skills development’ll drive local content in oil, gas sector’

    Investing in training facilities, Research and Development (R&D) will help enhance the capacity of indigenous operators in the oil and gas industry thereby deepening the local content initiative, the Executive Director, Lagos Deep Offshore Logistics Base (LADOL), Mr Jide Jadesimi, has said.

    He said there was the need to enhance the capacities of local businesses and operators in the nation’s oil and gas industry in order to execute major projects in the extractive industry.

    Jadesimi spoke to The Nation ahead of the “3rd Africa local Content & Sustainability Summit” scheduled to hold in Ghana in October. He said increasing local content by expanding the opportunities for indigenous enterprises and communities to participate in the extractive industry’s value chain required up-skilling national workforces to increase their competitiveness.

    The LADOL director said this could be done through partnerships, joint ventures and/or other alliances between local businesses and mining companies to enable indigenous companies broaden their knowledge of the extractive industry and promote technology and skills transfer.

    He added that a multi-sectoral approach was critical to skills development so that competencies gained can be transferred to other economic sectors.

    According to him, such approach will also help indigenous businesses access market information on opportunities in the extractive sector and build their capacity over time to effectively participate in and link with mining, oil and gas companies.

    Jadesimi stated that without the necessary capacities, indigenous oil and gas firms will continue to miss out on available opportunities.

    “Substantial benefits can be realised from close collaborations with companies, hence the importance of facilitating alliances between local and foreign businesses,” he said.

    The LADOL boss added that the participation of the private sector and civil society will also be critical to raising community awareness and building the capacity of local enterprises to take advantage of emerging opportunities in the industry.

    He further stated that investing in skills development through training is not just about driving local content, but doing business sustainably, profitably and responsibly. “It can lower supply chain costs by creating jobs and prosperity for local communities and using local suppliers, goods and services,” he added.

    While insisting that local content matters a great deal, Jadesimi said businesses must comply with a country’s local content laws to be able to operate.Secondly, investing in skills, sourcing locally and building capacity in the short-term, he said, means businesses can operate more efficiently and profitably in the long-term.

    He also said companies will strengthen their brand and protect their long-term licence to operate by contributing to the development of the host country. Jadesimi said for local content to be sustainable, a long-term, end-to-end localisation approach must be followed from exploration through to decommissioning phases in the typical oil and gas lifecycle.

    “To become more competitive to international mining firms, governments must seek to create a more investor-friendly business environment. But these actions should not override the reasonable consideration of retaining as large a proportion of resource wealth as possible in-country,” he said.

  • Oil jumps on drone attacks

    Two pumping stations on a Saudi Aramco oil pipeline in Saudi Arabia were attacked by explosive-laden drones in the early morning local time yesterday, the official Saudi Press Agency (SPA) reported, citing Saudi Energy Minister Khalid al-Falih, who described the attack as one of “terrorism and sabotage.”

    This development led oil prices that had been struggling for direction in earlier trade to jump.  WTI Crude was up 0.82 per cent at $61.54, while Brent Crude traded up 1.22 per cent at $71.09.

    The drones laden with explosives targeted two pump stations on the East-West pipeline which carries oil from eastern Saudi Arabia to the Yanbu port.

     

  • Nigeria, Saudi MoU on oil, gas infrastructure underway

    The Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, H.E. Khalid bin Abdulaziz Al-Falih, has expressed the readiness of his country to sign a Memorandum of Understanding (MoU) with Nigeria on oil and gas infrastructure.

    Al-Falih communicated the blessings of the King of Saudi Arabia, Salman bin Abdulaziz Al Saud, and the Crown Prince, H.R.H. Mohammed bin Salman bin Abdulaziz Al Saud, for the partnership investment while announcing their readiness to sign the MoU with the Nigerian President, Muhammadu Buhari.

    According to him, the early draft of the MoU that will solidify the new oil and gas development partnership between Nigeria and Saudi Africa will be ready in the first week of May, 2019.

    The Saudi Minister made this known during a high level bilateral meeting with Nigeria’s Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on Wednesday in Riyadh.

    He stated that his team will undertake the task of drafting an outline of the MOU in consonance with Nigeria and consequently move through the bureaucratic channels of getting the requisite approvals and endorsements.

    The Organisation of Oil Exporting Countries (OPEC) governors for the two countries, Eng. Adeeb Y. Al-Aama (Saudi Arabia) and Dr. Omar Farouk Ibrahim (Nigeria) have already been nominated to fast track the process for official endorsements and signing.

    The Ministry of Petroleum Resources made this disclosure in a statement on Friday.

    According to the statement, “the agreement will in principle open the doors for Nigeria to benefit from Saudi Aramco’s recent aggressive oil sector investments across the globe.

    Areas of interest will cover existing refinery revamp, building of a brand new refinery, LNG investments and product supply trading in crude and refined products.

    H.E Khalid Al Falih also reiterated the possibility of establishing an independent refinery in Nigeria as the country considers Nigeria the best hub to reach other African countries.”

    Nigeria and Saudi Arabia has over the decades enjoyed a robust bilateral relationship with the Nigerian delegation to the holy land pilgrimage among the highest globally amidst the common heritage of being abundantly blessed with oil and gas deposits.

    Kachikwu expressed his expectation that the definite signing of the MoU will further cement the cordial relationship between both nations.

    He stated that the visit to Saudi Arabia became necessary due to the common grounds between the two countries and the success of the country in the oil and gas sector.

    Kachikwu said Nigeria aimed to leverage on the huge success of the Saudi government in the sector while name-checking Saudi Aramco’s turnover of over $200 billion in the last year.

    He further applauded the cooperation between Nigeria and Saudi Arabia, expressing excitement that the two leading persons for the MoU drafting are seasoned OPEC governors with the highest levels of competence.

    Dr. Kachikwu who led a high powered delegation drawn from the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources, Petroleum Products Pricing Regulatory Agency and Petroleum Equalization Fund for an exploratory visit to the oil rich nation at the invitation of his Saudi counterpart, Al Falih, visited the Saudi Aramco Headquarters in Dhahran where his delegation was met by the President and Chief Executive Officer of Saudi Aramco, Amin H. Nasser, and the top management of the conglomerate.

    The visit was aimed at crystalising the ongoing discussions on collaborating with the Federal Government of Nigeria on investments in the oil and gas sector.