The Nation Newspaper

Tag: Oil

  • Oil majors lead as equities rally N558b

    Oil majors lead as equities rally N558b

    Oil and gas stocks were the best-performing stocks at the Nigerian Stock Exchange (NSE) in December 2016 as last-month bargain-hunting and portfolio rebalancing saw Nigerian equities with a month-on-month net capital gain of N558 billion.

    With a loss of N1.34 trillion in November and most equities around their lowest prices, investors turned round to bargain-hunting in the last month of the year, setting off a sustained rally that helped to moderate the previous month’s loss and bring the full-year return to single-digit negative.

    Capital gains in the oil and gas sector were more than twice the average gain at the stock market during the period. The NSE Oil and Gas Index appreciated by 16.55 per cent in December as against the average return of 6.47 per cent recorded by the benchmark index, the All Share Index (ASI) of the NSE. The ASI, a value-based common index that tracks prices at the Exchange, rallied from its opening value of 25,241.63 points to close the month at 26,874.62 points. Aggregate market value of all quoted equities also rose from the month’s opening value of N8.689 trillion to close at N9.247 trillion, representing a month-on-month gain of N558 billion.

    Nearly all sectoral indices closed on the upside too, underlining the widespread buying sentiments that dominated trading during the month. The NSE Banking Index rose by 7.78 per cent. TheA NSE Industrial Goods Index appreciated by 5.22 per cent. The NSE Insurance Index returned 1.90 per cent during the month while the NSE 30 Index, which tracks the 30 most capitalised stocks, rose by 5.59 per cent. However, the NSE Consumer Goods Index declined by 1.14 per cent.

    Nigerian equities had lost a whooping N1.34 trillion in November as tough macroeconomic environment characterized by rising inflation, declining Gross Domestic Products (GDP) and improbable foreign exchange exacerbated major selloff of quoted shares.

    The loss of N1.34 trillion in November compounded the losing streak, with investor losing N701 billion in October. The benchmark index at the NSE had indicated average month-on-month decline of 13.49 per cent for November.

    Aggregate market value of all quoted equities closed November at N8.689 trillion as against the month’s opening value of N10.028 trillion. The ASI had dropped from the month’s opening index of 29,177.72 points to close November at 25,241.63 points.

    Notwithstanding the last-month rally in December, Nigerian equities ended 2016 with a net capital loss of N604 billion or average negative return of -6.17 per cent. The ASI closed 2016 at 26,874.62 points as against its opening index of 28,642.25 points for the year. Aggregate market value of all quoted equities also dropped from year’s opening value of N9.851 trillion to close at N9.247 trillion.

    Head, research and investment advisory, SCM Capital Markets, Mr. Sewa Wusu attributed the full-year decline in 2016 to the weak macroeconomic environment in 2016, which led to three consecutive declines in the Gross Domestic Products (GDP) and technically threw the country into recession.

    He noted that the global decline in crude oil price was a major deciding factor for the Nigerian economy during the year as the resultant foreign exchange shortage impacted negatively on the Naira and stirred unrests within the foreign portfolio investment circle.

    “Aside, the higher yields of the fixed income instruments, particularly treasury bills and Open Market Operation (OMO) auctions led to investment switch away from the stock market,” Wusu said.

  • ‘Be less dependent on oil’

    Against the backdrop of the 2017 budget proposal presented to the national Assembly, which is largely based on crude oil earnings, government has been charged to align national development goals to the global shift from fossil fuel dependence to cleaner and efficient fuels such as solar and wind energy.

    Speaking at the public presentation of a book titled: Nigeria Beyond Oil: Pathway to a Post-Petroleum economy in Lagos, the Executive Director, Environmental Rights Action/Friends of the Earth, Nigeria (ERA/FoEN), Dr. Godwin Uyi Ojo, said oil dependency has not helped the nation, rather, it has  fuelled conflict, corruption and wastage while contributing to climate change and destruction of lives and rural livelihood.

    He lamented that according to United Nations Environmental Programme (UNEP) assessment report and recommendations, a whopping $1billion will be required for the initial take off of the clean-up of Ogoni. He said, “Since 2011, when the federal government accepted the report, not a drop of oil has been cleaned up. In spite of the huge oil revenue, poor infrastructural development, gap of inequalities and social disparity is on the rise in the country, being one of the highest in the world.”

    The book, according to Ojo, is a response to the question of what development pathway to follow to get out of the woods, “The book reiterates ERA/FoEN position of economic decarbonisation by 2050. Let’s leave oil and plan the economy as if oil resources are already exhausted. Let’s transit from oil dependency to safe and decentralised renewable alternatives of community controlled energy system such that communities are co-producers and suppliers as well as beneficiaries from renewable energy investments in mini-grids and non grids systems.”

    Also speaking at the event, the Deputy Executive Director, ERA/FoEN, Mr. Oluwafemi Akinbode, said the book is a pointer to the issues of national resource governance, its inclusiveness and sustainability and the need for policy and institutional change to support an energy transition from oil dependency to alternatives in renewable resources.

    He warned that agricultural development should not only be to promote large scale agro-business but also to support local farmers facing displacement and equip them with post harvest infrastructure for the added value to stem food deficits and supply from areas of surplus to areas of needs.

  • ‘Eat heart-friendly oil, avoid diseases’

    •Oil health team visits Kano, Abuja communities

    Nigerians have been urged to eat heart-friendly foods to avoid contracting cardiovascular diseases.

    Two experts, Dr Barba Miko and Dr Teju Adeyekun, gave the advice during a visit by a Power Oil Health Camp team to Mariri community in Kumbotso Local Government Area of Kano State and Tunge-Maje community in Gwagwalada, Abuja.

    It was part of the Power Oil Health Camp initiative by Raffles Oil LFTZ Enterprise, makers of the “heart- friendly” vegetable oil brand, which began in 2013 in nine locations in Nigeria.

    It is a project aimed at bringing free basic health check-ups closer to the people, sensitising them on how to keep the heart functioning properly and  maintaining a low cholesterol system.

    The doctors said heat and light could affect oils’ taste and quality and that it was better to use one or two types of oil  that are stored in a cool, dark place. They warned that if oil smells or becomes bitter should be thrown away.

    Also, they said it was important to choose the right oil and quantity for cooking.

    Its Public Relations Manager, Miss Omotayo Azeez, said: “As a brand, our main focus and commitment is the well-being of our consumers, considering the alarming rate of the  health complications in the society, we are taking this as a part of our responsibilities to sensitise Nigerians on the need to lead and maintain a healthy lifestyle through regular checkups and healthy choice of food consumption to achieve a sound health.”

    In Kano, the Power Oil medical checkup was attended by  some leaders in the community.

    The District Head, Mariri community, Kano State Kumbotso, Alhaji Saminu Garba, said: “I am a strong advocate of the saying that you are ultimately what you eat, that is why we would always throw our support behind Power Oil for not only helping the public by propagating the importance of eating healthy but also going some steps higher in providing free medical checkup for us, we are sincerely grateful.”

    The councillor of the Mariri community, Alhaji Bashir Hassan, said:  ‘’I praise the firm for floating such a laudable project. Power Oil is driving a spectacular initiative and we implore other corporate organisations to follow suit and take responsibilities in certain areas, in support of the government.’’

    The Abuja Health Camp team also recorded a huge turnout in Tunge-maje community, Gwagwalada,  when the community members, particularly women, came out enmasse with their leader, Hajia Rabi Usman.

    Hajia Rabi said: “We all understand the current economic situation not being favourable to the poor, going to the hospital for a medical check and consultation will definitely drill a large hole in one’s pocket. However, we are glad that Power Oil has been looking into this, encouraging the drive to a healthy society”.

    Alhaji Hussani Barde, Tunga-maje district head, said: “This is an unprecedented health initiative being brought into our community, and we are so happy to be part of it, we enjoyed the opportunity of free blood pressure/pulse/ body mass Index check alongside other medical consultation from the medical consultants. It has also become clearer what lifestyles to adopt and habits to shun to ensure a sound heart”.

    Power Oil also has other various heart-supporting initiatives which inspire consumers to take good care of their health, such as the Power Oil Walk-Heart-on & Pay with calories which held its third edition recently at three locations.

  • Kachikwu to present National Oil Policy

    Kachikwu to present National Oil Policy

    The Minister of State, Petroleum Resources, Dr. Ibe Kachikwu, yesterday said the ministry will next week present the Draft National Oil Policy to the Federal Executive Council (FEC).

    The Senior Technical Adviser to Kachikwu, Gbite Adeniji, who made this known at the ongoing stakeholders’ consultation forum on the draft National Gas Policy and National Oil Policy, in Abuja, said  the final document which would be ready in the next couple of days, when issued, would be binding on all, including on government, operators, investors and all stakeholders.

    He also noted that the new policy document addressing fiscal issues in the petroleum industry would soon be drawn up and presented to stakeholders with the aim of the addressing the thorny issues surrounding fiscals.

    He said the last Petroleum Policy was approved in 2006, which is a reflection that the industry is in a completely new world of oil, while time is due to take a fresh look at the industry, ensuring that it reflects current trends.

    Adeniji lamented that Nigeria was not prepared for the headwinds brought about by the volatility in the global petroleum industry due to the absence of a clear cut policy and lack of coordination between government and investors.

  • Kogi seeks oil-producing status

    The Kogi State House of Assembly has renewed the call for designating the confluence state as an oil-producing one. The lawmakers urged the President Muhammadu Buhari administration to give the state its rightful place among its oil-producing counterparts.

    They said the call became imperative following the exploration of oil in Echeno and Udeke, in Ibaji Local Government Area of the state.

    The renewed clamour followed the adoption of a motion by Hon. John Abah (Ibaji constituency) appealing to the state government to expedite action in ensuring the declaration of Kogi State as an oil producing state by the Federal Government.

    Similarly, the Concern Youth Group in the state threw its support for the resolution calling on the Federal Government to declare Kogi as an oil producing state.

    The group in a statement issues in the capital Lokoja said that the call had their full support.

    The group in the statement signed by its coordinator, Oladele Nihi said according the state oil producing status will end the hostility between it and Anambra.

  • We need oil to get out of oil -Osinbajo

    We need oil to get out of oil -Osinbajo

    Remarks by His Excellency, Vice President, Prof. Yemi Osinbajo, SAN, GCON at the presentation of three books by Honourable Minister of State for Petroleum Resources, Dr. Ibe Kachikwu in Abuja, on November  14, 2016

    I am especially pleased to be here this morning to celebrate the major intellectual and policy achievements of Dr Ibe Emmanuel Kachikwu, in his three texts on oil & gas law and policy in Nigeria.

    One, is the Compendium of Oil and Gas Cases in Nigeria, two, Legal issues in the Nigerian Petroleum Industry and the Petroleum Industry Bill: Getting to the Yes.

    These books are important, first, because oil and gas law and policy in Nigeria is notoriously underserved with quality materials. There just aren’t enough scholarly materials on the subject.

    But perhaps of greater importance is the pedigree of the author, a first class scholar, an industry expert of 30 years standing and now possibly the foremost policy person in the sector today, in his capacity as Chair of NNPC, former GMD of NNPC and the Honourable Minister of Petroleum and perhaps one should add his current position at OPEC.

    With this type of antecedents, it should be expected that the quality of thoughts and insights and the solutions that should be on offer should be unique indeed.

    I am pleased to say that from my assessment of one of the books: Legal Issues in the Petroleum Industry– which I had the pleasure to peruse, he did not disappoint.He took on the difficult issues of the defining items in the Nigerian oil and gas industry.

    The law is the law, policy is what it is, but how do they work on a regular day? What are the unspoken or subtle rules? In order words, what are the practical implications of policy and legislation? How did the subsidy regime for example redefine our downstream sector and perhaps the whole industry?

    You will not find the insights that Dr Kachikwu offers in the chapters on marketing and transportation of petroleum products, divestments, negative trends in the Nigerian petroleum industry and ministerial discretion in any text book or policy manual on the subject.

    Dr Kachikwu clearly took full advantage of the rare convergence of scholarship, contemporary experience and policy wisdom to deliver what are probably today the most significant contributions to our understanding of the major issues and nuances of the Nigerian Petroleum industry. It is this uniquely versatile background that makes this publication on the subject a must read for serious participants in one form or other in the industry.

    But I will not be surprised if one of the books – The Petroleum Industry Bill: Getting to the Yes – attracts considerable attention.

    The industry has awaited this all important bill for so long and many would hope at least that they can get a sense of how the minister’s mind is working.

    (I am afraid I cannot help much on that score as I was unable to read the book before now.)

    However, I think it might be important to say that the federal government has had to deal frontally with the critical issues bedeviling the sector: the deregulation of the downstream sector and its continuing challenges, vandalism of pipelines and export facilities and the critical drop in production, gas to power issues, the urgent imperatives of local refining, cash call problems and the plans to exit that regime and empowering indigenous operators.

    As we move to diversify our economy we are acutely aware that we need oil to get out of oil. Yet our window of opportunity to benefit maximally from the petroleum industry is narrowing.

    The development in shale oil which the author spends considerable time on, the increasing breakthroughs in renewable energy use, the incredible speed of the expansion of the use of electric vehicles, -Japan now has more electric charging stations than gas stations- all point inexorably to the fact that the party might be over sooner than we expected.

    But let me just go to another issue. Very few people here know that the author, Dr Ibe Kachikwu is also a great writer of fiction. I wonder how many people know that Dr Kachikwu was the publisher of the famous Hints magazine. Hints magazine, by the way, was a romantic magazine and several of the romantic stories there, were personally authored by Dr Kachikwu himself. I am sure for those who read fiction, you might have read the Cocaine Connection which he wrote, Beneath the Boardroom and the wonderful book, Peace at Last, which really is a book about himself and his childhood.  And I think it is the book that we all ought to read because, again it deals with some of the types of problems of young people that are growing up, especially when we have issues with our parents.

    Dr Kachikwu has always proved to be a multi-tasking individual and when you look at some of the works of fiction that he has written and just the way that he has written them, -and they are such good books to read, -I am sure that many of us would agree that if he had not made a success of his first love, which is oil and gas, he probably would have been quite successful as a writer of fiction.

    Let me say that having read his latest works, especially the one that I have read, I think that we must really commend him for the very excellent work that he has done.

    Once more, let me congratulate the author. I am sure he knew that when he finally decided to write on the industry, we would not tolerate one book from him. Three books at once is certainly in keeping with his immense talents. Congratulations indeed.

  • ‘How fake products affect oil’

    Adulterated petroleum products, including lubricants, are affecting the market share and profit margins of operators, A-Z Petroleum Limited Executive Director Mr Dikanna Okafor has said.

    Speaking on the sideline of the just-concluded Oil and Gas Logistics Expo in Lagos, Okafor said the firm had seen people selling fake lubricants and other fake products but it could not do anything.

    He urged stakeholders, including the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation, the Department of Petroleum Resources (DPR), to proffer solutions to the problem.

    Okafor said: “The firm will help in creating awareness for the growth of the sector. We know that fake lubricants are being brought into the market daily. We would try to educate consumers on what and how they can get value for their money by patronising quality products. We hope the issues surrounding fake products would be addressed soon.

    “We constantly seek opportunities to reiterate our commitment in the industry, and this is one event we are excited we are part of. Every developed country is driven by industrialisation and one thing common in industrialisation is machineries need lubricants to function effectively.

  • Oil has brought us woes, say communities

    People from some oil-bearing communities in Rivers and Bayelsa states who ought to enjoy the benefits that accrue from oil and gas exploration in their areas are now ruing letting International Oil Companies (IOCs) into their lands.

    The lamentations of the communities were brought to the fore when the Gas Alert for Sustainable Initiative (GASIN) held a conference in Port Harcourt with the people, IOCs and government regulatory agencies.

    With the themed “Towards a Sustainable Relationship Between Oil Operators and Host Communities: The Roles of Government, Oil Operators and Host Communities,” the conference drew participants from six communities from Rivers and Bayelsa states, government regulatory agencies such as National Oil Spill Detection and Response Agency (NOSDRA), National Environmental Standard Regulation Agency (NESRA), Rivers State Ministry of Environment. Incidentally, members of staff of Shell Petroleum Development Company (SPDC) and Nigeria Agip Oil Company (NAOC) were absent, thus aggravating the lamentations of the people.

    The communities that attended the conference were Akala-Olu; Enito II; Oshie from Ahoada West Local Government Area of Rivers State while those from Bayelsa State came from Koroama; Obunagha and Polaku from Yenagoa Local Government Area.

    In his speech, King Funpere Akah of Gbarain Clan in Koroama said it is regrettable that “we are talking about our problems and those who are to help in solving the problems are not here. Next time if you know they will not come, please do not invite us.”

    Akah lamented that SPDC has not helped his community as the coming of the company to their land has brought all manner of troubles to them.

    The royal father pointed out that insecurity is a big threat to the community because “the place is now a safe haven for hoodlums, armed robbers and kidnappers who even attempted to kidnap me last year if not for divine intervention.”

    Continuing, Akah said despite that the residents of the Koroama community cannot sleep with their two eyes closed, “one member of staff of SPDC will be moving about with two security vehicles” adding that “if they are securing themselves; they should also secure us.”

    He also accused government of not giving them a sense of belonging.

    He also said the community that produces gas which is being used to light up other parts of Nigeria, is groping in darkness, with electricity distribution company in their area sending them a bill of about N99 million for one year.

    Akah also lamented that his people can no longer harvest palm fruits “because everywhere is criss-crossed by oil-pipelines.”

    How do you get them to address our problems? Next time, if you know they will not come, please do not invite me.

    The Spokesman of Akala-Olu community in Ahoada West Local Government Area of Rivers State, Mr Odums .S. Odums said his people are living in ocean and as such they are exposed to gas flaring while their rain water is polluted.

    Just like Akah, he lamented  that the social problems and hardship his people are contending with for allowing IOCs to come and explore oil in the land, are now making people to age faster and their women always having waist pains.

    Mr Thompson Pere from Obunagha community in Bayelsa State said his people are assailed by three predicaments that bother on gas flaring; oil spillage and their lives.

    Pere said gas flaring has been their lot since oil companies began operation in their land, thus exposing them to danger.

    “Gas flaring is now cracking our roofs, water that we used to drink has no meaning again and our cash crops are now affected.”

    He also said due to the operations of the oil companies, they have been witnessing oil spillage which pollute potable water and destroy aquatic life.

    Continuing, Pere stated that “since Oil Company stepped into our land, our social lives have been affected and anti-social behaviours which we did not experience in the yesteryear are now the order of the day as youths now indulge in cultism, armed robbery and other acts of criminality.”

    Speaking for Kula community in Rivers State, King Barnabas Kurule said: “Oil and gas companies have caused a lot of damage to us. Due to their operations, we do not know when there are rainy and dry seasons.”

    Apart from the devastating effects of frequent oil spill in the land, Kurule added that “vibration of our land does not allow us to sleep well at night.”

    Others who spoke on behalf of other communities that attended the conference reeled off litanies of woes that have become their lot since the IOCs commenced operations in their land.

    They, in one accord, appealed to GASIN to assist them in urging the companies to ameliorate their condition.

    In a 19-point communiqué they issued at the end of the conference and which was signed by all the participants present, they, among others, called on government and the IOCs “to provide adequate social amenities for the host communities to ameliorate the hazards caused by their operations.”

    However, speaking to declare the conference open, the Permanent Secretary, Rivers State Ministry of Environment, Mr. Emmanuel Oye lamented the difficult situation that the people are in.

    Oye also said it is unfortunate that “we have been hit from both sides-the communities, government and the companies” pointing out that “some of these processes of change take time to begin to manifest.”

    He also urged the people to embrace peace and accept whatever is being put in place to solve the problems.

    In his welcome address, the Executive Director of GASIN, Rev, Fr. Edward Obi explained that the responsibility of his organisation over the years is to establish a tripartite relationship between government/the regulatory agencies, the communities and the oil and gas companies for harmonious existence.

    Obi also said “forming the tripartite relationship is good because it prevents a situation whereby communities lock up company gates. Oil companies do not exist in a vacuum. They exist here and when they come, they have to do what is right for the people and vice versa.”

    He insisted that the relationship has worked before and it will work again in Niger Delta.

    In his speech, the Port Harcourt Zonal Director of NOSDRA, Mr Cyrus Nkangwung advised that “everybody should be seen as owners of the oil God has put in the land.”

    Nkangwung, who commended GASIN for ensuring that good relationship exists among the communities, the government/government regulatory agencies and IOCs, also urged the communities “to ensure that no oil spill occurs because if it does, it is the communities that suffer most.”

    He further expressed the Federal Government’s desire to clean the Niger Delta region “which it has started with the clean-up of Ogoni land.”

  • Ijaw communities threaten to shut down oil trunk line

    Ijaw communities in Gbaramatu Kingdom, Warri South-West Local Government Area of Delta State, have threatened to shut down the Warri/Escravos trunk line of the Nigerian Pipeline Storage Company (NPSC), following the August 17 oil spill.

    In a letter by Johnbull Demebi, Edward Odudu and Chief Moses Bebenimibo to the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) and Managing Director of Nigeria Pipeline Storage Company (NPSC), formerly Pipeline Products Management Company (PPMC), the communities issued a seven-day ultimatum to NNPC and NSPC to clean up the communities.

    The 34 communities are: Ikpokpo, Tejubor, Okpelema, Opuede, Opuede-Zion, Opuedebubor, Meka-Ama, Oto-Gbene, New Jerusalem Zion, Mala-Gbene, Atanba, Okerenkoko-Gbene, Oporoza federated communities, Gama-Zion, Azama, Inikorogha, Ibanfa and Igoba.

    Others are: Kunukunuama, Pepeama, Kurutie, Jaghala, Okerenkoko, Egwa, Bikumor, Sarabubowei, Benikrukru, Kokodiagbene, Kantu, Bebebopre Zion, Olukperebu, Oburu, Ogbotu-Gbene and Seitorsububor.

    They urged appropriate authorities to provide materials and compensation for the communities.

    The letter recalled that after a joint investigation visit (JIV) by the National Oil Spill Detection and Response Agency, the Ministry of Environment, NNPC/NPSC, NNPC surveillance contractor (OMS) and the communities affected, it was concluded that the spill was caused by equipment failure.

    But after completing the repair works on the failed trunk line for easy transportation of crude to the Warri Refinery, officials of the NNPC/NPSC have toed a different line.

    The letter said: “It was unanimously agreed by all parties concerned at the conclusion of the JIV that the cause of the massive oil spillage, which lasted two months, was equipment failure at 6 o’clock (beneath the pipeline) at a welding joint. It would be recalled that NNPC’s spokesman Garba Deen Mohammed stated this position on September 8.

  • Panic as ‘militants’ blow up pipeline in Edo

    The people of Azaka, Iguiye and neighbouring communities around the Ovia River in Edo state were thrown into confusion on Friday night as loud explosion erupted at a facility of the Nigeria Gas Company (NGC) in the area.

    It was suspected that a valve station located around a power line was damaged by the explosion.

    Although what caused the explosion was not clear at the time of this report on Saturday morning, some locals told our reporter that they suspect that it was bombed by militants.

    “We saw pieces of gas cylinder and other things that might have been used to blow up the station,” one local said.

    Mr. Anthony Odoyibo, a well known farmer in the area, confirmed the report and appealed to Nigerians to give peace a chance.

    “We heard a very loud explosion around 10 or or 11pm. Everybody was very afraid. Some people who went there confirmed that it was the pipeline that was blown up,” Odoyibo added.

    However, no militant group has claimed responsibility for the attack at the time of this report.