The Nation Newspaper

Tag: Oil

  • IPMAN, Star Petroleum sign five-year oil supply deal

    The recent deregulation of the Oil sector by the Federal Government is beginning to take a positive effect as the Independent Petroleum Marketers Association of Nigeria; IPMAN has expanded its mode of service delivery of petrol across the nation.

    The umbrella body of the Oil and Gas distribution chains in Nigeria

    recently signed a five-year Thruput and Trading agreement with Star

    Synergy Petroleum Services Limited.

    The agreement includes storage and supply of Premium Motor Spirit (PMS), Automotive Gas Oil, ( AGO), Kerosene (DPK) and Aviation across Nigeria.

    The new agreement is expected to boost IPMAN’s over 2,500 gas stations in the country and as a direct move to play a major role in the deregulation of the sector by the Federal Government of

    Nigeria, the Managing Director, Star Synergy Petroleum Services, Babatunde Babalola, said.

    “The arrangement between IPMAN and Star Petroleum is coming at a time the Nigerian government is doing all in its power to make petroleum products available in good quantity to all Nigerians and as such we must play our role positively to enhance the government gesture.

    “Though the recent increase in pump price of petroleum products especially PMS otherwise known as Petrol came at a time the nation economy is going through one of its worst moment since nationhood but with the assurance from the President Muhamadu Buhari led Federal Government Nigerians would soon smile.

    “IPMAN as a responsible body is doing all in its ability to make supply of the products easier for the reach of all Nigerians through it’s over 2,500 outlets and anything that would make such work is worth its while.

    “We are happy to be playing some role in contributing to the storage and supply of the products which is the recent agreement entered into with the leadership of IPMAN, Babalola concluded.

    The IPMAN and Star Synergy Petroleum Services agreement takes immediate effect.

  • Is it oil subsidy removal, or price hike?

    Is it oil subsidy removal, or price hike?

    I started writing this article at the weekend, believing that the federal government had, at long last, decided to do away with the long standing and costly oil subsidy. Whatever its attractions, it is no longer financially sustainable. Worse still, it has led to long queues recently at the petrol stations right across the country. I was going to commend President Muhammadu Buhari for his courageous decision to remove the oil subsidy. But half way through the article, my eyes caught some newspaper headlines that the federal government may not have dropped the oil subsidy after all. Both the Minister of State, Petroleum, Dr. Emmanuel Ibe Kachikwu, and the National Chairman of the All Progressives Congress (APC), the ruling party, Chief John Odigie-Oyegun, were simultaneously reported by the media in the course of the week as declaring that the wasteful and fraud ridden oil subsidy had indeed been removed. Not so, says the Vice President, Professor Yemi Osinbajo, who personally issued a press statement that there was no removal of the oil subsidy, but only an oil price hike to reflect the downward trend in the exchange rate of the naira. This is as a result of the falling dollar reserves and increasing pressure on the naira exchange rate. Demand for it is long, but supply is short. The independent marketers are now obliged to source their foreign exchange needs from the secondary market at a premium.

    Obviously, there is some confusion and contradiction in senior official circles over this grave matter, with the ‘realists’ in the government urging President Buhari to remove the so-called oil subsidy once and for all, and the ‘romantics’ insisting on maintaining some form of oil subsidy, or the other. The government is being pulled in different directions on the issue by its top economic advisers. But I prefer to believe the Vice President on this matter as he heads the economic team of the government, of which neither Kachikwu, nor Oyegun, are members. He is in a better position to know exactly whether or not the federal government has finally taken a decision to bite the painful economic bullet by removing the oil subsidy once and for all. President Buhari has not been categorical about this. But then, if the oil subsidy had indeed been finally removed, there would have been no need for the federal government to fix the new price of N145 per litre for oil sales. In a fully deregulated and free market, prices are determined by market forces. Fixing the price of oil will seem to suggest that there is still some official subsidy on oil imports and sales. But then there does not appear to be any provision for oil subsidy in this year’s budget. Or is the price of N145 per litre merely a guide which the importers may, or may not, comply with? Either way, the public is entitled to know whether the subsidy stays, or not. Full deregulation, which is what a removal of the oil subsidy implies, means that market forces will determine the pump price of petroleum, and that the government will have little or nothing to do with price fixing, except in a regulatory sense.

    If this is the case, that the oil subsidy stays, I think it is a pity that the Buhari government has again lost the opportunity to bring to an end the sordid state of affairs in our oil sector by not fully deregulating it. It should abandon the oil subsidy in response to compelling financial and economic considerations in our country. Ex-President Goodluck Jonathan made the same mistake in 2012 when, in the face of some domestic opposition, he abandoned his plan to end the oil subsidy. Had he done so then, it would by now have saved the nation about N6 trillion, about the size of this year’s federal budget. In fact, this time, the reaction of the public to the news that the oil subsidy was being removed was overwhelmingly favourable, despite the pains involved. Even oil workers, including NUPENG and PENGASAN, agreed that it was time for the oil subsidy to go. This positive response to the media reports that the oil subsidy was being removed cut across all sections of our economy, including the industrial sector and independent marketers. The reason is that the scarcity of oil supplies in the market was beginning to hurt the economy badly. Consumers were already being forced to pay up to N150 per litre, or more, for oil in the parallel market. Better to have the oil at a higher price and keep business going than close it down because of oil scarcity. It is a function of economic survival. No matter how acute the pain is, it is still far better than outright death. Businesses were beginning to close down right across the country because there was no fuel to run them. The NLC and the TUC should reconsider their plans to go on strike on this matter. They should think more carefully about embarking on a strike for which there is little public support. This is not to say that their anger about the awful mismanagement of the economy is not justified. But a general strike now will harm our country even more. It will lead to more job losses, as employers will be forced to shut down their businesses.

    It was never going to be an easy decision for the federal government to abandon the oil subsidy. When he came to power last year, President Buhari was not keen at all to increase the pump price of oil. A senior adviser of the government with whom I brought up the matter told me bluntly that President Buhari was totally against dropping the oil subsidy. He rejected all advice that he should do so. For him, the removal of the long standing oil subsidy was both an emotional and sentimental issue. He believed that doing so would hurt the poor more, in a situation of mass poverty. But as the IMF has pointed out, only seven per cent of the poorest 20 per cent in our country derive any benefit from the existing oil subsidy. In fact, President Buhari first tried the option of giving the NNPC, which accounts for some 50 per cent of total oil imports, a monopoly on oil imports to reduce the vast corruption in the sector. But this did not work out as planned, due partly to the fabled inefficiency of the NNPC, its abject lack of the needed logistics and infrastructure, and the determination of the oil majors and independent marketer not to offer the NNPC their cooperation. This led to a supply gap and the long queues in the filling stations.

    The NNPC had to admit that it could not perform as expected without the support of the big oil marketers. This was what persuaded President Buhari to bring the independent oil marketers back. The alternative option, a price hike, is indeed courageous as it could have political costs. In the short run, it could make the government unpopular. .

    Yes, the full removal of the oil subsidy will definitely hurt the poor, at least in the short term, as it will increase the cost of living, and this will worsen the prevailing mass poverty in our country.  But the government’s options on subsidy for oil imports were limited. This subsidy accounts for over 20 per cent of the entire federal government budget. It was clear that it could no longer be sustained with falling oil revenues. Savings from the removal of the oil subsidy will be substantial and will fill some of the gaps in our huge budget deficits. More financial resources will be released to meet our huge infrastructure deficits and more jobs will be created as the economy adjusts to a deregulated oil sector.

    The oil subsidy was first introduced at a time when there was a surge in oil revenues. This surge has not been consistent leading to volatility in oil revenues and a heavy and unsustainable burden on the finances of the federal government. Subsidies can in the long run only be met by budgetary surpluses, not deficits. This year, the federal government will be looking to borrowing internally and externally some N2 trillion to balance its budget. Half of this borrowing is expected to be from external sources. But it is unlikely that it can successfully tap external sources for this huge borrowing, not for investment, but for budgetary support. If the subsidy is dropped, the government will be able to save nearly N1.5 trillion, or more, this year. This will reduce its huge budgetary deficits and the need to borrow abroad by nearly half. In fact, with more prudent management of its finances, including the introduction of practical measures to reduce the cost of governance, the federal government can easily balance its budget next year. Oil prices are beginning to rise again and this trend will, if sustained, lead to higher oil revenues. But this favourable trend should not be frittered away again on the wasteful oil subsidy.

    In fact, the federal government should avail itself of this opportunity to undertake a comprehensive review of its entire subsidy programme and strategy. As it is now, it is totally confusing, inconsistent and ad hoc. It must be based on clearer, more coherent and more consistent principles and objectives. That is not the case now. The focus and target of any future financial bailouts and subsidies should be more on production and less on consumption. Financial subsidies on consumption cannot be sustained when the national revenue and economic growth rate are both declining. This year, our growth rate will fall from six per cent to less than three per cent. The oil subsidy is a subsidy on consumption, not production. And there is really no evidence to support the view that it promotes economic growth in our country.

    For most of the time, oil was being sold to the public at a price exceeding the subsidised price. In fact, as we have seen in recent years from the scandals in the oil industry, the so-called oil  subsidy was largely a mirage, a big scam from which the oil barons and importers made scandalously high profits. Next to the huge scam in defence expenditures, most of which as we now know, actually ended up in private pockets, the biggest source of public corruption in our country is in the oil sector, where the fall in global oil prices are not reflected in local prices of imported fuel, and where some fictitious oil importers are paid for oil that was not actually imported. A deregulated oil sector will end all that.

    Now is the right time to address the problem squarely. President Buhari should go the whole hog now by ending the wasteful oil subsidy. The advantages in the long run should make the short term costs and pains more bearable.

  • At oil marketers’ mercy

    What started as a rumour a few weeks back became a reality last Wednesday. The pump price of Premium Motor Spirit (PMS) also known as petrol was increased from N86.50 to N145 per litre. In essence, petroleum subsidy, which had been a huge burden on past administrations, has been removed.

    Some angry Nigerians immediately took to the social media to condemn the increase while others didn’t see anything wrong with the new development. There was great fear about what the real implication of the change will bring upon Nigerians in the following months.

    But looking back, many Nigerians in the past months have been suffering on long fuel queues due to scarcity of the product, which the new regime hopes to tackle. Even with the scarcity of the product at the official price of N86.50, the cost of transportation, foodstuff and other products and services had skyrocketed, with many Nigerians groaning under their impact.

    That was why many believed that the new maximum pump price of N145 per litre will not make the common man on the street fare any better in the short run.

    Announcing the increase at the Presidential Villa, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu disclosed that there were social protection provisions in the 2016 budget aimed at cushioning the effect of the fuel price increase.

    He said, “Along with this decision, the federal government has in the 2016 budget made an unprecedented social protection provision to cushion the current challenges.

    “We believe in the long term, that improved supply and competition will drive down prices.

    “The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products,” he stated.

    But some of the questions on the lips of some Nigerians are how will the social protection provision in the 2016 budget get to all Nigerians that will be adversely affected by the pump price increase? Is there any proper measure in place for this?

    Will oil marketers, that have held past administrations to ransom and made them dance to their tune, now allow pump price go below the official maximum price of N145 per litre, knowing their craze for maximum profits?

    While Kachikwu had also told State House correspondents that the leadership of the Senate, House of Representatives, Nigeria Governors’ Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN) were part of the decision to increase pump price, it was surprising that NLC immediately issued a statement stating that it will resist the increase in fuel price.

    The Senate has also been reported to have scheduled debate on the matter by senators when the upper chamber resumes plenary this week.

    Also a few hours after the price increment announcement, NUPENG and PENGASSAN immediately scheduled a meeting of the unions billed for Calabar to deliberate on the matter.

    One cannot but wonder who is really trying to deceive Nigerians here.

    It was as if all the stakeholders were not fully involved in the process but only brought in at the last minutes to give impression that proper consultation was carried out before arriving at the increment.

    It could also have been deliberate and a wise move as those bodies might have resisted the change and made it impossible for the new price to be announced.

    With the new pump price now in place, there is no doubt that Nigerians are now indeed at the mercy of oil marketers.

    Some Nigerians have continued to wonder if it will be the best for Nigerians in the long run pointing out that some of the marketers have severally manipulated the system by hoarding and diverting fuel just to create artificial scarcity for their selfish gains.

    With free interaction of the forces of demand and supply, economic principles believe that prices of products and services, including oil can truly  go lower or higher than the N145 benchmark per litre.

    But the fear is whether the marketers will allow the price to freely go below the benchmark as they could still hang together as a body under the new price regime and go to any length to achieve maximum profit.

    Another question is whether the marketers that have been very difficult to monitor over the years can now be properly checked by the DPR and PPPRA under the new circumstances.

    All these issues need to be properly analyzed otherwise Nigerians will suffer more at the mercy of the oil marketers.

    But the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industries (LCCI) are among the bodies that have hailed Buhari’s administration for the political will to remove the subsidy.

    They believed that the step will make foreign reserves available for the real sector and boost speedy development of the Nigeria economy.

    It is hoped that these projections and calculations will come to reality in order to place Nigeria on the path of growth. That is the dream of many Nigerians.

     

    Hitting the ground running

     

    It is no longer news that the 2016 Appropriation bill has been signed into law by President Muhammadu Buhari. But how will it be implemented in the next seven months and impact positively on the lives of Nigerians, knowing that about five months is already gone in the year.

    With the overview of the 2016 Budget and the Strategic Implementation Plan made public last Thursday by the Minister of Budget and National Planning, Udoma Udo Udoma, many economic analysts believed that it can really become a budget of change if properly implemented.

    Problems of some beautiful past budgets on paper, the analysts pointed out, had always been with budget implementation. They believed that Nigerians will be better for it if the 2016 Budget can achieve at least 70 percent implementation.

    This is a wake-up call for the Ministries, Departments and Agencies not to delay in hitting the ground running as Nigerians anxiously wait for the ‘change’.

     

  • African aviation, oil, gas insurance premium dip 40%

    African aviation, oil, gas insurance premium dip 40%

    The African aviation insurance pool’s premium dropped by 40 per cent from $2,670,621 million in 2014 to N1,021,77 million last year, the 2016 Annual Review of African Insurance Organisation (AIO) released at the ongoing 43rd AIO conference and General Assembly in Marrakech, Morocco has shown.

    The review showed that in the oil and gas sector of the regional market, the oil and energy pool with 50 underwriting members from 14 African countries  in 2010 recorded gross premium income of N21,103,565 million against N16,350,761 million in 2011.

    “The African Aviation Pool, a consortium of countries underwriting aviation insurance also recorded a drop in its gross premium from $3,249,244 million in 2012 to $2,670,622 million in 2013.

    “The pool profit also reduced between 2013 and 2014 from N1,517,317 million  in 2014 to N371,904 in 2013.

    “In the oil and gas sector, the regional market, as the African Oil and Energy pool with 50 underwriting members from 14 African countries  in 2010 recorded gross premium income of N21,103,565 million against N16,350,761 million in 2011,” the report read in part.

    The review further showed that the formation of a local oil and energy pool by Nigeria affected the performance of the sub-regional pool.

    In February last year, the Nigerian insurance underwriters, in their bid to ensure active participation in underwriting of businesses of oil multinationals in the country, formed their own energy pool.

    Immediate past president of AIO, Mrs Lamia Ben Mahmoud, urged members of the pool to cooperate with each other in order to improve on their performance.

  • OTC 2016 attendance, exhibition dip over oil price slump

    OTC 2016 attendance, exhibition dip over oil price slump

    • As NNPC cuts turnout by over 50%

    The global oil price plunge had a negative impact on this year’s Offshore Technology Conference (OTC) attendance and exhibition.

    More than 68,000 from 120 countries attended against last year’s 94,700 attendees from 130 countries, while 2,500 companies participated in the exhibition against 2,682 in 2015.

    The Nation also learnt that due to the dwindling revenue because of fall in oil prices, representations of the Nigerian National Petroleum Corporation (NNPC) and the oil ministry, at the conference, were slashed by over 50 per cent.

    However, there were the usual exchange of ideas and presentation of papers on how to advance scientific and technical knowledge for safe, environmentally friendly operation and sustainable development of offshore oil and gas resources.

    The OTC Chairman, Mr. Joe Fowler, lamented the current industry reality, which is in its second year.  He however, stated that nearly 300 were new exhibitors, and international companies made up 51 per cent of the exhibitors. “As it has since 1969, the world came to OTC to make critical decisions, share ideas and develop business partnerships to meet global energy demands.

    “The commitment from OTC’s volunteers and staff ensured, regardless of the price of oil per barrel, that OTC upheld its unwavering commitment to delivering attendees unparalleled information on new technologies and global developments. Also, revenue from OTC directly benefits the member programmes of its 13 nonprofit sponsoring organizations.”

    OTC 2016 featured 11 panel sessions,24 executive keynote presentations at luncheons and breakfasts, and more than 325 technical paper presentations. Speakers including international and national oil companies; federal and regional government officials; and academic, presented their views on a wide variety of topics, including future industry directions, operational integrity and risk management.

    The industry downturn also affected Nigerian companies that had set up exhibition stands to attract Foreign Direct Investment (FDI) into the country. Besides, unlike last year, the Nigerian pavilion had few exhibitors.

    Kachikwu who was represented by NNPC’s Group Executive Director, Gas and Power, Mr. Saidu Muhammad while opening the Nigerian pavilion said: “There is need for us to look inwards and see how we can optimise cost to reduce the cost of production per barrel so that we can remain afloat.

    “You cannot reduce cost of production if you do not have Nigerian expertise in development of procurement materials.”

    The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Bank Anthony Okoroafor stated that the association in partnership with the NNPC was considering measures to certify the competencies of companies that execute projects in the country’s petroleum industry. He also called for the deployment of about $600 million that has accrued to the Nigerian Content Fund (NCF) for upgrade of the industry’s in-country capacity.

  • Ministry queries LADOL for gazette on oil, gas cargo

    Ministry queries LADOL for gazette on oil, gas cargo

    The Federal Ministry of Transportation has queried the management of LADOL Integrated Logistics FZE to explain how it came about a “purported’’ gazette, which enabled the company to receive ships carrying oil and gas-related cargoes.

    A source close to the ministry said on Sunday that this was contained in the correspondence between LADOL and the ministry.

    The ministry recalled that at a meeting between the Minister, Rotimi Amaechi, and maritime stakeholders in March, LADOL presented a gazette, which the ministry said its authenticity was in doubt.

    The ministry demanded that LADOL furnished it with more information on how it came about the purported gazette No 54 , Volume 95, of Lagos, September 4, 2008, which allowed it to receive a maximum of two-ocean going ships per week.

    The News Agency of Nigeria (NAN) reports that at the March meeting, the minister told terminal operators to submit documents to show there were no terminals dedicated to handle oil and gas cargoes.

    The minister explained that the Presidential approval of April 20, 2015, be strictly complied with by relevant maritime stakeholders.

    According to the ministry, the presidential approval states that “the Floating Production Storage and Offloading (FPSO) project can be located at Agge, Bayelsa State, when the facilities to handle such operations are developed.

    “In addition, the FPSO can be conveniently located at any designated oil and gas terminal. All oil and gas-related cargoes must be handled only at designated terminals as in the letter from the Bureau of Public Enterprises (BPE).

    “Operators are, however, free to choose the port of discharge for their cargoes within the designated terminals at Onne, Warri and Calabar,’’ the ministry said.

  • NDDC appeals for financial support from oil firms

    Acting Managing Director, Niger Delta Development Commission (NDDC) Mrs Ibim Semenitari on Wednesday appealed for more financial support from oil companies operating in the region.

    A statement issued by the commission’s Head of Corporate Affairs, Mr Chijioke Amu-Nnadi, in Port Harcourt, said that Semenitari made the call when Oil Producers Trade Section (OPTS) visited the commission.

    The statement quoted Semenitari as requesting oil companies in the area to improve on their contributions to enable the commission fast-track development of the region.

    “OPTS must provide support by pulling resources together so that NDDC can make impact and deliver on projects that would touch the lives of people in communities.

    “We support OPTS leaders to immediately re-activate meeting of Chief Executive Officers of the group to discuss issues affecting the region by ensuring that the region becomes functional for all stakeholders.

    “In all activities in 2016, we promote stronger partnership to enable us provide quality service delivery to the people.

    “We are concluding construction work on Ogbia-Nembe road that would be extended to Brass.

    “This means that we must begin talk early and also talk to several communities to get their support, while pulling resources together,” the statement quoted Semenitari as saying.

    She said that the Nembe-Brass section of the road project would be a tripartite arrangement that would involve Agip and the Bayelsa Government.

    She said that Agip would provide support for the project since it operated largely on the Nembe-Brass axis.

    According to her, we will also have meetings with the Bayelsa Government to make contributions even if they don’t put money on the table.

    “If we pull our resources together, it will be a win-win situation for all parties which would impact positively on the lives of people in the communities,” she said.

    Mrs Semenitari said that clean-up of oil spills in Ogoni area of Rivers was an issue that stakeholders must show concern and take greater responsibility.

    She maintained that oil companies must show more commitment to finding greener ways of doing business in the region.

    The statement also quoted, Mr Ibitoye Abosede, Chairman of NDDC/OPTS Working Level Committee, as assuring that the group would mobilise resources and create a platform that would prosper the region.

    He promised that OPTS would embark on joint inspection of projects executed by NDDC and the multinationals.

    Abosede, who is also NDDC Director and Head of Community and Rural Development unit, assured that the partnership would strive to reduce youth restiveness, vandalism and conflict in the region.

  • NNPC to drill for oil in Chad Basin this year 

    NNPC to drill for oil in Chad Basin this year 

    Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC) Dr. Ibe Kachikwu has said the NNPC  will drill for oil in the Chad Basin in the last quarter.

    He reiterated the commitment of the Federal Government and the NNPC to explore for oil and gas in the inland basins, especially Chad Basin and the  Benue Trough.

    Kachikwu said the NNPC, through its Frontier Exploration Services and Renewable Energy Division (FESRED) had progressed reasonably with seismic acquisition activities in the Chad Basin frontier area until insurgency necessitated the suspension of operation.

    He said eight phases, out of the planned 12-phase project, to cover 3,550 sq.km had been acquired by the date of suspension of operation on November 24, 2014.

    NNPC’s Group General Manager,  Group Public Affairs Division Malam Garba Deen Muhammad, in a statement, quoted Kachikwu as saying: “A total of 1, 962 sq. km was acquired and processed, interpretation is on at 90 per cent completion, and drilling activities will commence by the last quarter of 2016.”

    He explained that seismic activities were carried out with regard to environmental protection and in accordance with international standards and best practices and handled by Integrated Data Services Limited (NNPC subsidiary) and BGP, a subsidiary of China National Petroleum Corporation.

    According to him, exploration in the Chad basin would increase the nation’s oil and gas reserves and add value to the hydrocarbon potential of the Nigerian inland basin, provide investment, boost the economy as well as create jobs.

    “The decision to diversify our business portfolio is about all of us and about the future of our country, the vision is clear, and we are determined not to fail,’’ Kachikwu said.

    He invited the private sector and venture capitalists across the globe to partner NNPC in planned Special Purpose Vehicles (SPVs) to profitably harness the enormous energy resources in Nigeria.

  • Rivers community looks beyond oil

    The Bille Community Welfare Association (BCWA), Abuja gathered the people of the community for a one-day sensitisation programme in Port Harcourt, the Rivers State.

    The theme was: “Bille Beyond Oil” . They also launched a book titled “Who’s Who in Bille.”

    In a lead paper delivered by a prominent son of the town and a retired Director from Rivers State Civil Service, Dawari Boisa, he traced the history of the people which he said started in the 9th Century and later became one of the five distinct Eastern Niger Delta Ijo Communities.

    In the paper titled: “Bille Beyond Oil: Strategies for Present and Future Sustainable Economic Development of the Kingdom” Boisa argued that the discovery of crude oil from Bille in 1958 has made his people to drift from fishing to crude oil dependent economy.

    Borisa blamed this drift on the “very heavy polluted rivers and creeks due to oil spills from oil and gas exploration and exploitation activities like oil spillages and gas flaring in the area which made fishing to be unviable economic occupation.”

    The situation, he also said, has been aggravated by the illegal crude oil refining activities.

    He marshalled out six points which the people should latch on to enable them improve their lot and these include  show of love and commitment to Bille Kingdom as well as effective participation in politics.

    Addressing the people, the Chairman of the occasion, Elder Boma Benebo said the event was an outcome of the dialogue the chiefs and stakeholders of Bille had in Abuja in 2014.

    Benebo also said that the theme of the event is an indication that “Bille is well located geographically and possesses enough potential for tourism and large scale fishing.”

    A Cchief of Bille, Barrister Iyalla Igani recalled that town used to be a sanctuary for those who wanted to rest from the hustle and bustle of the cities, lamenting that over the years, the town has lost this tourism status.

    In a goodwill message, the Bille Kingdom Development Committee Chairman, Asatubo Kemuel,  said Bille Beyond Oil requires a sustainable and healthy environment which supports economic activities and wealth creation.

    Kemuel  also called on oil companies operating within their territory to adequately carry out human capital and infrastructure development initiatives by way of corporate social responsibility because globally, this is regarded not as a mere moral obligation “but as legal obligation that arises out of the industry regulatory framework.”

    A Director from the Rivers State Ministry of Chieftaincy Affairs, Mrs Ine Olumati who represented the ministry, commended the people for  the event.

    The highlight of the occasion was the unveiling of a 166-page book titled: “Who’s Who in Bille” written by another son of the soil, Mr Harvest Emmanuel-Olu in which he profiled prominent sons and daughters of the land who consequently launched it with some millions of naira.

  • Oil hits 2016 high at $46 per barrel

    Oil hits 2016 high at $46 per barrel

    Oil hit its highest level yesterday, driven by a falling dollar and evidence of declining United States (U.S..). supply, putting the price on course for its strongest monthly performance since last April.

    Brent crude futures were up $1.03 at $46.77 a barrel in early trading, having risen nearly 20 per cent in April, their largest one-month gain in a year.

    The international benchmark earlier hit a 2016 high of $46.81.

    U.S. West Texas Intermediate (WTI) crude futures also rose 86 cents to $44.90 a barrel.

    Brent received extra support from news that Saudi Arabia and Kuwait appear no closer to restarting their jointly operated Khafji oilfield, which produced 280,000 to 300,000 barrels per day

    The oilfield had been shut since October 2014 due to environmental problems.

    The prospect of an agreement among the world’s largest exporters to limit production evaporated almost two weeks ago when a meeting between OPEC members and their non-OPEC counterparts ended in stalemate.

    Since then, Brent has hit its highest since November and, aided by further evidence of declining output anywhere from the U.S. shale basin to the North Sea, attracted fresh investment cash.

    “There was definitely a bit of a turning point when we had the initial sell-off after the producer meeting,” CMC Markets strategist Jasper Lawler said.

    “That got reversed and went on to show that (a production freeze) was a fairly small part of what had been supporting the price and really, it’s the supply outlook for the U.S. coupled with the dollar that is really driving returns.”

    WTI was further bolstered after the American Petroleum Institute reported a draw of nearly 1.1 million barrels in U.S. crude inventories last week.

    Analysts had expected a 2.4-million-barrel build.

    The dollar was down on the day, having fallen about 5 per cent against a basket of currencies since the start of the year, even as U.S. interest rates are expected to rise.

    The U.S. Federal Reserve’s policy-setting committee meets on Wednesday but is not expected to announce any change in rates, leaving traders to scour the post-meeting statement for any clues on the outlook.