The Nation Newspaper

Tag: Oil

  • Suspected oil bunkerers ‘kill’ three policemen, tanker driver

    Suspected oil bunkerers at Oguda in Okene Local Government Area of Kogi State yesterday allegedly killed three policemen and a tanker driver, whose identities are yet to be ascertained.

    The Nation learnt that Oguda, near the boundary between Kogi and Edo states, is a haven for bunkerers, who siphon petroleum products from the Nigerian National Petroleum Corporation’s (NNPC’s) pipelines.

    A source said although he could not narrate what happened, the police might have engaged the bunkerers in a shootout.

    The source said sporadic gunshots were heard from the direction where the illegal bunkering took place, adding that residents and passersby saw bodies hours after the shootings subsided.

    Police Commissioner Adeyemi Samuel Ogunjemilusi said it was not clear what happened, “but I suspect it was the handiwork of bunkerers.”

    He solicited information that would enable the police apprehend the suspects.

  • Navy parades oil thieves, rescued foreigners

    Navy parades oil thieves, rescued foreigners

    As part of its continued efforts to combat the menace of crude oil theft in the Niger Delta swamps, the Nigerian Navy has handed two suspected oil thieves recently arrested over to the Nigeria Security and Civil Defense Corps (NSCDC) in Warri for prosecution.

    The Nigerian Navy Ship (NNS) Delta, under the watch of its new Commander, Commodore Aliyu Sule, had recently arrested two suspected oil thieves, namely Braye Ogoba and Ikiere Benjamin, around Odimodi community, in the Forcados area, Burutu council area of Delta state.

    The Flag Officer Commanding (FOC) the Central Naval Command of the Nigerian Navy, Rear Admiral Stanley Ogoigbe, who spoke during the parade of the suspects and their handing over also handed two foreigners of Sao Tome and Principe nationality, who were rescued while adrift and stranded in the Agbami deep offshore oil field area, over to officials of the Nigerian Immigration Service (NIS).

    Speaking during the handover ceremony, the naval chief, who had the Commander of the NNS Delta, Commodore Sule with him also disclosed that the authorities at the Warri naval base had arrested a self-propelled barge; MV Chopin, believed to the loaded with stolen crude oil, around the Forcados River.

    He said the two suspected oil thieves, whom were originally arrested by a community vigilante group, with the aid of the Navy, had given useful information regarding their suspected activities, adding that the highly specialized tools found on them at the time of their arrest further revealed their plots.

    “We have been patrolling the waterways and our efforts yielded fruits when two suspected oil thieves were arrested before they could carry out their plan. They were arrested by vigilante and handed over to us. They were going to open up an oil well in the Forcados area.”

    On the rescue of the two Sao Tome and Principe nationals who were found lost at sea, he said “they were rescued recently during our patrol of the waters. The two rescued expatriates, blacks, can only speak Portuguese and one of their boats was terribly damaged.”

    “From our investigation, we believe they were lost and stranded, but we are handing them over to the Immigrations who have the authority to deal with movement of expatriates for further investigation and action in line with the law,” he said.

  • Why I see $70 oil by year’s end

    Energy entrepreneur Boone Pickens told CNBC he sees $70-a-barrel oil by year’s end, and between $80 and $90 within 12 to 18 months.

    He said on ” Squawk Box ” that U.S. producers are in the process of re-balancing the market-pointing to the decline rig count in response to the continued collapse in crude prices.

    But Pickens he did dial down his longer-range forecast from December, when he had then predicted on “Squawk Box” $90 to $100 barrel in 12 to 18 months.

    Last week , oilfield services company Baker Hughes (NYSE: BHI) said rigs seeking oil fell to 866. The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.

    Pickens said U.S. oil producers in recent years ramped-up too much, and overshot demand, which has led to the current crude price slide of about 50 percent since June.

    Oil prices turned sharply lower again in early trading Thursday-under $43 a barrel on U.S. crude- after Kuwait said OPEC had no choice but to keep production steady, refocusing the market on global oversupply.

  • Oil marketers holding nation to ransom, says Okonjo-Iweala

    The federal government appears fed up with the claims of oil marketers as it has denied owning the group N200 billion.

    Coordinating Minister for the Economy and Minister of finance, Dr. Ngozi Okonjo- Iweala who disputed the debt figure said what the oil marketers are owed is about N131 billion based on Petroleum Pricing Products Regulatory Agency’s (PPRA) template.

    The minister attributed the current fuel scarcity to the activities of a group of cartel determined to hold nation to ransom. She expressed surprise at the attitude of the marketers saying that “they were more liberal in times past even when their outstanding was in the region of N2.3 trillion.”
    According to Okonjo-Iweala, “it has become a situation where we have a cartel that can ground the nation to a halt at will.

    ” I strongly suggest that the nation has to do something about it. It has been very stressful for four years, trying to cope with a group that controls a very important sector of a nation and they are small enough to organize themselves.”

    This she said “means that they can hold a nation to ransom anytime they want. And that is what is happening.”

    ” I remember when I came back as finance minister on August 17th 2011, the first thing that confronted me was this scandal of subsidies. By then more that N 1 trillion had already been paid. And we went through that whole thing and since then we cleaned up, restructured and trimmed down.

    “You see that the amount we have been paying year by year diminished substantially to about N971 billion a year down from the N 2.3 trillion of 2011. We brought it from N 2.3 trillion to about N 971 trillion that has been in the budget each year. So, we made very substantial restructuring and changes to the whole process that brought the amount down for the nation. But yet we have to deal with this problem and the whole country has seen us trying our best struggling,” she said.

    Okonjo-Iweala noted that oil marketers are a small cartel that are into no risk business based on template negotiated with PPPRA a long time ago which factored in exchange rate differential and profit margin guarantee.

    According to the finance minister, “the template that governs their business is designed to cover all their costs plus a profit margin. That is PPPRA template which I have quarrelled with for quite some. So it is really no risk business for them. Or very little risk. I am not saying there is no stress. Of course, they have stress. But the risks are all covered by the template that was negotiated with PPPRA long ago. And it is actually that template that we have been quarreling with”.

    That template she added “says that they must be paid exchange rate differentials, interest rates, profit margin quarrantee plus the principal amount they spent in the business.

    ” Based on that, the government is taking a full risk of their business according to this template. Even when we have revenue shortfall, any interest that accrues has to be paid by government. That is what was negotiated. So, they are in a no risk business and we have been pleading with them that if that is the case at least supply Nigerians with the fuel because at the end of the day the government is still paying for all of this. Why are you making Nigerians suffer? Why these long queues?”, she queried.

    On Thursday last week, Federal Ministry of finance confirmed payment of N156 billion to oil marketers and put the balance left at N98 billion. The minister explained on Sunday that the balance has increased to N131 billion based on last figure obtained from PPPRA.

  • Oil exploration in Ogoniland: Firm signs agreement with communities

    Indigenes of Kegbara Dere (K-Dere) communities of Gokana local Government area of Rivers state have entered into agreement with with Belema Oil and Gas Producing Company to take over oil exploration business in their land.

    The agreement which was brokered in a brief ceremony in Port Harcourt, the state capital yesterday clearly spelt out terms of business between the two parties.

    In their separate speeches shortly after the signing, the Chief Executive Officer, Managing Director (CEO/MD), Belema oil, Tien Jack-Rich and the Paramount Ruler of K-Dere Communities, HRH. Chief Donald K.Gberesuu respectively expressed satisfaction on the outcome of the signing event and assured each party’s readiness to respect the term of the agreement.

    Jack-Rich also used the event to meet and hand over the 300 bags of fertilizer and N10 million cheque to peasant farmers, youths and indigent members of the community, to support their farming projects for the year among other needs.

    Jack-Rich said, “We’ve just signed agreement to assure K-Dere communities that they will have 10 per cent dividend from the profits we will make from oil exploration in their communities annually.

    “This is the first time they are receiving such offer and they are excited about it.

    “K-Dere communities have the largest bulk of oil produced in OgoniLand, spanning over 60 per cent of Ogoni oil. The agreement talks about the relationship between Belema oil and our host communities, it stated their acceptance of the company to come and take-over oil exploration in in OML 11 formerly owned by SHELL.

    “We have agreed to give the Ogonis 10 per cent of whatever we produce from their land, (Profit after tax) while we take eight per cent of it. The People are very eager and happy to sign this agreement with our company to ascertain their partnership relationship with Belema Oil, with the view of securing the future of their generation, because they will not just going to be dividend sharing partners but will also benefit from the technical and non-technical services of the business.

    “Apart from oil and gas companies, wherein we are looking at setting up refinery, gas processing unit and Petro-chemical platform, we are also going to bring in local community type auto-mobile in Ogoni Land.

    “Our plan is to transform Ogoni Land into an industrial hub which would translate into the creation of employments that will open up, develop the area.

    “ This will in turn empower every indigene of the area and wipe out criminality because everybody will have what to do to get going in life.”

    According to him, his plan of transforming OgoniLand is not particular to K-Dere communities but the entire Ogoni, stressing that every part of the area paid the ultimate price for the mineral deposit in the area.

    Clearing the issue of initial resistance in some quarters of the area said it has been addressed.

    He explained that those who mounted the resistance thought that exploration would begin as soon as he(Belema) takes-over, but maintained that there would be no exploration until the impacted areas and other legacy issues that must be addressed first.

    “My focus is not just K-Dere communities, but because they have the highest quantity of oil, they are heavily impacted by the mess that must be cleaned before any further production can begin.

    “The resistance has been taken care of. There was a misunderstanding that production will start the moment the licence was issued, but not all. Taking over does not mean starting production immediately, there are legacy issues, clean-up and UNEP report issues that must be addressed before any other thing can be done in the area.” he explained.

    Also speaking Chief Gberesuu expressed the hope that the agreement signed has ushered his community and their members into good fortune and urged the people to pray for sustained peace in their land to enjoy the good things to come.

  • Oil cuts early gains as glut continues

    Oil cuts early gains as glut continues

    Crude futures edged up but relinquished early gains and briefly turned lower in choppy trading yesterday as a global supply glut continues to cap gains and traders took profits after oil’s earlier push higher.

    Prices rose initially on concerns about turmoil in Yemen, expectations for no quick return to the market of Iranian barrels if a deal is reached on Tehran’s nuclear program and the slowdown in U.S. drilling.

    Weak export data from China raised concerns about the economy of the world’s No. 2 oil consumer but also fueled hopes for economic stimulus along with data that showed China’s crude oil imports were up 14 percent in March versus a year ago, though imports fell from February.

    “Another case of bad news possibly being good news, since more stimulus for China would lead to more demand,” said Phil Flynn, analyst at Price Futures Group in Chicago.

    United States (U.S.) May ULSD HOc1 futures, receiving support last week from agricultural demand in planting season and export demand, got more lift on news that Colonial Pipeline COLPI.UL shut down on Sunday its Line 2 distillate pipeline running from Texas to North Carolina.

    Brent May crude LCOc1 was up 13 cents at $58 a barrel at 12:25 p.m. EDT (1625 GMT), having swung between $57.46 and$59.54.

    U.S. crude CLc1 was up 25 cents at $51.89 a barrel, well off its $53.10 peak just below its 100-day moving average at $53.18. It has not been above that key technical level since July last year.

    The market opened for yesterday’s trading with momentum from Friday’s strong finish on news that the number of U.S. rigs drilling for oil fell by 42 last week to 760, the largest decline in a month.

  • Smile deploys broadband services to oil, gas confab

    Smile Communications a broadband service provider has been commended for providing super-fast Wireless Fidelity (WiFi) internet service to participants at the just concluded Nigeria Oil and Gas Conference in Abuja.

    The speed and reliability of the WiFi internet service provided by the firm excited both guests and organisers of the conference, which earned the broadband company a lot of commendation. The company was commended and praised for providing the conference with very reliable and super-fast internet services.

    The annual Nigeria Oil and Gas Conference and Exhibition, under the auspices of the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC), took place between March 16 and 19.

    Conference organisers expressed delight that the partnership with Smile helped to ensure that most of the exhibitors and visitors to the conference experienced uninterrupted internet services.

    Speaking on the firm’s participation at the annual conference, its Chief Marketing Officer, Alero Ladipo said the firm’s  involvement in this year’s  conference is in line with its quest of striking strategic alliance with relevant sectorial groups within corporate Nigeria.

    She noted that the oil and gas sector is vital to Smile’s corporate objective of helping the overall growth and development of the Nigerian economy.

    The conference provided a platform for the Nigerian oil and gas industry to discuss and debate the most pressing issues facing the industry as well as share successes and network with industry peers.

    The speaker line-up at the conference included senior representatives from government, new and existing managing directors of international oil companies operating in Nigeria, independent oil companies, international and indigenous services companies, financiers and lawyers who were able to address the delegates, voicing the different perspectives of the industry.

    The conference hosted over 6500 visitors and over 250 exhibiting companies, majority of which were indigenous. The exhibitors were able to showcase the latest technologies, products and services to current and potential business partners to secure deals and drive business forward. Exhibitors were unanimous in their praises for the ISP for providing efficient internet service that helped made the conference a resounding success.

    Ladipo thanked the exhibitors and visitors alike for patronising and appreciating Smile and its range of services. She noted that the company’s commendable outing at the conference is in keeping with its transformative objective of using the best and most innovative technologies to provide its customers with high quality, easy to use and affordable communication services. Smile’s vision and mission, she reiterated, remains the quest to be the broadband provider of choice in Nigeria and to enable its customers to fully benefit from the internet world.

  • African oil producers seek production cut

    The African Petroleum Producers Association (AAPA), which represents oil and gas producers from Algeria to South Africa, have called for a cut in oil output globally.

    The group also includes the continent’s biggest producers, Nigeria and Angola. It’s starting an initiative, led by Angola and Algeria, to seek collaboration between members of Organisation of Petroleum Exporting Countries (OPEC) and other oil producers to reduce output and stabilise oil prices, which have halved since the end of June.

    APPA wants “to set up a platform of commitment at the international level from the producing countries,” said Ousmane Doukoure, director of exploration and production at Ivory Coast’s oil ministry, as he read out a statement at the end of an APPA meeting in Abidjan, Ivory Coast’s commercial capital.

    African countries from Angola to Nigeria to Equatorial Guinea have had to cut their budgets in recent months after the plunge in oil prices affected the amount of income they will get from their biggest exports. Countries, including the continent’s biggest economy Nigeria, have slashed growth forecasts.

    “We are very concerned by the drop of the price,” said Gabriel Lima Obiang, oil minister for Equatorial Guinea, after the meeting. “We are revising already our budget because of the price and we have been welcoming an initiative by Angola and Algeria to study a way we can work together to stabilize the price in the future.”

    Of the African producers only Algeria, Libya, Nigeria and Angola are members of OPEC. While some members of OPEC have called for an output cut the biggest producer in the organization, Saudi Arabia, is opposing any reduction in output.

    “The current prices are unfair and are having an impact on the economies of African countries,” Mashallah Zwai, oil minister for the Tripoli-based Islamist government in Libya, said through an interpreter. “We will ensure our voice is heard about this crisis so as to emerge from it as soon as possible.”

    Zwai said Africa accounts for about 8 percent of global oil production.

    Libya is split with a separate government, based in the Eastern town of Tobruk, recognised by the United Nations (UN).

    “It has been a drastic reduction” in the oil price, Obiang said. “What we need to do is think of new initiatives, for example the diversification of our economies, so as we don’t depend on oil.”

    Nigeria, Africa’s biggest oil producer, relies on the commodity for over 90 per cent of its export income.

    Brent crude oil traded at $54.95 a barrel on Thursday. Its lowest level since June was $46.59 on Jan. 13.

     

  • ‘Only 20% of stolen oil refined in Nigeria’

    ‘Only 20% of stolen oil refined in Nigeria’

    Out of the estimated 100,000 barrels of crude oil stolen daily in Nigeria, only 20 per cent is refined in-country through the multiple illegal refineries while the remaining 80 per cent is exported, showing international collaboration in the illicit trade.

    The Chairman, Presidential Committee on Oil Theft Proliferation and Control and Governor of Delta State, Emmanuel Uduaghan stated this on the sideline of an event in Ondo State.

    Uduaghan stated that 80 per cent of stolen crude oil is exported confirming allegations of international involvement in the oil theft menace.

    “On a bigger scale, there is international collaboration in the crude oil theft. Some of these oil that are being stolen, 80 per cent is exported and it is only 20 per cent that is being used for illegal local refinery,” Uduaghan  said.

    He said the government is applying multifaceted approach to tackle the challenge.

    He said: “The illegal refineries are being destroyed; the stolen crude oil that is being exported, the Federal Government is working with various countries as part of the international collaboration.  Because they (stolen crude oil) have destinations and are utilised by big refineries outside the country, the Federal Government is working with various countries to identify these refineries that use them and to ensure the stolen crude oil doesn’t get there.

    “There are other local strategies including the kind of pipelines that are being used, surveillance, among others but these are short to medium term strategies.

    “The oil companies have to change their pipelines in the long run, change them to pipelines that are very sensitive so that when vandals want to break it, the act can be noticed in the control room. Those are the technical details that are being worked upon,” he added.

    On tackling pipeline vandalism, which has increased the downtime of the refineries and rendered the machines idle, Uduaghan said: “I don’t know much about the refineries but there must be lot of other reasons  they are not running. But on the issue of crude oil theft, there are various strategies. There are immediate and long term strategies that have been put in place especially by the security agencies directly working with Mr. President. The immediate strategy is for the security agencies to be reinforced and that is what we are doing. They are being reinforced in their activities and they are patrolling more and dealing with the crude oil theft more.

    He also stated that there has never been a time stolen crude oil reached 400,000 barrels per day contrary to reports.

    He said: “Let me explain the issue of figures. When you hear 400,000 barrels it doesn’t mean that it is 400,000 barrels that is stolen. “What it means is that in the process of stealing the crude, it affects some of the wells, so the operators shut down the wells and when they shut down, and are not producing the 300,000 or 400,000 barrels, it is reported that such figures were stolen. “There is no time the stealing has been more than 100,000 barrels per day and that was at the peak.

    “In fact, right now, it is less than 50,000 barrels per day that is being stolen, so it is not 400,000 barrels. But even at 50,000 barrels it is still unacceptably high because not many companies produce up to 50,000 barrels per day. It is important I clear the figures,” he said.

  • Oil price slump: Experts task FG on non-oil sector

    Oil price slump: Experts task FG on non-oil sector

    As the managers of the country’s commonwealth continue to lament the parlous state of the economy owing to the drop in oil price at the global market, experts have impressed on the federal government the need to develop other streams of revenue outside oil.

    Giving these suggestions recently was a cross-section of experts at a public forum organised by the Institute of Credit Administration (ICA).

    The occasion was at the inauguration of the ICA 3rd Governing Council chaired by Mr. Adetunji Oyebanji, Chairman/Managing Director of Mobil Oil Nigeria Plc.

    In his acceptance speech tagged: ‘Managing Credit in Today’s Business Environment Gain Competitive advantage and protect cash’, Oyebanji said: “The power of credit economy to create wealth and jobs, the infrastructure necessary for sound credit system, business characters that encourage credit availability, government initiatives that facilitate access to credit, lenders attitude to borrowers, reasons for people and organisations defaulting in credit obligations, identifying and advocating removal of barriers against access to company information needed for credit business decision, legal issues in credit, consequences of credit abuse, uneconomic treatments of SMEs by big companies, are issues that we plan to focus on throughout the tenure of the ICA 3rd Governing Council.”

    While commenting on the prevailing economic crunch assailing the country, the ICA boss said it is high time: “Nigeria must engage free market economy in order to achieve remarkable overall resilience in economic activity, employment and fiscal performance.

    “Oil must be deemphasised, agriculture must become a major backbone of the nation’s economic growth,” he stressed.

    Echoing similar views, Executive Director, Accounts/Finance, Pipeline and Products Marketing Company, Mr. Adabonyan Opeyemi said, the ICA 3rd Governing Council will build a synergy of cooperation with other allied organisations both in the organised private and public sector to boost the nation’s credit system.

    The president noted that ICA has since 1992, being the only accredited national professional body for credit management in Nigeria and has helped a number of firms to reduce credit risks in their business dealing, thereby growing the economy.

    Other members of the third governing council with whom Oyebanji hopes to drive the institute to a greater height are: a former Managing Director/Chief Executive Officer, Skye Bank and currently, Chairman, Heritage Bank, Mr. Akinsola Akinfemiwa; the Registrar/Chief Executive Officer, ICA, Prof Chris Onalo; a Former Executive Director/Chief Risk Officer, Zenith Bank Plc, Mr. Andy Ojei; Deputy Group Managing Director and Group Executive Director, Nigerian National Petroleum Corporation, Mr. Bernard O.N. Otti and Executive Director, Accounts/Finance, Pipeline and Products Marketing Company, Mr. Adabonyan Opeyemi. Others are the Managing Director & Chief Executive Officer, Standard Alliance Insurance Plc, Mr. Thomas Omokhai; Managing Director & Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya and Managing Director/Chief Executive Officer, Federal Mortgage Bank of Nigeria, Gimba Ya’u Kumo.