• follow us in feedly

Qatar to produce electric vehicles by 2023

By Business Desk,

The Qatari electric vehicles will be manufactured by the factory which will be established at a cost of nine billion dollars, said “Qatar Tribune” newspaper.

The project will be the first-of-its-kind in the Middle East as it is a whole new brand, said Ali al-Misnad, Chairman of the Qatar Quality company, which is responsible for this project.

Al-Misnad also said that the new giant project aims to manufacture more than 500,000 cars by 2024 with plans to export the electric vehicles to countries all over the world.

As part of the project, the plan will include establishing of six factories and each will be specialised in different production line.

Nigeria set to lose 550,000 barrels of oil by ExxonMobil

By News Desk,

ExxonMobil said  a blockade by former employees threatens crude production at oil facilities in Nigeria, adding that “disruptions to these operations have the potential to significantly impact revenues.”

The company made the announcement in a statement after a six-week blockade by former workers at the oil facilities.

Mobil Producing Nigeria, the ExxonMobil subsidiary that released the statement, produces over 550,000 barrels per day of crude oil, condensates and natural gas liquids, according to the company website.

The blockades were described in ExxonMobil’s statement as the “playing of loud music, defacing of company facilities and intimidation of personnel.”

The “continued denial of access to lproduction facilities could impact the company’s ability to safely continue production operations,” ExxonMobil said.

The protest which began on 17 July was over the sacking of 860 Nigerian workers most of whom had worked with the company for over 22 years without regards for the rule of law.

Rasak Obe, the Chairman of ExxonMobil Branch of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said the  union was shocked by the mass sack of security personnel who had faithfully served the company for many years.

He said the management should immediately reinstate the employees of the security department  and pay all entitlements due to them.

The union leader also urged the management to immediately reinstate the 16 employees purportedly sacked in Dec. 2016 in a similar fashion.

He demanded the immediate release and repatriation of over 20 expatriate personnel in the security department who had been engaged and kept in defiance of extant Nigerian laws and security directives.

According to him, this was an unfortunate situation which the Supreme Court of Nigeria had corrected with its April 20, 2018 judgment.

“This underscored the scale of error in company’s assessment of the reality after the Supreme Court judgment.

“There are tens more who by the judgment are active employees of Mobil Producing Nigeria Unlimited.

“To say the least, this wholesale sack unambiguously conveys management’s disdain for the highest court of the country and mocks its ruling on the subject”.

Obe said the company was quick to indiscriminately sack Nigerians and replace them with expatriates, taking jobs Nigerians have successfully performed over the decades.

He said expatriate security personnel, many of whom were ex-service men, were currently engaged in the security department against the directives of National Petroleum Investment Management Services (NAPIMS) and the Nigerian Defence Ministry.

NLNG remits $6.5b as tax to FIRS

By News Desk,

The Nigerian Liquefied Natural Gas (NLNG) has remitted more than $6.5 billion in taxes to Federal Inland Revenue Service (FIRS) since 2009.

Tony Attah, Managing Director of NLNG, said at the investigative hearing into the proposed sale of the company held by the House of Representatives Committee on Gas Resources, in Abuja.

The hearing was on the need to investigate contract for modification of Escravos Gas Project (EGP) 3B production platform, following the joint ventures agreement between the Nigerian National Petroleum Corporation and Chevron Nigeria Limited.

It is also on the investigation into the contract for the upgrade of OML 58 Upgrade 1 and the building of Obote/Ubeta/Rumuji pipeline.

According to him, since the N LNG became a tax-paying company its contributions are helping to build a better Nigeria even though it does more than financial contribution.

“As a result of Nigeria LNG being in existence, we have helped to reduce gas flaring by more than 65 per cent and will continue to work with our upstream suppliers to mop-up more.

“This is because we produce the opportunity as the biggest gas sink for whatever gas is provided in the country. We have the capacity to receive that gas but I think by far the biggest opportunity is in Nigeria’s brand and reputation.

“Before NLNG, Nigeria was actually No. 2 on the undesired league of gas flaring nations in the world.

“But today, we are No. 7 ahead of other countries such as United States, I mean, United States is flaring more than Nigeria,” Attah said.

He added that the company was spending about $120 million on the construction of Bonny-Bono Road which will connect Bonny to Port Harcourt, slated for completion within 40 months.

On the development plans of the company, Attah unveiled the company’s plan to embark on 6 billion US dollars capacity development project for the Train 7, which had potential of creating 12,000 new jobs in the Niger Delta region.

“The big deal for us in Nigeria LNG is growing capacity. Currently we have six Trains with 22 million tonnes per annum capacity which is 7 per cent of global market share of LNG.

“We want to grow back to the 10 per cent which was what it was before. So we want to grow by about 35 per cent capacity before Australia.

“We want to grow by about 355 capacity, that will come via Train 7 project for which we have commenced the engineering design and we are looking forward to take a final investment decision not too long.’’

He also said NLNG had remitted more than 100 billion US dollars’ as revenue to the coffers of Federal Government and other equity holders in the company.

According to Attah, Federal Government through Nigerian National Petroleum Corporation (NNPC) which owned 49 per cent equity got more than $15 billion dividends.

He said that this positioned the company as the singular highest tax paying company in Nigeria and indeed Africa.

Attah added that other shareholders such as Shell Gass BV owned 25.6 per cent US dollars, Total owned 15 per cent while ENI International owned 10.4 per cent.

On the company’s efforts towards reducing gas flaring in the country, Attah said that a lot of its contributions to the country is monetary, adding that more than $100 billion revenue and about $15 billion dividends had gone to the Federal Government directly.

Contributing, Rep, Randoff Brown (PDP-Rivers) noted that NLNG was the most significant arrow-head of the Federal Government’s quest to eliminate gas flaring and derives value from the country’s 187 trillion cubic feet of proven gas reserves.

“NLNG has covered about 119 Bcm (million standard cubic metres) or 4.2tcf (trillion cubic feet) of associated gas to export as LNG and natural gas liquids thus helping to reduce gas flaring by upstream companies from over 60 per cent to less than 25 per cent.

“NLNG mops up gas that would otherwise be flared, thus making significant contributions to the nation’s income, delivering in the last 13 years over 13 billion dollars on gas purchases from oil producing companies, of which the Federal Government of Nigeria owns 55 per cent – 60 per cent CIT and other taxes,” he said.

Also speaking, Rep. Diri Douye (PDP-Bayelsa), who sponsored the motion on the need to investigate the contract for the modification of the EGP 3B Production platform following the joint venture agreement between Federal Government, NNPC and Chevron Nigeria Limited, frowned at the delay in the completion of the project.

According to him, modification work on all the seven platforms was meant to have been completed by April 31, 2013 at the rate of 64,179,198 US dollars but it was eventually concluded in 2016 at a reviewed cost of 192.7 million dollars.

“The implication being that, whereas, it was awarded the contract on the basis of being the lowest bid it eventually became the highest bid.

“It is also alleged that Prime Source Limited (PSL) was poorly resourced in manpower, logistics, equipment and funding to undertake a job of such description.

“It is also instructive to note that PSL bid for the contract alongside a consortium, i.e Prime Source-Hensteel SOMECO, however, the contract was solely awarded in the name of PSL,’’he said.

While ruling,chairman, House Committee on Gas Resources, Rep. Frederick Agbedi, tasked the company on the need to replicate its model for the country to take its rightful position in the global market and the implementation of developmental projects.

“We join the elders of the Niger Delta, and we are not in support of any contemplation to sell off NLNG.

“The shares held by NNPC on behalf of the country, the people of Nigeria have vested interests in the company, so they are not shares that any government can take in whatever guise.

“You don’t play politics with such investment even if that is the only revenue we can rely on as a nation.

“On that note, the committee will step down the motion for the committee’s consideration. On the other two motions, we are frustrated by the position of the NNPC,” Agbedi said.

Agbedi then expressed concern over the absence of Mr Maikanti Baru, the NNPC Group Managing Director at the hearing.

The committee, however, resolved to adjourn sine die, till the NNPC helmsman appears in person to respond to queries on the 114.580 million US dollars variation on the modification of the EGP 3B Production platform.

NNPC concludes bunkering set-up plans, other service delivery

By NewsDesk,

As part of plan to ensure a transparent government is felt across the nation, the Nigerian National Petroleum Corporation (NNPC), has concluded plans to set up a subsidiary that would provide refueling services to ships and other ocean-going vessels.

Through a statement on Wednesday by the corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu,  the Group General Manager, NNPC Shipping, Aisha Katagum, said that subsidiary idea would act on order of Group Managing Director (GMD), NNPC, Maikanti Baru, who had also shown keen interest in the plan.

According to her, the GMD directed the Corporate Planning and Strategy (CP&S) Division to come up with a business model for servicing of ships and other ocean- going vessels.

Katagum explained that the bunkering subsidiary was most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shippping, adding that the proposed company would likely be domiciled in the NNPC Shipping Division too.

On the prospect of the company, she enthused: “I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.”

Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping Division. While Nikorma engages in shipping and transportation of energy products, Marine Logistics on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector, with a mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.

The full interview entitled, “Why We Prefer Free on-Board Rule for Shipping Oil – Katagum”, is published in the August edition of NNPC News, a monthly publication of the corporation, currently in circulation.

Total CEO, Pouyanne drives electric car

By Business Desk,

Here is a confession that should make crude oil producers and oil investors worried. The chief executive of French oil and gas giant Total said on Monday that he and his wife drive an electric car.

“It’s a 100 percent e-car. It’s a nice Renault electric car. And I’m driving it every weekend. It’s my private car,” Patrick Pouyanne told an oil conference.

But he added that he uses an official car that relies on fossil fuels.

“Of course I have my company car which is internal combustion. To make long distances I don’t use an electric car.”

When Total took over upstart utility Direct Energie in April, it said the deal was part of its strategy to grow its low-carbon power generating assets to 20 percent of total assets by 2035 from 5 percent today. These include solar, wind and other renewables assets.

Speaking at an oil conference in Norway, Pouyanne said the chief executive of Norway’s sovereign wealth fund, Yngve Slyngstad, had encouraged him to make the most of the “magic of electricity”.

The fund owns 1.79 percent of Total.

Nigeria imports 165.7m litres of gas

By Business Desk,

The National Bureau of Statistics (NBS) has released a report showing that Nigeria imported 165.71 million litres of Liquefied Petroleum Gas (LPG) in the second quarter of 2018.

The NBS disclosed this in its “Petroleum Products Importation and Consumption (Truck Out): LPG (Q2 2018)” report released on Sunday in Abuja.

According to the report, April recorded the highest volumes of LPG imported into the country at 59.89 million litres.

It said 55.37 million litres was imported in May, while the lowest volume was imported in June at 50.45 million litres in the period under review.

The month of March recorded the highest volume of LPG imported into the country in the first quarter at 39.47million litres.

The same volume of 33.83million litres was imported in January and February in the first quarter.

According to the bureau, the statewide distribution of truck-out volume for the second quarter showed that 105.49 million of LPG was distributed nationwide during the period under review. (NAN)

Oil, Gas exhibition holds in South Africa

By Business Desk,

The oil and gas exhibition being put together by Future Energy Africa in South Africa is attracting critical stakeholders across Africa.

The event holding in October in Cape Town, South Africa, will also feature a conference tagged, “ Africa’s Integrated Oil, Gas and Energy Transformation’’.

It is dedicated to advancing future oil, gas and energy solutions for the continent.

It would attract leading governments, national and international oil companies and industry experts to provide in-depth analysis and an honest reflection of Africa’s readiness to revolutionize the future.

With far reaching industry collaboration, under the patronage of the Department of Energy South Africa, the event is slated for October 1 through 3.

One of the media partners and a speaker at the exhibition, Ms Margaret Nongo-Okojokwu, who is the editor of Orient Energy Review, said the exhibition will bring together African leaders and stakeholders in the energy sector.

The intention, she said, is to provide cutting edge solution to the problems confronting the power and energy sector in Africa.

According to her, over 50 exhibitors, 100 critical speakers, including Nigeria’s Minister of State for Petroleum, Ibe Kwachikwu and 50 participating countries from Africa will be at the exhibition with a view to boosting bilateral trades among African countries.

“Africa has become the most sought after bride with many developed countries now looking towards Africa for investments.

“At this exhibition, Future Energy Africa exhibition, provides a platform for leading industry figures to interact at the highest level, privately and securely.” Nongo-Okojokwu said.

She said the conference will also provide exhibitors and conference participants with an indispensable source of information, dedicated platform for on-site interview.

In his own submission, Mayowa Afe, managing director of Danvic Petroleum international, said the exhibition would provide Nigerian energy companies the opportunity of promoting their companies to the outside world as well as the Nigerian local content drive.

He said so many bad stories had been projected to the outside world about Nigeria. The forthcoming exhibition, Afe said would be an ample opportunity to project entrepreneurs from Nigeria, especially those in the oil and gas sector.

NNPC seeks action on economic diversification

By News Desk

The Nigerian National Petroleum Corporation (NNPC), Group Managing Director, Dr Maikanti Baru, on Monday called for proactive actions to reduce the country’s dependence on oil and gas.

Baru, who spoke at the 2018 Nigerian Annual International Conference and Exhibition (NAICE) in Lagos, identified the reliance on oil and gas, as responsible for the economic recession experienced in the country recently.

The conference with the theme: “Diversification of the Nigerian Economy- The oil and gas industry as an Enabler,” was organised by the Society of Petroleum Engineers (SPE), Nigeria Council.

“This obvious lack of proactive action unfortunately exposed the country to economic shock occasioned by the global economic crises that culminated in the recession experience recently,” he said.

Baru said the SPE 2018 theme was in line with the vision of the present administration of energising the national economy through robust sectorial development.

He said with oil reserves of about 37 billion barrels and 199 trillion cubic feet of gas reserves, Nigeria was well positioned to generate resources and accelerate developments.

According to him, once this is achieved, Nigeria should be self sufficient in providing general services, agriculture and manufacturing, among others.

The Speaker, House of Representatives, Yakubu Dogara, said at the conference that the country needed to pursue and develop an enabling environment that would promote transparency in the oil and gas sector.

Dogara said the Legislature had given tacit support to ensure that the industry was run in a more transparent way.

Dogara, who was represented by Sejus Ogun, said the House had demonstrated the support through accelerated passage of the Petroleum Industry Governance Bill (PIGB) now waiting for presidential accent.

He also assured that the remaining three other bills would receive the desired attention, as the Legislators were concerned and willing to provide the investment climate to drive the industry.

The Minister of state for Petroleum Resources, Dr Ibe Kachikwu, said the industry required a robust legislation that would help in the ongoing Federal Government transformation.

Kachikwu, who was represented by Johnson Awoyemi, said the Federal Executive Council (FEC) had demonstrated commitment towards strengthening the industry by giving approval to the oil and gas policies.
He urged the conference to come up with suggestions and strategies that would engender transparency, reduce contracting cycle issues, bring about cost reductions and accelerate development across the value chain.

Earlier, the Chairman, SPE Nigeria Council, Chikezie Nwosu, called for immediate action to leverage the opportunities presented by the industry to develop other sectors.

Nwosu regretted that the country had moved slowly in the quest to take advantage of the sector to fully transform the economy.

He said government should not lose focus of the opportunities in the National Gas Policy, “as gas is critical to support such agenda.’’

He said the geology of Nigeria showed that its gas reserve of about 180 trillion cubic feet could be raise to about 600 trillion cubic feet.

Oil major Total raises 2018 output and savings target as second-quarter profits rise

By News Desk,

French oil and gas major Total raised its 2018 savings and oil production targets after a new record quarterly output, costs savings, and high oil prices lifted its net profit in the second quarter.

The group said adjusted net profit for the second quarter soared 44 percent to $3.6 billion, beating analysts’ estimates of $3.4 billion.

Oil production rose by 8.7 percent to 2.717 million barrels of oil equivalent per day, driven by the early completion the Maersk Oil deal, and the ramp-up of several projects including Yamal LNG in Russia and Moho Nord in Congo.

Total raised its production growth target to 7 percent in 2018 from 6 percent previously, expecting a boost from the start-up of its Kaombo North project in Angola, Egina in Nigeria, Australia’s Ichthys LNG and Tempa Rossa in Italy.

It said cost savings measures were on track to surpass the $4 billion target for the year and reach $4.2 billion over the 2014-2018 period.

“Oil prices continued to increase, averaging $74 per barrel in the second quarter, supported by inventory reductions and geopolitical tensions,” Total’s Chief Executive Patrick Pouyanne said in a statement.

The company said it would continue to implement programs to improve operational efficiency and reduce its breakeven so as to remain profitable, whatever the market context.

Organic pre-dividend breakeven continued to drop to less that $25 per barrel in the quarter, it said.

Total also maintained 2018 investments at the $16-$17 billion range.

Total said it bought back all shares issued during the year for the scrip dividend scheme, and also bought back shares for $600 million to spread the benefits from the higher oil prices with shareholders.

Total’s share buybacks came as its rival Royal Dutch Shell  also launched a long-anticipated $25 billion share buyback program on Thursday.

Total added that it will continue to buy back shares issued as scrip dividend when prices were down, to eliminate dilution.

Total also raised its dividend in the quarter by 3.2 percent to 0.64 euros ($0.7487) per share.

China to invest $3bn in Nigerian oil sector

By Business Desk,

China National Offshore Oil Corp (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.

During a visit to Nigeria’s state-owned NNPC, CNOOC Chief Executive Yuan Guangyu said the Beijing-based oil company had invested more than $14 billion in its Nigerian operations and expressed readiness to invest more.