28 February 2015, News Wires – Offshore rig provider Transocean Ltd wrote down the value of its contract drilling business by $992 million in the fourth quarter as demand slumped due to a steep fall in oil prices. As a result of the impairment charge, Transocean has no goodwill remaining on its balance sheet, the […] More »
True Dominion Enterprises Ltd
Saturday 28 February 2015
Transocean takes $992m charge on drilling business as oil slumps
28 February 2015, News Wires – Offshore rig provider Transocean Ltd wrote down the value of its contract drilling business by $992 million in the fourth quarter as demand slumped due to a steep fall in oil prices. As a result of the impairment charge, Transocean has no goodwill remaining on its balance sheet, the […] More »
Petrobras denies hiring JPMorgan for subsalt license sales
28 February 2015, News Wires – Petróleo Brasileiro SA denied on Friday that it has hired JPMorgan Chase & Co to handle the sale of oil exploration licenses in deep-sea areas off the coast this year. In a securities filing, the state-controlled oil producer known as Petrobras reiterated the need to reduce capital investments, dispose […] More »
Fuel scarcity hits Abuja
28 February 2015, Abuja – Hundreds of motorists on Friday were left stranded at filling stations in Abuja as they spent hours on long queues waiting to buy fuel. The queues were largely pronounced in the city centre as most of the filling stations in satellite towns refused to sell the product without giving customers […] More »
Friday 27 February 2015
Fuel scarcity: NNPC warns against panic buying
27 February 2015, Abuja – The Nigerian National Petroleum Corporation, NNPC, has described the shortage of Premium Motor Spirit, popularly known as petrol, as “artificially induced,” warning Nigerians against panic buying. The agency on Friday said it had injected an additional 688 million litres of the product into the system, but did not state while […] More »
Brent set for largest monthly gain since 2009
Crude oil futures rebounded on Friday, with Brent heading for its biggest monthly gain since May 2009, as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices. A reduction in rig counts and expectations for better oil demand have helped Brent prices rise by around 15% so […] More »
Petrobras scandal about to hit political class
27 February 2015, News Wires – Brazil’s top prosecutor is expected to file charges in coming days against politicians implicated in the Petrobras corruption scandal, a political bombshell that could involve members of Congress and President Dilma Rousseff’s government. Under Brazilian law, lawmakers and cabinet members can only be tried by the Supreme Court. Prosecutor […] More »
Price stability: Expert commends CBN for adopting ‘Float’ exchange rate mechanism
27 February 2015, Lagos - A financial expert, Mr Sewa Wusu, on Wednesday commended the Central Bank of Nigeria, CBN, for adopting the “float” exchange rate mechanism to ensure price stability.Wusu in Lagos said that the measure would have positive effect on the economy in the medium and long term. He said the float exchange […] More »
OPEC daily basket price close at $56.07/b
27 February 2015, Sweetcrude, Vienna, Austria – The price of OPEC basket of twelve crudes stood at 56.07 dollars a barrel on Thursday, compared with $53.81 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), […] More »
Brent set for largest monthly gain since 2009
27 February 2015 - Crude oil futures rebounded on Friday, with Brent heading for its biggest monthly gain since May 2009, as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices.A reduction in rig counts and expectations for better oil demand have helped Brent prices rise by […] More »
Navy arrests five Beninoise, four others for oil theft
27 February 2015, Lagos – In line with the zero tolerance of the Chief of Naval Staff, Vice Admiral Usman Jibrin, to crude oil theft and pipeline vandalism, the Western Naval Command (WNC) has arrested five citizens of Benin Republic and four others for maritime illegalities. While three of the suspects were arrested outside the […] More »
Rising oil price will encourage investment – NNPC
27 February 2015, Abuja – The Nigerian National Petroleum Corporation (NNPC) has expressed satisfaction with the recovery of OIL PRICES, even if the corporation’s comment is premature. The corporation hopes that the changes noticed in the oil price recently would further encourage investment in the oil and gas sector. Oil price in the international market […] More »
Firm to invest N60bn in Jos steel milll
27 February 2015, Abuja – The Eta Zuma Group, which acquired the Jos Steel Rolling Mill from the Federal Government in 2005, has said that it will spend $300m (about N60bn) to rehabilitate the steel production plant. The Group Managing Director, Eta Zuma of the company, Dr. Innocent Ezuma, disclosed this when the Minister of […] More »
Power supply dips by 360MW
27 February 2015, Lagos – Supply of electricity to consumers across the country has fallen by 360.88 megawatts in the last one week and the Federal Government has again attributed the development to the vandalism of pipelines that transport gas to power plants. Specifically, the energy sent out to electricity consumers plunged from 3,424.11MW on […] More »
Thursday 26 February 2015
Nigeria: Steel manufacturers lament hike in electricity tariff
Oscarline Onwuemenyi 26 February 2015, Sweetcrude, Abuja - The Steel Manufacturing Group of the Manufacturers Association of Nigeria, MAN, yesterday threatened to shut down operations in the face of persistent hike in electricity tariff without commensurate increase in power supply, even as it lamented that the hike in electricity tariff has crippled many steel companies […] More »
Oil dips in early trade
26 February 2015 - Brent crude fell towards $61 on Thursday, reversing previous gains as a bulging US crude stockpiles offset glimpses of an oil demand recovery. Both Brent and US crude recorded their largest percentage gains in nearly two weeks at Wednesday’s settlement, closing more than 30% higher than the trough of $46.59 a […] More »
OPEC daily basket price close at $53.81/b
26 February 2015, Sweetcrude, Vienna, Austria – The price of OPEC basket of twelve crudes stood at 53.81 dollars a barrel on Wednesday, compared with $53.54 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), […] More »
FG, States’ shared income drops to N500.13bn on low oil revenues
—As NNPC remits N5.1bn owed to Federation Account —Begins talks to pay back $1.4bn of missing oil fund Oscarline Onwuemenyi 26 February 2015, Sweetcrude, Abuja – The Federal government, states and local governments yesterday shared N500.13 billion as revenue from the federation account for the month of January 2015. This is lower than the N580.38billion […] More »
Steel manufacturers lament hike in electricity tariff
Oscarline Onwuemenyi 26 February 2015, Sweetcrude, Abuja – The Steel Manufacturing Group of the Manufacturers Association of Nigeria (MAN) yesterday threatened to shut down operations in the face of persistent hike in electricity tariff without commensurate increase in power supply, even as it lamented that the hike in electricity tariff has crippled many steel companies […] More »
Foreign reserves drop by $2.7bn in two months
26 February 2015, Abuja – The nation’s foreign exchange reserves tumbled by $2.68bn in less than two months to $31.79bn as of February 23, declining at a faster pace than what financial analysts had predicted, data obtained from the Central Bank of Nigeria on Wednesday showed. The current stock of external reserves revealed a drop […] More »
Manufacturers to shut factories over high electricity bills
26 February 2015, Abuja – Some manufacturers in the country have said that the increase in electricity tariffs will force them to shut down their operations in the near future if development is not urgently addressed. Different producer groups of the Manufacturers Association of Nigeria on Wednesday said if the Nigerian Electricity Regulatory Commission failed […] More »
Missing $20bn: House gives govt one week ultimatum to release forensic audit report
*As Senate pegs oil benchmark at $52, exchange rate at N190 per dollar *Slashes SURE-P vote with N100m, capital and recurrent expenditure Oscarline Onwuemenyi 26 February 2015, Sweetcrude, Abuja - The fight over the missing $20 billion oil fund is far from over as the House of Representatives Committee on Public Accounts yesterday issued a […] More »
Wednesday 25 February 2015
Power generation drops as Seplat Petroleum shuts Oben gas plant
25 February 2015, Lagos – Electricity generation in the country has dropped as Seplat Petroleum Development Company Plc shuts down the Oben Gas Plant, a joint venture between the company and the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC). The 10-day long shut-down, which will enable the company […] More »
Obasanjo never inaugurated Olorunsogo ll Power Station, says NDPHC
25 February 2015, Lagos – The Niger Delta Power Holding Company Limited (NDPHC), owners of the National Integrated Power Project (NIPP), has refuted reports that the 750 megawatt-capacity Olorunsogo Phase 2 Power Plant built under the NIPP in Ogun State, which was at the weekend inaugurated by President Goodluck Jonathan, had earlier been inaugurated by […] More »
Govt perfects sale of multi-billion naira Delta Steel to auto firm
25 February 2015, Lagos – The Minister of Mines and Steel Development, Mr. Mohammed Sada, on Tuesday disclosed that barring any last minute hiccups, the federal government would sell Delta Steel Company to an automobile firm. The minister stated this when he appeared before the Senate Committee on Power, Mines and Steel, to defend his […] More »
Forte Oil: Profitability moderated by huge borrowing cost
25 February 2015, Lagos – After recording impressive results in 2013, Forte Oil’s bottom-line was still affected by the huge cost of borrowing in 2014, writes Goddy Egene Investors in Forte Oil Plc enjoyed an unprecedented capital growth in their in 2013 and 2014. The stock recorded the highest capital growth of 1,165 per cent […] More »
Missing $20bn: Okonjo-Iweala gets one week ultimatum to submit forensic audit
25 February 2015, Abuja – Miffed by the uncounted $20 billion, the House of Representatives has Wednesday issued a one week ultimatum to the Minister of Finance and Coordinating Minister of the economy Ngozi Okonjo-Iweala to submit the report of the forensic audit. The mandate followed a resolution, passed last week by the House at […] More »
Greek oil tanker hostages released in Nigeria
25 February 2015,Athens – Two Greeks and a Pakistani taken hostage three weeks ago off the coast of Nigeria in a bloody attack on a Greek oil tanker have been freed, the ship’s owner said Wednesday. Aeolos Management, owner of the Maltese-flagged VLCC Kalamos, said in a statement that pending medical examinations the three men […] More »
Nigeria: AfDB partners Mastercard on financial inclusion to promote SMEs development
25 February 2015, Sweetcrude, Lagos - African Development Bank, AfDB, said it has partnered MasterCard to expand financial inclusion across the African continent. The bank said the collaboration seeks to develop solutions that would drive inclusive growth in Africa by broadening access and usage of digital financial services. It noted that MasterCard would bring its […] More »
Nigeria moves to bridge $2.4tn infrastructure funding gap
25 February 2015, Lagos - The Federal Government will soon begin the implementation of a strategic investment master plan to bridge the country’s huge infrastructural funding gap estimated at about $2.4trillion within the next 30 years. The Executive Secretary/Chief Executive Officer, Nigerian Investment Promotion Commission, Mrs. Saratu Umar, disclosed this during a media roundtable organised […] More »
OPEC daily basket price close at $53.54/b
25 February 2015, February 2015, Vienna, Austria – The price of OPEC basket of twelve crudes stood at 53.54 dollars a barrel on Tuesday, compared with $54.09 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente […] More »
Fuel scarcity hits Kwara, Imo
25 February 2015,Ilorin – Long queue of desperate motorists searching for petrol on Tuesday resurfaced in Ilorin and other parts of Kwara State as well as Owerri and its environs in Imo State. One of our correspondents, who monitored the development in the Ilorin metropolis, observed that attendants at many filling stations in Tanke area, […] More »
Budget: Senate settles for $52 oil benchmark
25 February 2015, Abuja – The Senate on Tuesday at an executive session settled for $52 per barrel as the oil price benchmark for the 2015 budget proposal. This is against the $65 per barrel the executive submitted to the two chambers of the National Assembly in December last year. A senator, who spoke on […] More »
Fuel importation drops by 14%
…Marketers hike petrol ex-depot prices to N83 Kunle Kalejaye 25 February 2015, Sweetcrude, Lagos – Investigation by SweetcrudeReports, conducted over the last four weeks has revealed that importation of fuel into the country by oil marketers has dropped by 14 percent. This, the marketers say, may inflict on the nation a debilitating fuel scarcity between […] More »
CRFFN takes up life insurance scheme for members
25 February 2015, lagos – The Council for the Regulation of Freight Forwarding in Nigeria, CRFFN, has taken up a life insurance scheme of N1 million, for its members in case of death. Disclosing this over the weekend, Registrar of the Council, Mike Jukwe, said that the decision to take up the insurance scheme is […] More »
Govt schedules payment of N264bn subsidy by March end
25 February 2015, Abuja – The Federal Government, Monday, scheduled to pay off about N264 billion between now and end of March, as subsidy reimbursement applications submitted to marketers as at end of January 2015. The sum comprises 2014 outstanding debts of N164 billion in addition to N100 billion derived from foreign exchange and bank […] More »
Fuel scarcity looms as marketers hoard productl
25 February 2015, Lagos – Scarcity of petrol is looming as queues have returned to filling stations across Lagos, while some of them have stopped selling. This is an indication that the cold war between marketers and the management of the Petroleum Products Pricing Regulatory Agency, PPPRA, has not been resolved. Vanguard had earlier reported […] More »
NIPPs contribute 2,500MW to national grid – Govt
*Others to return to full capacity soon Oscarline Onwuemenyi 25 February 2015, Sweetcrude, Abuja - The Nigerian Government has stated that some of the power plants constructed and commissioned under the National Integrated Power Projects (NIPPs) now contribute about 2500 megawatts (MW) of electricity to the national grid. The Minister of Power, Prof. Chinedu Nebo, […] More »
Monday 16 February 2015
Postponement Of 2015 Elections Threatens Passage Of PIB
The recent postponement of the 2015 general elections by the Independent National Electric Commission (INEC) is threatening the passage of the Petroleum Industry Bill (PIB) by the National Assembly.
After weeks of allegation, and counter-allegation, INEC recently emerged from consultative meetings with stakeholders in Abuja with a decision to postpone the general election by six weeks, citing insecurity in the North-east states, especially Adamawa, Borno, and Yobe, where the Islamic terrorist group, Boko Haram, has intensified its six-year old insurgency.
By the new timetable, the Presidential/National Assembly election holds March 28, while the Governorship/House of Assembly election has been slated for April 11.
The elections were initially fixed for February 14 and 28 for the presidential/National Assembly and governorship/House of Assembly polls, respectively.
However, the postponement of the elections, it was learnt, may have dealt a death blow on the passage of the PIB as the lawmakers now have little time to deliberate on the bill before the May 29 handover date.
Two oil industry stakeholders, who spoke to THISDAY on the matter expressed doubt on the possibility of the National Assembly concluding the passage of the bill for President Goodluck Jonathan to sign before the May 29 handover date.
Chief Executive Officer of International Energy Services Limited, Dr. Diran Fawibe said after the last election on April 11, results would be analysed and a lot of razzmatazz would follow, which could occupy the attention of the lawmakers.
He said before the postponement of the elections, he had believed in the assurance given by some of the legislators in January that the bill would be passed immediately after the elections and shortly before the end of the tenure of this administration.
“Now, the question is: will there be a chance for this since the election has been moved forward? The last set of election will take place on April 11. The first few days after April 11 will be devoted to analysing the results. So, the issue is whether the National Assembly will convene and whether they will convene after the elections and have sufficient time to consider the bill and pass it before May 29 when the present administration will finish its tenure. The President has said that May 29 is sacrosanct and that means is that what you are going to see is that the President will have to sign the bill into law not later than May 28.
If the National Assembly does not convene to consider it, the passage of the bill is put in jeopardy. So, that is the fear and anxiety we have now. But let us leave it to the goodwill of the legislators; there is going to be at least one month. If immediately after the elections, and with all the razzmatazz that will come after the elections, the National Assembly still convenes and the PIB is taken as one of the priority bills to be considered, then, let us hope that it will be passed,” he explained.
Chief Executive Officer of Frontier Oil Limited, operators of Uquo Marginal Oilfield, Mr. Dada Thomas had told THISDAY that he was not optimistic that the law makers would pass the reform bill within the lifespan of this present National Assembly.
“They have been saying that they will pass it but I am not optimistic. They will be distracted by the general elections and their primary elections and you have also got the Boko Haram insurgency in the mix. So, they will be distracted by a lot of things,” he said.
Monday 2 February 2015
Six years After, Govt Renews Chevron’s Licence For 20 Years
Exactly six years after the operating licence for Chevron’s Oil Mining Leases (OMLs) 83, 85, 88, 89, 90, 91 and 95 expired in December 2008, after 40 years of issuance, the federal government has renewed the licence for these seven leases for another 20 years, THISDAY has learnt.
Chevron Nigeria Limited operates these seven acreages and five others – OMLs 49, 51, 52, 53 and 55, under a joint venture with the Nigerian National Petroleum Corporation (NNPC), with Chevron having 40 per cent interest, while the national oil company holds 60 per cent.
Before the renewal, Chevron had commenced the divestment of its 40 per cent stake in five of these 12 acreages.
THISDAY gathered that Chevron applied for the renewal of the license since 2006, two years before the expiration.
It was however, not clear why the federal government delayed the approval for six years after the expiration; neither was it clear why the recent approval by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, was kept out of the public glare, unlike the renewal of the Mobil license for 20 years, which was signed in full public glare in February 2012.
Chevron’s General Manager in charge of Policy, Government and Public Affairs (PGPA), Mr. Deji Haastrup, declined to comment on the matter, despite several e-mails and text messages.
But a top official of the company, who did not want to be quoted, confirmed the renewal to THISDAY but declined to give details on the reserves capacity of the seven acreages, as well as the financial commitment of Chevron to the federal government, with regards to the renewal, citing “charged political atmosphere.”
He stated that the renewal would inspire the confidence of Chevron and other International Oil Companies (IOCs) in Nigeria’s operating environment, which has been characterised by uncertainty due to the non-passage of the Petroleum Industry Bill (PIB).
The relevant officials of the Department of Petroleum Resources (DPR) also declined to comment on the matter when contacted by THISDAY.
Chevron’s earlier attempt to divest its 40 per cent stake in OMLs 52, 53 and 55 to encourage indigenous companies was stalled in protracted litigation as one of the bidders, Brittania-U Nigeria Limited dragged the company to court, seeking among other reliefs, a declaration that its final bid offer of $1,015,000,000.00 should be accepted by Chevron.
Controversy had also trailed the clinching of Chevron’s 40per cent stakes in OMLs 83 and 85, by First Exploration and Production (First E & P), as another Nigerian independent company, Petroleos De Geneve (PDG) was said to have protested against alleged manipulations, appealing to the government not to approve the deal. Petroleos De Geneve was said to have claimed that it submitted higher bids than First E & P in the OMLs 83 and 85 transactions.
By the terms of the bidding process, the bidders were required to provide stand-by Letters of Credit (LC).
But Chevron was said to have notified Petroleos De Geneve that it did not receive written confirmation from a South African bank on the Letters of Credit issued by the bank to PDG.
However, PDG had claimed that contrary to Chevron’s position that it did not receive confirmation from the South African bank, the bank actually confirmed their LC to Chevron.
Though its performance results for 2014 are not yet available, Chevron is Nigeria’s third largest producer after Shell and ExxonMobil, with net daily production averaging 233,000 barrels of crude oil, 182 million cubic feet of natural gas and 5,000 barrels of Liquefied Petroleum Gas (LPG) in 2013.
Alison-Madueke had promised as far back as in May 2012 that Chevron’s license would be renewed in June the same year but the promise was not fulfilled.
Speaking in May 2012 at the “Ministerial Platform” in commemoration of Nigeria’s Democracy Day, Alison-Madueke said the federal government would renew Chevron’s license in June 2012, as a follow-up to the renewal done in favour of ExxonMobil earlier in February.
“In order to ensure our commitment in the vibrant upstream sector, we have had to provide security for investors and we have started the renewal of leases in good faith; firstly with the NNPC/Mobil Producing Nigeria joint venture which was done a couple of months ago in respect of OMLs 67, 78 and 70 in our shallow waters. Other renewals which have to do with Chevron and Shell are expected to be concluded by June at the latest.”
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