Government to improve infrastructural facilities in the Niger Delta

There have been argument about the oil companies relocating their headquarters to the Niger Delta which is the production site in the oil and gas industry of Nigeria. Although the communities are pushing for this, but the fact remains that the passage of the host communities bill is what can ensure proper benefits of the 13% derivative revenues to the host communities. Over the years the revenue has not been properly utilize towards the development of the state.

Shell to sells 2 oil fields in Nigeria

The oil and gas assets up for sales include oil mining license 11 and 17 both worth $2billion. OML 11 is one of the biggest blocks in the southeast of Niger Delta and has 33 oil and gas fields while OML 17 falls within JV with NNPC which has a total 15 oil and gas fields. The deal would involve selling essential infrastructure assets as well, including a natural gas-fired power plant that will be managed by Nigerian economist, Tony Elumelu’s company, Transactional Corporation of Nigeria PLC (Transcorp).

PIGB delay mount economic threat on industry

The fact that the president is yet to assent on the bill pose more threat for the Nigeria oil and gas sector in the next few years. The harmonized version of the bill was passed by the National Assembly on March 28, 2018 and subsequently transmitted to the presidency on 3rd of July. The stakeholders in the sector have continue to urge the Mr president to sign the bill before elections final draws closer. The Minister for state for Petroleum also disclose that the industry might not award new oil block to potential investors if the regulatory frame work to guide the industry operations is not finalized.

NNPC sign agreement with China on biofuels

Two MoU’s were signed. One between NNPC and Obax-Complant Consortium and another with Capegate-Nanning Consortium during the presidential trip to china for the Forum for China-Africa Cooperation (FOCAC) in the last week of August on the development of biofuels. Both companies are locally owned by Nigerians but incorporated in the China. The project is expected to help develop the first biofuel production complex in Nigeria.

NNPC to adopt of cleaner fuel

The aspiration for the exploitation of renewable fuel resources in Nigeria is to implement Nigeria’s contributions to the Paris Agreement, which requires the blending of 10% by volume of fuel-ethanol in gasoline and 20% by volume of biodiesel in automotive gas oil (diesel) for use in the transportation sector.

NNPC to invest in Solar Energy

NNPC recently disclose it plan to venture into solar power generation, the project is factored to service all its retail fuel stations across the country. The strategy is to develop grid and off-grid solar power as a business to enhance its contribution to clean fuel initiative of the government.

Nigeria mine sector is awakened

About $3.32bn private investment has come into the country’s mining sector. This became possible with the initiative of the president government to awaken the solid minerals resources for the national revenue and economic development.

524 Metric Tonnes intercepted along Escravos terminal

The Nigeria navy confirmed that the vessel does not have any physical approval for the petroleum content. The vessel was earlier reported to have been arrested for the same offense in 2014 and it was recently after a court verdict in the Niger Delta. The vessel has been handed over to the Economic and Financial Crime Commission (EFCC) and sample of the product has been taken to provide more deals on the theft.

Niger Delta Oil spill clean-up exercise

The federal government in partnership with IOC’s in the Niger Delta have been working closely to execute the exercise to avail the affected communities in the oil region have access to farming and clean water from the affected locations. The deadline for the commencement of the clean-up of Ogoni impacted communities would be by the end Q4 2018. 183 companies are presently pre-qualified to bid for the exercise.

Oil prices fell by 2%

This is predicted to raise a global concern as we go into election window in Nigeria, most especially with US$ trending over our local currency. Brent crude oil fell by $1.65 to $78.09 per barrel from its highest in four months.

CBN boost FX with $210m

The central bank of Nigeria has been trading strongly in the Forex market in a while. This has been the result for the Naira strength against various international currencies in the FX market. The intervention was offered to the 3 segments of the market namely; SMEs $55million, wholesale segment; $100million while the invisible segment got $55million. Naira remain unshaken at N361/US$.

CBN, I&E Window Attracts $1.8bn Forex

$1.888bn was attracted into the FX market at end of the first week of September. CBN in two interventions pumped in $513.91 million as $1.38 billion flowed into the market through the I&E window.  Pounds sterling slightly appreciated against the Naira as it traded at N397.91 from N396.16 while euro sold at N355.53 as at the end of trading.

Chevron export Compliment Nigeria’s export

Demand for Nigeria crude oil grade grew in the last week of August through various tenders from various refiners from Europe and largely Asia. The Brent/Dubai spread was last at $2.41 a barrel, from $1.80 a week ago.  Qua Iboe was last indicated around $1.40 a barrel, with some offers as high as $1.60 a barrel. Bonny Light was said to be trading at parity with Qua Iboe for the first time in nearly two months.

Nigeria’s Oil production increase in August

According to statistics from OPEC, Nigeria crude production increased to about 1.725mbpd in August from 1.530mbpd in July with an increase of 195,000bpd from production in July. Nigeria output production for the year was capped at 2.2mbpd but certain challenges are responsible for the shortfall which includes pipeline vandalism, force majeure and previous militancy attacks on oil facilities. Nigeria crude is priced at 79.64 per barrel.

Chinese corporation to invest in Modular refinery for Niger Delta

The project will be sited in South-South region of Nigeria (Edo state), preliminary work has been concluded by the Chinese company; China Harbour Engineering Company (CHEC) Limited. The President visit to china is expected to contribute to finalize investment decision on the project. The project is estimated to cost N2.1bn.  A consortium made up of Peiyang Chemical Equipment Company of China (PCC), SINOPEC International Petroleum Service Corporation (SIPS), and African Infrastructure Partners (AIP) have been setup as developers on the project. 

Nigeria power sector seeks funding to improve service

According to Transmission Company of Nigeria (TCN), Nigeria would need to invest about $4 billion over the next three years to be able to match its ongoing expansion of the national grid to take up to 20,000 megawatts (MW) of electricity generated in the country, and also distribute same by 2021. The power distribution companies in Nigeria have been speaking to some German corporations to raise funds.

Nigeria to commence Hydro power project

The Mambilla hydro power project had been approved by the federal executive council since 2017. The proposed capacity for the plant is 3050MW which is expected to commence in Q1 of 2019. The project construction is awarded to a Chinese company called CGCC. 

Nigeria secure foreign funding to refinery project

A MoU was signed by the Nigeria bank of industry with the Export-Import Bank of China. The $500m facility is expected to stimulate economic growth, drive investments and provide jobs for Nigerians. Till date a total of 38 operating licenses have been granted by the Nigerian government to establish modular refineries in the Niger Delta with the goal to end importation of petroleum products and also discourage illegal bunkering. 

Nigeria adopts waste to energy power solution

A state in the south west Nigeria has partnered with an investor (UKPA Energy) to development a waste to energy IPP project. The project is estimated to cost $35bn.The government believes the project will reduce the cost of power generation by industries doing business in Nigeria. Funding for the project would be jointly raised between the investor and the government.  

Nigeria tax authority demand $2billion tax repayment by MTN

This development is coming a week after it was reported that the mobile operator illegally wired $8.1billion to South Africa. The Chief Justice of Nigeria has demanded that MTN pays charges to the Nigerian government. $700million was initially paid to the Nigeria tax authority with a balance of $1.3bn in tax relating to, inter alia, import duties, VAT and withholding taxes on foreign imports/payments. The accumulated tax arrears of $2billion owed by MTN over the last 8 years (2007 – 2015). 

Stanbic bank faces debits from CBN

A total of $1.88bn on the south African financial corporate.  The fine is charged based on involvement in contravention of Nigeria’s exchange controls. This development with corporate in Nigeria is coming as the president is campaigning on a return ticket to office to fight anti-corruption this time within the private corporation averting the tax laws of Nigeria. 

Nigeria economy looking positive 

The Central Bank of Nigeria is confident of economic recovery pattern. According to the Monetary Policy Committee (MPC) of CBN, the Nigeria economy is on it way to full recovery. Data from the bureau of statistics showed that real Gross Domestic Product (GDP) grew by 1.95% in the first quarter of 2018, compared with 2.11% and a contraction of 0.91% in the preceding and corresponding quarters of 2017. The oil sector, contributed 1.26% in first quarter of 2018, compared with 0.76% in the 4th quarter of 2017 was the major source of the growth.  

Nigeria elections could add risk to global oil market

The present administration has been able to curtail the sporadic activities of militancy in the Niger Delta hereby, improving the Oil and gas activities in the region. Output has continued to appreciate between 1.7mbpd and close to 2mbpd as a result of environmental stability. However, Nigeria has the potential to add extra barrels to the market but the ability to deliver could be complicated by the electoral processes in 2019. 

Update on 2019 general election

The opposition has accused the ruling party over the cost of nomination forms for various elective offices. The presidential form goes for N45m while the same form cost N12 in the opposition party (PDP). The opposition believes the ruling party is not being realistic about the recently pass bill of #Nottooyoung to rule with the view that cost of nomination forms in the ruling party will automatically deprives the young Nigerians from participating. Primaries elections is scheduled for September 20. 

Sahara Group CEO resigns from position

The CEO in person of Mr Tonye Cole, who has led the operations of the indigenous corporation resigned to participate in active politics. Media has it that he has been endorsed as the gubernatorial candidate of the ruling party in the coming election. A political advantage is for the state to leverage on his wealth of experience in the oil and gas industry being an indigenous entrepreneur in the oil space for the development of the Niger delta region.

PIGB suffers passage for over a decade

The government have remained salient about the passage of the PIB, the which have suffered delays for over a decade now is in the faith as Nigeria prepares for election. The 8th assembly had earlier promised to pass the bill into law before the end of it tenure which ends in February 2019. Nigeria are hopes to see the bill become a law before the general election in February 2019.