DPR accuses NNPC of violating Nigeria laws
NNPC remitting lump sums into the federation account and not separate royalty from licenses of oil well and block and PPT from other revenues makes it difficult for the government to determine whether it was making profit or not with its investments. DPR believes the removal technical costs by NNPC and remitting the balance amount to the federation account is contrary to the enabling laws.
NNPC calls for basic fiscal terms on PIB
NNPC has urged the National Assembly to consider simplifying the fiscal provisions in the Petroleum Industry Fiscal Bill (PIFB) to ensure easy implementation of the law and for future ease of review in response to economic, technical and other considerations.
NNPC to retain 60% stake new JV partner
NNPC has entered into a JV contract with First Exploration and Petroleum Development Company and Schlumberger to develop oil field in OML 83 and 85. The plan is to increase its reserve to 40bn barrels by 2020 from the current proven reserves of 37.2 billion barrels. Under the agreement Schlumberger would provide the $700 million investment in developing the fields, which would add 193 million barrels of crude and 800bn cubic feet of gas to Nigeria’s proven oil and gas current reserves.
Shell, Vitol and Glencore bid to acquire Petrobas Assets in Nigeria
Brazilian Petrobas plan is to offload $21bn in assets through 2018 from selling off its assets in Africa. The top 3 bidders are Vitol, Glencore with Seplat and Famfa oil with Royal Dutch Shell. Sources have it that Petrobas is yet to comment on the possible outcome of the bid. The Petrobas have two in the Niger Delta OML 127 and OML 130 which produces 240,000bpd and 130,000bpd respectively.
Seplat target increase Gas market
The focus is for the expansion of domestic natural gas business in Nigeria, with key priority to de-risk future cash flows through diversification of oil export routes, invest in and scale up its domestic gas business, maintain a liquidity buffer while continuing to reduce debt. Seplat presently controls 25-30% of Nigeria domestic gas market.
Nigeria award 2018/2019 crude oil contract to bid winners
50 successful oil companies have been shortlisted for the contract from the bid process consisting of both indigenous and international oil firms. A total of 254 participated in the process. The selected companies would join in lifting over 700,000bpd of crude oil by NNPC on Free on Board (FOB) basis.
Nigeria demand 50% Royalties from oil firms
The recent reviewed Production Sharing Contracts (PSC’s) law, will help the federal government achieve revenue boost up to 50% on royalties in the deep offshore and Inland Basin when it finally amendment at the National Assembly. The implication of the law would enable the federal government have more access to funds at the expense of the state governments.
NLNG to make FID on LNG trains
This is important to be finalized this year to avoid losing out to U.S, Russia and other gas producers. Any further interruptions will increase the risk that Nigeria misses the global transition to cleaner fuels and a chance to reduce its stuttering economy’s reliance on crude. To maintain its current position and Nigeria’s clout among global energy giants, the new trains must be built.
Nigeria oil marketers target synergy with a Europe refiner
This has been on for a while, recently an MOU was signed with an undisclosed Europe based crude refiner. This as the association view to resume importation and further improve product supply and prevent future scarcity in the country.
CBN to operate single forex market rate
The Central Bank of Nigeria has been advised to converge the different foreign exchange market rates into one. This is needed to further strengthen the Naira against currencies trading at the forex market to improve investors’ confidence. The new policy is to maintain a uniform rate of N360/US$ which has made the Naira firmer as the policy has crashed the parallel market rate from N365 per Dollar to N360.50/$.
CBN boost FX market with $420m
In line with the central bank’s desire to enhance liquidity and meet customers forex needs, $200m was offered to the wholesale segment while SME’s got $110m and the invisible segment $110m. The consistent intervention has helped sustain the market by making sourcing for foreign notes accessible for business and individuals. However, the multiple increase on CBN intervention is to stabilize trading even during the Eid Fitri holidays.
An indigenous oil firm adds 75,000 bpd to Nigeria’s crude output
Salvic Petroleum Resources Limited increased it production in its Oil Mining Lease, OML 30 which is regarded as the country’s second largest onshore oil and gas asset, from zero-level to 75,000 bpd. OML 30 is in the Niger Delta with an estimate capacity of one billion barrels of oil reserve.
Nigeria to experience output decline
Nigeria’s crude oil output is planned to fell by 114,500 barrels per day. Nigeria’s output was at 1.516mbpd in May which was down from 1.63mbpd in April. July export plan comprised of 48 cargoes, compared with 60 cargoes and a daily rate of 1.796mbpd in June, due in part to an outage on the Bonny Light stream, which has been under force majeure for a month.
Lekoil seeks expansion funds for its oil field project
The aim for seeking extra funding is to aggressively scale up production volumes and productivity to 20,000bpd at it oil field by 2020. the target is to enable it grow towards more profitability, however, the company awaits Nigeria government approval on its additional 22.86% stake in OPL 310 which will take its total interest in the asset to 40%.
Federal Government plans to commence actual clean up in August 2018
The cleanup was earlier announced by the President in August 2015 but 2 years down the line, Nigerians are still at the point of agitation for the clean up to happen. The delay is linked to the non-direct budgetary provision for the exercise.
Nigeria gets $1bn credit from World Bank to improve power sector
The Federal Government has finalized arrangements to commence a special recovery plan in the power sector. Nigeria presently generate between 5,000MW to 7,000MW but unfortunately discos cannot distribute even half due to their hindered capacity. The credit would serve as a counterpart funding to revive the power sector especially the Distribution and Transmission sectors, which have performed below expectations years after privatization.
Banks suffers bad debt despite it promising Nigeria oil income
Nigeria’s economic outlook is gradually brightening beyond projections, as the price of crude oil soars as Brent crude price rose to US$80/b from US$65/b in 2017. This positive for the Nigeria economy although local banks have continuously suffered bad loans as a good percentage of its finances goes to the oil and gas industry. According to IMF bad loans as at mid 2017 had grown to 15.5%. The CBN is advised to scrutinise the borrowing policies of banks in Nigeria to investors especially in the oil sector of the country.
Ahead of 2019 Elections
More candidates have declared interest to run in the forth coming election, one of the recent candidate is an ex-governor in the Niger Delta region (Cross River) he’s youngest candidate so far (56) in the coming elections. He has a business experience and less corrupt charges. From the perspective of young intellectual mind, he might have something positive to bring to the table for the country.
Nigeria acknowledge June 12th, 1993 election annulment
June 12th 1993 election has been a controversy for decades now, the late MKO Abiola, a business tycoon in several sector of the Nigeria economy including oil and gas and a philanthropist to mention. The posthumous award of GCFR was conferred on the late political leader. The Nigeria president confirm this recognition was necessary to acknowledge those who fought for the now democracy with their lives and lost of investment due to the struggle. Some believed this will give Buhari more votes from the south-west region of Nigeria.
APC to hold congress on 23rd of June
This event is expected to guide the proceedings of president Buhari’s strategy for the coming elections. There party will elect a new leader to run the affairs of the party to succeed in the 2019 polls.
President Buhari to signs N9.12trn 2018
The budget has been sent to the president to append he’s signature. An N8.6 trillion Appropriation Bill was earlier passed to the senate in Q3 of 2017. Nigeria are of the concerned that the president should not delay passing the bill, if the president does not have contrary view of the increase on the budget.
Nigeria to get back it $500m from Switzerland government
The monies were paid of the looted funds by the then military head of state and deposited in a Switzerland bank. The federal present executive council is believed that the received funds will go a long way in infrastructural projects in the country.