JV Debt Repayment Restoring Investors’ Confidence in Nigeria

The loan repayment of $5m is part of the measures taken by Nigeria to restore investors’ confidence in the oil industry. However, NNPC confirms that the country is also looking inwards to rising domestic demands for oil as its biggest business opportunity following growing uncertainties in the global oil market. Many infrastructural projects have been embarked on by the NNPC to bring up its production of gas especially to a largely competitive rate for economic growth.

Nigeria Looses N3trn yearly to PIB delay

Effort to enact the PIB has been lingering for over two decades. The law is expected to harmonize the oil industry to a more effective status for investors and indigenous firm to strive with less governmental interference. The Minister for Petroleum urge the legislative to finalize the process to ensure the bill is passed before the end of the 8th Assembly. 

Senate to probe N10bn fraud in the oil sector

This is related to the ongoing oil and gas lease renewal. The legislature alleged that illegal rebates and discount were denying the federal government revenue of N10bn. A 6 weeks period is given to investigate all lease renewal undertaken under the present leadership of the Honorable minister for state for petroleum and also DPR, any anomalies found will be report back to the senate within the stipulated period to save the government from further loss in the ongoing renewal process.

NNPC to access funds from foreign corporate banks

This is the President initiative to access more foreign funds to run the operation of the NNPC. Financing contract have been signed with foreign banks to the tune of $2.5 billion to meet its oil and gas production targets set by the government. One justification for these funding options, according to Kachikwu the Oil Minister, is that crude oil would remain important for a long time to come, “irrespective of the presence of electric cars in some parts of the world.

Expert urge Nigeria to strengthen Local content

 The Society of Petroleum Engineers has advocated the need for partnership between the international oil companies and their indigenous counterparts in the country. This will help the nation’s oil and gas sector.

NDDC strategizes with US for sustainable development

 The consulate to USA assures Nigeria that the US government will continue work with Niger Delta Development Commission to strengthen collaboration on strategies to improve peace and security to facilitate the sustainable development of the Niger Delta region.

ExxonMobil HQ shut by protesting workers

 The protesters accused the company of sacking 860 Nigerian workers most of whom had worked with the company for over 22 years without regards for the rule of law. They demand immediately reinstate the employees of the security department sacked and pay all entitlements due to them following the recent judgment of the Supreme Court of Nigeria ruling for affected personnel

Niger Delta more secured that before

Eni commends the Nigerian government on security measures put in place which have continue to stability exploration activities in the oil region. This development has contributed to the stable flow of Nigeria’s output in recent time.

FG plan to revisit 13% derivation allocation

The president made a promise the elders of the Niger Delta region to revisit the constitutional 13% derivation benefit to ensure an even spread of developmental projects across the oil region.

Shell to close FID on expansion of Bonga field

The expansion of its deepwater Bonga field in Nigeria is believed to add about 1bn barrels of crude to Nigeria’s oil reserves which has been slowed down by a legal dispute between Shell Nigeria and NNPC, regarding the production sharing contract for the Bonga field.

Total Nigeria top energy companies’ chart

According to the Nigeria Stock Exchange report, Total led the active energy companies by 5,000 stock increase while Oando recorded a loss of -0.25 in trade.            .

CBN’s $2.4bn Chinese currency swap takes off

This is spurring of business activities as CBN has debited the account of banks whom have signified interest in the sales of Yuan to customers. This is expected to boost the trade activities between the two countries, hereby reducing borrowing rather as Nigeria would be able to access good and services from the republic of China. The sales shall be through a combination of spot and short tenured forwards.

Naira maintains stability against US$

The local currency remained stable at the parallel market for the ninth consecutive session; trading at N360 to the dollar. The Nigerian currency had exchanged at the same rate since July 18, while the Pound Sterling and Euros are currently traded at N480 and N418 respectively.

Shell Lifts Force Majeure on Bonny Light

This is coming nearly 2 months after shutdown to repair Nembe Creek pipeline. The pipeline has finally been repaired by the operator, Aiteo Eastern E&P Company Limited. This led to the accumulation of lots of unsold crude. The two-month force majeure on exports has benefited the pricing of other key Nigerian grades such as Forcados and Qua Iboe. 

Nigeria has potential to produce 2.7mbpd

The exact output is not what we as a nation produce, the hindrance to measure the volume of crude produced daily is limited to the cost of meters on wellheads. It cost approximately $16m per well. Nigeria has a total of 2,800 wells in the Niger Delta in both onshore and offshore and reworking their developments would amount to huge against for the joint venture owners.

Nigeria’s crude export rises in July

Shell lifting export restrictions on key Bonny Light grade is a factor to this increase. Export in July rose to 1.64mbpd versus revised 1.61mbpd in June. Combined crude and condensate exports rose to 1.762mbpd from revised 1.688mbpd. Stability in the Niger Delta is also a factor. The biggest crude export rises were for Brass, Bonny and Forcados, Bonny Light increased to 127, 000 b/d in July from 87, 000 b/d in June Forcados flows were 204, 000 b/d versus 162, 000. Brass exports rose to 98, 000 b/d versus 32, 000 in June.

Update on Dangote refinery

A team of government officials visited the refinery in recent time and confirmed that the 650,000bpd refining capacity in South West Nigeria will boost the oil production in Nigeria by the end of 2019/2020. The multi-billion refinery will be linked to the pipeline connecting the south east and north region for seamless distribution of petroleum products within the country.

$200m invested in off grid renewable energy

Off grid energy is a future solution for Nigeria, the Nigeria power sector have enjoyed an investment capacity of up to $200 million in the last few years. This investment figures will continue as more focus is place by the global communities.

FG approves reconstruction of Nigeria seaport road

This road is the economic entrance of Nigeria. the reconstruction is expected to reduce and finally eliminate the long waiting time of trucks along the port. Petroleum tankers have been victim of the effects of the bad road. the Federal government assures completion within 24months.

Arabian form wins feed contract for NLNG project

 KBR, a global provider of differentiated professional services and technologies, has been awarded an LNG FEED contract by Nigeria LNG (NLNG) for further expansion of the Bonny Island LNG plant at Bonny Island, Nigeria. KBR with partners from TechnipFMC and JGC will provide the basic design package and EPC bid for the expansion. The project estimation is yet to be made public.

IMF outlook for Nigeria in 2019

Coming out of recession as a result of sustainability of improved business environment for investors as a result of stability in monetary policies and oil production. Our external reserves have remains strong at approximately $47bn, despite the reversal of foreign inflows since April. The country experiences a declining inflation reduced to its lowest level in over two years (11.61% in May). IMF advise Nigeria to improve the Agric sector with numerous foreign grants to further improve the economy in the coming year.

Nigeria gets Investors funds for the oil sector

 President Muhammadu Buhari diplomatic visit to the Netherlands in the 3rd week of July has yielded an investor inflow of $5 billion to the oil sector. The funds will be used to develop ongoing projects in the industry to enhance production activities.

Maintenance assessment scheduled for Lagos Major Bridge

The 3rd mainland bridge has been built for over 30 years and there’s not been a major maintenance on it to protect life and properties. This bridge is a major route connecting businesses on the mainland and island. The scheduled assessment will last for 3 days to determine the exact repair needs of the aging bridge. Businesses have been advised to commute via alternative routes but obviously, it will affect businesses in Lagos.

World Bank signifies support to Nigeria economy

 The World Bank has indicated that it is willing to provide technical support to Nigeria in critical areas to facilitate the country’s economic growth and development. The support will help in the areas of the Economic Recovery and Growth Plan (ERGP) Mid-term Review, Power Sector Reform, Public Private Partnerships (PPPs), as well as population management.

President Buhari approves 2018 budget

The appropriation bill of N9.12trn is coming late in the year and the executive and the legislative will work with synergy to ensure the next fiscal year budget is release early enough to attend to the purpose. The delay was attributed to the need to factor more federal capital projects in the budget and agree with the senate to proceed.

Former Nigeria VP declares campaign camp open

A former Vice President in the person of Atiku Abubakar has officially opened his campaign camp ahead of 2019 presidential election. Nigeria’s are not sure of he will succeed President Buhari. Though he seems little younger and intelligent. He is a business man with wide experience from the private and public sectors. though he has corrupt records but he’s business knowledge could make a difference to our economy.

President Marco Visit to Nigeria

He was received by the Nigerian President, he spoke at an interactive session with young business leaders where he reiterated France commitment of $76mn to support African start up business. He also emphasised the need for the government to empower it youth for the prosperity of the economy. He advised Nigeria youth to participate in politic, this is a seems more like the recent pass bill of not young to rule by the Nigeria legislature.

Political Update

In recent weeks, the political environment witnessed several challenges. Some politicians decamped to other political parties inclusive of the Senate President. This doesn’t seem healthy for the ruling party, if majority of its legislatures further moves out of the party. According to reporters; Nigerians should be observant of this moment ahead of the 2019 polls in selecting government office holders.

Oil sector stakeholders suggest early passage of the PIGB

 Some stakeholders have once again called for the urgent passage of the Petroleum Industry Governance Bill (PIGB) into law by the current administration as we prepare for elections. The bill seeks to empower institutions and not individuals, take away bad governance, which leads to inefficiency, ineffectiveness, rent seeking tendencies, inequity, secrecy and corruption in the country’s petroleum industry.