Tag: crude

  • Suspension of naira-for-crude will push Nigerians into multidimensional poverty – ActionAid

    Suspension of naira-for-crude will push Nigerians into multidimensional poverty – ActionAid

    ActionAid has raised concerns over the ongoing crisis in the petroleum sector, sparked by Dangote Petroleum Refinery’s suspension of petroleum product sales in naira.

    Mr Andrew Mamedu, Country Director of ActionAid Nigeria (AAN) expresssd this concern in a statement on Tuesday in Abuja.

    Mamedu criticised the suspension, stating that it has caused panic buying, hoarding, and speculative price increases, worsening economic hardship for Nigerians.

    “The suspension of the naira-for-crude agreement will push more Nigerians into multidimensional poverty, deepen social inequalities, and create further economic instability.

    “Rising fuel prices will increase transportation costs, making it harder for low-income earners to commute, access essential services, or sustain small businesses,” he said.

    AAN urged the Federal Government to take swift action to restore public confidence, protect citizens from further economic strain, and ensure transparency in the energy sector.

    Mamedu also called on the government to provide clear information on local refining and crude supply.

    He warned that failure to do so raises serious concerns about transparency, accountability, and governance in the petroleum industry.

    “The Nigerian National Petroleum Company Limited’s (NNPCL) preference for importing Premium Motor Spirit (PMS) instead of prioritising local refining is deeply concerning.

    “We call for independent third-party monitoring of crude oil transactions, fuel pricing, and distribution to ensure transparency and accountability,” he added.

    The organisation also demanded a comprehensive review of pricing models to prevent exploitation by depot owners and marketers.

  • CRUDE OIL THEFT: Militia group in Bayelsa allegedly recruits youths

    CRUDE OIL THEFT: Militia group in Bayelsa allegedly recruits youths

    A militia group said to belong to a militant identified as General Endurance Amagbin, in the Southern Ijaw Local Government Area of Bayelsa State, has allegedly started recruiting youths for the illegal crude theft operations in the communities.

    It was gathered that the Militia group subjected traditional rulers of Igbemotoru, its satellite communities Lasukugbene, Beberegbene and Peremabiri communities, to an unofficial oath of allegiance for his operations or get dethroned or killed.

    According to residents of Igbomotoru, Oyeregbeni and Peremabiri communities, there was palpable fear in the area over the rising cases of attacks and forceful takeover of traditional institutions by some gunmen.

    It was also gathered that the affected communities are hosts to multi-million dollars Trunk 18 inches diameter Crude Oil Tebidaba/Igbomotoru/Brass pipeline belonging to the Nigerian Agip Oil Company Limited.

    Furthermore, many security personnel deployed to the area have allegedly been compromised by the operations of General Endurance Amagbin and his boys while he has started his cooking of crude oil known as “Kpo fire” in the area.

    The Paramount Ruler of Igbomotoru (West Bomo) Community of Southern Ijaw Local Government Council, HRH Asemighen Ayibaikie Ofongo, BUO X, in a petition sent to the Chief of Defence Staff, General Lucky Irabor, to come to the rescue of the Bayelsa communities as the militia groups have continued to molest, beat up, vandalise houses and loot properties of those who go against their illegal activities in the area.

    Ofongo, in the letter with reference number IGBO/Security/10102/Vol.1/32/22, pointed out that he was also a victim of the wrath of these gunmen with their leader, self-styled Amagbin subjecting him to the personal oath of allegiance to their operations and announcing his dethronement on state radio without the approval of the state government.

    According to the petition, “The youths and elders of Igbemotoru community have become refugees in their community. The people of the Community and surrounding communities have not had any positive change since the self-styled General Endurance arrived. And he has also boasted that he has a connection to the top and that petitions sent out are sent back to him promising anyone writing such petition to be ready to accept any consequences of their actions.

    “This has emboldened him to recruit jobless youths into his army in other to vandalize houses, loot properties therein.”

    The worried monarch recounted that on the 11th of December,2021, the militia leader, Amagbin, ordered his squad to bring him at gunpoint, “Ammanawei was escorted under gunpoint by six gunmen into a waiting horsepower speed boat to a bush and into a shrine.

    “I was ordered by the militia leader to take an oath of allegiance to him. When I protested and insisted I have earlier before my ancestors and even God sworn to be impartial in the discharge of my duties, he ordered his gunmen to fire several rounds of bullets above my head as a warning.

    “I realized I could be shot dead in the shrine, so I succumbed to save my life and took the oath. Again, on the 12th of December, 2021, the Igbomotoru 1 community chiefs under the directive of the militia leader convened a meeting of all people of the town.

    “The meeting has no other agenda besides the dethronement of the Amananawei. Some persons who attended the meeting queried the veracity of such a dethronement exercise. While many walked out of the meeting and the meeting ended on that note. Within days, a special announcement was sponsored by the militia leader and his boys of the dethronement on two radio stations in the state capital.

    “The state government reacted spontaneously and denounced the dethronement as an exercise in futility and of no effect whatsoever. The paramount ruler as well went on air and denounced the purported dethronement. As it is now, I and some others who are against the notorious activities of Endurance Amagbin in the Igbomortoru community are not allowed access to our own community. We are calling on the Government to convene a peace meeting and in synergy with the Federal Government to please mop up all illegal arms and ammunition in the possession of non-state actors like the militia group now terrorizing the innocent people of Igbomotoru community.”

  • [TNG INTERVIEW] PIB: Inclusion of frontier states to be funded by FG will rubbish profit from crude oil sales – Rep Chinda

    [TNG INTERVIEW] PIB: Inclusion of frontier states to be funded by FG will rubbish profit from crude oil sales – Rep Chinda

    …says Bill has gained tribal and political colouration

    …but I will support it, it’s better than nothing

    …Nigeria belongs to us all we must be seen to give it our best

    …true federalism is the ultimate

    Rep Kingsley Ogundu Chinda is a lawyer and the leader of the House of Representatives Peoples Democratic Party PDP Caucus. He represents Obio Akpor Federal Constituency of Rivers State. In this chat with TheNewsGuru.com,(TNG) Regional Editor, Emman Ovuakporie, he spoke extensively on true federalism, constitution amendment, the oldest Bill in Nigeria, the Petroleum Industry Bill, PIB, the intrigues, sectionalism, tribal and political colourations. Excerpts:

    After 20years, suddenly the entire north is so interested in the passage of PIB and I remembered vividly in 2011, on the last day of plenary was when a section of lawmakers killed PIB. Then in 2015, the House passed it. In 2019 the Senate passed it. Suddenly the north is saying they are now in love with PIB, which kind of love is this?

    A: For me a lot of things that happened in the parliament here appeared to be laced with either religion, tribe or political colouration. The PIB has also gained that kind of trend.

    Like you rightly pointed out, this is a bill that has been passed before now but not assented to, almost got passed but a section of the country kicked and killed it and today they are clamouring for it.

    People will not want to tell the truth. I will still support the PIB to fly but the north is interested because of the frontier exploration; one of the issues they are agitating for that the federal government should fund the frontier exploration.

    But I also say that we are all in this country, it is one Nigeria and we believe in Nigeria as a state. I will keep praying that for those of us that have been privileged to find ourselves in position of governance and public authority, that we should place the interest of the country first, over and above sectional interests. The frontier exploration, how would it benefit Nigeria as a nation that is what we should be asking ourselves.

    In one breath we are saying we want to open up this sector, commercialize it, invest little and gain more out of it. In another breath we want to fund the area that before now the private sector is funding and we are doing all these because of our own parochial interest.

    Like I said these things are known, we understand what is happening but I still believe that the PIB should pass, let it be a law, let us begin to practice it and then over time, if there is need, the same people I believe would call for an amendment to correct because if you asked that the country should fund frontier exploration, we are going to plunge in almost all our profits back into exploration, it will not make sense.

    But today if we remove it, I can assure you that the PIB will not fly, it will not be passed, unfortunately that is the country we find ourselves in; a country where Nigeria comes last, our religious belief comes first, my tribe comes first and then the country comes last.

    There are things that are fundamentally wrong with us as a nation which we must correct and that brings us to the issue of cutting down on the powers of the federal government, looking at the constitution a second time and allowing the states, allowing the local governments to do more and let the federal government take care of things that are only necessary for them to do so; begin to practice true federalism, both fiscal federalism and political federalism.

    If we allow these things to flourish, this country is not poor like everybody is saying, Nigeria is a rich country but Nigeria is poor in terms of managers, those who are managing our affairs are poor in mentality and because we are poor upstairs, we cannot bring anything better than what we have on the table.

    And so I solicit, I am an apostle of mindset change in this country that is the only way we can get out of the mess we find ourselves. Even where you get angels to run this country as long as tribalism is there, nepotism is there, it will be difficult for us to get out of the mess. So we must begin to change our mindset.

    Tell me one thing on earth that is made for itself; no human being was created for himself and so no tribe was created for itself. You are created for others. So when you begin to look at yourself, what am I going to benefit, what am I going to gain out of this, you will make a very fundamental mistake.

    When you ask what are we, what is he, what will others get out this action then you are doing the right thing, that is why God created you. Everything created is created for others, so is man created for others but we make the mistake of being selfish.

    So I will urge us the time has come for us to be Nigerians, for us to be a little bit more selfless, for us to make laws not for us but for Nigeria and for Nigerians, that is the only way we can move forward.

    So in summary, yes we have seen the arrangement that is going on concerning the PIB by our brothers from the north but when the PIB pass, let it go but I know they are making a very fundamental mistake.

     

    Q: Oil companies are saying that this PIB that is to be passed is an emotional PIB, that there are so many things in the PIB that needed to be expunged for it to be a real PIB as it is not really commercially oriented; Shell, Mobil and the rest. From what you have said it is truly an emotional PIB. How would you react to that?

    A: I agree with them that it is an emotional PIB that we have before us. Whilst the south is asking for more when it comes to oil producing communities, we want 20%, we want 10%, we want minimum of this and all that, the north is asking for federal sponsorship of frontier oil exploration; these are all things that has to do with my tribe, my tribe.

    But as I have also said, let us pass the PIB, there is room for amendment. I believe that laws with time will continue to progress, let us pass the PIB. The emotional PIB that we have is still better than not having one at all.

    We are taking the first steps, we know that there are mistakes, we know that there are fundamental flaws, let us take that first step and make it a law, it is easier to amend a law than to come up with a fresh one. It has taken us decades.

    But if we on our own can realize these errors and go back to the drawing board and better what we have right now, it will be better for the country but if we cannot let us go ahead and pass the PIB.

     

    Q: You talk about restructuring, can you educate the layman the difference between the local government autonomy that has just been allowed and restructuring?

    A: For me that is one thing I also say. I have heard the president passionately talking about local government autonomy, in fact instructing council chairmen to either use their money or go to jail if they release it to their governors, I don’t know whether he said so but I read it on the social media. Wonderful, beautiful, in fact that is the content of our constitution.

    Now when we are talking about restructuring, is the federal government to also do the same when it comes to her relationship with states, not just the states and the local government.

    So if the president is the champion for local government autonomy, the president should also be the champion for state autonomy which is the whole essence of restructuring.

    This is a federation, Nigerian portends to be the federal republic of Nigeria, not unitary republic of Nigeria. So Mr President should act that way.

    The constitution has made it clear when it comes to the powers of the federation, all we are saying is that there are things that we see as unnecessary baggage on the shoulders of the federal government, that federal government should shelve and allow states to run these issues.

    We take things like education, federal government has no business in education. Now go back to history, the west today you see them as people who are advanced in education and the north appears to be slightly backward in education why the allowed education for the regions. If we had the system we have today, the west would not have enjoyed that advantage.

    You knows, if these things are moved out of the shoulders of the federal government, the north might even overtake the west when it comes to education.

    The entire society is moving, life itself is dynamic, we cannot continue with this feeding bottle system, states running to Abuja for allocation and then thereafter you go back; and federal government freighting away monies because of projects that they cannot even monitor.

    So let us begin to run a federation that is the essence, that is the entire thing about restructuring. The things that we think are not necessary for the federal government to overburden itself shelve it for states to handle. The ones that local governments can handle, let local governments handle under the constitution.

    We take things like security, we have been battling with insecurity in Nigeria. The structure of our constitution does not help us. The police man in your village will take instruction from the commissioner of police who will take instructions from the IG who will take instructions from the commander I chief and so before those instructions come down, the situation is beyond control.

    All we are saying, things like security let the states that can afford have their own state police. Local governments that can afford should have their own local government police and all of them will have different functions.

    There are crimes that will go to federal police, there are crimes that state police can handle, there are crimes that local government police can handle. There is no way there cannot be improvement in the security system.

    You come to the health sector; states should be allowed to manage that sector. The federal government cannot be investing in everything and that is why you have duplication of agencies, functions everywhere because it is so much and so it is not thorough.

    So when we talk of restructuring, perhaps people look at monies and all that, we are talking about states managing their resources. Perhaps the south or Niger Delta that produces oil will now have the whole of the oil money and I think that is the pain, it brings us back to the issue of let us look at Nigeria as a state, as our state and let the interest of the country be uppermost in our minds.

    It will even challenge states if you say look, you get what you generate and pay tax to the federal government; every state will begin to generate resources. Little did we know that we have so much gold in Zamfara, so why won’t that be made a formal thing, let the state get a formal resources from that wealth and pay tax to the government. Every state in this country is blessed but we are only being lazy by the system of government that we practice.

     

    Q: Looking at the constitution, from what you have said, do you advocate for amendment or do you support a new constitution?

    A: On the issue of the amendment of the constitution, in fact in the 8th assembly I started a movement with some of my colleagues for the replacement of the current constitution that we have, that is to reenact a fresh constitution.

    But we had a hitch; in fact I was searching for a copy of the constitution we proposed and what is that hitch is section 9 of the current constitution which provides for alteration of the constitution and empowers the parliament to alter the constitution.

    We looked at it and our question is, can we actually substitute the current constitution by way of amendment and a lot us arrive at a no answer; that by the provisions of section 9 we cannot repeal and reenact a new constitution under that section because the definition of alteration however you try to enlarge it does not mean to remove completely, it means to alter, to change, to amend, so that is the difficulty that we have.

    What I have done is to propose again for an amendment of section 9, to allow for repeal and reenactment of a new constitution subject to a referendum.

    So if you ask me my personal opinion, today you cannot bring in a new constitution under section 9, you cannot replace and reenact, no.

    Else what we have proposed a quasi parliamentary system with one national assembly, one house. We looked at the cost of governance and we need to cut down the cost of governance.

    The issue of restructuring, most of the items under exclusive and concurrent list, remove them to the states to perform those functions and the local government. The issue of security we also looked at it.

    And in arriving at these things and crafting this new constitution, we took into consideration several confabs that have been held and their resolutions, wonderful resolutions that they arrived at. They looked at the problems of this country and came up with suggestions.

    So we incorporated a lot of them in the proposed constitution but our problem has been the provisions of section 9 and so we are proposing an amendment to section 9, praying that it would fly.

     

    Q: For some time now, IPOB, INC and the rest they have been calling for secession. Suddenly INC had a meeting with Buhari four days ago and they now said what they want is full restructuring whereby those from the Niger Delta will explore what they have than for us to be coming to the centre to beg for food, that is one and they demanded for two extra states. Meanwhile the president has met with other south-south leaders…Where is Nigeria heading to?

    A: The things you are seeing both the insecurity, secession call and all that it only points to the fact that there is a maladministration in the system, it points to the fact that Nigerians are not satisfied with what they are getting, it points to the fact that people are beginning to be frustrated with the system and that is why they are talking about exit.

    I don’t think that anybody truly wants to exit Nigeria but for the frustrations that Nigerians are facing. And that was why we had even earlier called here that Nigerians should call on their members to commence impeachment because we felt that Mr President was not doing enough, that Mr President has not shown capacity and competence on the job, that Mr President has relinquish his functions to others.

    But today you can see him meeting with different groups in the country, those who have been calling for one right or the other and that is what we expect Mr President to do; he will need to continue with such meetings because that is the only way we can make progress.

    What people are talking about is injustice in the system. You are talking about peace, you call for peace but you forget to do justice. As long as there is injustice, as long as there is imbalance people will continue to ask that they want to take their leave but if you give them justice they will stay back.

    We all want Nigeria but not a Nigeria where you will be a second class citizen, not a Nigeria where you will continue to face injustice, no.

    So what he is doing is right, he is discussing with people, talking to them, trying to listen to their complain; listening to their complain only gives some satisfaction.

    I have been saying that this government is irresponsive why do I say so because Nigerians will complain and you don’t care and these are all the aftermath of irresponsiveness of a government. When people keep complaining and you ignore them, what is the implication?

    If you make peaceful change impossible, you make violent change inevitable, that is where we are getting to, although late but it is better late than never.

    So I ask Mr President now that he has woken up let him not sleep again, let him continue in that direction, we want Nigeria to remain peacefully. If there is no peace I can’t be in this office.

    But when some of us talk they think that we want war, we want crisis, we want to tear the country, we want everybody to wake up because we want this country to get to the Promised Land. Nigeria is very wealthy but we are not managing our resources properly.

  • Oil prices steady after shake-out on supply worries

    Oil prices steadied on Wednesday after slipping prices on concerns that Saudi Arabia and Russia will pump more crude in response to falling global crude inventories and rising consumer prices.

    Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by one million barrels per day (bpd) to counter potential supply shortfalls from Venezuela and Iran.

    Brent crude was up one cent at 75.40 dollars a barrel by 0619 GMT.

    U.S. West Texas Intermediate crude was up 10 cents, at 66.83 dollars a barrel.

    “OPEC has over-delivered on supply cuts in the past six months,” Harry Tchilinguirian, global head of commodity market strategy at French bank BNP Paribas, said in a note to clients.

    “There is … scope for an increase in OPEC output.”

    OPEC-led supply curbs have largely cleared an inventory surplus in industrialized countries, and stocks continue to decline.

    The Organisation of the Petroleum Exporting Countries is due to meet in Vienna on June 22.

    Credit Suisse analysts on Tuesday said even if Russia and OPEC producers raise output, they would likely only add an additional 500,000 bpd.

    The move would leave inventories in the most developed countries short of the five-year average by the end of 2018.

    Falling share prices and a stronger U.S. dollar index also weighed on oil prices.

    A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.

     

  • Refine crude locally to end embarrassing fuel scarcity, Dogara advises FG

    Speaker of the House of Representatives, Hon Yakubu Dogara, has advocated for local refining of crude oil to make fuel available and easily accessible to all Nigerians, saying every other measure to put an end to the recurring problem of fuel scarcity will work temporarily which he described as embarrassing.

    The Speaker made this known when he received the executive members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), in the National Assembly.

    Hon Dogara said while consultation is ongoing on the part of leadership at different strata, the results will only achieve temporary relief until refineries are functioning enough to refine crude locally to meet the demand of Nigerians.

    He said, “Unless we are able to refine crude locally, we will never be in a position as a nation to say bye to fuel scarcity and that is the truth. Anyone who thinks we can depend on importation and still solve this problem is deceiving himself.

    “You see, when you import, you are depending on so many variables. These variables are not within your control and anything can happen along the line that may result in this. The solution is to refine crude locally and end this shame once and for all.

    “The final solution will be to refine this crude, put it in the filing station and say bye to fuel scarcity.”

    The speaker also called for capacity building for workers to discharge the responsibility to yield optimal results.

    While thanking PENGASSAN for taking the right path by engaging with legislators on areas of concern on developments in the petroleum sector, he noted that dialogue between citizens in the form of associations, unions and civil society groups, and the legislature, will deepen the process of democracy by making the government more responsive to their demands.

    Hon Dogara also assured them that the House and the Senate are jointly working on the remaining components of the Petroleum Industry Bill to ensure that their passage are expedited. He also advised them to take the opportunity of the joint public hearing of both petroleum committees of the National Assembly to make their input to the Bill.

    Earlier, president of PENGASSAN, Comrade Francis Olabode Johnson, commended the House for its effort at ensuring accountability and transparency in the oil and gas industry, as well as the National Assembly for passing the PIGB.

    He said the fuel scarcity Nigerians are experiencing is embarrassing and urges the House to collaborate with them on finding a sustainable way to end the crisis and prevent a resurgence by revamping and rehabilitating the nation’s refineries with timelines and strategies that will lead to adequate and sustainable crude supply.

    The PENGASSAN president also asked that all encumbrances associated with importation of refined products into the country should be addressed along with enhancement of infrastructural facilities, while appealing to the lawmakers for support for initiatives that will lead to job creation and improved security.

  • Kaduna Refinery shut down operations

    The Kaduna Refining and Petrochemical Company has shut down operations.


    The operations was shut down on January 15.


    According to the Executive Director (Services) of KRPC, Dr. Abdullahi Idris, the refinery was shut down because of lack of crude oil.


    Idris disclosed this to the News Agency of Nigeria in Kaduna.


    He said the refinery, whose fuel plant was commissioned in 1980, was functioning at 60 per cent capacity “but shut down on January 15 due to unavailability of crude oil”.


    Idris responded to an e-mail NAN sent to him to provide details of the company’s operations as part of a national survey on the state of the country’s refineries operated by the Nigerian National Petroleum Corporation.


    The EDS said the Lubes Plant was commissioned in 1983 and the Petrochemical Plant in 1988.


    According to him, before it was shutdown, the KRPC produced four million litres of petrol (PMS) per day.


    Idris explained that the plant was also producing 2.5 million litres of (AGO) Diesel and 1.6 million litres of Kerosene per day.


    The official said the Plant had undergone a Turn Around Maintenance in 2013 and currently had a workforce of 1,004 staff.


    However, a source at the Warri Refining and Petrochemical Company told NAN that it was incorporated in 1988

    following the merger of the Warri Refinery and Ekpan Petrochemical Plants.


    According to the source, WRPC, one of the subsidiaries of the NNPC, produces at installed capacity of 125,000 Barrel Per Stream Day.


    He said: “The WRPC was incorporated in 1988 following the merger of the Warri Refinery and Ekpan Petrochemical Plants which was producing a nameplate capacity of 100,000 BPSD


    “Following the merger, WRPC is now designed to produce installed capacity of 125,000 BPSD.”


    The source, however, declined comment as to whether the company was currently refining or not.

  • Indigenous Ship owners may get NNPC, NIMASA approval to lift crude

    … As Dakuku Champions New Trade Terms to Boost Indigenous Shipping

    … Kachikwu, Baru Weigh Options

    Shipowners and other stakeholders in the maritime sector are on the verge of getting the desired change in trade terms from Free On Board (FOB) to Cost Insurance and Freight (CIF) which would enable them to begin to lift Nigeria crude and ultimately boost indigenous capacity.

    This new encouragement was a fall out from the stakeholders’ engagement on changing Nigeria’s crude oil affreightment trade term from FOI to CIF which was organised by Nigerian National Petroleum Corporation (NNPC) and the Nigerian Maritime Administration and Safety (NIMASA) held on Tuesday at the NNPC towers in Abuja.

    The Minister of State For Petroleum Dr. Ibe Kachikwu who declared the event open welcomed the development, noting that the issue on this trade term is an aged long challenge that has lingered too far and charged participants to come out with resounding resolutions that would be of National benefit.

    The Director General of NIMASA, Dr. Dakuku Peterside who presented a paper titled, The Imperatives of Changing Nigeria’s Crude Oil Affreightment Trade Terms From FOB to CIF pointed out that the Changing landscape of Nigeria’s maritime sector viz-a-viz its security architecture, capacity and other determinants has necessitated the Change now than ever before.

    Dakuku stated further that the CIF if implemented will “encourage indigenous fleet expansion, lead to massive job creation for qualified Nigerian Seafarers, create opportunities for mandatory sea time experience for Nigerian cadets and build expertise and competence in international shipping trade”

    According to him “Nigeria is one of the major exporters of oil and gas resource in the world, and she averages an output of 1.92 million barrels of crude oil per day so this volume generates huge freight for carriers. Regrettably, Indigenous shipping operators have insignificant share of the freight earned from the carriage of Nigeria’s crude compared to foreign counterparts”. The DG lamented.

    Dr. Dakuku also stated that OPEC nations such as Iran, Indonesia, Algeria, Kuwait, Angola, Venezuela, UAE and Libya allow indigenous operators to participate actively in shipment of the crude oil, stating that with the right policies in place Nigeria can build its own capacity and one of this is the change of terms of trade for Nigeria’s benefit.

    Also speaking at the event the Group Managing Director of the NNPC Dr. Maikanti Baru stated that the Corporation does not have any reason not to allow Nigerians lift crude that there were conditions which made NNPC opt for the FOB trade. He however noted that the NNPC also sees benefits in the CIF trade term but processes have to be followed which may include transition period before finally opting for the CIF trade term.

    Shipowners and major stakeholders who spoke at the engagement lauded the initiative. Barr. Temisan Omatseye a former DG of NIMASA who is also a Ship owner pointed out that there is a lot of benefit in the CIF trade term. He stated further that that it would eliminate crude theft, create employment and ultimately compliment the diversification drive of the Federal Government.

    In the same vein, the President of the Ship Owners Association of Nigeria (SOAN) and Managing Director of Starz Marine Group, Engineer Greg Ogbeifun observed that what is needed to make the great CIF initiative to grow the Nigerian shipping industry and the economy is the needed Government support, which is coming at the right time, when the country wants it most to diversify the economy.

    All other stakeholders who spoke at the event including leading members of the Nigerian Shipowners Association (NISA) and Master Mariners unanimously agreed that the CIF trade term would be more beneficial to the country than the present FOB on which the crude lifting is currently based upon.

  • Oil rises to $58, set for weekly gain

    Oil rises to $58, set for weekly gain

    U.S. crude was down 8 cents at 51.48 dollars a barrel after earlier rising slightly. Still the contract is heading for a fourth consecutively weekly gain.

    Global benchmark Brent crude was 57.54 dollars a barrel of around 20 per cent, this performance is Brent’s best since June 2016.

    Earlier in the week on Monday Brent rose to 65 dollars.

    The price gains, most of them in the last two-and-a-half weeks, have come as traders anticipated renewed demand from U.S. refiners that were resuming operations after shutdowns due to Hurricane Harvey.

    Major world oil producers outside the United States have also indicated they will stick to output cuts to limit supply.

    They are getting support from Turkey’s threats to cut off a pipeline from the Kurdish region of Iraq after a referendum where Kurds voted overwhelmingly in favour of independence.

  • Crude oil discovered in Borno, says FG

    Crude oil discovered in Borno, says FG

    The Federal Government, yesterday, disclosed that crude oil has been discovered in Borno State.

    The Permanent Secretary of the Ministry of Petroleum Resources, Mrs. Jamila Shua’ra, made the disclosure during the agreement signing ceremony for joint venture, JV, cash call exit and presentation of the petroleum sector score card in Abuja.

    However,Shua’ra who attributed the discovery of oil in Borno and Lagos states to the doggedness of the present administration did not state the particular area in Borno State where oil was discovered and if the discovery was in commercial quantity.

    In the scorecard presented to stakeholders, the ministry also noted that the introduction of Price Modulation Mechanism and Appropriate Pricing Framework had helped the Federal Government to save N1.4 trillion that would have been expended on subsidy payment between May and November.

    Also, the ministry announced that the Department of Petroleum Resources, DPR, would in 2017 conduct bid rounds for open blocks and conclude the previously aborted marginal fields bid round to enhance the entry of new players, stimulate competition and generate revenue for the government.

    Shua’ra listed other achievements of the ministry.

    “Today, as a team, we have recorded commendable achievements in our sector: the introduction of the PMS Price Modulation Matrix; the availability of PMS in all outlets; eradication of payment on fuel subsidies; located foreign direct investment to finance midstream oil and gas infrastructure; adopted exit strategies on Joint Venture Cash Call; robust engagement of host communities to reduce agitations; creation of more stable industrial relations,” she said.

    Collaborating her statement, Vice President Yemi Osinbajo stated that the deregulation of the downstream sector, which led to the elimination of petroleum subsidy, saved the government a burden of N15.4 billion monthly.

    The vice president, who was represented the attorney-general and minister of justice, Alhaji Abubakar Malami, stated that the oil and gas sector remain very critical to the stability and growth of the nation’s economy as it accounts for about 90 per cent of the country’s earnings, in addition to contributing substantially to the inflow of foreign exchange and growth of foreign reserves.

    Prof. Osinbajo further disclosed that the Federal Executive Council (FEC) had recently approved new measures and strategies aimed at eliminating the burden of Joint Venture Cash Call arrears and easing future payments in the up-stream sector, stressing that the strategies are fully supported by the National Economic Council (NEC).