TheNewsGuru

Tag: Oil

  • Oil price rises above $75 per barrel

    International oil benchmark, Brent crude, on Monday hit $75 per barrel and rose further amid growing geopolitical tensions in the world.

    Brent, against which Nigeria’s crude oil is priced, stood at $75.16 per barrel as of 8:15pm Nigerian time, while the United States’ marker, West Texas Intermediate, traded around $68.36 per barrel.

    The rise in oil prices means further accretion to the nation’s Excess Crude Account, into which the difference between the market price of oil and the budget benchmark is saved to provide a cushion when oil prices fall or extra cash is needed for spending on infrastructure.

    The 2018 budget proposal, submitted by President Muhammadu Buhari in November 2017, put the benchmark oil price at $45 per barrel, compared to $44.5 per barrel for the 2017 budget.

    The oil price rallied after Israeli Prime Minister, Benjamin Netanyahu, accused Iran of lying “big time” about a secretive nuclear weapons programme, ratcheting up tensions in a region that controls almost half the world’s oil.

    Netanyahu’s disclosure of thousands of documents he said proved Iran definitively sought to assemble nuclear bombs comes as the US President, Donald Trump, considers whether to re-impose sanctions against Iran, the third biggest oil producer in the Organisation of Petroleum Exporting Countries.

    Crude has rallied this month amid heightened geopolitical tensions and Trump’s indications that he might scrap the 2015 nuclear deal with Iran. At the same time, OPEC-led production cuts have continued to tighten global markets, despite record-setting US crude output.

    Meanwhile, more Nigerian oil cargoes had been placed with tender buyers, Reuters reported on Monday.

    Fewer than 10 May loading Nigerian cargoes were still available to buyers, traders said, with Qua Iboe, Forcados and Escravos left.

    Offers were well above $1.50 premiums to dated Brent, with Erha pegged at a $1.80 per barrel premium.

    While multiple June loading Nigerian cargoes had changed hands, traders said most of these were not yet promised to end users, meaning they could be re-offered.

    The differential levels varied widely, with Qua Iboe discussed as high as $1.50 above Brent and Forcados close to $1.70 per barrel above dated Brent.

    Buyers were pressing for lower levels in part because of good availability of crude in Europe and the US and a wide gap between Brent and the US WTI benchmarks.

     

  • Oil prices won’t go higher than $70 in years to come – JP Morgan

    Oil prices at $70 may be the top of the range in the price of oil that would be seen over the next few years, chief global strategist at JPMorgan Asset Management, David Kelly told Bloomberg Daybreak: Americas on Monday.

    “Yes, we’ve got those geopolitical issues, but I don’t know if sanctions would be that effective, it has to be a global effect,” Kelly said.

    Based on the cuts in production and on growth in the U.S. shale industry, oil at $70 a barrel may be “as high as it gets”, according to the strategist.

    “That’s a price that I don’t think is hurting U.S. consumers too much,” Kelly said, adding that $70 oil is a price that’s actually helping the stock market and U.S. energy companies.

    At the beginning of this year, J.P. Morgan lifted its Brent oil price forecast to $70 a barrel for 2018. The global economy will continue to expand, which will stimulate growth in oil demand and healthy prices, J.P. Morgan said in January, expecting that 2018 would be a year of two halves for the oil market and oil prices. The first half of the year will be so strong that Brent could hit $78 a barrel in the first or the second quarter.

    Yet, in the second half of the year, drillers will increase their production in response to the higher prices, and this higher production may weigh on oil benchmarks, according to J.P. Morgan.

  • ICT has overtaken oil, gas in job creation – Atiku

    Mr Samuel Atiku, an Information and Communication Technology (ICT) expert, on Thursday called on the Federal Government to adequately exploit the potential of ICT to develop the youth and create more employment.

    Atiku, Head of Research, BudgiT, told the News Agency of Nigeria in Lagos that the government could include youth-driven, ICT-based programmes in its economic diversification agenda.

    BudgiT is a civic startup that liberates budgets and public data from an inactive state into a more engaging format, mostly through infographics and interactive application with the aim of improving civic discussions and institutional reform.

    Atiku said: “In Nigeria, about 75 per cent of the population is below the age of 40.

    “It is not out of place for the government to have agenda to train about 10 million youths to become software developers within two years.

    “We are yet to take full advantage of the possibilities of an ICT-driven education in Nigeria.

    “In the U.S., for instance, there is a labour plan to train about three million people to become software developers.’’

    Atiku noted that ICT sector cut into education, publishing, broadcasting, newspapering and others.

    “Information communication and technology is bigger than it looks.

    “According to research, the universality of ICT has made it an indispensable media for transacting every aspect of human and material resources in the world.

    “This trend of development has provided significant changes in the lives of thousands of youths in the developing world,’’ he told NAN.

    Atiku said that rapid development in

    ICT in Nigeria had provided enormous job opportunities and contributed meaningfully to national development.

    Atiku told NAN that the ICT industry had immensely increased Nigeria’s Gross Domestic Product (GDP).

    According to Atiku, the ICT sector in Nigeria had in recent time provided more employment opportunities than the country’s oil and gas sector.

    NAN reports that the Nigeria Communications Commission recently said that the quarterly contribution of the ICT sector to Nigeria’s GDP increased to N1.6 trillion from N1.4 trillion, making the sector to be contributing nearly 10 per cent to the GDP annually.

    He added that more infrastructure should be put in place to increase ICT’s contribution to the country’s GDP.

    According to Atiku, infrastructure in the ICT sector at the moment are fragmented.

    He added that universities were not teaching technology adequately, advising that the Federal Government’s diversification agenda should be approached from an education perspective.

    He told NAN that there were still issues surrounding the payment system in the country.

    “If somebody wants to transfer money to you from the U.S., for example, the process is still very rigorous.

    “The government needs to work closely with the Central Bank of Nigeria to adopt payment systems that would allow seamless transactions,” he said.

    He said that the country would need to run an open economy to lead in ICT in Africa.

    Mr Jide Awe, Chairman, Conferences Committee, Nigeria Computer Society, also told NAN that the ICT sector had contributed significantly to the country’s GDP.

    Awe said that much employment opportunities had been created through innovation in the ICT sector.

    He also said that a lot of transactions had been made seamless through the use of ICT.

    “In the financial sector, the systems of payments are more efficient; money transfer can be done online within the comfort of your home.

    “One cannot ignore the improvements in infrastructure because, now, we have internet access which has enabled creation of applications such as financial and tech apps.

    “The telecom sector, especially, has created tonnes of jobs for our youths,’’ he said.

    He also noted that ICT cut across governance, financial system, educational, agriculture and more.

    “ICT is becoming a norm; this is evident in countries such as Singapore, Japan, China and India, where ICT is making tremendous impacts.

    He urged a more conducive environment for local ICT production.

    “Right now, most of the ICT contributions we have are dependent on foreign ideas.

    “The government needs to create an environment for more local ICT production,” he said.

     

  • Make agriculture your new oil, Bill Gates advises FG

    World-renowned philanthropist, Bill Gates has advised the Nigerian government to treat agriculture as its newly found oil to bring about development to all spheres of the country.

    Gates gave this advice at the special session of the National Economic Council meeting focused on human capital development held Thursday at the Banquet hall, Presidential villa, Abuja.

    Present at the meeting were the Vice President, Yemi Osinbajo, who is the chairman of NEC, some governors, ministers, CBN governor, Aliko Dangote, Bill Gates and other development partners.

    Gates in his speech said the government should shift attention from oil and improve the agricultural sector to becoming the pillar of Nigerian’s economy.

    According to him, only four per cent of Nigerian farmers currently have loans to grow their business and this is unacceptable especially in a country where the sector accounted for a large proportion of the country’s GDP, and during the oil price collapse and recession, helped cushion the economy.

    He, however, lamented that the sector is not growing as it ought to and many small scale farmers still lack access to loans that can assist with the expansion of their businesses.

    Gates said the sector still has a lot of potential to grow but pointed out that what is hindering the growth is that majority of Nigerian smallholder farmers lack access to the seeds, fertilizer and training they need to be more productive.

    “… Healthy people need opportunities to thrive and one of the most important of these opportunities is agriculture, the sector that nourishes Nigerians and supports half the population especially the poorest,” he said.

    He noted that the lack of access to finance is one of the barriers that continues to prevent smallholders from thriving.

    “Where three quarters of people have mobile phones, digital financial services can offer the potential to boost the economy from top to bottom. Right now more than 50 million Nigerian adults are at the whim of chance and the informal economy. With access to digital financial tools, they can cope better with disaster that threatens to wipe them out, build assets and a credit history and gradually lift themselves out of poverty,” he said.

    He, however, urged the government to consider the impact this would have on businesses.

    He said of the 37 million micro, small and medium enterprises in Nigeria, more than 99 per cent are micro and their lack of access to finance is a leading reason why their businesses cannot grow.

    He said estimates reveals that digital financial services will create a 12.4 per cent increase in Nigeria’s GDP by 2025. Meanwhile, oil accounts for about 10 per cent of Nigeria’s GDP.

    “Imagine adding another oil sector and then some of the economy, but one whose benefit spread far and wide and would reach almost every single Nigerian. There is another benefit to digital financial services that will make everything I’m urging you to do much easier. It will vastly improve the government’s ability to tax and spend efficiently.”

    He commended the government for “some effort to fill these gaps”, with more investment and series of smart policies to encourage private sector investment.

    He urged the government to do more because “these reforms lay the foundation for a booming agricultural sector that feeds the country, helps end chronic malnutrition and lift up tens of millions of smallholder farmers”.

    The Vice President, in his remark said not only is the government aware of these issues raised, but it is prepared to take the challenges outlined head-on.

    Osinbajo said the government in 2016 launched a Social Investment Programme comprising a job scheme for unemployed graduates, a feeding programme for public primary schools, a micro-credit scheme for small businesses and a cash transfer scheme for the poorest and most vulnerable households.

    Highlighting the successes of some of the programmes, Mr. Osinbajo said the school feeding programme currently serves over 7 million school children across 22 states.

    “There are important educational and economic benefits in guaranteeing one hot meal a day to these children, it has pushed school enrollment rate upwards in many communities where it is being implemented, Osinbajo explained.

     

  • Oil prices jump as Brent hits $70

    Oil prices jumped on Friday, with Brent crude futures hitting their highest in more than two weeks as U.S. stock prices rose.

    Investors covered short bets ahead of a weekend in which the U.S. news programme “60 Minutes” will air an interview with Saudi Arabia’s crown prince.

    Brent futures rose to more than 66.42 dollars , its highest since Feb. 28.

    U.S. West Texas Intermediate (WTI) crude futures for April, which will expire on Tuesday, rose to 62.54 dollars on Friday, its highest since March 7.

    Gains on Wall Street also supported crude futures, which have recently been moving in tandem with U.S. stock indices.

    U.S. drillers added four oil rigs in the week to March 16, bringing the total count to 800, General Electric Co’s Baker Hughes energy services firm said on Friday.

    It was the seventh U.S. rig count rise in eight weeks.

    On Thursday the International Energy Agency (IEA) predicted global oil demand would pick up this year.

    The agency raised its forecast for oil demand this year to 99.3 million barrels per day (bpd) from 97.8 million bpd in 2017.

    It expected supply from non-OPEC nations to grow by 1.8 million bpd in 2018 to 59.9 million bpd, led by the United States.

    OPEC and other producers have cut output to reduce a global crude glut.

    “Demand is gradually improving, and that continues to be priced into the price of oil,” said Mark Watkins, regional investment manager at U.S. Bank Wealth Management in Park City, Utah.

    “That’s that positive backdrop that you end up having that really is going to be the catalyst for a true rebalancing of inventories.”

    On Wednesday, the U.S. government reported that crude stockpiles in the United States increased by a more-than-expected five million barrels.

  • Oil reserves drop by 961 million barrels

    Nigeria’s oil reserves has recorded a decline of 961.47 million barrels in four years, TheNewsGuru.com can authoritatively report.

    Recall that the Federal Government had earlier set a target of increasing the oil reserves.

    The oil reserves fell from a high of 32.23 billion barrels in 2012 to 31.27 billion barrels in 2016 while the condensate reserves stood at 5.47 billion barrels from 4.91 billion barrels in 2012, the latest data obtained from the Department of Petroleum Resources showed.

    The Federal Government in 2010 set the target of 40 billion barrels of crude oil reserves and a production of four million bpd by 2020 but exploration activity has slowed in recent years.

    Industry stakeholders have continued to raise concerns as the regulatory uncertainty in the industry has resulted in fewer investments in new oil and natural gas projects, and the lack of licensing round since 2007.

    The Director, Department of Petroleum Resources, Mr. Mordecai Ladan, said in the latest Nigeria Oil and Gas Industry Annual Report that the Nigerian petroleum sector had been affected by the disruption occasioned by the 2014 price crash.

    He said, “This is due mainly to the mistaken assumption that the pre-2014 bullish market could hold much longer as the world seemed to be in the threshold of post peak-oil era. Novel technology, especially on extraction of shale oil opened the fresh vistas for unconventional oil with significant destabilising effects on conventional producers like Nigeria.

    “The new oil from unconventional frontiers and the rising profile of green energy are posing considerable challenges and opportunities for Nigeria. More noticeably, increased access to unconventional oil reserves in the shale sector and the lifting of the self-imposed US oil export embargo have significantly shrunk demands for Nigerian oil in the United States, a former prime destination for Bonny Light and other Nigerian crude blends.”

    Ladan noted that the US had since changed from being a major market to being a major competitor for markets across the globe, adding, “Nigeria like other conventional oil producers around the world is also grappling with the growing competition for market space from the renewable energy sector.”

    He, however, said those market challenges also had ingrained in them new vistas of opportunities on oil and gas activities in Nigeria.

    “Particularly, the unfolding realities are dictating the need for more institutional and operational efficiency to effectively compete in the shrinking market place and for new investment opportunities to explore and develop new prospects.”

    The DPR director said the speedy enactment of the petroleum industry governance law, which was recently passed by the National Assembly, and the pending bills, would place the Nigerian oil and gas sector on better pedestal to compete in the increasingly complex global energy terrain.

    The Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, said last week that the passage of the Petroleum Industry Bill would unlock $10bn worth of oil and gas investment in the country.

    The first part of the bill, Petroleum Industry Governance Bill, has been passed by the Senate and the House of Representatives, awaiting the President’s assent.

    “When the other sections of the bill are finally passed, it will unlock over $10bn of investment held up due to uncertainty,” the NNPC GMD said.

  • Oil prices rise towards $70 fueling more subsidy fears

    Oil markets signalled a new high for oil prices Monday as prices climbed on the back of a drop in the number of United States rigs drilling for more production. This also follows the continuing United States economy creating jobs, which fuels industry hopes for a higher fuel demand.

    The rise in oil prices has also signalled a mixed bag of joy and sadness in Nigeria. While the nation’s income will continue to receive a boost, analyst fears that Nigeria’s petrol woes are bound to spiral to higher fuel subsidy costs.

    Brent sweet crude, Nigeria’s brand, climbed to 65.70 dollars per barrel, up 21 cents, or 0.3 per cent, from its previous close.

    William O’Loughlin, an investment analyst at Rivkin Securities is of the opinion that “a falling rig count and the strong employment data may have helped support prices.”

    TheNewsGuru.com has been following the U.S. economy which added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

    According to NAN, in oil markets, U.S. energy companies last week cut oil rigs for the first time in almost two months with drillers cutting back four rigs, to 796, Baker Hughes (GE.N) energy services firm was quoted as saying last Friday.

     

  • Oil rise as production cuts tighten market

    Oil rise as production cuts tighten market

    Oil prices rose on Tuesday on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia.

    U.S. West Texas Intermediate (WTI) crude futures were at 58.50 dollars a barrel.

    The Organisation of Petroleum Exporting Countries (OPEC), the Middle East-dominated producer club, and Russia, the world’s single biggest oil producer, have been withholding output to tighten the market and prop up prices.

    The agreement to cut started last January and is set to cover all of 2018.

    abar al-Luaibi, oil minister of OPEC-member Iraq, said there would be a balance between supply and demand by the first quarter of 2018, leading to a boost in prices.

    The production cuts came amid healthy global demand which many analysts expect to hit 100 million barrels per day (bpd) for the first time at some point next year or in 2019.

  • Nigeria lost $21 billion to oil Production Sharing Contact – Kachikwu

    Minister of State for Petroleum Resources Ibe Kachikwu said yesterday that Nigeria has lost $21 billion to oil Production Sharing Contact (PSC) in the 20 years.

    According to him, previous governments failed to exploit the opportunity of the Deep Offshore Act that made provision for premium element to be shared once the price of crude exceeds $20 a barrel.

    He said yesterday’s Federal Executive Council (FEC) meeting approved steps to amend Section 15 of the PSC of the Deep Offshore Act.

    Kachikwu spoke to reporters at the end of the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa in Abuja.

    He was with Minister of Transportation Rotimi Amaechi, Minister of Niger Delta Affairs Usani Uguru Usani and the Senior Special Assistant on Media and publicity, Garba Shehu.

    Kachikwu said “The first and most substantial for me is the decision to work with the Attorney-General to amend Section 15 of the PSC of the Deep Offshore Act.

    ”Under the Deep Offshore Act, there was a provision in 1993 that once the price of crude exceeds $20 a barrel, the government will take steps to ensure that that premium element is then distributed at an agreed premium level for the Federal Government so that we get more for our oil.

    ”But over the last 20 years, nothing really was done. From 1993 to now, cumulatively, we have lost a total of $21 billion just because government did not act. We did not exercise it.

    ”In 2013 there was a notice to oil companies that we were going to do this but we didn’t follow through in terms of going to council to get approval

    ”One of the things we’ve worked on very hard over the last one year is to get that amendment because once we do, the net effect for us is close to $2 billion extra revenue for the federation.

    ”Let me just say that however we do it, we would definitely try to see whether a possibility exists for claw back some advantages. Let me just keep it at that.”

    The minister reiterated that there was no plan to increase the pump price of fuel.

    Speaking on the billions spent to maintain existing refineries and efforts to build new ones, he said: “I believe that the refineries can be fixed, we came up with a model to find private sector funding into these refineries that’s being done, we expect that before the end of this year, we will at least get to the final contracting stage in terms of announcing those who are going to take this up, it takes about six months to do this and do it thoroughly but that requires raising close to N2 billion from private sector participants to get this done.

    ”A lot is being done on refining that is because we have focused on it too much to the point where I have put my credibility on the line and that’s fine and we have said it is important that we stop importing petroleum products there is just no justification for it.

    ”We have encouraged private sector, Dangote is working very hard, I have told the officials of Dangote that as opposed to the 2020 completion period they are looking at they should assist us by trying to deliver this in 2019 hopefully.

    ”For our own refineries, if we complete the procurement processes by the end of this year, they would begin their 12-18 months resuscitation or turn around maintenance (TAM).

    ”If they do that hopefully towards the end of 2019 we should have the three refineries being able to produce for the first time in decades within 425,000 barrels per day name-plate capacity, we are also looking at the AGIP refineries, we are also looking at the Petrolex Refinery that myself and the Vice President went yesterday (Tuesday) to commission, we have commissioned their storage facilities, they have been granted approvals through us for an elevation of their refining plan from 150,000 barrels a day to 250,000 barrels a day. Given the history they have had in the success of building their storage and maritime facilities I believe they can meet up.

    ”You take the smaller modular refineries where close to nine are getting closer to the point of investment decision you see that wholistically we are addressing the refining thing, if we do that we are looking at refining capability of less than a hundred thousand barrels in real terms infact less than fifty thousand barrels in real terms to refining capability of 1.2million barrels per day, so we will be refining in excess of what our current share in JV crude production is, the reality is this is something that has been there for long and we are addressing it frontally.” he said

    According to him, FEC also approved the award of contract of over $2.7 billion to three consortium that will finish up the AKK (Abuja,Kaduna, Kano) pipeline.

    He said “The effect of this is that that whole movement of gas from the southern corrector to the north that will enable power generation increase, enable utilization of gas up into the hinterlands finally will be completed.

    ”One of the things we have suffered is the reaping of gas. We presently have trapped power, trapped gas all in the southern corridors that is going nowhere because of lack of infrastructure.

    “So that has now been awarded. You remember that was partially done, this is a contract that has lasted over 13 years, so we got approval for that today and so that is going forward very nicely.” he added

    The Minister said FEC awarded a contracts to a consortium for the Odidi pipeline from the Warri and the Southern marshlands in order to move the additional gas bring produced.

    He said “Through the NDDC, about 364 million cubic meters of gas to be feed into the AKK pipeline. Its all part of gas gathering mechanism. So the two taken together basically will boost gas delivery in Nigeria, gas delivery for power and begin for the first time to take very definitive steps towards the movement of Nigeria from being a crude nation into a gas environment.” he said

    According to him, previous governments failed to exploit the opportunity of the Deep Offshore Act that made provision for premium element to be shared once the price of crude exceeds $20 a barrel.

    He said yesterday’s Federal Executive Council (FEC) meeting approved steps to amend Section 15 of the PSC of the Deep Offshore Act.

    Kachikwu spoke to reporters at the end of the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa in Abuja.

    He was with Minister of Transportation Rotimi Amaechi, Minister of Niger Delta Affairs Usani Uguru Usani and the Senior Special Assistant on Media and publicity, Garba Shehu.

    Kachikwu said “The first and most substantial for me is the decision to work with the Attorney-General to amend Section 15 of the PSC of the Deep Offshore Act.

    ”Under the Deep Offshore Act, there was a provision in 1993 that once the price of crude exceeds $20 a barrel, the government will take steps to ensure that that premium element is then distributed at an agreed premium level for the Federal Government so that we get more for our oil.

    ”But over the last 20 years, nothing really was done. From 1993 to now, cumulatively, we have lost a total of $21 billion just because government did not act. We did not exercise it.

    ”In 2013 there was a notice to oil companies that we were going to do this but we didn’t follow through in terms of going to council to get approval

    ”One of the things we’ve worked on very hard over the last one year is to get that amendment because once we do, the net effect for us is close to $2 billion extra revenue for the federation.

    ”Let me just say that however we do it, we would definitely try to see whether a possibility exists for claw back some advantages. Let me just keep it at that.”

    The minister reiterated that there was no plan to increase the pump price of fuel.

    Speaking on the billions spent to maintain existing refineries and efforts to build new ones, he said: “I believe that the refineries can be fixed, we came up with a model to find private sector funding into these refineries that’s being done, we expect that before the end of this year, we will at least get to the final contracting stage in terms of announcing those who are going to take this up, it takes about six months to do this and do it thoroughly but that requires raising close to N2 billion from private sector participants to get this done.

    ”A lot is being done on refining that is because we have focused on it too much to the point where I have put my credibility on the line and that’s fine and we have said it is important that we stop importing petroleum products there is just no justification for it.

    ”We have encouraged private sector, Dangote is working very hard, I have told the officials of Dangote that as opposed to the 2020 completion period they are looking at they should assist us by trying to deliver this in 2019 hopefully.

    ”For our own refineries, if we complete the procurement processes by the end of this year, they would begin their 12-18 months resuscitation or turn around maintenance (TAM).

    ”If they do that hopefully towards the end of 2019 we should have the three refineries being able to produce for the first time in decades within 425,000 barrels per day name-plate capacity, we are also looking at the AGIP refineries, we are also looking at the Petrolex Refinery that myself and the Vice President went yesterday (Tuesday) to commission, we have commissioned their storage facilities, they have been granted approvals through us for an elevation of their refining plan from 150,000 barrels a day to 250,000 barrels a day. Given the history they have had in the success of building their storage and maritime facilities I believe they can meet up.

    ”You take the smaller modular refineries where close to nine are getting closer to the point of investment decision you see that wholistically we are addressing the refining thing, if we do that we are looking at refining capability of less than a hundred thousand barrels in real terms infact less than fifty thousand barrels in real terms to refining capability of 1.2million barrels per day, so we will be refining in excess of what our current share in JV crude production is, the reality is this is something that has been there for long and we are addressing it frontally.” he said

    According to him, FEC also approved the award of contract of over $2.7 billion to three consortium that will finish up the AKK (Abuja,Kaduna, Kano) pipeline.

    He said “The effect of this is that that whole movement of gas from the southern corrector to the north that will enable power generation increase, enable utilization of gas up into the hinterlands finally will be completed.

    ”One of the things we have suffered is the reaping of gas. We presently have trapped power, trapped gas all in the southern corridors that is going nowhere because of lack of infrastructure.

    “So that has now been awarded. You remember that was partially done, this is a contract that has lasted over 13 years, so we got approval for that today and so that is going forward very nicely.” he added

    The Minister said FEC awarded a contracts to a consortium for the Odidi pipeline from the Warri and the Southern marshlands in order to move the additional gas bring produced.

    He said “Through the NDDC, about 364 million cubic meters of gas to be feed into the AKK pipeline. Its all part of gas gathering mechanism. So the two taken together basically will boost gas delivery in Nigeria, gas delivery for power and begin for the first time to take very definitive steps towards the movement of Nigeria from being a crude nation into a gas environment.” he said

  • Oil markets firm on expected extension of production cuts

    Oil markets firm on expected extension of production cuts

    Oil markets were firm on Monday, with Brent crude opening above 60 dollars per barrel on expectations an OPEC-led production cut due to expire next March would be extended.

    Brent crude oil futures, the international benchmark for oil prices, were at 60.63 dollars per barrel at 0018 GMT, up 19 cents or 0.3 per cent from their last settlement.

    That’s close to their highest level since July 2015 and up more than 36 per cent since their 2017 lows last June.

    U.S. West Texas Intermediate (WTI) crude futures were up by 16 cents, or 0.3 per cent, at 54.06 dollars a barrel.

    “With strong compliance to OPEC’s production curbs already supporting prices, comments from the Saudi Arabian Crown Prince that suggested the production cut agreement should be extended added to gains,” ANZ bank said on Monday.

    The Organisation of the Petroleum Exporting Countries (OPEC) plus Russia and nine other producers have agreed to hold back about 1.8 million barrels per day (bpd) to get rid of a supply glut.

    The pact runs to March 2018, but Saudi Arabia and Russia, who are leading the effort, have both voiced their support to extend the agreement.

    OPEC is scheduled to meet officially at its headquarters in Vienna, Austria, on Nov. 30.

    The confident sentiment is visible in the way financial traders have positioned themselves.

    Hedge funds and other money managers raised their bullish wagers on U.S. crude futures and options in the week to October 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

    The speculator group raised its combined futures and options position in New York and London by 15,041 contracts to 280,634 during the period.

     

     

    Reuters/NAN