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Tag: Oil

  • Only Africans will buy African oil – Emperor Baywood

    Amidst global uncertainty about the future of crude oil and its implications on oil-dependent economies like Nigeria, the President and CEO, Baywood Group, Emperor Chris Baywood Ibe, has called for a more integrated continental trade structure amidst African countries, saying “Africans are the only ones that will buy their oil.”

    Speaking in Lagos during a press conference to unveil the 2017 agenda of Baywood Group, a multifaceted oil and gas technical service group of companies, Emperor Baywood Ibe said that Nigerian businesses have shown resilience despite the current economic downturn.

    “If we do things right, and global oil price rises, we [Nigeria] will be fine. However, beyond taking our products to the developed world, which is currently not in high demand, we should note that Africans are the only ones that will buy their oil”.

    Reflecting on the over twenty-eight years of business operation in Nigeria, Emperor Baywood Ibe said “Doing business in Nigeria as a Nigerian comes with a lot of things. But, what we have seen is that with determination, expertise, and honesty, things get better over time.”

    He shared the company’s plan to expand its operations both within and outside of Nigeria.

    “The future for Baywood Continental Ltd is extremely exciting, and we are looking to upscale our operations especially, Marginal Fields, acquisition of matured Oil fields from Oil Majors and explore new frontiers in the Energy sector such as cluster power generation using abundant gas for upcoming new cities and towns. Baywood Continental Limited is re-branding to achieve a brand equity balance between current and projected profile of the company.”

    “We have developed the broad and specific elements of the company strategy to actualize this vision. Therefore, the BCL organizational brand is one to watch out for, we will be more active across the print, electronic and social media platforms within the nearest future.”

    Baywood
    L-R: Greg Ugwueze, GM Business Development; Ine Wiche, Company Secretary; Osita Ngwu, Chief Operating Officer; Emperor Chris Baywood Ibe, President and CEO; Gbenga X-adebija, MD, Ashton and Layton; Regina Obanya, Company Secretary/Legal Adviser, during the Press Conference in Lagos, today.

    Commenting on the activities of militants in the oil and gas Niger Delta region, Emperor Baywood, noted that due to unchecked militancy, companies are forced to take on the responsibility of project executors and community managers, which is often not included in the agreement with the International Oil Companies, IOC.

    Emperor Baywood, however, said that despite the economic recession, business politicking amongst other challenges, Baywood Continental Ltd, has maintained a global repute with many industry first achievements including the construction of the largest on-shore gas pipeline in Nigeria; foremost membership of Petroleum Technology Association of Nigeria, PETAN, winning the 2014 Industry Achievement Award.

  • OPEC reports big Saudi oil cut, boosting compliance with deal

    OPEC reports big Saudi oil cut, boosting compliance with deal

    Top OPEC oil producer Saudi Arabia made a large cut in its crude output in January to support prices and lessen a glut, helping boost compliance with the group’s supply-reduction deal to a record high of more than 90 per cent.

    The Organisation of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1. Russia and 10 other non-OPEC producers agreed to cut half as much.

    Supply from the 11 OPEC members with production targets under the deal fell to 29.888 million bpd last month, according to figures from secondary sources that OPEC uses to monitor its output.

    OPEC published the data in its monthly report on Monday.

    Oil prices pared an earlier decline after the release of the report, trading above 56.45 dollars a barrel.

    The reductions amount to 93 per cent compliance, according to a Reuters calculation based on the OPEC figures.

    Last month’s report pointed to a 985,000-bpd surplus.

    In its report, OPEC gave no compliance figure.

    Media saw an earlier version of the secondary-source figures last week that put compliance at 92 per cent.

  • FG will not rely on oil even if it bounces back – Tunde Fowler

    The Chairman, Federal Inland Revenue Service (FIRS) Mr Tunde Fowler, has said Federal Government has learnt enough lessons from the global fall in oil prices.

    He said even if the price bounces back to what it used to be or more, government will look inwards for options of better ans stable revenue generation.

    Fowler noted that tax revenue is now becoming a major source of revenue in Nigeria.

    Fowler made this known when a delegation of the South-East, South-South Professionals of Nigeria (SESSP) led by its President, Mr Denzil Kentebe paid him a courtesy call in his office on Wednesday in Abuja.

    “Government will not relay on oil again even if it bounces back.

    “For the country’s sustainability, tax revenue is a now major source,’’ Fowler said.

    According to him, FIRS, Customs and FRSC are working together to serve the Nigerian populace better in the area of effective collection of tax.

    He called on the association to help the service advocate the importance of tax payment.

    Fowler said that there was need for the country to look inward to ensure that required taxes were being paid as at when due.

    “FIRS is trying to generate enough revenue for Nigeria and this can be possible if all are paying the required amount of tax,’’ he said.

    Responding, the President of SESSP pledged to be an ambassador of FIRS in advocating for tax payment in the regions.

    Kentebe said that the association comprises all levels of professionalism who shared ideas on the tax regime in the country.

    He assured that the association would help to create awareness in spreading the message of payment of tax.

    “There is need for all Nigerians to pay their taxes because it is the only thing that can improve the economy.

    “If the economy will be good, tax must be paid.

    “We will encourage our people to pay their taxes so that development will come to South-South.

    “However, we will like to ask for tax incentive, if people can see the benefit of paying tax for five to 10 years, they will be encouraged to pay,’’ Kentebe said.

  • Oil rises up to $57.01 on threat of U.S. issuing new Iran sanctions

    Oil rises up to $57.01 on threat of U.S. issuing new Iran sanctions

    Oil prices was up on Friday on news that U.S. President Donald Trump could be set to impose new sanctions on multiple Iranian entities, raising geopolitical tensions between the two nations.

    Comments by Russian energy minister Alexander Novak that oil producers had cut their output in accordance with a pact agreed in December also helped support prices, analysts said.

    Media reported on Thursday that Trump’s administration is prepared to roll out new measures against more than two dozen Iranian targets following Tehran’s ballistic missile test, according to sources familiar with the matter.

    Brent crude futures had risen 45 cents, or 0.8 per cent to 57.01 dollars a barrel by 0750 GMT, after settling down 24 cents at 56.56 dollars in the previous session.

    Brent is set to gain 2.6 per cent for the week.

    Front month U.S. West Texas Intermediate crude futures climbed 48 cents or 0.9 per cent to 54.02 dollars a barrel, after ending Thursday down 34 cents.

    For the week, the contract is up a little over one per cent.

    Move by the U.S. to impose new sanctions on Iran is “something at the back of short-term traders’ minds,” said Ric Spooner, Chief Market Analyst at Sydney’s CMC Markets.

     

    Reuters/NAN

  • Why Buhari is importing crude oil from Niger – Oyegun

    Why Buhari is importing crude oil from Niger – Oyegun

     

    The National Chairman of the All Progressives Congress, APC Chief John Odigie-Oyegun, has said the party supported President Buhari’s importation of crude oil from the Republic of Niger for refining at the Kaduna Refining and Petrochemical Company (KRPC) because of the level of disruptions in supply from the oil facilities in the South.

    The APC chairman spoke on Wednesday during a courtesy visit by the Niger’s Minister of Petroleum, Foumakoye Gado and the country’s Ambassador, Mansour Maman Hadj Daddo at the APC national secretariat in Abuja.

    He observed that the initiative “is already bearing fruit. For us it will make great economic sense for the refinery in Kaduna to function properly.

    “Moreso, in the face of disruptions we have in the southern parts of our country. It is a major economic advantage for that project to be expedited and come to fruition as soon as possible.

    “At the Party level, we assure you that everything will be done to ensure that those who are involved expedite the discussion and agreement so that the plan can be made operational as soon as possible,” he said.

    Also speaking, the Nigerien petroleum minister, said: “We acknowledge the cordial relationship between the President of Republic of Niger and Nigeria hence the need for us to come to the Party to strengthen the relationship. We believe this should be replicated at Party level.”

    “It is line with this understanding that the two leaders (Nigerian President, Muhammadu Buhari and Nigerien President, Mahamadou Issoufou) agreed to channel crude oil from Republic of Niger to the Kaduna refinery for refining.

    “We have had discussion with the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, to facilitate the plan.

    “The project is unprecedented because in Africa we are used to exporting crude oil instead of refining it within the continent. This is the first time two countries are coming together for this sort of bilateral crude-refining arrangement,” he said.

  • Oil steady after gains on Saudi output cuts

    Oil prices were little changed on Friday after gaining nearly 1 percent the day before on news that Saudi Arabia had cut production to meet OPEC’s agreement to reduce output.

    Saudi Arabia has been curbing oil output in January by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing OPEC’s agreement to slow production, according to a Gulf source familiar with Saudi oil policy.

    NYMEX crude for February delivery was down 7 cents at $53.69 a barrel by 0016 GMT, after closing up 50 cents on Thursday. For the week, the contract is likely to be largely steady.

    London Brent crude for March delivery was yet to trade after settling up 43 cents at $56.89 a barrel.

    Prices had fallen earlier on Thursday after data showed a surprisingly large increase in U.S. gasoline and distillate inventories.

    U.S. crude stocks dropped sharply to end the year, the Energy Information Administration said, with a draw of 7.1 million barrels, but stocks of gasoline and distillates surged as refiners ramped up production to reduce crude inventories, a year-end practice to avoid higher taxes.

  • Osun to intensify intervention programmes 2017 – Aregbesola

    Osun to intensify intervention programmes 2017 – Aregbesola

    In his 2017 New Year broadcast titled ‘From recession to recovery, growth and consolidation,’ the governor of Osun State, Rauf Aregbesola, has voiced his government’s commitment to intensify intervention programmes in the State in the New Year 2017.

    “We are going to intensify our intervention programmes among the people. This year, we are going to initiate another batch of Osun Youth Empowerment Scheme (OYES).

    “We are going to create more opportunities for people in agriculture, commerce and information and communications technology (ICT),” the Governor said.

    Aregbesola said that since 2014, it is evident that there is no free money again, emphasizing that the way to go is to work hard and earn money.

    “No one should be under any illusion about this. Oil price doesn’t look like it will spike up very soon, as we have had in the past.

    “Even if it will, we should never find ourselves in a position of dependency again. If oil windfall should come, it should go into special projects and savings for the future,” he said.

    The Governor envisioned that “Many developments are coming to our world which we should be prepared for and for which new opportunities will arise for the discerning, the bold and the prepared”.

    For instance, governor Aregbesola said “there will be a quantum leap in technology in the foreseeable future which will produce self-driving cars, robots and automation in agriculture and construction industries, rendering jobs redundant in these areas,” calling on academics, researchers and investors to be prepared and provide leadership for this inevitable transition.

    The Governor was optimistic about the year 2017, stressing that it is going to be a year of consolidation.

    “We are going to consolidate on all our programmes, especially in education, agriculture and road infrastructure,” he said.

    “We are not going to abandon any of our projects,” he added, enthusing 2017 is going to be the busiest year ever in the history of Osun state.

  • ‘Refineries to work in full capacity by 2017’

    The Nigerian National Petroleum Corporation (NNPC), Tuesday, said it would rehabilitate the three local refineries located in Port Harcourt, Warri and Kaduna to achieve optimal capacity utilization in 2017.

    In a statement signed by Mr Ndu Ughamadu, the Group General Manager, Group Public Affairs Division (NNPC) in Abuja, the Chief Operating Officer, Refineries of the NNPC, Mr. Anibor Kragha, stated that the Corporation was determined to move away from the approach of quick fixes and undertake a comprehensive revamp of the plants.

    “The plan for next year is to get the comprehensive rehabilitation programme done. “The situation is like having three cars in your garage that have not been maintained for 15 to 20 years while you expect optimal performance from them.

    “Changing one fuel pump here, one compressor there is not helpful. What we are doing now is to step back and take a holistic approach and do a full rehabilitation of all the refineries.” he said

    He added that once the exercise was achieved, the refineries in due course would draw up a chart for routine Turn Around Maintenance (TAM) Programme as and when due.

    Kragha explained that though the plan was still on course, none of the projected co-location refineries would come on stream in 2017 based on existing timeline for assemblage of the plants.

    ‘’We are very close; we have done tests with some of the key marketers. We have achieved all the parameters, we just want to be 110 percent certain,’’ he said.

    Meanwhile, Managing Director of the Kaduna Refining and Petrochemicals Company, Mr. Mukhtar Maiha, said KRPC was working towards a target of 75 per cent capacity utilization in the New Year based on projected supply of one cargo of crude oil per month.

  • Oil price hits highest since mid-2015 as OPEC and rivals agree historic deal

    Oil price hits highest since mid-2015 as OPEC and rivals agree historic deal

    Oil prices shot up over four per cent to their highest level since 2015 early on Monday after Organization of the Petroleum Exporting Countries, OPEC and other producers over the weekend in Vienna reached first output cut deal since 2001 .

    They jointly reduced output in order to rein in oversupply and prop up the market.

    Brent sweet crude futures, the international benchmark for oil prices, soared to 57.89 dollars per barrel in overnight trading between Sunday and Monday, its highest level since July 2015.

    U.S. West Texas Intermediate (WTI) crude futures also hit a July 2015 high of 54.51 dollars a barrel.

    With the deal finally signed after a year,the market’s focus will now switch to compliance with the agreement.

    ANZ bank said that Saudi Aramco, Saudi Arabia’s state-controlled oil company, had informed customers that their allocations would be reduced in January 2017, in line with the recent OPEC production cut agreement.”

    OPEC has said it will slash output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting around 486,000 bpd in a bid to end overproduction .

    Oversupply has dogged markets for over two years and pushed the economies of many oil exporting countries into crisis.

    On Saturday, producers from outside the 13- country OPEC group agreed to reduce output by 558,000 bpd, short of the initial target of 600,000 bpd.

     

  • Oil output reduction: Russia to create monitoring group

    Oil output reduction: Russia to create monitoring group

    Russia will create a monitoring group to ensure oil output reduction following the newly-clinched output cut pact between Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers, Russian Energy Minister, Alexander Novak, said Sunday.

    “We will create a monitoring group inside the country at a meeting with our oil companies. The most important thing is to maintain a certain decrease in oil production output in the country in general,” Novak, who was in Vienna for the long-awaited negotiation, was quoted by the RIA Novosti news agency as saying.

    Novak added that he will meet with operators of oil companies next week to discuss details of the oil output reduction.

    On Saturday, 11 non-OPEC oil producers, including Russia, agreed to reduce oil output by around 558,000 barrels per day in the wake of November’s OPEC agreement to slash production by 1.2 million barrels per day, which represents the strongest effort made in the last 15 years by these oil-rich countries to re-energize the global oil market.

    Based on the agreements, Russia would cut its oil output by 200,000-300,000 barrels per day in early 2017, and gradually to 10.947 million barrels a day.

    Azerbaijan’s Energy Minister, Natig Aliyev, said on Saturday that Russia and Kuwait would head a committee monitoring implementation of the oil output cut agreements.

    Novak expected that the rebalancing of the oil market could begin in the third quarter of 2017, on condition that the OPEC members and non-members of the organization implement the agreements.