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Tag: Oil

  • 36.5 million barrels of oil stolen in 2017 – NEITI

    36.5 million barrels of oil stolen in 2017 – NEITI

    It said Nigeria lost about 36.5 million barrels of crude oil to theft and sabotage in 2017, the Nigerian Extractive Industry Transparency Initiative has said.

    An analysis of the latest annual oil and gas report of the Nigeria Extractive Industries Transparency Initiative for the 2017 fiscal said the country witnessed a reduction in oil theft within the year.

    The report also stated that 69 million barrels of crude was lost due to decrease in production volumes resulting from routine maintenances or unplanned repairs of the production facilities.

    “This was regarded as a remarkable improvement, particularly when compared to the 2016 figures of 101million barrels and 144 million barrels lost to theft and deferred production respectively,” NEITI said.

    According to the report, out of the 690,465 million barrels of crude oil produced in 2017, a total of 688, 291million barrels were lifted.

    Though marginal, this represented an increase from the 668,147 million barrels lifted in 2016.

    The report also showed that the Nigerian National Petroleum Corporation lifted a total of 241 million barrels of crude oil on behalf of the federation.

    A breakdown of the lifting showed that federation exports accounted for 135 million barrels, while the domestic crude lifting accounted for 106 million barrels.

    The report disclosed that the federation exports volume went down by 36 per cent from 211 million barrels in 2016 to 135 million barrels in 2017.

    While lifting by the companies amounted to 447 million barrels, joint venture operations, production sharing contracts and sole risk operators accounted for 130 million barrels, 223 million barrels and 79 million barrels respectively.

    “Marginal field and service contract operators lifted 15 million barrels and one million barrels during the year under review,” the 2017 oil and gas report stated.

    On crude allocation for domestic use, the report indicated that in 2017, the NNPC allocated 105.925 million barrels for domestic use.

    It stated that while 25 per cent of this quantity was supplied to the refineries, 69 per cent was on the other hand utilised for the Direct Sale Direct Purchase arrangement.

    Cases of pipeline breaks on oil installations across the country witnessed a significant reduction between 2013 and 2017, dropping from 3,571 to 924.

    The report said the 2017 fiscal year showed that pipeline breaks reduced by 2,647 within the four-year period.

    Findings showed that after the country witnessed 3,571 pipeline breaks in 2013, the cases moved up to 3,732 breaks in 2014.

    It increased again in 2015 to 2,832 breaks and in 2016 Nigeria recorded 2,589 pipeline breaks across its oil installations.

    This dropped to 924 breaks in 2017, a development which industry operators described as significant.

    “This decline suggests a positive return on the actions taken to mitigate vandalism,” NEITI stated in its report.

  • Oil will remain relevant beyond 2040 – NNPC

    Oil will remain relevant beyond 2040 – NNPC

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, said fossil fuel would remain relevant in the global energy mix contrary to assumptions in some quarters that oil demand would be very high even beyond 2040.

    The NNPC chief spoke on Wednesday in his office in Abuja, when he received members of a Higher Command Course of the Indian Army War College on a geo-strategic tour of Nigeria.

    Kyari espoused the uniqueness of Nigeria’s crude oil grades as rich crude with high global demand, saying NNPC was determined to grow Nigeria’s production to 3million barrels per day by 2023 to enable it to take advantage of the gap that exists in the demand-supply balance.

    The Acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji disclosed this in a statement on Wednesday.

    He said the age-long bilateral relations between Nigeria and India, which cut across trade, military cooperation and international peace keeping, among others.

    The GMD explained that NNPC’s mandate cuts across satisfying domestic energy needs and contributing to global energy market, especially crude oil and Liquefied Natural Gas (LNG) deliveries across the world.

    He described energy security as a critical factor in guaranteeing Nigeria’s territorial integrity and growing its economy.

    “Energy security is everything in terms of national security. The recent attack on Saudi oil facility is one incident which has attracted global attention and has the potential to impact global economy,” Kyari said.

    According to the NNPC’s helmsman, understanding the relationship between energy security and global security was important, especially as developing nations strive to grow their respective economies and guarantee their territorial integrity.

    In his remarks, the leader of the delegation, Brig. Gen. Sudhir Malik, said India was the largest trade partner with Nigeria, stressing that oil formed a large chunk of the trade between the two counties.

    He described Nigeria as Africa’s economic power house which shares similar aspirations as India.

    “We are also a growing economy. It is a mutual benefit to both nations. In times to come, we hope that these bilateral relations will continue to grow so that we will also increase the trade volumes,” he added.

    While stating that India was aware of Nigeria’s peculiar security and economic challenges, the military chief, however, expressed optimism that the deep relations between the countries’ armed forces would help in addressing these challenges.

  • Photo: Saudi Arabia reveals damage done to oil facilities

    Photo: Saudi Arabia reveals damage done to oil facilities

    Saudi Arabia on Friday revealed extensive damage to key oil facilities following last Saturday’s aerial strikes that were blamed on Iran, but vowed to quickly restore full production even as regional tensions soar.

    Yemen’s Tehran-linked Huthi rebels, who on Friday announced a sudden halt to attacks on Saudi Arabia, claimed the strikes on state giant Aramco’s facilities in Khurais and the world’s largest oil processing facility at Abqaiq.

    But Washington has pointed the finger at Tehran, condemning an “act of war” which knocked out half of Saudi Arabia’s oil production and on Friday prompted US President Donald Trump to sketch out the latest in a series of economic sanctions against Iran.

    Abqaiq was struck 18 times while nearby Khurais was hit four times in a raid that triggered multiple explosions and towering flames that took hours to extinguish, Aramco officials said.

    “Many critical areas of the (Abqaiq) plant were hit,” an Aramco official said, pointing out the strikes had a high degree of precision.

    A towering stabilisation column, normally silver, had been charred black with a gaping hole blown in the shaft’s base.

    A separator plant also appeared ravaged in the raids and was surrounded by scaffolding and white-helmeted workers.

    “There are 112 shift workers here in normal times. Now 6,000 workers are involved in restoration work,” said Aramco official Khaled al-Ghamdi, pointing at damaged infrastructure.

    Aramco said it was shipping technical equipment from the US and Europe to speed up repairs.

    Aramco flew dozens of international journalists to the two sites to show it was speeding up repairs, giving rare access to the nerve centre of the world’s largest oil producer as it seeks to shore up investor confidence ahead of a planned initial public offering (IPO).

    “We will have production at the same level as before the strike by the end of this month — we are coming back stronger,” asserted Fahad al-Abdulkareem, an Aramco general manager, during the visit to Khurais.

    Badly warped thick metal piping — peppered with shrapnel during the aerial strikes — lay strewn around the area of the Khurais attack.

  • Full oil production to resume by end of month, says Saudi oil minister

    Full oil production to resume by end of month, says Saudi oil minister

    Saudi Arabia’s energy minister Abdulaziz bin Salman said that half of the crude oil production that was disrupted due to the weekend attack on Aramco’s oil facilities had been restored.

    Salman made this known at a news conference on Tuesday.

    “Over the past two days, we were able to contain the damage and restore more than half of the production that was disrupted due to the terrorist attack,” he said.

    He added that Aramco will fulfill all its commitments towards its clients this month through withdrawing from its stocks of crude oil.

    He expected that the production capacity will return to 11 million barrels per day by the end of September and to 12 million barrels by the end of November.

    “Not a single shipment to an international customer has been or will be missed or canceled as a result of these attacks,” Aramco’s CEO Amin Nasser told journalists in Jeddah.

    Drone attacks at the weekend targeted two facilities operated by Saudi state oil giant Aramco in the eastern province of Buqyaq, forcing the kingdom to halt about half its oil supplies afterwards.

    Earlier in the day, Saudi Arabia’s King Salman bin Abdelaziz said that the kingdom is able to deal with the consequences of the “cowardly attacks” that targeted the Saudi oil facilities.

    In a cabinet meeting, the king said the attacks not only target the kingdom’s vital facilities, but also the global oil supply and the stability of the world economy.

    The “kingdom will defend its lands and vital facilities, and is able to respond to such acts whatever their source is,” said the cabinet.

    Oil prices were sent soaring following the attacks, which were claimed by Houthi rebel fighters in Yemen who are backed by Iran.

  • Buhari condemns attacks on Saudi oil facilities

    Buhari condemns attacks on Saudi oil facilities

    President Muhammadu Buhari said Nigeria stands in solidarity with the Kingdom of Saudi Arabia, following drone attacks on the country’s oil facilities at Khurais and Abqaiq.

    The president stated this in a statement by his Senior Special Assistant on Media and Publicity, Malam Garba Shehu, in Abuja on Monday.

    “We in Nigeria once experienced attacks on our own oil facilities. Those who sought, by doing so, to undermine governments of the day did not succeed then – nor at any time.

    “The identities of those who sent the drones to attack the Saudi refineries, and from where, may not yet be known.

    ”Still, these attacks similarly represent economic warfare aimed at damaging a government, but, in reality, always and only damaging innocent citizens’ livelihoods: those with no place, nor cause, to be harmed.”

    The Nigerian leader maintained that those responsible for the attacks would succeed in creating more enemies rather than friends in the international community.

    “The attackers of Saudi Arabia will win no friends in the international community for their actions – whoever they may be, and however certain they be in their cause,” he added.

  • Oil exploration: Deal directly with us, Iko community tells SEEPCO

    Oil exploration: Deal directly with us, Iko community tells SEEPCO

    …alleges ill treatment by SEEPCO, NPDC

    Indigenes of Iko community, Eastern Obolo Local Government Area, Akwa Ibom State have vowed to use legal measures to resist any attempt by Sterling Energy Exploration and Production Company Nigerian Limited, SEEPCO to shortchange them by preventing Nigeria Petroleum Development Company, NPDC, from having a direct negotiation and agreement with them on all issues relating to the operations of the company in Utapate oil and gas field development project in the OML 13.

    Elders, women and youths of the community who staged a peaceful protest against alleged ill treatment by NPDC and SEEPCO, said the SEEPCO would not be allowed into the town to carry out it’s operations until it deems it fit to call for a dialogue and meet directly with them on the vexed issues.

    Protem Chairman of the community, Mr. Sampson Agba, Youth President, Mr. Evans Toyo, Woman Leader, Mrs. Amira Sampson, Elder David Ufford and others who spoke during the protest, accused the company of using a divide and rule tactics to cause problems in the community, insisting that it must carry out an Environmental Impact Assessment and respect their right to a GMoU.

    Meanwhile, speaking on their behalf at a world press conference, their solicitor and a renowned human rights Activist, Dr. Akpor Mudiaga-Odje, saidvNPDC in partnership with SEEPCO “are now in the process of operating in full, OML 13, which is substantially located within the precincts and boundaries of our clients Iko Community.

    “The Iko Community hosts the largest Oil Fields, that is, Utapate Oil Fields and a Flow-station in the OML 13 Cluster arrangements as established by the Nigerian Petroleum Development Company, NPDC.

    Mudiaga-Odje who addressed the press conference moments before the protest, said: “The issues at stake in this context are truly located within the present intention of Sterling Energy Exploration and Production Company Nigeria Limited to commence work with a view of operating OML 13 owned by the Nigerian Petroleum Development Company, NPDC.

    “President Muhammadu Buhari has graciously approved the commencement of operation of OML 13 with a view of raising the national crude oil output to Three Million Barrels per day by April, 2020.

    “The above was sequel to the payment of the sum of $3.15 billion US Dollars by Sterling Energy Exploration and Production Company Nigeria Limited to the Nigerian Petroleum Development Company for the operation of the OML 13.

    “Needless to accentuate that, the Iko Community hosts the largest Oil Fields, ie Utapate Oil Fields and a Flow-station in the OML 13 Cluster arrangements as established by NPDC.

    “Our clients had expected that the State Government, Eastern Obolo Local Government Council, SEEPCO and Naturals Oil Services Limited, NOSL will directly interface with the Iko Community on these issues and more, as duly represented by Our clients.

    “However, to our clients’ chagrin and utter dismay, SEEPCO decided on the contrary to set up a Committee for that purpose, and which said Committee does not represent in its true sense the interests of our clients, Iko Community.

    “Our clients have therefore resolved unequivocally and unanimously to henceforth deal directly with NPDC on this matter of the operations of OML 13 as they have completely lost faith in the sincerity of SEEPCO and NOSL on this Issue”.

  • Bayelsa oil communities reject oil companies’ MoU

    Bayelsa oil communities reject oil companies’ MoU

    Oil-bearing communities in Nembe Council Area of Bayelsa has described as fraudulent the Global Memorandum of Understanding (GMoU) drawn by the International Oil Companies (IOCs) operating in their areas.
    The communities said this at a stakeholders’ forum organised by the Bayelsa State Oil and Environmental Commission (BSOEC) in Yenagoa.
    The commission is holding a week-long interactive engagement with stakeholders in the eight local government areas of the state.
    The engagement is aimed at ascertaining the impact of oil spills on the environment, local communities, livelihoods and the health of the people.
    King Loveday Emina, the Amayanabo of Dorguama, said the GMoUs were deceitful, adding that most of the multinational oil companies were not ready to abide by the letters of the agreement.
    He said: “The GMoUs are mere fallacies. The oil companies are only deceiving the communities with the documents and will not be ready to clean up the environment when there is a spill or even provide necessary amenities for the people.
    “The GMoU has never worked in any community in Bayelsa state. When I was nominated by my community as one of the negotiators of the GMoU, I thought we would sit down and discuss.
    “Unfortunately, the Shell Petroleum Development Company (SPDC) had already prepared a document for us to read and sign. They said we should not ask for anything other than what was in the document.
    “We were not allowed to state our problems because they claim to know them more than us. Nothing has since been done by SPDC and our people are suffering.
    “Our youths are jobless and are now resorting to militancy and other vices that are inimical to the society. Poverty is really biting us.
    “The night life that we used to enjoy through gathering together for folktales has gone because of the fear of attack by our own people.”
    A Community Leader from the Okoroma Clan, Mr Derry Patrick, accused the oil companies of using the revenue being derived from the oil exploration in their area to develop other areas, while the community where oil was first drilled in Nigeria was totally neglected.
    “Our children are dying from pollution and suffering different kinds of ailments. Our rivers are polluted.
    “Our fishermen will go out for fishing at night and come back the following morning with nothing because the fishes are all dead,” he said.
    Another Community Leader from Fantou community, Chief Michael Olali, said Federal Government’s presence was not felt in spite of the abundance of oil in the area.
    He said that the people of Nembe Creeks would soon stage a protest against the government and all the oil companies operating in the area.
    “We live under leaking roofs and in mud houses. We even bathe in polluted rivers because we lack basic amenities. Our land is no more useful for farming because of oil exploration and spills.
    “Our due should be given to us. Our people are not employed in the companies, even as cleaners and drivers. There are also no opportunities for scholarship from the companies,” he said.
    Responding, the Chairman of the commission, Dr John Sentamu, expressed his commission’s commitment to finding out solutions to the myriad of challenges.
    Sentamu, who is also the Archbishop of York noted that most of the complaints were not new but regretted that they had yet to be properly addressed.
    The chairman, who was represented by a commissioner, Dr Kathryn Nwajiaku-Dahou, promised that all the grievances expressed by the communities would be reflected in the commission’s report and followed up with serious advocacy.

  • Oil bunkering: 5 suspects end up in EFCC net, as court jails 3 oil thieves

    Oil bunkering: 5 suspects end up in EFCC net, as court jails 3 oil thieves

    Justice M. L. Abubakar of the Federal High Court sitting in Port Harcourt, Rivers State has convicted and sentenced Ibrahim Abbah and Isah Magaji to six months imprisonment for conspiracy and illegal dealing in petroleum products.

    In the same court, another judge, Justice I. M Sani convicted and sentenced Yeri Ebikake to a fine of N100,000 (One Hundred Thousand Naira) only for dealing in petroleum products without being licensed.

    Abba and Magaji were arraigned on Monday, June 24, 2019 by the Economic and Financial Crimes Commission, EFCC, Port Harcourt’s Zonal Office on one-count charge bordering on illegal dealing in petroleum products, contrary to Section 4 (1) of the Petroleum Act, Cap P10 Laws of the Federation of Nigeria (LFN) 2004 and punishable under Section 4 (6) of the same Act.

    The count charge read: “That you Ibrahim Abah and Isah Magaji on or about the 14th of January, 2019 at East West Road, Port Harcourt, Rivers State within the jurisdiction of this Honourable Court did distribute petroleum products without license to Wit: about 20,000 litres conveyed in a Truck with Registration Number BAM 64 XA and thereby committed an offence contrary to Section 4(1) of the Petroleum Act, Cap P10 Laws of the Federation of Nigeria (LFN) 2004 and punishable under Section 4(6) of the same Act”.

    They pleaded ‘”guilty” to the charge when read to them.

    In view of their plea of ‘guilty’, Prosecuting Counsel, M. T. Iko urged the court to convict and sentence the defendants accordingly.

    Justice Abubakar, convicted and sentenced the defendants to six (6) Months imprisonment with an option of fine of One Hundred Thousand Naira (N100,000) and also ordered that the 20,000 litres of the crude oil conveyed in the Truck with Registration Number BAM 64 XA be forfeited to the Federal Government.

    Abbah and Isah’s journeys to prison began when men of the Nigerian Army, 6 Division, Port Harcourt, intercepted them in a truck loaded with illegal petroleum products.

    Meanwhile, the Nigerian Navy, through the Nigerian Navy Ship Pathfinder, NNS, Port Harcourt, Rivers State on Wednesday, June 26, 2019 handed over a Wooden Boat and 5 suspects arrested for illegal oil bunkering to the Economic and Financial Crimes Commission, EFCC, Port Harcourt’s Zonal Office, for further investigation and possible prosecution.

    The suspects: Joseph Dickson; Daniel Ofoni; Eric Enock, Allison Pereebiye and George Seidu were arrested by the NNS Pathfinder’s patrol team around Dutch Island Creek, Port Harcourt. The Naval Handing Over Officer, Captain A. T. Ebo said that the suspects were arrested on June 12, 2019 and found on them a Wooden Boat laden with products suspected to be illegally refined Automotive Gas Oil, (AGO).

    Principal Detective Superintendent Olayinka Macaulay who received the suspects and Boat on behalf of the EFCC, assured the NAVY of diligent investigation and possible prosecution of all the suspects.

  • Russia bans oil exports to Ukraine

    Russia bans oil exports to Ukraine

    Russian Prime Minister, Dmitry Medvedev, on Thursday said Russia has banned exports of oil and petroleum products to Ukraine, as well as certain Ukrainian imports.

    Relations between the former Soviet neighbours have been at an all-time low since Russia’s 2014 annexation of Ukraine’s Crimea region in retaliation for Kiev ousting its Kremlin-backed president.

    Medvedev cast the new sanctions, which include bans on importing certain metals, consumer goods and equipment from Ukraine, as counter-measures for Ukrainian sanctions against Russia.

    “We are forced to protect our interests and strike back,’’ Medvedev said at a meeting of the cabinet of ministers, Russian state news agency, TASS reported.

    “Those Ukrainian imports that are now banned had amounted to about $250 million in 2018,’’ Medvedev added.

  • Oil slips to $71, hit by talk of higher OPEC production

    Brent oil slipped to around 71 dollars a barrel on Tuesday, pressured by expectations of higher U.S. inventories and concern about Russia’s willingness to stick with OPEC-led supply cuts.

    Analysts on average expect U.S. crude stockpiles to have risen by 1.9 million barrels last week, the fourth straight increase.

    The first of this week’s stockpile reports is due at 2030 GMT from the American Petroleum Institute.

    “We have already seen these inventories going higher in the last week’s print,” said Naeem Aslam, Chief Market Analyst at TF Global Markets in London.

    “The rising inventory data has raised many questions for investors – no one wants to see the oil glut again.”

    Brent crude, the global benchmark, was down 12 cents at 71.06 dollars a barrel at 0801 GMT. U.S. West Texas Intermediate (WTI) crude gained six cents to 63.46 dollars.

    While OPEC-led supply cuts have boosted Brent by more than 30 per cent this year, gains have been limited by worries that slowing economic growth could weaken demand for fuel.

    Oil also fell on Monday after comments from Russia raised concern that the OPEC-led supply-cutting pact may not be renewed.

    Russia and the producer group may decide to boost output to fight for market share with the U.S., TASS news agency сited Finance Minister Anton Siluanov as saying.

    The Organisation of the Petroleum Exporting Countries and other producers including Russia, an alliance known as OPEC+, have been cutting output since Jan. 1.

    They will decide in June whether to continue the arrangement.

    “There is a growing concern that Russia will not agree on extending production cuts and we could see them officially abandon it in the coming months,” said Edward Moya, Senior Market Analyst at OANDA.