TheNewsGuru

Tag: OPEC

  • Nigeria loses $2b annually to biometric duplication

    Federal Government may be loosing $2 billion annually to the duplication of biometric collection by government agencies, an Information technology expert has said.

    An official of the Information Technology unit of the OPEC Fund for International Development (OFID), Jacob Edo, disclosed this during a press conference to herald the launching of a digital transformation book to be held at the Nixon Luxury, Abuja.

    The expert pointed out that funds used in the management of infrastructure for the biometrics including the money paid to consultants may have accrued to the lump sum.

    Edo lamented the proliferation rate of data collection across the country, disclosing that about 23 agencies of government that are not inter-connected are currently collecting biometrics leading to duplication and multiplication of government effort and policy collision.

    He decried the way digital services are rendered in the country as most of the agencies are doing it for themselves and none of them are interconnected, stressing the need for a synergy among the agencies such that data collected would be the same in all the agencies.

    Noting the recent statistics that showed the country may need $15million to keep the government moving, he said if the country does not start cutting cost and doing the right thing, government may have to be borrowing to pay salaries, which is not sustainable.

    He said that some of the challenges have been itemized into three parts, including reforms in the Nigerian Civil Service/Public service, looked into the public service in other developed country especially Kenya who are far ahead in the digitalization of their economy while the third part talked about what could be done to make the public service more efficient.

    He said to improve easy access and reduce prices of data services, there is a need for government to invest in fibre reel adding that the fibre reel would bring data closer to the people and it is not too expensive

  • OPEC appoints Nigeria’s Olusegun Adekunle board chairman

    OPEC appoints Nigeria’s Olusegun Adekunle board chairman

    The Organisation of Petroleum Exporting Countries (OPEC) on Friday, announced the appointment of Mr Olusegun Adekunle as the alternate Chairman of the Economic Commission Board.

    ​This is contained in a statement released in Abuja on Friday by Idang Alibi, Director Press, Ministry of Petroleum Resources.

    Alibi said: “In a welcome development, OPEC announced the appointment of Nigeria’s Mr Olusegun Adekunle as the Alternate Chairman of the 127th OPEC Economic Commission Board.”

    ​The statement quoted the Minister, ​Dr Ibe Kachikwu​, as expressing
    delight at the development​.

    Kachikwu congratulat​ed​ Adekunle and urg​ed ​​him ​”​to continue to work hard to justify the appointment and make Nigeria proud.’’

    Adekunle was before this appointment Nigeria’s representative to the organisation.

    The Commission is saddled with the responsibility of writing reports and making recommendations to the Conference of OPEC Oil Ministers on oil prices and other economic issues.

    Adekunle was before his chairmanship appointment Nigeria’s representative to the organisation.

    The Commission is saddled with the responsibility of writing reports and making recommendations to the Conference of OPEC Oil Ministers on oil prices and other economic issues.

     

  • JUST IN: OPEC extends oil output cut by 9 months to check glut

    JUST IN: OPEC extends oil output cut by 9 months to check glut

    The Organisation of Petroleum Exporting Countries, OPEC, on Thursday in Vienna unanimously agree to extend cuts in oil output by nine months to March 2018 to further battle a global glut of crude.

    OPEC delegates said the cuts were likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with OPEC from January.

    OPEC’s cuts have helped to push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of whom rely heavily on energy revenues.

    Oil’s earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries, including Venezuela and Nigeria.

    The price rise this year has spurred growth in the U.S. shale industry, which is not participating in the output deal, thus slowing the market’s rebalancing with global crude stocks still near record highs.

    Brent crude in early trading fell 1.3 per cent to around $53 per barrel as market bulls were disappointed OPEC would not deepen the cuts or extend them by as long as 12 months.

    OPEC oil ministers are, however, continuing their discussions in Vienna after three hours of talks. Non-OPEC producers were scheduled to meet OPEC later in the day.

    TheNewsGuru.com recalls that in December 2016, OPEC agreed its first production cuts in a decade and the first joint cuts with non-OPEC, led by Russia in 15 years.

    The two sides decided to remove about 1.8 million barrels per day from the market in the first half of 2017, equal to 2 per cent of global production.

    Despite the output cut, OPEC kept exports fairly stable in the first half of 2017 as its members sold oil from stocks.

    The move kept global oil stockpiles near record highs, forcing OPEC first to suggest extending cuts by six months, but later proposing to prolong them by nine months and Russia offering an unusually long duration of 12 months.

    “There have been suggestions (of deeper cuts), many member countries have indicated flexibility but … that won’t be necessary,” Saudi Energy Minister Khalid al-Falih said before the meeting.

    He added that OPEC members Nigeria and Libya would still be excluded from cuts as their output remained curbed by unrest.

    Falih also said Saudi oil exports were set to decline steeply from June, thus helping to speed up market rebalancing.

    OPEC sources have said the Thursday meeting will highlight a need for long-term cooperation with non-OPEC producers.

     

     

    NAN

  • OPEC deal: Nigeria not opposed to production cut – Kachikwu

    OPEC deal: Nigeria not opposed to production cut – Kachikwu

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said Nigeria is not against the 9 month extension of the deal reached late last year in which the Organisation of Petroleum Exporting Countries, OPEC, and 11 non-members agreed to cut oil output to curtail the supply glut in the market and revive prices.

    TheNewsGuru.com reports that the oil producers agreed in December to cut output by 1.8 million barrels per day for six months from January 1, 2017. But Nigeria and Libya were exempted from the cuts because their production had suffered disruptions on the back of unrest and militant attacks.

    TheNewsGuru.com reports that OPEC is meeting in Vienna, Austria, today to consider whether to prolong the original deal reached in December.

    However, Kachikwu, in an interview with Bloomberg TV ahead of the meeting, said Nigeria was not opposed to joining the production cuts in a bid to prop up oil prices.

    He, however, said the nation’s oil production was still hovering around 1.5 million bpd, down from around 2.2 million bpd, as a lot of the pipelines affected by militant attacks had yet to be repaired.

    “Our numbers don’t justify us joining the pack yet. But quite frankly when we do, the pressure is going to get on for us to join the cut team. And Nigeria is not averse to that because I think everybody needs to make the necessary sacrifice to help the price stability on a worldwide basis,” the minister said.

    Kachikwu said, “Certainly, I support the nine months’ (extension) straight up because I think it gives a longer gestation period to see how prices move, how stocks stay, and how the reserves in most countries are holding up.

    “I am not as aggressive as some of my colleagues are. I am looking at rebalancing more in the first quarter of next year. That is why I am more supportive of the nine months’ agenda.”

  • OPEC, non-OPEC producers committed to restoring market stability – Barkindo

    Secretary-General of the Organization of the Petroleum Exporting Countries, OPEC, Mohammad Barkindo on Wednesday said that all oil producers taking part in a supply-cut pact are committed to bringing global inventories down to the industry’s five year average and restoring stability to the market.

    Barkindo, speaking in the United Arab Emirates, said compliance data in March is showing better conformity by the oil producers with the agreement than in February.

    OPEC and non-OPEC producers agreed in December to cut supplies for six months, helping lift oil prices to about 55 dollars a barrel after a two-year slump.

    OPEC will review policy for the second half of this year at a May 25 meeting.

    Barkindo would not say whether the agreement will be extended for another six months, but that any decision taken would be in the interest of all producing and consuming countries.

    TheNewsGuru.com reports that on Dec. 10, 2016, OPEC won the backing of countries outside the oil cartel to join supply cuts for the first time since 2001, overcoming the final major obstacle for a global agreement to curb output.

    The agreement in Vienna was designed to speed the end of the worst oil downturn in a generation by mopping up excess supplies and boost prices, providing some relief to resource-rich nations whose economies have taken a big hit.

    Prices rallied by 15 per cent since Nov. 30, 2016 when Opec’s 13 members led by the group’s largest producer Saudi Arabia, agreed to curb output by more than one million barrels a day.

     

     

    NAN

     

  • We lost $1trn to dwindling oil prices – Barkindo

     

    The Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Dr Mohammed Barkindo, on Monday disclosed that the organisation lost $1 trillion to oil price fluctuation.

    Barkindo, who is in Nigeria on a four-day working visit, said this at a world news conference organised by the Minster of State for Petroleum, Dr Ibe Kachikwu.

    According to him, the downturn, which lasted from 2014 to January 2016, meant that OPEC member countries could not earn about $1 trillion of oil revenue.

    He said the industry further lost $1 trillion in terms of deferred projects and outright cancellation of projects across its entire value chain.

    “We need consistent investments in order to maintain current production and take care of reserves and secure future supplies,” he said.

    He said it was agreed that non-members of OPEC be invited to build a platform of 24 producing countries to agree on a joint supply agreement seeking to adjust about 1.8 million barrels a day.

    “For the first time in history we were able to build a platform of 24 producing countries within six months in order to address the stock overhang which has been the variable to the supply equation that had sent this market off balance since 2014.

    “Today, I can confidently report that those three historic events have altogether changed the energy landscape and turned a historic page in oil for good.

    “We are on the course of pulling this industry out of the worst recession that we have entered to restore stability to the market on a sustainable basis that will allow investments to come back on a continuous basis,” he said.

    He commended the government for staying afloat during the price-crash, calling the period “the worst energy circle in recent memory’’.

    “ Some of us who have been around for quite a while have witnessed all these five circles and it is a consensus in terms of the gravity of this circle, prices have crashed by over 80 per cent from the fall of 2014 to January 2016.

    “How you survived as a government and as institutions under this great industry remains a miracle.

    “I visited all other countries and I have seen how they struggle but you have weathered the storm, I think the worst is behind us.’’

    He said the agreements reached by the cartel and non-OPEC members in Algiers and Vienna during their meetings in November and December 2016 were lifesaving measures as they had overcome market challenges.
    NAN

  • OPEC Sec-Gen, Barkindo arrives Nigeria on 4-day visit

     

    The Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Dr Mohammad Barkindo has arrived in Nigeria on Sunday to begin a four-day working visit.

    Barkindo, who is also in the country for the 16th Nigeria Oil and Gas Conference and Exhibition (NOG), will be meeting with Acting President Yemi Osinbajo, Minister of State Petroleum Resources Dr Ibe Kachikwu, among other stakeholders, to discuss market dynamics in the sector.

    In an interview with newsmen on Sunday in Abuja, the NNPC Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, said the fallout of Barkindo’s visit will be felt in the sector for a long time.

    “Yes, it is a big event that will affect our markets positively. He is leading an eight-man delegation and his advance team arrived earlier and will talk on the oil and gas market outlook.

    “”I believe whatever policies put in place here will be strictly adhered to and give our economy the needed boost. I’m excited. It’s a big event,” Ughamadu said.

    At an earlier news briefing, Ughamadu said Kachikwu would give a keynote address on Repositioning the Oil and Gas Sector’ while the NNPC’s Group Manaiging Director, Dr. Maikanti Baru would speak on “`Commercialising the NNPC”.

    The conference, which is organised by the CWC Consulting, begins on Feb. 27 and ends on March 2.

    More than 6,000 delegates, 250 exhibitors, from over 20 countries, many oil and gas experts and hundreds of government representatives from different countries are expected at the conference.

     

    NAN

  • 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.

  • Equatorial Guinea presents offer to join OPEC, agrees to production cuts in 2017

    Equatorial Guinea presents offer to join OPEC, agrees to production cuts in 2017

    The Ministry of Mines and Hydrocarbons of Equatorial Guinea announces that it has submitted its interest to join the Organization of Petroleum Exporting Countries, OPEC in 2017.

    The country’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang, traveled to Vienna on January 20 to meet OPEC officials with a proposal to present the Government of Equatorial Guinea’s offer to become the 14th member of the cartel.

    With 32.5 million barrels per day of output projected this year, OPEC is the world’s largest organization of oil producers. The Minister’s trip to Vienna follows the Fourth Africa-Arab Summit which hosted several OPEC members in Malabo in November 2016.

    “For decades, Equatorial Guinea has achieved a sterling track record as a dependable supplier of petroleum to consumers in all corners of the world. We firmly believe that Equatorial Guinea’s interests are fully aligned with those of OPEC in serving the best interests of the industry, Africa and the global economy,” said Obiang.

    On December 10, 2016, Equatorial Guinea agreed to join 10 other non-OPEC countries to reduce 558,000 barrels per day of total oil production in 2017. Equatorial Guinea’s share of the cut is 12,000 barrels per day. Despite a two-year sustained slump in oil prices, Equatorial Guinea has maintained liquid output levels at a competitive level.

    “There is a consensus amongst producers that an oversupply of oil has been dragging down the price of the barrel,” the Minister said. “Equatorial Guinea is doing its part to ensure stability in the market and that the industry continues to invest in exploring and developing our resources.”

    TheNewsGuru.com reports that Equatorial Guinea is the third largest oil and gas producer in sub-Saharan Africa. Its $10.6 billion of annual oil and gas exports account for 95 percent of the country’s total exports, with shipments sold every day to China, India, Japan, Korea and many other countries.

  • NSE market capitalization appreciates as OPEC cut output oil deal

    Activities on the Nigerian Stock Exchange (NSE) on Wednesday sustained positive growth with the market capitalisation appreciating by N116 billion due to global oil jump on OPEC output deal.

    The market capitalisation, which opened at N8.970 trillion, inched N116 billion or 1.29 per cent to close higher at N9.086 trillion.

    Also, the All-Share Index appreciated by 336.48 points or 1.29 per cent to close at 26,407.64 against 26,071.16 recorded on Tuesday.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed investors’ positive sentiment to OPEC and non-OPEC countries agreement to cut oil production and supply in the first quarter of 2017.

    Omordion said that the development led to recent rally being experienced by petroleum stocks with expectations that the production cut would support oil price stability above 52 dollars per barrel.

    Seplat for the second consecutive day topped the gainers’ chart, growing by N25.15 to close at N400 per share.

    Forte Oil trailed with a growth of N11.99 to close at N129.11, while Dangote Cement rose by N3.02 to close at N165.02 per share.

    Glaxosmithkline gained N1 to close at N15 and International Breweries was up by 89k to close at N18.94 per share.

    On the other hand, Nigerian Breweries led the laggards’ table with a loss of N1.96 to close at N143.05 per share.

    Unilver came second with a loss of N1.14 to close at N43.84, while Mobil Oil dipped N1 to close at N299 per share.

    Beta Glass dropped 99k to close at N32, while Champion Breweries declined by 11k to close at N2.50 per share.

    Investors staked N4.28 billion on 205.40 million shares exchanged in 3,275 deals.

    This was in contrast with a turnover of 376.69 million shares valued at N2.41 billion transacted in 2,885 deals on Tuesday.

    The banking stocks remained the toast of investors with UBA leading the activity chart with 54.69 million shares worth N235.89 million.

    Diamond Bank sold 22.01 million shares valued at N419.33 million and Zenith Bank accounted for 21.19 million shares worth N306.67 million.