Energy/Oil & Gas

NNPC Wraps Up Funding Arrangements On AKK Gas Project

NNPC Wraps Up Funding Arrangements On AKK Gas Project

Business, Energy/Oil & Gas, Inside, News
The Nigerian National Petroleum Corporation (NNPC) yesterday said it was wrapping up funding arrangements on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. Dr. Maikanti Baru, Group Managing Director of NNPC, who disclosed this yesterday while speaking at the Nigerian Day during the 30th edition of Gas Technology Conference in Barcelona, Spain, explained that tremendous progress was recorded towards securing funding for the project during the last visit of President Muhammadu Buhari to Beijing, China. Dr. Baru, who was represented at the event by NNPC Chief Operating Officer, Gas & Power, Engr. Saidu Mohammed, revealed that the Corporation had gone far in negotiating the terms of funding as well as the best payback structure for the project, affirming that the financial partners...
Nigeria’s Crude Export to US May Hit Zero

Nigeria’s Crude Export to US May Hit Zero

Business, Energy/Oil & Gas, Inside, News
The imports of Nigerian crude oil and other West African grades to the United States look set to plunge to nearly zero amid growing shale oil production in the North American country, our correspondent has learnt. The US Atlantic Coast imports of West African crude oil are expected to decline due to harsh arbitrage conditions made difficult by the large premium of ICE Brent futures over West Texas Intermediate, as well as strong premiums for WAF grades. According to S&P Global Platts, Traders tracking these grades exported in the US expect WAF imports to the USAC to fall to virtually zero. The USAC from May to August imported an average of roughly 24 million barrels a month, of which 8.7 million barrels were from West Africa, data from the Energy Information Administration com...
FG to Buy N17bn Equipment to Track Fuel Distribution

FG to Buy N17bn Equipment to Track Fuel Distribution

Business, Economy, Energy/Oil & Gas, Inside, News
The Federal Executive Council on Wednesday approved the sum of N17bn for the installation of mechanism under the Petroleum Equalisation Fund to monitor fuel distribution and eliminate subsidy fraud. The Minister of State for Petroleum Resources, Ibe Kachikwu, disclosed this to State House correspondents at the end of the council’s meeting presided over by the Acting President, Yemi Osinbajo, at the Presidential Villa, Abuja. He said although the project was for three years, it would start yielding results by the time the 2020 budget would be prepared next year. The minister explained that the device would also put to an end the conflicting figures on the nation’s actual fuel consumption per day. He said, “The narrative is that we have all struggled with this whole subsidy payme
Dangote Refinery to Save $7.5bn Through Import Substitution

Dangote Refinery to Save $7.5bn Through Import Substitution

Business, Energy/Oil & Gas, Inside, News
The construction of the 650,000 barrels of crude oil per day Dangote Refinery is expected to help Nigeria save over $7.5 billion through import substitution. The project, will put Nigeria on the global map as major oil and gas hub in Africa, the Group Executive Director, Devakumar Edwin, has hinted. Nigeria currently imports large amount of its petroleum products due to the inability of refineries to utilize their full capacity. For example, the National Bureau of Statistics (NBS) latest data showed that the downstream of the Nigeria oil and gas sector imported N812billion of Premium Motor Spirit (PMS) during the first quarter of 2018. According to NBS, the country imported N349.45 billion worth of PMS in March 2018, representing the highest volume of petroleum product import dur...
OPEC Oil Production Climbs As Saudi Arabia Pumps More

OPEC Oil Production Climbs As Saudi Arabia Pumps More

Business, Energy/Oil & Gas, Inside, News
Crude oil production from the Organisation of Petroleum Exporting Countries increased last month as Saudi Arabia pumped near-record volumes to make good on a pledge to consumers that demand would be met. The kingdom’s oil production grew by 230,000 barrels a day in July to 10.65 million barrels per day. This is just shy of an all-time peak reached in 2016, according to Bloomberg’s survey of analysts, oil companies and ship-tracking data. Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total production from the Organisation of Petroleum Exporting Countries by 300,000bpd, offsetting losses from a spiraling economic collapse in Venezuela, political clashes in Libya and the onset of US sanctions against Iran. The group’s 15 members, which now include Congo,
Oil Price Tumbles to $72 Per Barrel

Oil Price Tumbles to $72 Per Barrel

Business, Energy/Oil & Gas, Inside, News
Global oil benchmark, Brent crude, fell further on Monday amid talk of a possible release from global crude reserves, according to data from the International Monetary Fund showing a slowdown in global economic growth and the potential for United States waivers on Iran oil sanctions. Brent, against which Nigeria’s oil is priced, dropped by $3.18 to $72.15 per barrel as of 8:30pm Nigerian time. “The market is on the defensive because of the potential release of oil from global reserves,” said a senior market analyst at Price Futures Group, Phil Flynn, according to MarketWatch. The President Donald Trump administration is considering a release from the US Strategic Petroleum Reserve, though a draw down from the stockpile of crude is not imminent, The Wall Street Journal reported on
Refineries Lose N33.5bn in Three Months — NNPC

Refineries Lose N33.5bn in Three Months — NNPC

Business, Economy, Energy/Oil & Gas, Inside, News
The nation’s refineries lost the sum of N33.53bn in the first three months of this year, the latest financial and operations report of the Nigerian National Petroleum Corporation obtained by our correspondent showed. The plants are the Warri Refining and Petrochemical Company, Port Harcourt Refining Company and Kaduna Refining and Petrochemical Company. The Kaduna refinery did not process crude in February and March, while those in Warri and Port Harcourt sat idle in January and March, respectively. The KRPC lost N10.62bn in the first quarter; the WRPC posted a deficit of N11.87bn; while the PHRC lost N11.16bn, according to the report. The three refineries processed 204,877 metric tonnes of crude oil in January; 236,901 MT in February, and 271,215 MT in March. In March, the
NNPC’s Profit Drops by N5bn in One Month

NNPC’s Profit Drops by N5bn in One Month

Business, Economy, Energy/Oil & Gas, Inside, News
The decline in the cumulative performance of Nigeria’s refineries reduced the group profit of the Nigerian National Petroleum Corporation by N5bn, latest figures in the oil firm’s financial and operations report have revealed. In the just released March 2018 operations report of the NNPC, the corporation made an operating surplus of N11.7bn, incurred a total expense of N354.6bn and generated a revenue of N366.3bn for the month under review. It had recorded an operating surplus of N16.7bn, a total expense of N357.6bn and revenue of N374.4bn in the preceding month of February 2018. A comparative analysis of figures from the oil firm’s reports for the two months, showed that the corporation’s profit dropped in March by N5bn, its total expenditure reduced by N3bn, while its revenue al
Chinese Oil Firm to Invest $3bn in Nigeria

Chinese Oil Firm to Invest $3bn in Nigeria

Business, Economy, Energy/Oil & Gas, Inside, News
The management of China National Offshore Oil Corporation has expressed its readiness to invest additional $3bn in its existing stakes in offshore oil and gas operations in Nigeria. According to the Chief Executive Officer of the Beijing-based corporation, Yuan Guangyu, the investment in Nigeria is the most strategic and important overseas business undertaking of the firm. Guangyu stated this when he led a team of the CNOOC top executives to the corporate headquarters of the Nigerian National Petroleum Corporation in Abuja, according to a statement by the Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, Ndu Ughamadu, on Sunday. Guangyu said CNOOC had invested over $14bn in its Nigerian operations and called on the management of the NNP...
Seplat Plans More Investment, Eyes Asset Acquisition

Seplat Plans More Investment, Eyes Asset Acquisition

Business, Energy/Oil & Gas, Inside, News
Seplat Petroleum Development Company Plc, an indigenous independent oil and gas firm, has said it has optimised its capital structure to enable it invest more and continue to pursue its growth opportunities. The Chief Executive Officer, Seplat, Mr Austin Avuru, who stated this at the firm’s ‘Facts behind the Figures’ presentation at the Nigerian Stock Exchange, disclosed that the company was targeting  opportunities to acquire more assets. Avuru said, “For us, almost everything we do, both in terms of emphasising our corporate governance structure and culture, and how we manage our assets and plan our work programme and budgets, is all about being a company that will consistently deliver natural gas into the domestic market and crude oil for exports.” He said the firm would contin