Category:

Exxon Mobil to drill offshore post-Ebola Liberia in 2017

A Exxon Mobil gas station is seen in Encinitas, California October 28, 2014. Exxon Mobil Corp said it plans to start drilling in Liberia in 2017, in what President Ellen Johnson Sirleaf said was a sign of economic recovery after the Ebola epidemic. The West African country produces no oil but has awarded a number of exploration blocs offshore, following the examples of Gulf of Guinea neighbors Ghana and Nigeria. Exxon Mobil intends to start drilling late 2017, Steven Buck, its country manager for Liberia and Ivory Coast, said. The U.S. oil major signed for bloc 13 in 2003 but put the project on hold due to the Ebola epidemic. The worst known outbreak of the hemorrhagic fever killed 4,800 people in the country and deterred investors. Liberia was declared Ebola-free in September but Johnson Sirleaf has said it will take two years to regain its economic footing. "I […]

Posted On : Published By : Tom Whipple
Category:

Nigerian crude oil values plummeting on limited buying interest

The Nigerian crude oil market remains under pressure — many grades have lost around $1/b in value since the start of October — as an abundance of sweet crude and high freight rates have failed to excite interest from refinery buyers. With traders also saying Nigerian grades account for the bulk of the estimated 65 million barrels or so still unsold from November and December West African crude programs, flagship Qua Iboe hit a 10-month low Wednesday with smaller grade Escravos at a 6-1/2 year trough, Platts data showed. "There is a big overhang, with such cheap Urals and Azeri [Light in Europe] for instance, European refineries can take closer grades and that is clearly affecting WAF grades," one European refinery trader said. Qua Iboe was assessed Wednesday at Dated Brent plus $0.20/b, the lowest since January 13 and down from Dated Brent plus $1.25/b at the start of […]

Posted On : Published By : Tom Whipple
Category:

Leaked Emirati Emails Could Threaten Peace Talks in Libya

Photo Libyans demonstrated in Benghazi last month against a peace deal brokered by Bernardino Léon, a United Nations mediator. Credit Abdullah Doma/Agence France-Presse — Getty Images CAIRO — The United Arab Emirates was shipping weapons to favored belligerents in Libya over the summer in violation of an international arms embargo while simultaneously offering a highly paid job to the United Nations diplomat drafting a peace accord there, leaked Emirati emails show. The leaked correspondence is threatening to undermine months of Libyan talks by tarring the diplomat with an apparent conflict of interest. The emails also open a new window into the hidden and contradictory machinations of regional players like the United Arab Emirates that have helped inflame the fighting even as their diplomats say they support a peaceful solution. “The fact of the matter is that the U.A.E. violated the U.N. Security Council Resolution on Libya and continues to […]

Posted On : Published By : Tom Whipple
Category:

El Nino threatens ‘millions in east and southern Africa’

Some 11 million children are at risk from hunger, disease and water shortages in east and southern Africa because of the strengthening El Nino weather phenomenon, the UN children’s charity has said. It has caused the worst drought in more than 30 years in Ethiopia, Unicef said. Its effects could also be "particularly harsh" in Somalia, amid fears of flooding, it warned. El Nino is caused by Pacific Ocean warming. "The weather phenomenon, among the strongest on record, is likely to cause more floods and droughts, fuel Pacific typhoons and cyclones and affect more areas if it continues strengthening as forecast over the coming months," Unicef said in a statement . It said 8.2 million people in Ethiopia faced food insecurity, while an estimated 350,000 children needed treatment for severe acute malnutrition. "To make matters worse, the weather phenomenon may also bring flooding to some areas of the country […]

Posted On : Published By : Tom Whipple
Category:

Tullow Cuts Upper End of Forecast for West African Oil Output

Tullow Oil Plc cut the upper end of its 2015 forecast for West African oil production after operations in Ghana were affected by a gas-compression fault earlier this year. Output from the region will be 66,000 to 67,000 barrels of oil equivalent a day this year, the London-based company said Wednesday in a statement. That compares with guidance for as much as 70,000 barrels a day in July. Exports from Ghana’s Jubilee project, Tullow’s largest producing field, were halted on July 3 for about a month for repairs to the floating production vessel. The company, like other energy producers around the world, has also suffered from a 40 percent slump in crude prices over the past year amid a global supply glut. Its shares have tumbled more than 50 percent in the period. Another major development off Ghana, the Tweneboa-Enyenra-Ntomme — or TEN — project, is on schedule to […]

Posted On : Published By : Tom Whipple
Category:

Nigerian Crude Oil to Be Sold Directly to Refiners

Henceforth, the Nigerian National Petroleum Corporation (NNPC) will sell crude oil directly to refiners and purchase refined oil products from them, a measure intended to cut out middlemen and curb graft from the oil sector. The spokesman of NNPC, Ohi Alegbe in a statement on Tuesday, November 3, 2015 said the move was "designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange" that have characterized the hitherto swap scheme, Reuters reported. Associated Press further cited him as explaining that the decision was made after a screening of previously used and prequalified petroleum product importers revealed almost all the 34 international and 10 local companies were middleman businesses. NNPC had shortlisted 44 companies for the swap agreements for 2016, also called "offshore processing arrangements" (OPAs), but said most of them did not directly operate refineries, Reuters said. Getting oil products from such companies, NNPC […]

Posted On : Published By : Tom Whipple
Category:

East Libya Seeks to Grab Oil Contracts Amid Fight With Rivals

Libya’s internationally recognized government in the east of the country asked oil companies to contact its National Oil Corp. to review loading contracts, amid a battle to snatch buyers from the rival administration in the west of the divided country. Oil companies should contact the marketing department of the NOC administration in the eastern city of Bayda by Nov. 11 to review loading contracts, according to an e-mailed statement from the elected government. The eastern government will take legal action against any company that deals with any authority other that the NOC administration in Bayda, it said. “Any contracts brokered with any other parties than the bodies authorized by the legal National Oil Corp. are considered legally null and void,” according to the statement. Libya, with Africa’s largest oil reserves, pumped about 1.6 million barrels a day of crude before a 2011 rebellion ended Muammar Qaddafi’s 42-year rule. Like […]

Posted On : Published By : Tom Whipple
Category:

Uganda: Kenya Shrugs Off Uganda Plan to Build Oil Pipeline Via Tanzania

Nairobi — Kenya has shrugged off fears over a decision by neighbouring Uganda to consider building a crude oil pipeline through Tanzania. Kenya brushed aside concerns that Uganda’s plan, if it proves cheaper than the alternatives, would scuttle its infrastructural plans for its own oil pipeline. Acting Transport Cabinet Secretary James Macharia told the Nation on Wednesday that while Kenya is "keenly keeping a close watch on the unfolding events in Uganda", it would go ahead with its own infrastructural plans "undeterred". "We are going according to our own plans. Nothing has changed," said Mr Macharia in Nairobi. Last month, it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route. Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements. The […]

Posted On : Published By : Tom Whipple
Category:

Italy’s Eni reviews renewables for Algeria

Italian energy company Eni, the second-largest producer in Algeria, said it was reviewing renewable energy options in the country. Photo by photostock77/Shutterstock ALGIERS, Algeria, Nov. 4 (UPI) — Italian energy company Eni said its representatives met with Algerian officials to discuss an energy mix that includes plans for a renewable energy industry. Claudio Descalzi, the chief executive officer at Eni, joined executives from state-owned energy company Sontrach, Algerian Energy Minister Salah Khebri and Prime Minister Abdelmallek Sellel to outline future strategies in the country . "Among other things, they discussed on the energy mix issue and Eni offered its willingness to consider projects in partnership for the development of renewable energy," the Italian company said in a statement. Algeria has the 10th largest natural gas deposits in the world and is the third-largest supplier to Europe. Its exports have been in decline, however, because of lagging foreign investments. The […]

Posted On : Published By : Tom Whipple
Category:

Libya Oil Output Drops as Factions Fight Over Energy Assets

Libya’s oil output dropped below 400,000 barrels a day after the divided country’s internationally recognized government in the east closed a port run by a rival administration in the west, in a push to assert control over more energy assets and exports. Production fell after crude exports halted at the port of Zueitina, Mohamed Elharari, a spokesman for the National Oil Corp.’s management in the western city of Tripoli, said Wednesday by phone. Libya pumped 430,000 barrels a day in October, data compiled by Bloomberg show. Zueitina will be closed until further notice, and tankers seeking to load crude there must now register with a rival NOC management loyal to the internationally recognized government based in eastern Libya, according to a Petroleum Guard spokesman Ali al-Hasy. Vessels registered with the NOC administration in Tripoli, seat of an Islamist-backed government, are “illegitimate” and won’t be permitted to load at Zueitina, […]

Posted On : Published By : Tom Whipple
Category:

Libya Oil Guard Halts Zueitina Port Exports Amid Political Rift

Libya’s Petroleum Facilities Guard halted crude shipments from Zueitina port indefinitely amid the escalating conflict between the divided country’s two rival administrations, putting the OPEC member’s oil exports at risk. A tanker moored at Zueitina for two days has been prevented from loading, the port’s workers union president, Ramadan Lefkaih, said Tuesday by phone. Zueitina will be closed until further notice and tankers seeking to load crude at the eastern port in the future must register with the National Oil Corp. administration loyal to the internationally recognized government in the eastern region, according to Petroleum Guard spokesman Ali al-Hasy. Vessels registered with the rival NOC headquarters in Tripoli, seat of an Islamist-backed government in western Libya, are “illegitimate” and won’t be permitted to load at the port, al-Hasy said Tuesday by phone. The Tripoli-based NOC, which has been in charge at the Zueitina port, declared force majeure and said […]

Posted On : Published By : Tom Whipple
Category:

Chevron: Production started at shared African oil field

Chevron says start of oil production in field straddling the borders of the Congo and Angola could serve as a model in a region prone to territorial disputes. Image courtesy of Chevron. SAN RAMON, Calif., Nov. 3 (UPI) — Chevron said the development of oil reserves straddling the maritime border of the Republics of Congo and Angola could serve as a model for Africa. Chevron’s subsidiary in the region announced it started oil and gas production from the Lianzi field in a unified offshore economic zone straddling the borders of Congo and Angola. The project is the first in the region to start operations for Chevron and the first cross-border development in Africa. "As the first offshore energy development spanning national boundaries in the Central Africa region, Lianzi represents a unique cooperative approach to share offshore resources and may serve as a model for the development of similar cross-border […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Shell ‘Blatantly Lied’ About Niger Delta Pollution – Amnesty International

Multi-national oil company, Shell, lied when it claimed it had cleaned up heavily polluted areas of the Niger Delta, Amnesty International and the Centre for Environment, Human Rights and Development (CEHRD) said in a new report published on Tuesday. The report titled, "Clean it up: Shell’s false claims about oil spills in the Niger Delta", documents ongoing contamination at four oil spill sites that Shell said it had cleaned up years ago. Amnesty said the report was published to mark the 20th anniversary of the execution of the environmental activist and writer, Ken Saro-Wiwa. Mr. Saro-Wiwa, who campaigned relentlessly against damage caused to the Ogoni area of Rivers State, was executed by the Sani Abacha junta on November 10, 1995. "By inadequately cleaning up the pollution from its pipelines and wells, Shell is leaving thousands of women, men and children exposed to contaminated land, water and air, in some […]

Posted On : Published By : Tom Whipple
Category:

South African waters drawing in energy companies

European energy companies among those showing interest in basins in southern African waters. Statoil and Eni add Mozambique acreage to their portfolios. Photo by James Jones Jr./UPI STAVANGER, Norway, Oct. 30 (UPI) — Southern African waters drew more interest from energy explorers with Norway’s Statoil and Italy’s Eni wading into Mozambique waters. Statoil and Eni were among those winning bids to explore for potential reserves in the waters off the coast of Mozambique, where depths range from 650 feet to 5,900 feet. Nick Maden, a regional exploration director for Statoil, said Mozambique waters are among the more promising frontier basins in the area , where the oil potential is said to be "significant." "The position strengthens and develops our global exploration portfolio," he said in statement. Eni last year said it discovered natural gas in a well in an area off the Mozambique coast thought to hold 85 trillion […]

Posted On : Published By : Tom Whipple
Category:

Africa’s Biggest Economy Defying Currency Critics Chokes Growth

Nigeria’s economy is growing at the slowest pace this decade as oil prices drop. Companies are complaining they can’t get the dollars they need to do business. And trading in the naira has long since dried up. There are many good reasons why Godwin Emefiele, who runs the central bank of Africa’s biggest economy, should lift currency controls and let the naira depreciate. One of the things holding him back is politics. Devaluing the naira may give opposition parties the opportunity to claim that Emefiele’s main supporter, President Muhammadu Buhari, has lost control of the economy. With his backing, the policy chief will be able to resist his critics into 2016 before the worsening economic slump eventually forces him to capitulate, according to Standard Chartered Plc and Bank of America Corp. “They could probably hold out for at least six months, maybe even a year,” said Ayodele Salami, chief […]

Posted On : Published By : Tom Whipple
Category:

Angola: Why Luanda’s Residents Are Asking – Where Did All the Oil Riches Go?

A few years ago, Luanda, the capital of Angola, was on every ambitious investor’s lips . With large infrastructure and housing projects rapidly changing its appearance, the city seemed to be leaving behind the country’s 27-year civil war. But hopes for renewal are slowly dissipating as the price of the commodity on which Angola’s future was being constructed – oil – steadily declines. Angola is Africa’s second-largest oil producer. It is one of the countries that have been hardest hit by the fall in oil prices. The oil crash forced Angola to slash its 2015 budget by US$17 billion (a 25% reduction ). Construction companies are having difficulties paying their workers, and the Angolan central bank has devalued the currency , the kwanza. Construction threatens to screech to a halt. The fantasy built on oil is crumbling, showing that its benefits were barely felt outside privileged sites of elite […]

Posted On : Published By : Tom Whipple
Category:

Algeria Backs Venezuela on OPEC, Non-OPEC Summit to Boost Prices

Algeria supports Venezuela’s call for a summit among heads of state from OPEC and other oil-exporting nations in a bid to lift crude prices, Algerian Foreign Minister Ramtane Lamamra said. ”Algeria has always been a pioneer when it comes to strengthening solidarity between producing countries,” Lamamra said Monday in an interview in Paris after meeting President Francois Hollande. “We would only convene a summit if its success is guaranteed; meetings at the level of ministers and experts will therefore precede such an event.” Venezuela has proposed that heads of state from the Organization of Petroleum Exporting Countries and other oil producers meet in November to discuss the price needed to sustain investments in future supplies, the country’s Oil Minister Eulogio del Pino said on Oct. 21. Speaking in Vienna during a meeting of experts from OPEC and from outside the group, del Pino said Venezuela seeks to set an […]

Posted On : Published By : Tom Whipple
Category:

Africa Must Allow Currencies to Fall to Absorb Shocks, IMF Says

Sub-Saharan African countries should allow their currencies to weaken to absorb shocks to their economies, the International Monetary Fund said. Resisting currency pressure depletes foreign-exchange reserves and results in weaker imports and economic growth, the Washington-based lender said in its Regional Economic Outlook for sub-Saharan Africa. Sliding commodity prices have put African currencies from Ghana to Zambia under pressure, forcing governments to scale back spending as debt rises and prompting central banks to implement aggressive monetary policy tightening to curb inflation. Nigeria, Africa’s biggest oil producer, has resisted devaluing its currency despite a plunge in crude revenue, imposing foreign-currency controls instead that are undermining economic output. “Interventions should be limited to disorderly movements of the exchange rate,” the IMF said. “Monetary policy should only respond to second-round effects, if any, of exchange rate pass-through and other upward shocks to inflation.” The IMF is forecasting economic expansion of 3.8 percent […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Country’s Crude Oil Prices Dip to Two Months Low

The prices of Nigeria’s crude oil grades have recorded significant decline over the last two weeks, fuelling concerns over the ability of the country to meet its revenue target and fund its budget. This was even as shipping companies have started hiking their price for the lifting of crude oil from Nigeria. Meanwhile, the call, weekend, by Lamido Sanusi, Emir of Kano and immediate past governor of the Central Bank of Nigeria, CBN, for the removal of fuel subsidy has continued to draw reactions from stakeholders and industry experts. 5Data obtained, weekend, from Platts, a global energy information service, revealed that Nigeria’s crude oil grades had, over the last two weeks, dropped between 60 cents and 40 cents, the lowest in two months. According to the report, Nigeria’s flagship crude oil grade, Qua Iboe, was assessed at a premium to Dated Brent of $0.65 per barrel, the lowest since […]

Posted On : Published By : Tom Whipple
Category:

IMF presses Nigeria to devalue naira currency

AP Photo/Sunday Alamba LAGOS, Nigeria (AP) — The IMF is pressing Nigeria to further devalue its naira currency amid uncertainty over the political and economic outlook for Africa’s biggest oil producer and economy. Analysts said there’s disappointment that President Muhammadu Buhari’s long-awaited Cabinet list – five months in the making and still not finalized – includes no economic stars to guide much-needed reform. "There’s no economist on the (Cabinet) list that can suggest to the government ways to improve revenue generation and how to run the economy," said Garba Kurfi, managing director of APT Securities and Funds. The naira has lost 25 percent of its value in the past year and the stock market plummeted by 20 percent last year and 14 percent this year because of political uncertainty and halved prices for oil that provides most government revenue. Nigeria’s Central Bank devalued the naira by 8 percent in […]

Posted On : Published By : Tom Whipple
Category:

China returns to play larger role in Angolan November crude program

China has returned to be the main buyer for Angola’s November crude program, data from Platts shows, contrasting with the previous trading cycle, when more barrels headed to European refineries and the US. "Asia took more and Europe and the US took less in November," an Angolan crude trader said. "It’s a role reversal from the previous month." Angolan crude is heavily dependent on China, with 40%-60% of Angolan crude exports typically going there every month. Unipec, the trading arm of Chinese state-owned Sinopec, is by far the largest buyer of Angolan crude, often buying 35%-40% of the monthly export program. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly API statistics, and much more However, during […]

Posted On : Published By : Tom Whipple
Category:

Kenya has a billion barrels of oil that might not be going anywhere

Fidgety oil companies and investors heaved a sigh of relief in August when Kenya and Uganda announced they had picked a route for the world’s longest heated pipeline. Finally, there was a plan for getting the estimated 1 billion barrels in Kenya’s remote northwest out of the country. The proposed route cut from northern Uganda’s Albertine region, into Kenya, through the Lokichar Basin, and then southeast before terminating in Kenya’s coastal Lamu County. It would have allowed Kenya to share the cost of piping oil with Uganda, which has 6.5 billion barrels of its own oil that it wants to get to market. But this week Uganda turned around and announced it had instead signed an agreement with Tanzania and Total (which is exploring in Uganda) to consider a pipeline for Ugandan oil through Tanzania, bypassing Kenya altogether. Proposed oil pipelines in East Africa Proposed oil pipelines in East […]

Posted On : Published By : Tom Whipple
Category:

Angolan Government Cuts Spending by 50% as Oil Revenue Plunges

An oil tanker waiting in a queue of traffic outside the Port of Luanda in Luanda, Angola. The government of Angola, sub-Saharan Africa’s second-largest crude producer, cut spending by half this year following a plunge in oil prices, Vice President Manuel Vicente said. Public investment was reduced by 53 percent, Vicente told lawmakers in a state-of-the-nation address on Thursday in the capital, Luanda. He delivered the speech in the absence of President Jose Eduardo dos Santos, 73, who was “indisposed,” according to parliamentary Speaker Fernando da Piedade Dias dos Santos. Oil accounts for about two-thirds of fiscal revenue in Angola, putting the nation at risk after crude prices more than halved since June last year. The central bank devalued the currency twice this year and raised the benchmark interest rate four times in response, while the government has sought funding from the World Bank and China to help cushion […]

Posted On : Published By : Tom Whipple
Category:

Ghana: Nigeria Threatens to Cut Gas Supply to Ghana Over Ghc100 Million Debt

The power crisis in the country is set to worsen in the coming days as Nigeria threatens to cut gas supply to the Aboadze Thermal plant. The development has been occasioned by the failure of government to settle its indebtedness to the Nigerian gas authorities. According to sources within the Power sector, Ghana owes the Nigerian authorities over GHC100million. Currently, Ghana receives in excess of 140million standard cubic feet per day of gas from Nigeria. The supply, although not enough, has greatly enhanced power supply in the country over the last few weeks. Speaking on recent developments in the power sector, a former Chief executive officer of the Volta River Authority Dr. Charles Wireku-Brobbey told Accra-based Joy FM that constant power supply in the country is not dependent on the incoming power barges from Turkey. "The problem for us not the arrival or non-arrival of the power barges. As […]

Posted On : Published By : Tom Whipple
Category:

Moroccan shale giving up gas

Circle Oil says it’s seeing success in efforts to draw gas out of Moroccan shale basins. File photo by Terry Schmitt/UPI LIMERICK, Ireland, Oct. 13 (UPI) — Irish energy company Circle Oil, which focuses on North African basins, said it had remarkable success with the early results from shale basins in Morocco. Circle Oil said preliminary drilling results from its Sebou concessions in Morocco yielded about 8 million cubic feet of natural gas per day. Chief Executive Mitch Flegg said in a statement the results came in better than expected . "The flow rates achieved during the well test are at the upper end of our range of expectations and the well will now be tied in to our existing infrastructure and put into production as soon as possible," he said. "This gas will be sold at fixed rates which are not subject to oil price fluctuations." Morocco is […]

Posted On : Published By : Tom Whipple
Category:

Eni focus on Egypt sharpens

Italian energy company Eni strengthens position in Egypt with two new concessions in the Mediterranean Sea. File photo by Ashraf Mohamad/UPI MILAN, Italy, Oct. 12 (UPI) — Italian energy company Eni said it was building on a legacy position in Mediterranean waters with two new shallow-water concessions offshore Egypt. Eni takes a position alongside British energy company BP and French company Total in the shallow-water Karawan and North Leil blocks off the Egyptian coast. Eni offered no estimate of the reserve potential in the two exploration areas, which combine for 1,280 square miles. The Italian company will serve as the operator of the two basins. "These two new concession agreements follow the recent award of the deep water Karawan and North Leil blocks, strengthening Eni’s presence in Egypt, a country of historic and strategic importance," the Italian company noted. Eni announced a discovery of gas in a deepwater prospect […]

Posted On : Published By : Tom Whipple
Category:

Chevron Sees Additional South African Oil Refinery Causing Glut

South Africa doesn’t need another oil refinery because the slowing economy has curbed demand and the country has ample gasoline production, said Shash Rabbipal, the new chairman at the local unit of Chevron Corp., the second-largest U.S. energy company. “Should another refinery be built, it would mean that the country would have to increase its exports of products and this would mean a change from the current practice of ensuring that supply catered mainly for local demand,” Rabbipal, 47, said Friday in an interview in Cape Town. He has worked for Chevron for 25 years and was appointed to the post last week. The six South African refineries, including San Ramon, California-based Chevron’s Cape Town facility, process a combined 703,000 barrels of crude a day, exceeding demand, according to Rabbipal. State-owned PetroSA Ltd. proposes a new plant on the south coast that would be the biggest on the continent […]

Posted On : Published By : Tom Whipple
Category:

Nigeria’s President Buhari Will Keep Oil Minister Post Vacant

Nigeria’s President Muhammadu Buhari will leave the post of petroleum minister in Africa’s biggest oil producer vacant after signaling that he would take the position, according to his spokesman. “He can’t be president and oil minister at the same time,” Femi Adesina said by phone on Monday from Abuja, the capital. “He will supervise the ministry, so there will be no petroleum minister. Maybe he will appoint a minister of state, which is a junior minister.” Nigeria’s Senate will begin vetting Buhari’s cabinet nominees on Tuesday. The 72-year-old former military ruler sent a list of 21 names to lawmakers last week, without saying which portfolios the candidates would get. The list included four former governors, the head of the state oil company, Emmanuel Kachikwu, and Kemi Adeosun, tipped by several analysts to be the finance minister. Under the constitution Buhari must pick a minister from each of Nigeria’s 36 […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Country Lost U.S.$966 Million in Four Years to Crude Oil Swap Deals – NEITI

Nigeria lost $966 million to crude oil swap deal between 2009 and 2012, the Nigeria Extractive Industries Transparency Initiative said Friday. NEITI’s Communications Director, Orji Ogbonnaya-Orji, made the disclosure in Lagos at a forum on fuel subsidy, organised by Media for Oil Reform in collaboration with the School of Media Communication, Pan Atlantic University. Crude swap deals allowed the Nigeria National Petroleum Corporation, NNPC, to trade crude oil for refined products. Mr. Ogbonnaya-Orji said in 2012 alone, the cost of crude oil swapped was $6.4 billion, while value of refined products returned to Nigeria was $6.3 billion. This left the sum of $100 million as revenue loss incurred by government. ‎ He said similar concerns were raised with subsidy payment, noting that NEITI’s audit reports disclosed that N4 trillion was oil subsidy payments between 2006 and 2012. Mr. Ogbonnaya-Orji said in 2006, N219.72 billion was spent on subsidy, in […]

Posted On : Published By : Tom Whipple
Category:

Libya’s Oil Export Capacity Rises as Zueitina Port Reopens

Libya’s crude export capacity increased as Zueitina, an oil port in the eastern region, resumed loadings after a five-month halt due to protests, a workers union said. Zueitina began Thursday loading 600,000 barrels of crude on the Sea Faith tanker, the port’s workers union president, Ramadan Lefkaih, said by phone. The shipment, bound for Italy, is the first since May, when protesters seeking jobs at state-run National Oil Corp. shut the pipeline that supplies Zueitina with crude. The protesters agreed to reopen the export route after being promised jobs, Lefkaih said. Zueitina receives crude from fields including the NOC-operated Nafoora, Wintershall AG’s concession C96, also known as As-Sarah, and Amal, operated by Harouge Oil Operations. It has 2 million barrels in storage and its current supply rate from the fields stands at 30,000 barrels a day, said Lefkaih. It has an installed export capacity of 70,000 barrels a day, […]

Posted On : Published By : Tom Whipple
Category:

Nigeria Oil Contracts Review Adds to Industry Uncertainty

Plans by Nigeria, Africa’s biggest oil producer, to review offshore production contracts signed with international oil companies two decades ago, have added to uncertainty in an industry already lacking regulatory clarity, said analysts including Philippe de Pontet of Eurasia Group. The objective is to increase Nigeria’s earnings from the fields, according to Emmanuel Kachikwu, group managing director of the Nigerian National Petroleum Corp. Yet, declining crude oil prices take away some of the incentive for investments that would’ve given the government more leverage in negotiations. “With Brent below $50 a barrel, the timing is not ripe for big contract negotiations.,” de Pontet said. “If the administration is not careful its agitation for contract review could prove counterproductive at a time when the oil sector is already stagnant at best.” Nigeria depends on crude exports for two-thirds of government revenue and more than 90 percent of export earnings. NNPC, as […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: How NNPC Officials Stole Billions Using Failed Electronic Management Contract

Former Minister of Petroleum Diezani Allison-Madueke. Photo: Premium Times An enterprise resource solution for accountability in the Nigerian National Petroleum Corporation, NNPC’s business processes, turned a spin project for crooked top officials to steal billions, a report reveals. The project, which had 86 weeks completion time-line, has dragged for more than three years, after gulping almost double the contract sum originally approved by the Nigerian presidency, with nothing to show. The resource solution is called SAP Enterprise Resources Planning (ERP). It is an electronic management solution deployed by most global organisations to monitor real-time operations of a network of subsidiaries and affiliates irrespective of their locations. All-in-one solution The solution is an all-in-one package, comprising different modules for standard business, financial, contracts management and personnel information, data and processes in the business value chain. The automated tool is usually deployed once and run globally through an integrated network that […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: UK Court Seizes 27,000 Pounds From Former Petroleum Minister, Alison-Madueke

Former Minister of Petroleum Diezani Allison-Madueke. Photo: Premium Times The Westminster Magistrate’s Court on Marylebone Road, London, on Monday granted an application for seizure of 27,000 pounds seized from a former Minister of Petroleum Resources, Diezani Alison-Madueke. Mrs. Alison-Madueke was arrested and later released on bail on Friday for alleged corruption-related offences. The cash was seized under Section 295 of Proceeds of Crime Act 2012. By granting the application, which was filed by the UK’s National Crime Agency, the money would be held in the custody of the court until April 5, 2016. PREMIUM TIMES gathered that although the former minister did not appear today in court, her mother, Beatrice Agama, and another woman, Melanie Spencer, appeared in today’s sitting. Reports also said a separate application was also made against Ms. Agama for the seizure of an undisclosed amount of money. PREMIUM TIMES learned that there were indications the […]

Posted On : Published By : Tom Whipple
Category:

Shell starts new work offshore Nigeria

Shell starts third phase of operations at deepwater prospect off the coast of Nigeria. Photo courtesy of Royal Dutch Shell ABUJA, Nigeria, Oct. 5 (UPI) — Royal Dutch Shell said it started operations at the third phase of operations in the deep waters off the coast of OPEC-member Nigeria. Shell said its Nigerian exploration and production company started production at the third phase of the offshore Bonga prospect . "This new start-up is another important milestone for Bonga, adding valuable new production to this major facility," upstream director Andrew Brown said in a statement. Shell last year started oil production from the deepwater Bonga North West development off the coast of Nigeria. At its peak, the company said the third phase of operations offshore Nigeria should be around 50,000 barrels of oil equivalent. Nigeria was among the member states contributing most to the production from Organization of Petroleum Exporting […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: More Suspects to Join Diezani – UK Govt

There were indications, yesterday, that a former Petroleum Minister, Diezani Allison-Madueke, arrested and released in the United Kingdom, on Friday, on money laundering allegations, may be charged to court, this week. And feelers showed that she will not be the only person in the dock. Sunday Vanguard learnt that besides the four other persons arrested with the former minister, more suspects may also be arraigned. Meanwhile, Economic and Financial Crimes Commission (EFCC) detectives, who raided the Abuja home of Allison-Madueke, just at about the time of her arrest in the UK, on Friday, reportedly recovered cash running into millions of Naira. The trial is expected to be conducted in London and is likely to draw thousands of Nigerians resident in the United Kingdom (UK) but no date was specified, last night, when Sunday Vanguard made contacts with the National Crime Agency (NCA), which arrested and released Diezani and the […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Alleged Bribery, Corruption and Money Laundering – Govt Mulls Diezani’s Extradition

By George Agba, Kunle Olasanmi, Reuben Buhari, Chika Otuchikere Hours after the immediate past Minister of Petroleum Resources, Diezani Alison-Madueke was arrested by the United Kingdom National Crime Agency, and her residences in Abuja and Lagos simultaneously raided by the Economic and Financial Crimes Commission (EFCC), the Federal Government has started mulling the idea of having her extradited back to Nigeria. Diezani was arrested yesterday alongside four other people on offences related to bribery, corruption and money laundering. Even though the names of the other four couldn’t be ascertained, but just after the arrest of Diezani in London, EFCC operatives who stormed her home in Abuja also stormed the home of one Jide Omokore, a business friend of hers while she held sway as oil minister. There were reports that Omokore’s 9 Turnbull Street home in Ikoyi, was raided by EFCC operatives. His office on Glover Street, also in […]

Posted On : Published By : Tom Whipple
Category:

Scores killed as South Sudan factions resume fighting

JUBA, South Sudan (AP) — Fifty-two soldiers and rebels have been killed in recent fighting in South Sudan’s contested state of Unity, said a military official Saturday, blaming rebels for the latest violation of a peace deal signed last month. Rebel forces have attacked positions held by government troops, killing 14 of them and wounding 42 others, military spokesman Col. Philip Aguer told The Associated Press. Government troops have killed 38 rebels and have captured two others along with 50 rocket-propelled grenades, he said. The clashes, which started Monday and continued Friday, took place in Leer and Koch, he said. The death toll of 52 was for fighting in Koch and not Leer, which government troops had to abandon under intense fire from the rebels. Aguer gave no civilian death toll from the fighting. Rebels are also mobilizing to attack government troops in parts of Upper Nile state, he […]

Posted On : Published By : Tom Whipple
Category:

Nigeria’s Crude Oil Export Slides

There are indications that Nigeria’s crude oil exports may fall by about 10 per cent in November, as loading were assessed to be on the lower scale. Indeed, loading programmes continued to emerge on Monday, with exports on track to fall from October’s high. The provisional loading programmes showed that Nigeria plans to export a total of 56.66 million barrels of oil, or 1.89 million barrels per day (bpd) of crude oil in November, which is a decline from the 63.1 million barrels, or 2.04 million bpd, planned initially for October loading. On a per-day basis, the November programme is on track to be the lowest since July, according to available data. Traders said the November loading programme was on track to show a decline from the yearly high hit in October, but trading was limited as the market processed the new offers. Few trades surfaced as the market […]

Posted On : Published By : Tom Whipple
Category:

Nigeria President’s Bid to Rev Economy Hits an Oil Shock

The oil refinery in Warri, Nigeria, is roaring back to life after years of neglect. WARRI, Nigeria—Newly elected Nigerian President Muhammadu Buhari’s plans to overhaul the world’s most populous petrostate include pushing people like Bombo Okpe out of the oil business. Mr. Buhari recently dispatched soldiers to torch the rusted oil drums and steel piping Mr. Okpe had rigged to refine stolen crude into gasoline and kerosene in a mangrove swamp here. Mr. Okpe says he is too afraid to rebuild. The president’s move marks a major reversal in a country where thieves used to set fire to government refineries and build their own from spare parts. Now Mr. Okpe’s operation is in ashes, while a few miles away engineers are revving up a refinery that hasn’t worked properly in years. “They see light at the end of the tunnel,” said Hippolite Amadi, an executive director at Warri’s troubled […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Massive Fuel Imports As Refineries Remain Down

There has been a steady surge in fuel importation to Nigeria with more inflows expected from Europe in the months to come. Trading sources told Platts, a global energy information website, at the weekend that one of the main reasons for the strong demand has been the increased buying interest from Nigeria. The country has four refineries which could reduce petroleum products importation by up to 50 per cent but the refineries have struggled to remain afloat and have been unable to churn out products in appreciable quantities since the Nigeria National Petroleum Corporation (NNPC) announced they were back. For instance, the 37-year-old Warri refinery has remained shut since August due to some technical hitches in one of its units. The NNPC Group Managing Director, Dr Ibe Kachikwu gave a 90 days ultimatum to the refineries to stream back to full active service or be sold. There are plans […]

Posted On : Published By : Tom Whipple
Category:

Offshore Africa could add more rigs

Much of the growth in offshore exploration and production is expected in Africa, a report from the U.S. Energy Information Administration finds. File photo by A.J. Sisco/UPI WASHINGTON, Sept. 22 (UPI) — Much of the growth in offshore exploration and production is expected from Nigeria and Angola, a report from the U.S. federal government said. Oil field services company Baker Hughes reported 31 rigs actively exploring for or producing natural gas in U.S. waters for the week ending Sept. 18. That’s down by half from the same week last year. A daily brief from the U.S. Energy Information Administration said the Gulf of Mexico’s share in the global offshore rig mix has declined from about half the world total in 2000 to less than 20 percent in the years since 2008. "Most of the more recent growth in active offshore rigs outside the United States has occurred in Africa. […]

Posted On : Published By : Tom Whipple
Category:

U.N.-Brokered Libya Peace Talks Teeter on Collapse

CAIRO—United Nations-brokered peace talks aimed at reconciling Libya’s two rival governments teetered on the edge of collapse Monday, as the deadline for an accord passed. The talks aim to create a unified governing body and end a four-year power vacuum that has devastated the country’s economy and led to the growth of an illegal people-smuggling network that has become a focal point of the largest refugee crisis in decades. A framework deal for a national unity government including officials from the two competing administrations was to have been presented Sunday. It was unclear on Monday whether talks were still proceeding or the deadline had been extended. The U.N.’s mission in Libya didn’t comment on the lapsed deadline, and officials from rival camps couldn’t be immediately reached. Both parties have jockeyed for influence and control of Libya’s oil resources and central bank. Armed fighting between forces loyal to each side […]

Posted On : Published By : Tom Whipple
Category:

Nigeria gets financial lift from Chevron

Nigeria gets financial support for onshore and offshore oil and gas exploration campaigns from Chevron subsidiary. File photo by A.J. Sisco/UPI LONDON, Sept. 21 (UPI) — Nigeria’s national oil company said it secured more than $1 billion in financing for onshore and offshore drilling operations from a Chevron subsidiary. An agreement signed during the weekend in London envisions $1.2 billion for the development for 23 onshore and 13 offshore wells in Nigeria. The Nigerian National Petroleum Corp. said the funding is an integral part of an exploration and production financing program meant to address "the perennial challenge" on the part of the government’s support for upstream activities. The company said the projects could combine for between $2 billion and $5 billion in revenue for the federal government. Stage one, consisting of 19 wells, could deliver up to 21,000 barrels of oil and 120 million cubic feet of natural gas […]

Posted On : Published By : Tom Whipple
Category:

Nigerian Oil Group Secures $1.2 Billion to Develop Wells

IBADAN, Nigeria–The state-run Nigerian National Petroleum Corporation has secured $1.2 billion to drill wells offshore and onshore under a joint venture with Chevron Nigeria, the NNPC said Sunday. Nigeria has been criticized for failing to meet obligations to its oil JV partners, which has affected efforts to reach production targets of over 4 million barrels a day and reserves to 40 billion barrels. The $1.2 billion package will finance the development of 23 onshore and 13 offshore wells. The NNPC/CNL Joint Venture is the third largest oil producer in Nigeria, the statement said. Nigeria, Africa’s largest oil producer, relies on crude exports for over 90% of its foreign exchange earnings and 70% of government revenue, according to the International Monetary Fund.

Posted On : Published By : Tom Whipple
Category:

Nigeria Plans to Renegotiate Existing Oil-Production Contracts

IBADAN, Nigeria–Nigeria will seek to renegotiate the fiscal terms of existing production-sharing contracts with some international oil and gas companies to seek more favorable terms, the new head of the Nigerian National Petroleum Corp. said. “In the weeks and months ahead, the corporation will be renegotiating the contracts to extract as much benefits as possible for Nigeria,” said NNPC chief Ibe Kachikwu, according to a statement. Speaking in Paris ahead of the state visit of Nigerian President Muhammadu Buhari, Kachikwu said: “The NNPC is allowed to make use of the window which creates space for renegotiation.” The major African oil exporter is facing hefty budget pressures after international oil prices plunged and as the Buhari administration looks for funds to execute an ambitious reform program. The new government had been expected to seek to renegotiate some contracts. Since assuming office in May, Buhari has sought to overhaul the NNPC […]

Posted On : Published By : Tom Whipple
Category:

New Libyan Oil Company Stalls

MALTA—A host of energy firms have so far refused to do business with the U.N.-backed Libyan government until a peace treaty is signed, another blow to the institution’s bid to build a new National Oil Co. and tap into the country’s petroleum reserves. The government, based in Libya’s eastern city of Baida, gathered more than 30 energy firms and traders at an upmarket hotel in Malta on Wednesday. It was another bid to lure business away from the country’s long-established National Oil Co. in Tripoli, where a coalition of militias known as Libya Dawn holds power. The old National Oil Co. says it is an independent company, a view the United Nations endorses. The Dawn-led government has appointed its own oil minister, but has kept the company’s pre-war management in place. But no oil companies or traders signed on with the eastern government’s new firm, also called National Oil […]

Posted On : Published By : Tom Whipple
Category:

IMF: Egypt’s gas good for growth

A natural gas find off the Egyptian coast will help stimulate the nation’s economy, the International Monetary Fund said. File photo by Ahmed Jomaa/UPI WASHINGTON, Sept. 18 (UPI) — The discovery of a major deposit of natural gas off the Egyptian coast should help ensure positive economic growth, the International Monetary Fund said. Members of the IMF met in Cairo with Egyptian Central Bank Gov. Hisham Ramez, Finance Minister Hany Dimian and other representatives to discuss planned economic policies and developments. The issuance of a $1.5 billion bond helped lead to 4.2 percent growth in the Egyptian economy. Chris Jarvis, head of mission for the IMF, said the major gas find made by Italian energy company Eni will help stimulate the Egyptian economy in the medium term. Eni announced a discovery of gas in a deepwater prospect off the Egyptian coast last month. With an estimated 30 trillion cubic […]

Posted On : Published By : Tom Whipple
Category:

Buhari’s Backing Tightens Nigeria Central Bank’s Grip on Naira

Investors hoping that Nigeria’s central bank Governor Godwin Emefiele will succumb to pressure to devalue the naira weren’t aware of one crucial factor: he has the backing of President Muhammadu Buhari. In his first public comments on the currency since taking office in May, Buhari, 72, said on Wednesday he opposes a weakening of the currency. His stance endorses Emefiele’s policy of restricting foreign-exchange trading to stabilize the naira despite a plunge in oil revenue in Africa’s biggest crude producer. It also raises questions about the central bank’s independence and puts the two men at odds with foreign investors, local businesses and some members of the Monetary Policy Committee who say the naira is overvalued, deterring capital inflows and hindering economic growth. “There appears to be some unwritten agreement between the presidency and the central bank that the naira will not be devalued, in spite of the deteriorating fundamentals,” […]

Posted On : Published By : Tom Whipple
Category:

Nigerian States Tap Emergency Fund to Pay Wages Amid Oil Slump

Nigerian states have drawn from a 300-billion naira ($1.5 billion) emergency fund at the central bank and are asking for more money as they struggle to pay civil service salaries after the oil-price slump. Eighteen states have tapped the intervention fund and more requests are being processed, Central Bank of Nigeria Governor Godwin Emefiele said in a statement e-mailed by the presidency on Thursday. Debts worth a total of 574 billion naira have been restructured for 23 states since August, it said. At least half of Nigeria’s 36 states, which rely on monthly federal handouts for the majority of their funding, have been unable to pay bureaucrats’ wages after Brent crude prices fell by half in the past year. Nigeria is Africa’s largest oil producer.

Posted On : Published By : Tom Whipple