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Bureaucrats Go Hungry as Nigeria’s Oil Crisis Hobbles Economy

Nigeria president Muhammadu Buhari. Photographer: Pius Utomi Ekopei/AFP/Getty Images It’s been five months since Johnson Umeadi and his wife, Adaku, received their salaries as government workers in southeastern Nigeria. With Nigeria’s finances shot by last year’s collapse in oil prices, they’re struggling with rent and can’t afford school fees for their three children. Shops and grocers are no longer willing to extend them the credit they need to buy basic items such as food and drinks. “It’s like we put all our eggs in one basket and then it went porous,” said Johnson, a 45-year-old employed by a department of Imo state responsible for infrastructure projects in Owerri. “If one of us was working in a private company, or even engaged in petty trading, we would’ve fared better,” he said, declining to disclose his salary. The plight of the Umeadis and others who haven’t received wages has hit everything […]

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Sudan builds trenches around oil fields: minister

Sudan oil and gas minister Mohamed Awad Zayid has revealed that Sudanese security forces have dug trenches around oil fields on the border with South Sudan to fend off acts of sabotage. "The trenches will protect the oil fields from sabotage," Zayid was quoted as saying by the state-owned Sudan Vision daily Friday. Zayid did not mention the oil fields nor the group or country that Sudan suspects of sabotaging the vital facilities. But the nearest oil fields, located on the Sudan-South Sudan border, is Heglig, which produces more than half of Sudan’s current total of 133,000 b/d of crude oil. Article continues below… Platts Global Alert is a complete real-time information service for the global energy industry, providing breaking reports of deals done, price indicators for crude and products and more than 200 end-of-day assessments. Heglig, whose ownership is being disputed by both Sudan and South Sudan, is […]

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Nigeria: Is Nigeria’s Other Insurgency Making a Comeback?

Blog Even as Nigeria struggles to fight against Boko Haram insurgents in its northeast, a dangerous but forgotten conflict on the other side of the country is resurfacing. Before the rise of Boko Haram, the conflict in the southern Niger Delta region had long been considered the most potent threat to Nigeria’s security. Over the years, it has displaced thousands and cost the government a hundred billion dollars in lost oil revenue. Violence in the south has been at a low ebb since 2009, when Nigeria’s former President Goodluck Jonathan bought off rebel leaders with a generous package of stipends. But those amnesty payments are set to expire in December, and new President Muhammadu Buhari will have a harder time dealing with the region than his predecessor: unlike Jonathan, Buhari does not come from the Delta, and global declines in oil prices mean that he has far less cash […]

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Eni Oil-Pipeline Explosion in Nigeria Kills 12, Injures 3

Twelve people died and three were injured in an explosion during repair work at an Eni SpA crude oil pipeline in Nigeria. The victims worked on a maintenance team for a local service company, Rome-based Eni said in a statement Friday. The Tebidaba-Clough Creek pipeline in the Niger delta was previously “damaged by acts of sabotage.” The company said it is still investigating the cause of Thursday’s blast. Accidents are common in Nigeria, where pipelines are often breached in attempts to pilfer crude. The incidents interrupt oil and gas flows, affecting Nigeria’s energy exports and revenue for companies including Eni, Royal Dutch Shell Plc and Chevron Corp. Thursday’s incident was the worst since January 2012, when an explosion at Chevron’s Funiwa gas field killed two workers, according to a spokesman for a local environmental group. “The dead were unidentifiable,” said Alagoa Morris of Environmental Rights Action, the Nigerian affiliate […]

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Restart of crude oil exports from Libya’s Ras Lanuf port in doubt after threat

* Petroleum guards say vessels would be impounded * Two tankers seen headed for 220,000 b/d port * Force majeure at Ras Lanuf lifted July 2 Libya’s hopes of resuming crude exports from its third-largest port Ras Lanuf may have been dashed after guards that protect the facility said they would not allow any vessel to dock there. State-owned NOC lifted the force majeure on crude loadings at Ras Lanuf — which had been in place since December — on July 2, theoretically allowing for exports to resume from the 220,000 b/d capacity terminal. Article continues below… The Platts Global Energy Awards is a competitive awards program honoring excellence and accomplishments in the global energy industry. The 17th annual awards will be presented at a black-tie gala, attracting energy industry leaders from around the world on Wednesday, December 9th, 2015 at Cipriani’s in New York. Don’t miss this opportunity […]

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West Africa: Next big deal in oil?

With the right investment strategies, calmer waters off the coast of West African could make economic sense of the oil industry. Photo by James Jones Jr./Shutterstock LONDON, July 8 (UPI) — With the right investment strategies, the emerging offshore oil prospects in West Africa could be the industry’s next big deal, an executive leader said. West Africa has drawn interest from international energy companies eager to tap into unexploited reserves. Africa-focused Tullow Oil is among the early players in West African basins , tapping into prospects off the coast of Ghana. The region’s deepwater Tweneboa-Enyenra-Ntomme prospect, known also as the TEN project, should deliver its first oil by 2016. At its peak, the company said the prospect is expected to produce about 80,000 barrels of oil per day. The Jubilee field off the Ghanaian coast could eventually produce more than 125,000 bpd. Keith Millheim, a director at drilling and […]

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OPEC Beware: West Africa Could Lead The World’s Next Production Boom

The right technology and tolerance for risk could make West Africa the next "North Sea," possibly offsetting the balance of the world’s production hub. During the early 1970s, Saudi Arabia cut production as a reminder that it held the cards to the world’s petroleum resources. What the swing country did not count on was the slew of development and production that would subsequently take place in the North Sea. As a result, a new oil supply was born far away from the Middle East. Fast forward to today: With oil saturating the market again, Saudi Arabia has kept its spigots on this time to try and prove once again its place on top of the hydrocarbon pyramid. Despite its effort to slow production – primarily from shale in the United States – there is still room for surprise in the oil marketplace. The small offshore oilfields of West Africa, […]

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Nigerian President Denies Oil Savings Account to Be Depleted

Nigerian President Muhammadu Buhari denied that the oil savings account will be depleted to pay government debts, including civil servants’ salaries. The government will use a $2.1 billion dividend paid into the Treasury by Nigeria LNG Ltd., Africa’s biggest producer of liquefied natural gas, to pay wages, Buhari’s spokesman, Femi Adesina, said Tuesday in an e-mailed statement from the capital, Abuja. Nigeria’s 36 states and local arms of the government will also be able to draw “soft loans” from the central bank and have some debt restructured, he said. The comments seek to clarify statements made by Nigeria’s Accountant General Ahmed Idris on Monday that the Excess Crude Account, which holds the nation’s oil savings and has a balance of about $2 billion, will be drawn down by $1.7 billion. The funds will be shared by the federal, state and local governments to meet their financial obligations, Idris said. […]

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Uganda: Country Fails to Lure Majors Into Oil Industry

Last week, the ministry of Energy and Mineral Development released a list of 19 multinational companies that expressed interest in taking up licenses to explore for oil in the Albertine graben. However, the list reveals one glaring reality: Uganda has failed to attract a major company into its oil industry. By most measures, all the companies that have expressed interest are what one would call junior firms, which are more willing to take risks with exploring for oil in wildcat wells. Many of the firms are from Nigeria, South Africa, United Arab Emirates (EAE), and USA. Petroleum directorate officials had said global oil companies such as Exxon Mobil and Shell had shown interest in coming to Uganda, after it had been de-risked with success stories from companies such as Heritage Oil and Tullow Oil. Releasing the list of companies on Wednesday, the permanent secretary in the ministry of Energy, […]

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Nigeria: Oil Crash, Dwindling Revenue Threaten Nigeria’s 2015 Budget

One of the first major tasks the administration of Gen. Muhammadu Buhari will have to contend with will be how to finance the 2015 budget in the wake of low oil price and rising threats from declining revenue. This becomes very critical when viewed against the backdrop of the tough economic conditions witnessed over the last couple of months in the country, especially in the area of declining crude oil and gas receipts and Federal Government’s inability to meet some of its financial obligations. Budget highlights It was bad enough that the 2015 budget was being passed more than four months into the year, and was passed by the House of Representatives some days ago at a higher spend rate. The House increased the budget to N4.493 trillion from the N4.358 trillion proposed by the Executive, without taking into consideration the prevailing volatility in crude oil prices. The House […]

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Nigeria’s Government to Run Down Oil Savings Account to Pay Debt

Nigeria’s government plans to run down its oil savings to offset revenue shortfalls and pay debt, such as salaries for state workers. The Excess Crude Account, which has a balance of about $2 billion, will be drawn down by $1.7 billion to allocate to the federal, state and local arms of the government, Accountant-General Ahmed Idris told reporters on Monday in the capital, Abuja. Nigeria accumulates revenue in the ECA when the oil price exceeds the benchmark estimated in the budget. Those savings have dwindled from $21 billion in 2008, according to estimates from the International Monetary Fund. A lack of savings and an almost 50 percent slump in oil prices in the past year is putting pressure on the government of Muhammadu Buhari to deliver on promises that helped to sweep him into office on May 29. Buhari, 72, said last month his government is facing severe financial […]

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Egypt, Stunned by Sinai Assault, Vows to Erase ‘Terrorist Dens’

Photo A funeral on Thursday in Ashmoun, in the Nile Delta, for First Lt. Mohamed Ashraf, one of the soldiers killed Wednesday in a militant attack in the Sinai Peninsula. Credit Sameh Abouhasan/Agence France-Presse — Getty Images CAIRO — Egypt ’s military killed 23 militants in the northern Sinai Peninsula early Thursday, a senior security official said, as the government sought to reassert control and eradicate what it called the area’s “terrorist dens” after the largest assault there by jihadists affiliated with the Islamic State. That assault, on Wednesday, stunned officials in President Abdel Fattah el-Sisis’s government with its scale and audacity. Militants belonging to a group calling itself Sinai Province launched coordinated attacks on military checkpoints in the northern Sinai before storming a town and occupying it for hours. The military carried out airstrikes with F-16 warplanes on the town, Sheikh Zuwaid, to force a militant retreat. A […]

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Power Outages Dim South Africa’s Prospects

SOWETO, South Africa—Residents of this sprawling township famous for its resistance to white-minority rule are fighting a battle they thought consigned to history: keeping the lights on. National power company Eskom Holdings Ltd. is reeling from years of underinvestment and poor management, surrendering to power outages that frequently plunge Soweto’s 1.3 million residents into darkness. Nonayona Mkeshana and her neighbors have resorted to cooking over open fires and singing and dancing in the street now that television sets have gone dark. “We’ve had to get used to it, to survive,” said Ms. Mkeshana, a 59-year-old grandmother who lives with her son and his children. South Africa’s Treasury on Wednesday said it sold its stake in mobile company Vodacom Group Ltd. VOD -1.87 % to raise $2 billion to keep Eskom solvent. Chief Executive Brian Molefe said blackouts could continue for months as Eskom catches up on years of neglected […]

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Libya’s Thinni Says He Hopes to Sign Peace Deal at UN Talks

Libya’s prime minister said he’s hopeful that a peace deal can be signed during talks in Morocco on Thursday to end the civil conflict in the oil-rich nation. “There will be a lot of discussions tomorrow and there are people in favor and against,” Abdullah al-Thinni told reporters in Malta, where he stopped off en route to joining the United Nations-brokered negotiations. “We aspire to realise this agreement.” Al-Thinni heads a government that’s internationally recognized but only controls part of the country and has been pushed out of the capital, Tripoli, where a rival administration holds sway. Libya’s deepening divisions since the fall of Muammar Qaddafi in 2011 have slashed oil output and allowed Islamic State militants to establish a foothold. Al-Thinni said that once a unity government was set up, it would continue to fight against Islamic State. Bernardino Leon, the UN envoy who is mediating the talks, […]

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Jihadist Attacks on Egypt Grow Fiercer

CAIRO — Two years after President Abdel Fattah el-Sisi led a military takeover promising to restore order and security in Egypt , he faces a rising jihadist insurgency that has shaken the stability of this most populous Arab state, a key ally of the United States. Just two days after militants assassinated Egypt ’s top prosecutor on a Cairo street, the military on Wednesday called in F-16 war planes and helicopters to beat back a coordinated assault in Northern Sinai by a jihadist group affiliated with the Islamic State. Egyptian soldiers were killed, police officers were trapped in their posts, ambulances were paralyzed by booby-trapped roads and residents were warned to stay indoors by jihadists roaming on motorcycles. The scale and complexity of the attack far exceeded any of the group’s previous strikes in Sinai, raising the possibility that it has begun to coordinate more closely with the Islamic […]

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Egypt military ‘back in control’ of Sinai after clashes

Egypt’s military spokesman has said the situation in North Sinai is "100 percent under control", following clashes that reportedly left more than 100 people dead. The spokesman, Mohamed Sanir, was speaking by phone to state television on Wednesday. A group pledging allegiance to the Islamic State of Iraq and the Levant (ISIL) group, the Province of Sinai, had claimed responsibility for attacks on more than 15 security sites. Egypt’s army said more than 100 fighters and 17 soldiers were killed after simultaneous assaults on military checkpoints in North Sinai, in the deadliest fighting in years in the province bordering Israel and the Gaza Strip. Some security sources put the death toll for army and police much higher. After a day of fighting, which involved F-16 jets and Apache helicopters, the army said it would not stop its operations until it had cleared the area of all "terrorist concentrations". Security […]

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Egypt’s Brotherhood urges revolt after members killed

A statement on the Brotherhood’s website said the group held President Abdel-Fattah el-Sisi responsible for the killings [YouTube] The Muslim Brotherhood has warned of "serious repercussions" and has called on its supporters to "rise in revolt" after Egyptian police killed 13 of its members. Egyptian police raided an apartment in the Cairo suburb of 6th of October on Wednesday and killed 13 of the outlawed group’s leading members , including a former member of parliament, Nasser al-Hafy, security sources and a member of the group said. The Brotherhood members were reportedly meeting to discuss sponsoring the families of detainees when the police stormed the building. Egypt’s interior ministry, however, said the men were fugitive leaders who were plotting attacks – something the group denies – and said the group included two men who had previously been sentenced to death. Inside Story – Has Egypt’s Sisi failed on security? In […]

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The Latest: Militant attacks in Egypt’s Sinai kill 30 troops

CAIRO (AP) — The latest news on the near-simultaneous militant attacks in Egypt’s restive northern Sinai Peninsula that have killed at least 30 soldiers (all times local): 11:30 a.m. Egyptian security and military officials say a heavy battle is taking place in the northern Sinai town of Sheikh Zuweid, where militants are besieging the town’s main police station. The fighting is part of a wave of coordinated militant attacks launched on Wednesday morning in restive Sinai, just two days after the country’s state prosecutor was assassinated in Cairo. The officials say that as part of the attacks, a suicide car bombing destroyed one military checkpoint while another was first hit by mortar shells and rocket propelled grenades, then assaulted by militants. — 10:35 a.m. Egypt’s military spokesman, Brig. Gen. Mohammed Samir, says fighting is still underway in the restive northern Sinai Peninsula, where militants unleashed a wave of attacks […]

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Nigerian National Petroleum Corporation Spent N3.8 Trillion Illegally in Three Years – NEC

Nigerian National Petroleum Corporation (NNPC) spent nearly half of the money it earned in three years and remitted the other half to the federation account, it was revealed yesterday. The corporation earned N8.1trn from crude oil sales from 2012 to 2015, withheld N3.8trn and paid only N4.3 trillion to the national treasury. Officials of the corporation revealed these facts themselves while briefing members of the National Economic Council yesterday at the Presidential Villa, Abuja. They also said that former Minister of Finance and Coordinating Minister for the Economy Ngozi Okonjo-Iweala spent $2.1bn from the Excess Crude Account (ECA) without the approval of NEC. The governor of Edo State, Adams Oshiomhole, disclosed these while briefing State House journalists on the outcome of the four-hour meeting. President Muhammadu Buhari had inaugurated the National Economic Council chaired by Vice President Yemi Osinbajo. Oshiomhole said the NNPC and the office of the Accountant-General […]

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Nigeria: Revealed – “In Three Years, NNPC Generated N8.1 Trillion, Gave Nigeria N4.3 Trillion, Pocketed the Balance”

The Nigerian National Petroleum Corporation, NNPC, generated about N8.1trillion between 2012 and May 2015, but paid only N4.3trillion to the federation account, Edo State governor, Adams Oshiomhole, said Monday, citing new details from the federal economic council meeting. The balance of the oil money — about N3.8trillion — was withheld and spent by the NNPC unilaterally without approval or National Assembly appropriation, the governor told journalists. Also, the governor confirmed at the meeting that from November 2014, about $2.1billion was withdrawn from the excess crude account without the approval of the National Economic Council, NEC. Mr. Oshiomhole, who, alongside the governors of Kaduna state governor, Nasir El-Rufai, and Zamfara governor, Abdulazeez Yari, briefed journalists, said following the discovery, the NEC has set up a four-member committee to comb the books of the NNPC to confirm its remittances and how the excess crude account was utilised. President Muhammadu Buhari dissolved […]

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Egypt’s Top Prosecutor, Hisham Barakat, Is Killed by Roadside Bomb

CAIRO — A powerful roadside bomb killed Egypt ’s top prosecutor as he drove to work Monday morning, broadening the violent insurgency that militants have been waging against the government for two years. The prosecutor, Hisham Barakat, was the most senior civilian official to be killed in Egypt since the insurgency began in the fall of 2013, after the military ousted the country’s first freely elected president , Mohamed Morsi of the Muslim Brotherhood . The explosion hit Mr. Barakat’s small convoy around 10:30 a.m. Monday as it left the Heliopolis neighborhood near Cairo International Airport. The blast set several cars on fire and shattered windows along the street, injuring at least eight other people. Mr. Barakat sustained a lacerated liver and was rushed to a hospital, where he died from internal bleeding, according to the health ministry. The daylight assassination of one of his top officials was a […]

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Talks ongoing to restart closed Libyan oilfields, output stable: NOC

TRIPOLI Negotiations to reopen Libyan oilfields are ongoing and the level of the country’s production remains stable, a spokesman for the state National Oil Corporation (NOC) said on Monday. Libyan authorities said they were trying during the Muslim holy month of Ramadan, which began two weeks ago, to reopen pipelines for the El Feel and El Sharara oilfields and the port of Zueitina, blocked for weeks by protests and disputes. "Efforts being carried out by elders and mayors of local municipalities are still under way in order to reopen the closed oil fields. We expect good results soon," said NOC spokesman Mohamed Harari. The OPEC country is caught in a dispute between two rival governments, one internationally recognized in the east and a self-declared one that controls Tripoli, since a group called Libyan Dawn took over the capital last year. Before the 2011 civil war that ousted Muammar Gaddafi, […]

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Nigeria’s APC Says Government Must Scrap Oil-Industry Bill

Nigeria’s ruling party recommended the government discard a long-delayed oil-industry bill, review fuel subsidies and sell off some units of the state petroleum company. The Petroleum Industry Bill should be scrapped and replaced by a new reform bill that’s based on discussions with international oil companies to “ensure all perspectives are adequately considered,” the All Progressives Congress said in a report obtained by Bloomberg on Monday. Kayode Fayemi, the APC’s policy director, confirmed the authenticity of the document. The bill has been delayed in parliament for six years due to political wrangling and opposition by international energy companies against proposed tax and royalty terms, deterring investment into Africa’s top oil producer. The APC handed the report, which was based on closed-door meetings on May 20 and 21 in the capital, Abuja, to President Muhammadu Buhari, who took office on May 29 and is yet to appoint a cabinet. The […]

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Gas flowing from Moroccan shale

Morocco yielding natural gas for early shale pioneers working in onshore basins. File Photo by UPI Photo/Terry Schmitt. LIMERICK, Ireland, June 26 (UPI) — Irish explorer Circle Oil, which focuses on North African reserves, said gas was flowing from its first shale well drilled into a basin in Morocco. The company said it reached a stabilized flow rate of 1.9 million cubic feet per day in its LAM-1 well in the Lalla Mimouna permit area onshore Morocco. "We are delighted that our first well on the Lalla Mimouna block has such positive results, flowing gas at significant rates," Circle Chief Executive Officer Mitch Flegg said in a statement. "The productivity of this first well is very encouraging for the expansion of Circle’s portfolio of Morocco gas fields." Morocco is one of the West African countries that have drawn interest from international energy companies eager to tap into unexploited reserves. […]

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Nigeria: Board of State Oil Company Is Dissolved After Corruption Scandal

Nigeria ’s new president, Muhammadu Buhari, on Friday dissolved the board of the state oil company from which billions of dollars is reported to be missing. A statement from the head of the Civil Service, Danladi Kifasi, announced the presidential directive regarding the Nigerian National Petroleum Co., the government agency in charge of nearly all aspects of the country’s oil industry , the seventh largest in the world. Mr. Buhari took office last month promising to halt corruption, and he said this week that Western governments had promised to help recover looted state money. The president’s action came before he has named a cabinet and amid speculation that he may be planning to take charge himself of the petroleum portfolio. A former Central Bank director last year largely blamed the state petroleum company for missing federal revenues of about $20 billion — an amount that the company disputes.

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Fuel Shortages to Hit Nigeria in Three Weeks, Seplat CEO Says

Nigeria will probably be hit by fuel shortages in three weeks as the government doesn’t have enough money to pay for gasoline subsidies, according to the head of Seplat Petroleum Development Co Plc. “In three weeks we will be back to scarcity because we simply don’t have the money to pay for the subsidy,” Austin Avuru, chief executive officer of Lagos-based Seplat, said on Thursday at a Bloomberg conference at the Nigerian Stock Exchange. Nigeria almost ground to a halt last month during the country’s worst fuel shortage in a decade due to a dispute between oil-product marketers and the outgoing government. The shortage left service stations closed, aircraft grounded, and businesses unable to operate. A lack of oil refining capacity means Nigeria subsidizes gasoline imports and suffers frequent fuel shortages even though it’s Africa’s biggest crude producer of about 2 million barrels a day. President Muhammadu Buhari, who […]

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Natural Gas Production in East Africa: An Inevitable Resource Curse

East African nations such as Mozambique, Uganda, Tanzania, and Kenya are experiencing a boom in oil and natural gas production that is increasingly exported by Western production companies to meet growing global demand. While these activities may appear to be an economic boon to these countries, the problem is that they could potentially cause natural gas to be a “ resource curse ” for these developing nations. A resource curse, or a “paradox of plenty,” can occur when the extraction of natural resources like fossil fuels and minerals in resource-rich countries contributes to slower economic growth than countries that are less abundant in these same natural resources. This effect could be mitigated if the government takes proactive steps to grow the rest of the economy, facilitate skills transfer, and combat corruption. Several economic mechanisms contribute to the resource curse. The import of foreign currency needed for foreign firms to […]

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Tullow Oil to Settle Uganda Tax Dispute for $250 Million

Tullow Oil Plc settled a capital gains tax dispute with the government of Uganda after agreeing to pay $250 million related to a 2012 deal with Total SA and Cnooc Ltd. The company paid $142 million at the time and will pay the remaining $108 million in three equal installments, it said Monday in a statement. The first $36 million portion has already been paid with remainder due in 2016 and 2017, it said. Significant output of oil in Uganda, first discovered there in 2006, has been restrained by delays including wrangling between the East African country and companies about how much crude to process locally or export through a pipeline. Uganda has an estimated 3.5 billion barrels of crude, according to the Energy Ministry, with Tullow, Total and Cnooc planning to tap the Lake Albert fields. “In recent months, the government of Uganda has proposed welcome and necessary […]

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Nigeria: Oil Glut – Crude Differential Hits 10-Year Low

As the nagging oversupply of physical oil takes its toll, official prices for Nigerian crude have hit their lowest in at least a decade. The Nigerian National Petroleum Corp (NNPC) lowered the official selling price for its largest crude oil stream, Qua Iboe, to dated Brent plus 35 cents per barrel, the lowest differential since May 2005. Bonny Light, once in demand for its high yield of valuable motor fuels, fell to dated Brent plus 23 cents, with the differential below May 2005 levels, traders said. According to a report by Reuters yesterday, the drop follows North Sea crude, which hit a 10-year low earlier this week as all Atlantic Basin sellers, particularly those with light, sweet oil, struggle to place cargoes. "They’re playing along now, towing the line with other OPEC members to try and capture market share," said Kash Kamal, senior research analyst with Sucden. Nigeria is […]

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Nigeria: Four Refineries to Resume Production in July

Nigeria’s four refineries are set to roll back to life in July, the Nigerian National Petroleum Corporation has said. Ohi Alegbe, the spokesperson for the NNPC told PREMIUM TIMES on Saturday that the ongoing phased maintenance of the refineries was nearing completion and that the facilities would soon commence production. "I think by July, the four refineries should begin to work," Mr. Alegbe said. He said the two refineries in Port Harcourt are scheduled to begin to receive crude next week while those in Warri and Port Harcourt would follow shortly after. Mr. Alegbe said the turnaround maintenance of the refineries, which he said began in November 2014, was being undertaken by NNPC’s in-house engineers. "We had to resort to in-house engineers after the original builders of the refineries, who were called in to do the job, kept coming up with outrageous bills," he said. He said parts of […]

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Shale Fallout Torments Nigeria as Flagship Oil at Decade-Low

The shale boom that’s reduced U.S. dependence on overseas crude is reverberating in Nigeria as Africa’s biggest oil producer cuts the pricing for its flagship grade to the lowest in a decade. The country, part of the Organization of Petroleum Exporting Countries, will sell July supplies of its Bonny Light crude at 23 cents more than Dated Brent, according to an e-mailed statement from state-run Nigerian National Petroleum Corp. That’s the smallest differential since 2005 and compares with a 50 cent premium in June and $2.55 a year earlier, data compiled by Bloomberg show. Surging output from U.S. shale formations contributed to a market glut that drove crude down almost 50 percent last year, roiling global markets as producer nations lost revenue and foreign-exchange reserves. While oil has pared losses this year, prices are still below what some producers including Nigeria and other OPEC members need to balance their […]

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Nigeria’s Central Bank Said to Call Meeting Friday on FX Rules

Nigeria’s central bank will meet with banking executives and currency dealers on Friday and will probably discuss foreign-exchange trading restrictions, people familiar with the matter said. While the agenda hasn’t been disclosed, officials from the Central Bank of Nigeria may consult about easing currency trading rules, according to three people with knowledge of the matter, who asked not to be identified as the meeting is private. Traders and bankers have called for a loosening of controls enforced by central bank Governor Godwin Emefiele to protect the currency of Africa’s biggest oil producer against a 40 percent slump in Brent crude prices in the past year. The naira has weakened 18 percent against the dollar in that period. Central bank spokesmen Ibrahim Mu’azu and Ugochukwu Okoroafor couldn’t immediately confirm whether a meeting is taking place when contacted by phone on Thursday.

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Nigeria Loses $11.5bn to Tumbling Oil Prices

The federal government and the oil and gas producing companies may have lost an estimated $11.5billion to the drop in the price of Brent crude oil from $115 per barrel in June to $68.62 yesterday, THISDAY has learnt. With Nigeria producing about 2.4 million barrels per day and exporting 2.2 million barrels per day, the country may have lost as much as $11.5 billion between June and November this year, forcing the federal government to introduce a raft of measures to shore up its revenue in the face of dwindling earning from crude oil, its main revenue source. The situation may even become more dire should the slide persist. When THISDAY called the Minister of Finance and coordinating Minister of the Economy, Ngozi Okonjo-Iweala late last night for confirmation of the amount lost so far, she said: “It is not a straight forward arithmetical issue. It is pretty late […]

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Libya in talks to reopen El Feel, El Sharara oilfields

TRIPOLI Libyan authorities will try during the month of Ramadan to reopen pipelines for El Feel and El Sharara oilfields and Zueitina port that have been blocked for weeks by protests and disputes, the state oil company said on Tuesday. The two major oilfields and oil terminal have been shuttered by protesters demanding jobs, disputes among security guards and the country’s conflict between two rival governments battling for control of the north African OPEC state. "The efforts are being carried out by elders, local municipalities, and mediators," National Oil Corporation spokesman Mohamed Harari said, adding talks would take place during Ramadan. "If the three pipelines are reopened, the oil production might reach 800,000 barrels per day." Ramadan is due to start this week. Negotiations to reopen oilfields and ports in Libya often drag on as the oil industry is constantly under siege from protesters seeking jobs or armed factions […]

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Nigeria should sell stakes in joint ventures with foreign partners: auditor

The Nigerian government should start selling off its stakes in oil joint ventures with foreign partners to ease the funding issues and leakage of cash due to corruption and waste which have impeded the country’s bid to increase production, oil industry auditors said Monday. The government through state oil firm Nigerian National Petroleum Corp. holds an average 57% interest in joint ventures with Shell, ExxonMobil, Chevron, Total and Eni, which account for about 90% of Nigeria’s 2 million b/d oil output. "This divestment will open the arrangement for private sector participation," auditor the Nigerian Extractive Industry Transparency Initiative (NEITI) said. "Above all, it will reduce the corrupt practices, waste and other leakages associated with the management of the JVs over the years," the agency said, adding that the recommendation, following a review of the industry by stakeholders, aimed to assist the reform program of the new government. Article continues […]

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Libyan coalition takes on ISIL in Derna

A coalition of armed groups in the Libyan the city of Derna say they have put the Islamic State of Iraq and the Levant (ISIL) group on the backfoot. The Shura Council of Derna declared war on ISIL last week and has been engaged in clashes with the fighters for days after describing ISIL as "tyrants and criminals" and pledging not to let it take root in the city. The Shura Council says it has succeeded in forcing ISIL from mosques and hotels it had seized in western and central parts of Derna. Footage shared on social media showed fighters from the coalition involved in street battles with ISIL. One Minute ISIL ISIL holds territory in Derna, in the east, as well as in the central city of Sirte. The council more than a dozen of its fighters had been wounded in the clashes. ISIL has carried out a […]

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Libya says Algerian militant Belmokhtar killed in U.S. strike

TRIPOLI Libya’s recognized government said on Sunday veteran Algerian militant Mokhtar Belmokhtar had been killed in a U.S. air strike inside Libya as part of counter-terrorism cooperation. Earlier, the U.S. Department of Defense said the U.S. military conducted a counterterrorism strike against an Al Qaida-associated target in Libya on Saturday night, but were assessing results before providing more details. "The Libyan government in the east of Libya confirms that the U.S fighter jets conducted air strikes last night in a mission which resulted in the death of the terrorist Belmokhtar," Libya’s recognised government said. (Reporting by Ahmed Elumami; Additional reporting by Peter Cooney in Washington; Writing by Patrick Markey; Editing by Sandra Maler )

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Nigeria: Country’s Crude Oil Production Rises By 230,900 BPD

Nigeria’s crude oil production output for May, increased by 230,900 barrels per day (bpd), according to the monthly oil market report of the Organisation of Petroleum Exporting Countries (OPEC) released on Wednesday. Specifically, the country’s production output, based on direct communication, rose from 1.650 million barrels per day in April to 1.881 million bpd in May. The country’s crude oil production output for April had earlier increased by 19,000 bpd, while the figure based on secondary sources, put the rise in April at 1.886 bpd from 1.867 bpd recorded in March According to the report, production by member countries in May rose by 24,000 barrels per day (bpd), due to increases in Iraq and Angola and record output in top exporter Saudi Arabia. OPEC said it expected that the world’s oversupply of crude oil to ease over the coming quarters. "The projections for market fundamentals indicate that the current […]

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Nigeria: NEITI Asks President to Prioritise Recovery of Unremitted U.S.$18 Billion Oil Funds

Abuja — The Nigerian Extractive Industries Transparency Initiative (NEITI) yesterday called on President Muhammadu Buhari to consider making it a priority of his government to recover the $18.1 billion unremitted oil and gas funds from oil and gas companies operating in Nigeria. NEITI said that over $7.5 billion, which represents underpayments, under-assessment of taxes, royalties and rents as revealed by several independent audit reports of the agency, as well as $11.6 billion which represents outstanding total dividends arising from loans and interest repayments from the federal government’s investment in the Nigerian Liquefied Natural Gas (NLNG) company were still outstanding. The Executive Secretary of NEITI, Mrs. Zainab Ahmed, stated in Abuja that while these monies were still outstanding, issues around their recoveries had not been adequately addressed in the past. A statement from the agency’s head of communications, Ogbonnaya Orji, disclosed that NEITI had made this call to Buhari at […]

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SOCO Oil Company Paid Large Sums to Officer in Congo, Activists Say

Photo Virunga National Park, the oldest in Africa, has been the center of an intense conflict between the forces of economic development and environmental conservation. Credit Uriel Sinai for The New York Times NAIROBI, Kenya — When a British oil company began prospecting for oil in Africa’s oldest national park , drawing worldwide concern and inspiring an Oscar-nominated documentary last year, the company was adamant in denying any wrongdoing. Though soldiers in the Democratic Republic of Congo may have engaged in a campaign of intimidation and coercion against nearby residents who are opposed to drilling in the park, the company said it could not be held responsible for their actions. “We can’t tell the army to go and kiss off,” Roger Cagle, the deputy chief executive director of the oil company, SOCO International, told The Telegraph newspaper in Britain. He said that the soldiers had been assigned by the […]

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Overpopulated Egypt Seeks to Reduce Fertility Rate by 2030

CAIRO — Egypt aims to reduce its surging fertility rate over the next 15 years, a government minister said Tuesday, in an effort to address overpopulation concerns in the Arab world’s most populous country. With around 90 million people — a population the United Nations projects to hit 103 million by 2030 — Egypt has struggled for decades to provide its citizens with jobs and services. Most Egyptians live on a tiny sliver of land along the Nile River and the Mediterranean coast, away from the vast desert that makes up most of the country. According to a plan laid out by Minister of State for Population Hala Youssef, the government will provide financial incentives to keep children in school, expand family planning services and boost public awareness — while working closely with non-governmental organizations and local communities. The aim is to get Egyptian women to attain a fertility […]

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Nigerian Fuel Marketers Say They Are Working to Ease Shortages

There are indications that fuel marketers, may have agreed to distribute fuel brought in by the Nigerian National Petroleum Company, NNPC, after talking with the new administration last weekend. This is as many petrol stations in Lagos still sell above the official pump price of N87, as other cities are still suffering from shortages despite the end of a fuel distribution strike. After the negotiation last weekend, fuel is expected to become available not just at NNPC retail stations but those owned by major and independent marketers to reduce the queues of double-parked cars. Nigeria now depends wholly on swapping its crude for fuel imports, Obafemi Olawore, Executive Secretary for Major Marketers Association of Nigeria (MOMAN) said, as those waiting for subsidy payments are unable to secure commercial loans to bring in fresh supplies."At the moment we are unable to import because we don’t have the support from the […]

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Egypt: Petroleum Projects Worth U.S.$9.4 Billion Currently Underway in Egypt – Minister

Cairo — The petroleum sector is currently implementing projects worth $9.4 billion, in addition to projects that have been completed, Egypt’s petroleum minister said on Monday. The ministry is seeking to complete projects with an investment value of $3.8 billion before the end of this year, Minister Sherif Ismail said in a statement. These include a major project to produce ethylene and its derivatives. The plant will be based in Alexandria city on Egypt’s Mediterranean coast and production is due to start before the end of 2015. This is said to be the largest petrochemical project in the country. Petrochemical projects are currently a top priority in the ministry’s strategy, the minister said, describing petrochemical projects as a "fundamental pillar" to maximising the value of petroleum wealth. Copyright © 2015 Aswat Masriya. All rights reserved. Distributed by AllAfrica Global Media ( allAfrica.com ). To contact the copyright holder directly […]

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More gas work slated in Egypt

Emirati energy company Dana Gas to drill first of 30 new natural gas wells in the Niger Delta region of Egypt. Map courtesy of Dana Gas. SHARJAH, United Arab Emirates, June 8 (UPI) — Emirati energy company Dana Gas said it started a new drilling campaign in Egypt in a deal that gives it the right to sell the government’s share of reserves. The company said it will spend the next four months drilling into the Balsam-2 concession onshore in the Nile Delta region, the first of an estimated 30 new wells covered under a gas production enhancement agreement. "Balsam-2 is the company’s first horizontal well in Egypt and is a fitting well to kick off this drilling campaign which effectively targets to develop all the Company’s remaining conventional gas reserves," Mark Fenton, Dana’s general manager for Egyptian operations, said in a statement. Dana under the terms of the […]

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International flotilla rescues 5,900 from Mediterranean in a weekend

ROME/LONDON An international rescue fleet plucked almost 5,900 migrants from rickety boats making the perilous sea crossing for North Africa to Europe on Saturday and Sunday, Italy’s coastguard said. The British warship Bulwark assisted in picking up more than 1,000 refugees, including 10 pregnant women, the Ministry of Defense said. The Italian coastguard, which coordinates rescue efforts from Rome, said British, Swedish, Spanish and Italian ships and a merchant vessel had all been called upon to go to the aid of 15 different boats on Sunday, rescuing 2,400 people in all. On Saturday, 3,500 migrants were rescued about 45 miles from the Libyan coast. The tide of migrants and refugees risking the often deadly sea crossing to reach Europe from Africa is on the rise this year and the U.N. refugee agency estimates more than 1,800 have drowned. About 800 perished in a single shipwreck in April. In response, […]

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Libya’s official government says central bank now based in eastern HQ

BAYDA, Libya, June 5 Libya’s internationally recognised government says the central bank’s headquarters have moved to the eastern city of Bayda, although it was not clear how the bank would control and process payments with its staff and computers still in Tripoli. The Bayda-based government is struggling for control of big state institutions with a rival administration in Tripoli and also says it plans to route oil revenues through the east, bypassing the capital. However, foreign buyers are still paying for oil through the Tripoli-based NOC state oil firm. Libya has been engulfed by violence and chaos since Muammar Gaddafi was toppled in 2011, and in August a faction called Libya Dawn seized the capital, forcing the official premier, Abdullah al-Thinni, to flee with his ministers to the east. Ministries and state bodies in Tripoli remain under the control of Thinni’s rivals, who are boycotted by world powers. The […]

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ISIS presents main threat in Libya’s civil war

MISURATA, Libya — As the Islamic State scores new victories in Syria and Iraq, its affiliate in Libya is also on the offensive, consolidating control of Moammar Gaddafi’s former home town and staging a bomb attack on a major city, Misurata. The Islamic State’s growth could further destabilize a country already suffering from a devastating civil war. And Libya could offer the extremists a new base from which to launch attacks elsewhere in North Africa. The Libyan affiliate does not occupy large amounts of territory as the Islamic State does in Syria and Iraq. But in the past few months, the local group has seized Sirte, the coastal city that was Gaddafi’s last redoubt, as well as neighborhoods in the eastern city of Derna. A key reason for the Libyan affiliate’s expansion is the chaos that has enveloped this oil-rich nation since the 2011 Arab Spring revolt. The country […]

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Nigeria: Importation of Refined Petroleum Products Major Drain On Nigeria’s Revenue – PENGASSAN

Abuja — The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Muhamadu Buhari to increase local refining capacity before embarking on any deregulation process This is contained in a statement on Tuesday by PENGASSAN National Public Relations Officer, Mr Emmanuel Ojugbana. The union called on the president to ensure that the focus of deregulation policy was based on local production rather than importation. It said that if local refining was not increased to meet local demand for petroleum products, especially the premium motor spirit (petrol), removing subsidy on petroleum products would bring more hardship on Nigeria. It stated that removing subsidy while the country depended on importation of refined products would make prices of refined products to be out of the reach of the masses and would cause inflation. It said that importation of refined petroleum products was a major drain on the […]

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Nigeria: Fuel Crisis Persists Despite FG, Marketers’ Assurances

Abuja — Despite the assurances by stakeholders in the petroleum sector on the resolution of the crisis in the sector, fuel scarcity has persisted in Abuja with widespread sharp practices recorded across almost all the petrol stations. Of note is the Nigerian National Petroleum Corporation, NNPC, mega stations along the Kubwa Expressway, where some officials of the outlet connived with some policemen and security agents to frustrate motorists and heighten the suffering of Nigerians. Specifically, when Vanguard visited the petrol station, some policemen stationed outside the entrance were collecting N1,000 from some motorists and allowing them to enter into the petrol station through the exit gate, thereby, leaving other motorists who had queued for hours stranded. Only 9 out of 40 pumps dispensing Also, of the over 40 pumps in the station, only about nine were dispensing to motorists. Two of the pumps were selling to the hundreds of […]

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Nigeria: Scarcity – IPMAN Seeks Police Protection, Begins 24-Hour Sale of Fuel

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to the Inspector-General of Police to provide adequate protection for its members, to enable them sell fuel for 24 hours. Chief Chinedu Okoronkwo, IPMAN’s President, made the appeal in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja. Okoronkwo said the appeal had become necessary following the unions directive to its members to sell fuel for 24 hours to clear the queues that had persisted across the country. The president, who expressed concern over the queues, said the measure was to ease the scarcity and make the product available to motorists. "We were not part of the strike that gave birth to the scarcity but we have taken the measure because when the system is burnt all other parts of the body will be affected. "Major marketers, transporters, owners and drivers, in one way or […]

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