Category: Nigeria

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 […]

Click here to view full article at www.bloomberg.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at www.upi.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at www.wsj.com

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 […]

Click here to view full article at allafrica.com

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 […]

Click here to view full article at www.upi.com