Category: Nigeria

A landmark UK court ruling paves the way for Shell to finally be held accountable for devastating oil pollution in the Niger Delta, Amnesty International said today. "Today’s ruling is a shot across the bows for Shell" said Audrey Gaughran, Amnesty International’s Director of Global Issues. "The court’s message is clear – if you don’t take adequate measures to protect your pipelines from tampering, you could be liable for the damages caused." In a judgment delivered by Mr Justice Akenhead, the London Technological and Construction Court found that short of providing policing or military defence of its pipelines, Shell was responsible for taking reasonable steps to protect them. This would include measures such as installing leak detection systems, surveillance equipment and anti-tamper equipment. The ruling has opened the door for Nigerian claimants to demand compensation if oil leaks were a result of sabotage or theft – if […]

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India ahas replaced the United States of America as the largest importer of Nigeria’s crude with China and Malaysia following closely, the Nigerian National Petroleum Corporation (NNPC) said yesterday. Nigeria has been facing dwindling crude oil sales to the United States as shale oil and gas production there has increased, reducing demand for imports. India now purchases some 30 percent of Nigeria’s daily crude production which currently hovers around 2.5million barrels, while crude oil sales to the US by now stands at about 250,000 barrels per day, according to a statement by NNPC’s spokesman Ohi Alegbe. Speaking in Moscow, Russia at the on-going 21st World Petroleum Congress, Coordinator Corporate Planning and Strategy, Nigerian National Petroleum Corporation, Dr. Tim Okon also told newsmen that the Asian countries have since replaced the US as the biggest consumers of Nigerian crude. Dr. Okon, who also doubles as the Director of Transformation of […]

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India ahas replaced the United States of America as the largest importer of Nigeria’s crude with China and Malaysia following closely, the Nigerian National Petroleum Corporation (NNPC) said yesterday. Nigeria has been facing dwindling crude oil sales to the United States as shale oil and gas production there has increased, reducing demand for imports. India now purchases some 30 percent of Nigeria’s daily crude production which currently hovers around 2.5million barrels, while crude oil sales to the US by now stands at about 250,000 barrels per day, according to a statement by NNPC’s spokesman Ohi Alegbe. Speaking in Moscow, Russia at the on-going 21st World Petroleum Congress, Coordinator Corporate Planning and Strategy, Nigerian National Petroleum Corporation, Dr. Tim Okon also told newsmen that the Asian countries have since replaced the US as the biggest consumers of Nigerian crude. Dr. Okon, who also doubles as the Director of Transformation of […]

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A suspected oil thief rides a wooden boat full of stolen crude oil on the creeks of Bayelsa, Nigeria in May 2013. Nigeria is moving its efforts to cut oil smuggling to target foreign players increasingly implicated in the trade. Associated Press LONDON—Nigeria last month handed down a long prison term, in absentia, to the Indian owner of a vessel suspected of carrying stolen crude—moving its efforts to cut oil smuggling to target foreign players increasingly implicated in the trade. Africa’s largest economy has long battled theft from its oil pipelines in the southern Niger Delta. That’s sapped revenue and scared off foreign investment. Nigerian courts have tried and convicted individual thieves accused of tapping into oil pipelines, or crews arrested on board vessels carrying stolen oil. But authorities have generally not taken action against the international shippers alleged to increasingly carry the oil out to international waters. But […]

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A suspected oil thief rides a wooden boat full of stolen crude oil on the creeks of Bayelsa, Nigeria in May 2013. Nigeria is moving its efforts to cut oil smuggling to target foreign players increasingly implicated in the trade. Associated Press LONDON—Nigeria last month handed down a long prison term, in absentia, to the Indian owner of a vessel suspected of carrying stolen crude—moving its efforts to cut oil smuggling to target foreign players increasingly implicated in the trade. Africa’s largest economy has long battled theft from its oil pipelines in the southern Niger Delta. That’s sapped revenue and scared off foreign investment. Nigerian courts have tried and convicted individual thieves accused of tapping into oil pipelines, or crews arrested on board vessels carrying stolen oil. But authorities have generally not taken action against the international shippers alleged to increasingly carry the oil out to international waters. But […]

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The top executive at a state-owned energy company in Nigeria said the European market is a good one for its abundant natural gas reserves. Members of the European Union are looking for new sources of natural gas in an effort to add diversity to an energy market dominated by Russia. Andrew Yakubu, chief executive of the Nigerian National Petroleum Corp., said Europe could be a good customer for the estimated 187 trillion cubic feet of natural gas that’s been largely untouched in Nigeria. "Europe is a good market for gas," he was quoted by the Platts energy news website as saying Sunday. "We are working on independently marketing our abundant gas resources to Europe." In May, state-led Nigeria LNG Ltd., said it was sending 180 Nigerians to South Korea to learn how to build vessels used in the liquefied natural gas sector. LNG offers more transport […]

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The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has stated that Nigeria no longer has any tangible trade in crude oil with the United States of America, following the shale oil boom in the country. Alison-Madueke said this yesterday at an interactive forum on the Petroleum Industry Bill (PIB) which is awaiting passage at the National Assembly. She warned that the development should spur Nigerians to impress it on the legislature to pass the PIB as soon as possible. The minister said this just as the Chairman, House of Representatives Committee on Petroleum (Downstream), Dakuku Peterside, also disclosed that the National Assembly would in its consideration of the bill expunge a certain provision that allows ministerial discretion in granting extension to the three-year deadline to end gas flaring after the PIB is passed. Represented by the Group Coordinator, Corporate Strategy and Planning of the Nigerian National Petroleum Corporation (NNPC), […]

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Delegates at the on-going National Conference yesterday debated the desirability and otherwise of the much-touted Fuel Subsidy as they spoke either in support or against the complete removal of the subsidy as recommended by the Standing Committee on Public Finance and Revenue. The debate on the committee’s report kicked off after delegates had resumed for the week following the death of the wife of the conference chairman, Justice Idris Kutigi, on Wednesday last week. A total number of 147 delegates indicated interest to comment on the report and as at close of session yesterday evening only about 50 had spoken prompting adjournment and continuation of the debate today. Each delegate spoke with passion on why the Federal Government should either keep subsidising petroleum products for the public or why it should be removed. According to the report, as presented by the committee chairman Senator Adamu Aliero, subsidy on petroleum […]

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Aftermath of Car Bombings in Nigeria People combed through the debris at the site of back-to-back explosions that killed at least 46 people in a crowded business district in the central city of Jos. ABUJA, Nigeria — Two powerful explosions killed scores of people, many of them female vendors, in the central Nigerian city of Jos on Tuesday afternoon, officials and witnesses said. While no one claimed responsibility for the bombing, it occurred as international attention has focused on the Islamist extremist group Boko Haram following the abduction of hundreds of schoolgirls last month and may have been a bloody act of defiance. The blasts shattered a bustling market area as working people were doing afternoon grocery shopping. With rescue operations still underway in a chaotic, smoky tangle of blasted stalls and body parts, the police commissioner confirmed that at least 46 were killed and 45 wounded in the […]

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The Movement for the Emancipation of the Niger Delta (MEND) has claimed responsibility for Sunday’s explosion at the Nigeria National Petroleum Corporation (NNPC) jetty, Okrika, Rivers State, which left an unspecified number of people dead and scores injured. This came as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) called for urgent probe of the incident. In a statement posted online Monday afternoon, MEND said the explosion was part of its Operation ‘Hurricane Exodus" aimed at sabotaging oil installations in the Niger Delta region. The statement signed by its spokesman, Jomo Gbomo, read, "The Movement for the Emancipation of the Niger Delta (MEND) takes responsibility for the sabotage on Sunday, 18 May, 2014 , on the Nigerian National Petroleum Corporation (NNPC) Refinery Jetty pipelines in Okrika, Rivers State of Nigeria" .

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AN unconfirmed number of people have been killed in a pipeline fire that erupted at one of the local pipelines belonging to the Nigeria National Petroleum Corporation NNPC in Port Harcourt, Rivers State. Residents said vandals who were siphoning fuel from one of the corporations damaged pipeline caused the fire explosion. The Chairman of Okrika local government area, where the incident took place, Tamuno Williams, confirmed the incident. “The fire incident is as a result of oil thieves who were siphoning oil from NNPC pipelines. As you can see, there is no management staff of the NNPC or persons you can say are in-charge of the corporations operations here. "The gates of the NNPC remain closed to visitors, so, we have not seen anybody that we can officially lay our complaints.” He berated the NNPC management for allegedly covering up accidents in their facilities. “Those who survived […]

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There is no better demonstration of how Nigerians suffer unduly on account of the padding of project costs by the International Oil Companies, IOCs, operating in the country than in the sudden request by the Nigerian unit of French oil giant, Total for a review of its Ofon 2 project. Total Exploration & Production Nigeria, TEPN, Financial Vanguard reliably gathered, is seeking additional $3.78billion to an existing $2.85billion originally proposed for the project. If approved, this will bring total costs for the project to $6.63billion, representing a whopping 132.6 per cent increase, a development that is giving the Nigerian National Petroleum Corporation, NNPC, a majority partner in the Joint Venture, JV, grave concerns. While cost padding is not peculiar to Total, as it cuts across all the multinational operators, this particular review stands out as the price of crude per barrel is being estimated above the $77.5per barrel being […]

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Nigeria’s oil revenue fell about 9% month-on-month to Naira 474.88 billion ($2.9 billion) in April, due to disruption to oil production and exports at the Shell operated Forcados oil terminal and ExxonMobil’s export terminals, Nigeria’s finance ministry said Friday. "Oil revenue fell to about Naira 474.88 billion in April compared to about Naira 519.99 billion in March. The decline in revenue is due to production shut-in at the Qua Iboe and Yoho terminals as well as the shut down of Forcados," the ministry said in a statement. Consequently, Nigerian government revenue dropped to Naira 584.15 billion in April from Naira 614.35 billion in March. Oil accounts for more than 80% of Nigerian government revenue. But Nigeria’s crude production and exports have declined steadily over the last 12 months because of pipeline problems, production shut-ins and large-scale oil theft. Nigeria’s central bank estimated that the country’s oil production averaged 1.86 […]

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Minister of Finance, Dr. Ngozi Okonjo-Iweala, announced on Thursday that the accounting firm – PriceWaterhouseCoopers (PwC) has been appointed to carry out the audit exercise on the Nigerian National Petroleum Corporation (NNPC) over the alledge missing $20 billion. She spoke during a debate at the 24the edition of the World Economic Forum for Africa with theme: "Forging inclusive growth, creating jobs." Okonjo-Iweala said the exercise would be carried out within 16 weeks under the supervision of the Office of the Auditor General of the Federation. The suspended Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, had blown the whistle on a missing $20 billion, which he claimed was not remitted to the federation account by the NNPC. Following the controversy generated by the revelation, Okonjo-Iweala said the forensic audit would help unravel all mystery surrounding the missing fund. "On the issue of holding government to account, […]

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The allegation of contract inflation in the oil and gas industry by oil firms, particularly, international oil companies (IOCs) operating in Nigeria is generating ripples in the sector, THISDAY investigations have revealed. Presidency sources hinted that top officials of multinational oil companies use their connections in the presidency to secure oil and gas contracts at very exorbitant rates, when compared to costs of executing similar projects in other parts of the world. It was gathered that the oil majors often bypass the Nigerian National Petroleum Corporation (NNPC) to get direct approval from the presidency on multi-billion dollar projects that were hitherto disapproved by the corporation because final costs of their execution were ridiculously high. A Canadian oil company operating in Nigeria was said to have recently submitted a tender for a multi-billion dollar project, for which the cost was far higher than what it takes to execute similar project […]

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Transnational Corp. of Nigeria Plc , which has interests ranging from agriculture to oil, said it will drill wells on its prospecting lease after signing a production-sharing deal with the state oil company. Transcorp paid $30 million for oil-prospecting lease 281, or OPL 281, following a sale by the Nigerian government in 2007. The lease holds an estimated 104 million barrels of oil reserves, 335 million barrels of probable additional reserves and about 4 trillion cubic feet of gas, the Lagos-based company said today in an e-mailed statement. “We are excited by this development and the opportunity to fully exploit the huge reserves and gas resources,” said company Chairman Tony Elumelu. “We will produce enough gas to run our Ughelli plant to its current installed capacity of 1,000 megawatt and expand this to over 3,000 megawatt in the near future.” Transcorp, 44 percent owned by Elumelu, was set up […]

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I drove into Mobil fuel station on International Airport Road, Lagos, sometime last week and after sitting on the rather long queue, it finally got to my turn. I alighted, opened the boot of the car and made to bring out a 25 litre jerry can that has become a permanent companion since this lingering fuel scarcity started about two months ago but the meter attendant shocked me by saying, ‘Oga, we nor dey sell for keg o. I asked why, he said, ‘dem dey raid us, task force people, so our manager say make we nor sell for keg again’." I was now very angry and told him I would not move my car unless he sells in the jerry can. I guess he saw the resolve in my eyes and after using his eyes to pan around the fuel station, probably to see if his manager was […]

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The oil industry in Nigeria, like every other sector, has its own peculiar problems. In fact, it has been said over and over again by those who have ample knowledge about Nigeria oil industry that the greatest theft in the industry across the world, takes place in Nigeria. According to statistics, as much as $8 billion a year is lost to oil thieves operating in Nigeria. The figure, a report said, is based on an claims that an average of 100,000 barrels a day (b/d) are stolen from the country’s oil industry, a figure some persons have said, is conservative. Another report, while looking at the major challenges and reasons why the illicit trade thrives, says Politicians, security forces, militants, oil-industry staff, oil traders and members of local communities, all profit from "bunkering" of oil, so few have interest in stopping it. Profits from the crude stealing, are laundered […]

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Some fifty-six years ago, Nigeria’s first barrel of crude oil made its uncertain entry into the global oil market. It was largely an event unnoticed. But with it, Nigeria put a knife to the string that bound it to the stake of poverty. It took a leap into that very desirable and rarefied realm of the dollar, petrodollar. The country’s vast forests of cocoa and palm trees, its pyramids of groundnuts rising like sculptured mountains into the sky and its extensive fields of cotton began their retreat as the wheels of fortune, oil fortune, rumbled on carrying Nigeria into the comity of nations blessed by God. Among the more than 40 countries on the face of the earth endowed with crude oil, there is none that does not have its refineries. Whereas Venezuela, a country the size of Lagos State in Nigeria and the ninth largest exporter of crude […]

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Shell Nigeria has said its Forcados oil export terminal remains closed, seven weeks after it was shut down to repair a sabotaged undersea pipeline.  Militants had claimed responsibility for the Continue Reading

The Nigerian National Petroleum Corporation (NNPC) has awarded yearly crude oil lifting contracts worth about $40 billion to mostly Nigerian companies, and by so doing, downsizing contracts awarded to international oil traders. In a break with tradition, no contracts were given directly to foreign traders such as Glencore, Trafigura and Vitol, with only Switzerland’s Mercuria winning a contract, according to a list obtained by Reuters news agency. By this development, global traders need to partner with the local companies to access crude from Nigeria, Africa’s top producer. The crude lifting contracts cover around 340 million barrels of oil, worth close to $40 billion annually based on current Brent prices, and run for a year, though they can be renewed. They were allocated to just 28 companies, as against about 50 in 2012. The list, released by the NNPC, according to the newswire is preliminary and subject to revision. A […]

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The United States Ambassador to Nigeria yesterday said his country was willing to help Nigeria tackle crude oil theft. Mr James Entwistle said this at the opening of this year’s edition of a multi-national military exercise in Lagos, codenamed Obangame Express 2014. He said a report has been prepared on a request made by Nigeria on ending crude oil theft. "As many of you are aware, last September, when President Jonathan and President Obama met in New York, we were asked to help your government in the struggle against oil bunkering. We sent out an inter-agency delegation and have delivered a report to your government," he added. The ambassador said: "US remains absolutely committed to collaborating with and supporting Nigeria in its ongoing efforts to increase maritime safety and security in the region." Earlier, Chief of Naval Staff Vice Admiral Usman Jibrin told journalists that the Navy […]

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IN the last two months, Nigerians have groaned under the pain of fuel scarcity. Since February they have been wondering if and when solution would be found to the persistent scarcity. Their wondering has turned into fear that this scarcity is another ploy by government to increase the pump price of fuel. This fear was first expressed soon after the scarcity became evident across the country. The reason for this was simply because of the speculation which began towards the end of last year that government planned to increase the price of fuel. The planned strike of oil workers early this year to protest against the privatisation of refineries, many thought, was aimed at thwarting the increment in fuel prices that was seen as the expected outcome of privatisation. There were assurances thereafter that the refineries would not be privatised and for which reason the strike was called off. […]

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Nigeria’s total crude export declined by 13.45 per cent, between December 2012 and December 2013, leading to a loss of $1.134 billion, about N181.44 billion, due largely to a 90 per cent drop in crude oil exports to the United States which has stepped up production of shale oil and gas, LEADERSHIP has learnt. Specifically, the country recorded total crude export of 64.537 million barrels in December 2013, down by 10.03 million barrels from 74.564 million barrels recorded at the end of 2012. As a result, the country earned $7.299 billion, about N1.168 trillion, from crude export as at December 2013, down by $1.134 billion (N181.44 billion) from $8.434 billion, about N1.349 trillion, recorded in December 2012. KPMG Professional Services had in February warned that the discovery and exploration of shale oil and gas across the globe would put Nigeria’s economy at serious risk, unless the country was able […]

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The Nigerian National Petroleum Corporation, NNPC, has put the combined average capacity utilisation of Nigeria’s four refineries at 25.95 per cent for the month of December 2013. According to data from the NNPC’s December 2013 Monthly Petroleum Information, this is a significant improvement from the 6.46 per cent average capacity utilisation of the refineries in November 2013, and a slight decline from the 30.87 per cent utilisation year on year to December 2012. The refineries are the Kaduna Refining and Petrochemical Company (KRPC), Port Harcourt Refining Company (PHRC 1 & 2), and the Warri Refining and Petrochemical Company (WRPC). Specifically, the NNPC put the respective average capacity utilisation of the refineries in December, as: KRPC – 32.96 per cent, PHRC – 4.48 per cent, and WRPC – 40.41 per cent. According to the NNPC, 388,000 metric tonnes, MT, of dry crude oil, condensate and slop was received by the […]

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The Nigerian National Petroleum Corporation, NNPC, has put the combined average capacity utilisation of Nigeria’s four refineries at 25.95 per cent for the month of December 2013. According to data from the NNPC’s December 2013 Monthly Petroleum Information, this is a significant improvement from the 6.46 per cent average capacity utilisation of the refineries in November 2013, and a slight decline from the 30.87 per cent utilisation year on year to December 2012. The refineries are the Kaduna Refining and Petrochemical Company (KRPC), Port Harcourt Refining Company (PHRC 1 & 2), and the Warri Refining and Petrochemical Company (WRPC). Specifically, the NNPC put the respective average capacity utilisation of the refineries in December, as: KRPC – 32.96 per cent, PHRC – 4.48 per cent, and WRPC – 40.41 per cent. According to the NNPC, 388,000 metric tonnes, MT, of dry crude oil, condensate and slop was received by the […]

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Emergency workers at the scene of an explosion on Monday that killed at least 71 people in Abuja. LAGOS, Nigeria — Militants struck near the heart of the Nigerian state early Monday, bombing a bus station in the capital, Abuja, just miles from the seat of government in one of the worst attacks in years in the country’s struggle with insurgents. At least 71 people were killed in a blast that ripped through dozens of vans and coaches, leaving a grim spectacle of dead and wounded. Top Nigerian officials, whose offices are a short distance away, immediately attributed the bombing to the Islamist group they have been battling for years, Boko Haram. If that turns out to be the case — and the group itself rarely acknowledges its actions — Monday’s bombing would represent a significant amplification of Boko Haram’s bloody campaign to undermine the Nigerian state. Over the […]

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An explosion has blasted through a busy commuter bus station on the outskirts of Nigeria’s capital, Abuja, as hundreds of people were traveling to work. Many are feared dead. The blast destroyed more than 30 vehicles and caused secondary explosions as their fuel tanks exploded and burned. The Boko Haram terrorist network has been threatening to attack the capital, in the middle of the country and hundreds of miles from its traditional base in the northeast, where it has killed hundreds of people this year. The Islamic extremists claimed a 2011 suicide bombing by two explosives-laden cars that drove into the lobby of the United Nations office building in Abuja. It killed at least 21 people and wounded 60.

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Oil India Ltd. (OINL) , the nation’s second-biggest state-run explorer, is studying an acquisition of Nigerian oil and gas assets owned by Royal Dutch Shell Plc (RDSA) , according to people familiar with the matter. Oil India is weighing a bid for stakes Shell holds in some onshore blocks, valued at as much as $2 billion, the people said. It will partner with India’s Sandesara Group on the potential purchase, according to the people, who asked not to be identified as the deliberations are private. The explorer joins Dangote Group , controlled by Africa’s richest man, and Seplat Petroleum Development Co. in seeking to acquire Nigerian assets being sold by Western rivals. Shell and Chevron Corp. are divesting fields in the country amid persistent violence and crude theft in the oil-rich Niger River delta. India’s government-run oil companies are building on their record $5.5 billion of acquisitions last year […]

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QUEUES for petrol still dot many Nigerian cities and villages. This is to tell government that importation would never solve the country’s challenges with fuel. Groups that once challenged governments over the matter have long gone to other affairs, seeing how selective governments remain about matters on which they heed advice. Nobody bothers government any longer about the domestic refineries,which are oscillating between public and private ownership. In moments of apparent concern or fitful wakefulness, government announces privatisation or sale of refineries. After predictable public outbursts rejecting the proposal, our listening government relents. A long bout of silence ensures. What appears uttermost in the minds of Nigerians is getting affordable fuel for their vehicles and to run their power generators, without which they are guaranteed darkness. Many parts, these days, go for weeks without electricity. Where it is available, it is at most epileptic. The concentration on getting through […]

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Oil theft looks set to push Nigeria off its spot as top African crude oil exporter in May and exports could fall to their lowest since records began in 2009, data have shown. Nigerian exports in May are set to be at around 1.59 million barrels per day (bpd) excluding the Forcados and Ebok grades of crude oil, which had still not emerged. Exports are far below the high above 2.2 million bpd reached in 2011, and the May figure is set to fall beneath the exports of Angola, which is usually the continent’s second largest exporter. According to Reuters, Angolan exports in May were set to be 1.67 million bpd, a provisional shipping list indicated. Production of the Forcados grade has been hit by underwater pipeline leakage due to oil theft which led operator, Shell, to declare a force majeure on the grade last week.   Copyright © […]

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NIGERIA has started to witness the negative effect of shale oil exploration in the United Stated of America, USA, and other parts of the world, as Nigeria’s crude oil export to North America dropped by 91.31 per cent in one year. Specifically, data obtained from the Nigerian National Petroleum Corporation’s, December 2013 Petroleum Information, disclosed that Nigeria exported 1.438 million barrels of crude oil to North America as at December 2013, down by 15.111 million barrels in December 2012. North America accounted for 22.19 per cent of Nigeria’s total crude export by December 2012, but it dropped to 2.23 per cent by December 2013. Prior to the decline, the US was the highest buyer of Nigeria’s crude, purchasing 14.279 million barrels in December 2012, thereby, accounting for 19.15 per cent of Nigeria’s total crude export and 86.28 per cent of total crude export to North America. By 2013 end, […]

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NIGERIA has started to witness the negative effect of shale oil exploration in the United Stated of America, USA, and other parts of the world, as Nigeria’s crude oil export to North America dropped by 91.31 per cent in one year. Specifically, data obtained from the Nigerian National Petroleum Corporation’s, December 2013 Petroleum Information, disclosed that Nigeria exported 1.438 million barrels of crude oil to North America as at December 2013, down by 15.111 million barrels in December 2012. North America accounted for 22.19 per cent of Nigeria’s total crude export by December 2012, but it dropped to 2.23 per cent by December 2013. Prior to the decline, the US was the highest buyer of Nigeria’s crude, purchasing 14.279 million barrels in December 2012, thereby, accounting for 19.15 per cent of Nigeria’s total crude export and 86.28 per cent of total crude export to North America. By 2013 end, […]

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The man in the large SUV forces his way to the front of the line at the gas station, ignoring the blaring horns and threats of fisticuffs from drivers who have slept in their cars and waited for more than 12 hours for the scarce fuel. Raw anger and frayed tempers give way to resignation as the big man wins, waved in by fuel attendants, no doubt expecting a bribe. Nigeria, despite being Africa’s biggest petroleum producer, has been dogged by a fuel shortage for weeks. In this West African nation that does not only mean scarce gas to keep cars on the road. It means no diesel to run generators that are the lifeblood of industry in a country where frequent power cuts last hours. It means no kerosene for stoves used to cook meals by tens of millions of poor people. […]

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Nigeria overtook South Africa on Sunday to become Africa’s largest economy and 26th largest in the world after the government released updated figures that nearly doubled estimates for gross domestic product. As a result of the statistical revision, Nigerian GDP for 2013 was $509bn, 89 per cent larger than previously stated for last year. The change was made by bringing forward the base year for calculations to 2010 from 1990, when the structure of the economy was very different and services such as banking and telecoms had barely taken off. Companies ranging from Nestlé and Standard Bank to Heineken and MTB have already poured millions of dollars into Nigeria but foreign businessmen and analysts said the revision could serve as a catalyst for further investment. “The revision will have a psychological impact. It underlines to foreign investors that this country has a large consumer base. It validates the […]

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The nation’s pioneer crude oil refining plant, Warri Refinery and Petrochemical Company (WRPC), has again been shut down. LEADERSHIP learnt that the plant was shut down last Friday following some operational challenges, especially at some of its strategic units. It was learnt that hitches with some major units, particularly Fluid Cracking Catalyst (FCC), regarded as heart of refining operation, Topping and Reforming units, made the shutdown of the plant inevitable. Findings showed, for instance, that Catalyst, a feedstock of FCC unit, was in short supply while there was a haulage crisis at Topping Unit (TU), whose fate was said to have impacted the Reforming Unit (RU). The latest development coincided with the vandalisation of the pipeline which conveys crude oil from the various fields of Chevron Nigeria Ltd (CNL) in Escravos to Warri and Kaduna refineries. The pipeline, known as System 2C, is reported to have been ruptured by […]

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THE history of crude oil production in Nigeria informs us that the Shell Oil Company was the first to discover oil in commercial quantity in Nigeria. The location was Oloibriri (now in Bayelsa State), and the year was 1956. Two years later, Nigeria’s first consignment of crude oil was exported from the Oloibiri oil fields. But what is not well advertised is the fact that gas flaring has been taking place in Nigeria since 1958. The ecological disaster and associated consequences of gas flaring in Nigeria have been well-documented, and do not constitute the main objective in this dispatch from America. As a Vanguard newspaper reporter, I once joined the Nigerian Navy on an exercise in Escravos. As we flew in their helicopter above the off-shore oil rigs at night, we could see what looked like a festival of a million tongues of fire in the ocean. Our Navy […]

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Some oil marketers on Monday threatened to embark on industrial strike following the shutdown of Nigerian Independent Petroleum Company (NIPCO) by National Union of Petroleum and Natural Gas Workers (NUPENG). The News Agency reports that NUPENG shutdown the NIPCO facilities on March 24. Mr Abidemi Agunbiade, Chairman, a concerned group of IPMAN, expressed worries over the looming fuel scarcity in an interview with the News Agency of Nigeria (NAN) in Lagos. Agunbiade said that the shutdown of the NIPCO had affected over 1,000 marketers who had paid money to load petrol. According to him, over 450 million litres of fuel imported to discharge into NIPCO depot are still on the high seas due to the shutdown of the company. "About four vessels are on the high seas including those of the NNPC. "The stranded vessels are paying demurrage of 15,000 dollars to 20,000 dollars on daily basis due to […]

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Another round of fuel scarcity is looming following plans by the leadership of the Independent Marketers Association of Nigeria (IPMAN) to shut its over 10,000 fuel stations across the country in protest of the closure of NIPCO by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG). NUPENG closed down the operations of the NIPCO Plc, a subsidiary of IPMAN, due to the ongoing leadership tussle rocking the association. The crisis began following a court ruling declaring Chief Lawson Obasi, former zonal chairman of IPMAN, south-east region, as president of the association. But the current IPMAN president, Aminu Abdulkadir, maintains that the association remains an indivisible entity, adding that anybody who claims to be a leader besides the elected officials is going against a court order which has not yet been vacated. Speaking through his special adviser, media, Mr Ezekwesili Maduagwuna, yesterday, Abdulkadir maintained that the involvement by […]

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The Management of Shell Petroleum Development Corporation, SPDC, on Thursday said it had declared a force majeure on the lifting of crude from its Forcados facility in Warri, Delta State. The SPDC’s spokesperson, Precious Okolobo, in an email to PREMIUM TIMES, stated that the action was taken on Tuesday to allow for repairs on the 48-inch crude export pipeline. Mr. Okolobo noted that the subsea line was shut when a leak was discovered on March 4, leading to suspension of SPDC and third party crude oil exports through the terminal. A part of the mail read: "The SPDC Joint Venture declared force majeure on lifting of Forcados blend effective 0900hrs on Tuesday, March 25, 2014, due to ongoing repairs on the 48-inch crude export line at Forcados Terminal in the Western Niger Delta. The subsea line was shut when a leak was discovered on March 4, 2014, leading to […]

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Nigeria’s export of crude oil has suffered a major setback as Shell Petroleum Development Company (SPDC) yesterday declared force majeure on the export of Forcados grade of crude oil after it had shut down the 400,000 barrels per day capacity Forcados export terminal in Delta State. The declaration of he force majeure has freed the oil giant from contractual obligations to its customers due to circumstances beyond its control. Shell and other third parties export crude oil from the Western Niger Delta through the Forcados terminal, which was once shut down on October 19, 2012, due to flooding and damage to the supply pipelines. However, the company resumed loadings at the terminal on November 21, 2012 and also lifted the force majeure declared on exports of Forcados grade of crude oil. Before yesterday’s declaration of force majeure on Forcados exports, the export terminal had earlier been shut down when […]

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Nnimmo Bassey , an award-winning environmentalist, is one of Africa’s leading campaigners, particularly for his work in Nigeria’s oil-rich Niger Delta region. Mr. Bassey was a human rights advocate in the 1980s. He was imprisoned many times by late president Sani Abacha’s government in the 1990s. He is co-founder and chair of Friends of the Earth International and Environmental Rights Action. In 2009, Time magazine named him one of the Heroes of the Environment. In this interview with Yemisi Akinbobola for Africa Renewal, Mr. Bassey discusses the continuing protests by the Niger Delta people against oil pollution and makes the case for compensation. Can you provide some historical context to the struggle in the Niger Delta region? It’s really a long history. The first commercial export of oil was in 1958, but before then there had been some very serious encounters with forces whose major interest was to exploit […]

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Nnimmo Bassey , an award-winning environmentalist, is one of Africa’s leading campaigners, particularly for his work in Nigeria’s oil-rich Niger Delta region. Mr. Bassey was a human rights advocate in the 1980s. He was imprisoned many times by late president Sani Abacha’s government in the 1990s. He is co-founder and chair of Friends of the Earth International and Environmental Rights Action. In 2009, Time magazine named him one of the Heroes of the Environment. In this interview with Yemisi Akinbobola for Africa Renewal, Mr. Bassey discusses the continuing protests by the Niger Delta people against oil pollution and makes the case for compensation. Can you provide some historical context to the struggle in the Niger Delta region? It’s really a long history. The first commercial export of oil was in 1958, but before then there had been some very serious encounters with forces whose major interest was to exploit […]

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The Federal Government appears set to privatise the nation’s four refineries in Port-Hacourt, Warri and Kaduna. Mr. Ben Dikki, the Director-General of the Bureau of Public Enterprises, BPE, announced this at a briefing in Abuja, yesterday. He said however, that his team would first secure the cooperation of labour leaders, especially in the oil industry before taking concrete steps in that regard. His words, "it should be noted that the labour unions have expressed their willingness to dialogue with government to develop appropriate business models for the refineries. This will be followed up and should lead to the commencement of the privatization process in 2014. "The steering committee is expected to commence work soon and develop an appropriate framework for privatization that is acceptable to all stakeholders. "The labour leaders have said that they are not averse to the privatization of the refineries. What they want is […]

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The Nigerian National Petroleum Corporation (NNPC) said Tuesday that Nigeria lost 300,000 barrels of crude oil per day or 109.50 million barrels in 2013 from severe attacks on critical export pipelines. The NNPC Group Managing Director (GMD), Mr. Andrew Yakubu, gave the figures at the ongoing Nigeria Oil and Gas conference in Abuja, reported the News Agency of Nigeria (NAN). Yakubu said incessant vandalism of crude oil export pipelines and domestic crude oil and petroleum product pipelines impacted negatively on the economy. According to him, what Nigeria lost in 2013 was equivalent to the total output of Equatorial Guinea and larger than the entire production of Ghana, Congo Brazzaville, Cameroun and Gabon. Yakubu said the shut-ins of such significant production had prompted the federal government to take some drastic actions to tackle the […]

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Nigerian oil officials said unchecked theft from pipelines may crimp the African nation’s ability to meet its target of adding 30 percent to crude output by the end of the decade. Stealing and sabotage cost the country 300,000 barrels of oil a day last year, Andrew Yakubu, group managing director of state-owned Nigerian National Petroleum Corp., said today at a conference in Abuja, the capital. Nigeria must do more to maintain its position as Africa ’s biggest producer, he said, adding that the country has a target to raise production to 3 million barrels a day by 2020, from about 2.3 million now. The nation’s oil output fluctuated by as much as 420,000 barrels a day between 2011 and 2013 amid pipeline attacks that halted flows from some fields. Nigeria has responded to theft by starting air surveillance of pipelines and allocating 15 billion naira ($91 million) for security […]

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Exports from a major oil terminal in Nigeria operated by a unit of Royal Dutch Shell PLC (RDSA) remain shut-in nearly two weeks after the discovery of a leak in the export pipeline, a spokesman for the company said Monday. Company employees at the Shell Petroleum Development Co have observed a small sheen around the export line to the Forcados oil terminal in the Western Niger Delta during helicopter flyovers. But a spokesman for Shell said less than 15 barrels of oil had spilled since the leak was first spotted March 4. Nigeria is Africa’s largest oil producer, but leaks from the country’s large network of pipelines–often blamed on oil theft–frequently disrupt its oil exports. Last month, SPDC said it shut its 150,000 barrel-a-day Nembe Creek trunkline because of an oil-theft related leak. Write to Sarah Kent at [email protected]

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Pandemonium broke out, weekend, along Ikate-Akute area of Ogun State following a shootout between operatives of the Inspector General of Police Special Task Force on Anti Pipeline Vandalism Unit and pipeline vandals. A suspected pipeline vandal was arrested, while others reportedly escaped, abandoning five of their operational speed boats with 4,000 empty 50-litre jerry cans. The vandals, said to be numbering over 12, reportedly stormed the spot apparently to vandalise a Nigerian National Petroleum Corporation, NNPC, petroleum pipeline on Saturday morning, when the operatives swooped on them. During interrogation, the arrested suspect, who identified himself as Abbey Daniel, said he indulged in vandalism to save Nigerians from fuel scarcity. He said: "I am terribly sorry. But we did it in an attempt to help Nigerians to get fuel, which has become scarce. "Since the scarcity, Nigerians have been suffering, particularly artisans. And since there is high demand for fuel […]

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The Nigerian Navy says it destroyed 260 illegal oil refineries and burned 100,000 tons of contraband fuel to try to halt oil thefts bedeviling the economy of Africa’s biggest petroleum producer. Commanding officer Capt. Musa Gemu said sailors of the NNS Delta destroyed the refineries in the Warri South-West area of southern Delta region Friday night and arrested five suspects. He spoke Saturday night. Similar missions in the past have failed to slow estimated daily thefts of 200,000 barrels worth more than $20 million. Critics and analysts say most is stolen by politically-connected criminal cartels for sale on the international market. The small-time criminals targeted in such attacks can reconstruct crudely built sites in days. Shell Nigeria, the biggest operator, says it lost $1 billion to oil thefts in 2013.

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… A polluted swamp and river is seen in Goi, a former fishing and farming community, in the Ogoni region of southeast Nigeria. What remains of Goi is the legacy of the Niger delta, heartland of the oil industry that supplies four-fifths of Nigeria’s state revenue and is now soiled by spills, sabotage and contaminated waters. Close Close Open Photographer: Dulue Mbachu/Bloomberg A polluted swamp and river is seen in Goi, a former fishing and farming community, in the Ogoni region of southeast Nigeria. What remains of Goi is the legacy of the Niger delta, heartland of the oil industry that supplies four-fifths of Nigeria’s state revenue and is now soiled by spills, sabotage and contaminated waters. Goi is gone, given over to nature. Residents of the former fishing and farming […]

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