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IMF presses Nigeria to devalue naira currency

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

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China returns to play larger role in Angolan November crude program

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

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Angolan Government Cuts Spending by 50% as Oil Revenue Plunges

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

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

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

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Nigeria’s President Buhari Will Keep Oil Minister Post Vacant

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

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

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

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Nigeria Oil Contracts Review Adds to Industry Uncertainty

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

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

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

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

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

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Shell starts new work offshore Nigeria

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

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