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Nigeria: Fuel in Jerry Cans, Long Queues and Mr. President

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 […]

Posted On : Published By : Tom Whipple
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Nigeria: Seeking Solutions to Oil Theft in Nigeria

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 […]

Posted On : Published By : Tom Whipple
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Nigeria: Refineries – Why Nothing Worked

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 […]

Posted On : Published By : Tom Whipple
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Ghana: “Ghana Managing Oil Revenues Well”

A UNITED States non-governmental organization, praised Ghana for managing oil revenues properly. The Revenue Watch Institute, the NGO, has released research indicating that the Ghana Petroleum Funds meet 13 of 16 good governance fundamentals. Researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance. "Together, the Ghana Stabilization Fund and the Ghana Heritage Fund manage more than US$450 million," said Emmanuel Kuyole, Africa Regional coordinator for Revenue Watch. "Thanks to strong legal provisions, citizens have information on how much is deposited, invested and earned. This transparency is a significant gain. Too much sunshine does not spoil anything." Revenue Watch economic analyst, Andrew Bauer, presented the research in Accra. He said Ghana’s good management of its saved funds demonstrates compliance with the provisions of the Petroleum Revenue Management Act. "This must also extend to the act’s requirement […]

Posted On : Published By : Tom Whipple
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Ghana: "Ghana Managing Oil Revenues Well"

A UNITED States non-governmental organization, praised Ghana for managing oil revenues properly. The Revenue Watch Institute, the NGO, has released research indicating that the Ghana Petroleum Funds meet 13 of 16 good governance fundamentals. Researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance. "Together, the Ghana Stabilization Fund and the Ghana Heritage Fund manage more than US$450 million," said Emmanuel Kuyole, Africa Regional coordinator for Revenue Watch. "Thanks to strong legal provisions, citizens have information on how much is deposited, invested and earned. This transparency is a significant gain. Too much sunshine does not spoil anything." Revenue Watch economic analyst, Andrew Bauer, presented the research in Accra. He said Ghana’s good management of its saved funds demonstrates compliance with the provisions of the Petroleum Revenue Management Act. "This must also extend to the act’s requirement […]

Posted On : Published By : Tom Whipple
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Nigerian Firms Win Big in U.S.$40 Billion Oil Contract Awards

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 […]

Posted On : Published By : Tom Whipple
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Ghana's Oil Exploration Quagmire – Date Published: April 15, 2014

As Ghana strives harder to escape the quagmire of oil curse which is the vile menace of oil and gas producing countries in third world countries across the globe, there are already looming signals that Ghana is virtually losing its gravity and battles to the foreign partners in her oil and gas industry. This is resulting due to the suicidal and legal goof the country made from the start when oil and gas production licenses were issued to International Oil Companies (IOCs) at the time most of necessary regulatory authorities, legal frameworks and policies that would hold them account were absent. The regulatory authorities such as Petroleum Commission, and Ghana Gas Company and regulatory frameworks such as the Petroleum Revenue Management Bill, Petroleum Commission Act, and the very belated Local Content Policy, among others, were put in place, a year or more, after commercial production of oil and gas […]

Posted On : Published By : Tom Whipple
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Ghana’s Oil Exploration Quagmire – Date Published: April 15, 2014

As Ghana strives harder to escape the quagmire of oil curse which is the vile menace of oil and gas producing countries in third world countries across the globe, there are already looming signals that Ghana is virtually losing its gravity and battles to the foreign partners in her oil and gas industry. This is resulting due to the suicidal and legal goof the country made from the start when oil and gas production licenses were issued to International Oil Companies (IOCs) at the time most of necessary regulatory authorities, legal frameworks and policies that would hold them account were absent. The regulatory authorities such as Petroleum Commission, and Ghana Gas Company and regulatory frameworks such as the Petroleum Revenue Management Bill, Petroleum Commission Act, and the very belated Local Content Policy, among others, were put in place, a year or more, after commercial production of oil and gas […]

Posted On : Published By : Tom Whipple
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Nigeria: U.S. to Help Nigeria On Crude Oil Theft

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 […]

Posted On : Published By : Tom Whipple