Saudi Arabia Energy Minister Says OPEC Predictions Are Market Based, Not Political

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21st December 2022

…Despite China not joining pro cap nations

From either side of the coin, the consequences of the newly introduced price cap to Russian oil seem to be making fortunes look up for both price cap participating countries and the non-allied nations.

Yesterday, reports say despite the fact China is not part of the pro price cap countries, the country’s independent refiners are delighting from seeing their refining margins jump in recent weeks as they are able to negotiate steeper discounts for their preferred Russian crude grade.

Reuters reported last night that the flow of cheaper Russian crude to China lifted the refining margins of the independent refiners, the so-called teapots, to above $115 (800 Chinese yuan) per ton last week, from less than $86 (600 yuan) at the beginning of December.

Quoting a China-based oil analyst, the global agency said many independent Chinese refiners based in the Shandong province have continued to buy Russian crude and are ignoring the price cap imposed by Western countries.

Also Read: EU Ministers Settle For €180 MWh Gas Price Cap

The price cap on Russian crude imposed by the EU, the G7, and Australia came into effect on December 5, but China hasn’t joined the so-called Price Cap Coalition, which bans maritime transportation services for Russian crude oil unless the oil is sold at or below $60 per barrel.

While China hasn’t joined the Price Cap Coalition, the fact that a price cap now exists gives the world’s top crude oil importer, as well as other buyers of Russian crude like India, more bargaining power to negotiate steep discounts for the Russian crude even outside the price cap mechanism, analysts say.

The report said ESPO, the crude from Russia’s Far East, which is preferred by China’s independent refiners, is being sold above the price cap and estimated at around $65-68 per barrel on a free-on-board basis by trading sources.

Also Read: EU Attempts To Break The Deadlock Over A Natural Gas Price Cap

Notwithstanding that it is being sold above the price cap, “the price of ESPO being negotiated by Chinese refiners is still at a wide discount to ICE Brent futures for the month of delivery of the cargo, currently February and March,” the report said

The trades with ESPO above the price cap suggest that, for now, Russia has the tankers and insurance firms to provide coverage and shipping for the ESPO grade, which can reach China from Russia’s Far East in less than a week.

By Bosco Agba

OPEC Says Nigeria’s Oil Rigs Count Slumped By 50% in 3Years

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21st December 2022

The Organisation of Petroleum Exporting Countries (OPEC) has reported that Nigeria’s oil rigs count crashed 50%, from 16 to eight between 2019 and 2022.

This underscores the magnitude of challenges Nigeria has faced in the oil production sector, and to that extent, the meeting of OPEC monthly allocation over the last decade.

According to the OPEC latest Monthly Oil Market Report (MOMR) report, while the average rigs count was 16 in 2019, it fell to 11 to 2020, and fell further to seven in 2021.

According to the oil cartel, in during Q1, 2022, the count was eight; the number went up to 11 in Q2 of the same year, and yet again fell to nine in the third quarter.

Last September, the total number of rigs was seven and although it rose by one, to eight in October, it was still half the number Nigeria had in 2019 when the sector had not been bugged by production issues.
OPEC stated further that within the period in review, Algeria’s number of rigs also fell from 45 to 32; Angola’s grew from four to nine, while Libya’s rigs count slumped from 14 to six.

Also Read: Survey Names Nigeria, Russia, Others As OPEC Production Laggards

For world rigs count, outside OPEC, the United States rigs fell from 944 to 768 in October, while the UK’s fell from 22 to 15. The global West led by America has been shutting down many of their facilities in preparation for the gradual adoption of renewable energy.

OPEC rigs count was 394 for the period even as non-OPEC was pegged at 1,985. The rigs data for October was released amid a marginal increase of 77,000 barrels per day oil production, during the month and a further rise to 171,000 barrels per day in November.

But the Nigerian National Petroleum Company Limited (NNPC) has put current production at 1.6 million bpd, although traditionally OPEC and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) release production figures.

The production was still about 700,000 barrels per day less than Nigeria’s quota for the month, which in the last few months has been pegged at 1.8 bpd on the average. In total, Nigeria’s output was 1.186 million bpd in November.

The figure, the OPEC report indicated, were far less than what they were in 2020, regarded as the Covid-19 year, when Nigeria produced 1.493 million bpd and in 2021, when it averaged 1.323 million bpd.
The rise in the oil rigs in October was however about 14.2% when put side by side the September figure, which was pegged at a low of seven.

Also Read: OPEC Production Fell In November, 3 Members Boosted Output

In recent times, the country’s active rigs have progressively decreased, but were made worse after Nigeria began shutting down many of its offshore platforms as oil prices took a downward slope and the producers’ group embarked on production curbs to stabilize the market in 2020, following the upsurge of the Covid-19 pandemic.

Union Accuses IOCs Of Flouting Maritime Laws

By

Chidi Ekpewerechi

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21st December 2022

...Threatens to shut down nation’s ports

Maritime Workers Union of Nigeria, [MWUN] has accused international oil companies [IOCs] of flouting the Marine Notice 106 of 2014, and allowing stevedoring companies to deploy dockworkers into their platforms to avoid industrial unrest.

Government Marine Notice 106 applies to all companies and persons engaged in stevedoring work, including dock labour employers and private operators of any work location including ports, jetties, onshore or offshore oil and gas or bonded terminals, inland container depots (ICDS), off dock terminal, dry ports and platforms.

Paragraph 3 of the Government Marine Notice 106 stipulates that: “All operators of ports, jetties, onshore or offshore, oil and gas or bonded terminals, inland container depots (ICDs), offshore dock terminals, dry ports and platforms, and other work locations are hereby given the notice to grant duly appointed stevedoring companies to access to their premises to commence operations.”

Also Read: Navy Names IOCs As Culprits In The Multi-Billion Dollars Oil Theft Ring in Nigeria

Speaking at the union’s national executive council meeting in Lagos, president-general of MWUN, Prince Adeyanju Adewale, called on the federal government to intervene to avoid a shutdown of ports operations early in the New Year.

“It is regretted that the IOCs have refused to comply with said Government Marine Notice 106, since 2014 when it was issued,” he said.

“The international oil companies [1OCs], have persistently disobeyed our extant stevedoring regulations that stipulate that they employ the services of stevedoring companies licensed by NPA to work in their Oil and gas platforms, this is in spite of our numerous engagements to get them to conform to our regulating labour laws and standard.

Also Read: Nigeria: Navy Fingers IOCs in Multi-Billion Dollars Crude Oil Theft Ring

“Consequently, we are compelled to use this occasion to call on the government to compel these IOCs to respect our sovereign laws in accordance with global standards in other to prevent disruptions in service delivery in these formations whether offshore or onshore.

“We have been on this issue for more than four years. We are aware that some of the IOCs have complied, while others have not. We cannot continue like this. We are being pushed to the wall. It is important we are not compelled to begin the New Year with industrial unrest,” the MWUN president said.

Prince Adewale also asserted that there have been cases of unauthorised persons, otherwise called Stowaways, accessing the vessels that berth in our nation’s seaport, illicit cargo.

Also Read: Six IOCS To Remit N380bn For Crude Oil Domestic Sales For July

This situation is made possible because of lack of tally clerks and on board ship gangway men that are statutorily assigned to man security on board vessels.

“We humbly wish to call for the resuscitation of the Pool system in all ports to checkmate influx of illegal persons into the port and prevent under declaration of tonnage/cargo that comes into our ports,” the union president said

Schneider Electric Launches Its BlokSeT Low Voltage Switchboard.

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21st December 2022

...says it enhances safety, reliability, and connectivity for innovative power distribution control

Schneider Electric, the leader of digital transformation of energy management and automation, has announced the launch of its next generation BlokSeT low voltage switchboard.

The company describes the switchboard as a state-of-the-art design that answers the need for superior operational safety in the world of high-performance LV power applications.

“BlokSeT’s intelligent Power and Motor Control Center [iPMCC] is a highly capable and advanced smart solution for fault prevention, protection, and automatic restart,” the company said in a statement yesterday.

It said that safety and reliability have been significantly improved with the iPMCC’s new temperature and humidity monitoring thermal sensors. The permanent thermal monitoring system utilises small plastic non-contact and non-powered IR sensors that extend the maintenance lifecycle and mitigate safety risks such as electrical fires.

Also Read: AfDB Releases $138m For Solar, Mini-Grid Electrification In Niger

Another major design improvement is the new fresh look and feel, which gives the BlokSeT a stylistic ergonomic finish. “This smart innovation makes it easier and safer to operate and maintain the LV switchboard.”

With EcoStruxure IoT-enabled solutions, switchboard data can be collected and analyzed in real-time via wireless connectivity giving operators predictive – rather than preventive – maintenance analysis.

With the next generation BlokSeT LV switchboards, Schneider Electric further establishes its dedication to maximising uptime and enhancing safety, reliability, and connectivity for industry professionals.
The company said its purpose is to empower all to make the most of its energy and resources, bridging progress and sustainability for all. “We call this Life Is On.”

“Our mission is to be your digital partner for Sustainability and Efficiency. We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.” The statement said

Also Read: UEF Announces Deadline For Mini-Grids Projects

Schneider prides itself as ‘the most local of global companies,’ being advocates of open standards and partnership ecosystems that are passionate about its shared meaningful purpose, inclusive and empowered values.

By Bosco Agba

Nigeria: Marketers Exonerate Self From Fuel Scarcity, Expensive Diesel

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20th December 2022

…Says vessel rental prohibitive: costs $85,000 daily

Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) have dissociated themselves from the lingering scarcity, as well as high cost of fuel nationwide.

According to them, the situation is redeemable if only government can apply the will power.
Pointedly, the group said the scarcity of products stems from market forces and logistics challenges beyond union members’ control.

Addressing a media parley yesterday in Abuja, the national president of the association, Mr. Benneth Korie, said oil marketers were battling the double tragedy of foreign exchange scarcity and hike in vessel rental, which he said costs as much as $85,000 daily.

He stated that in order to achieve a steady supply, and price of diesel, the authorities must deal with the cost of and supply of petrol, because it is the surest way of dealing with costly petrol and the attendant scarcity because the logistics needed to ensure adequate petrol supply revolves around diesel.

Also Read: Labour Leaders Say DSS Threat on Marketers Over Fuel Scarcity Will Fail

“You need diesel to power the tankers that load the petrol at the depots. The vessels (ship) also need diesel to function. You need diesel to run the depots and diesel to run the filling stations’ generators. You see it?” he said.

The NOGASA president said his members are faced with the challenges of high cost of renting vessels to import petroleum products, impassable roads, dollar scarcity, increase in product prices overseas, among others.

“So, when people wonder why we are selling products higher, these are the reasons. Before now, we refine in-country. Now, it’s through NNPCL which is now a private sector entity. All products are sourced outside.

“It costs $85,000 per day to rent vessels to bring in products. Add that to the cost of running the depots and filling stations. We are not happy selling at that price but we have no choice.

“We borrow money from the banks to run this business at 30% interest rate. Another issue is bad roads. It’s a major challenge. From PHC to Abuja, no one kilometre without deep pothole. Have you asked now much oil marketers are losing.

Also Read: ‘You Are Serial Liars,’ Nigerian Navy Calls Out NNPC Over Fuel Scarcity

“Many tankers lose products as they fall? Who will pay? Insurance can’t do much here. So, fix roads and dollar issue. We need dollars to remain afloat. NNPC is also suffering. You can’t import products at N600 and sell at N180. It’s tough. We have assurance that NNPC refinery will start working between now and next month ending.

“Prices will go down by then. It’ll eliminate cost of cargo rental and loading. Landing cost is not less than N280/litre,” the NOGASA president added.

By Bosco Agba

U.S. Poised To Become Net Exporter Of Crude Oil In 2023

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20th December 2022

The US has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year.

Sales of U.S. crude to other nations are now a record 3.4 million barrels per day (bpd), with exports of about 3 million bpd of refined products like gasoline and diesel fuel. The United States is also the leading liquefied natural gas (LNG) exporter, where growth is expected to soar in coming years.

But the United States consumes 20 million barrels of crude a day, the most in the world, and its output has never exceeded 13 million bpd. Until recently, the idea that it would be anything but a big crude importer was folly.

Last month, U.S. government data showed net U.S. crude oil imports fell to 1.1 million barrels per day (bpd), the lowest since record keeping began in 2001. That is down sharply from five years ago, when the United States imported more than 7 million barrels per day.

Also Read: Spain Leads Nigeria’s Top 10 Crude Oil Buyers

Factors changing that equation this year include sanctions hurting Russia’s exports of oil and natural gas following its invasion of Ukraine, and Washington’s massive release of oil from emergency reserves to combat spiking gasoline prices.

“Russia’s invasion of Ukraine has spurred new demand for U.S. energy and should push oil exports above imports late next year assuming shale output accelerates,” said Rohit Rathod, market analyst at energy researcher Vortexa To become a net exporter of crude, the United States needs either to boost production or curtail consumption.

U.S. petroleum demand is expected to rise 0.7% to 20.51 million bpd next year, so that means production would have to rise. The United States already produces more oil than any other country in the world including Saudi Arabia and Russia.

U.S. shale fields are aging and production growth this year has been sluggish. Overall output should reach a record 12.34 million bpd next year – but only if prices are lucrative enough to encourage oil drillers to pump more.

European refiners have snapped up U.S. grades to offset the loss of Russian oil, and with U.S. crude’s deeper discounts to global benchmarks, Asian refiners have stepped up purchases to 1.75 million barrels per day, data analytics firm Kpler said.

Also Read: Nigeria Targets 1.6m Barrels Crude Oil Production In Q1, 2023

Export terminal operators are rushing to boost their capacity to better service the giant tankers that can carry more than 2 million barrels of oil.

“Russia has proven to be an unreliable supplier,” said Sean Strawbridge, chief executive of the largest U.S. oil export facility, Port of Corpus Christi. “That really creates a wonderful opportunity for American producers and American energy.”

Corpus Christi could see a 100,000 bpd increase in exports next year, Strawbridge said, on top of the record shipments of 2.2 million bpd in October.

Analysts said net exports could taper off if numerous countries worldwide fall into a recession, hampering demand, and if further relaxation of sanctions on Venezuelan crude oil boosts that country’s shipments.

Reuters

Nigeria’s Cooking Gas Licensing Hijacked By Unqualified Off-takers – Group Allege

By

Chidi Ekpewerechi

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20th December 2022

A gas consumer group has called on the Nigerian authorities to incorporate more qualified Liquefied Petroleum Gas Marketers to enable cooking gas consumers have more cheap and affordable commodity in their various homes.

The group, Cooking Gas Consumers’ Association of Nigeria (CGCAN) said yesterday that licensing other marketers to function as off-takers is what is what obtains in similar climes, and what is needed to deal with the Nigeria situation.

They defined Off-takers as dealers are licensed by Nigerian Liquefied Natural Gas [NLNG] to buy gas directly from NLNG and sell to petroleum gas marketers in the country.

National President of CGCAN, Dr Hakeem Olajide, in the statement said the appeal became necessary following “the shrouded process of selecting who qualifies as an Offtakers by the NLNG.”

Also Read: Nigeria: Price Of Cooking Gas Rises By 0.21%

According to him, the “agency had been accused by some industry players of high-level favoritism in the manner they select Offtakers, who are mostly individuals without the industry requisite qualifications.”

He said some of the unqualified Offtakers are being licensed against the interest of qualified plant gas owners, who ought to be licenced and included as Offtakers for the purposes of making cooking gas more available and affordable to Nigerians.

Olajide said that as a result of the manner the selection of these Off-takers are done and the limited number of those who were selected, there exist a “cabal-controlled market in determining the price of cooking gas in the country, as they now supply the cooking gas to marketers at exorbitant prices.”

Also Read: NNPC, India Partner On Deepening Cooking Gas Access in Nigeria

He lamented that despite the efforts of the federal government through the ministry of petroleum to make the product available for common Nigerians, some alleged cabal has made it impossible for such government efforts to yield any positive results.

The association called on FG to address the issues of Offtaker selection and create room for more qualified hands to be part of the offtaking, in an effort to enable the availability of the commodity to ordinary Nigerians.

EU Ministers Settle For €180 MWh Gas Price Cap

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20th December 2022

ZAJEDNICKA FOTOGRAFIJA — Talin, 8. septembra 2017. - U Talinu se danas odrzava sastanak Saveta ministara spoljnih poslova EU na kojem ucestvuje ministarka evropskih integracija Jadranka Joksimovic, koja je po dolasku istakala da je razmena informacija o radikalizmu i radikalnog ekstremizma vazna za bezbednost zemalja clanica EU, ali i drzava kandidata. FOTO TANJUG/ IGOR SKENDZIC/ bk

European Union [EU] has overcome the few discordant tunes that held up the agreement on price cap, and now have finally reached an agreement to implement a gas price cap of €180/MWh, far lower than the €275/MWh trigger originally suggested by the European Commission.

The pro-cap countries including Poland, Belgium and Greece had argued that the initial cap proposal was too high, stressing that it should to be below €200/MWh if it is to tackle the high gas prices that the continent has grappled with this year.

Interestingly, Germany has also voted to support the price cap despite having reservations that the price cap will negatively impact Europe’s ability to attract gas supplies in tight and price-competitive global markets.

Also Read: EU Attempts To Break The Deadlock Over A Natural Gas Price Cap

What is on the table now is that the EU price cap would not fall below €188/MWh, even in the event that the LNG reference price falls to far lower levels. However, the EU gas price cap would move with the LNG reference price if it increased to higher levels, while remaining €35/MWh above the LNG price.

Analysts posit that this system would ensure the bloc can bid above market prices in order to attract gas in tight markets. Once triggered, the cap will prevent trades being done on the front-month to front-year TTF contracts at a price higher than €35/MWh above a reference price that comprises existing LNG price assessments.

Before now the European Commission had planned to tie benchmark European gas futures prices to the price of liquefied natural gas on the spot market. The “safety price ceiling” would be triggered automatically, when “the front-month TTF derivative settlement price exceeds €275 for two weeks” and, second, when “TTF prices are €58 higher than the LNG reference price for 10 consecutive trading days within the two weeks.”

Also Read: Russia: EC Considers Gas Price Cap Not Feasible

Both moves caused trepidation amongst gas traders. “Even a short intervention would have severe, unintended and irreversible consequences in harming market confidence that the value of gas is known and transparent,” said the European Federation of Energy Traders.

By Bosco Agba

NCDMB Celebrates Milestone Leap In Nigerian Content Development In Style

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20th December 2022

Secretary of the Nigerian Content Development Management Board [NCDMB], Mr. Simbi Wabote has describd 2022 as the board’s year of ‘milestone achievement for the Nigerian content development.’
Looking back during the year, the ES said the content development overall plan moved from 47 to 54%, while the board clinched ‘The Best MDA Award for Ease of Doing Business’

NCDMB staff at end of year party in Yenegoa

At an fun-filled night in the corporate headquarters of the board, Wabote said all the achievements of the board is owed to the committed, hard working staff and the Nigerian content-friendly administration of President Muhammadu Buhari.

The NCDMB boss said the outstanding performance and productivity of staff had lifted the Board to enviable heights as evidenced by results achieved in the course of the year and preceding years.

“This is a place where we have lots of talents,” he stated adding that sometimes he assigns tasks to employees whose competence he has not tested before, but that they always end up producing the best results.

Also Read: Wabote Explains Why NCDMB Uses Golf Tournament To Herald Local Content Forum

“I see people whose thought process is to improve the organization. Their thought process is how to make a difference,” he said, assuring that the Board would always show appreciation, and endeavor to provide good working conditions.

In line with the Board’s plans for a conducive and safe working environment, he drew attention to the excellent workspace and tools in the imposing edifice, and said work on a creche for nursing mothers in the organisation’s workforce is progressing well and would be completed soon.

A fire truck capable of dealing with emergencies even on the 17th floor of the building has been acquired and would also be commissioned soon, he also confirmed.

Explaining the many different benefits the presence of NCDMB in Yenagoa has continued to attract to Bayelsa State, he said a 204-room hotel of five-star ranking is being built in the vicinity of the Nigerian Content Towers.

Also Read: NCDMB Boss Commissions PETAN Ultra Modern Secretariat In Port Harcourt

All attired in white, with few exceptions among guests, the audience had the best of classical music and the like from the globally acclaimed Warri Choral Society, while outstanding Nigerian musicians including Tiwa Savage, and comedians completed the pack.

Tunes from the German-British composer George Handel and the best of Mozart were among musical compositions rendered in classical style by the Warri Choral band.

As part of activities at the event, awards were given to deserving staff, among them workers who have put in 10 years and above. Among others honoured were pioneer personnel of the Board who were seconded from the Nigerian National Petroleum Corporation (NNPC).

Also Read: NCDMB Commences Training of 500 Bayelsa Youths on Mobile Phone Tech

Earlier in opening formalities, the manager, corporate communications, Mr. Esueme Dan Kikile, had emphasized that 54% level in Nigerian Content is an appreciable leap in in-country value retention.
According to the board’s spokesman, the figure translates to the retention of $54 of every $100 expended by oil and gas companies in industry operations.

“Before 2010, the year of enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, Nigerian Content was as low as 5%, and the country bled from capital flight,” Kikile stated.

Lead Refit Engineer at Nigeria LNG Limited (NLNG)

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19th December 2022

Job Title: Lead Refit Engineer

Reference Code: SDM/2022/1/E
Location: Head Office – Port Harcourt, Rivers

Tasks

To manage and promote the highest achievable maintenance standards, ensure availability and reliability of BGT fleet. Also, initiate and manage repair programs and management of critical equipment on board BGT fleet.

Main Accountabilities

Develop and implement strategy to promulgate efficient maintenance and repair of BGT vessels in accordance with industry best practices, in other to ensure reliability and availability of BGT vessels to support NLNG production capacity.
Oversee and manage technical issues on all BGT vessels and provide technical advice to management and fleet managers on best maintenance strategy or systems to adopt.
Schedule and implement robust ship visit program to identify and control technical and HSE related issues before they develop into incidents or nonconformance’s that may impact on the performance of the fleet.
Plan, execute and attend dry docking of all BGT vessels to ensure quality maintenance of the vessels in line with approved specification, including liaison with Fleet managers in the preparation scope review of material requisition (MR) for adequacy and in the most cost-effective way.
Collate and maintain refit history in terms of scope and cost, critical spare management record and ensure procurement of long lead items in other to minimize unavailability of BGT vessels.
Participate in the development, selection, and periodic review of approved shipyards for the dry docking of BGT vessels. Ensure maintenance of HSE standards of selected yards, competence of yard to carry out refit and advise management of the best in terms of safety, cost, and value.
Develop and implement safety campaigns and programs to improve the technical competence of shipboard officers and ensure adequate training of officers on latest technologies including knowledge sharing and retention programs.

Requirements

Chief Engineer Certificate of Competency (Class 1) in Marine Engineering or B.Sc Degree equivalent in Marine Engineering field at Second Class Lower Division (2:2) and above.
With a minimum 8 years post-graduation work experience out of which 5 years is served in a senior officer category on LNG/LPG carriers including 2 years shore experience in an integrated Shipping/Oil/Gas company

Application Closing Date
5th January, 2023.

Method of Application
Interested and qualified candidates should:
Click Here to Apply Online

NCDMB Committed To Driving Nigeria’s Gas Economy

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19th December 2022

…Commends media practitioners for support

The Nigerian Content Development and Monitoring Board (NCDMB) has challenged media stakeholders in Nigeria to deploy their expertise and tools to boost the nation’s drive toward a gas economy.
The board also said that it is now more committed to expansion in gas utilization and deepening of Nigerian content.

At a one-day capacity building workshop held for media practitioners in Bayelsa and Rivers state, themed “Enhancing Media Competencies to Support Nigerian Content in a Gas Economy,” the head of corporate communications and zonal coordination, NCDMB, Mr. Ginah O. Ginah commended media practitioners for their support in promoting programmes and projects of the Board.

The NCDMB chief noted that the new phase of the Board’s pursuits demands upgrade of skills, hence the workshop. He recalled that the media workshop of 2021 achieved the desired result as the views of the Board on energy transition were widely publicised and have become the general standpoint in the industry.

He explained that for 2022, what is of critical importance is “what the gas economy would be in the next decade,” pointing out the diverse benefits of gas to the economy, which includes food sufficiency, industrialization, increase in Gross Domestic Product (GDP), and electric power sufficiency.

Also Read: NCDMB Boss Commissions PETAN Ultra Modern Secretariat In Port Harcourt

He confirmed that the Board had partnered with 15 firms to set up projects covering modular refining, gas processing, gas distribution, power generation, manufacturing and others and 70% of the investments are on gas-based activities, especially midstream and downstream gas.

Dinah said NCDMB has taken deliberate steps to actualize the federal government’s focus on gas through partnerships with credible investors in projects that would deepen penetration of liquefied petroleum gas (LPG), otherwise known as cooking gas, and compressed natural gas (CNG) penetration.

He listed the Board’s gas-based projects to include the type 3 LPG Composite Cylinder Manufacturing Plant in Polaku, Bayelsa State and at Alaro City, Lekki Free Trade Zone, Lagos, both owned by Rungas Prime Industries Limited.

Other projects include the NEDO Gas Processing Company in Kwale, Delta state, the Duport Midstream’s Energy Park at Egbokor, Edo state and the 10,000 tonnes per day Methanol Production plant at Odioama, Brass, Bayelsa State, being established in partnership with the Nigerian National Petroleum Company Ltd and the Brass Fertilizer and Petrochemical Company.

Also Read: NCDMB On New Strategies, Collaborations To Make Gas Nigeria’s Transition Fuel

He listed other partnership projects to include Triansel Gas Limited in Koko, Delta State, which is working to establish a 5,000 Metric Tons per day LPG Storage and Loading Terminal Facility, as well as Butane Energy Limited, which is establishing LPG Bottling Plants and Depots in Abuja and 10 Northern States.

Others are the investments with MOB Integrated Services for the construction of the 500 Million Tons Inland LPG terminal in Dikko, Niger State, the partnership with Southfield Petroleum to establish 200 million metric standard cubic feet of gas processing plant at Utorogu, Delta State and the collaboration with Amal Technologies to set up a plant in Abuja to produce Smart Gas/Smoke Detector Alarm devices.

The General Manager charged the media to support further investments in gas and give adequate coverage to activities in the gas subsector and the economic potential with a view to attracting more investments.

The Manager Corporate Communications, Barr Esueme Dan Kikile underscored the importance of public engagement, media, and communication in Nigerian Content implementation, adding that NCDMB carries out robust engagements with diverse stakeholders in different sectors across the country.

Also Read: Independent Petroleum Producers Group Throws Weight Behind NCDMB

He stated that the support of the media contributed to the achievement 54 percent Nigerian Content in 2022, which was announced by the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote at the Practical Nigerian Content Workshop held recently at Uyo, Akwa Ibom State.

A resource person and a faculty member with the Pan Atlantic University, Mr. Chido Nwakanma reinforced the challenge to the media, stating, “we have to tell the story of oil and gas and of local content better than we have been doing.” He encouraged media practitioners to go beyond mere reporting of statistics and begin to focus on how the industry impacts on the populace. He charged journalists who are based in the Bayelsa and Rivers State to become authorities in oil and gas reporting. He also advised the journalists to practice solutions journalism, which highlights the issues in the society and focuses on how members of the society are organizing themselves to find solutions to the problems.

By Bosco Agba

US To Replace 3million Barrels Of Its Strategic Petroleum Reserve

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19th December 2022

The US is hoping to replenish its emergency oil reserves, starting with a purchase of three million barrels of crude.

President Joe Biden had released a record 180 million barrels of oil from the Strategic Petroleum Reserve [SPR] to address the supply disruption in the second quarter

The record 180 million barrels release from US SPR was meant to address the significant global supply disruption caused by Russia’s invasion of Ukraine.

“This repurchase is an opportunity to secure a good deal for American taxpayers by repurchasing oil at a lower price than the $96 per barrel average price it was sold for, as well as to strengthen energy security,” the US department of energy said Friday.

The SPR is usually kept for purposes of responding to situations such as hurricane-related shutdowns at oil refineries.

Also Read: Biden Unveils $13.5 Billion Package To Ease Home Energy Costs

The decision to make the biggest ever dip into the emergency oil reserves, was President Joe Biden’s strategy to calm energy markets and protect the world’s biggest economy from Ukraine war shocks.
In March, the US announced plans to release a record one million barrels of oil into the market every day for six months.

Major energy exporter Russia was hit with US and European sanctions soon after it invaded Ukraine in February, causing turmoil on markets.

Kremlin has threatened to use its influence in energy supplies as an economic weapon against the West, which supports Ukraine’s fight to repel Moscow’s invasion.

The releases helped lower fuel prices for American families, the department of energy said. Meanwhile, retail fuel prices are now the cheapest since September 2021 and are down by more than $1.80 per gallon since their peak in June 2022, it added.

Also Read: Republicans Investigate Biden’s “Misuse” Of SPR To Control Prices At The Pump

The Biden administration has repeatedly said that it reserves the right to do more sales if needed.
The crude purchases are being made using a new rule tweak that allows the energy department to buy oil using fixed-price forward purchase contracts and encourage short-term production.

Under current regulations, the department of energy can enter into contracts for future delivery, but the price paid reflects prices at the time that the product is delivered.

“Relative to conventional purchase contracts that expose producers to volatile crude prices, this new approach, when used at scale, can give producers the assurance to make investments today, knowing that the price they receive when they sell to the SPR will be locked in place,” the statement said.

The SPR is the world’s largest supply of emergency crude oil and the federally owned oil stocks are stored in underground salt caverns at four storage sites in Texas and Louisiana.

Also Read: Biden Presents 3-Step Plan To Reverse Rising Oil Prices

The SPR has a long history of protecting the economy and American livelihoods in times of emergency oil shortages, according to the statement.

Nigeria Returns To No 1 Oil Producing Country In Africa

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19th December 2022

Nigeria has reclaimed top position among oil producing countries in Africa. Latest OPEC data show that for the month of November, Nigeria produced more volumes of crude oil more than its closes rivals, Angola, Algeria and Libya.

According to data contained in the recently released Monthly Oil Market Report (MOMR) by the Organization of Petroleum Exporting Countries (OPEC), Nigeria produced 1,158 million barrels per day (mb/d) of crude oil in November, returning to the top position again.

The report said Angola emerged second, producing 1,102 mb/d, while Algeria took third place producing 1,022 mb/d during the month under review.

Meanwhile, according to direct communication from the OPEC data, Nigeria produced 1,186 mb/d of crude oil. Angola took second place producing 1,088 mb/d and Algeria emerged in third place, producing 1,021 mb/d for the month under review.

Also Read: Survey Names Nigeria, Russia, Others As OPEC Production Laggards

Secondary sources indicate that total crude oil production from OPEC member countries averaged 28.83 mb/d in November 2022, lower by 744 thousand barrels per day (tb/d) month-on-month.

The report stated that crude oil production output increased mainly in Nigeria and Angola, while production in Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Iraq declined.

For over a decade, Nigeria has battled crude oil theft in its Niger Delta, the region hosting the country’s major oil and gas assets. However, since the clampdown on the challenges, with the aid of security agencies as well as third-party security outfits, the fortunes of crude oil production has looked up.

The chief upstream investment officer at the NNPC Upstream Investment Management Services (NUIMS), Mr. Bala Wunti, said that the real loss caused by crude oil theft in Nigeria is 700,000 barrels per day, which translates to 21 million barrels per month.

Wunti said that crude oil production in Nigeria is being rescued by better security architecture and patriotic commitment.

Also Read: 2023: OPEC+ Will Focus On Reducing Market Volatility, While Achieving Stability

He stressed that the federal ministry of petroleum resources and the NNPC are working hard to deal with the lack of coordination and cohesion among oil sector players, including regulators, security agencies, host communities, and private security outfits.

He disclosed that Nigeria’s oil production as of December 6 is 1.59 million barrels per day. Wunti had earlier stated that three types of losses occur during crude oil production.

They are, engineering losses, of which nobody accounts for; actual losses where hydrocarbons are produced but get stolen, and; opportunity losses, which arises when operators are unable to produce what was initially planned.

Talking about loss of opportunities, there are occasional losses from increased oil price in the international market, which oil producing nations take advantage of

By Bosco Agba

Russia To Consider Retaliation for Western Oil Embargo In Early 2023

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19th December 2022

Russian Central Bank Governor, Elvira Nabiullina, has said that the country would assess the impact of the Western oil embargo, and could consider retaliation in early next year.

She told a news conference last weekend that it would be difficult to fully appreciate the impact the Western embargo, typified by the price cap on Russian gas, will have on the Russian economy, and that Moscow will explore options in February when more information is available.

“There will also be more information, including about any retaliatory actions from the Russian side,” She said. “We will take all this into account in February.”

The US and its allied in the G7, as well as the European Union visited the Russian state with installment sanctions, the latest of which is insurance ban on Russian crude barrels.

Russia is also being barred from receiving shipping services from western companies. The sanctions were commenced on December 5.

Also Read: Russia Undecided On Nord Stream Gas Pipelines Repairs

The West announced a price cap of $60 per barrel on Russian crude on December 2 after weighing the measure and a price range for months.

However, there have been concerns over the overall effectiveness of the price cap against oil and gas originating from Russia

Some observers are worried that a misplaced price cap could send oil prices soaring higher in an already tight year for energy.

So far, oil prices have continued to slip, with international benchmark Brent crude trading at $78 per barrel at last weekend.

Meanwhile, there have already been shipping disruptions as a result of the EU sanctions. Oil tankers have piled up off the coast of Turkey as ships were asked for proof of insurance coverage.

But Putin had assured that his country’s finances wouldn’t be hit by the new measures, describing the West’s implementation of a price cap as “stupid.”

On the other hand, he warned that energy prices could “skyrocket” for any countries that participated in the price cap.

Also Read: Russia: Oil Revenue Dips Despite High Volume of Exports

The defiant remarks come after Russia’s central bank warned that the price cap and latest round of sanctions were “economic shocks” to the nation.

Last Monday, the EU’s embargo on seaborne Russian oil imports took effect, along with a $60-a-barrel price cap on Moscow’s crude that is meant to prevent a supply shock and limit Putin’s energy revenue.
Companies that abide by the price cap will be able to use European shipping and insurance services to send oil to Asia, where some countries have been snapping up Russian oil at hefty discounts since the invasion of Ukraine.

Experts suspect that if Russia reduces its oil production, it could rock energy markets, worsening the supply shortage and hiking crude prices even higher.

JPMorgan previously predicts that the scenario could cause oil prices to surge as high as $380 a barrel, though Russia is also reportedly considering a price floor.

Nigeria Targets 1.6m Barrels Crude Oil Production In Q1, 2023

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Chidi Ekpewerechi

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19th December 2022

Emboldened by the return of Nigeria’s crude oil production status, the federal government is projecting to hit 1.6 million barrels of oil per day in 2023.

The minister of finance, Mrs. Zainab Ahmed who dropped the hint last weekend, assured that efforts are being made to achieve the target by the first quarter of next year.

OPEC confirmed an oil production mark of 1.185 million (bpd) for Nigeria in November in its Monthly Oil Market Report (MOMR) released early last week.

Nigeria’s output had fallen as low as 1 million in August, the lowest in years. Officials posit that the country’s misfortune is the massive oil theft and vandalisation of infrastructure.

The situation forced a lot of oil sector players, especially the multinationals out of the oil exploration and production space in Nigeria. Some others simply curtailed he volume of their engagements
Oil production stood at 1.014 million barrels in October.

Also Read: Crude Oil Production Improving, Stakeholders’ Collaborations Paying Off – Wunti

In what looks like evidence and support to Nigeria’s Q1, 2023 ambition, Goldman Sachs has predicted that production issues will ease in Nigeria and Kazakhstan by next year.

Goldman Sachs also slashed its oil price forecasts for 2023, saying, it sees a market surplus early next year easing risks of winter price spikes.

The Wall Street bank cut its Brent oil forecasts for the first and second quarter of 2023 to $90 and $95 a barrel from $115 and $105 per barrel respectively.

The bank said, there was less risk of oil prices spiking this winter with China consuming less than previously expected, Russia exporting near pre-war levels, and production issues easing in Nigeria and Kazakhstan.

Goldman expects the oil market to end the current quarter with a surplus of 1.6 million barrels per day(bpd), while seasonally lower demand would leave the first quarter next year with a surplus of 1.3 million bpd.

It forecasts global demand will grow by 2 million bpd in 2023, as China reopens and international travel recovers.

Also Read: Crude Oil Production: Angola, Libya Maintain Lead Over Nigeria – OPEC report

Goldman said, for 2023, it sees Brent oil averaging $98 per barrel and WTI at $92 a barrel, down from its earlier forecasts of $110 for Brent and $105 a barrel for WTI.

For the final two quarters of next year, Goldman said, it expects Brent to rise to $100-$105 a barrel, still lower than its previous forecasts of $110 per barrel. It added that, it expects prices to rise in 2024, with Brent averaging $105 per barrel and WTI $99 a barrel.

So far this quarter, Brent crude prices are down nearly 6 per cent. They have fallen more than 40% from a March peak of $139 a barrel.

“Despite the recent price declines, commodities will still likely finish the year as the best performing asset class in 2022,” Goldman said in a separate research note on Wednesday, seeing S&P GSCI TR returns of about 23% this year and 43% in 2023.

NLNG Current Vacancies

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16th December 2022

Nigeria LNG Limited (NLNG) seeks to engage suitably qualified candidates as Experienced Professionals.

We are a globally competitive LNG company helping to build a better Nigeria, incorporated as a private limited liability company on May 17, 1989, to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for the domestic and export markets. We provide exciting career opportunities and an innovative work environment.

We are an equal-opportunity employer and, all employment decisions are based on business needs, job requirements and individual qualifications after competitive assessment.

Eligible Females and People with Disabilities are encouraged to apply.

Candidates who require reasonable adjustment during this recruitment by reason of disability, should kindly let us know for our evaluation. After applying on the NLNG portal, please send an email titled “Reasonable Adjustment” to [email protected]

A ‘reasonable adjustment’ is a change that must be made to remove or reduce a disadvantage related to:

a job applicant’s disability when applying for a job
an employee’s disability when doing their job

Method of Application

Apply ONLY on website. Click here to apply.

Tax Credit: NNPC’s N1.6trn Quest to Fix Nigerian Roads

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16th December 2022

While Nigeria boasts of the largest road network in Africa, only about 60,000km out of its estimated 195,000km road network is paved. Some of the roads are either in a state of disrepair, poorly maintained or altogether untarred.

As part of the federal government’s efforts to improve the condition of road infrastructure and transportation in the country, it introduced an Executive Order 007 which was signed by President Muhammadu Buhari on January 25, 2019.

The instrument brought about the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme with the objective to unlock funding from the private sector to critical road infrastructure in the country.

The Executive Order 007 was designed to empower private companies to finance construction or refurbishment of federal roads designated as “Eligible Roads” under the scheme and recoup their investments through deduction of the approved total costs expended on the project from their annual Companies Income Tax.

The Road Infrastructure Scheme is a Public-Private Partnership (PPP) intervention that enables the Federal Government to leverage private sector capital and efficiency for the construction, refurbishment of critical road infrastructure in key economic areas in Nigeria.

Participants under the arrangement were entitled to utilise the total cost, referred to as “Project Cost”, incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability, until full cost recovery is achieved.

Also Read: NNPC/CNL PV Confirms Securing $1bn Investment Financing

Like any other responsible corporate citizen, the NNPC prioritises road infrastructure as part of its Corporate Social Responsibility (CSR) projects and became one of the companies that have keyed into the initiative.

The NNPC had expressed interest to invest in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.

Few months after announcing the release of N621 billion to revamp selected Nigerian roads, the company is planning to invest over N1 trillion for a similar purpose. In the first phase, the NNPC was expected to construct a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35, with the North-central getting the highest chunk of N244.87 billion and the South-south emerging the second highest beneficiary of the NNPC roads project with the sum of N172.02 billion.

In addition, the South-west has a total allocation of N81.87 billion; it’s N56.12 billion for the North-east, while the South-east has N43.28 billion allocation. The North-west was allocated N23.05 billion.
The Group Chief Executive, NNPC Limited, Mallam Mele Kyari, said during a tour of roads in the North-central and South-west, along with the Chief Executive of the Federal Inland Revenue Service (FIRS), Muhammad Nami and top officials of the Ministry of Works and Housing, that in the coming months, Nigerian road users will experience substantial comfort when commuting.

Also, among the roads visited by Kyari were the one in Niger State where he carried out an assessment of the reconstruction of Bida-Lambata road in the state, with a length 124.81km and the Lagos-Badagry expressway along the Agbara junction and Nigeria/Benin border.

Also Read: Nigeria: Oil Theft Degraded, Output Rises to 1.6mpbd – NNPC

Under the scheme, the road projects will be funded by NNPC and the equivalent amount deducted by the Federal Inland Revenue Service from the National Oil Company’s tax obligations. Through the scheme, the NNPC will be serving as an enabler for building the Nigerian economy and it is collaborating with key stakeholders such as the Ministry of Works and the FIRS on the execution of the initiative.

The company said this was in response to the plight faced by petroleum products marketers in transportation which affects nationwide distribution. Interestingly, the NNPC Ltd is involved in operations across the oil and gas value chain from exploration and production of hydrocarbon and processing of natural gas all the to nationwide distribution of petroleum products such as petrol, diesel, and kerosene.
The NNPC’s assets base and operations span across different regions of the country and the oil and gas industry has remained one of the biggest and most important economic drivers through foreign and domestic investments.

Kyari further stated that the NNPC was taking cognisance of the importance of road infrastructure to the development of the Nigerian economy, explaining that it is the reason it is investing massively in roads infrastructure.

He termed the programme a game changer in the federal government’s quest to scale up infrastructure projects in the country, noting that the NNPC will continue to support any effort of government aimed at growing the Nigerian economy.

The GCEO expressed satisfaction with the progress of work so far done in the project sites visited, adding that the NNPC had done its part in releasing all the funds needed for their execution.
He said, “We are very happy about the state of this road development. We are very happy with this intervention across the country not just in this place. We are doing 1,800km across the country. We are taking another set of over N1 trillion of investments in road infrastructure in the country. We believe that this tax credit system which Mr President has put in place is the game changer for our country. We believe that in the next 24 months, there will be massive change to the entire road network in this country and this is why NNPC is your company and working for all of us.

Also Read: NNPC Secures $1.4bn Financing Agreement For Northern Hydrocarbon Funding Ltd

“We think that it is the best way to intervene and bring up our infrastructure. We are adding another set of cash, we have not reached the final numbers, but I know it is over N1 trillion.’’

Kyari stated that the quality of work was top-notch, revealing that the consultants deployed during Buhari’s stint at the Petroleum Trust Fund (PTF), were handling the jobs. “We are using the same consultants in partnership with the Federal Ministry of Works and the FIRS to make sure that this works for all of us and we can see from the quality of work. This is the best framework for delivering infrastructure in the country. We are funding partners. We are development partners and enablers. So, whatsoever the FIRS and the ministry of works approve for us, we will consider from our cash flow and fund them,” he assured.

The Director, Roads, Ministry of Works, Folorunso Esan, said through the intervention, the NNPC has been able to improve the pace of the project from 10 per cent to about 40 per cent within a very short period.

ThisDay

As Sanctions Kick In, Putin Vows To Deepen Trade Ties With China, Others

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16th December 2022

Russian President, Vladimir Putin has vowed to deepen trade ties with Russia’s, especially China who represent a big oil and natural gas customer since the invasion of Ukraine, and the agitations from G7 countries.

“Let me remind you that by introducing sanctions, Western countries were trying to push Russia to the periphery of world development. But we will never take the route of self-isolation,” Putin said in a televised speech yesterday, monitored by Reuters.

“On the contrary, we are broadening, and will broaden cooperation with all who have an interest in that,” he added.

Also Read: A Russian Oil Price Cap Will Benefit China, India – US

Putin’s plans includes measures like ramping up natural gas sales to China and other Asian countries, creating a natural gas trading hub in Turkey, and setting the price for natural gas sales to Europe.
His latest remarks is coming shortly after European Union banned seaborne imports of Russian crude and slapped a $60 price cap on oil sold by Russia from December 5.

According to reports, the limitations brought by the price cap on Russian oil have caused the country’s crude exports to nosedive – spelling trouble for the nation’s economy.

Crude oil is a cash cow and Moscow’s biggest money-makers. Currently 90% of Russia’s supplies are being redirected to Asia, yet at even steeper discounts, with oil regularly being sold below the level of the price cap, traders familiar with the matter told Reuters.

Putin has rebuffed the oil price cap as “stupid,” and threatened to retaliate by refusing to sell Russia’s supplies to participating countries.

Also Read: China Announces Closer Energy Sector Partnerships With Russia

Economists say cutting itself off from western markets could wither Russia’s economy long-term, with Russia’s central bank warning that the latest rounds of sanctions are already “economic shocks” to the nation.

National GDP is expected to shrink 2.5% this year, Putin said, though the International Monetary Fund estimates a contraction of 3.4%. Still, the Russian president emphasized the country’s resilience.
He estimates that pensions and minimum wage would rise despite heavy military spending as the war in Ukraine approaches the one year mark.

“Despite the objective difficulties of the current year, we will achieve positive results in reducing poverty, and next year we need to reinforce this positive dynamic,” Putin said.

Now That We’re Back To 1.6mpd Output, It’s Time To Hit 2.5mb

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16th December 2022