By Adedapo Adesanya

Crude oil prices settled higher on Wednesday as the US seized an oil tanker off the coast of Venezuela, adding to concerns about immediate supplies, with Brent futures up by 27 cents or 0.4 per cent to $62.21 a barrel, and the US West Texas Intermediate (WTI) futures up by 21 cents or 0.4 per cent to $58.46 per barrel.

The American government seized a large oil tanker off the coast of Venezuela, marking a major escalation in tensions between the two nations.

President Donald Trump confirmed the operation, saying, “We’ve just seized a tanker on the coast of Venezuela, large tanker, very large, largest one ever seized actually,” adding later that the US will keep the oil.

The US Coast Guard, Federal Bureau of Information (FBI), and Homeland Security, executed a seizure warrant, boarding the tanker by helicopter. The vessel, identified by maritime sources as the Panama-flagged Skipper (formerly named Adisa), had been under US sanctions for several years for its alleged role in transporting Venezuelan and Iranian crude via a shadow oil-shipping network tied to Hezbollah and the Islamic Revolutionary Guard Corps-Quds Force.

According to tracking data, the tanker had recently loaded heavy crude at Venezuela’s Puerto José.

In Caracas, the government of President Nicolás Maduro condemned the seizure, branding it “a blatant theft” and an act of “international piracy.”

The tanker seizure further inflames concerns about immediate supplies in a market that was already worried about movements of Venezuelan, Iranian and Russian barrels.

Meanwhile, the US Federal Reserve reduced its benchmark interest rate by a quarter of a percentage point, as expected, which could help lift oil demand by boosting economic growth.

The Chairman of the US Federal Reserve, Mr Jerome Powell declined to say whether there would be another rate cut in the near future, but said the central bank is well positioned to respond to what lies ahead for the economy.

Crude oil inventories in the US decreased by 1.8 million barrels during the week ending December 5, after adding a modest 600,000 barrels in the week prior, according to new data from the US Energy Information Administration (EIA) released on Wednesday.

The EIA’s data release follows figures from the American Petroleum Institute (API) that were released a day earlier, which suggested that crude oil inventories fell by 4.8 million barrels.

By Adedapo Adesanya

The federal government has begun the process of repaying the N4 trillion debt owed to Power Generation Companies (GenCos) with the launch of a N590 billion first-tranche bond issuance.

The initial tranche, part of  the wider N4 trillion Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Bond Programme, comprises N300 billion in cash bonds to be issued to the market and N290 billion in non-cash bonds to be directly allotted to GenCos on identical terms.

The bond term sheet revealed that the Series 1 bond will be issued between November and December 2025 with CardinalStone Partners Limited serving as the lead issuing house and financial adviser.

The seven-year bond has a coupon range of 16.25 per cent to 16.75 per cent and carries a full sovereign guarantee and will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange, making it eligible for investment by pension fund administrators, banks, asset managers, insurers and high-net-worth investors.

According to the term sheet, “Series 1 Tranche A involves N300bn issued to the market for cash, while N290bn under Tranche B is allotted to the GenCos on identical terms. The bond will be issued between November and December, with a seven-year tenor on a fixed-rate coupon, redeemed on an amortising basis and paid semi-annually in arrears.”

The bond issuance marks a major step by President Bola Tinubu’s administration to resolve what experts describe as one of the most crippling financial crises in Nigeria’s power sector. The Series 1 bond carries a seven-year tenor, a fixed coupon rate, and semi-annual interest payments, and will be amortised over its lifespan.

The issuer also retains the discretion to absorb oversubscription of up to N1.23tn, creating room for additional non-cash bond allocations to GenCos if required.

The term sheet added, “Pricing will be based on the yield of the seven-year FGN bond plus a spread, and the issuance will be conducted through a book-build process. The minimum subscription is N5m, representing 5,000 units at N1,000 each, with additional subscriptions in multiples of N1,000.

“Proceeds from the issuance will be used to settle outstanding liabilities owed to GenCos. The instrument is guaranteed by the full faith and credit of the Federal Government, enjoys CBN liquidity status, meets PenCom compliance requirements, qualifies under the Trustee Investment Act, and will be listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.”

It further noted that “oversubscription may be absorbed at the discretion of the issuer up to a maximum of N1,230,000,000,000 approved for Phase 1 of this transaction. The issuer reserves the right to increase the size of the non-cash bonds to be issued to the GenCos under any Series or accommodate additional allotments as may be required.”

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited and Heirs Energies have signed a deal to capture and use the gas flared at their onshore OML 17 joint venture in a bid to monetize the resource and reduce flaring.

The state oil company and Heirs Energies have signed the Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a deal that will see both entities capture the gas flared across OML 17 and deploy it for use in power generation, industrial applications, liquefied petroleum gas (LPG), and compressed natural gas (CNG).

The agreements bring together Heirs Energies, as operator of the OML 17 Joint Venture, and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value. The move is aligned with Nigeria’s gas development priorities and energy transition goals, Heirs Energies said in a statement.

Gas flaring has been a major issue at Nigeria’s oilfields where it is wasted instead of used for many industrial purposes, and holds back the country’s targets to reduce emissions.

Last year, World Bank data showed that Nigeria saw flaring volumes jump by 12 per cent, the second largest increase globally behind Iran.

Flaring at oil and gas facilities operated by the national oil company and several smaller companies, likely with limited expertise or funding for gas utilization, accounted for 60 per cent of Nigeria’s gas flaring and 75 per cent of the increase in 2024, the report found.

Commenting on the deal to monetize gas at OML 17, Heirs Energies CEO, Mr Osa Igiehon said that “Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17.”

On his part, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), Mr Seyi Omotowa, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.

“Flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery.”

He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.