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Nembe Oil Spill: Expert Wants Preservation of Failed Wellhead for Analysis

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Nembe Oil Spill

By Adedapo Adesanya

An American university professor, Rick Steiner, has said between 532,000 and 1,064,000 barrels of crude oil has been spilt in the Nembe Oil Mining Lease (OML) 29 blowout, making the blowout one of the largest in world history.

Mr Steiner in a letter to the Nigerian National Petroleum Corporation (NNPC) Limited advised that the failed wellhead of the Nembe oil spill should be preserved for independent engineering forensic analysis to determine the cause of failure.

The professor, who is the Technical Advisor to the Ijaw Diaspora Council, said the failed wellhead should be assessed by either the US offshore oil regulatory agency, the Bureau of Safety and Environmental Enforcement (BSEE) and or Det Norsk Veritas (DNV) in Norway.

He maintained that the Nembe spill was much larger than government and industry statements suggest to date, and it would be prudent to correct those estimates.

“I understand that the Nembe OML 29 blowout may have been killed as of December 8, 2021, and as Technical Advisor to the Ijaw Diaspora Council, I wanted to provide you with my estimate of total discharge.

“If we assume 1-2 cubic feet of discharge per second (a very reasonable assumption), and that the blowout first occurred on November 1 (as reported by the Nembe communities), then the release lasted for a total of 38 days. This would have released a total of 532,000 barrels – 1,064,000 barrels of oil and gas, making the Nembe OML 29 blowout one of the largest in world history.

“Now that the blowout has apparently been killed, I urge you to preserve the failed wellhead for independent engineering forensic analysis to determine the cause of failure. The wellhead must be preserved as evidence, in standard criminal evidentiary procedures, to prevent any further alteration or adulteration, and then submitted to independent assessment.

“The people of Nigeria clearly deserve an independent assessment of what caused this catastrophic failure, and this is essential in preventing a repeat of this catastrophic failure in the future.

“I encourage the failed wellhead infrastructure to be assessed by either the U.S. offshore oil regulatory agency – the Bureau of Safety and Environmental Enforcement (BSEE) and/or Det Norsk Veritas (DNV) in Norway.

“Absent of a rigorous chain-of-custody, evidentiary preservation process for the failed equipment, and independent forensic evaluation, the true cause of the failure will never be conclusively determined.”

The university don regretted that the oil industry and government have been in the negative habit of underestimating oil spill volume, as was clearly seen in the 2010 United States’ deepwater horizon.

“A good example of the industry/government habit to underestimate spill volume was the 2010 Deepwater Horizon here in the U.S. BP and the US government first stated the flow rate from the failed seabed wellhead was 1,000 – 5,000 bbls/ day, and they clung to that estimate for some time (even though their internal engineers, and we, told them the flow was much higher).

“When an exact measure was finally conducted, using Particle Image Velocimetry and other engineering methodologies (by the Flow Rate Technical Group), the Macondo blowout outflow was put at 62,000 bbls/day. Again, this seems to always happen with spill volume estimates.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

Unlisted Securities Investors Gain N10bn in One Week 

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NASD Unlisted Securities Index

By Adedapo Adesanya

The 25th week of trading at the National Association of Securities Dealers (NASD) Over-the-Counter (OTC) Securities Exchange ended on a positive note last Friday.

In the five-day trading week, investors saw an expansion in their investment portfolios by 0.5 per cent or N10 billion as the market capitalisation closed at N1.011 trillion compared with the preceding week’s N1.010 trillion as the NASD Unlisted Securities Index (NSI) increased by 3.86 points to 768.27 points from 764.41 points.

Business Post reports that three stocks on the bourse contributed to the gains reported by unlisted securities investors last week as they overpowered the losses printed by two equities.

Niger Delta Exploration and Production Plc appreciated in the week by 10 per cent to close at N198.00 per share in contrast to the preceding week’s N180 per share, Citi Trust Plc grew by 9.6 per cent to N6.85 per unit from N6.25 per unit, while Central Securities Clearing System (CSCS) Plc appreciated by 2.5 per cent to N14.80 per share from N14.44 per share.

Conversely, NASD Plc lost 8.7 per cent to settle at N13.68 per unit compared with the previous N15.00 per unit, while Nipco Plc depreciated by 5.2 per cent to N58.85 per share from N62.10 per share.

There was a 352.8 per cent increase in the total value of transactions in the week to N324.4 million from N69.9 million, while the volume of trades went down by 57.0 per cent to 6.0 million units from 2.6 million units just as the number of deals decreased by 8.1 per cent to 57 trades from 62 trades of the previous week.

At the close of the week, VFD Group Plc was the most traded security by volume with 1.2 million units, CSCS Plc traded 703,377 units, NASD Plc exchanged 350,935 units, CitiTrust Holdings Plc traded 214,800 units, while NDEP Plc sold 65,300 units.

In terms of the value of trades in the week, VFD Group Plc also topped with N293.5 million, NDEP Plc recorded N12.5 million, CSCS Plc traded N10.4 million, NASD Plc posted N5.3 million, while CSCS Plc had N1.5 million.

On a year-to-date basis, investors have transacted 3.2 billion units worth N21.3 billion in 1,428 deals, with the year-to-date gain at 3.4 per cent.

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Economy

Trading in Greif Nigeria Shares Halted for Smooth Winding up Process

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Greif Nigeria

By Dipo Olowookere

Holders of Greif Nigeria Plc shares have been prevented from trading the security on the floor of the Nigerian Exchange (NGX) Limited for now.

The embargo on the trading of the company’s stocks was placed on Monday, June 20, 2022, to ensure the process of winding up the organisation goes seamlessly.

Greif Nigeria, formerly known as Van Leer Containers Nigeria Plc, is in the business of making steel drums in the country. It also manufactures plastic containers and sheet metal products.

The company, which is a subsidiary of Greif International Holding BV, also offers services for steel punching and aluminium welding.

But lately, things have not been going on smoothly and it is in the process of winding up.

At its Annual General Meeting (AGM) held on January 31, 2022, the shareholders of the firm authorised the board to begin the voluntary winding up of the company.

In accordance with Section 622 of the Companies and Allied Matters Act (CAMA) 2020 which states that a voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up, the NGX Regulation (NGX RegCo) Limited, has notified “all trading license holders and the investing public that it has suspended trading in the shares of Greif Nigeria Plc effective on Monday, June 20, 2022, to ensure a smooth winding-up process.”

In a notice filed last week, the agency explained that this action was also in line with Section 624 of CAMA 2020 which provides that a transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void.

Business Post reports that Greif Nigeria, which uses the ticker Vanleer on the NGX trading platform, has shares outstanding of 42.640 million units and a market capitalisation of N232.4 million as it last traded at N5.45 per unit.

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Economy

Stock Prices of CWG, 55 Others Shed Weight in One Week

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CWG Logo

By Dipo Olowookere

Transactions on the floor of the Nigerian Exchange (NGX) Limited last week closed bearish with a week-on-week decline of 0.14 per cent, with the All-Share Index (ASI) and the market capitalisation closing at 51,705.61 points and N27.875 trillion respectively.

Similarly, all other indices finished lower with the exception of the CG, premium, banking, pension, NGX Afr bank value, energy and lotus indices, which appreciated by 0.86 per cent, 1.50 per cent, 0.33 per cent, 0.40 per cent, 0.16 per cent, 0.32 per cent and 0.55 per cent respectively, while the Asem and growth indices closed flat.

In the week, 16 equities gained points compared with the 13 equities of the previous week, while 56 stocks shed weight in contrast to the 51 stocks of the preceding week, with 84 shares closing flat as against the 92 shares of the earlier week.

Data from the exchange showed that CWG was the worst-performing stock as it fell by 14.89 per cent to 80 kobo, RT Briscoe dropped 14.29 per cent to 48 kobo, GlaxoSmithKline depreciated by 13.28 per cent to N6.10, John Holt lost 11.27 per cent to 63 kobo, while Academy Press went down by 10.00 per cent to N1.17.

On the flip side, NAHCO finished the five-day trading week as the best-performing stock as it gained 10.53 per cent to settle at N8.40, Champion Breweries appreciated by 10.00 per cent to N3.74, MRS Oil Nigeria rose by 9.80 per cent to N16.25, FBN Holdings improved by 8.76 per cent to N10.55, while Royal Exchange climbed higher by 6.59 per cent to 97 kobo.

Last week, investors bought and sold 1.121 billion shares worth N13.703 billion in 22,350 deals versus the 940.892 million shares valued at N11.494 billion transacted a week earlier in 20,077 deals.

FCMB, UBA and Oando accounted for 407.770 million shares worth N2.009 billion in 2,181 deals, contributing 36.39 per cent and 14.66 per cent to the total trading volume and value respectively.

A further breakdown showed that financial stocks led the activity chart with the sale of 806.824 million equities worth N6.075 billion in 11,071 deals, accounting for 71.99 per cent and 44.33 per cent of the total equity turnover volume and value respectively.

Energy shares recorded a turnover of 95.031 million units valued at N1.449 billion in 1,849 deals, while conglomerates goods equities traded 66.716 million units valued at N169.517 million in 733 deals.

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