Economy

Nigeria Declares Better Performance for Oil in 2020

Published

4 years ago

04/12/2020

By Adedapo Adesanya

The Minister of State for Petroleum Resources, Mr Timipre Sylva, has declared that the Nigerian oil and gas industry performed better in 2020, attributing it to collaboration among various federal government agencies in the sector.

The Minister said this in Bayelsa at a review meeting with the Permanent Secretary, Directors and chief executives of agencies in the Ministry of Petroleum Resources.

He also expressed optimism that more outstanding results would be recorded in the sector in 2021.

He listed some key achievements of the Nigeria petroleum industry to include the signing of the Final Investment Decision for Nigerian Liquefied Natural Gas, NLNG, Train 7 project, the commencement of the Ajaokuta-Kaduna-Kano, AKK, pipeline project, championed by the Nigerian National Petroleum Corporation, NNPC, and implementation of the deregulation of the downstream sector of the petroleum industry, among others.

Other notable accomplishments, the minister stated, included the completion and commissioning of the 17-storey headquarters building of the NCDMB and commissioning of the Waltersmith modular refinery, developed with 30 per cent equity from the NCDMB.

He applauded the performance of the Ministry and its agencies over the past 12 months, stating that they delivered creditably on their respective mandates, despite the challenges imposed by the COVID-19 pandemic.

Also speaking, the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Kesiye Wabote, commended Mr Sylva for instituting a review meeting for all agencies under the ministry, where they would also plan for the future of the sector.

Giving a scorecard of his agency, Mr Wabote noted that the board had delivered on several initiatives in support of the Ministry of Petroleum Resources’ priorities, one of them being the launch of the NOGTECH Hackathon and Science Technology Innovation Challenge (STIC) as a strategy of developing innovation to address pilferage, sabotage and losses of petroleum products.

Mr Wabote stated that the NCDMB was supporting the goal of the Federal Government to build partnerships on gas flare commercialization programme and Liquefied Petroleum Gas (LPG) penetration.

To this end, he noted that the NCDMB was catalysing local manufacturing of 1.2 million composite LPG cylinders per annum in Bayelsa and Lagos State.

He said: “The board is also supporting flare-out projects through Duport Midstream Company’s 300 million standard cubic feet per day (MMscfd) gas gathering hub in Edo and NEDO 110 MMscfd gas processing project in Delta State.

“The board is also supporting the establishment of LPG storage/filling plants in five states and as well as LPG distribution depots in six states.”

On the Ministry’s target to increase crude oil production to three million barrels per day, the Executive Secretary confirmed that NCDMB signed Service Level Agreements, SLA, with the Oil Producers Trade Section, Independent Petroleum Producers Group, IPPG, and Nigeria LNG as a strategy of fast-tracking projects approvals and ease of doing business.

He added that the NCDMB earlier in the year launched the $50 million Nigerian Content Research and Development Fund and Oloibiri Museum and Research Centre in support of enhanced oil recovery.

On the goal of Supporting and Enhancing Cost Reduction, Mr Wabote said: “NCDMB automated its business process and upgraded its NOGICJQS and initiated collaborative interfaces with the Nigerian Immigration Service (NIS) Customs and Department of Petroleum Resources (DPR).

“Towards increasing domestic refining capacity, NCDMB has so far enabled a combined capacity of 80,000 barrels per day (bpd) modular refining capacity through its investments in Waltermith in Imo, Azikel Refinery in Bayelsa and Duport in Edo States, with other proposals under review.

“NCDMB is also working to achieve the Ministry’s target on job creation and poverty alleviation. On that plane, the board is currently developing three oil and gas parks for manufacturing of oil and gas components, with each expected to create 2,000 jobs opportunities at full operation.

“He added that the board also increased the size of the Nigerian Content Intervention Fund (NCI Fund) from $200 million to $350 million, with additional products on Working Capital and Business Support for Women in Oil & Gas.

“Other initiatives included the Board’s Human Capacity Development programmes to increase employability and incubate entrepreneurs, interventions in vocational education, ICT laboratory among others.”

Also speaking, Group Managing Director of the NNPC, Mr Mele Kyari noted that Nigeria is currently one of the most expensive territories in the world for upstream projection, adding, however, that part of the corporation’s mandate was to reduce cost by at least five per cent.

He said: “We have reduced costs substantially and there are a number of interventions. We have set a target for the industry and our partners to bring down the cost of production to at least $10 to a barrel.”

Economy

Afriland Properties, Geo-Fluids Shrink OTC Securities Exchange by 0.06%

Published

2 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.

The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.

Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.

At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.

The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.

When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.

Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

3 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

4 hours ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”