Economy
NNPC, JV Partners Sign Gas Supply Deals for NLNG Trains 1,2,3 7
By Adedapo Adesanya
The Nigeria National Petroleum Corporation (NNPC) and its joint Venture (JV) partners have signed the Gas Supply Agreements (GSAs) for the Nigeria LNG Limited (NLNG) Trains 1, 2, 3, and 7 on Friday, December 13, 2019.
The corporation signed a 20-year term of GSAs for the NLNG Train 7 while it also signed a 10-year term of GSAs for Trains 1, 2, and 3 with its JV partners which include Shell Petroleum Development Company of Nigeria (SPDC), Total Exploration and Production Nigeria (TEPNG), Nigerian Agip Oil company Limited (NAOC) and Oando PLC.
The Group Managing Director of NNPC, Mr Mele Kyari, said that the agreement showed the commitment of all parties to the gas project in the country.
He added that the GSAs bring NLNG closer to taking Final Investment Decision (FID) on train seven, which would be taken before December 20.
“The Train 7 project will ramp up NLNG’s production capacity from 22 Million Tonnes Per Annum (MTPA) to around 30 MTPA.
“The project will form part of the investment of over19 billion dollars including the upstream scope of the NLNG value chain, thereby boosting the much needed FID profile of Nigeria.
“The project is anticipated to create over 10,000 new jobs during its construction phase and on completion help to further mop more gas that would have been flared and diversify the revenue portfolio of Nigeria,” he said.
Making their contribution, one of the parties through the Managing Director of Shell, Mr Osagie Okunbor, said that delivering gas to train 7 was an important part of the project. He advised that Nigeria should consider looking at trains 8 and 12 with its capabilities.
“What we have done here today is very significant and we believe that more will be done in the future,” he said.
Mr Wale Tinubu, Managing Director of Oando, reiterated that his company would be committed to the agreement, saying, “We are happy to be part of this process.”
Another partner, Total’s Patrick Olima assured that the company would be committed to the supply of gas as signed in the agreement.
“We are committed in doing business in Nigeria just like we have done with Egina FPSO, we will do same with this project,” he said.
In his remarks, Mr Tony Attah, the Managing Director of NLNG, said that signing of the agreement was a great moment for the NLNG. He said that with FID on train 7, Nigeria was moving in the right direction., “What we have done today is among the top three things needed before the FID is taken; without this, financiers will not come for train 7.
“We are happy with the commitment of the partners that have signed this agreement today; this agreement will further consolidate our relationship.
“We need to move fast as a country to maintain a strong position in the global space,” he said.
He added that with full implementation of the GSA, this would spur NLNG to build more trains.
“Nigeria at this stage should not be talking only about train 7 but we should be talking about Train 12,” he added.
Economy
Haldane McCall, Others Lift Stock Exchange by 0.01%
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited had a narrow escape from the claws of the bears on Tuesday after it closed higher by a marginal 0.01 per cent.
This happened as investor sentiment waned yesterday, with profit-taking witnessed in the banking space, which fell by 0.21 per cent at the close of transactions.
However, bargain-hunting from the other sectors ensured that the bulls took charge of the bourse, with the insurance index rising by 0.91 per cent.
Further, the industrial goods sector appreciated by 0.76 per cent, the energy counter improved by 0.36 per cent, and the consumer goods space gained 0.09 per cent.
Consequently, the All-Share Index (ASI) moved up by 13.61 points to 97,639.88 points from 97,626.27 points and the market capitalisation expanded by N9 billion to N59.178 trillion from the preceding day’s N59.169 trillion.
The market breadth index was negative during the trading session as Customs Street ended with 24 price gainers and 25 price losers.
Haldane McCall topped the gainers’ chart after it chalked up 9.98 per cent to trade at N6.17, Sunu Assurances grew by 9.80 per cent to N3.81, Japaul increased its value by 9.72 per cent to N2.37, Prestige Assurance jumped by 9.64 per cent to 91 Kobo, and Neimeth leapt by 9.55 per cent to N2.18.
Conversely, Multiverse lost 9.92 per cent to finish at N5.90, Tantalizers slowed by 9.30 per cent to N1.17, UPDC REIT tumbled by 9.01 per cent to N5.05, Universal Insurance retreated by 5.88 per cent to 32 Kobo, and RT Briscoe fell by 5.67 per cent to N2.66.
Yesterday, investors transacted 552.1 million stocks valued at N8.0 billion in 9,305 deals versus the 671.3 million stocks sold for N10.6 billion in 10,464 deals a day earlier, representing a decline of 17.75 per cent, 24.53 per cent, and 11.08 per cent in the trading volume, value and number of deals, respectively.
The most traded equity for the day was Haldane McCall, which exchanged 177.1 million units for N1.1 billion, followed by Tantalizers with 37.0 million units sold for N46.7 million, UBA transacted 29.6 million units valued at N947.3 million, Prestige Assurance traded 28.6 million units worth N25.6 million, and FBN Holdings transacted 21.5 million units valued at N536.2 million.
Economy
Oil Prices Dip as Israel Agrees Ceasefire Deal With Lebanon
By Adedapo Adesanya
Oil prices settled lower on Tuesday after Israel agreed to a ceasefire deal with Lebanon, reducing oil’s risk premium, with Brent crude futures down by 20 cents or 0.27 per cent to $72.81 a barrel and the US West Texas Intermediate(WTI) crude futures trading at $68.77 a barrel after a decline of 17 cents or 0.25 per cent.
Israel’s security cabinet has agreed a ceasefire deal with Lebanon on Tuesday. The accord was expected to take effect on Wednesday.
The Prime Minister of Israel, Mr Benjamin Netanyahu, said he was ready to implement a ceasefire deal with Lebanon and would “respond forcefully to any violation” by Hezbollah.
Prices had fallen more than $2 on Monday following multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict.
A ceasefire could pressure crude oil prices because the US administration would likely reduce sanctions on oil from Iran, a supporter of Hezbollah.
Also, the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ are discussing a further delay to a planned oil output hike that was due to start in January.
Saudi Arabia, Russia, and Iraq, the three biggest producers in the OPEC+ alliance, met on Tuesday to discuss the state of the global oil market.
This happened days before the wider group will meet on December 1 to decide how to proceed with the production cuts.
Iraq’s Prime Minister Mohammed S. Al-Sudani held on Tuesday a joint meeting with Russian Deputy Prime Minister Alexander Novak and Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman Al Saud.
The meeting focused on discussions regarding global energy market conditions, crude oil production, and its flow to markets to meet demand.
The group pumps about half the world’s oil and had planned to gradually roll back oil production cuts with small increases over many months in 2024 and 2025.
However, a slowdown in Chinese and global demand, and rising output outside the group, have put a dampener on that plan.
Plans by incoming US President, Mr Donald Trump, have also created jitters for the market after he said he would impose a 25 per cent tariff on all products coming into the US from Mexico and Canada.
Crude oil inventories in the US fell by 5.935 million barrels for the week ending November 15, according to The American Petroleum Institute (API).
The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
Economy
Oando Holds AGM December 17 as Former PwC Nigeria Head Joins Board
By Aduragbemi Omiyale
The much-awaited Annual General Meeting (AGM) of Oando Plc will take place on Tuesday, December 17, 2024, at 10 am in Lagos, a statement from the energy company has revealed.
The day would be used to present the audited financial statements of the organisation for the year ended December 31, 2023, to shareholders.
Oando will also seek the approval of investors to appoint Mr Ken Igbokwe and Mr Bashir Bello to the boards of the company with effect from Monday, November 25, 2024.
Mr Igbokwe is a highly experienced management and consulting professional with over 35 years of expertise in various sectors, including oil and gas, financial services and the public sector.
During his distinguished career at PwC Nigeria, he held key leadership roles in Assurance, Tax and Consulting.
His experience spans a wide range of areas such as statutory, financial and process audits and assurance, business valuations, dispute resolution, financial and information systems risk management, corporate strategy development, corporate performance management, and tax planning.
In his role as Country Leader of PwC Nigeria, Mr Igbokwe was responsible for driving strategic thinking and the visioning that underpinned the growth of the firm.
He was in this leadership position for 10 years during which PwC Nigeria’s business recorded tremendous growth with PwC becoming the leading “Big 4” brand. He led the PwC West Africa business into the Africa-wide PwC merger in 2012.
The new appointee contributes to public discourse and debates on public sector transformation in Nigeria and on matters which focus on corporate governance and the strengthening of the investment climate.
Mr Igbokwe holds a B.Sc. (Eng) degree in Mechanical Engineering from Imperial College, London University, which he attended as a Shell Scholar and graduated from, in 1978.
He is a current member of the Institutes of Chartered Accountants in England and Wales and Nigeria. He is also a current member of the Chartered Institute of Taxation of Nigeria.
On his part, Mr Bello is an oil and gas professional with over 32 years of experience in Technical and Executive Management positions across the industry. His expertise spans all sectors, from Downstream (Refining) to Midstream (LNG) and Upstream (Exploration and Production), with a strong focus on Operations, Engineering, Project Management, and Corporate Governance.
He has served as a Board Member for Shell Petroleum Development Company of Nigeria Limited, Bonny Gas Transport Company, NLNG Ship Manning Company Limited, and various Board Committees of Nigeria LNG.
With a proven ability in Interface and Stakeholder Management, he is skilled at delivering business value in Joint Ventures with diverse shareholder agendas, managing projects with complex interfaces and stakeholder expectations, and overseeing operations with diverse functional requirements and limited resources.
Mr Bello holds a Bachelor of Engineering (B.Eng.) in Mechanical Engineering from Bayero University Kano, Nigeria. He is a Fellow of the Nigeria Society of Engineers (NSE), and a Registered Engineer with the Council for the Regulation of Engineering in Nigeria (COREN).
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