Economy

Oando, NLNG Sign 20-Year Gas Supply Contract

Published

5 years ago

13/12/2019

By Modupe Gbadeyanka

Gas supply agreements that would up to last 20 years have been signed between Oando Plc and Nigeria Liquefied Natural Gas Ltd (NLNG).

A statement issued by the indigenous energy group listed on both the Nigerian and Johannesburg stock exchanges disclosed that it sealed a renewal of gas supply deal for the existing Trains 1-3 for a term of 10 years and a gas supply for the impending Train 7 for a term of 20 years.

It was stated that the contracts were signed by the upstream subsidiary of the company, Oando Energy Resources, with the Group CEO of Oando, Mr Wale Tinubu, representing the firm and Managing Director of NLNG, Mr Tony Attah, standing in for his organisation.

In addition, present at the signing ceremony were the Group Managing Director of NNPC, Mr Mele Kolo Kyari; Managing Director of NPDC, Mansur Sambo; and representative of Managing Director of NAOC, Mr Massimiliano Bertona, who is the General Manager Commercial & Negotiations at NAOC.

Under the terms of the current agreement, the NAOC Joint Venture (JV) made up of NNPC/NAOC/Oando has a total supply obligation of 850MMScf for Trains 1–6.

The JV is specifically responsible for supplying a Daily Contract Quantity (DCQ) of 344.6MMscf/d for Trains 1-3 and 505MMscf/d for Trains 4-6, making the NAOC JV the second largest gas supplier to NLNG, stating that the first GSA is a renewal of the gas supply terms for Trains 1-3.

Oando noted that in addition to the JVs current supply to trains 1-6 and under the terms of the second agreement, the JV will be responsible for supplying a DCQ of 294.7MMScf/d for Train 7, adding that this is expected to come on stream in 2024, and will bring the JV’s total supply obligation to 1.1Bcf.

“The execution of these agreements also effectively monetizes ca. 3.3Tcf of gas for the NAOC JV of which 666Bcf will be net to Oando,” it stated.

“We are particularly pleased to be the only indigenous company party to the NLNG supply agreement, testament to the potential of local players.

“The NLNG vehicle will support the Federal Government’s efforts to grow reserves, boost the country’s gas footprint and market share in the global LNG market and in-turn positively develop the Nigerian economy – a goal that we are aligned with and have always wholly endorsed.

“The signing of these two agreements confirms and consolidates our long-term partnership with NLNG; furthermore, it is a validation of NLNG’s confidence in our operational track record.

“The execution of the GSA is another positive stride in our journey to becoming the leading independent exploration and production company; being a 20-year guaranteed income stream it will strengthen our financial position as well as demonstrate to our key stakeholders the company’s growth potential.

“Finally, by way of this agreement and in line with our increased focus on sustainability and social impact the JV is closer to its objective of achieving zero gas flare in the immediate future.

“We will continue to collaborate with our partners and other stakeholders in finding creative solutions to move both the industry and economy forward,” Mr Tinubu was quoted as saying in the statement.

Economy

NASD OTC Rises 1.18% as Index Jumps to 3,032.92 Points

Published

36 minutes ago

27/11/2024

Adedapo Adesanya

Nigeria's Unlisted Securities Market Sheds 0.78%, NASD Shares up 8.31%

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose by 1.18 per cent, with the Unlisted Security Index (USI) crossing the 3,000 mark after it went up by 35.24 points on Tuesday, November 26 to 3,032.92 points from the 2,997.68 points recorded in the previous session.

At the close of transactions yesterday, the market capitalisation increased by N12.36 billion to settle at N1.063 trillion, in contrast to Monday’s closing value of N1.050 trillion.

During the session, FrieslandCampina Wamco Nigeria Plc gained N3.31 to sell at N43.90 per share versus the N40.59 per share it traded a day earlier, and 11 Plc appreciated by N16.75 to end the session at N230.00 per unit versus the preceding closing rate of N213.25 per unit.

On the flip side, Afriland Properties Plc slipped by 11 Kobo to sell at N15.81 per share, in contrast to the N15.92 per share it was transacted a day earlier.

There was a slump in the volume of securities traded in the session by 80.2 per cent to 327,425 units from the 1.7 million units traded in the preceding session, but there was a rise in the value of transactions by 141.9 per cent to N15.7 million from the N6.5 million traded on Monday, and the number of deals decreased by 55.0 per cent to nine deals from the 20 deals carried out a day earlier.

At the close of business, Geo-Fluids Plc remained the most traded stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.

Similarly, Aradel Holdings Plc maintained its position as the most active stock by value (year-to-date) with a turnover of 108.7 million units worth N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.

Economy

Naira Sells N1,659/$1 at NAFEM on Improved Forex Supply

Published

57 minutes ago

27/11/2024

Adedapo Adesanya

By Adedapo Adesanya

The Naira strengthened its value against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday by 0.97 per cent or N16.18 to exchange at N1,659.44/$1 compared wth the previous day’s value of N1,675.62/$1 amid an improvement in the supply of forex to the market segment by the Central Bank of Nigeria (CBN).

Data showed that the FX transactions for the trading session increased by 291.6 per cent or $317.19 million to $425.98 million from the $108.79 million recorded in the last trading session.

Also, the domestic currency improved its value against the Pound Sterling in the spot market yesterday by N23.42 to settle at N2,116.44/£1, in contrast to Monday’s closing price of N2,139.86/£1 and against the Euro, it closed flat at the value of N1,783.36/€1.

In the parallel market, the Nigerian currency remained unchanged against the US Dollar during the trading day at N1,750/$1, according to data obtained by Business Post.

At the 298th Monetary Policy Committee (MPC) meeting, the Governor of the CBN, Mr Yemi Cardoso, said the apex bank will continue to carry out measures to ensure stability in the FX market, and plans to avoid any move that will disrupt progress it has made. This was after the bank further raised the interest rate by 0.50 per cent to 27.50 per cent.

In the cryptocurrency market, some of the gains made during the recent post-US election price surge have weakened, as traders see the presidency of Mr Donald Trump as bullish for the industry especially with some of his allies and expected appointees to certain financial positions.

Ripple (XRP) shed 3.9 per cent to trade at $1.38, Binance Coin (BNB) depleted by 3.7 per cent to $619.77, Solana (SOL) slumped by 3.2 per cent to $230.87, Dogecoin (DOGE) fell by 3.0 per cent to $0.3938, Bitcoin (BTC) dropped 1.6 per cent to $93,220.19, Cardano (ADA) depreciated by 1.1 per cent to $0.9682, and Ethereum (ETH) slid by 0.2 per cent to at $3,417.79.

However, Litecoin (LTC) appreciated by 0.4 per cent to quote at $94.68, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00, respectively.

Economy

Haldane McCall, Others Lift Stock Exchange by 0.01%

Published

3 hours ago

27/11/2024

Dipo Olowookere

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.