By Jimitota ONOYUME
PORT HARCOURT: TOTAL E&P has handed over the Obiozimini Beach Road it constructed in Obiozimini community to the people of the area.
Speaking at the commissioning ceremony in Obiozimini, Ogba Egbema Ndoni Local Government Area, the General Manager, JVA Field Operations, Total, Mr Jean Clude Vachet, said the road was economically viable and important to people of the area and the local government.
Continuing, he said the road would further help to attract development to the area even as he assured that the oil giant would maintain its warm relationship with its host communities.
“This road will provide access to the great Sombreiro River with its quality of sharp sand. The beach road will not only provide resource for building construction within the Egi communities and beyond, but will also be a ready loading bay to feed the upcoming float glass industry. This will provide excellent business opportunities for entrepreneurs and help in creating jobs for our teeming youths.”
The Chairman of the Community Development Committee, Mr Ewe Mbadike, thanked the company for the road, and pleaded with the French oil giant to connect the Onoshi-ulo to Onoshi-Umu-Nkweke Road to also open up the entire area for development.
Continuing, he also appealed to Total to commence direct drilling of its oil and gas deposit. “We therefore demand that the prestigious Total E &P Nigeria Limited should include and enlist Obiozimini community into the oil and gas producing communities and families (OML 58 Consultative committee). Instead of performing a directional drilling, we invite you to come and drill our oil and gas directly in our land,” he pleaded.
Total thereafter, urged the community to take ownership of the road, stressing that they should “guard it jealously hereafter”.
Showing posts with label Sweet Crude. Show all posts
Showing posts with label Sweet Crude. Show all posts
Monday, 2 September 2013
Development partners critical to power sector reform, says Nebo
By Chris OCHAYI
The Minister of Power, Professor Chinedu Nebo has said that the contributions of donor agencies and development partners are critical to the ongoing reforms in the power sector.
Nebo who made the remark while speaking at a get-together in honour of Ambassadors David Macrea and Pierre Fehye of European Union, EU, in Abuja acknowledged the valuable collaborators in driving the nation’s power reform.
According to him, “our development partners have pledged important roles in advancing the goal and ambitions of this administration in the power sector.”
“Already the EU has demonstrated this commitment, thanks largely to the leadership role these envoys have played, he said.
It is on record, he said, that the support has influenced the ongoing collaboration between the EU and GIZ in developing and implementing a €36 million grant, which EU is providing the some of €27 million for the development of renewable energy sources in Nigeria.
While calling for continued support from other development partners, the Minister said Nigeria would appreciate further initiatives like these ones, all geared towards ensuring access to power by Nigerians in an equitable, competitive, and efficient manner that meets market demand and global best practices.
In his goodwill message, Mr. Patrick of UNIDO identified power and development as interwoven, just as he expressed optimism that UNIDO and other development partners will continue to assist Nigeria to overcome its power sector challenges especially in the area of filling financing gap of some projects in the sector.
Ambassador David Macrea said that the way the federal government is taking on power sector reform is bold and right, and expressed confidence that in two years time, there would be remarkable improvement in power supply.
He urged Nigeria to continue to cooperate with development partners so as to see the power sector out of its present predicament.
The Minister of Power, Professor Chinedu Nebo has said that the contributions of donor agencies and development partners are critical to the ongoing reforms in the power sector.
Nebo who made the remark while speaking at a get-together in honour of Ambassadors David Macrea and Pierre Fehye of European Union, EU, in Abuja acknowledged the valuable collaborators in driving the nation’s power reform.
According to him, “our development partners have pledged important roles in advancing the goal and ambitions of this administration in the power sector.”
“Already the EU has demonstrated this commitment, thanks largely to the leadership role these envoys have played, he said.
It is on record, he said, that the support has influenced the ongoing collaboration between the EU and GIZ in developing and implementing a €36 million grant, which EU is providing the some of €27 million for the development of renewable energy sources in Nigeria.
While calling for continued support from other development partners, the Minister said Nigeria would appreciate further initiatives like these ones, all geared towards ensuring access to power by Nigerians in an equitable, competitive, and efficient manner that meets market demand and global best practices.
In his goodwill message, Mr. Patrick of UNIDO identified power and development as interwoven, just as he expressed optimism that UNIDO and other development partners will continue to assist Nigeria to overcome its power sector challenges especially in the area of filling financing gap of some projects in the sector.
Ambassador David Macrea said that the way the federal government is taking on power sector reform is bold and right, and expressed confidence that in two years time, there would be remarkable improvement in power supply.
He urged Nigeria to continue to cooperate with development partners so as to see the power sector out of its present predicament.
Labour, FG tango over PHCN workers’ terminal benefits
By Victor AHIUMA-YOUNG
NATIONAL Union of Electricity Employees, NUEE, has dismissed government claims that over 70 percent of the workers of the Power Holding Company of Nigeria, PHCN, have been paid their terminal benefits in preparation for private sector’s investors takeover of the assets of PHCN, saying the government is economical with the truth.
The Federal Government had on Wednesday last week said it had paid the severance benefits of over 70 per cent of the workers as it worked towards concluding the privatisation of the power sector, declaring that it would conclude the payment before the end of this week.
However, a union leader who spoke on condition of anonymity told Sweet Crude that the government was simply telling lies.
[caption id="attachment_230153" align="alignnone" width="412"]
*File: Workers of PHCN[/caption]
According to him, a “sizeable number of workers in Port Harcourt zone, are yet to receive the part-payment being made. Pockets of workers have only received in Ibadan and Jos so far while some workers are still battling to receive theirs in Corporate Headquarters, Abuja. Eight Distribution Companies (DISCO) stations out of 11 and the whole of Transmission Company of Nigeria, TCN in the entire country have not been paid at all. Of about the 35% paid so far nationwide, it has been part-payment to each of them.”
NUEE had earlier spoken of the road blocks government was erecting ahead of the handover, saying, “our agreements takes effect from June 2012 and now because of their inability to implement the agreement, between June 2012 and July 2013, there is 13 months service that is not computed. So, because of that, we are going to have a show down with them. The 13 months service is not a National Youth Service to anybody.
The agreement we signed was in June 2012, and between June 2012 and now, we have 13 good months. How you compute this and add to workers’ entitlement is the issue that is on ground now. Nobody will tell you, after working for one year maybe you have worked for 10 years before, and you work for additional one year plus and you say that one year plus is for free. We have written to the Ministry of Power and up till now they have not acknowledge the letter. The ministry of power should be able to address even a letter by replying us to say we are not going to do this or that. We have written not less than 10 letters that they have refused to acknowledge.
However, the Federal Government last Wednesday, said it had paid the severance benefits of over 70 per cent of the workers of PHCN as it worked towards concluding the privatisation of the power sector, stressing that it would conclude the payment before the end of this week.
Speaking through the Minister of Power, Professor Chinedu Nebo, at a seminar organised by the TCN for the electricity market participants, said “As of today, we have paid off the benefits of at least 70 per cent of the workers. And as we finish the severance payment this week or next week, the next part will be the pension for the workers.”
NATIONAL Union of Electricity Employees, NUEE, has dismissed government claims that over 70 percent of the workers of the Power Holding Company of Nigeria, PHCN, have been paid their terminal benefits in preparation for private sector’s investors takeover of the assets of PHCN, saying the government is economical with the truth.
The Federal Government had on Wednesday last week said it had paid the severance benefits of over 70 per cent of the workers as it worked towards concluding the privatisation of the power sector, declaring that it would conclude the payment before the end of this week.
However, a union leader who spoke on condition of anonymity told Sweet Crude that the government was simply telling lies.
[caption id="attachment_230153" align="alignnone" width="412"]
*File: Workers of PHCN[/caption]According to him, a “sizeable number of workers in Port Harcourt zone, are yet to receive the part-payment being made. Pockets of workers have only received in Ibadan and Jos so far while some workers are still battling to receive theirs in Corporate Headquarters, Abuja. Eight Distribution Companies (DISCO) stations out of 11 and the whole of Transmission Company of Nigeria, TCN in the entire country have not been paid at all. Of about the 35% paid so far nationwide, it has been part-payment to each of them.”
NUEE had earlier spoken of the road blocks government was erecting ahead of the handover, saying, “our agreements takes effect from June 2012 and now because of their inability to implement the agreement, between June 2012 and July 2013, there is 13 months service that is not computed. So, because of that, we are going to have a show down with them. The 13 months service is not a National Youth Service to anybody.
The agreement we signed was in June 2012, and between June 2012 and now, we have 13 good months. How you compute this and add to workers’ entitlement is the issue that is on ground now. Nobody will tell you, after working for one year maybe you have worked for 10 years before, and you work for additional one year plus and you say that one year plus is for free. We have written to the Ministry of Power and up till now they have not acknowledge the letter. The ministry of power should be able to address even a letter by replying us to say we are not going to do this or that. We have written not less than 10 letters that they have refused to acknowledge.
However, the Federal Government last Wednesday, said it had paid the severance benefits of over 70 per cent of the workers of PHCN as it worked towards concluding the privatisation of the power sector, stressing that it would conclude the payment before the end of this week.
Speaking through the Minister of Power, Professor Chinedu Nebo, at a seminar organised by the TCN for the electricity market participants, said “As of today, we have paid off the benefits of at least 70 per cent of the workers. And as we finish the severance payment this week or next week, the next part will be the pension for the workers.”
Oil firms borrow N3.44trn from Nigerian banks
By Michael EBOH
Oil and gas firms’ operating in the country borrowed about N3.443 trillion from banks in Nigeria in a two- year period between 2011 and 2012.
According to data obtained from the Nigerian Deposit Insurance Corporation, NDIC, of the N15.424 trillion facilities given out by the banks to operators in the economy during the period in review, the oil and gas sector received the highest portion, accounting for 22.32 per cent of the total.
The NDIC, in its annual reports and accounts, disclosed that as at the end of 2012, the exposure of oil and gas firms to banks in the country stood at N1.913 trillion, while the oil firms borrowed N1.53 trillion from the banks in 2011.
The amount borrowed in 2012 is 24.84 per cent improvement above the N1.53 trillion borrowed by the oil firms in 2011.
In 2012, the exposure of oil firms to the banks, according to the NDIC, represents 23.47 per cent of the total loans extended to key sectors of the economy, while in 2011; it amounts to 21.03 per cent of the total credit extended.
Compared to the oil and gas sector, the banks gave out loans totaling N1.185 trillion, representing 14.55 per cent of the total, to the manufacturing sector; N977 billion (11.99 per cent) to the General sector; N813.4 billion (9.98 per cent) to the General Commerce sector, while the information and communication sector got N722.87 billion (8.87 per cent).
Others are Governments
— N640.06 billion (7.85 per cent); Real Estate sector
— N376.58 billion (4.62 per cent); Agricultural, Forestry and Fishing N293.09 (3.60 per cent), while other unlisted sectors got N1.228 trillion (15.07 per cent).
In 2011, the Manufacturing sector was exposed to banks to the tune of N1.108 trillion, representing 15.24 per cent of the total credit to the economy; General sector got N854.1 billion, representing 11.74 per cent of the total; General Commerce sector
— N809.2 billion (11.12 per cent); Information and Communication sector
— N628.14 billion (8.64 per cent) and Governments
— N542.93 billion (7.46 per cent).
Others are: Real estate
—N377.33 billion, representing 5.19 per cent of the total; Agriculture, Forestry and Fishing
—N226.13 billion, representing 3.11 per cent, while other unlisted sectors received N1.197 trillion, representing 16.47 per cent.
Giving a breakdown of activities in the oil sector in 2012, the NDIC said Nigeria’s crude oil output succumbed to the impact of natural disaster, oil theft and oil pipelines sabotage, as production which stood at 2.48 million barrels per day as at August 2012, declined to 1.98 million barrels per day as at the end of 2012.
The NDIC further stated that the flood which ravaged the oil rich Niger Delta compelled Royal Dutch Shell and Total, to shut down part of their production plants.
It said, “The flood reduced oil production drastically by about 500,000 or 0.17 per cent by the end of 2012. Thus, as at the end of the period under review, production averaged 1.98 million barrels per day (mbpd) as against 2.39 million barrels per day recorded in 2011.
”In line with government’s commitment to a tighter fiscal stance, the benchmark price of oil remained at US $ 75 per barrel in the third quarter of the year.
“However, the average spot price of Nigeria’s reference crude, the Bonny Light, at the International market rose marginally from US $113.12 in October 2011 to US $113.76 as at the end of August 2012.
“The gross external reserves stood at US$44.178 billion as at end of December 2012, representing an increase of US$11.193 billion or 33.93 per cent over the level of US$32.985 billion attained in January, 2012 and an increase of US$11.263 billion or 34.22 per cent over the December 2011 figure of US$32.915 billion.
“The increase in the reserve level was driven mainly by proceeds from crude oil and gas exports and crude-oil related taxes as well as reduced funding of the WDAS.”
Oil and gas firms’ operating in the country borrowed about N3.443 trillion from banks in Nigeria in a two- year period between 2011 and 2012.
According to data obtained from the Nigerian Deposit Insurance Corporation, NDIC, of the N15.424 trillion facilities given out by the banks to operators in the economy during the period in review, the oil and gas sector received the highest portion, accounting for 22.32 per cent of the total.
The NDIC, in its annual reports and accounts, disclosed that as at the end of 2012, the exposure of oil and gas firms to banks in the country stood at N1.913 trillion, while the oil firms borrowed N1.53 trillion from the banks in 2011.
The amount borrowed in 2012 is 24.84 per cent improvement above the N1.53 trillion borrowed by the oil firms in 2011.
In 2012, the exposure of oil firms to the banks, according to the NDIC, represents 23.47 per cent of the total loans extended to key sectors of the economy, while in 2011; it amounts to 21.03 per cent of the total credit extended.
Compared to the oil and gas sector, the banks gave out loans totaling N1.185 trillion, representing 14.55 per cent of the total, to the manufacturing sector; N977 billion (11.99 per cent) to the General sector; N813.4 billion (9.98 per cent) to the General Commerce sector, while the information and communication sector got N722.87 billion (8.87 per cent).
Others are Governments
— N640.06 billion (7.85 per cent); Real Estate sector
— N376.58 billion (4.62 per cent); Agricultural, Forestry and Fishing N293.09 (3.60 per cent), while other unlisted sectors got N1.228 trillion (15.07 per cent).
In 2011, the Manufacturing sector was exposed to banks to the tune of N1.108 trillion, representing 15.24 per cent of the total credit to the economy; General sector got N854.1 billion, representing 11.74 per cent of the total; General Commerce sector
— N809.2 billion (11.12 per cent); Information and Communication sector
— N628.14 billion (8.64 per cent) and Governments
— N542.93 billion (7.46 per cent).
Others are: Real estate
—N377.33 billion, representing 5.19 per cent of the total; Agriculture, Forestry and Fishing
—N226.13 billion, representing 3.11 per cent, while other unlisted sectors received N1.197 trillion, representing 16.47 per cent.
Giving a breakdown of activities in the oil sector in 2012, the NDIC said Nigeria’s crude oil output succumbed to the impact of natural disaster, oil theft and oil pipelines sabotage, as production which stood at 2.48 million barrels per day as at August 2012, declined to 1.98 million barrels per day as at the end of 2012.
The NDIC further stated that the flood which ravaged the oil rich Niger Delta compelled Royal Dutch Shell and Total, to shut down part of their production plants.
It said, “The flood reduced oil production drastically by about 500,000 or 0.17 per cent by the end of 2012. Thus, as at the end of the period under review, production averaged 1.98 million barrels per day (mbpd) as against 2.39 million barrels per day recorded in 2011.
”In line with government’s commitment to a tighter fiscal stance, the benchmark price of oil remained at US $ 75 per barrel in the third quarter of the year.
“However, the average spot price of Nigeria’s reference crude, the Bonny Light, at the International market rose marginally from US $113.12 in October 2011 to US $113.76 as at the end of August 2012.
“The gross external reserves stood at US$44.178 billion as at end of December 2012, representing an increase of US$11.193 billion or 33.93 per cent over the level of US$32.985 billion attained in January, 2012 and an increase of US$11.263 billion or 34.22 per cent over the December 2011 figure of US$32.915 billion.
“The increase in the reserve level was driven mainly by proceeds from crude oil and gas exports and crude-oil related taxes as well as reduced funding of the WDAS.”
GCC insurers face competitive environment despite growth - report
One of the most significant challenges facing insurers in the Gulf Cooperation Council (GCC) is their ability to grow profitability and differentiate themselves in an increasingly competitive operating environment, a report by A.M Best has said.
The GCC is host to three insurance hubs servicing the Middle Eastern & Northern Africa (MENA) region – the Dubai International Financial Centre (DIFC), the Qatar Financial Centre (QFC) and Bahrain.
According to the report, competition among market participants continues to increase, despite the slowdown in the pace of new entrants into the market in recent years. Many local companies, in an effort to diversify their profiles and utilise capital more efficiently, are attempting to expand outside their local markets and grow their presence and franchise in the region.
This is adding to competitive pressures further.
The report stated “The MENA region has experienced regime changes and political unrest in the wake of the Arab Spring, which began in 2011, and resulted in the fall of some long-standing regimes. The social unrest has brought about a decline in investor confidence in much of the region and a subsequent decline in foreign investment. However, this has been somewhat offset by increases in the price of oil in the oil- and gas-producing GCC nations.
“In the past few years, most GCC countries’ stable operating environments have attracted capital, although political instability overhangs the region. To varying degrees, the GCC countries have been affected by the Arab Spring, with Bahrain being the most negatively impacted. However, the Bahrain insurance market is displaying resilience as its GPW is expected to grow further in 2013,” the report noted.
The report warned that such political uncertainties could continue to dampen activity in the region.
“The MENA region has experienced regime changes and political unrest in the wake of the Arab Spring, which began in 2011, and resulted in the fall of some long-standing regimes. The social unrest has brought about a decline in investor confidence in much of the region and a subsequent decline in foreign investment. However, this has been somewhat offset by increases in the price of oil in the oil- and gas-producing GCC nations.
“While the top line has been affected by regional political and economic instability, many A.M. Best-rated GCC insurers have displayed resilience in their operating performances, despite the consequential limitations on underwriting activity and the impact on investment markets. Following the unrest, there has been a material tightening of policy wording in the region, driven by the international reinsurance market seeking to alleviate uncertainty or conflict arising from strike, riot and civil commotion (SRCC) definitions.
Most GCC insurers and reinsurers tend to be well capitalised and able to absorb riskier investment profiles, the report stated.
“While there is a high degree of prudence and stability on underwriting activities, investment strategies have tended to be aggressive. This subsequently leads to volatility, not just in a company’s earnings performance, but also in its level of risk-adjusted capitalisation as market values fluctuate.
“A.M. Best notes many insurers and reinsurers have made concerted efforts to adopt more conservative and stable investment policies, shifting toward more liquid investment portfolios and secure investments, including cash deposits and bonds.
The GCC is host to three insurance hubs servicing the Middle Eastern & Northern Africa (MENA) region – the Dubai International Financial Centre (DIFC), the Qatar Financial Centre (QFC) and Bahrain.
According to the report, competition among market participants continues to increase, despite the slowdown in the pace of new entrants into the market in recent years. Many local companies, in an effort to diversify their profiles and utilise capital more efficiently, are attempting to expand outside their local markets and grow their presence and franchise in the region.
This is adding to competitive pressures further.
The report stated “The MENA region has experienced regime changes and political unrest in the wake of the Arab Spring, which began in 2011, and resulted in the fall of some long-standing regimes. The social unrest has brought about a decline in investor confidence in much of the region and a subsequent decline in foreign investment. However, this has been somewhat offset by increases in the price of oil in the oil- and gas-producing GCC nations.
“In the past few years, most GCC countries’ stable operating environments have attracted capital, although political instability overhangs the region. To varying degrees, the GCC countries have been affected by the Arab Spring, with Bahrain being the most negatively impacted. However, the Bahrain insurance market is displaying resilience as its GPW is expected to grow further in 2013,” the report noted.
The report warned that such political uncertainties could continue to dampen activity in the region.
“The MENA region has experienced regime changes and political unrest in the wake of the Arab Spring, which began in 2011, and resulted in the fall of some long-standing regimes. The social unrest has brought about a decline in investor confidence in much of the region and a subsequent decline in foreign investment. However, this has been somewhat offset by increases in the price of oil in the oil- and gas-producing GCC nations.
“While the top line has been affected by regional political and economic instability, many A.M. Best-rated GCC insurers have displayed resilience in their operating performances, despite the consequential limitations on underwriting activity and the impact on investment markets. Following the unrest, there has been a material tightening of policy wording in the region, driven by the international reinsurance market seeking to alleviate uncertainty or conflict arising from strike, riot and civil commotion (SRCC) definitions.
Most GCC insurers and reinsurers tend to be well capitalised and able to absorb riskier investment profiles, the report stated.
“While there is a high degree of prudence and stability on underwriting activities, investment strategies have tended to be aggressive. This subsequently leads to volatility, not just in a company’s earnings performance, but also in its level of risk-adjusted capitalisation as market values fluctuate.
“A.M. Best notes many insurers and reinsurers have made concerted efforts to adopt more conservative and stable investment policies, shifting toward more liquid investment portfolios and secure investments, including cash deposits and bonds.
Contractors panic as NDDC tours projects
By Jimitota ONOYUME
PORTt Harcourt - The newly appointed Acting Managing Director, Niger Delta Development Commission, Mrs. Chris Atako, has put contractors on their toes, as she expressed disapproval with the quality of some of the jobs being done.
At the students’ hostel project constructed by the Commission at the Rivers State University of Science and Technology, Nkpolu, Rivers state, Atako, who was visibly angry with the quality of the ‘job, told the contractor that he had to shore up the quality.
She said that she had no option than to condemn what she saw when it was clear that it did not meet the contract specifications.
“I am disappointed with the standard of job, this contractor has no competence to handle this job, and I direct that you correct all the defects. We are particular about standard and finishing, there is no compromise,”
She therefore directed the Commission’s engineers supervising the project to work with the contractor to see that the errors identified were corrected.
Furthermore, Atako disclosed that the Commission planned to rehabilitate a rice mill project that it constructed some years ago at Elele Alimini, Ikwerre Local Government Area of Rivers State.
She said the mill has capacity to produce 180 tonnes of rice per day, noting that the mill was built in 2010, but had not been put to use. As such she said the NDDC wants to revive the mill and bring it to production.
“Besides the rice project is in accordance with Mr. President’s transformation agenda which emphasizes wealth and job creation through agriculture” she said.
She commended the Rivers State Government for its willingness to partner with the commission on the project and urged both the contractor and the commission’s directorate of agriculture to work out the details on the way forward.
“We have a rice mill founded on the strength of partnership, for us partnership is a way to maximize resources, minimize waste and eradicate duplication. We shall always leverage this in our development agenda.”
Similarly, at the University of Port Harcourt, Rivers State, Atako gave the contractor handling a prototype hostel project, six weeks to complete the job. Upon the inspection of the job, she told the contractor should ensure he stuck to the specifications.
“One thing I always advice our contractors is that they should tell us the truth. There is no point giving us the impression that they will finish a job at a particular time, and when we go there on the promised date the work is not done,” she admonished.
Atako, who expressed satisfaction with the job, however charged the contractor to replace some broken tiles and give the wardrobe a face lift.
At Otuoke, the home town of President Goodluck Jonathan, where the NDDC had completed a modern Corpers’ lodge for NYSC corps members serving in the area, Atako expressed satisfaction with the job.
PORTt Harcourt - The newly appointed Acting Managing Director, Niger Delta Development Commission, Mrs. Chris Atako, has put contractors on their toes, as she expressed disapproval with the quality of some of the jobs being done.
At the students’ hostel project constructed by the Commission at the Rivers State University of Science and Technology, Nkpolu, Rivers state, Atako, who was visibly angry with the quality of the ‘job, told the contractor that he had to shore up the quality.
She said that she had no option than to condemn what she saw when it was clear that it did not meet the contract specifications.
“I am disappointed with the standard of job, this contractor has no competence to handle this job, and I direct that you correct all the defects. We are particular about standard and finishing, there is no compromise,”
She therefore directed the Commission’s engineers supervising the project to work with the contractor to see that the errors identified were corrected.
Furthermore, Atako disclosed that the Commission planned to rehabilitate a rice mill project that it constructed some years ago at Elele Alimini, Ikwerre Local Government Area of Rivers State.
She said the mill has capacity to produce 180 tonnes of rice per day, noting that the mill was built in 2010, but had not been put to use. As such she said the NDDC wants to revive the mill and bring it to production.
“Besides the rice project is in accordance with Mr. President’s transformation agenda which emphasizes wealth and job creation through agriculture” she said.
She commended the Rivers State Government for its willingness to partner with the commission on the project and urged both the contractor and the commission’s directorate of agriculture to work out the details on the way forward.
“We have a rice mill founded on the strength of partnership, for us partnership is a way to maximize resources, minimize waste and eradicate duplication. We shall always leverage this in our development agenda.”
Similarly, at the University of Port Harcourt, Rivers State, Atako gave the contractor handling a prototype hostel project, six weeks to complete the job. Upon the inspection of the job, she told the contractor should ensure he stuck to the specifications.
“One thing I always advice our contractors is that they should tell us the truth. There is no point giving us the impression that they will finish a job at a particular time, and when we go there on the promised date the work is not done,” she admonished.
Atako, who expressed satisfaction with the job, however charged the contractor to replace some broken tiles and give the wardrobe a face lift.
At Otuoke, the home town of President Goodluck Jonathan, where the NDDC had completed a modern Corpers’ lodge for NYSC corps members serving in the area, Atako expressed satisfaction with the job.
JTF intensifies war against oil thieves
By Jimitota ONOYUME
OIL theft is not new in the Niger Delta, but its rising index in recent times is constituting serious worries to government, security agencies and other stakeholders in the oil and gas business in the country.
The Chief of Army Staff, Lieut. Gen. Azubuike Ihejirika, met with his top officers in Port Harcourt, Rivers State, to critically look at how to nip the crime effectively and tackle the problem. Ihejirika told SWEETCRUDE before the meeting that he was in the state to, among other things, discuss with his men on how best they could achieve concrete success in the anti bunkering crusade.
[caption id="attachment_251637" align="alignnone" width="412"]
File Photo: Nigerian Navy[/caption]
The Managing Director of Shell Petroleum Development Company, SPDC and Country Chair of Shell Companies in Nigeria, Mr Mutiu Sunmonu, has consistently lamented the negative impact of oil theft on the nation’s economy. At an interactive session with media in Port Harcourt, he said oil theft was becoming a threat to the nation’s economy.
He said those behind the illicit act, had set up tank farms and other storage facilities for their trade. Some, according to him, had also gone ahead to locally refine the product which they push into markets in the region.
He further expressed worries with the impact of their activities on the environment, saying it was constituting a major pollution problem.
Sunmonu said the federal government had projected an increase in oil production to about four [4] million barrels per day, with a reserve of about 40 billion barrels, wondering how realizable the projection is with the rising cases of crude oil theft in the region.
Shell’s Nembe Creek Trunk line, NCTL, was shut down for about three months this year because oil thieves had punctured about 56 holes on the pipeline from where they siphoned crude into vessels, barges and tank farms for export and local refining.
In its renewed battle to fight the ugly situation to a standstill in the region, the Joint Task Force accompanied Shell’s technical crew on ground trotting exercise along oil pipelines in the high sea. The ground trotting exercise covered the NCTL between San Barth Manifold to Krakrama on the water ways.
The Commanding Officer, 130 Battalion, Lt. Col. Caius Banshe, who led the JTF team, explained that the exercise was to confirm bunkering points on the Nembe Line that had been fixed by the multi-national oil giant. Shell’s surveillance contractors and the technical team were part of the verification exercise.
A Spokesman for Shell, Mr. Joseph Obari, told journalists on the trip that his firm had to engage some locals as surveillance contractors to alert the firm of ruptured points on its pipeline, adding that the company at the end of the day sends its maintenance team to work on the points.
OIL theft is not new in the Niger Delta, but its rising index in recent times is constituting serious worries to government, security agencies and other stakeholders in the oil and gas business in the country.
The Chief of Army Staff, Lieut. Gen. Azubuike Ihejirika, met with his top officers in Port Harcourt, Rivers State, to critically look at how to nip the crime effectively and tackle the problem. Ihejirika told SWEETCRUDE before the meeting that he was in the state to, among other things, discuss with his men on how best they could achieve concrete success in the anti bunkering crusade.
[caption id="attachment_251637" align="alignnone" width="412"]
File Photo: Nigerian Navy[/caption]The Managing Director of Shell Petroleum Development Company, SPDC and Country Chair of Shell Companies in Nigeria, Mr Mutiu Sunmonu, has consistently lamented the negative impact of oil theft on the nation’s economy. At an interactive session with media in Port Harcourt, he said oil theft was becoming a threat to the nation’s economy.
He said those behind the illicit act, had set up tank farms and other storage facilities for their trade. Some, according to him, had also gone ahead to locally refine the product which they push into markets in the region.
He further expressed worries with the impact of their activities on the environment, saying it was constituting a major pollution problem.
Sunmonu said the federal government had projected an increase in oil production to about four [4] million barrels per day, with a reserve of about 40 billion barrels, wondering how realizable the projection is with the rising cases of crude oil theft in the region.
Shell’s Nembe Creek Trunk line, NCTL, was shut down for about three months this year because oil thieves had punctured about 56 holes on the pipeline from where they siphoned crude into vessels, barges and tank farms for export and local refining.
In its renewed battle to fight the ugly situation to a standstill in the region, the Joint Task Force accompanied Shell’s technical crew on ground trotting exercise along oil pipelines in the high sea. The ground trotting exercise covered the NCTL between San Barth Manifold to Krakrama on the water ways.
The Commanding Officer, 130 Battalion, Lt. Col. Caius Banshe, who led the JTF team, explained that the exercise was to confirm bunkering points on the Nembe Line that had been fixed by the multi-national oil giant. Shell’s surveillance contractors and the technical team were part of the verification exercise.
A Spokesman for Shell, Mr. Joseph Obari, told journalists on the trip that his firm had to engage some locals as surveillance contractors to alert the firm of ruptured points on its pipeline, adding that the company at the end of the day sends its maintenance team to work on the points.
NUPENG decries exploitation of petrol station workers
By Victor AHIUMA-YOUNG
NIGERIA Union of Petroleum and Natural Gas Workers, NUPENG, has decried the exploitation of petrol station workers by their employers, saying the workers must be unionized to check employers’ abuses.
NUPENG’s General Secretary, Comrade Isaac Aberare, who spoke at the Delegates Conference of Petrol Station Workers, PSW, branch of NUPENG, in Benin City, Edo State, lamented that the potentials of the PSW Branch had not been fully tapped, insisting that if the potentials were tapped, PSW would be a force to reckon with .
According to him, “the focus of the leadership that will emerge from this conference should be directed to the organization of Petrol Station attendants in all the nooks and crannies of the country.
“There is no place in this country, even the rural areas where you do not have petrol attendants. They are in thousands and yet they have not been fully unionised or integrated into your fold. This is a big challenge that you have to put on the drawing board to fashion out way, methods and strategies to unionise the real petrol station workers and protect their interests from the exploitation of their employers.
“It is saddening when you listen to their woes and the pittance paid them. The parent union is also worried about the non-unionisation of these workers, because they are the potential force that will make any nation-wide strike very effective. The combination of Petroleum Tanker Drivers, PTD, and fully integrated PSW members will bring any government to its knees, when we embark on a nation-wide strike. I therefore enjoin you all to give this challenge a food for thought and get cracking on how to fully unionise them.”
Speaking on “leadership and accountability”, Aberare said, “Leadership and accountability are interwoven and intertwined, as leaders must be accountable all ways to the led.
“A leader must live above board, he must have integrity, be focused, organised, intelligent and listen to his members. He must be able to attend to their problems, pursue their welfare and take risks on their behalf. A leader must be exposed, knowledgeable and have the ability to communicate. He or she must not be far from its members. To be a good leader, you must be open and establish a good communication channel with your members.”
“On accountability, a leader must not be corrupt or enrich himself at the expense of its members. It is sad to say that the problem, we have today in the polity is that our leaders are corrupt even at the national level of the society. Lack of accountability and transparency has become a social malaise and that is why nothing appears to be working.”
NIGERIA Union of Petroleum and Natural Gas Workers, NUPENG, has decried the exploitation of petrol station workers by their employers, saying the workers must be unionized to check employers’ abuses.
NUPENG’s General Secretary, Comrade Isaac Aberare, who spoke at the Delegates Conference of Petrol Station Workers, PSW, branch of NUPENG, in Benin City, Edo State, lamented that the potentials of the PSW Branch had not been fully tapped, insisting that if the potentials were tapped, PSW would be a force to reckon with .
According to him, “the focus of the leadership that will emerge from this conference should be directed to the organization of Petrol Station attendants in all the nooks and crannies of the country.
“There is no place in this country, even the rural areas where you do not have petrol attendants. They are in thousands and yet they have not been fully unionised or integrated into your fold. This is a big challenge that you have to put on the drawing board to fashion out way, methods and strategies to unionise the real petrol station workers and protect their interests from the exploitation of their employers.
“It is saddening when you listen to their woes and the pittance paid them. The parent union is also worried about the non-unionisation of these workers, because they are the potential force that will make any nation-wide strike very effective. The combination of Petroleum Tanker Drivers, PTD, and fully integrated PSW members will bring any government to its knees, when we embark on a nation-wide strike. I therefore enjoin you all to give this challenge a food for thought and get cracking on how to fully unionise them.”
Speaking on “leadership and accountability”, Aberare said, “Leadership and accountability are interwoven and intertwined, as leaders must be accountable all ways to the led.
“A leader must live above board, he must have integrity, be focused, organised, intelligent and listen to his members. He must be able to attend to their problems, pursue their welfare and take risks on their behalf. A leader must be exposed, knowledgeable and have the ability to communicate. He or she must not be far from its members. To be a good leader, you must be open and establish a good communication channel with your members.”
“On accountability, a leader must not be corrupt or enrich himself at the expense of its members. It is sad to say that the problem, we have today in the polity is that our leaders are corrupt even at the national level of the society. Lack of accountability and transparency has become a social malaise and that is why nothing appears to be working.”
Monday, 22 July 2013
Europe to ban oil stolen from Nigeria
The European Parliament is set to stop the purchase of stolen oil from Nigeria in Europe.
Any crude oil meant to be sold in the European market is now to be accompanied with a certificate of origin.
This was one of the landmark decisions taken at the meeting of the members of the African, Caribbean, Pacific Parliaments and their European Union counterparts (ACP-EU) at the conclusion of their three-day regional meeting in Abuja last week.
Mitchell Rivasi (Acting Co- President ACP- EU) and Joyce Laboso (Co- Secretary General) told reporters that the need to stop the huge loss of Nigeria’s oil to organised syndicates of oil thieves necessitated the decision.
The Federal Government said last week after the National Economic Council (NEC) meeting that 400, 000 barrels of oil, an equivalent of N7.3million, is lost daily to oil thieves.
Rivasi Said: “We want to ban European refineries from buying un-certificated oil. 400, 000 barrels a day is a huge loss. We need to get traceability of oil to avoid theft. The oil companies are involved in this and everybody is making big money.
“The bunkering tankers are better equipped than the Nigerian Navy, This is a huge international organised crime. We did it with diamond; we can also do it with oil.”
According to her, the country would have been better off if it had functional refineries. “Could someone please explain why you don’t have refineries in Nigeria?” She asked, describing Nigeria as a “paradox”.
“There is a paradox in Nigeria. There’s a seven per cent growth in the economy, but growth and employment are not going hand-in-hand. We need to respond to this paradox.”
Rivasi also said she would insist that the Boko Haram issue be included in the communique. “They kill people and burn churches. The international community has to help and this is something that is not reflected (in the communique). We must say that they should anticipate or pre-empt before the situation gets worse or deteriorate.”
Rivasi, who is from France, recalled that Boko Haram captured a French family. “This problem, we need on the one hand to use force because these are people that kill civilians and rob banks, attack police stations and steal arms. There is a high level of inequality in Nigeria; some are super rich and others live on less than two dollars daily. We must provide jobs.”
Responding to a question on the planned £3000 visa bond proposed by the United Kingdom, she said:
“We (Europe) have unemployment of more than 12 per cent; others 20 and Spain 57. We are trying to get you to develop in your own country. People should be able to develop in their own country.” According to her, this could be done by funding small-scale industries.
The communique issued at the end of the meeting reads: “With particular regard to the Nigerian oil industry, Members stressed the need to ensure that the revenues generated from the extractive industry are distributed transparently and equitably through the national budget in order to contribute to sustainable development and poverty reduction.
“Members also expressed concern at the high rates of oil thefts, wastage and illegal bunkering which lead to substantial revenue losses and environmental degradation. Members called on the Nigerian government to put in place appropriate mechanisms and measures to fight against this organised crime.”
House of Representatives Speaker Aminu Tambuwal solicited the support of the international parliaments in addressing oil theft.
He said: “We ask for you to support Nigeria’s effort in addressing the issue of oil theft. Here, we will come up with stiff legislation against it. But the oil is being taken out and is going to other places. If possible, we require very stiff legislation from the European Union and other countries that are destination for the oil. It has very high negative impact on the economy and by extension, the people.”
Tambuwal said West Africa had been facing a lot of security issues. “Here in Nigeria, we have taken extreme measures to ensure there is peace. As a parliament, we are supporting the executive through legislation, especially on the issue of funding.”
The ACP-EU meeting was attended by 20 lawmakers (12 from Africa and eight from Europe)
Any crude oil meant to be sold in the European market is now to be accompanied with a certificate of origin.
This was one of the landmark decisions taken at the meeting of the members of the African, Caribbean, Pacific Parliaments and their European Union counterparts (ACP-EU) at the conclusion of their three-day regional meeting in Abuja last week.
Mitchell Rivasi (Acting Co- President ACP- EU) and Joyce Laboso (Co- Secretary General) told reporters that the need to stop the huge loss of Nigeria’s oil to organised syndicates of oil thieves necessitated the decision.
The Federal Government said last week after the National Economic Council (NEC) meeting that 400, 000 barrels of oil, an equivalent of N7.3million, is lost daily to oil thieves.
Rivasi Said: “We want to ban European refineries from buying un-certificated oil. 400, 000 barrels a day is a huge loss. We need to get traceability of oil to avoid theft. The oil companies are involved in this and everybody is making big money.
“The bunkering tankers are better equipped than the Nigerian Navy, This is a huge international organised crime. We did it with diamond; we can also do it with oil.”
According to her, the country would have been better off if it had functional refineries. “Could someone please explain why you don’t have refineries in Nigeria?” She asked, describing Nigeria as a “paradox”.
“There is a paradox in Nigeria. There’s a seven per cent growth in the economy, but growth and employment are not going hand-in-hand. We need to respond to this paradox.”
Rivasi also said she would insist that the Boko Haram issue be included in the communique. “They kill people and burn churches. The international community has to help and this is something that is not reflected (in the communique). We must say that they should anticipate or pre-empt before the situation gets worse or deteriorate.”
Rivasi, who is from France, recalled that Boko Haram captured a French family. “This problem, we need on the one hand to use force because these are people that kill civilians and rob banks, attack police stations and steal arms. There is a high level of inequality in Nigeria; some are super rich and others live on less than two dollars daily. We must provide jobs.”
Responding to a question on the planned £3000 visa bond proposed by the United Kingdom, she said:
“We (Europe) have unemployment of more than 12 per cent; others 20 and Spain 57. We are trying to get you to develop in your own country. People should be able to develop in their own country.” According to her, this could be done by funding small-scale industries.
The communique issued at the end of the meeting reads: “With particular regard to the Nigerian oil industry, Members stressed the need to ensure that the revenues generated from the extractive industry are distributed transparently and equitably through the national budget in order to contribute to sustainable development and poverty reduction.
“Members also expressed concern at the high rates of oil thefts, wastage and illegal bunkering which lead to substantial revenue losses and environmental degradation. Members called on the Nigerian government to put in place appropriate mechanisms and measures to fight against this organised crime.”
House of Representatives Speaker Aminu Tambuwal solicited the support of the international parliaments in addressing oil theft.
He said: “We ask for you to support Nigeria’s effort in addressing the issue of oil theft. Here, we will come up with stiff legislation against it. But the oil is being taken out and is going to other places. If possible, we require very stiff legislation from the European Union and other countries that are destination for the oil. It has very high negative impact on the economy and by extension, the people.”
Tambuwal said West Africa had been facing a lot of security issues. “Here in Nigeria, we have taken extreme measures to ensure there is peace. As a parliament, we are supporting the executive through legislation, especially on the issue of funding.”
The ACP-EU meeting was attended by 20 lawmakers (12 from Africa and eight from Europe)
Monday, 8 July 2013
NNPC to acquire divested assets of IOCs
BY MICHAEL EBOH With Agency Report
Nigerian National Petroleum Corporation, NNPC, Monday, said it will acquire the divested assets of International Oil Companies, IOCs, in Nigeria.
The NNPC has also borrowed about N224 billion ($1.4 billion) from the international financial market to settle the N496 billion ($3.1 billion) indebtedness of its subsidiary — the Pipeline and Products Marketing Company, PPMC — to importers of petroleum products into the country over the last three years.
Speaking on plans to acquire the divested interests of oil majors, Mr. Andrew Yakubu, Group Managing Director, NNPC, said in a statement that it is prepared to take over and operate the assets sold off in Nigeria by foreign oil companies.
He said, “With the divestment of the oil majors, the Nigerian Petroleum Development Company, NPDC, comes across as the major option for indigenous participation that will replace companies like Shell and other companies that wanted to divest their equities.”
He disclosed that the NPDC has been repositioned to ensure that the acquired assets remain productive to boost the company's reserve base and ultimately ensure increases in revenue for Nigeria.
According to data from the NNPC, NPDC's crude oil production has averaged 130,000 barrel of oil per day with plans to raise output to 250,000 barrel per day by 2015.
This planned increase in production, the NNPC said, will be driven by production from fields sold off by the international oil majors.
[caption id="attachment_353520" align="alignnone" width="412"]
Minister of Petroleum, Alison-Madueke and NNPC GMD, Andrew Yakubu[/caption]
NPDC has acquired over 55 per cent equity stake in four onshore oil assets divested by Shell, Eni and Total, including the promising Oil Mining Lease, OML 30, which is projected to be capable of producing around 300,000 barrels per day in the near future, up from 35,000 barrels per day at present.
Analysts are of the view that the NNPC stands the chance of acquiring the divested interests, as its partnership with the oil majors means that it will be given the right of first refusal in the acquisition of the assets.
On the N224 billion loan deal, reports said the loan deal was agreed in December but it took six months for the money to be disbursed as the deal structure needed to be validated with multiple stakeholders and Nigerian authorities.
The prepayment facility, guaranteed by future oil sales, was led by Standard Chartered Bank and also included BNP Paribas, Societe Generale, Natixis and several Nigerian banks.
The N224 billion loan, according to reports, will be repaid by the NNPC over a period of five years, while it will use as collateral, 15,000 barrels per day of oil production.
The remaining $1.7 billion of debt is owed to trading houses as well as oil majors, BP, Royal Dutch Shell and Total for supplies of fuel in the last three years.
Reports said the NNPC’s ability to repay the balance of the debt will be more challenging as it has committed most of its available oil flows for the next five years, which can generate additional cash only if oil prices stay much above $75 per barrel.
"Some more recent PPMC creditors did not get any proceeds from the recent drawdown, and cannot afford to be waiting and financially bleeding for another five years with no clear repayment roadmap.
“However, a solution could be found via an increase of the allocation of oil for creditors,” a source said.
Nigerian National Petroleum Corporation, NNPC, Monday, said it will acquire the divested assets of International Oil Companies, IOCs, in Nigeria.
The NNPC has also borrowed about N224 billion ($1.4 billion) from the international financial market to settle the N496 billion ($3.1 billion) indebtedness of its subsidiary — the Pipeline and Products Marketing Company, PPMC — to importers of petroleum products into the country over the last three years.
Speaking on plans to acquire the divested interests of oil majors, Mr. Andrew Yakubu, Group Managing Director, NNPC, said in a statement that it is prepared to take over and operate the assets sold off in Nigeria by foreign oil companies.
He said, “With the divestment of the oil majors, the Nigerian Petroleum Development Company, NPDC, comes across as the major option for indigenous participation that will replace companies like Shell and other companies that wanted to divest their equities.”
He disclosed that the NPDC has been repositioned to ensure that the acquired assets remain productive to boost the company's reserve base and ultimately ensure increases in revenue for Nigeria.
According to data from the NNPC, NPDC's crude oil production has averaged 130,000 barrel of oil per day with plans to raise output to 250,000 barrel per day by 2015.
This planned increase in production, the NNPC said, will be driven by production from fields sold off by the international oil majors.
[caption id="attachment_353520" align="alignnone" width="412"]
Minister of Petroleum, Alison-Madueke and NNPC GMD, Andrew Yakubu[/caption]NPDC has acquired over 55 per cent equity stake in four onshore oil assets divested by Shell, Eni and Total, including the promising Oil Mining Lease, OML 30, which is projected to be capable of producing around 300,000 barrels per day in the near future, up from 35,000 barrels per day at present.
Analysts are of the view that the NNPC stands the chance of acquiring the divested interests, as its partnership with the oil majors means that it will be given the right of first refusal in the acquisition of the assets.
On the N224 billion loan deal, reports said the loan deal was agreed in December but it took six months for the money to be disbursed as the deal structure needed to be validated with multiple stakeholders and Nigerian authorities.
The prepayment facility, guaranteed by future oil sales, was led by Standard Chartered Bank and also included BNP Paribas, Societe Generale, Natixis and several Nigerian banks.
The N224 billion loan, according to reports, will be repaid by the NNPC over a period of five years, while it will use as collateral, 15,000 barrels per day of oil production.
The remaining $1.7 billion of debt is owed to trading houses as well as oil majors, BP, Royal Dutch Shell and Total for supplies of fuel in the last three years.
Reports said the NNPC’s ability to repay the balance of the debt will be more challenging as it has committed most of its available oil flows for the next five years, which can generate additional cash only if oil prices stay much above $75 per barrel.
"Some more recent PPMC creditors did not get any proceeds from the recent drawdown, and cannot afford to be waiting and financially bleeding for another five years with no clear repayment roadmap.
“However, a solution could be found via an increase of the allocation of oil for creditors,” a source said.
Tuesday, 2 July 2013
Nigeria LNG declares force majeure
A long standing dispute with Nigeria LNG and the Nigerian Maritime Administration and Safety Agency (NIMASA) over alleged unpaid taxes has led to a naval blockade of its export terminal, which has now run into a second week.
The company declared force majeure from June 28, because it is unable to meet its contractual obligations due to circumstances beyond its control.
NIMSA initially blockaded the company’s Bonny Island terminal on Friday June 21st with two vessels. The NLNG vessel, LNG Imo and one chartered vessel, Torm Thames, are stuck in the terminal and another Nigeria LNG vessel, LNG Oyo is still waiting outside in the Bonny Channel.
NIMASA issued ship detention orders on June 22nd for three Nigeria LNG vessels, LNG Enugu, LNG Oyo and LNG Imo, which bars them form entering or leaving the Bonny terminal.
In a statement released last week the company said, “The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG buyers, the international financial market, Nigeria to which NLNG contributes 4% of the country’s GDP, its Shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community.”
The company declared force majeure from June 28, because it is unable to meet its contractual obligations due to circumstances beyond its control.
NIMSA initially blockaded the company’s Bonny Island terminal on Friday June 21st with two vessels. The NLNG vessel, LNG Imo and one chartered vessel, Torm Thames, are stuck in the terminal and another Nigeria LNG vessel, LNG Oyo is still waiting outside in the Bonny Channel.
NIMASA issued ship detention orders on June 22nd for three Nigeria LNG vessels, LNG Enugu, LNG Oyo and LNG Imo, which bars them form entering or leaving the Bonny terminal.
In a statement released last week the company said, “The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG buyers, the international financial market, Nigeria to which NLNG contributes 4% of the country’s GDP, its Shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community.”
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