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Old May 10th, 2013, 06:38 PM   #1
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Oil and gas news

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FG has signed $51.8bn MoU for construction of 10 new refineries¨C Allison-Madueke


By BusinessNews Staff on May 10, 2013

Quote:
Diezani Allison-Madueke, Minister of Petroleum Resources disclosed that Federal Government has signed $51.8 billion or N8.1 trillion worth of Memorandum of Understanding (MoU) with various local and international investors between 2011 and 2012 for the construction of 10 new refineries across the country.
The move was part of efforts towards reducing the country¡¯s over-dependence on importation of petroleum products for domestic consumption.
Allison-Madueke who stated this at the opening ceremony of the Offshore Technology conference in Houston, Texas, however noted Federal Government has not been able to achieve much progress, as some investors have not been able to meet deadlines and progress to the next level of negotiation.
The minister, who was represented by Andrew Yakubu, Group Managing Director of Nigerian National Petroleum Corporation (NNPC), said that while the government is making effort to ensure that the four refineries in the country are producing up to full capacity, it is also working hard to ensure that the proposed Greenfield refineries are up and running.
She stated ¡°we must get the business model right. There are quite a number of issues that are wrong. No investors will want to invest in a regulated environment.Today, the petroleum product market is regulated and there are quite a number of things that are needed to be done to ensure that the business environment is conducive enough for investors to invest. The business models must be right. We are working hard to establish investors¡¯ confidence in the Greenfield refineries.
¡°There are four refineries with a combinedname plate capacity of 445,000 barrels perday built in Kaduna, Port Harcourt and Warri. We have LNG plant with installed capacity of 22 million tonnes per annum. The country is currently implementing twoadditional LNG projects, which will give a total in-country capacity of over 40 milliontonnes per annum when completed. The long-term plan is for Nigeria to become the gas hub of the sub-region.
¡°The history of oil and gas exploration is replete with how new paradigms have successfully created new opportunities which hitherto were thought to be non-existent. The West African Transform margin plays an excellent example of this.Prior to its emergence as a hotbed of exploration activities, the West Africa oil province was dominated by onshore and shallow water production from Nigeria, Gabon, Angola and to some extent Equatorial Guinea¡±.
She said that Nigeria has over 35 billion barrels of proven oil reserves and 187 trillion Cubic Feet (TCF) of proven gas reserves with plans to increase it in the next few years.
Diezani disclosed that the current crude oiland condensate production runs at over 2.4 million barrels per day and gas of over eight billion cubic feet per day day.
¡°It is projected that based on current industry trend crude oil and gas productionwould rise to over three million barrels perday and 10 billion cubic feet per day by 2015.¡±
http://businessnews.com.ng/2013/05/1...lison-madueke/
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Old May 10th, 2013, 06:49 PM   #2
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Shell says crude oil theft is reducing

By BusinessNews Staff on May 10, 2013

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Nigerian unit of Anglo-Dutch oil giant, Shell, has admitted that the spate of crudeoil theft from its facilities in the Niger Delta is reducing, a development he attributed to the surveillance of the Joint Task Force, JTF, set up by the Nigerian Government to check the menace.
Shell had constantly complained about thehigh incidence of pipeline vandalism and crude oil theft, resulting in revenue losses estimated at over $10billion annually. The company had in fact, recently threatened to shut down its operations if the nothing was done to contain it urgently.
Furthermore, Shell has declared more force majeure since the year began than any other oil major operating in Nigeria, a legal clause that absolves it from contractual obligations for failure to meet supply agreements.
However, speaking on the sideline of the Offshore Technology Conference, OTC 2013, in Houston Texas, USA, the Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu said, ¡°certainly it was on the increase a few months ago, but I can also tell you, I have seen increased attention by the government security agencies, the JTF, Navy, really moving in to stem the tide. So I wouldn¡¯t say I am happy, but I can see improvement in the responsiveness of the government security agencies.¡±
The Shell boss refused to quantify, as he regularly did in the past how much oil had been saved since the JTF swung into action, but rather said, ¡°I will be in a position to tell you when our Nembe creektrunkline is back up, but right now, that line is down. Like I said, we are removing the bunkering points from that line, once all those bunkering points are removed, and the line is up and running, we will thenbe in a position to judge how much oil we are still losing. But right now, whatever figure, I give you, is really going to be artificial.¡±
For him, what is most important is the factthat the JTF is getting more and more effective. ¡°We are having almost a daily discussion with them and they do give us good reports on their efforts so far. I have been in discussion personally myself with the Chief of Naval Staff and the Chief of Army Staff and they have all given their commitments to work with oil the companies to stem the tide.
¡°We are seeing progress, but like I tell you, this is a very big operation, so I am not expecting solution over night, but whatI am expecting is that government security agencies will really keep at what they are doing now. If they keep at it for a while, I am sure we will begin to see a significant reduction.
¡°There is hardly any day that they foiling attempt, they are arresting vessels, they are destroying illegal refineries. In a place like Bodo for instance, in a week or two ago, they foiled over 30 different attemptsby crude oil thieves wanting to attack additional tamping point to our line. We see all these successes everyday, but we just need to keep at it, because you cannot afford to take your eyes off the ball.¡±
As far as the force majeure is concerned, Sunmonu noted that this will keep up for awhile until ¡°we fully recover because evenwith all the efforts that government security agencies are putting in, there are some steps we need to take together jointly in order to make sure the effects are not continuing.
¡°So the force majeure that you have seen declared is for us to some of the very bad bunkering points that have been put on the line, because we don¡¯t remove them, even if you have the whole Nigerian Army in the creek, you still continue to see crude being stolen. So our initial attempt is to remove those bunkering points to compliment what the security agencies are doing.¡±
http://businessnews.com.ng/2013/05/1...t-is-reducing/
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Old May 11th, 2013, 12:53 AM   #3
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We already have a thread 4 this.
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Old May 12th, 2013, 12:35 AM   #4
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Originally Posted by Naijaborn View Post
We already have a thread 4 this.
And still waiting the turning of the sod on just one new refinery.
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Old May 12th, 2013, 04:45 AM   #5
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One new refinery has commenced operation if I am not mistaken.

Orient refinery! Also it seems that Nigeria's existing federal refineries are working a lot better now than people realize!

The other thing, that I would like to point out, is that it is VERY hard to get investment into the sector! Although in Nigeria we believe that oil refining is a problem, the reality is that - it is not a problem at all! The world has more oil refining capacity than it needs!

The only problem, is that we do not have the market share! It means that people that have no business refining oil are refining it! And we want to get back our market share!

So already, the likes of Shell won't invest! We have to get capital from somewhere else! Dangote is currently trying, he has about 50% capital lined up...but it is not easy
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Old May 12th, 2013, 12:49 PM   #6
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Orient refinery isn't part of the said refinery, it capacity is very low and like i said it is part of the refineries the GMD was talking about

We have been hearing new refineries for years and up till now nothing has been done. Dangote's $8billion refinery should meet at our needs and be able to export. He said he has secured $4billion loan.
Even though it's regulated and investors are not willing, Dangote is a risk taker he even said only a mad man would do such but he is ready to take the risk.
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Old May 12th, 2013, 03:28 PM   #7
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Quote:
Originally Posted by keplar View Post
We have been hearing new refineries for years and up till now nothing has been done.
The problem(s) as always is attached to government policies. No SANE investor is going to employ substantial resources in constructing refineries in a situation where the conditions aren't appropriate. Cast a thought on the debacle that is PIB, which haven sat at the National assembly for years, we aren't any wiser as to when It may become law. Interest groups in all their formation have contrived to stifle progress in it's ascent. In eventuality, ordinary Nigerians get to bare the brunt of this sullen situation.
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Old May 12th, 2013, 10:24 PM   #8
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Quote:
Originally Posted by Tbite View Post
One new refinery has commenced operation if I am not mistaken.

Orient refinery! Also it seems that Nigeria's existing federal refineries are working a lot better now than people realize!

The other thing, that I would like to point out, is that it is VERY hard to get investment into the sector! Although in Nigeria we believe that oil refining is a problem, the reality is that - it is not a problem at all! The world has more oil refining capacity than it needs!

The only problem, is that we do not have the market share! It means that people that have no business refining oil are refining it! And we want to get back our market share!

So already, the likes of Shell won't invest! We have to get capital from somewhere else! Dangote is currently trying, he has about 50% capital lined up...but it is not easy
Actually, the likes of Shell (and other economically rational foreign and domestic investors) are not investing because they would not be able recover the cost of production under the current regulated tariff regime.

The reason most of those proposed refineries remain on the drawing board for years (even decades) after signing MoUs is that they have thus far proved UNBANKABLE (must confess that I have no idea how Dangote plans to go about his project). Meanwhile, while the Nigerian government continues to "subsidize" (and create) employment abroad and feed fat-cat middlemen domestically (as well as a thriving black market in Benin Republic and Cameroon), in many parts of Nigeria folks continue to pay several times higher than the nominal (regulated) rates.
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Old May 12th, 2013, 10:29 PM   #9
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Here is what I posted

http://www.vanguardngr.com/2012/03/w...nigeria-shell/
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Old May 13th, 2013, 11:50 PM   #10
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Originally Posted by Tbite View Post
Mr Brindel makes little sense. A surplus of refineries in one part of the world has about as much to do with the scarcity of refineries in an entirely different as the dense population of Monaco has to with the sparse population of Mongolia.

Mr. Brindel might just be taking the piss at the reporter, as that would be akin to saying that because telephony penetration in Dubai is over 200% (and over 100% in most of the developed world), telephony buildout should be stopped in Africa.
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Old May 24th, 2013, 06:41 AM   #11
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Oando adds 2,500 bpd production capacity from Ebendo oil field

Quote:

Oando Energy Resources has announced the
completion and testing of the Ebendo 5 well,
which is expected to contribute additional 2,500 barrels of oil per day (bpd) from the field.
The development, according to a statement from the company, followed the successful resumption of 3,200 bpd gross production on the Ebendo field.
The Chief Executive Officer of OER, Pade
Durotoye: “We’re extremely pleased to announce the successful completion of the Ebendo 5 well drilling programme, increasing our net capacity by 1,069 bpd.“Ebendo currently has a total production capacity of up to 7, 000 bpd, but is currently subject to take away capacity restrictions as a result of the Kwale-Akri pipeline.“In light of this, we are increasing our efforts to establish our alternative evacuation pipeline, the
53 kilometre, 45kboepd Umugini pipeline, that will further support the development of this field and reduce our dependence on one evacuation pipeline,” he said.
For more

http://www.businessnews.com.ng/2013/...ndo-oil-field/
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Old May 24th, 2013, 06:41 AM   #12
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Oando adds 2,500 bpd production capacity from Ebendo oil field

Quote:

Oando Energy Resources has announced the
completion and testing of the Ebendo 5 well,
which is expected to contribute additional 2,500 barrels of oil per day (bpd) from the field.
The development, according to a statement from the company, followed the successful resumption of 3,200 bpd gross production on the Ebendo field.
The Chief Executive Officer of OER, Pade
Durotoye: “We’re extremely pleased to announce the successful completion of the Ebendo 5 well drilling programme, increasing our net capacity by 1,069 bpd.“Ebendo currently has a total production capacity of up to 7, 000 bpd, but is currently subject to take away capacity restrictions as a result of the Kwale-Akri pipeline.“In light of this, we are increasing our efforts to establish our alternative evacuation pipeline, the
53 kilometre, 45kboepd Umugini pipeline, that will further support the development of this field and reduce our dependence on one evacuation pipeline,” he said.
For more

http://www.businessnews.com.ng/2013/...ndo-oil-field/
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Old May 24th, 2013, 07:14 AM   #13
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IMF okays PIB; calls for early passage

Quote:

Global financial watchdog, the International
Monetary Fund, IMF, has commended Nigeria¡¯s Petroleum Industry Bill, PIB, saying, it ¡°would boost investment, government revenue, and fiscal transparency.¡±
The commendation was given in spite of varied criticisms by oil majors and other interest groups against some of the fiscal propositions in the bill.
It was the first international endorsement for
Nigeria¡¯s economic reforms, in which oil and gas is the bedrock.
The IMF in a Public Information Notice, PIN,
released on March 28, and obtained
by Vanguard, also called for early passage of the bill saying, ¡°directors welcomed reforms
underway in the energy sector, and looked
forward to an early passage of the Petroleum
Industry Bill.¡±
The IMF said its appraisal followed the conclusion of consultations between its Executive Board and Nigeria under the 2012 Article IV, on February 6, 2013.
The PIB is one of Nigeria¡¯s most important pieces of legislation, which proposes massive reforms in the petroleum industry.
As such, the IMF pass mark comes at a time the Bill is going through critical appraisals under public hearings in the lower house of the National Assembly.
Commendationcounterweighs IOCs
criticism

The IMF¡¯s endorsement, analysts believe, will
provide a counterweight to the trenchant
criticism coming mainly from the International Oil Companies, IOCs, regarding the Bill. Although the fate of the Bill rests with the legislators, the IMF¡¯s remarks is expected to present an important international perspective on the Bill for the benefit of the lawmakers who are daily fed with disparaging remarks on the document.
Surprisingly, the IMF¡¯s endorsement, which is yet to be publicised, is a welcome development, especially as the global agency is constantly criticised for its ¡°conditionalities¡± in saving developing countries, including Nigeria, from economic woes.
At the recently concluded Offshore Technology Conference, OTC in Houston Texas, USA, the lawmakers who attended the conference like the IMF, agreed that the bill will institute greater transparency in the system and maximise government¡¯s revenues.
N-Assembly reiterates commitment to
passage of PIB

Speaking on behalf of his colleagues, Senator
Emmanuel Paulker, also Committee Chair on
Upstream, and his counterpart from the House of Representatives, Samson Osagie, Deputy Committee Chair on PIB, reiterated the commitment of the National Assembly to passing the bill before year end.
They maintained that unlike its predecessor, the new bill will not suffer from undue political manipulations, but will protect national interest.
The IOCs have continued to insist that the
passage of the Bill will force operating companies to exit Nigeria for countries with more generous fiscal terms, but the legislators gave the assurance that the fiscal regime will not be too harsh as to drive away existing or prospective investors.
Macroeconomic observations

The IMF in its notice also declared Nigeria¡¯s
macroeconomic performance as being ¡°broadly positive over the past year¡±, notwithstanding that ¡°real gross domestic product, GDP, growth is projected to have decelerated slightly to 6.3 percent, reflecting the effects of the nationwide strike in early 2012, floods in the fourth quarter of 2012, and continued security problems in the north.
¡°Annual inflation increased from 10.3 percent
(end-of-period) in 2011 to 12.3 percent in 2012, owing mainly to the adjustment of administrative prices of fuel and electricity; large increases in import tariffs on rice and wheat; and the impact of floods in Q3.
¡°The external position has strengthened while
international reserves rose from US$32.6 billion at end-2011 to US$44 billion at end-2012 (50†5months of prospective imports), driven by sustained high oil prices, stricter administration of the gasoline subsidy regime, and strong portfolio inflows.¡±
Furthermore, the agency noted that the country¡¯s fiscal policy stance was tightened in 2012, and fiscal buffers are being rebuilt. ¡°The non-oil primary deficit of the consolidated government is estimated to have narrowed from about 36 percent of non-oil GDP in 2011 to 30.5 percent in 2012, mainly due to expenditure restraint. ¡°Monetary policy remained tight in 2012 in
response to inflationary pressures. The Central Bank kept its policy rate unchanged during the year but raised the cash reserve requirement for banks from eight percent to 12 percent and lowered allowable open foreign exchange position for banks. Financial soundness indicators point to continued improvements in the health of the banking system.¡°It also noted that ¡°in 2013, growth is expected to recover to above seven percent. Inflation is projected to decline below 10 percent, supported by the tight monetary policy stance and ongoing fiscal consolidation.¡°The key downside risks are a large drop in world oil prices; and slow progress in building consensus around key fiscal reforms.
FG macroeconomic policy
¡±In view of the foregoing, the IMF Executive
Directors commended the Federal Government for its ¡°prudent macroeconomic policies that have underpinned a strong economic performance in recent years.¡±
However, the directors agreed that ¡°widespread unemployment and poverty remain key challenges for policymakers,¡± and called for renewed efforts to make economic growth more broad-based and inclusive.
The directors also supported government¡¯s
strategy to consolidate the fiscal position while opening up policy space for needed investment in infrastructure and human capital.¡°To this end, they underscored the need to improve tax administration, prioritise public expenditure, strengthen public financial
management, and improve the fiscal framework.
Reduction of fuel subsidy

¡°In particular, they encouraged the authorities
to reduce poorly-targeted fuel subsidies, adopt a rule to set the reference oil price in the budget,and fully operationalise the Sovereign Wealth Fund as soon as possible.¡±
They added that efforts to mobilise public
support for these reforms should be intensified.
Furthermore, the Directors considered the
current tight monetary stance to be consistent
with the authorities¡¯ objective of reducing
inflation to single digits, adding that the
exchange rate in real effective terms is broadly inline with fundamentals.
Other commendations and observations of
directors were: ¡°Commended Nigeria¡¯s success in restoring financial stability after the 2009 banking crisis.
¡°In light of this achievement, they recommended winding down the operations of the asset management company to curb moral hazard and fiscal risks.
¡°Welcomed the Central Bank¡¯s commitment to address supervisory and regulatory gaps
identified in the financial stability assessment
update, particularly the need to strengthen
cross-border supervision and the regime against money laundering and terrorism financing.¡°Concurred that wide-ranging reforms are key to make growth more inclusive. Agreed on the importance of supporting sectors with high employment potential, not through protectionist
measures or tax incentives but rather with
initiatives to improve governance, the
investment climate, and competiveness.
¡°Encouraged the authorities to promote market-based access to credit for small and medium sized enterprises¡±.
http://www.businessnews.com.ng/2013/...early-passage/

Ironic that the IMF should supports the bill yet, buoyant Nigerian legislators alongside their prominent cohorts have sort to stifle and frustrate progression in its passage. Good job!
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Old June 3rd, 2013, 05:35 PM   #14
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Big money talking.........

Bonga: 19 new oil wells may gulp N1.96tn($12.35)

2 June 2013

Quote:
Indications emerged on Friday that Shell Nigeria Exploration and Production Company Limited will spend $12.35bn (about N1.96tn) on the planned drilling of 19 new oil wells as part of the expansion of Bonga deep water oil field.
A deep water oil well project, it was learnt, would cost $150m (N23.7bn), with further appraisal cost put at $500m (N79bn).
Bonga was Nigeria¡¯s first deep water oil discovery in 2005 and has the capacity to produce more than 250,000 barrels of oil a day and 150 million cubic feet of gas a day. At the end of 2012,Bonga had produced about 450 million barrels of oil.
The Commercial Integration and Business Value Manager, Shell Nigeria, Mr. Taaj Shobayo, also confirmed that about $650m (N102.8bn) was required for each deep water exploration and production.
Shobayo, who spoke at a recent training
organised for energy journalists by the oil major,described deep water exploration as an
expensive and risky endeavour.
He said, ¡°Deep water exploration and production is expensive, complex and risky with long cycle times. Current offshore projects take 10 years to 20 years from licence award to production. A typical well in a deep water cost about $150m(N23.7bn) and you will be spending another $500m (N23.7bn) for further appraisal.¡±With 19 oil exploration wells planned for the Bonga deep water oil fields extension, he explained that an average of $12.35bn(N1.96tn) would be expended alone on the drilling of 19 oil wells.
Bonga is located in oil prospecting licence 212
and SNEPCO operates the field on behalf of the Nigerian National Petroleum Corporation under a production sharing contract, in partnership withEsso (20 per cent), Nigeria Agip (12.5 per cent)and Elf Petroleum Nigeria Limited (12.5 percent).
Bonga also lies 120km southwest of the Niger
Delta in a water depth of over 1,000m.
Managing Director, SNEPCO, Mr. Chike
Onyejekwe, said Shell recorded tremendous
success in its Bonga deep water oil field, saying as at December 2012, it had exported about 450million barrels of crude oil.
The cost of the Bonga field development,
including the cost of the Floating Production
Storage Offshore vessel built in 2004, came to
$3.6bn (N569bn)
Despite the fact that the drilling of the 19 oil
wells will amount to $12.35bn (N1.96tn), the
Bonga extension project, according to Shell, may gulp around $33bn (N5.2tn).
Our correspondent gathered that this might
include a $21bn (N3.32bn) FPSO proposed for
the new Bonga South West, $4bn (632.7bn)
Bonga East, $1.9bn (N300bn) Bonga North
(Aparo), and $3bn (N474bn) Bonga North East.
In spite of the fact that the Nigerian National
Petroleum Corporation had in January 2013
directed International Oil Companies operating in the country to drastically cut over $30bn(N4.7bn) proposed for new projects, Shell said Petroleum Industry Bill, if passed ¡°the way it is¡±would drive away investment in the Nigerian oil and gas industry and might stall the 19 Bonga oil wells.
The SNEPCO boss and Shobayo called for a PIB that would be investment-friendly.
They also said if the fiscal terms of the PIB were reviewed, about $3bn (N474bn) deep water revenues could be unlocked for the Federal Government.
Corroborating this, the Commercial Manager,
Shell Nigeria Exploration and Production
Company Limited, Mr. Stefan Vas de Wael, said the development of deep water assets in the country¡¯s oil and gas could contribute $3bn(N474bn) to the country¡¯s economy as well as generate about 200,000 jobs annually.
Vas de Wael said the undeveloped deep-water
assets could add over 600,000 barrels per day of oil, which would amount to doubling the current deep water liquids from deep water fields in the country.
He said over $5bn (N790bn) would be required annually to develop and produce five million barrels of oil per day.
Vas de Wael said, ¡°If all the deep water assets in Nigeria are developed, they could generate 200,000 plus jobs, $3bn in GDP and 600, 000barrels oil per day. This is according to McKinsey Multiplier Model.
¡°Developing 200,000 jobs is equivalent to
growing the oil and gas industry by 30 per cent.$3bn GDP will amount to additional 15 per net of projected GDP growth rate.
¡°The 600,000 barrels per day will amount to
doubling current deep water liquids production.
Annual spend of $5bn (N790bn) plus to develop and produce five million barrels of oil per day.¡±
http://www.businessnews.com.ng/2013/...-gulp-n1-96tn/
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Old June 25th, 2013, 04:06 PM   #15
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Total Starts $15bn Egina offshore Nigerian oil project

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Total SA (FP), Europe’s third-biggest oil company,will start developing Nigeria’s offshore Egina field for $15 billion as part of a plan to boost production.First oil from the field, which is part of the OML 130 block, is expected at the end of 2017, with output reaching 200,000 barrels of oil a day, according to a statement.
A Total official said development costs will be
around $15 billion.The project can be started
after Total obtained the necessary approvals from Nigeria to award the main contracts, the
statement showed. Total Chief Executive Officer Christophe de Margerie has said the explorer will use proceeds from asset sales to pay dividends and develop oil and gas projects rather than make acquisitions.
The French company has also pledged to try
harder to make large oil and gas discoveries in a bid to raise production.The Egina project calls for 44 wells connected to a 330 meter-long floating production, storage and offloading vessel which can store 2.3 million barrels, Total said in last week’s statement.
Locally worked hours will reach about 75 percent for Egina as part of a plan to boost local content of Nigerian projects.Total is operator of Egina with a 24 percent interest. The other partners are Nigerian National Petroleum Corporation, South Atlantic Petroleum of Nigeria, Cnooc Ltd.
source
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Old June 25th, 2013, 04:13 PM   #16
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Saipem wins $3 billion contract in Nigeria

Quote:
Saipem has won a $3 billion contract to develop an underwater field around 100 kilometers off the coast south of Port Harcourt in Nigeria, the Italian oil services group said on Tuesday. Saipem, under mounting pressure after issuing a second profit warning in less than 5 months last
week, said the contract covered engineering,
procurement, fabrication and installation of 52 kilometers of pipelines and other mooring and loading systems.
The work is due to take place in 2016, continuing into the second quarter of 2017, the group said in a statement.
source
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Old November 21st, 2013, 01:30 PM   #17
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Nigeria: Afren, Lekoil Announce Oil Discovery in OPL310

Quote:
here was plenty of action among London’s oil and gas explorers. Afren climbed 12.1, or 8.1pc, to 161p after disclosing a well at the Ogo prospect off the coast of Nigeria had found significantly more oil than expected. UBS analysts were excited about the find, which they described as a “giant”:
“The discovery looks to be one of the most important made in West Africa in recent history and to describe it as 'transformational’ would not be hyperbole,” they said. Afren has a 40pc economic interest in the block where the well was drilled, while Nigeria-based Optimum Petroleum and London-listed small-capper Lekoil both hold 30pc. The
Quote:
Afren Plc and partner, Lekoil Limited, Tuesday said drilling results at the OPL310 site offshore Nigeria were almost four times higher than previous expectations.

The two junior oil and gas exploration and development companies said the OPL310 site showed a gross recoverable P50 resource estimated at 774 million barrels of oil equivalent, almost four times more than their originally targeted 202 million barrels.

Afren holds a 22.86 per cent participating interest and 40 per cent economic interest at the site, while Lekoil holds a 17.14 per cent participating interest and 30 per cent economic interest.
http://allafrica.com/stories/201311201163.html
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Old April 13th, 2014, 07:57 PM   #18
SAFfireGOld
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Local Content: Indigenous Oil Firms Now Making their Marks

30 Mar 2014

By Festus Akanbi

As the line between the scope of operations of international oil companies and indigenous oil firms in the Nigerian oil industry thins out, the Nigerian National Petroleum Corporation, IOCs and the Nigerian Content Development and Monitoring Board have been praised for the prevailing favourable climate for local initiatives.

According to the Executive Director Fenog Nigeria Limited, Mr. Mathew Tonlagha, the support and encouragement from these entities combined with the principles of local content law served as catalysts for the local companies to strive for excellence in a sector hitherto intimidatingly dominated by foreign players.

Speaking at a recent dinner to mark the end of the 2014 edition of the Nigeria Oil and Gas Seminar in Abuja, he explained that “The IOCs, especially Shell, Chevron, NAOC (Agip), Total and others have done so well to encourage the indigenous oil and gas companies.
“We cannot also under-estimate the roles of the Nigerian Content Development and Monitoring Board, especially its Executive Secretary, Engineer Ernest Nwapa, in the breakthrough recorded by indigenous oil firms, including Fenog. We are very grateful to the board and other critical stakeholders in the oil and gas industry,” Tolangha stated.

The annual seminar was held under the auspices of the Federal Ministry of Petroleum Resources and Nigerian National Petroleum Corporation, (NNPC). This year’s edition attracted local and international decision makers in the oil and gas sector and featured distinguished speakers, participating companies and exhibitors from the entire oil and gas value chain.
The ceremony climaxed in the recognition of Fenog as Indigenous Company of the Year in the oil and gas sector by NOG.

Justifying the award, Tolangha said Fenog was honoured because of the giant strides it has recorded in the industry. “As a pioneer use of Carnduff Horizontal Directional Drilling (CHDD) rigs, Fenog had joined forces with the governments and other stakeholders in the task of eliminating sharp practices associated with crude oil, especially illegal oil bunkering and pipeline vandalisation,” the soure said.

To sustain its innovative local content strides and place it ahead of other operators, Fenog had seven HDD rigs in the categories of PD 150, 250, 350 and 500 HDD rigs as well as an Offshore and Deep Water Barge (Akpevweoghene), with the capacity to lay pipes from 2” to 60” offshore/deepwater.

He disclosed that the latest of the Horizontal Directional Drilling fleet (HDD) technology acquired by the company is PD 350 HHD rig designed to Fenog’s management specifications by the German manufacturers. In addition to its installed drilling capacity, PD 350 HDD rig has other inherent values over PD500 HDD rig.

Confirming the company’s investment, Tolangha said “PD350 HDD rig is different because we call it a versatile rig. Apart from the normal drilling which every other rig can do, it is also used for pulling, pushing, thrust-boring, tunneling and it has the ability to grab and push and overcome any force.
“The operation of PD 350 HDD rig is all-encompassing. It is the first of its kind in the whole world. We (Fenog) told the manufacturers what they would do for us and they came up with it and it is the latest of the HDD technology,” Tolangha added in an earlier interview.
With the CHDD rigs, Fenog has recorded many milestones in underground pipelaying.
The latest of the breakthrough was recorded on Thursday, March 13, 2014, when it successfully laid 20” pipes across 3.49-kilometre River in the ongoing Amukpe/Escravos pipeline project awarded by oil major.

From humble beginning in 1992 when it was incorporated, other selected jobs which earned the company the confidence of the industry include the expansion of Escravos-Lagos pipeline project, Phase I construction of treatment plant and water storage facilities in Oporoza community in Delta State and piling of Abiteye Surge Oil Vessel.
Fenog is reputed as Nigeria’s premier provider of superior construction services.
Although the NOG seminar has ended, Fenog promised to sustain its leadership drives in the oil and gas industry by further investing in diverse Nigerian content initiatives in a manner to guarantee crucial skills transfer and Nigerian content development.

http://www.thisdaylive.com/articles/...-marks/174846/
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Old April 13th, 2014, 11:07 PM   #19
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Dangote Plans Acquisition Of Shell Asset In Nigeria



Agency Report, Chika Izuora
— March 28, 2014

Africa’s richest man, Aliko Dangote, is deepening his investment in Nigeria’s oil and gas sector.

Apart from planning the biggest petrochemical plant in the sub-Saharan Africa, the business mogul has bidded to acquire a juicy oil well operated by oil giant Shell.

According to report monitored by LEADERSHIP Friday, Dangote is planning to acquire a stake in a Nigerian gas field owned by Anglo-Dutch multinational energy giant, Shell.

In a report by Africa Intelligence, Dangote Industries submitted the highest bid for Shell’s stake in Oil Mining Lease (OML) 18 at an auction organised last year in the Niger Delta region.

The financial details of the bid and the exact stake Dangote is looking to acquire are undisclosed.

Dangote, who made his $24 billion fortune trading cement, sugar and flour, has recently ramped up his efforts to boost his investments in Nigeria’s booming oil sector.

While his largest and most publicised investment in the energy sector is a planned $9 billion private oil refinery in Nigeria, Dangote also owns minority stakes in a handful of oil exploration concerns, including a nine per cent stake in block 1 in the Joint Development Zone (JDZ) between Nigeria and Sao Tome, where Chevron is the operator. He also owns a 10 per cent stake of block 3 in the JDZ, according to the Africa Intel

http://leadership.ng/business/360401...-asset-nigeria
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Old April 14th, 2014, 02:19 PM   #20
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Nigeria Pays U.S.$10 Million to Ghana Over Failure to Meet Gas Supply Agreement
14 April 2014 , By Chika Amanze-Nwachuku With Agency Report, Source: This Day
The Federal Government has paid $10 million to Ghana as compensation for Nigeria's failure to meet the gas supply agreement it entered with latter.

Under the agreement signed in 1999, Nigeria was required to supply Ghana with 123 Million Metric British Thermal Units (MMBtu) per day.

However, Nigeria was said to have failed to meet the target, supplying only 30 MMBtu/d and less sometimes. The Director of Planning and Business Development of the Volta River Authority (VRA), Kofi Ellis, told TV3's Sandra Amarquaye weekend that Ghana has been paid $10 million as damages by Nigeria over the shortfall as stipulated in the gas supply contract.

"The contract already stipulates some liquidated damages for reduction in supply," Ghanaweb quoted Ellis to have said. "I know that already we have been paid some damages for the reduction in supply", he added.

A recent visit of the Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, to Nigeria culminated in West Africa's biggest gas-supply nation promising to supply a constant 50 MMBtu/d.

Ellis noted that intervention by government, admitting that inasmuch as Nigeria would want to help Ghana, they are also facing challenges.

"I guess the Nigerians also share in our problems. They understand. The unfortunate thing is that this is a commodity that both countries need for themselves. So it is a matter of trying to see how best you can help your neighbor", he said.

He however said the contract will not be abrogated notwithstanding that Nigeria is facing challenges in meeting the terms.

The recent below-expectation supply of gas from Nigeria has been cited as one of the causes of challenges in the energy sector. Power shortage has been on the rise in Ghana as hopes to solve its electricity woes by producing

natural gas to power electricity plants had been held back by the loss of a shipment of materials and delays in paying contractors. The Nigerian National Petroleum Corporation (NNPC) and Ghana National Petroleum Corporation in 1999 signed a gas supply agreement to further implement the West African Gas Pipeline project.

Under the agreement, Ghana would be conserving between 15,000 barrels per day (bpd) of crude oil and 20, 000 bpd of crude oil by taking gas from Nigeria to run its power plants. Ghana would be taking 84 per cent of about 120 mm cfpd of gas that Nigeria would be selling to the other three countries, Ghana, Benin, Togo under the project.

Aimed at boosting Nigeria's revenue and protecting environment by reducing gas flaring, the West African Gas Pipeline Project was among the first major projects President Olusegun Obasanjo administration launched at its inauguration on May 29, 1999.

Recently, Ghana had approached Nigeria press for supply of more gas for power generation. Following a recent meeting with its energy and petroleum minister to Nigeria, Nigeria agreed to increase its gas sales to Ghana from 30 million to 50 million cubic feet per day, which was below the 123 million cubic feet per day contained in the gas supply agreement by the two countries.
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