FG SAVING N1.4TRN PER ANNUM FROM SUBSIDY REMOVAL, SAYS KACHIKWU

Following the recent removal of subsidy from the pump price of premium motor spirit, the Federal Government will be saving over N1.4 trillion annually. The Minister of State for Petroleum Resources,

Ibe Kachikwu, who disclosed this when he visited the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa, explained that the deregulation policy has also re-awakened the downstream sector and will help the nation become a net exporter of petroleum products in a few years.


Read more @ BusinessDay

EGINA, OTHERS APPROACH FINAL CONSTRUCTION PHASES

Jeremy Beckman, in this report, explained that despite the recent fall in oil price, Total Exploration & Production Nigeria, has forged ahead with the  construction of three giant deep offshore projects in Nigeria, Republic of Congo and Angola. He noted that all three projects have reached final construction phases and will begin operations soon.

The Egina offshore Nigeria is projected to go onstream in 2018, followed by Moho Phase 1b in Republic of Congo in 2017 while Kaombo’s two FPSOs in block 32 offshore Angola will start up in 2017 and 2018. According to Total’s E & P Secretary General for Africa, Abiodun Afolabi, “there has never been any question of suspending activity., and Total will maintain its commitments, while ensuring that all three projects are profitable.”

Read more @ Businessday

GOVERNMENT LOSES N10B DAILY TO OIL FACILITIES’ ATTACK

With the series of attacks carried out by the Niger Delta militants in the last few weeks, the country’s crude oil production has dropped to about 1.1million from the normal output level of 2.2 million barrels per day.

Using the international benchmark of crude oil price of $50 per barrel, the Federal Government is losing $55 million or about N10 billion daily as the militants vow to continue to destroy oil facilities in the Niger Delta.

Read more @ The Guardian

LABOUR SHUNS COURT ORDER AS STRIKE BEGINS TODAY

Despite the order yesterday of the National Industrial Court sitting in Abuja stopping‎ the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) from embarking on the planned strike over the increase in fuel price, the labour unions have insisted on going ahead with the action beginning today.

The Federal Government last week increased the price of fuel from N86.50 to N145 per litre. Consequently, organised labour unions threatened to commence a nationwide strike from today unless the situation is reversed.

Read more @ The Guaedian

FUEL PRICE INCREASE: COURT STOPS NLC FROM GOING ON STRIKE

The National Industrial Court has stopped ‎the Nigerian Labour Congress and the Trade Union Congress from embarking on strike to protest last week’s increase in fuel price by the federal Government.

 

Justice Babatunde Adejumo gave the restraining order after the Attorney General of the Federation, Justice Adejumo, held: “The defendants are hereby restrained from carrying out the threat contained in their communique issued on May 14th pending the hearing and determination of the ‎motion on notice filed on May 16.

 

Read more @ Thisdaylive

FG FIXATION ON PETROL PRICE CAUSE OF ACUTE SHORTAGE

Operators of Nigeria’s downstream oil industry have blamed the Federal Government’s fixation on the price at which refined products are delivered to motorists for the lingering fuel shortage that has virtually grounded the economy and brought pain and misery to Nigerians.

Read more @ Businessday

OIL PRICES HIT 2016 HIGH, RISE ABOVE $40/BL

The price of Brent crude monday rose for the sixth consecutive trading day in a row, hitting a 2016 peak of over $40 a barrel, as buyers were encouraged by talk that the Organisation of Petroleum Exporting Countries (OPEC) was targeting a higher anchor price after a sell-off that has lasted nearly two years.

 

The rise in oil prices coincided with comments by the President of Dangote Group, Alhaji Aliko Dangote, who advised Nigerians to stop viewing the low oil price environment as a setback, saying that the situation offers the nation an opportunity to diversify its revenue base.

 

Read more @ Thisdaylive

MULTINATIONALS SAY NIGERIA’S DOLLAR CRUNCH IS HURTING BUSINESS

Multinational groups say a dollar shortage in Nigeria, driven by the oil price crash is forcing local suppliers to buy hard currency at a black market premium, pushing up their operating costs and prices, and obstructing business in Africa’s biggest economy, the Financial Times reports.

Read more @ Businessday

OIL FIRMS TO SLASH SPENDING BY 17% THIS YEAR

The oil price crash is expected to slash capital expenditure on global oil exploration and production by 17 per cent this year, after a 24 per cent drop in 2015, according to the International Energy Agency’s (IEA) medium-term outlook.

IEA said in the report, released yesterday, that this would be the first time since 1986 that upstream investment has fallen for two consecutive years.

Read more @ The Guardian

NIGERIA, SAUDI ARABIA COMMIT TO STABLE OIL MARKET

Nigeria and the Kingdom of Saudi Arabia (KSA) have expressed commitment to a stable oil market and a rebound of oil price.

This resolve formed the crux of discussion yesterday between President Muhammadu Buhari and King Salman Bin Abdulaziz Al Saud in the second day of the President’s state visit to the Kingdom.

Read more @ The Guardian

NIGERIA’S OIL SECTOR MISMANAGED FOR PAST 25 YEARS – KACHIKWU

Nigeria’s Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu on Thursday lamented that the country’s oil sector was poorly handled for the past 25 years.

This is also as he raised the hope that in spite of the crash in oil price in the global market, the oil industry will stand and rise again.

Read more @ Daily Post

KACHIKWU: OPEC MEMBERS INCREASINGLY KEEN TO END OIL GLUT

The mood inside the Organisation of the Petroleum Exporting Countries (OPEC) is shifting from mistrust to a growing consensus that a decision must be reached on how to end the global oil price rout, Nigeria’s oil minister told Reuters.

Oil prices have slumped by more than 70 per cent to near $30 a barrel over the past 18 months as OPEC, led by top producer Saudi Arabia, sought to drive higher-cost producers out of the market by refusing to cut production despite a supply glut.

 

Read more @ Thisdaylive

FITCH: NIGERIA’S OIL RESPONSE HAS DOWNSIDE FISCAL, GROWTH RISKS

The federal government’s recent economic policy announcements show its response to the oil price shock is coalescing around state-led development to boost economic growth and import substitution to blunt the effects of declining oil receipts, Fitch Ratings has said.

The global rating agency, in a statement yesterday, said though it was yet to be seen whether the associated measures adopted by the government would promote growth while containing fiscal pressure, it believed there are a number of downside risks.

 

Read more @ Thisdaylive

CRUDE OIL PRICES SLIDE AS HOPES OF PRODUCTION CUT DIM

West Texas Intermediated (WTI) crude oil declined by 6.33 per cent at $31.62 a barrel and Brent fell by 0.14 per cent to $34.69 a barrel as hopes for a deal on production did not scale through.

Russia had last week sent mixed signals about possible cooperation with Organisation of Petroleum Corporation (OPEC) to support prices. It first suggested it should start talking to the cartel before saying there was no decision to do so.

Read more @ The Guardian

PRICE ROUT: IOCs CANCEL $380BN PROJECTS –REPORT

International Oil Companies (IOCs) have been forced to scrap and postpone projects worth $380 billion in Nigeria and other countries since 2014 to survive the oil price crash, which yesterday dipped to $29.73, the weakest since February 2004.

Authoritative voice in global oil and gas dynamics, Wood Mackenzie, declared yesterday that $170 billion of projects planned between 2016 and 2020 had also been cancelled.

Read more @ New Telegraph

IMF PRESSES FOR END TO SUBSIDY

Nigeria may have almost been brought to its knees by the dwindling oil prices and threats to other sources of revenue. For the country to overcome these challenges, the Federal Government may need to heed the advice of the Managing Director of the International Monetary Fund (IMF), Christine Lagarde.

Read more @ Guardian Online

MARKETERS BLAME SUPPLY SHORTAGE FOR NON-COMPLIANCE WITH NEW PETROL PRICE

Three days after the Federal Government’s new pump price regime took effect, many petroleum marketers are yet to comply with the N86.50k benchmark due to shortage of petrol in the distribution chain.

The Guardian yesterday observed that the long queues at filling stations have eased off, but many of the retailers still sell above pump price.

Read more @ Guardian Online

GLOBAL OIL DEMAND TO HIT 110 MBPD BY 2040

The Organisation of Petroleum Exporting Countries (OPEC) has estimated that global oil demand would hit 110 million barrels per day (mbpd) by 2040.
Also, the cartel said about $10 trillion, (in 2014 prices), is required as oil-related investment needed to cover future demand for oil at the global level between 2015 and 2040.

Read more @ The Guardian

NIGERIA’S CRUDE OIL FALLS TO $31.49

As the Federal Government grapples with how to salvage the economy, the continued sliding of the price of crude oil may require that its effort should be intensified.

Indeed, Nigeria’s Bonny Light crude oil hit its lowest level at $31.49 a barrel at the weekend due to global crude oil glut at the international market. The price of Organisation of Petroleum Exporting Countries (OPEC) basket of 12 crudes stood at $31.49 a barrel compared with $32.28 it earlier recorded.

Read more @ The Guardian

FED GOVT ‘LL NOT REMOVE FUEL SUBSIDY, SAYS KACHIKWU

The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu yesterday said  the Federal Government will not scrap the Petroleum Support Fund (also known as subsidy) but will, instead, embark on price modulation.

He denied saying  the price of petrol will go up in January. Addressing a press conference in Abuja, he said the Nigerian National Petroleum Corporation (NNPC) will alongside the Petroleum Product Pricing Regulatory Agency (PPPRA) sit to determine the new template to arrive at a new price which will be subject to quarterly review in line with the price of crude oil.

 

Read more @ The Nation Online