PENGASSAN demands open, competitive bids for renewal of oil licenses MKPOIKANA UDOMA
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ort Harcourt -- The Pe t r o l e u m a n d Natural Gas Senior Staff Association of Nigeria, PENG A SSAN, says the upcoming renewal of oil block licenses in the country should be made open and
competitive for bidders rather than a means of reward for cronies of those in government. Recall that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, recently announced that all oil blocks that were due for renewal would be approved by the first quarter of this year.
Though extant regulations stipulated that operators apply six months ahead, Kachikwu had said that the plan follows the early renewal policy that was instituted by the current administration, adding that over $2 billion has already been generated from the renewal to enable the country
finance its 2019 budget. But, PENGASSAN Chairman, Port Harcourt Zone, Comrade Azubuike Azubuike, told our correspondent exclusively that open bidding for oil block licences will generate money for the country. Azubuike regretted that
successive governments in the country used oil block licenses as a means of settling their loyal friends and cronies of the government. According to him, "Oil blocks are national properties and if it comes to renewal, we need to
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A Review Of The Nigerian Energy Industry facebook.com/sweetcrudereports
WEEKLY
UU PP D D A A TT EE SS WEEKLY BASKET PRICE JAN-25 JAN-18 JAN-11 JAN-04 DEC-28 DEC-21 DEC-14 DEC-07 NOV-30 NOV-23 NOV-16 NOV-09 NOV-02 Daily | Weekly | Monthly | Yearly
60.76 58.34 58.04 53.40 51.34 55.20 59.05 59.95 58.80 62.83 66.52 70.51 74.16
January 30, 2019
twitter.com/sweetcrudeRep
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Libyan outage, Algeria's export drop drive demand for Nigerian crude
60.9U$
78 74 70 66 62 58 54 50
OCT18
NOV18
DEC18
JAN19
Ogoni clean-up will not be defective, says HYPREP MKPOIKANA UDOMA
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ort Harcourt -- The Hydrocarbon Pollution Remediation Project, HYPREP, has assured that the ongoing clean-up of oil-impacted sites in Ogoniland will not be defective and that it was in line with international standard set by the United Nations Environment Programme, UNEP. HYPREP Coordinator, Dr Marvin Dekil, gave the assurance in Port Harcourt while briefing newsmen on the activities of the agency, stating that, contrary to the opinion of critics, HYPREP had not sidelined the UNEP recommendations. He added that since the clean-up exercise was a project of the Federal Government, all procurement processes adopted by HYPREP for the
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Oil rig and crude oil pipe
SAM IKEOTUONYE, with agency reports
L
agos -- An unplanned outage in Libya and reduced exports from Algeria have combined to boost the potentials of Nigerian crude grades in the international market. Nigerian crude differentials remained strong last week, while the high offer levels and a number of pending buy tenders were reportedly keeping some buyers on the sidelines. A smaller export programme for Kazakhstan’s CPC Blend, as well as an Organization of Pe t r o l e u m E x p o r t i n g Countries, OPEC, led supply cut have helped to boost differentials for lighter West African grades, including Nigeria's, according to Reuters. Bonny Light and Qua Iboe were being offered around dated Brent plus $2.50, or at a
premium of 90 cents to the official selling price, a trader said, steady from earlier in the week. No deals at that level were heard to have been done. A trade at that level would be the highest since 2014, Reuters reported, quoting Refinitiv Eikon data. Meanwhile, less than half of the Angolan March loading programme, or about 18
cargoes, is available for sale on the spot market. The heavier grades have not rallied as much as light, sweet grades. One trader said heavy grades were being offered at parity with dated Brent or at small premiums. Also, Taiwanese refiner CPC has issued a tender to buy an unspecified amount of light, sweet crude that closes on Thursday. The company has
taken an increasing amount of U.S. shale rather than West African crude over the last year. Indian Oil Corporation issued a buy tender for crude loading March 12-21. The tender closed on January 25. Another Indian refiner, HPCL, is running a buy tender that could draw in West African crude. The tender closed last week.
Cooking gas price varied in December - NBS OPEOLUWANI AKINTAYO
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agos -- The average price for the refilling of the 5kilogramme cylinder of the Liquefied Natural Gas, LPG, also known as cooking gas, was down by 1.53 percent in December 2018, the National Bureau of Statistics, NBS, reports. But, the price of the 12kilogramme cylinder was up
2.12 percent, NBS also said. According to the bureau, the price for the refilling of a 5kilogramme cylinder of the LPG decreased by 1.53 percent monthon-month and 9.84 percent yearon-year to N2,052.79 in December 2018, from N2,084.74 in November 2018. States with the highest average price were Bauchi and Borno at N2,500, Katsina (N2,357.14) and
Anambra (N2,330.77). States with the lowest average price were Enugu (N1,748.46), Gombe (N1,733.33) and Ondo (N1,731.25). The bureau also reported that the average price for the refilling of the 12.5-kilogramme cylinder increased by 2.12 percent month-on-month and 1.63 percent year-on-year to
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SWEETCRUDE WEEKLY, 30 JANUARY, 2019
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PENGASSAN demands open, competitive bids for renewal of oil licenses
Oil
02
Navy warns oil thieves, destroys illegal refineries in Delta LUCKY OMAS
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arri, Delta State -The Nigerian Navy has war ned oil thieves to repent and seek legitimate means of livelihood as its personnel destroyed illegal refineries in Jibo community, Wa r r i S o u t h w e s t L o c a l Government Area of Delta State. Commander, Nigerian Navy Ship, NNS Delta, Commodore Ibrahim Dewu, who spoke through the Executive Officer, NNS, Delta, Navy Captain Adeyemi Adewuyi, said about 134 illegal refineries have been destroyed in Delta State within a space of two weeks, adding that the navy will not relent in its war against oil thieves. "First, I'll like to inform you that we are in Jibo community in Warri South-West council area of
Military patrol in the Niger Delta to wear rain boots because of the fact that it is swampy. Within that stretch, we have destroyed 82 illegal refinery units, including more than 32 dug pits in which they store stolen crude oil. "Although no arrest has been made, we are still relying on our informants to get some of the operators of the illegal refineries arrested. In the past, we have made several arrests and such
Delta State to carry out the destruction of illegal refineries with the use of swamp buggies. Currently, we are employing two swamp buggies simultaneously to destroy the illegal refinery sites in this community. "This illegal refining site stretches about four kilometres, approximately. We have been able to trek the distance, having
OPEC's NGLs, non-conventional oils to grow by 0.11mb/d this year
OPEC headquarters OPEOLUWANI AKINTAYO
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a g o s - - T h e Organization of the Petroleum Exporting Countries, OPEC, has forecast that its natural gas liquids,
NGLs, and n o n conventional liquids will grow by 0.11 m i l l i o n barrels per day, mb/d, this year. Its preliminary production data in November and December 2018 showed output at 5.05mb/d, higher by 0.20mb/d year-on-year.
Gas The group had adjusted its NGLs and non-conventional liquids for 2018, down by 1.36mb/d from the December Monthly Oil Market Report, MOMR – now excluding output from Qatar – to average 4.98mb/d. This includes an estimated 4.85mb/d of NGLs and 0.13mb/d of non-conventional liquids. Year-on-year growth in 2018 now stands at 0.04mb/d.
Power
Kano Disco gets backfeed from TCN
K
ano -- The Kano Electricity Distribution Company feeders affected by the recent failure of one of its 150MVA 132/33kV power transformers in Kumbotso Transmission Substation has been backfed from other available 2 x 150MVA transformers in the station. This is to ensure consistent bulk electricity supply. The backfeeding supply was carried out by the Transmission Company of Nigeria, TCN, while the distribution company effected repairs on the 150MVA 330/132kV power transformer which tripped earlier this year. In a statement signed by TCN's General Manager, Public Affairs, Mrs. Ndidi Mbah, the company stated that on January 1, this year, one of its 150MVA transformers in Kumbutso substation tripped, causing TCN to lose about 90MW on the Kano –Kankia – Katsina 132 kV line 1, which feeds Kankia, Katsina and Daura as well as the
Kumbotso – Dakata 132 kV transmission lines, thereby Electricity transformers affecting supply to Kankia, Katsina and Daura in Katsina State as well as Sabon Gari, Dakata, Bompai, Mariri and Gezawa in Kano State. OPEOLUWANI AKINTAYO According to the statement, agos -- The Department TCN had since isolated the faulty o f Pe t r o l e u m transformer and rearranged its R esources, DPR, bulk electricity load delivery to received an allocation of N3 Kano Disco to ensure that billion from the Federal customers fed from this Account Allocation transformer still receive electricity. C o m m i t t e e , FA A C , i n Currently, Dakata Substation December 2018. feeds from Transformer T2A Newly-released data by the through Hadejia line while National Bureau of Statistics Kankia-Katsina and Daura now showed that the department gets supply from Transformer got a total of N3.53 billion, T4A. Tamburawa Substation on w h i l e o t h e r Fe d e r a l the other hand now receives G overnment's revenuepower supply through Kadunagenerating agencies as the Zaria-Kano 132kV transmission Nigeria Customs Service, NCS, line.
CONTINUED FROM PAGE 01 renew to make more money from them. "But let it be an open bidding. As far as I am concerned, it shouldn't be used as settlement as usual. Let us pick the best for the interest of the country". "Government shouldn't be for pecuniary gains and it shouldn't be a do or die affair. If we are renewing oil blocks, we should put into cognisance certain
statistics. We should be able to ask ourselves, will this thing we are doing be of benefit to the country or used as settlement? "Some persons are claiming to be richest men and women today, just because they gathered oil blocks on the platter of gold. Let there be an open bidding, let people be able to bid and on the long run, make money for the country," he added.
Cooking gas price varied in December - NBS CONTINUED FROM PAGE 01 N4,332.06 in December 2018, from N4,242.26 in November 2018. States with the highest average price were Cross River (N4,846.15), Akwa Ibom and Delta (N4,766.67) and Abia (N4,742.86). On the other hand, states with the lowest average price were Lagos, (N3,922.22), Oyo (N3,900.00) and Ogun (N3,862.50). In a statement recently, the Nigerian National Petroleum Corporation, NNPC, announced plan to bring down
the price of the LPG in the c o u n t r y. I t s a i d i t w o u l d implement effective commercial framework that would halt the export of propane and butane, major components in the production of the LPG or cooking gas. The corporation explained that the stoppage of the export of the products, which is anchored by its Crude Oil Marketing Division, would enable it boost supply of LPG to the domestic market thereby leading to a natural downward slide in the price of the product.
Ogoni clean-up will not be defective, says HYPREP CONTINUED FROM PAGE 01 award of contracts for the remediation works were in line with the Procurement Act of 2007. He said: "We are pleased to announce to you that 16 contractors have been introduced to 16 sites in the 4 Local Government Areas of Ogoniland and remediation works have commenced. "HYPREP has in keeping to laid down procedures, followed due process in handling the award of contracts for the clean-up project. Advertisements were placed on 30th April, 2018 for
the remediation contracts in Federal Tenders Journal, as well as local and foreign media to reach out for international competitive bidding by contractors. "At the end of the rigorous procurement process, 21 contractors who qualified to carry out remediation works were invited to a kick-off meeting to enlighten them on how the project will be managed, what is expected of them, engagement of local content, relationship with the host community and other issues that will enhance the smooth running of the project.”
Finance thgierF
DPR gets N3bn allocation from FAAC in December
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a n d t h e Fe d e r a l I n l a n d
R e v e n u e Service, FIRS, got N5.01 billion and N9.65 billion respectively as cost of revenue collection. FA A C h a d disbursed the sum of N812.76
Mr Mahmoud Yunusa
billion to the three tiers of government in December 2018 from the revenue generated in November 2018. The amount disbursed comprised of N649.63 billion from the Statutory Account,
N92.08 billion from Valued Added Tax, N1.05 billion exchange gain allocation and N70 billion from the foreign exchange equalisation fund.
SWEETCRUDE WEEKLY, 30 JANUARY, 2019
SWEETCRUDE WEEKLY, 30 JANUARY, 2019
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Labour
04
Again, oil workers recommend NLNG model for refineries
Oil workers MICHAEL JAMES
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agos -- The Petroleum Offshore vessels Gas Senior and Natural Staff Association of Nigeria, PENGASSAN, has again kicked against the current operating model of the
nation's four refineries in Warri, K a d u n a a n d Po r t H a r c o u r t , describing it as unsustainable. It, therefore, advocated the Nigeria Liquefied Natural Gas, NLNG, business model for the refineries after they must have been
rehabilitated for them to yield better dividends to the nation’s economy. Arising from its National Executive Council, NEC, meeting in Uyo, Akwa Ibom State, PENGASSAN, in a statement, called on the Federal Government to increase local refining capacity and remove all o b s e r v e d encumbrances to full rehabilitation of the four local refineries. The association, in the
MICHAEL JAMES
NPA to raise awareness on need for clean waters L
agos -- The Nigerian Ports Authority, NPA, is to embark on an awareness campaign to raise the consciousness of the people on the need for clean waters, to sustain aquatic life and navigation. NPA's General Manager, Health Safety Environment, HSE, Engr. I.S. Abdulbaki, disclosed this as the agency commenced the cleanup of oil spills at the Onne Port Channel a t t h e Fe d e r a l O c e a n s Terminal, FOT, Onne, River State.
The cleanup exercise is the first of such project being executed by the personnel of the Environment Department of the NPA. Speaking at the commencement of the cleanup project, Abdulbaki said though the actual cause of the oil spills at the port could not be ascertained, the thinking is that they are a result of the activities of oil
Hadiza Bala Usman bunkers and also wastes from communities that are emptied into the water channels. He said part of the activities being carried out was to remove debris from the waters and use chemicals to clean the water to achieve improved water.
L
agos -- The Nigerian Maritime Administration and Safety Agency, NIMASA, says it would intensify its efforts to reposition the maritime industry, as it moves to become a leading maritime administration in Africa. The Director-General of NIMASA, Dr. Dakuku Peterside, stated this in Lagos during the Independent Newspapers Awards 2018, where the agency bagged the Federal Agency of the Year Award. Dakuku said: “We are spurred by this award and we appreciate the fact that our efforts to revitalise the maritime sector through our medium term strategy plan are yielding results.
Oil pollution in Rivers State has reached crisis point - Environmentalist
MKPOIKANA UDOMA
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they assumed office two years ago. The NDDC boss stated that the commission has executed over 300 projects in Akwa Ibom in the last two years under his watch, 90 per cent of which have been completed. "NDDC is delivering quality work across the Niger Delta. "All I can assure the entire Akwa Ibom people is that NDDC will continue to be alive to its responsibilities and to recognise Akwa Ibom State as the leading oil producing state in the country," he said. The Deputy Vice Chancellor, Academics, of the University of Uyo, Prof. Inyang Udofot, who represented the Vice-Chancellor, Prof. Enefiok Essien, commended the NDDC Chief Executive Officer for including
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Mr. Nsima Ekere the university among beneficiaries of the commission's projects. "The approach road into this campus was an embarrassing feature of our university and you have saved us from this embarrassment because you are our own. You shared this embarrassment. The University of Uyo will not forget this gesture. Thank you sir and may the good Lord bless you and your future endeavours," he said.
EDITOR Chuks ISIWU
WEBSITE:
www.sweetcrudereports.com
"We will redouble our efforts to ensure t h a t t h e q u e s t o f t h e Fe d e r a l Government to diversify the economy gets the required support from the maritime sector and its stakeholders, as it portends several opportunities for economic growth and development.” The Director-General, who was represented by the Executive Director, Finance and Administration, Mr. Bashir Jamoh, dedicated the award to the agency’s stakeholders. He applauded the management of Independent Newspapers Limited for recognising the contributions of NIMASA to the economy. Dakuku appealed to the media to continue to spotlight the federal government’s efforts to reposition the economy, adding that the media remained critical in the actualisation of the government’s quest for economic diversification and development.
Community
NDDC commissions road, solar-powered street lights for UniUyo ort Harcourt -- The Niger Delta Development Commission, NDDC, has commissioned a 3.7kilometre dual carriageway and solar-powered street light leading into the main campus of the University of Uyo in Akwa Ibom State. The Managing Director of the Commission, Mr. Nsima Ekere, who performed the commissioning, expressed satisfaction with the quality of work done by the NDDC contractor, pointing out that the solid drainage work would enable the road to last long. Ekere said the era of poor quality work and abandoned projects was gone because of the control measures put in place by the current NDDC board and management since
over inadequate funding and crude supply as well as staff attrition challenges hindering smooth operations of the refineries. It commended the efforts of the government through the Nigerian National Petroleum Corporation, NNPC, at ensuring adequacy and consistent supply of Premium Motor Spirit, PMS, across the country. PENGASSAN's membership is organised among senior and middle management staff in temporar y and regular employment in Nigeria’s oil and gas sector, thereby marking it out as a leading advocate and stakeholder in policy formulations that affects its over 10,000 members on workplace-related issues.
NIMASA pledges to redouble efforts at repositioning maritime sector
Freight
VINCENT TORITSEJU
statement signed by its President Francis Olabode Johnson and General Secretary Lumumba Okugbawa, advised the government to initiate a more workable and sustainable intervention by incorporating more investors into local refining. P E N G A S SA N u r g e d t h e government to immediately revoke the licenses issued to non-practicing companies and individuals for the building of private refineries, adding that the licenses should be re-issued to operators with technical and financial capabilities. The oil industry workers' union maintained that the promise by the government to establish modular refineries be vigorously pursued, as it frowned at what it described as conflicting pronouncements
ort Harcourt -- An environmentalist has raised the alar m over continued environmental pollution in the Niger Delta, especially in Rivers State, resulting from oil exploration and production activities. A former president of the Nigerian Environmental Society, Engr. Olu WaiOgosu, said pollution in the state and the entire Niger Delta region, has reached a crisis point, while blaming the disappearance of fresh
water resources in the state on oil pollution. Wa i - O g o s u , speaking at an event in Port Harcourt, lamented that the ecosystem of the state as well as its flora and fauna, which he described as fragile, have been devastated by oil exploration and production.
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