All Posts in "Day: April 7, 2021"

Rainy Season:Nigerians To Enjoy More Power Supply.

Finance Houses Association of Nigeria - FINANCIAL DERIVATIVES Co. Ltd
  The Financial Derivatives Company (FDC) has predicted increased power supply in the country on account of the impending rainy season which would jerk up the water level at the hydro power plants in the country.
In its report, the company said the development would t would boost generation during the period.
According to projections by the Financial Derivatives Company (FDC), gas shortages could, however, constrain increased supply as gas fired thermal power plants account for approximately 70 percent of total power generation.
“The rainy season has commenced and we expect water constraints to decline significantly and a gradual pickup in hydropower. This is expected to boost power output in the coming weeks.
“However, gas shortages will remain the principal challenge as gas fired thermal power plants account for approximately 70 percent of total power generation,” the research and financial advisory firm stated.
It noted that with water constraints falling, an increase in hydropower generation would increase available power supply and reduce the demand for alternative energy like diesel or fuel-powered generators.
Online Editor by — April 7, 2021 in Power 0
NNPC Signs  $1.5Billion Contract For Rehabilitation Of PH Refinery,Sees Hope

 The Nigerian National Petroleum Corporation (NNPC),has  signed  Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the rehabilitation of the 210,000 barrels per day capacity Port Harcourt Refinery in Alesa-Eleme, Rivers State.
The rehabilitation project which has a completion timeline of  between 18 and 44 months under a three-phase arrangement was awarded to Milan based Tecnimont SpA at a lump sum contract price of US$1.5 billion, inclusive of VAT and other statutory payments.
Group Managing Director of the NNPC, Mallam Mele Kyari, described the rehabilitation project as a dream come true, noting that the project was in line with President Muhammadu Buhari’s promise to the Nigerian people to make the refineries work.
He explained that in arriving at the choice of Tecnimont SpA, the Corporation embarked on a transparent tender process which can withstand any forensic audit, noting that NNPC was ready and open to answer any question pertaining to the project.
He assured that the same transparent process has been emplaced for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021.
Managing Director of Port Harcourt Refining Company Limited, Engr. Ahmed Dikko, explained that Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon, while Phase 3 will focus on the start-up the refinery for operation, stressing that the entire work shall be delivered in 44 months from today.
Vice President, Sub-Saharan Africa Region of Tecnimont SpA, Davide Pelizzola, promised his company’s   readiness  to work with the NNPC to comply with the terms and obligations of the contract.
Online Editor by — April 7, 2021 in Oil&Gas 0
 Easter: Hutchlam Services Donates To Motherless Home

R: Ms. Semilore Areola and Mr. Mesahidu Elamah (M), Managing Partner, both Hutchlam Services Limited, presenting donations to Ms. Victoria Solomon(L), Matron, Living Fountain Orphanage, during the courtesy visit by Hutchlam Services Limited to commemorate the Easter celebration at the orphanage, recently in Lagos
Hutchlam Services Limited,  one of the leading providers of technical business solutions and services,  is spreading love and touching lives in the spirit of the Easter Yuletide.
 The  management of the  company  demonstrated this gesture when it paid a courtesy visit to Living Fountain Orphanage in Lekki, Lagos recently.
Speaking on this initiative founder, Living Fountain Orphanage Mrs. Bethy Obieri expressed her profound gratitude while noting that the donation would positively impact the children’s lives this Easter season.
She added:“We want to say a huge thank you to the management and team of Hutchlam Services Limited for their kind donations towards our children at Living Fountain Orphanage, their demonstration of love will make a huge difference in the upkeep of our children especially in this season of Easter celebrations. We thank them for their care and support for these little ones.”
Managing Partner Hutchlam Services Limited, Mr. Mesahidu Elamah explained  that one of the corporate social responsibility (CSR) initiatives of the company is to support orphaned children.
He said: “our children are the future of our great nation and we recognize at Hutchlam Services, the need to nurture and support the next generation and what better time than now in the spirit of the Easter festivities to reach out and share our love for these precious little children. From our entire staff and management, we want to wish them a happy Easter and it is our hope that our gifts will put a smile on their faces as they celebrate this Easter” Elamah said.
Speaking further on the initiative, Ms. Tonia Uchenna implored more corporate organizations and individuals to emulate Hutchlam Services by lending their support to orphanages.
He added: “I am pleased about this laudable initiative from Hutchlam Services, I want to implore other corporates and indeed individuals who have the capacity to support orphanages across the length and breadth of Nigeria to please do so, these little ones despite their circumstances deserve to enjoy the basic needs they require as children. Essential Items like food, clothing, toiletries groceries and so on will go a long way in ensuring that the children are provided with the comfort they need on a day-to-day basis. What Hutchlam has done today is truly noteworthy and we thank them from the bottom of our hearts”.
Online Editor by — April 7, 2021 in Brands&Marketing 0
Group Demands Executive Order For Construction Of  Refineries

Refining Gap Archives - Africa's premier report on the oil, gas and energy landscape. - Africa's premier report on the oil, gas and energy landscape.
Host Communities of Nigeria Producing Oil and Gas, HostCom, has advocated the need   presidential Executive Orders for oil companies to build Refineries and Gas Processing Plants as indemnities to host communities and producing states yet to establish Oil Producing Areas Development Commissions to do so.
The group made the demand through its   national president, High Chief Benjamin Style Tamanarebi and state chairmen after a recent retreat.
It also proposed additional modifications and clarifications on the Petroleum Industry Bill, PIB, which it wants the National Assembly to integrate.
On the first executive order and addendum, it stated: “We demand executive order as follows- Refineries and gas processing plants be built by operating companies as part of the social corporate responsibilities by the multinationals operating in the oil and gas producing states, and compensation to the producing communities which have suffered endless gas flaring and severe hazards of exploitation and negative exploratory impacts that have affected their environment, ecosystem, economy, cultural heritage and livelihood for over 60 years.” “The benefits are reduction of communal crisis, youth restiveness, incessant illegal bunkering, pipeline vandalism, high cost of petroleum products, and creation of employment, social advancement and sustainable development,” it said.
The statement added: “HostCom demands presidential executive order on the establishment of Oil Producing Areas Development Commission by producing states that are yet to establish it.” “Here again, the intervention of the Presidency through the Office of the Senior Special Assistant on Niger Delta Affairs and the Minister of Finance and National Planning is required to integrate the artisanal/modular refinery operations. “It would reduce to barest minimum crude oil theft, illegal bunkering, pipeline vandalism, kidnapping and all manner of anti-social vices to create a favourable working environment as it would increase employment, create wealth and development in the region and above all, boost the country’s economy and increase the nations Gross Domestic Product”
Online Editor by — April 7, 2021 in Niger Delta 0
Unemployment Looms As  Shoprite  Discloses Plans To Quit Nigeria 

Shoprite says plans to leave Nigeria - Businessday NG
Another rounds of unemployment looms in the country as South African Company, Shoprite Holdings Limited, says the sale of its Nigerian outlets was being concluded.
Over 70million Nigerians are unemployed,according to the current figure of the Nigerian Bureau of Statistics.
 The company  said it would shut down operations in the country by disposing a 100 per cent equity stake in its Nigerian retail supermarkets.
Shoprite stated in its financial report for December 2020 that  it was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
The management of the expects the transaction to be approved by the end of the 2021 financial year,it said in the financial statement.
 It added that the management was in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.
 The Chief Executive Officer, Pieter Engelbrecht said, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation.
 “From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.”
  “Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale,” the report stated.
Online Editor by — April 7, 2021 in News 0
 IMF Forecasts 1.0percent Growth for Nigeria

Nigeria's Economic Growth To Decline By -5.4 % In 2020–IMF
The International Monetary Fund (IMF) has projected a growth of 2.5 percent for Nigeria in 2021 from its earlier projection of 1.5 percent
The new growth projection is 1.0 percent higher than the multilateral institution’s 2021 forecast in January.
The Washington-based institution disclosed this on Tuesday during the 2021 Virtual Spring Meetings.
It also predicted  a growth of 3.4 percent for the Sub-Saharan Africa region in 2021, up 0.2 percent, from the previous forecast.
It also lifted its global economic growth forecast for 2021 to 6 percent — the strongest annual growth in more than four decades, up from the 5.2 percent it anticipated in October. The rebound comes after a 3.3 percent contraction in 2020.
“Global prospects remain highly uncertain one year into the pandemic. New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment. Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support,” IMF said in a statement.
“The outlook depends not just on the outcome of the battle between the virus and vaccines—it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis.
“Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility.
“High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalization, and the evolution of financial conditions.”
Online Editor by — April 7, 2021 in News 0
Stakeholders Seek $32bn Pension Funds To Boost Gas Infrastructure

Labour excited as PenCom steps up regulatory activities - Vanguard News
The National Pension Commission (PENCOM) has been urged to make  $32billion pension funds available  to natural gas investors as priority funding for critical gas infrastructure.
Panelists at the recent Nigerian Gas Association(NGA) multilogues,who gave the advice,explained that the development was necessary  to boost economic diversification and sustained industrialisation in the country.
They advised the  Central Bank of Nigeria (CBN) and other development banks to prioritise the gas industry, underpinned by concessional interest rates and guarantees for dollar-denominated transactions, to assure lender confidence in gas projects.
A communiqué issued at the end of the conference and signed by the association’s president,Ed Ubong quoted the panelists
as agreeing  that cost-reflective pricing mechanism, favourable fiscal regime, ease of repatriation of dividend/capital, stable exchange rate, and national industrial policy stability are critical conditions for spurring equity and loan financing in the local gas market.
They  revealed during the sessions that the Bank of Industry (BOI) has a $500 billion funding arrangement with the Bank of China (BOC) to finance import equipment for flare Gas capture, which requires the intending borrowers to advance about 25 per cent of their funding needs and import their equipment from China.
They added that  similar arrangements with the US Exim Bank are also available for players that want to import their flare capture equipment from the United States.
They emphasized the need for Nigeria to  enhance the fiscal and operational policies required to attract the right investments to realise the objectives and aspirations outlined within the nation’s gas programmes.
They  advised the  government to urgently resolve legacy debts, payment guarantees, and other commercial impediments, including power delivery bottlenecks in the gas-to-power programme.
The panelists called for the adjustment of royalties on gas supplied and consumed in the domestic environment to encourage more supplies that catalyse more significant development in the overall domestic economy.
 They demanded nondiscriminatory pricing mechanisms that offer suppliers equal opportunity for returns on investments and cost-reflective tariff structure across the Gas value chain.
“There was consensus that the Gas supply industry must be anchored on a willing-seller willing-buyer framework to unlock further investments in Gas exploration and delivery infrastructure. There should be a removal of price controls and concessional gas tariffs for sections of the market that are critical to achieving overall economic growth objectives,” they suggested .
 They agreed that gas based industries such as fertiliser and cement constitute key consumption centres that could grow the country’s domestic Gas consumption and unlock the economic growth required to take over 90 percent of Nigerians out of extreme poverty.
 The conference highlighted the need to create and develop regional infrastructure across the West African economies to deliver Gas supplies to markets through various marine, rail, road, and pipeline channels.
 They also called for improved regional collaboration on maritime security to arrest the Gulf of Guinea’s rising piracy incidents for safer virtual Gas shipping through marine transport.
Online Editor by — April 7, 2021 in Oil&Gas 0
Nigeria’s Oil,Gas Sector Will Survive  COVID-19-Adegbite

Inline image

Taofeek Adegbite, the Chief Executive Officer of Marine Platforms Limited, speaks on some industry issues and offers a way out

 

How has COVID-19 affected the oil and gas sector in Nigeria?

 

On a macro level, lower demand for hydrocarbons for fuelling cars and planes created a collapse in energy prices. In Nigeria, this led to the cancellation of contracts for service companies, the renegotiation of rates and the loss of jobs. Our company was the first in the country to witness a Covid-19 infection, and although this was an unpleasant situation, it made us react and develop strong safety and health procedures to tackle the problem. Our medical team was trained in disease control and infection, thanks to Lagos State Infectious Disease Control, and we were able to set up procedures that were later shared and used by other companies in the sector to mitigate the spread of infections in offshore locations.

 

The Covid-19 pandemic has been very challenging, with revenue down sharply and jobs suspended, but we have managed to keep afloat and continue operations – proving the resilience of the Nigerian oil and gas industry as a whole. The pandemic has not ended, and nor have its consequences, but I trust that the sector will come out stronger. We are definitely more prepared than before the pandemic to deal with this type of unexpected situation.

 

In what ways do you think  the Petroleum Industry Bill (PIB) to boost Nigeria’s oil and gas sector?

 

We are hopeful that the National Assembly will pass the PIB in the first or second quarter of 2021. With the bill now gaining traction, fiscal policy should become more encouraging for private investment that was being held back. We need to find the right balance between the government increasing its revenue and a tax environment that is attractive for private investment in the industry. Once this has been achieved, Nigeria will be well positioned to attract investment flows, especially in offshore and deepwater, which are areas where local service companies have the competitive advantages and modern capabilities to respond to the sector’s needs. This comes at a great time, as we know that the coming years are going to see a growing number of refineries across Africa.

 

What has been the impact of the Nigerian Oil and Gas Content Development (Local Content) Act on the upstream sector?

 

 First, it is important to clarify that local content requirements do not mean those foreign companies should not operate in Nigeria. The goal is the co-creation of value, in order to avoid foreign companies coming to Nigeria without leaving a positive footprint in terms of multiplier effects and job creation. In that sense, the Local Content Act has worked well and been positive for Nigeria’s oil and gas sector. It has contributed to the creation of an array of service companies that are 100% indigenous and have modern equipment and vessels, as well as high-tech capabilities and local human resources that have been trained to operate in the sector.

 

We are beginning to see foreign companies forge enduring partnerships in Nigeria, which is a positive step forwards for the country. Thanks to this, Nigerian service companies have been able to increase their presence as regional players, supporting the offshore industry in other African countries such as Ghana, Gabon, and Guinea, among others. We hope that by doing this, we will be able to replicate our success story by bringing expertise, and sharing best practices and capabilities with other African countries, thereby contributing to the development of their oil and gas offshore services.

Online Editor by — April 7, 2021 in Oil&Gas 0