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Stakeholders Seek Adjustment In Subsidy Payment To Marketers

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Stakeholders in the oil and
gas industry have advised the Federal Government to adjust payment of subsidy to marketers, following the crash of crude oil prices at the international market.
Former Publicity Relations Officer, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Seyi Gambo, said there was need for Federal Government to re-adjust payment of subsidy to marketers.
Gambo expressed shock over the provision of N291 billion as fuel subsidy in the 2015 budget, in spite of the persistent decline in crude oil price at the international market.
According to him, subsidy on Premium Motor Spirit (PMS), otherwise called petrol, has dropped to 90k per litre.
“Household Kerosene (HHK), otherwise called kerosene, has dropped to N64.71k per litre at the same date, according to Petroleum Product Pricing Regulatory Agency (PPPRA).
“The expected open market price was N97.90k for petrol while kerosene was N114.71 per litre.”
Gambo said that contrary to other opinions, the low crude oil prices made it cheaper for global refineries to procure andprocess crude oil into various petroleum products.
He said that the scenario had made it imperative for government agencies in the oil and gas sector to reflect the current realities by adjusting pump prices of petroleum products.
The former PENGASSAN leader said that reversal of petroleum products pump prices would further enhance government policy toward ameliorating the suffering of Nigerian masses.
Gambo said that the devaluation of the nation’s currency had also weakened the purchasing power of Nigerians.
Managing Partner, Magnum Oil and Gas Ltd., Mr Austin Bello, said that government should reduce the price of petroleum products, as the prices of crude oil continued to crash at the global oil market.
Bello said that oil price has dropped in the international market from  $115 in June 2014 to around $56 or 48 per cent decline.
“The crude oil revenue on which the country’s economy depends has fallen sharply, threatening the capacity of the government to fund the 2015 budget.
“Since the oil price began its free fall, the Federal Government has revised the 2015 budget benchmark three times.
“Yet the falling price has already surpassed government’s projection in the latest revised budget, which is predicated on  $65 per barrel.
“But when the price of oil dropped ahead of the passage of the budget, the government reduced the benchmark from $78 dollars to $73 dollars per barrel, with an exchange rate of N162 to a dollar and a total budget figure of N4.7 trillion.
“With further fall in the oil prices, the benchmark was further reduced to 65 dollars per barrel, with an exchange rate of N165 to a dollar and a total budget figure of N4.357 trillion for the 2015 fiscal year.

NSCDC, NGOs and SPDC officials on road show to sensitise Nigerians on dangers of encroachment on gas pipeline right of way

NSCDC, NGOs and SPDC officials on road show to sensitise Nigerians on dangers of encroachment on gas pipeline right of way

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Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

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Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended

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Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

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Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.

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Administrator Assures Community Of Improved Power Supply

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The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.

By: King Onunwor

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