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Shell, FG Voice Doubts Over Forcados Operations

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More than seven months after it was shut down, the Forcados export terminal remains offline, with the operator, Shell Petroleum Development Company (SPDC) and the Federal Government, represented the Nigerian National Petroleum Corporation (NNPC), saying they are unsure when the facility near Warri, Delta State, will resume crude oil lifting to international markets.
It would be recalled that September 21, 2016, had marked exactly seven months that Shell declared force majeure on crude lifting for export from Forcados terminal.
The force majeure, a legal clause that allows it to stop shipments without breaching contracts, came a week after the Forcados export line was attacked by the Niger Delta Avengers.
During the attack, the militants blew up a subsea pipeline feeding the terminal, knocking out, at least, 250,000 barrels per day of the nation’s oil exports.
Government officials had said the terminal was expected to resume in May, but that did not happen, as the reopening was pushed back to June, and again, to September.
But while responding to inquiries by newsmen, Corporate Media Relations Manager, Shell Nigeria, Mr. Precious Okolobo, said he could not tell when the terminal would come back on stream.
According to him, “The repairs are in progress; so, we cannot give precise timing on when the pipeline will be reopened”.
Similarly, the Nigerian National Petroleum Corporation (NNPC), in its latest monthly report, said its subsidiary, the Nigerian Petroleum Development Company (NPDC), lost over N27billion in July due to the force majeure declared by the SPDC as a result of the vandalised 48-inch Forcados export line.
The representative of the Federal Government in the joint venture operations of the oil and gas business, did not also state when the Forcados export terminal will resume crude oil lifting.
The NNPC, rather, said crude oil production in the country had in May plummeted to 1.69 million bpd following uptick in pipeline vandalism in the volatile Niger Delta region.
The NNPC said, “Subsisting force majeure at the Forcados terminal means that about 380,000bopd remain shut-in. Cargoes were deferred until repairs are completed.
“Also, the nation has lost over 1,500 megawatts to the damage at Forcados, which accounted for 40-50 per cent of gas production,” the NNPC added.
It is still uncertain when the Forcados pipeline will come back on stream as repairs have yet to be concluded.
According to the Head of Energy Research, Ecobank Capital, Mr. Dolapo Oni, “The terminal was supposed to come online last week; I don’t know why that announcement has not been made yet.
“We can’t afford another one month of having it offline, especially considering our foreign exchange position. The naira is now down to N480 to a dollar,” he added.
According to Bloomberg’s ship-tracking data, no tankers have loaded from the terminal so far since mid-February, 2016.
It revealed that eight cargoes are scheduled to load in October, with a further six planned for November.
Seven Energy, an integrated gas company in South-East Nigeria with upstream oil and gas interests in the region, said it lifted no oil from the Mining Leases 4, 38 and 41 during the first half of the year due to the shutdown of the Forcados terminal and declaration of force majeure by Shell from mid-February.
The International Energy Agency had in April estimated that Nigeria could lose up to $1billion in revenue by May, when repairs of the Forcados terminal were expected to be completed.
The IEA had said, “The Forcados terminal in Delta State, one of Nigeria’s biggest terminals, was scheduled to load 250,000 barrels of crude per day. At $40 per barrel, Nigeria could stand to lose an estimated $1billion between February, when the force majeure was declared, and May, when repairs are expected to be completed.”
It would be recalled that the Niger Delta Avengers, had claimed responsibility for Forcados pipeline attack, and many other attacks in the region.
Other groups have also claimed responsibility for some attacks, including Niger Delta Greenland Justice Mandate (NDGJM).
The groups have primarily targeted pipelines belonging to oil majors Shell, ENI and Chevron, the NNPC itself, and the Nigerian company, Aiteo.
Exports of multiple crude oil grades, including Bonny Light, Forcados, Brass River and Qua Iboe have been under periods of force majeure since the beginning of this year, meaning that companies are released from export obligations as a result of circumstances beyond their control.
Former group managing directors of the NNPC had, at the end of a recent meeting with the current GMD, Dr. Maikanti Baru, and the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said the attacks were putting the nation’s oil industry at risk of total collapse.

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FG Targets Production Of Locally Made Vehicles By Dec

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The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, has affirmed that Nigeria now has the capacity and materials to manufacture Made-In-Nigeria cars for local use and export.
With the enabling environment being provided by the government, she said manufacturers should be held responsible if the cars are not rolling out by December 2024.
Currently, Nigeria produces less than 10 per cent of the vehicles used in the country.
Last year, Nigeria’s vehicle assembling industry, estimated to be worth around N302billion, tanked to a new low due to increasing production costs and weakened demand for locally assembled automobiles.
According to the Manufacturers CEOs Confidence Index, activities of motor vehicles and miscellaneous assembly deteriorated further below the benchmark (50 points) from 48.6 to 46.7 points.
But speaking at the Automotive Component Manufacturers meeting in Abuja, she noted that the automobile industry is faced with both challenges and opportunities.
A statement issued last Friday by the Director of Information and Public Relations, Adebayo Thomas, said, “In a significant move aimed at fostering sustainable growth and development in Nigeria’s automobile industry, the Federal Government has issued a clarion call to all stakeholders, including manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem.
“The call comes as part of a broader strategy to enhance the sector’s contribution to the nation’s economy.”
Encouraging the stakeholders to key into the Nigerian Automotive Development Policy, the Minister said, “As far as we are concerned, the auto industry is now set to go.
“We are counting on all stakeholders to make that happen. If we do not produce made-in-Nigeria cars before the end of this year (December), it will be your fault, because I am sitting down here giving you all the assurances that this administration has created the enabling environment to make sure that the auto policy kicks off.”
Anite emphasised the need for collaboration among manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem, saying by working together, they can address challenges, streamline processes, and drive innovation.
She also urged stakeholders to maintain high-quality standards across the board, including vehicle manufacturing, safety features, emissions control, and after-sales services.
Stringent adherence to quality, she said, will boost consumer confidence and attract investment.
The minister assured all that the government would continue to encourage increased investment in research and development, adding that, innovations in electric vehicles, fuel efficiency, and alternative energy sources are critical for long-term sustainability.
On local content, she also emphasised the importance of promoting local content by sourcing materials and components locally.
By doing this, she said, the sector can create jobs, reduce import dependency, and contribute to economic diversification
In his introductory comments, the ministry’s Permanent Secretary, Nura Rimi, emphasised the significance of team action and shared vision as outlined in the Nigerian Automotive Development Policy.
He also urged stakeholders that the country “will overcome obstacles and unleash the full potential of Nigeria’s automotive component sector.”
He encouraged NADDC and other stakeholders to use the chance to form alliances, explore new areas of collaboration, and devise ways to catapult the automotive components manufacturing industry to new heights of success.
The statement added, “The government’s charge underscores the pivotal role stakeholders play in shaping its trajectory. Their commitment to sustainable practices will drive Nigeria’s automotive sector towards a brighter and more prosperous future.
“Environmental Responsibility: Stakeholders are reminded of their environmental responsibilities. Sustainable practices, recycling, and eco-friendly manufacturing processes are essential for a greener future.”

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Waive Tax On Electronic Imports, Women Engineers Appeal To Tinubu

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The Association of Professional Women Engineers of Nigeria (APWEN), Lagos Chapter, has called on President Bola Tinubu to exempt the importation of electronic components from taxation for inventive engineers.
Chairman of APWEN, Ms Atinuke Owolabi, said this a in statement yesterday in Lagos, in commenration of the 2024 World Creativity and Innovation Day, with the theme: “Step Out and Innovate”.
The Tide source reports that World Creativity and Innovation Day is a global UN Day, celebrated on April 21, to raise awareness about the importance of creativity and innovation in problem solving.
This is with respect to advancing the United Nations’ sustainable development goals, also known as the global goal.
Owolabi explained that such a measure would significantly enhance technological progress, support local innovators, and elevate Nigeria as a leading hub for innovation globally.
She stated that in a world marked by dynamic challenges and unprecedented opportunities, creativity and innovation stand as the driving forces behind progress and transformation.
According to her, women engineers recognise the critical role that innovation plays in shaping our societies and driving sustainable development.
”On this occasion, we affirm our commitment to fostering a culture of creativity and innovation within our organisation and the broader engineering community.
”Together, let us step out, innovate, and inspire the next generation of women engineers to reach even greater heights of achievement and impact.
”We believe that by stepping out of our comfort zones and embracing new ideas, technologies, and approaches, we can unlock innovative solutions to the complex challenges facing our world today,” she said.
According to her, the theme: ‘step out and innovate’, serves as a call to action for women engineers everywhere to break barriers, challenge conventions.
She noted that it would also pioneer groundbreaking solutions that would propel them toward a brighter and more sustainable future.
Owolabi disclosed that in celebration of the World Creativity Day, APWEN Lagos had inaugurated an artificial intelligence club tailored for female engineering students and young engineers.
She said that the proactive initiative aimed to inspire and equip young engineers with cutting-edge technological insights.
Th chairman said, “Additionally, we already have a 200-capacity hall to set up a resource, technology, and innovation hub to empower women and girls in engineering.
”This endeavour serves as a catalyst for encouraging aspiring female engineers to embrace innovation and stay abreast of emerging trends in the field.
”APWEN Lagos stands united in its dedication to promoting diversity, inclusivity, and excellence in engineering.
“We encourage all female engineers to seize this opportunity to unleash their creativity, explore new frontiers, and make an indelible mark on the world.”

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Pan-Igbo Group Hails Dangote Group For Reducing Diesel Price

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A pan-Igbo group, Ndigbo Unity Forum (NUF), has commended the Chairman of the Dangote Group, Alhaji Aliko Dangote, and his management for reducing the price of diesel from N1,600 to N,1000 per litre.
The Tide’s source reports that diesel is the major fuel used by heavy duty vehicles and generating sets to transport goods as well as run industries across the country.
The President of NUF, Mr Augustine Chukwudum, told The Tide’s source in Enugu, yesterday, that Dangote’s timely response to suffering masses of Nigerians, going through hell to get a meal a day, “is highly commendable”.
According to Chukwudum, Nigerians need to appreciate the patriotism of Dangote since what he has done will go a long way in reducing prices of goods, especially food stuff which has gone out of the reach of the poor.
He called on Nigerians, who wish and pray always for the betterment of the country, to appreciate and thank God for answering their prayer through Dangote’s move.
“It is clear that if Dangote Refinery starts fully and gets all the crude oil needed from Nigeria, the prices of petrol, kerosene and diesel will further reduce.
“We commend President Bola Tinubu for being a listening President and supporting the Dangote Group on our crude oil needs.
“We appeal to Tinubu to encourage Dangote by providing the company with crude oil at a reduced rate as we have been demanding,” he said.
Chukwudum said that this move and subsequent further reduction, would bring industries in comatose back to life, jobs created for unemployed youths and reduction in crime as well.
“We call on governors of oil-producing Anambra, Imo and Abia States to bring investors, who shall build refineries in each of the states to refine thousands of barrels of crude in commercial quantities,” he said.

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