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Oil & Energy

Firm Set To Comply With Local Content Requirements

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Ernst & Young Nigeria has said it is poised to seek urgent solutions to many challenges faced by players in the oil and gas industry while complying with the Nigerian content requirements as contained in the Nigerian Oil and Gas Industry Content Development Act.
The firm said in a statement on Friday that a roundtable breakfast session, tagged ‘The challenges of complying with the Nigerian content requirements and suggested solutions,’ was being organised to hold this week in Lagos.
It said the event would bring together industry experts and stakeholders for robust discussions on the compliance requirements of NOGICD Act with suggestions on strategies towards achieving full compliance by relevant companies.
A Partner and Head, Business Tax Services, Temitope Samagbeyi, said the event would complement the efforts of the Nigerian Content Development and Monitoring Board in expounding on the relevant sections of the NOGICD Act “as it pertains to the oil and gas sector of the Nigerian economy.”
The oil and gas sector leader at the firm said the NCDMB had made decent improvement in the Nigerian content within the oil and gas sector.
“In 2018, the NCDMB rolled out a 10-year strategic road map, which was designed to grow the aggregate Nigerian content in the sector to about 70 per cent (this is about 26 per cent in 2018) by the fourth quarter of 2027; generate 300,000 jobs within the sector and retain $14bn (this is $5bn as of 2018) in-country from the sector’s annual spend,” he added.
According to Samagbeyi, the breakfast session will highlight the challenges currently being faced while complying with the Nigerian Content requirements; discuss the implications of the 10-year strategic road map and how companies can take advantage of the opportunities that abound.

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Oil & Energy

Nigeria In Trouble As Oil Price Crashes Below $20

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Oil price fell below $20 a barrel yesterday, after the International Energy Agency (IEA) said demand would slump by a record this year despite a historic production cut deal.
Futures fell as much as 4.5% in New York to the lowest since 2002.
Oil demand will drop by over 9 million barrels a day this year, wiping out a decade of consumption growth, the IEA said, exhausting storage by mid-year.
While Saudi Arabia and other Gulf producers have pledged to cut supply starting next month, they have continued to flood the market in April.
Stockpiles are rising everywhere and weakening key physical market gauges. New York oil futures moved deeper into contango, signaling an expanding glut, while swap prices indicate North Sea cargoes are trading at bumper discounts.
Oil has lost about two-thirds of its value this year as countries extend their coronavirus lockdowns, death tolls mount around the world and unemployment explodes in America.
The International Monetary Fund (IMF) estimated the global economy will shrink 3% this year, a signal that energy demand may remain weak, while the IEA is warning that the worst may be yet to come.
“We may see further downward pressure on prices in coming days and weeks,” IEA Executive Director, Fatih Birol, said.
The IEA said consumption in April will fall by almost a third to the lowest level since 1995, and make this year the worst in the history of the oil market.
Despite OPEC+’s efforts to balance supply, global inventories will accumulate by 12 million barrels a day in the first half of the year and “overwhelm the logistics of the oil industry” in the coming weeks, it warned.
The massive OPEC+ deal to cut production starts next month. Until then the battle for market share persists with Abu Dhabi cutting its crude pricing for Asia. It follows a similar move by Saudi Arabia earlier in the week.

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Oil & Energy

NUPENG Lauds Members Over Petrol Supply Amid Lockdown

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The National Union of Petroleum and Natural Gas Workers (NUPENG), has commended its members on essential services for ensuring uninterrupted supply of petroleum products to every nooks and crannies of the country during the lockdown occasioned by the Coronavirus pandemic.
The union, however, decried the harassment and intimidation of oil company workers by security agents, calling on oil companies and the Department of Petroleum Resources (DPR) to provide adequate security passes for the workers.
NUPENG in a statement by its President and General Secretary, Prince Williams Akporeha and Olawale Afolabi, respectively, said petroleum tanker drivers, petrol station workers, petroleum products depot workers, oil and gas suppliers, and  liquefied petroleum gas retailers, had  made NUPENG and the  entire labour movement proud  as they moved through difficult and dangerous situations to ensure fuel supply to Nigerians.
The statement read in part: “The leadership of NUPENG has reviewed the roles of our members in the frontline in this critical period as Nigerians fight to contain the spread of the deadly and contagious coronavirus pandemic and we are proud to say our members on essential services have made us proud.
“In fact, not only have they made NUPENG and the United Labour Congress of Nigeria proud, our petroleum tanker drivers and others have made the entire labour movement proud by continuing to ensure uninterrupted supply of petroleum products to every nooks and crannies of the country despite the difficult and sometimes, dangerous situations as most states across the country are on lockdown.
“Once again, we appeal to state governments, security agents and Nigerians in general to cooperate with members of our unions who are risking their lives to provide essential services in the nation.”
NUPENG also appealed to corporate organisations to provide sanitisers and other safety kits to members of the union on essential services, to protect them and members of their families.
It stated: “We want to use the opportunity to call on oil companies and the DPR to provide adequate pass to our members on essential services to end the harassment and intimidation they are being subjected to by security agents across the country.”

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Oil & Energy

FG Releases N200bn To Improve Power Sector 

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Group Managing Director of Nigerian National Petroleum Cooperation (NNPC), Mr Mele Kyari, says the Federal Government has made payment of over N200 billion to the power sector towards improving electricity supply in the country.
Kyari disclosed this while speaking with newsmen in Abuja, yesterday, shortly after a closed door meeting between the NNPC team, Minister of Power, Mr Sale Mamman and Managing Director of Transmission Company of Nigeria (TCN), Mr Usman Mohammed.
“Actually the Federal Government has made payment of over N200 billion for power in the last 23 days and this will go a long way to ensure that issues around power supply are addressed.
“We will work as a team to ensure that all issues are settled”, he said.
Kyari said that the team was in the Ministry of Power to inform the minister that in the last one or two months and particularly during the COVID-19 period, NNPC has increased gas supply to the power sector.
According to him, there will be significant improvement in power generation in all Federal Government and associated power facilities.
“This also means that Nigerians will get better access to power during this lockdown period and going forward.
“There are issues around power supply process and we have discussed most of them and we are moving as a team to make sure that we resolve issues around payment and evacuation.
“We are very confident that this will get the desired result. We will visit some power plants tomorrow to make sure that we sort out any issue to ensure that Nigerians have access to better power,” he said.
He said that the minister was very clear on what was to be done to improve power supply.
“We will make sure this becomes transparent and obvious to all Nigerians,” he said.
On his part, TCN Managing Director, Mr Usman Mohammed said that the meeting was to ensure that there was constant supply of power as directed by President Muhammadu Buhari.
Mohammed said that the President has directed that there should be constant power supply to the people during the COVID-19 lockdown.
“This is why this meeting was conveyed by the Minister of Power to discuss supply of gas to the power plants.
“This is very important, before now, we have been discussing with NNPC, of course there is gas availability in the market but there are several power plants that don’t have gas and that is a big problem for us.
“With this meeting where the minister prevailed that NNPC should assist in suppling gas to the power plants, we believe that will have steady and sustainable power supply going forward especially during the COVID-19 lockdown, “ he said.

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