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Hydrocarbons Discourse

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Proven Reserves Politics

This is the politics underlining quoted proven reserves by countries, particularly those in the OPEC platform. The intention mostly is to exaggerate the volume of hydrocarbons reserves available to the country in an effort to attract political and economic influence in world affairs. This has always worked for nations with the political and economic power to tilt issues towards their direction in order to achieve an objective.  

  Examples of such underlining political intrigues suffice: Sadad al-Huseini, former head of exploration and production at Saudi Aramco, estimates 300 Gbbl (48×10^9 m3) of the world’s 1,200 Gbbl (190×10^9 m3) of proved reserves should be recategorized as speculative resources, though he did not specify which countries had inflated their reserves. Dr. Ali Samsam Bakhtiari, a former senior expert of the National Iranian Oil Company, has estimated that Iran, Iraq, Kuwait, Saudi Arabia and the United Arab Emirates have overstated reserves by a combined 320–390bn barrels. “As for Iran, the usually accepted official 132 billion barrels (2.10×1010 m3) is almost one hundred billion over any realistic assay,” he said. Petroleum Intelligence Weekly reported that official confidential Kuwaiti documents estimate reserves of Kuwait were only 48 billion barrels (7.6×10^9 m3), of which half were proven and half were possible. The combined value of proven and possible is half of the official public estimate of proven reserves.

  Prospective resources

  Arctic Prospective Resources

  A 2008 United States Geological Survey estimates that areas north of the Arctic Circle have 90 billion barrels (1.4×1010 m3) of undiscovered, technically recoverable oil (and 44 billion barrels (7.0×109 m3) of natural gas liquids) in 25 geologically defined areas thought to have potential for petroleum. This represents 13% of the expected undiscovered oil in the world. Of the estimated totals, more than half of the undiscovered oil resources were estimated to occur in just three geologic provinces – Arctic Alaska, Amerasia Basin, and East Greenland Rift Basins. More than 70% of the mean undiscovered oil resources were estimated to occur in five provinces: Arctic Alaska, Amerasia Basin, East Greenland Rift Basins, East Barents Basins, and West Greenland–East Canada. It was further estimated that approximately 84% of the oil and gas would occur offshore. The USGS did not consider economic factors such as the effects of permanent sea ice or oceanic water depth in its assessment of undiscovered oil and gas resources. This assessment was lower than a 2000 survey, which had included lands south of the Arctic Circle.

  Miscellaneous Prospective Resources

  The Exclusive Economic Zone is a delineated offshore area, mostly to the west and north of Cuba which under international agreements is owned by Cuba. This 112,000 square kilometer zone has been divided into 59 exploration blocks. A 2004 joint partnership between a Spanish oil company and Cuba’s state oil company (CUPET) estimated Cuba’s off-shore reserves to be able to ultimately produce between 4.6 and 9.3 billion barrels of crude oil. The US Geological Survey (USGS) estimates that Cuba has resources up to 9 billion barrels (1.4×109 m3) of oil. In October 2008, the Cuban government announced that it had discovered oil basins which would double its total oil resources to 20 billion barrels (3.2×109 m3). Note that consistent with the definitions of Reserves and Resources as given in the above sections, at this stage (June 2009), given no commercial discoveries to date, all recoverable oil estimates in the Exclusive Economic Zone (EEZ) are Prospective Resources estimates and not Reserves estimates.

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Oil Marketers Urge Buhari To Crash Diesel Price

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Petroleum marketers under the platform of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) rose from their 2nd National Executive Council (NEC) meeting last week, within a plea to President Muhammadu Buhari to direct the Central Bank of Nigeria (CBN) to make dollars available at official rate to oil marketers.
This, they said, will enable them import diesel, end petrol scarcity, and ultimately save the Nigerian economy from sinking, saying that dollar support should be available till Dangote Refinery comes on stream later in the year.
The association, among others, urged the National Assembly to immediately enact a Bill for the establishment of Energy Bank for easy transaction in petroleum products in the sector.
National President of the Association, Mr Benneth Korie, who briefed the media after the NEC meeting in Abuja, noted that the bulk of the operational challenge peppering marketers and depot owners spring from expensive diesel which hovers around N850/litre.
While thanking President Muhammadu Buhari for approving a higher bridging cost payment to transporters, Korie said the operators’ challenges were far from over as oil marketers and depot owners spend about N20 million weekly on diesel to power their operations, thus eroding their profits.
The association urges the National Assembly to review the policy of taxation as it affects petroleum products supply and distribution chain.

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Senate To Honour Brave Petrol Tanker Driver 

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The Senate has resolved to honour Ejiro Otarigho, the brave tanker driver who drove a burning tanker from danger zone to avert a tragic fire incident in Agbarho, Delta State.
The Senate has also recommended Ejiro to President Muhammadu Buhari for National Honours.
This followed a motion moved by the Deputy President of the Senate, Senator Ovie Omo-Agege, and co-sponsored by Senator James Manager and Senator Peter Nwaoboshi, at plenary.
It would be recalled that in a rare act of bravery, Ejiro had last week driven a burning tanker from danger zone to avert what could have been a tragic fire incident in Agbarho, Delta State.
The incident happened last Friday when Ejiro drove the burning truck for 25 minutes from a densely populated area to Agbarho River where the tanker was completely razed in the inferno. The act was captured by onlookers and had gone viral.
Rising under Order 45 and 52 of the Senate Standing Order 2021 (as amended), Senator Omo-Agege stressed that but for Ejiro’s courage, a major fire disaster which would have claimed several lives and property could have happened in his senatorial district.
The Delta Central lawmaker noted that Ejiro’s “extraordinary display of courage, reflex application of special driving skills, and huge risk to his own life, prevented a huge national tragedy and catastrophe by driving a burning tanker loaded with inflammable petroleum products from residential areas to safety so that thousands of our people may not die in an inferno that would also have consumed so much property in Agbarho, Delta State on Friday, June 10, 2022”.
The driver’s audacious act of heroism, he stressed, has saved the nation from national tragedy and mourning.
Accordingly, the Senate resolved to “invite Mr. Ejiro Otarigho to the Chamber of the Senate for public commendation by the President of the Senate, Senator Ibrahim Lawan.
“Recommend Mr. Ejiro Otarigho to His Excellency, President Muhammadu Buhari, GCFR, President and Commander-in-Chief of the Armed Forces of Nigeria, for a befitting National Honour as Mr. President may deem fit for his extraordinary act of bravery, courage and skill that prevented the loss of human lives and property on a massive scale”.
President of the Senate, Senator Ahmad Lawan, who presided over plenary, hailed the driver for risking his life to drive the burning truck out of residential area to save lives.

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Court Adjourns Worker Vs NLNG Matter To Oct

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The National Industrial Court sitting in Port Harcourt, on Thursday, adjourned the matter on the defamation of character and unlawful termination of employment between a contract worker, Tambari Michael, and the Nigeria LNG Limited to October 25, 2022.
The judge, Justice Nelson Ogbuanya, said the adjournment was to enable the new counsel to the claimant, Mecha Mecha Kalu, to study the case before continuing.
Recall that the clamnant, Tambari Michael, a former contract staff of NLNG, had approached the court in 2019 to challenge the termination of his appointment by the Supervisor of NLNG’s Logistics, praying the court to declare the termination of his job as illegal and unlawful third party interference.
Michael in the suit number NICN/ PH/43/2019 claimed that displaying his name and image amongst persons accused to have committed criminal offensCes was defamatory, which, according to him, runs contrary to Section 4 of the NLNG Code of Conduct bordering on harassment.
Defendants in the suit are Nigeria LNG Limited, AUGJ Services Nigeria Ltd (the contracting firm) and Abimbola Ibukunle, the company’s Logistics Supervisor when the services of the claimant were terminated.
Other demands stated by the Claimant in the suit are “Damages be awarded to claimant against 1st defendant (Nigeria LNG Limited) and 3rd defendant (Mrs. Abimbola Ibikunle) for defamatory publication made.
“Damages also to be awarded against 1st and 3rd defendants for unlawful interference upon Mr Tambari Michael’s employment with AUGJ Services (2nd defendant).”
When the matter was called in the court on Thursday, counsel to the claimant, Mecha Mecha Kalu, who appeared in court for the first time, informed the court that he had just taken over the matter as counsel and solicitor to the claimant.
Speaking to newsmen after the court session, counsel to the claimant, Mecha Mecha Kalu expressed confidence that his client will get justice in the court but, counsel to the defendant declined comment.

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