Oil & Energy
Oil Exports: Nigeria Cuts Selling Prices To Lure Buyers
Nigeria has cut its official selling prices of a basket of May-loading crude oil grades in a bid to attract buyers.
The nation’s crude oil has had a difficult time clearing in recent weeks, as offer levels were too high to attract buying interest from European refineries.
Nigeria released its official selling prices for May, showing a decrease for major grades, including Bonny Light and Qua Iboe, Forcados and Escravos, by around 20 to 25 cents compared with April, according to Reuters.
Buyers had been largely reluctant to pick up cargoes of May-loading cargoes offered at and above a premium of $2 compared to dated Brent.
One trader was quoted as saying that backwardation and low refining margins had reduced the appeal of Nigerian crude for European buyers.
Turkey’s Tupras has issued a tender for three cargoes of Nigerian for loading between May 25 and June 10 but had bought at least one, a cargo of Nigerian Jones Creek.
Uruguay’s state-owned oil company, ANCAP, has issued a buy tender for July 1-6 arrival.
Angolan crude was already selling rapidly and at sky-high prices after the preliminary loading programme for June showed the lowest volumes in over a decade.
Angolan crude oil exports are set to plunge to 38 cargoes due to a shutdown for maintenance at the Saturno field during June and issues affecting the Girassol stream.
The state oil company, Sonangol, which holds 15 of the June cargoes, was said to have almost sold out its spot cargoes, in an extremely quick turnaround relative to previous months.
Demand for the scarcer supply sent differentials far higher, as U.S. sanctions on comparable Iranian and Venezuelan crudes added to the relative scarcity of Angolan to widen a gap in the market for heavy sweet crude.
Sonangol’s three cargoes of Dalia were heard to have sold out at record highs around a $2 premium compared with dated Brent and June’s sole cargo of Gimboa for around the same.
The state oil company’s only remaining cargo was of Saturno, which is being indicated at $1.80.
As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.
It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.
“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.
“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.
“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.
AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.
The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.
“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.
“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.
Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.
“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.
Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.
“This represents one of the most troubling cases of economic sabotage our nation has ever faced.
“We have made far-reaching recommendations to end this long-standing menace.
“There is need for strict enforcement of international crude oil measurement standards at all production and export points.
He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.
The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.
He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.
“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.
“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.