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Coronavirus: 50 Nigerian Crude Oil Cargoes Stranded, Says NNPC
As a result of the Coronavirus pandemic, Nigeria has about 50 cargoes of crude oil that have not found a landing and this implies that there are no off-takers for them for now due to the drop in demand, the Nigerian National Petroleum Corporation (NNPC) declared, yesterday.
It also stated that over 12 liquefied natural gas cargoes were stranded in the global market, a development that had never happened before.
The Group Managing Director, NNPC, Mele Kyari, who disclosed this at a round table discussion in Abuja, further stated that for Nigeria to become competitive in the global crude oil market it must strive to reduce its cost of producing crude oil.
Kyari said, “Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is an abrupt collapse in demand associated with the outbreak of Coronavirus”.
He said that in the face of the Coronavirus global pandemic, countries like Saudi Arabia had given a discount of $8 and Iraq gave $5 to their off-takers in some locations.
This, he said, meant that when crude oil sold at $30 per barrel, countries like Saudi Arabia were selling at $22 per barrel and Iraq sold their crude at $25 per barrel.
He said NNPC was strategically putting in place measures that would alleviate the cost of crude oil production in Nigeria.
The corporation’s boss said a reduced cost of production would create a market for Nigeria’s crude and make Nigeria a choice destination for foreign direct investment.
Kyari stated that at the moment the cost of crude oil production in the country was within the range of $15 to $17 per barrel.
He noted that for leaders in the industry, such as Saudi Arabia, the cost of production was between $4 and $5 per barrel.
Kyari explained that due to the uncertainties of the global crude oil market, countries that produced at the cheapest price would remain in the market, while jurisdictions with a high cost of crude oil production would not be able to cope with the competing prices.
He further stated that NNPC was working round the clock to increase the country’s daily production to three million barrels per day and shore up the crude oil reserves to 40 billion barrels.
Kyari called on government at all levels, captains of industries and the organised private sector to brace for the new low regime of global crude oil prices, adding that realistic estimates must be made to reflect the current realities of the crude oil market.
The Chief of Army Staff (COAS), Lt.-Gen. Waidi Shaibu, has tasked troops of Operation SAVANNAH SHIELD to dominate the battlespace and intensify offensive operations against kidnappers, bandits and other criminal elements in the North Central region.
Shaibu gave the directive yesterday during his maiden operational visit to the Headquarters, Joint Task Force North Central (JTF-NC), at Sobi Barracks, Ilorin.
This is contained in a statement by the Acting Director, Army Public Relations, Col. Appolonia Anele, in Abuja, yesterday.
Shaibu said the Nigerian Army would remain resolute in its constitutional responsibility of safeguarding lives and property, stressing that troops must sustain pressure to decisively deny criminal elements freedom of action.
He assured personnel of continued deployment of combat enablers and operational resources to enhance clearance operations and dismantle criminal hideouts across Kwara and Niger states.
The COAS reaffirmed his commitment to troop welfare, noting that improved welfare remained critical to sustaining morale, operational effectiveness and combat readiness.
He urged the troops to remain disciplined, professional and loyal to the Constitution and the democratically elected government.
Earlier, the Theatre Commander, JTF-NC Operation SAVANNAH SHIELD, Maj.-Gen. Yakubu Yahaya, commended the COAS for his strategic leadership and support.
Yahaya assured that troops would remain committed and steadfast in restoring peace and stability in the region.
The Nigerian Navy says it is expanding training and infrastructure to address emerging security threats and strengthen operational efficiency across formations and units nationwide.
The Chief of Naval Staff, Vice Adm. Idi Abbas, spoke during the inauguration of projects at the Nigerian Navy Basic Training School (NNBTS) in Onne, Rivers as part of activities marking the Nigerian Navy’s 70th anniversary.
Abbas, represented by the Flag Officer Commanding, Naval Training Command (NAVTRAC), Rear Adm. Ebiobowei Zipele, said the projects reflected significant progress made by the navy since its establishment in 1956 from the British Royal Navy.
“Training and infrastructure have improved significantly to meet contemporary security challenges and fulfil the navy’s constitutional responsibilities.”
According to him, the anniversary provides the navy an opportunity to reflect on its achievements and contributions over the past seven decades.
Projects inaugurated included a remodelled female trainees’ hostel accommodating more than 500 occupants and an expanded golf course upgraded from one to nine holes.
Others were the NNBTS fuel dump, Chief Boatswain’s Mate House, renovated pharmacy department and a new theatre block at the Naval Medical Centre, Onne.
Abbas described the new theatre as a major milestone for the navy’s medical services.
“Previously, injured personnel requiring surgeries were referred outside the facility.
“With this theatre, surgeries can now be conducted within the base.’’
He added that a 30KVA inverter had also been installed to guarantee uninterrupted electricity supply at the training school.
The naval chief assured officers, ratings and trainees that the navy leadership remained committed to their welfare and wellbeing.
“These infrastructure upgrades show the commitment of the Chief of Naval Staff to addressing operational and welfare challenges promptly,” he said.
In addition, NAVTRAC distributed educational materials to pupils of Community Primary Schools One and Two, Ogale, in Ebubu-Eleme area of Rivers.
Items distributed included exercise books, school bags and other writing materials as part of the navy’s civil-military engagement initiative.
Zipele said the outreach was designed to strengthen relations between the navy and host communities while supporting children’s education.
“Education remains critical to national growth and youth empowerment. Some of these pupils may eventually serve in the Nigerian Navy,” he said.
He noted that the initiative demonstrated the navy’s commitment to educational development, peace, security and sustainable community relations.
Zipele urged the pupils to remain disciplined, focused and committed to their studies while embracing patriotism, integrity and hard work.
He thanked the Ebubu community for its continued support for the naval training command headquarters and the navy.
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