Oil & Energy

Oil Market: Nigeria’s Crude Output Drops

Published

5 years ago

March 12, 2021

The Organisation of Petroleum Exporting Countries (OPEC), has put Nigeria’s February, 2021, oil output at 1.4 million barrels per day, mb/d, excluding Condensate.
This, according to the March Oil Market Report, yesterday, showed a drop of 17.6 per cent when compared to the 1.7 mb/d produced in the corresponding period of 2020.
The cut in output is mainly driven by the quest of Nigeria to comply with the OPEC oil reduction directive, targeted at achieving stability in the global market.
Nevertheless, at the current price, Nigeria would not be under pressure to raise adequate funds for the execution of its 2021 budget, which was based on $40 per barrel, and 1.8 mb/d.
However, the report stated, “For 2021, world oil demand is expected at 5.9 mb/d, to stand at 96.3 mb/d. Oil requirements in the first half (1H21) are adjusted lower, mainly due to extended measures to control Covid-19 in many key parts of Europe. In addition, elevated unemployment rates in the US slowed the recovery process.
“In contrast, oil demand in the second half (2H21) is adjusted higher, reflecting expectations for a stronger economic recovery with the positive impact of vaccination rollouts.
“In regional terms, OECD oil demand is expected to increase by 2.6 mb/d in 2021 to stand at 44.6 mb/d, while non-OECD demand is seen rising by 3.3 mb/d to average 51.6 mb/d.”
Meanwhile, the price of Brent and Nigeria’s Bonny Light, which had risen to $70 per barrel, because of a recent drone attack on Saudi Arabia’s oil facility, has dropped to $69.31 and $66.03 per barrel respectively.
However, OPEC expects that the global oil demand would rise from 93.22million barrels per day, mb/d to 97.94 mb/d, thus recording an increase of 5.06 per cent between the first and fourth quarter of 2021, as many countries continue to tackle the Coronavirus pandemic.
It stated that Quarter on Quarter, QoQ, the global oil demand would stand at 93.22 mb/d in the first quarter (January – March) of 2021, showing an increase of 0.13 per cent compared to 93.10 mb/d recorded in the corresponding period of 2020.
It further showed that QoQ, it would rise to 95.92 mb/d in the second quarter (April-June) of 2021, indicating an increase of 14.4 per cent, compared to 83.82 mb/d recorded in the corresponding period of 2020.
Also, it showed that the demand would hit 97.02 mb/d in the third quarter (July-September) of 2021, showing an increase of 6.4 per cent, compared to 91.18 mb/d, recorded in the corresponding period of 2020.
The report also showed that the demand would further rise to 97.94 mb/d in the fourth quarter of 2021, indicating an increase of 4.3% compared to 93.89 mb/d recorded in the corresponding period of 2020.
The target or prediction is to rising from its crucial meeting recently, OPEC also stated, “The meeting emphasized the ongoing positive contributions of the Declaration of Cooperation (DoC) in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting on April 12, 2020 to adjust downwards overall crude oil production and subsequent decisions.
“The ministers noted, with gratitude, the significant voluntary extra supply reduction made by Saudi Arabia, which took effect on February 1, for two months, which supported the stability of the market.
“The ministers also commended Saudi Arabia for the extension of the additional voluntary adjustments of one mb/d for the month of April, 2021, exemplifying its leadership, and demonstrating its flexible and pre-emptive approach.
“The ministers approved a continuation of the production levels of March for the month of April, with the exception of Russia and Kazakhstan, which will be allowed to increase production by 130 and 20 thousand barrels per day respectively, due to continued seasonal consumption patterns.
“The meeting reviewed the monthly report prepared by the Joint Technical Committee (JTC), including the crude oil production data for the month of February.
“It welcomed the positive performance of participating countries. Overall conformity with the original decision was 103 per cent, reinforcing the trend of aggregate high conformity by participating countries.
“The Meeting noted that since the April, 2020 meeting, OPEC and non-OPEC countries had withheld 2.3bn barrels of oil by end of January, 2021, accelerating the oil market rebalancing.
“The meeting extended special thanks to Nigeria for achieving full conformity in January, 2021, and compensating its entire overproduced volumes.
“The ministers thanked Minister of State for Petroleum Resources of Nigeria, Timipre Sylva, for his shuttle diplomacy as Special Envoy of the JMMC to Congo, Equatorial Guinea, Gabon, and South Sudan to discuss matters pertaining to conformity levels with the voluntary production adjustments and compensation of over-produced volumes.
“In this regards the ministers agreed to the request by several countries, which have not yet completed their compensation, for an extension of the compensation period until the end of July, 2021.
“It urged all participants to achieve full conformity and make up for previous compensation shortfalls, to reach the objective of market rebalancing, and avoid undue delay in the process.
“The meeting observed that in December, stocks in OECD countries had fallen for the fifth consecutive month.
“The meeting recognized the recent improvement in the market sentiment by the acceptance and the rollout of vaccine programs and additional stimulus packages in key economies, but cautioned all participating countries to remain vigilant and flexible given the uncertain market conditions, and to remain on the course which had been voluntarily decided and which had hitherto reaped rewards.”

Oil & Energy

OML18: NNPC, Sahara Launch 2.2m-Barrel Floating Vessel

Published

2 weeks ago

October 13, 2025

The Tide

The Nigerian National Petroleum Company Limited (NNPCL), Sahara Group, Eroton Exploration & Production Company, and Bilton Energy Limited have jointly commissioned the nation’s first wholly owned 2.2-million-barrel capacity Floating Storage and Offloading (FSO) vessel.

The vessel, named Cawthorne, is designed to drive sustained oil production, enhance crude export reliability, and bolster Nigeria’s energy security and sustainability.

A statement signed by the Head of Corporate Communications at Sahara Group Ltd, Bethel Obioma, stated that the vessel is Nigeria’s first Crude Oil Terminal to be commissioned in 50 years.

Christened Cawthorne, the Floating Storage and Offloading (FSO) Terminal is designed to enhance crude evacuation from Nigeria’s OML 18 and nearby assets, the statement added.

This achievement, according to Udobong Ntia, EVP Upstream, NNPC, who represented the NNPC GCEO, Bashir Ojulari, at the commissioning, “is another bold achievement from the partnership between NNPC and its JV Partners that would guarantee seamless operations and bolster the strategic targets set by the President, Asiwaju Bola Ahmed Tinubu, towards ensuring optimised upstream production in Nigeria.”

Located at offshore Bonny, the double-hull FSO vessel with a storage capacity of 2.2 million barrels, represents a bold step forward in strengthening Nigeria’s crude export infrastructure and operational resilience.

NNPC Chief Upstream Investment Officer, Seyi Omotola, said the vessel represents a “renewed hope” for Nigeria’s upstream sector, adding that it also reaffirms the growing capacity of the nation to make its energy sector globally competitive.

The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe,who was represented by the Executive Commissioner, Development and Production, at the commission, Enorense Amadasu, said: “This is a commendable achievement that aligns with the vision of the NUPRC towards accelerating production in the nation, reliably, seamlessly and sustainably.”

Amadasu added that the Cawthorne FSO will enhance Nigeria’s export reliability and contribute to a more stable global energy supply chain. “This is a critical step toward unlocking the full potential of OML 18 and other strategic assets in the region.”

Managing Director, Niger Delta Exploration and Production Offshore Limited (NEOL), Ibiyemi Asaolu, said “This milestone showcases what is possible when innovation, collaboration, and execution excellence align. With FSO Cawthorne, we are not only securing production continuity from OML 18 but also contributing to Nigeria’s long-term energy infrastructure and revenue stability.”

On his part, the Head, Commercial and Planning, Asharami Energy (a Sahara Group Upstream Company), Dr. Tosin Etomi, said “The Cawthorne FSO stands as a symbol of innovation meeting necessity. It is not just a vessel, it’s an assurance of continuity, reliability, and value creation for our partners, our nation, and our people”.

“This collaboration with the NNPC, NUPRC and other stakeholders embodies the drive to turn complex energy challenges into sustainable solutions that power progress across Africa.”

Etomi said the ultramodern vessel is fitted with digital capabilities that make it a vessel “built for the future, driving operational flexibility, reduction in carbon exposure from barge movements, and enhancing overall evacuation safety. It’s an investment in the resilience of the upstream sector and our environment.”

“The commissioning of FSO Cawthorne reaffirms Sahara Group’s and indeed OML 18 Partners’ commitment to powering progress responsibly through partnerships, innovation, and infrastructure that strengthen Africa’s energy independence”, he stated.

Oil & Energy

Space-Based Solar Power Finally Ready to Shine?

Published

2 weeks ago

October 13, 2025

The Tide

Scientists have dreamed of putting solar panels in outer space since the late 1960s, and have known that space-based solar power was technologically feasible since the 1970s. But the true race for space-based solar has only just begun, driven by the intensifying need to produce more electricity to meet rapidly growing energy demand. As more of the world becomes electrified, big data and AI become omnipresent, and decarbonization deadlines draw closer, innovative energy solutions are needed more than ever. As a result, space-based solar power is finally ready for its day in the sun.

This nascent technology employs enormous satellites to collect high-intensity sunlight and beam it down to Earth, either through microwaves or lasers. A receptor on Earth receives that energy and converts it into electricity to be fed into the grid. This energy would be dispatchable, as satellites would have gargantuan range and could flexibly beam energy to where the demand is greatest.

The production potential of space-based solar power is enormous. Because the panels are situated beyond clouds and the atmosphere, and are not impacted by the rotation of the earth, they receive high levels of unadulterated sunlight 24 hours a day, 7 days a week. As a result, these systems are capable of producing a potentially game-changing amount of clean energy.

According to calculations by researchers from King’s College London, space-based solar power could reduce Europe’s need for land-based renewable energy by as much as 80 percent, and reduce battery-based energy storage needs by more than two-thirds. The kicker? It would reduce the cost of Europe’s energy system by as much as 15 percent. The researchers found that the associated savings in terms “energy generation, storage and network infrastructure costs” would save an estimated 35.9 billion euros (41.7 U.S. Dollars) per year.

The higher energy density of space-based solar means that energy systems would need far fewer costly resources. Such a system “requires orders of magnitude fewer critical minerals to provide the same continuous power as a terrestrial solution with large-scale energy storage,” reads a recent article from the World Economic Forum. “This offers a more sustainable path, alleviating the strain on resources that the International Energy Agency (IEA) has identified as a key challenge,” the report continues.

Critically, these systems would also require far, far less land than Earthbound solar farms. Not only would we be outsourcing solar panels to outer space, the receptors that receive the solar energy here on Earth would be relatively small and mostly transparent, meaning that they would be well-suited to mixed-use spaces. This would alleviate intensifying issues of land scarcity faced by utility-scale renewable energies.

As the considerable benefits of space-based solar gain more attention, investment in their development has ramped up considerably. Labs in the United States, the United Kingdom, China, Japan, Europe, and other locations around the globe are all accelerating their research programs to advance space-based solar power, and high-profile private investors are now joining the trend as well. Big tech bigwig Baiju Bhatt, a co-founder of Robin Hood, launched the space solar startup called Aetherflux last year.

But space-based solar power still faces some key hurdles before it can be scaled for commercial use. The most significant of these, according to the World Economic Forum, is the way that private finance is structured around early-stage startups and not long-term infrastructure projects. While space-based solar power will be a big money saver in the long term, it will not provide quick or necessarily predictable returns on investment.

For this reason, startups are looking to government contracts to get space-based solar power off the ground. “We think that the military customer is large enough — and for lack of better word, difficult enough — of a customer that if we can serve, we can build a constellation and we can be at scale, Christian Garcia, managing partner at Breakthrough Energy Ventures, one of Aetherflux’s backers, told CNBC. “And at that point, we will have dropped the cost of the technology such that we can expand into other customers.”

By: Haley Zaremba

Oil & Energy

Aide, Others Laud Gov. Diri Over ‘Light Up Bayelsa’ Project

Published

2 weeks ago

October 13, 2025

The Tide

Bayelsa State governor, Senator Douye Diri has again been commended for his visionary leadership and unrelenting initiatives and effort in providing stable power supply in the state.

The Technical Adviser on Media and Public Affairs, to the governor, Hon.Wisdom Ikuli, made the commendation while conducting Newsmen on a tour of the ongoing installation of the new Gas firedTurbine project procured by the Governor Diri-led administration.

Describing the ongoing project tagged: ‘Light Up Bayelsa’ as a lofty socioeconomic initiative, Ikuli noted that the project, upon its completion, would be a boost to the economic potentials of the state as well as upscale the living conditions of citizens and residents of the state.

“God’s willing by December 2025 as promised by the governor, Bayelsa would begin to enjoy 24-hour uninterrupted power supply. It will herald the industrialisation agenda of His Excellency, Governor Douye Diri.

“You all know that in January this year, this place was a bush and swampy. But between January and now, you can see the tremendous progress made. The power project Governor Diri promised before the end of this year is gradually becoming a reality.

“This project would trigger a multiplier effect on the economy of our State. It will attract investors, and revive dormant businesses across the state. Every businessman wants to locate where there is power. People will relocate from neighbouring states to Bayelsa. The hospitality sector will boom, and we must continue to thank the miracle governor for keeping to his word,” he said.

The governor’s Aide restated that while power would not be free, the cost would be affordable compared to what residents currently spend on diesel, fuel, and solar energy, noting that the gas that would be used for power generation would be bought by the Bayelsa electricity Company Ltd (BECL).

“What we will pay for power is insignificant compared to how much we spend daily on fuel or solar panels. Light is life, and Governor Douye Diri has come to give us light, and a new life. Governor Diri is the ‘Light’ of Bayelsa State and the entire Ijaw nation”, the governor’s aide said.

Also speaking, the Director of Operations, BECL, Engr. Steve Bubagha, said the project, which is about 85 percent completion would soon be set for inauguration, disclosing that six of the eight newly procured gas turbines had already arrived the state, with the remaining two en route Yenagoa, the state capital, in the coming days.

“Virtually every nook and cranny of Yenagoa will benefit from this project. We’re at an advanced stage, about 85% done with the electrical reticulation and 33kV network. Once the installation and pre-commissioning processes are completed, power distribution will begin immediately. Government plans to introduce metering systems to ensure transparency and efficiency in billing.

“If the governor has gone this far to make sure this project is installed in Yenagoa, it means he will also ensure that meters are available. It is even with meters that people can truly enjoy the facility,” he said.

By: Ariwera Ibibo-Howells, Yenagoa