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Nigeria’s Rig Count Drops 49.5% To 53

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There are indications that oil and gas explorations dropped in Nigeria as the rig count fell by 49.5 per cent to 53 in the first eight months (January-August) of 2021, from 105, recorded in the corresponding period of 2020.
The rig count, a major index for measuring the level of activities, especially exploration in the upstream oil sector, was obtained from the reports of the Organisation of Petroleum Exporting Countries (OPEC).
The reports attributed the development to the Coronavirus pandemic and relatively low crude oil prices as major factors that discouraged investors from investing during the period.
It was also partly attributed to the prolonged delay associated with the passage of the Petroleum Industry Bill (PIB), into law.
Like Nigeria, the rig count of some other African oil and gas producing countries also showed significant changes during the period.
For instance, the rig count of Algeria dropped to 191 in 2021, from 271 recorded in the corresponding period of 2020, indicating a decrease of 29.5 per cent.
However, the rig counts of Libya and Angola rose to 32 and 114, from 26 and 101, respectively, during the period, showing an increase of 12.8 per cent and 23 per cent, respectively.
Commenting on the development, the Chief Executive Officer, Cabtree, Olabode Sowunmi, raised hope for increased investment in exploration and other activities in the coming years.
He said, “The prolonged delay in the passage of the PIB into law scuttled the inflow of domestic and foreign investments for many years. In fact, many investors left Nigeria for other countries. But with the emergence of the PIA, we expect that the nation’s oil and gas would witness substantial investments in the coming months.”
Similarly, in its latest report – Investment uptick expected as Nigeria’s Petroleum Industry Bill becomes law – Fitch Solutions Country Risk & Industry Research, a global provider of country risk and industry analysis stated, “We expect Nigeria’s Risk Reward Indices score to improve in next quarter’s scoring, once the changes from the PIB are integrated into our analysis.
“On the upstream side of things, Nigeria is competing for investment on the global stage with newcomers Guyana, Senegal and Kenya while industry stalwarts Brazil and Norway continue to attract investment due to outsized reserves and friendly investor environment.
“Next quarter’s RRI should show Nigeria’s upstream position improve, although attracting new investment over other destinations is likely to be a race as overall investment is likely to decline in the long-term, as decarbonisation efforts divert more capital to alternative energy and high margin barrels. Existing discoveries of sizeable reserves are the most likely area of new investment.
“The biggest impact of the new PIB will be the increase in new investment expected from existing International Oil Companies, IOCs operating the deepwater sector. The oil majors are a significant part of the deepwater players and several have joint stakes in the key offshore growth projects, Bonga Southwest, Bonga North, Bonga Main Extension (OML 118), Preowei (OML 130), and Owowo (OML 139).”
Also, the Director, Centre for Petroleum, Energy Economics and Law, University of Ibadan, Prof. Adeola Adenikinju, said, “It removes some of the uncertainties in the sector and more importantly now you cannot hold a field for a long time without developing it for years. Now prospecting licences will expire after the period stated in the contract. Unlike in the past when major companies can just hold a field without developing it.
Commenting on the development, the National President, Oil and Gas Service Providers Association of Nigeria (OGSPAN), Mr. Colman Obasi, said, “The dwindling rig count clearly showed that the nation is not investing enough in the upstream sector. It also illustrated that we might not likely meet set targets, especially the attainment of 40billion barrels reserves target by 2025.
“Besides, it also showed that Nigeria’s current 37billion barrel reserves might be depleted much faster than expected, if the nation does not invest much in exploration, required to make new finds and increase reserves. More than that, it showed further that the emerging oil and gas countries in Africa, and other continents could overtake Nigeria in the medium and long term.”
In any case, Lead Promoter, EnergyHub Nigeria, Dr. Felix Amieyeofori, called on the International Oil Companies (IOCs), indigenous companies, and the Federal Government to work toward increasing the investments, and by extension the rig count in the upstream sector.

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NAFDAC Alerts Nigerians To EU Ban On Dex Soap

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The National Agency for Food and Drugs Administration and Control, NAFDAC, has alerted Nigerians on the ban on Dex Luxury Bar Soap (No 6 Mystic Flower), by the European Union (EU).
The notification is contained in a public alert with No. 012/2024, signed by NAFDAC Director-General, Prof Mojisola Adeyeye, and issued to newsmen in Abuja yesterday.
“The product does not comply with the cosmetic products regulation; it also contains Butyphenyl Methylpropional (BMHCA), which is prohibited in cosmetic products due to its risk of harming the reproductive system.
“It also causes harm to the health of unborn children and may cause skin sensitisation.
“It is as a result of the defective nature of the product that the EU banned it.
“The products is not in NAFDAC database; importers, distributors, retailers and consumers are to exercise caution and vigilance within the supply chain,” she said.
NAFDAC boss urged marketers and consumers to avoid the importation, distribution, sale and use of the product, stressing that product’s authenticity and physical condition must be carefully checked.
She enjoined members of the public in possession of the product to discontinue sale or use, and submit stock to the nearest NAFDAC office.

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Communities, Volunteers Ready To Face Upcoming Floods – Red Cross

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The Country Manager of the British Red Cross in Nigeria, Karsten Voigt, says communities and volunteers are ready to face the challenges expected with the upcoming floods.
Voigt said this at the sidelines of the 56th Annual General Meeting of the Nigerian Red Cross Society (NRCS), Lagos Branch.
The Tide’s source recalls that the British Red Cross donated resilience items to some communities in December 2023, to help mitigate the effects of flooding.
The items included cash, rain boots, rain coats, mosquito nets, handheld flashlights, solar powered lights with radio, USB chargers and a bridge to link the communities.
The communities that benefited included Agboyi 1, Agboyi 2, Agboyi 3 and Odo Ogun in Kosofe Local Government Area of the state.
Voigt said the Red Cross had measured the impact of the project in the communities and noticed that a lot of progress had been made.
According to him, apart from the cash and items given to the communities, simulation exercises have also been carried out to prepare the volunteers ahead of the floods.
“We have seen that people used the cash to address immediate needs they have after floods.
“Many households have used part of the cash to build up businesses.
“The solutions we have given to them are not only addressing their immediate needs after the disaster but actually building family income for their future,” he said.

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Nimet Forecasts Three-Day Sunshine, Thunderstorms

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The Nigerian Meteorological Agency (NiMet) has predicted sunshine and thunderstorm from Monday to Wednesday across the country.
NiMet’s weather outlook released yesterday in Abuja, forecasts sunny skies on Monday with a few patches of cloud over the northern cities and prospects of thunderstorms over parts of Taraba later in the day.
According to the forecast, sunny skies with patches of clouds are expected over the North Central region with prospects of morning thunderstorm over parts of the Federal Capital Territory, Nasarawa, Kogi and Kwara States.
“Later in the day, isolated thunderstorms are anticipated over parts of the Federal Capital Territory, Kogi and Benue States.
“The southern region is expected to be cloudy with spells of sunshine with prospects of morning thunderstorms over parts of Oyo, Ekiti, Ogun, Ondo and Lagos States.
“ In the afternoon/evening periods, isolated thunderstorms are expected over parts of Enugu, Ebonyi, Abia, Ekiti, Ogun, Imo, Oyo, Ondo, Edo, Cross River, Akwa Ibom, Delta, Rivers, Lagos and Bayelsa States,” it said.
NiMet also anticipated sunny skies on Tuesday with few patches of cloud over the northern states with prospects of isolated thunderstorms envisaged over parts of Bauchi, Gombe, Adamawa, Taraba and Kaduna States during the afternoon and evening hours.
It envisaged the North Central region to be sunny with patches of cloud during the morning hours.
The agency also envisaged isolated thunderstorms over parts of the Federal Capital Territory, Plateau, Nasarawa, Kogi, Benue, Kwara and Niger States, later in the day.
“Cloudy atmosphere with intervals of sunshine is expected over the inland and coastal areas of the South, with chances of morning thunderstorm over parts of Cross River, Bayelsa, Akwa Ibom and Rivers States.
“In the afternoon/evening periods, isolated thunderstorms are anticipated over parts of Osun, Ekiti, Ondo, Imo, Anambra, Enugu, Abia, Oyo, Edo, Delta, Cross River, Akwa Ibom, Lagos, Rivers and Bayelsa States ,” it said.
It predicted a sunny atmosphere on Wednesday, with patches of cloud over the northern region, during the forecast period.
“Sunny skies with patches of clouds are expected over the North Central region with chances of isolated thunderstorms over parts of Plateau, Kogi, Nasarawa, the Federal Capital Territory and Benue States, during the afternoon/evening periods.
“ Cloudy atmosphere with intervals of sunshine is expected over the inland and coastal areas of the South with prospects of thunderstorms over parts of Anambra, Imo, Enugu, Ebonyi and Abia.”
Other states to experience cloudy atmosphere, are “Edo, Ondo, Ekiti, Ogun, Oyo, Cross River, Lagos, Akwa Ibom, Rivers, Delta and Bayelsa States, later in the day.”
NiMet urged the public to take adequate precaution as strong winds might precede rains in areas where thunderstorms were likely to occur.
The agency also urged airline operators to get updated weather reports and forecasts from its office for effective planning in their operations.

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