A new monthly report of the Organization of Petroleum Exporting Countries (OPEC) has shown a plunge in Nigeria’s crude oil production in December 2021, resulting in a loss of about N74.51 billion in oil earnings.
A data from OPEC stated that Nigeria produced about 1.19 million barrels daily in December, down from 1.26 million bpd in November, based on direct communication.
The implication is that an average daily loss of 78,000 barrels was recorded in December, translating to a total loss of 2.42 million barrels in the month.
In December, the average price of Brent, the international benchmark against which Nigeria’s oil is priced, was $74.17 per barrel, according to figures from countryeconomy.com.
At the official exchange rate of N415.45 to a dollar, it implies that the loss of 2.418 million barrels of crude oil in December reduced the country’s earnings by about N74.51 billion.
Further analysis of OPEC’s latest report indicated that in the first quarter of 2021, Nigeria’s oil production stood at an average of 1.312 million bpd.
This moved up to an average of 1.34 million bpd in Q2, but the momentum could not be sustained, as the country’s crude oil production dropped to 1.27 million bpd in Q3.
OPEC said the plunge in oil production in the West African nation persisted in the fourth quarter of last year, dropping to an average of 1.233 million barrels daily in the last quarter.
In addition to the menace of pipeline vandalism in the Niger Delta, the continued oil production plunge in the last quarter of 2021 is believed to be connected to the oil leak recorded in Santa Barbara, Nembe, Bayelsa State.
In November, the Federal Government announced that it was investigating the cause of the oil spill in Santa Barbara which occurred in a facility operated by Aiteo.
The government had disclosed this through its Nigerian Upstream Petroleum Regulatory Commission.
Before the leak was plugged, Aiteo Eastern Exploration and Production Company had earlier announced that high-pressure effusion prevented its personnel from plugging the wellhead leak around the OML 29 southern oilfield.
The affected facility discharged high volumes of crude into the marine environment for several weeks after the spill occurred on November 5, 2021. Aiteo had reported five days later that the magnitude of the incident was of “an extremely high order.”
Crude oil revenue losses in Nigeria have lingered due to various challenges in the sector despite efforts to curb them by the government and its agencies.
On December 27, for instance, The PUNCH exclusively reported that Nigeria lost crude oil valued at about N556bn between August and October last year due to pipeline vandalism, community interferences, and sabotage of oil facilities, among others.
Data compiled from NNPC’s Crude Oil Marketing Division report of events that affected oil production in August, September and October indicated that the country consistently posted losses during the period under review.
The report had shown that the worth of the crude volumes lost by the country in August, September and October were N194.71 billion, N195.246 billion and N166.05 billion respectively.
‘Xerox Committed To Growth Of Nigeria’s Economy’
Managing Director/Chief Executive Officer of Xerox Nigeria Limited, Engr. Femi Abidoye has said that the company is committed to the growth of the Nigerian economy.
Abidoye said this during the customers’ forum/products exhibition themed, “Xerox Business Solutions For Digital Transformation In The 21th Century”, in Port Harcourt, yesterday.
He said captains of industry, SMEs, Startups, big players in the oil and gas industry, and politicians should patronise the company’s products to empower the youth.
Speaking earlier at the programme, the MD described Xerox as the foremost document management solution provider with a global reputation and unbeatable track record in quality service delivery, excellent products innovation, clear market leader in Africa and household name in reprographic market in Nigeria.
He said the company commenced business operation in Lagos five decades ago, adding that it has partnered with all states in the South-South and south-Eastzones through its dealership network.
“Knowledge is no doubt a powerful tool in our quest to move forward, which is why a better knowledge and appreciation of the use and application of Xerox equipment as it relates to storage and retrieval cannot be overlooked in our overall consideration”.
He said the company has been blazing the trail as the foremost document management provider.
“Permit me to say that the overall objective of this digital transformation exhibition will have tremendous impact on the ever-changing technological advancement, communication and developmental stride in our overall economic advantage with world-class productivity,efficiency, return on investment and cost-saving initiative”.
Chairman of occasion, Dr. Kenneth Okujagu, said Xerox has been known for its quality.
He commended the company for maintaining the quality, and called for it to be sustained.
By: John Bibor
FG To Maximise Local Content Opportunities In Midstream, Downstream Sectors
The Federal Government has expressed firm determination to fully catalyse investments in the midstream and downstream sectors of the petroleum sector, with a view to creating employment for teeming youths and maximising local content opportunities.
The Minister of State for Petroleum Resources, Chief Timipre Sylva gave assurance when he declared open the Nigerian Content Midstream and Downstream Oil and Gas Summit organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.
He stated that the Nigerian oil and gas industry was currently in the phase of exploring the vast opportunities and potentials associated with the midstream and downstream sectors, and commended the NCDMB for intervening to foster dynamism in the sectors through the summit.
He acknowledged that the midstream and downstream sectors did not receive the deserved focus in the past but hinted that the situation was set to change because the recently enacted Petroleum Industry Act (PIA) contains fiscal incentives to attract investment in gas development, distribution, penetration, and utilisation and provides exceptional care for host communities.
He charged industry stakeholders to take determined steps to unlock natural gas and domestic production potentials and use the opportunities in the gas ecosystem to drag millions of Nigerians out of energy poverty.
In his welcome address, the Executive Secretary, NCDMB, Engr. SimbiKesiyeWabote affirmed that the board was keen to maximize Local Content opportunities in the midstream and downstream sectors because they offer the greatest number of employment opportunities as well as longevity of jobs in contrast to the upstream sector of the oil industry.
“This provides means to absorb outputs of our Human Capacity Development programs in the form of job opportunities,” he added.
He also stated that the entry barrier for businesses to partake in the midstream and downstream sectors of the industry is relatively lower compared to the upstream sector and there are vast business opportunities in the midstream to downstream sectors, ranging from processing, transportation, storage, and distribution that could be started on small scale and later scaled up to bigger enterprises thereby growing in-country capacities and capabilities.
According to Wabote, the profit margin is also attractive in the midstream and downstream, especially in the LPG distribution value chain and this serves as an incentive to attract a wider number of players.
He emphasized the need to maximise the potentials of the midstream and downstream sectors to ensure energy security and national pride, adding that the direct social impact of a productive and efficient midstream and downstream sector of the oil and gas industry also needs to be maximised.
The executive secretary further explained that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act established NCDMB as the regulator of Nigerian Content in the entire spectrum of the Nigerian oil and gas industry.
He added that the board’s regulatory role is not to stifle the industry but to provide enabling, and inclusive, business environment for businesses to thrive with the active participation of critical stakeholders.
Giving a rundown of the board’s achievements in the midstream and downstream sectors, he listed the partnership with Waltersmith, which resulted in the delivery of the 5,000barrels per day modular refinery in Imo State, the 2,500barrels per day Duport Modular Refinery located in Edo State, which is due for commissioning this year as well as the 2,000barrels per day Atlantic Refinery and the 12,000barrels/day Azikel Hydro-skimming Refinery both in BayelsaState, which are under construction.
Other achievements of the board include the partnership with the NNPC to construct a 50,000liters petroleum products terminal in Brass, the partnership with Bunorr Integrated Energy Ltd for the establishment of 48,000 liters/day Base Oil Production Facility in Port Harcourt, Rivers State, which is due for commissioning this year and the ongoing construction of the Eraskon Lube Oil factory in Gbarain, Bayelsa State
Dwelling on the LPG value chain, he stated that the board had gone into partnership with some investors to develop some projects.
Some of them included the partnership with NEDO Gas Processing Company in Kwale, Delta State for the establishment of 80MMscfd of Gas Processing Plant and a 300MMscfd Kwale Gas Gathering hub, partnership with Triansel Gas Limited in Koko, Delta State for the establishment of 5,000MT LPG Storage and Loading Terminal Facility and partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass.
Others are the partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 northern states and partnership with Southfield Petroleum for the establishment of 200 MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG, which is about 10percent of current LPG demand nationwide.
Other investments include the partnership with MOB Integrated Services for the construction of the 500MT Inland LPG terminal which is currently in operation at Dikko, Niger State as well as the partnership with Amal Technologies to set up a plant in Abuja to produce Smart Gas/Smoke Detector Alarm devices.
Withdrawal Of Naira Notes: Stakeholders Call For Caution
The Central Bank of Nigeria (CBN) has debunked rumours that it is planning to withdraw naira notes from circulation and replace it with its digital currency, the eNaira, which was launched last October by President Muhammadu Buhari.
Recall that stakeholders had warned the apex bank to desist from such move.
Director, Corporate Communications Department of the CBN, Osita Nwanisobi, at the weekend, noted that, the statement purportedly to have been made during a stakeholders’ engagement on eNaira adoption in Asaba, Delta State, was misconstrued.
He, therefore called on the public to disregard such information in its entirety.
The eNaira is a Central Bank Digital Currency (CBDC) that was rolled out to improve financial inclusion in the country, reduce the cost of transactions, and boost security in the financial system.
According to Nwanisobi, the digital version of the Naira is meant to complement the existing currency notes and, therefore, will circulate simultaneously as a means of exchange and store of value.
On the benefits of adopting the eNaira, he said the digital legal tender, aside from the safety and speedy features, will also ensure greater access to financial services by the underbanked and unbanked populace, thereby enhancing financial inclusion.
Nwanisobi, therefore, urged members of the public and business owners to embrace the digital currency, the eNaira, saying it offers more possibilities.
Meanwhile, the eNaira speed wallet is expected to have another update which will allow users to pay bills and conumate online shopping payments directly from their wallets.
Stakeholders have, however, queried the decision of the government over planned removal of Naira notes from circulation.
They noted that in civilised societies, physical money exists side by side with other forms of financial transactions.
Speaking in an interview the The Tide’s source, the President of National Union of Banks, Insurance and Financial Institutions Employees of Nigeria (NUBIFIE), Comrade Anthony Abakpa, expressed wonder how such a policy could be brought out without enough preparation and enough awareness.
“The CBN ought to give enough time to enable Nigerians prepare for it. CBN should know that not every Nigerian is having bank account, talkless of e-money. Most of them who cannot write would not be carried along.
“What CBN needs most is ability to educate everyone on it and save people from demoralisation, because it will demoralise and be cumbersome to many people and they will lose confidence in government.
“CBN should run both physical and e-money together, not total removal of physical notes from circulation”, Abakpa said.
On his part, the General Secretary of Iron and Steel Senior Staff Association of Nigeria (ISSAN), Comrade Lucky Odigie, urged Federal Government to desist from policy summersaults.
He said, “Federal Government should not start what it will not be able to sustain. In fact, this policy has already failed before birth.
“How can Government just wake up with policy that would add more burdens to the masses that have already been pushed to the wall?”
Odigie also advised FG to always put the interest of the masses first in all their planning in order to reduce harsh economic situations that are pushing some into vices.
Business3 days ago
Group Proposes Economic Turnaround Agenda
Business3 days ago
Foreign Education Gulps $221m In Three Months – CBN
Business3 days ago
CEOs, NADDC Meet To Chart Path For Auto Industry
Rivers3 days ago
‘Wike’s Presidency, End To Leadership Inequality’
Business3 days ago
Sign Federal Road Bills Into Law, Expert Urges Buhari
Editorial3 days ago
Task Before Peseiro
Business3 days ago
NMDPRA Unveils Regulations On Gas Pricing, Pipeline Tariff, Others
Business3 days ago
NCC: N208bn 4G Telcos Investment To Boost Internet Speed