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Nigeria’s Crude Oil Production Rigs Drop By 37.5%

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The number of functional crude oil production rigs in Nigeria decreased by 37.5per cent to just 10 operational rigs in March, 2022, the Organisation of Petroleum Exporting Countries (OPEC) has said.
An oil rig, offshore platform, or oil and/or gas production platform is a large structure with facilities to extract, and process petroleum and natural gas that lie in rock formations beneath the seabed.
Nigeria is a strong member of OPEC and has been championing activities of the group for decades, though failing lately in meeting its monthly oil production quota as approved by the organisation.
Data from OPEC’s latest Monthly Oil Market Report for April 2022, last Friday, showed that Nigeria’s operational oil rigs had been on the decline since 2019.
In its world rig count and units, OPEC stated that in 2019 Nigeria had an average of 16 functional rigs, but this dropped to 11 in 2020 and crashed further to an average of seven in 2021.
In fact, the organisation revealed that the country’s rigs dropped to as low as five in the second quarter of 2021, before picking up to 10 in the third quarter of same year, but eventually dropped again to seven in the fourth quarter of last year.
It moved up to eight functional rigs in the first quarter of this year, going by OPEC data, as the organisation’s report further showed that Nigeria’s oil rigs were eight in February, 2022.
The rig count appreciated marginally in March this year to 10.
Hence, the fluctuations in Nigeria’s rig counts indicated that it dropped by from an average of 16 in 2019 to 10 in March, 2022, representing a decrease of 37.5per cent.
Meanwhile, the report showed that aside from Iran which had maintained 117 rigs since 2019, some other oil-producing nations witnessed varying degrees of declines in their rig counts.
The rig counts of Saudi Arabia, Algeria, and the United Arab Emirates, for instance, also dropped from 115, 45 and 62 to 74, 30 and 41, respectively between 2019 and March, 2022, according to OPEC data.
However, countries such as Angola, Venezuela and Libya, for instance, saw a marginal rise in the number of functional oil rigs in their various domains.
Amidst the drop in oil rig count for Nigeria, the country has also suffered massive decline in its crude oil production making it unable to meet its OPEC approved oil production quota since this year.
Operators in Nigeria’s oil and gas sector had also attributed the drop in oil production to oil theft, while the government had raised concerns about the exit of international oil companies from Nigeria due to the global push for net zero carbon emission.
Also an analysis of the OPEC report showed that Nigeria’s oil production had been falling since January this year.
It was observed that while the country produced 1.413million barrels of crude oil daily in January, this dropped to 1.378million barrels per day in February, and plunged further to 1.354million barrels per day in March.
The situation confirmed concerns by both government officials and International Oil Companies operating in Nigeria that crude oil production in the country had been on the decline since 2021.
On March 24, 2022, for instance, the total value of Nigeria’s crude oil stolen between January 2021 and February 2022 was about $3.27billion (representing N1.361trillion at the official exchange rate of N416.25 to the dollar), according figures from the Nigeria Upstream Petroleum Regulatory Commission.
International oil companies and their counterparts in Nigeria also stated recently that the massive oil theft across the country posed a threat to not just their existence, but to the Nigerian economy.
But NNPC’s Group Managing Direction, Mele Kyari, had announced recently that measurable outcomes against the massive crude oil theft in the Niger Delta would be visible in three weeks’ time.
Kyari had said, “As we speak now there is massive disruption to our operations as a result of the activities of vandals and criminals along our pipelines in the Niger Delta area.
“This has brought down our production to levels as low as we have never seen before. Today we are doing less than 1.5million barrels per day simply because some criminals have decided that they should have some infractions on our pipelines.”
Nigeria’s oil production quota by OPEC has revolved around 1.8million barrels per day.
The country has repeatedly missed this target due to oil theft.
“And that clearly is the biggest form of business disruption that we are facing today,” the NNPC boss had stated.
He added, “This kind of engagement, the certifications that we have today around our systems and processes should be able to respond to this. And part of the response is to bring in the best framework possible to contain this situation.
“I’m happy to tell us that enormous work is going on between us and the Federal Government recognised security agencies, our partners, particularly those on the corridors that are impacted, and also the community members.
“And I’m very optimistic that within the next two to three weeks some very measurable outcomes will come so that our businesses will continue. As we speak now, the Nigerian Navy is launching a massive operation to contain oil theft in the Niger Delta.”

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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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