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Nigeria’s Oil Production Increases To 1.6m Barrels

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Crude oil production in Nigeria is gradually improving, following an increase to about 1.6 million barrels.
The Chief Upstream Investment Officer, Nigeria National Petroleum Corporation (NNPC), Upstream Investment Management Services, Bala Wunti, who disclosed this at the 11th Practical Nigerian Content forum in Uyo, Akwa-Ibom State, said Nigeria’s oil production as at Tuesday was 1. 6 million barrels per day, from 937, 000 barrels per day reported in September.
Wunti stated that the output increase was a result of the government’s rectangular approach to the fight against crude oil theft.
“Crude theft affects all architecture that funds the country. When the oil theft reached its peak, everything including gas production was affected,” he said.
He continued that, “One, we have security agencies in which the Navy, the police, and everyone within that space was involved. The second is the regulators angle. At this stage, all regulators are made to fully be part of the efforts.
“Third is the operators’ angle. And, of course, all operators were involved. The fourth angle is the community angle in which all impacted communities have to be brought under the umbrella of a structured arrangement in the collective effort against crude oil theft.
“In all, these efforts were able to do three things; Detect, deter and respond appropriately.
“As at today, oil production is at 1.59 million barrels per day,” he said.
Recall that Nigeria has been unable to meet OPEC production quota in the last one year.
At the September Federation Account Allocation Committee, an NNPC Limited presentation said Nigeria lost as much as 8.14 million barrels in August.
The Tide’s source had reported how the contribution of the oil sector to the Gross Domestic Product (GDP) of the country fell to 5.7 per cent in the third quarter of this year, according to data sourced from the National Bureau of Statistics.
The Bureau, in its GDP Sector Report, had said the oil sector’s contribution of 5.7 per cent in Q3, 2022, was a decline when compared to a 6.3 per cent real GDP contribution recorded in Q2-2022.
The report stated that Nigeria’s average crude oil production in Q3-2022 was 1.2 million barrels per day (including condensates), lower than Q3-2021’s 1.6 million barrels per day, a 23.6 per cent decline.
A statement by the Ministry of Finance, Budget and National Planning, last Wednesday, said the excess crude account crashed by 89 per cent in the last eight years, moving from $4.1bn in November 2014 to $472,513 in the same period of 2022.The balance as of November 23, 2022, stood at $472,513.64.
The account has depleted in the last eight years as a result of lack of inflows, oil market vagaries and the country’s revenue crunch, according to economists.
Speaking to The Tide’s source when the Federal Government made the  announcement, Professor of Economics at Covenant University, Ogun State, Jonathan Aremu, said, “It is a simple fact that when you spend money from an account and you are not adding to it, it will deplete”.
According to him, “For you to increase the ECA, the oil price must rise above the budgeted price. If it does not, nothing goes in.
“Also, if what you are spending is higher than what goes in, it depletes. This is the situation”.

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Aviation Workers Issue Strike Notice To NiMET

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Aviation workers unions have given a 14-day notice of strike to the Nigerian Meteorological Agency (NiMET) for failure to implement consequencial adjustment wage for its workers.
This, consequently, means another round of disruption in the aviation industry as three workers’ unions have threatened to ground operations at the Nigerian Meteorological Agency over the wages, and failure to implement the minimum consequential adjustment wage.
The unions, which include the National Union of Air Transport Employees (NUATE), the Association of Nigeria Aviation Professionals (ANAP) and the Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees.
The unions in a letter of notice of strike, which was made available to aviation correspondents, gave the agency’s management a 14-day ultimatum to implement the minimum wage adjustment or they would embark in strike action.
This is also coming barely a week after the workers of the Nigerian Aviation Handling Company PLC( NAHCO) downed their tools over wages.
The strike notice to NiMET is also coming up in the sector, irrespective of the recent order given by the ministry of aviation, prohibiting any form of strike in the sector, as aviation industry is viewed as essential service.
The unions have accused the NIMET’s management of ‘wickedness’ over its failure to implement the minimum wage consequential adjustment despite its implementation in other five aviation agencies in the sector, since February 2022.

The letter dated January 26, 2023, was jointly signed by the General Secretary, NUATE, Ocheme Aba; the General Secretary AUPCTRE, Sikiru Waheed; and the General Secretary of ANAP, Abdul Rasaq Saidu, and was addressed to the Director-General of NiMET.

By: Corlins Walter

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New Seme Customs Controller Vows To Sustain Tempo

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The newly deployed Area Controller, Nigeria Customs Service (NCS), Seme Border Command, Compt. Dera Nnadi, has assumed duty with a pledge to sustain and improve tempo of trade facilitation at Nigeria’s busiest land frontier.
Speaking at a brief handover ceremony, Nnadi, who described Nigeria as a strategic economic player in Africa, said schemes like ongoing ECOWAS Trade Liberalisation Scheme (ETLS) and soon to take off African Continental Free Trade Area (AfCFTA) would be explored for common good.
According to the new CAC, Nigeria’s economy is central to the West African sub-region with a population of over 200 million, with the country having potentials to contribute to the over 1billion African population through the AfCFTA regime
He urged his operatives, other government agencies, members of the border community and travellers to embrace challenges of trans border trade and comply with the law guiding trans border trade all the time.
Nnadi, who noted that border communities have challenges that are not insurmountable, added that there is need to cover infrastructural gaps that will improve their standards of living and promote lawful sources of livelihood.
Ahead of the 2023 elections, he advised his officers to be polite to travellers and traders using the Seme corridor and be firm in curbing any form of lawlessness.
He said his experience and knowledge from previous assignments across the border and his academic exposures will be deployed to border administration
While promising to interact closely with  traditional rulers and other members of the border area, he solicited closer stakeholder interactions at strategic and operational levels.

By: Nkpemenyie Mcdominic, Lagos

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Kaduna Refinery Rehabilitation: NNPCL, Daewoo Sign N342bn Deal

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A contract sum of $740.67million has been signed between the Nigerian National Petroleum Company Limited (NNPCL) and Daewoo Engineering and Construction Nigeria Limited for the rehabilitation of Kaduna Refining and Petrochemical Company Limited (KRPC).
A release from the NNPCL revealed that the signed contract of $740.67million (N341.48billion as at Friday’s official exchange rate of N461.04/$) was signed at the Abuja headquarters of NNPC, and will last for 21 months.
According to the release, the quick-fix strategy would see to the repairs and re-streaming of KRPC, as well as ensure its operation on a sustainable basis at a minimum capacity utilisation of 60 per cent.
In the released statement, the Executive Vice President of the downstream of the national firm, Adeyemi Adetunji, was quoted as saying that the contract is marked a milestone in the history of KRPC, considering the fact that the last Turn Around Maintenance on the refinery occurred about 15 years ago, and that the project was framed after extensive engagement with Daewoo.
“This project shall be executed in three work packages as a maintenance services contract by Daewoo E&C Nigeria Limited at an estimated maximum cost ceiling of $740,669,600, with a duration of 21 months.
”The quick-fix strategy guarantees the fastest route to re-streaming Warri Refining and Petrochemical Company (WRPC) and KRPC for in-country production of refined petroleum products.
“Restoring WRPC and KRPC back to operation will guarantee energy security for the country, reduce dependence on imported petroleum products in view of near total dependence on supply of imported petroleum products and the impact the ongoing Russia-Ukraine war is having on global supply”.
“The proposed quick-fix initiative on KRPC is expected to restore it to a minimum of 60 per cent of its nameplate capacity by fourth quarter of 2024. NNPC Limited is using a combination of Internally Generated Revenue and third party financing to execute the repairs of the refineries”, he stated.
Also in the release, Adetunji noted that the rehabilitation of the Port Harcourt Refining Company had progressed considerably.
”The old refinery is currently at 64 per cent completed and the plant is expected be back in operation in second quarter of 2023, while the entre PHRC rehabilitation project currently stands at about 59 per cent.
“On the other hand, WRPC quick-fix project has achieved 28 per cent completion and is expected to be re-streamed by the end of this year”, it stated.
The statement further maintained that Nigeria should be self sufficient this year with respect to the domestic production of Premium Motor Spirit, popularly called petrol.

By: Corlins Walter

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