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Group Accuses NMDPRA Of Allowing Continued Importation, Sale Of Adulterated Fuel In Nigeria

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The Nigeria Energy Consumers Watch Initiative has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of failing to halt the continued importation of adulterated and substandard petroleum products into Nigeria.

The group said the alleged influx of blended fuel from Dubai and other countries had become a serious threat to consumers and the economy, accusing the regulator of failing to take decisive action against major marketers involved in the importation of such products.

In a statement issued at the weekend, President of the group, Alhaji Abdulrahman Sani Ibrahim, said the continued presence of questionable petroleum products in the Nigerian market was unacceptable, particularly after the regulator had previously acknowledged concerns over the quality of imported fuel.

The group said the NMDPRA had previously warned that it could stop supplying petrol to marketers found to be involved in importing or dealing in substandard products.

The consumer group, however, questioned why the regulator had not taken stronger action despite what it described as the continued mass influx of blended products into the country.

“This is no longer a matter that can be treated with regulatory caution or empty threats. The NMDPRA knows the concerns that have been raised about the continuous importation of blended products from Dubai and other countries, and it has even warned that marketers involved in such practices could be denied petroleum supplies. If the regulator is aware of these activities and still allows them to continue, then it is failing in its fundamental responsibility to protect Nigerian consumers,” the group said.

The organisation described the alleged continued importation of adulterated fuel as an economic crime, saying its consequences extend beyond individual consumers to businesses and the wider economy.

It said poor-quality petroleum products could damage vehicles and machinery, increase operating costs and impose additional financial burdens on Nigerians already struggling with high energy and transportation costs.

The group called on the NMDPRA to immediately intensify surveillance and testing of imported petroleum products at ports, depots and retail outlets.

It also demanded that marketers found to have imported or distributed products that failed regulatory standards should face sanctions.

The group said regulator cannot continue to issue warnings while the same practices it is warning against persist in the market. If a marketer deliberately imports or distributes adulterated fuel, the appropriate response should be immediate investigation, prosecution where necessary and sanctions that will deter others. Anything less gives the impression that the rules exist only on pape”.

The group further urged the federal government to investigate the activities of major petroleum marketers involved in the importation of blended products and determine whether regulatory officials had failed to perform their duties.

It said the issue should be treated as a matter of national economic security because of the potential impact on consumers, businesses and Nigeria’s reputation in the petroleum marketm

According to the group, Nigerians should not be forced to pay for the consequences of regulatory failures through damaged engines, higher transportation costs or reduced business productivity.

“Nigerians are already paying heavily for fuel, and they should not also be made to bear the cost of poor regulation. Every litre of fuel that enters this country must meet the required quality standard, regardless of who imported it or how influential the marketer is. NMDPRA must stop protecting the interests of operators at the expense of consumers and begin enforcing the law without fear or favour,” it said.

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Tight Now, Loose Later: Oil Futures Flash Warning

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Last week, OPEC+ announced it will once again accelerate the pace of unwinding of production cuts, with output targets for June increasing by 411,000  barrels per day, equivalent to three monthly increments. This follows a similar move in April, with the organization appearing willing to stay the course amid low oil prices and fears of weakening demand. We reported that global crude inventories remain low enough, thus giving OPEC+ a window to scale back its voluntary cuts until the market surplus finally arrives. Saudi Arabia appears intent on “punishing” OPEC+ rascals such as Kazakhstan and Iran for repeatedly violating their quotas.

Commodity analysts at Standard Chartered have reported that the latest OPEC survey of secondary sources reveals that Kazakhstan’s crude oil output clocked in at 1.852 mb/d in March, 384 kb/d above its OPEC+ quota. Further, the country also failed to keep its promise to cut 38 kb/d in compensation for overproduction in March, bringing its total overproduction to 422 kb/d. The same scenario is expected to unfold in the coming months. Kazakhstan produced 240 kb/d more y/y in March, a sharp contrast from the other eight OPEC+ members who produced a combined 612 kb/d less.

And now, the oil futures markets are sending a dire warning that oil bulls could find themselves in trouble quite soon due to a combination of the OPEC+ output hike and Trump’s tariffs.

Oil futures curve has formed a rare “smile” shape, a structure Morgan Stanley says was last seen briefly in February 2020 just before the infamous oil price crash. On Wednesday, Brent futures’ July contract was trading at a premium of 74 cents to the October contract, a market structure known as backwardation, foreshadowing immediate tight supply. However, prompt prices from November have formed a contango, with forward prices flipping to a discount, indicating oversupply as traders predict Trump’s tariffs will eventually weaken oil demand. Having backwardation and contango together leads to the rare “smile” shaped curve.

According to the latest available data by the International Energy Agency (IEA), global oil inventories stood at 7.647 billion barrels in February, down from 7.709 billion barrels for last year’s corresponding period and close to the bottom of their historical five-year range.

Meanwhile, refiners’ appetite for crude is climbing ahead of the peak driving season in July and August, “Refinery maintenance in the Atlantic basin will start to taper off, increasing oil demand (for refining)… Summer driving should provide some support,” BNP Paribas analyst told Reuters.

Global oil demand is expected to rise by 1.3 million barrels per day in the third quarter of the current year, up from an average of 104.51 million bpd in the second quarter, the IEA has predicted. The 1 million bpd output increases announced by OPEC+ so far, coupled with another 400 kb/d increase in July, almost matches the predicted demand increase, implying oil markets will not face a surplus till late in the year.

Meanwhile, oil prices jumped in Thursday’s session after the Trump administration announced it has struck a trade deal with the UK. Brent crude for July delivery was up 2.7% to trade at $62.75/bbl at 12.50 pm ET while WTI crude contract for June delivery added 3.0% to change hands at $59.86 per barrel. However, terms of the deal appear to fall well short of the “comprehensive” package Trump earlier touted.

According to Trump, UK Prime Minister Keir Starmer will further reduce non-tariff barriers and fast-track U.S. goods into his country. Meanwhile, another solid week of jobless claims underscored the Federal Reserve’s ongoing unwillingness to cut rates. U.S. jobless claims fell 13,000 to 228,000 for the period ending on May 3. Continued claims, however, clocked in at just over 1.9 million, near the highest levels since 2021, suggesting workers are still finding it difficult to secure new jobs as the economy stalls.

That said, commodity analysts at Standard Chartered have predicted that path of least resistance for oil prices is lower in the coming months, with oil prices to remain low before beginning a gradual recovery later in the year as U.S. oil output declines. StanChart, however, says there’s some technical support in the short-term, with fundamentals remaining fairly positive. Recently,  StanChart cut its 2025 oil price forecast to $61/bbl from $76 and also lowered its 2026 forecast to USD 78/bbl from $85 citing Trump’s tariffs.

By Alex Kimani for Oilprice.com

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Indorama Urges Stronger Innovation Drive For Oil, Gas Sector ….Targets $3b Investment

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Indorama Eleme Petrochemicals Limited (IEPL) has called on the government as well as oil and gas stakeholders to tackle the sector’s innovation and downstream gaps to unlock its vast economic potential.

While prioritising sustainability, the firm said plans are underway to expand its petrochemical and fertiliser plants with a $3 billion investment to become Africa’s largest petrochemical and fertiliser hub.

The plan, according to the company would be executed within the next five years.

Managing Director, IEPL, Manish Mundra made the disclosure in his keynote address at the 7th Mid/Downstream Oil and Gas Conference organised by the Centre For Gas, Refining and Petrochemical Engineering (CGRP), University of Port Harcourt in conjunction with the Nigerian Society of Chemical Engineers (NSChE), and themed  “Repositioning Nigeria’s Petrochemicals Sector for Industrial Growth, Innovations, and Sustainable Development”, in PortHarcourt.

Represented by the Head, Fertiliser Manufacture, Indorama Eleme Fertiliser and Chemicals Limited, Upendra Singh, Mundra noted that the country has the capacity to step up innovations to fill the gap in the oil and gas sector as she holds Africa’s largest gas reserve and second-largest oil reserve.
While noting that the country’s refining capacity is expanding rapidly, Mundra, however said the nation still imports the bulk of its plastic, fertilizers, specialty chemicals among others adding that Nigeria has what he described as “the field sack advantage, which is underused”.
He said repositioning the sector means converting hydrocarbon endowments into diversified high-value industrial output.

“Nigeria again has the resource, large resource base for oil and gas, which is exported as LNG or converted into polymers, fertilizers, and downstream products. Past 5 years have changed the arithmetic of the choice.

“For this, we need to have the policy reform, like PIA 2021 and subsidy deregulation, which are resetting the investment signals across the value chain as new downstream landscape, large-scale refining and petrochemical capacities are coming up, pushing Nigeria from import dependence toward the next export state status, ” he said.

Mundra pointed out that  increasing population growth, agriculture, construction, and packaging keep lifting African demand for polymers and fertilizers, including the Middle East crisis, urging Nigeria to capitalise on it.

“We need to capitalize this. Middle East crisis and logistic challenges will make Africa more attractive for the West. We have the highest massive gas stock in Africa, more than 206 TCF, which can be converted into orifins, poli, ammonia, urea, and intermediate integrated—integrated complexes. It can further be converted into resins and packaging pipes, textiles, for domestic consumption or exported to West and Central Africa, ” he stated.

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Oil Exploration Resumption: OYF Demands 500 Job Slots 

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Youths of oil-rich Ogoni ethnic nationality in Rivers State under the aegis of Ogoni Youth Federation (OYF) have demanded 500 job slots from the Nigerian National Petroleum Company (NNPC) Limited following the planned resumption of oil exploration in the area.

This figure is against the already released 40 slots by the company.

Consequently, the youths have moved to convene a national congress of youths to address issues relating to the oil exploration, which has sparked palpable divisions in the area.

Speaking during the inauguration of the Planning Committee for the Congress, in PortHarcourt, at the weekend, the President-General of OYF, Worldwide, Engr. Legborsi Yamaabana, described the congress as urgent, and targetted at addressing all issues arising from the planned oil resumption.

Yamaabana commended President Bola Ahmed Tinubu on his efforts in giving attention to reopening oil businesses in the area, noting however, that Ogoni stands at a crossroads following the issues surrounding the oil resumption.

He said “The Ogoni nation stands at a critical crossroads in its history. We acknowledge the renewed political attention of the Federal Government of Nigeria under the leadership of His Excellency, President Bola Ahmed Tinubu (GCFR), particularly regarding the proposed resumption of oil and gas exploration in Ogoniland after more than three decades of suspension.

“While we recognize this development as a significant national conversation, we emphasize that any engagement concerning Ogoniland must be anchored on the principles of environmental justice, equitable benefit-sharing, and the protection of the dignity, rights, and future of the Ogoni people especially our youth, who remain the custodians of tomorrow.

“The Ogoni struggle is not merely historical; it is living, evolving, and central to the future of sustainable development in the Niger Delta and Nigeria at large.”

He called for calm over the 40 job opportunity given to the area by the NNPCL, insisting that such allocation was insufficient compared to the contribution of Ogoni to the economy.

Yamaabana rather requested that NNPCL, as a matter of importance, give 500 job slots to youths of the area,

In the interim, the leadership of OYF Worldwide has observed the unnecessary tension and uproar surrounding the reported 40 slots of employment opportunity allocated to Ogoni youths in NNPCL and its subsidiaries, as part of Federal Government confidence-building measure toward the resumption of oil and gas activities in Ogoniland.

“We wish to state clearly that this 40 slots is paltry and insignificant given the scale of our sacrifice; and as such, it should not become a source of internal rancour, division, or friction among our people.

“We strongly appeal to all Ogoni political, traditional, and community leaders to sheath their swords, maintain calm, and refrain from unnecessary squabbles over crumbs.

“Without preempting the sovereign deliberations of the upcoming Congress, let it be noted that Ogoni youth will not settle for tokenism.

“At the upcoming Congress, we shall formally demand a minimum of 500 direct employment opportunities within the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries for qualified Ogoni youths, who have been economically sidelined and left inactive throughout this 33-year stalemate.”

Following the issues raised, Yamaabana said that convening of the Ogoni Youth National Congress 2026 has become an urgent necessity, regretting that some individuals were working to truncating the efforts of the Federal Government toward peaceful resumption if oil exploration in the area.
He, however, tasked the committee to amongst other terms of references design an operational framework for the Congress and ensure a Broad-based mobilisation of other youth groups, stakeholders for the Congress that would be held both physically and virtually.

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