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Good Evening Meridian...repeating a question from a few days ago Have you met Dr. D.? Cheers. Ken
www.offshorewestafrica.com Carlos Gomes- Chairman of the Board of Nigeria-Sao Tome & Principe Joint Development Authority
"Nigeria-Sao Tome -JDA, the Journey so Far"
Tues. March 14,2006 9:00-11:00 a.m.
Nigeria to showcase oil, gas potentials at OWA 2006
By Sulaiman Salau
THE forthcoming 10th Offshore West African (OWA) Conference and Exhibition has been identified as a special colloquium to unveil the abundant opportunities in the Nigerian oil and gas industry.
Besides, the event slated for between March 14 and 16, 2006, according to chairman of the country's Oil and Gas Industry Planning Committee for the event, Dr. Levi Ajuonuma, is also to encourage investors to partake in exploiting the resources in the sector for the benefit of stakeholders and the citizenry.
The conference to be held at the Abuja Sheraton Hotel and Towers, Ikeja, Lagos, Ajuonuma said is expected to parade delegates from more than 23 countries around the globe.
"Our participation is hinged on the fact that this annual event helps to expose many more Nigerian professionals at cheaper cost, to the latest technology in deep offshore Exploration and Production (E & P)," he said.
New information to be acquired at the event, according to him, can also be adopted for the development of the Nigerian petroleum industry, adding that the event will also help in facilitating the formation of partnership and alliances between Nigeria entrepreneurs and prospective investors.
The exhibition, which is holding for the fifth time in Nigeria, is theme, "Nigeria Deep Water - Discoveries, Opportunities and Challenges".
The Nigeria oil and gas industry, through a highly improved exhibition and very active participation at the technical conference, he noted, is expected to showcase:
* the increasing level of E & P activities in the country's offshore and deep water basins;
* unfold the immense investment potentials the region hold for discerning investors;
* significant milestones being achieved by Nigerian companies in the delivery of major offshore and deep water projects;
* areas of possible partnership between the Nigerian companies and foreign manufacturers and investors.
Ajuonuma stressed that already, concerted efforts are being made to realise the national objectives of increasing crude oil reserve to 40 billion barrels and production capacity to 4.0 million barrels per day by 2010, for this to be achieved, he noted that commensurate investments in exploration and production must be made. These objectives throw up opportunities for investors and E & P companies to bid for allocation of blocks.
However, the recently concluded year 2005 licensing rounds where a total of 44 out of 77 blocs were awarded to successful bidders, he noted, attests to the competitiveness and immense opportunities which exist in the Nigerian oil and gas sector.
"Apart from over $1 billion which was realised as signature bonuses from the bid round, the exercise is expected to open up the nation's sedimentary basins, offshore and deep-water blocs for exploration and development", Ajuonuma added.
Also, identifying the area of gas monetisation and the target by the Federal Government to end gas flaring by 2008, as another opportunity, he explained that this would mean higher level of local utilisation of gas as well as processing if for export, signifies that the sector offers viable prospects for foreign and local services companies in the areas of engineering procurement, project management and gas infrastructures among others.
Dr. D is going to be busy.... www.cwcnog.com Confirmed Speakers
Dr. Edmund Daukoru, Hon. Minister of State for Petroleum Resources
Mrs. Ammuna Lawan-Ali, Permanent Secretary, Ministry of Petroleum Resources
Eng. Funsho Kupolokun, Group Managing Director, NNPC
Dr. Edmund O Ayoola, Group Executive Director, E&P, NNPC
Chief Sena Anthony, Chair, NNPC Committee on Gas Policy, NNPC
Eng. Smart Fadayomi, Group General Manager LNG & Power, NNPC
Eng. J.A. Akande, Group General Manager Nigeria Content, NNPC
Dr. Levi Ajuonuma, Group Public Affairs, NNPC
Carlos Gomes, Chairman of the Board, Nigeria – São Tomé & Príncipe Joint Development Authority
Jacques Marraud de Grottes, Managing Director/ Chief Executive, Total Upstream Nigeria
Chris Haynes, Managing Director and CEO, Nigeria LNG
Jim Pearce, Managing Director, Addax Petroleum Development (Nigeria) Limited
REMINDER : March 14-16, 2006 Abuja, Nigeria www.offshorewestafrica.com
Looks like a busy day for Dr. D. next Tues. ...have you met him?
First class or coach?
Will you be in attendence once again on Mar. 14?
Meridian..last night Barry Morgan stated that Blocks 2 thru 6 go next week, Can you comment? tia
Wait on Obo wildcat
By Upstream staff
Chevron this week reached target depth on its Obo-1 wildcat in the Joint Development Zone (JDZ) managed by Nigeria and Sao Tome&Principe, writes Barry Morgan.
Logging by Transocean drillship Deepwater Discovery started on Tuesday amid ongoing speculation of a discovery, which many view as a litmus test of oil potential in the Gulf of Guinea deep water.
However, no announcement on the well's findings is expected until April.
Partners anticipate an agreed statement will emerge after a technical committee meeting scheduled later this month. Chevron operates Block-1 and is partnered by ExxonMobil and an alliance of Dangote-Energy Equity Resources-Afren.
The Abuja-based Joint Development Authority reiterated its intent to formally ratify the remaining JDZ blocks 2, 3, 4, 5 and 6 on 14 March.
--------------------------------------------------------------------------------
10 March 2006 00:01 GMT | last updated: 10 March 2006 00:01 GMT
Friday, March 10 2006
Nigeria, S’Korea sign $486m deal for 2 oil blocks
Ihuoma Chiedozie, Abuja
The Federal Government on Thursday sighed a Product Sharing Agreement for two oil blocks with the South Korean government.
The two oil blocks have a joint Signature Bonus of $486 million.
The signing followed the conclusion of talks between visiting President of Republic of Korea, Mr. Moo-Hyun ROH and President Olusegun Obasanjo.
The Korean President arrived Nigeria on Thursday afternoon with an 18-member delegation for a three-day visit.
Both countries also signed two memoranda of Understanding.
The MOU were on joint energy cooperation and collaboration in the field of transport.
The PSA, which was signed between the Nigerian National Petroleum Corporation and the Korean National Oil Corporation were for two oil blocks - OPL 323 with a Signature Bonus of $310 million and OPL 321 with a Signature Bonus of $176 million.
Nigeria West Oil Company Limited will execute the OPL 323, while Equator Exploring Nigeria Limited will execute the OPL 321.
During the talks, President Obasanjo emphasized the need to promote economic cooperation and expand investment, calling for stronger participation of Korean companies in the Nigerian energy, infrastructure and manufacturing sectors.
Obasanjo thanked the Korean leader for encouraging Korean firms to invest in Nigeria's oil and gas, and power generation sectors, and assured him that the agreements signed during the visit "will be scrupulously implemented".
The Korean President explained that his country signed the agreements in recognition of Nigeria's strategic role in Africa.
He disclosed that based on the new vision named "Korea's Initiative",
Korea's Overseas Development Assistance to Africa will increase to about $100 million by 2008 compared to this year's $31.9million including grant aid and soft loans.
Last year, Korea sent a total of $31 million of Overseas Development Assistance to African countries, representing about 7.5 percent of the total $400 million of ODA budget used by the government last year.
The PUNCH, Friday, March 10, 2006
http://www.businessdayonline.com/
March 6th, 2006
Nigeria to showcase potentials at OWA
Edmund Daukoru, OPEC president with Malcolm Wicks, UK Minister for Energy at the OPEC headquarters in Vienna
The offshore West African conference is the sub-regional equivalent of the offshore technology Conference (OTC) hosted every year in Houston, United State.
Olusola Bello
This year’s Owa which will be taking place in Abuja between 14 and 16 of March 2006, is West African sub region most famous Oil and gas industry event for the development of offshore resources in the fields of drilling, exploration, production and environmental protection.
Recognized as the largest annual offshore technical conference and exhibition, the event will draw more than 10,000 representatives from over 30 countries.
The attendees will include ministers, industry leaders including Chief Executives of major old Companies, scientists, Managers and dignitaries.
According to the chairman planning committee, Levi Ajuonuma, This will be the fifth time Nigeria will hold the Conference and it is planning to make, the hosting a permanent feature. The hosting of Owa will help expose Nigeria’s Oil and Gas potential.
Nigeria’s permanent hosting and active participation in the event will also
•
Expose Nigerian professionals to the latest state of the art technologies in deep offshore E and P.
Encourage the application of new skills for the development of the Nigerian Petroleum industry.
•
It will draw attention to Nigeria’s deep offshore potentials and attract new investment into the Petroleum industry.
•
Facilitate formation of partnership between Nigerian entrepreneurs and prospective investors attending the event.
Encourage increase in local content in the Petroleum industry and generate enormous multiplier effects on other sectors of the economy such as the hospitality business.
Nigeria’s participation will showcase the potentials of the Gulf of Guinea. One of its aims is to expand the frontiers of Oil and Gas exploration and production in West Africa with particular reference to the Gulf of Guinea, which is showing great promise in the joint development Zone (JDZ) owned by Nigeria and Sao Tome &Principe. The deliberate focus on the Gulf of Guinea has the added advantage of attracting the latest deep offshore technologies being applied in the Gulf of Mexico to the region.
Production from West Africa has been relatively flat until recently, but the region will capitalize on large offshore discoveries and reserves yet to be found that will increase production 75 percent by 2009 and probably maintain that level for at least six more years.
The year 2004 marked a turning point in production for the area after years of successful exploration with few new projects brought upstream.
The largest project bought online to date was Exxon Mobil’s Kizomba A off Angola, and it still has Kizomba B, C and D in the planning stages. Total brought Girassol on production. On production of block 17 off Angola, and it still have Dalia and a host of smaller fields to put into production on the same block, probably in 2007.
Nigeria also is primed for big move with Shell’s Bonga and Bonga South West ramping up. Exxon Mobil’s Erha is due on stream this year. By 2007,Chevron Texaco’s Agbami and Total’s Akpo should start flowing Oil.
With African countries now demanding simultaneous development of Gas from these fields, Gas production will surge as well.
Putting the production pictures in perspective, senior analyst Stewart Williams said Nigeria is the giant in this part of the Oil path will be 22billion bbl of on stream or being developed by 2009and another 5 billion bbl likely to developed after that time.
Angola has the most growth potential, with approximately four billion bbl produced, 10billion bbl under developed and another four billion bbl likely to be developed.
Catriona Boggon, Wood Mackenzie analyst, looked at the similar Countries, starting with Garbon, which holds the next largest position. It has produced 3 billion bbl and is developing another 750 million bbl and has another 500 million bbl in the likely category. Next in the line size are the Congo, Equatorial Guinea, Cameroon, Chad and Mauritania. Chad boasts a lot of potential for unexplored areas.
Australia’s Woodside petroleum has been active offshore Mauritania with Chinguetti (130million bbl) and Tiof (300 million bbl) fields and the more recent Tivet-1 discovery that could be tied back to Chinguetti. Looking to the future, Williams said West Africa produced 4.1 million bbl of liquids in 2003 and should reach 7.1 million bbl by 2009.
Among the countries, probably only Nigeria will show growth from onshore properties.
Peak production for Nigeria should reach 3.6 million per day by 2011. That’s lower number than the government projection of 4million b/d by 2010, but Nigeria faces project delays from problems with joint venture funding, Gas production requirements, civil unrest and other project delays. OPEC quotas may also stifle development.
All the production will require substantial amounts of cash, William said. Onshore spending probably will remain in the area of us and 2.5billion a year thorough 2010, but Shallowwatwer spending probably peaked at about $3billion last year and will decline slowly to approximately $1.5 billion by the end of the decade.
The big money will go into deep water as spending rises from 4.6 billion this year to billion in 2005 and decline to about $1.5 billion in 2010 on field under development and likely to be developed, William said. He estimated total spending for West Africa onshore and offshore from less than $6billion in 2000 to a peak of more than $13 billion in 2006.
we went from .295 to .865 in 17 trading days! IMO they hit a monkey...and it's only a matter of time before the monkey breaks out of the cage!
Went over the C-Span program with Daukoru in D.C. yesterday...with about 1 min left I'm positive I saw Jeter on camera. Would have loved to have been the waiter serving that table!
Total Depth Reached on B-DX1 Well Offshore Nigeria
Source: www.gulfoilandgas.com 3/1/2006, Location: Africa
Testing
Peak Petroleum Industries Nigeria Ltd. and Equator Exploration Ltd. announced that the 'B-DX1' well, located on the OML 122 licence area, offshore Nigeria, has reached total depth. OML 122 is located 25-60 km offshore in water depths of 40-300 metres and covers an area of 1,295 sq. km on the Western Niger Delta, east of the giant Bonga Field (estimated 1.4 billion barrels) on OML 212 and southwest of EA Field on OML 79. B-DX1 is an exploratory appraisal well on one of the discoveries made in OML 122 in the 1970's.
The B-DX1 well has reached total depth at 3545 metres (BRT). High pressure gas has been encountered in an additional and deeper zone than those previously penetrated and announced. Influx of gas has prevented the logging of this zone. As the well was not designed to cope with the high pressures (i.e. > 8000 psi,) this deeper zone has been plugged without testing. However, it has been shown that hydrocarbons do exist in the deeper horizons. The zone will be fully evaluated in a later well, specifically designed to handle the high pressures.
From 3D seismic and wireline logging data, the independent technical advisers of Peak and Equator estimate the total gas-in-place in the sands evaluated as 900 billion cubic feet. With the addition of the high pressure gas zone, it is anticipated that gas-in-place in the discovery will reach the Peak/Equator Joint Operating Team target of 1 TCF. Subject to further drilling, the oil-in-place is preliminarily estimated at 130 million barrels. All the reservoir sands and the crude oil, with a gravity of 40 degrees API, exhibit excellent qualities. Operations continue on the B-DX1 well with extensive production flow testing of the oil rim and of the main gas reservoir.
Peak and Equator continue engineering work on a scheme for developing the oil reservoir based on sub-sea horizontal wells and a floating processing, storage and offtake system (FPSO). Orders for long-lead time equipment are being placed and negotiations for a suitable FPSO continue. Subject to further engineering, reservoir evaluation and drilling, it is anticipated that oil production could commence in the first half of 2007. Equator is funding the cost of two wells in the field to earn a 40% economic interest in the field area.
The second well in the OML 122 drilling campaign will immediately follow the B-DX1 well in mid-March and will explore a promising, large structure south of B-DX1 in a water depth of 135 metres. This structure, the Owanare prospect, is covered by 3D seismic data acquired in 1999 and recently re-processed and interpreted by Peak, Equator and their technical advisors. It is a large structure with the potential for 3+ TCF of gas-in-place.
The aim of the initial two wells being drilled by Peak/Equator is to prove-up significant volumes of gas as potential supply for the numerous gas-utilisation projects currently underway or in planning stages in Nigeria within close proximity to OML 122. The secondary objective is to find commercial volumes of oil and condensate on the block. Additional appraisal and development wells will follow the drilling of the Owanare prospect.
Commenting on the B-DX1 well, Wade Cherwayko, Chief Executive Officer of Equator, said: 'Peak and Equator look forward to the testing of the gas and oil reservoirs that have been established by the B-DX1 appraisal well. Our target figure for gas reserves has been achieved and good progress is being made for a commercial crude oil development, which could be on production in early 2007. We look forward to the spudding our second well on Block OML 122 in mid-March to test the very large (+3 TCF) Owanare exploration prospect.'
Nigeria Oil & Gas 1 >> Nigeria Oil & Gas 2 >>
ZW
Peak and Equator Encounter Additional Gas Zone Offshore Nigeria
Thursday, March 02, 2006 Printer Friendly Email this article
Peak Petroleum and Equator Exploration Ltd have announced that their B-DX1 well, located on the OML 122 license area, offshore Nigeria, has reached total depth. The B-DX1 is an exploration/appraisal well on one of the discoveries made in OML 122 in the 1970's.
According to the pair the B-DX1 well reached total depth at 3,545 meters and high-pressure gas has been encountered in an additional and deeper zone than those previously penetrated. The influx of gas has now prevented the logging of this zone.
As the well was not designed to cope with the high pressures (above 8000 psi,) this deeper zone has been plugged without testing. However, it has been shown that hydrocarbons do exist in the deeper horizons. The zone will be fully evaluated in a later well, specifically designed to handle the high pressures.
From 3D seismic and wireline logging data, the independent technical advisers of Peak and Equator estimate the total gas-in-place in the sands evaluated as 900 billion cubic feet. With the addition of the high-pressure gas zone, it is anticipated that gas-in-place in the discovery will reach 1 Tcf. Operations continue on the B-DX1 well with extensive production flow testing of the oil rim and of the main gas reservoir.
Commenting on the B-DX1 well, Wade Cherwayko, Chief Executive Officer of Equator, said: "Peak and Equator look forward to the testing of the gas and oil reservoirs that have been established by the B-DX1 appraisal well. Our target figure for gas reserves has been achieved and good progress is being made for a commercial crude oil development, which could be on production in early 2007. We look forward to the spudding of our second well on Block OML 122 in mid-March to test the very large (+3 tcf) Owanare exploration prospect."
OPEC Pres: Seeking US Investment in Nigerian Oil Sector
by Maya Jackson Randall
FWN Financial News 3/2/2006
URL: http://www.rigzone.com/news/article.asp?a_id=29959
WASHINGTON, Mar 01, 2006 (Dow Jones Commodities News via Comtex) By Maya Jackson Randall OF DOW JONES NEWSWIRES
Nigerian oil minister Edmund Daukoru said Wednesday his visit to Washington this week was intended to stress the need for investment in Nigeria's oil industry, to help it deal with the problems that have cut off almost 20% of its daily crude oil output.
"We wanted to let the U.S. know we're ready to take on investment in this sector in Nigeria," Daukoru told reporters after meeting U.S. Energy Secretary Samuel Bodman. "This is a problem that has to do with development," he said referring to the attacks by rebels on key oil facilities in the Niger Delta.
"In the area of development, we will need further assistance from the U.S. to protect future energy supply," said Daukoru, who is also current president of the Organization of Petroleum Exporting Countries.
Nigeria, which produces 2.5 million barrels a day, is the fifth-leading supplier of foreign oil to the U.S., accounting for about 1 million barrels a day in imports. It's also West Africa's diplomatic and political heavyweight.
For the second time this year, rebels in the African nation's Delta region have attacked oil operations and taken hostages. Six hostages were released Wednesday, but two Americans and one Briton remained in captivity.
Daukoru said he's optimistic that the hostage-taking can be resolved soon, adding that it will take "a couple of weeks" for production to be back in the market.
U.S. Department of Energy spokeswoman Anne Womack Kolton later said the Nigerian minister was referring to the need for private sector investment in Nigeria's oil industry. She said the meeting with Bodman happened at Daukoru's request.
Copyright (c) 2006 Dow Jones & Company, Inc.
Emory S. Land heads south for Gulf of Guinea
USS EMORY S. LAND, Mediterranean Sea — Sailors from Naval Mobile Construction Battalion 7 load water here Feb. 25, 2006, as the submarine tender gets underway for the Gulf of Guinea. The deployment is part of a larger U.S. effort towards greater stability in Africa. Emory S. Land will spend six weeks in the region conducting exercises, training and community relations with several countries including Gabon, Sao Tome and Principe, Congo and Angola. (Navy photo by Petty Officer 2nd Class Jonathan Kulp)
Release Date: 27 Feb 2006
NAPLES, Italy — As part of a larger U.S. interagency effort towards greater stability in Africa, about 1,400 Sailors and Marines aboard the submarine tender USS Emory S. Land deployed to the Gulf of Guinea region in late February 2006.
Navy Vice Admiral J. Boomer Stufflebeem, U.S. 6th Fleet commander, says the deployment is part of a strategy to improve theater security in the region.
U.S. European Command and U.S. Naval Forces Europe's efforts in Africa "focus on strengthening partnerships and improving overall maritime security," Stufflebeem said.
Specialized training teams joined the Emory S. Land crew to help select nations in the Gulf of Guinea bolster existing maritime capabilities.
"We hope to initiate a series of security cooperation activities that will promote positive working relationships between the U.S. and [Gulf of Guinea] nations, enhance regional stability and foster positive relations among regional partners," the admiral said.
The maritime safety and security training events will focus on domain awareness, leadership development, natural disaster response, medical care and disease prevention.
Stufflebeem said the deployment is a "great example" of the Navy’s creativity to focus efforts south and east of Europe.
"We are committed to be responsive in assisting emerging partners in Africa to develop indigenous maritime capability in order to preempt the elements of instability that may contribute to lawlessness and extremism," he said.
Gulf of Guinea nations participating in this deployment include Sao Tome and Principe, Gabon, Congo and Angola.
especially if the target is on Joes' head! em
AXC 23.00 +.25
AXC 22.75 +.59
At least we know Dr. Daukoru will be in the country March 14. He is giving the keynote address at the Offshore West Africa Oil Conference in Abuja the night of the 14th. www.offshorewestafrica.com
Monday, February 27 2006
JDZ: Nigeria, Sao Tome disagree
Michael Faloseyi, and Clara Nwachukwu
The signing of the Production Sharing Contract for Block 4 in the Joint Development Zone being operated by Nigeria and its neighbouring Sao Tome and Principe has been suspended.
JDZ sources, told our correspondents that the suspension of the signing of the PSC on Friday, in Abuja, was as a result of “some minor procedural disagreements on the PSC.”
However, the Joint Development Council has settled the matter and rescheduled the signing of the PSC within the next two weeks.
A JDZ source confirmed that a minor disagreement arose because of “a last minute request by the Sao Tome and Principe representatives to approve the PSC before the consortium signed it.
“Their request was not legitimate because the details of the PSC would have been resolved by the JDC. But their request had to be treated diplomatically, and the matter has been resolved amicably.”
Nigeria’s Minister of State for Petroleum Resources, and Chairman of the JDC, Dr. Edmund Daukoru, expressed the government’s displeasure over the delay and asked the Sao Tomeans to apologise for the setback.
He said, “This is not good. It does not send the right signal to the outside world in terms of doing business with the JDZ.
“Nigeria takes no responsibility for this embarrassment. What happened here today would not jeopardise the spirit of the agreement on the JDZ. This is still better than fighting on a piece of land and Nigeria will try its best to implement the treaty.”
The JDZ is jointly operated under a partnership agreement of 60 to 40, in favour of Nigeria.
Friday’s disagreement was caused by the inability of the parties to agree to the terms of the Joint Operating Agreement for Block 4 in the zone.
Representatives of the consortium of oil companies that include Addax, Environmental Remediation Holding Company, Godsonic Oil and Gas, Hercules and Centurion that had gathered for the signing ceremony for the production sharing contract left the venue disappointed.
Block 4 was awarded to the consortium that had a multinational oil company, Noble, as the operator during the 2004 bid round. Noble’s withdrawal had caused the initial controversy until Addax, another member of the consortium, took over as the operator.
A PSC is the document guiding the relationship between the state parties and operators or the oil companies while JOA guides relationships among the oil companies on an oil block and has no direct impact on the state parties.
Not even the explanation by the Nigerian party that Sao Tome and Principe had no business with the JOA could dissuade that country’s representatives from their hard stance, thereby frustrating the signing of the PSC.
Attempts to get the reaction of the Chairman of the Addax Group, Mr. Jean Claude Gandur, who flew in from Geneva for the signing ceremony were rebuffed.
The PUNCH, Monday, February 27, 2006
Meridian: Can you elaborate on J.C. Gandurs' speech in Abuja last week? tia
Militants to US: Steer Clear of Niger Delta
Say ‘No deal until Dokubo’s release’
From Segun James in Warri and John Iwori in Port Harcourt, 02.24.2006
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The crisis in the Niger Delta assumed international dimension yesterday as the Warri Ijaw Peace Monitoring Group (WIPMG) sent a warning to the government of the United States of America (USA) to steer clear of the Niger Delta or its forces shall be disgraced if it dares the people.
The Chairman of WIPMG, Chief Patrick Bigha in a statement in Warri said that information at their disposal revealed that the US government intends to send its Marines to assist the Nigerian Army in rescuing the nine expatriate hostages.
Bigha said such action will not only be resisted by the people but it shall end in disaster for the American forces.
“Take note that the Niger Delta is not Afghanistan or Iraq and any attempt to dare us will end in a blood bath and the greatest defeat in the history of the American Army”.
Bigha warned the Federal Government not to make the mistake of inviting the Americans as it would be counter productive in the end.
Meanwhile as the Federal Government intensifies effort to secure the release of the nine expatriate oil workers held hostage in the Niger Delta, their captors have said no negotiation would start until the leader of the Niger Delta Peoples Volunteers Force (NDPVF), Alhaji Mujahid Dokubo-Asari is released.
The spokesperson of the Movement for the Emancipation of the Niger Delta (MEND) and Leader of the Martyrs' Brigade, Cynthia Whyte, said in a statement circulated online that time had passed when the groups were listening to the pleas of Ijaw elders.
The statement said the hostages would be held for as long as the militants would determine, adding that if government make any attempt at testing their resolve, they would kill the hostages.
"In a show of goodwill to the international community and as a show of reverence to our elders, we succumbed to pressures to release the earlier seized hostages. Rather than begin to orchestrate processes that will jumpstart positive dialogue directed towards improving the quality of life of our people, the Nigerian state began its campaign to decimate our population by killing our people so that they can reap our oil with ease and zeal. Enough is enough!!
"Any negotiation that does not begin with the release of our illustrious son and flag bearer of the Ijaw struggle, Alhaji Mujahid Dokubo-Asari is a waste of time. Any attempt to circumvent the wheel by the despotic Nigerian state will be met with the angers of our ancestors whose spirits we fight with today.
"We shall keep the hostages and there shall be no tea party any more. We will no more be given to the intervention of our elders who will only be used and dumped by the agents of the Nigerian state who had the guts and effrontery to label us rascal elements and terrorists. If they are bent on testing our resolve, we will kill all the hostages", they warned.
They further restated their earlier call for all foreign oil prospecting companies to evacuate the region, as the attacks on oil workers and installations would not cease until they have achieved their aims.
"This is not the time for talk as we are too angry to talk. We have been pushed to the wall and the enemy must crawl.
"Let us once again restate our warning to every iota of oil and gas operations in the Niger Delta especially the chief imperialist collaborator of the Nigerian state. Leave now or we will hit you so hard that you will never recover again", they warned.
Yeah..can we forego the hot car talk for a while? I've been here for almost 3 1/2 years..I just want to break .97 and go from there..TY
Doug..is that the same Blog Boy who believes this coming Friday is Feb. 28?
if Daddy like..you pay now!
Doug..I found it very interesting how Barry went from personna non gratta to go to the head of the class in a few short weeks! Ken
That's Mr. Cecil to you! Are you ready my friend? It's been a LONG wait!! Ken
Re: Joe I don't know how to spell alzhiemers either..is it i before e?, but I do know how to spell Wild Turkey at 2:32 a.m. I'm just getting started Joe..remember,.."revenge is a dish best served cold!" em Ken
There's also the question of the Production Sharing Contracts, whose signing by the Joint Ministerial Council is set for its Friday, Feb. 28 meeting, just three trading days from now.
Joe needs to get a new calender..the one I'm looking at shows Feb 28 being a Tuesday! em Ken
Niger Delta again: Nine expatriates kidnapped •US demands immediate release
Sola Adebayo with agency reports
The security situation in the Niger Delta region assumed a worrisome dimension on Saturday as Ijaw militants abducted nine expatriate oil workers and set fire on the multibillion naira crude oil loading platform of the Anglo Dutch oil firm, Shell Petroleum Development Company, in Delta State.
The militants also blew up the flow lines of the Nigerian National Petroleum Corporation conveying crude oil to Warri and Kaduna refineries at Madagho Community in Warri South West Local Government Area of the state.
The expatriates were employees of Wilbros Nigeria Limited, an oil servicing company to SPDC.
Findings by our correspondent revealed that the expatriates were kidnapped from a barge of Wilbros at Forcados/Yokri site of SPDC in Escravos Estuary, near Forcados in Warri South West Council.
It was gathered that the hostages were three Americans, two Britons, two Egyptians, one Filipino and one Thai.
Their names were given as: Makon Howkins, Coydy Oswalt and Rospel Spell, (Americans); John Hudspith, and Shadety Senary, (Britons); Feisal Mohammed and Semsak Mhadmhe, (Egyptians); Anthony Santos, (Filipino) and Arab Suwama (Thai).
A reliable security source said two soldiers were wounded before the hostages were abducted and whisked to an unknown place.
Their whereabouts was yet to be ascertained as at press time on Saturday evening.
Unconfirmed reports even claimed that five soldiers were feared killed during the invasion by the militants.
Saturday’s incident occurred 19 days after four expatriate oil workers kidnapped by the militants in the creeks of Bayelsa State, regained their freedom.
A group, Movement for the Emancipation of the Niger Delta, which claimed responsibility for the fate of the four oil workers, thereafter issued a fresh ultimatum for the expatriate oil workers to leave the region.
The MEND announced its plan to launch another onslaught against the Nigerian oil industry at the expiration of the ultimatum.
The ultimatum expired last Sunday.
Just last Thursday night, the MEND declared what it called “Operation Dark February” and asked the oil multinationals and their contracting companies to leave the Niger Delta region.
However, findings by our correspondent further revealed that last week’s invasion of Okerenkoko Community, said to be the operational headquarters of the Ijaw struggle in the region, by the troops of the Joint Task Force in the Niger Delta, code-named ‘Operation Restore Hope’, reinforced Saturday’s reaction by the militants.
The MEND, which reacted to the deployment of M135 ground attack chopper on two occasions by the JTF, promised to attack the nation’s economic assets in the region in retaliation.
Meanwhile, our correspondent learnt that the militants blew up the flowline of the NNPC and launched arson attack on the SPDC’s loading platform located in the high sea at 2am, on Saturday.
It was learnt that the fire ravaged the loading terminal until 9am when SPDC’s fire-fighters over flew the area and put out the fire.
The extent of damage to the facility could not be ascertained on Saturday night.
A reliable source in SPDC said it might lead to the suspension of loading of crude oil for exportation by the Anglo Dutch oil firm.
Further investigation by our correspondent revealed that the NNPC’s flowlines to Kaduna and Warri refineries were ruptured by dynamite.
The flowlines were still on fire on Saturday evening.
The incident heightened fears of imminent fuel scarcity in the country as the operations of the refineries may be disrupted on the account of lack of crude .
The Warri refinery has been shut in the past three weeks due to non-availability of crude oil for operation.
Its flow line, identified as System 2c, was vandalised at a point in Okerenkoko in January, before the latest development on Saturday.
It was feared that the Kaduna refinery may also be shut whenever it exhausts its stock of crude oil.
The Corporate External Relations Manager of SPDC, Mr. Don Boham, confirmed the abduction of the expatriates and the arson attack on the loading platform, adding that the management of the oil firm was assessing the secuirty situation in the region and the extent of damage to its facilities.
Boham, in a telephone interview with our correspondent, added that the incident had been reported to the Federal and Delta State governments, as well as security agencies.
The General Manager, Public Affairs Division of NNPC, Mr. Levi Ajuonuma, also confirmed the destruction of the corporation’s flow lines serving the two refineries in a telephone interview with our correspondent on Saturday afternoon.
Ajuonuma added that the incident was being investigated.
Meanwhile, military top brass met in Effurun on Saturday afternoon to appraise the incident and work out strategies to deal with the militants.
The meeting held at an undisclosed location in Effurun and presided over by the Commander of JTF, Brig. Gen. Elias Zamani, has the second-in-command of JTF, Brig. Gen. Mike Okedokun, Head of the State Security Service Task Group, Mr. Sam Kalama, the Commanding Officer of NNS Delta, Warri Naval Base, Navy Capt. Mufutau Ajibade, and the Commanding Officer of 93 Battalion, Effurun, Lt. Col. Jalingo, as well as the Nigerian Police Force and Airforce Task Commanders, in attendance.
Although the outcome of their meeting was not made public, our correspondent learnt that intensive patrol of the creeks and aerial surveillance in search of the militants was part of the decision taken.
Consequently, the troops were conveyed in three boats to the troubled scenes, while two Airforce aircraft, including M135 ground attack chopper, embarked on aerial surveillance shortly after the meeting on Saturday evening.
It was learnt that the troops who encountered the militants at Robert Point, a riverside location in Warri South West Council, were overpowered by the irate youths.
Zamani, in a telephone interview with our correspondent, said his outfit was trying to establish contact with the militants, adding that the whereabouts of the expatriates was yet-to-be ascertained.
Zamani said the JTF would only employ military option to free the hostages as a last option.
In the meantime, the Federal Government has on Saturday strongly condemned the latest abduction of nine oil workers in the Niger Delta, describing the action as criminal and unlawful.
In a statement by the Minister of Information and National Orientation, Mr. Frank Oweke Jnr, the government said there was no justification whatsoever for such criminal act against foreigners and Nigerians in general.
“This action must be condemned by all persons of goodwill within and outside the country and no attempt should be made to clamourise their criminal perpetrators.”
While advising the militants to quickly retrace their steps, the government promised that everything was being done to speedily secure the release of the captives.
The statement reads in part:
“The Federal Government has noted with concern and regrets, the latest incident of hostage-taking by criminal elements in the Niger Delta.
“This incident is purportedly in response to an alleged attack by the Military, but the Federal Government wishes to state that no such attack ever took place.
“The Joint Task Force on security in the Niger Delta indeed took action on February 16, 2006 to demobilize five oil barges which it had good reason to believe were being used for stealing crude oil.
“While on surveillance of the area the following day, men of the task force were shot at by unidentified persons but they did no more than return fire in self-defence. These two verifiable incidents certainly do not amount to an attack on the local community as is being alleged.
“The Federal Government therefore condemns this latest incident of hostage taking in its entirety as there can be absolutely no justification for what amounts to a criminal attempt to prevent people from going about their lawful business, create the perception of insecurity and crisis in the Niger-Delta and give further room for some persons to criminally enrich themselves from stealing the nation's resources.
“President Olusegun Obasanjo wishes to assure all stakeholders in the region that everything possible is already being done to secure the speedy release of the hostages through dialogue.
“The President has held an emergency meeting with security chiefs, the governors of Rivers and Bayelsa States and the Managing Director of the Shell Petroleum Development Company and a committee has been established to ensure that the nine hostages are freed unharmed.
“While the Federal Government reaffirms its commitment to fast-tracking development in the Niger Delta to make up for past years of neglect, it wishes to reiterate that criminal activities such as kidnapping and hostage-taking in the region can only retard and impede the implementation of plans and programmes for the benefit of the generality of the people.
“Government advises the so-called militants and hostage-takers in the Niger Delta to abandon their criminal activities in the overall interest of their people and take advantage of the several programmes that have been put in place in the region by the federal, state and local governments for the good of all.”
Meanwhile, the United States called for the unconditional release of three American oil workers abducted in Nigeria on Saturday and said it was working with Nigeria’s government to try to secure their freedom.
“We can now confirm reports that three American oil workers have been taken hostage in Nigeria. We call for their unconditional release and are working with the Nigerian government on this,” said State Department official Noel Clay.
“We have a crisis management team already in action,” he said by telephone from Houston. The company was gathering information and could not discuss details, he said.
SUNDAY PUNCH, February 19, 2006
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•Photograph showing the kidnappers and the released hostages at an unspecified location
Daily Flights Departure
Something tells me Brandhuber is having dinner in Abuja right about now and he doesn't have to worry about picking up the check..there's a new sheriff in town!!
Addax Petroleum Completes C$409.5 Million Initial Public Offering
PRESS RELEASE--CALGARY, Feb. 16-- Addax Petroleum Corporation ("Addax Petroleum") announces today that it has successfully completed an initial public offering of 21,000,000 common shares to the public at a price of C$19.50 per share for gross proceeds of C$409.5 million. The common shares trade on the Toronto Stock Exchange under the symbol "AXC".
Jean Claude Gandur, CEO and Director of Addax Petroleum, commented: "We are delighted with the success of the IPO. There has been a great deal of interest from investors in Addax Petroleum with the offering being favourably received in both North America and Europe. Through the IPO, we have further strengthened our financial position to continue the growth of our business and we look forward to sharing the benefits of expected growth with our investors and employees."
Addax Petroleum has granted to the underwriters an option to purchase up to an additional 2,100,000 common shares at the offering price for a period expiring 30 days following the closing to cover over-allotments, if any, and for market stabilization purposes.
The underwriting syndicate for the offering was led by RBC Capital Markets and Merrill Lynch Canada Inc. as joint bookrunners, was co-led by Scotia Capital Inc., and included CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Canaccord Capital Corporation, FirstEnergy Capital Corp. and Peters & Co. Limited.
About Addax Petroleum:
Addax Petroleum is an international oil and gas exploration and production company focused on Africa and the Middle East. Addax Petroleum is the largest independent oil producer in Nigeria and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average of approximately 74,450 barrels per day for October 2005. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.
This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, common shares of Addax Petroleum to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful and, in particular, is not for release, publication or distribution in or into the United States, Australia or Japan.
The offer and sale of the common shares has not been and will not be registered under the US Securities Act of 1933, as amended, (the "Securities Act") and such shares may not be offered or sold in the United States unless registered under the Securities Act or an exemption from such registration is available. No public offering of common shares of Addax Petroleum is being made in the United States.
Certain statements in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.
For further information
Investor Relations: Mr. Mac Penney, Optimum Public Relations, Tel.: (416) 934-8011, mac.penney@cossette.com
Press Relations: Ms. Marie-Gabrielle Cajoly, Addax Petroleum, Tel.: +41(0) 22 702 94 44, marie-gabrielle.cajoly@addaxpetroleum.com
Source: Addax Petroleum
Nigeria, Sao Tome Inch Forward With Deals
(Copyright © 2006 Energy Intelligence Group, Inc.)
Friday, February 17, 2006
Officials from Nigeria and Sao Tome and Principe hope to finalize production sharing contracts (PSCs) in the first week of March for at least two of five blocks awarded under the second licensing round in the two countries' Joint Development Zone (JDZ).
A Sao Tomean official told International Oil Daily Thursday that a meeting of the Joint Ministerial Council (JMC) is set for Feb. 28 in Abuja and that the body hopes to finalize PSCs for Blocks 2 and 3, and possibly Block 4, during the first week in March.
Blocks 5 and 6 are expected to take some time longer to finalize.
"We are concentrating on Blocks 2, 3 and 4, but will have to resume negotiations for Blocks 5 and 6," the official said.
At the same time, all eyes are on the Chevron-operated Block 1 in the JDZ -- the only block awarded in the first licensing round -- where results from a first exploration well are awaited.
Operator Chevron and its partners, Exxon Mobil (40%), Dangote-EER and Afren started drilling in mid-January. The well is now at a depth of around 12,500 feet, but won't be finished until early March. "Drilling is very encouraging, the prospects are good," a Nigerian official said. "We are waiting for a couple more weeks until the samples have been analyzed."
A Chevron spokesman confirmed that the well was looking "interesting," but declined to make further comment.
Winners of the controversial second round awards were announced in May 2005. But the process has been marred by allegations of corruption and political tussles that have delayed progress toward firm agreements. Since the awards, three US independents -- Pioneer Natural Resources, Devon Energy and Noble Energy -- have walked away from negotiations (IOD Feb.8,p8).
Pioneer announced early in February that it had withdrawn from its 65% operatorship of the coveted Block 2 and 25% participation in Block 3, as part of a consortium with Devon Energy and US-listed ERHC Energy. Noble pulled out of a joint 60% stake with ERHC on Block 4 last November, after Devon quit in July.
Earlier this week, ERHC Chief Executive Walter Brandhuber announced the formal approval of Swiss trader Addax Petroleum as operator of Block 4. The JDA has also approved Addax to replace Pioneer in Block 3, he said in a statement. Anadarko will remain as Block 3 operator. ERHC is negotiating a deal with Sinopec that would give the Chinese state oil firm an operating interest in Block 2 (IOD Feb.9,p8).
Nigerian-owned ERHC has varying stakes in all five of the second-round blocks through a controversial agreement with Sao Tome, as well as equity gained through joint bids with partners.
An Iranian-Nigerian consortium of International Commerce and Communications and Oil Exploration Consortium was named operator of Block 5, with a 75% stake. The consortium is linked to Iran's former two-time president, Akbar Hashemi Rafsanjani, and was the sole bidder for Block 5. ERHC has a 15% interest in the block, and trader Sahara Energy 10%.
Nigeria's Filtim Huzod is 85% operator of Block 6, while ERHC has the remaining 15%.
Oil pipelines explode as task force shoots smugglers
Sola Adebayo, Warri
Explosion rocked oil pipelines belonging to yet-to-be ascertained oil multinationals in Delta State, on Wednesday in the aftermath of a military operation at Okerenkoko in Gbaramatu clan of Warri South West Local Government Area of the state.
Our correspondent learnt that fire was still raging in the area as at last night.
It was gathered that the inferno had ravaged an unspecified kilometres of the oil flow lines.
Findings by our correspondent revealed that the explosion resulted from the shooting of wares of illegal oil bunkering from a military aircraft of the Joint Task Force in the Niger Delta, code-named ‘Operation Restore Hope’.
It was gathered that a helicopter gunship marked M135, on the fleet of the JTF, carried out the operation.
A source in the JTF informed our correspondent that a patrol team of security outfit sighted 10 ocean-going barges assembled by illegal oil dealers at Okerenkoko River on Tuesday night.
It was learnt that the pilot of the aircraft on routine aerial surveillance of the Niger Delta region, quickly returned to Warri to inform the Commander of the JTF, Brig. Gen. Elias Zamani, of his finding.
Zamani reportedly contacted the Chief of Defence Staff, Gen. Alexander Ogomudia, who directed him to deploy an helicopter gunboat to destroy the barges.
The helicopter gunship took off from the Osubi Airstrip of Shell Petroleum Development Company for the assignment in the early hours of Wednesday.
It was gathered that the aircraft allegedly bombed the barges said to contain stolen crude oil, thus leading to an explosion.
A soldier who took part in the exercise told our correspondent that the fire from the barges later spread to adjoining pipelines conveying crude oil from field locations of the oil multinationals to export loading terminals.
The source said the flow lines were still on fire as at 6:30pm on Wednesday.
Many kilometres of the oil pipelines have been ravaged, a development which informed the deployment of fire fighters in the scene to curtail its spread at 6:45pm.
Initial reports had, however, indicated that the troops bombed the dreaded Okerenkoko Community, regarded as the headquarters of the Ijaw struggle in the Niger Delta region.
The JTF had contemplated invading the area in January, following a report that four abducted expatriate oil workers were being kept in the community.
The Public Relation Officer of JTF, Major Said Hammed, confirmed the report in a telephone interview with our correspondent, on Wednesday.
Hammed said the action was taken to serve as a deterent to others who may be planning to indulge in the unwholesome act in the future.
The PUNCH, Thursday, February 16, 2006
Shell beats Bonga output drum
By Upstream staff
Shell's new Bonga oilfield in Nigeria has performed better than expected since starting production on 28 November 2005 and has already hit 220,000 barrels per day, just below full capacity, a company source said.
The field, which came on stream two years late and a third over budget, is intended to produce an average of 225,000 bpd.
"It has already hit 220,000 bpd, and the start-up has been much better than expected," the source told Reuters.
"It's a full-time job just getting enough tankers to ship the crude away, because we need a million-barrel tanker every three days," he added.
Traders had expected Bonga to pump an average of 170,000 bpd in February.
Repairs are under way to Shell's 106,000 bpd Trans-Ramos pipeline, which was blasted by militants on 11 January, and should be complete before the end of this week, another Shell source said.
However, no decision has yet been taken on when to re-staff the four production platforms that provide crude to the pipeline, the source added.
Shell declared force majeure on Forcados exports on 13 January.
--------------------------------------------------------------------------------
14 February 2006 11:03 GMT | last updated: 14 February 2006 11:13 GMT
with #2 you get eggroll...em
http://www.businessdayonline.com/
February 8th, 2006
China’s oil scramble ‘does not damage US’
The Bush administration on Tuesday said efforts by Chinese companies to buy international energy assets were not economically damaging to the US, dismissing growing concern among Washington lawmakers that China is hoarding global energy supplies.
By Stephanie Kirchgaessner in Washington
Although a study by the department of energy warned that efforts by China to reach out to oil-rich “despotic regimes” such as Sudan posed “potential problems” to the US strategically, the report did not provide new ammunition to critics who claim that China’s energy demands threaten US national security. Instead, it described China’s energy policies as “economically neutral”.
The report underscores a deep divide between the approach the White House has adopted towards China on energy issues, which takes into account other diplomatic endeavours, and the panic that has enveloped congressional leaders over the issue.
The findings, which were based on consultation with the departments of defence, state, and homeland security, follow Congress’s backlash last summer against an attempt by CNOOC, the Chinese oil company, to take over California-based Unocal.
CNOOC was forced to abandon its $18.5bn bid after lawmakers led by congressman Richard Pombo characterised the proposed acquisition as an oil grab that was unfairly subsidised by the Chinese government.
“Even if China’s equity oil investments ‘remove’ assets from the global market, in the sense that they are not subsequently available for resale, these actions merely displace what the Chinese would have otherwise bought on the open market,” the study said.
The report did recognise that efforts by Beijing to establish closer ties with energy-rich “problem states” such as Sudan, Uzbekistan, and Burma did pose “a series of potential problems for the United States”.
“As a long-term trend, China’s behaviour in this respect runs counter to key strategic goals. China’s tolerance for despotic regimes may undermine [US foreign policy] efforts,” the report found.
It also noted one often overlooked benefit of China’s dealings with countries in which US companies are either unwilling or unable to invest: that “these actions may actually enlarge the total global oil supply”.
The study also addressed accusations by Mr Pombo and others that Chinese oil companies are controlled by the Chinese government, which, in turn, gives Chinese companies favourable financing that makes it impossible for US companies to compete.
The report found that the role of the Chinese government in commercial energy dealings was “highly opaque”, and that it was “unclear – though probable” that the government provided direct subsidies to national energy companies for overseas investments.
Although the government “ultimately holds all authority”, state oil companies “often act in their own interest, regardless of government directives”.
A spokesman for Mr Pombo said the study was “as forceful as an unclassified document could be”, and that the US needed to be as committed as China was to developing diverse energy resources.
Fu Chengyu, the CNOOC chairman, separately said at an energy conference in Houston on Tuesday that: “China’s goal is not to overturn the world order but instead to participate in this world order, and to reinforce it and even to profit from it.”
The department of energy signalled in its report that if CNOOC’s bid for Unocal had succeeded, the only serious national security issue that would likely have been raised by a subsequent regulatory review was Unocal’s ownership of rare earth mining and production facilities.