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Exceo. You're Not The Oldest Shareholder. I talked my 91, but now 96, year old father into buying ERHC. One on my wishes is he will live long enough to see ERHE at a couple of dollars.
Oil Rises From 13-Month Low as Stocks Gain, OPEC May Cut Output
By Nesa Subrahmaniyan and Christian Schmollinger
Oct. 17 (Bloomberg) -- Crude oil rebounded from a 13-month low in New York as stock markets rallied and on speculation OPEC may announce production cuts at a meeting next week.
Prices fell below $70 a barrel yesterday as U.S. oil inventories rose more than twice as forecast last week, and then rebounded in after-hours electronic trading as Wall Street and Asian stocks rallied. Oil also climbed after OPEC said it brought forward to next week a November meeting to discuss output levels.
``OPEC has to cut, but the only question is by how much,'' said Tetsu Emori, a fund manager at Astmax Co. in Tokyo. ``The U.S. stock market rally had earlier given oil prices an impetus to move up and there's talk about OPEC cutting by 1 million barrels a day, which is bullish.''
Crude oil for November delivery rose as much as $3.17, or 4.5 percent, to $73.02 a barrel, and traded at $72.65 at 3:12 p.m. Singapore time on the New York Mercantile Exchange. Yesterday it fell $4.69, or 6.3 percent, to $69.85 a barrel, the lowest settlement since Aug. 23, 2007.
Asian equities rose, paced by Japanese banks and automakers, and U.S. stock futures gained on signs governments are succeeding in efforts to unlock credit markets.
``As investors see the stock market recover, they want to buy into oil on the perception that the stock market movements are indicative of the future direction of oil,'' said Andy Lipow, president of Houston-based Lipow Oil Associates LLC in Houston.
OPEC ``is concerned about crude's rapid price drop, and they may announce a production cut,'' he said.
Stocks Rally
MSCI's Asian index added 1.4 percent to 88.11 as of 3:17 p.m. in Tokyo. Financial and utility shares accounted for about two-fifths of the gains. The index, having posted its biggest- ever advance and decline in the past three days, is set to rise 2.5 percent this week.
Standard & Poor's 500 Index futures added 0.5 percent. Japan's Nikkei 225 Stock Average climbed 1.8 percent to 8,614.35, the region's biggest advance and set for a 4.1 percent weekly gain.
MSCI's Asian index tumbled 31 percent in the previous six weeks as credit markets seized up, economies slowed and companies failed, making the region's equities their cheapest ever.
Yesterday, the Dow Jones Industrial Average rebounded from a decline of as much as 380 points spurred by the biggest drop in industrial production in 34 years. The index swung by more than 700 points for the sixth straight day.
One Million Barrels
OPEC, which supplies about 40 percent of the world's oil, will likely reduce oil output by 1 million barrels a day at next week's meeting to check the drop in prices, Qatari Oil Minister Abdullah al-Attiyah said.
``It will be one million, or more,'' he told Qatar's Al- Jazeera television channel. ``Prices have fallen a lot and we need to take measures.''
OPEC reduced its forecast for average oil demand next year by 450,000 barrels a day, or 0.5 percent, to 87.21 million barrels a day, in a report Oct. 15.
``If prices fall to a point when it creates budgetary issues for the individual member countries, they have to act,'' Serene Gardiner, a Dubai-based oil-products analyst at Standard Chartered Plc, said in a Bloomberg Television interview from Kuala Lumpur.
OPEC oil supplies fell 3.8 percent in September to 31.8 million barrels a day, according to revised data from Geneva- based consultants PetroLogistics Ltd. The amount declined from 33.05 million barrels in August because of lower sales by Saudi Arabia and Iran, company founder Conrad Gerber said by e-mail yesterday.
OPEC Estimates
Preliminary estimates from PetroLogistics had indicated a reduction in September supply of 2.4 percent to 32.6 million barrels a day.
Saudi Arabia, the group's biggest member, trimmed its supply to 9.18 million barrels a day last month from 9.7 million a day in August, while Iran reduced its to 3.7 million a day from 4.3 million.
``OPEC's big two sold far less than they actually produced,'' Gerber said.
U.S. crude oil supplies rose 5.6 million barrels to 308.2 million barrels last week, the Department of Energy said in a weekly report yesterday. Crude oil inventories were forecast to rise 2.6 million barrels, according to the median of analyst estimates in a Bloomberg News survey.
Gasoline stockpiles climbed 6.97 million barrels to 193.8 million barrels in the week ended Oct. 10, the report showed. Supplies were forecast to rise 3 million barrels, according to the Bloomberg survey.
Brent crude oil for December settlement rose as much as $2.76, or 4.1 percent, to $70.60 a barrel on London's ICE Futures Europe exchange. It was at $70.10 a barrel at 3:18 p.m. Singapore time.
To contact the reporters of this story: Nesa Subrahmaniyan in Singapore at nesas@bloomberg.net; Christian Schmollinger in Singapore at christian.s@bloomberg.net.
Last Updated: October 17, 2008 03:21 EDT
Sao Tome and Principe: Bank of Portugal supports request to link São Tome currency to the euro [ 2008-10-08 ]
Lisbon, Portugal, 8 Oct – The Bank of Portugal is supporting Sao Tome and Principe in its project to link its national currency, the dobra, to the euro, the governor of the Bank of Sao Tome and Principe, Luís de Sousa said Tuesday in Lisbon.
Speaking to Portuguese news agency Lusa, de Sousa said that the Portuguese and Sao Tome working teams had been created and over the next few months would start working on compiling and creating convergence indicators that need to be fulfilled, “in the medium term” by the archipelago.
The aim, he said, was for Portugal to be able to “negotiate with the European Union” for a link similar to that that exists between the euro and the Cape Verdean escudo.
Foreign debt, budget and tax deficits as percentages of Gross Domestic Product (GDP) are some of the indicators for which the two sides will draw up targets that Sao Tome and Principe will have to achieve for the agreement to become a reality.
The link, “will give Sao Tome a certain confidence from the European Union in terms of credibility and stability,” boosting the “production and services sector,” he said on the sidelines of the 18th Lisbon Meeting with the delegations of the Portuguese-speaking African Countries (PALOP) and East Timor to the Board of Director of the IMF and the World Bank, promoted by the Bank of Portugal.
De Sousa noted that the aim was to “keep the dobra as a currency,” as well as the monetary authority, “but to have an agreement to guarantee currency exchange.” (macauhub)
Refineries Crippled as Crises Take Toll
•FG asks OPEC to stem oil price crash
By Chika Amanze-Nwachuku and Ejiofor Alike with agency reports, 10.09.2008
The twin problem of pipeline breaks and epileptic power supply are taking their toll on the nation’s refining capacity, as activities at all the nation’s refineries have been completely crippled.
The Warri and Kaduna Refineries had been shut down for about two years, after militants in the Niger Delta blew up their feeder pipeline, Chanomi Creek Pipeline.
Barely eight months after skeletal activities resumed at the refineries, following a repair work on the damaged pipeline, the refining activities have again been brought to a halt, owing to the last week’s rupture of the feeder Pipeline.
THISDAY investigation last week revealed that the nation’s refining capacity had gone down to below 30 per cent because all the refineries were performing far below their installed capacities. At optimum capacity, all the refineries refine 445,000 barrels per day.
Authorities of the Nigerian National Petroleum Corpo-ration (NNPC) confirmed yesterday that crude supply to the Warri Refinery has been disrupted following the pipeline rupture last week.
They also disclosed that the Kaduna Refinery would be shut down on November 5 for the mandatory routine Turn Around Maintenance (TAM) scheduled for November 15, 2008, while activities at the PortHarcourt Refinery have been affected by the long-running power problem.
The implications are that in the event that the repair of the Chanomi pipeline was not completed, and the TAM on Kaduna Refinery was not completed before the yuletide season, and enough products are not imported, the country may experience yet another round of scarcity of petroleum products.
The nation’s daily petrol need is put at about 30 million litres per day and has been projected to hit 40 million in the next couple of years.
Prior to the vandalism of the feeder pipeline in February 2006, the Warri and Kaduna refineriues were said to have operated at about 75 per cent of their installed capacities. But the nation, it was learnt, expend between $3 and $ million daily on importation of petroleum products because the refineries were shut down. With the latest development, it is feared that Nigeria may be spending more on importation of products until the refineries resume operation again.
Industry sources hinted that the development has further reduced the country’s refining capacity to below 20 per cent.
Although the cause of the latest incident at Warri is yet to be ascertained, the NNPC has assured Nigerians that efforts were in progress to restore operations with a view to ensuring normal supply.
A statement last night by the NNPC spokesman, Dr. Levi Ajuonuma, on the state of the refineries read: “Having received numerous enquiries on the state of the nation’s refineries, the Management of the Nigerian National Petroleum Corporation wishes to inform the public on the current state of affairs in each of the refineries.
“The recent Pipeline breaks at the Egwa and Bantan axis have affected crude oil supply to the Warri Refinery. However serious efforts are being made to fix the lines and operations will resume as soon as possible.
“The Kaduna Refinery will be shut down on November 5, 2008 and handed over to Contractors in preparation for the mandatory routine Turn Around Maintenance (TAM) scheduled for November 15, 2008. It is expected that the contractors will conclude TAM and hand back the refinery to NNPC Management on January 15 2009.
“The operations of the Port Harcourt Refinery have been affected by power problems. All hands are on deck to sort out these problems and restore operations as soon as possible.
“Meanwhile, NNPC wishes to assure the nation that arrangements have been put in place to ensure normal supply of products to the public throughout this period.
“We count on the cooperation of all well meaning Nigerians as we seek to resolve these challenges.”
About $52 million was expended on the repair of the Chanomi Creek Pipeline
The contract for the repair of the pipeline was awarded to a company owned by an indigene of Niger Delta as part of the strategies put in place by Government to resolve the protracted crisis in the oil-rich region.
The initial value of the contract during the administration of former President Olusegun Obasanjo was estimated at about $100 million, but after a renegotiation with the firm by the present administration, the amount was brought down to $52 million.
The inability of the refineries to work last year cost the country an estimated $4 billion in importation of about 5 million tonnes of petroleum products.
Meanwhile, as the price of crude oil fell by more than $4 to a 10-month low at $89 per barrel yesterday, the Federal Government has said the Organisation of Petroleum Exporting Countries (OPEC) may need to intervene to balance the oil market if the price of crude continues to slide.
Minister of State for Energy (Petroleum), Mr Odein Ajumogobia, stated this yesterday at the Africa Upstream 2008 Oil Conference in South Africa.
Ajumogobia’s statement, which was the latest concern voiced by an OPEC member about the impact of the global financial crisis, came amidst mounting expectations on the impact of the financial crisis on demand for energy.
“There may be a need to intervene to balance the market if the price slide seemingly predicted on (lower) demand and over-supply continues,” he said.
Iraq’s oil minister also said at the conference that OPEC might need to consider cutting oil output if the price of crude remained below $90.
Libya and Iran had earlier expressed concerns this week about the impact of the worsening global crisis on the oil market.
OPEC had decided at a meeting in Vienna on September 9-10 to comply strictly with its formal output target, a move officials said would result in the group trimming supply by about 500,000 barrels per day.
The oil cartel’s next scheduled conference is on December 17 in Algeria.
Meanwhile, Ajumogobia also said the National Assembly will pass the oil sector reforms bill, which is already before it.
This bill restructures the oil and gas sector and breaks up the Nigerian National Petroleum Corporation (NNPC).
“We believe the National Assembly is on board to pass the new petroleum reform bill,” he said.
According to him, government is optimistic that the falling world oil price will stabilise and it expects to lift its production to 4 million barrels per day by 2010.
“We in Nigeria remain optimistic that the oil price will stabilise. Our ambition is to reach 4 million barrels per day by 2010,” he added.
Crude oil prices had last Monday fell to its lowest in eight months, trading below $90 a barrel on speculation that the financial crisis would exacerbate a global economic slowdown and cut demand for crude oil.
For most of 2008, oil had been well over $100 a barrel.
Shell to Face Trial in US over Saro-Wiwa
From Constance Ikokwu in Washington, D.C., 10.09.2008
Oil giant, Royal Dutch Shell Petroleum, will go on trial in the United States on February 9, 2009 for alleged complicity in human rights abuses in the Niger Delta, THISDAY has learnt.
The case entitled Wiwa v. Royal Dutch Shell and Wiwa v Anderson concerns the November 10, 1995 hangings of Ken Saro-Wiwa and eight other members of the Movement of the Emancipation of the Ogoni People (MOSOP) known as “Ogoni Nine” and the shooting of a woman protesting the bulldozing of her farm by Shell in preparation for a pipeline project.
After several years of litigation, Judge Kimba Wood ruled that the trial would he held next year.
According to documents made available by EarthRights International, one of the counsel, Shell was engaged in “acts of oppression” against peaceful opposition to the company's environmental damage and human rights abuses in the Ogoni area.
THISDAY gathered that the plaintiff’s action was brought under the Alien Tort Claims Act (ATCA) and alleges violations of the Racketeer Influenced and Corrupt Organisations Act (RICO).
The defendants dismissed the complaints on grounds of lack of personal jurisdiction over Royal Dutch/Shell and lack of subject matter jurisdiction.
According to the defendants, ACTA did not apply to a corporation and the claim was precluded by the political questions and act of state doctrines as well as Nigerian law on corporate liability. They also argued that the case should be heard in the Netherlands or England.
But on September 25, 1998, Judge Wood ruled that personal jurisdiction was appropriate in New York but also ruled that England was a more convenient forum and therefore that the defendant's motion to dismiss should be granted for forum non conveniens (Latin for "inconvenient forum" or "inappropriate forum").
Plaintiffs appealed to the US Court of Appeals for Second Circuit, arguing that a forum non conveniens dismissal would vitiate Congressional intent to allow plaintiffs claims to be heard in US courts.
Defendants cross-appealed the ruling personal jurisdiction. And the Court of Appeal on September 15, 2000 reversed the district court's forum non conveniens dismal, thereby concluding that the US was the proper forum.
The court further upheld the district court's ruling that jurisdiction over the defendants was proper.
EarthRights International is a co-counsel for the plaintiffs together with Judith Brown Chomsky, the Center for Constitutional Rights, Paul Hoffman and Julie Shapiro.
The “Ogoni Nine” were hanged by the government of late military ruler Gen. Sani Abacha after they were found guilty of murder by the military tribunal headed by Justice Ibrahim Auta.
Those hanged were Saro-Wiwa, Saturday Dobee, Nordu Eawo, Daniel Gbooko, Paul Levera, Felix Nuate, Baribor Bera, Barinem Kiobel, and John Kpuine
There was a global outcry on what was described as “judicial murder” and outrage heightened against Shell which was accused of collaborating with the military regime to silence environmental activists in the oil-producing region.
Last August, another oil giant, Chevron Nigeria Limited, had also lost its bid to halt its trial in United States after exhausting all appeals to stop the company from being tried for the alleged murder of villagers in the Niger Delta region in two separate incidents between 1998 and 1999.
The US District Court Judge in San Francisco, California, Susan Illston, had ruled last year in the Bowoto v. Chevron Corp., No 99-2506, that Chevron was directly involved in the alleged attacks by acting in consonance with Nigerian government security forces and therefore would stand trail.
Chevron appealed the California Superior Court’s ruling unsuccessfully.
In her ruling, Judge Illston found “evidence that CNL [Chevron Nigeria Limited] personnel were directly involved in the attacks; CNL transported the GSF [Nigerian government security forces], CNL paid the GSF; and CNL knew that GSF were prone to use excessive force”.
The plaintiffs are also taking action on the legality of the Nigerian government's conduct at Parabe and Opia/Ikenyan, asking the state court to issue an injunction regulating the manner in which the Nigerian government may provide law enforcement services in Nigeria, and asking the court to limit CNL's ability to obtain armed protection in Nigeria.
Chevron argued this will hinder its operations in the country.
In addition to Environmental Rights Action and Traber &Voorhees, the plaintiffs are represented by the private law firms of Hadsell & Stormer and Siegel & Yee, the Center for Constitutional Rights and the Electronic Frontier Foundation, and Paul Hoffman, Michael Sorgen, Robert Newman, Anthony DiCaprio, Elizabeth Gu-arnieri, and Richard Wiebe
Nigerian Military Says It is Making Headway Against Rebels
By Chinedu Offor
Washington DC
03 October 2008
Nigerian defense officials say the military's two-week-old offensive against militants in the Niger Delta has succeeded in reducing violence in the restive region. The officials say scores of militants have been killed and dozens arrested with most of their bases destroyed. But prominent Delta politicians say the offensive will not ensure long-term security until the government provides the region jobs and infrastructure.
Lt. Col Sagir Musa is spokesman for the joint military task force charged with providing security in the Delta. He says tremendous progress have been made in pacifying the restive oil rich region. "The situation is relatively calm. So far, so good. There has not been any reported case of security breach within our areas of responsibility which is a sign of good development to the region and the nation as a whole."
He says the reduction in violence can be attributed to a multi –pronged approach by the government. "I wont attribute it to our efforts only, I think it is a combined effort, a combined responsibility that resulted to the peaceful atmosphere that everyone is enjoying in this period and we hope it will continue".
Lt. Col Musa says residents of the delta have been instrumental is giving information to the task force in its efforts to combat militant activities. "Everybody seems to be disturbed about the situation in the Niger Delta, and people are worried, disturbed and concerned. Therefore from time to time we call on the people that who ever witnessed any criminal act should call security agencies. We even volunteered dedicated telephone lines for that purpose and people are just calling to say, this is what is happening and please come to our aid."
Sao Tome and Principe: Government announces international tender for thermal power plant [ 2008-10-03 ]
Sao Tome, Sao Tome and Principe, 3 Oct – The prime minister of Sao Tome and Principe, Rafael Branco, said Wednesday in Sao Tome that his government planned to launch an international tender for construction of a 30-megawatt thermal power plant under concession.
On making his summary of 100 days of government, Branco said that solving the country’s energy problem was an urgent task and announced, “Immediate measure in the power generation sector.”
“As part of cooperation with Taiwan, we plan to refurbish three groups of generators by the end of the year. The parts are in the country, the Taiwanese team is due to arrive in the next few days and we think that, by the end of the year, we will have additional production.”
He also said that over the next few days a tender would be launched for construction, in the short term, of another 8-megawatt thermal power plant.
“The Council of Ministers has already made the decision and for the 8 megawatt plant funding is already guaranteed. For the 30 megawatt one, this will be run by concession and we are going to launch an international tender,” Branco said. (macauhub)
Nigerian helicopters, gunboats patrol oil delta
Fri 26 Sep 2008, 12:49 GMT
[-] Text [+]
By Austin Ekeinde
PORT HARCOURT, Nigeria (Reuters) - Nigeria's army is on high alert in the oil-producing Niger Delta, carrying out helicopter and gunboat patrols in its creeks despite a ceasefire declared by the region's main militant group.
Brigadier-General Sarkin-Yaki Bello, commander of the army, navy and airforce joint task force in southern Rivers state, said his men would not hesitate to strike militant camps if and when it was deemed necessary.
"If the opportunities, the circumstances call for it we will do that," he said in an interview.
"We are still operating at the same speed, pace that we have been doing...We have not declared war in the Niger Delta, this should be made clear. We are involved in what we call militant containment and control," he said.
The Movement for the Emancipation of the Niger Delta (MEND) launched six straight days of attacks on oil facilities last week, cutting output in Africa's top producer in what it said was retaliation for unprovoked raids by the military.
Bello blamed MEND for triggering the unrest, saying his men had been shot at by militants during a patrol on September 13 and that they had responded by invading the militants' camp.
MEND declared a unilateral ceasefire on Sunday after what it said was an appeal by elders but said it would resume its campaign of sabotage if it was attacked again.
"I have not signed any ceasefire. I am not bound by any ceasefire," Bello said in his headquarters in the main southern oil city of Port Harcourt.
"As far as I am concerned, our security level should be at its highest. In fact, our security level is more heightened now than any other time," he said, but added it was a welcome development if MEND stopped its "acts of brigandage".
MIGHT OF THE GOVERNMENT
Last week's attacks targeted oil flow stations, platforms, pipelines and gas plants and forced Royal Dutch Shell, the company worst hit, to warn it may not be able to meet all of its contractual obligations on oil shipments from Nigeria.
But Oil Minister Odein Ajumogobia told Reuters on Wednesday that the sabotage had had a limited impact because some of the facilities attacked were not fully operational anyway. He estimated Nigeria's output at around 2 million barrels per day.
Rotimi Amaechi, who took office as governor of Rivers state last year, has taken a tougher approach in dealing with the militants than his colleagues in Bayelsa and Delta, the other two main states in Nigeria's oil heartland.
Those two states have been much calmer in recent months, with diplomats saying their respective governors have favoured dialogue over a predominantly military approach.
"The number of troops on the ground has increased, but I cannot say how many they are. But definitely we have increased our troop level since 2007," Bello said of the military force in Rivers state.
Soldiers invade militants’ hideouts - Arrest 229
Bolaji Ogundele, Port Harcourt - 24.09.2008
NO fewer than 229 suspected militants were on Tuesday arrested by the Joint Task Force (JTF) from different hideouts of the militants.
Commander of the JTF, Brigadier General Sarkin-Yaki Bello, who stated this during a press briefing in Port Harcourt, also debunked allegations of civilian massacre in the force’s encounter with militants around Elem Tombia, about two weeks ago.
He said the arrests were made possible following a tip-off and intelligence reports at the disposal of the task force, which indicated some areas as hideouts for militants.
“Gentlemen, for your information, early hours of this morning (Tuesday), we carried out an operation in which we arrested over 229 people from many areas.
“The operation happened in the following watersides; Abonnema, UTC, Njemanze, Afikpo, Aba, Ekwele, Nanka and Timber market,” he said.
Bello, who said his command would not lower its level of alertness in the state despite recent “unilateral truce” called by the Movement for the Emancipation of the Niger Delta (MEND), also revealed that virtually all militant camp locations in the state were now known to JTF.
Explaining what happened during the Elem-Tombia general area’s face-off with militants, the General said the location of the encounter was not residential, adding that the place is tagged Elem-Tombia general area because it was the most recognisable name around there.
“The encounter that happened was purely at a camp and not any residential area. We have a lot of responsibilities and the military officers I work with have been trained in the best military tradition in the world. We are very versed both in the military and the conventional laws, as well as in all the conventions that Nigeria is signatory to.
“Therefore, we are the last people that will be involved in any form of wanton destruction or the abuse of human rights. What we attacked was simply a camp which we are sure was military fortification with sandbags and everything,” he reiterated.
He then played a recorded video clip of the encounter. The filming was done while the fight was on and was done both from the air and on land.
He said further that with the aid of intelligence reports, the JTF now had records and knowledge of locations of virtually all the militant camps around and within Rivers State.
He said these militant camps had served as safe houses where kidnap victims from around the state were kept, noting that it was the duty of JTF to ensure that everything that constituted a threat to the citizenry be adequately taken care of.
“As a military outfit, part of our task, in order to achieve our objective, is to try and locate where these camps are and I am very happy to tell you that virtually 99.9 per cent of the camps in Rivers State are at our fingertips. We now know where they are,” he said.
On allegations of professional misconduct among the rank and file of his command, General Bello said he would not deny that there were some of the men who would be involved, but stated that no one under his watch would get away with corruption without facing the law.
Air raid 'hits Nigeria militants'
Niger Delta militants
The militants say they are fighting to bring more money to the Niger Delta
Nigeria's main oil militant group has accused the army of launching air attacks on its allies' camps.
The Movement for the Emancipation of the Niger Delta (Mend) declared a unilateral ceasefire three days ago.
A Nigerian army spokesman told the BBC that he was unaware of any air strikes on Tuesday.
Mend said it would not be drawn by military tactics into jeopardising the peace process and would continue observing its ceasefire.
Groups such as Mend claim to be fighting for greater control over oil wealth in the impoverished Niger Delta, but they are accused of making money from criminal rackets and trade in stolen oil.
Threat to end truce
Mend said camps belonging to the Niger Delta Patriotic Force and the Niger Delta Vigilante had been targeted in the attacks.
Mend will not play into the hands of the military by retaliating
Militant statement
Earlier in the month, the militants had declared "war" on Nigeria's oil industry after a fierce military raid on one of their bases.
Mend declared a ceasefire after appeals from local leaders, but it warned it would end the truce if attacked by the army again.
"Mend will not play into the hands of the military by retaliating and putting the peace process in jeopardy at this time," the group said in an e-mailed statement, Reuters news agency reports.
Recent violence has been the worst in two years and on Saturday oil giant Shell was forced to declare a "force majeure" - which frees it from contractual obligations - on crude oil shipments from its Niger Delta facilities.
Nigeria's oil production has been cut by 20% because of unrest in the region over the past few years.
When President Umaru Yar'Adua came to power last year he promised to tackle the problems of the Niger Delta.
Recently, his government announced that a new ministry would be formed to deal with the crisis.
A Niger Delta minister is expected to be appointed this week when the president unveils his new cabinet.
Sao Tome and Principe: Sonangol becomes biggest shareholder of oil company ENCO [ 2008-09-23 ]
Sao Tome, Sao Tome and Principe, 23 Sept – The government of Sao Tome and Principe has sold 35 percent of the capital it held in oil and fuel company Empresa Nacional de Combustíveis e Óleo (ENCO), to Angola’s Sonangol, Sao Tome’s minister for Planning and Finance said Monday.
Ângela Viegas said the sale was due to the need to make the states shares in ENCO profitable as well as complying with the “programme that aims to remove the state from public companies.”
In the sales contract, the minister said, a safeguard was implemented, "that the Sao Tome state would continue to have the last word before any fuel price rises were put in place."
ENCO currently owes a large debt to Sonangol, due to fuel prices not having been updated, whilst prices have risen on the international market.
With this acquisition, Sociedade Nacional de Combustíveis de Angola (Sonangol) now has a 75 percent stake in ENCO.
The Sao Tome state has kept 16 percent of ENCO, and the remaining 9 percent of shares are distributed amongst a group of small shareholders. (macauhub)
Sao Tome and Principe: Agriculture, adventure and eco-tourism and oil services amongst main opportunities [ 2008-09-19 ]
Lisbon, Portugal, 19 Sept - Agriculture, adventure and eco-tourism, fishing, transport and services for the oil industry are amongst the main business opportunities available to investors in Sao Tome and Principe, according to a guide drawn up by Columbia University, in the United States.
Jeffrey Sachs, director of the Earth Institute of Columbia University, which has assisted the archipelago in its legislative and technical development in the oil sector, said that, “the guide aims to provide more information to investors about Sao Tome," but it is also aimed at, “being useful for the development community, civil society, diplomatic missions,” amongst others.
The Investors’ Guide to Sao Tome and Principe was drawn up by Columbia University, with the support of the Sao Tome government and business councils.
Amongst the main opportunities highlighted by the guide are agriculture, particularly cocoa, flowers, fruits and vegetables for export.
The primary sector employs around 70 percent of the Sao Tome population and is responsible for just 20 percent of GDP.
Amongst the projects underway, the study noted investments in the hotel sector carried out by the Pestana Group and a recent contract worth US$400 million with Terminal Link, a French subsidiary of transport giant CMA-CGM, for construction of new deep water port.
This facility, the Guide said, “should create thousands of jobs for the islands and turn the country into a West African nerve centre."
Another of the archipelago’s advantages is its geographical position in the Gulf of Guinea and its position in regional markets, particularly via bilateral trade agreements with Angola, Gabon and Nigeria, and even preferential Access to European Union markets, under the terms of the “Everything but Arms” initiative, and the United States, through the AGOA-African Growth and Opportunities Act. (macauhub)
Navy Moves to Check Pirates, Oil Thieves
By Eugene Agha, 09.18.2008
There seems to be an end in sight to crisis in the Niger Delta region, following recent establishment of a telecommunication monitoring centre by the Nigerian Navy.
The centre, known as the Regional Maritime Awareness / Identification Centre, is located at the Western Naval Command Headquarters, Apapa, Lagos.
Addressing mediamen in Lagos after receiving some United States Naval officers in the country on a flag showing visit, the Flag Officer, Western Naval Command, Rear Admiral Sylvester Umosen, said part of the work of the Centre is to identify and locate all activities of sea pirates and crude oil thieves within and around the nation's waterways, stretching up to the Gulf of Guinea.
Umosen, who was optimistic that the Centre will, not only help to track down vessel activities within the Nigerian territorial waters, but that it will also help to reduce activities of sea pirates and crude oil thieves, who had been terrorising crew members on board fishing trawlers and expatriates.
"The Regional Maritime Domain Awareness / Identification Centre, will enable naval officers to know what is happening at sea. It will also enable us to know if there is armed robbery attack on vessels within our waters, where the ship is located and pass similar message to naval patrol boats. We can pick up visuals and voice and communicate same to crew on board vessels in time of distress," he said.
Umosen said the Centre was established by the Nigerian Navy, in conjunction with the American Government.adding that it was the US naval officers that were sent to train their Nigerian counterpart on how to operate the equipment.
Commanding Officer of the US warship, Commander Todd Beltz, said they are willing to offer their Nigerian counterparts any assistance, event if it has to do with the crisis in the Niger Delta region, during their brief stay in Nigeria."
Oily Chatter From 7/1/08 To Present:
7/1/2008 It's just the storm before the calm tooter(s)!
7/16/2008 remember ockham's razor
EEL's razor
ERHC will soon have a new office,
not in Houston.
ERHE will soon not be ERHE.
7/31/2008 drillship news for ERHC
8/7/2008 ERHC Upstream news tonight
8/8/2008 ERHC drillship news before the close
BB: ERHC talk about future ERHC, is just talk. ERHC will never see the first drop of oil reach the surface as ERHC.
BB: yes, to Richkans. Shallow water, but it's still water.
8/22/2008 Big News on ERHC chatter, mostly on drillship to JDZ.
8/27/2008 chatter, ERHC's time as ERHC is growing short.
9/8/2008 Todays ERHC news is a diversion.
ERHC sell price is to high.
Sao Tome and Principe: Prime minister of Sao Tome visits Taiwan [ 2008-09-05 ]
Sao Tome, Sao Tome and Principe, 5 Sept – The prime minister of Sao tome and Principe, Rafael Branco, Thursday began a week-long visit to Taiwan at the invitation of the Taiwanese government, with which he will discuss cooperation priorities.
The head of the Sao Tome and Principe government, who said that no agreements were expected to be signed with the Taiwanese authorities, heads a delegation that includes the ministers for Foreign Affairs and Cooperation, Carlos Tiny, and Territorial Administration, Raul Cravid.
Branco is the president of the Movement for Liberation of Sao Tome and Principe – Social-Democratic Party (MLSTP) which has privileged relations with the Chinese Communist Party.
When asked whether his trip to Taiwan might not affect the relationship between the two parties, the prime minister said it would not.
After his visit to Taiwan, Branco is Thursday due to travel to Portugal on a private visit of around a week.
Oil Producers May Compel OPEC to Cut Supply
By Chika Amanze-Nwachuku with agency report, 09.03.2008
There are indications that major oil producers may compel Organisation of Petroleum Exporting Countries (OPEC) to cut supply when the group meets on September 9, in Vienna, Austria.
This was sequel to the sharp drop in crude oil price to below $110 per barrel yesterday, after reaching a record high of $147.42 per barrel on July 11.
Iran, world's fourth-largest crude producer. stated yesterday that OPEC may need to cut oil supplies by about 1.5 million barrels per day (bpd), or nearly five per cent, to balance global markets by early next year.
Iran's OPEC Governor, Mohammad Ali Khatibi, in an interview with Reuters yesterday noted that the market currently is oversupplied and will definitely have an impact on price and investments in the oil industry.
He said OPEC should consider a two-step plan to cut supplies at its September meeting.
"The current market is not balanced, it is oversupplied. Oversupply cannot continue for a long period. It will definitely have an impact on the price and on investments in the oil industry," he said in an interview with Reuters.
According to him, the first step in balancing supply and demand would be for members that are pumping above their informal target to cut back to the agreed level.
The second step, he said, would be for a formal output cut and could be left until the producer group, supplier of over a third of the world's oil, meets again in Algeria in December.
"We can take this step later if we consider it necessary. There are so many factors that are uncertain right now, we may need to do this in December. By then, it should be easier to measure how much the global economic slowdown has impacted demand and how much oil producers outside OPEC would pump over winter. That would give OPEC a clearer idea of what it needs to supply to match demand.
"As things stand, demand for oil from OPEC was expected to be around 31 million bpd in the first quarter of 2009, compared to current output of around 32.5 million bpd. Demand would slip around one million bpd to 30 million bpd in the second quarter, but there would be no need for OPEC to trim further then," he said.
Meanwhile, Iranian Oil Minister, Gholam Hossein Nozari has called on OPEC to discuss quota-busting by some members at the September 9 meeting.
Speaking with the official IRNA news agency, the Minister said oil supply should be proportionate to demand and that control of excess supply is an issue which should be addressed at the upcoming OPEC meeting.
"The oil supply should be proportionate to demand and control of excess supply is an issue which should be addressed at the upcoming OPEC meeting. Some OPEC members are providing the market with excess supply and producing more than their OPEC quota.
Therefore, at the next meeting, members will request a stop to the excess supply," he said.
Nozari said "Excess supply of oil affected prices, and it is not only Saudi Arabia which has excess supply, but there is an increase in supply from other members that has affected prices. $100 a barrel is "a minimum" for oil prices."
Crude oil price slumped below $110 a barrel yesterday, on signs that Hurricane Gustav may spare oil facilities off the US south coast.
jsc I Believe There Was A Post It Had Gone Out On Sea Trials.
Oh Cool! The MMs Are Running The Price Down Before The ROO Announcement & The Big Run Up. ;-p
N’Delta Killings: Chevron’s Trial Begins Sept in US
From Constance Ikokwu in Washington, DC, 08.19.2008
Oil giant, Chevron Nigeria Limited, will stand trial in the United States (US) in September, after exhausting all appeals meant to stop the company from being tried for the alleged murder of villagers in the Niger Delta region in two separate incidents between 1998 and 1999.
The US District Court Judge in San Francisco, California, Susan Illston, ruled last year in the Bowoto v. Chevron Corp., No 99-2506, that Chevron was directly involved in the alleged attacks by acting in consonance with Nigerian government security forces and therefore would stand trail.
THISDAY gathered that Chevron appealed the California Superior Court’s ruling unsuccessfully.
A source at EarthRights International, a non-governmental organisation (NGO), acting as legal counsel for the plaintiffs, and who spoke under condition of anonymity, stated that “Chevron has exhausted all potential appeals and the case will go forward. All motions were dismissed and nothing will keep the case from going forward.”
THISDAY was unable to reach Public Relations Officer for Chevron in San Francisco, Mr Campbell, for comments. His voice mail indicated that he would be out of town until the 23rd of August. Mr Justin Hagues whose name was dropped on the voice message told THISDAY he was not authorised to comment on the case. He however confirmed that the trial would take place in September.
Litigation Co-ordinator for EarthRights International, Mr Rick Herz, was also not in town as at press time.
The lawsuit was brought against Chevron eight years ago in San Francisco Federal Court by nine Nigerian plaintiffs for alleged deaths and other abuses in the two incidents. The plaintiffs assert claims ranging from torture to wrongful death.
The report alleged that the Nigerian Military and Police were paid by Chevron to shoot and torture protesters in the volatile region. Chevron helicopters and boats were used by security forces to harass, torture and kill people, it claimed.
In her ruling, Judge Illston found “evidence that CNL [Chevron Nigeria Limited] personnel were directly involved in the attacks; CNL transported the GSF [Nigerian government security forces], CNL paid the GSF; and CNL knew that GSF were prone to use excessive force."
The plaintiffs are also (a) litigating the legality of the Nigerian government's conduct at Parabe and Opia/Ikenyan; (b) asking the state court to issue an injunction regulating the manner in which the Nigerian government may provide law enforcement services in Nigeria; and (c) asking the court to limit CNL's ability to obtain armed protection in Nigeria.
Chevron argued that the action would hinder its operations in the country.
In addition to Environmental Rights Action and Traber & Voorhees, the plaintiffs are represented by the private law firms of Hadsell & Stormer and Siegel & Yee, the Center for Constitutional Rights and the Electronic Frontier Foundation, and Paul Hoffman, Michael Sorgen, Robert Newman, Anthony DiCaprio, Elizabeth Gu-arnieri, and Richard Wiebe.
emdyal: Drilling Equipment Ordered
(From ERHE Web Site)
On August 8, 2007 Anadarko, the operator in JDZ Block 3, presented the initial proposals for exploration well locations for the Block. The Joint Development Authority has approved drilling at the Lemba Prospect. Anadarko has ordered drilling equipment.
Also This on Block 2...
The Joint Development Authority has approved drilling at the Bomu Prospect. In 2007, Sinopec and Addax jointly entered into an agreement with a subsidiary of Aban Offshore Limited for the provision of the Aban Abraham deepwater drillship, which continues being refurbished and upgraded in Singapore. At the end of its contractual obligations to another partnership, the Aban Abraham will be transferred to Addax and Sinopec.
MattAustin: Wow Your 1 And Only Post After Over 7 Years of Quiet. Hope you didn't decide to break your long silence just for AWAG.
I Hope The Designers Have Factored In For Barnacles & Other Sea Creatures.
IBB Recommends Marshal Plan for N/Delta
From Chuks Okocha in Abuja, 08.16.2008
Former Military President, General Ibrahim Babangida, under whose administration the agitation for the development of the Niger Delta and a greater stake in the nation’s oil wealth first started in 1991, yesterday in Abuja said only the adoption of a Marshal Plan by the Federal Government can put an end to the on going crisis in the Niger Delta.
Babangida who spoke during the 60th birthday lecture held for former governor of Rivers State, Dr. Peter Odili said any further delay in addressing the Niger Delta problems would be too costly for the nation.
The former president, whose speech was delivered by Dr. Amadu Abubakar, said: “I believe that the solution to the problems of the Niger Delta should be sustained massive development based on a Marshal Plan.
“It is crucial that we respond proactively, promptly and honestly to the Niger Delta situation, before it is too late.”
He also appealed to all stakeholders to be sincere about the rapprochement and pursue the route of dialogue in the interest of all in the Niger Delta.
“Such development would reclaim the land, open up the hinterland, clean up the environment, empower the people, physically develop the rural areas, and enhance the quality of lives of its peoples.
“We all feel bad and worried about the widespread environmental degradation and are particularly concerned about its impact in the Niger Delta. We even feel worse about the neglect that led to the current crisis,” Babangida said.
The former military president also described the rule of law posture of President Umaru Yar’Adua as the foundation for equity and justice.
He made a comparative analysis of Nigeria today with the colonial days and said, “All is not lost. I was brought up to look at the brighter side of life. Therefore, I never see empty glasses. In the immensity of the challenges facing our dear country, what I see is a bright future. I see opportunities to give our people a better country.
“The economic successes of China and India came after many years of toil and sweat. The task of nation building is an arduous task with a life long struggle.”
Babangida urged Dr. Odili to use his years in politics to ensure a united Nigeria, as his forefathers shed blood to keep the country united.
In his response, Odili commended the rule of law policy of Yar’Adua, describing it as a foundation for equality and justice.
“For President Yar’Adua to make the rule of law the corner stone of his administration, this government is on the path of destiny. We join the army of those praying for this administration to succeed.
“Any dance step that begins with a good step is bound to survive. Yar’Adua’s dance step is good and would survive.”
A galaxy of politicians attended the birthday lecture, including the governors of Ogun, Oyo, Osun, Ondo and Niger. The senate president, David Mark and the deputy senate president, Ike Ekweremadu were also in attendance.
The former chairman of the Board of Trustees of the Peoples democratic Party (PDP), Chief Anthony Anenih, the PDP BOT secretary and former governor of Nasarawa state, Alhaji Abdullahi Adamu, Minister of Special Duties, Godson Orubebe who represented President Yar’Adua, were also in attendance.
Oily: Before The Close Of Trading?
Before The Close Of The Day?
Before The Close Of The Week?
Before The Close Of The Month?
Before The Close Of The Year?
Before The Close Of The Decade?
‘N’Delta Problems Can Be Solved’
By Agha Ibiam, 08.06.2008
President of the God's Kingdom Society (GKS), Brother Osehgale Emmanuel Aighalua, has maintained that the current wave of violence in the Niger Delta region of the country is solvable provided there is genuine dialogue between the people of the region and the government.
But the man of God says he frowns at the rate at which abduction, destruction of facilities, sea piracy, harassment of both oil and non oil workers have continued even in the face of increased military presence by the militants.
Aighalua was in Lagos to conduct a workshop for GKS members and to sensitise the public about the forthcoming GKS Youth Fellowship National Assembly, which comes in Salem City, Warri, Delta State.
He noted that since government had openly appealed to all people of goodwill to contribute their quota towards restoring peace to the oil-rich Delta region, that peace should be given a chance to reign.
"In my various declarations, I have called for dialogue as a way out of the crisis. While still reiterating that stand, which government also endorses, I appeal to our political leaders to begin implementing the maters-plan which government has painstakingly worked out for the Niger Delta.
"The youths should join hands with government to carry out the projects contained in the Master plan. The kidnapping of people for ransom is contrary to the Bible. Currently children are being stolen from the parents, wives from their husbands, husbands from their wives, parents from children, should stop," he said.
He pointed out the brazenness and insensitivity with which the youths are vandalizing expensive equipment, robbing peace-loving, innocent citizens is not encouraging. Quoting the Holy Bible to buttress his point, Aighalua said such crimes are expressly forbidden by the law of God, and in time of old was punishable with death.
On the workshop, he said it is organized as part of the continuing process by the church hierarchy as a way of enhancing the spiritual tone of members and building up their capacity to better discharge their duties in the Lord.
"It aims at grooming brothers or men who will be understanding, loving and caring husbands and fathers and who would be role models and character and image builders to their families and the larger society by Godís grace," he said.
Wife of Shell Official, 2 Others Kidnapped
•Navy sinks militants’ boats
From Ahamefula Ogbu in Port Harcourt, 08.07.2008
Kidnappers Tuesday, at about 10.30 pm., struck along Rumukurushi, Rivers State and kidnapped wife of Don Obomanu, a staff of Shell Petroleum Development Company, her friend, Gloria, and her driver.
The kidnappers are demanding N150 million ransom.
The trio were returning from a local political meeting where Rivers State Commissioner for Works, Mr Dakuku Peterside, was in attendance when they were accosted by heavily armed men.
Calls to Peterside's phones were unanswered.
The kidnap is coming on the heels of a reported clash between Naval component of Joint Task Force, at Cawthorn Channel, when two boats occupied by militants engaged them in a shoot out.
After about an hour of exchange of fire two of the militants' boats were destroyed while the hoodlums abandoned another, which the Naval men towed to their base.
Items recovered included a grenade, general purpose machine gun and a lot of ammunitions.
Spokesman of the Joint Task Force in Rivers State, Lt Colonel Sagir Musa, confirmed the kidnap, but said details were still scanty.
Naval Spokesman, Lieutenant Olabisi Way, confirmed the attack adding that his men overwhelmed the militants who were in three boats.
"Yes, there was a clash between our men and militants in Cawthorn Channel today (yesterday). The militants were in three boats when they sighted the naval patrol team and immediately opened fire on them. After fierce gun battle, the Navy overpowered them and two of their boats were sunk, while one was recovered and towed to our base. We recovered one General Purpose Machine Gun (GPMG) and several rounds of ammunition, one grenade and a boat.,” he said.
"There were no casualties on our side, but there must be serious toll on the hoodlums who have been making the area unsafe. We are committed to keeping the state for all law-abiding citizens," he said.
Spokesman for SPDC, Mr Precious Okolobo, confirmed that wife of one of the staff was kidnapped and that, "we commiserate with the family at this trying time and will do everything to ensure her safe release."
Sao Tome: Telecoms firm invests in undersea cable [ 2008-08-04 ]
Sao Tome and Principe, 4 Aug – The Sao Tome government has inked an accord with Portugal Telecom to enable the Sao Tome Telecommunications Company to participate in the West African Festoon System (WAFS), officials said Friday.
A statement from the office of Prime Minister Rafael Branco said the islands will connect to the WAFS project through a ground station in Libreville and the SAT3 submarine cable.
The undersea link will allow Sao Tome improved international communications links and also give better quality transmission of voice, data and images.
The Sao Tome telecoms firm will invest around US$ 15 million in the cable project, some US$ 2.4 million from its own coffers and the remainder from partners in the company. The Sao Tome Telecommunications Company is controlled by Portugal Telecom with a 51 percent stake. The islands’ government holds the remaining 49 percent stake. (macauhub)
Senate Bemoans Loss of $15m to Gas Flaring Daily
From Sufuyan Ojeifo in Abuja, 08.05.2008
Senate yesterday bemoaned the country daily loss of $15 million to gas flaring, and announced plans to review the Gas Master Plan as proposed by the Ministry of Energy (Gas).
Chairman of the Senate Committee on Gas, Senator Osita Izunaso, said, "the bottom line is, we are going to review the Gas Master plan. Nigeria is so blessed, so rich and people are suffering; we are flaring gas, throwing it away as if it doesn't have meaning. We are losing approximately, $15 million a day on flaring," Izunaso told Senate Correspondents, adding that the Senate was not very comfortable with the master-plan proposed by the Ministry of Energy (Gas).
According to him, the Gas Master Plan as proposed by the Ministry of Energy (Gas) needs to be reviewed. The Senate is not very comfortable with the Gas Master Plan as it is now. It has to be subjected to proper scrutiny. In fact, we must open it up and allow critical stakeholders to make input into the Nigerian Gas Master Plan. We are proposing a public hearing on Nigerian Gas Master Plan. There are some constitutional issues we have observed and they have to be treated, because it appeared to us as if the extent of the Gas Master Plan, which is basically to promote domestic utilisation of gas before the export is not what is being followed now.
He said it was possible that the gas companies were now more interested in the export than the domestic issue, explaining that, "we have to really look at it and dwell on the actual pricing of gas in this country to meet up with global realities."
Izunaso said the Senate would also summon Minister of State for Energy (Gas), Mr Emmanuel Odusina, to explain benefits of the road show it embarked upon in London and Singapore, to sell the nation's abundant gas potentials.
He said, "the Ministry of Energy (Gas) had a road show. Some of you who have been following our activities know that we had insisted that the road show must happen in Nigeria here, instead of going to London and Singapore.
"They later bent a little bit and had one in Abuja, one in London, and another one in Singapore. So, we now want to be briefed. We are going to summon the Minister of Energy (Gas) to explain to us how far he had gone with the road show in London and Singapore. We are part of the issue; so we don't want to pre-empt anything. He has to explain how many investors he got; and, how successful or otherwise the road show was," he said.
Draft Bill Proposes Repeal of Oil, Gas Laws
From Damilola Oyedele in Abuja, 08.05.2008
A draft bill to seek legitimacy for the proposed new structures in the oil and gas sector and to seek the repeal of all existing laws in the sector had been presented to President Umaru Musa Yar’Adua by the presidential committee on Oil and Gas Sector Reform Implementation headed by Dr. Rilwanu Lukman.
The bill, which is intended to facilitate the oil and gas sector reform, is seeking the repeal of the Petroleum Act, Petroleum Profits Tax Act, Petroleum Products Pricing Regulatory Authority Act, Petroleum Equalization Fund Act, Petroleum Technology Development Fund Act and the creation of the National Petroleum Asset Management Agency, National Petroleum Research Centre, National Petroleum Directorate and National Petroleum Inspectorate, among other new agencies.
President Yar’Adua, while receiving the draft at the State House in Abuja yesterday, stated that the government would look into it and present it to the National Assembly for consideration. He added that it would be part of a memo adopted by the minister of energy for consideration and passage by Federal Executive Council later in the week. This, Yar’Adua stated, would form a critical step for the implementation of the recommendation of the report.
“We will also engage immediately in undertaking critical steps to consult the National Assembly leadership and also create the opportunity for committee to interact with the Senate and House of Representatives committees on energy and other stakeholders so that, like you suggested, there will be a total buy in by all stakeholders. It is important that Nigeria as a nation identifies itself fully with the reforms that we intend to do as recommended by this committee. “
Yar’Adua reiterated his commitment to reform the petroleum sector with a view to making it “viable, competitive, and highly commercial and profit oriented.” He lamented that the Nigeria National Petroleum Corporation (NNPC) has not measured up to international standards.
“Indeed all of us know that other national oil companies that have come into being, after our national oil company, are now by far ahead of us because they have restructured and operating in a manner that this report proposes to organize our petroleum sector and have a truly national oil company that will be commercially and profit-oriented and that will compete with other national oil companies elsewhere in the world”,
Dr. Lukman, while explaining on the aims of the bill, stated that the bill would provide for the incorporation of the NNPC into a limited liability company.
“We have provided for the incorporation of the loose joint ventures that are operating in the oil industry into proper joint venture companies, not only to make them more efficient and transparent but also to raise whatever fund they require from the money market like other oil companies do without the oil industry having to turn to the coffers of the federal government to finance their operations.”
He added: “the main thrust of the reform is to put the industry on even a keen, transparent, to make it more proactive and more importantly to enable the country to realize its full potential in the oil and gas sector, and also for us to encourage more participation by our people in the industry which is the life-line of the national economy. We have suggested and postulated new organizations, new organs to carry out these reform programmes, including the reforms of the existing ones and restructuring them into viable structures that we hope will work more efficiently, more proactively and more responsive to the challenges that the Nigerian oil industry finds itself in the moment.”
“We have prepared in the process a draft bill to go with the recommendation and this draft bill provides in some sense for the realignment of some of the existing laws in some case creating of new laws to make it more up to date and more importantly to put the oil industry on a much more key so that it can run better. The law itself is intended to make it clear the different roles of the different organs of government for some of the confusion we had in the past is the overlapping responsibility and authority to be clarified so that new structures that are going to be in place will have a clear-cut mandate of what is required of them and so that there will be no confusion in those structures so that the whole industry will work efficiently than in the past.”
If It's Just The Aban Getting Out To Sea In The Month Of August Then Most Of Us Already Suspect That Will Be The Case. If It's a ROO Within A Week or 2, Then A Tip Of The Hat To Ya.
Nigeria’s Oil Production Drops Below 1mbpd
•Can’t meet 2.1mbpd OPEC quota
By Chika Amanze-Nwachuku, 07.30.2008
There are strong indications that Nigeria, the sixth biggest oil producer in the world and Africa’s biggest oil producer, can no longer meet the Organisation of Petroleum Exporting Countries (OPEC) production quota.
The country’s current production level has dropped below 1 million barrels per day (mbpd) owing to frequent shut-ins due to renewed attacks on oil facilities in the Niger Delta region.
Prior to the escalation of violent attacks on oil installations, Nigeria produced between 2.5 and 2.6 million barrels of crude oil per day.
The country with its abundant oil potentials has the capacity to produce about 3.2 million barrels of oil per day.
Between late last year and January, this year, Nigeria’s crude production had appreciated following a directive by the Federal Government that oil companies operating in the country should increase output from the deep offshore fields.
Sequel to the increase in crude production, Nigeria was able to meet its daily production quota of 2.1 million barrels per day allocated to her by OPEC.
However, following the recent upsurge in attacks on oil companies’ facilities, particularly the Royal Dutch Shell that produces about 20 per cent of the nation’s oil, coupled with theft of oil in the region, Nigeria’s oil production is now less than 1 million barrels per day, far below the 2.1million barrels OPEC mark.
An official of the Ministry of Energy confirmed last night that, “Nigeria at the moment cannot meet OPEC quota, because production has gone down below 1 million barrels per day.”
“How can we meet the OPEC quota when we now produce less than 1 million barrels per day. This is the lowest level so far recorded. There is serious problem and it does not look like the end is near.
“Only recently, Bonga field was attacked. We are yet to recover from that one. The militants have continued their attacks, and others facilities have been hit.
“The NPDC is not producing because of Niger Delta crisis. Where are we going from here,” the official said.
The attack on Bonga, Nigeria’s biggest offshore facility and Chevron installation in June had resulted in the shut in of about 250,000 barrels per day.
Before then, Shell, the worst hit, had a shut-off of about 400,000 barrels per day owing to incessant attacks on its facilities by militant groups in the region.
The attacks on Shell has not only adversely affected Nigeria’s crude quota, but has robbed the country, since oil accounts for more than 80 per cent of its foreign earnings.
In its recent report, OPEC had noted that Angola had topped Nigeria in terms of crude production due to crisis in the oil-rich Niger Delta.
Reacting to the report by OPEC, Minister of State for Energy (Petroleum), Odein Ajumogobia, SAN, had told newsmen in Madrid, Spain, that the OPEC statement came in the wake of the attacks on Shell Bonga field and Chevron facility, which had resulted in the shut in of about 250,000 barrels of oil per day.
He said Nigeria’s output at that time (early this month), stood at about 1.886 million barrels a day.
“Our production levels currently are about the same and because of the issues in the Niger Delta, it fluctuates. In fact, at the time that statement was made, we just lost about 250,000 barrels to separate attacks on Bonga and Chevron. It is also of utmost importance to say that Nigeria’s capacity is actually over 3 million barrels per day and half of the shut in capacity is the direct consequence of the issues regarding the security in the Niger Delta area.
“There are security challenges in the Niger Delta, but there is no doubt that we are facing those challenges, through the process of enhancing security in the area. We recognise the issue as very important, and have to confront it for us to grow production,” he said.
However, the production level, which has been hovering between 1.8 million barrels and 2 million barrels per day, has reduced drastically from the about 1.4 billion mid this month to below 1 million, causing shivers in the industry sector that it may take some time before the production could boom again.
Nigeria’s crude oil has been the preferred grade in the international market due to its low sulfur content.
Nigeria's crude oil production which had hovered between 1.8 million and 2 million barrel per day had dropped further, as the Shell Petroleum Development Company (SPDC) Monday shut in production of 130,000 barrels per day owing to an attack on its Nembe Creek trunk line.
The Movement for the Emancipation of the Niger Delta (MEND) had last week vowed to renew pipeline attacks within 30 days in protest against a statement credited to the Acting Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Alhaji Abubakar Yar'Adua, that the corporation paid militants about $16 million to enable it access the damaged Chanomi Creek pipeline for repairs.
The corporation had since debunked the report, insisting that it paid the communities and not any militant group in order to have access to the pipeline.
Niger Delta militants had earlier blown up the Chanomi Creek pipeline, which feeds the Warri and Kaduna Refineries in 2006.
The development had forced the country to import all its petroleum products as the two refineries as well as the Port Harcourt Refinery were out of operation.
MEND spokesman, Jomo Gbomo, who signed the statement, had said the action was "in keeping with our pledge to resume pipeline attacks within the next 30 days".
The Nembe Creek line was last attacked on May 26, prompting SPDC to declare a "force majeure" on Bonny Light crude exports for June and July.
Force majeure is a legal clause that allows producers to miss contracted deliveries because of circumstances beyond their control.
Starcrest & Addax Mentioned... Chukwueke: Some Oil Blocks Awarded After Bid Rounds
From Stanley Nkwazema in Abuja, 07.29.2008
Suspended Director of the Department of Petroleum Resources, Mr Tony Chukwueke, yesterday admitted that some oil blocks were allocated after the bid rounds.
Chukwueke, while answering a question asked by the 26-man House of Representatives ad hoc committee investigating the Nigerian National Petroleum Corporation (NNPC) oil blocks awards, said "let me say that an offer will precede an award. Yes, there were some awards which were made after the bid rounds at the discretion of the Minister and we take instructions from the Minister, The Minister has the powers under the Act to make those awards."
He also said "the award of OPL 236 to Oando was on the instruction of the Minister. We gave out what we found in the files and what we didn't find in the files, we can't give you. We did not find some of the documents in the file."
The committee had frowned at the fact that while some companies who were lawfully qualified for the bid rounds were excluded, with most of those that won up to seven blocks having the same promoters.
Chuwkwueke said "all is aimed at improving the local content partnership. Nigerian companies complained and the minister asked them to form consortiums during the road shows and the bid conferences. 369 companies applied and the committee did not have the opportunity of going to the CAC to verify records of all the companies. We decided that those without identities be disqualified. But the companies that emerged where those of the LC vehicles that the ministries merged to be equal to the number of blocks that we had. They were 45 in number at the end of the day.
"When we got the qualified list from the Ministry, we did not question it. If we found out that some companies or names were repeated, that is where the contradiction came from. What I can say is that when we carried out our variation, we sent a list to the Ministry and they came back with the same lists.
"If you look at the data they supplied to us, you would see that the information did not indicate this multiple directors and we are just discovering that and will take it up as soon as possible. The DPR is not independent and relies on directives that emanates from the Ministry that supervises the department. The LC vehicles were chosen by the operators after they won the blocks. We opened the envelopes and also opened the second envelopes to check names of local companies. If you look at the Petrobras and Statoil blocks, they chose their local content. The same thing goes for ASK which emerged after a merger,"
On the bid rounds proper he said, "for the 2005 bid rounds, iwe ensured that all the PSC that were signed were paid. There was also a letter of Credit on some blocks and a committee was set up by the Federal Government to further give them time to settle the debts. DPR was asked to comply with the directive."
On the protests by Starcrest Investments Limited against Starcrest Energy Nigeria, Chief Emefo Etudo, a director of the company alleged that "about 10 persons, powerful individuals connived and cornered $35 million. They were able to seize an oil block. We have a record of money that exchanged hands. They used one company which is non-existent. They used funny names to seize OPL 229 in August 6, 2006," Emefo said.
He alleged that it was Chuekwueke who offered them OPL 291 and made another offer in the name of Starcrest Nigeria Energy, while " the paymaster was Addax who in June 2006 paid $13million without taking part in the 2006 bid round. They paid for the block they did not bid for. One Iliasu from the EFCC was the IPO, they used $35million of other country's money," he said and asked the committee to "summon the bankers to deal in Port Harcourt you will get further facts on the internet. The company was not in operation when the Right of First refusal was purportedly granted. Without going through the document we sent, the new Minister of State Energy (Petroleum) Mr Odein Ajumogobia said we did not have a case. He, therefore, called on the House to direct the EFCC to forward excerpts of the investigation on the petition by Starcrest Investments against Addax and others involved in the allegation.
Chukwueke also told the committee that payments were not effected or received on OPL 723, 228, 234, 235,274,275,278,281,287,288,289, 290 and 252 in 2005 bid rounds because the PSCs were yet to be signed, pleading that he be allowed to change his earlier statement.
The committee also discovered that in the 2005 bid rounds, while $2,629,275,667 was recorded as income, only $1,71,246,277billion was actually paid into various accounts by the DPR and some of the companies like Oando paying in naira while others made payments in foreign currency.
The investigations continues today at the Conference Room of the House of Representatives new complex
N’Delta: Yar’Adua Directs PTDF to Intervene
From Patrick Ugeh in Abuja, 07.24.2008
President Umaru Yar'Adua has directed the Petroleum Technology Development Fund (PTDF)to intervene in the development of the Niger Delta by establishing a number of educational institutions in different states within the region.
Specifically, the President directed the agency to develop a Federal Polytechnic for Oil and Gas Studies at Ekowe, Bayelsa State; National Technical Institute for Petroleum and Gas Studies at Bonny, Rivers State, and primary and secondary schools at Okerenkoko and Oporoza in Delta State.
Executive Secretary of PTDF, Kabir Mohammed, who made this disclosure yesterday in Abuja while receiving a delegation from Uganda, said the decision stemmed from the Niger Delta stakeholders' meetings on the accelerated socio-economic development of the zone.
He explained that the Fund does not subject its finances to scrutiny by the National Assembly like nearly all the other federal ministries, departments and agencies as it is exempted from appropriation because 'the signature bonus from oil blocks every year comes to us. So we do what we want without going to the assembly.'
The PTDF chief also disclosed that the agency spends 24,500 pounds sterling per year on each of the 731 MSc students it has sponsored abroad under the Overseas Scholarship Scheme for those going for oil and gas studies from 2002 to 2007.
Mohammed said another 115 PhD scholars benefited from the scheme between 2003 and now which he said is part of PTDF's mandate to refocus completely and focus on capacity building.
According to him, the Fund would attain, and might even surpass, the government's plan to attain 70 per cent in the Nigerian content or local content scheme by 2010, saying the current level is 45 per cent.
Legal Proceedings: DOJ, SEC and U.S.Senate Committee Subpoenas. On May 4, 2006, a search warrant issued by the U.S. District Court of the Southern District of Texas, Houston Division, was executed on ERHC seeking various records including, among others, documents, if any, related to correspondence with foreign governmental officials or entities in Sao Tomeand Nigeria. The search warrant cited, among other things, possible violations of the FCPA, Section 10(b) of the Exchange Act, Rule 10b-5 under the Exchange Act and criminal conspiracy and wire fraud statutes. ERHC filed suit in federal district court in Texasin June 2006 seeking to protect the Company's attorney-client privileged documents and to allow its counsel to determine the factual basis for the DOJ's search warrant affidavit, which is currently under seal.
A related SEC subpoena was issued on May 9, 2006, and a second related subpoena issued on August 29, 2006. The subpoenas request from ERHC a range of documents including all documents related to correspondence with foreign governmental officials or entities in Sao Tome and Nigeria, personnel records (specifically, those regarding the Company's former Chief Financial Officer, Franklin Ihekwoaba) and other corporate records. The Company has been actively responding to both subpoenas.
On July 5, 2007, U.S. Senate Committee on Homeland Security and Governmental Affairs' Permanent Subcommittee on Investigations served ERHC with a subpoena, in connection with its review of matters relating to the potential abuse of payments made to foreign governments. The subpoena, as amended on July 18, 2007, seeks documents and information regarding ERHC's activities, particularly those related to the acquisition of ERHC's interests in the Gulfof Guinea. ERHC's attorneys, Akin Gump Strauss Hauer & Feld LLP, are assisting ERHC in responding to all subpoenas.
The investigations by the DOJ, SEC and Senate Subcommittee are continuing. The Company anticipates that these investigations will be lengthy and do not expect these investigations to be concluded in the immediate future. If violations are found, the Company may be subject to criminal, civil and/or administrative sanctions, including substantial fines, and the resolution or disposition of these matters could have a material adverse effect on its business, prospects, operations, financial condition and cash flows.
ERHC/Addax Arbitration. Addax, our consortium partner in JDZ Block 4, claims entitlement under our existing agreements to 7.2% out of the recovered 9% interest in Block 4, leaving 1.8% remaining with ERHC. The parties are currently in arbitration to determine whether additional consideration is payable to ERHC under the existing agreements for the 7.2% claimed by Addax. If Addax's claims are successful, ERHC's share of JDZ Block 4 will increase from 17.7% to 19.5% and Addax's share of the JDZ Block 4 will increase from 33.3% to 40.5% for no additional consideration paid to ERHC. The parties are also exploring mediation as a potential alternative to arbitration.
From time to time, ERHC may be subject to routine litigation, claims, or disputes in the ordinary course of business. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on ERHC's consolidated financial position, results of operations or cash flows. ERHC intends to defend these matters vigorously; the Company cannot predict with certainty, however, the outcome or effect of any of the litigation or investigatory matters specifically described above or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of these lawsuits and investigations.
http://sec.edgar-online.com/2008/02/11/0001140361-08-003535/Section13.asp
Sao Tome and Principe: France announces funding of agricultural projects in São Tome [ 2008-07-18 ]
(Awful Lot Of Countries Forgiving Debt & Funding/Loaning Money To Sao Tome and Principe Lately. Think Oil Might Have Anything To Do With It? R.M.)
Sao Tome, Sao Tome and Principe, 18 July – France is to provide funding of 5 million euros to Sao Tome and Principe for agricultural projects, French business attaché, Frederic Marlet said in Sao Tome Wednesday.
According to the French diplomat, who was speaking to the press following a meeting with agriculture, rural development and fisheries minister, Xavier Mendes, the funding will be provided by the French Development Agency.
"A team of French experts will arrive in Sao Tome in September on a working visit to set up a subsidiary for the projects we plan to support. When they arrive, we will have working meetings with the minister and other entities and, at that time, we will set out what will be done, within the scope of cooperation with France,” Marlet said.
The diplomat noted that rural and urban infrastrutures were amongst the projects that had been earmarked for funding.
On 15 March the French government wrote off a debt of 7.6 million euros owed to it by Sao Tome and Principe.
Of that amount, 7.26 million had been taken out by Sao Tome and Principe as part of the Paris Club and 0.34 million was bilateral debt. (macauhub)
Have Not Been Able To Go To RB (ERHE) For Days, Anyone Else Having The Same Problem??
New Nigerian militants threaten war
*Ika Revolutionary Movement Threatens War
- Masterweb News Desk
( Thursday, July 17, 2008 )
http://www.africamasterweb.com/AdSense/NigerianNewMilitantsThreatenWar.html
"Finally, we will wait to see the out come of the summit and if it does not favour us as a Nation, then, Abuja will be the next battle ground, if going to war with the Nigerian Government will bring about the long awaited freedom and developments in our region, then so be it.. Be warned,don't take us for granted, MEND might not have the capacity to deliver, but others do, so be warned !!" -Commander I.K, Ika Revolutionary Movement( IRM )
*Published unedited as emailed Tuesday, July 15, 2008 by Commander I.K( Email: ikamovement@gmail.com ) representing a group claiming to be Ika Revolutionary Movement( IRM ).
Ika Revolutionary Movement(I.R.M)
xxxxxxxxxxxx
Agbor..
Delta state
To those concerned !!!
We of the above movement in Delta State, do hereby states that the Ijaw's struggles for resources control as they claim are theirs and does not reflect to the struggle of the entire people of the Niger Delta people.
For some time now, we have being observing with interest, all statements and press conferences from the various groups in ijaw land that they are freedom fighters, fighting to liberate or for the emancipation of the oil states from the federal Government so to say and at the end, they proceed to their various state house to be paid N100,000.000,00 monthly which was supposed to be meant for developments in these states of the region (delta, rivers, bayelsa, edo, etc) to mention but a few, now,the big question is who is fooling who?? we all have arms and know where to purchase more arms and how to apply these arms in the niger delta crises and at the end we will get our fair share of the state's monthly allocation as well..
Does these so called ijaw groups really do have an object(s), are they actually fighting for a course? the answer is "NO", rather, they are fighting on whose pocket get's filled first with oil naira bills.
The entire Niger Delta States might be drewn to battle if these ijaw militants do not adjust, there are other tribes that might take up arms and demand for equal share of the monthly state allocation as it is their right using the already abused marginalisation issue as a fronter.
The appointment of Professor Gambari is an insult to the niger delta people because this is the same man that called us "common criminals" while addressing the UN Secirty Council after the state sponsored killing of ken Saro Wiwa..the north should not take us for a fool, this might just be what is needed for a total seperation, all nationalities within the nigeria project should be prepared to part ways if the north does not stop these belittled political games they are playing, we of the I.R.M will fight to ensure that the niger delta states seperate itself from nigeria afterall, other states has one or two resources to fall back in other to develop their respective states, while the biafrans should look else where as we of the niger delta region intend not to merge with any other nationality..
The Ika Revolutionary Movement,representing the entire interest of the Igbo speak parts of delta state and the Niger Delta as a whole do hereby reject to it's totality the involvement of any northerner to chair the niger delta summit, there will be severe consequences if this advise is disregarded, While for Gambari's best interest, we will advise him to decline such offer because if he accept's, then his days shall be numbered here in our land..
We also advise our ijaws to stop destructing the little they have in their various states and change course, afterall Abuja is our money..
Finally, we will wait to see the out come of the summit and if it does not favour us as a Nation, then, Abuja will be the next battle ground, if going to war with the Nigerian Government will bring about the long awaited freedom and developments in our region, then so be it..
Be warned,don't take us for granted, MEND might not have the capacity to deliver, but others do, so be warned !!
Commander I.K
Ika Revolutionary Movement( IRM )
for the Ika Kingdom
Britain Offers Training to Quell N’Delta Violence
07.17.2008
UK Visit
Britain is to help Nigeria crack down on violence which has disrupted oil supplies in the troubled Niger Delta through a security training force, Prime Minister Gordon Brown said yesterday.
Speaking after talks with President Umaru Yar'Adua, a senior Downing Street official indicated this would involve British military experts providing military advice to Nigeria.
"The UK will ... work with the government of Nigeria to identify a training and advisory support package which could help improve Nigerian capability to improve security in the Delta," Brown said at a news conference.
"The security training force that we're talking about will be support for the Nigerians, to be able to have trainers and others who can build up this capacity locally to deal with the problems."
No more details were immediately available about the numbers of experts or a timeframe for action.
Brown added that the high price of oil meant it was necessary to look around the world for sources.
"One of the areas where we can make greatest progress most quickly is increasing the oil production of the Niger Delta," Brown said.
"That's why the security arrangements that we're discussing to be done jointly are very important to the future not just of Nigeria and peace there but also to the world energy market."
The Nigerian leader said British help would focus on river and maritime security around the Delta, which is the hub of Nigeria's multi-billion-dollar oil and gas industry.
Yar'Adua added that he had asked Brown to lead a campaign at the United Nations against so-called "blood oil" -- oil stolen in the Delta, which he wants stigmatised in the same way as "blood" diamonds.
"I asked for his support to lead a campaign at the United Nations to track stolen crude and to declare it blood oil just like the Kimberly diamonds so that there is a concerted international effort to ensure that stolen crude is trapped," the president said.
The Kimberly process is a certification scheme introduced in 2003 which requires participants to identify diamonds as conflict-free in origin. (AFP)
Brown said he would "give what support we can" to international efforts on this.
The deprived Niger Delta has been the scene of a low-level insurgency and criminal activity, including kidnapping of oil workers and oil theft, for many years.
Ahead of the talks, Brown said up to 1.5 million barrels of oil a day were lost due to lawlessness in the Delta region.
Unrest in the Delta has reduced Nigeria's oil output by a quarter, causing it to lose its position as Africa's biggest oil producer to Angola, according to April figures from the Organisation of Petroleum Exporting Countries (OPEC).
Several foreign firms, including French tyre company Michelin and oil servicing firm Wilbros, have left the Delta because of security problems.
Brown also announced at the press conference 50 million pounds (63 million euros, 100 million dollars) worth of funding to help tackle malaria in Nigeria.
UK and Nigeria join forces on oil theft
By William Wallis in London and Matthew Green in Lagos
Published: July 16 2008 03:00 | Last updated: July 16 2008 03:00
Britain and Nigeria will seek ways to tackle one of the fastest growing criminal rackets in the world, the industrial-scale theft of Nigerian crude oil, when Gordon Brown, prime minister, hosts Umaru Yar'Adua, the Nigerian president, in London today.
Mr Brown has offered help in cracking down on an insurrection in the oilproducing Niger Delta region, where theft and sabotage have reduced Nigerian output by a quarter and contributed to soaring world energy prices.
"These are criminal acts . . . What we're looking at is how we can help ensure there is law and order in what is a very dangerous area," Mr Brown said.
His offer has received a mixed response in Nigeria. One official said that while support from Britain in patrolling international waters could be helpful, any suggestion of military assistance inside Nigeria would be counter-productive.
Figures in the government and military who are involved in the oil theft could undermine any foreign-backed strategy by painting it as a threat to Nigerian sovereignty.
Some Nigerian officials and politicians believe Britain could be of most help if it threw its diplomatic weight behind efforts to curtail the international trade in stolen Nigerian oil.
In an interview with the Financial Times, Patrick Dele Cole, a former adviser to Olusegun Obasanjo, the former president, said on a bad day more than 500,000 barrels of oil were stolen. An international cartel had emerged, he said, trading the crude in parts of Africa, east Europe and Asia.
"In exchange for the oil, there are now arms coming in, and in exchange for these arms insurrection is being fuelled. And so you have a vicious cycle," Mr Cole said.
A heavyweight politician from the Niger Delta, he has gone public with a plan to end the crisis, which has caught the attention of policymakers. He proposes a tracking system to halt the trade in stolen oil and the use of recovered proceeds to fund security and development in the delta.
Without a parallel development strategy in the area, he said, no amount of troops would ease the crisis. Nigeria's armed forces were compromised by officials profiting from the trade in stolen oil, he said, and it might be necessary to hire private security assistance.
Mr Yar'Adua echoed some of the Cole proposals at the G8 summit last week, when he called for a tracking system for oil similar to the Kimberley process set up to curb the trade in diamonds from African war zones.
Mr Yar'Adua is planning a Niger Delta conference bringing together militants, community leaders and government officials in search of a solution to the crisis.
Copyright The Financial Times Limited 2008