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aa: Do Your Guys Have Any Idea Of Job Completion? Most shipyard workers would know if it would be soon (days, weeks) or far out (month or more).
Britain offers to help keep Nigerian oil taps open
LONDON (AFP) — Britain is offering to help Nigeria crack down on violence in the troubled Niger Delta, which he said has disrupted oil supplies from the African nation, Prime Minister Gordon Brown said Monday.
Speaking ahead of talks in London with Nigerian President Umaru Yar'Adua, he said that up to 1.5 million barrels of oil a day were lost due to lawlessness in the Delta region.
He did not specify what kind of help Britain could provide, but said: "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."
The Niger Delta, hub of Nigeria's multi-billion-dollar oil and gas industry but a deprived region, has been the scene of a low-level insurgency and criminal activity including kidnapping of oil workers and oil theft for many years.
The Delta "is an important strategic area for the world where oil supplies, if put at risk, create an instability if not a loss of supply to the world," Brown said ahead of the Nigerian president's visit to London.
"I'll be talking through with him some of the things that we could do, and perhaps the rest of the international community can do, to help," he told reporters at a monthly press conference in his Downing Street residence.
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, speaking last week after returning from the Group of Eight (G8) meeting in Japan, said the world had to work to safeguard oil supplies, at the same time as developing alternative energy sources.
"We are working with the Iraqi government to build capacity in the oil sector there, and we are discussing with the Gulf states and others how sovereign wealth funds and oil revenues can be recycled into wider energy investments," he told the House of Commons last Thursday.
That Long Of A Sea Trial + It Being A "Money" Ship, They Would Bring Along A Worker Crew For Repairs. All But Major Repairs That Is.
Ex Shipyard Worker
Militants Threaten to Attack UK Interests in Nigeria
•FG deploys more troops in Bayelsa
From Ahamefula Ogbu in Port Harcourt, 07.11.2008
The Movement for the Emancipation of the Niger Delta (MEND) has threatened that it will from midnight of Saturday call off its four-week old unilateral ceasefire in reaction to the pledge of military support to the Federal Government allegedly made by British Prime Minister, Mr. Gordon Brown.
Brown had told journalists at the G8 summit in Japan that his country would help Nigeria "deal with lawlessness" in the region – a statement that MEND believes means military action.
The militants threatened that British interests and citizens in Nigeria would be in danger if Brown went ahead to provide military support “for the continued suppression and marginalisation of the region through destruction of lives and environment”.
MEND, in an e-mail signed by Gbomo Jomo, said they were going to hurt the interest of Britain which it accused of causing the problem that is currently haunting the country through its “divide and rule tactics which favoured a section of the country”.
The militant group claimed it was irked that at the G8 summit, Brown offered to help Nigeria militarily in the Niger Delta which they claimed amounted to lending a hand to the Nigerian government “to further the violation of their human rights.
They decried the impression being painted that the problem in the Niger Delta stemmed from oil thieves in the region, pointing out that it was common knowledge that the region was neglected for over 50 years of oil exploration and degradation of the environment.
The statement read: “The Movement for the Emancipation of the Niger Delta (MEND) wishes to sound a stern warning to the British Prime Minister, Mr. Gordon Brown, over his recent statement offering to provide military support to the illegal government of Umaru Yar'Adua in further oppressing the impoverished people of the Niger Delta.
“To demonstrate our seriousness to the UK support of an injustice, MEND will be calling off its unilateral ceasefire with effect from midnight, Saturday July 12, 2008.
“The United Kingdom is part of this problem with the politics it played pre- independence that gave leverage to some sections of the country which has helped in marginalising and exploiting the region today.
“Should Gordon Brown make good his threat to support this criminality for the sake of oil, UK citizens and interests in Nigeria will suffer the consequence.”
Despite widespread advice against a military action, more soldiers have been deployed in the region, THISDAY investigation has revealed.
Most of the soldiers have been deployed to take over existing checkpoints in the capital city of Yenagoa and environs, while new ones are being created at strategic locations in and around Yenagoa.
Although no reason was advanced for the mew military presence on the streets of the capital, THISDAY gathered that more troops were deployed in the volatile areas of Southern Ijaw and Ekeremor local government areas which account for most of the disturbances in the region.
The troops were deployed from the jetty of the Warri Naval Base, NNS Delta, in Delta State.
A security source told THISDAY that the large military presence was part of their mandate to safeguard the lives and property of the citizenry.
The crisis in Nigeria has been the greatest impediment to the development of the region which makes the nation lose 62,500 barrels of oil valued at N8 billion daily, President Umaru Musa Yar’Adua said yesterday in Port Harcourt, Rivers State.
He was flagging off the oil and gas conference organised by the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHACCIMA) which theme is on local content.
The President, who spoke through the Minister of State for Petroleum and Energy, Mr. Henry Odein Ajumogobia (SAN), lamented that the security situation in the Niger Delta was not allowing the harnessing of the full potentials of the oil and gas endowments.
He regretted that the activities of “vandals” was costing the nation much while putting the environment and the people to risk in addition to threatening to derail the economic development plan of the government in the sector.
On the local content drive of the government, he regretted that of all the over $10 billion spent annually in the oil and gas sector, less than 10 per cent of it was being spent within the economy which was not good enough.
Yar’Adua canvassed an increase in the refining capacity of the country from the present 12 million litres a day to about 40 million litres a day if it had to meet the local demand.
The President observed that most of what was spent in the sector is still being given to foreign companies because of lack of capacity which he charged the local players in the industry to strive and build capacity.
He asked all groups which have taken up arms in the region to lay them down and allow peace to reign so that the developmental programmes of the administration which he said he was irreversibly committed to implementing.
Yar’Adua pressed for total peace devoid of kidnapping of expatriates and children for ransom so that industries would blossom while investors would find the nation a profitable place to invest in.
According to him, proper planning would mean the country pressing for rapid industrialisation that would sustain the economy in the event that the oil and gas deposits of the country run dry.
Earlier in his welcome address, President of the Chamber, Prince Billy Gillis Harry, said the aim of hosting the programme in Port Harcourt was to prove to the world that the city had returned to normalcy and safe for investors.
The PHACCIMA boss lamented that the effect of militancy had driven investors out of the region but said those who want to wait for total peace to return before coming back might discover they have no space to operate by that time.
He stressed the need for Nigerians to increase their stake in the oil and gas production sector as it would discourage capital flight.
Sao Tome and Principe: Sao Tome government makes pledge to IMF to reduce domestic spending [ 2008-07-09 ]
Washington, United States, 9 July – The government of Sao Tome and Principe has made a commitment to the international Monetary Fund (IMF) to contain its expenditure and provide all requested information about its economic policy, according to a document published Tuesday in Washington.
In a “letter of intent,” dated 4 June, sent to the IMF and now made public by the organisation, the Sao Tome government said that in order to control inflation it was “determined to strengthen the implementation,” of its economic policy, “particularly in containing primary domestic spending and on reducing liquidity growth.”
The letter was signed by Raul da Costa Cravid, the minister for Planning and Finance of the previous Sao Tome government and by the governor of the Sao Tome central bank, Luís Fernando Moreira de Sousa.
“The goevrnment will provide all the information requested by the IMF about progress on applying the financial and economic policies and to reach the programme’s objectives,” the letter said.
The government is committed to, “making all efforts to speed up structural reforms,” and reduced the primary domestic deficit of 8.1 percent of GDP, to 5.2 percent this year.
The Sao Tome government has also pledged to start reforms aimed at, “reducing the cost of investing and doing business in Sao Tome and Principe,” which is considered, “crucial to developing the potential of exports and economic productivity.” (macauhub)
Cher: There Were Days I Disagreed With You, But They Were Few And Far Between. For the most part you did a great job while working with a thankless crowd. Thanks for your service & I hope all is well at home. R.M.
Sao Tome and Principe: Nigeria and Sao Tome to debate oil exploration [ 2008-07-08 ]
Sao Tome, Sao Tome and Principe, 8 July – Sao Tome and Principe and Nigeria have started a meeting with a view to concluding the first auction of six oil blocs in the joint development area, the chairman of the joint authority, Jorge Santos said Monday in Sao Tome.
As well as analysing the contract proposal for sharing production of two blocs, which have yet to be granted, Santos said that the Joint Ministerial Council would also analyse a proposal for granting a contract for seismic surveys to Norwegian oil company, Petroleum Geo-Service (PGS).
Contracting PGS has the aim of carrying out a new seismic survey of the common area, located in deep waters, with a view to launching a new round of tenders for three blocs, scheduled for October 2009.
The oil companies, namely Addax Petroleum, Andarko, Chevron-Texaco and Sinopec hold exploration concession on the four blocs in the area, following the signing of production sharing contracts with the Joint Ministerial Council, the decision-making body that includes four ministers from each country.
Signed in February 2001, the joint exploration treaty states that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome. (macauhub)
Brazil: China wants partnership with Petrobras for oil drilling off Chinese coast [ 2008-07-08 ]
Sao Paulo, Brazil, 8 July – China plans to invite Brazilian state oil company to drill for oil off the country’s coast, a region with estimated production potential of some 7 billion barrels of oil.
In return China wants the opportunity to explore oil along some 800 kilometres of the Brazilian coast, where large reserves were recently discovered.
“We know we have a lot of oil,” said the chairman of Chinese state company CNOOC, Fu Chengyu, speaking to Brazilian newspaper, Estado de São Paulo.
“But that oil is in deep waters adn we know that Petrobras today is the company that can best identify that. Therefore we are going to invite the company to work with us on this project,” he noted.
The Chinese government said, meanwhile, that the CNOOC, “also wants to explore the possibility of acting on the Brazilian coast, where there is an indication of large reserves.”
Fu Chengyu said that each inhabitant of a developed country consumes 17 barrels of oil per year, seven times more than in an emerging country and 17 times more than a Chinese consumer.
Last week Petrobras and Sinopec, one of the biggest land-based oil producers in China signed a memorandum of understanding to increase trade in oil.
Petrobras has so far this year exported some 12 million barrels of oil to China, as a result of an export contract with the Chinese company. (macauhub)
EU to Assist N’Delta with N59bn – Shell
07.09.2008
Shell Petroleum Development Company (SPDC) has said that about N59.2 billion is being expected from the European Union for the development of the Niger Delta region.
The company made the announcement yesterday in Warri at the signing of a sub-contract agreement between Dorman Long Engineering Limited and Decsalfa Limited.
Mr Ubaka Emelumadu, the Social Performance and Community Affairs Director of SPDC, said in a statement that the EU wanted to be convinced that the funds would be managed by a credible agency before releasing it.
He urged the communities in the region to form themselves into registered foundations to be eligible to access the funds.
Emelumadu said the foundations would inspire the donors' confidence that the funds would be judiciously utilised by the beneficiary communities.
He likened the situation to the Global Memorandum of Understanding (GMOU) which the SPDC had in its Eastern operations.
The director explained that under the GMOU, communities formed trustees which were positioned for funding from their state/local governments and international donors.
He explained that the contract signing ceremony was aimed at bringing together the Shell contractor and the firm from Amatu 1 Community to restore the mutual trust and confidence that existed between the parties.
Emelumadu said Shell had created ``Community Content Team,'' as an aspect of the Nigerian Content Initiative, aimed at building contracting capacity for big projects in the region.
He said the initiative would support communities to set up companies if need be, adding: ``
The community content is looking at things that can happen."
The statement quoted the Chairman of Decsalfa, Chief Decca Keredei, as commending Shell for initiating the process for economic capacity building in his domain.
He described the ceremony as the beginning of a journey to make members of the host communities part of the oil and gas business.
Keredei advised Shell to be transparent and open to the local people by giving them opportunities to make their own contributions.
He noted that the people had a lot to contribute to the development of the area.
Shell Not Yet Directed to Leave Ogoniland’
From Ahamefula Ogbu in Port Harcourt, 07.07.2008
Anglo-Dutch oil giant, Shell Petroleum Development Company (SPDC), has denied getting any directive from the Federal Government to leave Ogoniland.
Speaking in an interactive session with journalists in Port Harcourt weekend, the Managing Director of Shell, Mr. Mutiu Sumonu, said Shell had heard of the Presidential pronouncement on its facilities in Ogoniland like every other Nigeria via the media.
He said: “We are yet to get any letter or official directive on the matter as at today. The Federal Government has not formally notified us. There has not been a formal letter. We have heard and discussed it. What the President said is headline statement which details are not available.”
President Umaru Musa Yar‘Adua had June 4 announced that another company might take over oil exploration from the SPDC in Ogoniland by the end of 2008.
Yar’Adua, at a session with the Nigerian community in South Africa, explained that the loss of confidence between the Ogoni and the SPDC meant that the latter (Shell) should withdraw from Ogoniland.
He had said: “There is a total loss of confidence between Shell Petroleum and the Ogoni people; another operator acceptable to the Ogoni will take over. Nobody is gaining from the conflict and stalemate, so this is the best solution.”
The President had also disclosed that agreements had already been reached for the SPDC to pay compensation for environmental degradation to the Ogoni.
Sumonu said Shell needed between $3 and 5 billion (N351 and 585 billion) to end gas flaring in its facilities in Nigeria after spending $3 billion so far on gas gathering facilities.
He said the firm had been making serious efforts to end the practice, but blamed paucity of funds for the continued flaring of gas.
Sumonu said if Shell was willing to fund the project, it needed the Federal Government to make its own contributions.
According to him, the Joint Venture agreements between Shell and the Federal Government also work in the gas flaring stoppage scheme.
According to Sumonu, the government is expected to contribute 55 per cent of the money needed for the gas gathering facilities that will end flaring.
“Today we have spent $3 billion commissioning gas gathering facilities. To cover all our facilities, we will need between $3 billion and $5 billion. We are mindful towards stopping flaring but due to under funding and security to access facilities, we have not been able to stop it in all the facilities we have. We hope the Federal Government will pay its own part of 55 per cent of the cost,” Sumonu said.
On debts to local and international contractors, he said the firm was working out the details of a facility it intends to advance to the Federal Government so that all the debts would be defrayed.
The debts, he said were causing a lot of disquiet in the oil-servicing companies, especially local contractors some of whom were last paid in October 2007 and have resorted to putting their staff on redundancy list after the debts stalled their operations.
He said the firm was also finalising arrangements for a class action suit to recover the debts put at $1.3 billion, adding that Shell was paying multi-national companies their monies while holding back those of local contractors.
Responding to the allegation that Shell was giving preference to contractors who had militancy leanings to avoid vandalism of its facilities, the Shell boss denied the allegation.
Shell Engages 4000 Locals to Protect Pipeline
•Gunmen kidnap Yobo’s brother
From Ahamefula Ogbu in Port Harcourt, 07.06.2008
Shell Petroleum Devel-opment Company has entered into an arrangement called “Com-munity and Shell Together (CAST)” aimed at using people in communities in which oil pipelines are laid to protect the facilities from vandalisation.
The initiative was anno-unced about the same time as kidnappers yesterday struck in Port Harcourt, Rivers State, where they seized Mr. Norum Yobo, younger brother to Super Eagles and Everton of England Football Club defender, Joseph Yobo.
Under the Cast scheme initiated to protect oil pipelines in the Niger Delta area, a projected 4,000 youths from different communities would be made to play a whistle blower role when there is any attempt at sabotaging oil and gas pipelines in their neighbourhood.
Hinting on the arrangement, the SPDC’s Manager for Pipelines Operations, Mr. Godwin Idoko, said the arrangement would cover all the 600 communities through which the 7,500 kilometre pipelines pass.
According to him, the youths would not operate like militias but would only watch and report suspected attempts at the facilities which threaten the smooth running of both the refineries and supply of gas to power plants being built across the country.
The SPDC Spokesman, Mr. Precious Okolobo, said the reasoning behind the scheme was that each community protecting the pipelines in their areas would reduce, if not stop, the spate of vandalisation across the Niger Delta.
He said the main aim was to elicit the protection of communities in protecting their facilities and though they would not carry arms, the youths would serve as an early warning system for them.
However, the younger Yobo who was kidnapped yesterday was said to have lodged at Spring Hill Hotel in Rumuomasi area of Port Harcourt and was returning to his room after a night party in the early hours of the day when the gunmen accosted and took him away.
So far, no group has claimed responsibility for the attack and that has made the motive difficult to guess. But the police have already commenced investigation unraveling but no arrest has been made.
Police Public Relations Officer in the state command , Mrs. Rita Abbey confirmed the attack. She said the kidnappers caught up with Norum Yobo at Uyo Street, brandished their weapons and seized him.
She enjoined residents of the state to be watchful and give useful information to the police to enable them track the kidnappers.
It is not unlikely that the motive of the gunmen is to get monetary gains since most kidnappings are targeted at getting money from the victim’s families. Joseph Yobo, the victim’s brother is believed to be one of the well paid Nigerian footballers plying their trade in the English Premi-ership league.
Sao Tome and Principe: Archipelago posts trade deficit of US$29.7 million in first quarter [ 2008-07-03 ]
(These People Need Some Oil Money R.M.)
Sao Tome, Sao Tome and Principe, 3 July – The trade deficit in Sao Tome and Principe reached US$29.7 million in the first quarter of 2008, the archipelago’s National Statistics Institute (INE) said Tuesday in Sao Tome.
According to INE this deficit was due to estimated imports of US$30.3 million, or 94.4 percent more than in the same period of 2007, and exports to the value of US$559,000, or a rise of 6 percent.
In terms of quantity exports saw a rise of 62 percent according to INE, which cited figures provided by the Sao Tome and Principe foreign trade ministry.
The deficit posted in the first half was an increase of 97.4 percent against the same period of 2007. (macauhub)
Nigeria’s oil militants take their fight beyond the delta
By Matthew Green in Lagos
Published: July 1 2008 20:12 | Last updated: July 1 2008 20:12
Wanted: a hero to save Nigeria’s oil industry. The successful applicant should be as at home fighting speedboat-riding militants on the high seas and arresting international oil thieves as they are outwitting slow-moving bureaucrats. Success would liberate a flood of Nigerian crude to cushion the world economy from the impact of runaway oil prices. Failure could push energy futures in the direction of $200 a barrel.
Nigeria, once one of the more reliable of the big oil producers, saw its output fall to 1.5m barrels a day last month – its lowest in 20 years – after gunmen staged an unprecedented raid on Royal Dutch Shell’s Bonga deep-water oil vessel. “Our next visit will be different as the facility will not be spared,” the raiders warned in an e-mail after shooting in the air and forcing a five-day production shutdown. “The oil companies and their collaborators do not have any place to hide.”
With crude prices hitting records above $140 a barrel, the industrial-scale smuggling of oil from the Niger Delta is providing networks of criminals and militants with more cash for weapons and training than ever before. A less spectacular but equally serious threat is giving western majors almost as much cause for concern as the sortie against the Bonga. In Lagos, the commercial capital, executives describe a near-paralysis in government decision-making that is blocking investment vital for the industry’s long-term health.
Nigerian officials insist that big offshore developments due to come onstream shortly will help the industry bounce back and achieve their target of 4m b/d by 2010. But unless Nigeria’s leaders not only improve security but also start approving a host of stalled projects, analysts say, there is a risk that production will struggle to rise much beyond half that level. “In the past 10 years, I have never seen so much uncertainty over Nigeria,” says Will Rowley, director of analytical services at Infield Systems, a data analyst. “When you consider the lost value, there’s a sense of total bewilderment.”
Nigeria oil production
What happens next in Nigeria matters more for the global economy, oil majors and Nigerians themselves than arguably at any time since Shell shipped the country’s first cargo of crude oil half a century ago. Nigeria pumped 2.9 per cent of the world’s daily crude production last year, but a global lack of spare production capacity means its performance has a disproportionate impact on prices.
Gone are the days in the 1990s when the country consistently broke its Opec quota, fuelling a global supply glut that dragged prices down to $9 a barrel. A decade later, the situation is reversed: Nigeria’s rollercoaster production is the biggest wild card for global energy markets. When Saudi Arabia agreed to pump an additional 200,000 b/d at a meeting in Jeddah last month to ease the pain on importers, the impact was muted by the Bonga raid, which had shut in the same amount just a few days before.
With the world’s energy companies finding it increasingly tough to replace dwindling reserves, Nigeria is perhaps the most striking example of how insecurity and underinvestment can keep oil in the ground, no matter how rampant global demand. The US, in particular, has become increasingly reliant on Nigeria as a spare fuel tank for its economy. Last year, Nigeria and Angola together exported more oil to the US than Saudi Arabia. Nigeria’s sweet, light crude is far easier for American refineries to handle than its Saudi or Venezuelan equivalents.
Natural gas has enhanced Nigeria’s strategic significance further. The country already supplies 10 per cent of the world’s liquefied natural gas and Europe is banking on Nigerian supplies to reduce dependence on Russia.
For Nigeria’s 140m people – a fifth of Africa’s population – hydrocarbons are more important than ever. Crude exports account for more than 80 per cent of government income and almost all foreign exchange earnings. Surging revenues have fuelled a boom in the banking sector in Lagos and enticed foreign investors. But they have also highlighted regional divisions over the sharing of wealth that have at times threatened to tear Nigeria apart.
After independence in 1960, the lure of petrodollars spurred both coups and the secessionist Biafra civil war as elites representing Nigeria’s big communities fought for power. Now, demands from leaders in the Niger Delta for a greater share of income from their oil, coupled with their failure to rein in the militants sabotaging production, are fuelling growing resentment elsewhere. Politicians in the northern savannah, which depends on oil income to supplement an economy based largely on farming, are particularly frustrated.
Umaru Yar’Adua (left), the president and son of a royal northern clan, who took power in May last year, has pledged reform to reverse the decline in the energy sector. Nigeria’s 36.2bn barrels of oil reserves are four times bigger than Angola’s. But Angola’s fast-growing industry pumped more oil than its bigger brother for the first time in April. Mr Yar’Adua’s ponderous style has earned him the nickname “Baba go-slow” after the Lagos traffic jams, but he has no time to lose.
A sense of crisis gripped much of Nigeria’s oil industry even before 2006, when a campaign by Niger Delta insurgents shut in almost a fifth of production, which had stood at about 2.5m b/d. At the same time, giant new deep-water developments seemed to symbolise hopes that the industry could reinvent itself in the sanctuary of the sea. The illusion of safety ended at 3am on June 19, when news reached Shell executives in Lagos that their huge Bonga facility, located about 120km offshore, had been targeted by raiders. Shots fired from speedboats forced staff to turn off the taps temporarily.
Such commando-style feats represent a transformation in the nature of the conflict from the days when Ken Saro-Wiwa, the late writer and Niger Delta activist, led peaceful protests against pollution and political marginalisation before being hanged by the ruling junta in 1995. Now, a violent insurgency is fuelled by the massive theft of crude oil, a multi-billion dollar business giving many militants, politicians and officers in the security forces an interest in maintaining a constant state of insecurity.
Kidnappings of expatriate oil workers have largely ceased after peaking before elections last year. But measures that help prevent Texan oilmen being spirited away to mud huts in remote creeks while their bosses negotiate ransoms have increased industry costs.
Dele Cole, a prominent politician and businessman from the delta, wrote in the Financial Times last week that Nigeria probably loses $4bn-$18bn a year to the illegal oil trade, masterminded by international cartels. On a bad day, he says, as much as 500,000 barrels’ worth vanishes. “Imagine,” he wrote, “this is a ‘global business’ run from mosquito-infested swamps, turning over $20m a day.”
Mr Yar’Adua’s plan to address the Niger Delta’s woes hinges on holding a summit to gather militants, elders and leaders from across the wetlands to map out a way to settle their many conflicts. No date has been set and, to some in the delta, the initiative appears designed merely to mask a failure by government and oil companies to tackle the poverty that fuels local anger.
The Movement for the Emancipation of the Niger Delta, the insurgent group that attacked Bonga, has refused to attend Mr Yar’Adua’s planned meeting unless the government releases Henry Okah, a militant leader charged with treason and gun-running. A ceasefire has held for the past week, but only just.
While the security outlook remains volatile, the industry is also worried about a lack of investment in new projects. Executives at western majors, while reluctant to speak on the record, say Mr Yar’Adua’s reform process is creating so much uncertainty that approvals for new schemes have slowed to a virtual standstill. “The general feeling is that things are in suspended animation,” says Tam Brisibe, chairman of the committee on upstream petroleum in Nigeria’s House of Representatives.
The biggest question mark hangs over the president’s plans to transform the state-owned Nigerian National Petroleum Corporation into a national champion to rival Saudi Arabia’s Aramco or Brazil’s Petrobras. In a country where oil blocks have in the past often ended up in the hands of presidents’ friends, there is a widespread consensus that the industry has generally not been managed in the public interest.
Emmanuel Egbogah, a presidential adviser on energy, says reform will soon speed up decisions. “It is not as bad as it may look,” he adds. “I agree that there may be some air of uncertainty but I am working hard to see that these issues are removed and solved so the industry can move forward majestically.” Certainly, western majors would like nothing more than a streamlined NNPC, partly because the company perennially fails to meet its share of development costs for joint ventures in the Niger Delta.
In May, Nigeria overcame its aversion to taking on debt from the majors and agreed to borrow a combined $6.1bn from Shell, ExxonMobil and Total to tackle arrears and fund new work. But in the same week, the government handed Shell and Exxon-Mobil a bill for $1.91bn after reviewing contracts signed in 1993 covering Bonga and another deep-water field. “The new terms aren’t as good,” says Ann Pickard, Shell’s top executive in Africa. “That’s why majors aren’t going in.”
A power struggle between Mr Yar’Adua and his predecessor Olusegun Obasanjo, who still occupies a senior position in the ruling party, has clouded the picture further. The National Assembly has launched an inquiry into the running of the NNPC, while the oil ministry is auditing an auction of exploration rights held just before Mr Obasanjo stepped down.
Yet despite the attack on Bonga, Chevron is starting up a giant facility at its deep-water Agbami field, which could add close to 250,000 b/d to production. Total’s similar Akpo project should provide a further boost approaching 225,000 b/d after it starts in about six months.
By some projections, Nigeria could be pumping more than 2.5m b/d by mid-2009, if – and it is a big if – lost output returns in the Niger Delta. But with every delay, Nigeria’s potential will remain the global oil industry’s greatest mirage.
Nigeria map
OBSTACLES MEAN SHELL FACES A HIGH-COST FUTURE
All the big international oil companies are struggling uphill in their quest for growth. Royal Dutch Shell’s problems in Nigeria make its climb steeper than most, write Matthew Green and Ed Crooks
Shell’s worldwide oil and gas production has been falling for six successive years. There is a good chance that decline will extend into next year as well. The obstacles Shell faces in Nigeria are helping push the company towards heavy investment in unconventional resources such as Canada’s oil sands. It is a costly strategy that will pay off only in the next decade.
Nigeria remains Shell’s second biggest territory for oil production, after the US. Growth from offshore projects has offset lost production onshore and the net decline since 2005, before the latest flare-up in violence, is just 60,000 barrels a day. That is less than half the fall in the output from Shell’s North Sea oilfields over the same period.
But if an international oil company is to have a future, it needs to grow in resource-rich countries such as Nigeria, to make up for the inevitable decline in mature regions such as the North Sea. Shell is still struggling to restore the production it lost after a wave of attacks hit its operations in the Niger Delta.
Its onshore unit in the country is Shell Petroleum Development Company, in which Shell has 30 per cent and the state-owned Nigerian National Petroleum Corporation has 55 per cent. That joint venture lost 477,000 b/d of output during a spike in militant violence in early 2006. By last month, 350,000-400,000 b/d of production remained shut in, according to Mutiu Sunmonu, the managing director of SPDC. Shell has declined to give precise figures for how much output it has restored in the delta since early 2006.
Ann Pickard, Shell’s regional executive vice-president for Africa, told the Financial Times in mid-May that she had been making “very good” progress in restoring lost production in the western delta, focus of the insurgents’ campaign in 2006. But a spate of attacks on pipelines in the east of the delta earlier this year has eroded much of the gains.
SPDC has also suffered output losses due to the NNPC’s failure to pay its share of exploration and development costs.Ms Pickard says that in 2007, for example, SPDC’s budget was slashed from an initial $6.6bn (£3.3bn, €4.2bn) to just $2.7bn because of a shortfall in the government’s contribution. In May, Shell agreed to lend the government $3.1bn as an interim measure to plug the funding gap, of which $1.1bn was earmarked for spending on investment projects that had been stalled by a lack of funds.
The slow pace of government approvals for work plans has, however, raised questions over how quickly the loan will bring progress on the ground.
In the face of those funding problems and the threat of increasingly determined militant attacks hitting offshore facilities again in the future, the best Shell can hope for in Nigeria may be to sustain oil production at around its current level and gain some growth from its liquefied natural gas projects.
That means the company will increasingly have to look elsewhere and rely on high-cost production such as the Canadian oil sands and the Pearl project in Qatar to convert natural gas into liquid fuels.
Investing in those projects means Shell has the industry’s biggest capital spending programme, at a planned $28bn-$29bn this year. But the benefit of that investment will be slow to show through. Colin Smith of Dresdner Bank says: “We do not expect production to start recovering until 2010. Shell is investing heavily but it will take a long time for those investments to have an effect on its output.”
Copyright The Financial Times Limited 2008
Sao Tome and Principe: Anti money laundering law comes into force [ 2008-07-02 ]
Sao Tome, Sao Tome and Principe, 2 July – The law against money laundering in Sao Tome and Principe went into force Monday, after being endorsed by the country’s President at the weekend, officials said in Sao Tome Tuesday.
The new law was approved by Parliament in April and had been awaiting ratification by the President.
"The publication of this law will help Sao Tome and Principe to be taken off the list of countries that are vulnerable to this type of crime, including funding terrorism,” the press advisor to the National Assembly, Hilário do Espírito Santo told Portuguese news agency Lusa.
Sao Tome and Principe is one of a list of countries, including Uzbekistan, Pakistan, Iran and Turkmenistan that have been “observed” by the international community due to high levels of transaction risk.
The process of combating Money laundering will involve various government bodies, such as the Justice Ministry, the Criminal Investigation Police, the Migration and Borders Service, Customs, Tax Directorate and the Central Bank of Sao Tome and Principe. (macauhub)
Sao Tome and Principe: Portugal to cancel archipelago’s debt “very soon” [ 2008-07-02 ]
Maputo, Mozambique, 2 July – Portuguese Finance Minister, Fernando Teixeira dos Santos, said Tuesday in Maputo that Portugal would “very soon” cancel the bilateral debt owed to it by Sao Tome and Principe.
Teixeira dos Santos said that that same decision would be extended to other countries with Portuguese as an official language within a framework of international initiatives involving “highly indebted countries.”
“Within a few weeks I will be in Sao Tome at a similar ceremony Replying to a question from a member of parliament of the Renamo opposition party, the minister said that at the end of 1998 Mozambique’s foreign debt had stood at US$6 billion.
Teixeira dos Santos added that debt pardon for other Portuguese-speaking countries would depend on those states meeting the criteria set by the international initiatives to which Lisbon has subscribed.
The cancellation of the debt of Portuguese-speaking countries such as Mozambique and Sao Tome and Principe was achieved, Teixeira dos Santos said, after Portugal was able to reduce its budget deficit. (macauhub)
N’Delta: Sylva Seeks Foreign Intervention
From Chika Amanze-Nwachuku in Madrid , Spain, 07.02.2008
Bayelsa State government yesterday sought intervention of the international community in the resolution of the protracted crisis in the Niger Delta region.
The State Governor, Timipre Sylva, made the call while speaking on a topic: "Bayelsa State, Oasis of Peace in the Niger Delta," at the Ministerial Session of the World Petroleum Congress (WPC), holding in Madrid, Spain.
According to him, the timely intervention of the international community in the current problem in the oil-rich region, will not only help in the resolution of the crisis, but would unlock about one million barrel of oil per day currently shut-in due to militancy.
He said the conflict in the region where the country's oil and gas is produced has contributed to the spiraling cost of oil in the international market, with its attendant negative impact on western economies.
Silva, who identified the non-implementation of sustainable development programmes by oil companies operating in the region, the collapse of educational sector, which resulted in the high unemployment and poverty levels, collective neglect of the region by past administrations at both the state and federal levels as what led to the crisis, assured that Bayelsa on its part, has taken several steps to address some of the causes of the problem.
According to him, Bayelsa currently produces about 22 per cent of Nigeria's crude output, adding that that informed the reason why the state government has not rested on its oars to ensure sustainability of peace in the state.
Towards that end, he said government has put in place some skill acquisition programmes to engage the youths, while major oil companies have developed Global Memorandum of Understanding with communities, in collaboration with government.
Earlier in his paper, "Reforming the Nigeria Oil and Gas Industry As a Catalyst for Economic and Social Development," Minister of State for Petroleum, Odein Ajumogobia, SAN, expressed concern over rising oil prices, noting that for Nigeria, the price surge translates to macro-economic volatility which affects growth rates, inflation, trade portfolio, exchange rates and inevitably constrains planning.
“As a long term solution, he canvassed that an appropriate volume of investments in the oil and gas sector both in Nigeria and elsewhere would assure adequate future supply towards meeting protected global demand for energy”.Meanwhile, oil prices jumped beyond $141 a barrel yesterday after President of the Organisation of Petroleum Exporting Countries (OPEC), Chakib Khelil, said there was uncertainty surrounding future investment in facilities to boost crude output.
New York's main oil contract, light sweet crude for August delivery, was up with $1.40 at $141.40 a barrel at about 0820 GMT, while Brent North Sea oil for August delivery climbed from $1.50 to $141.33 a barrel. On Monday, crude futures struck record high levels close to $144, as the US currency remained weak against the euro, traders said.
N’Delta: Senate Leader Offers Recipe for Peace
By Olaolu Olusina, 07.02.2008
Senate Leader, Teslim Kola Folarin, has stressed the need for the resolution of the Niger Delta crisis, saying the survival of the volatile but naturally endowed region is a sine qua non to the survival of Nigeria as a nation.
According to Senator Folarin, "Nigeria as a nation should bring its legendary resilience to bear on addressing the problem of the Niger Delta," adding " Our collective wisdom and celebrated resilience, if deployed to confront this crisis with sincerity, will break the ice in the resolution of the Niger Delta Crisis."
He said the forthcoming Niger Delta Summit offers one of the best opportunities to finally lay the problem in Niger Delta to rest. "The nation has a lot to benefit from the Niger Delta Summit which President Umaru Musa Yar'Adua has promised to hold before the end of the year," Folarin stated."I hope that all parties in the Niger Delta will take advantage of the Summit to sincerely contribute to a workable and sustainable programme for the resolution of the crisis."
Folarin lamented that the situation in the region had deteriorated in the last one year, saying that has been a sad testimony to the reality of the Nigerian situation.
"Addressing the Niger Delta question deserves the attention and commitment of the Nigerian political class. The issue has far gone beyond the precinct of sectional consideration. the survival of the Niger Delta is a sine qua non to the survival of Nigeria as a nation. Nigeria as a nation should bring its legendary resilience to bear on addressing the problem of the Niger Delta.
"Our collective wisdom and celebrated resilience, if deployed to confront this crisis with sincerity, will break the ice in the resolution of the Niger Delta Crisis.
"In this respect, I think there are three approaches to the resolution of the crisis. The first is to make man the index of development in the Niger Delta. For too long, we have sought to assess performance in the resolution of the crisis by the quantum of money going into the Niger Delta. In spite of such budgetary allocations, virtually all surveys on human development index in the country have returned a damning report on the Niger Delta," he said.
Again, Militants Attack Another SPDC Facility
From Ahamefula Ogbu in Port Harcourt, 06.30.2008
Militants have again attacked Shell Petroleum Devel-opment Company (SPDC) facilty - Oloma flow Station in Bonny - and allegedly killed four naval personnel and three civilians.
The attack was carried out yesterday, but SPDC spokesman, Mr. Precious Okolobo, denied the attack, saying, “As far as we can tell, Oloma flow station was not attacked. It is still operating.”
However, spokesman of the Navy Base in Pathfinder, Rumuolumeni, Port Harcourt, Lt. Olabisi Wey, confirmed the attack, but denied that any personnel was killed.
He said they were yet to account for one naval personnel, while a civilian was beheaded on the boat.
Spokesman for the military Joint Task Force (JTF), Lt. Col. Sagir Musa, said: “There was an encounter at about 1800 hours yesterday when about 30 unknown gunmen attacked a location at Coal Beach in Bonny. One soldier was wounded, a civilian was beheaded by the bandits, two militants were killed as a result of the encounter.
“On the attack of the navy boat, the attack was repelled and it is feared that one person might have lost his life due to the encounter.”
SPDC's Bonga field was June 19 shut down following an attack on the oil field by militants.
Located 120 kilometres (75 miles) offshore, Bonga oil field has a daily production capacity of 200,000 barrels of oil and 150 million standard cubic feet of gas.
The militants, numbering about 20, were said to have operated in three speedboats.
The attack had resulted in the shut in of about 200,000 barrels per day (bpd), which is about 10 per cent of Nigeria's current daily production of about 2 million bpd.
The Movement for the Emancipation of the Niger Delta (MEND) had claimed responsibility for the attack and threatened more attacks.
According to a statement from the official site of MEND, spokesman of the group, Gbomo Jomo, had boasted that the next attack would "cripple the facility on a final note," adding that MEND would carry out attack on any oil facility no matter where it is located.
The dreaded militia group had warned that all expatriate staff working on the facility and within Niger Delta should be evacuated to avoid casualties, saying it had decided to prove to "the Federal Government that it was not happy with the present situation in the region."
Following the attack, President Umaru Musa Yar’Adua had ordered the military to fish out those responsible for the attack.
There were reports weekend that the Federal Government had deployed war ships in the Niger Delta in order to maintain security surveillance in the region.
Already, two warships - NNS Ologbo and NNS Nwamba - are said to bes in the region, while the Federal Government is reported to have ordered the importation of more sophisticated warships to beef up security in the region.
The importation of the warships is among the fresh security measures of the Navy to complement the entire military operations under the JTF in the region.
According to reports, the Director of Naval Information, Capt. Henry Babalola, had confirmed the order for the importation of the military hardware.
He had said the defence boats would be acquired from Australia and Malaysia.
He said the navy had also sealed arrangements to procure some weapons from Singapore.
Gambari: FG, N’Delta Elders’ Meeting Deadlocked
07.01.2008
The meeting between Vice President Goodluck Jonathan and elders of the Niger Delta over Prof. Ibrahim Gambari's appointment as chairman, Steering Committee, Niger Delta Summit, has ended in a deadlock.
According to the News Agency of Nigeria (NAN), though the Niger Delta elders agreed with the idea of the summit, they rejected Gambari as its chairman.
A source said the Vice President, however, explained that the choice of Gambari was based on his experience in conflict resolution at the international level.
It also quoted the Vice-President as saying there was no need to engage a foreigner for that role, since the country was not at war. "We believe Gambari carries with him the United Nations.
"More so, the chairman is meant to moderate and not to override, and there are other skilled professionals in the Steering Committee. "This Summit will be one where Mr President and Federal Government will be part and parcel of the final resolutions," the source quoted the Vice-President as saying.
It said Governor Olusegun Agagu of Ondo advocated a standing secretariat of credible persons, to monitor the implementation of the summit's resolutions and expedite action on the development of the Niger Delta.
Prof. Sam Oyovbaire, according to the source, recommended a technical committee to collate and scrutinise various recommendations.
The source said Chief Edwin Clark called for an implementation committee on all the reports produced on Niger Delta development. Sen. Uche Chukwumerije, NAN gathered, advised that the committee would also synthesise all reports and prepare a programme of action.
The source said in attendance at the meeting were members of the National Assembly from the region, former Delta and Akwa Ibom governors, Chief James Ibori and Obong Victor Attah.
Others were King Alfred Diette Spiff; former Petroleum minister, Chief Don Etiebet; former Chief of Defence Staff, Gen. Alexander Ogomudia and Sen. Aniete Okon.
Also in attendance, according to sources, were Sen. Stella Omu, Mr.Ledum Mittee of the Movement for the Survival of Ogoni People (MOSOP) and Madam Rita Ogbebor, among others.
Jonathan said that the proposed Niger Delta summit was not intended to draw up a new masterplan for the region , saying "The essence of the proposed Niger Delta summit is to take a major step forward from previous reports and recommendations on Niger Delta development."
The vice-president has also blamed the rising militancy in the volatile region on oil smugglers who he accused of sponsoring the activities of the militants.
Speaking yesterday at a meeting of the Honorary International Investor Council in the State House, Jonathan said the genuine agitations of the Niger Delta people have been hijacked by the criminals.
He said, "Naturally, at the beginning, people were quite friendly with the oil companies, no security was deployed to guard the oil facilities. Over the period people began to believe they were not getting enough.
Pirates attack the Bonga
Published Date:
27 June 2008
By Terry Kelly
SOUTH Tyneside workers have been caught up in a daring armed raid by pirates on the giant Bonga oil platform in Nigeria.
Three people were injured when the Bonga, which became the biggest vessel ever to sail through the piers at South Shields in 2002, came under attack.
The Gazette understands tradesmen, from Hebburn and South Shields, have recently been based on the Bonga platform, sited 85 miles into the Gulf of Guinea, where oil production was shut down by speed-boating gunmen.
Night raiders stormed the 12-storey Royal Dutch Shell facility, forcing workers to take refuge behind a blast wall.
Members of the Movement for the Emancipation of the Niger Delta (MEND) claimed responsibility for the raid, which saw the loss of about 200,000 barrels of oil.
An American worker was kidnapped during the raid, but later released.
MEND, which tried to blow up the Bonga platform's computer system, is demanding energy companies remove all foreign staff from Nigeria.
Hebburn maritime expert Kevin Blair said: "Hebburn lads have been working on the Bonga recently, including a pipefitter and welder.
"I have heard workers from Tyneside are under strict instructions not to venture away from these facilities, because these raids in Nigeria are becoming more frequent."
One worker, from South Shields, who recently returned home after a stint on the Bonga, said "We've been advised not to comment on the situation."
More than 200 foreign hostages have been seized since an upsurge in violence began in the Niger Delta in early 2006.
Hundreds of people gathered to watch the mighty Bonga edge through the piers at South Shields, on November 16, 2002.
As big as three football pitches, the 300,000-tonne floating production storage and offloading vessel (FPSO), created up to 1,600 jobs during a refit contract lasting almost a year, at the former Amec yard, Wallsend.
Shell spokesman Rainer Winzenried told the Gazette: "This was a serious incident. There was some shooting involved, three Shell people were slightly injured and an American on a supply ship was taken hostage, and then released.
"Production was shut down on the Bonga, which has a capacity of 225,000 barrels a day, and has not yet resumed.
"Police are still investigating the incident, which is of concern not just to Shell, but to Nigeria in general. Many of the people on the platform are in fact Nigerians.
"These protesters are supposed to be pro-environment, but they blow up pipelines and cause heavy spills and threaten people. I would not call them freedom fighters."
BellwetherReport.com Analyst Report on EEGC, CPTC, ERHE and IDAE NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by The Bellwether Report.
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Nigerian oilfield resumes pumping
Map of Nigeria
Oil production has resumed at a Nigerian offshore installation six days after an attack by militants.
The Bonga oil field, 120km (75 miles) offshore accounts for a tenth of Nigeria's production.
The Movement for the Emancipation of the Niger Delta (Mend) claimed it carried out the attack, then announced they would go on a ceasefire.
On Tuesday the military clashed with militants suspected to be responsible for the Bonga attack, Reuters reported.
The facility was previously thought safe from militants' attacks, which have shut down oil production by around a quarter in recent years.
"We're up and running on Bonga," a spokeswoman for the energy company Royal Dutch Shell told the AFP news agency.
One American was kidnapped from another boat during the attack but was later released.
Ceasefire
The Nigerian government is planning a peace summit with Niger Delta militants in the capital Abuja next month.
Their chosen mediator, UN Deputy Secretary Ibrahim Gambari, announced he would seek a 90 day truce to allow the summit to go on "in an atmosphere of calm".
Mend announced on Sunday it would begin began a ceasefire on Tuesday night, but it still refuses to participate in the peace conference unless one of their leaders, currently on trial for treason and gun-running, is given an amnesty to participate.
On Wednesday, the group said they chased off a group of military gunboats from near one of their camps in Bayelsa, hours before they were due to commence the ceasefire.
"As our fighters approached in over fifty war boats, the eight gun boats turned and fled from the area thereby averting a clash and maintaining the on-going ceasefire," the group said in an e-mail to journalists.
A military commander told Reuters news agency they were conducting surveillance on the group of militants responsible for the attack on the Bonga field.
"We had intelligence reports that the camp was responsible for the attack, so we went after them," he said.
It was unclear if there had been any casualties.
Big business
Also at the weekend, violence erupted in the Bayelsa state capital Yenagoa as two separate militant groups clashed, killing at least six, Reuters reported.
Correspondents say that violence is big business cross the Delta region.
Groups of unemployed, armed youths are involved in oil theft, extortion and kidnapping.
Mend, the most publically visible militants, is a loosely affiliated group of factions, some of which have been on ceasefire for almost a year.
In e-mails to journalists, Mend demands a bigger share of the oil wealth, but there are many more armed youths who see the pipelines that cross the Delta as an easy way to get money and power, correspondents say.
Niger Delta: MEND Vows to Breach Ceasefire
•Two Lonestar expatriates released
From Ahamefula Ogbu in Port Harcourt and Gboyega Akinsanya in Lagos, 06.26.2008
The Movement for the Emancipation of the Niger Delta (MEND) has said it will breach the unilateral ceasefire it declared last Sunday due to a blockage of one of its camps by men of the Joint Task Force (JTF).
Following the attack on Shell Bonga Oil Field by MEND, President Umaru Musa Yar’Adua last weekend directed the task force to flush out militants in the Niger Delta, a confrontation that last Tuesday allegedly claimed the lives of more than 15 militants.
But MEND spokesperson Jomo Gbomo said last Tuesday night that the Nigerian military blocked the channel leading into one of its major camps with eight heavily armed gun boats in preparation for what he described as a dawn of invasion.
Gbomo said: MEND still wishes to reiterate its willingness to respect its unilateral ceasefire but would not hesitate to call it off at the slightest provocation or threat.”
He said despite the ceasefire, the Federal Government “is yet to approach Henry Okah who is facing a 48-count charge in court as requested.”
However, the JTF Flush-out III Commander Lt. Colonel Sajir Musa, denied any military confrontation with the militants, adding that the ceasefire was observed.
Gbomo said MEND decl-ared ceasefire in respect of pleas by elders such as Chief Edwin K. Clark and others who assured them of immediate mediation.
He said: "Chief Clark is 80. His age made us concede. However this is temporary and if issues such as Henry Okah's release is not addressed, then we will know the whole peace talk is another fraud and this will result to renewed hostilities."
Gbomo said MEND never planned a possible showdown with the Nigeria Armed Forces because it “is not a conventional fighting force.”
But he said guerrilla tactics would be embarked on to cripple the entire oil industry across the Niger Delta should its camps be attacked. Describing the Federal Government’s attitude to resolving the Niger Delta crisis as insincere and lukewarm, Gbomo said the only way to bring peace to the region was for Okah to be released unconditionally to allow him become a part of the peace process.
Meanwhile, two expatriate staff of Lonestar Drilling Nigeria Limited, George Scerri (Maltan) and Mohammed Asif (Pakistani), kidnapped four weeks ago from Omoku, Rivers State have been released.
The release came as spokesman of the JTF in Rivers State raised an alarm that there was a calculated attempt to label the JTF as an occupational force which kills and attacks innocent people at will.
He therefore urged members of the public to disregard any information pushed out by the militant groups, saying they were in the region to protect law-abiding citizens.
The duo who had been in custody of the militants were left by the roadside near Mbiama, at about 1am yesterday from where they were picked up and rejoined the company.
So far, no group has claimed responsibility, though Lonestar Public Relations Manager, Mr. Chidi Ugorji, said there was no ransom payment as the company allegedly lacked resources as it was yet to recover from the kidnap of the wife of the Chairman and Chief Executive Officer, Mrs. Humphrey Idisi.
Idisi who was said to be hypertensive took ill in the custody of her captors before pressure was mounted on her husband who allegedly paid N200 million to secure her release.
She was said to have been released from the camp of Boylof in Bayelsa State thereby fortifying the theory that the attackers who had stormed the vicinity of their abode with unprecedented fire power came from outside Rivers State to carry out the attack.
The abductors of the duo had made ransom demands of between N1 billion which was later reduced to N500 million and at last before their release, N150 million.
Monkey; Thanks for Your Input. eom
emdyal: It Was SUPPOSED To Have been Completed In Jan. 08
Q. What is the status of the Aban Abraham drillship?
According to our consortium partners, Addax and Sinopec, the Aban Abraham drillship is currently being refurbished and upgraded in Singapore. It is anticipated to undergo sea trials in January of 2008. We understand that it will initially be under contract with the Noble/Pioneer partnership and at the end of their contractual obligations will be transferred to the JDZ Block 2 and 4 operators Sinopec and Addax. Knowing what we know today, the fourth quarter of 2008 seems to be a realistic timeframe for it to begin exploration operations in the JDZ. We are confident Addax and Sinopec will bring the ship to the region as quickly as reasonably possible, but these are enormous pieces of equipment and they take time to move.
Walldog: I Worked In The Shipyards & That's Exactly The Way It Was Done (24/7). Container Ships, Cruise Liners, would pay anything to get their ships back. Ya can't make any money on Dry Dock. This has been held up so long something must be wrong. I would like to see BB connect some Dots here on the hold up of our ship.
Chronology of Nigerian militants' Attacks
Pictures & Story ....
http://www.africamasterweb.com/AdSense/NigerianMilitants07Chronology.html
Addax SHM Thur. eom
Sao Tome and Principe: IMF provides funding of US$680,000 to Sao Tome and Principe [ 2008-06-23 ]
Washington, United States, 23 June – The International Monetary Fund (IMF) said Friday in Washington (IMF) that it would provide Sao Tome and Principe with US$680,000, which will deplete the funding available under the terms of the current bilateral cooperation mechanism.
Validating the policies and actions of the government, the IMF said in a statement that it had approved the loan despite the authorities failing to meet some of the targets set out in the agreement from three years ago, such as the levels of primary tax deficit and net government credit and structural targets related to management of public finances.
According to Murilo Portugal, the Brazilian assistant director of the IMF, the archipelago’s economic performance has been “robust” and there has been “progress” in reducing fiscal and public debt imbalances.
He said however that “these favourable developments have been accompanied by a rise in inflation.” Um descontrolo das despesas e a falta de controlo efectivo da base monetária aumentaram a pressão sobre a inflação e depreciação cambial".
Amongst its recommendations, the IMF noted the “high priority” of reforms to the financial sector and improvement of the business climate.
With this new loan, the total granted by the IMF to the government’s 2005-2008 economic programme the IMF said.
This week the World Bank announced the concession of a US$6 million loan to Sao Tome and Principe to support government reforms over the next two years, including tax and oil sector reforms. (macauhub)
Concern Mounts Over Attack on Oil Platforms
•AC calls for probe •House meets oil chiefs today
From Stanley Nkwazema in Abuja and Fidelia Okwuonu in Lagos, 06.23.2008
There are mounting concerns in the country over attacks by Niger Delta militants on oil flow lines and installations particularly on Nigeria’s deep offshore platforms.
Most analysts now see the attack on offshore platforms as not just an attack on the economic nerve centre of the country but an assault on Nigeria’s sovereignty given that the platforms are outside the Niger Delta and have no ecological impacts on the lives of the people of the area.
Militants from the Movement for the Emancipation of the Niger Delta (MEND) last Thursday attacked Shell Bonga Field, the biggest offshore oil platform in the country, resulting in 200,000 barrel per day shut-in.
Later that day, the Escravos-Abileye-Olero flow lines belonging to American oil giant, Chevron Nigeria Limited, were also blown off by suspected militants, leading to about 120,000 bpd shut in.
With the attacks, over 1 million bpd would have been shut in cumulatively, which is about 50 per cent of Nigeria’s oil production.
“This goes beyond attack on oil platforms; it is an act of sabotage. It is an attack on Nigeria’s sovereignty. If the militants can now be attacking offshore facilities, then it is a very serious matter,” THISDAY was told last night.
Worried about the development, the House of Representatives Committee on Petroleum (Upstream) is expected to meet with the National Security Adviser (NSA) Sarki Mukhtar, Minister of State Petroleum Odein Ajumogobia, and Defence Minister Yayale Ahmed today in Abuja over the attacks.
Chairman of the committee, Hon. Tam Brisibe, told THISDAY last night that if the attack continued, it might affect the 2008 budget.
Brisibe said Nigeria was losing so much as a result of inadequate security in the area.
Official sources put Nigeria’s daily loss from the activities of militants in the Niger Delta at $84 million.
However, that figure is conservative and may be as much as N140 million per day with the latest attacks.
Oil chiefs in the country are also expected at the meeting with the House scheduled for 10 am in Committee Room 327 of the New Building of the National Assembly.
Brisibe said: “Bonga oil field is about 150 kilometres off Nigerian shores, if the militants could get that far and attack oil facility, then there is cause for worry.
“We have to find out what measures are being put in place now by the executive to sort out this problem. We cannot sit down and hide under the guise of insecurity and allow investments in the industry go down the drain.”
Chairman of the House Committee on Media and Publicity, Hon. Eziuche Ubani, also said the issue had gone beyond the emancipation of the Niger Delta.
He said the House was worried that criminals were cashing in on the problems in the area to enrich themselves at the expense of the true struggle
The House, he said, was so touched by the incidents and felt it was time President Umaru Musa Yar'Adua expedited action on his plans for the energy sector particularly in relation to the Niger Delta situation.
“The House is disturbed over the attack on Bonga oil field by militants. We had thought that the militants would not be able to get to the field which is about 150 kilometres away from the shore. We should do something drastic and urgently too about the situation in the Niger Delta.
“Bonga oil field is the country’s major oil field and the attack is likely to have serious consequences on the economy. The executive arm of government should do something fast,” Ubani said.
He expressed fears that the trend, if not checked, might cause the 2008 budget to derail, maintaining that something urgent be done about it.
Meanwhile, the Action Congress has said the long simmering Niger Delta crisis may
finally spin out of control with the attack on Shell's deep offshore Bonga oil field last Thursday and another one on crude oil pipeline in Delta State few hours later.
The party called for a probe into the circumstances leading to the attacks “by a supposedly rag-tag band of militants.”
According to a statement issued yesterday in Abuja, the party said: “This hitherto unimaginable attack has finally turned the Niger Delta violence to a crisis of immense proportion that can only spell doom for the Nigerian state.
“Since the militants' favoured means of mobility - speedboats – will find it difficult to travel that far offshore, such a probe must find out how the militants were able to reach Bonga. Could they have been assisted by a mother vessel? If so, who owns such vessel?
“Also, what kind of security cordon is in place for such an important facility as the Bonga, which produces over 200,000 barrels of oil per day - which is about one tenth of the country's total oil production?''
The party warned the Federal Government against embarking on its usual knee-jerk response to the crisis, especially the resort to a military crackdown and the jamborees in the name of 'summits of stakeholders'.
“As we have said many times through this medium, the real solution to what is fast becoming a declaration of war in the Niger Delta is for the Federal Government to talk to the REAL stakeholders, not the so-called elders whose stock in trade is to run with the hare and hunt with the hounds to maximise their gains.
“As it is, the federal government has either totally ignored the real stakeholders or allowed itself to be deceived into inconsequential MOUs and Accords with groups that are only interested in looting the commonwealth for their personal gains.
“We also make bold to say that past, made-for-television summits on the Niger Delta have yielded no positive results. Bringing in even the secretariat of the UN will not make a success of another summit for as long as the real stakeholders - the people in the oil communities themselves - are not involved in such an effort,'' AC said.
The party said the attack on Bonga has shown that the militants in the Niger Delta
could attack, without qualms, any facility that catches their fancy in the Niger Delta.
The attack, it said, had also shown that the military option could not and would not work in resolving the crisis that has been the biggest threat yet to Nigeria’s economic well being.
“After all, thousands of soldiers have been deployed to the region to help protect the same facilities that are being attacked at will by these militants.
According to government figures, Nigeria is losing 84 million dollars daily to the incessant attacks in the Niger Delta. That translates to about 2.52 billion dollars per month and more than a whopping $30 billion per year.
Chevron Union Shuts Down Offices Nationwide
By Fidelia Okwuonu, 06.24.2008
Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) and Nigerian Union of Petroleum and Natural Gas Association (NUPENG) union members of local Chevron unit yesterday began strike at the Chevron's administrative offices throughout the country .
The action has led to the closure of all Chevron offices in Nigeria but production has not been shut down and this is pending further meetings with the federal government.
Speaking with THISDAY, the branch chairman of Chevron PENGASSAN union, Comrade John Nwanosike, said; "A limited form of protest has started but we have not yet gone deep. We have not shut down the oilfields, but administrative functions are affected," and that until the safely conditions are addressed, the workers would not go back to work.
According to Nwanosike,"the Nigerian government is not implementing their laws in the oil and gas industry, as they are allowing the International Oil Companies (IOC) to walk away with a lot of broken laws.
"Till now, the expatriate occupy 77 percent of the top management position, leaving Nigerians with only 23 percent and the union has put their feet down to demand for equal right and privileges, as Nigerians are put in the fore front to take all kinds of risk and yet they are not being given the same opportunity.
"The Managing Director is taking the Nigerian staff for granted, as there is a heavy influx of expatriates into the company, denying Nigerian staff the opportunity to grow.
“Ignoring the performance of the Nigerian staff, so as to enable the expatriates to come in to do jobs meant for Nigerians."
He also revealed to THISDAY that for more than 15 years now, many Nigerians are still being treated as casual staff and the company has failed to permanently staff them, leaving them open to uncertainties.
He went to say that until these issues are cleared and the expatriate managing director is transferred, the offices would remain shut and activities would not be allowed to go on.
General Manager , Government Policy and Public Affairs of the company, Femi Odumabo, who confirmed that there is a work stoppage however disclosed that the management was working hard to resume dialogue, as there was some bit of progress in the earlier meeting.
"We hope to continue with this dialogue to ensure that things get back to normal, for now, production is not affected but it is speculative that there would be further implications of this exercise," he said.
Meanwhile, last week, the union deputy Secretary General, Lumumba Okugbawa, told the press that the situation would be evaluated and necessary action would be taken . He said this after the union met with the management. The union had said it was seeking to avoid strike action at the local unit of Chevron
In April, a strike by an oil workers union at ExxonMobil's unit in Nigeria shut down nearly all the company's 800,000 barrels per day production in the country.
Bush Battles Democrats over Oil Production
From Constance Ikokwu in Washington, D.C., 06.24.2008
As the oil summit holding in Saudi Arabia ends with no tangible agreement on the best way to force down high commodity price, President George W. Bush has taken his crusade to members of the Democratic Party in the United States Congress accusing them of “obstructing” new domestic oil exploration in the country.
This comes as the media in America are pointing to militant attacks in the Niger Delta region, a development they argue will diminish Saudi Arabia’s plan to increase oil output by 200,000 barrels per day beginning from next month.
Bush blamed Democrats for blocking plans to start domestic oil exploration that could ease the suffering of consumers in the country. His government has proposed opening up protected offshore drilling sites, expanding domestic refineries, exploring oil shale reserves in the Rocky Mountains and the green River Basin and drilling in Alaska.
The US is hard hit by rising oil prices forcing families to quit driving and choose between grocery shopping and filling their tanks. The pump price of fuel is over $4.
In an address to the nation, Bush stated: “my administration has repeatedly called on Congress to open access to new oil exploration here in the United States.
Unfortunately, Democrats on Capitol Hill have rejected virtually every proposal. Now Americans are paying the price at the pump for this obstruction.”
On thier part, Democrats argue oil companies can increase supply without new explorations. They also favour renewable fuel and reduction in oil consumption as a way of ridding the country of dependence on foreign oil.
Eighteen million barrels of oil could be added if offshore drilling is opened to oil companies. But critics counter that would not have immediate impact on prices as it could take several years for the product to reach the market.
Four bills are expected to reach the floor this week. It includes a measure that reduces public transit fares and encourages oil companies to use the drilling and exploration leases they hold, in addition to tackling commodity speculation, which they argue, causes a spike in oil price.
Saudi Arabia recently called a meeting of oil producing countries, seeking to reduce increasing commodity price. The meeting reportedly ended in a disappointment as no solid agreement was reached on immediate steps to end high prices.
Saudi Arabia has promised to increase supply by 200,000 barrels per day, its highest level in 30 years, while insisting that speculation rather than low supply is the main cause. Some US analysts say they are disappointed having expected an increase of at least 500,000 barrels per day.
This is coupled with the fact that shut-ins of 270,000 bpd in Nigeria following militant attacks on 150,000-bpd Bonga oilfield and 120,000-bpd Escravos oilfield, operated by Royal Dutch Shell and Chevron wipes out gains from any increase from the Kingdom.
Nigeria, long Africa’s biggest oil producer has fallen to second place behind Angola as a result of the attacks. The country now pumps less than 1.5m barrels while it has the ability to produce 2.5 million barrels per day.
Revealed: Why Bonga Oil Field Was Easy Target
•Oil companies want greater community ownership of oil assets
From Stanley Nkwazema in Abuja, 06.24.2008
The House of Representatives was yesterday stunned to discover that the Bonga Oil Field, the biggest offshore oil platform in the country, had no radar but a Closed Circuit Television (CCTV).
It also discovered that the Naval Patrol Boats that were supposed to be stationed in the area were withdrawn for the Nigerian Navy Sea Exercise, which started over the weekend.
This was revealed to members of the House Committee on Petroleum (Upstream) and House Speaker ‘Dimeji Bankole during a closed-door meeting with National Security Adviser (NSA) Sarki Muktar, Chief of Defence Staff Major-General T. Kwache, Minister of Defence Yayale Ahmed and chief executives of oil companies in Abuja.
A member of the House who confirmed the story to THISDAY yesterday evening, said the members were worried that the patrol boats stationed in the Bonga Platform were withdrawn for the Sea Exercise being conducted by the Eastern Naval Command such a facility that produces about 10 per cent of Nigeria’s Crude for Export, forgetting the volatile nature of the area.
The Navy had confirmed that the Exercise tagged Exercise Sentry, by the Eastern Naval Command, would hold for three days to cover the country’s territorial waters from Bayelsa to the boundary with Cameroon.
The members who spoke yesterday said it was embarrassing to note that such a facility had no radar and a security back up but a CCTV which made the multi billion dollar facility an easy prey to the Niger Delta Militants.
Chairman of the Committee Tam Brisibe while addressing both the oil chiefs and the Federal Government officials at the meeting said: “In as much as the security of the sector is important, the implication is not that it was successful, but we are worried that if a facility offshore can be attacked by groups within Nigeria, without being apprehended, how do we know the reaction if the attack is from foreign forces?”
“We are worried that several reports are written and put away. We don’t want that to happen with the information we get here today.”
Speaking after the meeting with the service chiefs, Brisibe explained that in spite of last week’s attack, Bonga field oil facility was intact as the invading militants were denied entry before they could blow up the place.
The committee chairman while quoting from the report submitted to the committee by the Department of Petroleum Resources (DPR) stated that “the Floating Production Storage Operating Vehicle (FPSO) was reported to have been put into a lockdown mode making it impossible for the assailant to gain assess.
“There was no damage. They shut down the facility. As soon as the attack was known, they shut down the facility,” he said.
The classified security Information from DPR claimed that the attackers, who were said to have gone to Bonga in three boats, boarded one of the support vessels in the area and subsequently attempted to get on board the FPSO.
“However, the FPSO was reported to have been put into a lock down mode making it impossible for the assailants to gain access unto the FPSO”
The report equally claimed that “as a precautionary measure, production from the FPSO was stopped, all other associated activities in the field shut down and the two drilling rigs operating in the area (Sedco 702 and Sedco 709) also locked down, while surveillance continued.”
While commenting on the purpose of the meeting, Brisibe said the Minister of Defence would soon present a report on the incident where he would outline how the attack was carried out and the security measures to be put in place in order to avoid a re-occurrence.
“From the meeting we had with the security operatives, they told us that they themselves had been gathering information on what happened and there is a report that would be presented on the incident,” he said.
Brisibe who also commented on the meeting with the oil companies said: “We asked them about their own internal security arrangement and the arrangement they have with the Nigerian security forces.”
“In our discussion, we also talked briefly about what they feel ought to be done and part of the solution some of them are thinking of is the fact that there definitely have to be increased and active participation of persons from the host communities in terms of what we call local content.”
“Not just local content, they feel exactly that one thing that we should be aiming for is active ownership of the assets in the oil industry as much as it is practicable by persons from organisations in the host communities.”
“You would all agree that the event of last Thursday is not what anybody can and will take lightly. The security implications are there, “ he said.
The issues of the Niger Delta are also there because we might actually not be able to deal with the security situation if we do not deal with the issues of the Niger Delta,” he stressed.
Meanwhile, oil companies operating in the area are however advocating host communities involvement in exploration activities through greater ownership of the oil assets as a way of preventing future attack on oil facilities.
The committee expressed its determination to ensure that whatever was decided in the series of meetings it planned with security operatives and oil companies would be backed up by presidential action.
Militants counsel Yar'Adua against military option E-mail
Written by Jimitota Onoyume
Monday, 23 June 2008
MILITANTS have warned the Federal Government against its resolve to carry out full scale war against them in the region, saying it would further heighten the level of insecurity in the region.
In a statement issued under the aegis of Reformed Grand Alliance of Niger Delta and signed by its president, General Prikoli Iwo, they said government should rather begin the process of addressing the injustice in the region.
The statement reads, "Nigerian state and government have refused to acknowledge the level of injustice in the Niger Delta. The people are suffering and rather than carry out an aggressive developmental programme the Nigerian state has continued to embark on their politics of extracting our resources in addition to excercebating the use of naked force on the Niger Delta people.”
“A lot of our youths have laid down their arms, trusting that the Nigerian government will reciprocate with viable developmental programmes. But the reverse is the case. Nine-nine per cent of Niger Delta people are aggrieved with the primitive and internal colonisation on the Niger Delta people by the Nigerian government.
To declare military option on the Niger Delta, youths waiting for such opportunity will join in the arms struggle. President Yar'Adua should rescind his decision as this policy will not solve the problem but will worsen the situation and create an uncontrollable measure of militants.”
“Only viable programs can bring peace, of which the greatest onus lies in the hands of the government and not the militants. Mr. president should be well advised by history not to make this mistake in such a declaration it is only one who fights the course of justice that can prevail on the supreme ’’
Russia Plans More Investment in Nigeria
From Okon Basseys in Uyo, 06.23.2008
With the impressive turn around of the Aluminium Smelter Company of Nigeria Limited (ALSCON) at Ikot Abasi which had been idle for the past eight years into an industrial enterprise by a Russian firm, UC RUSAL, Russia is now to shift more of its investment in Africa to Nigeria.
The President of the Nigeria Russia Business Council, Mr. Goodie Ibru disclosed this on the occasion of the Russian National Day.
Ibru, who was excited by the current production and export strides by the new management called for greater economic ties between Nigeria and Russia.
Commending UC RUSAL for turning around the Nigerian Smelter factory, the President of the Russian Business Council said a substantial part of Russia’s investment in Africa will come to Nigeria in key sectors of the economy such as energy, naluminium including iron and steel.
As he put it: “As a fast growing emerging economy, Russia has been investing heavily outside her border and Africa/Middle East is likely to attract 15 percent of Russia’s investment”.
“I believe that a substantial part of Russia’s investment in Africa will come to Nigeria in key sectors of the economy such as energy, aluminium and iron and steel”.
Also speaking, the Russian Charge D’ Affairs in Nigeria, Mr. Sergy Rogov lauded the Managing Director of RUSAL-ALSCON, Mr. Andrey Partyansky for being a good example of Russian investor in Nigeria saying with the progress the company has attained, “Nigeria has the potential to become one of the major producers of aluminium in the world”.
It would be recalled that the Akwa Ibom State governor, Chief Godswill Akpabio had at his recent visit to ALSCON said the phenomenal strides recorded by the company within 16 months of taking over the management of the plant was a prove of seriousness the core investor attached to the business.
Concern Mounts Over Attack on Oil Platforms
•AC calls for probe •House meets oil chiefs today
From Stanley Nkwazema in Abuja and Fidelia Okwuonu in Lagos, 06.23.2008
There are mounting concerns in the country over attacks by Niger Delta militants on oil flow lines and installations particularly on Nigeria’s deep offshore platforms.
Most analysts now see the attack on offshore platforms as not just an attack on the economic nerve centre of the country but an assault on Nigeria’s sovereignty given that the platforms are outside the Niger Delta and have no ecological impacts on the lives of the people of the area.
Militants from the Movement for the Emancipation of the Niger Delta (MEND) last Thursday attacked Shell Bonga Field, the biggest offshore oil platform in the country, resulting in 200,000 barrel per day shut-in.
Later that day, the Escravos-Abileye-Olero flow lines belonging to American oil giant, Chevron Nigeria Limited, were also blown off by suspected militants, leading to about 120,000 bpd shut in.
With the attacks, over 1 million bpd would have been shut in cumulatively, which is about 50 per cent of Nigeria’s oil production.
“This goes beyond attack on oil platforms; it is an act of sabotage. It is an attack on Nigeria’s sovereignty. If the militants can now be attacking offshore facilities, then it is a very serious matter,” THISDAY was told last night.
Worried about the development, the House of Representatives Committee on Petroleum (Upstream) is expected to meet with the National Security Adviser (NSA) Sarki Mukhtar, Minister of State Petroleum Odein Ajumogobia, and Defence Minister Yayale Ahmed today in Abuja over the attacks.
Chairman of the committee, Hon. Tam Brisibe, told THISDAY last night that if the attack continued, it might affect the 2008 budget.
Brisibe said Nigeria was losing so much as a result of inadequate security in the area.
Official sources put Nigeria’s daily loss from the activities of militants in the Niger Delta at $84 million.
However, that figure is conservative and may be as much as N140 million per day with the latest attacks.
Oil chiefs in the country are also expected at the meeting with the House scheduled for 10 am in Committee Room 327 of the New Building of the National Assembly.
Brisibe said: “Bonga oil field is about 150 kilometres off Nigerian shores, if the militants could get that far and attack oil facility, then there is cause for worry.
“We have to find out what measures are being put in place now by the executive to sort out this problem. We cannot sit down and hide under the guise of insecurity and allow investments in the industry go down the drain.”
Chairman of the House Committee on Media and Publicity, Hon. Eziuche Ubani, also said the issue had gone beyond the emancipation of the Niger Delta.
He said the House was worried that criminals were cashing in on the problems in the area to enrich themselves at the expense of the true struggle
The House, he said, was so touched by the incidents and felt it was time President Umaru Musa Yar'Adua expedited action on his plans for the energy sector particularly in relation to the Niger Delta situation.
“The House is disturbed over the attack on Bonga oil field by militants. We had thought that the militants would not be able to get to the field which is about 150 kilometres away from the shore. We should do something drastic and urgently too about the situation in the Niger Delta.
“Bonga oil field is the country’s major oil field and the attack is likely to have serious consequences on the economy. The executive arm of government should do something fast,” Ubani said.
He expressed fears that the trend, if not checked, might cause the 2008 budget to derail, maintaining that something urgent be done about it.
Meanwhile, the Action Congress has said the long simmering Niger Delta crisis may
finally spin out of control with the attack on Shell's deep offshore Bonga oil field last Thursday and another one on crude oil pipeline in Delta State few hours later.
The party called for a probe into the circumstances leading to the attacks “by a supposedly rag-tag band of militants.”
According to a statement issued yesterday in Abuja, the party said: “This hitherto unimaginable attack has finally turned the Niger Delta violence to a crisis of immense proportion that can only spell doom for the Nigerian state.
“Since the militants' favoured means of mobility - speedboats – will find it difficult to travel that far offshore, such a probe must find out how the militants were able to reach Bonga. Could they have been assisted by a mother vessel? If so, who owns such vessel?
“Also, what kind of security cordon is in place for such an important facility as the Bonga, which produces over 200,000 barrels of oil per day - which is about one tenth of the country's total oil production?''
The party warned the Federal Government against embarking on its usual knee-jerk response to the crisis, especially the resort to a military crackdown and the jamborees in the name of 'summits of stakeholders'.
“As we have said many times through this medium, the real solution to what is fast becoming a declaration of war in the Niger Delta is for the Federal Government to talk to the REAL stakeholders, not the so-called elders whose stock in trade is to run with the hare and hunt with the hounds to maximise their gains.
“As it is, the federal government has either totally ignored the real stakeholders or allowed itself to be deceived into inconsequential MOUs and Accords with groups that are only interested in looting the commonwealth for their personal gains.
“We also make bold to say that past, made-for-television summits on the Niger Delta have yielded no positive results. Bringing in even the secretariat of the UN will not make a success of another summit for as long as the real stakeholders - the people in the oil communities themselves - are not involved in such an effort,'' AC said.
The party said the attack on Bonga has shown that the militants in the Niger Delta
could attack, without qualms, any facility that catches their fancy in the Niger Delta.
The attack, it said, had also shown that the military option could not and would not work in resolving the crisis that has been the biggest threat yet to Nigeria’s economic well being.
“After all, thousands of soldiers have been deployed to the region to help protect the same facilities that are being attacked at will by these militants.
According to government figures, Nigeria is losing 84 million dollars daily to the incessant attacks in the Niger Delta. That translates to about 2.52 billion dollars per month and more than a whopping $30 billion per year.
During The Presentation Peter Said ERHE Was Looking For New Acquisitions All The Way Up To Russia. Maybe some kind of hint???
"Russian oil giant, Gazprom, is among several foreign companies jostling to replace Royal Dutch Shell in Ogoniland following Federal Government’s decision to award the oil fields to another company."
Gazprom. Huge huge huge by any means if we have any involvement with them whatsoever. They control 16% of the planets gas reserves, have OVER 10 times the proven reserves of XOM and supply Europe with a good portion of their gas. They want in....why?
Israel seen rehearsing Iran attack
An Israeli tank
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WASHINGTON (Reuters) - U.S. officials say Israel carried out a large military exercise this month that appeared to be a rehearsal for a potential bombing attack on Iran's nuclear facilities, The New York Times reported on Friday.
Citing unidentified American officials, the newspaper said more than 100 Israeli F-16 and F-15 fighters took part in the manoeuvres over the eastern Mediterranean and Greece in the first week of June.
It said the exercise appeared to be an effort to focus on long-range strikes and illustrates the seriousness with which Israel views Iran's nuclear program.
The newspaper said Israeli officials would not discuss the exercise.
A spokesman for the Israeli military would say only that the country's air force "regularly trains for various missions in order to confront and meet the challenges posed by the threats facing Israel," according to the Times.
A Pentagon official who the Times said was briefed on the exercise, said one goal was to practice flight tactics, aerial refuelling and other details of a possible strike against Iran's nuclear installations and long-range conventional missiles.
The official, who spoke on condition of anonymity, said a second goal was to send a clear message that Israel was prepared to act militarily if other efforts to stop Iran from producing bomb-grade uranium fail.
"They wanted us to know, they wanted the Europeans to know, and they wanted the Iranians to know," the Pentagon official said, according to the Times. "There's a lot of signalling going on at different levels."
Several U.S. officials told the newspaper they did not believe Israel had decided to attack Iran or think such a strike was imminent.
The U.N. Security Council has imposed several rounds of sanctions on Iran for defying council demands that it suspend its uranium enrichment program, which could be used to make fuel for power plants or atomic weapons.
Iran has refused to buckle to the sanctions and has spurned previous offers of economic benefits to suspend its uranium enrichment, which it says is to produce fuel for electrical power plants rather than for nuclear weapons.
Iran said Thursday it was ready to negotiate over a new package of economic incentives put forward by major powers seeking to persuade Tehran to curb its nuclear work
How to End Niger-Delta Violence - IYC
From Omon-Julius Onabu in Warri, 06.21.2008
As the nation again witnessed the disruption of its oil export quota following Thursday’s militant attack on the offshore Bonga Oil-fields facility, the Ijaw Youth Council (IYC) has said that the Federal Government is capable of putting an end to the regional crisis.
IYC Secretary-General, Comrade Eradirir Udengs, who made this known in an interview with THISDAY, however ruled out achieving the desired enduring peace in the Niger-Delta through the use of the federal might or military force.
“The spate of violence, including militant attacks on oil facilities and hostage-taking, would rapidly subside if the the federal government summons the needed will-power and sincerity of purpose in addressing the urgent development issues of the region,” he said.
“Perpetuation of injustice through military harassment and systematic elimination of the people of oil-producing communities who have been marginalised in every way imaginable will not solve the problem”, he added.
Udengs said though Niger-Deltans were a peace-loving people, the adamant position of the federal government had made them unable to do anything about the situation, which could get worse.
“There are sore points in the Niger-Delta question that the people are aggrieved about, particularly in the oil producing communities. But instead of addressing these issues, they are visiting more inhumanity and injustice against the people.
“Let me say what is happening in the Niger-Delta now is beyond the control of anybody. And the Bonga attack may be minor because of the federal government’s insincerity in handling the issues,” Udengs said.
He the Niger-Delta people were being provoked by “the detention and secret trial of Henry Okah (MEND leader), burning of Ijaw communities by soldiers who claim they are harbouring militants (and) shortchanging of oil producing communities by the government withholding the 13% derivation funds meant for development in oil-producing areas.”
Thursday morning attack on the Bonga oil-field some 120 kilometers off the coast of Bayelsa State has prompted Anglo-Dutch oil giant, Sell, to halt production activities in the facility.
Officials said that the development has led to about 200,000 barrels of crude per day (bpd) or approximately 10 per cent of Nigeria ’s current daily crude export being shut-in.
Bonga Attack: Find Culprits, Yar’Adua Orders Soldiers
•Directive, an empty threat – MEND
From Juliana Taiwo in Abuja, 06.21.2008
Following the devastating attack to Shell’s deepwater oil field, Bonga, by militants, President Umaru Musa Yar’Adua yesterday ordered the country’s armed forces and security agencies to take all necessary action to apprehend the perpetrators behind Thursday’s attack on the 225,000 barrels per day facility and bring them to justice.
But in a swift reaction to the president’s directive to the armed forces the Movement for the Emancipation of the Niger Delta (MEND), which claimed responsibility for the attack, has declared an all out war and warned all foreigners in the region to leave immediately or face the consequences.
MEND described Yar’Adua’s directive to the armed forces as an “empty threat” and “a joke” calling him an “illegal commander-in-chief.”
The attack at the oil facility operated by Shell’s deepwater subsidiary – Shell Nigeria Exploration and Production Company (SNEPCO) - has taken the total volume of crude shut ins by the Dutch multinational to almost 700,000 barrels per day with the country losing some $84 million daily to militia activities in the Niger Delta.
The militants numbering about 20 were said to have operated in three speedboats. They also kidnapped a US citizen, Captain Jack Stone, who is a staff of Tidex, an offshore oil drilling company. Stone has since been released.
Addressing State House correspondents, the Special Adviser to the President on Communications, Olusegun Adeniyi, said President Yar’Adua viewed the latest act as one of national sabotage.
Adeniyi said: “The Federal Government wholly condemns yesterday’s attack on the Bonga Oil Field operated by SNEPCO. President Umaru Musa Yar’Adua has directed the country’s armed forces and security agencies to take all necessary action to apprehend the perpetrators of this latest act of national sabotage and bring them to justice.
“The President has further directed that security be beefed up at all oil facilities and installations in the Niger Delta to forestall further acts of terrorism by criminal elements in the region.
“While the Federal Government remains fully committed to the rapid resolution of problems and grievances of the people of the Niger Delta, it will not shirk its constitutional responsibility for law and order, as well as the safety of lives and property in the Niger Delta region and all other parts of Nigeria.
“Militants in the region who continue to spurn the peace overtures of the Federal Government must be prepared to face the full consequence of taking up arms against their fatherland in a vain and criminal attempt to overawe lawfully constituted authority.
“They must also bear responsibility for the adverse effects of their actions on ongoing efforts by the Federal Government to address the socio-economic problems of the Niger Delta, including the All-Stakeholders Summit scheduled for next month.
“It bears restating that peace and security are essential requirements for the progress and development desired by people in the Niger Delta and other parts of the country.”
Adeniyi said the Federal Government would take all necessary action to stop criminals from willfully depriving the region of “these indispensable ingredients of development, and wickedly restricting the nation’s ability to garner vital resources for the improvement of the living conditions of its people.”
On whether the call for the armed forces to take over, would mean an end to the amnesty hitherto reached with the militants, Adeniyi said: “we are talking about criminality here. What happened in the Shell attack is share criminality, and law and order will take its course that is what we are saying.”
Asked if the president has now decided to go on the offensive, he replied: “The offensive is going to be against the criminals. Of course, we will dialogue with militants who want development in the area but not with criminals who take advantage of the situation to exploit and do all kinds of things that tends towards criminality and terrorism. They will be dealt with according to the law.”
Adeniyi continued: “The militants can be differentiated through their activities. For instance, what happened yesterday at Shell’s Bonga field was share criminality and not militancy. Those are not people who seek the development of the Niger Delta.
“Considering what is going on in the area, you should be able to know those militants that are seeking the development of the area and those who are criminals. The government will not shirk from its responsibility.”
The attack has led to the shutting down of the facility located 120 kilometres (75 miles) offshore Bayelsa State.
It also resulted in the shut in of about 225,000 barrels per day (bpd), which translates to about 10 per cent of Nigeria’s current daily production of about 2 million bpd.
The Bonga oil field has a daily production capacity of 225,000 barrels of oil and 150 million standard cubic feet of gas. The field operated by Shell under a production sharing contract is jointly owned by ExxonMobil, Agip and TotalfinaElf.
The Bonga field was the first in which oil was discovered in commercial quantity in Nigeria’s deepwater continental shelf. Shell started production at Bonga in November 2005, and by May 2007, had exported 100 million barrels from Bonga.
Shell has been the worst hit by militia activities in the Niger Delta mainly due to the fact that it is has the most dispersed operations in the region with most of it onshore.
Offshore operations have mostly been shielded from militia attacks, especially deepwater facilities where Nigeria is hoping to get most of its incremental output over the next few decades.
However, MEND following the presidential directive, in a statement yesterday, said: “The Movement for the Emancipation of the Niger Delta (MEND) considers the empty threat made by an illegal commander-in-chief of an inept armed forces of Nigeria as a joke.
“For underrating our capabilities, the military has been ridiculed world wide after the attack on Bonga.
“If they want to further expose their weaknesses, then we challenge them to launch an attack on any of our positions.
“An attack on any militant position is tantamount to a declaration of oil war. The type of war they are expecting is far from what we plan to engage in.
“In order to avoid being caught in the cross fire, we are asking all expatriate oil workers to vacate oil facilities and living quarters in the Niger Delta while we settle our score with an insincere Federal Government.
“We call on all patriotic youths in the region to sabotage oil facilities in your communities while those willing to be trained to fight are welcome in our training camps.
“Any community close to MEND camps that harbours security operatives or spies does so at their risk and such traitors will be punished.
“Long live the Niger Delta!” the statement signed by Jomo Gbomo, MEND’s spokesman concluded.
MEND has threatened more attacks and warned all the oil majors operating in the country to evacuate their expatriate staff from the oil fields until the issues in the region are addressed.