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wato I Bet MN Is Feeling Pretty Good Lately, As The Price Of Gold & Silver Is Going Up Non Stop.
Sao Tome and Principe: Galp Energia interested in surveying for oil and natural gas [ 2008-02-26 ]
Sao Tome, Sao Tome and Principe, 26 Feb – Officials from Portuguese oil and energy company Galp Energia were met Monday by the government and president fo Sao Tome and Principe to assess the possibility of taking part in oil and natural gas prospecting projects.
Speaking to Portuguese news agency Lusa, Manuel Ferreira de Oliveira, chairman of Galp Energia, said he knew of the Sao Tome government’s plans for surveying oil and natural gas at first hand and planned to look at the possibility fo taking part in some of those projects.
Sao Tome’s natural resources minister, José da Graça Diogo, said that the Portuguese oil company’s interest in the country could involve a Portuguese-speaking strategy and be extended to include Brazil’s Petrobras and Angola’s Sonangol.
“We have been in touch with the Angolan and Brazilian parties to set up a joint venture between the companies, Galp and the Sao Tome state," Diogo said, adding that the oil companies had been discussing the issue amongst themselves.
Galp, Sonangol and Petrobras are also supporting the Sao Tome state in creating Petrogas, the future national oil company, Diogo also said, who is one of the new faces of the recently instated Sao Tome government, headed by Patrice Trovoada.
Although the existence of oil and natural gas in the exclusive economic area of Sao Tome has been confirmed, it is not certain that the deep sea reserves are economically viable.
This is not the case with the joint exploration area with Nigeria, which already has blocs established and granted for the survey phase, a process which is much more delayed in the waters of Sao Tome.
“The seismic survey has been carried out but we need to establish the areas and launch the auction,” said the Sao Tome minister, who said he believed it was “difficult” to carry out this process before the end of the year. (macauhub)
Oando Acquires 2 Shell Oil Blocks for $625m
By Chika Amanze-Nwachuku, 02.26.2008
Indigenous oil marketing company, Oando Plc, has acquired Shell Nigeria’s 49.8 per cent stake in two oil blocks for $625.7 million.
Oando emerged the preferred bidder of the two deepwater blocks offshore Nigeria Oil Mining Lease (OML) in an international competitive bidding process. The company made an immediate payment of 10 per cent of the sum last Friday while the balance will be paid when the transaction is finalised.
An international newspaper had late last year reported that another Nigerian company, African Petroleum Plc, indicated interest in the oil blocks.
The decision of Royal Dutch Shell to sell its stakes in the two blocks, THISDAY learnt, was sequel to its plan to reduce its business in the troubled Niger Delta region where the company currently loses about 200,000 barrels per day of production.
The two stakes owned through Shell Nigeria Exploration and Production Co. Ltd are in deep water blocks OML-125 and OML-134, formerly known as OPL-211.
Agip, a unit of Eni, owns the remaining 50.2 per cent in each block.
Commenting on the transaction yesterday, Group Chief Executive, Oando, Mr. Wale Tinubu, said OML-125 currently produces 18,000 barrels a day of oil from the Abo field combined with near term production growth and high potential exploration acreage to complement Oando’s existing upst-ream position. Tinubu said OML-134 although still in exploration phase, has already recorded significant discoveries.
“The consideration payable is US$625.7 million in cash which will be settled in two tranches. An immediate payment of 10 per cent was paid on Friday, 22nd February whilst the balance will be paid on completion. The consideration and any adjustments will be funded from both internal cash resources and from external financing. Standard Chartered, Standard Bank, BNP Paribas and Merrill Lynch are providing financing to Oando for this transaction. Standard Chartered Bank acted as financial advisors to the transaction. We are pleased to have emerged as the preferred bidder in this competitive international bid. This milestone underpins our preparedness and capability to develop a sizeable upstream portfolio,” he said.
Commenting further, the Oando MD said: “We have been fortunate to be presented with the rare opportunity to acquire a balanced upstream portfolio in our home market in line with our stated principle to acquire proven, active and near term properties. Our ability to marshal substantial resources to win a bid of this magnitude further reinforces our status as sub-Saharan Africa’s leading integrated energy group. We are proud of this development and the positive impact on indigenous corporate Nigeria’s profile in the global oil and gas community.”
A spokesman of Shell Nigeria, Mr. Precious Okolobo, confirmed last night that the deal received the nod of the Nigerian government and the waiver of pre-emption rights by the operator, Agip.
“We can confirm that we have reached agreement with Oando Plc for the purchase of Shell's interest in these blocks [OMLs 125 and 134]. The deal is subject to approval by the Nigerian government and the waiver of pre-emption rights by the operator, Agip, and we cannot comment further,” Okolobo said.
The oil major had late last year announced the planned restructuring of its Nigerian business to the effect that all the company’s affiliates will come under “one Shell structure”.
In line with the restructuring exercise, Shell Group had also last year disclosed plans to sell its interests in the Nigerian offshore blocks in a move aimed at reducing its business in the troubled Niger Delta region.
Until yesterday, Shell Nigeria neither confirmed the planned sale nor the reported plan by AP to purchase the oil blocks.
However, reacting to alleged plans by Shell and other oil majors to divest from Nigeria, Paolo Scaroni, Chief Executive of Apip, a unit of Eni SPA, holders of the remaining 50.2 per cent, argued that the Niger Delta crisis was not enough reason for oil majors to leave the country.
"The situation in Nigeria certainly isn't peaceful, but I don't think it is such as to push oil majors to leave," Scaroni had said.
The planned reorganisation by Shell Nigeria, believed to be the first of its kind since the company commenced exploration activities in Nigeria over five decades ago, has been suspended reportedly on the directives of the Federal Government.
Why We Did Not Increase Production – OPEC President
From Patrick Ugeh in Abuja, 02.27.2008
President of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Chakib Khelil, yesterday in Abuja explained why the body did not increase production of oil in the face of rising cost. Khelil, who is Algeria’s Minister of Mines and Steel, told reporters after the third Steering Committee meeting of the Trans-Saharan Gas Pipeline project that, since the stocks were high and the level of products were high, there was no need to increase production.
“In addition, there was concern about the second quarter of this year, which normally would have decreased in demand.
"Plus all the issues related tothe prices in the US which is leading to a deterioration in the economic growth in the US and its impact on the economic growth in the world. Which would be tied to a decrease in demand in general.
"So, with this, you can have a decrease in demand in the whole year, and for the second quarter. You have high stocks. So why would you need to increase production?,” he explained .
Khelil said it would not be wise to increase production just as it would have been suicidal to decrease production because of the deterioration in the economic growth. "We could be called a scape-goat for what’s happening in the world," he said. He said the increase in oil price was not because of the supply but because of the activities of speculators and other geo-political issues throughout the world.
He however affirmed: "we have been staying at the same level or lowering the production because we have exactly the same situation – stocks are high, gasoline stocks are high, and we have lower demand in second quarter and we certainly have lower demand for the whole year. So why increase supply? So our choice is between the two and I cannot tell you what decision the conference is going to take.”
NNPC Endorses First Biofuel Refinery in Nigeria
By Udeme Clement Ogbuanu, 02.26.2008
The Nigerian National Petroleum Company (NNPC), has endorsed the first Biofuel refinery in Nigeria, saying that the project would create employment for about 58,000 Nigerians in each participating state of the federation, 8,000 direct and 50,000 indirect employment.
The Group Managing Director, NNPC, Abubakar Yar'Adua, made this declaration through the Group General Manager, Engineer Sulaiman Achimagu, at the occasion of the official ground breaking ceremony for the Global Biofeul limited integrated ethanol processing facility in Arigidi, Okoko, Ondo State saying that the Biofuels industry is becoming a reality. Developed economist such as USA and Europe are stepping up their target usage of biofuel to significant and Nigeria must not be left out. "
The USA targets 130bn litres of ethanol for the USA by 2025, while the European Union has set guidelines that 10% of total motor fuel consumption by 2020 must be biofuels.
Many countries have active policies to develop their domestic biofuel production", he said.He said Federal Government of Nigeria introduced the biofuels initiative to harness the vast agricultural potentials of the nation for sustainable wealth creation, employment generation and energy security through renewable energy resource. Federal Govt in June 2007, approved and gazetted a national biofuels policy and incentives which provides the enabling ambience to sensitize them on opportunities in the biofuels industry. A follow up national workshop, that would involve a wider range of stakeholders is being planned. Second, feasibility studies have been completed for 5 bio-ethanol projects at specific location in the 3 States. 2 feasibility studies on Biodiesel are currently on-going. Discussions are being held with potential investors to implement this project. Third, the introduction of E10 which is 10% bio-ethanol with 90% fossil fuel into Nigerian market is at advance stage." NNPC would like to commend other investors to emulate Global Biofuels Limited and initiate biofuel projects in various part of Nigeria. The benefits of biofuels are enormous. A thriving biofuel industry would be a major contributor towards the realization of Yar’ Adua 7 point agenda for Nigeria through power generation, wealth creation and energy security.He said NNPC has created a Renewable Energy Division upon the mandate from Federal Government that the corporation spearhead the development of Biofuels Industry in Nigeria. " This division has recorded a number of notable achievements since its creation. First, workshops have been held with key stakeholders.Speaking at the occasion the GMD/CEO, Global Giofuels Limited, Dr Felix Babatunde Obada disclosed that 30,000 hectares of land have been acquired to actualize the present phase of the project in Ondo State. He added that work will commence with initial cultivation of 50hectares of land which will be upscaled to 300 hectares and increase over a short possible time while construction and installation of Ethanol Refinery and Life Camp will follow simultaneously. "The Refinery will be established in a total of 7 States of the Federation. We already discussing with other state governments for the project to be developed in their States. Our target is to produce approximately 1.5million litres of fuel ethanol per day", he maintained. He explained that the project is the first sweet sorghum biofuels refinery in Nigeria and is expected to produce fuel grade ethanol which would be utilized to blend fossil fuel for the purpose of reducing carbon emission into the atmosphere. It would also reduce depletion of ozone as well as stem global warming.
He maintained that the company is working with BankPHB to source for funds both within and from international agencies that had shown readiness to support the project.The project will enhance the living standard of Nigerians through wealth creation and poverty reduction. It would assist the country to achieve its E10 requirement of United Nations Kyoto agreement by 2010.
PetroChina Quits Bid for Shell’s OML 125 Block
By Fidelia Okwuonu with agency report, 02.26.2008
Few months after China National Offshore Oil Corporation Ltd (CNOOC Ltd) withdrew its bid for the Royal Dutch Shell OML 125, PetroChina, China's largest oil firm has also quit its bid for the same block.
Both companies were told that their bids, at around $300 million to $400 million, were too low for Shell's nearly 50 per cent stake in block OML 125, the Beijing-based source familiar with the matter said.
Although the source did not provide the production level of the block. "Both companies were told their bids were below other competitors," said the source.
The Lagos-based Centre of Petroleum Information, an industry information service, has reported that Shell owned 49.8 per cent and Italy's Eni group owned 50.2 per cent of OML 125, which produces about 24,000 barrels of oil per day. The source said Shell's sale of the block was part of the oil major's restructuring programme initiated last November, after its oil production facilities in the Niger Delta came under repeated militant attacks and lost significant production.
China's biggest investment in Nigeria, Africa's largest oil producer, is a $2.69 billion deal CNOOC Ltd entered into in 2006 for a stake in deepwater block OML 130, set to come on stream this year. PetroChina is working on four exploration blocks but only at study stages, the industry source said, without providing further details.
In an earlier report, Job titles and positions are being re-aligned with the rest of the Shell Group but they do not reflect a decrease in importance or accountabilities.
Basil Omiyi became full-time Country Chair of Shell Companies in Nigeria with effect from January 1, 2008, based in Abuja. The appointment of a fulltime Chairman for Shell Companies in Nigeria reflects the importance of Shell Nigeria to the Shell Group, and the growing importance of our interfaces with the executive, legislative and judicial arms of government.
Mr. Omiyi has had a long and distinguished career with Shell, heading up different areas of the business including External Affairs, Environment and Production, and we are pleased he will bring this wealth of experience to bear on our interfaces" he posited.Shell has till date kept mom on the said bid to sell its $900 million, about 49.8 percent of interests owned through subsidiary Shell Nigeria Exploration and Production Co. Ltd.But reacting to the planned sale in a report Bloomberg media last year, Paolo Scaroni, Chief Executive of Apip, a unit of Eni SPA, holders of the remaining 50.2 percent, said the persisted Niger Delta crisis was not enough reason why oil majors should leave the country.
"The situation in Nigeria certainly isn't peaceful, but I don't think it is such as to push oil majors to leave," Scaroni had said in the wake of the reported plans by the royal Dutch company to sell off interest in the Nigerian oil blocks.
The two stakes, each of 49.8 percent - and owned through Shell Nigeria Exploration and Production Co. Ltd. - are in deep water blocks OML-125 and OML-134, the latter formerly known as OPL-211. Agip, a unit of Eni, owns the remaining 50.2percent in each block. OML-125 produced 12,000 barrels a day of oil net to Eni in 2006. During 2006, Agip made a new discovery of both oil and gas in a well located in the block. OML-134 is still in exploration phase.
O.T. Chevron To Drill North Slope
San Ramon-based Chevron Corp. plans to expand the search for untapped oil reserves by drilling wells on Alaska's North Slope this year.
Chevron will focus on the White Hills prospect acquired as part of the company's 2005 purchase of Unocal, spokesman Mickey Driver said. Chevron is stepping up exploration efforts after failing to replace most of the oil and natural gas it pumped last year. Chevron plans to spend $50. MILLION A DAY worldwide in 2008 seeking untapped reserves.
(Above from the Oakland Tribune, emphasis mine. R.M.)
Survey Finds Rising Inflation in U.S. Part of a Global Trend
STOWE, Vt., Feb. 21 /PRNewswire/ -- A region-by-region survey by Casey Research of the world's largest economies finds that inflation is now globally on the rise. The soon-to-be-released survey, which included a review of available data and local media reports, found that with only one exception, inflation is now a global challenge.
The exception was in Canada, where the inflation rate in January eased by 0.2% from 2.4% in December, due to a fall in federal sales tax and currency appreciation.
"Our findings should be of concern to everyone, because they confirm that price inflation has now taken root globally," said David Galland, managing director of Casey Research, a firm that provides actionable research for self- directed investors and institutions.
"Superficially, the cause of such widespread price inflation can be attributed to rising commodity prices, especially fuel and food prices. But the roots of the problem are based in a long-term deterioration of the U.S. dollar, the de facto reserve currency of the world," added Mr. Galland. "That suggests that this is not a problem with a quick or easy solution, and so investors should be gravitating towards inflation hedges at this time."
Analysis by Casey Research finds the recent up move in commodities may be a continuum of the Nixon Administration's decision to decouple the U.S. dollar from gold in 1971. Click the link below to see a longer-term chart of commodity prices.
http://caseyresearch.com/pdfs/20080221_2-21-08PRchart.jpg
The regions/countries included in the survey were; Asia: China, India, Japan, South Korea, Iran; Africa: South Africa, Nigeria, Egypt, Algeria, Morocco; North America: Canada, United States, Mexico, Dominican Republic; South America: Brazil, Argentina, Colombia, Chile, Venezuela; Europe: Germany, United Kingdom, Russia, France, Italy; plus Australia.
"While our survey is focused on the larger economies around the world, the inflation trend is, at this point, almost universal. Our researchers have come across riots over the price of food in Mauritania, to inflation exceeding the high end of Israeli inflation targets by 30%. We are seeing price controls being implemented in Thailand and 7-year highs in inflation in Finland," said Mr. Galland. "Given the context of this rising global inflationary trend, it is easier to understand gold's steady rise of late."
The final survey report is due out March 1, 2008. To request a copy or to arrange an interview, contact Delores Day at (802) 253-8767, ext. 102, or by email at press@caseyresearch.com.
Gas Flaring: Senate Threatens to Shut Down Oil Wells
From Sufuyan Ojeifo in Abuja, 02.20.2008
The Senate Committees on Environment, Petroleum (Upstream) and Gas Resources, sitting jointly at a public hearing on gas flare out, yesterday threatened to order shut down of oil wells that constitute health hazards to host communities, following the failure of multi-national oil companies to meet the January 1, 2008 gas flare out deadline.
The Committees also said that they would press the Senate to pass a resolution for application of necessary penalties on oil companies that have not stopped gas flaring.
Chairman of the Senate Committee on Environment and Ecology, Senator Grace Bent, said at the investigative public hearing that the “continued degradation of the environment and the health hazards attending the continued flare by oil companies will no longer be tolerated.”
According to Bent, “The January 1, 2008 flare out deadline is still sacrosanct and as such defaulting companies should now be made to face sanctions for continued flares.” She said that there was need to identify some of the oil wells owned by these multi-national oil companies that failed to meet the deadline and that were threatening the host communities .The identification,according to her,is to shut them down ahead of the final stoppage of gas flaring.
She declared:
“We will not hesitate in shutting oil wells that are particularly hazardous and that continually endanger the Nigerian environment and indeed the health of our people.
“This Senate will not watch helplessly while this trend progresses unchecked. We must pay a sacrifice now to ensure the existence and well being of our people and the environment; it is the expectation that this will spur these companies to adopt recommendations from the Kyoto Protocol.”
Chairman of the Senate Committee on Gas Resources, Senator Osita Izunaso, also said the Senate was worried that the oil companies could not meet the January 1, 2008 gas flare out deadline.
According to him, “We are also worried that oil and gas companies in Nigeria are operating under the misconception that the flare out deadline is now December 31, 2008.
“The recognised gas flare deadline is January 1, 2008. We have to borrow from other countries that have been able to achieve gas flare out. We are losing a lot of money and many people are dying as a result of gas flaring.”
A Director in the Ministry of Environment and Housing, Mr. Lawrence Ajibade who represented the Minister, Mrs. Alima Taiwo Alao, said July 1, 2008 was the date for gas flare out, pointing out that the agreement was reached at a meeting held on August 9, 2004 at the Sheraton Hotel and Towers in Abuja.
He said that the July 1, 2008 date was the authentic date the Ministry was working with, adding that efforts need to be geared towards perfecting strategies of implementation to ensure that the deadline was achieve able.
But a representative of the OPTS, Dr. Charles Adedeji, said the gas flare out deadline of 2008 was not realistic.
Adeniji said that the OPTS’s proposition of 2012 as a possible date for gas flare out should be considered by the Senate and the Federal Government.
He told the Committees that the oil companies were committed to the programme of gas flare out.
Adeniji, however, identified the operational difficulties being encountered by the operators to include the crisis in the Niger Delta, poor funding of NNPC shares and the implementation of the local content policy of the Federal Government.
Meanwhile, there were indications at the public hearing yesterday that Nigeria might need a whopping $20 billion investment to build infrastructure for gas utilisation.
Director of the Department of Petroleum Resources, Tony Chukwueke, who gave the indications, said that oil companies which still engage in gas flaring would, from April this year, pay a new tariff of $3.50 per cubic feet of gas flared.
Chukwueke said the penalty the tariff represented the first step towards achieving the deadline for gas flare out.
According to him, “Gas utilisation is an expensive venture. It would cost about $2.5 billion in utilising over 200 million cubic feet per day. We need an investment of $20 billion in investment to manage the daily production of gas.”
Chukwueke explained that the $3.50 tariff was the available price of gas at the local market.
According to him, “In 1990 there was a figure of 50k per 1000 standard cubic feet of flared gas and that slowly graduated to N10 to 1000 cubic feet being flared, now N10 in today’s market is something like eight Cents, if you look at eight Cents in comparison with what is obtained in the market today it is really ridiculous.
“The actual value of the gas today is about $3 or $3.50c and the international market, it would be about $7 or $8. You can see the value of gas that we loose from flaring 2.5 billion cubic feet every day. We can here understand the enormity of the problem.”
Chukuwueke told the Committees that it was as a result of the weak penalties by the government that had made the operators of the sector to be foot-dragging on the issue of gas flare out.
He spoke on a new gas policy by the Federal Government, stating that “Before you are allowed to export gas, you will put gas in the domestic market; would you not put that gas in the domestic market, you will have to pay for other people to do so at the rate which is commensurate with what gas is worth in the domestic market.
“This way you will provide that infrastructure because without putting in place a platform for which gas would be put into the domestic market there was no way gas flare would be put out.”
The Minister of State for Gas in the Ministry of Energy, Mr. Emmanuel Odusina told the public hearing that the domestic gas demand had reached 3 billion cubic feet annually.
According to him, “There is a need to grow the market as stimulation to the building of infrastructure for domestic gas utilisation. The way out of gas flaring is to establish an implementation programme for meeting the deadline.”
Sao Tome and Principe: Angola’s TAAG and Portugal’s Euro Atlantic win privatization tender for STP Airways [ 2008-02-19 ]
Sao Tome and Principe, 19 Feb - Angolan national carrier TAAG and Portuguese airline Euro Atlantic have been awarded the license to operate STP Airways, the Jornal de Angola newspaper reported Monday.
Citing unidentified sources, the Angolan newspaper said the two airlines were selected by the Sao Tome government from 11 bidders including Angola’s Air Gemini, ESCOM of the Espirito Santo group and various other private investors who were all ruled out due to lack of relevant experience.
When the privatization of Sao Tome’s national carrier is concluded it will net the archipelago’s government nearly US$ 2 million from the sale of its 65 percent shareholding in STP Airways.
Angola’s TAAG, which recently took delivery of two Boeing 777s and three 737s, is taking advantage of the demise of Air Luxor, which operated the Sao Tome-Lisbon route in recent years in parallel with TAP Air Portugal.
STP Airways has operated flights to the islands since October, 2007 using a leased aircraft. (macauhub)
Oil Blocks: FG to Review PSC with Shell, ExxonMobil, Others
•1993 offshore blocks to be affected
From Chika Amanze-Nwachuku and Fidelia Okwuonu in Abuja, 02.20.2008
The Federal Government yesterday gave more insight into the planned review of existing joint venture agreements with foreign oil companies, saying only the offshore Provision Sharing Contracts (PSCs) signed in 1993 would be revisited.
However, that of the Agbami oil field, operated by Chevron Nigeria Limited (CNL) will be excluded.
Fielding questions from newsmen at the International Conference Centre, Abuja, the venue of the ongoing 8th Nigerian Oil and Gas Conference, the Director of Petroleum Resources, Mr. Tony Chukwueke explained that the PSCs to be reviewed were principally those of offshore blocks signed in 1993, which have provisions in them that authorise the Federal Government to renegotiate them if the oil price exceeded $20 per barrel.
He said it was based on that provision that the PSCs relating to those affected blocks will be reviewed.
Specifically, Chukwueke said the PSCs relating to those blocks awarded in 1993, including those of Shell’s Bonga oil field, ExxonMobil’s Erha field as well as Abo field (operated by Agip) are all subject to review.
According to him, the review became necessary because some of the blocks were not given out by the government through the bidding process, but through all kinds of agreements, adding that a thorough compilation had to be done to ensure that those PSC of blocks that fall into the categories that needed to be renegotiated were not left out.
He argued that the 1993 PSC provided for $2.50 per barrel guarantee of margin paid to oil companies if oil prices fall below $22 per barrel, but that this was stopped in 2000 when the MOUs which was signed by state owned Nigerian National Petroleum Corporation (on behalf of the federal government) and the joint venture partners came into force.
Chukwueke explained that in 2000 when the additional bonus introduced to encourage exploration was stopped, the government retained the guarantee of margin paid to oil companies at below $42 per barrel, noting that the oil companies decided to abandon the protection because in 2005, oil prices rose steadily above $42 per barrel.
"The guarantee of margin was a downslide protection for the industry but in 2005 the oil prices went up steadily above the $42 mark and the industry itself decided to abandon that protection. This is because at $50 per barrel, it was better for the industry to pay 85 percent tax and enjoy higher margin than they would get from the guarantee of margin paid to them.
That was why it was abandoned”, Chukwueke said, insisting that there is no going back on the planned review of the 1993 MoU
.On the clamour for cancellation of the MOU, the DPR boss stated that the companies had been enjoying certain incentives in the MOU, even when they had abandoned the MOU and were paying tax.
“There are certain things in the MOU which they had continued to use. The MOU defines realisable price and is calculated from the basket of prices. What made this price realizable is unfavourable to the government but favourable to oil companies. The MOU defines how the companies can deduct the cost of production. This is an issue to be considered under this new arrangement. We have to determine deductible price. What is the actual cost of oil production? What is the technical cost of operation?. Who determines technical cost.
“The MOUs give the companies powers to decide that and they have been using it," he added.
He confirmed that the renegotiation process will commence in a couple of days and would be completed in three months.
“We are just at the threshold of beginning that process. When we talk about offshore contracts, it is not all the offshore contracts because the contracts have been varied from the time they started in 1993. What we are referring to are those initial contracts that were purely frontier in nature and the law that put those contracts in place has provisions in them that allow us to renegotiate or review them if the oil price exceeded $20.
“We are looking principally at the PSCs signed in 1993. I do not think that Agbami will be affected. In the case of Agbami, we all know the history.
Agbami was a sole risk block given to an indigenous company who they farmed out to Chevron a part of it and then entered into contract with Chevron. So it is not one of the 1993 PSCs to be reviewed. The PSCs of 1993 relate to those blocks awarded in 1993, they are Bongas (Shell), Erhas (Exxonmobil) and Abo (operated by Agip).” he stated further.
We are looking in terms of batches of contract, so that a company those not say because we did not mention his block, that block is not included.
“We are looking at all issues because like you know the government gave these blocks out not through a bidding process but through all kinds of agreements. So we just have to compile to make sure we are correct. So if the PSC you have is a 1993 PSC, it is subject to review” the DPR boss said, assuring that the review will be done as soon as possible. “We are starting the process now. We want to do it quickly as possible. Because as you know every second counts for us. We are starting the process; I think in a couple of days, we are trying to complete it within three months”.He confirmed that the Federal Government is currently looking into the decision by the immediate past administration to return the Oil Prospecting License (OPL 245) to Malabu Oil, a company owned by the former Minister of Petroleum Resources, Chief Dan Etete, six years after it was revoked. This he said was sequel to the protest that greeted that decision by Shell said to have paid the Signature bonus for the block.Presidential Adviser on Energy, Dr. Rilwanu Lukman had last year hinted of the plan to revisist the MoU signed by NNPC with the international oil companies which were overdue for review.The renegotiation, it was learnt will give the country upper hand in its oil resourcesand would be done in line with the terms of agreements.However THISDAY learnt that the government is not in a hurry to fix another bidding round, until the issues of the review of the PSCs, as well as the investigations into the allegation of irregularities at the 2007 bid round was trashed out.
Thanks NDT & vip1999 For The Info.eom.
BB But What If CVX IS Leaving & XOM IS NOT Coming Back???
"Again...niether Addax or Sinopec HAVE THE CAPABILITY OF DEVELOPING in this depth."
The Big Boys COULD be saying... "If ya don't wanna do things our way, see how far ya get without us. We're taking our balls & going home."
(Not that I believe the above scenario, just throwing a firecracker into the nice warm cozy bonfire.)
Can't Find ERHE Booth Or Name As One Of The Sponsors.
http://www.cwcnog.com/content.php?page=welcome
Look/Cllck on the left for Download Conference Brochure, and/or Exhibition Brochure.
(Yes on the main page over on the right, ERHE is there, but not when clicking on Con. Bro or Exhib Bro.)
Nigeria Oil & Gas (NOG8) Exhibition
Nigeria Oil & Gas (NOG8) Exhibition is the most important energy event ever to be held in Nigeria. NOG8 builds on the great success of the 2007 event which increased exhibitor numbers by a further 20% and the number of visitors by 35%.
As the leading event for Nigeria, the NOG exhibition is sold-out months in advance, the organisers have managed to add a further 20% to the exhibition to cater for the extra demand – with so many companies attending, the atmosphere and levels of business conducted at NOG8 will be tremendous. A guaranteed success delivering a complete audience of quality and quantity.
The Exhibition will be ongoing throughout Nigeria Oil & Gas (NOG8) from 18 – 21 February 2008 with the Strategic Conference, Nigeria Seminar Content and Technical Sessions held alongside within the same building.
This will allow more than 600 senior delegates, amongst the 4000
attending professionals, to spend considerable time on your stand.
PURPOSE OF EXHIBITING
All operators, service companies and suppliers of products and services to Nigeria’s oil & gas industries should join the Ministry of Energy, the NNPC and their partners at Nigeria Oil & Gas
(NOG8). The advantages and objectives of participation are:
Meet all the industry’s decision makers under one roof
Gain added value through the several activities
Sell directly
Make new business contacts and networking
Generate leads
Meet with existing customers
Reinforce commitment to the marketplace
Meet distributors or potential agents
Test the market
Introduce new products and services
Keep up to date and ahead of competitors
Exchange information
Obtain market feedback
NOG8 is the must-attend event for Nigeria, everyone you need to meet will be there
Every company with an interest
in Nigeria’s massive oil & gas
industries should be present at
NOG 2008. All aspects
concerning exploration,
production, transportation and
distribution of oil and gas will be
covered including the following
categories:
Catering
Chemicals
Communications
Control Systems
Corrosion Protection
Drilling Engineering
Environmental Services
Exploration & Production
Fire & Explosion Safety
Clothing & Equipment
Gas Detection
Gas Processing
Generators
Geology
Geophysics
Instrumentation
LNG Production,
Transportation & Storage
Lubricants
Marine Services & Equipment
Measurement Systems
Offshore Support
Paints
Pipe Drilling,
Fitting & Laying
Platforms
Ports
Pumps
Recruitment
Seismic Surveys
Software Development
Storage
Subsea Production Systems
& Equipment
Switchgear
Tanker Loading
Training
Transportation of Oil & Gas
Valves
Waste Treatment & Disposal
Water Treatment
Welding
Well Control
EXHIBITION PROMOTION
The Ministry of Energy, NNPC and CWC Associates take a proactive marketing approach to ensure the event has a high national, regional and international profile. These marketing activities include:
Personal invitations to senior officials of energy ministries and key decision-makers
throughout the industry
Direct mail, fax and email to the main buyers and key target audience
Agreements with the leading international trade magazines and Nigerian press
to promote and cover the exhibition including advertising and editorial coverage
Complimentary exhibition invitations issued across the sector, through liaison with
trade associations and international trade offices
Exhibiting companies will encourage their key staff to attend the exhibition to see
the latest products and services available
Internal promotion throughout the NNPC and its joint ventures (head office is
less than 5 minutes from the exhibition)
Hofmeister: Shell Committed to Ending Gas Flaring
From Constance Ikokwu in Washington, D.C., 02.18.2008
Shell Petroleum Development Company (SPDC) has said it is still committed to ending gas flaring, more than a month after the January 2008 deadline expired. An earlier deadline in 2007 was shifted to this year.
The January deadline saw oil companies lobby hard to have it pushed to another year, raising doubt about their commitment to ending the harmful practice.
President of Shell in the United States (US), Dr John Hofmeister, has explained that the multinational oil company is determined even after it failed to achieve this important objective for more than 30 years of drilling oil in the country.
“Our commitment was and remains genuine. Conditions have changed during the course of time. We have spent billions of dollars in attempting to end gas flaring. We are prepared to spend more funds to end the gas flaring. But because there are areas we can no longer operate or where we can protect the infrastructure that is necessary to end the flaring, we have to take more time.
“And we regret that it takes more time, but we can’t ask our staff to work under unsafe conditions. We will simply work with the communities and the government. Our goal remains the same, to end flaring,” he stated.
Responding to questions after the presentation of his report titled: “A National Dialogue on Energy Security: The Shell Final Report,” at the US Chamber of Commerce in Washingon, D.C., Hofmeister said the issues in Nigeria were complicated.
‘Criminal gangs’ that ‘arm themselves’ make operations in the Niger Delta difficult for oil companies, he stated.
He said the inability of Shell to gain access to destroyed oil fields for the purpose of rebuilding undermined efforts to end gas flaring.
Gas flaring however predates the existence of militant groups in the Niger Delta. Their activities, mostly hostage-taking and kidnapping have only become common in recent years.
Asked if Shell has a new target date, Hofmeister simply said: ìWe are determined to be a positive player in Nigeria.î
While the Nigerian government waits for Shell and other oil companies operating in the region to get their act together on the issue, the people of the Niger Delta suffer the immediate and long-term consequences.
Gas flaring burns off gas and releases poison into the atmosphere. Some communities do not know darkness as huge balls of fire from flaring gas burns non-stop for many hours. Some of the fires are reportedly close to farms and homes that people feel the heat.
Nigeria is second to Russia in flaring the highest quantity of gas in the world. About 2.5 billion cubic feet per day of gas is flared on a daily basis. The World Bank estimates that Nigeria loses about $2.5 billion a year to this practice.
PGS, EEL And Cherwayko Get Bad Press On Sao Tome Deals
(FROM JOE SHEA'S WEB SITE. R.M.)
An article posted on the market-watching site ADVFN (we have had an account there for three years - just $6.99 a month - and highly recommend) spells out in a lot of detail the contracts with Sao Tome & Principe, the tiny island nation that may hold the key to untold oil riches in the near future, and where ERHC Energy's rights had long been a political football. It may be the first time that someone other than ERHC came under fire its dealings with the country's top officials.
The article was produced by a human rights organization called Norwatch, which usually is focused on wrongdoing involving Norwegian companies. The issue in this case is the chain of custody of PGS copntracts negotiated with the island. Norwatch says Wade Cherwayko, a onetime associate of former ERHC Energy chair Sir Emeka Offor and now the CEO of Equator Exploration (EEL), which prospered mightily on the London AIM exchange when it first started trading there in 2004.
Norwatch says that Cherwayko negotiated the agreements on 3D resource mapping that is Norwegian-owned Petroleum-Gas Services' main business, and payment in the form of three blocks of their choice and 10 percent of tall future signature bonuses the nation would receive. Cherwayko says he did not negotiate the contracts; a former oil minister who negotiated the contracts for Sao Tome says Cherwayko did.
That wildly generous payment was substantially revised, but EEL still ended up with two blocks to be chosen just ahead of ERHC Energy's choices in the country's Exclusive Economic Zone - and 10 percent of the first signature bonus. That meant Sao Tome realized about $2 million, but EEL took its contracts to the stock markets, where investors bet $100 million on them, money Cherwayko can probably take home.
All of this has occurred before a single drop of oil has been produced.
The big question, though, is whether Sao Tome & Principe can ultimately renege on its various contracts, which iobservers say are marred by both internal corruption and inexperience.
Here is the Norwatch article from ADVFN's EEL board:
(YOU CAN READ ARTICLE ON JOE'S WEB SITE. R.M.)
Nigeria Loses N53b to Pipeline Vandalisation
From Sufuyan Ojeifo in Abuja, 02.16.2008
Awhopping N53.8 billion was lost by Nigeria to petroleum pipeline vandalisation in 2006 and 2007, according to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engineer Abubakar Yar’Adua.
Yar’Adua disclosed this yesterday to the Senate Committee on Petroleum (Downstream Sector), headed by Senator Emmanuel Paulker.
Yar’Adua, who led the corporation’s management to an interactive session, specifically said that while N36.6 billion was lost in 2006, the sum of N16.9 billion was lost in 2007.
The Port Harcourt refineries recorded the highest financial loss of N21 billion in 2006, going by the breakdown that was given to the committee at the session.
Yar’Adua told the committee that the corporation had concluded plans to build mega stations in some key West African countries such as Ghana, Togo and Benin Republic, stressing that the measure is aimed at resolving the trans-border smuggling of refined petroleum products .
He updated the Senate committee on the mega station projects in the country, saying that the corporation was yet to complete the 37 mega stations it planned to build across the country.
He said, “Only 25 have been completed leaving, a balance of 12. The remaining stations will soon be completed in addition to the 12 floating stations the NNPC is constructing in the riverine areas of the Niger Delta region.”
The NNPC chief expressed concern over the inability of the country to maintain its refineries, even as he admitted that there was the need to build more refineries in the country. “The past administrations simply built refineries to make money but they failed to invest in their maintenance,” he stressed.
According to him, "That is why the issue of Turn Around Maintenance (TAM) which is supposed to be done every two years was never accorded any priority. And so, the refineries don't operate efficiently and sufficiently."
He said that the Senate Committee should impress it on the Executive arm of government the necessity for it to bolster the Corporation's plan to build a refinery each in Lagos and Cross River States .
The Senate Committee Chairman, Senator Paulker shared the position of the NNPC GMD on the need to ensure adequate TAM for the refineries and to build more refineries in the country in order to boost the supply of refined petroleum products for local consumption.
He said that the Senate Committee was worried about the situation in the downstream sector, stressing that the incessant hike in the prices of the products, importation of refined products and adulteration of the products were some of the areas of concern that compelled the Committee to convene the interactive session.
Paulker expressed the hope that critical issues raised as well as suggestions that would improve the sector would be addressed with a view to providing a way out of the perennial problems so identified.
Nigeria’s Oil Export Suffers Setback
•Shell confirms production shut-in of 200,000 bpd
By Chika Amanze-Nwachuku, 02.14.2008
The 2008 budget is already under threat even before it is passed. The Niger Delta crisis has continued to take its toll on the nation’s revenue as Shell Development Company of Nigeria (SPDC), Nigeria’s biggest oil producer, still records a production shut-in of about 200,000 barrels per day in the Western base.
Fears are already being expressed that Nigeria is at risk of losing its reliability as a steady supplier of crude oil owing to the frequent shut-ins.
The World Street Journal reported earlier in the week that anxiety over the latest Nigerian disruptions helped to push oil futures above $90 a barrel last week.
Nigeria, world’s 6th biggest oil exporter and Africa’s largest oil producer, derives more than 90 per cent of its foreign exchange earnings from oil which forms the basis for national budget.
Prior to the escalation of the militancy in the Niger Delta, Nigeria produced about 2.6million barrels per day (bpd) oil.
But in 2006, the nation lost an estimated N570 billion in revenue as crude oil sale fell by 3.2 per cent below the projected target while petroleum profit tax fell by 10.9 percent due to the protracted crisis in the region, which also resulted in drop in the production capacity by about 600,000 bpd.
The continued violence, analysts believe, has helped to push the oil futures, although this has variously been debunked by the Nigerian government.
But analysts who spoke yesterday stated the need for the federal government to urgently arrest the worrisome crisis, fearing that the country stood the risk of losing its credibility as a reliable supplier of crude oil, citing the worsening crisis which forced Shell last week to declare a force majeure on its crude exports from Nigeria for the second time in two months, indemnifying it from litigation if it fails to honour supply contracts.
Shell’s declaration on export came after security concerns had kept its contractors from fixing a pipeline that feeds its Bonny Light export terminal, a development that closes off 130,000 barrels a day.
At his maiden media briefing on Tuesday, the new Managing Director of SPDC, Mr. Mutiu Sunmonu, said in 2006 when the militancy in the region escalated, the company was forced to shut down oil production from its fields in the Western Niger Delta, while crude loading from the Forcados terminal was suspended.
According to him, owing to the heightened insecurity, the company was unable to produce some 477,000 barrels per day in its Western area of operations. He said although there has been a remarkable progress, the company currently records a drop of about 200,000 bpd in output.
Sunmonu, who tied the progress of the company’s various domestic gas projects to availability of funds and peace in the region, said the company remains committed to its gas flares-down programme and planned to accelerate all gas gathering projects as soon as security situation improved.
Speaking with THISDAY last night, an industry analyst argued that the needed investment in the Niger Delta could be funded by the increase in production which would accompany an improved security situation. He said the restoration of the between 2.6mbpd and 2.7mbpd could generate an additional revenue of about $15 billion per year, adding that most estimates put the loss at $15 billion per year from late 2005 when estimates of losses to daily production ranged between 578,000bpd and 650,000bpd.
However, the SPDC boss, who stated that the issues of militancy and funding challenges had caused set backs in its joint venture operations as well as domestic gas projects, said the company was committed to its various gas projects, subject to funding.
Throwing more light on the funding issues between SPDC and the Federal Government, Sunmonu who said that funding problems had made it difficult for the company to meet both joint venture and contractual agreements, explained that the Joint Venture partners agree a work programme every year which they fund in proportion to their holdings (Nigerian National Petroleum Corporation 55 percent, Shell 30 per cent, Total 10 per cent and Agip five per cent).
“We started 2007 with an agreed work programme of $6.6 billion, subject to funding. When the funding was eventually made known to us, it came at $2.7 billion, creating a gap of some $3.9 billion. Although we did our best to cut back it was not possible to reduce activities and projects to the new amount without contravening contractual obligations and penalties. We ended the year spending around $4billion but NNPC funded their share of the $2.7billion,” he said.
On the allegation that Shell executed more projects than approved by the National Petroleum Investment Manag-ement Services (NAPIMS), the MD said the budget approval came very late after contracts had been awarded and projects commenced.
He however confirmed that parties were close to reaching an agreement on the funding of the billion dollar short-fall in the financing of joint venture operations.
On the planned review of the Production Sharing Contract, he said renegotiation was ongoing but assured that his company would reach an amicable settlement with its joint venture partners.
Nigeria Should Diversify Economy –Nepad
From Michael Olugbode in Maiduguri, 02.15.2008
The African Peer Review Mission (AFRM) of the New Partnership for Africa ’s Development (NEPAD) has asked the Federal Government of Nigeria to desist from over depending on oil revenue if the nation wants to achieve its economic plan of being one of the world top twenty economies in 2020.
Speaking in Maiduguri , the Country Review Team Leader 1, Professor Shadrack Gutto said the only way for the economic prosperity of Nigeria is by diversifying her revenue from crude oil, stressing that it is about time that the Nigerian government use the resources from the black gold to develop other sectors of the economy.
Gutto explained that using the oil revenue to diversify the economy would assist in building a strong nation and would widen the revenue profile of the nation. He advised the Federal Government to ensure equitable distribution of resources to move the nation forward.
He affirmed that Nigeria need to stop the crisis in the oil producing area by sharing the resources from oil equitably and need to be seen by all as been fair to every constituent part of the country.
He said the visit had made the team made up of experts from other African nations understand the diversity of Nigeria, while maintaining that such diversity in language, ethnicity, religion and geographical locations “cannot be manipulated through human design.”
“There is the need to ensure that the sharing of revenue is equitable and transparent. The oil revenue should be used for the development of other areas of the economy as well as provision of infrastructure in the oil producing communities and less developed areas in the country,” he expressed.
Gutto said that the AFRM team in Nigeria was divided into two groups to interact with civil society groups, non-governmental organizations, government functionaries and agencies with a view to collating the opinions and views of the people on the socio-economic issues affecting the development of African nations, democracy and good governance, tax, issue of the vulnerable ones in the society like women and children, adding that the reports, when compiled, would be submitted to the African leaders in Addis Ababa, Ethiopia during the African Union summit in July.
He said the team during their visits to part of the country saw that Nigerians are frank and bold, “Our interactions with the civil societies and other groups elicit opinions and views from the people and corruption in political circle and the society at large was the main discourse. Most people were about the issue of corporate governance, wealth creation, socio-political crisis which was said to be hampering development of the nation and alleged mismanagement of the resources,” Gutto added.
Nigeria’s Oil Export Suffers Setback
•Shell confirms production shut-in of 200,000 bpd
By Chika Amanze-Nwachuku, 02.14.2008
The 2008 budget is already under threat even before it is passed. The Niger Delta crisis has continued to take its toll on the nation’s revenue as Shell Development Company of Nigeria (SPDC), Nigeria’s biggest oil producer, still records a production shut-in of about 200,000 barrels per day in the Western base.
Fears are already being expressed that Nigeria is at risk of losing its reliability as a steady supplier of crude oil owing to the frequent shut-ins.
The World Street Journal reported earlier in the week that anxiety over the latest Nigerian disruptions helped to push oil futures above $90 a barrel last week.
Nigeria, world’s 6th biggest oil exporter and Africa’s largest oil producer, derives more than 90 per cent of its foreign exchange earnings from oil which forms the basis for national budget.
Prior to the escalation of the militancy in the Niger Delta, Nigeria produced about 2.6million barrels per day (bpd) oil.
But in 2006, the nation lost an estimated N570 billion in revenue as crude oil sale fell by 3.2 per cent below the projected target while petroleum profit tax fell by 10.9 percent due to the protracted crisis in the region, which also resulted in drop in the production capacity by about 600,000 bpd.
The continued violence, analysts believe, has helped to push the oil futures, although this has variously been debunked by the Nigerian government.
But analysts who spoke yesterday stated the need for the federal government to urgently arrest the worrisome crisis, fearing that the country stood the risk of losing its credibility as a reliable supplier of crude oil, citing the worsening crisis which forced Shell last week to declare a force majeure on its crude exports from Nigeria for the second time in two months, indemnifying it from litigation if it fails to honour supply contracts.
Shell’s declaration on export came after security concerns had kept its contractors from fixing a pipeline that feeds its Bonny Light export terminal, a development that closes off 130,000 barrels a day.
At his maiden media briefing on Tuesday, the new Managing Director of SPDC, Mr. Mutiu Sunmonu, said in 2006 when the militancy in the region escalated, the company was forced to shut down oil production from its fields in the Western Niger Delta, while crude loading from the Forcados terminal was suspended.
According to him, owing to the heightened insecurity, the company was unable to produce some 477,000 barrels per day in its Western area of operations. He said although there has been a remarkable progress, the company currently records a drop of about 200,000 bpd in output.
Sunmonu, who tied the progress of the company’s various domestic gas projects to availability of funds and peace in the region, said the company remains committed to its gas flares-down programme and planned to accelerate all gas gathering projects as soon as security situation improved.
Speaking with THISDAY last night, an industry analyst argued that the needed investment in the Niger Delta could be funded by the increase in production which would accompany an improved security situation. He said the restoration of the between 2.6mbpd and 2.7mbpd could generate an additional revenue of about $15 billion per year, adding that most estimates put the loss at $15 billion per year from late 2005 when estimates of losses to daily production ranged between 578,000bpd and 650,000bpd.
However, the SPDC boss, who stated that the issues of militancy and funding challenges had caused set backs in its joint venture operations as well as domestic gas projects, said the company was committed to its various gas projects, subject to funding.
Throwing more light on the funding issues between SPDC and the Federal Government, Sunmonu who said that funding problems had made it difficult for the company to meet both joint venture and contractual agreements, explained that the Joint Venture partners agree a work programme every year which they fund in proportion to their holdings (Nigerian National Petroleum Corporation 55 percent, Shell 30 per cent, Total 10 per cent and Agip five per cent).
“We started 2007 with an agreed work programme of $6.6 billion, subject to funding. When the funding was eventually made known to us, it came at $2.7 billion, creating a gap of some $3.9 billion. Although we did our best to cut back it was not possible to reduce activities and projects to the new amount without contravening contractual obligations and penalties. We ended the year spending around $4billion but NNPC funded their share of the $2.7billion,” he said.
On the allegation that Shell executed more projects than approved by the National Petroleum Investment Manag-ement Services (NAPIMS), the MD said the budget approval came very late after contracts had been awarded and projects commenced.
He however confirmed that parties were close to reaching an agreement on the funding of the billion dollar short-fall in the financing of joint venture operations.
On the planned review of the Production Sharing Contract, he said renegotiation was ongoing but assured that his company would reach an amicable settlement with its joint venture partners.
Oil Majors Face Increased Political Risk From State Intervention: Aon Analysis
Global oil supplies under threat
LONDON, Feb. 12 /PRNewswire-FirstCall/ -- Oil multinationals face increased political and economic risks as governments readdress the balance of power by taking more control over their domestic product, according to Aon's Political and Economic Risk Map 2008. The report found that countries such as Venezuela and Uzbekistan pose a high risk for companies with potential problems such as confiscation, sovereign non-payment and political interference. These political risks could threaten global oil supplies and push record oil prices even further.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)
This is evidenced in yesterday's threat by Venezuela to cut off the US oil sales after one of the world's four largest oil companies won international court orders freezing up to $12bn in assets of state oil firm Petroleos de Venezuela (PDVSA). Also, the Chinese government diverted coal exports back to coastal towns during the New Year winter storms.
Governments with state-owned oil companies have benefited and learnt from the technology, expertise and training from the oil multinationals that originally invested in exploration and production. Now, along with the increasing price of oil and by accruing tax and royalties, these governments have asserted themselves to bring the domestic product into their control through varying degrees of nationalisation. The drivers for state control vary from left wing politics, as evidenced in South American countries such as Venezuela, Ecuador and Bolivia, to capitalist economics.
As most of the world's oil reserves are today held by government-controlled oil companies -- approximately 90% compared to 30% in 1978 (Source: Hydrocarbon Highway) -- multinationals are now dealing with nations with elevated levels of political and economic risk to meet increasing global demand. For example:
Simon Lazarus, executive director of Aon's Natural Resources & Construction Division commented: "A number of oil multinationals are facing serious challenges as governments take greater control over their resources. Not only are we seeing an increase in risk across a number of oil producing countries, but the supply situation could potentially worsen in some regions. This is evidenced by the current "gas squeeze" in the European sector, as well as certain parts of Latin America where there is a serious lack of state investment to keep oil fields productive and to finance expansions into new areas."
Miles Johnstone, director of political risk at Aon Crisis Management, added: "This week alone we have seen Venezuela again threatening to cut off oil supplies to the US. This comes at a time when the main oil producing and refining region in Nigeria continues to suffer from high levels of political violence, kidnappings and general civil unrest, and tensions between the US/UN and Iran over its nuclear programme are ongoing. These factors indicate potential for serious disruption to the operations of key oil producers as well as to established oil transportation routes which could well lead to further spikes in the price of oil.
"It is crucial for energy companies to understand the nature and extent of these kinds of political threats to their operations and to take appropriate action to mitigate these risks. One way of doing this is by reviewing and strengthening their concession contracts or production sharing agreements; another is through insurance cover, for example."
Sao Tome and Principe: Portuguese group Pestana carries out charter flights to the archipelago [ 2008-02-11 ]
Sao Tome, Sao Tome and Principe, 11 Feb - Portuguese group Pestana plans to carry out charter flights in June and September between Portugal and Sao Tome and Principe in order to make the most of its tourist investments on the archipelago, a group official said in Sao Tome Friday.
Speaking to macauhub, the commercial director of the group in Sao Tome and Principe, Ricardo Rodrigues, said that the charter flights were the result of a partnership with five Portuguese tour operators, and with airline EuroAtlantic which will supply the aircraft.
Rodrigues said that the flights would be on Mondays from 9 June until 14 September between Lisbon and Sao Tome, using a EuroAtlantic Boeing 757-200, with capacity to transport 190 passengers.
The Pestana group hopes to transport around 2,000 tourists to Sao Tome on these flights in order to make the most of its tourist investments on the archipelago, worth an estimated US$35 million.
Along with a 115-room, five-star hotel that is under construction and due to open in June, the group has a four-star hotel in the city of Sao Tome, with 65 rooms, as well as another four-star hotel with 70 rooms, located on the Rolas islet, 100 kilometers from the capital of Sao Tome.
Portuguese state airline TAP currently has a monopoly on the route between Lisbon and the Sao Tome archipelago. (macauhub)
2 Naval Ratings Killed as Gunmen Attack Boats
From Ahamefula Ogbu in Port Harcourt, 02.12.2008
Two naval ratings were killed and another one thrown overboard in two separate attacks at Bonny, Rivers State when gunmen attacked a naval boat escorting a Nigerian Liquefied Natural Gas boat.
The second incident which took place at bouy 35 in Bonny area also involved the attack of a supply vessel belonging to Texaco where a gun belonging to one of the security men was stolen and personnel thrown overboard.
Eyewitness accounts said the NLNG boat being escorted was chased by the gun men who immediately opened fire close to the jetty with high caliber weapons prompting those on land to take to their heels.
When the naval escort boat sent from the NNS Pathfinder, Rumuolumeni sent a distress call over the attack, the distance from Rumuolumeni to Bonny could not allow help to come until the gunmen left.
Commenting on the incident,Navy spokesman,Lt. Way said: “We have the report of the attack. We are however collating the facts and within an hour, I will be able to confirm the details to you.”
In the second incident, the attack was said to be on a Total oil vessel, MV Patience where some gunmen in the same style overtook it at the Bonny waterways and opened fire on the vessel , wounding some of the crew members in the process. After boarding the vessel, they also threw a crew member overboard.
He was said to have been rescued about 25 minutes later by another boat . The gunmen sped off into the deep seas immediately after the attack while the vessel sent a signal to alert other sea- going vessels .
Work starts on Gulf 'green city'
Green city planned for the desert
Enlarge Image
Abu Dhabi has started to build what it says is the world's first zero-carbon, zero-waste car-free city.
Masdar City will cost $22bn (£11.3bn), take eight years to build and be home to 50,000 people and 1,500 businesses.
The city will be mostly powered by solar energy and residents will move in travel pods running on magnetic tracks.
Abu Dhabi has one of the world's biggest per capita carbon footprints and sceptics fear Masdar may be just a fig leaf for the oil-rich Gulf emirate.
Others fear Masdar City - on the outskirts of Abu Dhabi City - may become a luxury development for the rich.
The project is supported by global conservation charity, the WWF.
Less power, less water
The city will make use of traditional Gulf architecture to create low-energy buildings, with natural air conditioning from wind towers.
Water will be provided through a solar-powered desalination plant, Masdar says. The city will need a quarter of the power required for a similar sized community, while its water needs will be 60% lower.
Artist's impression of Masdar City transport pod. Image: Masdar
An artist's impression of a Masdar City transport pod
The city forms part of an ambitious plan to develop clean energy technologies.
In January, the government of Abu Dhabi announced a $15bn five-year initiative to develop clean energy technologies, calling it "the most ambitious sustainability project ever launched by a government".
As part of the plan, Abu Dhabi will become home to the world's largest hydrogen power plant.
The money is being channelled through the Masdar Initiative, a company established to develop and commercialise clean energy technologies, and Abu Dhabi hopes it will lead to international joint ventures involving much more money.
Abu Dhabi will invest $4bn of equity in the project and borrow some of the rest, Masdar said.
"We are creating an array of financial vehicles to finance the $22bn development," Masdar chief executive officer Sultan al-Jaber told Reuters news agency.
"We will monetise all carbon emission reductions... Such innovative financing has never been applied to the scale of an entire city."
Chavez threatens to cut US oil supplies
10/02/2008 - 23:17:26
Venezuela President Hugo Chavez today threatened to cut off oil sales to the United States if Exxon Mobil wins court judgments to seize billions of dollars in Venezuelan assets.
Mr Chavez, in an attack aimed at US President George Bush, said: “If you end up freezing (Venezuelan assets) and it harms us, we’re going to harm you.
“Do you know how? We aren’t going to send oil to the United States. Take note, Mr Bush, Mr Danger.”
Exxon Mobil has gone after the assets of Venezuela’s state oil company, Petroleos de Venezuela SA, in US, British and Dutch courts as it challenges the nationalisation of a multibillion dollar oil project by Chavez’s government last year.
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A British court has issued an injunction “freezing” as much as £6 billion in assets.
“I speak to the US empire, because that’s the master: continue and you will see that we won’t sent one drop of oil to the empire of the United States,” Mr Chavez said during his weekly radio and television programme, Hello, President.
Mr Chavez has repeatedly threatened to cut off oil shipments to the United States, which is Venezuela’s largest customer, if Washington tries to oust him.
Mr Chavez’s warnings today appeared to extend that threat to attempts by oil companies to challenge his government’s nationalisation drive in courts internationally.
“If the economic war continues against Venezuela, the price of oil is going to reach 200 dollars (a barrel) and Venezuela will join the economic war,” Mr Chavez said. “And more than one country is willing to accompany us in the economic war.”
NNPC, Shell Disagree over Downsizing
From Stanley Nkwazema in Abuja, 02.09.2008
The management of the Nigeria National Petroleum Corporation (NNPC) is not comfortable with the ongoing restructuring at the Shell Petroleum Development Company of Nigeria (SPDC).
An NNPC official said yesterday that the corporation, as the principal partner with a 51 per cent stake in the NNPC/Shell/Agip/Elf joint venture arrangement, should be properly briefed before an action of such a magnitude is taken by the Anglo-Dutch firm.
It also feels that Shell, which was yet to communicate the restructuring plan to the NNPC, cannot justify the plan.
The NNPC source said the restructuring would eat deeply into its coffers since it is expected that the bulk of the huge amount of money to be paid out to staff that will be affected by the exercise would come from funds meant for the JV programme.
The Petroleum and Natural Gas Workers Union (PENGASSAN) has also recently expressed doubts over the authenticity of the exercise and officials of the union were said to have contacted the House of Representatives Committee on Petroleum over the issue.
PENGASSAN officials are expected in the House on Monday to interface with Shell, NNPC, the Department of Petroleum Resources (DPR) and the Federal Ministry of Labour over the issue.
Also yesterday, the committee confirmed that it had invited the Managing Director of SPDC, Mr Basil Omiyi, over its planned restructuring.
The House is worried that the plan could have a ripple effect on the oil industry as other companies may be tempted to follow suit as soon as the oil giant implements its plan.
Chairman of the committee, Honourable Tamarautare Brisibe who also confirmed the summon said all the parties would be given enough time to explain the critical issues involved since the exercise, if carried out,will certainly affect the oil industry in Nigeria.
He said: “Yes we have invited all of them including NNPC, Shell, DPR, PENGASSAN and the Ministry of Labour. They are expected to interface with us on Monday, February 11. We are concerned and should be provided with enough reasons why they must go ahead. All the parties involved would be given enough time to present their cases.”
A top official of Shell yesterday confirmed receiving the summons by the lawmakers and said his management would honour the invitation to clear several doubts lingering over the plan to bring all its operations in Nigeria under one single unit.
He told THISDAY that Shell wants to join other players in the oil industry to streamline its operations by bringing together all its subsidiaries under one unit.
The restructuring he confirmed would be completed before the end of the year.
The Shell official said: “We want to bring all the operations under one unit. It is a global thing and it is unfortunate some jobs may have to go in the process. What we are doing presently is to look at the various positions to determine were cuts can be made.
“However, the exercise would be carried out in such a way that not more than the estimated 1,000 personnel planned for release may have to voluntarily retire from their positions as the incentives being offered would be too tempting to resist.”
Omiyi and his directors are expected to appear before the House Committee on Petroleum on Monday to explain the planned downsizing.
It would be recalled that President Umaru Yar’Adua had, during his recent visit to Switzerland to attend the World Economic Forum, met with the Group CEO of Shell, Jeron van der Veer and the Dutch Prime Minister Jan Peter Balkenende to discuss its operations in Nigeria, the planned restructuring inclusive.
During the meeting, it emerged that the Anglo Dutch oil giant might have secured ‘critical’ concessions from the president over key federal government policies, which the firm considers to be unfavourable to its operations in Nigeria.
The major points of discussion during the meeting bordered on the controversial gas flare deadline, restiveness in the Niger Delta, the rising cost of production and the new investment policy of the government which may bring to an end the era of cash calls in joint venture operations.
Shell stated that it would consider divesting its operations with job cuts in the country.
But the Nigeria government is reported to have increased pressure on the oil firm by stating that it would press Shell to invest more in the country’s downstream sector. The issue was presented as a request but is seen industry observers as an ultimatum.
Soldiers Raid Communities in Search of Militants
From Segun James in Yenagoa, 02.08.2008
The Joint Task Force on the Niger Delta yesterday raided villages bordering the Tora Manifold along the Nembe Creek in search of militants who killed three naval officers in a recent attack.
The raid on the villages followed the expiration of the 72- hour ultimatum given the people to produce the killers or face the wrath of the military.
Also yesterday daredevil militants operating along the creeks of the Niger Delta once again attacked the Shell Petroleum Development Company (SPDC) facility, where three naval men were killed last week, blowing up a pipeline and causing heavy oil spillage.
THISDAY gathered that the militants, even before the commencement of the military operation, in a daring move, invaded the same facility despite heavy military presence and blow up the pipelines through which all oil evacuated from oil wells are taken to the Bonny Terminal.
It would be recalled that the Military High Command ordered the immediate invasion of the area where the naval ratings on guard duties at the Tora flow station were killed and fish out the killers. All effort to confirm the attack on the manifold from relevant authorities proved abortive as at 8.00 pm yesterday.
but a steady stream of people who claimed their communities have been invaded by soldiers continued to enter Yenagoa as at yesterday evening. Others claimed that the heavy presence of the soldiers along the creeks and rivers leading to their communities force them to flee to safety. Contacted, the Commander of the Joint Task Force in Yenagoa, Lt. Col. Chris Musa denied both the attack and the invasion. According to him, the military only went to the area to replace the house boat that was destroyed in the attack that killed the three naval ratings. Musa in a reply to a text message sent to him wrote, “I just spoke to my source. The destroyed house boat was removed today and replaced with a new one. No explosive around the area reported.” The Commander was however silent on the reported sacking of communities by soldiers.
Celtel to Invest $1billion on Network in 2008By Efem Nkanga The Managing Director of Celtel Nigeria, Mr Bayo Ligali has disclosed plans by the company to invest one billion US dollars on its network to improve its quality of service. He also disclosed that Celtel which has built 3100 base stations in 2007 is planning to build 1000 more base stations in 2008.Ligali at an interactive session with newsmen yesterday admitted that Quality of Service is not at the standard it should be and apologised to Nigerians on Celtel’s behalf for falling short of expectations of its subscribers.Ligali stated that ‘’ It is certain that our customers and indeed all telecommunications subscribers in Nigeria are less than satisfied with the Quality of Service on offer today. So, let me apologise on behalf of all of us at CeltelNigeria for falling short of the expectations of our customers. In making this apology, I am hoping that our customers would appreciate the peculiar environment within which we operate, and the challenges we have had to face to deliver the same service other operators deliver elsewhere in other countries with relative ease.’’ He stated that Celtel in 2007, committed over $1billion in Network Expansion in terms of coverage, capacity and quality. He added that ‘’we are committing another $1b this year and we are optimistic that by the end of this year, the hue and cry over Quality of Service will almost disappear. My optimism is also based on the fact that other Operators are also investing in Network Expansion, because if one is building and others are not, the result will be insignificant’’. Moving forward, he stated that Celtel in 2008 will tackle five critical issues, namely, Network Capacity, Network Resilience, Network Reliability, Power, Security and Operational Performance that will make the network meet customer expectations. He emphasised that Celtel has awarded a contract to Nokia siemens to help it expand its capacity, while in the meantime it has leased fibre optic nationwide capacity to provide medium term relief and resilience until Celtel’s infrastructure is fully operational. He also stated that Celtel was distributing core switching and building soft switches in capacity centres around the country connected to the Microwave and Fibre Optics backbones for resilience and plans to double its switching capacity from 10 to 20 in 2008. He however decried the state of Nitel, the first National Carrier, stressing that some of these investments would have been unnecessary had it been that NITEL provided the needed capacity as anticipated by the operators at inception. According to him, the huge investments in transmission capacity are distracting the operators from channelling their energies and resources into providing core GSM services.Among other measures enumerated by him to improve Celtel’s network, includes implementation of network KPI (Key Performance Indicator) automation to report and routinely intervene in quality impacting issues, outsourcing of monthly and quarterly network quality measurements and benchmarking, comprehensive reporting tools and audits to proactively manage network quality, leading-edge monitoring and auditing tools with routine external audits to validate network quality, massive generator swap, dualisation and transformers installation program. Completed 100% in Lagos and now being implemented nationwide currently, new generators with extended service interval, improved reliability and integrated anti-theft features etc. He further added that Celtel has embarked on a New National Network Monitoring Centre,valued at $10m, which will be completed in 2008 with World class facilities to proactively monitor and intervene in network issues.Ligali also stated that Celtel because of quality of service challenges has invested over $2billion in coverage, quality & capacity and promised Nigerians that very soon, the results will start to manifest.
Return to N’Delta or Quit, FG Orders Oil Firms
From Ahamefula Ogbu in Port Harcourt, 02.08.2008
All oil and gas companies which fled the Niger Delta region in the wake of activities of militants have been ordered by the federal government to return to the region or stop business as the situation has changed.
Handing down the order yesterday in a meeting with more than 140 oil and gas companies at the Government House , Port Harcourt with Governor Chibuike Amaechi in attendance, Minister for Special Duties, Chief Godsday Orubebe said any company which refuses to heed the advice to relocate their operations from where they moved to would be stopped from operations.
Orubebe though regretted that the genuine agitations for development in the Niger Delta was hijacked by criminals noted however that it was unacceptable for the companies to drill oil from the region and take the proceeds elsewhere.
According to him, “Government is aware that some companies have relocated their personnel out of this region in the wake of the then grave security situation. It is now time for these companies to return back and keep the productive wheel of the region busy again.”
Orubebe pointed out that the decision of the companies to relocate their operational bases to other parts of the country has further caused unemployment among the youths in the Niger Delta which further exacerbates restiveness and poverty.
“Some have done a complete relocation of their operational offices and activities out of the Niger Delta. But we wish to state that there has been a great improvement in security in Port Harcourt in particular and within the Niger Delta in general.
Yar’Adua Approves New Gas Policy
02.08.2008
President Umaru Musa Yar’Adua yesterday took a major step forward in addressing the nation’s energy and power supply problems by approving a new National Gas Pricing Policy and Regulations.
The policy/regulation is aimed at ensuring short and long term gas availability, at affordable prices, for all domestic consumption and for sectors that have significant multiplier effects on the national economy.
According to a statement by the Special Adviser to the President on Communications, Mr. Olusegun Adeniyi, the two new policy documents approved by Yar’Adua are also expected to boost the pace of industrial development in the country by ensuring competitive gas prices for all gas consuming sectors of the economy.
Under the new pricing policy, Nigeria’s gas will be supplied at the lowest commercially sustainable prices to the strategic domestic sector which provides electricity for residential and light commercial users.
“The newly policy for the country’s Strategic Industrial Sector, comprising industries that require gas as their main feedstock, such as fertilizer and methanol producers, is expected to make such industries as competitive as their counterparts in other low-cost gas producing countries.
“The new gas policy further stipulates that all operators in the country’s oil industry must realign their gas development portfolios in order to ensure that gas resources which are rich in natural gas liquids NGLs), including condensate and LPGs, are directed to strategic domestic sectors.
“The policy objective is to ensure that all NGL-rich gas in Nigeria is preferentially deployed for domestic use rather than for export.
“Under the new policy regime, all oil and gas developers in the country are expected to allocate a specified amount of gas from their reserves and annual production to the domestic market”, he said.
The statement added that the amount of gas to be reserved for domestic consumption will be periodically determined by the Minister of State (Gas) in the Federal Ministry of Energy.
“A Department of Gas is to be established in the Federal Ministry of Energy to oversee the implementation of the new gas policy and regulations”, he said.
Meanwhile, the President has said Nigeria was watching the situation in Chad Republic, with a view to getting the two sides to the negotiating table.
The President was speaking to the Burkinabe Minister of Agriculture, Water Resources and Fisheries, Mr. Salif Diallo, who brought a special message from President Blaise Campaore to the State House.
“We are watching the situation in Chad, including the efforts of Libya as mandated by the African Union, and will soon bring the government and the rebels to the negotiating table”, he assured.
Responding to a request for the supply of petroleum products from Nigeria, President Yar’Adua assured the Burkinabe minister that Nigeria would assist appropriately.
Earlier, Mr. Diallo had called on Nigeria to continue her leadership role in the West African sub-region by intervening for a return of peace to Chad.
Also yesterday, President Yar’Adua received a special message from President Abdoulaye Wade of Senegal. It was delivered by Maitre Souleymane Ndene Ndiaye, Special Envoy of the Senegalese President. The content of the message was not disclosed.
Again, Foreign Firms Corner Juicy Crude Oil Contracts
By Chika Amanze-Nwachuku, 02.08.2008
As it was the case under the government of Chief Olusegun Obasanjo, the majority of companies who have been awarded contracts for crude oil exportation in 2008 by the Nigerian National Petroleum Corporation (NNPC) are foreign companies, most of whom have no investments in Nigeria.
THISDAY investigations revealed that of the 28 companies granted approval to export between 30,000 and 60,000 barrels per day (bpd) of crude oil from April to December 2008, only seven have investments in Nigeria.
The companies that have investments in the country are: Addax and Sahara Energy who were allocated 60,000 bpd each. Others are: Camac, Oando, Dukeoil, Senegal and MRS.
The beneficiaries who do not have any investment in the country and who were allocated 60,000 bpd each are: Trafigura, Arcadia, Vitol, Glencore, Sinopec, and IOC. Others are TOR and Ivory Coast who were allocated 40,000 bpd each, while Petrodel, Tauraus, J&S, Gunvor, Pemex, Fujaira, Lanzing, Napoil, Calson, Nigermed, Isla Refinery, Sunoil and Petro Energy Refinery got 30,000 bpd each.
Eyebrows are being raised over the decision to continue with the award of the majority of the lucrative contracts in the oil industry to foreign companies in the face of fierce agitations in the Niger Delta over lack of adequate local participation in the oil sector.
Many analysts and industry experts, both local and foreign, have often attributed the intractable crisis and militancy in the oil-producing region to the issue of foreign domination.
The Obasanjo government had initiated the Local Content policy to increase indigenous participation in the all-important sector and consequently directed oil companies operating in the country to commence in-country fabrication of equipment as well as other major components used in oil exploration.
The government had also reasoned that the implementation of the content policy would serve as a means of dissuading capital flight and help develop local capacity building in the Nigerian Oil and Gas sector, to enable Nigerians participate actively.
But the NNPC has continued to award crude oil contracts to companies who are neither players in the industry nor have any form of investment in the country.
The criteria for the award of the latest contracts were not made public. Under Obasanjo, only companies with a minimum of $5 billion annual turnover were consider – a policy that knocked off Nigerian companies.
For the period covering January to March 2008, for instance, 42 companies were given contracts to export between 10,000 and 60,000 bpd of crude oil. Twenty-five of the beneficiaries who are traders are; Addax, Arcadia, Glencore, Vitol and Trafigura, who were given approval to export 60,000 bpd each while Petrodel, Sterling Oil Resources, Sahara Energy Resources, Gembrook Energy Limited, J & S Inv. Services Ltd, Team Trade International (Lukoil), Amg Petro-Engery Ltd, Kingsbury Trading, Ommart Ltd, Roger Princeton Ltd, Global Gas & Energy Ltd, World Wide Energy, Dainom Nig. Ltd, Macau Ltd, Tacorr, Elan Oil Ltd, Alphapetro World Wide, Attock Oil, Abacus Oil and Phenoil Ltd were granted approval to export 30,000 bpd each, totaling 900,000 bpd.
In the category of refineries were: Gunvor Trade International, which was allocated 60,000 bpd, while four others, Kyokuto, Pemex Refinery, North Atlantic Refinery and Fujairan Refinery were allocated 30,000 bpd each, totaling 180,000 bpd.
The beneficiaries under the Nigerian National Petroleum Corporation were: Dukeoil, Napoil, Calson and Nigermed, who were allocated 30,000 bpd each for January to March, while the beneficiaries under bilateral relationship were Sinopec and Sao Tome who got 60,000 bpd and 30,000 bpd respectively.
Taurus Petroleum Ltd, TOR (Ghana), TOR Logistics, IOC, Senegal and Cote D’Ivoire, also categorised under refineries were awarded 30,000 bpd, 30,000 bpd, 10,000 bpd, 60,000 bpd, and 30,000 bpd respectively, which totaled 280,000 bpd for January to March.
•In our front page story last Tuesday, we inadvertently stated that between 200,000 and 300,000 barrels of crude oil are estimated to be stolen or unaccounted for per annum. In fact, the figures represent daily loss.
EEL, Our Neighbor In Block 2, Sees 2008 Drilling And EEZ Oil
(This Is From Joe Shea. Although I Don't See Any Mention Of 2008 Drilling As The Headline Reads. R.M.)
An insightful investor found some new EEL data and argumentation on ADVFN for the quality of our JDZ investment in Block 2 and posted a link to Investor's Hub. But the site requires login and payment, and since I use ADVFN for my own trading I thought I should share it with you.
The link, if you want to sign up for ADVFN's excellent and very low-cost services, is:
http://fr.advfn.com/cmn/fbb/thread.php3?id=11285167&from=36131.
Read on:
(2) Joint Development Zone (JDZ) Block 2. 8.75% WI. Operator Sinopec
The JDZ is the boundary between Sao Tome and Principe and Nigeria, divided into Blocks. An EEL/ONGC JV was awarded 15% of Block 2 (EEL effective interest 6%). EEL subseuqently increased their stake to 9% but 0.25% was aside for a "partner". Total cost to EEL was US$9.05M and is fully paid. 3D seismic is already available for the block. Gross prospective recoverable resources are stated in the NSAI report (Click here) to be 1,349 mmbbls oil and 1.9 Tcf gas from 4 prospects (unrisked). Unrisked resources net to EEL are 121 mmbbls oil and 168 bcf gas (based on 9% share). A rig has been contracted to drill a well in 2009, with US$3M set aside as their share of costs (max rig cost is US$410K/day, or $37K/day net). The Obo-1 well recently drilled in JDZ Block 1 encountered hydrocarbons.
(4) Sao Tome Exclusive Economic Zone (STP EEZ)
EEL have the right to acquire 100% interest in 2 blocks of its choice in Sao Tome EEZ, plus they can take 15% of government interest in any further Blocks in the EEZ. Note that US group ERHC have a similar option, but EEL have first rights. Initial cost of the 2 EEZ blocks will be US$2M and US$2.5M licence fees. Further "signature bonuses" are payable upon commercial discoveries and production, with aggregate not to exceed US$77M for each Block. PGS/EEL acquired and interpreted ~13,000km 2D seismic data. They will use this to select their 2 blocks (possibly early 2008), then perform 3D seismic. There is various evidence for significant hydrocarbons in the STP EEZ - latest PGS flier.
US Reaffirms Faith in Nigeria
From Constance Ikokwu in Washington, D.C., 02.06.2008
As President George W Bush prepares for his second official trip to Africa, the United States (US) government has once again expressed its commitment to Nigeria in spite of the numerous challenges facing the country.
An Assistant to the President on National Security Affairs, Stephen Hadley, said although Nigeria is not one of the countries to be visited, the country remains a “strategic” and “important” partner to the US.
According to Hadley, “Nigeria is one of our important partners and it is an exciting country. We'll be working closely with Nigeria. It is one of our strategic partners in Africa.”
President Bush and his wife, Laura, will be in Africa between February 15 and 21. They will visit Tanzania, Rwanda, Ghana and Liberia, where Bush is expected to meet with Presidents Benjamin Mkapa, Paul Kagame, John Kufuor and Ellen Johnson-Sirleaf.
THISDAY gathered that issues on human rights, democratic reform, free trade, and open investment regimes will be on Bush’s agenda during the visit.
The White House also says it will be an opportunity for Bush to review first hand the progress made on HIV/AIDS, malaria and economic development since his last trip to the continent in 2003.
Bush had made his first official trip to Africa with a visit to former president, Chief Olusegun Obasanjo, at Abuja in 2003.
Oil is the cornerstone of US/Nigeria relations.
Instability in the Niger Delta is a source of concern to both countries as Nigeria is a major exporter of oil to the US. Nigeria currently supplies about 15 per cent of US energy needs.
Analysts say the US is keen on securing oil supplies from Africa and the Middle East. The volatility of the Middle East - instability in Iraq and contentious relations with Iran - has made the US look more to Africa.
In a visit to Saudi-Arabia last month, Bush had publicly asked the Organisation of Petroleum Exporting Countries (OPEC) to increase oil output.
The world and particularly the US had been hit hard by high oil prices.
With US economy on the brink of recession, fear is mounting that consumers will bear the brunt.
Bush had secured President Yar'Adua's support for the new US/Africa Command (AFRICOM) during a visit to the White House last year.
Yar’Adua’s support for AFRICOM had generated controversy in the country, which culminated in the US ambassador to Nigeria saying last week that his country had no intention of having a base in the African continent.
This however appears to be an afterthought or policy change following widespread condemnation of the command.
Sorry Jim, No Further Info. eom
Angola: More oil found in Angolan offshore oil bloc 31 [ 2008-02-04 ]
Luanda, Angola, 4 Feb – A new oil well named Portia in Angola’s bloc 31 was discovered in ultra-deep waters off the coast of Angola, Angolan oil company Sonangol and BP Exploration (Angola) Limited said in Luanda Friday.
According to a statement cited by Angolan news agency Angop,, the results of tests on the well showed a likely production of over 5,000 barrels of oil per day.
The Portia-1 well was drilled some 386 kilometers northwest of Luanda and reached a total depth of 5,678 meters below the sea level, Sonangol’s statement said.
This was the 15th strike that BP has had in bloc 31 and is located approximately 7 kilometers to the north of the Titania strike and 10.5 kilometers southeast of the Plutao field.
Sonangol, with 20 percent, is bloc 31's concession-holder and BP Exploration Angola is the operator with a 26.67 percent share.
Esso Exploration and Production Angola Ltd, with 25 percent and Statoil Angola A.S. (13.33 percent) also have stakes in bloc 31. (macauhub)
Militants Kill 3 Naval Officers
From Segun James in Yenagoa, 02.04.2008
The fragile peace in the Niger Delta was disturbed over the weekend when three naval personnel were killed during a shoot-out with a militant group along the Nembe Creek in Nembe local government area of Bayelsa state.
The shoot-out is coming barely a week after three communities in the area staged a walk-out against the management of the Brass LNG Company within the Executive Chambers of the Government House, Yenagoa over disagreement arising from the land lease agreement with the company.
The action of the people confirmed the fears that all is still not well in the region as the action of the militants caught the naval personnel napping.
THISDAY gathered that the boys stormed the Shell Petroleum Development Company (SPDC) flow station along the creek in five speed boats and with lightning speed dispossessed the military personnel stationed at the main entrance of the facility of their arms.
On learning about what was happening, the greater number of the Army and Naval personnel within the facility engaged the militants in a bloody battle after which three naval men were killed and several others wounded. All efforts to confirm the casualty figure on the militants’ side proved abortive as at press time.
Confirming the incident, the State Police Public Relations Officer, Iniobong Ibokette said the incident happened late in the night on Saturday but could not confirm the casualty figure.
Also speaking on the shoot-out, the Commander of the Joint Task Force unit in Yenagoa, Lt. Col. Chris Musa said that he heard of the incident but he had no word about it as the area is not under his command.
Efforts to get Movement for the Emancipation of the Niger Delta online to comment on the attack proved abortive but a source told THISDAY that no known militant camp in Bayelsa state was involved.
According to the source, the militant camps in the state have agreed that they will continue to honour the peace agreement entered into with both the Federal and States government.
He said the attack was carried out to give the people in the state, mostly the youths a bad name and vowed that the perpetrators would be brought to book in no distance future.
OPEC Shuns Calls to Hike Oil Output
From Chika Amanze-Nwachuku in Vienna, Austria, 02.02.2008
Despite repeated calls by the United States for more oil to be pumped into the international market, Nigeria and 12 other members of the Organisation of Petroleum Exporting Countries (OPEC) yesterday resolved to maintain output quotas of 29.67 million barrels per day citing fears that a softening global economy would translate into weak demand.
At its 147th Extraordinary Meeting in Vienna, Austria, the group after a review of oil market developments since its December 2007 meeting in Abu Dhabi, United Arab Emirates, concluded that the market was well supplied, asserting that to further increase production quotas would be counterproductive.
In a communique issued at the end of the meeting, the ministers noted that stockpiles of crude were likely to increase in the first half of this year.
“It is observed that OPEC production decisions had ensured that the market remained well supplied throughout 2007. It is also noted that the first half of 2008 was likely to witness a crude inventory build up, and supply and demand forecasts indicate that commercial oil stocks are in line with the seasonal trend and are expected to remain within their five-year average during the traditionally lower demand season.
"In view of the current situation, coupled with the projected economic slowdown, the conference agreed that current OPEC production is sufficient to meet expected demand for the first quarter of the year.
"At the same time, however, the conference noted that the significant uncertainties associated with the projected downturn in the global economy called for vigilant attention to their impact on key market fundamentals of supply and demand until its next meeting on March 5, 2008,” the group said while reiterating its determination to take every measure to keep the market stable.
Speaking with newsmen after the conference, Minister of State for Petroleum and leader of the Nigerian delegation, Mr. Odein Ajumogobia (SAN) noted that the group was closely monitoring the market situation as a demonstration of its responsiveness to the plight of consumer nations.
“Nothing has really changed since after the December meeting. We all agreed to keep things as they are,” he said.
On his part, OPEC President and Algerian Minister of Energy and Mines, Chakib Khelil said the focus should not be about the lack of oil but about the economic crisis, maintaining that supplies are not at risk.
“The world should not be concerned about the lack of oil. We are more concerned about the economic crisis and its ramifications and impact on the world economy.”
Crude oil prices reached a record high of $100.09 on January 3, a development which heightened calls by the US to increase output. Total OPEC output is estimated at about 31.5 million barrels a day – representing about 40 percent of daily world demand.
City of Berkeley Votes to Boycott Chevron
Resolution Cites Controversial Human Rights Record and "Severe Ecological Destruction" in Amazon Rainforest
San Francisco - Berkeley City Council is to boycott Chevron products and services, citing the San Ramon-based oil major's controversial global environmental and human rights record.
The authority adopted a resolution on January 29, mandating that it "cease all purchases from Chevron" as a result of the corporation's record of ecological destruction and involvement in human rights abuses in Angola, Burma, Ecuador and Nigeria, as well as the San Francisco Bay Area, where Chevron operates a refinery widely suspected of causing cancers and other health problems among local residents.
Supported by Amazon Watch and 14 other environmental and human rights groups, the Berkeley resolution is the first in a series of similar proposals to be considered by municipal authorities across the U.S. in the coming months as Chevron management's failure to deal decisively with a range of legacy and current corporate responsibility issues causes growing public and investor concern.
"In locations across the globe including Ecuador, Nigeria, Burma, and Iraq, and as close to Berkeley as its Richmond refinery, Chevron has been implicated in major human rights violations and environmental destruction," said Berkeley Peace and Justice Commissioner Diana Bohn, who filed the resolution. "The City of Berkeley stood up today and sent a clear message to Chevron: your corporate recklessness will not be tolerated."
From 1964 to 1992 Texaco (now Chevron) built and operated oil exploration and production facilities in the northern Ecuadorian Amazon, dumping 18 billion gallons of toxic wastewater directly into a vast, inhabited area of rainforest. Today Chevron is a defendant in a class-action lawsuit in the region where thousands of rainforest dwellers, suffering a public health crisis, are seeking at least $10 billion in clean-up damages.
Chevron is also facing a trial in a U.S federal court in San Francisco on charges it paid Nigerian military and police to fire at villagers staging a protest at a Chevron oil platform in 1998, killing two people. Nigerian citizens also allege that the company was complicit in an attack on two villages that left four dead.
In Burma, the company's ties to the military junta, which has carried out a brutal crackdown against peaceful democracy protests, has brought a wave of international condemnation. As a result of its recent take-over of Unocal, Chevron now owns the Yadana gas project in Burma. Yadana is allowed to operate by a loophole in existing U.S. sanctions against the country, and has provided significant revenues to Burma's military regime.
Locally, in Richmond, in the East Bay, Chevron operates a huge oil refinery blamed for causing serious environmental health hazards, including fires, spills, leaks, explosions, toxic gas releases, flaring, and air contamination. The refinery is suspected of causing cancers and other public health problems in the local community.
We’ve No Plan to Invade N’Delta, Says US
From Stanley Nkwazema and Damilola Oyedele in Abuja, 01.31.2008
United States Government yesterday told the House of Representatives in Abuja, that it has no plans to invade the Niger Delta or create military bases throughout Africa.
Geoffrey Martineau , an officer with the United States Mission to Nigeria, explained that though the US department of defence engagement in Africa is transitiing to a new command, United States Africa Command (AFRICOM), “is a new US Military headquarters devoted solely to Africa and its sole reason for existence is to better enable the Department of Defence and other elements of the US governments to work in concert with our African partners to achieve a more stable environment in which political and economic growth can take place.”
Martineau who interfaced with the House Committee on Defence, said “there is nothing nefarious in AFRICOM and no plan to decolonise Africa, no plan to invade the Delta, or create military bases throughout Africa.
"We decided to reorganise our military in a way that will simply make more sense in cooperating with African nations and in the end, it will strengthen African sovereignty in Africa by strengthening African governments. We will have a civilian and military staff dedicated solely to Africa, meaning that we will have people who understand better than ever. No longer is the African continent split fewer than three different commands. Under AFRICOM, we have already seen levels of aid and funding for key programmes increase and we will have a command far more in tune with the priorities, wishes and interests of Africans themselves,” he said.
Meanwhile, United States Ambassador, Ms Robin Renee Sanders, has lamented that the concept of AFRICOM is misunderstood by many.
Sanders said “it is unfortunate that there is a perception that our efforts to better respond to our African partners have been viewed here in Nigeria as nefarious.
“Why would we do such a thing to a strategic friend and partner such as Nigeria?”She said, adding “there is not and has never been anydesire by my government to have a military base in Nigeria or to militarise Africa or the sub-region The bilateral relationship between our two nations is strong, it is a partnership, and the resources of AFRICOM, which have always be there, should be viewed as a positive addition to that friendship.”
US: No Plan for Military Base in Nigeria
•AFRICOM misunderstood
By Yusuph Olaniyonu, 01.31.2008
The United States yesterday clarified its African Command (AFRICOM) project, maintaining that there was no plan to establish a military base in Nigeria.
Addressing newsmen in Lagos at the end of a listening tour she undertook across four states in the country, the new US ambassador, Robin Sanders, also outlined a policy plan tagged “Vision for 2008” with which the American embassy aims to help Nigerians achieve their socio-economic and political objectives in the new year.
“I have listened and watched with interest the dialogue played out in the Nigerian press on what AFRICOM is or is not, and what its relationship is or is not with Nigeria. Let me state clearly and categorically that the only thing new about AFRICOM is the name AFRICOM.
“It is unfortunate that there is a perception that our efforts to better respond to our African partners have been viewed here in Nigeria as nefarious. Why would we do such a thing to a strategic friend and partner such as Nigeria? There is not and has never been any desire by my government to have a military base in Nigeria or to militarise Africa or the sub-region.
“The bi-lateral relationship between our two nations is strong it is a partnership, and the resources of AFRICOM which have always been there, should be viewed as a positive addition to that friendship,” Sanders said.
She further explained that the AFRICOM project was a plan to better co-ordinate the humanitarian, disaster and technical assistance which the US had always given Africa by putting the resources in one location, that is in Stuttgart, Germany, instead of the three locations where the facilities were housed before. She said the plan was based on requests from African nations.
Describing herself as “Sister to Nigerians”, Sanders, an African-American, said her government saw Nigeria as her “most strategic partner” in Africa “on a number of political, regional and economic issues” and that she was determined to strengthen the relationship.
The ambassador noted that her tour of Lagos, Plateau, Delta and Rivers where she dialogued with community leaders, members of the civil society, business people and government officials showed that “Nigerian people want an evolving and transparent democracy that advances their life goals and that they see the United States as an advocate and partner in these efforts, particularly on anti-corruption issues”
She said the US embassy’s Vision for 2008 was a “framework for partnership” involving four policy pillars which are governing justly, transparently and democratically; investing in people; peace and security; and enhancing business and economic ties.
She highlighted several projects which her government plans to focus her aids to Nigeria in the new year as including strengthening rule of law through co-operation with the National Assembly , fighting corruption through continued technical assistance to the Economic and Financial crimes Commission (EFCC), Nigerian Extractive Industries Transpa-rency Initiative (NEITI) and civil society groups on issues of fiscal accountability; and arresting the spread of HIV/AIDS through partnerships with public health industries.
While promising to continue with the listening tours until she has gone through the whole country, Sanders said: “The United States wants to partner Nigeria’s federal and state governments on investing in their people in a transformational way. I am dedicated to a partnership with stewardship that works towards realising the aspirations for a better quality of life for all Nigerian people. The way forward for the US-Nigerian relationship is through dialogue, co-operation and partnership.”