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Amnesty: Crude Oil Output to Hit 2mbpd
By Chika Amanze-Nwachuku with agency report, 09.25.2009
Nigeria's daily crude oil production, which had dropped below 1.3 million barrels per day in the wake of the Niger Delta crisis is set to hit 2 million barrels per day (bpd), Foreign Minister, Chief Ojo Maduekwe, has said. The escalation of violence in the Niger Delta region in the last three years had reduced Nigeria's daily output, which stood at about 2.6 million bpd, by half. But the implementation of the Federal Government amnesty to militants in the region last month pushed oil production to about 1.7 mbpd, the highest in 16 months. Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Dr. Mohammed Barkindo, who confirmed the figure during a recent working visit to Utorogu Gas Plant in Ughelli, Delta State, said the rise in oil and gas production in Nigeria was a visible reflection of the relative peace that had returned to the troubled region following the take-off of the amnesty on August 6. He said for the first time in a long while, Nigeria's crude production level had exceeded its current Organisation of Petroleum Exporting Countries (OPEC) quota of 1.67mbpd in over seven months. However, hope that the country might achieve its set target of 4 mbpd by 2010 were rekindled yesterday by the Foreign Minister, who affirmed that Nigeria's daily output is approaching 2mbpd. The minister, who spoke on the sidelines of United Nations ?General Assembly, said the Federal Government amnesty was working, revealing that the country's oil output was set to rise as a ceasefire in the country's oil region holds. "Nigeria's oil output currently stands at about 1.6mbpd, but is poised to increase. Because of the militancy, it dropped. But it is coming back to about 2 mbpd," Reuters quoted the Foreign Minister as saying. Maduekwe also said Nigeria was keen on attracting foreign investment, including developing its vast natural gas reserves, which he said were enough to power the entire African continent. "We need to think beyond oil," Maduekwe said, adding that the country's gross domestic product was in fact higher in the days before oil was discovered there. He said: "The militants have accepted the amnesty and are surrendering. Now we need to fulfil our commitment that they are rehabilitated. If we could forgive each other the brutalities of the civil war ... I do not see why we cannot bring a closure to the unfortunate violent chapter that was basically a legitimate struggle on the part of the Niger Delta which got hijacked by criminality. "Now there is an opportunity to reset the button so we pull away from criminality to using constitutional legal means to press your point, and get attention and get results. Once we move through this hurdle, and we're moving through that... Nigeria is clearly on the path to achieving its manifest destiny as a powerful modern African state with an economy that will be one of the strongest in the world." The violence, which includes kidnappings, pipeline bombings and oilfield raids, was costing $1 billion a month in lost oil revenues, the Central Bank of Nigeria (CBN) said. The CBN's economic report for the second quarter released last month revealed that Nigeria recorded $6.9 billion from crude oil exports in the second quarter of the year while the economy grew by 5.13 per cent. The report said the country exported 113.75 million barrels of oil during the quarter sold at an average price of $61.14 per barrel, which translates to $6.955 billion earnings from oil and indicates an increase of 24 per cent when compared with $5.606 billion earned in the previous quarter. The report stated that Nigeria's crude oil production, including condensates and natural gas liquids was estimated at 1.70mbd or 154.70mbd during the second quarter of 2009, compared with 1.78 mbd or 160.20 mbd in the preceding quarter. This, the report added, "represented a decline of 4.5 per cent. The development was attributed to the continued disruption in oil production in the Niger Delta region as a result of militant activities. Crude oil export was estimated at 1.25mbd or 113.75 million barrels in the review period, compared with 1.33mbd or 121.03 million barrels in the preceding quarter". The development was attributed to the continued attacks on oil export facilities, including the Trans Ramos Pipeline facility belonging to the Shell Petroleum Development Company (SPDC). Deliveries to the refineries for domestic consumption remained at 0.445mbd or 40.95 million barrels in the review quarter. During the quarter, the country's total output as measured by the Gross Domestic Product (GDP) surpassed expectation rising by 5.13 per cent. The growth, according to the apex bank, was driven by the non-oil sector. The report said: "Aggregate output growth in the economy measured by the gross domestic product (GDP) was estimated at 5.13 per cent in the second quarter of 2009, compared with 4.85 per cent in the preceding quarter. The projected growth was driven mainly by the non-oil sector, particularly agriculture which constituted 43.9 per cent of total GDP and contributed 2.4 percentage points to the growth in real GDP."
Japan offers food aid of 3.4 million euros to Sao Tome [ 2009-09-18 ]
Sao Tome, Sao Tome and Principe, 18 Sept – The Japanese government has donated food aid of 4,000 tonnes of rice worth an estimated 3.4 million euros to Sao Tome and Principe, Portuguese news agency Lusa reported Wednesday citing a source from Sao Tome’s trade ministry.
“It is 4,000 tonnes of rice in 210 container that are expected to be unloaded at the end of November,” said trade director, Carlos Bonfim.
The first lot of food aid was delivered to the Sao Tome government by the Japanese ambassador to the archipelago, based in Libreville, Hirose Shinichi.
The Japanese diplomat said that this aid followed the return, in 2007, of Japanese food aid to Sao Tome and Principe in 2007, after the Japanese authorities had decided to suspend donation due to poor management of funds resulting from the sale of the rice.
Since the re-launch of Japanese food aid two years ago the funds resulting from the sale of rice have been managed by the United Nations Development Fund.
The agreement established between the Sao Tome and Japanese governments is that the fund resulting from the sale of the rice should be used for social work, namely construction of rural roads, schools, health centres and water supply with a view to improving the living conditions of the population.
Since 1975 Japan, together with other international partners, has supported Sao Tome in its fight against poverty and economic and social development. (macauhub)
China buys stake in Angolan oil well [ 2009-09-15 ]
Beijing, China, 15 Sept – China plans to buy a 20 percent stake in an Angolan oil block for 1.3 billion euros, an official Chinese publication reported.
The stake to be acquired by China will be in block 32 in Angola’s offshore, which covers an area of around 5,000 square kilometres and is also owned by Portuguese, French, Angolan and US companies, said the September edition of China Business International magazine, published by the Chinese Trade Ministry.
The stake will be acquired from US company Marathon Oil Corporation by a Chinese state consortium of Sinopec and CNOOC, which are, respectively, the largest refinery and the biggest oil producer in China.
The block’s operator is Total, with 30 percent. Angolan state company Sonangol has 20 percent and a unit of Exxon Mobil has 15 percent. Portugal’s Galp has a 5 percent stake.
Marathon, the United States’ fourth-largest oil company will keep a 10 percent stake in the block, where 12 oil strikes have so far been announced.
The 12 wells discovered so far in block 32 are Louro, Cominhos, Caril, Gindungo, Canela, Cola, Gengibre, Mostarda, Salsa, Colorau, Manjericão and Alho.
The announcement of the acquisition of the stake by Sinopec and CNOOC was also made last July but has only now been made public by China.
Angola is currently China’s biggest trading partner in Africa, due to the oil it exports there. (macauhub)
OPEC Maintains Output Targets as Oil Nears $73
•Firm swings into action on industry audit
By Chika Amanze-Nwachuku in Lagos and Patrick Ugeh in Abuja with agency report, 09.11.2009
The Organisation of Petroleum Exporting Countries (OPEC) has agreed to maintain output quotas at 24.845 million barrels a day on hopes that a recovery in the world economy will keep oil prices high.
Oil rallied by more than $1 to $72.44 a barrel yesterday in the New York Mercantile Exchange, lifted by a soft dollar, gains in equities markets and soothing words from the oil producers’ organisation.
Meanwhile, practical steps towards remedying the chaotic accounting system in Nigeria’s oil industry have begun with a specialised firm in hydrocarbon measurement, Telemetry Nigeria Limited (TNL) appointed by Nigeria Extractive Industries Transparency Initiative (NEITI) swinging into action.
At OPEC’s 154th meeting, which ended in Vienna, Austria, yesterday morning, the group resolved that there was no need to change production in view of current price rally and instead called for stricter compliance with existing curbs.
Oil prices touched an all-time high of $147.27 a barrel on July 11, 2008, but fell to $32.40 in December as the world grappled with recessionary pressures, which eroded global oil demand.
To help boost prices, OPEC, supplier of about 40 per cent of global crude oil, agreed last year that members with quotas would cut output by a combined 4.2 million barrels a day to 24.845 million barrels per day. Yesterday’s meeting was the third time this year the group had met without changing output.
The 11 members bound by quotas pumped 26.055 million barrels a day in August, according to estimates in a Bloomberg survey, which indicates quota compliance of about 71 per cent.
OPEC Secretary-General, Abdalla El Badri, who briefed the press after the closed-door meeting, said there are positive signs that demand for oil would pick up in 2010. He urged that member countries to adhere to their production quotas.
OPEC said: “The Conference reviewed current oil market conditions and future prospects and observed that, whilst there are signs that economic recovery is underway, there remains great concern about the magnitude and pace of this recovery, especially in the major industrialised nations of the OECD. There has been some easing of the overhang in crude oil stocks but market fundamentals remain weak, refinery utilisation rates are low and product inventories have risen considerably.
“Accordingly, since the market remains over-supplied and given the downside risks associated with the extremely fragile recovery, the conference once again agreed to leave current production levels unchanged for the time being. In doing so, the conference reiterated its determination to ensure sound supply fundamentals and an adequate level of spare capacity for the benefit of the world at large. Similarly, the conference recorded the readiness of member countries to rapidly respond to any developments which might jeopardize oil market stability and their interests.”
There had been expectations that OPEC would keep output unchanged in view of the current price rally and hopes of economic recovery.
Oil prices on Tuesday posted their biggest gain since the end of July, rising above $70 a barrel. The recent price rally above $72 a barrel was sequel to a falling US dollar, which pushed investors to commodities such as oil and gold.
Crude oil advanced for a fourth day with contract for October delivery climbing as much as $1.13, or 1.6 per cent, to $72.44 a barrel on the New York Mercantile Exchange yesterday.
OPEC will meet next in Luanda, Angola, on December 22, and again in Vienna on March 17 next year.
In Abuja, hydrocarbon measurement consultants, Telemetry Nigeria Limited, swung into action on its contract, financed by the World Bank, by consulting with stakeholders on Wednesday.
Speaking with newsmen later in the day, Mr. Yabagi Sani, the chief executive officer of the company, explained that NEITI engaged TNL to carry out detailed oil and gas metering studies to outline innovations and industry best practices in oil field measurements.
It would then identify gaps between local practices and global best practices, he said, with the aim of ensuring due process and transparency in the payments made by all extractive industry companies to the Federal government and statutory recipients.
According to Sani, other aims of the study are to monitor and ensure accountability in the revenue recipients of the Federal Government from extractive industry companies, as well as eliminate all forms of corrupt practices in the determination, payments, recipient and posting of revenues accruing to the Federal Government from extractive industry companies.
NEITI recently published its audit report for 2005, after that for 1999-2004, and commissioned the one for the remaining period till date.
Sani said the ongoing project being handled by his company, which is starting from where the NEITI technical audits ended, would entail a review of all the regulatory guidelines dealing with upstream and downstream measurements and product handling. He said they include DPR’s “Environmental Guidelines and standards for the Petroleum Industry in Nigeria”, and “Guidelines and Procedure Guides for Product Importation, Terminal Operations, Depots and Jetties”.
Others are:
•Determination of the extent to which current weaknesses in Nigeria’s measurement practices reflect deficiencies in published guidelines and/or in the competence of field operators.
•A comprehensive audit/ analysis of the existing hydrocarbon measurement philosophy and infrastructure in Nigeria in both the upstream and downstream (i.e. what gets measured, when, where and how?)
•In the upstream, a detailing of sampling and measurement practices for crude volume and quality determination (and normalisation) will be necessary – entailing measurement practices and methods for volume, temperature, gravity, BS&W content, etc. in flowstations, production platforms and crude terminals, including methods used to construct a regular mass balance.
•For gas, methods used to measure the volumes and quality that are produced, utilised, sold and flared in the field and in gas processing and liquefaction plants.
•In the downstream, a comprehensive assessment of product importation, handling and measurement practices at the refineries, product receiving jetties, terminals and depots in the country.
•In respect of measurement data, a review of the record keeping, information transmission and reporting practices, and data management in the local oil and gas industry.
•This means, according to Sani, the data gathered and recorded and to whom it is transmitted and how, as well as regular analyses and reconciliations and their timeliness.
Another key function of the exercise is to review findings with the Department of Petroleum Resources, Pipelines and Products Marketing Company, PPMC and NEITI’s Working Group on Metering before issuing a final study report.
EMDYAL: I Believe Accepting The #'s 2-4 Would Make For A Bad Deal.
I believe if the #'s WERE 2-4 we would have been bought out already.
I believe Offors' # is closer to 10.
I believe no one will pay that unless there is oil.
Therefore I believe no buyout before drilling results.
Offor Will NOT Sell Out Before Drilling! 1st thing I learned 7, 8, years ago, "Offor Doesn't Make Bad Deals". This has held true. He hasn't brought ERHE this far to fold his hand now. Certainly not for $2 to $4. (Closer to $10., maybe). Addax bought up as much as they could. I'm sure they made an offer for ERHE, & Offor said "No/Not enough". With China's strong interest in these blocks, I'm sure they have made an offer also. "No/Not enough". Offor isn't selling out cheap. Offors' price is so high, China figures we might as well drill, because we're not paying that much unless there's oil.
AIMHO
Oil prices above $68 on weaker U.S. dollar, OECD forecast
OIL prices traded higher yesterday as the U.S. dollar weakened slightly against the euro and the Organisation for Economic Cooperation and Development (OECD) was optimistic about the recovery of the global economy.
By mid-afternoon in Europe, benchmark crude for October delivery was up 19 cents to $68.24 a barrel in electronic trading on the New York Mercantile Exchange. Earlier in the session, it peaked at $69.40.
Oil prices gained as investors turned to commodities as a hedge against inflation and dollar weakness. The euro was trading at $1.4279, up from $1.4273 late Wednesday, while the British pound was quoted at $1.6355, up from $1.6279.
The Nymex contract settled unchanged at $68.05 on Wednesday, when a report on U.S. crude inventory data shed little light on demand.
The U.S. Energy Department's Energy Information Administration on Wednesday said crude inventories fell 372,000 barrels last week, while analysts had expected a drop of 1.9 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
However, gasoline inventories fell by three million barrels, a steeper decline than analysts had expected.
"There's a mix of good news and bad news," said Clarence Chu, a trader with market maker Hudson Capital Energy in Singapore. "That's why the market will likely trade in a range of $65 to $75 this month."
Trading volume was light Thursday ahead of the Labor Day holiday weekend in the U.S., Chu said.
The growth of Chinese crude consumption will likely help push prices higher over the next year, a Morgan Stanley report said.
Chinese oil consumption has risen to 43 per cent of U.S. demand, up from 16 per cent in 2000, while by 2024, China will likely be the world's largest oil market, the report said.
Morgan Stanley expects oil to average $85 a barrel in 2010.
Markets were also boosted by a new forecast from the Paris-based OECD, which said that the world economy is headed for an earlier recovery than previously forecast, although the pace of the rebound will likely remain modest for some time to come.
The Paris-based OECD also said that the economies of Japan and the euro zone countries will contract by less than previously forecast while the outlook for the U.S. is stable, while a "gloomier outlook" was seen for Britain.
In other Nymex trading, gasoline for October delivery rose 1.49 cents to $1.8235 a gallon and heating oil gained 1.86 cents to $1.7691 a gallon. Natural gas was up 1.3 cents to $2.728 per 1,000 cubic feet.
In London, Brent crude was down 6 cents at $67.60 on the ICE Futures exchange.
OPEC will maintain crude oil production targets, says President
* Oil prices rise to $68.65
Organisation of Petroleum Exporting Countries (OPEC) will leave oil production targets unchanged when it meets next week in Vienna after prices recovered, the group's president said.
"We have been seeing slowly a much reduced variation of oil prices," Jose Maria Botelho de Vasconcelos, who is also Angola's oil minister, said in an interview in Luanda, Angola, yesterday.
"This is a sign that the world economy is recovering. Everything shows that they will keep output unchanged."
Botelho de Vasconcelos's views chimed with an official from a Persian Gulf member of the OPEC who said yesterday the group would probably hold quotas steady to avoid derailing the global economic recovery. The official declined to be identified by name because a final decision hasn't been made.
OPEC is holding its third meeting of the year on September 9 in Vienna. The group hasn't altered output targets since it agreed last year to reduce total production for its 11 members with quotas, excluding Iraq, by 4.2 million barrels a day to arrest plunging prices as the world fell into recession.
Oil prices reached a record $147.27 a barrel in July 2008 before plummeting to less than $40 in December. Crude has recovered this year to around $70 a barrel, a price ministers have said is fair for consumers and producers.
Members' compliance with its record output cut slipped for a fourth consecutive month in July as prices recovered, giving an implementation rate of 67 per cent, OPEC said in its most recent monthly report.
The 11 OPEC members with quotas pumped 26.055 million barrels a day in August, 1.21 million more than their collective target and 20,000 barrels a day up from the previous month, according to estimates in a Bloomberg survey published yesterday.
OPEC countries that are producing above their quotas, such as Iran, Angola, Ecuador and Venezuela, will be encouraged to comply with their agreed output limits, the Persian Gulf official said.
Oil ministers from Qatar, Kuwait and Iraq expressed support in recent days for leaving quotas unchanged, even as oil stocks remain high.
The focus should be on returning the global economy to growth rather than higher stock levels, the official said.
Crude oil rose yesterday for the first time in three days on expectations of an increase in fuel demand after an industry report showed U.S. stockpiles fell.
Crude oil for October delivery rose as much as 60 cents, or 0.9 per cent, to $68.65 a barrel in electronic trading on the New York Mercantile Exchange.
It was at $68.58 a barrel at 2:34 p.m. Singapore time. On Tuesday, the contract fell 2.7 per cent to $68.05, the lowest settlement since August 17.
The American Petroleum Institute said yesterday that crude supplies dropped 3.19 million barrels last week. A U.S. government report yesterday may have showed stockpiles declined.
Oil's gains were supported as Australia said economic growth unexpectedly accelerated in the second quarter, adding to expansion in France, Germany and Japan.
"The broader economy has shown signs it's turning around," said Toby Hassall, a research analyst at Commodity Warrants Australia Pty in Sydney.
Should the API figures be "any indication of the EIA numbers tonight, those numbers could be construed as supportive."
Prices on Tuesday climbed as much as $1.41 a barrel when reports showed that manufacturing in the U.S. and China, the two biggest energy using nations, expanded in August. The U.S. and China are responsible for more than 30 percent of global crude- oil demand.
Oil in New York has traded between $65 and $75 a barrel since July 31.
A Chart For Those Complaining About The Share Price, The Company, And/Or Our Resent Chart Retraction...
http://charts.freerealtime.com/quotetools/chartcache/chart125086307609997430.gif
From Macauhub....... Addax Petroleum boosts stakes in oil blocks and starts exploration in Sao Tome and Principe [ 2009-08-28 ]
Calgary, Canada, 28 Aug – Canada’s Addax Petroleum said Wednesday in Calgary that it would start operating a second oil block in the Sao Tome and Principe-Nigeria Joint Development Zone (JDZ), where it was launching an exploration campaign.
According to information published on the company’s website, the acquisition of a further 51 percent of the consortium that explores block 3 from Anadarko, “boosts our presence in this world class exploration region and significantly boosts the economic feasibility of the position, making it possible to aggressively explore this wealth with a sustained drilling strategy.”
With the acquisition, the oil company has become the block's operator, a status which it already had in block 4 of the JDZ.
According to Addax the exploration rig Deepwater Pathfinder has already been received and it will carry out prospecting work in the waters of the Gulf of Guinea.
The results are due to be formally announced in the final quarter of the year.
Addax also participates in block 1, operated by US oil company Chevron, which started exploration work in the JDZ over three years ago.
According to the oil company, in December 2008 the best gross estimates of oil resources in the areas of the Gulf of Guinea in which it was involved, which also included assets in Nigeria, pointed to 3.042 billion barrels.
The portion that corresponds to Addax’s stake in the blocks is 1.359 million barrels, which rises to 1.498 million barrels with its increased stake in block 3 of the JDZ.
Addax Petroleum is the process of being acquired by China’s Sinopec and the deal has already been approved by the Chinese authorities if the offer is accepted by shareholders. (macauhub)
Thought I'd Re-post This. We need our Rally Monkey
800,000 shares & we've gone nowhere.
From MN
Here we all are chomping at the bit
Anticipation so keen we can hardly sit.
Monday may bring profits galore...
But remember...resistance is ninety-four.
Trying To Figure If Mon. Would Be An Up Or Down Day. With MN (our lucky Rally Monkey) posting a new poem, I am assured Mon. we will continue going up.
Bill seeks succession plan for Nigerians in oil sector
From John-Abba Ogbodo (Abuja) and Alemma-Ozoruiva Aliu (Benin City)
MAJOR oil firms under the Local Content Bill packaged by the House of Representatives are expected to use the first four years of the passage of the legal instrument to develop a succession plan for Nigerians into their management positions.
The initiative is part of the House renewed effort to check the abuse of expatriate quota by the operators and ensure the full implementation of the Nigerian (local) content policy in the oil and gas sector.
In its report, a panel of the Lower House, which worked on the bill, specified fresh conditions under which the oil firms would operate and develop the local human capital.
The panel headed by the Chairman of the House Committee on Petroleum, Bassey Otu, proposed a Local Content Monitoring Board (LCMB) that will ensure the oil companies submit their succession plan for Nigerians to take over positions held by expatriates at the management level and a four-year period of understudy for such employees upon the passage of the Act.
"For each of its operations, the firms shall submit to board a succession plan for any position not held by Nigerians. Such succession plan shall provide for Nigerians to understudy each incumbent expatriate for a maximum period of four years. At the end of the period, the position shall be Nigerianised.
"Where Nigerians are not employed because of lack of training, the operator shall ensure, to the satisfaction of the board, that every reasonable effort is made within a reasonable time to supply such training locally or elsewhere. Such effort and the procedure for its execution shall be contained in the operator's employment and training plan while the operator shall report to the board quarterly on employment and training activities for the reporting period and compare this to the employment and training plan.
"The quarterly report shall include the number of new employees hired during the year and their place of residence at the time of hiring and their employment status," the panel said.
The report, however, makes provision of five per cent for management positions for expatriates to protect investors' interest. "For each of its operations, an operator may retain a maximum of five per cent of management positions to take care of investors' interest," the report added.
The firms are also required to submit their personnel returns to the board on quarterly basis, which "must contain names, qualification, age, designation and length of stay of each expatriate in the country."
The panel proposed that for any contract or project above $100 million, the oil firm must include a labour clause on the minimum number of Nigerians to be involved.
All the junior and intermediate level employees of all oil companies operating in Nigeria must be Nigerians, the report stated. "All operators and companies in Nigeria's oil and gas industry shall employ only Nigerians in their junior and intermediate cadres or any other corresponding grades designated by the operator or company," the report said.
For further growth of indigenous capacity, the lawmakers mandated the Minister of Petroleum to make regulations to encourage local companies. "The minister shall make regulations setting out targets to ensure full utilisation and steady growth for indigenous companies engaged in exploration, seismic data processing, engineering design, reservoir studies, manufacturing and fabrication of equipment and other facilities as well as the provision of other support services for the Nigerian oil and gas industry," the committee said, adding that "international/multinational companies working through their Nigerian subsidiaries must demonstrate that a minimum of 50 per cent of the equipment deployed for execution of work are owned by the Nigerian subsidiaries."
For an effective technology transfer to Nigerians, the panel urged the operators to submit to the board yearly, a plan, satisfactory to the board, setting out a programme of planned initiatives aimed at promoting the effective transfer of technologies from them and their partners to Nigerians and companies.
The lawmakers proposed sanctions, ranging from payment of fines to outright cancellation of contracts, for failure to comply with the conditions. "An operator, contractor or sub-contractor, who carries out any project contrary to the provisions of this Act, commits an offence and is liable upon conviction to a fine of five per cent of the project sum for each project in which the offence is committed or cancellation of the project."
Meanwhile, the Environmental Rights Action/Friends of the Earth, Nigeria (ERA/FoEN), has called on the National Assembly to review the Nigerian Extractive Industries Transparency Initiative (NEITI) Act 2007 to incorporate issues on the role of the communities in the NEITI process, environmental audit and accounting, and enforcement mechanisms.
In a statement issued in Benin, Edo State yesterday after a seminar on "Environmental parliament on opportunities for citizens' participation in the legislative process," the group said the process of legislation in Nigeria excludes the electorate, which makes them not conversant with laws made by the National and state assemblies.
The statement signed by the group's Executive Director and Head Legal Resources, Nimmo Bassey and Chima Williams in that order, said the NEITI Act did not give any role to host communities and was also silent on environmental issues.
So Who Could O Guessed MN's Poetry & Song Would Be Our Good Luck Charm. 2 Great days in a row. MN seems like you're the new Rally Monkey :-p
Clinton to Nigeria: Clean up, fulfil pledges on Niger Delta
* Bi-national commission up on electoral reforms, security, anti-graft drive
From Martins Oloja, Madu Onuorah and Oghogho Obayuwana, Abuja
UNITED States Secretary of State Hillary Rodham Clinton arrived Nigeria yesterday with a blunt observation on the ways of her hosts and an even harsher message for the nation's leadership: Nigeria is at the cross roads of crisis of development and good governance.
Therefore the Nigerian government must deal with impurities in the electoral process for people to feel that their votes count, saying "the lack of transparency has eroded the credibility of government."
At a Town Hall meeting last night at the Yar'Adua Centre, Abuja, she noted in her opening remarks that Nigeria's electoral process must be fixed.
Saying that corruption has robbed Nigeria of opportunities to lead Africa and indeed the world, Clinton said "we are ready to work with you, to make the 2011 election system work."
She reiterated President Barack Obama's remark in Ghana about making democratic institutions work. She added: "without good government even oil wealth cannot guarantee development."
Clinton said the US government supports the seven point agenda of the Yar'Adua's Administration as long as it will deliver what will satisfy Nigerians' aspirations.
Saying that: "capacity for good governance exists in Africa and indeed Nigeria," Clinton said government should strengthen its capacity to "punish wrong doing and prevent future wrong doing."
She however, regretted that "EFCC has fallen" and needs to be revived do what it used to do, to strengthen the anti-graft war.
Nigeria and the United States (U.S.) began bi-lateral talks yesterday in Abuja with the crisis in the Niger Delta and electoral reforms topping the agenda.
Visiting American Secretary of State, Mrs. Hillary Rodham Clinton, set the tone of the discussion when she asked the Nigerian government to fulfil its pledges to the oil-rich but impoverished region.
She also said the Barack Obama administration was eager to work with the Federal Government to achieve an acceptable transition programme in 2011.
At a meeting with President Umaru Musa and Minister of Foreign Affairs, Chief Ojo Maduekwe, at the Presidential Villa, Clinton said the President's position on good governance, the fight against corruption and rule of law was in tandem with that of his American counterpart, Barack Obama.
She arrived at the foyer of the President's Office and was ushered into the building by Maduekwe. She then had a brief talk with Yar'Adua before a larger meeting between principal diplomats of America and Nigerian governments.
After about one hour, Clinton came down and boarded her official car.
Maduekwe described the meeting as "a great conversation on electoral reforms and commitment to the rule of law, the fight against corruption. The President acknowledged that we have serious challenges there. The President made it clear that the whole thing goes even more than the rule of law. It is about attitude and this affects the integrity of the electoral process.
"It was very productive. The way you will expect it to be among friends. Honest, candid, encouraging, mutually inspiring, mutually re-enforcing and ultimately strategic."
On Yar'Adua's comments on Mrs. Clinton's earlier attack on Nigerian leadership. Maduekwe noted that given "the President's position about good governance, the need to fight corruption and the issue of the rule of law, it was clear to the Secretary of State that both President Yar'Adua and President Obama are on the same page on these issues."
Through the instrumentality of a bi-national commission, Clinton said Washington would work with Abuja to ensure security and development in the Niger Delta.
At a joint press briefing with Maduekwe, Clinton said America supports the creation of an Independent Electoral Council for Nigeria to strengthen the electoral reforms initiated by President Umaru Musa Yar'Adua so that Nigeria can hold successful and credible general elections in 2011.
Clinton said the security of the Niger Delta weighed up strongly in the deliberations because of what it meant for Nigerian stability and U.S.-Nigeria trade relations.
But Maduekwe assured that all of the measures being put in place by the government from the amnesty grant to greater provision of infrastructure would soon lead to tranquility in the area.
Declaring that the U.S. appreciates Nigeria's contributions to global/regional peace and security, efforts to reform the electoral process and the anti-corruption crusade, Clinton said: "It is critical that Nigeria fulfills its promise...We will be following up on this issue (Niger Delta security). Nothing has been decided at this point but we will be looking at the specific issues. We have very good relations with the Nigerian military. I will be taking this up with our Secretary of Defence. And it depends on what Nigeria could want from us. We agreed to establish a bi-national commission to work at the federal, state as well as the local levels and we will be employing the mechanism of the bi-national commission in this regard..."
Her engagements began with bilateral talks at Maduekwe's official residence, which had in attendance some members of the National Assembly, representatives of Governors' Forum led by Kwara State Governor Bukola Saraki, and the Minister of Defence, Maj-Gen. Godwin Abbe (rtd).
She said: "Nigeria is also a very strong ally of the U.S. in the military front. We are increasingly working together in the maritime security in the Gulf of Guinea, some of the most dangerous places in Africa owing to insecurity, piracy and the criminality that frequently goes on there... Now, we appreciate the cooperative effort we are getting from Nigeria in the fight against terrorism, we also appreciate the fact that Nigeria has moved up to tier one in our annual report on human trafficking."
Fielding questions from journalists, she skirted the range of challenges over which the U.S. would love to further engage Nigeria, noting that "the President (Yar'Adua) has been pushing the agenda of the electoral reforms and securing the Niger Delta. We support the idea of an Independent Electoral Council for the 2011 general elections. We strongly support and encourage the effort of the Nigerian government to reduce corruption as well as electoral reforms and transparency for the 2011 elections...
"Also with the efforts of the government in the Niger Delta in focusing on the region's development needs, engaging the militants, trying to find the way forward, the way to peace, and separating out the irreconcilables, to give a better future to the people who live in that part of Nigeria. The bi-national commission will focus on a broad range of issues. And as I said, we are to use the mechanism of the commission to cooperate and bring about a solution."
On what America expects from Nigeria under the new dispensation and why it is critical in the partnership for Nigeria to "fulfill its promises," Clinton said: "Without Nigeria, Liberia and Sierra Leone might not have been free. Nigerian peacekeepers in my view are about the best. We are appreciative of your efforts in the region, in Zimbabwe, at present in Sudan and the role that your government played in bringing about stability in Guinea and condemning the events in Mauritania and speaking strongly against the coup in that country...
"We appreciate the cooperation that we are getting from Nigeria in all of these, so we would continue to work together for security in the Gulf of Guinea. The framework of our discussions is on rule of law, we are strongly in support of the efforts of Nigeria in reducing corruption, increased transparency and electoral reform."
Speaking on looted funds which are stashed away in Western banks, terrorism enclaves in Africa and sectarian violence in Nigeria, the Secretary of State put the blame squarely on the African environment and its people's collaboration with foreign nationals to rape their economies.
Maduekwe said the "powerful symbolism" in the support that Nigeria gets from the State Department had been reflected in the visit's agenda.
He said: "There is a national consensus in favour of all the issues raised and concerns expressed. There is a national concern brimming in Nigeria to enhance democracy and electoral reforms... if there is any gap over the years and because attention has not been paid to it, it will be the building of state capacity and that's where the bi-national commission comes to play. We will like the U.S. to assist us in this regard."
Cold Reception For Hillary Clinton At Aso Villa
August 12, 2009 14:46, 949 views
By Oluokun Ayorinde/ Abuja with Agency Report
The United States Secretary of State, Senator Hillary Clinton, who arrived Nigeria yesterday night on a two-day visit, is said to have received cold reception from Nigerian government officials, P.M.News can reveal.
This is evident at the Aso Rock Presidential Villa, Abuja, where there seems to be no serious preparation to receive the former First Lady of the U.S.
At the Villa this morning, nothing was said about the visit of Mrs. Clinton to President Umar Musa Yar’Adua which is scheduled for about 4 p.m. today.
Although it was widely reported that Mrs. Clinton will be recieved by Chief Ojo Maduekwe, the Minister of Foreign Affairs, on arrival in the country, PMNews can reveal that the minister was not at the Nnamdi Azikiwe International Airport, Abuja to receive the U.S. Secretary of State.
There was no other highly placed government official to receive her. Instead, she was received by Professor Tunde Adeniran, Nigeria’s ambassador-designate to the United States and a protocol officer from the Ministry of Foreign Affairs.
Mrs. Clinton was driven away in a convoy of about 17 vehicles by the U.S. embassy officials after a brief ceremony at the airport.
P.M.News, however, gathered that the government of President Yar’Adua is pissed off by the relentless criticism by the U.S. over the manner in which he came into office.
Meanwhile, Hillary, who is on the fifth leg of her seven-nation tour of Africa, is expected to hold talks with President Yar’Adua.
Anaylysts say she is expected to take a tough line on corruption and electoral reform.
Last month, US President Barack Obama skipped Nigeria on his first official Africa trip, in what was seen as a snub for its record on governance.
“Nigeria is undoubtedly the most important country in sub-Saharan Africa,” Assistant US Secretary of State for African Affairs, Johnnie Carson, was quoted as saying by Reuters news agency, en route to the Nigerian capital Abuja.
But Mr Carson said it had also been described as “the most corrupt state in Africa”.
President Yar’Adua came to power in a widely criticised election in April 2007.
Mrs Clinton is scheduled to hold a private meeting later today with representatives of the country’s political elite, with democracy and corruption said to be on the agenda.
And she is expected to seek an update on the status of a 60-day amnesty period in the Niger Delta, declared in an effort to end years of militant attacks that have hobbled the oil industry.
Mrs Clinton’s visit comes in the wake of clashes between a radical Islamist sect known as Boko Haram and security forces in Bauchi and three other north-eastern Nigerian states.
Yesterday, Mrs Clinton demanded an end to widespread sexual abuse in war-ravaged eastern Democratic Republic of Congo, during a visit to the country.
She spoke out during a tour of a crowded refugee camp in the city of Goma.
She leaves Nigeria tomorrow for Liberia and will round off her trip in Cape Verde.
Portugal firm to build tourist resort in Sao Tome [ 2009-08-12 ]
Lisbon, Portugal 12 Aug – Portuguese company Leart Takala Investimentos will build a €10 million high-end tourist complex at Praia Boi on Sao Tome’s outer island, Principe, the firm’s CEO has said.
Nuno Santos told the Lusa news agency Tuesday the development, known as the Praia Boi Resort, will be based on nature tourism. Work on the complex, located 12 kms from the town of Santo Antonio, will begin next year, he added.
Leart Takala, with majority Finnish shareholders, has a 30-year concession to operate the luxury resort that will accommodate 120 visitors and give work to 100 in the project’s initial phase. (macauhub)
Sao Tome airline starts scheduled flights to Angola [ 2009-08-13 ]
Sao Tome, Sao Tome and Principe, 13 Aug – Sao Tome and Principe carrier STP Airways began a service to the Angolan capital, Luanda, on Wednesday with the inaugural flight carrying guests and islanders living in Angola.
The maiden return flight from Sao Tome to Luanda was marked with a ceremony at the archipelago’s 4 de Fevereiro Airport in the presence of civil aviation officials from both Lusophone states.
Rui Mendonça, CEO of Banco do Ecuador, one of four shareholders in STP Airways with a 14% stake, said the new route was a necessary bridge to bring the two states even closer together.
Tickets on the opening Luanda flight cost US$ 249 on a special promotion. (macauhub)
emdyal: Then Again I Borrowed $xx,xxx On My C.Card & Bought ERHE @ $.12 Which Is Now Worth $xxx,xxx Not saying it IS a good idea, but it most certainly WAS a good idea. And no I don't recommend it.
Oil, Gold & Silver, All Taking Big Hits The Last Couple Of Days. And the stocks are following the trend, including ERHE. So I think we're fairing quite well under the circumstances.
China’s Sinopec wants to acquire 20 percent of Marathon’s stake in Angolan oil block [ 2009-07-22 ]
Luanda, Angola, 22 July – Chinese company Sinopec, made up of China Petroleum & Chemical and by CNOOC agreed to pay US$1.3 billion to buy a 20 percent stake owned by US company Marthon Oil in Angola’s block 32, an offshore oil block in deep waters.
The block’s operator is Total, with 30 percent. Angolan state company Sonangol has 20 percent and a unit of Exxon Mobil has 15 percent. Portugal’s Galp has a 5 percent stake.
Marathon, the United States’ fourth-largest oil company will keep a 10 percent stake in the block, where 12 oil strikes have so far been announced.
The 12 wells discovered so far in block 32 are Louro, Cominhos, Caril, Gindungo, Canela, Cola, Gengibre, Mostarda, Salsa, Colorau, Manjericão and Alho. (macauhub)
Tex; If You Go To The Same Las Vegas (Lost Wages) I've Been To, You Might Have To SELL Some Shares To Pay The Rent When You Get Back :)
Israeli navy in Suez Canal, may attack Iran
IN preparation for a possible attack on Iran's nuclear facilities, two Israeli missile class warships have sailed through the Suez Canal 10 days after a submarine capable of launching a nuclear missile strike.
The development came as the head of Iran's nuclear agency yesterday resigned in a move that might have been connected to the country's post-election turmoil.
Gholam Reza Aghazadeh gave no reason for his resignation, according the semi-official ISNA news agency. But Aghazadeh has long been close to opposition leader Mir Hossein Mousavi, who claims to be the victor in June 12 presidential elections and says the government of President Mahmoud Ahmadinejad is illegitimate.
Aghazadeh is quoted as telling ISNA that he submitted his resignation from Iran's Atomic Energy Organisation 20 days ago to Ahmadinejad, who accepted it
The deployment into the Red Sea, confirmed by Israeli officials, according to the Associated Press (AP) yesterday was a clear signal that Israel was able to put its strike force within range of Iran at short notice. It came before long-range exercises by the Israeli air force in America later this month and the test of a missile defence shield at a United States (U.S.) missile range in the Pacific Ocean.
Israel has strengthened ties with Arab nations who also fear a nuclear-armed Iran. In particular, relations with Egypt have grown increasingly strong this year over the "shared mutual distrust of Iran", according to one Israeli diplomat. Israeli naval vessels would likely pass through the Suez Canal for an Iranian strike.
"This is preparation that should be taken seriously. Israel is investing time in preparing itself for the complexity of an attack on Iran. These manoeuvres are a message to Iran that Israel will follow up on its threats," an Israeli defence official said.
It is believed that Israel's missile-equipped submarines, and its fleet of advanced aircraft, could be used to strike at in excess of a dozen nuclear-related targets more than 800 miles from Israel.
Ahmed Aboul Gheit, the Egyptian Foreign Minister, said that his government explicitly allowed passage of Israeli vessels, and an Israeli admiral said that the drills were "run regularly with the full co-operation of the Egyptians."
Two Israeli Saar class missile boats and a Dolphin class submarine have passed through Suez. Israel has six Dolphin-class submarines, three of which are widely believed to carry nuclear missiles.
Israel will also soon test an Arrow interceptor missile on a U.S. missile range in the Pacific Ocean. The system is designed to defend Israel from ballistic missile attacks by Iran and Syria. Lt.-Gen. Patrick O'Reilly, the director of the Pentagon's Missile Defence Agency, said that Israel would test against a target with a range of more than 630 miles (1,000 kilometres) - too long for previous Arrow test sites in the eastern Mediterranean.
The Israeli air force, meanwhile, will send F16C fighter jets to participate in exercises at Nellis Air Force base in Nevada this month. Israeli C130 Hercules transport aircraft will also compete in the Rodeo 2009 competition at McChord Air Force base in Washington.
"It is not by chance that Israel is drilling long-range manoeuvres in a public way. This is not a secret operation. This is something that has been published and which will showcase Israel's abilities," said an Israeli defence official.
He added that in the past, Israel had run a number of covert long-range drills. A year ago, Israeli jets flew over Greece in one such drill, while in May, reports surfaced that Israeli air force aircraft were staging exercises over Gibraltar.
An Israeli attack on a weapons convoy in Sudan bound for militants in the Gaza Strip earlier this year was also seen as a rehearsal for hitting moving convoys.
The exercises come at a time when Western diplomats are offering support for an Israeli strike on Iran in return for Israeli concessions on the formation of a Palestinian state.
If agreed it would make an Israeli strike on Iran realistic "within the year" said one British official.
Diplomats said that Israel had offered concessions on settlement policy, Palestinian land claims and issues with neighboring Arab states, to facilitate a possible strike on Iran.
"Israel has chosen to place the Iranian threat over its settlements," said a senior European diplomat.
Nigeria loses gas market to M'East, Russia
By Yakubu Lawal, Deputy Energy Editor
FACED with the dwindling supply of gas from Nigeria, foreign consumers of the commodity have turned their search for the product to relatively peaceful countries and blocs to run their plants.
Nigeria has reportedly failed to meet its obligation to both existing and prospective customers of Liquefied Natural Gas (LNG) due to the wave of military in the Niger Delta where the resource abundantly exists and tapped.
The Guardian learnt that in desperation, such buyers have shifted their search and patronage to the Middle East and Russia.
It was gathered that with reduction in supply to the Nigeria LNG company by major gas producers, especially Shell, which production capacity has gone down by about 35 per cent, foreign buyers are unwilling to place fresh orders for the country's gas.
Industry sources said big customers like Enel of Italy, Botas of Turkey and Iberdrola of Spain, have directed their orders to countries like Qatar, Russia.
"These companies are now in the Middle East, Europe and Asia scouting for spare cargoes following the increasing insecurity in the Niger Delta and the inability of Shell to boost LNG production and ultimately supply from Nigeria," an official of a major gas producing firm said.
The Guardian further learnt that attempts by some Nigerian gas companies to woo the major buyers to sign contract for more LNG product from Nigeria have not yielded the desired result.
A senior official of the Nigerian National Petroleum Corporation (NNPC) corroborated this when he said "the issue of security of supply is very critical to the success of gas development in any society," adding that "the incessant shut-in of oil production, which has affected gas production, had sent negative signals to big time buyers, who are only comfortable in seeking for gas in regions where supply is guaranteed."
According to him, before any company signs a purchase contract, there must be ample evidence that supply would not be disrupted in such a way that product to the final consumers would be truncated.
"You cannot blame those buyers for looking elsewhere. Today, I can tell you that we are producing below the Organisation of Petroleum Exporting Countries (OPEC) quota. Shell cannot meet its supply volume to NLNG all because of crisis in the Niger Delta," he said.
The official stated that gas companies have not made significant progress in wooing stakeholders to take the Final Investment Decision (FID), especially on Trains Seven of the NLNG to begin construction.
He said Qatar and even Russia, a major gas producer in Europe, have enough capacity to meet the orders of foreign buyers.
Gas supply to NLNG, the fastest growing company in Nigeria, was disrupted when Shell facility was vandalised by militants in the Niger Delta. Another major supplier that has suffered in the face of insecurity in the Niger Delta is Italian oil firm, Agip.
But NLNG official, who spoke with The Guardian on condition of anonymity, denied the development, adding that it had not been formally made known to the company.
He said the recent happenings in the Niger Delta affect gas supply and that NLNG along with other partners (the gas suppliers) are discussing with the hope of getting excess capacity from their production to make up for shortfall in shell supply.
"We are targeting supply from Total's Akpo field. We are discussing with the suppliers with a view to getting excess supply to make up for the shortfall from Shell. Actually, Shell has not restored full supply to LNG plant in Bonny. We are still receiving about 30 per cent less.
"If our buyers are looking for alternative from other parts of the world, it is a welcome development but I think Qatar will have greater potential to look at," the official said.
"The issue of penalty does not arise because worldwide the crisis in the Niger Delta is known. All we need to do is to inform them if we are unable to meet our supply target or declare force majuere," he said.
Shell, the major supplier to NLNG plant in Bonny, had said it would be unable to meet its delivery dates to the company after it closed its Soku gas plant to repair pipelines.
It said the repairs were required after damage caused by thieves and illegal connection.
"In recent months, the number of illegal connections on pipelines has increased significantly and they are encroaching on the Soku plant itself, increasing safety risks to an unacceptable level," Shell Petroleum Development Company (SPDC) said.
SPDC is in a joint venture with NNPC, Total's unit, Elf Petroleum Nigeria Limited and Italy's Agip.
The Soku plant located in the swamps of the southern Rivers State supplies 40 per cent of the gas feed to NLNG, a project in which Shell has a 26 per cent stake.
NNPC holds 49 per cent in NLNG. Other shareholders in the gas venture are Total and Agip. NLNG supplies liquefied natural gas to markets in Europe and the United States (U.S.).
RAYANK We've Never Been Over A Dollar. Close a couple of times, but we have yet to break that barrier.
Oil prices fall below $60, set for biggest weekly fall since January
Monday, July 13, 2009
OIL prices sank below $60 a barrel on Friday, poised for biggest weekly falls since January, as traders focused on economic uncertainty.
However, the latest report from the International Energy Agency predicted an increase in oil consumption in 2010, but expected it to stay negative in 2009 and saw limited demand for OPEC crude.
U.S. light crude for August delivery was down 82 cents at $59.59 by 1008 GMT. London Brent crude was down 78 cents at $60.32 a barrel.
Oil rose to more than $73 at the end of June, its highest level this year, but since then the market has dropped more than $10 as expectations of a swift economic recovery faded.
Although the IEA predicted world oil use would grow in 2010, it added that depended on expected economy recovery materialising. Prices briefly edged higher immediately after the agency's report, but then resumed their slide.
"It is not a report that is going to add to the downside. It is slightly positive and won't add to the weak trend of recent days," said Olivier Jakob of Petromatrix.
Oil has fallen in six of the previous seven sessions. So far this week, prices have fallen nearly 10 per cent, slightly less than an 11 per cent weekly drop in January.
The latest wave of selling began after much worse than expected U.S. unemployment data on Thursday and has been sustained by a steady stream of negative economic news.
An announcement this week from U.S. regulator the CFTC that it was considering tighter controls on excessive speculation in the commodity markets added to the bearish mood, although analysts said it would take months to implement changes.
"A strong incentive was created for market participants of all types to draw back from the market, particularly from the long side of U.S. markets," Barclays Capital said in its weekly oil review.
One supportive factor for the oil market has been disruption of supplies by Nigerian militants. That has helped tighten OPEC supplies, although the group's discipline has declined to roughly 70 per cent from an estimated peak of 80 per cent of promised supply curbs earlier this year.
Nigerian President, Umaru Yar'Adua wants Henry Okah, on trial for gun-running and treason, to be freed in the next few days after the rebel leader welcomed the government's amnesty offer, a spokesman said on Friday.
Sao Tome and Principe parliament approves new oil laws [ 2009-07-06 ]
Sao Tome, Sao Tome and Principe, 6 July – The parliament of Sao Tome and Principe Saturday unanimously approved the framework Law for Oil Operations and the Oil Tax Law.
The Sao Tome government had been awaiting approval of the two laws to re-launch tenders for the oil blocks in the exclusive economic area of the archipelago, and the laws will now be sent for ratification by the President of the Republic.
The framework Law on Oil Operations was introduced a little over six months ago to the National Assembly by the government of prime minister Rafael Branco and had been generally approved by the 4th Commission of the Sao Tome parliament.
The director of the National Oil Agency said that the law was, "completely new, different," but that, "it also requires that public tenders be launched," despite opening up the possibility of, “there being direct negotiations in special cases.”
On 1 July, Luís Prazeres said that the National Oil Agency was looking for parties interested in auctions for oil exploration blocks in the country’s exclusive economic area.
Prazeres also said that interest had already been shown from companies already involved in oil exploration in the Sao Tome/Nigeria Joint Development Zone (JDZ) , such as China’s Sinopec and Addax. (macauhub)
What Am I Missing?
(Sorry if this is obvious to everyone else)
STP OWNS the blocks in the EEZ, and they give themselves 1st choice in one of the blocks????
I have 10 sofas I want to sell & I give myself 1st choice of all of the sofas. What have I/they gained???
Auction of oil blocks in Sao Tome and Principe’s exclusive economic area set for November [ 2009-07-01 ]
Sao Tome, Sao Tome and Principe, 1 July – Sao Tome and Principe’s National Oil Agency (ANP) is seeking interested parties for an auction of oil exploration blocks in the country’s exclusive economic area, the agency’s chief executive said Tuesday.
Luís Prazeres told Portuguese news agency Lusa that the deadline for carrying out the auction depended on approval in a plenary session of the National Assembly of a legislative package, which has already been adjusted a the so-called “4th Parliamentary (Oil) Commission” which is expected to happen by the end of the week.
“We expect the auction to take place in November, but that will depend on approval of the legislative package,” said Prazeres.
From 7 to 10 June, ANP and the Sao Tome minister of Natural Resources, Cristina Dias, took part in the annual conference of the North American Association of Oil Geologists, in Denver, United States, where they presented the 14 blocks up for auction in Sao Tome’s offshore area.
According to Prazeres, interest has already been shown from companies already involved in oil exploration in the Sao Tome/Nigeria Joint Development Zone (JDZ) , such as China’s Sinopec and Addax.
If all deadlines are met, it is hoped that within two years, starting in November, it will be possible to determine whether or not there is oil available in the blocks of sufficient quality and quantity to warrant commercial exploration. (macauhub)
I Can't Believe This Only Gets Us A 2 Cent Increase...
Industry sources also say the Addax deal may pave the way for Sinopec to buy out Houston-based ERHC's significant holdings in the JDZ, where it has interests in six of the nine blocks awarded by the Joint Development Authority, the body set up to oversee exploration.
Sources don't rule out an acquistion of ERHC's equity.
Militancy: Shell's Daily Output Drops to 140,000bpd
By Ejiofor Alike with agency report, 07.01.2009
Nigeria’s precarious budgetary situation seems to be getting worse despite the rising prices of crude oil at the international market as Shell Petroleum Development Company of Nigeria (SPDC) said yesterday its crude oil production had further dropped to 140,000 barrels per day (bpd).
The current levels depict some 85.9 per cent drop from the 999,000 bpd SPDC Joint Venture produced in 2003.
SPDC, the largest private oil company in Nigeria, operates a joint venture in which the Nigerian National Petroleum Corporation (NNPC) holds 55 per cent, Shell 30 per cent, Total 10 per cent and Agip 5 per cent.
Shell’s Joint Venture operations have the capacity to produce an average of one million barrels of oil equivalent per day.
In 2008, production averaged over 850,000 barrels of oil equivalent, according to the company's website.
SPDC’s operations in the country cover two major oil export terminals at Bonny, Forcados - including 90 oilfields, 1,000 producing wells, 73 flow stations and eight gas plants.
With this latest drop in its output, the Royal Dutch Shell’s operation in the country is being largely sustained by offshore production from the giant Bonga deepwater field, which is currently producing in excess of 100,000 barrels per day, but far below its capacity.
The 225,000 bpd capacity Bonga field, which came on stream in 2005, is however, being operated under a Production Sharing Contract (PSC) with the NNPC by Shell Nigeria Exploration and Production Company (SNEPCO), the second arm of the Shell Group.
This drastic cut in oil output by Shell is seen as a dent on the 2009 budget, which projected a daily production of over two million barrels at a price of $45 per barrel - even though oil is currently being sold at about $70 per barrel.
Royal Dutch Shell’s Africa Regional Communications Director, Olav Ljosne, yesterday told Reuters that attacks by militants in recent days had cut oil output from facilities operated by SPDC joint venture to around 140,000 bpd.
Ljosne said: “In the past 10 days, we have had five attacks that have reduced our oil production to around 140,000 bpd.”
Before this latest drop, a top official of the company in Nigeria had told THISDAY that production from the company’s onshore business had dropped to 300,000 bpd, from nearly one million barrels per day, owing to the Niger Delta crisis.
He said: “Recent estimates suggest that Shell boosts production muscle of nearly one million barrels per day from its onshore business alone, but that the onshore production has lately dropped to 300,000 barrels daily production in the face of the insecurity and other challenges confronting the business.
“Armed attacks on facilities and kidnappings of oil company workers and even their families have sometimes resulted in fatalities and cast a dark cloud of insecurity over the Delta. Several of the large and competent contracting firms, which held lucrative civil works and project support contracts, have decided to pull out of the area in frustration.”
According to him, “Owing to the heightened insecurity in the region, several big and competent contracting firms, which held lucrative civil works and project support contracts, have decided to pull out of the area in frustration.”
THISDAY reported last Monday that owing to the increasing spate of attacks on its workers and installations by militants and other criminal gangs, SPDC had suspended its entire operations in the western Niger Delta.
Citing an industry source, Reuters also reported last Monday that there was virtually no crude oil production from the company’s facilities in the western Niger Delta.
At Last, China Makes Dramatic Entry into Nigerian Oil Sector
By Festus Akanbi, 06.28.2009
Last week’s decision of China’s largest petroleum refiner, Sinopec International Petroleum Corporation to acquire Addax Petroleum Cor-poration has been described as a victory of sort for the Asian country after years of unsuccessful bidding for a piece of action in the Nigerian oil industry.
Sinopec, an acronym for China National Petroleum Corporation is said to have paid $7.24 billion (N1.06 trillion) for Addax Petroleum after the Canadian-based outfit gave the nod to the Chinese giant's $46 a share takeover offer.
In 2006, CNOOC, one of China's largest state-run oil and gas producers, had agreed to buy a stake in a Nigerian offshore oil and gas field for $2.3bn (£1.3bn).
It also secured four oil drilling licences from the country.
But under the latest deal, Sinopec, a refiner formally known as China Petroleum & Chemical, would gain access to substantial reserves in Nigeria, some other parts of West Africa and the Middle East if the takeover of Addax is approved.
Analysts are, however, divided over the implications of the acquisition, which industry sources said is raising the fear of a possible staff rationalisation in the petroleum company.
Already, there were talks of a possible job loss among the Nigerian members of staff of Addax, but none of them was ready to be quoted yesterday.
A senior official of a multinational oil firm argued that through the acquisition, Sinopec was merely taking advantage of low crude prices and shrunken credit markets to snap up global assets that will help feed China’s enormous appetite for energy.
Chief Executive Officer, Financial Derivates Limited, Mr. Bismarck Rewane told THISDAY yesterday that the incursion of the Chinese firm in the Nigerian petroleum industry is bound to favour the Chinese and not Nigerian government.
“As far as I’m concerned, the acquisition is bound to benefit the Chinese firm that is acquiring Addax Petroleum because all they want is to expand their interests in the region,” he said.
However, Chief Executive, Biodun Adedipe and Associates, a Lagos-based economic analyst, Dr. Biodun Adedipe noted that the business deal can only be appreciated when details of the investment proposal are made public.
According to him, “It is possible that the Chinese investors have additional capital which they want to deplore to capture more grounds in other parts of the world, given the fact that they were not badly battered by the recent global economic crisis that caught other economies like America and parts of Europe napping. “I believe the Chinese has more capital to invest in Nigeria,” he said.
Shell Suspends Operations
•FG: Amnesty offer unconditional
By Ejiofor Alike in Lagos and Juliana Taiwo in Abuja, 06.29.2009
The threat by militants to cripple Nigeria’s oil export is gradually being actualised as Shell Petroleum Development Company of Nigeria Limited (SPDC) has suspended its entire operations in the Western Niger Delta, covering Delta State and parts of Bayelsa State, THISDAY has learnt.
With this development, only the company’s activities in the Eastern Niger Delta are sustaining its field operations in the country – but the Federal Government has moved to douse claims by militants that the amnesty offer to them was a “Greek Gift”.
The troubled oil major had in 2006 pulled out of the area but later launched a gradual re-entry programme, culminating in the re-opening of the giant 450,000 barrels per day Forcados export terminal.
The company also made remarkable progress in an effort to re-open 115,000 barrels per day EA facility and had also embarked on various community development projects.
But THISDAY gathered that owing to the renewed attacks on its facilities and workers especially in the last six months, Shell last week abandoned its re-entry programme and suspended its operations as well as all community development projects in the area.
A top official of the company told THISDAY at the weekend that the company hinged its decision to withdraw its staff and contractors from the Western Niger Delta on five major attacks it suffered in the area between January 7 and June 17, 2009.
He identified the five incidents to include an attack on Utorogu-UPS trunk line on January 7; the Amukpe-Rapele manifold attack of January 11; the Trans Escravos-Forcados River manifold attack of February 28; the Trans-Forcados pipeline (Chanomi Creek manifold) attack of June 12; and the militant attack on Trans Ramos pipeline on June 16.
He said: “These (suspension of operations) will impact on contractors; it will impact on Federal Government revenues and it will impact on our revenues.”
In a confidential document obtained by THISDAY, SPDC said that its operations in Nigeria and those of other international companies operating both onshore and offshore have continued to be impacted by the security situation in the Niger Delta.
Part of the document reads: “As always, the safety of our staff and contractors is our top priority. We are closely monitoring the situation and continue to take all necessary measures to ensure their safety. We have evacuated non-essential staff from key facilities in the western Niger Delta in order to ensure their safety, and regrettably, this means that our community development projects in the Western Niger Delta are slowing down.
“With increasing attacks in the field, it is very unsafe for staff and contractor personnel to maintain production and also implement community development projects. It is obvious that community development projects cannot continue in this atmosphere. This does not lessen our commitment to these projects, but we will not put our staff and contractors in unnecessary danger.
“We have made good progress in the recovery of production in the Western Niger Delta over the last one year but recent attacks by militants have resulted in substantial production losses and impacted progress on this project. The production from EA field (115,000barrels per day) remains shut since early 2006 and we have no firm date for resumption of operations. We are engaging the Delta State Government, contractors and communities. We remain committed to working with the government and local communities, but as always in everywhere we operate, the safety of our staff and contractors is the top priority of SPDC.
“We will continue to assess the security situation based on information at our disposal, and input from relevant authorities, law enforcement agencies, and local people. We will resume operations, only when careful considerations of security and safety of people indicate it is safe for us to do so.”
When THISDAY contacted Corporate Media Relations Manager and Shell’s spokesman, Mr. Tony Okonedo, over the issue, he said: “Indeed, I can confirm to you that we have had meetings with various stakeholders on the challenges we are experiencing on our operations. Many of those stakeholders, particularly communities, are sympathetic and have expressed their full support for us to return to full operations. But overall safety of our staff and contractors remain the top priority at SPDC.”
On the total volume of crude affected, Okonedo insisted that they do not provide daily production updates from the company’s operations.
Although Okonedo did not give the production figure, THISDAY gathered that apart from the 115,000 barrels per EA platform, the 450,000 barrels per day capacity Forcados Export Terminal is also affected.
Hope for early restoration of a substantial part of the company’s output in the western Niger Delta was dashed recently when it said that it had declared a force majeure on Forcados crude oil exports for the remaining part of June and July loadings.
Shell had on June 16 told its customers that crude shipments from Forcados would be disrupted for a fifth month in July as militants renewed its attacks on the company’s workers and infrastructure.
Force majeure is a legal clause that allows companies to miss export obligations owing to circumstances beyond their control.
According to the loading schedule, the initial force majeure declared on March 7, 2009 would have ended in April, while the oil major had planned to load up to eight cargoes of 950,000 barrels each in May, equivalent to around 245,000 barrels per day.
But the oil major later extended the force majeure following what its spokesman called a security situation in the Niger Delta, which necessitated a change to planned pipeline repairs.
He said: “We extended the Forcados force majeure to cover May. This extension followed a revision of the Trans-Escravos pipeline repair schedule due to the security situation in the field.”
Shell’s spokesman, Mr. Precious Okolobo, later said in a statement on June 16 that both June and July loadings had been deferred due to damage to Trans-Forcados Trunkline at Chanomi Creek in Delta State.
Being the first company to strike oil in commercial quantity in the Niger Delta with its attendant negative environmental impact, analysts say that both criminal and genuine agitators in the region now see Shell as the face of the “unwholesome policy of environmental degradation and resource exploitation”.
Shell, which for many years bestrode the Nigerian oil and gas industry like a colossus, and dictated to a large extent the pace of developments in the economy, has since lost its influential position as Nigeria’s number one oil producer to the United States oil major, ExxonMobil, the world’s largest publicly traded oil company.
Statistics show that from a record level of about 999,000 barrels per day of crude oil, nearly half of Nigeria’s total daily average production in 2003, Shell now accounts for less than 500,000 barrels per day of the country’s total production.
Yesterday, Federal Government moved to clarify its amnesty offer to militants in a move aimed at restoring peace to the troubled oil-producing region.
Media Coordinator of the Presidential Committee on Amnesty and Disarmament Dr. Timiebi Koripamo-Agary, said that contrary to a statement credited to the Movement for the Emancipation of the Niger Delta (MEND) and the Joint Revolutionary Council (JRC), an umbrella body for militants in the Niger Delta region, the imminent release of Henry Okah has no conditions attached to it.
She said instead, Okah, who is on trial in Jos, Plateau State, would be freed after diplomatic formalities had been concluded with the presidents of Angola and Equatorial Guinea.
In an email sent to the media, the groups had insisted that if the amnesty proclamation was directed at “freedom fighters” in which they belong, it would have addressed the root issues such as the genuine unconditional release of Okah and others.
Other issues that should have been addressed by the Federal Government, MEND said, include true federalism, federal character in political appointments, investigations of extra-judicial killings, a troop withdrawal time table, displaced civilians, reconstruction of their sacked villages, and their rehabilitation.
But Koripamo-Agary said: “The Federal Government has through the Amnesty offer demonstrated good faith in refusing to criminalise militants through derogatory terms.
“Militants and the Niger Delta youths know what is good for them and their communities and I believe they will make the right decisions for themselves and the progress and development of the Niger Delta and Nigeria.
“I wish to state that the offer of amnesty is unconditional and covers Okah who will be released as soon as the Federal Government concludes its consultations with the Governments of Angola and Equatorial Guinea. This is also in the best interest of Mr. Henry Okah.
“Mr. President has offered an olive branch which should be accepted to restore peace and development in the region which is of great concern to the militants and for which real steps are being taken by the government. The amnesty offer affords them the freedom and opportunity to engage in the dialogue that President Yar’Adua has promoted since he assumed office.
“I think aside the amnesty proclamation by Mr. President the fact that he is willing to personally receive any militant that surrenders demonstrates how willing and sincere the President is in ending this crisis.”
12 hours after Yar’Adua’s amnesty: Militants blow up Shell facility
Headlines Jun 27, 2009
By Emma Amaize
• Clark cautions JTF, militants
• Gbagi faults amnesty
WARRI— BARELY 12 hours after President Umaru Yar’Adua proclaimed amnesty for militants in the Niger_Delta on Thursday, the Movement for Emancipation of the Niger_Delta (MEND) blew up a well head (jacket B) of the Shell Afremo off_shore oil field in Delta State, claiming its action was in response to the razing down of the homes of some perceived militants at Agbeti community in the state by the Joint Task Force (JTF) on the Niger_Delta, earlier that day.
Before the militants struck, leader of the Ijaw ethnic nationality and First Republic Minister of Information, Chief Edwin Clark had in an interview with Saturday Vanguard welcomed the amnesty granted by President Yar’Adua and called on militants in the region to accept it.
He, however, called on the JTF not to do anything that would make the boys not to come out of the creeks voluntarily to accept amnesty already offered them by the Federal Government and surrender their arms accordingly, suggesting, particularly, that the security outfit should call off its Cordon and Search operation in the creeks of Gbaramatu kingdom.
However, former chairman of the Board of the Legal Aid Council of Nigeria and business mogul, Olorogun Kenneth Gbagi, yesterday, faulted the amnesty proclamation for militants by President Umaru Yar’Adua, saying it is structurally defective and is not a solution to the Niger_Delta crisis.
He said there was nothing tangible the Federal Government said it was going to do in the Niger_Delta beyond gracing the tube light to make unproductive and very undemocratic statements in the name of amnesty to militants.
According to him, “The problem is that our government is not straightforward in handing issues. We are a Republic, why should the Chevron Nigeria Limited (CNL), which is doing its business principally in Delta State, be taking the resources from the state to Lagos to spend. I am aware that for its Escravos_Gas_to_Liquid project, training is going on for some persons in a hotel, I think so, and it is spanning the next 10 years, why Lagos, is there no place the training can be done in Delta state, which is where the money is going to come from”.
Spokesman of MEND, Jomo Gbomo in an online statement, yesterday, confirming the attack on the Shell facility said, “ Nigerian military Joint Task Force began a punitive expedition on the Niger Delta oil bearing community of Agbeti in Delta state at about 2100Hrs, Thursday, June 25, 2009 some few hours after their Commander_in_Chief, President Umaru Yar’Adua made an amnesty proclamation”.
“Their mission was to seek the homes of perceived militants and raze them to the ground ahead of any amnesty.
“This action by the soldiers serves as an in_sight to what the region should expect in a one_sided balance of uncontrolled power from a military that lacks discipline and nurses hatred and seeks revenge for their humiliating defeat.
“In response, at about 2300 hrs the same day, Thursday, June 25, 2009, Piper Alpha continued its rampage on the Nigerian oil industry by blowing up the second remaining well head (jacket B) of the Shell Afremo off_shore oil fields in Delta state”, he stated.
Reacting to the amnesty package by Mr. President, Chief Clark said, “I listened to the broadcast with passion and gratitude, and was happy that it was granted unconditionally to those undergoing trial, including Henry Okah. It is a historic proclamation and is welcomed by all.
“It will help to usher peace, security and stability to the region. It will definitely create the forum for peaceful negotiation on problems of the Niger_Delta and also create the needed conducive environment for development of the region”, he asserted.
The elder statesman said the struggle by the boys was to draw attention to the degradation, injustice and underdevelopment of the region and since the point had been made, they should accept amnesty without much ado.
He said the repression of the freedom fighters had come to an end with the amnesty proclamation by President Yar’Adua and urged him to direct the JTF to stop creating situations that promote hostility between the task force and youths.
“Militants should not be scared away by the task force from coming out to accept amnesty. If the JTF continues with its current operation in the region, of course you know that the waterways of Delta state are still sealed, there is no free movement, people will think that the war is still on and will not come out to surrender their arms”, he said.
Chief Clark also appealed to oil bunkerers not to create scenes that would give the impression that Niger_Delta youths were still involved in criminal activities, saying the genuine struggle of the region has been contaminated by the oil thieves, who had made many to think that oil bunkering was synonymous with the agitation for development.
He appealed to President Yar’Adua to set up a powerful Judicial Commission of Inquiry to unravel those involved in oil bunkering and take necessary steps to stop them, noting that those engaged in the illegal act were powerful Nigerians from outside the Niger_Delta.
Recalling the African Pride saga in which some two Navy officers were named, he said what some youths in the region do would just be termed jerry_can bunkering and the real bunkerers should be unmasked
Yar'Adua Welcomes Militants' Acceptance Of Amnesty
* Yuguda's Return To PDP May Trigger Crisis Bauchi Party
From Isa Abdulsalami, Jos
PRESIDENT Umaru Yar'Adua yesterday welcomed the reported acceptance of his amnesty offer by four leading militants in the Niger Delta.
Although the President did not mention the militants, he said their embrace of the amnesty was a sign that peace could be achieved in the Niger Delta to enable the government to focus on the development of the region.
Representatives of Ateke Tom, Farah Dagogo, Soboma George and Ebikabowei Victor Ben (alia Boyloaf) issued a statement on Friday indicating their acceptance of the amnesty.
However, they said they would not surrender their weapons until had talks with the President to know the actual package of the amnesty and secure the assurances of the President that he was sincere with the gesture.
"We accept peace as encapsulated in the said offer of amnesty," they said in a joint statement.
"Depending on the outcome (of the meeting with Yar'Adua), the leaders will then announce when they will begin to hand over the arms and ammunitions in their possession to the Federal Government," the statement added.
Although Yar'Adua, who spoke in Bauchi at a ceremony to welcome back Governor Isa Yuguda back to the PDP, did not directly addressed the said talks the militants want to hold with him, he, nonetheless, said the amnesty was a blanket one for all militants.
He said his offer was part of the government determination to for peace and security that would enable the administration focus on the development of the country on the platform of his seven-point agenda.
He thanked the militants for a change of heart and urged others to emulate them for the overall peace and development of the Niger Delta.
On the decampment of Yuguda, the President said he did well to retrace his steps to the PDP.
At the ceremony at the IBB Square, Bauchi, President Yar'Adua stated that the party members were not surprised by the decision of the governor to return to the ruling PDP.
According to him, Yuguda was among the pioneer members of the party, who contributed immensely and assured that PDP would continue to ensure the sustenance of democracy in the country.
The President explained that he had no doubt in his mind that the governor would continue to provide new model of development in the state.
He also noted that the decision of the Speaker of the Bauchi State House of Assembly and 17 other members to join Yuguda in the PDP was part of good democracy and urged them to continue to work as a team.
He assured that his administration, the PDP leadership and members of the National Assembly would continue to transform the country and commended the reception organised for him and his entourage in the state.
But Bauchi State may be headed for another unending political crisis following the dissolution of the executive committee of the state chapter of the ruling PDP by the National Working Committee of the party.
This is the result of the return of Governor Yuguda to the party, as the National leader of the party yesterday in Bauchi formally received him.
While announcing the dissolution of the executive committee yesterday, the National Chairman of the PDP, Vincent Ogbulafor, said that the action became necessary for political balance in the state, considering the new political scenario.
Ogbulafor thereafter announced the constitution of a seven-man caretaker committee headed by Bukar Melle to run the affairs of the party until a fresh election is held for a new state executive committee within a short period.
He then directed members of the committee to report to the National Organising Secretary of the party for further directives and thanked the former leadership for a job well done, which led to the return of the governor.
Earlier on, chairman of the Eminent Personalities of the ceremony and governor of Gombe State, Muhammad Danjuma Goje, commended the decision of Isa Yuguda to return to the PDP after a few years outside of it.
Goje assured that his committee would not relent until the entire Northeast sub-region became a PDP zone. He called on Yuguda to ensure that he carries all the members of the party along so that he would be able to rule the state effectively.
Meanwhile, 17 ANPP members of the state House of Assembly, led by the Speaker, Babayo Garba Gamawa, had dumped to the party and teamed up with the Governor Yuguda in the PDP, a development that has made the House a PDP assembly.
Nigeria runs out of crude, refineries shut
* Asari-Dokubo regains freedom
* Amnesty may lapse after 60 days
From Madu Onuorah, Terhemba Daka (Abuja), Kelvin Ebiri (Port Harcourt), Willie Etim (Yenagoa), Taiwo Hassan and Blessing Eghagha (Lagos)
NOW the chicken has come to roost. The effects of the militancy in the Niger Delta and the Federal Government's clampdown on them have shaken the foundation of the oil and gas industry.
Yesterday, the government admitted that it had no more crude for its refineries to process for local consumption.
Consequently, the Warri and Port Harcourt refineries have been shut. The Kaduna Refinery, though functioning, has no crude to process because the Warri plant, which feeds it is shut due to a damage to major pipelines. The only stock, which was reserved, will be exhausted in the next 15 days, the Nigerian National Petroleum Corporation (NNPC) said yesterday.
The corporation's Group Managing Director (GMD), Mohammed Sanusi Barkindo, who painted the pathetic picture of the industry, said in the next 15 days, it will run out of crude for domestic consumption.
The corporation attributed the development to the crisis in the Niger Delta, which has escalated since the government scaled up a military offensive against the militants in the region.
In retaliation, the militants have intensified their sabotage of the activities of oil firms in the zone. In the last three weeks, the militants have struck four times, destroying facilities belonging to Shell, Chevron and Agip, which are joint venture partners with the government.
Apparently to keep his peace overtures to the militants on course, President Umaru Musa Yar'Adua yesterday ordered the immediate release of Asari-Dokubo, who was held in Lagos on Tuesday at the Murtala Muhammed International Airport, Lagos. The State Security Services (SSS), which detained Dokubo, promptly freed him. Asari-Dokubo yesterday in Lagos addressed a press conference, where he picked holes in amnesty being offered the militants by the President.
There were also speculations yesterday that the proposed amnesty would only last for 60 days, after which the government would close the door against recalcitrant armed men.
Barkindo raised the alarm on the depleting stock of crude during an interactive session with the House of Representatives Ad-hoc Committee on the Niger Delta crisis, chaired by Abdul Ningi.
Represented by his Assistant General Manager, Technical, Gabby Meheux, Barkindo said since the starting of the military operations in the region, there had been an escalation of militant activities targeting Shell, Chevron and Agip companies with attendant pipelines destruction.
He disclosed that as at last Friday, the average production output from its JVC stood at only 1.3 million barrels per day (bpd), adding that the Port Harcourt and the Warri refineries had both ran out of crude and were shut down as a result of the damages on the Nembe-Port Harcourt and Escravos-Chanomi pipelines.
According to him, the damage of the pipeline feeding Warri means no supplies to Kaduna refinery, hence the resort to the use of already stored crude, which is expected to run out in 15 days.
"Yes, what we currently have now will last for 15 days and after that it will finish. The consequence is that no refining would take place and no product would be available from Kaduna because the pipeline that would have supplied crude to Kaduna was vandalised and until it is repaired, we cannot pump crude," he explained.
Also, the Director, Chevron/NNPC Joint Venture, Supo Shadiya, said his company has incurred more losses than ever since the beginning of last May 13 military operations in the area.
He said there had been escalated attacks and sabotages on its facilities, adding that "since May 16 till date, we have lost one-third of our production capacity in West Africa and that is about 105, 000 bpd.
Shadiya said most of the pipelines exporting crude and gas from their off-shore to on-shore bases have been sabotaged, resulting to stoppage of crude transportation through them. He added that the firm's wells in MKB-5 and Apiteye-1 have been vandalised while fire had been raging in the latter since June 13 till date because the integrity of the well was affected.
"We have not been able to put off the fire because we cannot. The integrity of the well has been compromised and we don't have the facility to control it. So, we have brought in two well fire control specialists from abroad and they are still studying the fire to come up with a solution on how to put it off," he stated.
The representative of the Managing Director of Shell Petroleum Development Company (SPDC), Oriseh Agbarah, told the lawmakers that his company, which produces about 350, 000 bpd before the May military action now produces below 200, 000. "We are doing less than 30,000 from the whole of Delta region," he added.
The lawmakers took turns in blaming the NNPC for failing to collaborate with the National Emergency Management Agency (NEMA) on the provision of relief materials to the people in the crisis area.
Abdul Ningi particularly frowned at the non-commitment of NNPC and the multinationals to humanitarian issues in the area since the military operations started.
And as the nation awaits Yar'Adua's pronouncement on the amnesty package, the Movement for the Emancipation of the Niger Delta (MEND) has said its senior commanders, Farah Dagogo, Boyloaf and Soboma George did not participate in the talks with the Federal Government in Port Harcourt on Tuesday.
But the Presidential Committee on Peace and Conflict in the Niger Delta and the Niger Delta Technical Committee have expressed optimism that the President's address would address some of the core issues that necessitated militancy in the Niger Delta.
The Minister of Interior, Maj.-Gen. Godwin Abbe, the Inspector-General of Police, Mike Okiro, Assistant Inspector-General of Police for Zone 6, Joel Udah and the Rivers State Commissioner of Police, Bala Hassan, had on Tuesday met with lawyers allegedly representing MEND commanders, including the leader of the Niger Delta Vigilante, Ateke Tom, on the issue.
MEND spokesperson, Jomo Gbomo, said the group is waiting for what Yar'Adua has to offer in his expected address to the nation today before responding accordingly.
The Secretary of the Presidential Committee on Peace and Conflict, Kingsley Kuku, told The Guardian yesterday that the presidential address would pave way to lasting peace with the conditions that would be attached to the amnesty programme.
Kuku said the President is likely to mention some prominent names for amnesty, which should make the people of the region appreciate the attached goodwill.
Similarly, the Chairman of the Niger Delta Technical Committee, Ledum Mitee, told The Guardian that he expects Yar'Adua to come out with a holistic package that will not only address the issue of militancy and amnesty but also some of the fundamental issues that give excuse for militancy.
He said: "The Niger Delta problem forms the basis for arms struggle and so it has to be addressed. We must address the issue of proliferation of arms, re-integration without losing sight of the fact that we cannot create the impression that only those who have taken to arms can be rewarded. Justice is the issue."
Agency report had it yesterday that President Yar'Adua may propose a 60-day amnesty for the militants.
This move, according to a Presidency source, is aimed at enabling the government to work with those who are sincere about peace in the region.
"All militants, who respond positively to the amnesty proclamation should ... receive presidential pardon and thus become immune to criminal prosecution," the official said.
Asari-Dokubo has scoffed at the amnesty offer, saying "it is the people of Niger Delta that ought to offer amnesty to the Federal Government of Nigeria for years of occupation, environmental degradation" and other economic hardship that had brought "poverty to the entire Niger Delta."
At a press conference in Lagos immediately after he was released by the SSS, Asari-Dokubo said that the amnesty offer would only be accepted by those whose means of livelihood had been severely affected by the offensive of the Joint Task Force (JTF) in the Niger Delta.
"Those of us, who are committed to the genuine struggle for resource control, greater participation of our people in the oil industry, will never accept any form of amnesty from the Federal Republic of Nigeria. What we want is a Sovereign National Conference, a level-playing field. The fundamental issue to the "Ijaw nation in contemporary Nigeria is all about our sovereignty and nationhood," he said.
Ijaw Elders and Leaders Forum have also called on Yar'Adua to make public the supposed list of persons behind illegal bunkering in the region.
In a nine-point communique signed by elder statesman, Chief Edwin Clark and 11 others, the forum reiterated its earlier position that the continued presence of the military in the Niger Delta region serves more of their personal interests and a direct effect on the increased illegal bunkering activities.
The Ijaw leaders condemned the continued presence of the military "occupation" force in Ijaw land, particularly in the devastated Gbaramatu Kingdom and called for the immediate demilitarisation of the territory.
Addax Petroleum Seals Take-over Bid with Chinese Firm
By Ejiofor Alike, 06.25.2009
After weeks of speculations, Swiss-based oil and gas company, Addax Petroleum, has finally concluded a take-over bid with Sinopec International Petroleum Exploration and Production Corporation (SIPC) of China.
Korean National Oil Company (KNOC) had been competing with Sinopec for the take-over of Addax in a bid worth over $8 billion.
Addax yesterday announced $52.80 (Canadian dollar) per share cash offer by Sinopec -indicating that it had sealed the deal with the latter.
A statement made available to THISDAY yesterday said: “Addax Petroleum Corporation announced today that it has entered into a definitive agreement (the “Support Agreement”) with Sinopec International Petroleum Exploration and Production Corporation (SIPC) pursuant to which SIPC has agreed, subject to the terms of the support agreement, to make an offer to acquire all of the outstanding common shares of Addax Petroleum by way of a negotiated take-over bid for $52.80 per common share in cash.
“The offer represents a 47 per cent premium to the closing market price of the Addax Petroleum common shares on June 5, 2009, the day prior to Addax Petroleum's public announcement that it was in preliminary discussions with parties regarding a potential transaction.”
The support agreement, according to the statement, provides for, among other things, customary provisions relating to support of Addax Petroleum’s board of directors, non-solicitation and right to match covenants in favour of SIPC and the payment to SIPC of a termination fee of $300 million if the acquisition is not completed in certain specified circumstances.
The statement however, added that the obligation of SIPC to take up and pay for Addax Petroleum common shares is also subject to the receipt of certain approvals from the Chinese government.
It also said Addax Petroleum’s board of directors, after consulting with its financial and legal advisors, has unanimously agreed that the offer is fair to the holders of the company’s shares and is in the best interests of the company.
The board has therefore recommended acceptance of the offer by holders of Addax Petroleum common shares.
Commenting on the issue, Addax Petroleum’s President and Chief Executive Officer, Jean Claude Gandur, said: “We are pleased that Sinopec has recognised the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum.
The efforts and accomplishments that Addax Petroleum has achieved thus far will be built on through increased investment in the business and acceleration of development and exploration plans. While Addax Petroleum will cease to be a publicly traded company, we look forward to continuing our business in the countries in which we operate for the benefit of all stakeholders.”
Formal documentation relating to the take-over bid is expected to be mailed by SIPC by early July 2009, while the offer will be open for acceptance for a period of not less than 35 days.
Addax, which is quoted in both the London and Canadian Stock Exchanges has market capitalisation of $6.1 billion.
Founded in 1994, the company has oil and gas projects in Nigeria, Gabon, Cameroon, and exploration licenses in the Kurdistan region of Iraq.
Sinopec intends to use the acquisition to make an inroad into Nigeria’s oil and gas sector, where over 70 per cent of Addax operations are concentrated.
Sinopec already has a participating interest in Oil Mining Licence (OML) 64 operated by the Nigerian National Petroleum Corporation (NNPC) in Delta State.
Addax had earlier acknowledged in a statement that it had held “preliminary discussions” with third parties that had shown interest in transaction with the company.
It said: “Addax Petroleum Corporation has been made aware of press speculation involving the Corporation and the interest in it by third parties with respect to a possible acquisition or business combination.
"In response to that press speculation, Addax Petroleum acknowledges that it has held preliminary discussions with third parties expressing an interest in a potential transaction with the Corporation. While such preliminary discussions are ongoing, no assurance can be given that a transaction will be completed. Addax Petroleum does not intend to make further comment unless or until there is a transaction to announce.”
Nice Going, 21 Gun Salute Rambus. eom
I've Heard Professional Traders Call The 1st Hour Of Trading "Amateur Hour" And They Stay Out Of It. By the looks of some of our charts, seems like good advice.
Nigeria’s Oil Production Drops by 1.3m bpd
•Shell confirms attack on pipeline
By Chika Amanze-Nwachuku in Lagos and Ahamefula Ogbu in Port Harcourt, 06.19.2009
Nigeria has recorded further reduction in its crude oil production as Shell Petroleum Development Company (SPDC) yesterday shut in some chunks of its oil production owing to last Wednesday’s attack on its Trans Ramos pipeline in Aghoro- 2 in Bayelsa State.
The escalation of violence in the Niger Delta region in the last three weeks, industry sources said, may have reduced Nigeria’s crude oil production to about 1.3 million barrels per day (mbpd).
Prior to the renewed attacks on oil facilities in the region, the country was said to have recorded a shut in of over 1mbpd, bringing the country’s output to only about 1.6mbpd.
Statistics released by the Department of Petroleum Resources (DPR) about a fortnight ago showed that production deferment due to the crisis in the oil-rich region was over 1mbpd.
The statistics indicated that both the reserves and the daily output are on the decline due to the restiveness in the Niger Delta, raising fears that it may deter the country from achieving its set targets of 4mbpd and reserves of 40 billion barrels by 2010.
The damaged Aghoro-2 pipeline is said to be connected to the Tunu, Opukusu and Ugbotubu flow stations, which feed into the Forcados export terminal.
The SPDC yesterday explained that the company had to shut in some oil production to avoid damage to the environment.
“The SPDC can confirm the Trans Ramos pipeline at Aghoro-2 community in Bayelsa State was attacked last night (Wednesday night). Some oil production has been shut in to avoid potential environmental impact,” its spokesman, Precious Okolobo, said.
The Movement for the Emancipation of the Niger Delta (MEND), which claimed responsibility for the incident, had in the last three weeks launched several attacks on the facilities of United States oil major, Chevron, a development which resulted in the shut in of unspecified quantities of the company’s oil production.
Speaking on the crisis, which has worsened by the day notwithstanding the offer of amnesty by the Federal Government, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mohammed Sanusi Barkindo, observed that the slowdown in investment in oil and gas production, insecurity in the oil-producing Niger Delta and OPEC quotas are some of the key challenges facing the industry.
The SPDC had on Tuesday declared a force majeure on Forcados crude oil exports for the remaining part of June and July, following the damage to its Trans Forcados Trunkline.
An initial force majeure declared by the company on March 7, would have ended in April while the oil major had planned to load up to eight cargoes of 950,000 barrels each in May, equivalent to around 245,000 barrels per day.
But the company had to extend the force majeure due to security concerns in the region.
However, following its inability to complete the repair of the damaged facility, the company on Tuesday, deferred both June and July loadings due to damage to the Trans-Forcados Trunkline at Chanomi Creek in Delta State.
Forcados crude is one of Nigeria’s benchmark crude oil grades that are highly prized by foreign refiners due to its relatively low sulfur content.
MEND said in a statement it released late Wednesday night that it had blown up the Trans Ramos pipeline facility in its avowed “Hurricane Alpha Piper” with which it said it would ground Nigeria’s oil production and export to zero level.
Okolobo confirmed the attack had been reported to all relevant government agencies.
The Joint Task Force (JTF) spokesman, Colonel Rabe Abubakar, said they had not received a report of any such attack and warned MEND which he called propagandist to desist from making bogus claims as its time was up.
MEND, in an email from its spokesman, Gbomo Jomo, said it dedicated the attack to the two brothers it alleged were slain extra judicially by soldiers and captured on tape which the JTF has denied.
“At about 2030 Hrs today, Wednesday, June 17, 2009, fighters from the Movement for the Emancipation of the Niger Delta (MEND) in furtherance of Hurricane Piper Alpha (our campaign to cripple the entire oil and gas export of the Federal Republic of Nigeria), destroyed with high explosives a major crude oil trunk line in Bayelsa State belonging to Shell.
“This delivery line which supplies the Forcados export terminal takes feed from the Tunu, Opukusu and Ugbotubu flow stations. The point of attack is the Agge/Odimodi axis.
“Piper Alpha veered off course to show its displeasure at the manner the government has reacted to the extra judicial killings of two brothers by the JTF that was caught on tape. This attack is dedicated to the brothers.
“Shell should take a cue from Chevron and vacate the Niger Delta region to avoid collateral damage to their investment and death to staff. We do not intend to waste time taking hostages. Hurricanes are no respecters on anyone,” Jomo said.
In his response, Abubakar said: “We have not received any report from the company until such is received, we will not be able to comment on such claim. But all we can say is that all their claims are crying foul for cheap popularity and this is criminal. JTF is not competing with anybody or group.
“We are only here to carry out our assignment for the protection of all including MEND themselves. The general public is once again reminded that the activities of this group is unpatriotic, unholy and deserves to be condemned by all. However, the JTF would continue to monitor their activities and situation closely, as they adage goes ‘that all days for the thief and one day for the owner.’”