Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Militants Destroy 3 Chevron Facilities
From Ahamefula Ogbu in Port Harcourt, 06.14.2009
Militants, under the auspices of Movement for the Emancipation of the Niger Delta (MEND), have destroyed more facilities in Delta State belonging to American oil giant, Chevron whose Otunana flow Station caught fire last week.
However, the Joint Task Force Spokesman in the Niger Delta, Colonel Rabe Abubakar in response to an inquiry by THISDAY said there was a loud bang in the facilities MEND claimed to have destroyed but could not confirm what happened until experts ascertain the situation.
“There was a report of heavy sounds in these oil facilities, however, the company management are working round the clock to ascertain the cause, unless that is done, we can’t categorically confirm because we are not technicians,” Abubakar said in response to a text message.
The MEND in a three line statement from their official e-mail address and signed by its Spokesman, Gbomo Jomo claimed to have destroyed Makaraba oil wells 3 and 5 together with its trunk and gas lifts at 0005 hrs which means yesterday. They also claimed to have earlier on Friday destroyed Otunana well 1 with its trunk and gas lifts. The Movement for the Emancipation of the Niger Delta carried out the recent attacks against Chevron in Delta state:
“The Makaraba oil well 3 & 5 and it's Trunk line and Gas lifts were blown up at about 0005 Hrs today, Saturday, June 13, 2009.
“Earlier at about 22.10 Hrs on Friday, June 12, 2009, the Otunana oil well 1 and its Gas lift and Trunk lines were also destroyed”, Jomo said.
emdyal; Posted by: balance_builder Date: Saturday, June 13, 2009 6:27:09 PM
In reply to: None Post # of 4490 [Send a link via email]
Dots.....
On May 13, 2009 Addax told its shareholders to expect an acquisition to be announced in 2 to 3 weeks. We have yet to hear of said acquisition. Keep this dot in the back of your mind.
There have been numerous articles (Thanks Rambus and others) posted in regards to the Chinese having an interest in Addax.
Addax responds to the numerous articles. Take a literal look at what they stated:
"Addax Petroleum Responds To Press Speculation
Calgary, Alberta, June 8th, 2009 – Addax Petroleum Corporation (“Addax Petroleum” or the “Corporation”) (TSX: AXC and LSE: AXC) 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."
http://www.addaxpetroleum.com/press_room/150
I continue to find the wording interesting. No mention of takeover....or buyout....rather "possible acquistion or business combination". Acquisition with? Recall how I started out this post.
Next step: Recall this paragraph from this 6-12-09 article:
"SinoPec also confirmed that it was negotiating an acquisition with Addax, a Canadian oil exploration company. That transaction is expected to top $ 8 billion, although the two sides have yet to reach agreement on a deal. Addax, which is listed in Toronto and London, had production volumes of about 1.365 million barrels / day last year. At the end of last year, the company boasted reserves of 537 million barrels and total assets of $5.317 billion. The company’s Nigerian oil assets have drawn particular interest from China's oil companies in recent years."
http://www.chinastakes.com/story.aspx?id=1283
An acquisition WITH Addax. Not acquiring Addax but rather an acquisition WITH Addax. (Refer again to the first line of this post)Could the negotiating be in conjunction with the acquisition spoken of in the first line of this post...i.e. that Addax is now overdue to announce? Again, where did Addax come up with "business combination"???? I didn't read a single article that referenced a "business combination". I don't think that line was added without good reason.
One step further.....odd the drilling has yet to be announced. Even ERHC is expecting drilling in B-2 in July....which is now a short two weeks away. Is the Sedco 702 going to drill the Lemba prospect in block 3? If Addax has the DP and Addax is the new rumored operator of B-3....why not use Addax's drillship (DP)?
ERHC told us we could expect "significant announcements" from the operator of B-3 shortly. We know the news can't be drilling since they already told us it would be spudded before the end of Q3. So, what could possible be of "substantial and positive developments in JDZ Block 3'????
Check out this line by ERHC:
"This spring has been a very busy period in the JDZ filled with blockbuster developments. We have been required by contract and regulation to keep a lot of the detailed information on evolving plans in the JDZ confidential. Only the operator and the Joint Development Authority (JDA) are allowed to make initial announcements on such matters."
http://www.erhc.com/en/rel/178/
Evolving plans being kept confidential?? Blockbuster developments???
The dots indicate rig sharing and MORE. The blocks are full of multiple prospects which overlap block boundries. The easist way to explore and produce oil from these blocks would be for all (except APC IMHO) involved co's to share a specified interest. Each co would be assigned a percentage of the overall take. Yes, if true, that would mean ERHC would own a percentage of B-1 alongside current ownership.
Complicated to determine percentage of ownership? Yes, but thank the heavens we have Netherland and Sewell and their NSAI reports. This certainly would benefit those involved.
But wait....SNP only has a interest in B-2??? That would give them a very small percentage in the consortium. How can that be fixed.....as they are the most thirsty? How about adding some cash.....to the tune of $8 billion.
Didn't I recently read that SNP was looking at several co's for possible takeover? Holy cow....$8 billion would buy a gulf full of properties. What a HUGE HUGE HUGE consortium that could be.....but wait, didn't Richkan mention this possiblity already? I almost believe such a move could grow a co (or consortium) 5, 6, or even 7 times BEFORE JDZ oil is produced.
Any co's out there that would make for good synergies? I sure can.
Wait....could there be more? This is SNP. What about the other consortium members? Might they step in too? Wow, could we become an acquisition vehicle for a huge consortium?
So there you have the dots. Addax talks of business combinations....not of selling itself to anybody. B-3 the first deal we hear about? Will the cat claw its way out of the bag near term? (recall, we're overdue for an Addax acquisition announcement).
"Growth through acquisitions is well advised. We are creating the subsidiary structures necessary to keep those acquisitions separate from the JDZ assets. While this has always been the intention, we hope that specifying it clearly here will allay the fears of those shareholders who oppose acquisitions because they do not want the JDZ assets to be thereby ‘diluted’ or ‘devalued.’"
http://www.erhc.com/en/rel/178/
"Well advised". I would think so if we can gain small percentages whilst the big boys (strategic partners) are doing the work and are on OUR TEAM....er....consortium.
I like 15%. Too big?
When would we hear if these big black dots connect? Peter N. told us,
"We expect significant announcements from the operator of the Block shortly."
Seems to match up quite well with JCG's " within 2 or 3 weeks" comment that was made on 5-13-09.
Yep...look at it from a literal view...what THEY (Addax) said in their PR.
All, of course, are dots.....nothing more....nothing less. Something to think about. I like 15%. Any other takers?
40% Increase This Week. ;)
FWIW 2 Oilphant Posts...
exciting ERHC week!
AND
BB: Complete Buyout
When Addax Bought Exxon's 40%, We Got Nothing. When Addax got the extra 9%, we got nothing. If Addax DOES get Anadarko's 51% are we expecting any benefit besides earlier drilling?
Posted by: balance_builder Date: Saturday, June 06, 2009 12:02:59 PM
In reply to: None Post # of 4254 [Send a link via email]
From page 11 of the June 09 Addax presentation:
2008 & Onshore Nigeria 2009 Planned Wells
Joint Development Zone
2009 : 3 - 4 wells
• Bomu (Block 2)
• Lemba (Block 3)
• Kina (Block 4)
• To be determined (Block 4)
http://www.addaxpetroleum.com/_media/200906-InvestorPresentation.pdf
/////////////////////////////////////////////////////////////
From page 12 of the June 09 Addax presentation:
H2 2009
Deepwater:
• JDZ2 (Bomu)
• JDZ3 (Lemba)
• JDZ4 (Kina)
• JDZ4 (to be determined)
http://www.addaxpetroleum.com/_media/200906-InvestorPresentation.pdf
/////////////////////////////////////////////////////////////
Note that Addax with the DeepWater Pathfinder WILL be drilling B-3.
Note that all 4 wells are scheduled for 2009 H2.
Recall that the DP is leased for at least 120 days to drill the 4 above noted prospects.
Conclusion: Though not yet announced (thank you Markgovals for your excellent and early lead) Addax has already announced publically in the above presentation that they WILL be drilling B-3.
Conclusion: Though not yet announced (thank you again Markgovals and Barry Morgan for your early on calls of earlier than broadcasted drilling timeframe. For all wells to be drilled in 2009 (Addax presentation) July drilling will be necessary (120 days plus 1 week for relocating and setting up for next drill site).
Next stop IMHO....producing oil properties in return for full carries and percentages of the EEZ and possibly 5,6 and 9.
Lets hope ERHE has better plans for managing the company then they did with storing our cash monies.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38465064
Sao Tome and Principe: Reconstruction of runway at Principe airport begins in September [ 2009-06-03 ]
Sao Tome, Sao Tome and Principe, 3 June – Reconstruction work on the runway at Principe airport is due to begin next September, the Dutch contractor, Roumbount Suarbornt said Tuesday in Sao Tome.
The contractor, which signed an agreement with the Sao Tome government in May 2008 for the modernisation of the airport, assured Portuguese news agency Lusa that next week work would begin on remodelling the terminal building.
“We promised to start work in May of this year and next week we will start work on the terminal building and in September or October we will begin work on the runway,” said the Dutch contractor.
On Monday the President of the regional government, José Cardoso Cassandra said that work was a year behind schedule and that an ultimatum had been given to Roumbount Suarbornt to start the work this month,
The President of the regional government also said that the conditions of the Principe airport runway no longer allowed take off and landing of aircraft as it could put life at risk.
On Wednesday of last week a tyre burst on an aircraft of airline Africa Connection during a landing manoeuvre at Principe Island airport, the runway of which has a lot of pot holes and weeds.
The work will be carried out by STP-Airport Management, which, according to the contractor, “will transform this airport into a well-equipped facility, with all the conditions of a regional airport and capable of receiving aircraft with a capacity of up to 50 passengers.” (macauhub)
N’ Delta: FG Recovers Incriminating Documents
•JTF foils attack on Shell facility, arrests 2 militants
From Ike Abonyi in Abuja and Ahamefula Ogbu in Port Harcourt, 06.02.2009
There are strong indications that the Federal Government may make public names of top politicians, personalities and organisations including banks allegedly backing militants in the Niger Delta region.
THISDAY learnt yesterday in Abuja that at present, the Presidency is sifting through incriminating documents recovered by the Joint Task Force (JTF) during the raid on the dreaded Camp 5 belonging to wanted militant leader, Government Ekmukpolo alias Tompolo.
It was learnt that names of some of the militants’ political backers, minutes of meetings held and account details of bunkering money paid to prominent chiefs and politicians are now being scrutinised by security operatives.
Names and addresses of foreign contacts, names of Nigerian middlemen, documents of arms purchase, dates and details of attacks on oil facilities and those behind them as well as insiders within the oil companies are said to be contained in the documents.
Also contained in the documents, THISDAY gathered, are names of countries and details of how stolen crude oil are disposed and how some of the proceeds are shared as well as the local beneficiaries.
The documents also showed details of meetings held between militants and some notable politicians and the minutes of what transpired at the meetings.
Also being perused are some unnamed bank accounts in which top government officials in Niger Delta paid “protection money” to the militants.
Attempts to acquire gun-ships, bombs, and rocket-launchers from an East European country were also uncovered by the documents.
The offensive against the militants launched about three weeks ago by JTF has been the most virulent since the Niger Delta crisis turned violent.
However, there have been discordant tunes from some Niger Delta leaders over the military attack.
While some are worried at the JTF’s pounding of the militants and the refugee crisis being thrown up others argue that it’s the only opportunity to stop the continued criminality in the region.
The military high command, has, however, said the action will continue until the missing soldiers are found.
Meanwhile, the JTF yesterday averted what could have been a major vandalism of Shell Petroleum Development Company (SPDC) facility at Awoba, Rivers State by suspected militants who were spotted on routine patrol by troops deployed to guard the facility.
This is as controversy trailed the promised release of a Briton, Mr. Mathew Maguire, who has been in custody of the Movement for the Emancipation of Niger Delta (MEND) for nearly one year as his promised release today to coincide with his birthday has run into a hitch.
A statement from the Joint Media Campaign Centre of JTF said the force spotted the vandals before they could carry out their nefarious activity and took to their heels on sighting the troops.
JTF Spokesman, Col. Rabe Abubakar, in a statement made available to THISDAY claimed that the military had also arrested two suspected militants, Mr. John Seikeke and Mr. Boloma Atokudo, following a tip-off by some community people at Torugbene, Benesede in Bayelsa State.
The duo were allegedly arrested while in possession of an AK47 and one round of 7.62mm.
Abubakar further stated that JTF had commenced full investigations into their level of complicity in the ongoing hostilities in the region.
He said: “The Joint Task Force, Operation Restore Hope, has arrested two men suspected to be militants, following a tip-off about 7 am, 31 May 2009, at Torugbene Community in Benesede, Bayelsa State while conducting a Cordon and Search Operation.
“Mr. John Seikeke and Mr. Boloma Atokudu were arrested in possession of an AK 47 with one round of 7.62mm ammunition with registration number XQ2354. Investigation is still going on and the suspects are assisting the JTF with information on how they came about the firearm and ammunition.
“In another related development, an attempted pipeline vandalisation by men suspected to be militants was averted by JTF troops at Awoba Community of Rivers State.
The troops who were deployed at the Shell Platform were on their normal routine check of the area when the vandals were discovered. They ran away on sighting men of the task force and no arrest was made, the general situation of the area is being monitored closely, to avoid similar occurrences in the future.”
Attempts to confirm the foiled attack from SPDC Spokesman, Precious Okolobo, met a brick wall as he said he was not permitted to speak on security matters.
The expected release of Maguire, according latest inquiries by THISDAY, may no longer hold as scheduled as MEND Spokesman Gbomo Jomo claimed that they had intelligence that JTF troops wanted to ambush the boys that would go and hand over Maguire after the handover at an agreed drop off point.
MEND had earlier said in a statement that, “Today (yesterday), June 1, is Mathew Maguire's birthday. He has spent close to 9 months in captivity and we hoped to release him as his birthday gift.
“Due to safety concerns, we wish to alert the British High Commission of our intentions so they can inform the government to put a leash on the overzealous JTF who may plan to ambush the fighters along with Mathew to score cheap publicity that he was rescued by them.
“His company may begin the process of receiving him tonight while we make arrangements for a safe drop off zone”.
However, when THISDAY chatted with Gbomo online and inquired whether the Briton had been released, he replied, “No he has not. There have been some security hitches”.
Prodded further on why the change of mind, he said, “The JTF hoped to ambush the guys after they would have dropped him off. We got intelligence report.”
Why Obama's visit to Ghana is not that significant
(States Visit Is Because Of Oil. Also States Sao Tome Is An Oil Producing Country. R.M.)
There will be intense excitement when US president Barack Obama and his wife Michelle touchdown in Ghana in July for a two day official visit to the country.
Much will be made about the significance of Obama's first official visit to Afrika as US president, especially the fact that he chose to make Ghana his first destination.
Let us critically analyze this and why in my opinion Obama's visit to Ghana is really about looking after US interests in Ghana particularly the oil.
Let us be quite candid about this, Obama's first visit as US president to Afrika was always going to attract intense media attention not least for the fact that he has an Afrikan father, and for that matter many thought that Kenya would have been his first destination to visit as US president.
The White House's decision to pick Ghana as Obama's first trip to Afrika was deliberate as it was strategic. These folks at the white house do not do things for nothing - they are very meticulous in their preparation and strategic thinking.
It was no accident that Ghana was chosen as Obama's first official trip to Afrika. Why? Well Ghana rightly or wrongly is seen as a beacon of Afrikan democracy; Secondly Ghana was the first 'sub-Saharan' Afrikan country to gain political independence and was at the forefront of the Pan-Afrikan struggle against Western imperialism and domination.
Thirdly Ghana was at the centre of the infamous Trans-Atlantic enslavement of Afrikans and since Obama's visit co-incides with the annual PANAFEST celebrations it is appropriate that Obama come to Ghana.
It has been widely acknowledged and accepted by historians that the majority of Afrikan-Americans are of Ghanaian heritage and specifically belong to the Akan people.
During the 15-16 centuries Ghana was the nerve centre of the Trans-Atlantic enslavement of Afrikan people and this is emphasized by the numerous slave forts that dot the Ghanaian coastline - in which many millions of Ghanaians and Africans were taken to the Americas and the Caribbean.
So this reflects the socio-cultural aspect of Obama's visit where he is expected to visit a fort or two to symbolize this important chapter of Ghanaian and American history.
However the main reason why Obama is in Ghana is to promote and protect US interests in the country.
As I said in an earlier article Obama's victory will mean nothing to Afrika unless US foreign policy towards Afrika changes drastically.
This is the main contention of Obama's visit. Is he coming to enforce US policy in Afrika by securing US interests first or he is going to open a new chapter in US/Afrika policy by being sympathetic to Afrika's cause.
I have serious doubts because Obama was selected, nominated and elected by the US corporate elite who are counting on Obama to safeguard their interests not least oil.
Before we get onto the issue of oil, let us concentrate for a moment on AFRICOM. AFRICOM is an initiative or policy that was conceived by the neo-cons in the Bush administration that knew as far back as 2002 that Afrika particularly West Afrika would become strategically important for the US government.
Why? - This is because the West Afrika sub-region has about 10 countries that produce oil. Some of these countries include Nigeria, Sao Tome, Mauritania, Ghana and Equatorial Guinea.
Since the US is the world's biggest user of oil and with demand for oil in it's normally 'safe haven' of the 'middle-east' (North-East Afrika), becoming very precarious, the Bush administration decided that West Afrika provided a safe and reliable source of oil.
However given what has happened in the Niger Delta it thought that precautions had to be taken so the US conceived of AFRICOM which is a military initiative to safeguard American corporate interests in the region.
AFRICOM is already a reality operating from its base in Germany after its original plan to have its headquarters in Afrika was met with unease.
Despite this AFRICOM is a reality and there are already US military basis in Afrika and US military engaging in military exercises with many Afrikan countries including Ghana
KOSMOS Energy that has been at the forefront of oil exploration in Ghana has huge commercial interests in Ghana and the wider Afrikan continent.
So oil is a main component of the AFRICOM initiative and Obama is in Ghana to safeguard America's corporate interests and NOT the interests of Ghana.
Another point to consider on Obama's visit to Ghana is US-Ghana trade. An example of this imbalance in US-Ghana trade relations is that Ghana once a thriving producer of rice is now through trade polices an importer of rice, most of which comes from the US. By the way the rice lobby in the United States is a huge lobby with enormous clout.
Ghana's once thriving rice industry used to employ thousands of Ghanaians but now due to the importation of rice, many Ghanaians have lost their jobs and in the process giving those jobs to foreigners.
Another aspect of the trade relationship between Ghana and the United States that needs attention is the AGOA accord. AGOA is the African Growth and Opportunities Act. AGOA is an initiative by the US government to give Afrikan countries and their producers the opportunity to have access to the lucrative US market pending certain conditionalities.
Despite many Afrikan countries meeting these conditionalities many have not reaped any benefit of the AGOA act. On the other hand many American companies like Kosmos Energy have enjoyed huge benefits in Afrikan markets.
So while Obama may be viewed in some quarters as a breath of fresh air and even a saviour to Afrika, time will tell if Obama will engage Afrika in a fair and equitable manner.
Author: Dr. Kwame Osei
Source: Public Agenda
Niger Delta crisis: EU presidents summon Yar’Adua
Sunday, 31 May 2009 00:00
•Nigerians in UK protest to Brown
Dotun Oladipo, London
The presidents of European Union (EU) countries are to meet with President Umaru Yar’Adua over the crisis in the Niger Delta, which has resulted in... the use of military force by the Federal Government.
Yar’Adua has been invited to a meeting with the presidents of the EU between June 8 and 9, 2009 in the United Kingdom.
A member of the European Parliament, Jean Lambert, told a gathering of Nigerians in London, the United Kingdom on Friday, that the meeting with Yar’Adua had become necessary owing to the crisis in the Niger Delta and the critical role of Nigeria in the scheme of things in Africa.
Lambert said that it was obvious things were not working well in Nigeria and that the EU could not afford to watch the country slide into anarchy.
She said that the EU was interested in Nigeria because of its status as the 12th largest oil producing country, adding that if Nigeria becomes unstable, the rest of the world would be at the mercy of Russia and the Middle East for the supply of oil.
She said this was not a good development for a world that is in need of peaceful co-existence, adding that Nigeria was too critical to the survival of the rest of the world to be ignored.
She said that the EU was going to look into the allegations against oil producing giant, Shell, that it engages in human rights violation in Nigeria, adding, “There cannot be two standards for the operation of any company.
“The standard it maintains in its home country is what it must maintain anywhere else in the world where it is doing business.”
Lambert said the contributions of Nigeria to peacekeeping operations, especially in Africa, also makes it mandatory for the EU to intervene in the current face-off in the Niger Delta.
She said that the establishment of a Joint Africa/EU strategy Committee was for the promotion of human rights, good governance and other virtues in African countries and that the EU would not watch the situation in Nigeria degenerate.
She said that the Czech President, Vaclav Klaus, who is also the Chairman of the EU, has described Nigeria as the most important nation in Africa.
She added, “As such, it is the view of the EU that anything that will disrupt the peace in Nigeria must be tackled.”
In a related development, Nigerians living in the United Kingdom have concluded arrangements to protest the ongoing military operations in the Niger Delta aimed at flushing out militants.
The protest, scheduled for Monday, is to take place at the 10, Downing Street office of the British Prime Minister, Mr. Gordon Brown, and the Nigerian High Commission at 9, Northumberland Avenue, London.
The protesters also plan to submit a petition to Brown on the issue.
According to the organisers of the protest, operating under the aegis of the Niger Delta Solidarity Campaign, it is meant to draw the attention of the world to the invasion and bombing of several Niger Delta communities by the Nigerian military.
According to one of the flyers for the protest, something urgent must be taken to compel the government to stop the continued onslaught in the Niger Delta as it would not resolve the contentious issues but rather heighten the tension in the area.
The organisers said, “These atrocious acts of brutality have led to an estimated death toll of over 1,000 people and more than 20,000 displaced people.
“Several towns and villages have been completely razed and many others are under occupation by the military.
“These military attacks are still continuing today.
“Come and join your fellow Niger Delta brothers and sisters and raise your voice against these massacres in our land.”
The group has also launched a campaign against Shell, soliciting support in pronouncing the company guilty of human rights abuses in the Niger Delta.
One of the leaders of the planned protest, Inimo Sami Ama, said that the reason for the protest was to call the attention of the government to the fact that the invasion and bombing of the communities in the Niger Delta would not resolve the problem.
Ama said that the solution still remains dialogue as the use of military force can only make the people more angry.
He described the Niger Delta situation as tragic, adding, “Only peaceful solution can resolve it.
“The use of military force cannot resolve it.”
N. Delta: Militants Give Condition for Accepting FG.s Amnesty
By Collins Edomaruse in Lagos and Omon-Julius Onabu in Warri with agency reports, 05.31.2009
Movement for the Emancipation of the Niger Delta (MEND) said at the weekend it would consider the federal government's offer of amnesty only if the movement's leader, Mr. Henry Okah, was released from detention.
However, THISDAY checks, reveal that many of the militant leaders have been making overtures to government that they were ready to lay down their arms but that they do not trust political leaders from the area.
One of MEND's commanders, Farah Dagogo, told Dow Jones the movement could also hold off further attacks on the oil industry if the companies can embark on mass employment of capable people from their host communities.
According to Dagogo, President Umaru Yar'Adua says 'we want to give amnesty. They should start with (Henry Okah). At least we will know they are sincere."
His remarks come as the federal government, which is losing at least half a million barrels a day in crude production from attacks on oil installations by the militants, has stepped up a two-pronged strategy of attacking militant camps as well as renewing an amnesty offer.
The government's offensive has focused on Tom Pollo, a MEND leader in Delta State. But the government has said it may extend it eastward to Rivers State, where Dagogo is based.
The militant leader, who commands one of the three largest MEND factions, said "they can attack any where, we have no problem about that. We are not afraid of the Joint Task Force (JTF)," in the Niger Delta.
Dagogo said he had been a student preparing to study medicine but decided instead to join Mujahid Dokubo-Asari when he set up MEND's militant predecessor, the Niger Delta People's Volunteer Force.
When Dokubo-Asari was jailed, his lieutenants, including Dagogo, participated in the creation of MEND, launching attacks of unprecedented intensity on oil companies. Dagogo acknowledged, for example, that his group had attacked oil facilities in September in "a joint operation" with other MEND factions, following an army attack in the community where he hails from, Tombia.
The attacks on pipelines, plants and platforms operated by Chevron Corp. (CVX) and Royal Dutch Shell PLC (RDSA) have halted up to 115,000 barrels a day of oil production - nearly 6 percent of the country's production
But Dagogo said "we want to stop our attacks" on oil facilities. "We are telling them (the foreign oil companies) to come back," he added. Foreign oil companies have reduced their operations onshore in the Delta or have frozen new projects because of the unrest. "The reason why we attacked them is that they don't employ anybody where they work," Dagogo said.
Though oil companies have tried to employ more community contractors in recent years, many villagers still feel excluded from employment opportunities, leading to resentment against the companies. "If they give the youth some of the skills they need" and "proper [economic] development, I can guarantee there will be no problems for them," Dagogo said.
For now, "maybe we can stop (attacks on oil infrastructure) for a while and see what happens," he said.
Meanwhile, Joint Task Force (JTF) in the Niger-Delta yesterday alerted the nation to what it called clandestine design by some Nigerian intellectuals abroad, who are sympathetic to militant groups in the region, to launch an international campaign against the security agency in order to discredit it before the international community.
According to Colonel Rabe Abubakar, �The purported plan has it that the illegal oil bunkering, which has been going on for a very long time, was jointly perpetrated by the support of the commanders for gratification thus making them exceptionally rich with properties and foreign accounts.
�The aim of this campaign, he said, is to tarnish the image of JTF and distract it from its task in the Niger-Delta. �The JTF therefore wishes to inform this group and any other group that it would not be intimidated and no amount of smear campaigns, as being hatched by this group, would deter it from carrying out its national duties.
�The JTF wants to advise that, instead of providing immoral and unpatriotic support and instigation of their kith-and-kin back home, which will subsequently lead them to self-destruct while they live in comfort abroad, it would rather be more noble and commendable for them to channel their intellect and foreign connections in Diaspora to bringing peace, security and development to their homeland.
�The JTF wants to appeal to the larger society, including international community, to disregard the planned smear campaign and continue to work with us in order to get rid of all forms of criminalities and make the region and our great country a haven for our future generations.�
The JTF embarked on a full-scale war against militants about two weeks ago at Gbaramatu Kingdom, Delta State, following killing of no fewer than 10 military officers by the militants after an ambush near Camp 5 in Oporoza.
The military vowed that no amount of pleadings by Nigerians would stop the bombardment and that the fight, which has displaced several thousands of people, would not be stopped until the major military objective of destroying the militants is achieved. The JTF said that one of the militants' leaders, Chief Government Ekpemupolo, a.k.a Tom Polo, has been declared wanted over allegation of war crimes.
"Tom Polo, give yourself up. He must be held responsible for all the attacks on Nigerian soldiers. When I resumed here, the first thing I did was to extend the olive branch to Tom Polo, appealing to him to give up militancy, but he did not take it. The JTF has declared Tom Polo wanted. I appeal to Nigerians wherever they see him to report to JTF. We will bring all those responsible for the missing soldiers to justice," the military said.
Finish off Niger Delta militants, Arewa charges Yar’Adua - As policemen kill Ken, Tompolo’s aide - 6,000 oil workers lose job to crisis
From Hassan Ibrahim, Donald Ojogo, Sylvester Idowu and Kunle Oderemi - 28.05.2009
THE Arewa Consultative Forum (ACF) has condemned the activities of militants in the Niger Delta region and declared support for the Umaru Yar’Adua-led Federal Government in its resolve to stamp out militancy and ensure peace in the region.
This came on a day Ken Niweigha, a militant leader in Odi, Bayelsa State and an aide to the wanted Government Ekpemukpolo, also known as Tompolo, was killed by the police.
The ACF at the end of its National Working Committee (NWC) meeting in Kaduna on Wednesday presided over by its chairman, Major General I.B.M. Haruna (rtd), and Colonel Musa Shehu (rtd), observed in a communique signed by the Publicity Secretary, Anthony Sani, the increase in insurgent activities of the militants and the corresponding response from the Joint Task Force (JTF).
The body said nobody with a head, with a heart and with patriotic courage could withhold support for the JTF and the Federal Government over the current campaign against the militants for the purpose of bringing the situation under control.
“This is because no responsible government can afford to fold its hands and watch a few misguided elements of its citizens hold the nation, including their own people/communities, to ransom,” part of the communique read.
They said the agitation in the Niger Delta region for a fair deal in the sharing of oil revenue had since attracted attention of the whole nation and the international community, hence the various responses directed at mitigating the effects of environmental degradation occasioned by oil exploration and exploitation in the Niger Delta region.
“Some of these well-intentioned responses include 13 per cent derivation; establishment of both the Niger Delta Development Commission (NDDC) and the Ministry of Niger Delta Affairs, preferential patronage by PTDF; skewed employment/scholarships and projects in favour of Niger Delta indigenes and communities by oil companies; and specialised aid directed by foreign donor agencies to Niger Delta region, the northern elders forum listed.
“It is important to note that such efforts have failed to persuade the militants and some of their people to see the best of intentions in the actions of the rest of the country. As a result, the militant activities, rather than ebb, have surged by way of destruction of oil facilities and installations, unbridled kidnappings, murders and hostage-taking of innocent people of the region and oil workers, for purpose of ransom,” they noted.
Arewa lamented that the will of the armed forces was being challenged with their members killed in the course of their national assignment, adding that in such circumstances, the government could not reasonably be expected to shirk its responsibility of maintaining law and order.
Meanwhile, Tompolo’s aide, Ken Niweigha, was shot dead yesterday, barely 24 hours after he was apprehended by the police for allegedly harbouring the wanted militant in the community.
Security source told Nigerian Tribune in Warri that the militant warlord was killed in an encounter between policemen and his boys who attempted to free him from his captors.
It was learnt that Niweigha was taking detectives to his hideout and his armoury when his boys ambushed them and fired sporadically but were repelled by the security agents.
“They were going to his hideout for investigations and locate his armoury based on information extracted from him after his arrest last Tuesday but unknown to the policemen, Ken had organised his boys for his rescue.
“The policemen, however, rose to the occasion and engaged the militants and in the ensuing gun battle, Ken was shot several times when he allegedly attempted to escape from the policemen in the heat of the gunfire battle exchange,” Nigerian Tribune source informed.
It will be recalled that Ken allegedly killed 12 policemen including an Assistant Commissioner of Police in Odi, Bayelsa State about 10 years ago.
He allegedly almost killed the present Commissioner of Police, Mr. Onouha Uka Udeka on Tuesday when he led a team of policemen to effect his arrest on the information that he was harbouring Tompolo and some of his boys in Odi.
Speaking with newsmen in Yenagoa, the police boss explained that Niweigha had promised to surrender all arms and ammunition in his possession to the police, but while leading a team of police officers to his hideout in Odi, his gang opened fire on the policemen, resulting in an exchange of bullets.
“This was about midnight when his men went ahead of us to remove the cache of weapons in his hideout and ambushed us a second time same day,” he explained, adding that an army uniform was discovered when his men finally got to Niweigha’s ammunition dump.
He said a team of policemen was still keeping vigil at Odi in case of any reprisal attack, especially as Ken’s men returned and shot indiscrimimately a second time.
“So if they want to come we are ready,” the police commissioner said. In another development, more than 6,000 members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have lost their jobs as a result of the escalation in the crisis in the Niger Delta.
Besides, no fewer than two members have lost their lives and the whereabouts of four others, abducted by militants, is still unknown. The president of the association, Comrade Babatunde Ogun, who spoke with the Nigerian Tribune in Lagos, said the worsening security situation in the area had unleashed untold hardships on hundreds of thousands of oil and gas workers and their dependants.
He said the major oil companies and others in the service industry were being forced to close down and evacuate key staff members, while others had left the country due to the mindless activities of the militants.
As a way out of the quagmire, he said the current onslaught by the Joint Task Force against the militants should be complemented by cooperation from the international community on further measures aimed at tightening the noose on militancy.
The cooperation, he said, should be by way of the international community blocking all sources of weapons to the militant groups behind the security situation in the region.
Nigeria is believed to be losing about N8.7 billion oil revenue daily, because to the violence in the region.
Ogun stated that the international community could further assist Nigeria in arresting the insurgency by stopping patronage for crude oil stolen from Nigeria.
Acknowledging the criminal neglect of the area by past administrations, he said the governors that served in the region between 1999 and 2007 failed to redress the situation in spite of the huge allocations that they got.
He also accused most of the oil majors operating in the area of shortchanging Nigeria by undermining the Federal Government policy on technology transfer and employment of expatriates.
Ogun explained that the companies had been having their ways on such issues because the National Assembly was not performing its oversight functions regarding the oil and gas industry.
Oil Hits $63 as OPEC Meets Today
•NNPC: Militant attack didn’t affect Warri refinery
By Chika Amanze-Nwachuku and Ejiofor Alike with agency report, 05.28.2009
Crude oil prices hit a six-month high above $63 a barrel yesterday ahead of today’s meeting of the Organisation of Petroleum Exporting Countries (OPEC).
This is coming as top producer Saudi Arabia said the global economy had strengthened enough to cope with oil at $75 to $80 a barrel.
It was also some cherry news from the Nigerian National Petroleum Corporation (NNPC) yesterday as it denied claims by the Movement for the Emancipation of the Niger Delta (MEND) that its attack on the Chanomi Creek pipeline had disrupted the operation of the 125,000 barrels per day Warri Refinery and Petrochemical Company (WRPC).
Speaking against the backdrop of expectations that the OPEC may leave outputs at their current levels at today’s meet, Saudi Oil Minister Ali Naimi said oil prices would continue to rise, recovering from lows near $32 at the turn of the year.
“The price rise is a function of optimism that better things are coming in the future. We see offshoots of recovery,” he added.
“Demand is picking up, especially in Asia”, Naimi told reporters in Vienna, Austria.
The minister said OPEC did not need to change its output policy, which has already seen the group agree to remove 4.2 million barrels per day of oil from the market in a bid to shore up prices battered by recession.
United States crude oil for July delivery rose to touch $63.45 a barrel, the highest level since mid-November, before easing slightly to trade up 64 cents at $63.09 a barrel by 1340GMT.
London Brent crude rose 79 cents to $62.03 a barrel.
Oil prices gained more than one per cent on Tuesday, bolstered by a jump in US consumer confidence.
Signs of a modest recovery in Japanese exports further boosted expectations the world is slowly emerging from its worst financial crisis in decades.
“We're not really seeing a strong recovery yet, but I think OPEC are implying they don't see oil demand falling any further,” VTB Capital analyst Andrey Kryuchenkov told Reuters. “Everyone talks about green shoots but we're not completely out of the woods - to see a real price rally we'll need to see a larger pick-up in demand.”
Global oil demand is seen falling at the fastest rate since 1981 this year, with the International Energy Agency (IEA), adviser to 28 industrialised nations, predicting a 2.56 million barrel fall.
Crude inventories have risen to around 62 days of forward cover, but expectations of a slight drawdown in US crude inventories are lending support to prices, analysts said.
A preliminary Reuters poll ahead of US weekly inventory data showed forecasts for a 1.1 million drawdown in crude stocks and a 1.8 million decline in gasoline stocks last week.
Data from the American Petroleum Institute (API) has been delayed by one day until yesterday, while US Energy Information Administration oil inventory data will be released today due to the US Memorial Day holiday at the start of this week.
Prices also shot above the key technical level of the 200-day moving average yesterday, for the first time in more than eight months, adding to some analysts’ convictions that oil has found a new price floor at $60 and may rise toward $65.
Meanwhile, the Group General Manager, Group Public Affairs Division of NNPC, Dr. Levi Ajuonuma, told THISDAY yesterday that Warri Refinery was intact.
Ajuonuma said the Warri Refinery has sufficient crude oil supplies to maintain its current output despite a recent militant attack on the Chanomi Creek Pipeline, the main feeder pipelines that supply crude oil to the refinery.
He said: “Warri is working. Warri is receiving crude. We can’t disclose how we do it, but all we know is that Warri is currently working at 70 per cent capacity. Port Harcourt Refinery is also working gradually but it has power problem.”
Though the country has four refineries capable of refining 445,000 barrels of crude oil per day, only two refineries - Warri and Port Harcourt - are currently in operation.
MEND attacked the Chanomi Creek pipeline on Sunday in its first major strike since the Joint Task Force (JTF) launched sea, land and aerial offensive two weeks ago on militants’ locations around Warri.
The militants also attacked Chevron’s 100,000 barrels per day of crude oil production.
Warri Refinery was shut down for two years in February 2006 when its main feeder pipeline was blown up by the militants.
However, the plant reopened 15 months ago after the Federal Government awarded a contract of $52 million for the repair of the Chanomi Creek Pipeline, the main feeder pipeline that supplies crude oil to Warri and Kaduna Refineries.
The contract for the repair of the pipeline was awarded to a company owned by an indigene of Niger Delta as part of the strategies put in place by the government to resolve the protracted crisis in the oil-rich region.
The initial value of the contract during the administration of former President Olusegun Obasanjo was estimated at about $100 million, but after a renegotiation with the firm by the present administration, the amount was brought down to $52 million.
The inability of the refineries to work last year cost the country an estimated $4 billion in importation of about 5 million tonnes of petroleum products.
OPEC plans to hold output steady, targets $75 oil price
ORGANIZATION of the Petroleum Exporting Countries (OPEC) ministers set their sights on oil at $75 to $80 as they readied for talks in Vienna on Thursday, but were expected to hold output policy steady and rely instead on economic recovery to drive the market higher.
Saudi Arabian Oil Minister Ali al-Naimi said yesterday that the world could now cope with oil at $75 to $80 a barrel, the price range the kingdom considers high enough to sustain energy investment for the long term.
He said it could be achieved before the end of this year.
Previously, Saudi Arabia signalled it could live with oil around $50 to help nurse the economy back to health.
Oil has already climbed from a low of $32.40 last December to six-month highs above $63 a barrel yesterday.
"The price rise is a function of optimism better things are coming in the future," Naimi told reporters.
"We see offshoots of recovery," he added.
"There are a lot of positives in what I say because I am seeing a recovery.
"Naimi said Thursday's meeting of the OPEC did not need to change the group's output policy, but he stopped short of saying there was already a consensus among the group's 12 members.
On his arrival in Vienna on Wednesday, United Arab Emirates Oil Minister Mohamed al-Hamli said only the oil market was over-supplied and the meeting would "look at the numbers".
Most of the other OPEC ministers have yet to arrive.
Several members have already said they want prices to be higher than current levels and Saudi Arabia has historically been a price moderate.
Venezuela's President, Hugo Chavez, said on Tuesday oil prices should be heading towards $75 to $80 and Iranian President Mahmoud Ahmadinejad has said a price of $80 to $90 was appropriate.
When OPEC last met in March, oil was below $50.
Citing the need to restore the economy, which in turn would boost oil demand, the group then called only for better adherence to existing output curbs, rather than making new ones.
Since September last year, OPEC has lowered output by 4.2 million barrels per day (bpd) and has implemented around 80 per cent of the promised cuts.
The historically high compliance has helped to drive the oil price rally, which has also been sustained by expectations across financial markets that the worst is over economically.
Some analysts have said there is a lack of hard evidence behind the market rises and that strength could be temporary, although others have agreed with Naimi the oil market is beginning to show signs of fundamental strength.
Asked whether $75 a barrel was achievable, David Kirsch, director of Market Intelligence Services at PFC Energy in Washington said "anything is possible".
"One of the key issues is whether or not $75 is sustainable from the perspective of fundamentals or whether it would hurt a global economic recovery," he added.
Provided a strengthening economy boosts energy demand, Naimi said oil inventories, which have risen to worryingly high levels as far as the producer group is concerned, would shrink back to the equivalent of 52-54 days of forward cover.
The International Energy Agency, which represents consumer countries, said in a report this month oil inventories in developed countries had risen to the equivalent of 62.4 days of forward cover, the most since 1993.
It has taken a very bearish view of demand for this year- predicting a drop in fuel consumption of 2.56 million bpd compared with last year- deeper than the fall of 1.57 million bpd forecast by OPEC's economists in their latest report.
But the IEA has also argued that because cheaper oil has stymied investment any demand recovery could drive prices back to the record levels of nearly $150 hit last July.
Naimi too has said that is a risk and the challenge was to keep prices in a stable range, fair to producers, but that does not destroy demand.
"That is the biggest challenge," he said when asked how to contain any price rise.
"It's very difficult. There are too many players in the market. It's impossible with so many players."
All out war' likely in Nigeria's oil-rich delta
(GIN)—In a further escalation of tensions between Nigeria’s oil-producing villages and the government, the Movement for the Emancipation of the Niger Delta (Mend) has threatened “all out war” against the Nigerian military.
The declaration followed an attack by navy gunboats in largely civilian areas leaving as many as 30,000 civilians displaced without adequate food or water. Aid agencies have been barred from the region.
“The military has declared total war on our people,” said Edwin Clark, a local ethnic leader. “Mend calls upon all men of fighting age to enlist for our freedom,” the armed group said to the media.
The state-owned Nigerian National Petroleum Corp. has joint-venture partnerships with oil companies including Shell and Chevron in the Niger Delta. Shell is scheduled to stand trial in New York for its alleged role in the 1995 state execution of the Nigerian writer and activist Ken Saro-Wiwa and eight other activists.
For years, militant groups have fought for fair distribution of oil wealth to local communities in the impoverished region.
Oilphant & BB (From JDZ Board) (Yesterday)
BB: SEO says bye to Chrome and ERHC
--------------------------------------------
Oilphant...are you indicating somebody came in during the 12'th hour to takeover both Chrome and ERHC?
Chinese or Addax IYO?
Addax mentioned they hoped to announce an acquisition in two or three weeks time during their last CC (which was about 2 weeks ago now).
Will the $$$ be right for shareholders? $3.75???
I expected to see the growth strategy as step 1.
------------------------------------------
SEO saying goodbye to ERHC could also mean giving up controlling interest.
#1 on the whiteboard was "portfolio exchange". First the asset exchange that will give ERHC full carries and at the same time new assets in a "diverse geographical area". Producing assets.
We also know that the whiteboard clearly stated Addax will take a percentage of ERHC.
These two events are the next on our dinner plate IMHO. Then drilling.....again IMHO.
How much better would the market perceive ERHC if it had real cash flow? Producing properties? Growable producing properties?
--------------------------------------------
Here's one last thought before preparing the fowl for the grill:
Addax told us that any acquisitions they make will be done with/on paper. Addax followed up in their very last CC by telling us they hoped to be making an acquisition announcement in two to three weeks (it'll be 2 weeks tomorrow?).
ERHC told us in their very last PR in part,
"We are strengthening relationships with our technical partners and have begun to explore future opportunities to work together as the start of drilling in the Joint Development Zone Blocks approaches,” said Chief Operating Officer and Acting Chief Executive Officer Peter Ntephe."
http://www.erhc.com/en/rel/176/
Please take special note of the wording "future opportunities to work together".
Now note this comment made via Dan Keeney and posted to the board 4 days ago:
"There are lots of exciting things happening in the near term and trust that the market will reflect the progress the Company and its technical partners are making."
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38033422
DK is very conservative in his replies to investors (proven to be properly so over the years). The above line is hardly conservative as he tells us the news WILL move the sp.
1. Growth strategy to involve current partner and provide producing assets from a diverse geographical area (hmmm...where did the recent DJ article state they were seeking a partner for?)
2. Buy in for control to follow portfolio exchange (as per the whiteboard).
3. Big boy comes in and takes it all after proven is proven.
All IMHO.
N’Delta Bombardment to Continue, Says JTF
•Task force attacks another militants’ camp •Released Filipinos hospitalised
From Onyebuchi Ezigbo in Abuja, Omon-Julius Onabu in Warri and Segun James in Yenagoa, 05.25.2009
As the military onslaught against militants in the Niger Delta region enters its 13th day, the Joint Task Force (JTF) said yesterday that there would be no let-off in the fight in the creeks until its men abducted were rescued.
Local and international rights groups and opinion leaders have been campaigning for the military to halt its bombardment of the communities because of growing humanitarian crisis.
But the Maritime Component Commander of the task force, Commodore Azubuike Ajuonu, who spoke while receiving a delegation from the National Emergency Management Agency (NEMA), said the military would not shift its position in its search and rescue operation until the missing officers and men of the Nigerian Army abducted by the militants about two weeks ago were located.
Twelve soldiers are still said to be missing in the wake of hostilities between the militants and JTF.
In the meantime, in continuation of the crackdown on militants, JTF on Sunday attacked the Opoye Camp belonging to one of Tompolo's lieutenants, Kingsley Opoye, just as the force also secured the release of the last three Filipino hostages kidnapped at the beginning of the military attack on militants 13 days ago.
The rescued Filipinos are, however, undergoing medical treatment at an undisclosed hospital at present.
Also, JTF said the onslaught on militants in the Niger Delta had been extended to Rivers State where “JTF troops carried out a dawn raid on suspected militants’ hideout at Abonnema town in Rivers State”.
JTF spokesman, Col. Rabe Abubakar, in a statement said: “After fierce exchange of gunfire with the militants, one militant, Mr. Nana Sele, suspected to be their leader, was shot dead during the operations and others fled with gun shot wounds.”
NEMA’s Head of Public Relations, Mr. Yushau Shuaib, in a statement last night quoted the JTF Maritime Component Commander as saying the army would flush out the criminal gangs responsible for the attack on military personnel and also put an end to frequent harassment of innocent people in the Niger Delta.
Ajuonu said it was regrettable that the Nigerian soldiers who risk their lives to protect the nation’s territorial integrity were been hunted by criminal gangs in the Niger Delta just because the army had been tolerating them all these while.
He said the excessive criminality of the youths was embarrassing and the blackmail, extortion and killing by militants must come to an end in order for peace and progress to reign in the region.
While appreciating the efforts of NEMA in reaching the displaced with relief materials, Ajuonu told the community leaders who accompanied NEMA on the visit to talk to their youths to produce the abducted military personnel.
"That is the only condition to ease the blockage in the riverine areas described as dens of hijacking, kidnapping, sea pirates, robbery and merciless killing of innocent Nigerians and foreigners," he said.
NEMA Director-General AVM Mohammed Audu-Bida (rtd) and his team had visited the internally displaced people’s camp at a primary school in Ogbe-Ijoh community in Warri South-west council where refugees thrown up by the recent crisis are kept.
While supervising the distribution of relief materials brought in by trucks at the camp established by the agency, Audu-Bida said government would ensure the items reached the distressed especially women, children and the elderly through collaboration with the security personnel, state and local government officials.
He said NEMA’s concern was not just about distributing the materials but ensuring that the displaced people were secured and reunited with their families as soon possible.
Some of the displaced especially women had pleaded with the NEMA boss to intervene in ensuring that the JTF team allow them access to their communities.
They said that inasmuch as NEMA’s gesture of relief materials and provision of social amenities in the camp was a welcome development, “home will always be home and better than life in the camp or other hideouts.”
Items said to have been distributed included rice, beans, garri, salt, mattresses, wax material, children wears, gallons of cooking oil, rubber mats, buckets, cooking utensils, disinfectants, and construction of emergency toilets.
The Director-General said the agency had to close a primary school in one of the area to establish a camp for the displaced, hungry and sick people and may open up more camps if necessary in areas worst affected by the crisis.
Audu-Bida also sought the assistance of the task force in the areas of supplies of relief materials to displaced people in various communities and ensured the safety of their lives and properties.
In the attack on Opoye Camp, which is in the vicinity of the war-ravaged Benikrukru, the Ijaw community destroyed on Saturday, the soldiers found the place empty as it had been abandoned before their arrival.
However, the soldiers went on to bombard and destroy the camp.
The camp is also in the vicinity of the Abiteye Flow station, belonging to American oil giant, Chevron Nigeria Limited, which has been attacked relentlessly in recent times by militants, a situation which forced the company to abandon the multimillion dollar facility due to continuous harassment.
But the people of Benikrukru have petitioned the United Nations over the continued attack on their community by JTF.
In a petition to UN Secretary-General Ban Ki-moon signed by the Executive Chairman of Benikrukru community, Mr. Joseph Wuruyai, the community urged UN to call the Federal Government to order by ordering the stoppage of the “genocidal campaign” against Ijaw communities, saying Benikrukru does not have any problem with the military JTF or the militants.
They wondered why the onslaught between JTF and militants should lead to death and untold hardship in their community.
The people urged the UN to prevail on the Federal Gover-nment to halt the massacre of the Ijaw while also calling for the institution of a probe panel to look into the remote and immediate cause of hostilities between JTF and militants.
But JTF Commander, Maj-Gen Sarkin Bello, had said the army was not waging any war against the Ijaw but was only out against those taking arms against the Federal Government.
On the rescue of the last three Filipinos, the JTF spokesman said during the cordon and search operation conducted by the troops of JTF, Operation Restore Hope, at Oporoza community in Gbaramatu Kingdom, Warri South-West Local Government Area of Delta State the three Filipinos were rescued.
They are Enrico Arelano, Romeo Naclicar and Napoleon Emphasis.
The security outfit, had so far rescued a total of 17 foreigners including Filipinos, Ukrainians and four Nigerians, who were held hostage by militants from Camp 5 and other neighbouring camps.
Abubakar said: “It is pertinent to note that in all the communities searched by the JTF so far, large quantities of arms and ammunition, as well as hostages kidnapped by the militants, were discovered. Military hardware as well as nine hostages were also discovered in Camp 5, two from Okerenkoko while three were rescued from Oporoza in the early morning of today.
“With the successes recorded so far in the course of this operation, the Task Force wants to debunk the allegation that its troops are targeting some individuals, or certain ethnic groups.
“We conducted the operations in the most professional manner and the security outfit is only focusing on the areas where there are militants and their hideout where hostages were being kept. It is not a random operation and people should commend us for what we have done so far.”
In a related development, JTF has acceded to the plea by the Delta State Government for a relaxation of the closure of some waterways in the state in order to allow unhindered passage of vital supplies to communities as well as offshore oil and gas workers.
According to the Chairman of the 12-member committee set up for the rehabilitation of people displaced by the military campaign in the area, Mr. Kingsley Otuaro, only wooden boats or canoes would be permitted passage by JTF.
Otuaro was speaking while receiving foodstuff, toiletries, beddings and other essential materials provided by the NEMA at Ogbe-Ijoh, the headquarters of Warri South-west Local Government Area, on Saturday.
The task force said it secured the release of 14 hostages from various communities in the Gbaramatu Kingdom of Ijaw, but militant sources maintained that they (militants) voluntarily released the hostages in the interest of peace in the area following persistent entreaties particularly from well-meaning Ijaw leaders.
However, the President of the Federated Niger Delta Ijaw Communities (FNDIC), Chief Bello Oboko, said the release of the hostages in Oporoza “without battle” was a positive sign.
US Senator Asks Obama to Intervene in N’Delta Crisis
By Collins Edomaruse, 05.24.2009
Chairman of Foreign Relations Committee of the United States Senate, Senator Russ Feingold, has asked President Barak Obama to intervene in the ongoing military action in the Niger Delta.
Feingold in a statement, issued in Washington yesterday said “I urge the Obama administration to think creatively about how we can work multilaterally to help end this long standing crisis in the Niger Delta.
“Some military actions may be justified to stop the criminality, kidnappings and killings by militants in the Niger Delta, but such measures should be accompanied by a larger political strategy.”
“Genuine peacemaking will require not only legitimate political negotiations but a convincing case for transforming the illicit war economy into one of peace,” he stated.
Feingold lamented the killings of thousands of civilians since the Joint Military Task Force (JTF) began its operation in Gbaramatu Kingdom in Warri, Delta State, about a week ago, to fish out militants taking refuge in parts of the Kingdom. He said in order to achieve a lasting peace in the region, federal government “needs to undertake a serious and sustained initiative to address the underdevelopment of the region.”
Feingold is an independent progressive reputed for the courage of his strong convictions. In 2005, he was the first senator to call for U.S. withdrawal from Iraq. On March 13, 2006 and again on July 22, 2007, Sen. Feingold boldly called for Congressional censure of former President George Bush. He was also the lone Senator who voted against the USA Patriot Act, despite pressure for a unanimous vote.
Meanwhile, US Assistant Secretary of State for African Affairs, Mr. Johnnie Carson, has described Nigeria as the US’ most important strategic partner in the African continent. He disclosed this at the meeting with members of the Nigerian Governors' Forum led by the chairman, Dr. Bukola Saraki, in Washington, last Wednesday. The Governors are in the US on a working visit. The team include Alhaji Isa Yuguda of Bauchi State, Godswill Akpabio of Akwa Ibom and Comrade Adams Oshiomhole of Edo State.
Carson expressed the need to strengthen the relationship between Nigeria and the US, while promising to push the process that will further deepen the US-Nigeria relationship. He commended the Governors for their patriotic initiative and assured them of his commitment to their cause. He said his doors were open to the Governors Forum at all times.
Carson also described the Governors’ visit as a new dawn in US-Nigeria relationship, "This is a new dawn in the relationship between our two countries. We have never had it so good," he said. He noted that the Governors were the first foreign visitors he was receiving since he resumed office on Monday, last week.
Responding, Saraki explained the mission and the vision of the Governors’ forum which he said was to foster good governance in the country, adding that the visit to the US was to help foster good governance and best practices on bilateral relations.
The Governors also visited the Capitol Hill, America's legislative power house where they had a meeting with Black America's most powerful congresswoman, Mrs. Sheila Jackson-Lee.
Welcoming the Governors to her office, Jackson-Lee observed that the visit was the first by any delegation of Governors from Africa to any congress person on the Capitol Hill. She said she would be leading a delegation of the congress to “West African sub-region very soon”.
She commended Nigeria for her efforts in global peace-keeping, especially in Dafur, Liberia and Sierra-Leone.
In his remarks, Saraki reiterated the vision and the mission of the Governors’ forum. He said the forum would be interacting with its counterpart, the National Governors Association, NGA in the US. He noted that the forum would also be the first in Africa to do so.
Also speaking during the meeting, Yuguda said Nigeria sees US as a friend to take her and the entire Sub-Saharan Africa to greater heights so that focus could shift from disease, hunger and AIDS to more progressive issues. He also talked at length on issues of perception of Nigeria in the US and urged the congresswoman to help correct the negative perception.
Akpabio said there is need for the US to encourage her agencies to invest in Nigeria as the Asian countries are already making an in-road into the Nigerian economy.
Niger Delta: Illegal Refineries Destroyed
•Aondoakaa explains why JTF struck
05.20.2009
From Funso Muraina, Onyebuchi Ezigbo in Abuja Ahamefula Ogbu in Port Harcourt, and Segun James in Yenagoa
Illegal refineries said to be used by Niger Delta militants as kidnapping rings have been destroyed by the Joint Task Force (JTF) just as two passport speed boats belonging to a notorious militant, Kingsley Opuye, have been seized in a gun duel with the gangsters.
Also yesterday, another militant group claimed it launched an attack on men of the JTF at Okerenkoko, the last bastion of Ijaw resistance in the western Niger Delta. The reprisal on soldiers who are on surveillance duty in the town, THISDAY learnt, followed Sunday’s invasion of the town by the soldiers and the dislodging of the militants.
But the attack by the dare-devil group which allegedly fled during the Sunday incident was said to have prompted the military brass at Warri to order another round of bombardment of the Okerenkoko town.
And in Abuja, Minister of Justice Michael Kaase Aondoakaa (SAN) said the position of the Federal Government was to resolve the problem in the Niger- Delta amicably.
“No country will expose its armed forces to unwarranted attack. in the fresh onslaught in the region, militants have killed a major, a Lieutenant Colonel, and five rank and files. No responsible country will sit quietly and watch an unwarranted attack launched on its armed forces without any provocation,” he said.
Constitutional lawyer, Professor Ben Nwabueze, however, alleged that former President Olusegun Obasanjo and the Supreme Court were causing the unrest in the Niger Delta, saying if the normal procedures had been followed in dealing with the situation, it would not have deteriorated to this absmal level.
Both Aondoakaa and Nwabueze made the remark at the 30th anniversary of Nigerian Institute of Advanced Legal Studies in a lecture titled: "Judicialism and good governance in Africa," saying the court contributed to the region's problem by upholding the former president's claim.
Spokesman of JTF, Col. Rabe Abubakar, said the recovered boat abandoned by the militants who bowed to the superior fire power of JTF during an incident at Chevron flow station had been towed to their base.
In a statement yesterday, Abubakar said the illegal refineries were spotted and destroyed at Oginibo community in Ughelli South Local Government area of Delta State, adding that JTF’s action followed useful information by natives who were against the criminal activities by the hoodlums.
“The security outfit destroyed the illegal refineries following a tip-off from well meaning Niger Deltans that the illegal refiners were regrouping and moving refining equipment to the community in order to commence their illegal business which was destroyed by the troops of JTF sometimes ago. The illegal refiners thought that the JTF has shifted focus from their illicit trade due to the ongoing search and rescue operation against militancy in the region”, Abubakar said, insisting that the operatives were equipped and ready to deal with all forms of criminalities in the region.
JTF spokesman denied any invasion of Okorenkoko community, but a high chief of Gbaramatu kingdom, Chief Godspower Gbenekama, confirmed the renewed military invasion and bombardment of Okerenkoko. He, however, denied that the action was due to a reprisal move by militants or youths from the area.
“There was no operation today. Although our operations are on-going, we act on information. What you have just told me, I will also tell our people,” Abubakar told THISDAY.
A statement last night by Spokesman of the Movement for the Emancipation of Niger Delta (MEND) Gbomo Jomo, however, said the explanations by Abubakar and the Director of Defence Information, Colonel Chris Jemitota, on the military attacks in the region were at “best contradictory,” stating that the Nigerian State had started a war it could not win.
Also condemning the attacks on the Ijaw communities, the Secretary of the Watchdog of Niger Delta, Sam Ebiye, said: “The Federal Government of Nigeria has watered the seed of revolution in Niger Delta through its JTF. The recent onslaught and occupation of some Ijaw communities in Niger Delta rather than being palliative will in the end lead to the liberation of the Niger Delta people from the shackles of illegal rule.”
Ebiye reminded the government that revolution runs in the blood of an average Ijaw man, adding that suppression would only yield more resistance from them and challenged the JTF to move into all parts of Ijaw land and see what the reaction of the people would be.
Meanwhile, the Federated Niger Delta Ijaw Communities (FNDIC), an organisation whose leadership include High Chief Government Ekpemupolo, alias Tompolo, has explained that the Ijaw people are not interested in destroying the Nigerian Army or economic installations located in their area, but want a sense of belonging and equal rights for the people.
The FNDIC, in a statement signed by its President, Dr. Bello Oboko, said: “The Ijaw cannot afford to pride themselves at destroying their nation’s army which is saddled with the constitutional responsibility to protect lives and property. The Ijaw struggle is well-meaning. Nigeria as a whole would be the better for it.”
On its part, the Nigeria Labour Congress (NLC) raised alarm over what it described as the widening scope of confrontation between JTF and militants.
The concern of labour came on the heels of a statement by the National Emergency Management Agency (NEMA) that it is in the process of mobilising resources to assist the victims of the fighting.
Speaking in an interview with newsmen at Labour House in Abuja, the NLC General-Secretary, Comrade John Odah, described as unfortunate the degeneration of the conflict to the extent that human lives are being lost.
He said: “As far as we are concerned, the escalation of violence is unfortunate because at the end of the day, we would need to go back to the negotiating table to settle issues. I think it is a thing of national security threat that the crisis is resulting in the escalation in fighting in such a manner that lives are being lost.
"We need to show the Niger Delta people that we are determined to improve their situation and that by the establishment of the Ministry of Niger Delta, we are making their plight one of the key planks of the 7-Point Agenda.”
As a way out of the logjam, the NLC scribe suggested that the leaders of the region should return to the negotiating table to discuss the problems, while the Federal Government should in the interim seek ways of implementing the report of the Ledun Mitee's Committe on Niger Delta Development.
“We think that the Federal Government having received the report of the Ledun Mitee- Committee on the Niger Delta Development crisis, what needs to be done is to do more dialogue and to try to separate the criminal elements from those who are geniunely aggrieved because of decades of neglect of the oil-producing areas,” he said.
However, NEMA said it was mobilising resources to ensure that adequate relief materials including drugs and food items are provided for the displaced people in the crisis.
A statement signed by the Head of Public Relations of the agency, Mr. Yushau A. Shuaib, said NEMA Director-General, AVM Mohammed Audu-Bida (rtd), had raised a team from the Abuja headquarters of the agency to go and assess the level of devastation in the Niger Delta.
The team, which is led by the Director of Relief and Rehabilitation, is to assess the requirement in terms of relief materials and rehabilitation of innocent victims in the affected communities.
Strass: My Apologies eom
I Think We Will Get Our Volume & S/P Increase When Our Board Rumors Become Fact/PRed
Should be a great summer.
Thanks everyone for the "Leaks".
schugs: That Wouldn't Fit Their Job Description.
The Good News Is, Offor Won't Vote For A R/S eom
Nigerian military acts to clear oil rich Delta of militants
+ -
09:43, May 18, 2009
Fierce fighting eased after the Nigerian military claimed a major victory on Saturday in the oil rich Niger Delta region in the West African country's southeast Delta State.
After three days of a military offensive code-named Operation Restore Hope, the Nigerian Joint Task Force overran Camp 5, the stronghold of the Movement for the Emancipation of the Niger Delta (MEND), a major headache for both government and foreign oil companies in the region.
The military said it had rescued nine Filipinos and four Nigerians taken hostage alongside their oil vessel MV Spirit, one of the two ships seized by MEND off the coast on Wednesday night.
More than 20 crew members were on board the MV Spirit when the tanker was hijacked by the largest militant group in the region, which until Friday admitted holding 15 Filipinos in its custody.
There were conflicting reports about the fate of the Filipinos yet to be found, with the government saying none of them had been hurt in the fight and MEND declaring the killing of one in the crossfire.
With the fall of Camp 5, MEND is apparently in a disarray from an "all-out war" it declared on Friday and the Saturday deadline for foreign companies to leave.
But lingering fear is deep-rooted in a region where poverty leaves a large number of youths without work and MEND's claim for the local control of resources taking the heart of population, analysts say.
Against the same backdrop of poverty and rich oil resources which had yielded billions of U.S. dollars in decades, MEND burst onto the scene in January 2006 and quickly developed into a dominating militant group.
More than 200 foreign workers have been kidnapped over the past three years with the hostage-taking turning into a lucrative business -- most have been released unharmed after a ransom was paid.
Mike Okiro, the inspector general of the Nigeria Police Force, accused MEND of using hostage-taking as a money-making tool, holding it responsible for abducting most of the 128 people reported in 2008.
He told reporters last month that 126 of the hostages were released after huge sums of money were paid, one was recovered dead and one had his four fingers chopped off by captors.
The government had long planned a crackdown on MEND, only to take action recently after armed gangs ambushed security operatives, attacked foreign vessels and imposed an evacuation deadline on foreign firms.
The anti-MEND operation is part of a pledge offered by President Umaru Yar'Adua, who took office in May 2007. The president vowed to tackle both poverty and crime in the Niger Delta, one of the world's largest wetlands and home to Africa's biggest oil and gas industry.
While advances are being made on the military front, the economic development needs to be seen in the oil rich delta to knock out the root cause of crime, which, in addition to piracy and kidnappings, includes blowing up pipelines and bunkering on oil pipelines, local media said, citing analysts.
Attacks and bunkering in the Niger Delta have cut Nigeria's output by around a fifth from 2.4 million barrels per day recorded before 2006.
Pipelines are regularly vandalized by impoverished residents, who risk their lives to siphon off fuel.
Source:Xinhua
War in N/Delta: 900 now dead - Soldiers continue heavy shelling, sink 40 speed boats - Capture dreaded camp
Sylvester Idowu, Warri - 17.05.2009
THE death toll in last Friday’s clash between the operatives of the Joint Task Force (JTF) code-named Operation Restore Hope and militants at Chanomi creeks in Warri South Local Government Area of Delta State, rose to about 900 on Saturday as soldiers continued to bombard known camps with heavy shellin
Sunday Tribune learnt that the soldiers, in line with the directive of the Presidency, continued to smoke out the militants and secured the areas hitherto occupied by them to perpetrate criminal activities in the region.
The bloody battle, which entered its second day on Saturday, led to the capture of the dreaded Camp 5 which was superintended by Government Ekpomukpolo, alias Tompolo, at about 6 a.m.
The gun duel also led to the rescue of one of the vessels with six Filipinos and four blacks that were kidnapped by the militants shortly after the battle broke out on Wednesday.
Security sources disclosed that the Filipinos were used initially as shields by the militants who killed some of them while fleeing from the superior fire power of the invading soldiers.
The invading Federal troops also sunk 40 speed boats with many armed militants aboard while arms and ammunitions of different calibre, including anti-aircraft guns and dynamites, were recovered during the operation.
Sunday Tribune gathered that because of the continued attack by the soldiers, militants had ordered blockade of all vessels’ movement through PortHarcout channel, Onne, Eket and Bonny with special forces.
It was further gathered that Farah and Ateke mobilized 30 speed boats from Rivers State axis to attack some JTF locations but were repelled by the soldiers who were placed on the alert along the route to Warri.
As the battle continued on Saturday, the fleeing militants were said to have blown up Chevron-Escravos-Warri pipeline with dynamites, while some were strapped around some other lines ready for detonation.
Three Nigerian Airforce jets, two war ships, NNS Obula and NNS Nwanba, 35 gun boats and five Augusta helicopters fitted with high caliber weapons were deployed to the coastal Ijaw communities for yesterday’s operation by the Joint Task Force.
No fewer than 3,000 troops were involved in the operation in the riverside of Gbaramatu Kingdom in Warri South West Local Government Area of Delta State.
The Ijaw enclave housed the popular militant Camp 5 and Iroko Camp, which the JTF had been itching to invade and take over in the last 10 years.
As at the time of filing this report, soldiers were still combing for the leader of Camp 5 militants, Government Ekpomukpolo a,k,a Tompolo who was believed to have escaped the Wednesday onslaught on his base.
Coordinator of Joint Media Campaign Centre of JTF, Colonel Rabe Abubakar said “the whole area around the Camp 5 is under our control. Everywhere is under control. The camp has been obliterated. Also we have secured the NNPC chartered tanker, M V Spirit and the cargo ship hijacked by the militants. The militants have now got what they have been wishing for, a confrontation from JTF.”
As part of measures to restore stability in the coastal communities engulfed in the crisis, Delta State Governor, Dr. Emmanuel Uduaghan, it was learnt, held a stakeholder consultative meeting in Warri with key personalities from the communities and some security operatives in the state.
The meeting, sources said, had in attendance the Deputy Governor, Professor Amos Utuamah, the Secretary to the State Government, State Director of the SSS, Senator James Manager, House of Representatives Member for Warri Federal Daniel Reyenieju, Honourable Solomon Funkekeme, erstwhile Deputy Govermer of the State, Chief Benjamin Elue, Chief Tunde Smooth, Chairman Warri South West George Ekpomupolo as well as some commissioners.
Sources disclosed that the meeting reviewed the situation and adopted a strategy to restore peace in the area.
Part of the decision arrived at was the need to prevail on the military authorities and the Presidency to stop further action in the creeks.
It was gathered that the meeting mandated some elders and youth leaders to prevail on the restive youths in the creeks to stop any aggressive action against military personnel and to desist from any further attack on oil facilities in the area.
Oil prices fall again as OPEC raises output
Friday, May 15, 2009
Oil prices fell for a second day after the Organisation of Petroleum Exporting Countries (OPEC) boosted output for the first time since July and U.S. equities dropped on a report showing that retail sales unexpectedly weakened in April.
OPEC increased oil production last month, exceeding the group's quota by 967,000 barrels a day. Stocks fell in the U.S., the world's largest oil-consuming nation, after the Commerce Department said that purchases at stores decreased 0.4 per cent.
"Oil is facing pressure from a surprise increase in OPEC supply and a downswing in the major indexes," said Mike Sander, an investment adviser at Sander Capital Advisors Inc. in Seattle. "The energy market may not be ready for $60 oil."
Crude oil for June delivery dropped as much as 76 cents, or 1.3 per cent, to $57.26 a barrel on the New York Mercantile Exchange, and traded at $57.56 in Singapore. On Wednesday, the contract fell 83 cents, or 1.4 per cent, to settle at $58.02 a barrel, the biggest decline since April 27. Prices initially rose after an Energy Department report showed that U.S. supplies dropped for the first time in 10 weeks.
Oil touched $60.08 on Wednesday, the highest in six months. Crude oil may fall to $50 a barrel as prices have risen too far from their 20-day moving average, said Mashiko Sato, a senior analyst at OvalNext Corp.
The Standard & Poor's 500 Index declined 2.7 per cent to 883.92 and the Dow Jones Industrial Average dropped 2.2 per cent to 8,284.89. The MSCI Asia Pacific Index fell 2.7 per cent to 95.54 in Tokyo, the biggest decline since March 30.
Economists forecast that the Commerce Department report would show that retail sales were unchanged, according to the median of 67 projections in a Bloomberg News survey.
"The international macro data released last night was not supportive for the oil price, although the U.S. EIA inventory data show a sharp fall in crude inventories," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney.
The 11 OPEC members bound by targets implemented 77 per cent of planned output cuts of 4.2 million barrels a day, down from a revised 82 per cent for March, the Vienna-based organization said in a monthly report on Wednesday.
Those 11 nations, which exclude Iraq, pumped 25.812 million barrels a day in April, the report said, citing secondary sources, which include estimates from analysts and news organizations. That compares with 25.587 million a day in March. The nations have a target of 24.845 million barrels a day that took effect from Jan. 1.
The 12-member group will take into consideration the recent increase in oil prices when it meets on May 28 to decide whether a cut in output is needed to support prices, said Shokri Ghanem, the chairman of Libya's National Oil Corp.
"The near-term risk for the oil price in the next couple of months is lower," Moore said. "We might see oil prices at some point back under $50 a barrel."
Total U.S. daily fuel demand averaged 18.2 million barrels in the four weeks ended May 8, down 7.9 per cent from a year earlier, the Energy Department report showed.
Deliveries of petroleum products, a measure of consumption, averaged 19.1 million barrels a day from the beginning of the year through April, 4 per cent less than during the same period in 2008, according to a report yesterday from the industry- funded American Petroleum Institute. Fuel use was the lowest for the first four months of the year in 11 years.
OPEC cut its 2009 demand forecast for the ninth straight month, the Vienna-based producer group said in a monthly report.
Consumption will contract by 1.57 million barrels a day this year, or 1.8 per cent, to 84.03 million barrels, OPEC said yesterday. That's 150,000 barrels lower than the April forecast.
U.S. crude-oil supplies dropped 4.63 million barrels to 370.6 million in the week ended May 8, the Energy Department said. Stockpiles were forecast to increase by 1 million barrels, according to the median of responses in a Bloomberg News survey.
Gasoline inventories fell 4.15 million barrels to 208.3 million in the week ended May 8, the Energy Department report showed. The 16 analysts surveyed by Bloomberg News before the report were split over whether stockpiles of the motor fuel would rise or fall.
Gasoline futures for June delivery declined .13 cents, or 0.1 per cent, to $1.6855 a gallon in New York.
Brent crude oil for June settlement fell as much as 56 cents, or 1 per cent, to $56.78 a barrel on London's ICE Futures Europe exchange. It was at $57.03 a barrel in Singapore.
Art; Q3 = July August Sept. eom
MN I Hope You Didn't Pass Up The "Great Buying Opportunity" When We Were At/Around $.12
OK It Seems We Are All Growing Old Together. Maybe we need some help to stay young. Longevity.... http://www.findlongevitynow.com/freeship/?cp=2034&KEYWORD=longevity
Oil Cowboy & Dat The Thanks Go To Art 2004, I Was Just Re Posting.
Also A 2nd Source Hinting At A Deal This Coming Week.
UPDATE: I just forwarded Mark's latest update post on a possible Addax - ERHC deal or merger to Barry Morgan.
I asked Barry if anyone on Upstream would be covering the story.
I quickly received the following reply:
"HOPEFULLY NEXT WEEK."
Sent on his Blackberry.
So the story could have Barry Morgan or at least Upstream coverage.
texsun2003, No She Means The "M Resort". This is from farrell90's post, which agrees with her...
http://www.ratelasvegas.com/buffets/buffetrank.html
My Lady Friend Lives In Las Vegas And Says Bellagio Is The Most Expensive, But The "M" Is The Best Buffet. FWIW
Looks Like We Took Off Right At The Golden Cross.
http://stockcharts.com/h-sc/ui?s=erhe
Global Oil Demand to Drop by 1.37mbpd
By Chika Amanze-Nwachuku, 04.16.2009
The Organisation of Petroleum Exporting Countries (OPEC) said yesterday that world oil demand would drop by 1.37 million barrels per day (bpd) in 2009 to average 84.2 million bpd. The 12 member oil organisation’s previous forecast was that consumption would fall by 1.01 million bpd.
In its latest monthly oil market report, OPEC expressed concern that world oil demand was shrinking faster than previously thought as a slowing global economy erodes consumption and keeps oil prices under pressure.
"In the coming months, the market is expected to remain under pressure from uncertainties in the economic outlook, demand deterioration and the substantial overhang in supply," the report said.
The International Energy Agency (IEA), adviser to 28 industrialised countries, had on Friday stated that world oil demand will slide by 2.4 million bpd in 2009, more than one million bpd down from its previous forecast.
The group further noted that demand was falling fastest in the developed nations of the Organisation for Economic Co-operation and Development (OECD).
OPEC said the global downturn had also curbed previously rapid growth in China and India as demand growth in countries outside the OECD had fallen by 90 percent year-on year.
Oil was trading just under $50 on Wednesday after the OPEC report was released, erasing an earlier gain.
Oil prices had hit an all time high of $147 a barrel last July, partly due to expectations of continued strong demand in the developing world, before dropping to $30 in September last year as the recession started to bite.
However, oil price had recovered since mid-February due partly to OPEC production cuts and hopes for an eventual economic recovery. The outcome of the G20 meeting earlier this month had helped improve market sentiment, OPEC said, as "the substantial increase in IMF resources should serve to support troubled emerging market economies, advancing ongoing efforts to stabilise the global financial system."
OPEC has promised to cut 4.2 million bpd, equal to about five per cent of daily world demand, from its output levels since September to help revive prices. Industry estimates show it had delivered most of the cutbacks.The group, excluding Iraq, is complying with 83 percent of the pledged curbs, according to Reuters calculations based on OPEC data. OPEC said its production was at 27.9 million bpd in March, down 145,000 bpd from February.
"Vigilant monitoring is essential to assess the likely developments in the second half of the year and the impact these will have on market stability," the report added.
US Congress Considers Bill to Cut Oil Imports
From Constance Ikokwu in Washington, D.C., 04.10.2009
The United States government is forging ahead with concrete steps to wean the country of heavy dependence on foreign oil by releasing a draft of new clean energy legislation put together by Congress.If the legislation is passed into law, major suppliers of oil to the country such as Nigeria and Saudi Arabia will be affected. Nigeria exports almost half of its total crude oil production to the US, which is Nigeria’s biggest customer.
Announcing the legislation on Capitol Hill, Chairman of the Energy and Commerce Committee, Henry A. Waxman, and Chairman of the Energy and Environment Subcommittee, Edward J. Markey, observed that the law would end US “dangerous” dependence on foreign oil, create jobs and combat global warming.
Named “The American Clean Energy and Security Act of 2009 (ACES)”, the legislation is presented as a comprehensive approach to US energy policy.
“This legislation will create millions of clean energy jobs, put America on the path to energy independence and cut global warming and pollution,” remarked Waxman.
“This legislation will create clean energy jobs that can't be shipped overseas, reduce our dependence on foreign oil and make America a global leader in energy technology,” added Markey.
Markey further stated that “We will create jobs by the millions, save money by the billions, and unleash energy investment by the trillions.”
In order to achieve the stated goals, the bill has four titles namely:
1. A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, low-carbon fuels, clean electric vehicles, and the smart grid and electricity transmission;
2. An energy efficiency title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transportation, and industry;
3. A global warming title that places limits on emissions of heat-trapping pollutants;
4. A transitioning title that protects U.S. consumers and industry and promotes green jobs during the transition to a clean energy economy.
The high price of oil last year rattled US consumers and prompted a fresh debate on energy independence. At its peak, oil sold for $147 per barrel in July 2008. The nationwide average for a gallon of gasoline spiked to $4, provoking outrage.
The Energy and Commerce Committee is expected to complete consideration of the new legislation by US Memorial Day, May 25.
OPEC: Oil at $50 a Barrel Acceptable
By Chika Amanze-Nwachuku with agency report, 04.03.2009
Organisation of Petroleum Exporting Countries (OPEC) yesterday stated that the current prices of crude oil, which is around $50 a barrel, can be acceptable given the current economic environment.
Expectations were rife that the group may further reduce output following the declining crude oil prices.Crude oil prices hit a record high of $147 a barrel in July last year, but dropped below $32 a barrel in September.
To help revive prices, the OPEC, which pumps a third of the world's oil to had reduced output by 4.2 million barrels per day (bpd) since September last year.
However, the deepening global recession, which eroded world oil demand, had left oil prices to around $40 per barrel since the beginning of this year, until a fortnight ago, when prices hit new highs of $52.25 a barrel.But speaking yesterday, OPEC Secretary-General, Abdalla el-Badri, said the group can live with prices of around $50 for the time being.
The OPEC statement came as the world's main developed and industrialising nations, the G20 released a package of measures to counter the crisis, including boosting International Monetary Fund(IMF) resources to $1 trillion."I think we can live with prices of around $50 for the time being.
The world economy is in a very bad condition," said el-Badri. El-Badri had in January said OPEC was not happy with prices at $40, even $50 a barrel.Speaking in the same vein, Qatar oil minister Abdullah bin Hamad Al Attiyah, said current prices were reasonable, given the current economic environment. His Kuwait counterpart, Sheikh Ahmad al-Abdullah al-Sabah, had on Sunday said he was comfortable with $50 a barrel.Oil prices are now hovering around $50 a barrel, a drop of almost $100 from a peak of $147 a barrel in July last year, as a global recession drives down demand.
While El-Badri said OPEC still hopes for a rebound, the acceptance that lower oil prices will stay for now is a departure from OPEC's previous emphasis on higher prices. El-Badri, along with OPEC kingpin Saudi Arabia and OPEC's presidency holder Angola , have frequently said around $70 a barrel would be a fair and reasonable price.
I Wish The Board Had A "Trash Can". The Moderators could put what they don't like in the Trash Can. The rest of us could go and visit/read the "Trash" if we chose to do so. The Trash Can would only go back 24 hours.
cayman08 His Alias Born On: Saturday, April 01, 2006