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Total OPEC Oil Output Rose 40,000 Barrels Per Day in November
OPEC-10 Output Fell Due to UAE Field Maintenance, Platts Survey Shows
LONDON, Dec. 10 /PRNewswire/ -- Overall oil production by the 12 members of the Organization of Petroleum Exporting Countries (OPEC) rose to 31.15 million barrels per day (b/d) in November, according to Platts' latest survey of OPEC and oil industry officials just released. This is up 40,000 b/d from October's production of 31.11 million b/d, as higher volumes from Saudi Arabia and Iraq helped offset a large field maintenance-related drop in UAE output.
Excluding Iraq and Angola, the ten OPEC members bound by new output allocations which came into effect at the beginning of November, pumped 26.97 million b/d, down 110,000 b/d from October's 27.08 million b/d.
Most members increased production; Iran and Kuwait boosting output by around 50,000 b/d each and Angola by 30,000 b/d, with smaller increases of around 10,000 b/d coming from Algeria, Libya, Nigeria and Qatar.
Saudi Arabia, one of OPEC's key producers, pumped an average 9 million b/d during the month, up 200,000 b/d from recent production levels. Iraq's output rose 120,000 b/d in November to 2.4 million b/d, the highest since the 2003 war.
"For consumers, it's encouraging to see Saudi Arabia above the 9 million barrel per day mark," said Platts Global Director of Oil John Kingston. "At Platts, we had seen some signs that more oil was coming on the market, with one of the most visible indicators being the rise in tanker freight rates. That was an indication that more ships were being chartered to move more oil. These numbers justify that assumption. It's also encouraging to see the sustained improvement out of Iraq. And the fact that this rise in output occurred while the UAE was undergoing significant oil field maintenance is another hopeful sign for additional supply injections down the road."
Field maintenance that affected UAE production had been anticipated by the marketplace. The Abu Dhabi National Oil Company had signalled the likely November maintenance of its Upper Zakum, Lower Zakum and Umm Shaif offshore oilfields in advance,saying in September that it had worked with its customers to ensure minimum disruption by advancing the majority of exports. As a result, total UAE output fell to 2.15 million b/d in November, down from an average of 2.6 million b/d in October.
OPEC ministers, who met in Abu Dhabi last Wednesday, December 5th, decided to maintain current output limits, set at 27.253 million b/d for the OPEC-10, and to meet again in Vienna on February 1, 2008.
They also assigned output allocations of 1.9 million b/d to Angola, which joined OPEC last January, and 520,000 b/d to Ecuador which resumed its OPEC membership at OPEC's November 17-18 heads of state summit in the Riyadh, Saudi Arabia.
Including these two countries, OPEC's output target is set to rise to 29.673 million b/d in January 2008.
Country November October September August Nov 1 target
Algeria 1.390 1.380 1.360 1.360 1.357
Indonesia 0.830 0.830 0.830 0.830 0.865
Iran 3.950 3.900 3.880 3.880 3.817
Kuwait 2.500 2.450 2.420 2.420 2.531
Libya 1.720 1.710 1.700 1.690 1.712
Nigeria 2.200 2.190 2.180 2.150 2.163
Qatar 0.830 0.820 0.810 0.810 0.828
Saudi Arabia 9.000 8.800 8.700 8.660 8.943
UAE 2.150 2.600 2.590 2.590 2.567
Venezuela 2.400 2.400 2.400 2.400 2.470
OPEC-10 26.970 27.080 26.870 26.790 27.253
Angola* 1.780 1.750 1.720 1.680 N/A
Iraq 2.400 2.280 2.170 1.990 N/A
Total 31.150 31.110 30.760 30.460 N/A
* Angola joined OPEC on January 1, 2007
Sao Tome and Principe: Japan provides aid of over US$2 million [ 2007-12-11 ]
Sao Tome, Sao Tome and Principe, 11 Dec – Japan has donated over US$2 million to Sao Tome and Principe in order to re-launch a sustainable economic development plan for the archipelago, the Japanese ambassador, Motoi Katto, said Monday.
The funding is the result of an agreement between the two countries via a document signed Monday in Sao Tome by the Japanese ambassador and the representative of the Sao Tome foreign affairs minister, Óscar Sousa, who has the role of minister of defense.
The Japanese ambassador said that the funding was aimed at combating poverty on the archipelago through investments in social sectors, particularly education, health and infrastructure.
As well as food aid, particularly by providing rice, the government of Japan has also invested in the fishing, agricultural and education sectors in its cooperation with Sao Tome and Principe. (macauhub)
Oil prices drop to $88.85 on lower demand forecast
CRUDE oil prices fell on concern that economic growth may slide in the United States (U.S.), the world's biggest economy, reducing energy demand.
U.S. fuel consumption growth has declined as mortgage delinquencies, which reached a 20-year high in the third quarter, threaten to cut economic expansion. President George W. Bush and Treasury Secretary, Henry Paulson, on Thursday, announced an agreement with lenders that will fix rates on some home loans for five years.
``I wonder how bad this economy must look for the government to do what it's doing now,'' said Gordon Elliott, risk management specialist at FC Stone LLC in St. Louis Park, Minnesota. ``A slowdown or recession really cuts energy consumption.''
Crude oil for January delivery fell $1.38, or 1.5 per cent, to $88.85 a barrel at 9:13 a.m. on the New York Mercantile Exchange, the biggest decline this week. The price has fallen 7.8 per cent in the past month.
Oil prices may fall next week on speculation that a slowing economy will cause U.S. fuel demand to drop, bolstering inventories, a Bloomberg survey showed.
Twenty-eight of 46 analysts surveyed, or 61 per cent, forecast oil prices will decline through Dec. 14. Nine, or 20 per cent, said prices will rise and nine forecast little change. Last week, 48 per cent of respondents said oil would drop. U.S. fuel stockpiles rose and demand declined last week, according to an Energy Department report on Dec. 5.
Brent crude oil for January settlement fell $1.18, or 1.3 per cent, to $89 a barrel on the London-based ICE Futures Europe exchange.
Iran Stops Oil Transactions in Dollars
By Chika Amanze-Nwachuku with agency report, 12.10.2007
Major crude oil producer Iran has made good her threat to stop oil transactions in dollars as the country’s Oil Minister Gholam Hossein Nozari stated at the weekend that the country has stopped selling oil in dollars in line with the policy of selling crude in non-dollar currencies.
Iran and Venezuela had at the OPEC third heads of state summit in Riyadh , Saudi Arabia last month, urged the organization to drop the US Dollars as the only currency for oil.
The Iranian Oil Minister who spoke on Saturday said his country has completely stopped carrying out its oil transactions in dollars, labelling the United States dollar an "unreliable" currency." At the moment, selling oil in dollars has been completely halted, in line with the policy of selling crude in non-dollar currencies.
"The dollar is an unreliable currency, considering its devaluation and the oil exporters' losses," a news agency report quoted Nozari as saying.The world's fourth largest oil exporter, Iran has massively reduced its dependence on the dollar over the past year in the face of US pressures on its financial system and the fall in the dollar.
Although the Oil Minister was silent on which currencies Iran was now being paid, in the past, officials have said most oil income was in euros, with a significant percentage in yen.Japan, which purchases 20 percent of Iran 's crude oil, has recently agreed to pay for the crude oil in yen, officials have said. The UAE dirham has also been mooted as a possible payment currency.Iran has in the past months been whittling down the proportion of dollars in its oil revenue income. Officials in October said that dollars accounted for only 15 percent of payments and predicted the amount would fall to zero.The United States has in recent months successfully encouraged major European and Asian banks to cut their dealings with Iran in a bid to make the Islamic Republic give way on its controversial nuclear programme. Washington has also blacklisted major Iranian banks for alleged support of terrorism and seeking nuclear weapons, charges of which were however denied by Tehran .The fall of the dollar, which has weakened considerably against the euro and other currencies in the past 12 months, has affected the revenues of OPEC members as most of them price and sell their oil exports in the US currency.Iran has also reduced its dollar assets held in foreign banks and urged the Organization of Petroleum Exporting Countries (OPEC) to take collective action to price oil in other currencies such as the euro, instead of the US currency which is used across the world at present.The two countries had asserted their interest to convert their cash reserves into a currency other than the depreciating U.S. dollar, which they insisted is the cause of the escalating crude oil price.Specifically, leaders of the two prominent member countries, President Mahmoud Ahmadinejad of Iran and President Hugo Chavez of Venezuela , who blamed the weakness of the U.S. dollar for high oil prices sought to trade oil in a basket of currencies to replace the historic link to the dollar.Although Iran and Venezuela have antagonistic relationships with the U.S. , which suggested that their proposals may have a political motivation, the Iranian leader’s comments were believed to have been fueled after U.S. ally Saudi Arabia was reluctant to mention concerns about the falling dollar in the summit's final declaration.Ahmadinejad’s comments also highlighted the growing challenge that Saudi Arabia , the world's largest oil producer, faces from Iran and its ally Venezuela within the OPEC."They get our oil and give us a worthless piece of paper," Ahmadinejad told reporters at the end of the summit, even as he blamed President George Bush's policies for the decline of the dollar and its negative effect on other countries.“Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves. . The call was however resisted by OPEC which declared that it would continue to supply the world with "economic and reliable oil” notwithstanding the pressure on it to become a more active geopolitical and financial organization.
Petemantx; Thanks For The Leg Work. eom
Sao Tome and Principe: Unemployment rate total 27.7 percent in 2006 [ 2007-12-07 ]
Sao Tome, Sao Tome and Principe, 7 Dec – The unemployment rate in Sao Tome and Principe reached 27.7 percent in 2006, as compared with 29.5 percent the previous year, according to a statement issued Thursday by the archipelago’s National Statistics Institute (INE).
According to INE, the rate recorded in 2006 represented 17,364 unemployed out of an active population of 62,619 individuals, which is 41 percent of the archipelago's entire population.
The INE document also said that between January and December 2006, the unemployment rate amongst women was 29 percent against 26 percent for men.
In 2005, with an active population rate of 41 percent, there were 18,234 unemployed, when the archipelago was inhabited by 148,968 people, the INE added citing several national surveys on employment and unemployment and a general census of the population carried out between 2000 and 2006.
The INE document, entitled “Indicators of employment and unemployment by gender, 2000-2006,” also said that the employment rate was 29.8 percent and sub-employment (occasional employment) was 13.5 percent. (macauhub)
Govt, Militants to Sign Peace Pact Today
From Segun James in Yenagoa, 12.06.2007
Vice President, Dr. Goodluck Jonathan will tomorrow visit Yenagoa, the Bayelsa State capital to witness the formal signing of a peace pact between representatives of various militant groups, oil companies operating in the Niger Delta and government, an action that will signal the end of hostilities along the cre eks.
The state Governor, Chief Timipre Sylva disclosed this at the opening ceremony of the Massive Awareness Campaign on Peace (MACOP), organised by the Niger Delta Peace and Conflict Committee held at the Gloryland Cultural Centre, Yenagoa yesterday.
Sylva said the signing of the peace pact between the government and the militant organizations will mark a formal end to agitations in the creek and as such, any act of kidnapping, vandalism and harassment would henceforth be treated as criminal a ct .
Tracing the genesis of militancy to the last decade, Sylva lamented that the problem was at its peak in May 2007 when he was sworn in as Governor.
“Where we are today is not where we started. Today marks the beginning of the final phase of peace process in the state.” He enthused, adding that Bayelsa is relatively peaceful now than it was.
The Governor was also excited about the return of oil companies to the area. “Oil companies operating in the state are now operating in a relax atmosphere as there is no longer threat of war nor reported cases of kidnapping and related social vices.”
He said that all the militants groups operating from the Creeks have already endorsed the peace pact as the signing is just a formality.
“They said that they are ready to give peace a chance in the state. After the signing of the peace pact tomorrow the state will no longer experience any act of hostage taking and other related social v ices.”
He commended the peace initiative of President Umaru Yar’Adua led administration, saying that the state is now enjoying relative peace compared to the situation they met in May.
‘With this, Bayelsa state will cease to be the headquarters of militancy in the country; rather it will henceforth become the capital of peace in the country.
In the lecture he delivered, the National Chairman of the Niger Delta Peace and Conflict Committee, titled : Role of Stakeholders in Sustaining Peace Initiatives in the Niger Delta—Bayelsa Question, Senator David Brigidi said for the sustenance of peace in the region , the vicious circle of poverty, economic injury and political grievance must be b roken.
The vicious cycle, according to him could only be broken through creation of employment opportunities and other economic opportunities that can nurture and sustain fragile peace a rrangements.
To achieve the peace arrangement, he highlighted the expected roles of all the stakeholders including the government at all the three tiers, the oil companies, the host community and the respective youths in the r egion.
Gas Flaring: 2008 Deadline Achievable ––Minister
12.03.2007
Minister of Environment, Housing and Urban Development, Hajia Halima Alao, has said the 2008 deadline set by government to cut gas flare is "realistic and achievable."
Alao, who expressed the view at the News Agency ofNigeria (NAN) forum in Abuja, said government wascommitted to the deadline and urged all Nigerians to support the effort to reduce gas flare, as the practice was injurious to the climate.
"Emission from this flares goes into the environment andwarms up the globe, resulting in negative consequences such as drought and diseases that are already here with us.
The Sahara is moving at an alarming rate annually and you can imagine the impact in the next few years if precautionary measures are not taken.
"NAN reports that stakeholders in the oil and gas sectors havecalled for an extension of the deadline to 2011, and stressed theneed for proper arrangements to be made.
On climate change, Alao called for transfer of adequateand clean technology, to enable developing countries copewith the consequences of the phenomenon.
She said "there must be transfer of technology, there must becapacity building for developing countries to enable them cope with the consequences of climate change," adding that it was unfortunate that the developing world contributed the least to global warming, but were the most vulnerable to its impact.
"Developing nations contribute about three per cent to theemission problem, while developed nations are responsiblefor the major emission causing climate change today.”
We are all going to be affected by its consequences, hence the need for collaboration to tackle it," she said.Alao said government would not impoverish Nigerians, in an attempt to address the impact of climate change.
"The problem originated from the activities of developed countries, and they must be at the forefront of initiatives tomitigate it," she said.
OPEC: Nigeria, Others Plan $150bn Project
By Chika Amanze-Nwachuku with agency report, 11.30.2007
Nigeria and 12 other members of the Organization of Petroleum Exporting Countries (OPEC) are planning to inject $150 billion (£72.4 billion) over the next five years into more than 120 projects intended to boost oil output.
Making the disclosure yesterday in Singapore, President of the organization, Mohamed al-Hamli, who is also the Oil Minister of the United Arab Emirates, OPEC’s third-largest-producing country, said the programme will boost the overall production capacity of member countries by more than five million barrels a day.
He further revealed that large and complex refineries are being planned or under construction, both domestically and abroad.
The programme would help to satisfy the growing demand for uninterrupted secure oil supplies, as well as offering an adequate level of spare capacity for the benefit of the world at large. OPEC member countries are also investing heavily in refining and delivery infrastructure, such as pipe-lines, storage facilities and terminals, he said.
OPEC, which supply about 40 per cent of global crude oil production of 85 million barrels per day, are expected to discuss raising output at their next policy meeting in Abu Dhabi on December 5. Production levels for the first quarter of 2008 will also be reviewed at the meeting.
Some members, including Indonesia and Saudi Arabia, OPEC’s largest producer, which control about a quarter of the world’s proven oil reserves, are thought to be willing to consider an increase. Others, such as Venezuela, are less keen to bow to pressure from big consumer countries, including the United States.
Since August, crude prices have surged more than 40 per cent from below $70 a barrel to close to $100. Yesterday oil prices have slipped nearly 4 per cent.
Meanwhile, top officials of the organization have raised alarm over the oil prices threatening to top $100.
The officials who reiterated that markets were well supplied however declined to comment whether OPEC would raise output at the next week.
The 13- member organization has been under pressure from consumer nations to raise production again to stop oil prices from vaulting above $100 a barrel, saying it would add strain to a vulnerable world economy.
But few days to the December 5 meeting in Abu Dhabi, both the OPEC President and Saudi Oil Minister Ali Al Naimi still assert that prices were beyond the group’ s control.
The duo also said they were not aware of any specific output proposals, even as they dismissed reports that Gulf ministers were considering an increase of up to 750,000 barrels per day.
"We observe with great concern the recent escalation of oil prices.
From Joe Shea.....
According to a press release from the company released yesterday afternoon, a shareholders' meeting is set for April 22, 2008, in Houston to hear the latest news and financial reports from ERHC Energy, the "minnow" that has some of the biggest fish inthe world - in the form of ptentially massive oil deposits - on the line and hopes to start landing them next Fall.
The oil deposits in the Gulf of Guineau were awarded to the company in 2005 during the second licensing round of the Nigeria-Sao Tome and Principe Joint Development Zone, a region of the Gulf of Guineau that is expected to produce as many as 14 billion barrels of oil for the lucky explorer who strikes it rich there.
Chevron's first test well hit a deposit of roughly 1 billion barrels, according to the Wall Street Journal, but Chevron walked away from the wealth after failing to budge Nigerian officials in their fight to capture rights held by ERHC.
Chevron wanted to develop the entire JDZ field with ExxonMobil, thus saving substantially on forward costs, but could not afford ERHC Energy's buyout price and could not get politicians from either Sao Tome or Nigeria to force the tiny firm to give up its rights, despite help from the U.S. Government and a thinly-veiled attack authored by an oil company ally and released through the Attorney General of Sao Tome and Principe. The tiny island chain is a former Portuguese colony in the Gulf of Guineau that shares development rights in the Gulf with Nigerial it also owns its own Exclusive Economic Zone, where ERHC also has rights to explore.
Both the Nigerian and Sao Tomean governments have rejected and disparaged the Sao Tome report, and SEC and FBI officials caught up in Chevron's web spent hundreds of thousands of dollars exploring its spurious charges but never managed to find evidence the company did anything illegal.
That left ExxonMobil in charge of Block 1 with several new, smaller partners, and ERHC, with Addax Petroleum and Chinese oil giant Sinopec in the driver's seat for the Blocks 2, 3 and 4, which are expected to be the most lucrative of all.
From MN's Article
According to the latest news, America’s search for sources of oil supply has taken them to a former Portuguese Colony Sao Tome, which consists of two islands (Sao Tome and Principe) in the Gulf of Guinea in the west African Coast. This small country of a population of 165,000 has started to get “American attention and care”. Already the plans are underway to build a ‘sheltering port” for the US Navy. US assistant secretary of state for African Affairs , Walter Kansteiner visited Sao Tome to express US interest when Maria das Neves was the Prime Minister of Sao Tome . Since 2006 the Prime Minister of this smallest democracy in Africa has been Soares da Vera Cruz.
The oil explorations in Sao Tome have already started by American companies. Chinese and other foreign companies have expressed their interest in exploring the oil reserves in Sao Tome. This poor country deserves and has the right to gain benefits that would flow from their natural resources.
However as it has turned out to be in many parts of the world, when it comes to securing geopolitical and energy economics supremacy, the US administration has not shown respect for International Law or UN Charter.
The poor country with a good potential with her promising oil reserves, Sao Tome deserves to be prosperous as a truly free country, without being subservient to US, China or anybody else’s geo-political and energy-economics interests.
Where US-UK military interests have taken the fate of
Sao Tome and Principe: Archipelago linked to Cameroon by air [ 2007-11-21 ]
Sao Tome, Sao Tome and Principe, 21 Nov – Sao Tome and Principe and Cameroon have officially launched air links between the two countries with twice weekly flights run by the Cameroon’s Elysian Airlines, representative of the airline, Gery Danjour, said Tuesday in Sao Tome.
Danjour told macauhub that the fights would be run on a Monday and Thursday between Douala, in Cameroon, and Sao Tome, the capital of Sao Tome and Principe, using an Embraer – 120 aircraft, with a capacity for 30 passengers.
It is estimated that this direct link of around 60 minutes will cost a little over US$400, according to the two experimental flights carried out last Monday and Friday, Danjour said.
The deal also involves Sao Tome company, Mistral Voyage.
The flights by Elysian Airlines thus fill the gap left in the market over eight years ago by Air Affair Afrique, which linked the archipelago to Cameroon, but with a stop over in Malabo, the capital of Equatorial Guinea.
In the last six years several Camaroon companies have made investments in Sao Tome and Principe, particularly in retail banking (Afriland First Banc), insurance (Sat-Insurance) and a hotel unit (Chez Eva Magni Bi). (macauhub)
Navy Undergoes Reorganisation to Tackle Militants
From Ernest Chinwo in Calabar, 11.22.2007
Chief of the Naval Staff, Rear Admiral Ganiyu Adekeye has said that the Nigerian Navy is currently undergoing a major reorganisation.This is to enable it meet the challenges posed by the militant groups in the Niger Delta.
Adekeye made the disclosure Wednesday, in Calabar , while addressing officers and ratings of the Eastern Naval command. The Naval chief who was inspecting facilities under the Command said the situation in the region was becoming more complex , hence the need for the Navy to reorganize to meet the new challenges.
Adekeye said Delta, Bayelsa and Rivers States were the main theatre of operations of militants in the region. He expressed concern that the militants were shifting their operations to other states in the region.
According to him, “we are reorganizing our operational system to be able to cater for this particular area. You know the main fulcrum of militant activities was always in Delta, Rivers and Bayelsa States but we have started having them here.”
As part of the reorganization, he said the Navy had embarked on, and had achieved 80 percent, repairs and refurbishment of its fleet. The Naval , he also disclosed had also made requisitions to the Federal Government for needed assets and platforms to boost operations in the region.
According to him, some of the materials expected include operational vehicles, patrol boats and helicopters. He said the Navy would take delivery of some of the equipment in about two weeks.
He noted that weapons, arms and ammunitions were part of the problems faced by the navy in the region and said arrangements had been concluded for acquisition of the needed materials.
“I can assure you they (new weapons) will start trickling in very soon and will start flooding in before the end of the first quarter of next year,” he said.
He advised the officers and ratings of the Navy to maintain and make maximum use of the weapons they have, as failure to do so might be to their own detriment.
“Get hold of them and utilize them to maximum effect and of course observe that the first law of nature is self preservation. If you don’t use your weapon, somebody will use his own against you and you will not have the time to change your mind,” he said.
He expressed regret that the Navy had lost some men in operations in the region but said the Navy, with the assistance of Federal and state Governments and oil companies operating in the region, had been paying welfare packages to families of the affected servicemen.
Reacting to fears of possible reprisal attacks from Cameroon following the alleged attacks by militants against the gendarmes, Adekeye said there were no cause for alarm as the Navy was poised to protect the territorial waters of the nation.
Nigeria Failed in Major Policy Indicators, Says US
From Constance Ikokwu in Washington, D.C., 11.20.2007
The United States government has released a countries’ annual performance scorecard, with Nigeria failing in 13 of 17 major policy indicators.
Produced by the Millennium Challenge Corporation (MCC), a US government corporation designed to work with poor countries, the score-card found Nigeria’s commitment to policies that promote healthcare, control of corruption, education and economic freedom wanting.
It said Nigeria failed in policy indicators which include civil liberties, control of corruption, government effectiveness, rule of law, voice and accountability, immunisation rates, health expenditure, primary education expenditure, girls primary education completion, natural resource management, regulatory quality, land rights and access and trade policy.
The country, however, performed well in areas such as political rights, business start-up, inflation and fiscal policy. Nigeria’s West African neighbour, Ghana, failed only in three indicators – girls primary education completion, trade policy and fiscal policy.
Another West African country, Sierra-Leone, performed woefully on control of corruption, government effectiveness, rule of law, immunisation rates, health expenditures, primary education expenditures, girls primary education expenditures, natural resource management, regulatory quality, land rights access, business start-up, trade policy and fiscal policy.
In East Africa, Uganda failed in only two indicators – political rights and girls primary education completion, while Kenya failed in control of corruption, rule of law, immunisation rates, health expenditures and fiscal policy.
The MCC Board of Directors use the performance scorecard to pick countries eligible for two types of funding – Compact and Threshold assistance. Although Nigeria is not one of the major beneficiaries of US government's aid, the scorecard could be an indication of how that country views our progress in all these
areas. It could also be the basis for future engagement with Nigeria on other issues apart from financial aid.
Attack on Iran May Push Oil Price to $200’
11.19.2007
Venezuela President, Hugo Chavez, has warned against invasion of Iran by the United States of America. He said the current surge in crude oil price could drive it to $200 barrel should America decide to attack Iran over its Nuclear programme.
Speaking at the Third OPEC Summit in Riyadh, Saudi Arabia, Chavez said if the United States launches an attack on Iran or commit any aggression against Venezuela "oil price would not be $100 per barrel but $200".
The current price of $100 per barrel, he said, is fair enough. According to him, oil had lapped against the $US100-mark this month, prompting consumer nations to call on the exporter countries to help ease price pressure by providing the market with more crude.
He said OPEC should be a more active geopolitical agent that should demand more respect for its member countries by preventing more powerful countries from threatening the organisation.
An attempt by Iran and Venezuela to highlight concerns over the dollar's weakness at the summit was however rebuffed by other members of the group who voted the proposal out.
Gulf of Guinea: Nigeria, US Collaborate over Oil Theft
11.15.2007
The Federal Government is collaborating with the United States Government and some European countries in a bid to forestall crude oil theft in the Gulf of Guinea.
The collaboration would be under the aegis of the Gulf of Guinea Energy Security Strategy (GGESS).
Minister of Foreign Affairs, Chief Ojo Maduekwe, said this yesterday in a statement made available to the News Agency of Nigeria (NAN) in Abuja.
He said the GGESS would ensure that adequate care was taken to promote sustainable development, while exploiting the energy resources in the Niger Delta.
“The collaboration with the international stakeholders would also combat trafficking in smallarms and money-laundering, enhance maritime security and sustainable development,'' he said.
The minister said as a key player, economically, Nigeria had enormous stake in the resources of the region, adding that apart from the oil and gas, the region had vast marine resources to be harnessed and explored for the benefit of concerned parties.
“Nigeria cannot do this in isolation. Moreover, individual nations in the region can not also be allowed to exercise unrestricted independence in this direction,'' Maduekwe said.
He observed that due to theabundant resources, variedeconomic and militaryinterests were nowattracted to the area.
“It will serve Nigeria'sbest interest to ensurethat these interests donot, in their effort togain a foot hold, endangerthe peace of the region,''he said.
Meanwhile as part ofgovernment's commitment tothe successfulimplementation of GGESS, acommittee has been set upto monitor and facilitateits activities in Nigeria.
Membership of the Committeeinclude Office of the SFG,Ministries of Energy, Defence,Justice, Finance, Environment,Transport, Agriculture andWater Resources
.Others are Office of theNational Security Adviser,SSS, NIA, EFCC and NNPC.
US Industry Kicks against Energy Bill
From Constance Ikokwu in Washington, D.C. with agency report, 11.15.2007
A United States (US) energy bill that may negatively affect Nigeria and other oil-producing countries is receiving a serious kick by the country’s oil industry which claims it could cost it $16 billion over 10 years.
The industry has also released a study it says will cost the country roughly 4.9 million jobs if it pushes through plans to reduce dependence on foreign oil including that of Nigeria.
Nigeria surpassed Saudi-Arabia and Venezuela in March, this year to become the third largest exporter of oil to the US. It currently supplies 12 per cent of the country’s energy needs, a percentage that is projected to increase over the years.
But the instability in the Niger Delta and other oil-producing countries which has seen oil prices shoot through the roof has more than convinced US lawmakers of the need to wean the country of independence on foreign oil.
These volatile markets cannot be allowed to continue to affect pump prices in the country, they insist. Their plan however is met with stiff resistance by US oil industry which claims it could cost it $16 billion over 10 years.
The new study released by the American Petroleum Institute (API) says the energy bill will decrease the purchasing power of the average American by $1,700 by 2030, cause a net loss of 4.9 million jobs and a 4 per cent reduction of gross domestic product between 2010 and 2030.
The energy bill already under consideration in the Senate and House of Representatives will also cause a series of “shocks to the economy over time”, said the Vice President of CRA International, David Montgomery, whose firm carried out the research for API. US consumers’ reliance on petroleum-based products will bear the brunt, he stated.
Controversial aspects of the bill include plans to cut oil consumption by 10 million barrels a day by 2030, increase oil royalties and tax and prohibit price gouging. It will demand fuel efficiency standards for cars and trucks and encourage renewable sources of fuel such as corn and cellulosic ethanol.
The bill has bipartisan support with Republicans and Democrats supporting higher fuel efficiency standards.
While the study projects that jobs will be lost, other US experts argue that higher fuel efficiency standards could create more jobs in the auto industry. The reasoning is that automakers that supply new technology like lithium batteries for fuel efficient cars would definitely need more hands.
Opponents of the bill say it relies on technologies that are not yet commercially viable, in addition to limiting domestic oil and gas production.
The US Congress had passed a separate bill, the No Oil Producing and Exporting Cartels Act (NOPEC), in a desperate attempt to stop the alleged price fixing act of oil-producing countries. If passed into law, the bill will allow lawsuits to be brought against OPEC members in US courts.
President George W Bush has threatened to veto the bill. Opponents of the bill say it will damage US relations with many countries.
OPEC countries are Nigeria, Saudi-Arabia, Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Qatar, United Arab Emirates and Venezuela.
Gas Flaring: FG Restates Commitment to Deadline Mandate
From Fidelia Okwuonu in Abuja, 11.14.2007
The Federal Government has reiterated its decision to stop gas flaring by 2008, even as major oil producing companies appealed for more time.
Director, Department of Petroleum Resources (DPR), Mr Tony Chukwueke, said this at the 25th Annual International Conference of the Nigerian Association of Petroleum Explorationists (NAPE), adding that the 2008 zero gas flaring deadline would never be compromised.
However, Ms Kim Bates, Area Manager, ExxonMobil Corporation, on behalf of major oil producing companies, urged government to extend the deadline to 2010. Bates made the proposal, while speaking on "Gaps in the Gas Development Chain: ExxonMobil Perspective." He said the realistic flares down will be end of 2010.
Shell had originally proposed the 2007 date, which was adopted by the Federal Government after series of suspension of deadlines. She argued that ending flares would require continued cooperation between the industry and government.
Meanwhile, the Federal Government has targeted on-shore gas for domestic market.
Nigerian gas flaring accounts for 20 per cent of world total, which could be ended by 2008 by collecting associated natural gas and processing it into Liquefied Natural Gas (LNG), making the Federal Government to raise earnings from natural gas exports to 50 per cent of oil revenues by 2010.
Nigerian National Petroleum Corporation (NNPC) estimated that $15 billion in private sector investments was necessary to meet the countrys natural gas development goals by 2010.
Mark Is Their Answer "Block 3 2nd half "IF" 2008" Or Block 3 2nd half "IN" 2008?
Sao Tome and Principe: United States supports archipelago’s economy [ 2007-11-12 ]
Sao Tome, Sao Tome and Principe, 12 Nov – The United States and Sao Tome and Principe Friday in Sao Tome signed a memorandum of understanding within the scope of the US Millennium Challenge Account program worth an estimated US$8.6 million.
The document was signed by the deputy prime minister of Sao Tome and Principe, Maria Tébus Torres, who is also the minister for Planning and Finance, and by the US secretary of state for the treasury, Larry McDonald.
The US government representative said that the funding was essentially for improving tax policy indicators, modernizing tax and customs services as well as encouraging investment through “simplification and speeding up” of procedures to register a company.
The MCC is a body of the United States government aimed at supporting some poor countries, based on pre-set criteria and with a view to sustainable development through investments in education, health, infrastructures, industry, agriculture and fishing.
As well as the social sector and construction and repair of infrastructures, the USA also cooperates with the archipelago in the defense sector via technical assistance and training for the military, particularly those in the navy. (macauhub)
U.S.A.F. 65-68 Automatic Flight Controls Systems Specialist, Ubon Thailand.
An Air Force Salute to all who served.
U.S. Ship To Host Multinational Experts off African Coast
By Jacquelyn S. Porth
Maritime safety and security are focus of African training mission
The USS Fort McHenry arrived off the coast of West Africa in November to lead an international team of experts that will train African sailors to confront the daily challenges of illegal fishing, piracy, drug trafficking and oil smuggling.
The amphibious ship is the centerpiece of the new Africa Partnership Station (APS) initiative. During its seven-month deployment, it will serve as a floating platform in the strategically important Gulf of Guinea, where it will promote regional maritime safety and security.
The APS task group commander, Captain John Nowell, said the Fort McHenry can be used as a base "to bring together many nations" to achieve a shared vision through joint engagement. The floating school "will help us achieve common goals through partnership and collaboration," he said.
The Fort McHenry's commanding officer, Commander Martin Pompeo, said his crew and partners will work "together to help the western side of Africa ... prosper."
The West Africa program is modeled on a successfully completed Global Fleet Station mission in the Caribbean that helped promote port security and stronger borders in Belize, the Dominican Republic, Guatemala, Honduras, Jamaica, Nicaragua and Panama.
The vessel will make numerous port visits, beginning with Senegal, where it will conduct engineering training and focus on small boat handling for coastal security organizations. Additional stops are scheduled in Cameroon, Gabon, Ghana, Liberia, and Sao Tome and Principe.
En route to the region, the Fort McHenry augmented its passenger list with specialists from France, Germany, the United Kingdom and Spain and officers from Nigeria, Cameroon and Ghana. Denmark, Italy and Portugal are also providing military staff support.
The training teams will be working together to form what Admiral Henry "Harry" Ulrich has described as "a center of excellence" that will provide customized training. Ulrich, who heads the U.S. naval forces in Europe, says primary emphasis will be on the following maritime concerns:
- Domain awareness: Can you see what is out there?
- Professionalism: Do you have the right people to support maritime security and safety?
- Infrastructure: Is there the right mix of equipment and training to support it?
Enforcement: Are trained professionals ready to intervene if needed?
Ulrich said the idea is to import the best practices used elsewhere and set up "a system of systems" so that Africans will have the full range of skills "to patrol and maintain their own exclusive economic zones."
The initiative is supported by the U.S. National Oceanic and Atmospheric Administration (NOAA), the U.S. Agency for International Development (USAID), and the U.S. departments of State and Homeland Security.
African students will be ferried between their home ports and the Fort McHenry on a high-speed Swift boat. In a port call to Limbe, Cameroon, in December, 100 Cameroonians will embark for a two-week session for leadership and personnel training.
SHARED VISION THROUGH JOINT ENGAGEMENT
"We're looking forward to working with our partner nations in the Gulf of Guinea, exchanging ideas ... and further strengthening our ties," Nowell said. Passengers also will conduct community outreach by renovating local schools and medical clinics.
David Zimmerman, chief of security cooperation for the U.S. Coast Guard, told USINFO that its training will focus on port security, maritime law enforcement and small boat operations. Expertise in small boat tactics is particularly valuable, he said, for river and port security and coastal border patrol.
The Coast Guard will be providing a rotating team of four trainers and a staff officer. The continuous presence of the Fort McHenry will allow them, and other trainers, to reinforce what they have taught students with follow-up training.
Lieutenant Commander Peter Niles, a Coast Guard training manager, told USINFO that most of the countries the Fort McHenry is visiting already have an ongoing partnership with the Coast Guard through U.S. security assistance programs.
NOAA will train 30 Ghanaians in the spring to improve scientific data collection and the monitoring of fish catches. The training also will focus on endangered species, such as sea turtles, that should not be caught.
NOAA spokeswoman Monica Allen told USINFO that her agency has scientific and safety equipment onboard, but the trainers will join the ship in 2008. She said its activities support an important goal of the National Fishery Conservation Act calling on the agency to enhance international fishery cooperation.
USAID's personnel are not sailing with the ship, but will team up when it visits countries where there is a mission, such as Liberia, Senegal and Ghana. USAID plans to hold a bird flu conference in Ghana, and there are tentative plans to donate veterinary lab equipment.
Sao Tome and Principe: Fuel is largest import category in first half [ 2007-11-09 ]
Sao Tome, Sao Tome and Principe, 9 Nov – The Sao Tome and Principe authorities spent US$7.2 million on fuel in the first half of 2007, according to the archipelago’s National Statistics Institute (INE).
Figures forwarded to Macauhub from INE showed that fuel imports, particularly gasoline, diesel and oil, represented 21 percent of all imports between January and June.
Food products, agricultural products, with 16 and14 percent, respectively, were the next largest groups of imports.
Angola is Sao Tome and Principe’s largest fuel supplier via state oil company Sonangol, which acquired the Sao tome fuel distribution company Enco.
One of the largest consumers of fuel on the islands is electricity and water company EAE. (macauhub)
O.T. SSS Aborts Al-Qaeda Attacks in Nigeria
From Ike Abonyi in Abuja, 11.12.2007
Security reports at the weekend indicate that Nigeria may have been saved the horror of major terrorist attacks following the arrest of suspected terrorists believed to have links to the dreaded Al-Qaeda network.
THISDAY gathered last night that operatives of the State Security Services (SSS) who had been on the trail of some religious militants in Northern part of the country have aborted the intended attacks.
The group, according to the security source, was responsible for the recent attacks on police stations and some neighbourhoods in parts of the country.
The suspects were arrested in Kano, Kaduna and Yobe states with explosive-making devices, including bags of fertiliser and some quantities of firearms.
Sources at the SSS attributed the success in the operation that led to the arrest of the suspects to the recent changes in the service, especially the re-organisation and strengthening of the Anti-Terrorism Department and the prioritisation of the operational focus of the intelligence body.
As at last night, it was not clear where and how the militants wanted to attack but a source said some Western interests in the country might have been their target.
Operatives are also looking into the possibility of the group having backers from religious groups in the country.
THISDAY gathered that since the change in leadership of the country as well as the SSS, some changes have been aimed at repositioning the service for “more responsiveness and more professionalism”.
Efforts to get more information on the operation regarding the names and photographs of the arrested religious militants last night proved abortive.
Spokesman of SSS, Mr. Ado Muazu, confirmed the arrest and said suspects were in custody in Abuja.
The Sultan of Sokoto, Alhaji Sa’ad Abubakar III, is said to be in the US currently discussing the issue of terrorism on the invitation of the American government.
Since the terrorism war became full blown, Nigeria has not recorded any case in spite of continuous warning from European Union and the United States of America (USA) to their citizens against possible attacks by the religious militants.
Just before this year’s commemoration of the September 11 terrorist attacks on the US by the Al-Qaeda Network, the American Consulate in Lagos had raised alarm over a threat on Western and US interests in Nigeria.
In June 2005, a similar warning had led to the closure of embassies in Lagos and Abuja for some days, a move which a US military spokesperson, Major Holly Silkman, speaking from Dakar, Senegal, had confirmed thus: "There was some kind of threat made and it was through telephone call."
This year, the US mission said it had received information that American and other Western interests in the country were at risk. It did not give the name of any group behind the plot.
A press statement issued then by the Consulate said potential targets included diplomatic buildings and businesses in Abuja and Lagos.
Also, last month, SSS operatives arrested two men in Kano suspected to be members of Al-Qaeda. The men whose names were given as Abubakar Haruna and Isah A. were said to be in their twenties.
They were picked up in Kano following weeks of intense intelligence gathering linking them with visits to several countries suspected to have contacts with known terrorist networks, particularly, Algeria.
UN to Launch Oil Contamination Assessment in Southern Nigeria
The United Nations environment and development agencies are joining forces to <" http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=521&ArticleID=5692&l=en">launch a comprehensive assessment of oil contamination in the Ogoni region of the Niger Delta as part of a broader Nigerian Government-led peace and reconciliation programme.
Exploration and production of oil in the area, which began in the 1950s, were suspended in the 1990s due to public unrest. Spills from this period are still problematic, and the lack of maintenance and damage to infrastructure has led to further contamination in the past 15 years.
UN officials are in Abuja today to finalize details of the project, expected to be completed at the end of next year, which seeks to ascertain the nature and extent of oil contamination in <" http://postconflict.unep.ch/ogoniland/mission.html">Ogoniland.
They are meeting with other UN agencies in the country as well as the Nigerian Minister of Environment, representatives from the National Oil Spill Detection and Response Agency and the Shell Petroleum Development Company of Nigeria.
"The assessment will seek to identify, evaluate and minimize the immediate and long-term human, social, health and economic impacts of oil contamination in Ogoniland, as well as those related to environmentally and economically important ecosystems," said UNEP Executive Director Achim Steiner.
Teams of international and local experts will carry out assessments in more than 300 sites to determine oil's impacts on land, water, agriculture, fisheries and in the air, as well as its effects on biodiversity and human health.
The project, based in Port Harcourt with smaller offices in Eleme, Tai, Khana and Gokana, seeks to benefit the community through employment and capacity-building activities.
After the teams report their findings, environmentally acceptable recommendations will be made to remedy the situation.
The new initiative comes following a request from the Nigerian Government, and will be conducted by the Post-Conflict and Disaster Management Branch of the UN Environment Programme (<"http://postconflict.unep.ch">UNEP). It will operate within the Programme Framework for Improving Human Development in the Niger Delta, led by the United Nations Development Programme (<" http://www.undp.org">UNDP).
Source: United Nations
judythpiazza@newsblaze.com
Oil ShockWave Underscores Dangers of U.S. Oil Dependence
Secretary Rubin: Risks to Economy and Security "Profound"
WASHINGTON, Nov. 1 /PRNewswire-USNewswire/ -- Securing America's Future Energy (SAFE) today conducted Oil ShockWave to simulate a global oil supply crisis and explore economic and strategic options for limiting the damage that could be inflicted by a major interruption of the flow of oil.
Former U.S. Treasury Secretary Robert E. Rubin, who led the simulation, remarked, "Oil ShockWave demonstrates the critical importance of preventative action in mitigating the risks of oil dependence. Once a major supply crisis occurs, the short-term options are extremely limited.
"The profound nature of the risks to our economy and security argue for concerted action to enact a national energy policy designed to reduce oil dependence."
In addition to Rubin, participants included: former Deputy Secretary of State Richard L. Armitage; CENTCOM Commander General John P. Abizaid, U.S. Army (Ret.); former U.S. Secretary of the Navy and 9/11 Commission Member John F. Lehman; 9/11 Commission Executive Director Dr. Philip D. Zelikow; former White House Press Secretary Mike McCurry; former EPA Administrator Carol Browner; and Pulitzer Prize-winning author Daniel Yergin.
In the simulation, unrest in Azerbaijan and Nigeria and souring relations with Iran combined to eliminate approximately 1% of world oil production, causing prices to top $160 per barrel. Designed by finance, energy, and national security experts, the scenario illuminated the fragility of the global oil market. With spare supply capacity almost non-existent and global demand continuing to surge, relatively small disturbances can inflict tremendous damage upon oil consumers.
This critical finding comes as Congress is debating whether to enact legislation that meaningfully reduces U.S. oil dependence.
The consequences of the oil-market disruptions in the simulation included gas prices in excess of $5.00 per gallon, two quarters of negative economic growth, double-digit inflation, and dramatically slower job growth. As the participants grappled with the crises, these economic outcomes severely constrained U.S. foreign policy options.
"We cannot afford to govern reactively or legislate the lowest common denominator. We hope that Oil ShockWave will help this critical policy issue become a critical political priority," said Robbie Diamond, founder and president of SAFE.
SAFE is an action-oriented, nonpartisan organization that aims to reduce America's dependence on oil and improve U.S. energy security in order to bolster national security and strengthen the economy.
Securing America's Future Energy
Web site: http://www.secureenergy.org/
Gas Shortage: Nationwide Blackout Looms
By Chika Amanze-Nwachuku, 11.01.2007
Egbin Power Station Shut
Indications emerged last night that the current shortage in power supply being witnessed in parts of the country since last week, may soon result in a total black out, as the Nigeria Gas Company (NGC) has shut down gas supply to Egbin, Delta and Geregu Thermal Power Stations.
Consequently, the Egbin Thermal Station with the capacity to generate 1,320MW of electricity has been completely shut down resulting in the loss of 800 MW. The gas powered stations depend on the gas company as their source of gas supply.
Power outages resurfaced in parts of the country since mid October, when the Utorogu Gas Plant belonging to the Shell Petroleum Development Company (SPDC) was shut down following the fire that gutted the 10-inch Utorogu-Ughelli Pumping Station condensate trunkline.
The fire incident which was said to have been caused by Niger Delta youths had resulted in the deferment of some 300 million standard cubic feet of gas.
However, the fire was put out a few days after by the oil giant, which also carried out a repair work on the condensate trunkline.
Soon after the repair, the company was said to have discovered that there were still some leakages, a development which forced it to again shut down the gas plant, which also supplies gas to the power plants.
A Shell source confirmed yesterday that the oil giant is yet to lift the Force Majeure which it declared on gas supplies to the national grid in the wake of the fire incident. Force majeure is a legal condition which protects a company from not meeting contractual delivery obligations.
“The line was repaired shortly after the incident. But when we discovered these new leakages, we were forced to shut down the gas plant again. The line is in swampy area and a lot of logistics need to be put together to do the work.
“We are working round the clock to bring the line back. The 300mscf of gas is still deferred and the force majeure is still in force” the SPDC source said. The shut down of the Utorogu gas plant, which culminated in the shut down of gas to the thermal stations and eventual shut down of the Egbin power station has been criticized by the Power Holding Company of Nigeria, which often blamed its woes on frequent shut down of gas supply to the power stations by the gas company.
Reacting to the recent development in a statement to THISDAY last night, the power company explained that the shut fall in gas supply to the power stations which started on October 15, led to generation limitations thereby giving rise to the on-going load shedding.
“The Management of the Power Holding Company of Nigeria Plc (PHCN) regrets the inconveniences being experienced presently by its customers nationwide.
The shortfall in gas supply to Egbin, Delta and Geregu thermal power stations by the Nigeria Gas Company (NGC) which started on 15th October, 2007 led to generation limitation thereby giving rise to the on-going load shedding.“This has resulted to a total shut down of Egbin Power Station with the loss of 800MW. While we are sensitive to the plight of our customers, we wish to reiterate that the prevailing situation is due to factors beyond our control. Meanwhile, we appeal to our esteemed customers to please bear with us at this critical period and we assure that power supply will improve as soon as gas supply from the Nigeria Gas Company is restored” the PHCN said in a statement.Nigerians have been groaning in darkness notwithstanding the huge amount of money invested in the power sector by successive governments. President Umaru Musa Yar’Adua who was said to have not been impressed by the performance had threatened to declare a state of emergence in the sector. The Federal Government had a few days ago categorically stated that it lacks the funds to revamp the energy sector , although it hopes to partner with investors to turn things around. A step in that direction was a recent meeting with German Government on how the foreign experts could help revamp the energy sector.
Attack on Warship: 7 Pirates Killed, Says Navy
From Juliana Taiwo in Abuja, 11.01.2007
Nigerian Navy yesterday reacted to reports on the attack on its warship, NNS Obula by militants, maintaining that the attackers were "Sea robbers" and seven of them were killed.
Reacting to the Wednesday early morning attack, Director, Naval Information, Captain Henry Babalola, said contrary to the claim of the “sea robbers," the attack happened not at an oil rig, but in an area where fishing trawlers largely operate.
Babalola confirmed the death of one of the Naval personnel on “look-out duties” on board the Naval vessel, adding that security men on guard the ship “immediately opened fire, resulting in the death of seven sea robbers, while the remaining boats fled.”
He said the whole idea of the attacks was to scare the fishing trawlers into believing that the Navy was incapable of protecting them, saying unfortunately, “this has fallen flat on their face as NNS Obula, joined by other ships are still on task.”
While calling for political solution to the Niger Delta problem, he warned of dire consequences, “if sea robbers and other miscreants do not desist from attacks,” on its facilities.
The Navy said its matured restraint should not be mistaken for lack of fire power to curtail illegalities in the Niger Delta.
The statement reads: “the Nigerian Navy’s attention is drawn to the rather distorted version of her ship, NNS Obula's encounter with sea robbers posing as militants off Finnuwa oil fields in the early hours of October 31, 2007. The ship was on routine patrol in an area where fishing trawlers largely operate due to upsurge in attacks on trawlers, when a look-out on the ship observed that a boat was approaching menacingly.”
He raised an alarm and he was killed instantly. Security men on guard immediately opened fire, resulting in the death of seven sea robbers, while the remaining boats fled.
“The whole idea is to scare the fishing trawlers into believing that the Navy was incapable of protecting them. This has fallen flat on their face as NNS OBULA, joined by other ships are still on task. The Nigerian Navy reiterates that it will continue to perform her statutory functions and warns of very dire consequences if sea robbers and other miscreants do not desist from attacks on their facilities. The need for political solution to the Niger Delta problem and the matured restraint from the Nigerian Navy should not be mistaken for lack of fire power to curtail illegalities in the Niger Delta," he warned.
Nigeria, US’ Strategic Partner, Says Campbell
11.01.2007
Former United States Ambassador to Nigeria, John Campbell, has said that Nigeria remains an indispensable partner of the United States.
"Our ties are thick, rich and valuable," he said during an audience with Governor Ibrahim Shekarau of Kano State.
Shekarau is leading a government delegation and a group of businessmen from the state on a visit to the US aimed at fostering economic and educational relations with some US cities.
"The US regards Nigeria as an indispensable partner, always ready to work with it to promote growth and development and to also achieve global peace and security," Campbell said.
He said due to the importance the US Government attached to Nigeria, it constructed one of its biggest chanceries in the world in Abuja, adding that "we are also relating well with the present government to stabilise democratic governance," Campbell said.
He commended Nigeria's role and contributions to regional and international peace-keeping and support to international organisations.
Campbell said the U.S. government would encourage American investors and corporations to invest more in Nigeria by exploring the non-oil sectors."
Although, there are so many American investments in Nigeria than in any other African country, they are more in the area of oil and gas industry.
So we want our investors to venture intoother sectors in the country. It is now our intention to focus investments on new areas that will employ more labour to enable Nigerians to be gainfully employed, as well as check poverty."With more American investments in the non-oil sector, it will help Nigeria's economic growth and open up larger market access for U.S. investors," he said.Responding, Shekarau thanked Campbell for being a goodfriend of Nigeria and commended him for "asuccessful and fruitful tenure," in Nigeria.
Hope Rises for Lower Oil Price as OPEC Increases Output
By Chika Amanze-Nwachuku, 11.01.2007
Nigeria and other members of the Organisation of Petro-leum Exporting Countries (OPEC) will today effect the 500,000 barrels per day (bpd) output increase agreed by ministers of the organisation in September.
By this development, Nigeria ’s total output is expected to rise by eight per cent of the new output which translates to a little below 40,000 bpd.
The increase is expected to reduce the pressure on oil price which hit a record $94 yesterday.
Nigeria’s production allocation before the rise in output stood at 2.3 million bpd, but the figures have remained unstable between 2.1m bpd and 2.2million bpd due to the crisis in the Niger Delta which often resulted in production shut-in.
OPEC at its 145th meeting on September 11, in Vienna, Austria , raised output by 500,000 barrels per day, with effect from today (November1). The output increase which was a fallout of a resolution passed by member countries brought total crude oil output to over 27.2 million bpd.
However, oil-rich Iran and Angola which were admitted as members last year were excluded from the new output production.
“From today, all OPEC members, except Iraq and Angola will aim to ship 27.253 million bpd of oil onto the 86 million bpd global market and if Iraq and Angola’s production were added, OPEC will be pumping nearer 31 million bpd”, an analyst told THISDAY last night.
Also contacted, the Group General Manager, Public Affairs, Nigerian National Petroleum Corporation (NNPC), Dr. Levi Ajuonuma, confirmed that Nigeria, like other affected countries, heeded the directive that same September 11, adding that the new output automatically takes effect from today.
Announcing the rise in output in Vienna, the organisation’s Secretary, Abdalla El Badri, had explained that the decision to increase output was as a result of a consensus reached by the member countries, adding that the high demand winter season necessitated keeping the market adequately supplied.
“To this end, the Conference decided to increase the volume of crude supplied to the market by OPEC member countries (excluding Angola and Iraq ) by 500,000 bpd, effective 1 November 2007,” he said.
BBC website reported yesterday that oil prices hit a new record of $94 a barrel as US government data showed a surprise fall in crude stockpiles for the second week in a row.
New York light crude jumped $3.62, or 4 per cent, to $94 a barrel, while London Brent traded at $90.74 a barrel, up $3.30, in late afternoon trade in Europe.
The US government's figures showed that domestic crude stocks fell by 3.9 million barrels last week.
Analysts had forecast an increase of 100,000 barrels.
"I am very surprised, the crude number is insanely bullish, it's a big drop, for the second week in a row," said Mike Wittner, global head of oil research at SocGen in London.
The US is the world's biggest energy consumer and therefore, the state of its inventories is a key concern.
Over the course of Wednesday, prices rocketed by as much as $4 to $5 in highly volatile trade. An array of factors have been driving oil prices higher.
Oil prices have risen as the sliding greenback makes oil, which is priced dollars, cheaper to buy outside the US. The dollar hit its weakest levels against the pound since 1981 on Wednesday.
At the same time, oil investors have been casting a nervous eye on Turkey's threats to carry out a major military incursion into northern Iraq to attack Kurdish rebels.
In past months, there have also been concerns about the stop-start violence in Nigeria's main oil producing region, the international community's unresolved nuclear dispute with Iran and heating supplies for the US winter.
Mexico was forced to halt one-fifth of oil production at the start of the week by a tropical storm hitting its Caribbean coast, sparking further supply fears, but it now expects to resume full production by Wednesday next week. Some analysts expect crude prices to hit $100 a barrel before the end of the year.
Militants Attack Naval Warship
From Ahamefula Ogbu in PortHarcourt and Segun James in Yenagoa, 11.01.2007
In what looks like an upsurge in militant activities in the Niger Delta region, a Naval warship was yesterday attacked leaving one personnel dead and five other injured. The ship, NNS Obula, was deployed to secure the EA field, an offshore facility belonging to Shell Petroleum Development Company (SPDC)
The Movement for the Emancipation of the Niger Delta (MEND) has claimed responsibility for the attack, saying it wanted to prove to oil companies in the region that military presence could not deter them from carrying out any action if they so wished.
However, Major Omale Ochagwuba, the spokesman of the Joint Task Force, said the attack at Funiwa Offshore Oilfied left six military men injured and one militant killed. He was silent on the death of any naval officers.
The MEND statement, sent via e-mail and signed by Gbomo Jomo, described the Nigerian Navy as “incompetent”, especially in night warfare.
MEND said it was willing to wreak more havoc unless justice was done in the region.
“On Tuesday, October 30, 2007 at about 2100hrs, an elite commando unit of the Movement for the Emanci-pation of the Niger Delta (MEND) attacked the Nigerian Navy Ship Obula stationed to protect the EA oil fields in Bayelsa State of Nigeria.
“The attack was to again proof to the oil majors and the Nigerian government that the presence of the Nigerian military in the Niger Delta cannot deter an attack nor provide protection for oil facilities when we decide to attack them. It is only the presence of justice that can.
“The NNS Obula was a sitting duck and this attack again exposed the incompetence of the Navy; especially in night time warfare. During the last military exercise, the Chief of the Naval Staff [Admiral Ganiyu Adekeye] admitted that ‘due to the presence of fog’ the exercise had to be called off.
“We found that statement laughable, ridiculous and pathetic considering the fact that our fighters can navigate in pitch darkness at speeds of up to 180 km/hr.
“All commandoes have since returned to camp without any casualties from our side,” it said.
MEND had carried out an attack on a floating storage, processing and offloading facility where it took three expatriates hostage a week ago.
The EA field is off the coast of Bayelsa State and had stopped production about two years ago until Shell moved to repair and re-man the facility. It sent two oil servicing companies to the site for the repairs where three of their expatriate staff were kidnapped.
MEND fighters had stormed the facility with over 30 speed boats armed with sophisticated weapons and had taken the hostages, vowing not to release them until their Leader, Mr. Henry Okah, held in an Angolan jail, was released.
One Don Pedro had issued a statement claiming that MEND was responsible for the attack, a claim that was later substantiated from the MEND official address though it denied that the attack was led by Pedro.
The hostages were released after three days without word on what transpired that led to the early release of the hostages which, going by the practice of kidnapping in the region, was hasty.
Management of oil revenues is a matter for everyone, says president of Sao Tome and Principe [ 2007-10-30 ]
Sao Tome, Sao Tome and Principe, 30 Oct – The president of Sao Tome and Principe, Fradique de Menezes, Monday called on the population of the archipelago to be vigilant of the management of oil revenues, which should be used for the country’s development.
Menezes was speaking at the opening of a regional meeting on management and transparency in the use of oil funds, which has brought together around 30 delegates from several organizations and Angola, Mozambique, Guinea Bissau, Nigeria, the United States, the United Kingdom and Sao Tome and Principe.
The regional meeting, organized by the United Nations Development Program (UNDP), by British non-governmental organization International Alert and by the international coalition “Publish what you Pay,” mainly aims to boost the capacity of civil society to deal with issues related to good management and transparent use of funds from oil.
Menezes noted that “it is civil society itself that should organize itself to be able to discuss this issue of national interest and good use of the country’s money.”
After providing a summary of the Sao Tome oil exploration process, which began over a decade again, Menezes noted there had been several “technical errors,” that had harmed national interests during negotiations with foreign companies due to a lack of qualified staff in the oil industry.
As well as its exclusive area, Sao Tome and Principe also has a joint exploration area with Nigeria based on a treaty stating that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome. (macauhub)
Local contractors in oil sector get deadline to join JQS
THE Nigerian Petroleum Exchange (NIPEX) has given all contractors in the oil and gas sector until December 31 to register with the Joint Qualification System (JQS).
Dr. Makainti Banu, the Group General Manager of the National Petroleum Investment Management Services (NAPIMS), issued the directive recently in Eket, Akwa Ibom State, while speaking at a supplier awareness workshop on JQS.
Banu said after the deadline, only companies that are duly registered with NIPEX that would be allowed to handle contracts in the oil sector.
"After December 31, international oil exploration companies in the NNPC Joint Venture Projects must source all their contract needs from the JQS operated by the Nigerian Petroleum Exchange (NIPEX)," he said.
NIPEX, an initiative of NAPIMS, was established to serve as a clearing house for contracts in the oil sector.
From January 2008, NIPEX will serve as the only point where oil companies can source materials from vendors. It is an electronic market place where operations are done online.
Banu, who spoke through Mr. Hilary Akpan, NNPC's Manager in charge of JQS, explained that the system was designed to expand business opportunities for indigenous contractors in the oil and gas sector.
He stated that the system would ensure a uniform electronic contract procurement system for the industry.
"The objective is to reduce the procurement cycle," he said.
Under the online system, a service provider does not have to register with individual oil company as the companies will now rely on the JQS database to select pre-qualified contractors, Banu clarified.
The News Agency of Nigeria (NAN) reports that more than 800 suppliers and representatives of oil servicing companies attended the sensitisation workshop.
In her overview of the JQS, Mrs. Oritsemeyiwa Eyesan, Head of Customer Exchange, told participants that the system was meant to reduce the processing time and cost of contracting processes in the oil and gas sector.
"This is a system where both suppliers and buyers are sure of fast, transparent and efficient process as every contract will be sourced from our online electronic database. It is hoped that this scheme will expose suppliers to more business opportunities," she said.
Eyesan told NAN that both NIPEX and the Local Content Department of the NNPC would ensure that the system strengthens the capacity of host communities' contractors in line with the local content policy of the Federal Government.
She said 278 suppliers had so far indicated interest to register while only 140 had completed the process.
Some of thecontractors who spoke to NAN, called for an extension due to what they claimed, as low level of information.
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Transparency of oil revenues under debate in Sao Tome and Principe [ 2007-10-26 ]
Sao Tome, 25 Oct – Sao Tome and Principe between October 29 and 31 is to host a national meeting on the management of oil revenues at the same time as a regional civil society meeting to boost its role in transparency, officials said in Sao Tome Thursday.
The regional meeting, organized by the United Nations Development Program (UNDP), by British non-governmental organization International Alert and by the international coalition “Publish what you Pay,” will bring together around 30 delegates from several organizations and Angola, Mozambique, Guinea Bissau, Nigeria, the United States and the United Kingdom.
The regional meeting on oil revenue management will deal with the contribution of civil players in order that these resources be used for economic growth and poverty reduction.
The organization noted that in the case of Sao Tome and Principe, “we are trying to ensure that its future oil riches will contribute to development, introducing appropriate legislation to ensure the transparent management of revenues.”
The participants will take part in a round table meeting on the best way to speed up the implementation of Sao Tome legislation, with the creation of a Oil Supervisory Commission and an Office for Records and Public Information. (macauhub)
Cocoa exports fall in Sao Tome and Principe [ 2007-10-23 ]
Sao Tome, Sao Tome and Principe, 23 Oct – Sao Tome and Principe netted just over US$1 million from cocoa exports in the first half of 2007, which accounted for 97.1 percent of the country’s exports in that period, according to the archipelago’s National Statistics Institute (INE).
According to the National Statistics Institute (INE), cocoa exports saw a year on year fall of 0.9 percent against the same period of 2006.
In terms of quantity, there was a fall of 15.9 percent in the period with cocoa exports falling from 966.4 tons in the first half of 2006 to 812.7 tons in the first half of 2007.
In the list of exports from Sao Tome and Principe in the first half of 2007, following cocoa, are coconut and coconut flowers and coconut oil.
The list of buyers of Sao Tome cocoa in the period was headed by the Netherlands, which purchased 275 tons, followed by Portugal, with 232 tons and France with 149 tons.
Cocoa was introduced by Portuguese colonists to Sao Tome in the 19th century and its production levels have been falling over the last few decades due to lack of land on which to grow it, lack of financing and a lack of rigour in the treatment of the plantations. (macauhub)
Gas-flaring: FG Raises Penalty to $100/Mscf
By Chika Amanze-Nwachuku and Fidelia Okwuonu, 10.24.2007
Determined to put an end to gas-flaring by 2008, the Federal Government has raised its penalty from N10 to N12,700 per million standard cubic feet of gas (Mscf), effective from January 2008.
Speaking yesterday at a gas conference, organised by the Nigerian Energy Digest in Lagos, Director, Department of Petroleum Resources (DPR), Mr Tony Chukwueke, said oil companies would only be allowed to flare gas from their oil fields after reaching an agreement with the Federal Government to pay $100/Mscf.
He said when the policy will be enforced on January1, 2008, $500/Mscf would be paid by oil firms for false declaration of volume of gas flared, and warned that “no excuse will be tolerated from any oil firm flaring gas without the approval of the Federal Government."
He said the policy is part of the new measures put in place by the government to stop oil producing firms from flaring associated gas and ensure strict compliance with the 2008 deadline, adding that Associated Gas (AG) flare down was an agreement reached with captains of oil and gas industry in 1998.
According to him, oil and gas stakeholders agreed with the Ministry of Environment that they would achieve flare down by 2004, but that his department knowing the complexities of achieving the task, extended the deadline to 2008.
He, however, explained that the AG re-injection decree would be further amended before the January 2008 date, to ensure success of the policy, contrary to failure of Decree 99 of 1979, promulgated to encourage gas re-injection and achieve flare down by January 01, 1984
Why US Troops’re in Gulf of Guinea, By Azazi
From Ike Abonyi in Abuja, 10.24.2007
Chief of Defence Staff, Lt. General Andrew Owoye Azazi yesterday allayed the fears of Nigerians on the continued presence of United States military in the Gulf of Guinea.
Speaking at a forum in Abuja on Tuesday, the Defence chief said that Nigerians should not get unnecessarily worried over the matter as the troops are there just to give peace in the area. General Azazi said that US likes to have relative peace anywhere they have business interest.
“US wants relative peace to be able to undertake their business” he said pointing out that there is no other motive behind their troops presence to worry anybody.
On the Niger Delta situation, the Defence chief said that military have lost sizeable number of personnel in the troubled region but refused to give the exact figure of casualties. He said that Nigerians should not expect a military solution to Niger Delta problem but assured that the military will try to stabilize the place for the much-needed political solution.
On the intelligence capability of Nigeria military to cope with the Niger Delta situation, General Azazi said the military have it but noted that successful intelligence work depends largely on the people and their willingness to give information.
General Azazi also spoke on the role of the military in the last general election and said that they were only asked to ensure stable environment for the poll to take place.
The Chief said that a guideline was drawn out for those military personnel who participated in ensuring stability during the elections.He noted that most of the allegations of military involvement cannot be substantiated but assured that any obvious case will be dealt with in a military way.
“We will deal with the identified ones” but wondered how it can be substantiated. On whether killers of Nigerian peace keepers in Darfur, Sudan have been apprehended as promised, General Azazi said that the promise was made by Sudanese authorities but they are yet to get back to them on it.
He refused the suggestion that Nigeria should reconsider their peace keeping role in Africa because of casualties saying that the country is committed to global security but said there is need to ensure a policy that will protect the interest of the country.
The defence chief also assured that after eight years of democracy the nation’s military has been fully depoliticised. “We are completely depoliticised we have a purely professional military now” he declared. He blamed the continued problem of retired military personnel in collecting their pensions on what he called improper documentations and hoped that the new pension policy will help address it.
The General also explained the cause of discrimination against military personnel withHIV saying that there is a general rule in the system that one must be of very healthy before he can embark on the rigours of the training.On the e-recruitment being applied by all the services of the military , General Azazi said it has been going on fine except the initial problem that usually come with such innovations.
WallDog With The Bees Dying Off, This Might Not Be True Either...
"The USA is in a very good position, actually...the bread basket of the midwest will sustain this country, with food and fuel...but the country will be vastly scaled down and different."
Militants Attack Shell facility
• Seize 3 expatriates, 4 Nigerians
By Our Reporters, 10.22.2007
After what seemed like a lull, armed militants believed to be members of the dreaded Movement for the Emancipation of the Niger Delta (MEND) have launched an attack on a Floating Production Storage and Offloading (FPSO) vessel belonging to Shell Petroleum Development Company of Nigeria (SPDC) at EA field, off the shore of Bayelsa State.
They kidnapped seven persons in the process.
A Shell Spokesman, Mr. Precious Okolobo, who confirmed the attack, said those taken hostage were four Nigerians, a Croatian, a Briton and one Russian, who are all contractors to the oil giant.
According to him, the contractors were carrying out maintenance work on the facility preparatory to when activities would resume when the militants struck last Saturday night.
The EA field with the capacity of producing 115,000 barrel per day has not been producing since the production from the Sea Eagle FPSO was suspended in February, last year.
Speaking with THISDAY on telephone last night, Okolobo stated that the weekend’s attack had prompted the Royal Dutch company to evacuate its staff for safety reasons.
“We are concerned about the safety of the staff and our thoughts are with those taken away and their families at this difficult time. We are concerned about the safety of the staff of these contracting firms and wish they will be released safely on time. We are supporting efforts of government and their employees to secure their release,” Okolobo said.
However, THISDAY checks have revealed that the abducted men were working for two firms, Hydro Dive and Reson Interoil, contracting for SPDC.
The expatriates taken hostage are Captain Theo Courtriers (Russia), Lee Mamamara (USA) and Mate Lusa (Croatia).
MEND has also vowed to map out strategies which would enable it hit at Angola and any of that country’s interests in Nigeria for holding its Commander, Henry Okah, alias Jomo Gbomo, in criminal detention.
The group said Angola and its interests had become enemies of the Niger Delta.
There are conflicting information, however, since MEND in an online press release admitted that it carried out the attack but only acknowledged seizing the expatriates.
The group was silent on the four Nigerians said to have been held hostage as well
MEND which blamed the Angolan government for the resumption of the attack in a statement by the Commander of the operation; one Don Pedro, admitted taking three hostages from the attack which took place around 8.45pm Saturday night.
Information available to THISDAY said the militants swarmed the facility in over 30 speed boats armed to the teeth with assorted weapons which elicited no resistance from their victims before they took their preys away into the creeks.
“Yesterday, at about 8.45pm Nigerian time, combatants and operatives of the Movement for the Emancipation of the Niger Delta (MEND) successfully attacked an EA field vessel belonging to Shell Petroleum Development Company taking away three hostages,” the online statement said.
“The names of the hostages are Capt Theo Courtriers (Russia), Lee Mcmamara (USA ) and Mate Lusa ( Croatia ).This campaign is in direct response to the insincerity of the Nigerian state and the international community to honour and respect the travails of the people of the Niger Delta and provide privilege to those who lead the agitation for a better Niger Delta.
“The Angolan government must therefore accept full responsibility for this onslaught. By holding in criminal detention a key stakeholder in the Niger Delta struggle, the government of Angola has crossed a line that they may never be able to go back on. For in due time, our campaigns will be strategically focused on Angolan concerns in Nigeria . We are building a list of these at the moment,” the group warned.
Pedro insisted that Okah was being held in detention “with the connivance of the Nigerian government even when there was no evidence of any criminality against him.
“How warped? This madness will not be hurriedly forgotten. There will be no warnings for the things that we shall do in the time to come,” Pedro said.
He claimed that the Angolan government had tried to rope in their leader in criminal offences, but the law courts of that country absolved him of all allegations and wondered why they were still keeping him in jail without any offence.