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Cape Verde wants to set up partnerships with Sao Tome and Principe [ 2007-08-16 ]
Sao Tome, Sao Tome and Principe, 16 Aug – Cape Verde wants to set up a partnership with Sao Tome and Principe in the fisheries and agricultural sectors, Cape Verde's consul in Sao Tome told Macauhub Wednesday.
José Silva made the statement at the same time as announcing the visit of Cape Verde’s prime minister, José Maria das Neves, to Sao Tome scheduled for Friday.
On his seven-day visit to Sao Tome and Principe, Neves will be accompanied by some members fo his government including the Foreign Minister and the secretary of state for Agriculture, as well as by a group of businesspeople.
Speaking to Macauhub, the Cape Verdean consul said that Neves’ visit would focus on a joint analysis with Sao Tome and Principe on how to set up partnerships in the fisheries and agricultural sectors..
Silva also said that a partnership that would essentially focus on the preservation and sale of fish would involve fishing for tuna and other species available in the waters of Sao Tome and Principe.
As well as the contribution of Sao Tome, the fishing interests of Cape Verde may involve private Cape Verdean company Atlantic Tuna, which specializes in treating and canning fish.
In the agricultural sector Cape Verde wants to establish a sea line with Sao Tome and Principe in order to transport agricultural products from Sao Tome to foreign markets, particularly Europe, via Praia, the capital of Cape Verde..
“Based on a partnership, cape Verde can help to transport goods abroad and prevent the usual situations in which supply exceeds demand, which affects Sao Tome farmers,” Silva said.
The visit by the Cape Verde prime minister also aims to boost cooperation in the areas of education, health and public administration.
It is estimated that a third of the population of Sao Tome is of Cape Verdean origin and they are mainly dedicated to agriculture and have plots of land granted by the Sao Tome authorities as part of a privatization policy launched just over 14 years ago. (macauhub)
I Never Realized The Scope Of The Mans Influence. SEO steps down & all the markets are crashing? Gold, Silver, Oil, Dow, NAS, everything Down. lol
Chevron to Face Trial in US over Nigeria Killings
From Constance Ikokwu in Washington DC, 08.16.2007
In a landmark development which could open the door for a flood of lawsuits against oil companies operating in the country, Chevron Nigeria Ltd is to stand trial later this year in the United States for the alleged murder of villagers in the Niger Delta region in two separate incidents in 1998 and 1999.
In a series of ruling issued yesterday, the United States (US) District Court Judge in San Francisco, Susan Illston, ruled that Chevron was directly involved in the alleged attacks by acting in consonance with Nigerian government security forces, paving the way for a trial which the company had made spirited attempts to avoid for eight years.
The lawsuit was brought against Chevron eight years ago in San Francisco Federal Court by nine Nigerian plaintiffs for alleged deaths and other abuses in the two incidents in 1998 and 1999. The plaintiffs assert claims ranging from torture to wrongful death.
According to information made available to THISDAY, Judge Illston “found evidence that CNL [Chevron Nigeria Limited] personnel were directly involved in the attacks; CNL transported the GSF [Nigerian government security forces], CNL paid the GSF; and CNL knew that GSF were prone to use excessive force.”
The report alleged that the crime occurred when the Nigerian Military and Police were paid by Chevron to shoot and torture protesters opposed to the company’s activities in the troubled region. Chevron helicopters and boats were used by the security forces, resulting in torture and wrongful death, it further alleged.
The said evidence, the Judge said, will allow a jury to find that Chevron knew the attacks would happen and supported the military’s plan.
“We're pleased that our clients will finally get justice for Chevron's crimes," said the plaintiffs' counsel Theresa Traber, partner at Traber & Voorhees.
Continuing, she said, "Chevron conspired with and paid the notorious Nigerian military to attack our clients and their loved ones, murdering at least seven people, torturing others and burning two villages to the ground. The court correctly refused to let narrow legalistic excuses allow Chevron to escape responsibility for these brutal attacks."
In his statement, the Litigation Co-ordinator for EarthRights International, Rick Herz said that "the court's ruling reaffirmed that corporations who are complicit in human rights abuses can be held accountable, regardless of where those abuses occur."
Asked to comment on how a case involving a huge and powerful multinational like Chevron would play out, the Legal Director of EarthsRights International told THISDAY in Washington DC that “Chevron has very expensive legal counsel, there’s no doubt about that. But they’ve been trying for eight years now to dismiss this case and they failed. So their expensive lawyers so far have not been able to get them off, to avoid accountability for their action and at this point it’s going to be a jury that decides Chevron’s faith. And all of Chevron’s money and power won’t necessarily have much impact on a jury.”
Mr. Oronto Douglas, Deputy Director of Environmental Rights Action/Friends of the Earth Nigeria and one of the lawyers representing the case here in Nigeria, told THISDAY last night that the decision is a “demonstration that there is no hiding place for corporate criminals.” He saluted “the courage, the forthrightness, the clarity and the firmness of the pronouncements of the judge. This is a lesson to other corporations who think they can ride roughshod over defenceless communities who live on lands where vital resources are in abundance. The judgment also indicates that there is hope for other communities in other parts of the Niger Delta where environmental vandalism and human rights abuses have gone on without redress.”
Chevron officials in Nigeria did not make any comments when contacted last night.
Trial in the case, Bowoto v. Chevron Corp., No 99-2506 is expected within the year. In addition to ERI and Traber &Voorhees, the plaintiffs are represented by the private law firms of Hadsell & Stormer and Siegel & Yee, the Center for Constitutional Rights and the Electronic Frontier Foundation, and Paul Hoffman, Michael Sorgen, Robert Newman, Anthony DiCaprio, Elizabeth Gu-arnieri, and Richard Wiebe.
And Now the Big Bang... From August 1, 2008, the Naira in Your Pocket will Shrink But the Value will Grow 100 Times
• States to get allocations in dollars • Capital accounts to be deregulated by 2009
By Ijeoma Nwogwugwu, 08.15.2007
Never in the history of the economy has the country witnessed the introduction of a new policy plank so profound that would affect the lives of all Nigerians and local transactions from this point forward.
In a landmark briefing yesterday, the Governor of the Central Bank of Nigeria, Professor Charles Chukwuma Soludo, announced the re-denomination of the local currency, the Naira, by dropping two zeroes or moving two decimal points to the left from the prevailing currency, and issuing more coin denominations.
By implication, under the new regime which takes effect from August 1 2008, the move would in nominal terms shrink all naira denominated assets, prices, transactions and contracts, but in real terms their value would rise 100-fold.
Soludo, who unfolded the new regime for the Naira in Abuja before a packed audience comprising some state governors, deputy governors, ministers, bank executives and the media, said this would entail a total currency exchange phasing-out of all the existing denominations from August 1 2008 and that effectively at the prevailing exchange rate, US$1.00 will exchange for approximately N1.25 from that date onwards.
The CBN Governor explained that the new policy was aimed at making the Naira the reference currency against which other currencies, especially in Africa, could be benchmarked, adding that from September 2007 part of the Federation Account allocation to the Federal and State Governments shall be paid to the recipients in US Dollars. However, the Local Governments have been excluded from this phase.
The Federal and State Government, as a result, will be required to open “Special Domiciliary Accounts” with commercial banks of their choice, but the proceeds can only be accessed by monetising the balances into Naira.
In other words, both tiers of government cannot withdraw their monthly allocations in dollar cash, except in Naira. They can however use the proceeds in their domiciliary accounts for the settlement of external obligations such as the opening of Letters of Credit.
Soludo disclosed that since all Naira assets, prices and contracts would be re-denominated by dropping tow zeros or moving two decimal points to the left from August next year, the new currency structure would phase out all denominations above N20.
The proposed currency structure that will come into effect shall comprise coins – one kobo, two kobo, five kobo, ten kobo and 20 kobo; and notes of 50 kobo, one Naira, 5 Naira, ten Naira and twenty naira.
The Governor said with this measure, the Bank’s plan would “effectively restore the value of the Naira (in the short-term) close to what it was in 1985 before the commencement of the Structural Adjustment Programme (SAP) in 1986.
Reeling out other objectives of the re-denomination exercise and currency structure, Soludo explained: “Following the progress so far, with other reforms and the enabling conditions in the economy today are designed to better anchor inflationary expectation; strengthens public confidence in the Naira; makes for easier conversion to other currencies; reverses the tendency for currency substitution; eliminates higher denomination notes with lower value; reduces the cost of production, distribution and processing of the currency; promotes the usage of coins and thus a more efficient pricing and payments system; and lays the foundation for the convertibility of the Naira as well as make it the reference currency in Africa.”
He indicated the African Union had granted Nigeria the right to host the Headquarters of the African Central Bank when the common currency in Africa materialises. “We must therefore lead the way in terms of a properly aligned currency structure and sound monetary policy framework.”
The CBN Governor explained several countries in the world had undertaken re-denomination exercises at various times and for different reasons, including Afghanistan (2002); Germany (1923, 1948); Argentina (1970, 1983, 1985, 1992); Bolivia (1963, 1987); Brazil (1967, 1970, 1986, 1989, 1990, 1993, 1994); China (1955); South Korea (1962); Mexico (1993, 1996); Ghana (2007); Israel (1948, 1960, 1980, 1985); Turkey (2005); Angola (1995, 1999); and others.
According to him, “evidently, many countries have had to undertake the re-denomination more than once. In the case of Brazil , it had to do so many times before it got it right. The major challenge is to undertake other complementary reforms, particularly macro-economic reforms that will underpin price stability and continuing confidence in the economy.
“This is where we believe Nigeria’s experience is likely to be different from others, having learnt from the experience of other countries.”
Consequently, as necessary complements to the currency re-denomination exercise, Soludo said the Central Bank shall introduce three additional measures:
• The adoption of an inflation-targeting framework for the conduct of monetary policies which shall commence from January 1 2009;
• Sharing part of the federation account in US Dollars meant for the Federal and State Governments to deepen the forex market and for liquidity management;
• Current account liberalization/convertibility and accession to Article VIII of the International Monetary Fund (IMF).
Expatiating on the new measures to be introduced the Governor said inflation targeting as a nominal anchor was being implemented in line with the mandate as contained in the new CBN Act, 2007 which requires the Bank to ensure monetary and price stability as well as the need to provide a transparent, credible framework to lock-in inflationary expectations from January 1 2009.
He said “low and stable inflation will be our monetary ploicy’s primary long-term goal. Focusing on inflation targeting does not mean that the CBN will not be interested in other broader objectives of macro-economic policy – output, growthm employment, exchange rate and balance of payments.
“Rather, an inflation-targeting framework will enable CBN to pursue three objectives in amore disciplined and consistent manner rather than the ad-hoc processes of the past. Locking-in inflationary expectations is one effective way of ensuring that the currency denomination will be sustainable.
“The outcome of this new framework will greatly improve the credibility of the CBN as the Monetary Authority, as well as deepen the financial markets and promote the rapid development of a private sector-led economy.”
Soludo said the Bank would use the next 16 months to fully prepare for the introduction of the framework especially in the light of the deep technical issues involved. “The CBN will collaborate with the National Bureau of Statistics in significantly improving the availability of high frequency and reliable data especially those of the GDP and more robust measures of price indices.”
With regard to sharing part of the Federation Account allocation in US Dollars, Soludo added that the proportion of the account that will be distributed in dollars would be determined from time to time, but shall be largely dependent on the assessment of the forex market as well as the liquidity management requirements of the CBN.
He said with effect from next month, the exchange that would be applied in the monetisation of Federation Account proceeds that have been domiciled in the special domiciliary accounts, would be the inter-bank rate of the day.
“As the market deepens, the CBN will gradually withdraw from the WDAS, and only intervene in the market as may be required to achieve defined policy objectives,” he maintained.
In addition to the foregoing policy initiatives, and to further deepen the integration of our financial system and economy into the global economy, Soludo added the bank intended to embark on full current account liberalisation or convertibility by January 1 2009.
This would entail that Nigeria eliminates all restrictions on current account transactions and accession to Article VIII of the IMF, implying the policy is not easily reversible. “Out of the 185 member countries of the IMF, 167 have acceded to Article VIII on current account convertibility. It is our belief that the conditions are tight for Nigeria to join the world league. The timng proposed to coincide with the commencement of the inflation-targeting framework.”
Explaining the benefits to be derived from the new policy thrust, the CBN Governor said it was expected to deepen the forex market, promote financial market development, and improve the degree of integration among the domestic markets and with international markets.
Chevron announces new discovery in Angola’s Block 14 [ 2007-08-10 ]
Houston, United States, 10 Aug - American oil company Chevron has announced a “significant” discovery in Angola’s offshore Block 14.
In a statement Thursday, Chevron said the Malange-1 well was drilled in December 2006 and tests in March 2007 revealed high-quality petroleum at a rate of 7,669 barrels per day.
Development of Block 14 began in 1997 and the contractor group is led by Chevron subsidiary Cabinda Gulf Oil Company, with a 31 percent shareholding in the venture. Other partners in the undertaking are Sonangol, ENI and Total, with a 20 percent state each, and Galp of Portugal with 9 percent of shares. (macauhub)
exceo: Oily Posted... 5/2/2007 "I will post again after the merger, and yes there is a drillship in the JDZ now."
Nigeria records drop in Crude oil production in 2006, says CBN
AGGREGATE crude oil production declined from an average of 2.53 million barrels per day in 2005 to 2.23 million barrels per day (mbp) in 2006, the Central Bank of Nigeria (CBN) has said.
The 2006 report of the bank, attributed the decline to the persistent disruption of oil operations especially the major Joint Venture Companies (JVCs) in the Niger Delta region.
CBN said that some new oil wells which started production and are contributing about 265,000 barrels of crude oil per day moderated the losses from the supply disruptions in the Niger Delta region.
"Aggregate export of crude oil, therefore, averaged 1.80 mbd compared with 2.08 mbd in 2005. The average spot price of Nigeria's reference crude, the Bonny Light, increased from $55.34 in 2005 to an average of $66.46 per barrel in 2006
The apex bank also reported that the manufacturing output declined by 1.5 per cent below
the level in the previous year while the average capacity utilisation rate fell from 54.8 per cent in 2005 to 53.3 per cent in 2006.
It attributed the poor performance of the sector during the period to worsening power supply situation in the country, which it said, further increased the cost of production, coupled with the influx of cheaper and sometimes sub-standard goods into the country.
"The cement sub-sector, however, improved substantially owing to the refurbishment of cement factories across the country, it said, adding that the activities of regulatory agencies like the National Food, Drugs Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON) impacted on the sub-sector positively.
The CBN reported that the rate of expansion of economic activities slowed down from 6.5 per cent in 2005 to an estimated 5.6 per cent in 2006.
"It was, however, broad-based as all the sectors grew satisfactorily. The growth rate was also considered satisfactory, given that it was achieved amidst the challenges of low oil production and the energy crisis.
``Growth was, however, sustained by the favourable monetary and credit environment, which promoted increased private sector financing; the supportive environment provided by the public sector as well as the stability in the goods and foreign exchange markets; and the enhanced investment climate.
``Growth in the economy was driven mainly by agriculture, wholesale/retail trade, building and construction, and services, which grew by 7.2, 13.7, 12.1 and 8.9 per cent respectively. Industrial production, however, declined by 2.6 per cent, largely due to the fall in crude oil production,'' the apex bank said.
It said that the agricultural sector continued its recovery in 2006, benefiting from the various Federal Government Initiatives and favourable weather.
``The Industrial sector benefited from the continued government privatisation policy in 2006 and a focussed effort on providing the enabling environment for core investors to take off and grow,'' the bank said.
It said that the enabling environment was enhanced by the removal of legal hurdles associated with equity investment that hitherto hindered the inflow of foreign investment.
Japan wants to hunt whales in Sao Tome’s waters [ 2007-08-09 ]
Sao Tome, Sao Tome and Principe, 9 Aug - Japan has presented proposals to Sao Tome’s fisheries authorities aimed to open the archipelago’s territorial waters to Japanese commercial whaling, officials said.
Sao Tome’s fisheries minister, Cristina Dias, said Wednesday that she considered the Japanese proposals “interesting”, noting that before Sao Tome gives approval for this type of fishing it would carry out economic and environmental studies and also sign up to an international convention on whaling.
Besides discussing financial compensation for whale fishing in its waters, Sao Tome would also discuss job creation prospects related to the whaling proposals with the Japanese authorities, added the minister.
Dias was speaking after a fisheries conference in Sao Tome, which was attended by a Tokyo delegation headed by Japanese MP Tadahiko Ito, who is to deliver an invitation to President Fradique de Menezes for the Japan-Africa summit next year.
Japan made US$ 6.9 million available to Sao Tome less than a month ago for fisheries development as part of Tokyo’s bilateral cooperation with the islands.
Japan is one of Sao Tome’s main cooperation partners in the fisheries sector. Tokyo sends annual food donations of rice to the islands worth around US$ 1.3 million. (macauhub)
Nigeria's New Leader Faces Uncertainties
By KATHARINE HOURELD
Associated Press Writer
In his first two months in office, Nigeria's shy, aristocratic new president has faced a nationwide strike, violence in the country's oil region and accusations that he's too timid for the job.
But these challenges pale compared with the country's corruption, decayed infrastructure and poverty. This nation of 140 million expects a lot of President Umaru Yar'Adua.
'These big men always have big talk,' grumbled Raymond Olanre as he hawked newspapers on a potholed road. Yar'Adua 'says he will give us water and light, but that is just what the previous (president) said.'
Electricity and clean running water are just some of the basics that Africa's largest oil exporter has failed to deliver to its citizens. Yar'Adua has made some stabs at reform, but many Nigerians fear he won't be able to stand up to his strong-willed predecessor, Olusegun Obasanjo, and remake his country.
Obasanjo plucked the former state governor from obscurity and made him the governing party's presidential candidate last year. Yar'Adua's landslide victory in April's elections was condemned by domestic and international observers, who charged widespread voter intimidation and vote-rigging.
Under Obasanjo, Nigeria had eight tumultuous years of democracy, the longest such period since independence from Britain in 1960. But corruption and poverty remained rife.
Olanre, for example, earns about $2 a day - not much, but still more than most. He is 22, in a country where average life expectancy is 43.
There are signs that Yar'Adua, a reclusive former chemistry teacher from a royal Muslim family, is preparing for real change, says Jibrin Ibrahim of the Center for Democracy and Development, a Nigerian think tank. It will take a year for his true colors to emerge, and meanwhile, with a cabinet of competing factions, 'he is still not totally in charge,' Ibrahim said.
Every step forward so far has left Nigerians clamoring for more.
In a surprise move, Yar'Adua publicly declared his assets - the first Nigerian president to do so - and urged his officials to do the same. None has so far.
Yar'Adua reversed the contentious sale of two of the country's broken down refineries to a shadowy consortium headed by Obasanjo's allies, a deal hurried through in the dying days of the outgoing regime. Incompetent management, sabotage and neglect had already shut the country's four major refineries, forcing Nigeria to import refined petroleum.
And this month, four former governors were charged with stealing state money, with more arrests promised by the country's anti-corruption watchdog. But none held office in the three major oil-producing states of the southern Niger River delta, whose governors receive billions of dollars in oil revenues annually but have failed to provide electricity, water, schools or clinics. Each was a major donor to the ruling party, however.
'People in the delta will not take Yar'Adua seriously until we see some of our own governors being brought to book,' said Damke Pueba of Stakeholders Democracy Network, an advocacy group in the main southern oil center, Port Harcourt.
'He's still using the same Obasanjo approach,' she said, referring to the previous president's policy of charging political enemies with corruption while allowing major party donors a free hand. 'Some (officials) are sacred cows, others are sacrificial lambs.'
In the meantime, a string of bombings and kidnappings that sharply escalated from December 2005 has cut a quarter from Nigeria's daily oil-production capacity of 2.5 million barrels a day.
Rich areas of Lagos, the commercial capital, get a few hours of electricity a day, strangling small businesses and driving away investment in a country where millions are unemployed. Poorer neighborhoods go without power for days, even weeks.
The new administration has two members of the opposition, seven women, and a finance minister seen by many as a reformist. But Yar'Adua has also retained many faces from the outgoing regime, which worries those looking for a radical change of direction.
'He is very cautious, to the point of being faulted,' said Charles Dokubo of the Nigerian Institute for International Affairs. 'Nigerians want (Yar'Adua) to prove to them that he does not need a back-seat driver.'
mugwump; XOM Waited Till The Last Day Allowed To Say That They Would Not Be Taking Their 2nd Pick. So their 2nd free bid Expired. Will not be a problem in the future.
Oil Production Still On, Says Govt
08.03.2007
Rivers State government has said although militant activities in the Niger Delta has had some impact on the state, its imput to the production of oil and other natural resources is still intact.
Deputy Governor, Engineer Tele Ikuru, said this yesterday when members of the Ad Hoc Committee on Shortfall in Crude Oil Production of the Revenue Mobilisation, Allocation and Fiscal Commission paid him a courtesy call.
Ikuru, who represented Governor Celestine Omehia, attributed the sustenance in oil production level from the stateto cooperation of the people, especially the youth, adding that the state was not experiencing any short down of oil wells, which according to him implies that the crude oil imput from the state is not suffering any adverse effect.
To further strengthen production level of natural resources and ensure peace in the state, government, established the Peace and Rehabilitation Committee amongst others, to positively reposition youth.
He said the state deserves a fair share of the national cake, adding that "we believe that the work which you have set out to do will make us benefit as a state and get what is rightly ours.”
Engr. Ikuru, who commended the oil companies and youths for their cooperation in ensuring peace in the state, assured the team of the total cooperation of the government and people of the state in their verification exercise, saying "we guarantee you safety within our community".
Earlier in his address, Chairman of the Inter- Agency Committee on Shortfall in Crude Oil Production, Ambassador Kabir Rabi'u had said that the committee was set up to determine the quantity of crude oil being produced relatively to Nigeria's OPECquota, to verify and determine losses, if any, as being claimed by the Federal Ministry of Finance, the Central Bank of Nigeria (CBN) and the Nigera National Petroleum Corporation (NNPC).
Others are to determine the actual qualities of crude oil produced particularly from the four states of Akwa- Ibom,Bayelsa, Delta and Rivers and to veriify financial losses as a result of the alleged lose of production.
According to Ambassador Rabi'u, since Nigeria's economy largely depends on oil, there is bound to be an increase in the quantity or price of oil which will significantly affect the growth of the economy, pointing out that in recent times, there had been a gradual decrease in the flow of funds into the Federation Account, especially from the oil sector.
He noted that one of the reasons advanced for the shortfall, according to the Federal Ministry of Finance, CBN and NNPC, is the stoppage of production by oil companies due to youth restiveness i the Niger Delta, adding that the team would recieve presentation from the state government and oil companies as well as visit terminals and platforms to verify some of the data presented and solicited the cooperation of government and oil companies to ensurethe success of the committee's assignment.
US Justifies New Africa Military Command
08.03.2007
The United States (US) government is having a hardtime convincing critics that the new US/Africa Command (AFRICOM), will be an opportunity for enhanced engagement rather than the militarisation of relations between the super power and the continent competition with China, fight against terrorism and securing oil.
At a hearing of the Senate Foreign Relations Subcommittee on African Affairs, Assistant Secretary, Bureau of African Affairs, Department of State, Jendayi Frazer, sought to douse fears, reiterating that the civil-military activities of AFRICOM will help strengthen regional security, policies and their implementation.
“We are not at war in Africa, we expect the largely civil-military activities of AFRICOM to help state (USdepartment of state) strengthen regional security, policies and implementation. AFRICOM will draw upon our embassies in the field for most of the information it will use to guide its security co-operation programmes and its overall interaction with Africa,” she said.
But testimony after testimony revealed that AFRICOM, launched in February 2007, and structured in such a way that African affairs previously handled through the US European Central and Pacific Commands, will now be overseen by a single unified Command.
except Egypt, has been met with stiff resistance and that the US will have to do more to address the fears felt by the continent.
The sub-committee heard from Mark Malan of Refugees International who testified at the hearing that AFRICOM is perceived as a threat and that US foreign policy in some parts of the world is clearly seen as a military one. “In Africa, the DoD (department of defense) appears tobe putting a civilian mask on the face of a combatantcommand, with its marketing pitch for AFRICOM. Thisdisingenuous strategy is not working. The veneer ofthe mask is simply too thin and attempts to patch theholes that have emerged by telling us “what AFRICOM isnot about” and reemphasizing a humanitarian anddevelopmental role for the US military in Africasimply make the face of US foreign policy muchshadier,” he stated.
He observed that the main concern of non-governmentalorganizations (NGOs) is that the command will increasethe trend towards militarisation of humanitarianaction, adding that this cannot be supported as longas it subsumes humanitarianism within the ambit ofmilitary strategy. Militarisation of humanitarianassistance and development can also undermine respectfor impartiality and no-partisanship of thehumanitarian mission, he emphasized.
Testifying, Director, Africa Program of the Centre forStrategic and International Studies (CSIS), StephenMorrison observed that the new command is viewed asthe triumph of militarism fuelled by energy concernsand the global war on terror.
There also seems to be a misunderstanding on whatshould be the role of the US Department of State andthe Department of Defense (DoD) and what should be aforeign policy or military judgement. Frazer claimsthere will be a collaboration between bothdepartments. In June, Principal Deputy Under Secretaryof Defense for Policy, Ryan Henry noted that AFRICOM’smission would include humanitarian assistance, civilaction and response to natural disasters.
This has raised concerns that the Pentagon isoverstepping its boundaries by taking charge of USdevelopment policy and humanitarian assistance usuallyunder the purview of the Department of State and theUnited States Agency for International Development(USAID).To clear this seeming misunderstanding, Senator DickLugar asked Frazer what will be the place of thesecretary of state in the chain of command. According to Frazer, “I think that in any of theseareas of conflict and policy considerations, thesecretary of State has the primary lead as thepresident's foreign policy adviser…..I haven't feltthat there has been any weakening of StateDepartment's position as the primary foreign policyactor.”
China Surpasses US as Nigeria’s Import Partner
From Constance Ikokwu in Washington D.C, 08.03.2007
The Peoples Republic of China has gradually eclipsed the United States as Nigeria’s import partner with 11 per cent of trade and about 20,000 Chinese presently living and working in the country.
Delivering a speech on the “Political Dynamics Affecting the Business Climate in Nigeria” during a meeting of the US Department of State Advisory Committee on International Economic Policy, a government official who cannot be identified because of Chatam House Rules, observed that the US now holds just over 8 per cent of trade, having been surpassed by China.
According to the official, US businesses are “intrigued” by the role that China will play in the development of Nigeria and in the country’s commercial ties to America. He described the relationship between China and Nigeria as “strong and cordial” but “complex”.
“The average Nigerian resents the use of Chinese labourers in construction projects and perceives the Chinese as harsh employers. Nigeria’s pharmaceutical and textile industries are suffering from what appears to be ‘dumping’ of Chinese pharmaceutical and textiles and from counterfeit goods originating in China,” he said.
Explaining further, the circumstances under which the Chinese operate in the country, he observed that “Nigeria’s infrastructure could clearly benefit from Chinese aid, but the Chinese are discovering that their largest and most highly touted, proposed infrastructure projects have not even broken ground because of cultural and market misunderstandings, bureaucratic hurdles and corruption.”
The US official encouraged the Nigerian government to pursue public tenders in a transparent manner that encourages China to promote transparency and competition for its long-term interests on the Continent.
In spite of China making headway in the country, he disclosed that the US has over the past seven years provided 53 per cent of the Nigeria’s foreign investment to the tune of $11.2 billion, in addition to being the second largest export market for US wheat.
The official re-affirmed the US government position that Nigeria is a strategic partner, a dependable ally and that a prosperous Nigeria is important to US security, democracy, trade and energy needs.
He disclosed that Nigeria had in June 2006 expressed interest in a Phytosanitary Standards Agreement and a Bilateral Investment Treaty (BIT) which could help “lock in” reforms that has to do with basic protection for investors.
“These developments point to the need for robust bilateral engagement, despite the enormous challenges. We are encouraged by President Yar’Adua’s public and private commitment to these types of reforms but recognize that he is operating in a complex political environment,” he said.
Yar’ Adua: N’Delta Problem to End Soon
From Josephine Lohor in Abuja, 08.03.2007
President Umaru Yar’ Adua has said the problem in the Niger Delta region will soon be over. The consultation and discussion between his government and leaders as well as militant groups in the area will help to restore normalcy to the region, he said.
The President spoke yesterday when he received German Foreign Minister, Dr. Frank-Walter Steinmeier, at the Presidential Villa, Abuja.
This assurance came on the heels of a meeting at The Hague, Netherlands between the Federal Government and some Niger Delta governors with United States and Britain over the need to secure the oil rich Gulf of Guinea.
“For the first time, we got all leaders of the militant groups to meet with government and with one another, to chart a course for peace and normalcy in the Niger Delta, address the agitations and consider the implementation of the master plan,” President Yar’ Adua told the visiting envoy.
He said his administration's efforts “will improve security in the Niger Delta and the Gulf of Guinea."
The incidence of hostage taking and other militant activities has gone unabated in the Niger Delta in recent times.
Apart from getting the Vice president, Dr. Jonathan Goodluck, to move to the area to coordinate government activities to halt the crisis, the Federal Government has also formally written to invite former Bayelsa State governor, Chief Diepreye Alameyei-segha, to be part of the peace efforts in the area.
The President challenged the German envoy to get his country to take advantage of the steps taken by his government to check the security situation in the region to come and invest in the country.
“We have appointed a minister to take charge of gas, because we believe it can play a major part in meeting our energy needs and we invite you to invest in this, “he said.
Yar’ Adua also restated his earlier promise to institute reforms in the nation’s electoral process in view of the allegations that the general elections fell below international standards.
He promised to “bequeath a high quality electoral process” to Nigeria when he leaves office, The President added that he would achieve this by using "honourable Nigerians of high integrity, (and) who have reputations to protect" to carry out a comprehensive electoral reform.
The German foreign minister, in his earlier speech, praised the existing cordial relationship between Nigeria and Germany and expressed optimism that this would be strengthened by the impending signing of the Investment Protection Agreements between the two countries.
Steinmeier said Germany had a lot to offer Nigeria in the energy sector and pledged to mobilize German investors to Nigeria.
He invited President Yar’ Adua to attend the European-African summit scheduled to hold in Portugal later this year.
Skye Bank partners govt on Niger Delta
SKYE Bank Plc has restated its resolve to partner the Federal Government on the development of the Niger Delta and the oil industry in Nigeria.
Mr. Chike Memeh, Regional Director, South-South of Skye Bank Plc, said at the Niger Delta Oil and Gas Conference/Exhibition in Port Harcourt that the bank was willing and ready to implement Federal Government policies meant for the development of the region.
Memeh, who represented the managing director and chief executive of the bank at the event, said the bank was also poised to partner operators in the oil sector to tap the numerous opportunities in the Niger Delta region.
"We support the various initiatives by the present administration at the federal and state levels towards resolving the crisis in the region and move the nation forward," he said. "Skye Bank is also committed to partnering operators and stakeholders in the strategic oil industry to tap the various opportunities in the oil sector."
He expressed regret that the crisis in the region is adversely affecting the economy of the region with resultant impact on inflow of Foreign Direct Investments (FDIs) into the Niger Delta and Nigeria as a whole.
He was however optimistic that the Federal Government and states in the region will find an amicable solution to the problem.
The Skye Bank regional director explained that the bank fully supports the initiative to integrate the Organised Private Sector (OPS) in the operation of the oil industry and development of the Niger Delta.
"There are immense opportunities in the Niger Delta region and Nigeria as a nation and one of the ways to derive value from such opportunities is through micro-entrepreneurship.
But the challenge is how such enterprises can have access to credit given the perception of such firms by financiers. For example, banks are hardly financing development of marginal fields due to lack of equity participation by investors of initiators of such fields."
Memeh challenged investors in marginal fields development to demonstrate that such ventures are profitable and worth investing in by banks and other financial institutions.
He urged them to show sense of purpose, focus and willingness to succeed.
China National Petroleum Corp buys controlling stake in Chinese gas company [ 2007-07-30 ]
Beijing, China, 30 July – China National Petroleum Corp (CNPC) has announced that its piped gas unit has acquired a majority shareholding in Zhuhai Gas in China’s Guangdong province.
CNPC said in a statement the acquisition will allow work on a gas distribution network to be speeded up and become operational by November.
CNPC, China’s largest gas and oil producer, did not disclose financial details of the operation. But Hong Kong’s South China Morning Post newspaper said the purchase of an 85 percent stake in Zhuhai Piped Gas cost CNPC 57.5 million yuan.
Zhuhai Piped Gas distributes and imports liquefied petroleum gas and operates 12 LPG gasification stations. Its annual gas sales were around 250,000 tons last year.
Zhuhai, with a population of 1.2 million, is one of China’s special economic zones and borders with Beijing’s enclave city of Macau. (macauhub)
Walldog; We've Both Been Here A Long Time. And I think we've both seen, every time the spit hits the fan, SEO comes out smelling like a rose. Like renewal of our contracts, still we have deals XOM envies. When our partners walked out, SEO had new & better partners in a flash. This guy's always one step ahead. Will be interesting to see how these new problems work out. Hope the CC will give us an indication.
No Worries Here. RM
O.T. Diamond Bank facilitates $13.1m U.S.-EXIM loan to firm
By Gbenga Agbana
DIAMOND Bank has facilitated a high profile $13.1 million U.S.-EXIM loan guarantee to Drillog Petrol-Dynamics Ltd. which will enable the indigenous oil servicing firm to acquire state-of-the-art oil well measurement technology, equipment and services from U.S. based Halliburton Energy Services.
This development is a signpost of Diamond Bank's avowed support to indigenous oil and gas companies and the bank's pioneering role in advancing the Federal Government's local content policy initiatives.
Drillog Petro Dynamics will utilise the funds to acquire equipment, which will enable the company to capture information about the drilling process for international oil majors operating in Nigeria.
With this feat, Drillog Petrol-Dynamics become the first local services company to provide advanced drilling services to international oil majors.
As part of the purchase agreement, Halliburton will provide Drillog Petro-Dynamics with Logging While Drilling (LWD) technology and equipment to capture information about the drilling process, well geometry and rock and fluid properties at the well. Drillog Petro-Dynamics will also receive a service and training platform for its engineers and the rights for 21/2 years to bid on a right-of-first-refused basis with Halliburton, for oil service contracts tendered by oil majors in Nigeria, where LWD services being requested.
The Nigerian oil drilling business was before now dominated by the big multinational oil services companies that had exclusive access to state-of-the-art drilling equipment. Indigenous drilling companies such as Drillog Petrol-Dynamics were only capable of handling the less lucrative low-end drilling jobs.
To date Diamond Bank has facilitated the acquisition of various state-of-the-art drilling equipment in the region of $40 million on behalf of Drillog.
Diamond Bank is in discussion with the company to support further acquisition of state-of-the-art drilling equipment to support company's growth and oil exploration in Nigeria. This will consolidate the company's position as the frontline player in rendering drilling services in Nigeria and indeed Africa.
The U.S. -EXIM Bank, is an independent Federal Government agency. This year marks its 72nd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world. This bank last year authorised over $12.1 billion in export financing.
This included more than $532 million in support of 140 U.S. export transactions to 23 sub-Saharan African countries. Ex-IM Bank works with commercial leaders to help U.S. companies increase export sales and American jobs and minimise risk by accessing the bank's financing an export credit insurance.
It will be recalled that in June 2006, the US-EXIM Bank selected Diamond Bank to participate in its U.S. Trade Boost Programme following a successful study on the bank. The programme enables Diamond Bank expedite the processing of short and medium term U.S.-EXIM Bank financing for the purchase of U.S. goods and services by Nigerian buyers.
Diamond Bank's consistent success in accessing U.S.-EXIM Bank's funding for its clients is a reflection of the bank's growing international posture and a mark of confidence. Indeed, the bank had in the past attracted big ticket investments from other reputable international finance and trade organisations, such as
* the International Finance Corporation (IFC),
* Netherlands Development Company,
* Commodity Credit Corporation of the United States,
* working partnership with SINOSURE, the China Export-Credit Insurance Corporation for accelerated Chinese trade investments in Nigeria.
O.T. First Bank, Conoil, others lead price gainers, present scorecards
By Gbenga Agbana
APPARENTLY reacting to the full year results of First Bank of Nigeria Plc and Conoil Plc released recently, investors have embraced their shares, thus enhancing their share prices.
For instance, First Bank of Nigeria Plc led on the week's gainers' chart, up by 636 kobo to close at N46.76 per share, while Conoil Plc garnered 250 kobo to close at N66.50.
By the results released to the Nigeria Stock Exchange recently, First Bank of Nigeria Plc's after tax profit and extra-ordinary items including amortisation and goodwill stood at N18.4 billion, over the profit after tax, exceptional items and extra-ordinary items of N15.4 billion in 2006.
The directors are recommending a dividend of N1 per share and a bonus of one for six, with August 20,2007 as the date of closure of register and September 3, 2007 as payment date.
The bank's yearly general meeting has been scheduled to hold on August 30,2007 at Transcorp Hilton Hotel, Abuja.
The technical suspension hitherto lifted on the bank's share price was lifted recently following the two weeks allowed by the stock exchange, after the closure of the just concluded public offer and rights issue.
By the result of Conoil released also recently, the company's after tax profit stood at N2.81 billion over N2.62 billion in the year ended December 31, 2005 on a turnover which rose from N73.53 billion in 2005 to N90.52 billion in 2006.
The directors have recommended a dividend of 275 kobo per share with August 3, 2007 as date of closure of register.
Also, the results of Northern Nigeria Flour Mills Plc was released recently, showing a loss after tax of N104.41 million in the year ended March 31, 2007 as against a profit after tax of N55.1 million in 2006, on a turnover which dropped from N4.9 billion to N4.8 billion.
The directors was of the opinion that the unsatisfactory performance resulted from rising cost of production inputs coupled with stiff competition and weak consumer demand.
However, management effort in cost control and increase in the selling prices of products combined with aggressive marketing drive have started to impact on results.
O.T. NPDC generates N177b revenue from crude oil sale
THE Nigerian Petroleum Development Company (NPDC), may have experienced mixed fortunes in its last operating year, going by its yearly statement of account.
Indeed, while the company's turnover rose to N177.5 billion for the year ended December, 2006, its profit after tax fell short of the preceding year by 65 per cent as it recorded N19.7 billion.
Presenting the company's yearly report and statement of account, its chairman Dr. Funso Adebiyi, said that the revenue figure represented 11 per cent rise above the N162 billion recorded in 2005.
"The amount was realised from the 21.2 million barrels of crude oil lifted from the Mystras terminal in 2006," Adebiyi said.
"The NPDC recorded N56.71 billion last year due to the shut-in of its on-shore crude operations," Adebiyi said.
He attributed the increase in revenue to sustained production from Okono/Okpoho as well as the "unprecedented and favourable global oil prices which were above the plan price of $55 per barrel."
He said that the sustained increase in global demand for crude oil in 2006 impacted positively on NPDC's operations.
Adebiyi added that the company was able to attract high prices than planned for its crude oil streams with no distressed cargo recorded.
He said that the downside in "our operating environment was the continued shut-in of land operations in Abura, Oredo and Oziengbe fields and the attack on Mystras by militants in November."
Adebiyi said that the attacks affected operations to the extent that the production of about 2.2 million barrels of oil was deferred. He added that the three fields produced 334,483 barrels, which amounted to an average daily production of 1,014 barrels in January and February.
This, he explained, represented 11.3 per cent of planned production of 2.94 million barrels per day and said that the fields were shut due to Forcados export pipeline vandalism.
He concluded that the company could not also obtain a rig to execute its drilling campaign and that NPDC also carried out gas studies during the year to establish a strategy to develop and monetise its gas resources.
"This was with a view to ensuring compliance with government directive to flare out by 2008," he said.
The company's Managing Director, Mr. Fisoye Delano, said that during the review period, NPDC began to reap in earnest, the benefits of its various transformation initiatives under the aegis of the "NNPC's Project PACE."
He added that in 2006, NPDC assumed effective take-over of some assets from NNPC Joint Venture Partners and continued the expansion of its portfolio. The company, he said, got into the international terrain through participation in the bid round for a block in Equatorial Guinea and the acquisition of two blocks.
"This would provide a unique entry into what is genuinely acceptable today as a fast growing Gulf of Guinea Petroleum Play,'' Delano concluded.
Sao Tome airline partners seek resumption of Lisbon flight [ 2007-07-27 ]
Sao Tome, Sao Tome and Principe, 27 July - Angola’s TAAG and EuroAtlantic of Portugal, partners in the recently privatized STP Airways, will meet 7 August to discuss the future of the islands’ carrier and resolve the current suspension of its flights to Lisbon, media said.
STP press reported that the two partners in STP Airways want a quick solution to the problems causes by TAAG’s ban from European airspace imposed for safety reasons. This EU blacklisting has disrupted the Angolan carrier’s operations to Europe and prevented it operating STP Airways flights from Sao Tome to Lisbon.
STP Airways CEO Felisbero Neto is currently in Luanda after making unsuccessful attempts to find replacement aircraft to operate the twice-weekly Lisbon service.
The Sao Tomean airline is having difficulties in finding planes to lease in the busy summer period and the small runway of the archipelago’s airport means only certain planes can use it.
TAAG and EuroAtlantic made a successful bid earlier this year to take over the bankrupt Air Sao Tome in a transaction worth US$ 2 million to the islands’ government.
The predecessor of STP Airways ran into difficulties after losing its only aircraft in an accident. (macauhub)
‘Militants Use Dynamites on Drilling Site’
From Ahamefula Ogbu in Port Harcourt, 07.25.2007
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Police in Rivers State have said that militants in the Niger Delta were using improvised explosive devices to carry out attacks and explained that it was the deadly device that was used to raid Lone Star Drilling in Soku, where four expatriates were kidnapped and a mobile policeman killed.
Briefing newsmen yesterday in Port Harcourt, over several arrests made where the militants worked explosives into some cans of soft drinks, so that they are easily carried without arousing suspicion.
Police revealed this when it stormed Soku after the attack on the Company drilling an oil well for Shell Petroleum DevelopmentCompany (SPDC) on July 4, 2007.They said their men rushed to the scene, recovered seven home made bombs and several shells of expended 7.62mm AK 47 riffle ammunition.
On closer examination, high explosives were repackaged into cans which gave insight into how the explosives were abused in the region. “Physical examination of the home made bombs showed that HighExplosive (HE) had been repackaged into empty cans of power horse and red bull energy drinks. The centre body of each of the cans has an opening into which plain detonator duly encapsulated with safety-fuse was firmly inserted into the High Explosive," IrejuBarasua, the State Police Public Relations Officer said. Other suspects paraded at the briefing include, Friday John and Legbosi Needam, who were apprehended with firearms and dynamite, and four suspects arrested on July 18, 2007, at Oduoha junction for being in possession of dynamites. They are Kingsley Moses, Ntana Festus, Tammy Nyefibo and Godsgift Zephania, caught with electric detonator.Some of them owned up to being in possession of the dynamites, but explained that they used them for fishing, even though it had been outlawed for that purpose.Obey Court Orders, Okiro tells Police
From Funmi Peter-Omale in Abuja Acting Inpsector-General of Police, Mike Okiro, has charged men and officers of the NIgeria Police Force to ensure strict compliance to court orders and rulings henceforth, saying the era of flagrant disobedience of the rule of law was over.Okiro, at a retreat for all Police Operations Officers yesterday, cautioned officers that he would no longer tolerate any act of disobedience to court orders from any of them, adding that any officer found wanting in this regard would be made to face disciplinary action.While saying that the police could not afford to disappoint the country at this crucial time, he said all hands must be on deck to give the nation the type of policing it needed, adding that the force under him, was poised to enforce human rights."Let me use this opportunity to let all of us know that we are poised to enforce human rights to the letter, and we are asking all commands to ensure strict compliance with orders from courts of competent jurisdiction.”In his key note address, Okiro said he would not compromise anything that could truncate the success of the programme, adding that the two major problems threatening the nation’s democracy were illegal proliferation of arms and crime., which the workshop was put together to find a lasting solution to.
He said, “I would not fail to mention that this workshop is very timely at this period of our national history. This is because law, order, peace and security are matters of state responsibility. The need for enforcement of national laws, in terms of ensuring respect for the law and of the consequences for offences against those laws are reasons for the establishment of law enforcement agencies. "Therefore, Nigeria police as the principal law enforcement agency has to rise to the occasion by drawing up a modus operandi for a crime prevention campaign in the country," he said.
Japan supports fisheries development in Sao Tome [ 2007-07-20 ]
Sao Tome, Sao Tome and Principe, 20 July - Japan is providing US$ 6.9 million to Sao Tome for the development of the islands’ fisheries sector, an official has said.
Sao Tome’s director of fisheries, Aida Almeida, said Wednesday that the Japanese financial assistance was part of Tokyo’s cooperation package with the archipelago for 2008-2009. The funds were targeted at self-employed fishermen, improvement of the country’s fish storage and processing facilities, as well as purchase of boats.
Besides being used to provide loans to fishermen in Sao Tome, the Japanese aid will also be used to fund the legal process needed to restart fish exports from the islands to the European Union.
Sao Tome is currently banned from selling fish to Europe due to its failure to adopt EU standards for industry.
Japan, one of Sao Tome’s main aid partners, already grants food aid to the islands through annual rice donations valued at US$ 1.3 million. (macauhub)
Sao Tome investing in wind power [ 2007-07-18 ]
Sao Tome, Sao Tome and Principe, 18 July – Sao Tome is to produce power from wind farms with support from Germany, the islands’ natural resources minister has said.
Manuel Deus Lima said Tuesday that a German company has been contracted to give technical support to the wind power project following a feasibility study on the project by Sao Tome’s energy authorities.
The wind power scheme is being launched initially in the district of Caue, 90 kilometers from Sao Tome city, and is expected to generate 2 megawatts of electricity.
“There are sufficient climatic conditions to sustain this type of energy production, compared to the high costs of a thermal plant,” said Deus Lima-
The wind power project is aimed to reduce costs of energy production in Sao Tome due to rising fuel costs, improve the quality of the product by preventing constant power outages, as well as combating environmental pollution.
State power and water utility EMAE, through the natural resources ministry, is the only power generator and distributor in Sao Tome, which has experienced successive energy crises characterized by constant outages and poor quality of supply.
Sao Tome’s power demand is estimated at 15 megawatts and EMAE’s capacity is only 12 megawatts. Some 80 percent of power comes from thermal stations and the remaining 20 percent from hydroelectric dams on the Contador and GueGue rivers. (macauhub)
Risks Rise for Western Oil Firms in Africa
by Spencer Swartz Dow Jones Newswires Friday, July 13, 2007
COTONOU, Benin Jul 13, 2007 (Dow Jones Newswires)
Big foreign oil companies are finding it harder to make money in Africa because of the region's often unstable politics, output restrictions and moves by some governments to rewrite contracts.
Africa remains one of the last big regions open to foreign oil exploration, and companies of all stripes are benefiting from record energy prices. But fresh obstacles threaten to crimp future production in a region that is crucial to global energy supplies.
Africa's economically recoverable oil and natural gas reserves account for almost 10% of the world's total. U.S. and European consumers are increasingly reliant on West Africa nations like Nigeria for crude oil that is easy and cheap to refine into products like gasoline because of its low sulfur content.
African producers such as Nigeria and Angola now ship about as much crude oil to the U.S. as Persian Gulf producers like Saudi Arabia, according to the U.S. Energy Information Administration.
To meet this rising demand and improve their own growth prospects, companies like Exxon Mobil Corp. (XOM) and Total SA (TOT) and smaller firms such as Anadarko Petroleum Corp. (APC) have plowed billions of dollars into the continent at a time when they're effectively shut out of drilling in tightly protected energy sectors in much of the rest of the world.
In Russia and Latin American countries such as Venezuela, governments buoyed by high oil prices have recently moved to take control of energy exploration projects and raised taxes on foreign operators.
Some of these same problems are now popping up in Africa. Governments in Algeria, Chad and Equatorial Guinea have rewritten contracts or oil laws to advance national interests. Operational risks, including security of staff and infrastructure, have swelled in places like Nigeria. State-run oil companies less focused on profit are snatching business from their Western peers.
Angola, one of the fastest growing producers on the continent, joined the Organization of Petroleum Exporting Countries in January. While the government is quickly boosting output at expensive offshore projects, Angola will soon get an OPEC output quota - perhaps within a year - that could crimp operations for big investors like Total, BP PLC (BP) and Statoil ASA (STO) when OPEC cuts output.
OPEC member Libya - which currently pumps about the same amount of crude oil as Angola - was allocated production cuts of 102,000 barrels per day after OPEC cut output twice in recent months.
Underscoring the increased competition state-run oil companies, Austrian oil and gas firm OMV AG (OMV.VI) tried to widen its presence in Libya in a recent oil licensing round, but came away empty handed.
"The national companies offered more attractive terms. Competition from them is getting tough," says OMV Chief Executive Wolfgang Ruttenstorfer. National companies were willing to take smaller profits on the projects offered by the Libyan government, he says.
OMV and other Western firms have advantages of technology and access to capital over most state firms, but the gaps are narrowing, Ruttenstorfer adds.
Shokri Ghanem, head of Libya's state National Oil Co., says Libya wants investment from wherever it can get it. "We're open for business to all companies, private or state."
At least $5 billion in business in Africa has gone to state oil companies, including those of China and India, over the past year or so, up from a fraction of that a decade ago, according to Global Insight analyst Simon Wardell.
Venezuelan state firm Petroleos de Venezuela SA, or Pdvsa, is set to sign deals in Algeria, Sudan and Benin, Pdvsa Exploration Vice President Luis Vierma said at a recent energy conference in Benin.
Another problem is rising government payments across the continent. In May, Anadarko said it may lose $450 million this year, equivalent to $1 a share based on the share count used in Anadarko's 2006 annual report, because of a new windfall profits tax in Algeria.
The tax came into effect months ago under the North African nation's revised oil law, which also restored state control to exploration projects. Texas-based Anadarko declined to comment further on the matter.
In Nigeria, meanwhile, continuing violence and kidnappings in the Niger Delta makes it unclear when Royal Dutch Shell PLC (RDSB.LN) will restart shuttered oil output caused by militant and criminal violence that has cost the company hundreds of millions of dollars since early 2006.
Militant violence, driven by poverty and an unresponsive government, has shut roughly 25% of Nigeria's oil production the past 19 months. Around 465,000 barrels per day of Shell-operated output is currently shut in Nigeria.
"We'll only restart production when it's safe to do so," says Shell spokesman Rainer Winzenried. In May, Shell Chief Financial Officer Peter Voser said Shell's profit from the Niger Delta, where most of Nigeria's oil is produced, was $3 to $4 a barrel versus $20 a barrel in the U.S.
For all the new problems, analysts are quick to note that most African nations aren't, at this point, going the way of Venezuela by strong-arming companies into resigning contracts.
Countries like Ghana and Egypt are lauded for stable investment climates. Libya, where significant unexplored acreage remains because of past U.S. sanctions that have since been lifted, has struck some big deals, including one with BP in May in which the company will spend an initial $900 million on exploration.
"On a relative basis, Africa is still a favorite. It's seen as safer and more predictable than places like Russia and Venezuela," says Oswald Clint, a London-based oil analyst at Sanford Bernstein, which provides investor research.
Chinese foreign exchange reserves reach US$ 1.33 trillion in first half of year. [ 2007-07-13 ]
Beijing, China, 13 July – China’s foreign exchange reserves grew by more in the first half of the year than during the whole of 2006, exceeding US$ 1.33 trillion at the end of June, the country’s central bank has said.
Chinese reserves grew by US$ 266.3 billion in the first half of the year, more than US$ 144 billion that in the same period in 2006, the People’s Bank of China said Thursday in a statement on its website.
Total exchanges growth for 2006 was US$ 247 billion.
Foreign exchange reserves grew 41.6 percent in 12 months and have now swollen to US$ 1.3326 trillion, according to the central bank.
It is estimated that 70 percent of China’s reserves are in US dollars, exposing China to massive financial losses due to the sliding value of the American currency.
In a bid to counteract this trend, the Beijing government is preparing to launch a state investment agency to manage a fifth of its foreign exchange reserves, the world’s biggest, betting on a strategy of diversification. (macauhub)
Adoption of euro in Sao Tome not a priority, says central bank chief [ 2007-07-13 ]
Lisbon, Portugal, 13 July - The governor of the central bank of Sao Tome and Principe has said that although the adoption of the euro currency by the islands is an “interesting” idea, it is not a priority.
“It is interesting while alternative, but what is needed is reorganization of the economy to respond to the challenges of competitiveness,” Arlindo Carvalho, governor of Sao Tome’s central bank, told the Lusa news agency Thursday.
Adoption of the euro is an idea being floated by some economists and politicians in Sao Tome, as well as ex-Portuguese finance minister Luis Campos e Cunha, who advocated this strategy last week during a visit to the islands.
If Sao Tome decides to replace its national currency, the best option is the euro because the EU is the archipelago’s main trading and business partner, a Portuguese academic was cited as saying by the Jornal de Sao Tome newspaper.
Equatorial Guinea’s president recently suggested that Sao Tome should adopt the CFA Franc.
Sao Tome’s central bank chief, speaking in the margins of a celebration marking the islands’ 32nd independence anniversary, said the adoption of the euro was a “question for reflection” by the authorities in the archipelago, who have more pressing problems to resolve. (macauhub)
Chinese firm wins $144m gas supply contract
By Taiwo Hassan
PAN Ocean Oil Corporation (POOC), a major upstream player in the nation's petroleum industry has awarded a contract worth $144 million to a Chinese firm - Lemna Energy Resources for the construction of a gas pipeline to supply gas to the on-going Independent Power Project (IPP) in Edo State.
According to POOC Managing Director, Dr. Festus Fadeyi, the commencement of gas supply to the IPPs is part of its commitment to fulfil the Federal Government's target to ensure availability of gas to the IPPs, come 2008.
Fadeyi disclosed that the contract awarded to the firm is for the commencement of the phase one project, adding that the project is expected to come onstream in 12 months time.
The managing director explained that the company would further be investing in the liquidified petroleum gas, as plans have been concluded to acquire gas plans for production.
Speaking at the contract signing ceremony, the POOC boss stated that the company is the first company to commence gas production in the nation's oil and gas sector, adding that the company faced some constraints, which hinder their gas supply.
Besides, with the award of the contract, Fadeyi said that this would help in revamping their gas facilities as they are poised to meet the Federal Government target of zero gas flaring in the country by 2008.
His words: "This gas project has been in the pipeline for 23 years precisely from 1984. Pan Ocean was the first company in Nigeria that pioneer gas project in the country some years back before Shell, Exxonmobil and Chevron, but we thank God that after some delays for many reasons, we have been able to finally seal the agreement that would resuscitate our gas project," Fadeyi said.
He commended the efforts of the former president Olusegun Obasanjo's administration for paying more attention to the power sector but noted that availability of gas to the power plant will accelerate improvement in power supply.
"We appreciate the effort of the current and the previous administration to make electricity available for everybody in the country by ensuring that all the IPP projects in the country are completed. So, this is one of the reasons, the government said that oil companies operating in the nation's oil and gas industry should build an IPP to increase the power generation in the country," he added.
Taiwan funds building of new market in Sao Tome’s capital [ 2007-07-12 ]
Sao Tome, Sao Tome and Principe, 12 July - The capital of Sao Tome has had a new market since Wednesday in a project valued at US$ 2.4 million and funded by Taiwan.
The new market, built from scratch in the center of Sao Tome city, has space for around 1,300 traders and sells a wide variety of products. The building is divided into over 80 stores, 120 counters, 110 banks and a car park.
Built by Sao Tome firm Setercop under a contact with the Public Works Ministry, the new market replaces the antiquated “Feira do Ponto” market, which fell short of the archipelago’s improving infrastructure standards.
President Fradique de Menezes opened the new market during commemorations of the islands’ 32nd anniversary of independence from Portugal on 12 July, 1975.
Besides assisting in the building of Sao Tome’s infrastructures, Taiwan has also invested in the islands’ sectors of health, education and agriculture through technical assistance, equipment donation and financial support. (macauhub)
lovemmelongtime: At This Point In Time, I Don't Believe ANY Bodies' Predictions UNTIL They Come True. I DO like to read them, but hey, it's fun to read the National Enquirer's' predictions for the coming year also. Seem to have the same rate of accuracy too.
jsc52033: We Are In Total Agreement. SEO got us to this point, and he has the power/contacts/and deal making smarts to deflect the attacks of our enemies and continue making beneficial deals for ERHE.
Long Live SEO
TopShelf: It Was Angry Asian
start reserving some buying power for the end of July. Good luck all. Angry Asian
Once More Unto the Breach of Trust: ERHC is Subpoenaed by the Senate
Wednesday, July 11, 2007
(ALL FROM JOE'S BLOG. R.M.)
A Senate subcommittee much like one that studied bribes by ExxonMobil, Chevron, Pioneer Natural Resources and Marathon Oil to West African leaders - and then fell strangely silent - is now turning its gaze towards smaller fry, the three employees of tiny Houston-based, Nigerian-owned oil company ERHC Energy, whose stock rose to $0.31 on the news.
The company won rights to various blocks in the Gulf of Guinea that may be worth countless billions to the Big Oil firms that badly wanted them, but Nigeria's newly-elected President said July 9 that he supports the current rights-holders - including ERHC Energy - and his government and that of Sao Tome have refused to cooperate with the tainted probe that ultimately produced the request.
Until ERHC broke the mold, no Nigerian company had ever been granted substantial rights to Nigerian oil. The country is the world's fourth largest oil producer, capable of more than 3 million barrels per day. But it is miserably poor and many of its citizens have no electricity. The oil revenue flows to Europe and the United States, or is swallowed up in corruption in Nigeria.
The JDZ's Second Licensing Round in 2005 saw a Nigerian-owned firm - ERHC is controlled by Nigerian businessman Sir Emeka Offor and its First Atlantic Bank - shoulder aside the American, French and British oil behemoths competing for six blocks of the Joint Development Zone. That region of the Gulf of Guinea is saidto hold some 14 billion barrels of oil, according to the Houston Chronicle.
ERHC and its partners, Swiss-based Addax Energy and others - have hired a drillship set to begin deepsea oil exploration of the rights in 2008.
The genesis of the Sao Tome probe is compelling.
George Soros, a 6.4% shareholder in Pioneer Natural Resources - a onetime partner of ERHC in the battle for lucrative drilling rights in the Nigeria-Sao Tome and Principe Joint Development Zone - paid tens of thousands of dollars through the Senior Lawyers Project for an investigative report signed by the Sao Tome and Principe Attorney General, but actually written by R. Dobie Langenkamp of the Tulsa U. School of Law, the father of a Nightmare on Elm Street star.
In the report, Langenkamp asked for an SEC and FBI probe of the company and its rights to JDZ blocks 2, 3 and 4, which are estimated to hold some 14 billion barrels of oil. ChevronTexaco and ExxonMobil have already struck oil in their adjoining Block 1, but now say that what the Wall Street Journal said could be a billion-barrel strike is not "financially viable."
Supoenas soon followed, all aimed at ERHC. The aim appears to be to get the company to turn over its rights to the likes of ExxonMobil, ChevronTexaco, Pioneer - the Soros investment which unsuccessfully fought ERHC for the rights - and Anadarko, which tried to get a joint bid with ExxonMobil approved after the deadline for bids had passed. That effort was rejected by the JDZ's Joint Ministerial Council, and buttons started getting pushed in Washington with greater intensity than ever.
The industry's p.r. mavens called in all their chits, apparently, as attacks on ERHC soon began appearing in The Wall Street Journal, Houston Chronicle, Harper's Magazine, the New Yorker and most recently, the New York Times, as the evildoer that cheated Sao Tome out of its oil rights.
But ERHC officials had twice rewritten their deal with Sao Tome, and its oil might never have gcome under scrutiny if ERHC had not paid for a $6 million geological study of potential Gulf of Guinea deposits.
Meanwhile, the bribery investigation of the Big Oil firms by the Senate Commerce Subcommittee on Energy remains unresolved.
According to an L.A. Times article that was never followed up, the senators were examining millions of dollars in bribes to West African leaders by ChevronTexaco, ExxonMobil and other companies, including Pioneer and another former ERHC partner, Noble, when the Commerce and Energy subcommittee investigation of Foreign Corrupt Practices Act violations suddenly disappeared.
Back in the day, one ERHC CEO actually denounced Sao Tome leaders at an airport press conference for demanding a bribe, and then left the country. None of the new stories mention Langenkamp, the Pensabenes or the bribery investigation that suddenly stalled.
Senate Energy Committee Republican chief counsel Judy Pensabene, a student of Langenkamp's - as was her husband, former Energy Dept. official Greg Pensabene, nopw the top government lobbyist for Anadarko - was honored by Langenkamp even as he was preparing to write the report. In 2005, he named Pensabene a "Distinguished Visiting Professor" at his Tulsa U. law school, where he trained dozens of the top lawyers in major oil companies (which, notably, would not include ERHC attorneys). Langenkamp serves with many of them on industry non-profit boards.
Meanwhile, Pensabene's boss - 83-year-old Republican Sen. Ted Stevens, until recently the chairman of the Senate Energy Committee - is now under investigation for the taxpayer-funded expansion of his home in Alaska, which doubled the compound's size. He is a strong supporter of ExxonMobil and ChevronTexaco's Arctic drilling projects and plans, and has been royally rewarded by the industry he oversees.
No newspaper has followed up on the twisted origins of the attack on ERHC. No one expects that they ever will. And now, more than 14 years after its offices were raided by the FBI, there is still no sign of an indictment against the company. An ERHC lawyer has agreed to meet with the SEC and provide them with documents on July 18, however.
Here is the Houston Chronicle piece:
July 11, 2007, 12:10AM
Subpoena delivered to ERHC
Senate panel questions payment for energy deals off west Africa
By TOM FOWLER
Copyright 2007 Houston Chronicle
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Houston's ERHC Energy has been subpoenaed by a Senate subcommittee looking into possible improper payments related to ERHC's oil and gas holdings around the island nation of São Tomé and Príncipe.
The U.S. Senate Committee on Homeland Security and Governmental Resources Permanent Subcommittee on Investigations sent the subpoena on Thursday asking for documents "in connection with its review of matters relating to the potential abuse of payments made to foreign governments," according to a statement by ERHC Monday.
Senate investigators are particularly interested in information "related to the acquisition of ERHC's interests in the Gulf of Guinea," where ERHC has the right to drill for oil and gas off the coast of São Tomé, the company said.
In the statement, interim CEO Nicolae Luca said ERHC believes development rights it negotiated with São Tomé over the past decade were "legitimately awarded to ERHC."
A spokeswoman for the Senate subcommittee declined comment on the investigation.
In December 2005, São Tomé's then-attorney general called on the U.S. to investigate ERHC's dealings in the region, saying in a report that ERHC and politically connected Nigerian businessman Emeka Offor "may have made improper payments to government officials."
Last year FBI agents raided ERHC's offices in Houston looking for possible "things of value" paid to officials in São Tomé and Nigeria, an FBI affidavit filed in Houston said.
Last month the U.S. Securities and Exchange Commission issued a subpoena to Sugar Land attorney O.J. Chidolue, an employee of a major ERHC shareholder, ordering him to hand over documents and speak with federal investigators.
According to court filings Chidolue and the SEC reached an agreement where he would provide the documents by June 29 and testify on July 18.
It could not be determined Tuesday if those terms have been met. SEC officials declined comment. Chidolue and his attorneys could not be reached.
ERHC has signed partnership deals with Swiss firm Addax Petroleum and China's Sinopec Corp., and said in a statement this week the companies were on target to begin drilling test wells off the west African coast next year.
tom.fowler@chron.com
ERHC Energy stock closed up $0.01 on the news.
posted by ...Joe Shea at 10:33 PM
Consultant faults U.S move to outlaw OPEC
THE move by United States (U.S) Congress to outlaw Organisation of Petroleum Exporting Countries (OPEC), and criminalise its membership should be regarded as a huge joke that cannot go anywhere, Dr Taiwo Idemudia, a former head of OPEC Economic Section, has said.
Idemudia, in an interview with the News Agency of Nigeria (NAN) in Lagos, at the weekened, said that the U.S law against monopoly could not be binding on other countries as "it is not compulsory that OPEC member countries should do business with U.S."
He explained that U.S lacked the jurisdiction to criminalise membership of OPEC since it also belongs to International Energy Association (IEA) which is saddled with the responsibility of ensuring that oil and gas trade was tailored favourably among member countries.
Idemudia, who was cited at a roundtable organised by the Centre for Petroleum Iinformation (CPI) in Lagos, said that if the U.S congress failed to drop the debate, OPEC could decide to trade the oil and gas in Euro and no longer in dollar.
Earlier in his paper, Idemudia said that the increase in oil and gas demand was basically due to world economic growth in China and India, among others.
Idemudia noted that the hydrocarbon prices in global market have failed to stimulate supply and expansion of the hydrocarbon production sector, adding that the OPEC supplies fell by 6000,000 bpd between fourth quarter of 2006 and first quarter of 2007.
He said that in spite of the favourable increase in crude oil supply at the international market, Nigeria's human development, environment, petroleum industry and linkages to the economy were poor.
Idemudia explained that Nigeria was producing three million bpd, a net oil exporter for 50 years and earned over $300 billion in the sector.
He suggested that for Nigeria to maximise the benefits of the sector and address the Niger Delta crises, governmnet should institute a Niger Delta marshall plan.
Idemudia also urged the government to establish Niger Delta Enterprise Commission, revamp the decaying hydrocarbon infrastructure and construct three mega refineries to be operated in same model like the Nigerian Liquified Natural Gas (NLNG).
tryoty; Take A Couple Of Valerian Root Or Kava Kava Capsules (ie Chill Pills)
lovemelongtime lol :0
What A Scenario, Big Gov./Big Oil Pis*ing @ ERHE. Meanwhile our partners drill bits will be turning. Pumping Oil & shipping it to China. ERHE will be getting compensation checks, and Big Brother & Big Oil won't have gained 1 Barrel.
I foresee a bunch of us sitting in Vegas laughing so hard our stomachs will hurt.
An Open Letter To Chevron/Exxon & Dick Cheney. Everything you've tried has backfired. Instead of getting more oil, you've only embarrassed yourselves. Now the oil is going to go to China and elsewhere. No matter what you've tried you've been outsmarted by a little Nigerian... SEO. (Mr. SEO I salute you sir).
You have F ed yourselves out of most of the oil in the JDZ, & if you continue on the same path you may lose out on the oil in the EEZ as well. I suggest you switch to Plan B. Do what you do best. When all else fails, BUY 'EM OUT! For $50 a share, you can probably buy up ERHE's rights to the JDZ, & for $75. you can have the EEZ rights also.
G.W. you can't outsmart a man smarter than you. Give it up. Our Country needs the oil. Buy out ERHE. You have the money. (And if not, you can always print more). Buy Out ERHE. $50. to $75. And all of our problems will be solved. (Yours And Mine)
Signed
An American Tax Payer
And ERHE Stockholder
OPEC to invest $130b on output enhancement scheme
AS supply crisis continued to stoke global oil price hike, member countries of Organisation of Petroleum Exporting Countries (OPEC) are to invest about $130 billion (N16.6 trillion) by 2012 for output enhancement scheme to meet rising demand.
The member countries have over 900 billion barrels or more than 78 per cent of the total proven crude oil reserves of some 1.2 trillion barrel.
OPEC studies have shown that world oil demand is projected to rise from the current 83.3 million bpd to 89.7 million bpd by 2010, to 96.5 million barrels per day (bpd) by 2015, 103.5 million bpd by 2020 and 117.6 million bpd by 2030. This is an increase of 33.4 million barrels per day (bpd) during a period of slightly more than 20 years.
Given this demand, member countries have embarked upon capacity expansion programmes to meet future demands.
Oil has surged above $70 a barrel from around $50 in January and is within sight of its August 2006 all-time high above $78. US gasoline prices have been the main driver in this years rally as refiners struggled to build stocks to meet peak summer demand in the world's top consumer.
At the weekend, oil rose above $75 a barrel in London, nearing 11 month highs, amid renewed concerns over tensions in key producer Nigeria and broader worries that global energy supplies will tighten going forward.
At 12.28 p.m., benchmark Brent crude contracts for August delivery were up 79 cents at $75.54 a barrel, having earlier struck a high of $75.66, its highest point since August 11, 2006.
Meanwhile, New York crude contracts for August delivery were up 62 cents at $72.45 a barrel.
In news out earlier, Nigerian gunmen threatened to kill a three-year-old British girl kidnapped recently, although the main militant group in the country, MEND, condemned the kidnappings.
MEND, however, remains at loggerheads with the Nigerian authorities and attacks against the oil industry have increased ever since the group called off its cease-fire with the government earlier this week.
On Wednesday, gunmen attacked an oil rig operated by Shell in Nigeria and seized five expatriate workers in the Soku region of Rivers State.
Petromatrix analyst, Olivier Jakob said while the situation in Africa's biggest oil producer is underpinning oil prices, it seems market players are looking to bet prices up come what may.
'There's still a lot of fear premium in the market, we saw it in the (U.S. inventory data) which was bearish all over ... but still the market is being bought,' he said.
The U.S. Energy Information Administration released data that showed a surprise rise in crude stocks last week as well as a greater than expected increase in gasoline supplies.
The rise in U.S. crude left overall stocks at near their highest levels in nine years, and although gasoline inventories remained below average levels, gasoline production reached a new record level last week.
Also, refinery operating capacity rose to 90 pct last week.
Olivier said the current fear premium in the market has been driven by constant warnings from the likes of the International Energy Agency that global supplies will fall near record low points this year unless OPEC ups output.
'The International Energy Agency (IEA) has put such a fear premium in the market that crude futures remains bought no matter what,' he said.
OPEC, which produces more than a third of the world's crude oil, is for now resisting calls to increase output, arguing the crude stocks are plentiful and that it is the refining bottleneck that is keeping prices high.
Global Insight analyst, Simon Wardell said OPEC is relying on an increase in production from non-cartel sources later this year to meet an expected increase in oil demand.
He added, however, that supply from non-OPEC sources is known to be very unreliable and that the market could in fact see a big stock draw-down unless OPEC opens up the taps.
Oil prices have gained more then four per cent since the start of the month and are now near all time record highs above $78 that were struck in July and August last year.
Economists recommend Sao Tome and Principe’s currency be benchmarked against euro [ 2007-07-05 ]
Sao Tome, Sao Tome and Principe, 5 July - International experts Wednesday recommended that Sao Tome and Principe benchmark its currency – the dobra - against the euro in order to make gains in foreign transactions and ensure macroeconomic stability.
The recommendation was made at a conference held Tuesday and Wednesday in Sao Tome entitled “Choice of exchange rate regime / opportunity and challenge for Sao Tome and Principe,” organised by Columbia University in the United States in partnership with the country’s parliament and the Sao Tome journalists’ association.
One of the speakers, a professor from Lisbon’s Universidade Nova and former Portuguese finance minister, Luís Campos e Cunha, recommended that the Sao tome authorities joined the group of currencies benchmarked against the euro as it is the main currency used in the archipelago’s transactions.
He said that 86 percent of exports and 65 percent of imports to Sao Tome and Principe were carried out with Euro zone countries, namely Portugal, the Netherlands and Belgium.
Campos e Cunha said that benchmarking the dobra against the euro would give the country a “solid and stable” currency and that along with internal economic reforms it could gain greater credibility for its monetary policy.
He also said that adopting the euro would have the immediate benefit of reducing transaction costs, by eliminating exchange rate differences.
Similarly to Cape Verde, the economist talked about the possibility of Sao Tome and Principe adopting a fixed exchange rate policy against the euro in order to more easily access loans from the Portuguese treasury to support its balance of payments and boost currency reserves, Based on a potential agreement between the two countries.
(macauhub)
Value of Sao Tome and Principe’s currency falls against euro and dollar [ 2007-07-04 ]
Sao Tome, Sao Tome and Principe, 4 July – The value of Sao Tome and Principe’s currency, the dobra, fell 14.22 percent against the euro and 0.69 percent against the dollar between December 2005 and September 2006, the archipelago’s central bank said in Sao Tome Tuesday.
According to the Statistical Bulletin of the Sao Tome and Principe Central Bank (BCSTP), at the end of December 2005 the euro was worth 14106.9 dobras and in September 2006 is was worth 16112.4 dobras.
The dollar in its turn, was worth 11929.7 dobras at the end of 2005 and 12673.9 dobras in September of last year.
At retail banks, the dollar stood at 12870.5 dobras in September 2006 against 12710.7 dobras in July 2006 and in the same period the euro’s value changed from 15973.1 dobras to 16343.7 dobras.
Over the last few days, the euro has stood at 18523.48 dobras while the dollar has been at 13632.24.
The devaluation of Sao Tome's currency against the dollar and the euro has been driven by several factors, namely the constant inflation rate increase, the balance of trade deficit and the rising price of fuel. (macauhub)