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Nigeria forecasts $60 billion investments in oil, gas sector
By Taiwo Hassan
IN what may position up the nation's hydrocarbon industry as a force to be reckoned with in the global oil market, Nigeria is expecting an over $60 billion of oil and gas investments across a variety of operations through to 2008 and more thereafter, Mr. Fisoye Delano, managing director of the Nigerian Petroleum Development Company Limited (NPDC) Limited, disclosed this recently at the Offshore Technology Conference (OTC) in Houston, United States (U.S.).
The country, which is estimated to hold 70 per cent of the remaining reserves to be discovered in the Gulf of Guinea, is eager for investors to help develop its domestic gas infrastructure, Delano stressed at an industry breakfast.
Nigeria's gas demand is expected to grow from one bcfd in 2006 to over 10 bcfd by 2010 driven by power generation and industrial development.
The government wants investors to develop gas pipeline infrastructure connecting the south of the country to the north and constructing an interconnector between the east and west grid. "We want gas processing plants, at least three to four, to support growth," Delano said. "These plants will be able to strip NGLs."
He said the government has put together an attractive package of incentives to attract investors.
On the government's plans to meet its zero-gas-flaring target in 2008, Delano added that the country currently flared 32 per cent of its gas coupled with the established number of projects to harness gas that otherwise would be flared, such as Nigeria Liquefied Natural Gas and the West African Gas Pipeline, the latter commissioned April 28, Delano noted.
"Nigeria wants to grow its oil reserves to 40 billion bbl by 2010 and production capacity to 4.5 million b/d by 2010. We want our gas revenue to match crude oil revenue. The President has stressed that GDP (Gross Domestic Product) growth is linked to oil," he said. Over two million b/d of additional production from offshore concessions in 2006-2011 is planned.
Deepwater exploration is the next major area of growth for Nigeria, which has had over seven billion bbl of discoveries so far.
However, Susan Farrell, senior director of Corporate Advisory Services at PFC Energy, raised questions about whether deepwater exploration and production is on a cycle or has reached its peak.
"As new discovery sizes fall and companies develop their portfolios faster than they find new fields, there is a predictable peak to current investment and production growth cycle from 2010-2014," she said.
Farrell said the geological potential of Nigeria is very promising with significant upside, but added that political risk will limit onshore/shallow prospects. "The political issues are the problem," she said. "Nigeria has 500,000 b/d of oil shut-in, and we think it will stay off-line until the end of the year." According to PFC's analysis, there is a small window of opportunity to bring it back onstream because of the rainy season and the time needed to repair infrastructure and restart operations.
Delano assured delegates that the government is working to engage the Niger Delta communities and share value from the oil and gas developments in their areas. "We want to install the appropriate infrastructure to stimulate economic growth," he said.
The Niger Delta only receives a 13 per cent share of the wealth generated from oil and gas in their region. Militants from the Niger Delta are pressing for 50 per cent of the proceeds while the government has proposed 18 per cent. The key question is whether the parties can agree a compromise and if so, when.
stocks2rise: The Taiwanese Must Believe The People Of Sao Tome And Principe Will Soon Have (Oil) Money To Spend.
Taiwanese authorities exhibit electronics products in Sao Tome and Principe [ 2007-05-04 ]
Sao Tome, Sao Tome and Principe, 4 May – The Taiwanese authorities are due from Wednesday to set up an electronics products fair in Sao Tome and Principe, a Taiwanese diplomatic spokesperson said in Sao Tome Thursday.
Organized by the Taiwan embassy in partnership with the Taiwan Council for the Development of Foreign Trade, this is the first fair of its kind to be held in the Sao Tome capital and it aims essentially to boost bilateral relations between the two countries, particularly in terms of trade.
according to a statement from the Taiwanese embassy, the fair, which will last three days, will exhibit computers, mobile telephones, digital television screens, digital cameras, MP3, MP4, DVDs, air conditioning units and other digital equipment.
Also according to the statement, other products at “attractive prices” will also be on display such as bicycles, motorbikes and healthcare materials such as digital thermometers and blood-pressure gages.
Diplomatic relations between Sao Tome and Principe and Taiwan were set up in May 1997. (macauhub)
doug c: This Reminds Me Of Clinton's Last Days When He Was Selling Presidential Pardons Before He Lost Power.
("The change of government is set for 29 May, and the signing of production sharing contracts with the winning bidders in this round is set for 28 May.")
Govt, operators join issues on 2007 oil block bid round
By Yakubu Lawal .Deputy Energy Editor
OIL industry operators have urged the government to review the 2007 oil block bid round with a view to postponing the exercise.
Investigation by The Guardian revealed that many operators including the Multi-national operators in the country are showing apathy to the exercise designed to sell 45 oil blocks in six basins before President Olusegun Obasanjo hands over power this month.
Specifically, investigation revealed that for Nigeria to have a credible bid round that will meet international standard and stand the test of time, investors need at least three months to be able to package all the relevant data for the technical and financial bid proposals.
A Senior Exploration Manager with one of the operating companies who spoke with The Guardian on the basis of anonymity questioned the rush for another bid round when the administration has less than one month to go.
Another manager in an indigenous oil prospecting firm said the situation that happened before General Abdulsalam Abubakar (rtd) left office in 1999 when oil blocks were hurriedly given to some investors are now being repeated by Obasanjo administration.
"The irony of this exercise is that when Abdulsalam did it eight years ago, Obasanjo revoked those licenses, so why the hurry? If they insist for credibility sake, the in-coming government of Umar Musa Yar Ardua should have the courage to stop it," the manager stated.
The managers who are also members of the professional bodies like the Nigerian Association of Petroleum Explorationists (NAPE) and Society of Petroleum Engineers (SPE) noted that most of the oil multi-national are already showing apathy to the entire exercise considering the fact that some of them were not pleased with the 2005 and 2006 bid rounds exercise.
A group of concerned operators have also expressed dissatisfaction with the on-going exercise, stating that the fact that some companies are being treated specially by granting them "the Right of First Refusal" shows that the exercise will lack transparency and competitiveness it requires.
According to The Guardian sources, government should focus on restoration of peace in the Niger Delta oil-producing region first than selling the blocks.
"The atmosphere in the Niger Delta is tensed enough and that has affected our operations negatively with many companies rejecting jobs in Nigeria and life of workers at risk amidst daily kidnapping and intimidation, this is why the Multi-nationals are not taking our government serious on this exercise" One of the operators said.
The industry sources listed other challenges as litigation in some of the blocks, lack of functional database for investors and raising the necessary financial and technical partners within the short time granted for the exercise.
The concerned stakeholders group however believed that if government must continue with the exercise, operators granted ROFR must do the following bearing in mind that many of those who enjoyed the privilege in the past exercise have not fulfil their own part of the bargain.
To this end the stakeholders want beneficiary of the ROFR to deposits the sum of $2 billion as investment fund in an Escrow Account established and controlled by the Central Bank of Nigeria.
Alternatively, group said government should suspend all arrangements for the 2007 Bid Round until there is compliance with the above condition.
They also want government to cancel all ROFR to all current beneficiaries in order to establish a level playing field for all bidders.
"FGN must review the 2007 Bid Round right away by cancelling all the ROFRs, extending the bid closing date by 2 months and establishing a level playing field for all bidders. Short of that, we are convinced it will need to be reviewed by the new government." the statement said.
But the Minister of Energy, Dr. Edmund Daukoru, while addressing group of investors in Houston, USA, assured that the exercise would be fair, transparent and competitive in conformity with Nigeria's commitment to the Extractive Industries Transparency Initiative (EITI).
"We are determined to ensure that Nigeria benefits from the best available state of the art technology and expertise in petroleum and gas acreage development and Production," Daukoru stated.
Daukoru had told investors in London recently that refusal of Multi-nationals to participate in the exercise was due to the stringent policy review of the government which had blocked all the loopholes that before now make it possible for foreign oil companies to profit more in the venture than the government.
Similarly, the Department of Petroleum Resources DPR had stated that it was unreasonable to demand that companies granted the Right of First Refusal 'must within 60 days deposit US$2 billion as investment fund in an escrow account.
DPR said explained that projects promised in the downstream sector that attracted such privilege are normally complex and development occurs in stages with financial and funding institutions gaining confidence and thus making funds available as the project matures.
" It is not realistic to deposit the entire project funds on day one, rather what is practical is the measure recently approved by Mr. President, requiring downstream investors to demonstrate seriousness by depositing the sum of US$1 million per 10,000 barrel per day capacity for oil projects (or per 10 million standard cubic feet capacity for gas projects) with the government." DPR said
The department pointed out that Government would return the funds to the investor if the project commences as agreed within 18 months of entering the agreements with the government otherwise the funds would be forfeited to the State.
" Thus an investor committing to develop a 100,000 barrel per day refinery or 1000 MW IPP will be required to domicile US$10 million with the government before a license is granted or Right of 1st Refusal is exercised." it added.
It stated further that it is untrue that companies granted the Right of 1st Refusal are exempted from payment of registration, application, prying and bid processing fees and are not required to deposit 50% of the bid Signature Bonus to be declared winner adding that in contrary all bidders will pay all fees mandatory and the companies enjoying the Right of 1st Refusal in addition must lease the data for the respective blocks that they are granted the Right of First Refusal.
Jan. 6th Oily Said "T-Minus 114 days till ERHC oil." 114 Days brings us to Monday April 30th.
Sao Tome to propose US$60 million debt relief to Paris Club [ 2007-04-25 ]
Sao Tome, Sao Tome and Principe, 25 April - The Sao Tome government is to ask the Paris Club of creditor nations to cancel the islands’ foreign debts of US$60 million, media in the archipelago have reported.
State Radio Nacional said a government delegation, led by Finance Minister Maria Tebus Torres, will travel to Paris next month for talks on the proposed pardoning of Sao Tome’s debts.
As part of its commitment to the Paris Club, France announced last November that it was rescheduling Sao Tome’s bilateral debt of 3.5 million euros to encourage investment in social projects in the islands.
The World Bank and IMF decided in Mach to pardon 91 percent of Sao Tome’s foreign debt, equivalent to US$327 million, under the Heavily Indebted Poor Countries initiative. (macauhub)
Pardoning of foreign debt seen as an achievement by Sao Tome government [ 2007-04-23 ]
Sao Tome, Sao Tome and Principe, 23 April - The debt relief announced last month for Sao Tome by its main international creditors is “one of the major achievements” of the archipelago’s government in its first year of power, Deputy Prime Minister Maria Tebus has said.
Tebus, standing in for Prime Minister Tomé Vera Cruz, currently receiving medical treatment abroad, was giving an appraisal of the first 12 months of Sao Tome’s government, which took office 20 April, 2006.
The International Monetary Fund and World Bank announced on 15 March that 91 percent of Sao Tome’s external debts, equivalent to US$ 327 million , was being canceled under the Highly Indebted Poor Countries Initiative (HIPC).
Tebus, who also serves as Sao Tome’s finance and planning minister, also said the debt relief granted was due to the government’s successful efforts in correcting the macroeconomic situation it inherited, characterized by soaring prices of essential goods and products.
“It was a tough and difficult battle that only began to show results from July, when the monthly inflation index fell from 5.15 percent to 0.9 percent,” she stressed.
Other notable achievements in the government’s first 12 months of office were the modernization of Sao Tome’s international airport in a project worth over US$ 1 million, the creation of a new national carrier, STP airways, as well as rehabilitation work on 70 kilometers of highways in the south of the country in a scheme valued at over US$ 30 million, Tebus added.
Sao Tome’s deputy prime minister also highlighted the re-launch of a cattle farming project with funding from African Development Bank, estimated to be worth US$ 6 million, and a new fisheries accord with the European Union, forecast to generate more than US$ 2 million annually for the islands.
Turning to future objectives for Sao Tome’s government, Tebus highlighted a US$ 1 billion project to build a new airport in the islands, water supply schemes and the purchase of a new ferry to strengthen links between the two main islands in the archipelago.
It was the first time for many years that a Sao Tome government’s review of its first year in power was dominated by economic questions, rather than the partisan issues that have been more prominent in earlier periods of political instability, analysts said. (macauhub)
Who's There?
exceo & Flightnews: "The fact is that the planets are mighty small and the distances between them are almost ridiculously large." Here is a good read... http://www.noao.edu/education/peppercorn/pcmain.html You will learn that the planets or so freaking small & so freaking far away from each other it would be freaking hard for one to have any influence on another, much less any creatures inhabiting them. I know your just having mental fun, but this web site may bring one back to reality.
(I don't think the planets will effect ERHE one way or another)
D.G. Here Are His Other Posts. To answer your question he'll be reliable as soon as one of his posts come true.
15 Dec 2006,
Mr. Humpty,
First time poster here but longtimer. This board is horrendous. Chiming in to agree that your work here is almost done. I am in accordance with this belief as there will soon be no reason to post here as fruition is near. I enjoy your posts since you seem to be able to see both sides of the coin. It has been a long road but even the village idiots here will prosper. Congrats on your hold. �
15 Dec 2006,
O57,
Not any idea who Humpty is but he see's both sides of the coin. His time here is just about over. Fruition is near. Many a year in the patch TX. What is your background 057? You a long here? Right place at right time for you O57. Patchtalk says a deal is complete. �
27 Dec 2006,
Quiet. If you want everyone to see the cat run out of the bag you need to do it when everyone is around. Not during the Holidays. Too Quiet.
Happy Holidays.
17 Jan 2007,
Deal. Meetings. Progress. Closer than you can imagine. �
18 Jan 2007, 09:17 AM EST
Deal. Meetings. PROGRESS. More office space needed. Do some reasearch on new people. Add it up. Winner.�
29 Mar 2007,
April 6 big day. Smile.�
Baytownoil Had 3 Posts On RB Today. All are included here.
Went to best Baker in town. Kitchen is clean. Desert soon. Going to be sweet. All IMO you know. Enjoy.�
I better elaborate eh?
My BAKER (one of the best around) has a brother who is a lawyer. He said kitchen is CLEAN and will now put the desert on the table. Apparently everyone likes the treat.�
Before I go relax for the weekend here's one more hint for the village idiots:
My BAKER has a brother named McKENZIE. They both said Kitchen is clean and can now put the desert on the table. how much to eat though? �
Some Of Us ERHE Investors Plan To Be Millionaires. This article has some good info on what not to do.
8 lottery winners who lost their millions
Having piles of cash only compounds problems for some people. Here are sad tales of foolishness, hit men, greedy relatives and dreams dashed.
By Bankrate.com
For a lot of people, winning the lottery is the American dream. But for many lottery winners, the reality is more like a nightmare.
"Winning the lottery isn't always what it's cracked up to be," says Evelyn Adams, who won the New Jersey lottery not just once, but twice (1985, 1986), to the tune of $5.4 million. Today the money is all gone and Adams lives in a trailer.
"I won the American dream but I lost it, too. It was a very hard fall. It's called rock bottom," says Adams.
"Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language -- 'No.' I wish I had the chance to do it all over again. I'd be much smarter about it now," says Adams, who also lost money at the slot machines in Atlantic City.
"I was a big-time gambler," admits Adams. "I didn't drop a million dollars, but it was a lot of money. I made mistakes, some I regret, some I don't. I'm human. I can't go back now so I just go forward, one step at a time."
Living on food stamps
William "Bud" Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his Social Security.
"I wish it never happened. It was totally a nightmare," says Post.
A former girlfriend successfully sued him for a share of his winnings. It wasn't his only lawsuit. A brother was arrested for hiring a hit man to kill him, hoping to inherit a share of the winnings. Other siblings pestered him until he agreed to invest in a car business and a restaurant in Sarasota, Fla., -- two ventures that brought no money back and further strained his relationship with his siblings.
Post even spent time in jail for firing a gun over the head of a bill collector. Within a year, he was $1 million in debt.
Post admitted he was both careless and foolish, trying to please his family. He eventually declared bankruptcy.
Now he lives quietly on $450 a month and food stamps.
"I'm tired, I'm over 65 years old, and I just had a serious operation for a heart aneurysm. Lotteries don't mean (anything) to me," says Post.
Deeper in debt
Suzanne Mullins won $4.2 million in the Virginia lottery in 1993. Now she's deeply in debt to a company that lent her money using the winnings as collateral.
She borrowed $197,746.15, which she agreed to pay back with her yearly checks from the Virginia lottery through 2006. When the rules changed allowing her to collect her winnings in a lump sum, she cashed in the remaining amount. But she stopped making payments on the loan.
She blamed the debt on the lengthy illness of her uninsured son-in-law, who needed $1 million for medical bills.
Mark Kidd, the Roanoke, Va., lawyer who represented the Singer Asset Finance Company who sued Mullins, confirms her plight. He won a judgment for the company against Mullins for $154,147 last May, but they have yet to collect a nickel.
"My understanding is she has no assets," says Kidd.
Back to the basics
Ken Proxmire was a machinist when he won $1 million in the Michigan lottery. He moved to California and went into the car business with his brothers. Within five years, he had filed for bankruptcy.
"He was just a poor boy who got lucky and wanted to take care of everybody," explains Ken's son Rick.
"It was a hell of a good ride for three or four years, but now he lives more simply. There's no more talk of owning a helicopter or riding in limos. We're just everyday folk. Dad's now back to work as a machinist," says his son.
Willie Hurt of Lansing, Mich., won $3.1 million in 1989. Two years later he was broke and charged with murder. His lawyer says Hurt spent his fortune on a divorce and crack cocaine.
Charles Riddle of Belleville, Mich., won $1 million in 1975. Afterward, he got divorced, faced several lawsuits and was indicted for selling cocaine.
Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, giving to politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand.
One Southeastern family won $4.2 million in the early '90s. They bought a huge house and succumbed to repeated family requests for help in paying off debts.
The house, cars and relatives ate the whole pot. Eleven years later, the couple is divorcing, the house is sold and they have to split what is left of the lottery proceeds. The wife got a very small house. The husband has moved in with the kids. Even the life insurance they bought ended up getting cashed in.
"It was not the pot of gold at the end of the rainbow," says their financial advisor.
Luck is fleeting
These sad-but-true tales are not uncommon, say the experts.
"For many people, sudden money can cause disaster," says Susan Bradley, a certified financial planner in Palm Beach, Fla., and founder of the Sudden Money Institute, a resource center for new money recipients and their advisors.
"In our culture, there is a widely held belief that money solves problems. People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves," she says.
Craig Wallace, a senior funding officer for a company that buys lottery annuity payments in exchange for lump sums, agrees.
"Going broke is a common malady, particularly with the smaller winners. Say you've won $1 million. What you've really won is a promise to be paid $50,000 a year. People win and they think they're millionaires. They go out and buy houses and cars and before they know it, they're in way over their heads," he says.
Are you really a 'millionaire'?
Part of the problem is that the winners buy into the hype.
"These people believe they are millionaires. They buy into the hype, but most of these people will go to their graves without ever becoming a millionaire," says Wallace, who has been in the business for almost a decade.
"In New Jersey, they manipulate the reality of the situation to sell more tickets. Each winner takes a picture with a check that becomes a 3-foot by 5-foot stand-up card. The winner is photographed standing next to a beautiful woman and the caption reads: 'New Jersey's newest millionaire.'"
Winning plays a game with your head
Bradley, who authored "Sudden Money: Managing a Financial Windfall," says winners get into trouble because they fail to address the emotional connection to the windfall.
"There are two sides to money. The interior side is the psychology of money and the family relationship to money. The exterior side is the tax codes, the money allocation, etc."
"The goal is to integrate the two. People who can't integrate their interior relationship with money appropriately are more likely to crash and burn," says Bradley.
"Often they can keep the money and lose family and friends -- or lose the money and keep the family and friends -- or even lose the money and lose the family and friends."
Bill Pomeroy, a certified financial planner in Baton Rouge, La., has dealt with a number of lottery winners who went broke.
"Because the winners have a large sum of money, they make the mistake of thinking they know what they're doing. They are willing to plunk down large sums on investments they know nothing about or go in with a partner who may not know how to run a business."
What if you get so (un)lucky?
To offset some bad early decision-making and the inevitable requests of friends, relatives and strangers, Bradley recommends lottery winners start by setting up a DFZ or decision-free zone.
"Take time out from making any financial decisions," she says. "Do this right away. For some people, it's smart to do it before you even get your hands on the money.
"People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability -- even friends and family," she cautions.
"It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture.
"It's a time to think things through, sort things out and seek an advisory team to help make those important financial choices."
As an example, Bradley says that people who come into a windfall will typically put buying a house as No. 1 in list of 12 choices, while investing is No. 11.
"You really don't want to buy a new house before taking the time to think about what the consequences are.
"A lot of people who don't have money don't realize how much it costs to live in a big house -- decorators, furniture, taxes, insurance, even utility costs are greater. People need a reality check before they sign the contract," she says.
Evelyn Adams, the N.J. lottery double-winner, learned these lessons the hard way.
"There are a lot of people out there like me who don't know how to deal with money," laments Adams. "Hey, some people went broke in six months. At least I held on for a few years."
(For more information on dealing with a sudden change in your fortunes, read "You're suddenly rich? Bummer," on MSN Money.)
By Ellen Goodstein, Bankrate.com
texasspeculator: My father Had Prostate Cancer for 15 Years. He kept it in check with Herbs, Vitamins & Supplements. Then after taking 1 small & 1 large bottle of Poly MVA, it disappeared.
http://www.polymva.biz/contact/contact_us.asp
Stuff isn't cheap but seemed to work.
Energy ministers of gas producing nations dismiss cartel talks
MAJOR gas exporting countries have said they will form a committee to examine the way in which they work together.
However, meeting in the Qatari capital, Doha, the informal group, called the Gas Exporting Countries Forum, said it had no plans to set up a cartel.
Russia, will head the committee with other members also including Iran and Kazakhstan, Algeria and Qatar.
Gas accounts for about 20 per cent of the fuel used globally for heating, cooking and generating electricity.
In a statement, the forum said the committee would "elaborate a comprehensive plan for enhancing the forum's performance structure and define a way forward for its future development".
The forum is a relatively informal grouping with a variable membership but it accounts for something like 70 per cent of known reserves.
Some of its leaders had expressed interest in forming a cartel similar to OPEC to control production and price.
But the Russian energy minister Viktor Khristenko said he felt that the forum should remain unchanged.
"It should continue existing as such and should keep up its transparent and coordinated position towards consuming countries," the minister said.
He added that the forum would launch a joint study to examine prices, with Russia, the world's largest gas supplier, organising the process.
Mr. Khristenko had earlier played down talk that the group was looking to set up a cartel similar to OPEC.
Scepticism
Venezuela and Iran have led calls for such a scheme, saying this would be in the best interests of producers.
"Having such an organisation for the gas exporting countries is beneficial to all sides," Iranian Oil Minister Kazem Vaziri Hamaneh said, but added the process would be a lengthy one.
Mr. Hamaneh dismissed opposition from the U.S. and other Western nations. Many analysts are sceptical about whether a gas cartel could work.
Most gas trade is through regional pipelines so there is not the same kind of global market that a cartel could seek to control as there is for oil.
Gas contracts also tend to be long-term, covering periods as long as 30 years, which makes it difficult to cut production to raise prices.
Imagine a fuel made from gas. Containing these same qualities… and more.
So ultra pure that it is one of the cleanest fuels available. A fuel that gives improved engine and environmental performance.
A fuel that can be used in existing diesel engines… from ships, trucks and buses through to the family car.
Welcome to the world of Sasol Chevron.
http://www.sasolchevron.com/default.htm
Sasol and Chevron signed a Memorandum of Understanding today for the creation of a new global alliance to implement ventures based on Sasol’s gas-to-liquids (GTL) technology.
The Memorandum of Understanding was signed on behalf of the two companies by Pieter Cox, managing director and chief executive officer of Sasol Limited and Richard Matzke, president of Chevron Overseas Petroleum Inc.
Pieter Cox said: "This is an important milestone in Sasol’s globalization programme. We are excited about the myriad of opportunities made possible via a global alliance with Chevron. There are numerous synergies between Sasol and Chevron that will enable the alliance to accelerate the implementation of GTL ventures and we are confident that this joint venture will further strengthen Sasol’s position as the world-leader in Fischer-Tropsch technology. Chevron has also invited Sasol to participate in several upstream oil and gas exploration opportunities".
The proposed global joint venture broadens an existing relationship between Sasol and Chevron, established with the announcement in April last year of a joint feasibility study to implement a GTL plant in Nigeria. The facility will be capable of converting natural gas into synthetic crude oil, which will be further processed into commercial products, primarily high-quality, environmentally superior diesel and naphtha products. The initial feasibility study has since been expanded to increase target production from 20 000 to 30 000 barrels per day. Cox said: "We are confident that the project will be sanctioned before the end of this year, when design work should commence to allow the plant to come on stream in 2003."
The global joint venture between Sasol and Chevron will build on the foundation laid by Sasol, who is already involved in advanced stages of feasibility studies for several GTL ventures. Proprietary technologies from both companies will be used: Sasol’s SLURRY PHASE DISTILLATE™ technology and Chevron’s ISOCRACKINGTM technology. It will build on the technical strengths of each company in international upstream gas development and the production and marketing of GTL products. In addition to the advantages of gas opportunities for Sasol and Chevron, the alliance will also offer innovative GTL solutions for commercializing gas resources with other partners worldwide. The experience and technologies of both companies will contribute to reduced development costs and accelerate the use of Sasol’s GTL technology worldwide.
Sasol’s existing GTL-related agreements with other companies will continue independently of the global joint venture with Chevron.
Sasol’s gas-to-liquids technology offers most promising prospects for the marketing of environment-friendly fuels in the 21st century. Referring to the environmental benefits offered by the GTL process, Cox commented: "Never before has the oil industry faced such environmental challenges in both its operations and its products. Not only does Sasol’s GTL process offer a clean solution to an otherwise wasted natural resource, but GTL-fuels are already being heralded as the new generation clean fuels of the future. With the ever-increasing demand for environment-friendly energy, our high quality, sulphur-free, aromatic-free Fischer Tropsch fuels will not only challenge current standards, but will also establish new benchmarks for the fuels industry."
Richard Matzke said: "Gas-to-liquids technology is so promising that its development could create an entire paradigm shift throughout the petroleum industry. There are trillions of cubic feet of natural gas throughout the world, isolated from the traditional gas infrastructure. We believe application of GTL technology will become the preferred method to commercialize such natural gas resources. Equally important, this alliance has the potential to deliver market-based, economic solutions to reduce the need to routinely flare associated gas, creating what we see as a win/win/win situation".
Copyright © 1998 - 2000 Sasol Limited. All Rights Reserved. Please see our Legal Information.
alwright: I Still Recommend The DVD
alwright: Oh Heavens No. eom
alwight You Need To Rent The Documentary "Who Killed The Electric Car" (A real eye opener). You'll find out Batteries HAVE been invented. Invented & done away with, by GM & the oil industry. The oil industry doesn't want cars running around on battery power, & GM doesn't want cars that don't need much repairs & maintenance.
JackCB: Could You Ask Your High Up Friend WHY, Exxon Won't Deal With ERHE? This has been rumored for many years, but no one has ever explained Exxon's hatred for ERHE. Would appreciate it if you would.
Q. What's The Latest On Chevron Drilling On Block One? Have they made a firm commitment for new holes?
No plan to leave Niger Delta, says Shell
From Kelvin Ebiri (Port Harcourt)
THE spate of hostage taking, vandalisation of oil facilities and other terrorist activities in the Niger Delta targeted at foreign oil companies notwithstanding, Shell Petroleum Development Company (SPDC) has no plans to leave the troubled oil-rich region.
The company's new Deputy Managing Director, Mr. Dale Rollins, stated this at the Government House, Port Harcourt, Rivers State, after his maiden visit to the state governor, Peter Odili.
Rollins told journalists that despite the kidnapping of expatriate oil workers and vandalisation of oil facilities, Shell was staying put in the Niger Delta, which it considered very strategic to its operations.
According to Rollings, Shell had plans to make Niger Delta "better and brighter for the people." Indeed, plans were already in top gear to give indigenous contractors more opportunities, particularly those from the host communities.
Rollins said the essence of this was to ensure that local contractors participate in Shell's project execution.
He noted that there was a pressing need for more foreign participation in the Nigerian oil sector because it would enhance competition and promote efficiency.
Meanwhile, groups like the Movement for the Survival of Ogoni People (MOSOP) has repeatedly urged the Federal Government to consider allocating the Ogoni oil concession to a new operator other than Shell if the country wanted early commencement of oil exploration and exploitation in Ogoni.
On February 18, last year, a militant group called Movement for the Emancipation of the Niger Delta (MEND), fighting for indigenes of the Niger Delta to control the oil and gas resources, in the area, blew up oil pipelines and a tanker-loading terminal at Forcados belonging to Shell, thereby forcing the Anglo-Dutch and biggest oil and gas firm in Nigeria to suspend 477,000-barrels-a-day operations.
Just last year, the group also detonated a car bomb at Shell's Residential Area (RA) at Rumukrushi, along Aba-Port Harcourt express road, in Port Harcourt, forcing most of the expatriates to send their families out of the country.
OPEC Ministers Reject Cut in Oil Price
By Fidelia Okwuonu with agency report, 03.15.2007
The Organisation of Petroleum Exporting Countries (OPEC), at its meeting yesterday in Vienna, Austria, rejected a cut in the price of oil despite the cost,.
The comments by the oil ministers of Nigeria and Kuwait as well as a senior Libyan oil official, reflected satisfaction with present prices on the part of OPEC.
According to the report, it further indicates that the oil ministers will not change the output when they convene again. The officials stated that the committee estimates current compliance with the two rounds of cuts agreed on in October and December last year to be about 70 percent.
The report also added that without Iraq and Angola, which are not bound by quotas, daily OPEC oil production last month was 26.8 million barrels a day.
"Total OPEC output last month averaged 30.2 million barrels — 400,000 barrels less than OPEC should produce to meet world demand," said the International Energy Agency (IEA).
According to the report, "two cuts in the past four months have contributed to relative stability that has kept benchmark crude between $50 and $60 a barrel down from the record highs of above $78 a barrel last summer, but still around 40 percent above 2004 levels."
"Present prices leave comfortable profit margins both for producers and the major oil companies while remaining below the pain threshold that leads to reduced world consumption, and increased interest in alternative fuels such as ethanol.”
Addax, Sinopec to invest $73.8 million on oil prospecting in JDZ blocs
By Sulaimon Salau with agency report
ADDAX Petroleum and a Chinese oil company, Sinopec, operators of blocs two and four in the Nigeria, Sao Tome and Principe Joint Development Zone (JDZ) have unveiled their plans to invest $73.8 million on prospecting oil from the two wells.
Representatives of both companies revealed the investment estimate recently in Sao Tome, after signing a drilling contract with Indian based Aban Offshore and the Joint Nigeria Sao Tome and Principe Exploration Authority, which was presided over by Sao Tome Oil Minister, Manuel Deus Lima.
The joint venture stated that the prospecting process to be carried out by Aban Offshore, a company specialising in deepwater drilling, would essentially be the drilling of four wells between 2008 and 2013, in the two blocs, located in the Gulf of Guinea.
The agreement would see Aban drill up to 10 wells in total. The wells are meant to be shared across the blocs in which Addax and Sinopec operates. It contemplates five well slots and five optional well slots. Under a separate rig sharing rig agreement. Sinopec will be allocated one of the firm well slots, which will fulfil the commitment well as agreed under the Block Two Production Sharing Contract.
According to the agreement, the two companies will share the cost of the prospecting based on $410,000 per day for each well, each of which will take an estimated 45 days.
General Manager, Addax Petroleum, Mr. Jeff Schrull speaking after signing the agreement said, "I am delighted that we have secured drilling capability for our project on competitive terms from Aban Abraham."
He said that Addax and its co-ventures were fortunate to find Aban Abraham drillers in view of the rising cost of drilling. "The contract will enable us to complete an extensive exploration and appraisal programme, which has the potential to realise considerable value for Addax, its shareholders and the other stakeholders in terms of
crude exploitation," he said.
Schrull promised that his company and its partners would be committed to minimum work programme before the discovery of first oil.
In his remarks, the JDA Chairman, Ado Wanka said that the initiative would go a long way to facilitate the exploration and exploitation of crude oil in the zone.
He described the event as a huge success, which signified that stakeholders were eager to get the first oil on record time.
The representative of Sinopec, Lian Mingxiang said that the company felt opportune to be part of the venture. "We will do everything humanly possible to ensure the success of the project while bringing our varied expertise to bear on the projects," he said.
Chinese state oil company, Sinopec in March 2006 acquired the exploration rights to bloc two for $71 million in signing bonuses, and associated to other companies, such as Addax, which has a 14 per cent share.
In the same round of sales of oil rights, organised by the Joint Development Authority (JDA), Addax was granted bloc four for $90 million, with a minority stake owned by other companies.
The area also includes bloc three, which was granted to a U.S. company, Annadarko for $40 million, with a minority share of 15 per cent owned by Addax.
Addax Petroleum is the operator of block four, while Sinopec will operate blocks two and three and JDA is the concessionaire.
China's Sinopec, Switzerland's Addax to jointly drill for oil off Sao Tome
March 11, 2007: 02:12 PM EST
SAO TOME, Mar. 11, 2007 (AFX International Focus) -- Chinese oil company Sinopec (NYSE:SNP) and Switzerland's Addax said they will join forces in the search for oil in the waters off Nigeria and the island nation of Sao Tome and Principe.
'We have decided to carry out the drilling together to reduce costs, come to more than 20 million dollars,' Addax's operations chief in the region Jeff Schrull told AFP.
Sao Tome's minister of natural resources, Manuel de Deus Lima, welcomed the signing of the deal a 'historic moment.'
'We have waited for a long time for the purchasing companies to advance on the road towards the first drillings,' he said.
The two companies signed a deal in Sao Tome on Friday to begin offshore drilling in the oil development zone from August 2008, using a specially adapted ship made by the Indian company Aban Abraham Offshore.
According to the companies, the crude oil reserves they are aiming to pump up lie at depths of between 1,500 and 3,500 metres (5,000-11,500 feet).
In addition to Addax and Sinopec, US oil companies ChevronTexaco (NYSE:CVX) and Anadarco, as well as Nigerian ERHC own blocs in the same development sector.
Sao Tome included its first anticipated oil revenues in its 2005 budget, but the reserves have yet to be proven and the barrels are not expected to begin flowing until 2010 or 2011.
Sinopec and Addax Petroleum invest in oil prospecting in Sao Tome and Principe [ 2007-03-12 ]
Sao Tome, Sao Tome and Principe, 12 March – Chinese oil company Sinopec and Addax of Switzerland estimate they will spend US$73.8 million on prospecting two oil blocs in the joint exploration area between Sao Tome and Principe and Nigeria, a representative of both companies said in Sao Tome Friday.
Jeff Schrull, made the investment estimate Friday in the capital of the archipelago, after signing a drilling contracting with India's Aban Offshore and the Joint Nigeria Sao Tome and Principe Exploration Authority, which was presided over by Sao Tome oil minister, Manuel Deus Lima.
Schrull said that the prospecting process to be carried out by Aban Offshore, a company specializing in deepwater drilling, would essentially be the drilling of four wells between 2008 and 2013, in the two blocs, located in this area of the Gulf of Guinea.
The two companies will share the cost of the prospecting based on US$410,000 per day for each well, each of which will take and estimated 45 days.
In March 2006, Chinese state oil company Sinopec acquired the exploration rights to bloc 2 for US$71 million in signing bonuses, and is associated to other companies, such as Addax, which has a 14 percent share.
In the same round of sales of oil rights, organized by the Joint Authority for Development – Nigeria and Sao Tome and Principe, Addax was granted bloc 4 for US$90 million, with a minority stake owned by other companies.
The area also includes bloc 3, which was granted to US company Annadarko for US$40 million, with a minority share of 15 percent owned by Addax.
A few months ago, US oil company Chevron Texaco announced it had struck oil, as yet without any commercial guarantee, in a bloc located in the joint area between Sao Tome and Principe and Nigeria, the signing bonus of which cost US$123 million. (macauhub)
Walldog: Last Line Says 1 Well Will Be In OPL 291.
Aban Abraham to spin bit for Addax
By Upstream staff
Canadian driller Addax Petroleum said it hoped to start exploration off west Africa in the middle of next year after signing up the deep-water drillship Aban Abraham in a joint deal with China's Sinopec.
Addax and Sinopec are each operators of blocks in the joint development zone shared by Nigeria and Sao Tome in the Gulf of Guinea.
Under the deal, the Aban Abraham will drill up to 10 wells, including five firm and five optional bores.
Addax said the partners would pay a maximum day-rate of $410,000 for the drillship.
Addax holds stakes in Blocks 2, 3 and 4 in the joint development zone and in OPL 291 in Nigerian waters. It operates Block 4 and OPL 291 while Block 2 is operated by Sinopec. In addition to Sinopec, US-based explorer EHRC holds interests in both Block 2 and 4.
Under the agreement with Aban Offshore Limited, the Aban Abraham will drill at least three of the agreed wells in Block 4 and one on OPL 291, Addax said.
Beijing plays down end of partnership between Sonangol and Sinopec [ 2007-03-09 ]
Beijing, China, 9 March - The Chinese government played down Friday the end of negotiations between Angolan state oil company Sonangol and its Chinese counterpart Sinopec for the joint construction of the Lobito refinery, saying that this was a consequence of the way the market worked.
“Some cases [of international economic cooperation] are successful, other are not,” said the spokesman of the Chinese Foreign Affairs Ministry, Qin Gang, at a routine press conference.
Qin was commenting on the announcement from Sonangol, made Tuesday, that it would build the Lobito refinery, in central Angola, itself, which is a project valued at US$3.7 billion, after negotiations with Sinopec failed.
The breakdown of the deal is the first significant failure of a Chinese oil company in Africa, after Beijing had invested time, money and diplomatic efforts in its relationship with Africa in general and Angola in particular, in order to ensure safe and preferential access to the continent’s natural resources, which China needs to feed its rapid economic growth.
The spokesman did not reply to a question about the consequences for China of the failure of the deal with Sonangol, which analysts have said could threaten the Chinese power cooperation strategy in Africa.
Zhao Qing of Sinopec’s International Department, responsible for the company’s partnerships, told Portuguese news agency Lusa in Beijing that he was not aware of the end of negotiations with Sonangol.
Recently, at a press conference in Luanda, the chairman of the board of Sonangol said that negotiations had continued until January but that later they came to a stalemate due to a lack of agreement about what to produce at the refinery.
“We cannot build a refinery just to make products for China,” said Manuel Vicente, cited by Angolan newspaper, Semanario Angolense.
In June 2006, Sinopec, which is Asia's largest oil companu by refining capacity, bought stakes in three Angolan offshore oil blocs at a cost of over US$2 billion, with total proven reserves of 3.2 billion barrels, for joint exploration with Sonangol, in a joint venture in which the Chinese company has a 75 percent stake.
The Chinese government, through the Exim Bank, over the last three years has granted over US$4.4 billion in loans to Angola, to be repaid in barrels of oil. (macauhub)
Wondering If We're At The Beginning Of Our Annual Climb Into The 80's & 90's?
Oily Are They Bringing Treasure, Or Do They Have Their Cannons Pointed At Us And Swords In There Mouths?
jsc50233: Must Be Why Nothing Ever Gets Done Over There. They don't even know what day it is.
O.T. On Tuesday, March 7 and Wednesday, March 8, H.E. Nasir el-Rufai, Minister of the Nigerian Federal Capital Territory of Abuja, will visit New York to discuss the upcoming Nigerian presidential elections. Minister el-Rufai is at the forefront of Nigeria's anti-corruption efforts, which have drawn praise from the Nigerian public.
The upcoming Nigerian presidential elections (April 2007) will be an important referendum on Nigeria's progress. This election will also mark the first peaceful transition of power between democratically elected Nigerian presidents. Minister el-Rufai, not campaigning himself for the presidency, visits New York as a representative of the current Nigerian government to discuss the importance of the upcoming election and key issues facing the next Nigerian president.
Bio - H.E. Mallam Nasir Ahmad el-Rufai
Minister of the Federal Capital Territory of Abuja
Nasir el-Rufai has been Minister of the Abuja Federal Capital Territory since 16 July 2003. He is a member of the ruling People's Democratic Party (PDP). He received education at the elite Barewa College in Zaria, Nigeria and at Ahmadu Bello University, also in Zaria. He also has an MBA from Harvard University and has attended programs at the Georgetown School of Foreign Service. From November 1999 to July 2003, he was the head of the Bureau of Public Enterprises and Member/Secretary of the National Council of Privatization where he spearheaded the privatization of many government owned companies.
Under his leadership, Abuja has experienced a radical improvement of infrastructure, all of which has been constructed under new land use regulations designed to prevent corruption. Along with the President and members of the Economic Management Team, Mr. el-Rufai currently spearheads an effort to reform Nigerian public service. Mr. el-Rufai has also contributed to efforts to reform government procurements, establish an extractive industry transparency initiative, and oversee public expenditure. These initiatives aim to create regulations and procedures that will permanently undermine the idea that corruption and bribery are the only ways to do business in Nigeria.
Business Council for International Understanding
O.T. U.S. Draws Negative Ratings in Poll
Israel, Iran and the United States were the countries with the most negative image in a globe-spanning survey of attitudes toward 12 major nations. Canada and Japan came out best in the poll, released Tuesday.
The survey for the British Broadcasting Corp.'s World Service asked more than 28,000 people to rate 12 countries - Britain, Canada, China, France, India, Iran, Israel, Japan, North Korea, Russia, the United States and Venezuela - as having a positive or negative influence on the world.
Israel was viewed negatively by 56 percent of respondents and positively by 17 percent; for Iran, the figures were 54 percent and 18 percent. The United States had the third-highest negative ranking, with 51 percent citing it as a bad influence and 30 percent as a good one. Next was North Korea, which was viewed negatively by 48 percent and positively by 19 percent.
Canada had the most positive rating in the survey, with 54 percent viewing it positively and 14 percent negatively. It was followed by Japan and France.
Respondents were also asked their views of the 27-member European Union; 53 percent saw it as positive and 19 percent as negative.
Britain, China and India were viewed more positively than negatively, while Russia had more negative than positive responses. Opinion on Venezuela was evenly split.
'It appears that people around the world tend to look negatively on countries whose profile is marked by the pursuit of military power,' said Steven Kull, director of the University of Maryland's Program on International Policy Attitudes, which conducted the research along with pollster GlobeScan.
'Countries that relate to the world primarily through soft power, like France and Japan and the EU in general, tend to be viewed positively,' he added.
Pollsters questioned about 1,000 people in 27 different countries, including the U.S., Britain, France, Germany, Russia, China, India, Brazil, Mexico and Australia; as well as four predominantly Muslim countries: Egypt, Turkey, the United Arab Emirates and Indonesia; and two countries with large Muslim populations: Lebanon and Nigeria.
The respondents were interviewed in person and over the phone from November to mid-January. The margin of error ranges from 3.1 percent to 4.9 percent, depending on the country.
O.T. African trade with China is an opportunity to create regional markets, study says [ 2007-03-05 ]
Lisbon, Portugal, 5 March – Increased trade with China is an opportunity for African countries to develop regional markets, despite this being increasingly politically sensitive, the director of the South African Institute of Strategic Studies (ISS) said.
“African countries cannot compete with Chinese manufactured products, but if the create larger internal markets, through free trade areas, there could be potential in the long term,” said Jakkie Cilliers, in an article published Thursday evening.
“Africa needs trade, not humanitarian aid. China, with all of its immediate self interest, is creating exactly that,” he said.
The executive director of the ISS noted, however, that development through economic growth required "a broad approach" and “internal barriers” must be overcome, “such as the efficiency of public spending,” of African nations.
Official figures point to trade between Chin and Africa having increased four-fold between 2000 and 2005, to US$39.7 billion.
The aim of the Chinese authorities is to more than double this figure by 2010, reaching US$100 billion, which is a higher figure than trade with the United States.
Angola is already one of China’s main oil suppliers, together with the Sudan. (macauhub)
O.T. Spain provides aid for water and sanitation sector in Sao Tome and Principe [ 2007-03-05 ]
Sao Tome and Principe, 5 March – Spain has provided aid of US$1.4 million o help Sao Tome and Principe with a social project for improving its water supply and sanitation system designed by the archipelago’s Red Cross, the project’s director told Macauhub Saturday.
Eduardo Garrido said that the funds made available to the archipelago, were 80 percent guaranteed by the Spanish International Cooperation Agency and the remainder would come from the Spanish Red Cross.
Garrido noted that the project would begin in a few days and is part of the Sao Tome government’s policy to combat poverty.
The project essentially includes improving the water supply system, building social housing, draining swamps and building latrines.
It is estimated that over the last three years, Sao Tome and Principe’s Red Cross, with funding from similar foreign partners, has spent over US$1.5 million on similar initiatives on the archipelago, where poverty affects over 50 percent of the population. (macauhub)
China floors investment in Nigeria's oil and gas sector
By Sulaimon Salau
CHINA, the world's second-largest oil user after the United States (U.S.), in a list of topmost nine countries it considered suitable for investment by the nation's oil companies left out Nigeria, among three other oil producing countries.
According to the list released by China National Development and Reform Commission, countries considered suitable includes Kuwait, Qatar, Oman, Morocco, Libya, Niger, Norway, Ecuador and Bolivia. While Nigeria, Iran and Sudan were not on the list.
The report shows that Chinese companies can get tax holiday or other incentives for investing in oil and gas industries in the listed countries, but the statement gave no details of the kind of incentive to offer to the companies.
It was not clear whether the exclusion of Nigeria, Iran and Sudan came because Chinese companies already have short-term investment plans in the three countries, or for more political reasons or the restiveness in the oil producing regions such as Niger Delta.
China National Petroleum and China Petroleum & Chemical, or Sinopec, are among companies scouring the globe for oil and gas resources to meet surging demand in the world's fastest-growing major economy. The country's oil demand may rise 6.1 per cent to 7.56 million barrels a day this year, according to the International
"The catalog is intended to further encourage and guide domestic companies to invest abroad," the commission said, without explaining its choices.
According to Petroleum and Chemical Industry Association of China, the county's top three oil companies pumped 29 per cent more crude from overseas fields last year. China National Petroleum, Sinopec and China National Offshore Oil produced 35 million metric tons of oil from foreign fields in 2006, accounting for 18 per cent of the total of 200 million tons, it said.
China National Offshore Oil, or Cnooc, completed acquiring a stake in Nigeria's Akpo field in April for $2.7 billion, outbidding rivals, including India's Oil & Natural Gas Corporation.
China already has investments in some of the nine countries on the list but the offer of incentives for further, or new, investments underlines Beijing's determination to acquire further energy assets overseas.
China draws 80-90 per cent of its own primary energy needs from domestic supplies, mainly through coal resources.
British Geological Survey to reassess seismic data in Sao Tome and Principe [ 2007-03-05 ]
Sao Tome, Sao Tome and Principe, 5 March – The British Geological Survey (BGS) is set to begin a reassessment survey of the seismic data on the existence of oil in the exclusive economic area of Sao Tome and Principe, the Sao Tome National Oil Agency (ANP) said Friday in Sao Tome.
According to ANP's bulletin, the consortium made up of Britain’s BGS and Aupec, will reassess a seismic survey carried out by Petroleum Geo-Service (PGS), of Norway, which was the basis for an agreement signed in 2001 with the Sao Tome authorities.
The process of reassessing the seismic survey, which also has the assistance of the World Bank, is due to be concluded at the beginning of May, according to ANP’s bulletin, published over the weekend in the capital of the archipelago.
PGS’s surveys showed geological structures that may contain hydrocarbons totaling 10,870 square kilometers in deep waters in the seas off the archipelago, in a survey which was intended to assess the existing oil potential in the area.
BGS, which was hired following a public tender launched by ANP, is responsible for producing a specific map of the area, containing the potential division of oil blocs, as well as recommending further seismic surveys.
The reassessment essentially aims to be the basis for an initial auction of blocs in the exclusive economic area of Sao Tome and Principe, planned for the end of 2007, according to the ANP's quarterly bulletin.
As well as its exclusive area, Sao Tome and Principe also has a joint exploration area with Nigeria base don a treaty stating that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome.
As well as revenues from the Chevron Texaco bloc, in which the US company has already struck oil, Sao Tome and Principe also expects revenues of a further US$28 million this year from the signing bonus from three joint area blocs. (macauhub)
Been Going Around For Bout 5 Years Now, But Still A Keeper.
Global Energy boss advocates collective solution to Niger Delta crises
CHAIRMAN, Global Energy Limited, Mr. Joe Obiago has advocated collective solution by all stakeholders to bring an end to the crises in the Niger Delta. This includes investment of operating oil firms in the construction of roads, hospitals, provision of electricity and water and creation of gainful employment for host communities among others.
Obiago, who spoke as the chairman of Niger Delta session during the Nigerian Oil and Gas Conference in Abuja, commended the efforts of the Federal Government with the employment of dialogue to stop hostage taking and disruption of exploration and production activities by the youths of the Niger Delta.
He noted that provision of facilities needed to improve the quality of life in the region should be taken seriously by both the operating firms and all tiers of governments.
"The best arrangement for improving of quality of life in the Niger Delta should be a collective effort and not just the government alone. It should be the government, host communities, operators and service companies. We should employ collective solution. We are moving forward because 10 years ago some of the issues discussed here today would not have been discussed," he said.
He noted that as an engineering, procurement and construction (EPC) company, Global Energy has been assisting communities at the construction site by providing amenities needed to ensure cordial relationship with the operating companies. This, he said, is necessary since the EPC companies bear the brunt of any protest over neglect by the host communities.
"Sincerely, the Niger Delta case is pathetic. It is important at this time as explained by Dr. Edmund Daukoru, minister of energy and Mr. Funso Kupolokun, group managing director, Nigerian National Petroleum Corporation that all stakeholders should come together and do their best for host communities in various ways to address the neglects of the past. Even though, it takes time to heal wounds, but the best thing would be to bring an end to all forms of impediment to the achievement of Federal Government's aspirations for the oil and gas industry," he said.
He, however, advised the Federal Government to wait for the success of explorative blocks awarded to firms during 2005 licensing round and 2006 mini-bid round under the strategic downstream projects before implementing it in future licensing round. He noted that the arrangement is very good for the country due to lack of infrastructure and inadequate investment in power facilities, as well as refineries by existing operators in the country.
"We need to wait for few more years to see the outcome of the blocks awarded under the downstream strategic projects before giving out new blocks using the same condition, as a result of the urgency it requires to have infrastructures in place. Government more than ever is determined to turn things around in the Niger Delta," he said.
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