SABINEWS DAILY NEWS UPDATE ON OIL AND GAS

SABINEWS DAILY NEWS UPDATE ON OIL AND GAS

Sabinews Daily News Update on Oil and Gas for August 4, 2014Sabi-Oil & Gas

 

Shell and Nigeria have failed on oil pollution clean-up, Amnesty says

Little action has been taken to clean up pollution caused by oil production in Nigeria’s Niger Delta region, either by the government or Shell Oil, Amnesty International and other groups charged Monday.

Oil production has contaminated the drinking water of at least 10 communities in the Ogoniland area but neither the Nigerian government nor Royal Dutch Shell’s Nigeria subsidiary have taken effective measures to restore the fouled environment, said the new report by Amnesty International, Friends of The Earth Europe, Center for Environment, Human Rights and Development, Environmental Rights Action, and Platform. Read more

 

Oil edges up but surplus continues to weigh on prices

Brent crude rose to $105 a barrel on Monday to come off of a four-month low hit in the previous session, with worry about global oversupply still outweighing concern about violence in the Middle East and North Africa.

Forecasts for a supply glut in West African and European markets help to push the Brent benchmark down 3.3% last week, despite geopolitical tension in Iraq, Libya and Ukraine. Read more

 

Nigeria’s NNPC shakes up management

Nigeria’s state-owned NNPC has appointed Joseph Thlama Dawha as its new managing director with immediate effect. He replaces Andrew Yakubu, who was appointed in 2012.

Dawha was previously group executive director of exploration and production at NNPC. Read more

 

N25 billion intervention by CBN not windfall – NERC

The Nigerian Electricity Regulatory Commission (NERC) has clarified that the N25 billion intervention by the Central Bank of Nigeria (CBN) to pay off debts owed to gas suppliers by the power companies is not a windfall for the sector.

NERC Chairman, Sam Amadi, made the clarification in Abuja at the weekend during a joint briefing by Ministers of Power and Petroleum Resources, Chinedu Nebo and Diezani Alison-Madueke, respectively, together with CBN Governor, Godwin Emefiele. Read more

 

Tough Nigerian security issues are oiling local empowerment

A MAJOR deal signed between a home-grown Nigerian oil company and one of the world’s largest multinationals in Paris last week highlights a radical change taking place in Africa’s largest economy.

The $1.6bn purchase by Nigerian company Oando of US-based ConocoPhillips’s onshore assets in the West African country is one of the largest transactions in Africa this year, and it catapults Oando into the high-stakes game of upstream oil and gas, with anticipated production of 50,000 barrels of oil a day.

It is the second significant deal to be done in the sector this year. A few months ago, another large local energy player,Seplat, raised $500m in an initial public offering on the London and Lagos stock exchanges. It was the largest listing out of sub-Saharan Africa since Dangote Cement in 2010. Seplat’s fundraising was aimed at acquiring the oil assets of international oil companies, which are divesting from their onshore operations. The company is after Chevron’s assets in Nigeria — for which is it competing with another home-grown oil and gas company, Brittania-U. Read more.

 

US-Africa oil trade wanes after shale revolution

There used to be a joke in the oil industry that you could walk from the US to Nigeria without getting your feet wet – just jump from one oil tanker to another.

The line neatly encapsulated the reality: as recently as five years ago, an armada of tankers sailed every month from Africa to the US coast, delivering oil worth billions of US dollars.

Not anymore. The American shale revolution, which was supposed to liberate the US from Middle Eastern oil, has instead brought freedom from an unexpected location: Africa. US oil imports from the African continent have this year plunged to a 40-year low. Read more.

 

Nigeria: FBN, Seven Others Syndicate U.S, $350 Million in Oando, Conocophillips Deal

More facts emerged at the weekend that eight Nigerian banks participated in the successful completion of Oando Energy Resources (OER) acquisition of Conoco Phillips Nigerian assets for about $1.6 billion.

According to a statement by FBN Capital Limited, OER successfully completed the acquisition of OMLs 60, 61, 62, 63, 131 and 145 (the target assets) located in a prolific oil and gas producing zone in the Niger Delta, through a combination of equity and debt.

While the Nigerian banks syndicated $350 million corporate facility, the debt portion comprising of a US$450 million RBL facility was provided by both Nigerian and offshore banks. Read more.

 

Tanzania to import over 280,000 T oil products from Addax Energy

Tanzania is set to import over 280,000 tonnes of oil products for delivery in September from Swiss trader Addax Energy, trade sources said on Monday.

Tanzania’s Petroleum Importation Coordinator, which represents oil marketing companies in the east African nation, bought the cargoes at a weighted average premium of $43.756 a tonne, the sources added.

The importers bought 162,771 tonnes of gasoil, 107,096 tonnes of gasoline, 11,058 tonnes of jet fuel and 700 tonnes of kerosene through a bulk procurement system.

Addax Energy had placed the lowest bid out of four other companies including Vitol, Gapco Kenya, Enoc Africa and Augusta Energy, one of the traders said. Read more.

 

Nigeria demolishes structures on oil pipelines

The Federal Government has commenced demolition of buildings and structures obstructing oil pipelines’ ‘right of way’ across the country, a Pipelines and Products Marketing Company (PPMC) official, has said.

The Public Affairs Manager of the company, Mr. Nasir Imodagbe, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday while confirming the demolition carried out on Wednesday in Auchi, Edo State.

Imodagbe said the demolition was ongoing, adding that it had already been carried out in Lagos and some areas in the northern part of the country. Read more.

 

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