Nigeria Energy Intelligence

Ogoni Community Drags Shell to London Court

2013-09-18T01:38:00.000-07:00

Following a disagreement on the amount to be paid as compensation over the 2009 major oil spill that devastated their environment, the people of Bodo community in Gokana Local Government Area of Rivers State have again dragged Shell Petroleum Development Company (SPDC) Limited before a London Court.

The action was as a result of the failure of an out-of-court settlement between the community and Shell.

Former Secretary of Bodo Council of Chiefs and Elders, Chief Saint Pii, told journalists in Port Harcourt that the community decided to return to court because Shell refused to pay the 500 million pounds they demanded as compensation as part of the out-of-court settlement. He accused Shell of trying to pay peanuts as compensation to the over 10,000 indigenes of Bodo community as well as organisations that were affected by the oil spill, which occurred as a result of equipment failure in the oil giant’s facilities located in the community.

Oando hires Tony Blair's wife

2013-09-18T01:28:00.000-07:00

Cherie Blair, wife of former British Prime Minister, Tony Blair, is believed to have been hired to defend Oando Plc in the case involving former Governor of Delta State, Chief James Ibori, who is currently serving a jail term in the United Kingdom. Blair, an attorney, was said to have been paid 200,000 pounds deposit for the case. Ibori allegedly told a Swiss private bank in 2004 that he owned 30 percent of Oando, which paid $1.2 million into his account that year, a prosecutor told a British court.

However, the Group Managing Director of Oando, Mr. Wale Tinubu, denied that Ibori owned 30 per cent shares in the company, explaining that Oando’s has over 6.8 billion shares, with over 300,000 shareholders, while Ibori’s equity interest remained insignificant.

Investors reacted to the stock on the Nigerian Stock Exchange yesterday as Oando led on the losers’ table with N1.15 or 10 per cent depreciation. From its opening value of N11.50, it closed trading at N10.35 per share.

Details of Ibori’s assets and how he kept them hidden from the public gaze through a web of shell companies and foreign bank accounts were being disclosed as part of a three-week confiscation hearing, which began in London. Prosecutor Sasha Wass told Southwark Crown Court that in 2004, Ibori had opened an account at Lugano-based PKB in the name of a shell company called Stanhope Investments.

Quoting from internal PKB documents, Wass told the court that Ibori had presented himself to the bank as the owner of an insurance company, half of a bank and 30 percent of Oando. She said that a total of $1.2 million flowed into the PKB account from Oando in three payments that year which had later been channelled to other accounts and were part of funds intended for the purchase of a $20 million private jet.

Seven Energy & Frontier Oil set to unleash $500 million gas-to-power project

2013-09-18T01:14:00.001-07:00

The multi-billion naira gas processing facility, built by Seven Energy and Frontier Oil Limited Joint Venture (JV), is estimated at about $500 million (about N80 billion), with capacity to ease-off about 10 per cent of gas-to-power challenges in the country is set for commissioning. The Project Director, Uquo Gas Processing Plant, Alhaji Abdullah Bukar said that the gas facility was built at the best international standards, and has product quality of up to 98 per cent methane and lower than 2 per cent CO2 (carbon dioxide). According to him, the plant has 200 million cubic feet per day (mmcfpd) processing capacity with two modules operating at 100 (mmcfpd) each, and also 2,000 barrels per day of oil. The plant, according to Bukar, is ready for commissioning, while plans are also in top gear to establish additional $100 million (about N16 billion) pipeline network from Uquo to Oron. He said Acugas, its downstream subsidiary has built a 62 kilometers pipeline from Uquo to Ikot Abasi, which will deliver gas to the 190Mega Watts (MW) Ibom Power station, adding that another 37 kilometers pipeline from Uquo to Oron is under construction to supply gas to the 560MW Calabar National Integrated Power Plant (NIPP).

Seven Energy Group is an indigenous oil and gas exploration, development and production company that comprises, Seven Energy, Septa Energy and Acugas).

Shell offers to pay N7.5b for Bodo oil spill

2013-09-13T00:46:00.000-07:00

Shell Petroleum Development Company (SPDC) and the Bodo Community in Gokana Local Government Area of Rivers State are inching close to a settlement in a compensation case which followed two major oil spills in 2008. About N7.5b has been offered already.

About 15,000 persons from the Bodo community sued SPDC over the development, which occurred in 2008 for which the company had accepted responsibility, although it insisted that the volume spilt and the number of those who lost their livelihood as a result are exaggerated.

Both parties nonetheless commenced talks on compensation but the talks broke down in 2012, following which the villagers filed a suit against the oil company at a London High Court in March 2012, seeking millions of dollars in compensation.

Sources close to the negotiators indicated that Shell has offered N7.5 Billion as compensation to the affected persons and the community. An official of Shell who would not discuss the figure offered however indicated that “SPDC and the Bodo community have both committed their full support to the clean up process currently in progress with the support of Bert Ronhaar, the former Netherlands Ambassador to Nigeria.

Saudi ready to meet crude demand

2013-09-12T00:27:00.000-07:00

Top crude exporter, Saudi Arabia, has said its ready to supply whatever volume of crude is needed to meet demand. This was made known by Saudi Oil Minister Ali al-Naimi.

Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions. Naimi's comments come after producer group OPEC sought to reassure consumers there is sufficient supply to cover a plunge in Libya's output.

Despite rising Saudi output, benchmark Brent crude prices spiked above $117 a barrel in late August on the virtual shutdown of Libyan oil output and the prospect of U.S. military action against Syria. (O/R)

Brent traded at $111.67 after falling as the threat of a U.S. strike receded, but the market remains volatile on concern diplomatic efforts to avoid military action might fail.

Speculation about international political events is driving oil prices rather than any shortage in supply.

Saudi Arabia pumped a record 10.19 million barrels per day in August. Rising supply from Saudi helped offset losses from other members of the Organization of the Petroleum Exporting Countries. OPEC output in August fell around 124,000 bpd on the month to 30.23 million bpd, but the group said in its monthly report this week that the market was well supplied.

Ex-militant Urges Senate to Stop Probe of OPL 245 Deal

2013-09-11T01:14:00.001-07:00

A former militant leader in the Niger Delta, Mr. Ebikabowei Victor Ben, popularly known as General Boyloaf, has urged the Senate to stop its investigation of the Oil Prospecting Licence (OPL) 245 deal and concentrate on the passage of the Petroleum Industry Bill (PIB), which has already abrogated discretionary award of oil blocks. The ex-war lord also decried the rising cases of oil theft and pipeline vandalism and commended the federal government for awarding contracts for pipeline surveillance to leaders of ex-militants and host communities, saying communities where pipelines cut across should be engaged to watch over these assets. In a statement on the state of the nation, the former militant leader also alleged that politicians had hijacked the well-conceived amnesty programme in the Niger Delta for their selfish interest, saying the current programme was not the vision of the programme the ex-militants agreed upon when they surrendered their arms and accepted amnesty for peace and development.

On the controversy over the ownership of OPL 245, he stated that the government of the late General Sani Abacha awarded numerous oil blocks inclusive of OPL 245 and OPL 246 in 1998. “In 2001, the government of President Olusegun Obasanjo revoked Malabu’s right to OPL 245 forcing Malabu to seek justice in court. Of note, other oil blocks, notably OPL 246 awarded by the late General Sani Abacha was not revoked only OPL 245 owned by Malabu was revoked. In 2002, the Obasanjo government re-awarded OPL 245 to Shell after a competitive bidding. But most interestingly, in 2006, realising the grave injustice meted on Malabu, the same Obasanjo government that revoked Malabu’s right to OPL 245 restored its full right of the oil block, thereby correcting the mistake it made in 2001. While the multinational Shell felt aggrieved and sought relief at the courts in foreign lands as multinationals always do, the matter dragged on and was stalemated. It was only in 2011, after about 14 years of acrimonious litigation that the federal government of President Goodluck Jonathan resolved finally and satisfactorily the various ownership claims of OPL 245 between all contending parties,” he explained.

According to him, up till today, the president has the discretionary power to award oil blocks, except the still born petroleum industry bill is passed into law and states otherwise, changes, amends or removes this prerogative powers from the president.

He urged the National Assembly not to reopen an already determined case, adding that between 2002 and 2003, the House of Representatives spent millions of tax payers’ money over a period of 10 months investigating what the Nigerian media sensationalised as the “Malabu Scandal.”

Sliding Libyan oil output, good omen for Nigeria

2013-09-11T00:51:00.000-07:00

The fall-out of the Libyan political crisis that nearly crippled the country’s oil production may boost Nigeria’s exports of sweet crude next month. As traders await the October loading schedule, they confirmed that the development had already impacted positively on September exports, which were reportedly completely sold. There were indications that oil production in the North African country may completely halt soon. Libya had confirmed that oil production fell to around 150,000 barrels per day (bpd), from around 250,000 bpd in August. A board member of Libya’s National Oil Corporation, Bilqasim Shindeer el-Shibany confirmed, “oil exports almost entirely have stopped.” To add to the government’s woes, the capital, Tripoli, has been hit with water cuts for three days and electricity outages for the past few months lasting around four hours daily. Libya’s prime minister faced increasing calls for his ouster, as strikes by government employees at oil export terminals estimated to have cost the North African country more than $5 billion in losses.

Nigeria’s light oil is apparently bridging the supply-gap in the market, as it exports 63 cargoes of crude oil, totaling 58.2 million barrels or 1.94 million barrels per day (mbpd) for the month of September 2013. Angola is closely behind Nigeria, as it unveils plans to export 1.70 mbpd of crude in October, an increase of 30,000 bpd from September, according to a loading schedule. Angola will export 52.8 million barrels on 55 tankers three more than were scheduled to load in September.

China impounds passports of oil managers

2013-09-10T05:25:00.000-07:00

Executives of Chinese oil giant PetroChina Ltd. have been told to hand in their passports as an anti-corruption investigation of the industry spreads. Authorities say five current or former executives of state-owned PetroChina and its parent, China National Petroleum Corp. are suspected of "discipline violations," a term usually used to refer to corruption.

PetroChina managers at the level of division chiefs and above were ordered to hand in their passports. Such a move often is intended to prevent potential suspects or witnesses from fleeing while investigators gather information.

Political analysts say the investigation appears to be part of efforts by China's new leadership under President Xi Jinping to tighten control over state-owned energy companies.

PetroChina's former chairman, Jiang Jiemin, has been fired as head of the Cabinet body that oversees China's biggest state-owned companies, the State-owned Assets Supervision and Administration Commission.The commission's Communist Party secretary, Zhang Yi, visited rank-and-file PetroChina employees at two oilfields in China's northeast to affirm the ruling party's faith in their work.

PetroChina, with some 550,000 employees, is Asia's biggest oil producer by volume and the world's second-most-valuable energy company by market capitalization, behind Exxon Mobil Corp.

IOCs still flare 80% gas in Nigeria

2013-09-10T01:40:00.001-07:00

The Federal Government has declared that International Oil Companies (IOCs) operating in Nigeria’s multi-billion dollars oil and gas industry, still flare 80 per cent of gas. Minister of Petroleum Resources, Diezani Alison-Madueke, who said this, however, maintained that the series of gas projects including the oncoming petrochemical and fertiliser plants would take up a bulk of the gas currently flared thereby reducing gas flare and the harm it does to the environment.

A statement issued by the Nigerian National Petroleum Corporation quoted the minister to have said this while speaking at a plenary session of the 19th Nigerian Economic Summit titled, “Building a World Class Petrochemical and Fertiliser Industry in Nigeria.”

Gas flare, she said, has been reduced considerably over the past two years to 20 per cent.

Five proposed fertiliser plants, which include the Dangote Petrochemical and Fertiliser Plant to be built at Olokola, Indorama Fertiliser Plant at Eleme, Brass Fertiliser Company at Brass, Nagarjuna Fertiliser Plant at Ogidigben, and another plant by the International Fertiliser Association, are billed to come on stream by 2017.

DPR realises N470bn in Q1 2013

2013-09-10T01:18:00.001-07:00

DPR Director, Mr. George Osahon, who led the management team, was called upon to initiate practical steps that would boost internally generated revenue to robust levels, and promised full legislative backing in support of such initiatives.

The Department of Petroleum Resources, DPR said it generated over N470 billion in revenue in the first half, thereby surpassing its projected targets by over N86 billion.
This was revealed during a recent interface between the DPR and the House Committee on Upstream Petroleum, when the later visited the industry regulator, as part of its oversight functions.
The Committee led by its Chairman, Honourable Muraina Ajibola, commended the effort of the Department in its exceptional performance over the preceding six months, by surpassing its revenue target for the period.
According to Ajibola, DPR’s expected revenue target for the period, January to June 2013 was estimated at N383billion, but instead realized about N470billion.
DPR Director, Mr. George Osahon, who led the management team, was called upon to initiate practical steps that would boost internally generated revenue to robust levels, and promised full legislative backing in support of such initiatives.
Also, the Legislators expressed deep concern in the seemingly unabated spate of oil theft, particularly in the Niger Delta, and urged the Federal Government to implement the House’s resolutions on the issue.
Ajibola recalled some of the recommendations to include, government to assign dedicated telephone lines to security agencies. Such lines should also be made available to the public in order to facilitate easy reporting of these incidents to the appropriate security outlets.
Other recommendations include proper manning of crude export terminals and the installation of electronic metering at well heads to assist stem this negative tide.
- See more at: http://www.vanguardngr.com/2013/09/dpr-realises-n470bn-in-q1-2013/#sthash.TltQnxrJ.dpuf

Kenya offers 46 oil blocks to Nigerian investors

2013-09-09T01:10:00.001-07:00

Kenyan authority has reportedly offered its 46 newly-discovered oil blocks to interested Nigerians to prospect for the development of the sector. Nigeria’s Minister of Petroleum Resources, Diezani Alison-Madueke, disclosed to reporters that the offer of the oil wells was parts of the outcome of the dialogue group preceding the Nigeria-Kenya Investment Forum held in Nairobi, the capital of Kenya. Alison-Madueke was on the entourage of President Goodluck Jonathan who concluded a three-day state visit to Kenya on Saturday with host President, Uhuru Kenyatta, presiding over the Forum. The Forum, held at the Intercontinental Hotel, Nairobi, had in attendance more than 500 prominent investors from both countries. The minister said that beyond giving the opportunity to Nigerian investors to acquire the oil wells, Kenya also sought Nigeria’s assistance in the formulation of the right policies and frame-work to manage the sector.

“It is well known now that Kenya had recently discovered hydro-carbon reserves and they are very keen to move quite aggressively in terms of exploration activities.

“They felt that as sister African country, Nigeria having many years of oil exploration and production, it only makes sense that we exchange agreement in co-operation to hand over knowledge, capabilities and experience learnt.

“They seek various templates that we have formulated, including policies, processes and a sort of templates that form Petroleum Industry Bill (PIB), among others.

“We also looked at areas surrounding Nigeria’s investment possibilities where we think that Nigerian business men and women could come into the oil and gas sector in Kenya.

“They are very keen that Nigerian operators in the upstream, midstream and downstream service sectors of the oil and gas industry look to Kenya as a burgeoning frontier for investments in the oil and gas sector.

“They are also very keen that we robustly support them in setting up the right frame-work, policies and processes and technology to help them drive the exploration activities,” she said.

The minister said that among the seven MoUs and bilateral agreements signed by both countries was that on oil and gas, which spelt out details of the co-operation.

Kenya recently announced that its oil resources met the threshold for commercial exploitation, raising the country’s hope of joining the league of oil producing nations.

Shell to negotiate with Nigerians over oil spill compensation

2013-09-06T02:28:00.001-07:00

Compensation talks will begin in Nigeria between lawyers for Royal Dutch Shell and for 15,000 Nigerian villagers who say their livelihoods were destroyed by oil spills from pipelines operated by the company. The Nigerians launched a suit against Shell at the High Court in London in March 2012, seeking millions of dollars in compensation for two oil spills in 2008 that polluted the waterways of the Bodo fishing communities in the Niger Delta. The legal action is being closely watched by the industry and by environmentalists for precedents that could have an impact on other big pollution claims against oil majors.

A vast maze of mangrove swamps and creeks, the Niger Delta is home to communities of subsistence farmers and fishermen living alongside the multi-billion-dollar oil industry.

A Shell spokesman confirmed that talks would begin on Monday September 9, 2013 between Leigh Day and lawyers for the Anglo-Dutch firm. They will take place in Port Harcourt, the main city in the Delta, and will be attended by representatives of the Bodo communities. The region has been plagued by a range of problems including sabotage, kidnappings of oil workers for ransom, theft of crude from pipelines, armed rebellions, and conflict between communities over clean-up contracts or compensation deals.

Shell accepts responsibility for the Bodo spills but the two sides disagree about the volume spilt and the number of local people who lost their livelihoods as a result. A previous round of compensation talks broke down in 2012, before the lawsuit.

Nigeria warns oil block buyers could lose operating rights

2013-09-05T09:13:00.001-07:00

Nigeria's state oil company warned investors interested in three shallow water oil blocks offered for sale by Chevron that buyers may lose the right to operate them. U.S.-based Chevron is selling minority stakes in joint ventures that operate five oil blocks. The majority owner is the Nigeria National Petroleum Corporation (NNPC). Nigeria wants more direct ownership of its oil and gas through NNPC or local firms, leading several oil majors including Chevron to dispose of assets in Africa's top oil and gas producer. NNPC published a notice in local newspapers saying that there had been a "recent high level of interest shown by various investors in the ongoing divestment program for OMLs 52, 53 and 55 by Chevron Nigeria". It reminded those considering investing that, although Chevron currently operates the blocks, the state oil firm has the right to take over the operatorship as majority shareholder. Chevron owns 40 percent of the blocks and NNPC 60 percent. "Chevron shall cease to be the operator upon assignment of their participating interest," it said. "Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these blocks." Not having operatorship poses significant risks for would be investors in the fields, not least that the NNPC's development subsidiary, NPDC, lacks the finance and expertise. It has usually had to call in a third-party operator anyway. The notice seemed calculated to avoid messy tussles that ensued when Shell sold some oil blocks two years ago.

Dangote plans Nigeria's largest oil refinery

2013-09-05T02:40:00.000-07:00

Dangote Group has received a loan toward a $9 billion project that will give Nigeria its largest oil refinery and petrochemical and fertilizer complex, reducing the country's reliance on international markets. Aliko Dangote, president of Dangote Group, signed a loan worth $3.3 billion from 12 Nigerian and international banks toward the project which will be built in Nigeria's southwest.

"At the completion of these projects we expect Nigeria to become not only self-sufficient in fertilizer and refined petroleum products but indeed to become recognized as a leading exporter of these products," Dangote said at the signing.

Nigeria is Africa's biggest oil producer, and is a top supplier of crude to the U.S., but the West African country has to import most of its fuel because of decrepit refineries unable to meet the nation's demand for gasoline due to years of mismanagement and sabotage.

The 400,000 barrels-per-day oil refinery and complex will become operational by 2016, the company said. The plant will also produce 2.8 million tons of urea for fertilizing crops and to produce polypropylene, used to make plastics, a statement said.

Dangote said the company is still seeking an additional $2.5 billion in development funds to augment the $3.5 billion of its own equity put into the project. The $3.3 billion loan deal was led by Standard Chartered and Nigeria's Guaranty Trust Bank.

Dangote's estimated worth is $16.1 billion according to Forbes, which has also ranked him among Africa's richest men for the past few years. The Nigerian has made his wealth in cement, flour and sugar.

Oil Prices Could Fall Following A Limited U.S. Led Strike In Syria

2013-09-05T02:23:00.000-07:00

While the geopolitical risk has been falling in Europe as European governments and central banks stepped up to ease Eurozone tensions, the latest events in Syria have raised the temperature and the ugly geopolitical risk has raised its head again. The growing possibility of some form of a limited U.S. led strike in Syria has increased fears about the stability of the world's key oil producing region. Until the nature of the possible military intervention becomes apparent, these concerns are likely to put upward pressure on oil prices.

Oil markets have reacted strongly to the deteriorating situation in the Middle-East and prices have spiked sharply due to the unpredictable consequences of a likely military action against Syria. Brent crude spot is currently trading at a six-month high of $115 and prices are expected to remain volatile leading up a military strike on Syria. However, prices could fall sharply after a strike, as the actual supply losses remain small and the chances of a violent response from Syria, Russian, or Iran also remain low. Nevertheless, unpredictable factors weigh heavily in the market for good reasons.

Iraq names pre-qualified builders for Jordan oil pipe project

2013-09-04T05:52:00.000-07:00

Iraq has pre-qualified 12 companies and joint ventures to build an $18-billion export pipeline to Jordan, the oil ministry said. The plan is to export 1 million barrels per day (bpd) of Iraqi crude to Jordan, of which 150,000 bpd will supply Jordan's Zarqa refinery. The remainder would be exported through the Red Sea port of Aqaba, reducing Iraq's reliance on the Strait of Hormuz shipping route.

After stagnating for years due to war and sanctions, Iraq's oil output began to rise significantly in 2010 and output reached 3.1 million bpd in August. Iraq expects output to rise by 400,000 bpd by the end of this year, mainly due to the start-up of the Majnoon oilfield operated by Royal Dutch Shell.

The short-listed companies and partnerships set for the next stage of the selection process to build the pipeline from Haditha near Baghdad to the Jordanian border are:

China National Petroleum Corporation (CNPC), Consolidated Contractors Company (CCC)

Daewoo International, Lukoil, Marubeni, Mitsui, Saipem, Toyota Tsusho, Go Gas, Larsen & Toubro and Fius Capital, Orascom with Petrojet, Petrofac and Stroygazconsulting, Punj Lloyd Group and Mass Global International (Iraq)

Accugas wins African Quality Service Award for Gas Processing & Transportation

2013-09-04T01:00:00.002-07:00

Seven Energy International Limited (“Seven Energy”), the oil and gas exploration, development and production company with interests in Nigeria, and its wholly owned subsidiary, Accugas Limited (“Accugas or the Company”) are proud to announce that Accugas has won the 2013 African Quality Service Award for Gas Processing and Transportation. The award was presented by the Institute for Government Research & Leadership Technology (the “Institute”) during its 2013 African Governance and Corporate Leadership Awards in Abuja.

Ambassador Moses Essien, Chief Executive of the Institute, commended Accugas for its contribution to gas processing services in Nigeria. The key performance indicators used to select the winner include: excellence in gas processing and transportation services; safety, health and environment considerations; brand integrity; and customer service delivery. Further indicators are: product and service track record and value creation; corporate performance and operational excellence; compliance with local content policy and development; and compliance with professional codes, ethical standards and regulatory laws and guidelines.

Phillip Ihenacho, Chief Executive Officer, Seven Energy commented: “We would like to thank the Institute for this prestigious award. It is a fantastic recognition for the on-going efforts and achievements of Accugas and Seven Energy in contributing to the development of the Nigerian gas market in a responsible way.”

Stephen Tierney, Managing Director, Accugas Limited, added: “Accugas is committed to aiding in the development of Nigeria’s gas resource, improving power supply and supporting local economic growth. Through the processing and distribution infrastructure Accugas is constructing, we are capable of providing a long-term supply of gas for power generation and lower cost of fuel for local industries. This will create an attractive environment for investment for gas-based enterprises in Nigeria, particularly the Niger Delta.”

Accugas currently has two long-term take-or-pay gas sales agreements in place to sell over 1 Tcf of gas, to Ibom Power station and Calabar NIPP power station. The Company remains on course to complete the development of necessary infrastructure to deliver the gas to both power stations. The first 100MMcfpd train of the two train 200MMcfpd gas processing plant at Uquo, and the 62km 18-inch Uquo to Ikot Abasi pipeline, were commissioned in the first quarter of 2013, to deliver gas to the 190 MW Ibom Power station. An additional 37 km 24-inch pipeline from Uquo to Oron is under construction to supply gas to the 560 MW Calabar NIPP power station’.

ExxonMobil, FRSC Join Forces to tackle Road Accidents

2013-07-15T04:43:00.002-07:00

ExxonMobil in partnership with the Federal Road Safety Corps (FRSC) has launched a Pan-Nigeria road safety campaign as part of a series of road safety programmes to address the menace of road accidents. The three critical areas of focus for the campaign are; seat belt usage, speed reduction and use of phone while driving.

According the Corps Marshall and Chief Executive of FRSC, Osita Chidoka, “road crashes has been a source of concern not only to the people of Nigeria but to most developing countries and in the next few years, road crashes may be the third highest killer of mankind”.

Chidoka said that road crashes do not just happen, they are caused and can be averted, thus, the need for this campaign which is a national reawakening to address the challenges of apathy associated with road usage in Nigeria. He commended the growing partnership between FRSC and corporate bodies particularly ExxonMobil which he said has shown commitment to issues of road safety and security of human life in work places

In his speech, ExxonMobil Executive Director, Udom Inoyo, said that accidents are preventable with the right attitude, adding that the motivation for ExxonMobil in partnering with FRSC is to ensure that Nigeria can make a positive change to road safety statistics. He believes that through the campaign, ExxonMobil will impart its values which places premium on safety on day-to-day activities which the slogan, “Nobody gets hurt”. Inoyo called on other stakeholders to support the initiative.

Samson Makoju, the representative of National Petroleum Investment Management Services (NAPIMS) expressed their support and hopes that the result will be quite visible and everybody will soon be counting the gains.

The Minister of Information Labaran Maku represented by his Special Adviser, Henry Angulu commended the unique collaboration between the FRSC and the private sector and assured of them of government support. He said that the ministry was prepared to render necessary assistance by the use of all the electronic media to ensuring that the campaign was successful. Mr. Angulu noted that the Ministry of Information has been giving assistance to the FRSC by providing enlightenment campaign facilities, saying that they would not relent on their efforts to render such support when the need arises.

ExxonMobil Supports IPEA Training on Environmental Awareness

2013-06-27T04:40:00.001-07:00

The Ibom Programme on Environmental Awareness (IPEA), an initiative of the Akwa Ibom State Ministry of Environment & Mineral Resources in partnership with ExxonMobil, has held a training workshop for advocacy team members in Uyo, Akwa Ibom State. The one-day training was designed to empower IPEA personnel to effectively enlighten people at motor parks, schools, abattoirs, restaurants and other locations as part of the recently-launched environmental awareness campaign in Akwa Ibom State.

The Ibom Programme on Environmental Awareness (IPEA) is an initiative aimed at creating awareness on pollution, and helping the citizens of Akwa Ibom state develop positive environmental values that will enable them manage instances of environmental pollution that may occur, as well as prevent potential environmental hazards from happening.

In his remark at the training, the General Manager, Public and Government Affairs, Mobil Producing Nigeria Unlimited, Mr. Paul Arinze, represented by Mrs Regina Udobong, called on the participants to live up to expectation on the campaign. According to her, ‘ExxonMobil expects the participants to take full advantage of the training programme to sharpen their skills to educate target audiences and encourage best practices to curtail all kinds of environmental pollution – air, water and earth pollution’.

Mr. Arinze reiterated ExxonMobil’s commitment to the environment which has been demonstrated by the company’s partnership with Akwa Ibom State Ministry of Environment & Mineral Resources to achieve a cleaner and safer environment.

Declaring the training open, the Commissioner for Environment & Mineral Resources, Prince Enobong Uwah, represented by the Permanent Secretary, Ministry of Environment & Mineral Resources, Mrs Atim Enoh, commended ExxonMobil for supporting the environmental awareness campaign. According to him ‘the State Ministry of Environment & Mineral Resource is grateful to ExxonMobil for sponsorship of IPEA. This gesture by ExxonMobil reflects its commitment to cleaner environment in Akwa Ibom State’.

Prince Uwah advised the participants to make good use of the opportunity offered by the training to ensure that objectives of campaign were achieved.

The training witnessed presentations by resource persons including Dr. James Asuquo, a lecturer in the Department of Chemistry, University of Uyo and Mr. Stephen Erakpotobar, an environmental expert. The training focused on key issues such as sources of water, air and land pollution and remedies and behavioural change communication in environmental management.

It will be recalled that the Ibom Programme on Environmental Awareness was launched on June 5, 2013 in Uyo by Governor Godswill Akpabio.

Lekoil Hits Oil Offshore Nigeria

2013-06-26T00:46:00.002-07:00

Lekoil Limited has announced the discovery of a significant light oil accumulation at the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria, based on the results of drilling and wireline logs.

The Ogo-1 well is being drilled by Afren Plc (“Afren”), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria (“OPL310”), as announced on 14 May 2013. The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea (“TVDSS”)), and has encountered a gross hydrocarbon

section of 524ft, with 216ft of apparent stacked, net pay.

Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well).

Speaking on the development, Lekan Akinyanmi, CEO of Lekoil, said: “The discovery of oil in the Ogo-1 well opens up a new oil basin in an underexplored region and represents a possible extension of the Cretaceous play along the West African Transform Margin. The discovery is a clear validation of Lekoil’s technical analysis and of our extensive studies on the Dahomey Basin.

According to Lekan, “Results to date indicate that the discovered resources could be significantly in excess of P50 estimates prior to drilling. While Lekoil notes these results are preliminary, we believe there exists substantial scope for upward revisions to the data announced today as drilling and interpretation continues.

“We look forward to working with our Partners to realise the full potential of Ogo and the additional prospects on the license”, he added.

The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin.

Lekoil Limited Proposed Acquisition of Interest in OML113

2013-06-18T05:43:00.002-07:00

Lekoil, the AIM listed oil and gas exploration and development company focused on West Africa, is pleased to announce that Lekoil Nigeria Limited, a wholly owned subsidiary of Lekoil (Nigeria) Limited has agreed to acquire a 6.502 per cent participating interest in Oil Mining Lease 113 ("OML113") offshore Nigeria from Pan Petroleum Aje Limited ("PPAL"), a wholly owned subsidiary of Panoro Energy ASA ("Panoro"), for a consideration of US$30 million.

The proposed acquisition is for a 6.502% participating interest (representing c. 16.3% cost interest and c. 12.2% revenue interest) from a subsidiary of Panoro Energy.
Chief executive Lekan Akinyanmi said: "The acquisition of an interest in the Aje field, adjacent to our existing interest in OPL310, is exactly in line with our strategy to focus on assets in corridors of interest identified in our detailed evaluation programme when we established Lekoil.

"It also brings us potential near term production in line with our ambition to create a producing business with higher upside appraisal and exploration assets. In addition, we continue to assess further opportunities. "This acquisition sees us well on our way to realising our vision for Lekoil and its shareholders, following our Admission to AIM last month."

OML113 is located offshore Nigeria in the Benin Embayment along the West African Transform Margin adjacent to Oil Prospecting Lease 310 ("OPL310"), in which Mayfair Assets & Trusts Limited, a subsidiary of Lekoil Nigeria, has an ultimate 30 per cent economic interest. The OML113 licence area contains the Aje oil and gas field ("Aje"), for which AGR TRACS International Ltd, in its recently updated Competent Persons Report ("CPR"), estimated Contingent Resources of 198.7 mmboe

Iraq's Oil to rival Russia & Saudi

2013-06-13T03:37:00.001-07:00

Iraq has announced plans to quickly boost its oil production - allowing it to beat the world's current leading oil producers.

A senior Iraqi official said his country decided to ramp up oil production within 18 months by 30%.

The troubled nation, which still struggles for stability more than a decade after a controversial US-led invasion, hopes to pump 4.5 million barrels per day (mbd) by the end of next year, up from around 3.5 mbd now.

It then plans on increasing output by 157% of current rates by 2020, reaching 9 mbd.

Chairman of the prime minister's advisory commission, Thamir Ghadhban, confirmed the seven-year plan.

An output rate of 9 mbd would let Iraq go head-to-head with the three top producers, Saudia Arabia, Russia and the United States.

Iraq sits atop the world's fourth largest proven reserves of conventional crude, with about 143.1 billion barrels yet to be unlocked.

Oil revenues make up 95% of the country's budget receipts.

FG feigns ignorance of Chevron’s plans to sell oil bloc stakes

2013-06-13T02:55:00.000-07:00

The Federal Government, the majority partner in the Oil Mining Lease (OML) 35 and 38, has denied knowledge of plans by Chevron Corporation to sell stakes in two Nigerian oil blocks.

This declaration, may have however, swiftly heightened fears among prospective investors in the blocks.

Chevron is, according to the Nigerian National Petroleum Corporation (NNPC), expected to officially inform the government, which, through the NNPC owns about 55 per cent stake in the blocks purportedly up for sale before announcing such.

The oil major is the latest International Oil Company (IOC), operating In Nigeria’s multi-billion dollars oil and gas industry, seeking to dispose of assets in Africa’s biggest oil producer. Joint blocks’ owners like Royal Dutch Shell, Italy’s Eni and France’s Total have sold several blocks.

The two newest blocks for sale also hold an unknown amount of natural gas but there has been no production yet, Reuters reported quoting two industry sources.

Shell lifts force majeure on gas for Nigeria LNG

2013-06-12T07:22:00.001-07:00

Shell has lifted a force majeure on gas supplies to the Nigeria Liquefied Natural Gas (LNG) plant. The company declared force majeure on May 16 after a leak along the Eastern Gas Gathering System near Awoba in Rivers State. It affected 1.5 billion standard cubic feet of gas per day. That declaration came just less than a month after it had lifted a force majeure on supplies to the plant, during a time in which Shell was reporting growing attacks on pipelines by oil thieves.

Chevron to Sell 40% Stake in Two Oil Blocks

2013-06-12T06:20:00.000-07:00

Chevron Nigeria Limited (CNL) will be selling its 40 per cent stake in two Nigerian shallow water oil blocks in Oil Mining Leases (OMLs) 83 and 85. Chevron has 40 per cent interest in the two blocks.

The two blocks OML 83 and OML 85 hold an estimated 200 million barrels of oil and an unknown amount of natural gas but there has been no production yet. Chevron did not give details of reserves. The planned sale follows several oil majors’ sale of assets onshore or in the shallow waters of the Niger Delta over the past few years.

Oil industry analysts believe that the slow pace of deliberation in the passage of the PIB amongst all these other factors, have added to a growing uncertainty in the country’s oil and gas industry.

Joint owners, Royal Dutch Shell, Italy's Eni and France's Total, have sold several oil blocks in the oil-bearing region, while eventual buyers of these included UK-listed firms Heritage Oil and Eland Oil.

Chinese-owned Addax has also said it was interested in buying more Nigerian oil assets in addition to what it has already.

Chevron's blocks are at the exploratory stage, unlike Shell's already producing fields, which will make valuations less straightforward, one banking source said.

Chevron owns a 40 per cent stake in 13 shallow water blocks with the Nigerian National Petroleum Corporation (NNPC) and also has several deep offshore assets. Its 2012 net daily production in Nigeria averaged 238,000 barrels of crude oil and 165 million cubic feet of natural gas.

It is the third-largest oil producer in Nigeria and one of its largest investors, spending more than $3 billion annually. It operates under a joint-venture arrangement with NNPC and has assets on land, swamp and near-offshore concessions covering approximately 2.2 million acres (8,900 sq. km) in the Niger Delta region.