Local oil firms walking a tight rope

Indigenous firms are the worst-hit by myriads of challenges bedeviling the oil and gas industry. ADEOLA YUSUF reports on how many of them are running into bankruptcy     Aiteo, an indigenous oil firm, made the headlines penultimate week; basking in the euphoria of its new status as the biggest Nigerian- owned oil firm in terms of production, hitherto known by many as the petroleum product trading firm, it announced the production of the largest share of the 313,602 barrels per day output from indigenous companies. The firm’s management cannot…

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Slippery crude oil swap

The recent payment of over $202 million to the Nigerian National Petroleum Corporation (NNPC) downstream entities by Aiteo Energy Resources Limited for fraudulent deals under the scrapped crude oil swap arrangement has reaffirmed the need to fully unravel all transactions surrounding the controversial barter plan during the last administration. The amount includes Aiteo’s share of the $184 million total indebtedness by three companies on crude swap obligations and other downstream liabilities. Televaras Group of Companies has also pledged to make a tranche payment of $17.2 million while NNPC is still…

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Crude swap racket: NNPC recoups $202m from AITEO

The Nigerian National Petroleum Corporation (NNPC) has recouped $202 million as outstanding payment on crude for product swap from Aiteo Group. The corporation, which confirmed this yesterday, stated that it would continue to go public on recovery process for product under-deliveries in the $184 million crude swap racket, which rocked the corporation up till August 2014 when the crude swap contracts were cancelled. Stating that the rigorous recovery efforts were in line with the ongoing reforms in the industry, the NNPC, in a statement by its Group General Manager, Group…

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When lenders are broke

The banks’ loans to Nigeria’s energy sector is going bad, putting recovery move by the lenders in jeopardy and the country’s economy in more trouble, reports Adeola Yusuf       The banking sector, it was, that first gave signs that Nigeria’s economy is in trouble; the Bankers’ Committee saw the problem coming, but all it did could not help the lenders to save jobs of over 400 members of staff in their services in Nigeria. Despite assurances it gave to the Central bank of Nigeria (CBN) at its meeting…

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