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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FG shifts Forcados, Bonga’s re-opening date to June, July

The Federal Government has announced new dates for re-opening of two major oil and gas installations in Nigeria-Bonga Floating Production Storage and Offloading (FPSO) and Forcados line. Minister of State for Petroleum resources, Dr. Ibe Kachikwu, who said this in a report, stated that Forcados would reopen in June and Bonga in July. Shell, operator of Bonga, had earlier said that the facility would re-open by April. The shutdown of these facilities have impacted the crude production in Nigeria as over 225, 000 barrels of oil is shut-in on Bonga…

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Debt threatens FG’s economic recovery plan

Nigeria’s recently launched Economic Recovery and Growth Plan (ERGP2017-2020) appears to have been generally well received by industry experts. However, the country’s already high debt service ratio in proportion to income, is raising concerns in some quarters about government’s ability to fund the scheme. TONY CHUKWUNYEM writes   Nearly two years after he assumed office, President Muhammadu Buhari last Wednesday, launched what his administration has tagged the Nigeria Economic Recovery and Growth Plan (NERGP2017-2020). Although the event came about a month after the Ministry of Budget and National Planning posted…

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FG plans 15m jobs, 10 gigawatt of electricity

The Federal Government will provide at least 15 million jobs for Nigerians by the year 2020 as captured in the recently launched Economic Recovery and Growth Plan (ERGP). The Minister of Budget and National Planning, Senator Udoma Udo Udoma, gave the assurance at a news conference on ERGP on Tuesday in Abuja. Udoma said that the implementation of the plan would deliver some key outcomes including generation of at least 10 gigawatt of electricity by 2020. “We want to bring down the rate of unemployment by creating over 15 million…

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Why Buhari dumped Amaechi’s template for Niger Delta

As oil output rises to 1.68m bpd President Muhammadu Buhari’s administration at inception two years ago, adopted a policy of coercion to muscle the militants to submission and further went ahead to suspend payment of stipends to the repented militants and cancelled the pipeline protection contracts for former militants leaders. The most senior politician in the Buhari’s cabinet from the South South geopolitical zone, Rt Hon Rotimi Amaechi’s suspension of the Nigeria Maritime University (NMU) Okerenkoko, Delta State, further convinced the people of the region that the Buhari administration was…

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Nigeria set to get $3.5bn foreign loan –Moody’s

Nigeria will easily achieve its target of $3.5 billion foreign borrowing in 2017 as improved oil output helps the economy to recover from last year’s contraction, the first since 1991, Moody’s Investors Service said. “The international financial institutions are ready to support Nigeria,” Aurelien Mali, a vice president and senior analytical adviser for Africa at the ratings company, said by phone on Wednesday. “As long as it remains project-based lending, the funding will be available from lenders such as the African Development Bank, and the budget support from the World…

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Oil falls as investors cut bullish bets on worries over US output

Oil fell on Monday as investors continued to unwind bets on higher prices after record cuts last week because of concerns that growing U.S. oil output could hamper an OPEC-led deal on production reductions. Benchmark Brent crude futures were down 31 cents at $51.45 a barrel by 1409 GMT. U.S. West Texas Intermediate (WTI) crude futures fell by 52 cents to $48.26. “Speculative investors have thrown in the towel, it seems. We’ve got record selling in the week ending March 14 and the bleeding has not stopped yet,” said Carsten…

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