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61
Oil & Gas Industry / 5,000 vehicles in Nigeria run on CNG - NIPCO
« on: September 18, 2015, 08:26:16 AM »
The Nigerian Independent Petroleum Company (NIPCO) Plc, an indigenous downstream petroleum and gas operator, has said over 5,000 vehicles run on compressed natural gas (CNG) in Nigeria.

The company said the CNG- powered vehicles had come to stay in Nigeria, since the inception of the project in 2009.

NIPCO’s Head of Public Affairs, Mr. Taofeek Lawal, said more than 4,000 vehicles had converted to use CNG in Benin, the Edo State capital.

He said over 500 vehicles were also operating in Lagos on the environment friendly CNG. According to him, the aim of the CNG refilling stations in Nigeria, especially in Lagos, was to provide alternative to Premium Motor Spirit (PMS) at a reduced cost and to boost national socio-economic growth.

He also said aside the economic gains, CNG targeted reduction of unfriendly automobile emissions and exposure of Nigerians to the innovation of powering vehicles on gas, adding that the company has about 10 CNG operating stations nationwide, while others are under construction.

He said the patronage of CNG refilling station, at Ibafo, Ogun, has been impressive with an average of five minutes’ drive by commercial buses and private vehicle owners. “CNG sustainability in Nigeria is sustainable considering that Nigeria is one of the largest producers of natural gas.

“Ibafo CNG station, near Lagos, is a world-class facility with about 12 dispensing pumps for light and heavy duty trucks. The innovation is sustainable because the private sector is taking the lead, as government provides enabling environment for it to thrive,” he said.

Lawal said the conversion of vehicles to CNG compatible costs between N200,000 and N300,000. He said the cost profile of CNG vehicular conversion came with a flexible repayment package and depends on the choice of kit.

He also identified poor awareness, absence of policy on natural gas vehicles and lack of natural gas supply across the country as the cause of poor usage of CNG as fuel for vehicles.

Lawal said stagnation of CNG revolution in Nigeria was also due to the inability of NIPCO and the Nigerian Gas Company to float a Joint Venture (JV).

He noted that lack of gas infrastructure, pricing and the government support militate against CNG expansion in Lagos.

“Nigerians are well informed towards the CNG projects but it can be improved upon. The best time for CNG popularisation is when government increases the price of PMS. This will further compel motorists to think of the cost benefits of powering vehicles with natural gas. Gas at N55 per standard cubic feet is equivalent to one litre of petrol, which currently sells at N87 with government subsidy. All the necessary approval from DPR has been obtained before commencement of operation,” he said.

The company’s officials at the Ibafo CNG refilling station said motorists pay initial deposits of about N20,000 for conversion to gas while the balance is deducted through subsequent purchase of gas.

The Nation

62
Trainings / Re: PTDF OSS Aptitude Tests 2013/2014. Ask your questions here
« on: September 04, 2015, 09:31:22 AM »
@macsmicj,

Thanks for your feedback. I have personally checked the links and the files. They are all ok except for the PTDF Past Questions Part 1. We will fix this in the next couple of minutes.

Please retry the download and reply on this thread if you still have any issues downloading or opening any of them.

63
@macsmicj,

Thanks for your feedback. I have personally checked the links and the files. They are all ok except for the PTDF Past Questions Part 1. We will fix this in the next couple of minutes.

Please retry the download and reply on this thread if you still have any issues downloading or opening any of them.

64

Lagos 03/09/2015 - Anglo-Dutch oil giant Shell said it re-opened on Wednesday two key supply pipelines in Nigeria shut last week because of leaks and sabotage that forced it to declare a "force majeure" on crude oil exports.

"The Shell Petroleum Development Company of Nigeria Ltd (SPDC)...today (September 2) lifted the force majeure on Bonny Light exports following the repair and re-opening of the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL.)", the company said in a statement.

The SPDC, a subsidiary of Shell in Nigeria, said it declared the force majeure last Thursday following the shutdown of both the TNP and NCTL.

The two pipelines take crude to the Bonny Light exports terminal, one of Nigeria's main oil terminals.

"Force majeure" is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.

Shell, a major oil operator in Nigeria, did not disclose the volume of output affected by the incident.

The company has blamed repeated oil thefts and sabotage of key pipelines as the major cause of spills and pollution in the oil-producing region.

Crude oil theft or "bunkering" is a major problem in Nigeria, with estimates that the country loses some $6 billion (4.3 billion euros) in revenue every year because of the practice.

In another development, the managing director of the state-run oil giant NNPC, Ibe Kachikwu, said Wednesday that the nation's armed forces would be involved in policing the nation's oil and fuel pipelines.

"Efforts are in top gear to fix all the crude and petroleum products pipelines across the country," an official Nigerian National Petroleum Corporation (NNPC) statement quoted him as saying.

"The Nigerian Airforce would be engaged to provide aerial survey of the pipelines, the Nigerian Army Engineering corps to fix and police the pipelines and the Nigerian Navy to provide marine surveillance for the network of pipelines," the statement said.

NNPC has more than 5,000 kilometres of pipelines across the country, some located in creeks and forests.

Kachikwu also said that ongoing phased rehabilitation of all the nation's four refineries -- expected to produce 20 million litres of petrol daily at full capacity -- would reduce petroleum products importation.

Nigeria is Africa's largest oil producer, accounting for more than two million barrels per day.

Yahoo News

65
Oil & Gas Industry / Nigeria set to export 68 crude oil cargoes next month
« on: September 03, 2015, 09:27:05 AM »

Abuja 03/09/2015: Nigeria has concluded plans to export about 68 cargoes of about 2.04 million barrels per day (totalling 63.1 million barrels) of crude oil in October, the highest level this year.

Brent crude, which is the benchmark for Nigeria’s blend prices, went up from the $49.20 per barrel it recorded on Tuesday to $50.31 at noon yesterday.

As at press time, WTI Crude for October delivery was trading 30 cents higher at $ 45.70 per barrel while Brent crude went up by 75 cents at $ 50.31 per barrel.

However, the crude oil export programme may have suffered another setback, following the shutdown of a major export trunk line belonging to the Shell Petroleum Development Company (SPDC).

The oil multinational is yet to lift the force majeure on Bonny Light exports, due to a leak discovered on its major trunk lines in Rivers State.

The provisional loading programmes showed that Shell is expected to export seven crude oil cargoes of 221,000 bpd (a total of about 6.85 million barrels) of Bonny Light in October, but the recent development may have jeopardised that arrangement.

Nigeria, which planned to load about 68 cargoes, could still get some increase as the programme for at least three grades (Okwori, Antan and Pennington) were still pending as at press time.

According to the loading programme, Agbami is expected to load eight cargoes with a total of 7.8 million barrels for the month of October; Amenam, three cargoes (2.85 million barrels); Bonga, seven cargoes (6.65 million barrels); Bonny seven cargoes (6.85 million barrels); Brass River, five cargoes (4.11 million barrels); EA, one cargo (0.95 million barrels).

Also, Ebok is planned to export one cargo (0.65 million barrels); Erha, three cargoes (2.99 million barrels); Escravos, six cargoes (5.7 million barrels); Forcados six cargoes (5.7 million barrels); Okono one cargo (0.9 million barrels); Oyo one cargo (0.65 million barrels); Qua 12 cargoes (11.4 million barrels); Usan three cargoes (three million barrels);Yoho two cargoes (1.9 million barrels) and Okwuibome one cargo with a total of 0.3 million barrels in the month.

While confirming the force majeure, the Corporate Media Relations Manager, SPDC, Precious Okolobo, said: “SPDC Joint Venture has declared force majeure on Bonny Light exports effective August 27, 2015, following the shutdown of both the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL). A leak was reported on the TNP at Oloma in Rivers State, while the NCTL is shut down for the removal of crude theft points,”

According to him, the SPDC is working to repair and reopen the two lines as quickly as possible.

The Trans Niger Pipeline, according to Shell, transports around 180,000 barrels per day of crude oil to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation and liquefied gas exports.

The TNP had earlier closed on May 12 and reopened on May 16 following a leak caused by attempted theft. The NCTL pipeline, with about 140,000 barrels of oil per day capacity, had also suffered series of attack in recent times.

Shell had claimed that crude oil theft, sabotage and illegal refining are the main sources of pollution in the Niger Delta, which caused about 75 per cent of spill incidents from the joint venture pipelines in 2014.

An average of 37,000 barrels of oil equivalent a day (bpd) were stolen from the SPDC network in 2014, with an additional 110,000 bpd of production deferred due to illegal interference with pipelines and other illegal activities such as theft of well head equipment.

Besides, Executive Director, International Energy Agency, Maria van der Hoeven, while speaking on “Cheap Oil’s Make-Or-Break Moment for Clean Energy,” said that the plunge in oil prices may be good for consumers and the global economy, but it could also encourage greater use of fossil fuels and thereby hurt efforts to make the planet’s energy system more sustainable.

According to him, policy makers from around the world can prevent this by taking advantage of cheaper oil to make meaningful changes in the way we price energy.

However said that today’s bear market in oil is merely reflecting the changes in supply and demand that were set loose by the bull market of the last several years.

The Guardian

66

President Muhammadu Buhari Wednesday in Abuja directed the management of the Nigerian National Petroleum Corporation (NNPC) to work more closely with the indigenous oil producers boost domestic refining capacities.

The president gave the directive while meeting with members of the Independent Petroleum Producers Association in the Presidential Villa.

Led by its spokesperson and Chief Executive Officer of Seplat Oil, Mr. Austin Avuru, the Association which which represents about 20 Nigerian companies operating mainly on onshore fields had intimated President Buhari of its resolve to build private refineries and increase local production to 1.2 million barrels per day by the year 2020.

While commending the determination of the group to increase the participation of Nigerians in the country’s oil industry, the president pledged his administration’s support and assistance to the project.

“We have the manpower for a more effective participation in our oil industry. We will give you all possible encouragement. You certainly won’t be ignored under my leadership,” he said.

The President also assured the oil producers that the present administration will take appropriate actions to maintain and enhance security in their areas of operation, noting that better security will help to lower production costs, which, he said, had become unnecessarily high in the country.

– Vanguard

67

The new Group Managing Director (GMD) of Nigeria’s state oil company has tapped the private sector as part of an overhaul of senior ranks intended to clean up the entity at the heart of the country’s economy.

According to the Financial Times, Emmanuel Kachikwu was appointed this month by President Muhammadu Buhari, who tasked the former ExxonMobil executive with rooting out corruption and mismanagement at the Nigerian National Petroleum Corporation (NNPC).

Kachikwu said his hiring strategy was intended to “refocus and sharpen” the company. He will also review all Production-Sharing Contracts (PSC) and Joint Venture Agreements (JV) as part of the extensive restructuring.

About a dozen of the appointments made last week included direct hires from Total, Statoil and Royal Dutch Shell. While some of the new recruits have private sector backgrounds, like Kachikwu himself, most are individuals who have spent much of their careers inside the company that he aims to turn round.

Both Kachikwu and President Buhari are grappling with the same dilemma as the latter seeks to govern Nigeria with more transparency and accountability than his predecessors.

Repair of state entities, such as NNPC, must take place without so thoroughly purging them as to remove all institutional experience and upset the fragile political balance that underpins Africa’s most populous country and its vast bureaucracy.

NNPC was at the heart of the alleged industrial-scale theft of Nigeria’s resources that took place with government complicity, and reportedly resulted in many billions of dollars in oil revenues failing to make their way into state coffers. President Buhari, who was elected on an anti-corruption ticket, and his inner circle, have made the institution’s root and branch reform a priority.

Days after taking the helm, Kachikwu dismissed NNPC’s top brass, appointed a leaner executive board and reduced the pool of senior managers (by a third to 88).

Kachikwu wanted to appoint more people with private sector backgrounds but “had to manage the corporate and country politics,” said a source in the Nigerian oil industry, who works for an International Oil Company (IOC).

“Too many outsiders all of a sudden would not have been a good strategy,” he said, adding that the state-owned company “will almost certainly bring in more as time goes on.”

NNPC has said that it aims to create a leaner and more efficient organisation and restructure the company from being a government-focused body towards “a profit-driven business.”

“Over the next five to six months, you will begin to see emerging a new NNPC,” Mr Kachikwu told journalists in the capital, Abuja, last week. Reforms are expected to cover corporate governance to revenue retention, which has become even more important amid lower oil prices.

The administration has to strike a delicate balance when appointing the critical managers who oversee and regulate the activities of Nigeria’s most lucrative industry.

The oil and gas sector provides more than 70 per cent of government revenues.
Head of energy and natural resources at FBN Capital Limited, Rolake Akinkugbe, said the leadership had to be comprised of “those who are more technocratic and those who are more politically savvy, who can negotiate and deal with bureaucratic obstacles.

“It’s possible there could be further changes,” she said, but for now “maintaining people who understand political navigation” is essential.
The challenge of installing the right mix of people has been evident this summer as Nigerians, foreign investors and governments await the announcement of Buhari’s cabinet. He has said this will be in September, more than three months after he took office.

The president has already rejected several recommendations for important government postings on the grounds that they were not of the right calibre and were too familiar with the previous president’s practices, one person familiar with the matter said.

“ Buhari has a difficult political situation to navigate when it comes to the composition of key government bodies,” said Jean Herskovits, a research professor who has written on Nigerian politics for more than 40 years. “He shouldn’t underestimate how difficult this reform is going to be.”

68
Oil & Gas Industry / Oil dips after brief rally
« on: August 19, 2015, 04:22:53 PM »

Oil prices fell again after a brief rise in the previous session, as the US enters the lower demand autumn season and Asia’s leading economies slow down.

Oil prices edged up Tuesday, briefly ending a rout that dominated the last six weeks and pulled down prices by almost a third, after bullish economic data and the prospect of falling crude stockpiles in the US.

But the price rise did not last into Wednesday, when both US West Texas Intermediate (WTI) crude futures and internationally traded Brent fell in early trading in Asia.

“Any recovery in WTI prices from a six-year low may be short-lived with the US entering the slow demand period in September,” ANZ bank said on Wednesday.

US crude futures were trading at $42.37 per barrel early on Wednesday, down 25 cents from their last settlement. Brent was down 28 cents at $48.53 a barrel.

“The recent drop in the price of oil confirms … the global commitment producers have to their current levels of output,” said Scott Cockerham, managing director Houston-based Conway MacKenzie’s Energy Advisory Services.

“Could we see $30 oil in the next 15 months? Absolutely, and headlines like China’s recent yuan devaluation and the prospect of sanctions on Iran being lifted will only contribute to such volatility,” he added.

Cockerham said a slowdown in US drilling activity would not affect global supplies until 2017 and prices would likely remain low but volatile before then.
*Reuters

69
Oil & Gas Industry / NNPC Boss to open company books for public scrutiny
« on: August 19, 2015, 04:19:19 PM »

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has stated his resolve to usher in a new dawn of transparency through the periodic publications of the Corporation’s financial transaction insisting that transparency must be the watchword of every staff in the new NNPC.

Dr. Kachikwu who stated this at his maiden Town Hall meeting with the staff of the Corporation at the NNPC Towers, Abuja, said the new NNPC of his dream is a Corporation anchored on the foundation of transparency.

Charging the staff to break away from the old culture and bring creative solutions to the numerous challenges facing the Corporation, the GMD said with the kind of change he has in mind the staff could not afford to continue with business as usual.

He challenged staff not to obey any directive from him or any superior officer that runs contrary to the rules, adding that President Mohamadu Buhari will not ask him to do anything shady just as he himself would not ask any staff to carry out any unlawful duties.

“I want transparency. Beginning from next month, I want to be able to publish what the company makes. I have told the President that as from next week I will be sending him weekly reports”, he said.

Speaking further on the culture of transparency, he said it should begin with establishing the current financial status of the Corporation and that he would sign on auditors “to do a proper forensic audit to tell us where we are.”

He promised to revisit old processes that used to make for efficient operations, adding that staff should see themselves the drivers of the changes required to bring about the new NNPC.
“You are the best consultants there are. While there may be need to refer certain issues to consultants, ultimately you are the ones who will implement whatever recommendations they come up with; you are the ones who have been around and who understand the system and so you are the ones who should drive the change,” he charged the staff.

He said the change would be anchored on three key issues of people, processes, and profit, adding that the people element was key to the success of the other two elements which was the reason personnel motivation was dear to his heart.

He dismissed reports that he was out to sack 1000 staff and that nothing could be farther from the truth as he needed quality staff to drive the processes and business in the new NNPC.
Speaking on behalf of members of the Petroleum and Natural Gas Senior Staff Association, PENGASSAN Comrade Francis Johnson pledged the readiness of NNPC staff with the GMD to achieve the Federal Government’s reform agenda for the Corporation and the oil and gas industry at large.

Echoing the position of the PENGASSAN President, Comrade Igwe Achese, President of the National Union of Petroleum and Natural Gas Workers, NUPENG, said that as a group, the union has implicit confidence in the ability of the new GMD to deliver on the President Mohammadu Buhari reform agenda in the oil and gas industry.

70

The National Oil Spill Detection and Response Agency, NOSDRA, has directed Shell Nigeria Exploration and Production Company, SNEPCO, to pay $3.6 billion to affected communities of Bonga oil spill.

NOSDRA’s Director-General, Sir Peter Idabor, in a letter to the oil firm, said that the agency imposed a sanction on the company in 2014 for the damage done to the natural resources and means of livelihood by the spill since 2011.

In a statement issued in Abuja by the Head/ Deputy Director, Public Affairs Unit in Abuja, Idabor, said the company did not make any attempt to provide relief materials for the shoreline fishing communities with respect to the acute and chronic impact of the crude oil on the environment.

“Despite the fact that the incident was caused by equipment failure and the admission by the then Managing Director that 40,000 barrels of crude oil spilled into the Atlantic Ocean, no attempt was made by the oil company to provide relief materials for the shoreline fishing communities with respect to the acute and chronic impact of the crude oil on the environment.

“NOSDRA DG, Sir Peter Idabor, has directed SNEPCO to pay the sum of $3,600,191,206.00 or its Naira equivalent as compensation and administrative costs for failure to effect clean up on the impacted site within the stipulated period, as provided in the agency’s Act and Regulations.

“NOSDRA in 2014 issued a notification of sanction to the oil company with regard to the Bonga spill incident but it has yet neither paid compensation to the affected shoreline communities nor provided relief materials to them, as directed by the Agency and the House Committee on Environment.

“Meanwhile, by virtue of the latest reminder on the notification of sanction on the spill incident, NOSDRA has directed SNEPCO to pay the said fine and compensation, or face the legal machinery available to the Agency to ensure its compliance,” it said.

71
Oil & Gas Industry / Oil spill halts Total’s crude export
« on: August 19, 2015, 04:00:37 PM »
A fresh oil spill has forced Total Exploration and Production Nigeria Limited to halt crude export along the Obagi-Rumuekpe 12 export pipeline in Rivers State.

The Obagi-Rumuekpe 12 oil export pipeline transports crude from Obagi field that produces 35, 000 barrels of oil to Bonny.

Speaking with reporters, Total’s E&P Deputy General Manager, Media and Public Affairs, Mr. Charles Ogan confirmed the spill but said cause was still unknown.

He explained that relevant authorities had been informed of the development and that his company was working with the security agencies to secure the location and provide safe access for intervention teams.

Ogan added that the volume of oil spilled and area of impact have not been estimated.

“During crude oil expedition operation on 16th of August 2015 an abnormal situation was observed as the oil from Obagi was not received at Rumuekpe metering station.

“Expedition was immediately stopped and a helicopter over-flight was carried out, which revealed oil spill and fresh excavations on the pipeline right of way. Relevant authorities have been informed.

“In view of the highly volatile nature of the area and the security concerns, we are working with the Nigerian security agencies to secure the location and provide safe access for intervention teams. The volume of oil spilled and area of impact have not been estimated.

“Further update shall be provided in due course. Total E&P Nigeria operates OML 58 with a 40 percent interest, alongside the Nigerian National Petroleum Corporation (60percent),” Mr. Ogan said in a statement.


72

Other than Nigeria’s plummeting finances, oil companies in the country's oil and gas sector, as is the case with oil producers worldwide, have been forced to scale down on investments, slash their budgets and lay off staff as plunging oil prices takes a toll on crude oil exporting countries and industry operators.

Brent sold at $45.54 Tuesday afternoon, down 20 cents but still some way from its 2015 low of $45.19, while US crude futures hit an intraday low of $41.43 - close to their lowest since early 2009 - before picking up when they traded at yesterday's close price of $41.87 a barrel.

A report by the London-based Financial Times (FT) yesterday also showed that for smaller oil firms, better known as independents, to survive, a new wave of industry consolidation is inevitable, as they struggle to remain afloat.

Inadvertently, the report brought to the fore the need for the Central Bank of Nigeria (CBN) and Nigerian Deposit Insurance Corporation (NDIC) to undertake another stress test on Nigerian lenders, which lent heavily to several local firms during their acquisition spree of oil assets sold by the international oil companies (IOCs).

According to FT, dozens of small oil companies are limping along, labouring under heavy debts and dwindling cash flows.

Brent crude has more than halved since June last year, with the slide accelerating after the Organisation of Petroleum Exporting Countries’ (OPEC) decision last November not to cut output, despite a US supply glut and weaker than expected demand in Asia.

The drop has inflicted massive pain on oil exporting countries, widening budget deficits and weakening currencies.

Energy companies have laid off an estimated 70,000 workers and scrapped projects worth billions of dollars, especially in high-cost areas such as Canada’s oil sands and the deepwater fields of the Gulf of Mexico.

The low oil price is reshaping the industry landscape: it drove Royal Dutch Shell’s $55 billion takeover of smaller rival BG Group, and triggered the fall of Nigeria-focused oil explorer Afren, which entered administration last month. Venezuela, a country whose crude oil accounts for 96 per cent of export revenues, and that loses $700 million for every dollar drop in the oil price, typifies the difficulties oil exporters face.

Amid slumping revenues, its cash reserves now stand at a 12-year low of $15.4 billion, according to the CBN data, and there are fears that the coffers could run empty in the first quarter of 2016.

Nigeria is only slightly better off with foreign exchange reserves at slightly over $31 billion, covering five months of imports.

But even Canada, a much wealthier country, is being squeezed. Economists are scaling back forecasts of future production, and Fort McMurray, the Albertan boomtown that was once nicknamed “Fort McMoney”, is seeing leaner times, with workers laid off and projects shelved. Unemployment in Alberta’s oil sands has doubled and councils are cutting their budgets.

But it is not all bad news. Lower oil prices have benefited consumers, leading to lower petrol prices. The windfall is worth more than $200 billion for the US, Eurozone, UK and Japan, according to a report by Capital Economics in May, although so far there is little evidence that consumers are spending much of their spare cash.

However, in the US, sales of petrol guzzlers such as sports utility vehicles (SUVs) are up, and the country is seeing something of a renaissance in motoring.

According to FT, the world’s big energy groups have shelved $200 billion of spending on new projects. Wood Mackenzie, the energy consultancy, says that companies have deferred 46 big oil and gas projects with 20 billion barrels of oil equivalent in reserves, which is more than Mexico’s entire proven holdings. Wood Mac says that the number of major upstream projects expected to be fully approved during 2015 could probably be counted “on one hand”.

Saudi Arabia, which drives OPEC’s policy, is determined to preserve market share and squeeze high-cost rivals, and is pumping crude at record levels to achieve those goals.

But a long period of low oil prices could play havoc with its public finances. Saudi officials say it is well insulated, and it has a huge buffer in the form of foreign exchange reserves, which peaked at about $800 billion in mid-2014. But it is burning through them fast: they dropped by $36 billion in March and April alone. The kingdom is now trying to relieve the pressure on its finances by returning to the bond market, with a plan to raise $27 billion by the end of the year.

Bankers say that its central bank has been sounding out demand for an issuance of about SR20 billion ($5.3 billion) a month in bonds for the rest of the year. As the lower oil price begins to bite, US shale producers, particularly those with weak balance sheets, could become targets for larger companies.

Goldman Sachs says that those that could be vulnerable include US independent oil firms Continental Resources, EP Energy and Halcón Resources, whose leverage (net debt as a percentage of capital employed) is predicted to reach 61 per cent, 49 per cent and 61 per cent respectively next year.

So far M&A involving US shale has been sluggish: most companies with good positions in places such as the Bakken in North Dakota are not yet under the financial strain that would force them to seek a buyer at a knockdown price. Analysts say that the longer oil prices stay low, the more likely that is to change.

One of the worst affected parts of the oil patch has been Alberta, home to Canada’s oil sands industry. Capital spending by the Canadian oil and gas industry will total C$45 billion (US$34.5 billion) this year, 40 per cent lower than 2014.

As a result, forecasts of future output growth are being scaled back. The Canadian Association of Petroleum Producers estimates that Canada will pump 5.3 million barrels a day (b/d) by 2030, a big drop from last year’s forecast of 6.4m b/d.

However, the plunge in the crude price has led to big savings for American consumers. Petrol is now selling at an average of $2.75 a gallon, which is 72 cents below its level a year ago.

US car sales are also humming, hitting annualised rates of more than 17 million in May and June, their highest levels since 2005, according to Motor Intelligence, a data provider. This has been propelled by bumper sales of SUVs and pick-up trucks.

The result: the US is experiencing a motoring renaissance. The distance that the average American traveled by road last year rose for the first time since 2005. When the oil price began its plunge last year, some said that it would have a chilling effect on investments in alternatives to fossil fuels. But that has not happened.

Analysts say that is understandable: oil is used to generate just 5 per cent of the world’s electricity globally, according to the International Energy Agency (IEA), so it does not compete directly with wind, solar or other renewable sources of power.

Unsurprisingly, as low oil prices hit harder on oil exporting countries, Angola has followed in the footsteps of Nigeria by imposing foreign exchange restrictions on the country.

But unlike Nigeria, which banned some imported items such as rice from accessing foreign exchange and introduced a rash of measures such as stopping dollar deposits in domiciliary accounts and limiting hard currency and local currency withdrawals, Angola has chosen a different route.

It’s central bank governor announced a limit on what foreign investors can repatriate, as regulators seek to prop up an economy weakened by a sharp drop in crude prices, reported Reuters.

Under new laws made public late on Monday, foreign firms investing in strategic sectors, which exclude the country’s dominant oil industry, would also have to sign up a local partner.

Africa’s second largest crude producer is struggling to prop up its economy after a halving of oil prices last year sapped dollar inflows, dented the local currency, hampered public finances and prompted huge government borrowing. Angola’s central bank devalued the local currency, the kwanza, by 6 per cent in June, taking the currency’s losses against the dollar to around 23 per cent this year. Economists believe currency weakness will trigger another devaluation in the coming months.

The new Private Investment Law was passed by Angola’s parliament on August 11 but details were initially not made public.

“A significant part of private investment has become a major drain, with foreign currency going abroad,” Governor Jose Pedro de Morais told reporters late on Monday. “This new law will correct this.”

De Morais earlier told the state television that companies operating in Angola and citizens should reduce their “foreign currency needs” by 50 per cent. It was not clear if this was part of the new investment law.

The new law will require foreign companies to run operations from an Angolan bank, de Morais said, a measure experts believe is aimed at monitoring firms which regularly report losses, meaning they don’t have to pay taxes.

Investors in “strategic sectors”, including telecoms, electricity, construction, water, technology and transportation, will need to give a local partner at least a 35 per cent share in the business, the legislation also stated.

Foreign oil majors including ExxonMobil, Chevron, BP, Total and Eni all have large operations in Angola. Portugal, once the colonial ruler in Angola, also plays a major role in the economy.

Standard & Poor’s lowered its credit outlook on Angola to negative last week, indicating it may cut its credit rating on sub-Saharan Africa’s third largest economy if things do not improve.

Meanwhile, the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has restated his resolve to usher in a new dawn of transparency through the periodic publication of the corporation’s financial transactions and its finances, insisting that transparency must be the watchword of every staff in the new NNPC.

Kachikwu, who stated this at his maiden town hall meeting with the staff of the corporation at NNPC’s head office in Abuja, said the new NNPC of his dream is a corporation anchored on the foundation of transparency.

A statement by its spokesman Ohi Alegbe said Kachikwu charged the staff to break away from the old culture and bring creative solutions to the numerous challenges facing the corporation.

The GMD said with the kind of change he has in mind, the staff could not afford to continue with business as usual.

He challenged the staff not to obey any directive from him or any superior officer that runs contrary to the rules, adding that President Muhammadu Buhari would not ask him to do anything shady just as he himself would not ask any staff to carry out any unlawful duty.

“I want transparency. Beginning from next month, I want to be able to publish what the company makes. I have told the president that as from next week I will be sending him weekly reports,” he said.

Speaking further on the culture of transparency, he said it should begin with establishing the current financial status of the corporation and that he would sign on auditors “to do a proper forensic audit to tell us where we are”.

He promised to revisit old processes that used to make for efficient operations, adding that the staff should see themselves as the drivers of the changes required to bring about the new NNPC.

“You are the best consultants there are. While there may be need to refer certain issues to consultants, ultimately you are the ones who will implement whatever recommendations they come up with; you are the ones who have been around and who understand the system and so you are the ones who should drive the change,” he charged the staff.

He said the change would be anchored on three key issues of people, processes and profit, adding that the people element was key to the success of the other two elements which was the reason personnel motivation was dear to his heart.

Kachikwu also dismissed reports that he intends to sack 1,000 personnel of NNPC, adding that nothing could be farther from the truth, as he needed quality staff to drive the processes and business in the new NNPC.

Speaking on behalf of members of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), Mr. Francis Johnson pledged the readiness of the NNPC staff and the GMD to achieve the federal government’s reform agenda for the corporation and the oil and gas industry at large.

Echoing the position of PENGASSAN, Mr. Igwe Achese, President of the National Union of Petroleum and Natural Gas Workers (NUPENG), said that as a group, the union has implicit confidence in the ability of the new GMD to deliver on Buhari’s reform agenda in the oil and gas industry.

73
Oil & Gas Industry / Oil workers protest as NNPC is set to cut 700 jobs
« on: August 19, 2015, 10:15:28 AM »
Oil workers, acting under the aegis of the  National Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association of Nigeria (NUPENGASSAN),  and the National Union of Petroleum and Natural  Gas Workers (NUPENG) have rejected  plans by the Nigerian National Petroleum Corporation (NNPC) to sack seven hundred of its workers.

It was gathered that the workers were holding consultations to stave off any immediate or future plans to lay off any of its members by the management of the NNPC.

The source said ongoing meeting between NNPC Group Managing Director (GMD), Dr Emmanuel Kachikwu and the representatives of the workers, would try and address the issue of retrenchment of workers in the industry.

The workers, had penul-timate last week, urged President Muhammad Buhari, to wade into the issue with a view to compelling the GMD not to sack its members.

PENGASSAN’s spokesman, Babatunde Oke, said workers have protested the sack at the NNPC few days ago to win support for their actions.

NNPC, through its spokesman,  Ohi Alegbe has rebuffed the claims that the state-run oil firm is going to cut about 700 jobs.

Alegbe said ongoing restructuring at the firm would not warrant massive job cuts, as being speculated by the workers, adding that it would only affect top management workers and that most of those affected had already been fired.

74
The crash in the global price of crude oil has impacted negatively on the performance of the oil and gas sector in the nation's capital market for the half year 2015. As a result the value(market capitalisation) of oil companies' shares dropped by N273.44 billion or 25.83 per cent from the corresponding period of 2014. This implies that shareholders in these companies lost the said amount.

Financial Vanguard's review of the performance of the oil and gas sector on the Nigerian Stock Exchange, NSE shows that the sector recorded N786.56 billion in the six month period ended June 2015 as against N1.06 trillion in the first half of 2014. Market capitalisation is the total value of companies quoted on the NSE and is determined by the performance of their share prices and issued share capital.

A cursory review of the oil and gas sector on the NSE shows that in the period under review, the NSE oil and gas index, another stock market gauge, dropped by 21.2 per cent to close at 368.54points from 468.24 points in the corresponding period of 2014.

The drop in the NSE oil and gas index is a reflection of the fall in the prices of petroleum equities. The equities are Beco Petroleum Product Plc, Conoil Plc, Eterna Plc, Forte Oil PLC, Mobil Oil Nigeria Plc, MRS Oil Nigeria Plc, Total Nigeria Plc, Oando Plc and Seplat Petroleum Development Company Plc.

Further review also showed that the oil and gas sector accounted for 7.12 per cent of the equity market capitalisation for the first of half 2015 as against 7.56 per cent in the corresponding period of 2014. Oil companies listed on the NSE are facing challenges of low global price of crude oil which has made investors to either sell off their stocks or adopt a wait and see attitude. The down turn is affecting oil companies and producing countries across the globe.

Meanwhile, the global price of crude oil from January 2015 to August 10, 2015 revealed steady decline. The prices for January was $48, February $54, March $52, April-$57, May $62, June $60, July $54, and August $48

Reacting to the decline in the global oil prices, Arthur Berman, in an interview with Oil Price. Com, said that the current situation with oil price is really very simple. " Crude oil demand is down because of high price that stayed for too long. Supply is up because of U.S. shale oil and the return of Libya's production and now Iran. Low demand and increased supply has resulted in low price.

The Saudis which is responsible for the continued low price are good at money and arithmetic. Faced with the painful choice of losing money maintaining current production at $60/barrel or taking 2 million barrels per day off the market and losing much more money--it's an easy choice: they took the path that is less painful. If there are secondary reasons like hurting U.S. tight oil producers or hurting Iran and Russia, that's great, but it's really just about the money."

Saudi Arabia had met with Russia before the November OPEC meeting and proposed that if Russia cut production, it would also cut and get Kuwait and the Emirates at least to cut along with it. Russia said, "No," so Saudi Arabia said, "Fine, maybe you will change your mind in six months." I think that Russia and maybe Iran, Venezuela, Nigeria and Angola will change their minds by the next OPEC meeting in June.

"We've seen several announcements by U.S. companies that they will spend less money drilling tight oil in the Bakken and Eagle Ford Shale Plains and in the Permian Basin in 2015. That's great but it will take a while before we see decreased production. In fact, it is more likely that production will increase before it decreases. That's because it takes time to finish the drilling that's started, do less drilling in 2015 and finally see a drop in production.

Eventually though, U.S. tight oil production will decrease. Perhaps near the end of 2015--world oil prices will recover somewhat due to OPEC and Russian cuts after June and increased demand because of lower oil price. Then, U.S. companies will drill more in 2016.

"Oil prices need to be around $90 to attract investment capital" he added. He however argues that prices have to be high and stay high for the plays to work. Also drilling can never stop once it begins because decline rates are high. Finally, no matter how big the play is, only about 10-15% of it--the core or sweet spot--has any chance of being commercial. If you don't know how to identify the core early on, the play will probably fail" Berman explained.

Another Economist, Mr. Horsnell, said: "Inventories are very much a second-quarter phenomenon, rather than something that carries on much beyond that. It will sort itself out, primarily because of seasonal increases in demand, but there will also be some falls in supply--the U.S.

Energy Information Administration has recorded drops in U.S. crude-oil production and expects shale-oil output to fall heavily in May. "Demand tends to be at a maximum in the third quarter, particularly demand in power generation for air-conditioning in emerging markets."

http://allafrica.com/stories/201508170018.html

75
Oil & Gas Industry / NUPENGASSAN Flays Gale Of Sacks At NNPC
« on: August 17, 2015, 10:12:28 AM »
Workers, under the aegis of Nigerian Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association of Nigeria (NUPENGASSAN), have challenged the new GMD of NNPC, Dr. Ibe Kachikwu, to recover the stolen trillions of Naira in the oil and gas sector rather than retiring and sacking innocent workers.

The workers claimed that the fight against corruption should not be turned against workers whom government have sworn to protect

NUPENGASSAN, in a statement signed by the NUPENG President, Comrade Igwe Achese, and his PENGASSAN counterpart, Comrade Francis Johnson, in Lagos, at the weekend, said the two unions in the oil and gas sector have reservations about the approach of government to the reform programme in the oil and gas industry without carrying the two unions along in the process.

Part of the statement read: “We dare the new GMD of NNPC, Dr. Ibe Kachikwu, to recover the stolen trillions of Naira in the sector than retiring and sacking of innocent workers. We see the action as an act of cover up.

“While we are fully in support of the fight against corruption, the fight itself should not be turned against workers whom government swore to protect. The ongoing exercise portends a great danger in the oil and sector, if workers are meant to bear the brunt of government current action where the fight of corruption is now used as an act of vindictiveness against workers.

http://dailyindependentnig.com/2015/08/nupengassan-flays-gale-of-sacks-at-nnpc

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