Day: March 3, 2020

Firm seeks to reduce Nigeria’s oil production cost

The Group Managing Director, BRADE Group, Ese Avanoma, has lamented the high cost of crude oil production in Nigeria.

Avanoma said his company would bring in new technologies in a bid to reduce the cost of producing a barrel of oil in the country.

He also advised the Federal Government to review some of the policies in oil and gas industry so as to enhance the ease of doing business.

“The oil industry has undergone major reviews in the past few years; cost is one of the major drivers. We will bring in new technologies and adapt them to the Nigeria environment to see how they can reduce the cost of producing a barrel of oil here,” he was quoted in a statement as saying on the sidelines of the Nigeria International Petroleum Summit in Abuja.

Avanoma said local content needed to be further strengthened and supported, adding that other policies in the industry should be looked at and reviewed to boost the ease of doing business.

He said the government should work towards reducing the red tape in the industry which he said had increased.

According to him, BRADE Group has six subsidiaries operating across Nigeria, Ghana and Uganda.

“We are into drilling and completion of oil and gas wells, heavy equipment to service the oil industry, manufacture of chemicals and new technology adaptation in Nigeria,” he said.

Copyright PUNCH.

Falling crude price, COVID 19, threaten Nigeria’s N10.59tr budget, ECA

Following the continued slide of the price of crude oil in the international market, the country’s ability to implement this year’s budget of N10.59 trillion may be in jeopardy.

For instance, in the last two months, Brent crude oil has fallen from $67 to $51 per barrel, a development that experts say portends danger to oil producing countries. If this continues, it is feared that the country, which relies on revenue from crude oil to sustain her economy, will be badly hit.

To further shut hopes of a possible rise in crude oil price is the outbreak of Coronavirus in China, a development that has resulted in the closure of several factories in the Asian country. This is also said to have affected the demand for crude oil by China.

The Managing Director, PowerCam Nigeria Limited, Mr. Biodun Ogunleye, in a chat with The Nation, warned that if the price of crude oil continued  to fall globally, then the backlash would fall heavily on Nigeria.

He said: “Given the fact that Nigeria is heavily dependent on crude oil for sustenance, coupled with the fact the country has benchmarked its 2020 budget of N10.59 trillion at $57 per barrel, what I can say is that Nigeria is in trouble.”

Ogunleye said the effect of the price fall was being felt in the economy as the country’s Excess Crude Account (ECA) dropped by $253 million in the last two months. ‘’The prices of crude oil are falling globally, coupled with the fact that they are having reverberating effects on Nigeria’s excess crude account. This implies that the country has no choice, than to hope for an increase in the prices of crude oil in the next few weeks, if it wants to grow its economy well,” he added.

The ECA was created as a buffer zone by the administration of former President Oluusegun Obasanjo, to support the economy, in case of  a crisis.

Similarly, a Director, Centre for Energy Studies, University of Port Harcourt, Prof Wunmi Iledare, said the Nigeria cannot be isolated from happenings in the global economy, adding that what the country is witnesssing is a reflection of activities in the global scene.

He urged the government to diversify its economy, adding that the idea would help in providing the country with multiple sources of income.

SOURCE: The Nation

WAPCO set to resume gas supply from Nigeria to Ghana, others

The West African Gas Pipeline Company Limited (WAPCo) has disclosed that it would be resuming natural gas supply from Nigeria to its customers in the Republic of Benin, Togo, and Ghana.

WAPCo, which is the operator of the West African Gas Pipeline was built for the sole purpose of supplying natural gas to these countries.

The disclosure by WAPCo was made in a statement that announced the successful completion of the cleaning and inspection of its 20 offshore pipelines from Badagry in Nigeria to Takoradi in Ghana.

According to the statement, the internal inspection of the 569 km offshore pipeline was completed on Sunday, February 23, 2020, almost one month ahead of the scheduled completion date of March 20, 2020.

“Following the successful cleaning and inspection of the offshore pipeline, WAPCo is resuming the transportation of gas to its customers in Benin, Togo, and Ghana.

“In Ghana, WAPCo is currently transporting natural gas to its Takoradi Regulating and Metering Station only. Gas transportation to its Tema Regulating and Metering Station will commence after the completion of ongoing expansion works under the Takoradi to Tema Interconnection Project expected to be operational in March 2020,” the statement read.

WAPCo also showed appreciation towards its stakeholders, thanking them for the support during the cleaning and inspection exercise that allowed it to safely and efficiently execute the work plan ahead of schedule.

The company said with this completion, it is better positioned to offer reliable and improved service to its customers in Ghana, Togo, and Benin in their effort to provide greater access to affordable and reliable power for economic growth.

“With the completion of the pipeline cleaning and inspection exercise, WAPCo is better positioned to offer reliable and improved service to its customers in Ghana, Togo, and Benin in their effort to provide greater access to affordable and reliable power for economic growth,” it said.

According to the statement, the Ghana Ministry of Energy, Nigeria Ministry of Petroleum Resources, Benin Ministry of Energy Water and Mines, Togo Ministry of Mines and Energy, the Volta River Authority, Nigerian National Petroleum Corporation, and Chevron Nigeria Limited, among others, played significant roles in ensuring the success of the exercise.

Source: VON

03-03-2020

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