BREAKING: FG Approves $1.5bn For Rehabilitation Of Refinery

The Federal Government has approved the sum of $1.5bn for the rehabilitation of the Port Harcourt Refinery.

The Minister of State for Petroleum Resources, Timipre Sylva, stated this while briefing newsmen at the end of the Federal Executive Council, FEC, meeting presided over by President Muhammadu Buhari at the Council Chamber, Presidential Villa, Abuja, on Wednesday.

The minister said that the rehabilitation, which would be in three phases, will commence immediately and to be handled by an Italian firm, Tecnimont S.P.A.

He explained that the first phase would be completed in 18 months, the second phase in 24 months and the final phase would be within 44 months.SPONSORED CONTENT

He assured that the other three refineries will be put in place before the end of the Buhari-led administration.

He said: “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of $1.5 billion, and that memo was $1.5 billion and it was approved by council today(Thursday).

“So we are happy to announce that the rehabilitation of productivity refinery will commence in three phases.

“The first phase is to be completed in 18 months, which will take the refinery to a production of 90% of its nameplate capacity.

“The second phase is to be completed in 24 months and all the final stage will be completed in 44 months and consultations are approved.

“And I believe that this is good news for Nigeria.”

(Vanguard)

BREAKING: Oil Price hits $71.28 on OPEC decision

For the first time in 2021, the price of oil has risen to $71.28 per barrel in the international market, barely a few days after the Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC members had resisted pressure to increase output.

Prior to the crucial 14th Meeting of OPEC and non-OPEC ministers, which took place via video conference on Thursday, March 4, 2021, the oil price had hovered at about $65 per barrel.

But close monitoring of the market by Vanguard showed that the price, fuelled by the continued removal of excess supply, started surging towards $70, before hitting the current level on Monday, March 8, 2021.

Specifically, while the price of Brent increased from $65 to the current $71.28 per barrel, the price of Nigeria’s Bonny Light, hovers at $67.69 per barrel, showing an excess of almost $30 as the nation’s 2021 budget was based on $40 and 1.8 million barrels per day, mb/d, including Condensate.

Source: Vanguard

PIB may reduce Nigeria’s competitiveness, says Oil Producers

In spite of the high hopes that the passage of the Petroleum Industry Bill (PIB) would lead to increased revenue for the Federal Government, the International Oil Companies (IOC) on Monday warned that that the Bill may reduce Nigeria’s global competitiveness if passed in its current form.

The IOCs represented by the Oil Producers Trade Section (OPTS) raised the fear during a public hearing on the PIB, organised by the Senate Joint Committee on Petroleum (Upstream, Downstream and Gas) in Abuja.

The Chairman of the OPTS, Mike Sangster, said: “We fear that if the PIB is passed in its current form, it will not meet the government’s objectives of making Nigeria the leading destination for oil and gas investment and the recent scarcity of investment – only $3bn out of $70bn (representing 4 per cent) in Africa – will continue.

“This lack of competitiveness is caused in part by the high cost of doing business in Nigeria, with overall project costs and operations costs being 69% and 42% higher than the global average respectively.

“Nigeria’s Government Take also remains high and uncompetitive, exceeding that of most comparable prolific basins.

“A PIB, which safeguards existing projects and introduces competitive terms, is required to fully utilise the country’s resources for the benefit of all Nigerians.”

Sangster said that after a diligent review of the PIB, the OPTS lauds the “Federal Government’s efforts to introduce a comprehensive bill to address a number of issues affecting the operation of the industry.”

He said that the OPTS observed some positive provisions in the PIB which include: “Lower headline tax rates for onshore and shallow water oil development activities, gas production not subject to the new Hydrocarbon Tax (HT), and maintenance of current tax consolidation principles for the purpose of Companies Income Tax (CIT).”

He listed other benefits of the bill to include “optional conversion to new PIB, recognition of ongoing Deep water negotiation and commercialisation of the Nigerian National Petroleum Corporation (NNPC)…”

Sangster added: “However, we have also observed that there are a number of issues in the PIB that remain of concern to the industry.

“These issues have the potential to hinder the realisation of the PIB’s laudable objectives, to reduce Nigeria’s competitiveness and to deter the much-needed investments – especially tin Deepwater – to grow new projects.”

The areas of concern according to the OPTS chief are Deepwater development, lack of key enablers for domestic gas development, preservation of base businesses & rights and segregation of Upstream and Midstream deemed assets.

Others are administrative complexities and absence of a robust dispute resolution framework, capital allowances and deductions and preservation of earned rights and investments integrity for Marginal Fields.

However, Senate President Ahmad Lawan, said that the PIB will ensure that Nigerians benefit optimally from crude oil production and sale of fossil fuel reserves.

According to the Senate President, the National Assembly in its consideration of the Bill would ensure that the law guarantees improved revenue earnings for the country.

Lawan said: “Let me say this, we (National Assembly) will pass this bill not without ensuring that it is a bill that satisfies certain conditions.

“Nigeria is blessed with these resources; we want Nigeria to benefit optimally from them. In fact, we are in a hurry because we have lost so many years of benefits that we could have had.”

Minister of State for Petroleum, Timipre Sylva, noted that apart of the current COVID-19 crisis that has cause the strongest recession experience, the oil industry is faced with other critical challenges.

He said: “Several nations have announced their intent to comply with the Paris agreement 2016 and adopted climate change policies by 2050 or 2060.

“This means that the usefulness of fossil fuel will diminish significantly. Indeed
UK, South Korea, China, Brazil and some other nations fall within this category.

“Global financing of fossil fuel projects have also been affected with many investor nations and other major players within the financial ecosystem have reiterated their intention to stop funding projects fitting this description in 2025.

“This will inevitably impact the ability of industry players to access the needed funds with which we will bring assets into production and by extension reduce government’s revenue ordinarily.”

Group Managing Director of try NNPC, Melee Kyari, lamented that the oil industry has not seen significant investments and developments since year 2000 till date.

When we started the journey to PIB in 2000 through the oil and gas reform committee, that was the beginning of uncertainty in the industry.

Since 2000 till this moment, I can also confirm that the industry has not seen significant investments and developments.

Kyari said: “The reason is very clear. We have stagnated and that stagnation we need to exit it like yesterday.

“20 years ago, the top most companies were oil and gas companies but today the top most company is a supermarket.

“In more than 30 years to come, we will still be resource dependent in the sense that it is a developing country and we have 70 per cent of our population below 30 years of age.

“The PIB will bring us back into reckoning to take advantage of the resources that we have today so this country can make progress.”

On their part, the Host Communities of Nigeria Producing Oil and Gas, insisted on 10 percent equity shareholding in the three companies to emerge from the commercialisation of the NNPC.

The National President of HostCom National, Dr. Benjamin Tamaranebi, said:
“After 60 years of marginalization and bearing the brunt of the negative impacts of exploration and exploitation.

“Today some states have started discovering and enjoying their natural resources but the oil producing states and HostCom are not envious of them therefore our position is sacrosanct.

“It will be very absurd and economically very illogical to deprive HostCom the right to equity shareholding in both the establishment of the NNPC Limited, the Commission, the Authority and the Boards.

“Rather than attempt to sell performing equity as stated in the 2020 PIB, no equity/asset is performing more than our Oil and Gas reserves.
This quest to take over complete control of all our National assets by a very unpatriotic few has to stop.”

Tamaranebi later told reporters that the provision that oil companies should contribute 2.5 per cent of their operating expenditure to the Host Community Development Trust Fund should also be increased to 10 per cent.

On her part, President, Women in Energy Network (WIEN), Funmi Ogbue, that the provision that oil companies should contribute 2.5 per cent of their operating cost to the host community development trust fund is exorbitant in view of other taxes they are presently paying.

Ogbue said: “WIEN believes that 2.5% is too expensive. WIEN posits that a total of not more that 1% consistent with other statutory provisions like the Nigerian Local Content Act 2010; replace the current figure captured in the PIB.”

OIL RETAILERS MANDATED TO COMPLY WITH NEW PRICE

Rivers State Chapter of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has ordered owners of filling stations in the State to reduce price of fuel pump by 5 naira.  Oil retailers within Rivers are expected to comply from Monday 14th of December, 2020. In a media chat with journalists in Port Harcourt on Wednesday 9th of December, 2020, the Rivers State Chairman of PETROAN, Francis Dimkpa disclosed the association’s latest directive concurs with the agreement reached between the Organised Labour and the Federal Government of Nigeria. A meeting between the Federal Government and organised labour resolved that the pump price of Premium Motor Spirit (PMS) be reduced from 168 naira to 162.44 naira per/litre, commencing from December 14, 2020. Dimkpa said “PETROAN welcomes the reduction in price as a result of the agreement between the Federal Government and the Organised Labour and we are looking forward to its implementation from Monday,14 December, 2020.” He added that “By this, we are encouraging all members of Petroleum Products Retail Outlets Owners Association of Nigeria to key into the government and labour agreement of reduction in price come 14th December, 2020 and effect the reduction as expected.” The new slash in price was a product of a joint committee of Nigerian National Petroleum Corporation (NNPC) and labour representatives who addressed ways of cutting costs.

Source: https://oilandgasgoodness.com/post/oil-retailers-mandated-to-comply-with-new-price

Petrol now N151.56 per litre – PPMC announces


The Pipeline and Product Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has announced an increment in the price of petrol to N151.56 per litre.

In a statement obtained by Vanguard, D.O Abalaka of the PPMC, stated: “Please be informed that a new product price adjustment has been effected on our payment platform.

“To this end, the price of Premium Motor Spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre.”

Source: https://insightlinks.net/breaking-petrol-now-n151-56-per-litre-ppmc-announces/

Oil rises above $45, OPEC+ cut compliance dips

The international oil benchmark, Brent crude, rose above $45 per barrel on Monday, supported by an improvement in Chinese factory data, rising energy demand and hopes for an agreement in the United States on more coronavirus-related economic stimulus.

Brent, against which Nigeria’s crude oil is priced, climbed by $0.81 to $45.21 per barrel as of 6:40pm Nigerian time on Monday.

Quota compliance by the Organisation of Petroleum Exporting Countries and its allies fell to 96 per cent in July, from 106 per cent in June, with their collective production increasing by 1.10 million barrels per day, the latest S&P Global Platts survey found.

Gulf members led by Saudi Arabia ended their voluntary extra output cuts, while some countries that have struggled to adhere to their quotas continued to pump above their caps, according to S&P Global Platts survey.

OPEC+ output is set to rise even further in August, with the 22-country coalition hiking its quotas by about two million bpd in anticipation of higher global oil demand.

But some of the additional production may be offset by so-called compensation cuts pledged by members that overproduced their quotas in May, June and July.

In particular, Iraq, Nigeria, Angola and Kazakhstan have come under intense scrutiny from their OPEC+ counterparts for their excess output.

Iraq has said it will cut an extra 400,000 bpd below its quota in August and September, after missing its target yet again in July, while Angola and Kazakhstan significantly improved their performance in the month.

Nigeria, meanwhile, maintains that some of its production should be categorised as condensate, which is not subject to the quotas.

A key monitoring committee co-chaired by Saudi Arabia and Russia, the two largest OPEC+ members, will meet August 18 to assess compliance and hash out the compensation cuts.

OPEC’s 13 countries produced 23.39 million bpd of crude oil in July, the survey found, up 1.08 million bpd from June. The 10 members with quotas under the OPEC+ accord achieved 94 per cent compliance with their committed production cuts, according to Platts calculations.More in Home

Nigeria was well above its cap in July, producing 1.56 million bpd, the survey found, though the country and OPEC officials say its offshore Agbami grade should be re-categorised as condensate.

 Copyright PUNCH.

Fuel import: PPPRA engages central bank on forex for oil marketers

The Petroleum Products Pricing Regulatory Agency (PPPRA), Monday said it is engaging with the Central Bank of Nigeria (CBN) on ways to make foreign exchange accessible to private oil marketing companies seeking to import Premium Motor Spirit (PMS), also known as petrol, and other petroleum products.

In a statement in Abuja, Executive Secretary of the PPPRA, Mr. Abdulkadir Saidu, disclosed that the engagement with the CBN was aimed at determining the applicable Foreign Exchange rates for the importation of petroleum products and modality for accessing the applicable Foreign Exchange window by the Marketers.

He said, “This rate is reflected on the pricing template to determine the expected open market price of the product. This means that going forward, the guiding price to be advised, will be determined based on the rates quoted by CBN.

“The price is expected to guide the sale of PMS in Nigeria. In fact, we plan to extend the same pricing mechanism to Aviation Turbine Kerosene (ATK), Automotive Gasoline Oil (AGO), among others. The whole essence of the price band is to ensure price efficiency that is beneficial to both the consumers and oil marketers.”

Saidu maintained that the country’s existing refineries were expected to play key roles in the current fuel pricing regime, adding that the policy would also create immense opportunity for increased private sector participation in the industry.

He said, “The Nation’s refineries are required to key into the new pricing regime just like all other operators both private and public. The new regime will open up the Oil and Gas Sector for more private players and investments in refineries, storage facilities and transportation.

“At the end of the day we expect to see more private players operating in the industry. The liberalization of the entire industry will make it possible for private investors to recoup their investments, leading to a more vibrant downstream sector.

“However, in order for the nation’s refineries to continue producing fuels, the authorities in charge of the refineries need to fix the refineries and ensure they come back on stream at optimal level. We believe the upcoming Dangote Refinery and other modular refinery projects nationwide will be able to key into the new pricing regime.”

Saidu explained that the decision of the Federal Government to adopt the current PMS pricing regime was borne of the need to conserve scarce resources and the pressure the collapsing prices of crude oil in the international market brought on the revenue of the government.

He said, “Furthermore, the plunge in global crude prices made it increasingly difficult for Government to finance the 2020 National budget as it was predicated on a crude price of $57 per barrel. The low crude oil prices, therefore, presented the opportunity to address the lingering challenges associated with the Under/Over-Recovery regime and free up vital funds required to develop in other key sectors of the economy.

“Additionally, the new initiative is expected to stimulate private investment and growth in the downstream sector and encourage the resumption of products importation by Oil Marketing Companies, translating to more job creation as many depots and facilities that were dormant would now become active.”

The PPPRA chief executive added that: “What we have in place is a market reflective pricing system. Petroleum products prices will be adjusted in line with market realities and the result is what we see presently with prices on the downward slide. Accordingly, price will naturally be adjusted to reflect a true picture of market fundamentals at any particular period (high or low).

“The liberalized pricing regime will ensure a competitive and more efficient PMS market that guarantees reasonable returns to operators and ensure consumers pay appropriate prices in line with market reality and ensure they are not over-charged.”

Source: Today.ng

Breaking: FG reduces the pump price of petrol again, now to sell at 123.50k

The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced further reduction of the pump price of Premium Motor Spirit (PMS) also known as petrol from N125 to N123.50k per litre.

The agency made the announcement in a statement singed by its Executive Secretary, Abdulkadir Saidu, in Abuja on Tuesday night.

“PPPRA in line with the government approval for a monthly review of Premium Motor Spirit (PMS) pump price, hereby announces Guiding PMS pump price of N123.50 per Litre.

“The Guiding price which becomes effective April 1 2020, shall apply at all retail outlets nationwide for the month of April, 2020.”

He added that PPPRA and other relevant regulatory agencies would continue to monitor compliance to extant regulations for a sustainable downstream petroleum sector.

Saidu noted that members of the public and all Oil Marketing Companies are to be guided accordingly.

The agency had on March 18 reduced the pump price of PMS from N145.00 to N125.00.

It noted that from April 1, it would start a new pricing modulation that would reflect the global market fundamental.

source: https://www.expressiveinfo.com/breaking-fg-reduces-the-pump-price-of-petrol-again-now-to-sell-at-123-50k/

Oil surges 5% after US kills top Iran general

A US airstrike that killed a top Iranian military commander has ignited fears of a spiraling military conflict, abruptly halting the market rally that opened the new year.

The price of oil surged by about 4% on Friday amid the sudden risk-off sentiment.

The airstrike killed Iran’s elite Quds force commander, Maj. Gen. Qassem Soleimani, the US said on Thursday night.

“To many in the Middle East, this may be deemed a declaration of war,” Helal Miah, an investment research analyst at The Share Centre, said in an email.

“A rise in oil prices … is just what the global economy needs to avoid at this time where growth is fragile.”

Here’s where markets were trading at about 9:40 a.m. in London (4:40 a.m. in New York):

  • West Texas Intermediate andBrent crude each rallied at least 4% on the news before paring those gains early London time. WTI was up about 3.4% to $63.27 a barrel, while Brent gained 3.5% to about $68.53.
  • US futures underlying the S&P 500, the Dow Jones Industrial Average, and the Nasdaq were down more than 1% each.
  • Europe’s benchmark Euro Stoxx 50 was down about 0.8%. Germany’s DAX slumped about 1.2%. France’s CAC 40 Index fell 0.5%.
  • In Asia, the Nikkei and Hang Seng fell at least 0.3%. The Shanghai Composite Index was down 0.1%.
  • Gold jumped 1.4% to about $1,549.

“A severe retaliation awaits murderers who have the blood of Soleimani and that of other martyrs on their wicked hands from last night’s incident,” Iranian Supreme Leader Ayatollah Ali Khamenei said, according to a statement cited by Bloomberg.

“It’s never likely to be good news for the markets when ‘World War III’ is trending on Twitter,” the AJ Bell investment director Russ Mould said in a morning note to clients. “It is therefore hardly a surprise to see yesterday’s positive start to 2020 for stocks come to an abrupt end.”

The US move “promises to escalate tensions in the Middle East and it is unsurprising to see crude oil prices trade higher to factor in potential disruption to supply from the region,” he said.

“Turbulence often sees investors reaching for the safety belt of gold exposure.”

Source: Market Insider

13-12-2019

AGO

PORT HARCOURT DEPOTDEPOT PRICE
AVIDOR PH/NIPCO
SHORELINK ₦192.0
BULK STRATEGIC PH
TULCAN/TSL
MASTERS₦193.0
LIQUID BULK₦193.0
STOCKGAP
NIPCO/SIGMUND₦194.0
BULK STRATEGIC/NIPCO
BULK STRATEGIC/TULCAN
TSL
CALABAR DEPOTDEPOT PRICE
NORTHWEST
AMMASCO
MAINLAND / PPMC₦ 195.0
SAMON PET
FYNEFIELD₦ 195.0
ALKANES
YSG (YOUNG SHALL GROW)
BLOKKS
HYDE
AZMAN/NIPCO₦ 194.5
UGO HANNAH
WARRI DEPOTDEPOT PRICE
RAINOIL OGHARA₦ 192.0
NEPAL OIL & GAS / NNPC
PRUDENT OGHARA₦193.0
MATRIX₦192.0
CYBERNETICS
PINNACLE
AYM SHAFA₦192.0
LAGOS DEPOTDEPOT PRICE
AFRICA TERMINALS₦ 191.5
IBACHEM₦ 192.0
IBETO₦ 192.0
INT. OIL & GAS₦189
LEIGHTEN PET
ETERNA₦ 192.0
FOLAWIYO₦ 189.5
OBAT
CHIPET
RAHAMANIYYA
A Z
NIPCO₦ 191.0
AITEO₦ 190.0
AIPEC₦ 190.0
SAHARA₦ 191.0
EMADEB ENERGY
A.A RANO₦ 190.0
WOSBAB₦ 190.5
MAO₦ 190.0
GULF TREASURE
SWIFT₦ 190.0
RAIN OIL₦ 190.0
MENJ₦ 192.0
TECHNO OIL₦ 187.5
FATGBEMS₦ 190.0
FIRST ROYAL₦ 189.2
BOVAS₦ 190.0
MRS₦ 190.0

DPK

PORT HARCOURT DEPOTDEPOT PRICE
AVIDOR PH
SHORELINK
BULK STRATEGIC PH
TSL
MASTERS
LIQUID BULK
STOCKGAP
CALABAR DEPOTDEPOT PRICE
NORTHWEST
AMASCO
MAINLAND / PPMC
SAMON PET
FYNEFIELD
ALKANES
YSG (YOUNG SHALL GROW)
BLOKKS
WARRI DEPOTDEPOT PRICE
RAINOIL OGHARA
NEPAL OIL & GAS / NNPC
PRUDENT OGHARA
MATRIX
A.Y. Shafa
LAGOS DEPOTDEPOT PRICE
AFRICA TERMINALS
IBACHEM
IBETO
INT. OIL & GAS
LEIGHTEN PET
ETERNA
FOLAWIYO
OBAT
D-JONES
RAHAMANIYYA
SAHARA
NIPCO
AITEO
AIPEC
STAR SNERGY
EMADEB ENERGY
A.A RANO
WOSBAB
MOBIL
CHIPET
BOND
RAIN OIL
MENJ
INDEX
MRS

ATK

PORT HARCOURT DEPOTDEPOT PRICE
AVIDOR PH
SHORELINK
BULK STRATEGIC PH
TSL
MASTERS
LIQUID BULK
STOCKGAP
CALABAR DEPOTDEPOT PRICE
NORTHWEST
AMASCO
MAINLAND / PPMC
SAMON PET
FYNEFIELD
ALKANES
YSG (YOUNG SHALL GROW)
BLOKKS
WARRI DEPOTDEPOT PRICE
RAINOIL OGHARA
NEPAL OIL & GAS / NNPC
PRUDENT OGHARA
MATRIX
LAGOS DEPOTDEPOT PRICE
AFRICA TERMINALS₦ 204.5
IBACHEM
IBETO
INT. OIL & GAS
LEIGHTEN PET₦ 204.5
ETERNA
FOLAWIYO
OBAT₦ 203.0
D-JONES
RAHAMANIYYA
INDEX₦ 205.0
NIPCO
AITEO
ASCON₦ 205.0
STAR SNERGY
EMADEB ENERGY₦ 204.0
A.A RANO
WOSBAB
MAO
CHIPET
BOND₦ 204.0
FORTE OIL
MENJ
MRS
MOBIL₦ 203.0

PMS

PORT HARCOURT DEPOTDEPOT PRICE
AVIDOR PH
SHORELINK ₦ 133.8
BULK STRATEGIC PH
TSL₦ 133.8
MASTERS₦ 133.8
LIQUID BULK₦133.8
STOCKGAP₦133.8
CALABAR DEPOTDEPOT PRICE
NORTHWEST ₦ 133.5
AMASCO
MAINLAND / PPMC₦133.4
SAMON PET
FYNEFIELD₦ 133.5
ALKANES
YSG (YOUNG SHALL GROW)
BLOKKS ₦133.4
UGOHANNA
HYDE
DOZZY₦ 133.4
WARRI DEPOTDEPOT PRICE
RAINOIL OGHARA₦133.0
NEPAL OIL & GAS / NNPC₦133.0
PRUDENT OGHARA₦133.1
MATRIX₦133.0
AYM SHAFA₦ 133.0
PINNACLE/PPMC₦ 133.0
LAGOS DEPOTDEPOT PRICE
AFRICA TERMINALS
IBACHEM
IBETO
INT. OIL & GAS₦132.0
LEIGHTEN PET
ETERNA₦133.2
FOLAWIYO₦133.3
SWIFT₦132.4
D-JONES₦131.5
FIRST ROYAL₦ 132.0
GULF TREASURE₦133.0
NIPCO₦132.5
AITEO
AIPEC₦132.2
STAR SNERGY₦132.0
EMADEB ENERGY₦132.5
A.A RANO₦132.3
WOSBAB₦132.3
MAO
CHIPET
FORTE OIL₦ 133.3
RAIN OIL₦132.0
MENJ₦133.2
FATGBEMS₦132.2
SAHARA₦ 132.5
INDEX
BOVAS₦132.2

LPG

PORT HARCOURT DEPOTDEPOT PRICE
STOCKGAP
CALABAR DEPOTDEPOT PRICE
DOZZY
WARRI DEPOTDEPOT PRICE
PRUDENT₦ 4,200,000
MATRIX
RAINOIL
LAGOS DEPOTDEPOT PRICE
NIPCON 4,350,000
NAVGASN 4,400,000
NNPC
PPMCN 4,400,000