Billion-dollar new port and marine projects in Nigeria in their preliminary development stages are contending with higher cost of borrowing funds, depreciation of the naira, and foreign exchange volatility.
With the recent adjustment in the benchmark interest rate by the Central Bank of Nigeria by 400 basis points to 22.75 percent, experts say investors would find it difficult to source funds to invest in marine projects.… Read the rest
The Nigerian Gas Association (NGA) has commended the federal government for the recent gazetting of three policy directives in the oil and gas sector.
The directives, issued on March 1, include introducing fiscal incentives for non-associated gas, midstream, and deepwater developments, as well as reducing the contracting cycle from 36 months to six months.
According to a statement on Friday by the association, Aka Nwokedi, NGA president, said the policies mark a significant step towards unlocking investments in the oil and gas sector.… Read the rest
The Nigerian National Petroleum Corporation Limited, NNPCL, says it recorded more than 9000 infractions on the nation’s oil pipeline in one year.
At an oversight visit to the agency’s headquarters, the ad hoc Committee on Oil Theft raises concerns over the herculean challenge posed by operating oil and gas pipelines.
The special committee set up to investigate the challenge of oil theft is at the headquarters of the NNPCL to further gather useful information on the menace.… Read the rest
The Ogbia High Court sitting in the Bayelsa State capital, Yenagoa, has ruled that Otuabagi is the host community to the first oil well that crude oil was discovered in commercial quantities in Nigeria in 1956.
It also ordered “the Oloibiri community to desist from demanding a relocation of the Museum and Research Centre Project or any part thereof since the earmarked project can only be sited where artefacts such as the first oil well are located.”… Read the rest
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe on Monday applauded President Bola Ahmed Tinubu for announcing three Presidential executive orders directed at incentivizing the Nigerian oil and gas industry, encouraging new investments in the sector, reducing contracting costs and timelines, and promoting cost efficiency in local content requirements.
The executive orders are the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc) Order 2024; Presidential directive on Local Content Compliance Requirements, 2024 (EO 41); and Presidential directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).… Read the rest
The Chairman, House of Representatives Committee on Finance, Honourable James Abiodun Faleke on Tuesday, described Nigeria’s $48 per barrel crude production cost as the highest in the world.
This is as he put the cost of production of crude oil per barrel at $9 in Saudi Arabia, $21 in Norway and $24 for the United States of America, adding that despite the increase in production cost, the volume of production has continued to dwindle.… Read the rest
The volume of crude transported through the Trans-Niger Pipeline (TNP) – which is Nigeria’s biggest oil pipeline has, returned to an improved uptime as government’s security measures wade off oil thieves in the oil – rich Niger Delta region.
The improvement has seen crude transported through the pipeline increase to more 200,000 barrels/day in the last 6 months.
It has also ramped up the utilisation of Nigeria Liquefied Natural Gas Limited (NLNG) Trains 1-6 from 57% in 2023 to 70% in Q1 2024.… Read the rest
Against the backdrop of rising challenges plaguing the oil and gas sector which have almost grounded industry activities, the Executive Director of Oando PLC and Chief Operating Officer (COO) Oando energy Resources, Dr Ainoje Irune has, expressed deep concerns regarding the state of the sector, emphasising the need for prompt action.
Irune, who stressed that the sector is in an emergency state, called for an end to yearly deliberations on the same challenges, emphasizing the necessity for a more immediate and focused action to address the industry challenges.… Read the rest
Crude oil earnings by the Federal Government increased by about N449.93bn in the months of December 2023 and January 2024, an analysis of data in the latest reports on Nigeria’s oil production, on Sunday, showed.
Although the Nigerian Upstream Petroleum Regulatory Commission has yet to release oil production figures for February 2024, its latest data so far indicates that Nigeria’s oil output maintained a northward movement in the months of December 2023 and January 2024.… Read the rest
Major oil marketers under the aegis of the Major Energies Marketers Association of Nigeria (MEMAN) have complained that the dollarization of some charges by government agencies like the Nigeria Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) and others, is affecting the supply and distribution of petroleum products.
It stated that the country’s petroleum products distribution and supply chain may face more challenging complexities going by current foreign exchange market intricacies.… Read the rest