23 states sold petrol above N145 official price in June

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The average price paid by consumers for premium motor spirit (PMS) commonly known as petrol, exceeded the N145 regulatory benchmark in Lagos, Kwara and 21 other states in June, data from the National Bureau of Statistics (NBS) show.

The number of states where the price per litre was above the official price ceiling inched a spot higher to 23, compared to 22 in the preceding month.

The cost per litre of petrol grew marginally 0.2 per cent monthly basis to N145.4 in the sixth month and dipped slightly 1.8 percent year-on-year.

Kogi, Nigerian thirteenth largest state by land area, recorded the highest average price at N147.91 last month, up 1.3 percent compared to N150.91 a year earlier. Kebbi (N146.43) and Bayelsa (N146.25) featured in the list of top three states where petrol is most expensive.

Meanwhile, in the previous week, the new chief of Nigeria National Petroleum Corporation (NNPC), Mele Kyari, while making submission on revenue generation of the state enterprise  before the Senate, stated that the N145 pump price of petrol, which is the cheapest in the West African region, might be increased soon.

Kyari said the low price encourages smuggling and hampers the corporation’s revenue-generating capacity.

The Federal Government three years ago raised the pump price of fuel by 68 percent to the current N145 from N86.50, to boost fuel availability, prevent diversion of petroleum products and encourage investment in the country’s refineries.

Petrol sold cheapest in Benue at N144 last month, followed by Kastina (N144.13) and Abuja (N144.2). Average price dipped in these three states by 0.21 percent, 0.57 percent and 1.66 percent respectively.

Average per litre price hovered around N145 across the six geo-political zones, highest in South-south at N145.55, and cheapest in North-west at N145.11.

Diesel declines by the most in Read More...

Shell, Seplat in hunt for land rigs signals possible oil recovery

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The hunt for land rigs by Anglo-Dutch super major Shell, and Nigerian independent Seplat Petroleum, probably shows exploration and production activities are about to pick-up again after active rig count in Nigeria fell by half last year.

 

Shell is getting ready for a major drilling programme and has gone to the market for two jack-ups and a pair of land rigs, one of which will have to handle high-pressure, high-temperature wells. Seplat Petroleum is also searching for a land drilling rig for work on Oil Mining Licence (OML) 53.

As of June 2018, Africa’s largest crude producer had 32 oil rigs according to the Organisation of Petroleum Exporting Countries’ Monthly Oil Market Report (MOMR). But this has fallen to 14 rigs as of June 2019, according to the oil cartel’s latest July MOMR. This is more than a 50 percent decrease.

 

Rig count is a function of the level of exploration, development and production activities occurring in the oil and gas sector. A drop in active rig count means oil exploration and production activities in have decreased year-on-year.

 

“Both elements correlate. To replace oil reserves, you need to intensify exploration and production activities. This means more active rigs. It also means more investment inflows into Nigeria’s oil and gas sector,” one major contractor told BusinessDay in confidence. “Falling active rig count and reserves mean there have been no fresh investments in the sector.”

Nigeria’s oil reserve decreased to 36.247 billion in 2011 from 37.200 billion recorded in 2010, while in 2012 there was relative improvement to 37.139 billion but went down again to 37.071 billion in 2013. In 2014, it stood at 37.448 billion before sliding down to 37.062 in 2015 while in 2016 it stood at 37.453 billion.

However, at … Read More...

Oil majors are betting big on blockchain technology

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Oil giants BP, Shell, Norwegian-owned Equinox (then Statoil), set the digital ecosystem abuzz when they announced plans to develop a blockchain-based digital platform for energy commodities trading in 2017. But now Shell is taking it a notch higher with another investment in the technology first made popular by bitcoin.

 

The world’s fifth largest oil and gas company valued at $262 billion, is investing an undisclosed amount in LO3, a New York startup, using a modified version of the ethereum blockchain to make it easier for individuals to buy and sell locally produced energy using the existing network of power cables.

While the bitcoin blockchain allows users track the flow of value without using banks to audit the system, analysts say LO3’s platform, called Exergy, is designed to track the flow of energy as it is added to a shared, local energy network, giving users absolute certainty on its source and operation.

If the project succeeds, this start-up could disrupt traditional electricity transmission and distribution utilities. In Nigeria, this would be the equivalent of a sub-franchised DisCo alerting you on the power source, available output and units produced and sent out, when and where the grid is challenged, all in real-time.

 

 

Such information will let industries plan heavy production around peak hours, settle bills with ease and let households better manage their energy use and remove the pain of visiting the local utility to resolve technical issues.

 

In oil trading, blockchain can be used as a shared database that updates itself in real-time and can process and settle transactions in minutes using computer algorithms, with no need for third-party verification. Experts say the benefits are enormous including cutting the cost of oil trading.

 

“Ideally, it would help to eliminate any confusion … Read More...

Seplat’s $700m ANOH gas investment to address Nigeria’s power deficit

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Seplat Petroleum Development Company Plc’s planned $700m Assa North /Ohaji South (ANOH) gas and condensate field project, at completion, is expected to contribute significantly in addressing Nigeria’s deficit in thermal power delivery.

This project straddles OML 53 (seplat 40 per cent working interest and operator) and OML 21 (Shell JV).

In a presentation titled ‘Stability, Performance, Growth’ the team of three presenters provided the audience with comprehensive information on the company’s existing gas business, market outlook and anticipated ANOH growth trajectory.

The ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the Nigerian Gas Company. AGPC shall develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.

The company was represented at the forum by its Chief Executive Officer, Austin Avuru; Chief Financial Officer, Roger Brown; and the Managing Director, AGPC, Yetunde Taiwo.

Avuru, in his address, said Nigeria holds 37 per cent of total proved gas reserves on the continent, adding that the majority is concentrated in the Niger Delta.

According to him, Domestic Supply Obligation (DSO) price has increased to commercial levels and non- DSO prices are determined on a willing buyer/willing seller basis; opening up new vista of growth for the seplat’s gas business.

The seplat CEO said: “Nigeria is one of the largest economies in Africa with a population today in excess of 201 million; 50 per cent are urban dwellers while 62 per cent is less than 25 years in age and 93 per cent is less than 55 years in age.

“Projected to grow to a population of 450 million people by 2050 (highest population growth in Africa) and become the third most populated country globally (behind only China … Read More...

FG ‎approves evaluation report of Gas flare commercialisation committee

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The Federal government has approved the Statements of Qualification (SOQs) Evaluation Report presented by the Inter-Ministerial Committee of the Nigerian Gas Flare Commercialization Programme (NGFCP).

Folasade Yemi-Esan, the Permanent Secretary in the Federal Ministry of Petroleum resources gave the information while she also informed each applicant on the Nigerian Gas Flare Commercialisation Programme (NGFCP) will receive an email while successful applicants will attain Qualified Applicant status in line with the design of the Request for Qualification,(RfQ )and will subsequently be invited to submit their proposal for flare gas utilisation through the Request for Proposals (RfP) phase of the NGFCP.

‎Recall, over 850 interested parties registered their interest in the NGFCP while 238 Applicants submitted Statement of Qualification (SOQs) in response to the Request for Qualification (RfQ) published by the Department of Petroleum Resources (DPR).

The Permanent Secretary in a statement signed by Justice Derefaka, the Programme manager, Nigeria Gas Flare Commercialisation programme said : “A total of 238 SOQ documents were evaluated in accordance with the provisions of applicable Regulations, Guidelines, Standard DPR Practices for bid evaluation, and were adjudged either a ‘Pass’ or ‘Fail’ status.

“Following a rigorous exercise conducted in line with established protocol and using the Electronic Evaluation Tool (EET), 205 Applicants emerged successful (attaining a ‘pass status’) while the remaining 33 Applicants did not meet the minimum requirements and thus attained ‘fail status’.

She noted further that: “The PEC in the next stage, which is the Request for Proposals (RfP), will evaluate proposals submitted by the Qualified Applicants (QAs) to determine those Bidders that achieve Preferred Bidder (PB) and Reserved Bidder (RB) status in line with the criteria of the Request for Proposal (RfP) package. Ahead of the Request for Proposal stage, an NGFCP Qualified Applicants’ Workshop is scheduled to hold … Read More...