Aiteo to build 100,000bpd refinery in Warri

An indigenous full service energy group, Aiteo, has said it will build a 100,000 barrels per day crude oil Greenfield refinery in Warri, Delta State by 2017.

The company, in a document made available to our correspondent in Lagos on Thursday, said “Given the long-term un-sustainability of securing all our petroleum products from imports, we have set out on our most ambitious project yet, which is the development of a 100,000bpd Greenfield refinery.

“Our aspiration is to fast-track the development and construction of the refinery and that actual production from the refinery will come on stream by 2017.”

The company explained that the refinery project had become imperative because 70 per cent of the country’s refined petroleum requirements were imported despite the fact that Nigeria was a major oil producer in the world.

Though Aiteo has been operating in the downstream sector since 1999 when it started as Sigmund Company, it said it had developed capacities across the entire energy value chain.

These include bulk petroleum products’ storage, marketing, supply and trading; retail service station network; exploration and production; oil field services; power generation and electricity distribution; and gas operations.

The company said, “Aiteo, which is one of the fastest growing energy companies in Nigeria, has proven its capacity in the oil sector, given its track record of over 15 years.

“Since every company worth its salt strives to diversify and grow, having harnessed and mastered the downstream business, Aiteo is now strategically moving to the upstream sector to consolidate its hold on the Nigerian energy sector.”

67 marketers to import 1.8MT of petrol in first and second qtr

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has reeled out measures to ensure round-the-clock availability of petrol across the country in a deft move aimed at sanitising the nation’s fuel supply and distribution system.

Under the arrangement which the Nigerian National Petroleum Corporation (NNPC) stated in a statement yesterday, the minister  had approved the allocation of a total volume of 1, 854, 314 metric tonnes of petrol as supplementary volumes for first quarters (Q1) 2014 and second quarter (Q2) 2014 June only delivery.

The statement which was signed by the Group General Manager, Public Affairs of NNPC, Mr. Ohi Alegbe, explained that the supplementary volume for Q1 quota is 750, 000 metric tonnes and that for Q2 June, only volume is 1, 104, 318.

Alegbe noted that whilst the first quarter supplementary volume was designed to complement the earlier allocation in addition to covering any under delivery by marketers due to unforeseen financial challenges, the Q2 (June only) quota is in consonance with the national consumption pattern of 40 million litres per day.
He also stated that the Q2 quota also captures a 23 per cent upper tolerance in the event of default or slippage into July, adding that 27 oil marketers were shortlisted in respect of Q1 and 40 for Q2.
“There are 27 oil marketing companies with proven performance records enlisted in respect of Q1 deliveries. For Q2 (June only), there are 40 marketers with good performance records and whose facilities are functional.

“The idea of June only is to revert back to the normal quarterly sequence, i.e. July-September and October-December,” Alegbe said.

Engota to acquire assets in Nigerian oil industry

New investment fund, Engota, will begin working internationally within the finance industry to build a portfolio of oil exploration and production assets in the lucrative Nigerian market, the Business Wire reported yesterday.

“Nigeria holds some of the richest and lowest cost of production oil deposits in the world. Engota’s indigenous status opens the door to significant opportunities,” the chief executive officer of Engota Fund, Sayo Daniel, was quoted to have said.

Nigeria is the largest oil producer in Africa, with a maximum crude oil production capacity of 2.5 million barrels per day. It is one of the world’s largest oil producing countries and has the largest natural gas reserves in Africa.

The Nigerian oil and gas market offers attractive investment opportunities for companies that can obtain financing and have the expertise to develop the oil rich deposits.

More opportunities have opened in recent years as the playing field has become more level and indigenous companies are stepping up to fill needs previously met by international companies.

The Engota Fund would also seek opportunities for funding Nigerian Exploration and Production companies that offer a significant risk to reward investment profile.
As an indigenous Nigerian operator, Engota would target additional opportunities that overseas companies may not have access to.

The Engota Fund would pursue control of targeted Oil Prospecting Licences and Oil Mining Licenses that offer attractive returns.

“Engota’s uniquely placed team on ground in Nigeria will work to uncover quality opportunities that can be exploited to produce superior financial return,” the Vice-President of Investments, Engota Fund, Chuck Kowalski said.

IMF forecasts ‘quickened’ growth for Nigeria over improved oil production

The International Monetary Fund(IMF) said yesterday  that it expected growth in Nigeria – Africa’s biggest economy – to quicken as oil production picked up after recent supply disruptions.

It stated that South Africa, now ranked second largest in the continent and which suffered low private sector investments in 2013 and mining strikes which  have persisted, would  post modest growth this year as demand picks up in its main advanced economy trading partners.

The IMF said these in its latest Regional Economic Outlook released yesterday. It affirmed that inflation would remain contained in most countries. “Africa, the world’s poorest continent, needed to ensure growth was more inclusive,” the IMF said,’ citing Mozambique where although the economy has expanded at the same pace as Vietnam, but poverty has declined far more slowly. “Inflation in the region will accelerate to an estimated 6.2 per cent in 2014 from 5.9 per cent last year, before easing slightly in 2015, though currency depreciations may lead to renewed upward price pressures,” the body added.

It noted that investment in infrastructure and natural resources would continue to underpin economic activity in sub-Saharan Africa, although capital outflows sparked by tighter global financial conditions pose a risk to growth.

“The main downside risk to this generally positive baseline scenario is the risk that growth in emerging markets might slow much more abruptly than currently envisaged,” the IMF said in the report.