Why private refineries are not built — Avuru

Unfavourable government policy, harsh economic environment and lack of adequate fund have been identified as some of the impediments to private sector participation in the refinery business.
The Chief Executive Officer, CEO, Seplat Petroleum Development Company Limited, Mr. Austin Avuru, stated this at the just concluded Nigerian Marginal Field workshop, held in Lagos.

According to him, “The reason why the private sector has not been able to invest in refineries is that you cannot go to the bank to borrow $1 billion to build a refinery when the commercial framework is unclear to your bankers. When you are selling the product in the same market as the government-owned refineries that are regulated; when government says you can only sell the product at N97 per litre.

Queues resurface as marketers disagree over fuel supply

Queues by motorists resurfaced in some parts of Lagos on Monday over fears of an impending petrol scarcity.

Though it could not be distinguished on Monday whether the queues were as a result of panic buying or real fuel scarcity, motorists were, however, seen making desperate attempts to get petrol in some filling stations on Awolowo Road, Ikoyi and the Elegushi area of Victoria Island as well as on the Lagos-Ibadan Expressway.

Our correspondent, who monitored the situation, also found out that most of the filling stations had limited product dispensing from one or two pumps in anticipation of a full blown scarcity.

While no one was sure of the state of fuel supply in the country as of press time on Monday, the Independent Petroleum Marketers Association and the Major Oil Marketers Association of Nigeria have continued to disagree over the availability or otherwise of petrol in the country.

N1.5bn subsidy scam: Ship in Brazil discharged products in Nigeria – Witness

Justice Lawal Akapo of the Federal High Court in Ikeja, Lagos, was yesterday told how Ifeanyi Anosike and his company, Anosyke Group of Companies, refused to carry out any Ship-to-Ship transfer of 15,000 metric tonnes of Premium Motor Spirit (PMS) contrary to claims to that effect.

A statement by the spokesman of Economic and Financial Crimes Commission (EFCC), Wilson Uwujaren, yesterday in Abuja said Anosike and his company are being prosecuted by the commission on charges bordering on forgery and conspiracy to obtain by false pretence the sum of N1,537,278,880.82 from the Petroleum Support Fund.

According to the prosecution witness, Oghare Ebunu, who is an operative of the EFCC, investigations revealed that there was no transfer of petroleum product from the mother vessel, MT KLARA, to a first daughter vessel, MT MARITINA, at Offshore Cotonou, where the content was claimed to have been transferred into SP Boston and Emocean by Anosyke.

ISS secures new offshore contracts in Africa

Inchcape Shipping Services (ISS), the world’s leading maritime services provider, has secured a further significant nomination from one of their key accounts to support their operations in Sub-Saharan Africa.

Building on other recent successes in the region, ISS last month startedan offshore logistics and support contract for Norwegian-based Petroleum Geo-Services (PGS).

Under the 5 month contract, ISS will support a seismic survey project to map oil and gas deposits off the East African coast. Coordinated from the company’s Durban office, ISS will provide PGS’s vessels with a range of services including; standard port agency, vessel husbandry, bunker calls, and freight forwarding services. Additionally, ISS will also be assisting with crew changes, arranging visa and work permit formalities, and airport transfers to and from the vessels.

Minexco launches Ghana work program

Minexco Petroleum Inc. launched its work program for the South Deep Water Tano (SDWT) Block offshore Ghana. Through the company’s JV with AGR Energy and AGM Petroleum Ghana, operational and technical teams will begin work to reassess the existing 3D seismic data over 75% of the SDWT area and further develop its work program for future exploration.

Drilling of prospects is expected to commence in 2015.

AGM Petroleum will work with ExploreCo, a division of state company GNPC, to finalize the work program and subsequently explore and develop the SDWT offshore prospect. The block is in the Tano Basin, which is also home to the producing Jubilee Field.

Martin Keeley, CEO of Minexco Petroleum, said: “The launch of this next phase of analysis and planning further solidifies the cooperation between the operational and technical teams of Minexco, AGR Energy and GNPC to bring this exciting prospect to production.

“As Minexco works closely with GNPC to take an increasingly active role in the development of the country’s natural resources through the training of local talent, we will collectively contribute to the development of Ghana as a hub for the fast growing African offshore E&P sector. We view this model of cooperation as a template for future projects on the continent and abroad.”

Oil spill – Niger Delta leaders embark on SOS mission

Last week, an eleven-member leaders’ delegation of 350 communities, cutting across Delta, Bayelsa and Rivers states affected by the impact of massive crude oil spillage from the Shell/SNEPCO Bonga Fields of 21st December 2011, paid a save-our-soul (SOS) visit to the Ecological Fund Office -EFO, as part of efforts to draw public attention to the failure of Shell company to pay compensation to the affected communities more than two years after the serious incident that generated both national and international concern.

The visit is coming on the heels of outcry by residents of the Niger Delta and civil society of government’s inability to implement the extensive United Nations Environment Programmes’ (UNEP) report on Ogoniland.

OPEC joins U.S. in predicting stronger 2014 oil demand

World oil demand will rise slightly more than expected in 2014, OPEC said on Wednesday, becoming the second major forecaster this week to predict higher fuel use as economic growth picks up in Europe and the United States.

The Organization of the Petroleum Exporting Countries, in a monthly report, said global demand will rise by 1.09 million barrels per day (bpd) this year, up about 40,000 bpd from its previous forecast. The group, which pumps a third of the world’s oil, also sees potential for further rises.

“Given the improvement in OECD oil demand, the likelihood for upward adjustments for world oil demand growth in 2014 is currently higher than existing projections,” said the report by economists at OPEC’s Vienna headquarters.

OPEC’s report comes a day after the U.S. government’s Energy Information Administration raised its 2014 world oil demand growth forecast by a similar increment. Oil prices edged higher after it was released, with Brent crude trading near $109 a barrel.

Egypt to explore idea of buying gas from Cyprus

Egypt and Cyprus will look to cooperate in the field of hydrocarbons and the European nation could even export gas to the North African country, reports Cyprus News Agency.

According to the news agency, these issues were discussed between the Cypriot Minister of Energy Yiorgos Lakkotrypis and the Egyptian Minister of Petroleum Sherif Ismail in Nicosia on Friday.

“We agreed on the immediate establishment of a joint technical committee, which will look at possible ways of cooperation between the two countries,” said Lakkotrypis after the meeting.

Cyprus is turning to Egypt in an attempt to examine all possible options for the exploitation of hydrocarbon deposits found in its Exclusive Economic Zone, adds Cyprus News Agency.

Lakkotrypis said the since Egypt is facing shortage of natural gas as a result of growing domestic demand, it is finding it hard to meet its export contracts.

Egypt, he said, could probably be a potential buyer of Cyprus’ natural gas, reports Cyprus News Agency.

He added that the Technical Committee between Cyprus and Egypt will examine the technical and economic aspects of this possibility and of closer cooperation in general.

The committee will be set up immediately and the Minister expressed hope that in February it will have its first meeting in Cairo, says the news agency.

Block 12 Cyprus’ Exclusive Economic Zone (EEZ) could hold gas reserves between 3.6tcf and 6tcf with a gross mean resource of 5tcf, according to finding of Noble Energy, which operates the block with 70 percent stake.

Total E&P Cyprus Ltd has been granted a license for seismic exploration for oil and gas in block 10 and in parts of blocks 6, 7 and 11 of Cyprus’ EEZ, reports Cyprus News Agency.

Oil majors sell Nigerian stakes worth $6.5bn in 2013

International oil companies (IOCs) are divesting their stake in Nigerian oil fields. Shell, Total and Chevron are among the companies which have sold their stake in shallow water assets in Nigeria.

The three major companies have sold stakes worth $6.5 billion in 2013. Oando Energy Resources will soon take over ConocoPhillips energy business in the country in 2014. The deal has been estimated at $1.7 billion.

International oil companies are keen on selling their stake in 13 oil blocks in Nigeria. Oil majors have spent nearly $100 billion globally to improve oil and gas output. However, the production has not improved as per expectations.

In January 2014, Shell issued profit warning for upcoming quarters. Shell registered massive decline in profit at $2.9 billion in the fourth quarter of 2013 compared to $5.6 billion in the fourth quarter of 2012.

In June 2013, Shell had announced its plan to sell four shallow water or onshore oil blocks in Nigeria.

Nigeria had awarded 24 oil fields to 31 companies in 2003. Till date, only eight companies have managed to start production from the allocated oil fields.

The companies have blamed corporate governance issues for lower investor interest in their projects. Nigerian oil ministry is urging the companies to start production as the economy depends on oil exports to a large extent.

Namibia to sign Kudu gas deal with Zambian Firm

Namibia’s power utility NamPower and and the Copperbelt Energy Corporation (CEC), a private power utility in Zambia are scheduled to sign the Joint Development Agreement (JDA) and the Power Export Agreement Term on the Kudu Power Project in Windhoek today, NamPower announced this week.

NamPower currently holds 100% equity in KuduPower (Pty) Ltd, and it intends farming out 49% to strategic equity investors, of which CEC Africa will take up to 30%.

KuduPower (Pty) Ltd, is a special purpose vehicle that was established in 2005 by NamPower to design, build, own and operate the Kudu Power Station at Uubvlei, 25 KM north of Oranjemund.

NamPower announced this week that CEC will also off take between 200MW to 300MW of power from the Kudu Power Station through a Power Export Agreement with NamPower.

“The JDA and Power Export Agreement negotiations started in 2012 and were successfully concluded in October 2013, with the approval of both agreements by the respective board of directors of NamPower and CEC Africa,” NamPower said in a statement.