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Nigeria’s 4 Refineries to Produce 10m Litres of PMS Daily – Minister

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The Minister of State for Petroleum, Ibe Kachikwu, said the nation’s refineries were being repositioned to produce not less than 10 million litres of Premium Motor Spirit (PMS), popularly known as petrol, per day.

Mr. Kachikwu stated this on Sunday during his official visit to Kaduna Refining and Petrochemical Company.

According to him, the mission of the visit was to ascertain the current state of the refinery and identify areas of challenges for the workers at the refinery.

“A lot of work has been done and alot manpower has been put in place. But a lot still needs to be done in order to put this refinery to work continuously and reliably,” he said.

He noted that a lot of progress had been made in terms of availability of fuel in the various cities and towns as long queues were fast disappearing from the filling stations.

While commending the management of the refinery for keeping the refinery working for more than a week now, he however said there was room for improvement so as to move the current production level from 1.5 million litres to two or three million litres per day.

He expressed confidence that with more refineries coming on stream, the fuel supply situation would continue to improve in the country.

While fielding questions later from newsmen, the minister said the federal government was doing all it could do to ensure the subsidy on fuel is resolved without inflicting more pains on ordinary Nigerians.

“Everybody is on the same page that we need to get out of it; should we sale product at a certain price or should we let free market rolling so that we can sky rocket prices,” he said.

According to him, the president directed that product should go for N87 per litre for now and that he had given approval to look at market trends and make adjustment if need be.

He assured that the administration was committed to ensuring adequate supply of petroleum products across the country.

The minister, who was received by the Managing Director of KRPC, Saidu Mohammed, was accompanied by top NNPC officials during the visit.

Nigeria’s 4 refineries to produce 10m litres of PMS daily.
(NAN)

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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