The federal government and the oil and gas-producing companies operating in the country may have lost about $3billion to the bombing of Forcados pipeline that conveys Forcados grade of crude oil to the 400,000 barrels per day Forcados Export Terminal.
Shell Petroleum Development Company (SPDC) and other upstream companies operating in the western Niger Delta evacuate crude oil and condensates through the 48-inch subsea Forcados pipeline to the export terminal.
Following a spill that occurred on February 14, 2016 on the subsea crude oil export pipeline, Shell had on February 21, 2016 declared force majeure on Forcados liftings effective 1500hrs (Nigerian time), due to the disruption in production.
The company had also intensified efforts on containment and oil recovery, while also finalising repair plans, which the Minister of State for Petroleum, Dr. Ibe Kachikwu, had initially said could be completed by May 29.
A new militant group, the Niger Delta Avengers (NDA) had claimed responsibility for the attack.
However, a fresh threat by the NDA to attack oil workers and contractors involved in the repairs, had frustrated efforts to meet the May 29 initial target.
A source close to one of the companies that utilises the pipeline told us at the weekend that all the companies and the federal government might have lost an estimated $3 billion to the militant attack.
“If we talk about crude oil and gas, the companies and the government may have lost $3 billion revenue, based on the average oil price within this period. Collectively, 250,000 barrels per day – 300,000 barrels per day were shut-in and this represents the average daily loss and this has persisted for seven months at average oil price of $45. Assuming the pipeline is repaired this month, the loss may have lasted for seven months. We can’t quantify the loss by households and businesses as a result of power failure. Industries depend on gas also,” he said.
“Throughout this period, there is no gas for power generation. So, homes are in darkness and businesses depend on diesel generators. Industries are also short of gas and this increases operating costs. The total cost will be enormous when quantified,” he explained.
“Some of the companies using the pipeline have recorded zero production due to the attack,” he added.
From a peak of $115 per barrel in June 2014, crude oil price, which hovered around $49 per barrel last week, had dropped to $27 per barrel in January before it rose to 2016 peak of $52 per barrel in June.
Trans-Forcados Pipeline, which is operated by SPDC, belongs to the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
Companies hit by the attack include: Shell, Seplat Petroleum Development Company Plc, Shoreline Resources Limited, Neconde, First Hydrocarbon Nigeria (FHN) and NPDC.
Some marginal field producers such as Pillar Oil, Midwestern Oil and Gas, Platform Petroleum and Energia also convey their crude oil through the pipeline.
However, some of these marginal field producers have another alternative route through the pipelines operated by the Nigerian Agip Oil Company (NAOC) to carry their crude oil to Brass Export Terminal.
Seplat, it was learnt, had also built alternative pipeline to supply crude oil from its western Niger Delta operation to the Warri Refinery but still depends largely on the Forcados pipeline.
World Mobile to Launch Connectivity in Public Spaces to Boost Zanzibar’s GDP
Blockchain network operator World Mobile, in partnership with The eGovernment Agency of Zanzibar (eGAZ), have announced the launch of free – metered WiFi internet access at all state agencies, Ministries, local Government offices, bus stops, the airport, ports, fish markets, municipal offices/markets, municipal/state housing estates, hospitals/clinics, and any other public facing government institutions.
World Mobile is the first blockchain mobile network powered and run by the people and fueled by World Mobile Token.
In the first 60 days, the partnership will aim to connect the airport, ports and properties owned by the National Housing Corporation of Zanzibar within the main island of Unguja, as part of World Mobile’s plan to provide connectivity to all of Zanzibar’s population by the end of 2023.
This is the first stage of an ambitious partnership and five-year plan which will drastically boost Zanzibar’s GDP, which includes a Blockchain Centre of Excellence, an eGov solution providing digital identities and integration with government systems, revolutionising the Blue Economy (enhancing how the local fishing economy works) and then taking this enhanced business approach to other industries.
“Zanzibar is on its path to becoming Africa’s blockchain hub, and we are thrilled to help make it a reality, sending ripple effects across the region. Together with IOG, our efforts to connect the unconnected will enhance Zanzibar’s economy in multiple ways.” said Micky Watkins, World Mobile CEO.
Said Seif Said, Director General of Zanzibar’s E-Government Agency added: “We are excited to shine a spotlight on Zanzibar’s emerging potential as the technology and blockchain centre of the future, starting with providing connectivity to people and businesses in the region. On this, we will build innovative new ways of conducting local government and boosting businesses, and we are looking forward to reaping the fruits of this spectacular initiative.”
RJ Katunda, CXO of World Mobile also added: “We are here in Zanzibar to listen, learn and assist, and with that mantra we already have an agreement with the Ministry of Education and Vocational Training in Zanzibar whereby we have been given access to all government owned schools and Educational Institutions to install internet connectivity. This will allow the schools to directly communicate through the EMIS system to the ministry and at the same time act as a World Mobile Node where the schools will earn a revenue share from all users connected to the node. This not only solves the connectivity issues for the schools, it also creates a new source of revenue for them.”
BUA Foods Rice Unit to Commence Production this Year
A subsidiary of BUA Group, BUA Foods Plc, on Tuesday stated that it will begin rice business in the second half of the year.
Investors King recalls that BUA Foods listed N18 billion shares on the main board of the Nigerian Exchange Limited (NGX) two weeks ago.
The rice production is expected to recommence with 480 MT daily capacity and in future rise to 2,700 MT daily.
The Managing director of BUA Foods Plc, Ayodele Abioye disclosed this while presenting the company’s “Facts Behind the Listing (FBL)” at a webinar organised by NGX.
Abioye noted that the new rice and pasta plants will be completed this year to add to the already existing three businesses of the company– sugar, flour and pasta.
In his words, “BUA Foods Plc was birthed in 2021, and this was an outcome of a planned restructuring process of all our food business entities.
“Today, we are here to follow up on this listing of this enlarged entity which became listed on the Nigerian Exchange on the 5th of January, 2022.
“Three of our five business divisions, namely sugar, flour and pasta, are currently and fully operational and are contributing to our current revenue stream.
“While our rice division will begin operation before the end of the year, we are working to also recommence our edible oil operation in the mid to long-term frame.”
Abioye further mentioned that the two subsidiaries of the company are growth engines strategically put in place for long-term economic value creation adding that the sugar refinery opens a market expansion opportunity into the West African and African market.
He averred that the company’s current market leadership makes it protected in the marketplace with its ongoing expansions.
Abioye hinted that its relationship with its host communities and supply network will not be soiled as it embarks on expansion.
“We will also continue to drive our supply chain integration, again, through the backward integration programme,” he added.
Also speaking, the chief financial officer, BUA Foods Plc, Abdul Rasheed Olayiwola hinted that the company’s revenue growth is impressive.
Comparing the income in 2020 and November, 2021, Olayiwola said “Bua Foods has experienced significant revenue growth.
“We recorded a 58% growth in revenue for the 11 months, ending November 2021. Sugar remains the highest contributor to our revenue, contributing a total of 63% of our total revenue.
“The reason for this significant growth in our revenue is not far-fetched. It is simply due to our market acceptability.”
The chief financial officer stated that BUA Foods gross profit grew from N64.9 billion in 2020 to N96.2billion in 2021 and the pre-tax profit (PBT) rose from N49.6 billion in 2020 to N78.8 billion in November, 2021.
He pointed that despite the rise in BUA Foods production cost, it obtained a 29.5% profit margin.
“The company will become more diversified as its rice and edible oil become operational within the year and in the short-term period,” Olayiwola explained.
C & I Leasing Appoints Ugoji Lenin Ugoji as Group Managing Director/CEO
C & I Leasing Plc has appointed Mr. Ugoji Lenin Ugoji as the Group Managing Director and Chief Executive Officer following the retirement of Mr. Andrew Otike-Odibi on 31 of December 2021.
The company disclosed in a statement signed by Mbanugo Udenze & Co Company Secretary and seen by Investors King. Ugoji, the company’s chief operating officer, is now the Managing Director/CEO, effective 1 January 2022.
Ugoji Lenin Ugoji Profile
Ugoji holds a Bachelors’ Degree in Estate Management from the University of Lagos, and an MBA in Banking & Finance from the ESUT Business School, Enugu. He is also a Chartered Pension professional, and an associate of the Certified Pension Institute of Nigeria.
Ugoji joins C & I Leasing with over 20 years experience in Commercial/Investment Banking, Leasing and Asset Management.
His last assignment was with The Mellanby Trust Company, a Commodity focused Asset Management Company registered with the Securities & Exchange Commission (SEC), where he was a founding Director and the Chief Investment Officer responsible for directing the company’s Investment Portfolio structure for purposes of its corporate and individual clients.
Ugoji’s extensive experience in the Leasing Industry commenced in 2005 as a Pioneer member of the Aquila Capital Group where he served as the pioneer Group Head Treasury & Wealth Management. He was responsible for creating the Group’s, Equipment Leasing focused Funding and Investment structure, which was targeted at attracting Capital from Private Equity, Foreign Development Financial Institutions and Local sources.
From 2010 to 2015, he served as the pioneer Managing Director for ‘Aquila Asset Management Ltd’, a Management Buy-Out firm from the Aquila Group. Prior to his time at the Aquila Group, Ugoji worked at Continental Trust Bank (now UBA) and NAL Bank Plc (now Sterling Bank) in the Treasury, International Operations and Domestic operations groups respectively.
Ugoji is happily married with children. He is passionate about ideas creation, investment and deal structuring, and enjoys volunteering for laudable causes. When not at work or volunteering, he enjoys spending time with his family, reading, music and photography.
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