Two months after force majeure was declared on exports of Qua Iboe, the nation’s largest crude oil stream, ExxonMobil is offering a cargo of the grade to be loaded next month.
This is coming as the first offer since Mobil Producing Nigeria, a subsidiary of ExxonMobil, declared force majeure on the grade in July, sources told Reuters on Tuesday.
Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.
ExxonMobil declared force majeure on the grade in mid-July after a leak on the pipeline that feeds the oil to the export terminal.
Militant group, the Niger Delta Avengers, had said in July that it blew up the oil giant’s 48-inch crude export pipeline in Akwa Ibom State that feeds the Qua Iboe Terminal, which has capacity to export more than 300,000 barrels per day.
It was not immediately clear if the pipeline was already repaired, or if the company simply expected it to be back online in time to load the oil in October.
The cargo is offered for October 8-16 loading at a premium of $1.80 per barrel to dated Brent, sources said.
A spokesman for ExxonMobil said the force majeure remained in effect but did not give a time frame for the resumption of regular oil flows.
The Manager, Media and Communications, Mobil Producing Nigeria Unlimited, Mr. Oge Udeagha, had in July told our correspondent that the force majeure was declared due to a system anomaly observed during a routine check of the firm’s loading facility on July 14, 2016.
“We are working to ensure loading activities at the facility return to normal. The Qua Iboe Terminal is operating and production activities continue,” he had said.
Nigeria has struggled to maintain its crude oil production following a spate of militant attacks and technical problems that in May pushed production briefly to 30-year lows.
The country may be through the worst of the disruptions from militant attacks and other incidents that affected almost half its oil production last month, according to Bloomberg.
The volume of crude supplies subject to force majeure is diminishing after reaching almost 900,000 barrels per day last month.
Royal Dutch Shell Plc lifted the force majeure on Bonny Light crude last week and the Forcados grade, which had been offline since February, is expected to follow by the middle of the month.
Global oil benchmark, Brent, fell by three per cent or $1.07 on Tuesday to $47.25 per barrel after both the world’s consumers and producers revised forecasts that signalled the global crude glut persisting for much longer than previously expected.
The International Energy Agency, which advises oil-consuming countries on their energy policies, said a sharp slowdown in oil demand growth, coupled with ballooning inventories and rising supply, meant that the market would be oversupplied at least through the first half of 2017.
Nigeria Receives £4.2 Million Looted By James Ibori
The government of the United Kingdom has repatriated the sum of £4.2million that was looted by associates and family members of the convicted former governor of Delta State, James Ibori.
The Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN, on Tuesday confirmed the receipt of the looted fund in a statement he made available to newsmen in Abuja.
In the statement signed by Malami Special Assistant on Media and Public Relations, Dr. Umar Gwandu, the Minister of Justice disclosed that the naira equivalent of the amount was credited into the designated Federal Government account on May 10, 2021.
The AGF had earlier signed a Memorandum of Understanding for the repatriation of the loot fund on behalf of the Federal Government of Nigeria.
According to him, “the development was a demonstration of the recognition of reputation Nigeria earns through records of management of recovered stolen Nigerian stolen in the execution of public oriented projects”.
AfDB, European Bank To Bridge $2.5tn Africa’s Financing Gap
The African Development Bank Group and the European Bank for Reconstruction and Development signed a Memorandum of Understanding on Monday to promote sustainable private sector development in Africa.
In a statement issued by its Communication and External Relations Department, the AfDB said, “The MoU will help catalyse new sources of financing to help bridge the $2.5tn annual financing gap for development in Africa.
“This gap requires that development finance institutions work in partnership.”
The bank stated that under this partnership, the AfDB and the EBRD would capitalise on their respective
expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development.
“They will also work on improving business environments, bolstering the real economy and mobilising private sector investment,” the AfDB stated.
It observed that COVID-19 was threatening progress made towards the United Nations Sustainable Development Goals and was exacerbating the debt vulnerability of many African countries.
The bank stated that sustainable private sector development would be key to recovery and prosperity across the continent.
AfDB’s President, Akinwumi Adesina, after signing the memorandum with his counterpart, EBRD President,
Odile Renaud-Basso, was quoted as saying, “The new partnership agreement between our two institutions will pave the way for us to do more together, especially in supporting the growth of Africa’s private sector.
“The impact of COVID-19 on government resources is huge and we need to mobilise more private resources to help African countries build back stronger.”
On his part, Renaud-Basso, said, “The COVID-19 crisis has made the need for better and ever closer collective action even more urgent.
“Collaboration between the EBRD and the African Development Bank has grown from strength to strength over the years in the region.”
Despite Rising Debt Profile, President Buhari Seeks New N2.342T External Loan
President Muhammadu Buhari, on Tuesday, urged the Senate to approve a new external loan of N2,343,387,942,848.00, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.
Senate President Ahmad Lawan read Buhari’s letter of request on the floor of the Senate at plenary.
Last Month, Investorsking recalled that there was a controversy when Edo State Governor, Godwin Obaseki had raised concerns over the financial trouble Nigeria might find herself due to the continuous rising debt profile.
In a recent report carried out by PWC, it was reported that:
“Actual debt servicing cost in 2020 stood at N3.27 trillion and represented about 10 percent over the budgeted amount of N2.95 trillion. This puts the debt-to-revenue ratio at approximately 83 percent, nearly double the 46 percent that was budgeted.
“This implies that about N83 out of every N100 the FG earned was used to settle interest payments for outstanding domestic and foreign debts within the reference period. In 2021, the FG plans to spend N3.32 trillion to service its outstanding debt. This is slightly higher than the N2.95 trillion budgeted in 2020”.
According to DMO Nigeria’s total public debt as at December 31, 2020, was N32.915 Trillion.
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