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Oil Company Tasks SMEs on Succession Plan

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  • Oil Company Tasks SMEs on Succession Plan

Concerned by the high rate of collapse of small and medium scale businesses Nigeria, the management of Italian oil giant, Nigeria Agip Oil Company (NAOC), has resolved to focus on developing and building of capacities in the sectors as well as community content and sustainability.

Speaking on Tuesday, in Asaba, Delta State, at the 2016 Succession Planning Workshop for Small and Medium Scale Vendors, the Vice Chairman/Managing Director of the oil company, Massimo Insulla, explained that the initiative was designed to equip owners, partners, proprietors and management of small/medium sized enterprise with skills and best practices in planning for the continuity and sustainability of their businesses when the owner quits either by way of incapacitation or retirement or old age.

Insulla explained that the workshop aims at acquainting the participants with typical Nigerian SMEs continuity challenges, case studies of successful transition, pre requisites for succession planning, ownership versus management, insights into family business and managing the transition.

Besides pioneering the Independent Power Project (IPP) in Nigeria with the construction of a power plant at Okpai, Ndokwa East Local Council of Delta State and delivery of 480MW of power into the national grid to stimulate the economy and create jobs, he said that Agip is promoting other Nigerian content development and corporate social responsibilities initiatives.

The Italian said: “We are leaders in the areas of access to energy, water, health, education, social infrastructure (roads, markets, community centres etc), employment and human capacity building, skills acquisition, micro credits and access to food through our agricultural programme (Green River Project which started in 1987). We are proud to note that our footprints are quite visible in all our hosts’ communities in the states where we operate including Delta.”

Delta State Governor Ifeanyi Okowa explained that the workshop is a unique approach to corporate social responsibility with the potential of revolutionising the SMEs landscape in Nigeria.

According to Okowa, the subject of succession planning is one that is at the very core of the growth and survival of small and medium scale enterprises, regretting that Nigeria’s small and medium scale enterprises rarely outlive their founders because of the absence of
succession planning.

He said: “Succession plan is a process of identifying, selecting, training, equipping and preparing new leaders who will take over the running of the company when the owner/founder has quit the stage through retirement, incapacitation or death, The workshop is a strong affirmation of Agip’s passion and commitment to assist in developing the economy for the benefit of present and future generations of Nigerians.”

The governor lamented that it was cause for great concern that most small and medium scale businesses go under when their owners quit, a situation which exacerbate the high unemployment rate, noting that the situation should be reversed.

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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