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Nigeria May Lose Fuel Market to Ghana, says DPR

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petrol
  • Nigeria May Lose Fuel Market to Ghana

Nigeria risks losing its fuel market in West Africa to Ghana, if it does not revive its four refineries and build new ones, Department of Petroleum Resources (DPR) Director Mordecai Danteni Ladan has said.

At the Worldstage Economic Summit in Lagos, he said it was high time Nigeria refurbished its refineries and built more to reduce imports.

Ladan represented by DPR’s Manager for Planning Kanmi Ayodeji, said Nigeria might lose a segment of the oil market following Ghana’s decision to build refineries and export petroleum products to Niger, Burkina Faso and Mali, among others in the subregion.

He lamented that Nigeria was losing in West Africa, and also not making money from crude oil sales in South and North America.

Delivering a paper entitled: ‘’Achieving oil and gas reforms to boost indigenous participation, energy security,’’ Ladan said the country would make $500 on a barrel of crude if it stopped crude export and focused on refining and selling crude oil derivatives, such as diesel, kerosene, petrol, rubber and other petrochemical products.

This, he said, would help Nigeria to refine enough fuel for local consumption and for export to other countries in the sub-region.

Ladan said: “Ghana will soon control the fuel market in West Africa if it continues exportation of fuel to countries in the sub-region. Ghana is deepening activities in the downstream sub-sector of its petroleum industry, and by extension West Africa, by refining and exporting fuel to neighbouring countries.

“This means that the more fuel that is produced by Ghana, the more it exports the product and the more it dominates that segment of the oil industry in West Africa.”

He described the development as a wake-up call for Nigeria to develop its refineries and build more.

He noted that the Eleme Petrochemical Company in Port Harcourt, the Rivers State capital, returned to productivity months after it was sold to private investors.

Refineries, he said, hold prospects for Nigeria because of its huge population, stressing that the Federal Government would realise more money from petroleum by-products.

The DPR boss said the plastic, pharmaceutical, tyre, transportation industries and others would receive a boost when refineries work optimally.

Ghana last month began fuel export from its Bolgatanga Petroleum Depot in Accra to Niger and Mali.

Its Petroleum Minister, Emmanuel Armah-Kofi Buah, said at a forum in Lagos, that Ghana has another depot in Tema, which supplies products to Benin, Cameroun, Ivory Coast and others, adding that the country planned to export to Liberia.

He said, barring any hitches, Ghana would dominate the fuel segment in the sub-region.

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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