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Badagry Deep Seaport Threatened as Host Communities Demand Equity Participation

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Seaport
  • Badagry Deep Seaport Threatened as Host Communities Demand Equity Participation

There are indications that the proposed Badagry deep seaport project may be stalled following what the host communities described as neglect by the federal, state governments and APM Terminal, the majority shareholder in the proposed project.

In an interview with journalists, the Mobee of Badagry Kingdom, High Chief Menu Toyon, who is also the spokesman of the communities, expressed worry that APM Terminal and other stakeholders have not taken step to address the concerns raised by the host communities regarding their equity participation.

Toyon said: “Some peoples’ properties are going to be used, some people will be relocated; but I will tell you that when you light a candle and put a paper on top of it, there is bound to be fire. Let the APM Terminal come and meet with the stakeholders and talk to us.’’

He noted: ’’Though we held a meeting about two years ago, we have not heard from them since then. The state government will be having 20 per cent, federal government will be having 20 per cent and APM terminal will be having 60 per cent, which is 100 per cent, what percentage are they giving to the stakeholders, I mean owners of the land?

“My grandfather was among the first farmers at the Gberefu beach land in the 1880s and till now, we the stakeholders have nothing to show that things are coming to Badagry. Good, It has been approved by the federal government, Lagos state welcomed it, oil exploration is going on with crude being taken but the stakeholders in the oil exploration area don’t have anything to show for it, we are in the dark.”

He said: “For now, there is no disagreement between the federal or state government and the stakeholders, but what we are expecting now since the inauguration has been done in Denmark by Ambode where he appointed Ernest Shonekan, the former interim president and chairman of the APM terminal is for parties to reach a compromise on the issues at stake.

“In 1873, arbitrators were appointed on this axis, I have the document and everything is with me. Now before starting anything, there must be peace accord, amiable settlement between the stakeholders and APM Terminal. We welcome the idea in a very good direction but at the same time, we are in fear that what happened in Niger Delta does not to happen in Badagry.”

On the impact of the host communities opposition to the establishment of the seaport, he stated: “I said it earlier that it is a welcome idea, Badagry has been suffering for ages and this time that they brought deep seaport which I will tell you almost 90 per cent of Badagry people don’t know what it means until last week when they held a conference at ASCON to enlighten our youths about what we are going to experience.

“Now, it is going to bring influx of people, it is going to provide employment opportunities for our children even the yet unborn children but all the same, the stakeholders must be carried along, this is what I am emphasizing on, we should be carried along, that is my submission.”

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.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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