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Delta Worried About Relocation of 26 Oil Firms

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  • Delta Worried About Relocation of 26 Oil Firms

The Delta State government has raised serious concern over the exit of 26 major oil companies following unabated hostilities and attack on their facilities by militants.

While the government also flayed the frequent communal crises in the state, especially in Ogbe-Ijoh/Aladja communities, Deputy Governor Kingsley Burutu Otuaro, who addressed political leaders on Tuesday in Asaba, stressed that the Asaba-based authorities were worried about the constant relocation of oil firms from Delta to other states.

Underlining the need for strong government policies and advocacy that will ensure the hostilities and increasing security challenges are addressed, he pledged that the Dr. Ifeanyi Okowa-led administration was working out modalities on how the oil companies would return to a peaceful and salubrious environment devoid of attacks and hostilities.

His words: “One of the cardinal points in Dr. Okowa’s SMART agenda is to create wealth and bring prosperity for all Deltans through those programmes. Our youths will be engaged and become relevant for peace to continue in the state and oil companies who moved out will return.”

Otuaro, who noted the increasing challenges, called on Deltans to join hands with the state government to subdue them.

Speaking with journalists yesterday, the Commissioner for Oil and Gas, Mr. Mofe Pirah, noted that government and appointed political office holders should see the need to discourage forms of development levy often described as “deve” by the youths in various communities to disturb investors/companies. He pointed out that it does not bring development to the state but scares investors.

Meanwhile, the speaker of the House of Assembly, Mr. Monday Igbuya, yesterday said Governor Okowa had given assent to 13 out of the 17 bills so far passed by it.

Speaking in Asaba at the resumption of plenary, Igbuya said they include Delta State Oil Producing Areas Development Commission Law, 2015, Delta State Contributory Health Commission Bill, 2015, Appropriation Law 2016, Delta State Economic Planning Council (Amendment) Law, 2015, Delta State Advisory Council on the Prerogative of Mercy Law, 2016, Delta State Security Trust Fund (Amendment) Law 2016 and Delta State Anti-Kidnapping Hostage Taking Law, 2016.

Others are Delta State Anti-Terrorism and Anti-Cultism Law, 2016, Delta State Scholarship Board Law, 2016, Delta State Structure for Signage and Advertisement Agency Law, 2015, Delta State Public Procurement Commission Agency Law, 2015, Delta State Traditional Rulers and Chiefs (Amendment) Law, 2016 and Delta State Schools of Nursing and Midwifery Law, 2016.

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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