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MRS to Save Nigeria $120m Annually from Jetty Expansion

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MRS Oil Nigeria Plc
  • MRS to Save Nigeria $120m Annually from Jetty Expansion

Foremost downstream oil company, MRS Oil Nigeria Plc, on Thursday announced a record-breaking milestone by the company, with the berthing of a vessel with a deadweight of 75,000mt at its terminal at the Tin Can Island Port, Apapa, Lagos, adding that it was the first of its kind in any African port and could save Nigeria $120 million annually.

MRS was able to accomplish the landmark through the expansion of its jetty at its terminal in Lagos.

The upgraded terminal catapulted it into the international shipping arena for 80,000mt-120,000mt vessels’ calling ports within Africa.

A statement by the company on Thursday added that MRS also hosted the United States Ambassador to Nigeria, W. Stuart Symington, who paid a working visit on Wednesday to the MRS depot/jetty located in the heart of the Tin Can Island Port.

According to the company, the ambassador was received by the Chairman of MRS, Alhaji Sayyu Dantata, who took him and his team on a tour of the sprawling facility that is currently undergoing massive expansion and upgrade.

In his remarks after touring the multilayered facility, Symington praised the management for its huge investment and workforce of about 2,000 direct employees and half a million indirect workers.

“I am impressed with the quality of workforce and level of technology deployed in running this facility,” Symington said.

He also praised the company for its vision, African spread and national presence.

He commended MRS for its diverse workforce that has seen to the massive growth of the company in record time, and further congratulated it for its partnership with global companies, with particular emphasis on U.S. companies, expressing confidence in the mutually beneficial business relationship.

In his remarks, Dantata expressed his pleasant surprise that the U.S. ambassador took time out of his busy schedule to pay a visit to his terminal.

“We have been working quietly to rehabilitate and expand the jetty since the unfortunate barge explosion we had in 2013.

“We made a deliberate decision to rebuild our jetty to meet international standards.

“Over the years, we have diligently put in all our time and overcame numerous challenges to get to this point.

“I am grateful that the ambassador found the time to appreciate us,” Dantata said.

On the expansion of its terminal, the MRS chairman informed his guest that a vessel, MT Lila Victoria, berthed at the company’s jetty last week with a deadweight of 75,000MT, the first of its kind in any African port.
“Our achievement here is that we have put Tin Can terminal in Nigeria into the international shipping arena for 80,000mt-120,000mt vessels’ calling ports within Africa.

“We are proud to announce this milestone achievement for this country.
“With our capability to berth vessels this size, we can conveniently save the country a minimum of about $2 million per voyage and this can be as much as $120 million per annum currently wasted due to ship-to-ship operations, shallow drafts and delays.

“Imagine what we are going to save this country especially in this time of foreign exchange challenges,” he said.

Dantata expressed his appreciation that a foreigner in the person of the U.S. ambassador came to visit and appreciate the enormity and significance of the MRS jetty to the Nigerian economy, pledging to increase the scope of his investments in the country.

“I am further encouraged by the honour done to us by this visit and will continue to invest diligently in the country because Nigeria has been good to me,” he added.

Dantata also thanked the former Managing Director of the Nigerian Ports Authority (NPA), Alhaji Habibu Abdullahi, who assisted his company with approvals and his successor, Ms. Hadiza Usman, who has continued to encourage MRS in upgrading and promoting the Tin Can Island Port into the global arena.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Dip Amidst Middle East Tensions, Market Reaction Limited

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Oil

Oil prices fell on Monday as market participants reevaluated their risk premiums in the wake of Iran’s weekend attack on Israel, which the Israeli government said caused limited damage.

Brent crude oil, against which Nigerian oil is priced,  dipped by 50 cents, or 0.5%, to $89.95 a barrel while West Texas Intermediate (WTI) oil fell by 52 cents, or 0.6%, to $85.14 a barrel.

The attack, involving over 300 missiles and drones, marked the first assault on Israel from another country in more than three decades. It heightened concerns over a potential broader regional conflict impacting oil traffic through the Middle East.

However, Israel’s Iron Dome defense system intercepted many of the missiles, and the attack resulted in only modest damage and no reported loss of life.

Warren Patterson, head of commodities strategy at ING, noted that the market had largely priced in the potential attack in the days leading up to it. The limited damage and the absence of casualties suggest that Israel’s response may be more measured, which could help stabilize the oil market.

Iran, a major oil producer within OPEC, currently produces over 3 million barrels per day (bpd) of crude oil. The potential risks include stricter enforcement of oil sanctions and the possibility of Israeli targeting of Iran’s energy infrastructure, according to ING.

Nevertheless, OPEC possesses over 5 million bpd of spare production capacity, which could help mitigate any supply disruptions.

Analysts from ANZ Research and Citi Research have suggested that further significant impact on oil prices would require a material disruption to supply, such as constraints on shipping in the Strait of Hormuz. So far, the Israel-Hamas conflict has not had a notable effect on oil supply.

The market remains watchful of Israel’s response to the attack, which could influence the future trajectory of oil prices and broader geopolitical tensions in the region.

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Nigeria’s Crude Oil Production Falls for Second Consecutive Month, OPEC Reports

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Crude Oil

Nigeria’s crude oil production declined for the second consecutive month in March, according to the latest report from the Organization of Petroleum Exporting Countries (OPEC).

Data obtained from OPEC’s Monthly Oil Market Report for April 2024 reveals that Nigeria’s crude oil production depreciated from 1.322 million barrels per day (mbpd) in February to 1.231 mbpd in March.

This decline underscores the challenges faced by Africa’s largest oil-producing nation in maintaining consistent output levels.

Despite efforts to stabilize production, Nigeria has struggled to curb the impact of oil theft and pipeline vandalism, which continue to plague the industry.

The theft and sabotage of oil infrastructure have resulted in significant disruptions, contributing to the decline in crude oil production observed in recent months.

The Nigerian National Petroleum Company Limited (NNPCL) recently disclosed alarming statistics regarding oil theft incidents in the country.

According to reports, the NNPCL recorded 155 oil theft incidents within a single week, these incidents included illegal pipeline connections, refinery operations, vessel infractions, and oil spills, among others.

The persistent menace of oil theft poses a considerable threat to Nigeria’s economy and its position as a key player in the global oil market.

The illicit activities not only lead to revenue losses for the government but also disrupt the operations of oil companies and undermine investor confidence in the sector.

In response to the escalating problem, the Nigerian government has intensified efforts to combat oil theft and vandalism.

However, addressing these challenges requires a multi-faceted approach, including enhanced security measures, regulatory reforms, and community engagement initiatives.

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Oil Prices Edge Higher Amidst Fear of Middle East Conflict

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Crude Oil

Amidst growing apprehensions of a potential conflict in the Middle East, oil prices have inched higher as investors anticipate a strike from Iran.

The specter of a showdown between Iran or its proxies and Israel has sent tremors across the oil market as traders brace for possible supply disruptions in the region.

Brent crude oil climbed above the $90 price level following a 1.1% gain on Wednesday while West Texas Intermediate (WTI) hovered near $86.

The anticipation of a strike, believed to be imminent by the United States and its allies, has cast a shadow over market sentiment. Such an escalation would follow Iran’s recent threat to retaliate against Israel for an attack on a diplomatic compound in Syria.

The trajectory of oil prices this year has been heavily influenced by geopolitical tensions and supply dynamics. Geopolitical unrest, coupled with ongoing OPEC+ supply cuts, has propelled oil prices nearly 18% higher since the beginning of the year.

However, this upward momentum is tempered by concerns such as swelling US crude stockpiles, now at their highest since July, and the impact of a hot US inflation print on Federal Reserve rate-cut expectations.

Despite the bullish sentiment prevailing among many of the world’s top traders and Wall Street banks, with some envisioning a return to $100 for the global benchmark, caution lingers.

Macquarie Group has cautioned that Brent could enter a bear market in the second half of the year if geopolitical events fail to materialize into actual supply disruptions.

“The current geopolitical environment continues to provide support to oil prices,” remarked Warren Patterson, head of commodities strategy for ING Groep NV in Singapore. However, he added, “further upside is limited without a fresh catalyst or further escalation in the Middle East.”

The rhetoric from Iran’s Supreme Leader, Ayatollah Ali Khamenei, reaffirming a vow to retaliate against Israel, has only heightened tensions in the region.

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