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Modular Refineries: Youths to Form Consortia of 1000 Barrels

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modular refineries
  • Modular Refineries: Youths to Form Consortia of 1000 Barrels

The group managing director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru has thrown some light on the modular refineries the Federal Government is planning for the Niger Delta.

Maikanti at the 53rd International Conference and Exhibition of the Nigerian Mining and Geosciences Society(NMGS) in Abuja said the government would organise the youths now engaged in illegal refining of crude into consortia.

Each consortium will refine 1000 barrels of crude daily.

Dr Baru also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region.

He argued that getting the youth to form consortia to set up 1000 barrels per day modular refineries would get them off criminality and create jobs.

He said the reform programme being executed by the NNPC is geared towards transforming it from an oil and gas company into an integrated energy outfit with interest in power generation and transmission.

In a paper entitled, “Challenges and Prospects for the Diversification of the Upstream, Downstream and Frontier Basin Exploration in the Oil and Gas Sector”, Dr Baru said NNPC had identified opportunities in the power sector and was ready to take advantage of them to transform from being a gas supplier to the power sector, into a major player, in the sector.

He said the Corporation was already working on a project to generate four Megawatts (4000MW) of electricity while also exploring the possibility of investing in the transmission segment of the power sector.

The GMD explained that the Corporation’s decision to diversify into the power sector was hinged on the need to bridge the huge energy gap in the Nigerian market.

He said contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was inadequate transmission capacity, adding that there was enough gas to generate eight gigawatts (8GW) of electricity but the transmission grid could not support such volume of power without complications.

In the upstream, he said his goal was to accelerate frontier exploration and grow crude oil reserve to 40 billion barrels from the current 37 billion.

He also challenged the geoscientists on the need to deploy more sophisticated technology and drill deeper than the current 13,000 to 15,000 feet in the Niger Delta to produce more oil.

“We have to look deeper with intensive 3D and 4D seismic surveys over the so-called matured Niger Delta. The older, the better”, he declared.

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 Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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