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Modular Refineries: Youths to Form Consortia of 1000 Barrels

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  • 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.

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

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

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The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

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Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

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Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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