Connect with us

Markets

Kachikwu Plans Roadshow in Houston to Woo Bidders for Marginal Oil Fields

Published

on

minister-of-petroleum-resources-emmanuel-ibe-kachikwu
  • Kachikwu Plans Roadshow in Houston to Woo Bidders for Marginal Oil Fields

The Minister of States for Petroleum Resources, Dr. Ibe Kachikwu, has disclosed that he would in the coming weeks attend the Offshore Technology Conference (OTC) in Houston, Texas, United States to woo potential bidders for Nigeria’s upcoming marginal oil field bid rounds.

Kachikwu stated this at a networking dinner held last Wednesday night at the the maiden Nigeria Oil and Gas Opportunity Fair (NOGOF) which was initiated and organised in Uyo, capital of Akwa Ibom State by the Nigerian Content Development and Monitoring Board (NCDMB) to showcase opportunities for advancing local content application in the country’s oil industry.

The minister explained that he would attend the OTC this year in Houston to market Nigeria’s marginal oil fields bid rounds to potential investors. He also noted that the rounds could be completed between 2018 and 2019.

The OTC is an annual oil industry showpiece where energy professionals usually meet in the first week of May to exchange ideas and opinions that could advance scientific and technical knowledge for offshore oil resources and environmental matters.

It is often regarded as the largest event in the world for the oil and gas industry featuring more than 2,300 exhibitors, and attendees representing 100 countries. The conference was founded in 1969.

While Kachikwu did not disclose the number and locations of the marginal oil fields that would be up for bid in the process which is expected to start with his planned Houston roadshow, it is however thought that the fields could be located within the onshore basins and continental shelf.

The government had initially stated that it would conduct a licensing round in 2017 for the allocation of marginal fields, to raise revenue for the country and also grow oil production to meet its production target of four million barrels per day and 40 billion oil reserves.

Also, the Department of Petroleum Resources (DPR) has stated that it would not be in a hurry to grant operational licences that would formalise the operations of illegal oil refineries in the Niger Delta until standard Environmental Impact Assessment (EIA) studies have been conducted on the illegal refineries and their locations.

Speaking yesterday at a technical session on opportunities and challenges in the Nigerian oil and gas industry at the NOGOF, the Assistant Director, Planning and Budget at the DPR, Mr. Wole Akinyosoye, said there were differences between modular refineries and illegal refineries, and that both must not be confused to mean the same thing.

Akinyosoye who represented the Director of DPR, Mordecai Ladan, at the conference, explained that the Department would require a comprehensive EIA from operators of the illegal refineries, after which it would undertake deep studies of them before deciding on operational licenses for them.

He noted that DPR had in the past issued multiple number of licences for modular refineries construction and had also requested for detailed EIA study of the locations of the refineries as provided for in the National Environmental Guidelines and Standards for the Petroleum Industries in Nigeria (EGASPIN).

Akinyesoye added that beyond the EIA report, there were other requirements needed to be fulfilled before licenses for such refinery construction would be granted.

The government had recently stated its intention to formalise the operations of all viable illegal refineries in the Niger Delta as part of its plan to end the menace of militancy and criminality in the region. This plan was subsequently backed by the Nigerian National Petroleum Corporation (NNPC) which stated that it would be an antidote to criminality and vandalism of oil facilities in the region.

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.

Continue Reading
Comments

Commodities

Cocoa Fever Sweeps Market: Prices Set to Break $15,000 per Ton Barrier

Published

on

Cocoa

The cocoa market is experiencing an unprecedented surge with prices poised to shatter the $15,000 per ton barrier.

The cocoa industry, already reeling from supply shortages and production declines in key regions, is now facing a frenzy of speculative trading and bullish forecasts.

At the recent World Cocoa Conference in Brussels, nine traders and analysts surveyed by Bloomberg expressed unanimous confidence in the continuation of the cocoa rally.

According to their predictions, New York futures could trade above $15,000 a ton before the year’s end, marking yet another milestone in the relentless ascent of cocoa prices.

The surge in cocoa prices has been fueled by a perfect storm of factors, including production declines in Ivory Coast and Ghana, the world’s largest cocoa producers.

Shortages of cocoa beans have left buyers scrambling for supplies and willing to pay exorbitant premiums, exacerbating the market tightness.

To cope with the supply crunch, Ivory Coast and Ghana have resorted to rolling over contracts totaling around 400,000 tons of cocoa, further exacerbating the scarcity.

Traders are increasingly turning to cocoa stocks held in exchanges in London and New York, despite concerns about their quality, as the shortage of high-quality beans intensifies.

Northon Coimbrao, director of sourcing at chocolatier Natra, noted that quality considerations have taken a backseat for most processors amid the supply crunch, leading them to accept cocoa from exchanges despite its perceived inferiority.

This shift in dynamics is expected to further deplete stocks and provide additional support to cocoa prices.

The cocoa rally has already seen prices surge by about 160% this year, nearing the $12,000 per ton mark in New York.

This meteoric rise has put significant pressure on traders and chocolate makers, who are grappling with rising margin calls and higher bean prices in the physical market.

Despite the challenges posed by soaring cocoa prices, stakeholders across the value chain have demonstrated a willingness to absorb the cost increases.

Jutta Urpilainen, European Commissioner for International Partnerships, noted that the market has been able to pass on price increases from chocolate makers to consumers, highlighting the resilience of the cocoa industry.

However, concerns linger about the eventual impact of the price surge on consumers, with some chocolate makers still covered for supplies.

According to Steve Wateridge, head of research at Tropical Research Services, the full effects of the price increase may take six months to a year to materialize, posing a potential future challenge for consumers.

As the cocoa market continues to navigate uncharted territory all eyes remain on the unfolding developments, with traders, analysts, and industry stakeholders bracing for further volatility and potential record-breaking price levels in the days ahead.

Continue Reading

Crude Oil

IOCs Stick to Dollar Dominance in Crude Oil Transactions with Modular Refineries

Published

on

Crude Oil - Investors King

International Oil Companies (IOCs) are standing firm on their stance regarding the currency denomination for crude oil transactions with modular refineries.

Despite earlier indications suggesting a potential shift towards naira payments, IOCs have asserted their preference for dollar dominance in these transactions.

The decision, communicated during a meeting involving indigenous modular refineries and crude oil producers, shows the complex dynamics shaping Nigeria’s energy landscape.

While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously hinted at the possibility of allowing indigenous refineries to purchase crude oil in either naira or dollars, IOCs have maintained a firm stance favoring the latter.

Under this framework, modular refineries would be required to pay 80% of the crude oil purchase amount in US dollars, with the remaining 20% to be settled in naira.

This arrangement, although subject to ongoing discussions, signals a significant departure from initial expectations of a more balanced currency allocation.

Representatives from the Crude Oil Refinery Owners Association of Nigeria (CORAN) said the decision was not unilaterally imposed but rather reached through deliberations with relevant stakeholders, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

While there were initial hopes of broader flexibility in currency options, the dominant position of IOCs has steered discussions towards a more dollar-centric model.

Despite reservations expressed by some participants, including modular refinery operators, the consensus appears to lean towards accommodating the preferences of major crude oil suppliers.

The development underscores the intricate negotiations and power dynamics shaping Nigeria’s energy sector, with implications for both domestic and international stakeholders.

As discussions continue, attention remains focused on how this decision will impact the operations and financial viability of modular refineries in Nigeria’s evolving oil landscape.

Continue Reading

Energy

Nigeria’s Dangote Refinery Overtakes European Giants in Capacity, Bloomberg Reports

Published

on

Aliko Dangote - Investors King

The Dangote Refinery has surpassed some of Europe’s largest refineries in terms of capacity, according to a recent report by Bloomberg.

The $20 billion Dangote refinery, located in Lagos, boasts a refining capacity of 650,000 barrels of petroleum products per day, positioning it as a formidable player in the global refining industry.

Bloomberg’s data highlighted that the Dangote refinery’s capacity exceeds that of Shell’s Pernis refinery in the Netherlands by over 246,000 barrels per day. Making Dangote’s facility a significant contender in the refining industry.

The report also underscored the scale of Dangote’s refinery compared to other prominent European refineries.

For instance, the TotalEnergies Antwerp refining facility in Belgium can refine 338,000 barrels per day, while the GOI Energy ISAB refinery in Italy was built with a refining capacity of 360,000 barrels per day.

Describing the Dangote refinery as a ‘game changer,’ Bloomberg emphasized its strategic advantage of leveraging cheaper U.S. oil imports for a substantial portion of its feedstock.

Analysts anticipate that the refinery’s operations will have a transformative impact on Nigeria’s fuel market and the broader region.

The refinery has already commenced shipping products in recent weeks while preparing to ramp up petrol output.

Analysts predict that Dangote’s refinery will influence Atlantic Basin gasoline markets and significantly alter the dynamics of the petroleum trade in West Africa.

Reuters recently reported that the Dangote refinery has the potential to disrupt the decades-long petrol trade from Europe to Africa, worth an estimated $17 billion annually.

With a configured capacity to produce up to 53 million liters of petrol per day, the refinery is poised to meet a significant portion of Nigeria’s fuel demand and reduce the country’s dependence on imported petroleum products.

Aliko Dangote, Africa’s richest man and the visionary behind the refinery, has demonstrated his commitment to revolutionizing Nigeria’s energy landscape. As the Dangote refinery continues to scale up its operations, it is poised to not only bolster Nigeria’s energy security but also emerge as a key player in the global refining industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending