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Kachikwu Continues Oil Investment Overtures, Woos ExxonMobil on Local Refining

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  • Kachikwu Continues Oil Investment Overtures, Woos ExxonMobil on Local Refining

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has continued his drive to have International Oil Companies (IOCs) operating in Nigeria deepen their investments in the country with a visit to United States oil firm, ExxonMobil.

The minister according to a statement from the ministry yesterday in Abuja, met with top executives of ExxonMobil at its headquarters in Irving Texas, where he requested that they consider investing in refining of petroleum products in Nigeria.

Kachikwu, said ExxonMobil has had an enduring partnership with Nigeria, and should deepen its commitment to develop the country’s oil and gas industry, especially in domestic refining of petroleum products.

He reiterated the commitment of the federal government to reduce importation of refined petroleum products into the country, adding that this would be improved on if major IOCs operating in Nigeria invest in building signature refineries to be run on joint venture basis with the government.

According to him, the government would also provide the necessary incentives to accomplish this.

While reiterating the gains that have been made in the sector through the signing of the repayment agreement for the Joint Venture (JV) cash call in 2016, Kachikwu further clarified that the initial payments to the IOCs would be made by the end of April 2017.

He noted that it would be expedient the IOCs reciprocate the government’s gesture and commitment to paying off the cash call debts by ensuring that they ramp up investments in the country’s oil sector.

Kachikwu, equally encouraged ExxonMobil to invest in more practical deliveries in human capital development and local skills sets required in the oil sector.

The statement noted that ExxonMobil in response, recognised the valued partnership it has with Nigeria, as well as Kachikwu’s efforts to further develop the oil sector.

ExxonMobil also reiterated its commitment to help deliver power to Nigeria and support the country’s gas commercialisation programme.

According to the ministry, the meeting is part of Kachikwu’s ongoing investment drive to get IOCs further commit to developing Nigeria’s oil sector. The first of such was with Italian oil firm, Eni in January 2017, where Eni pledged to work with Nigeria to revamp the Port Harcourt Refinery.

It explained that the minister would also visit Shell, Chevron and Total, and then lead Nigeria’s delegation to the upcoming Offshore Technology Conference (OTC) in Houston, with the intention of persuading more investors to invest in Nigeria’s oil industry.

Also, some media had recently reported that Kachikwu would be at the May OTC to showcase Nigeria’s soon-to-be launched marginal oil fields bid rounds.

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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