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NNPC Vows to Fully Recover $103m, N11bn from Ontario, Aiteo and Televaras

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NNPC Nigeria
  • NNPC Vows to Fully Recover $103m, N11bn from Ontario, Aiteo and Televaras

The Nigerian National Petroleum Corporation, NNPC, has vowed to achieve full recovery of the outstanding crude swap under-deliveries from three companies, Aiteo Energy Resources, Televaras Group of Companies and Ontario Oil and Gas Limited.

Addressing newsmen in Abuja, Group Managing Director of the NNPC, Mr. Maikanti Baru, said so far, the Corporation has recovered $208 million from Aiteo and Televaras.

Baru, who was represented by Mr. Saidu Mohammed, Chief Operating Officer, Gas and Power, NNPC, said the Corporation is currently working hard to recover $103 million from Ontario.

Baru further stated that the NNPC has taken far-reaching? measures to recover N14 billion, being 130 million litres of missing Premium Motor Spirit, PMS, stored in the facilities of some depot owners.

Serious Threat to Economy

According to Baru, one of these operators has fully complied by returning the expropriated volumes of oil products, adding that it is working with security agencies to recover about N11 billion from the second operator.

He also appealed to vandals to desist from the destruction of its facilities, stating that the act poses serious threat to economy of the country, among others.

He stated: “On security challenges, we are setting up an all-advisory security council involving critical stakeholders which include security agencies, Niger Delta youths and leaders, international oil companies, among others, to complement the Federal Government’s efforts towards addressing host communities agitations as well as ensuring lasting peace in the region.

“For the umpteenth time, we want to passionately appeal to those behind indiscriminate acts of infrastructure vandalism to put an end forthwith to these despicable acts which are a great threat to the economy, eco-system and energy security.

Baru commended the media for its role in combating crude oil theft and vandalisation, while he called for further support from the media in its quest to work with relevant stakeholders towards safeguarding the nation’s oil and gas facilities.

Meanwhile, in another development, the NNPC said it is diversifying into the health sector and plans to commercialise its 52 clinics and hospitals spread across the country.

According to a statement by the NNPC in Abuja, this diversification initiative is part of its strategy to stay afloat as a commercially viable entity.

To drive this initiative, the statement noted that the Group Managing Director of the Corporation, Mr. Maikanti Baru, inaugurated the Boards of the NNPC Medical Services Limited, NMSL and the NNPC Health Maintenance Organisation (HMO) Limited.

The NNPC stated that following its recent restructuring, its Group Medical Services was realigned as a new venture non-core business entity, charged with the responsibility of creating new medical businesses that will generate revenue for the Corporation.

It explained that as at today, the NNPC Medical Services Division boasts of 52 clinics and hospitals spread across the Corporation’s various locations across the country, providing services to staff and their family members.

Speaking at the inauguration ceremony, Baru said the aim of the NNPC now, was to open up these medical facilities to other oil and gas organisations as well as other interested third party consumers for profitability.

He said, “My vision is to make NNPC a renowned Health Medical Services (HMS) provider globally.

In the nearby future, we are committed to making our medical facilities a reference point for the provision of world-class health medical services in Africa and beyond.”

Baru charged the Board members to provide the necessary direction to medical service delivery in NNPC in line with global best standards.

“It is going to be a new terrain for all of you. You must take advantage of the latest and most efficient technological advancement in healthcare service delivery,” he told the Board members.

While urging the two boards to carve a niche for the NNPC Medical Services as a specialized medical service provider such as “Burns and Trauma Centre”, he also called on them to collaborate with the best partners as it is very critical towards service delivery.

He further charged the two boards to work with synergy, without compromising their respective independence, stressing that their job comes with a lot of responsibility and they must prove themselves on this critical assignment.

Also speaking, the Chief Operating Officer, NNPC Ventures, who is also the Board Chairman of the two organisations, Mr. Babatunde Adeniran, said that with this development, the NNPC was taking advantage of the new opportunities in the nation’s health sector.

“With this development, the existing NNPC Hospitals will compete for clients with other top class hospitals in locations where they operate hence quality of service would be improved,” Adeniran stated.

Aside Dr. Adeniran who chairs the Boards of the NNPC Medical Services and the NNPC Health Maintenance Organisation, there are also seven members for each of the boards, which are expected to commence work immediately.

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.

Markets

SEC To Ban Unregistered CMOs From Operating By Month End

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The Securities and Exchange Commission (SEC) says it will stop operations of Capital Market Operators (CMOs) that are yet to renew their registration on May 31, 2021.

This was contained in a circular signed by the management of SEC in Abuja on Monday.

On March 23, SEC had informed the general public and CMOs on the reintroduction of the periodic renewal of registration by operators.

The commission noted that the reintroduction of the registration renewal was due to the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.

“To provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public, to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission,” SEC explained.

According to the circular, the commission said CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.

It explained that CMOs were required to have completed the renewal process on or before April 30, however, the commission said late filing for renewal of registration would only be entertained from May 1 to May 31.

SEC also said that asides from barring the CMOs who failed to comply accordingly, their names would be published on its website and national dailies.

It added that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.

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Crude Oil

A Threat to Revenue As Nigeria’s Largest Importer of Crude, India slash Imports By $39.5B

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Crude oil

Nigeria’s revenue earning capacity has come under threat following the reduction of importation of crude oil by India.

India, Nigeria’s largest crude oil importer, reduced crude oil imports by $39.5bn in April, compared to the same time the previous year, data from India’s Petroleum Planning & Analysis Cell showed.

According to the Indian High Commission in Nigeria, India’s crude oil imports from Nigeria in 2020 amounted to $10.03bn.

This represented 17 percent of Nigeria’s total crude exports for the year according to the Nigerian National Petroleum Corporation, as quoted by OilPrice.com.

As Nigeria’s largest importer of crude oil, lockdowns in India’s major cities from the COVID-19 surge in April had ripple effects on Nigeria’s oil sales.

The NNPC was prompted to drop the official standard price of its main export streams, Bonny Light, Brass River, Erha, and Qua Iboe, by 61-62 cents per barrel below its April 2021 prices. They traded at $0.9, $0.8, $0.65, $0.97 per barrel respectively, below dated Brent, the international benchmark, as Oilprice.com showed.

India had been buying the not-too-light and not-too-heavy Nigerian crudes that suited its refiners.

Reuters reported that the Indian Oil Corporation’s owned refineries were operating at 95 percent capacity in April, down from 100 percent at the same time the previous month.

An official at the IOC was quoted as saying, “If cases continue to rise and curbs are intensified, we may see cuts in refinery runs and lower demand after a month.” Hundreds of seafarers risked being stuck at sea beyond the expiry of their contracts, a large independent crude ship owner reportedly told Bloomberg.

India reportedly bought more American and Canadian oil at the expense of Africa and the Middle East, reducing purchases from members of the Organisation of the Petroleum Exporting Countries to around 2.86 million barrels per day.

This squeezed the group’s share of imports to 72 percent from around 80 percent previously, as India’s refiners were diversifying purchases to boost margins, according to Reuters.

India also plans to increase local crude oil production and reduce import expenses as its population swells, according to Bloomberg.

A deregulation plan by the Narendra Modi-led government to boost national production to 40 million tonnes of crude oil by 2023/2024, an increase of almost eight million tonnes, had already been initiated.

According to Business Today, an Indian paper, the country currently imports 82 percent of its oil needs, which amounted to $87bn in 2019.

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Energy

Invest Africa and DLA Piper Partner to Support ESG Best Practice in African Renewable Energy Projects

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Invest Africa - Investors King

The global law firm, DLA Piper, has partnered with Invest Africa, the leading trade and investment platform for African markets, to support the development of ESG best practice in African renewable energy projects.

Clear Environmental, Social and Governance (ESG) targets and measurements have become an increasingly important part of fundraising as investors seek to align their portfolios with sustainable growth. For a continent boasting ample natural resources, this presents a significant opportunity for Africa’s green energy sector. However, renewable does not always equal sustainable and developing and articulating ESG metrics can pose a significant challenge to projects as they prepare investment rounds.

The project will assemble experts from the worlds of impact investment, development finance and law. Across a series of online meetings, participants will discuss strategies to improve ESG practices in African renewable projects from both a fundraising and operational perspective.

Amongst those speaking in the inaugural session on Thursday 13th May are Cathy Oxby, Chief Commercial Officer, Africa GreencoDr. Valeria Biurrun-Zaumm, Senior Investment Manager, DEGOrli Arav, Managing Director – Facility For Energy Inclusion (FEI) – Lion’s Head Global PartnersBeatrice Nyabira, Partner, DLA Piper Africa, Kenya (IKM Advocates) and Natasha Luther-Jones, Partner, Global Co-Chair of Energy and Natural Resources, International Co-Head, Sustainability and ESG, DLA Piper.

Veronica Bolton-Smith, COO of Invest Africa said, “Africa is particularly vulnerable to the impact of climate change despite contributing very little to global emissions. As the price of renewables fall, they will form an ever more important part of Africa’s electrification. In this context, it is essential that projects be given the tools to apply best practice in ESG not only from an environmental perspective but also in terms of good governance, fair working conditions and contribution to social inclusion. I look forward to working closely with DLA Piper on this important topic.”

Natasha Luther-Jones, Global Co-Chair Energy and Natural Resources and International Co-Head Sustainability and ESG at DLA Piper also commented, “Climate change is one of the biggest challenges companies, and people, face today and when we look at its reduction – whether that be in how we power our devices, what we eat or how we dress, where we live or how we work – all roads come back to the need to increase the amount of accessible, and affordable, clean energy. However, renewable energy companies are not automatically sustainable as sustainability is a focus on all ESG factors, not just environmental. We know the need for renewable energy is only going to continue to rise, and therefore so will the number and size of renewable energy companies. The additional challenge is to make sure they are truly sustainable organisations and that’s what we’re excited about discussing during the webinar.”

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