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Embattled Managers of 1004 Promise to Restore Services

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  • Embattled Managers of 1004 Promise to Restore Services

Most homeowners in 1004 Estate, Lagos are wondering how the facilities in the estate deteriorated so fast after some residents forcefully took over the management of facilities there from 1004 Estates Limited.

1004 Estate was sold by the Federal Government to a private concern during the regime of President Olusegun Obasanjo. The Estate took a whole new look after it was rehabilitated by the private enterprise.

In contrast to its sweet atmosphere fresh from rehabilitation, the Estate is a hot bed of management crises and failing infrastructure.

Some residents and owners plotted the takeover, complaining that the company did not render an account to them, that they were slammed with huge bills for services and were not given an opportunity to discuss the items on it or negotiate a best price for them.

Regrettably, some homeowners and residents are complaining that a worse scenario was playing out in the estate, which led to the dissolution of their executive committee and the appointment of a caretaker committee. The committee is now being accused of all sorts of misdemeanor, including inability to provide treated water, steady electricity, and security. The residents also complained that the committee does not give them reports, neither do they discuss with them before increasing charges.

Among the many features of the Estate’s deterioration are alleged increase in electricity theft of which an unemployed foreign resident, who was said to have recently evaded arrest, is being accused; establishment of a parallel Association by a cell of radicals and protesters; a law suit by the power company whose contract was said to have been terminated in an opaque and questionable manner.

Some are proposing that they renegotiate with 1004 Estates Limited so that their lives and facilities can be restored to normal.

The storm in 1004 Estate has become a source of worry to many residents that their once endearing residential area would become too disreputable to attract the services of credible service-providers.

Meanwhile, the management of 1004 Estates Limited has promised to restore facilities in the estate to their original state, as soon as the residents and owners come to some form of agreement with them.

They reminded the residents of a 40-page service charge report and budgets emailed to them annually over the past four years and which are also available on the company’s website.

A statement by the management of 1004 Estates Ltd said in a statement yesterday that it “wishes to convey to its residents and stakeholders that the present situation of no water and poor unstable electrical supply on the estate due to the present mismanagement by 1004 HORA is nearing its end.

“This group of persons who forcibly invaded the estate on 5th December 2015 has exposed residents to severe distress of persistent service failures whilst collecting service payments and having no interest in delivering any services.

“Only two of the 12 indicted leaders that procured the illegal policemen for the forcible invasion of this group after investigations by the police have now been arraigned before a Lagos court for the criminal offence of forcible entry.”

The statement said ten other persons (names withheld) “have not deemed it fit to appear in court to answer to these charges whilst still in illegal continued occupation of the facilities and equipment of 1004 Estates Ltd.

“These indicted persons and their agents and appointees are presently evading arrest and efforts by the police to effect their arrest yesterday were disrupted by those who are thus preventing our required access to repair these destroyed assets in our water and power plants in the estate.

“The selfish actions of a few fellow residents now keep the majority of our residents in a state of perpetual distress without water and electricity or security and have led to several complaints that 1004 Estates Ltd honours our contractual obligations to provide services in the estate.

“We expect to immediately replace once we are able to gain access to the damaged water treatment plant (which functioned under our management) and the damaged two of our five 200kva generators to immediately ameliorate the sufferings. We assure our residents that the asset replacement funds dedicated to effect this restoration are intact.

“The personal motives and obvious financial compromises responsible for the sufferings being meted out to our residents despite the service payments made will be reasonably reconciled when our normally efficient services are resumed soon.”

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

Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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