- FG Owes IOCs $1bn in JV Cash Call
The Federal Government has yet to pay oil companies a total of $1.07bn in cash call required for the development of joint venture assets for the first four months of the year.
The government failed to exit the JV cash call arrangement in January in line with an agreement it reached with the international oil companies in December.
The nation’s oil and gas production structure is split between JV (onshore and in shallow waters) with foreign and local companies, and Production Sharing Contracts in deep water offshore.
The Nigerian National Petroleum Corporation owns 55 per cent of the JVs with Shell, and 60 per cent of all the others, and the JVs are jointly funded by the private oil companies and the Federal Government through the corporation.
The latest monthly report of the NNPC showed that the corporation paid a total of $1.78bn from January to April this year, as against $2.85bn expected to be paid for the period.
It paid $171.1m in January; $168.2m in February; $267.1m in March; and $142.1m in April from its export proceeds.
The NNPC said a total of N163bn, an equivalent of $1.03bn at a budgeted exchange rate of N197/$, was transferred to the JVCC from domestic crude oil receipts from January to April.
The NNPC was expected to pay $712.46m to its joint venture partners monthly for the development of oil and gas assets, in line with the 2016 budget.
It said, “Total export crude oil and gas receipt for the period of April 2016 to April 2017 stood at $2.5bn. Out of which the sum of $2.29bn was transferred to the JV cash call in line with the 2016 approved budget pending the 2017 budget approval and the exit of JV cash call, and the balance of $0.21bn was paid to the Federation Account.
“However, this JVCC amount falls short of the 2016 appropriated amount of $8.64bn. This is due to the twin effect of production disruption in the Niger Delta and low crude oil prices during the year.”
The chronic JV funding shortfalls being experienced in the industry have resulted in declining JV oil production over the years.
But production from the PSC arrangement, where the NNPC does not provide the funding, has increased almost proportionately to the JV production decline over the same period.
The funding problem, which has lingered for over two decades, has been exacerbated by the steep fall in global oil prices, which have driven down the country’s earnings from the commodity, its major revenue earner.
Analysts at FBN Capital Limited said in a note on Friday, “Under an agreement with the oil majors, a haircut has been applied to the corporation’s arrears, a first repayment has been made, and the ventures are to become incorporated and self-financing.”
President Muhammadu Buhari, while presenting the 2017 budget estimates to a joint session of the National Assembly in December, disclosed that one major policy coming into effect from January this year would be to stop direct funding of the JV operations.
He stated that from January, the Federal Government would no longer make provision for the JV cash calls, adding, “Going forward, all joint venture operations shall be subjected to a new funding mechanism, which will allow for cost recovery.
“This new funding arrangement is expected to boost exploration and production activities, with the resultant net positive impact on government revenues, which can be allocated to infrastructure, agriculture, solid minerals and the manufacturing sectors.”
The government, in its Economic Recovery and Growth Plan, said it would reduce its stakes in joint venture oil assets, refineries and other downstream subsidiaries such as pipelines and depots.
Experts to Provide Insights on Tech & Digital Transformation at MSME Dialogue 3.0
The third edition of MSME Dialogue will take place on Saturday, April 24, 2021 at 10am (WAT). Experts at the virtual event will provide insights while discussing the theme: Powering MSMEs with Technology and Digital Transformation.
The event, which is organized by MSME Africa, is expected to have owners and managers of Micro, Small and Medium Enterprises, Entrepreneurs and Business owners from different sector in attendance.
MSME Dialogue which holds every quarter, seeks to address, burning and relevant issues about entrepreneurship and running a small business as well as proffering solutions to those issues.
The event aims to provide the right knowledge and know-how for MSMEs, Entrepreneurs, and Startups to enable them to grow and thrive and features subject matter experts, seasoned entrepreneurs, professionals, and players within the MSME Ecosystem.
The speakers expected at the event are: Akeem Lawal, Divisional CEO, Interswitch Group, Rex Mafiana: CEO, FPG Technologies, Fatma Nasujo, Global Head of Operational Excellence at Sokowatch, Kenya, David Lanre Messan, CEO, FirstFounders, Bisoye Coker, CEO/Co-founder, Kiakia FX. The session will be moderated by Solape Akinpelu: CEO/Founder, HerVest.
According to the convener of the event who is also the founder of MSME Africa, Seye Olurotimi “Every business owner who is serious with their business would agree with me that technology and digital transformation are important factors for business growth and success. We all can’t all run or won Tech startups but we can always drive our businesses and operations with Technology and Digital Tools”
“Tech-driven Businesses are making waves and turning in almost unbelievable results against all odds. Businesses who have embraced technology, automation and digital transformation are enjoying unquantifiable advantages. It is because of this that I am calling on business owners and managers to join us at the 3rd Edition of MSME Dialogue, on Saturday April 24, 2021 at 10am ( WAT), as we bring in experts to provide insights on this theme” Olurotimi added.
MSME Africa is a multi-faceted resource platform for Micro, Small, and Medium Enterprises (MSME) in Africa providing capacity development, news, opportunities, business articles and other resources for MSMEs, entrepreneurs, and startups.
Olurotimi said the platform was poised to build the biggest network and community of MSMEs in Africa in the nearest future.
Ericsson Launches Automation Hub in Nigeria
Ericsson announces plans to create an Automation Hub in Nigeria to support operators for improved consumer experience.
Ericsson Automation Hub is an open innovation platform, inspired by lean startup methodology in which the Ericsson team works in close dialog with customers, users and partners to showcase and reach the high potential that network automation allows in configuration, provisioning, assurance and orchestration of network services.
This will enable service providers to gain the ability in their environments to govern, manage and orchestrate hybrid networks holistically and in real time and as a result, offer an enhanced consumer experience.
Fields to be covered include but not limited to 5G and Internet of Things (IoT) use cases, Network Slicing and Orchestration, Hologram Calls, Complex Standalone, Business Support System (BSS) and Operations Support System (OSS), Cloud and Core product cases, Automated Acceptance Tests demonstration and enhancements as well as complex charging scenarios for 5G and 4G networks.
Lucky La Riccia, Vice President and Head of Digital Services at Ericsson Middle East and Africa at Ericsson says: “As Industry 4.0 accelerates in Africa, automation in operations is proven to boost customer experiences. Ericsson continues to support the telecom industry players in setting #AfricaInMotion, and with the Ericsson Automation Hub in Nigeria, we will focus on driving business outcomes for our partners in Africa as they aim to leverage digital transformation to turn complexities into opportunities while offering a greater experience and value to consumers.”
Chevron To Invest In The Offshore Wind Sector
Chevron’s venture capital arm and Moreld Ocean Wind have agreed to invest in Ocergy Inc.’s development and commercialization of floating offshore wind turbines.
The investment by Chevron Technology Ventures is it’s first in offshore wind. The size of the investments wasn’t disclosed. Floating turbines would be useful in ocean areas that are too deep for fixed turbines.
A senior analyst at Wood Mackenzie Ltd, Anthony Logan said: “To my knowledge, this is the first investment by a U.S. oil major in offshore wind”
Logan said, floating wind turbines will become important as the U.S. electrical grid increasingly depends on offshore wind power.
“If you can get into those deeper waters, chances are you can build a system of offshore wind production that isn’t vulnerable to low wind or no-wind events.”
The investment will also fund the development of an environmental monitoring buoy that will gather data and support biodiversity, Ocergy said in a news release Tuesday. The company has previously invested in onshore wind. Moreld is owned by HitecVision, a private equity investor that specializes in European renewable energy.
Chevron’s deal with Ocergy doesn’t mark a strategic pivot to renewable energy, but part of a $300 million-a-year plan to invest in early-stage technologies that may play a future role in the energy transition. The company is unwilling to erode returns by investing aggressively in an unfamiliar business where it doesn’t have a competitive advantage and sees oil and gas as its core products for years to come.
Finance3 weeks ago
List of Microfinance Banks’ USSD Codes In Nigeria
Government4 weeks ago
US Intelligence Says ISIS and Al-Qaeda Are Planning to Attack Southern Nigeria
Banking Sector4 weeks ago
GTBank Records N201.4 Billion Profit After Tax in 2020
Government4 weeks ago
Out-Of-School Children in Nigeria Hits 10M – Nwajiuba
Education1 week ago
COVID-19: 2021 WASSCE May Not Hold in May/June – WAEC
Telecommunications3 weeks ago
Nokia, Safaricom Partner to Launch East Africa’s First Commercial 5G Services in Kenya
Brands2 weeks ago
LG To Close Mobile Phone Business Worldwide
Technology2 weeks ago
FG Extends NIN-SIM Linkage by Four Weeks