- Board Sets 70% Local Content Target to Retain $14b
The Nigerian Content Development and Monitoring Board (NCDMB) has set an ambitious target of 70 per cent growth in local content over the next 10 years. This will enable the country to retain $14 billion from the $20 billion spent yearly in the upstream oil and gas industry.
When the Nigerian Content Law was enacted in 2010, local content in the industry was only five per cent but at the moment it stands at 26 per cent while what is retained in-country from the $20 billion spent yearly is $5 billion.
NCDMB Executive Secretary, Simbi Wabote, said in Lagos during on the sideline of the presentation of the upgraded Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS), titled: Optimising the JQS functionalities for case of doing business with the board to industry stakeholders that the upgrade was meant to enhance the achievement of the set targets, adding that the targets are achievable.
With the robust NOGIC JQS, the NOGIC JQS portal would capture industry capacity, adequate categorisation, training, employment and expatriate quota management data.
Wabote said: “The NOGIC JQS portal will be sole system for Nigerian Content registration and prequalification of contractors in the industry after verification of contractors’ capacities and capabilities.
“It will ensure tender and expatriate quota management, proper record of issued Nigerian Content Equipment Certificate (NCEC), marine vessels categorisation, skills data bank.”
He added that indigenous and international oil companies (IOCs) will be compelled to make statutory submissions on it.
On the benefits of the upgraded NOGIC JQS, Wabote said on assumption of office, carrying out daily activities were cumbersome due to huge paper works. He said with the upgraded portal, the activities will be done electronically and will substantially reduce turnaround time, enhance internal efficiency and ensure transparency.
“It is in tandem with Federal Government’s Executive Order on Ease-of-doing Business and the 7Big Win, which are to boost transparency and stakeholder management, as well as government’s Economic Recovery Growth Plan (ERGP). It will also foster better institutional collaboration,” he said.
Wabote highlighted some of the achievements of the Board between 2010 and 2017 to include registration of 6800 service companies in the Board’s database, registration of 75,000 people on NOGIC JQS, receipt of 12,000 expatriate applications, and biometric capture of 3600 expatriates. Others are record of 2800 marine vessels, registration of 40 operating firms, issuance of 1200 Nigerian Content Equipment Certificate and registration of 550 marine vendors.
He said the workshop on the new JQS portal functionalities was meant to sensitise the industry and general public about the upgraded NOGIC JQS platform but with special focus on super-users and industry relevant stakeholders such as members of Petroleum Technology Association of Nigeria (PETAN), Oil Producers Trade Section (OPTS), Manufacturers Association of Nigeria (MAN), Nigerian Content Consultative Forum (NCCF) and Oil and Gas Trainers Association of Nigeria (OGTAN).
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.
OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.
Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”
Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.
Experts have started predicting $75 a barrel by April.
“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”
Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin
Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges
Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.
The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.
The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.
“We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.
Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.
Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.
In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.
The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.
Oil Prices Extend Gains to $64.32 Ahead of OPEC+ Meeting
Oil Prices Rise to $64.32 Amid Expected Output Extension
Oil prices extended gains during the early hours of Thursday trading session amid the possibility that OPEC+ producers might not increase output at a key meeting scheduled for later in the day and the drop in U.S refining.
Brent crude oil, against which Nigeria oil is priced, gained 0.4 percent or 27 cents to $64.32 per barrel as at 7:32 am Nigerian time on Thursday. While the U.S West Texas Intermediate gained 19 cents or 0.3 percent to $61.47 a barrel.
“Prices hinge on Russia’s and Saudi Arabia’s preference to add more crude oil production,” said Stephen Innes, global market strategist at Axi. “Perhaps more interesting is the lack of U.S. shale response to the higher crude oil prices, which is favourable for higher prices.”
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, are looking to extend production cuts into April against expected output increase due to the fragile state of the global oil market.
Oil traders and businesses had been expecting the oil cartel to ease production by around 500,000 barrels per day since January 2021 but because of the coronavirus risk and rising global uncertainties, OPEC+ was forced to role-over production cuts until March. Experts now expect that this could be extended to April given the global situation.
“OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market,” ANZ said in a report.
Meanwhile, U.S crude oil inventories rose by more than a record 21 million barrels last week as refining plunged to a record-low amid Texas weather that knocked out power from homes.
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