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Izomor: Nigeria Now Has Capacity to Fabricate FPSO Modules

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  • Izomor: Nigeria Now Has Capacity to Fabricate FPSO Modules

The Group Managing Director and Chief Executive Officer of MG Vowgas Limited, Mr. Godwin Izomor has declared that the Nigerian fabrication yards now have the capacity to fabricate the modules of Floating Production Storage Offshore vessels (FPSOs) and other complex offshore structures, stressing that the federal government should insist that complex fabrication jobs should be domiciled in-country in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.

Speaking to journalists after a facility tour of his Mount Zion Fabrication Yard in Woji area of Port Harcourt in Rivers State, Izomor argued that the international oil companies (IOCs) should no longer export jobs abroad under the excuse that Nigeria does not have the capacity.

“Before now, barges and tug boats are imported from Europe and America under the flimsy excuse that Nigeria did not have the capacity. But today, we have fabricated a lot of equipment without any assistance from anybody. The barges and tugboats we use now in the industry are fabricated here in Nigeria. It is left for the government to support the local companies to insist that all the jobs must be domiciled in Nigeria. They should insist deliberately,” he said.

Izomor noted that executing oil and gas industry jobs locally would help to create massive employment opportunities in the country, adding that Korean giants that have operated in Nigeria for over 20 years have not built fabrication yards in Nigeria so as to continue to create job opportunities for their people working in the yards in their home country.

He said that his company in particular has the capacity to fabricate pressure vessels, modules, offshore structures, FPSO structures and topsides, stressing that his yard was built to curb capital flight.

“We built this place to reduce the amount of our money being taken abroad. Can you imagine that Korean companies have been in this country for the past 20 years but none of them has a yard in Nigeria that can even fabricate a container? The reason is that they know that if they build a yard here, their people will not be employed. So, it is our foolishness that kept Nigeria where we are today. Now, we have to believe in ourselves to start doing things in this country,” he said.

He argued that no fabrication yard in Nigeria has the kind of equipment in his yard.

“We are even bringing two major equipment. One is the oven. Our furnace has the capacity of 1,600 degree centigrade and is about 200 tonnes furnace. Then, till today, we still import the flanges from India and some other countries.

Even the other yards in Nigeria still import those flanges from abroad. But we are the only company that is going to have it here in Nigeria. We have plasma cutting machine that can cut up to 200-millimetre thickness of plates. We have davvy rolling machine that can roll up to 200 mm thickness plates. We have three automated welding machines that can weld aluminium and stainless steel,” he explained.

Izomor identified insecurity, poor electricity supply and lack of funding as some of the threats to local companies.

He also cited the failure of the government to stop the international oil companies from executing jobs outside the country as a major challenge.

According to him, the high cost of security in Nigeria has impacted negatively on the cost of doing business.

Izomor stated that he spends about N500 million yearly on security in his Port Harcourt yard and operation site in Bayelsa.

He urged the federal government to provide security by re-negotiating with the different ethnic groups agitating in the country.

“The government should re-negotiate with the different groups agitating for different reasons. I am a businessman and I don’t want to go into the demand of each ethnic group. It is not my business. My business is to do business while the government gives us security,” he said.

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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