- Hungary Shows Interest in Nigerian Crude Oil, LNG
The Hungarian government has indicated interest in purchasing crude oil and Liquefied Natural Gas from Nigeria.
The Hungarian Ambassador to Nigeria, Prof. Gabor Ternak, who disclosed this during a courtesy visit to the Group Managing Director of the Nigerian National Petroleum Corporation, Maikanti Baru, in Abuja, said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in his country.
“Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG imports, and we are considering purchasing these products from Nigeria,” Ternak was quoted as saying in a statement by the NNPC on Wednesday.
He said Nigerian crude oil would be of great help to Hungarian refineries involved in large scale commercial refining.
The envoy stated that Nigeria could also leverage on the bilateral relationship with his country by engaging the services of Hungarian firms that specialised in the repair, maintenance and building of refineries as well as medical services.
Ternak said Hungarian universities with many years of oil and gas engineering expertise could assist Nigeria in the areas of capacity building of oil workers.
In his remarks, Baru stated that the corporation had commenced a tender process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilise the opportunity by participating in the exercise to maximise value from direct purchase, rather than going through a third-party.
“If you don’t participate in the tender process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they can be shortlisted as off-takers,” Baru said.
He explained that Hungary could purchase LNG through spot cargo, an arrangement in which excess production is given to registered off-takers with the Nigerian Liquefied Natural Gas Limited.
“Normally, gas business is a long-term business and the NLNG is not different; we already have existing 20-year contract that will expire by 2022. Nevertheless, we have what is called spot cargoes, when there is excess production and the current contractors have got their share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” he said.
Baru noted that Hungarian companies could submit their profiles to the NLNG for possible engagement as off-takers of spot cargoes after meeting the standard requirements.
The NNPC GMD stated that works on the refurbishment of the corporation’s refineries through original builders of the plants had commenced and that Hungarian firms with the requisite expertise could be considered through sub-contracting by the main contractors.
He said the NNPC, through its subsidiary institution, the Nigerian Leadership Academy, would look into possible areas of collaboration with Hungarian universities for in-country capacity building of oil and gas workers.
China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market
China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.
Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.
China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.
Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.
This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.
In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.
However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.
While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.
The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.
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Nigeria’s One-Year Treasury Bill Oversubscribed by 300%
Nigeria’s one-year treasury bill was oversubscribed by 300% during the recent Primary Market Auction conducted by the Central Bank of Nigeria (CBN) on Wednesday.
The auction, aimed at rolling over maturing Nigerian Treasury Bills worth N1 trillion, saw unprecedented demand for the one-year T-bill.
Investors offered a total of N1.87 trillion for the N600 billion on offer, indicating a significant appetite for government securities. Out of the total subscriptions, N908.75 billion was allotted, with stop rates set at 19%.
The auction covered maturities across three different tenors: 91-day, 182-day, and 364-day bills, with varying amounts on offer.
While the 91-day bill received N39.90 billion in offers, all were sold, and the 182-day bill garnered N76.83 billion subscriptions, out of which N51.35 billion was allotted.
Managing Director of Arthur Steven Asset Management, Tunde Amolegbe, attributed the remarkable performance of the one-year bills to investor confidence in the current government and its reform initiatives.
He highlighted investors’ preference for higher rates due to signals from the CBN indicating tightening monetary policies amid accelerating inflation.
Experts view the oversubscription as a testament to investors’ trust in the government’s reforms and management of the country’s debt obligations.
The auction reflects a move by the CBN to address liquidity in the financial system while managing Nigeria’s debt obligations effectively.
The significant oversubscription signals robust investor confidence and highlights the attractiveness of Nigerian government securities despite prevailing economic challenges.
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