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254 Firms Submit Bids to Buy, Sell Nigeria’s Crude



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  • 254 Firms Submit Bids to Buy, Sell Nigeria’s Crude

Nigeria’s crude and condensate production stood at 2.25 million barrels per day on Tuesday, while 254 companies submitted bids for the sale and purchase of the country’s crude oil grades for the 2018/2019 Crude Term Contract.

According to the Nigerian National Petroleum Corporation, about 40 cargoes of crude volumes will be offered monthly to winners of the term contract, adding that the number of bidders increased by 30 when compared to the 2017/2018 exercise.

The Group Managing Director, NNPC, Maikanti Baru, who disclosed this on the sidelines of the bid opening ceremony in Abuja on Tuesday, also stated that the importation of Nigerian crude by the United States picked up in 2017, as opposed to what obtained a year earlier.

“For crude production without condensate, we’ve gone up significantly today. We have about 1.8 million barrels per day without condensate. If you add condensate, we produce about 2.25 million barrels per day. So there is significant improvement,” he stated.

On the amount of crude to be lifted by bidders, the NNPC boss said, “The quantity is about the volume that we had last year. We have about 40 cargoes on a monthly basis and the number of bidders that submitted this year is 254.

“The winners will emerge after evaluation, which will take about three to four weeks. We will get the required consent and once we get the approval, we will announce the winners.”

When asked to state the number of winners that would emerge, Baru replied, “I wouldn’t know how many will emerge. It depends on how good the submissions are.”

He said the government would seriously scrutinise the reputation of bidders, stressing that the commodity would not be given to individuals with questionable character.

“The beneficial owners being talked about refer to the companies or their directors. We want to be sure, in terms of reputation, that we do not get our goods in the hands of companies that have directors with questionable character,” he added.

On the export of Nigerian crude, he said, “In 2016, we had very low export, particularly to the US. But last year, we had up to 16.5 per cent, to be precise, of our crude going to North America.”

The NNPC GMD stated that the 2018/2019 crude term contract would follow similar procedures adopted in the preceding year so as to clear all forms of arbitrariness in the exercise.

Baru said, “What we successfully put in place last year was that we had a list of the off-takers and we made the crude available in the order that we had and when the order finished, we went back and started from the top.

“So that is the automation being referred to and it removes every kind of arbitrariness from everybody for they know who has lifted and they also know who is going to lift next and so on up till each person’s turn. They also know that their turn will not pass them.”

The corporation also stated that the largest volume of Nigeria’s crude oil was sold in Europe.

The Group General Manager, Crude Oil Marketing Division, NNPC, Mele Kyari, who disclosed this in Abuja, stated that Europe remained the major destination of Nigerian crude grades, accounting for 36.59 per cent of the total sales, with Asia and the Far East receiving 28.43 per cent.

He said 16.57 per cent of Nigeria’s crude grades was exported to North America; 13.17 per cent to Africa; 2.84 per cent to South and Central America, while the rest of the world served as beneficiaries for the remainder.

Kyari stated that the sustained reforms in the marketing and disposal of Nigeria’s equity crude had eliminated the ugly incidents of “briefcase” companies as witnessed in the past.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


FG Reopens Osubi Airport Warri for Daylight Operations




FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm




Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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Shut Down Depots Selling Petrol Above Approved Price – Marketers




Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

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