- Freight Levy Review Lifts Nigeria’s Cargo Volume by 31.2%
The Director General of the Nigerian Maritime Administration and Safety Agency NIMASA (NIMASA), Dr. Dakuku Peterside has stated the inward cargo throughput of Nigeria’s seaports recorded a 31.24 per cent increase between January-June 2018, following the decision of the agency to carry out a downward review of its three per cent freight levy.
The NIMASA core mandates include regulating shipping, especially in terms of ensuring navigational safety, maritime domain security, and promoting the development of shipping in the country, among others.
Statutorily, the agency collects three per cent freight levy from all vessels that call at the nation’s seaports as its statutory source of funding.
During an interactive session with journalists on the activities of the agency in Lagos, the NIMASA boss disclosed that the agency decided to do a downward review of its three per cent freight levy to reflect current realities in the global shipping business, a development that scaled down its revenue but boosted cargo throughput.
Available statistics showed that a total of 96.427 million metric tonnes of cargo was handled at the nation’s various seaports between January and June 2018, as against that of 73.629 million metric tonnes of cargo handled in the comparative period of 2017, representing a growth rate of 31.24 per cent.
According to him, “Within the period, the agency reviewed freight rates benchmark for the three per cent billing. The review was done to reflect prevailing realities in shipping based on the request by operators.
“The significance of this new benchmark is that it has fostered harmonious regulator-operator relationship.
“Also, the review brought about positive trends in the industry, leading to more patronage. So far in 2018, total cargo throughput (January-June) is 96,626,737.96 metric tonnes, showing 31.24 per cent increase from the cargo throughput of same period in 2017, which stood at 73,628,546.62 metric tonnes.
“By reviewing our three per cent freight levy, we do not insist on revenue generation alone, but rather to grow investments, create a level operating environment and by so doing achieve a lot of improvements in the relationships between the regulator and operators, which builds more confidence in the Nigerian system.”
The NIMASA boss, who also gave insights into other operational activities of the agency, disclosed that the country recorded a 10.3 per cent growth in the number of foreign vessels that call at her various seaports, which is above the 15 per cent benchmark of the International Maritime Organisation (IMO), in response to the improved port state regulatory functions of the agency.
He stated further gathered that the country recorded a 27 per cent growth in the number of vessels registered in its ship register as a result of improvements in the agency’s flag state control regulations even as 21 per cent growth rate was achieved in the coastal activities in response to the improved coastal state functions.
Dakuku insisted that due to the tremendous improvements in its coastal regulatory functions, the country can no longer be described as safe haven for substandard vessels.
Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked
Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities
Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.
On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.
“One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.
It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.
“Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.
Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.
However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.
Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.
A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site
Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site
Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.
Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.
A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.
One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.
However, Saudi authorities are yet to confirm or respond to the story.
Brent Crude Oil Approaches $70 Per Barrel on Friday
Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension
Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.
Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.
Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.
While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.
According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.
“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”
Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.
“The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.
“I do believe we’re headed for a much healthier supply and demand environment” she said.
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