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NigComSat to Offer Navigational Services to Airlines, Others

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communication-satellite
  • NigComSat to Offer Navigational Services to Airlines, Others

The Nigerian Communications Satellite Limited plans to provide Global Positioning Services to airline operators and other commercial entities, including the Nigerian National Petroleum Corporation.

Towards the provision of this service, the L-Band in the Nigerian Communications Satellite, NigComSat-1R, has been activated and testing of the services will be carried out in the first quarter of 2019.

The Minister of Communications, Mr Adebayo Shittu, gave this indication at the 15th International Telecommunications Union Resolution 609 Consultation Meeting and Radio-navigation Satellite Service Symposium in Abuja on Tuesday.

The minister said the test run would be carried out with aircraft belonging to the Nigerian Air Force before it would be deployed in the civil aviation sector.

According to Shittu, the navigational services to be offered by NigComSat will serve as additional sources of revenue for the government as it stretches its quest for the diversification of the economy.

Our correspondent learnt that the management of NigComSat Limited was also in discussion with the NNPC for the deployment of the L-Band geo-positioning services for monitoring of pipelines belonging to the national oil firm.

Shittu stated, “In line with the Economy Recovery and Growth Plan of this administration, the government has been in the vanguard for the diversification of the economy through robust policies and promotion of services cum technologies such as Radio Navigation Satellite System.

“We are fully in support of back-up satellite systems for NigComSat’s robust service delivery, continuity and expansion in areas and sectors that cover broadcasting, navigation, telecommunications services etc.

“In collaboration with our partners, we shall commence test-bed trials, characterisation and pilot demonstration by the first quarter of next year, 2019, using selected Nigerian Air Force aircraft and validation by the Agency for Aerial Navigation in Africa and Madagascar before deployment in the civil aviation sector.”

Speaking at the event, Managing Director/Chief Executive Officer, NigComSat Limited, Abimbola Alale, said the company was driven by the vision to provide ubiquitous connectivity and communication satellite solutions through innovation.

She stated, “NigComSat is responsible for managing and operating geostationary communications satellites.”

“We currently have NigComSat-1R in geostationary orbit. NigComSat-1R has Quad-band (Ku, Ka, C and L bands) for telecommunications, broadcast and navigation overlay services.”

She added that the Ground Station Complex in Abuja was fully equipped with various facilities, including the Satellite Control Centre, Network Operations Centre, Direct-to-Home Centre, Broadband Network Service Centre, Innovation and Development Centre and Nigerian Satellite Augmentation System programme.

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

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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