- Baru Commends NPDC on 100% Local Content on Gas Facility
The Nigerian National Petroleum Corporation (NNPC) has commended the Nigerian Petroleum Development Company (NPDC), for achieving 100 per cent local content input in the development of Oredo Integrated Gas Handling Facility (IGHF).
Dr Maikanti Baru, the Group Managing Director made the commendation when he visited NPDC, its upstream subsidiary on Wednesday, a statement released by the Corporation, on Thursday in Abuja said.
The GMD toured the NPDC’s Oredo Flow Station, Oredo Gas-to-Pan-Ocean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, all in Edo State.
He said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC.
“From engineering, construction to erection of the various units, we feel very encouraged by the huge man-hours which you are putting in here, day and night, with full local content,” Baru told over 500 workers at the site.
“The IGHF is currently at 80% completion.
“ When completed in December, it will make provision for dehydration of gas and liquid extraction.
“ It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS),’’ he said
He described the Oil Mining Lease (OML) 111, where the gas projects were located, as one of the most significant assets of the NPDC.
According to him, it is where the corporation’s staff and their contractors design, build and operate facilities hitherto operated by the International Oil Companies (IOCs).
“You could see that right from the well-design through to reception of the various liquids to the processing and disposal of the various outputs, it is fully indigenous. So, it cannot be better than this,” he added.
He said as a National Oil Company (NOC), the corporation was using this to showcase its ability to intervene, adding that “we are not just a player, we are also building capacity that can enable us intervene by taking over any assets whenever any contractor decides to opt out,” he said
Baru stated that the project’s funding constraints would be addressed soonest and noted that NNPC was considering alternative means to support and complete the project.
“All these projects are located within OML 111, one of our critical assets which we are keen on deriving maximum benefits from,” he stated.
Earlier, the Managing Director of the NPDC, Mr. Yusuf Matashi, thanked the NPDC Board led by the GMD, for coming down to inspect the gas facilities, saying it was the first time the company was witnessing a highly-synchronised support towards these projects.
He said the LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.
“Another advantage is that it will ensure ease of distribution and penetration into the market. You can take LPG to every nook and cranny of the country from here. So, it is quite strategic,” he noted.
He said in line with NPDC’s Corporate Social Responsibility (CSR) efforts, the company had engaged youths within the host community area, with a number of them fully involved in the local contracts around the project as well as the pipeline Right Of Way (ROW).
“We have also completed a Skills Acquisition Centre which is currently being furnished in line with the component of the project.
“We intend to commission the centre even before the project is completed.
“From our records, this is one project that has engendered cordial relationship with the Oredo community and we hope to replicate similar understanding in other areas within the Niger Delta,” he said
Also, the NNPC Chief Operating Officer, Upstream, Mallam Bello Rabiu, who expressed happiness that the project would be delivered within time and budget.
He also charged the workers to double the over one million man-hours achieved so far in the project without any incidence.
Located 34km southeast of Benin City, the OML 111 is an onshore field comprising five fields viz: Oki-Oziengbe-South, Aroh North, Koko, Oghama as well as Oredo, which has twelve (12) out of its fifteen (15) wells currently producing.
Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin
Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges
Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.
The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.
The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.
“We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.
Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.
Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.
In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.
The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.
Oil Prices Extend Gains to $64.32 Ahead of OPEC+ Meeting
Oil Prices Rise to $64.32 Amid Expected Output Extension
Oil prices extended gains during the early hours of Thursday trading session amid the possibility that OPEC+ producers might not increase output at a key meeting scheduled for later in the day and the drop in U.S refining.
Brent crude oil, against which Nigeria oil is priced, gained 0.4 percent or 27 cents to $64.32 per barrel as at 7:32 am Nigerian time on Thursday. While the U.S West Texas Intermediate gained 19 cents or 0.3 percent to $61.47 a barrel.
“Prices hinge on Russia’s and Saudi Arabia’s preference to add more crude oil production,” said Stephen Innes, global market strategist at Axi. “Perhaps more interesting is the lack of U.S. shale response to the higher crude oil prices, which is favourable for higher prices.”
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, are looking to extend production cuts into April against expected output increase due to the fragile state of the global oil market.
Oil traders and businesses had been expecting the oil cartel to ease production by around 500,000 barrels per day since January 2021 but because of the coronavirus risk and rising global uncertainties, OPEC+ was forced to role-over production cuts until March. Experts now expect that this could be extended to April given the global situation.
“OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market,” ANZ said in a report.
Meanwhile, U.S crude oil inventories rose by more than a record 21 million barrels last week as refining plunged to a record-low amid Texas weather that knocked out power from homes.
Oil Dips Below $62 in New York Though Banks Say Rally Can Extend
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.
- 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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