- We’ll Miss 2019 Target for Refineries’ Revamp – Kachikwu
The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said the plan to get the nation’s ailing refineries to work at almost full capacity will not materialise by 2019.
Kachikwu stated this on Monday in Lagos at the 18th edition of the International HSE Biennial Conference on the Oil and Gas Industry in Nigeria organised by the Department of Petroleum Resources, in conjunction with other stakeholders.
Last year, the minister vowed to resign if the country failed to attain self-sufficiency in the refining of petroleum products by 2019.
When asked to state the year that Nigeria would be self-sufficient in refining petroleum products, Kachikwu, who was a guest on BBC Hard Talk in London on May 22, 2017, replied, “I have said 2019, and that is the target that I gave.”
Earlier on May 4, 2017, the Nigerian National Petroleum Corporation expressed commitment to actualise the December 2019 target set by the Federal Government to end the importation of petroleum products into the country.
The Group Managing Director, NNPC, Dr Maikanti Baru, was quoted in a statement as saying at the Nigeria Oil Industry Award Dinner during the Offshore Technology Conference 2018 in Houston, United States, that measures had been taken to achieve the target.
He explained that in terms of refining and production of local petroleum products, the ongoing arrangement with the original builders of the refineries to return them to at least 90 per cent capacity utilisation before the 2019 deadline was still intact.
Kachikwu said on Monday in a keynote address that 10 out of the over 40 licensed modular refineries had got into serious work, with three likely to come on stream towards the end of next year.
He said work was ongoing on the four refineries owned by the NNPC, adding, “Hopefully in the next board meeting next week, we will be able to come to final landing on the commercial terms for those investments. If we do, that brings in the processing of 445,000 barrels of crude.
“Even though I had wanted in my usual bullish nature to get this thing driven so that we can have all the refineries working by end of 2019, obviously it will slip a bit. But what is important that we must begin the process. We are going to deliver those barrels refined by 2020, so be it.”
On the refinery being built by Aliko Dangote in Lagos, with a capacity of 650,000 barrels per day, the minister said, “We are working very hard with him on it.”
The media reported on November 8, 2019 that the proposed rehabilitation of the nation’s refineries had suffered delays as the third-party financiers for the project had yet to be announced, more than a year after the NNPC said 28 firms had expressed interest in its financing.
Nigeria has four refineries, two in Port Harcourt and one each in Kaduna and Warri, with an installed capacity of 445,000 bpd, but they have continued to operate far below the installed capacity for many years.
Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper
Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.
This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.
Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.
The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.
FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.
The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.
He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.
Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.
In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.
The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
African Airlines Projected to Cut Losses to $400m in 2024, Says IATA
The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.
The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.
IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.
The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.
Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.
Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.
IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.
However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.
He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.
Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.
Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.
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