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Again, Aiteo Shuts 150,000 bpd Nembe Trunk Line

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  • Again, Aiteo Shuts 150,000 bpd Nembe Trunk Line

Nigeria’s oil exports have suffered another setbacks as Aiteo Eastern Exploration and Production Company has again shut down its 150,000 barrels per day- capacity, Nembe Creek Trunk Line (NCTL) less than 24 hours after reopening the facility.

The company said yesterday that after repairs of identified leak points occasioned by activities of oil thieves, two new leak points were reported along the same line near the Awoba Riser Manifold.

“Our emergency response process was immediately activated, and containment boom deployed to limit oil spread on bodies of water whilst efforts to identify cause of the incident/repair have been initiated.

“Consequently, all injectors have been advised in accordance with NCTL shutdown procedure to shut-in production into the NCTL immediately. Appropriate Oil Leakage/Spillage Notification Report will follow shortly to DPR/NOSDRA” the company said in a statement issued by its spokesman, Mr. Matthew Indiana.

Hours before the latest incident, the indigenous oil giant, had restated its commitment to its host community after a section of the Nembe Community, Bayelsa State converged, without prior notice, and barricaded the entrance to the company’s logistics base.

Ndiana said the incident interrupted normal work operations even after the intervention of the state’s security task force.

He said that following a protracted engagement with them, they agreed to disband, while leaving behind representatives to present their demands to the company.

“These disturbances disrupt our operations and lead to production deferment, which affects not just the company but revenues accruing to the government and people of Nigeria.

“Aiteo reiterates her commitment to continuing to work with her host communities to achieve an amicable relationship. Moreover, the Nembe community provides most of the supply, logistics and security contracts going into our local operations.

“Apart from encouraging community participation in this manner, the company has, in addition, continued to provide considerable amenities and services directly to the community in a most beneficial and impactful way.

“Hence, we remain open and are committed to constructive dialogue for the development of both the nation and the community” the company added.

Aiteo reiterated that it takes several layers of engagement to get key deliverables to the community as the asset is operated under a joint venture with NNPC, noting that key decisions must be made upon due consultation with all stakeholders.

“We appeal to our host communities, our partners in development, to patiently await the final outcome of ongoing processes initiated to implement sustainable development for all parties” the company added.

The Aiteo-operated NCTL and the Trans Niger Pipeline (TNP) are the two major pipelines used by oil companies operating in the eastern Niger Delta to evacuate crude oil to export terminals.

Aiteo had shut down the NCTL located around Oil Mining Lease (OML) 29 on April 21, following a fire outbreak, and Shell declared force majeure on exports on Bonny Light grade of crude oil on April 25 due to the closure of the pipeline.
The pipeline was reopened on Friday before the latest incident occurred

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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