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Nigeria Records Stable Oil Production Level of 2.3mbpd

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crude oil
  • Nigeria Records Stable Oil Production Level of 2.3mbpd

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru yesterday stated that the corporation as at June 2019 recorded 2.3 million barrels per day of crude oil production.

Baru also disclosed that the corporation attracted $3.6 billion and $3 billion in 2017 and 2018, respectively, adding that negotiations were currently ongoing to attract several billions of dollar worth of investments into the oil and gas sector.

He made the disclosure in Abuja while hosting the executive members of the Nigerian Union of Journalists (NUJ) led by its National President, Mr. Chris Isiguzo.

Baru, said: “We have been able to attract FDIs into the oil and gas industry and in 2017 alone we attracted about $3.6 billion; in 2018 we attracted about $3 billion. At the moment we are negotiating sums in the region of $7 billion as FDIs that will come into the oil and gas sector,” Baru said.

The GMD, NNPC, noted that since his coming into office in July 2016, “we are focused on increasing production of oil and gas and condensates. At some point, our national combined production of oil was about a million barrels. I am happy that at the end of 2018 we have moved on, averagely last year about 2.1 million barrels.”

“As I am speaking this morning, I look at our production figures, combine oil and condensates, we are pushing 2.3 million barrels per day. I think this stability and ability to push production has come as a consequence of several factors: our relationship internally, externally and of course with the media.”

“In the gas sector, we have a pushed at a lower level of about 450 million standard cubic feet per day to say that for the domestic alone, we are covering about 1.5billion cubic feet (bcf) that is 1,500 million standard cubic feet per day of gas.

“Internally, we have a flagship company, the Nigerian Petroleum Development Company (NPDC). This is 100 per cent NNPC operations; they have pushed their production and equity size from a lower figure of about 65,000 barrels per day in 2016 to over 166,000 per day equity. And overall production for NPDC, we are about to maintain it at close to 300,000 barrels per day. It’s quite a significant boost.”

“For NPDC, it has become the main supplier of gas to the power sector, supplying over 800 million standard cubic feet per day that is required to boost the production of power in this country. Currently the power that we enjoyed, as about 80 per cent input from gas driven tarmac power plant.

“In terms of products supply, which is really true, we knew the crisis we were in when we came in 2016. There’s a challenge; we have to put in a new scheme, which we properly called DSDP (Direct Sales Direct Purchase), essentially to directly sell crude oil and use the cash to directly purchase petroleum products.

While soliciting the firm soliciting the firm support and cooperation of the NUJ, the NNPC boss said the national oil company was working assiduously to meet the goals of the Economic Recovery and Growth Plan (ERGP), which is government’s policy vehicle to move to the economy to the next level.

“We will work hard to meet the ERGP goals. And we are focused on increasing oil and gas production and condensate.

“On the DSDP, approach to crude sales and products import, Nigeria saved N1.2 billion in one year using that template. Our transparency fetched us $.3.6 billion worth of foreign direct investment in 2017. In 2018, it was $3 billion, while in 2019, we have recorded $7 billion so far.”

While urging the media to help it in the fight against illegal refineries and products diversion, he said, “we have to remind the illegal refiners that they’re doing more harm. The crude is cooked poorly, spills in the waters, kills aqua life, causes acidic rain and impoverishes the people.

“It constitutes grave health hazard. Look at the spot all over Port Harcourt. It’s from the activities of the illegal refineries.

“We also have to warn the crooks involved in product diversion/smuggling to stop it because it’s bleeding our economy. “Some do it with 50-litre jerry cans via motorcycles. Within few shuttles, a truck is drained and these smugglers use the porous borders. Petrol is N390 per litre in Cameroon, in Chad it is N350/litre.”

Speaking further, Baru revealed that in Ghana, a litre of Nigerian oil is sold at N310.

“If 10 million litres is taken outside Nigeria, it is N2 billion that has bled out of our economy.

“These criminals and those colluding with them must be exposed. It’s not our job to secure borders but to ensure energy security, which we shall always do,” Baru stated.

Responding, Isiguzo said the visit was to congratulate Baru on the honour bestowed on him at the World Press Freedom Day Awards.

Isiguzo also urged the NNPC to look into the plight of host communities with a view to guaranteeing uninterrupted crude production.

He further appealed to security agencies and traditional rulers of host communities to protect oil installations in the interest of the country.

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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